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Minutes for the Depository Board meeting on March 13, 2010.
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Board members Mayor Perrin, chair, City Clerk Donna Jackson and City Collector Becky Sharp were in attendance. City Treasurer Jim Eagan was also in attendance.
Chairman Perrin questioned how much cash the City has in the bank. Mr. Eagan answered as of yesterday afternoon the balance was $24,602,525. Ms. Sharp added that amount was $23 million this morning due to checks being cashed. Mr. Eagan also stated that payroll is going out soon, so that amount will lower more. He explained at the beginning of the year the City had $22,575,000 in the bank, which means the amount is slowly building. Mayor Perrin stated the City has been able to build up some money due to controlling expenditures and budgeting low for sales tax.
Discussion was held concerning interest rates. Mayor Perrin stated the City is currently making 1.4% interest on the checking account. Mr. Eagan noted a bank quoted 1.87% interest on a 1-year jumbo CD. After further discussion, it was decided to hold off on purchasing CDs for a while because some banks are indicating they are expecting interest rates to increase soon. Mayor Perrin recommended holding off on any purchases until they know what the rates will do since the City isn’t in need of the money anytime soon. He added he is looking into a possible bond issue for the Streets & Sanitation building and a possible police station in north Jonesboro. He explained they are currently putting together budgets for 2011 and 2012, so they will know whether the City will have to use reserve or excess reserve money in the next few years. He further explained if reserve money is needed, they may also discuss a possible public safety sales tax.
Ms. Jackson referred to the minutes of the previous meeting and stated they had asked for several reports so they could be added to the minutes. She questioned whether Mr. Eagan had those reports to provide to the committee. Mr. Eagan answered no, ...
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