Florence council Monday decided to reinvest certificates of deposit with Cottonwood Valley Bank.
The city had $200,000 in CDs split over four CDs, which were invested with Cottonwood Valley at 0.15 percent. The city will be penalized any interest earned for the current year. One CD worth $50,000 is invested at a higher rate, which will not be reinvested.
The proposed rate was 2.48 percent interest for six months, but it fluctuates daily, councilman Matt Williams said. Council members decided to reinvest one CD worth $50,000 for 90 days, and three other CDs for six months, all at the highest possible rate.
The difference in interest could be around $500 between the four CDs, Williams said.