title
Minutes for the Depository Board meeting on September 10, 2010.
body
Board members Mayor Perrin, chair, City Clerk Donna Jackson and City Collector Becky Sharp were all in attendance. Also in attendance was City Treasurer Jim Eagan.
Ms. Jackson motioned, seconded by Ms. Sharp, for approval of the minutes for the August 25, 2010, meeting. All voted aye.
Mr. Eagan explained they drafted a Request for Proposal for the 2011 bank depository and sent it to 10 local eligible banking institutions. They received seven responses. Four banks declined to submit bids while three banks submitted bids. Those bidding were Liberty Bank, First Security Bank and Iberia Bank.
The bids were analyzed. While they were similar in several areas, Liberty Bank based their rates on the T-bill interest rate, as opposed to Iberia and First Security who based theirs on the Fed Fund rate. Liberty Bank also stated they would not charge the City for services, while Iberia indicated there would be a $325 per month fee and First Security would provide some services for free while others would be for a charge. Mr. Eagan noted the T-bill rates that Liberty Bank stated they would go by are close to what the City is currently earning.
Ms. Jackson questioned what services the banks are offering that the City is not currently taking advantage of. Mr. Eagan explained one helpful service is positive pay, which would speed up their bank reconciliations.
Ms. Jackson then questioned why some banks did not submit bids. Chairman Perrin stated that is probably due to the banks not needing the money. He expressed concern that 2011 could be worse than 2010 economically.
Ms. Sharp motioned, seconded by Ms. Jackson, to have Liberty Bank as the depository for 2011. All voted aye.
With no further business, the meeting was adjourned.