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Minutes for the Depository Board meeting on October 1, 2008.
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Board members City Clerk Donna Jackson, Mayor Doug Formon and City Collector Becky Sharp were in attendance. Also in attendance were interim Operations Director Allison Whitley and Finance Director Jim Barksdale.
Ms. Sharp motioned, seconded by Mayor Formon, to approve the minutes for the meeting on July 2, 2008. All voted aye.
Ms. Sharp discussed the leftover cafeteria fund money. She explained after enrolling employees in the Air Evac program there is $1,825.64 left. She suggested going back to the Employee Representative Committee for recommendations as to what to do with the rest of the money. Mayor Formon discussed an e-mail Human Resources Director Gloria Roark had received from Human Resources Director Jim Bradshaw, which noted leftover cafeteria fund money can be split up equally between the participants and credited to their account for the next year if they participate. He also stated he was not aware of the fact that only about 100 of the City’s 500 employees participate in the cafeteria plan. He explained he thought most of the employees participated in the plan. Discussion was held concerning what can be done with the leftover money. Chairwoman Jackson recommended getting a legal opinion regarding what can be done with the money. She then questioned whether it was too late to split up the money that is to be used for Air Evac. Ms. Sharp stated the money has already been paid to Air Evac. She then discussed issues with the cafeteria plan, noting some participants have complained about the amount of information that has to be provided in order to use the money in their accounts. Mayor Formon added the program changed this year. Ms. Sharp stated she will meet with City Attorney Crego to get a legal opinion about the cafeteria plan. She stated nothing will be done with the money until they’ve received the legal opinion.
Ms. Sharp then discussed the forfeiture accounts for the Police Department. She stated she is in the process of getting the accounts set up. She explained Mayor Formon, Police Chief Michael Yates and her will be on the accounts. She further explained the federal money will be in an account at Bancorp South with the state money being in an account at First Security. Mr. Barksdale noted they need to fill the empty position in the City Collector’s office to avoid a situation in which Ms. Sharp would be accepting forfeiture money when Mr. Ken Sadler is not present. He explained since she is on the accounts, Ms. Sharp does not need to be accepting the money.
Ms. Sharp informed the committee the City’s cash balance as of this morning was $31,812,367.65. She added City Accountant Kortney White has balanced accounts through January and is currently working on February.
Mr. Barksdale questioned the process for taking bank bids and noted they need to take bids soon since the end of the year is approaching. Chairwoman Jackson recommended a policy be made to detail the process of taking bank bids. She explained she wanted to be sure the Board can justify decisions to the City Council and the public. Mr. Barksdale proposed having 3 or 4 year contracts with banks as opposed to taking yearly bids in order to have more consistency. He also suggested not having all of the money in one place in order to spread the risk out. He explained emergency fund money can be in an account at a separate bank from the O&M account.
Mr. Barksdale added money was not always taken from the right account, but was “borrowed” from other accounts. He explained it will take them time to get the accounts cleaned up.
Ms. Sharp questioned the need for a special meeting to discuss the bank bids. Mr. Barksdale stated Ms. Sharp can contact the Municipal League in order to get the code that’s related to bank bids and bank requirements. Chairwoman Jackson asked Mr. Barksdale for a written recommendation concerning what to do with the money.
With no further business, Mayor Formon motioned, seconded by Ms. Sharp, to adjourn. All voted aye.