Gordon defends $92 million reserve transfer to UBS

By Tom Lehman 12:02am, August 13, 2014 - Updated 7:24am, August 13, 2014
New Castle County Executive Tom Gordon is defending a transfer of $92 million from New Castle County's reserve account to the United Bank of Switzerland.

WDEL's Tom Lehman reports.

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Gordon tells WDEL the $92 million transfer to UBS puts money intended to help pay for future operations in less risky investments.

He said the decision was made after it was discovered the top two holdings in one reserve account had significant exposure to junk bonds.

"We only have property tax, transfer tax and sewer tax and sewer fees so you're not able to invest those things in any kind of high-risk or gamble," he said.

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Gordon said the transfer allows the county to invest its money more securely and has saved more than $400,000 in fees in two years.

The county auditor had been reviewing the transfer to see if it should have gone to public bid or whether county council should have been notified.

The administration says council members learned about it in August 2013.

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