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Minutes for the Depository Board meeting on December 2, 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, Finance Director Jim Barksdale and Mayor-elect Harold Perrin.
Mr. Perrin referred to the last set of minutes and questioned the number of employees using the cafeteria plan. He then questioned whether the plan was being sold to the employees to show the benefits of using it. Mayor Formon stated he wasn’t aware only 100 employees used the plan. Ms. Sharp and Mr. Barksdale discussed problems with the plan that might deter employees from using it, such as the problems with the company wanting itemized bills.
Mayor Formon motioned, seconded by Ms. Sharp, to approve the minutes. All voted aye.
Chairwoman Jackson reminded the Board they are only to determine where the City’s money is being deposited. She noted the Board does not make financial decisions; rather, those decisions are for the City Council to make.
Mr. Barksdale referred to an email correspondence between him and Mr. Joe Williams from BancorpSouth which indicated the City will not be receiving the current 4.3% next year. He noted the City will have to go with 10-year CDs in order to get 3%. He discussed the accounts and banks having to prove collateralization. He stated due to being busy with balancing accounts and making the budget, he recommended leaving the money where it is for about three months until he can come up with a plan with how to handle the money. Mayor Formon questioned what the rate would be for the money if it’s kept where it is for the next three months. Mr. Barksdale stated he wasn’t sure what the rate would be. He added Stephens has indicated they would like to talk with the City about them managing the funds of the police pension with the Arkansas Municipal League. He explained he has some concerns due to the amount of money in the ...
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