People’s Bank President Reports on Status of Lac Courte Oreilles Tribal and Enbridge Accounts
Updated: Sep 3, 2019
By Joe Morey News Editor
The president of People’s Bank in Hayward, Mike Stamp, gave a report to the LCO Tribal Governing Board (TGB) on the status of eight tribal accounts held at the bank. The purpose of the report was so that newly-elected TGB members could be brought up-to-date on those accounts.
As the meeting began, TGB member Tweed Shuman asked Stamp to explain where our money is at.
Stamp explained about the Enbridge deposits and said they are spread out over five accounts, four of them Certificates of Deposit (CD) and the other in a money market account.
There are four $1 million CD accounts collecting 2% interest over 90 days to 180 days and upon maturity will roll into another CD.
Stamp explained that every 30 days one of the CD’s comes to maturity and they keep rolling. The interest on the 90 day CD will reach nearly $5,000 up to the 180 day CD earning nearly $10,000 in interest. The maturity total for all four CD’s will be $29,753, and will keep rolling over at maturity.
“These CD’s are a way for us to preserve our Enbridge funds and grow our accounts while we await the 2020 payment,” Shuman said.
The 2019 Enbridge deposit occurred in January of 2019 and over $1,826,000 remains in a money market account. Another Enbridge payment is expected in January of 2020 totaling $2.2 million with a $200,000 tax payment from Enbridge coming two months earlier, in November.
The money is kept liquid in case it is ever needed. For example, a loan was taken from the Enbridge funds to buy land and it’s currently being paid back out of the stumpage account.
Another money market account at People’s Bank includes the Capital Improvement Account, which contains surplus funds from LCO Financial Services and Sevenwinds Casino.
“This account was just recently started at People’s Bank as a savings account,” Shuman explained. A previously budgeted allocation is deposited into the tribe’s General Fund from both of these entities and any surplus amount will be deposited into the Capital Improvement Account.
LCO Secretary-Treasurer Michelle Beaudin said, for example, the July payment to the tribe from LCO Financial Services was $583,000 while only $200,000 is budgeted monthly to the General Fund, so the remaining $383,000 was deposited into the Capital Improvement Account. Sevenwinds is also projected to have surplus funds over their budgeted amount. The balance on that account is over $500,000.
Currently, there is just short of $7,000,000 spread out over those eight accounts in People’s Bank from Enbridge and LCO Financial Services.
“Do you think we are doing things right,” LCO Chairman Louis Taylor asked Stamp.
“I think unless you needed money quickly don’t change a thing,” Stamp said. “I wouldn’t go any longer term on the CD’s. The economy is strong and there’s nothing to worry about locally.”
Stamp stated the 2% interest on the CD’s is a very competitive rate and hard to find in the local market.
LCO Chairman Louis Taylor said he believes strongly in planning for the future of Lac Courte Oreilles and for the children so they have security.
We’ll continue to replenish these accounts, Taylor added. He explained we have the last two Enbridge payments invested in these accounts and in January another one will be issued, then we can begin using the existing funds.
“I don’t believe these funds should be put into programs because it becomes an on-going expense and will use up the funds,” Taylor said. “In several years then there isn’t any funds. I feel it should be used for urgent membership needs and other services such as remodeling facilities or construction of new buildings.”
Taylor added some membership needs include elder services or unbudgeted school projects such as a sports program.
Shuman said other important needs could be things such as a day care or assisted living facility.
These accounts are all in addition to other bank accounts held at Johnson Bank, which includes the LCO Health Center funds, and Chippewa Valley Bank where the tribe’s General Fund is held, and all federal grant dollars are deposited.