JACKSON - Cape Girardeau County Commissioners, who expressed disappointment over bids received May 2 from banks interested in being the depository for county funds the next two years, have decided to try again.

Last week, the commission voted to reject the bids it had received and start over. New bids are due at 11 a.m. June 6.

"We couldn't do any worse by re-bidding and we could gain," said Presiding Commissioner Gene Huckstep.

The commission decided to reject the earlier bids after it was recommended by the depository committee, comprised of Treasurer Bill Reynolds, Auditor Weldon Macke, and County Clerk Rodney Miller.

The committee did recommend one change in the bid specifications. On the last bids, the commission asked banks to indicate whether they would allow the county to shop around for higher interest rates on large certificates of deposit. In the new specifications, the right to shop is not an option, but a requirement.

Only two firm bids were received on May 2, from Capital Bank, which has been the county depository for several years, and Boatmen's Bank of Cape Girardeau. Capital, which had been paying the county 9.54 percent the last two years on certificates of deposit over $100,000, had the best bid for the next two years with a figure of 6.15 percent.

Capital indicated it would not allow the county to shop for higher rates during the depository period that begins July 1.

Boatmen's, which offered a top rate of 6.05 percent, said it would allow the county to shop rates during the period.

"I like to think the interest rates have bottomed out, but we just don't know for sure," said Huckstep.

Sander, in expressing his support for re-bidding, pointed out, "It could mean a great deal to us before the year is up. The rates could change and hopefully they will be going up."

Before taking the action, the commission also received advice from its attorney, Larry Ferrell, on what options it has for investing county funds.

Macke noted that last year the county earned almost $1 million in interest on all its investments.

Sander, who is in charge of the county's road and bridge program, warned that the drop in interest rates could have a major impact on construction, maintenance, and purchases of new equipment.

All interest earned on county general revenue funds are used for roads and bridges, and a large portion of the interest earned from the capital trust account is used for the highway department.

Sander said this year's planned programs will remain intact, but there may need to be some cutbacks next year if interest income is reduced considerably.