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Minutes for the Depository Board meeting on August 25, 2010.
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Board members Mayor Perrin, chair, and City Collector Becky Sharp were in attendance. City Clerk Donna Jackson was unable to attend. Also present at the meeting were Operations Director Gary Harpole and City Treasurer Jim Eagan.
Ms. Sharp motioned, seconded by Chairman Perrin, to approve the minutes from the meeting on April 28, 2010. All voted aye. Chairman Perrin questioned whether the operating account was moved to Liberty Bank as reflected in the last set of minutes. Ms. Sharp answered yes.
Discussion was held concerning the rate of interest earned on the bank accounts. Chairman Perrin explained the City is currently earning about 1.44% on most of the accounts, but he is unsure of what the rates will look like for next year. He recommended proceeding with sending to all of the local banking institutions a Request for Proposals asking for proposals for next year. Mr. Eagan stated they have already prepared an RFP and will have the bids back in three weeks after the RFP is sent out. Chairman Perrin added one good thing about last year’s RFP was that it contained a floor and ceiling rate, which protected the banking institution and the City. He also recommended shortening the bid time to two weeks and to send out the RFP’s tomorrow. Further discussion was held concerning the RFP. Ms. Sharp noted the Payroll account would be hard to move, so she recommended leaving the Payroll account where it is now. It was also noted Legislative Audit has indicated they would like the City to separate the operating and payroll accounts.
Ms. Sharp motioned, seconded by Chairman Perrin, to send the RFP to local banking institutions tomorrow and open the bids in two weeks.
Mr. Eagan then discussed the $100,000 that is left in the Payroll account and is used as static money. He suggested taking out most of the static money and leaving $100. Ms. Sharp noted the money, if taken out, will go into the General ...
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