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Kimball Board of Mayor & Aldermen discuss certificate of deposit for new fiscal year

Posted on Sunday, July 27, 2025 at 9:00 am

JARRETT GOODMAN

Staff Writer

The Kimball Board of Mayor & Aldermen has discussed establishing a new Certificate of Deposit (CD) account for the 2025-2026 fiscal year.

During this month’s meeting, Mayor Rex Pesnell explained how each year the Board purchases a CD bank account, with each account being opened during the city’s fiscal year with a six-to-nine month period of time before expiring. A CD is a bank account which any person, business, or government body can create to establish a fixed amount of funds. In return, the bank pays interest towards the account.

Pesnell explained how in the previous fiscal year, the Board had established $500,000 of the city’s sewer funds and up to $1,000,000 in general funding through separate CD accounts made. And if approved, the Board can begin work on receiving quotes from local banks to figure different interest rates.

“I’d like to see the town do it again. It’s a good opportunity to do it right now because the rates are fixing to start coming down,” said Alderman John Matthews.

Vice Mayor Jerry Don Case remarked how current interest rates are at a very low level, stating how he had received a CD account for 911 services and discovered the rate to be 4.0% for nine months, while the rate for 18 months was only 3.75% in interests. Alderman Matthews also noted that that the rates for CDs are subject to change alongside general interest rates within the local economy.

When Matthews questioned Mayor Pesnell as to whether suggest a six or nine month account, Pesnell felt the Board should send out quotes to different banks and examine them first before making a final decision as to which one the city should establish. Especially with several major projects for the community this year being in the works.

“I’d think we ought to get quotes on six and nine months, and then we can decide what the rate is,” stated Pesnell.

Vice Mayor Case made the first motion to have all quotes from banks across Kimball to be first turned in to the Board for examination, before further action into establishing a new CD account can be taken. His motion was followed by Alderman Teresa Lofty in her second motion of approval before the vote was passed by all remaining members of the Board. All quotes and further approval of creating a CD account are to be addressed during the town’s upcoming meeting on Thursday, August 7.