|Union City Council approves bank change |
|Posted: Wednesday, January 4, 2012 9:27 pm |
|By DONNA RYDER |
The City of Union City will be changing banks for two of its checking accounts.
The Union City Council agreed Tuesday night to move the checking accounts for the General Fund and the Water/Sewer Fund to First State Bank.
City manager Kathy Dillon told the council she recently solicited bids from local banks for those accounts, asking for an interest rate with no service charges.
First State Bank’s bid was an unconventional one, she said, and Jim Bondurant was on hand at the meeting to explain. He said the bank was offering a 0.7 percent interest rate with a $140 flat monthly fee, saying the city will actually make more money with the higher interest rate. Based on a current average balance, he said the city would make $4,308 annually.
Commercial Bank, which currently holds the city’s checking accounts, was the other bidder. It offered no service fees and a 0.4 percent interest rate.
Ms. Dillon said her initial thought was to recommend Commercial Bank because it met the bid specifications, but that her recommendation would be for First State Bank because it would make the city more money.
After the meeting was opened in prayer by city attorney Jim Glasgow Jr., who asked special prayers for the Eskew family in the loss of councilman Dianne Eskew’s husband, the council:
• Awarded BSI the bid to demolish the municipal pool. The city requested bids on three options, but BSI offered a bid only on option 2 at $27,105. P&M offered bids on all three options. They ranged from $40,600 to $49,100.
• Awarded Autry’s Tren-ching the bid to demolish the structure at 725 North Clover St. for $1,475. Others bidding were Dennis Scarborough, $2,400; and Ed McCord, $2,000.
• Agreed to authorize the city manager to ask the state for permission to renew the land purchase capital outlay notes in an amount not to exceed $2,440,000 for a period of three years. Ms. Dillon said the notes, which were used to purchase the industrial park land, are held by four local banks — Commercial Bank, First State Bank, First Citizens National Bank and Reelfoot Bank.
She explained the city does not intend to use the full three years, but wishes to shop for fixed rate bonds. She told the council all parties understand it could be a period as short as a few months, but that the full three year extension is being requested for the matter so it does not have to continue to be brought up until the fixed rate bonds are purchased.
• Voted to solicit for bids for a two-ton truck with a bed for the public works department.
• Agreed to place a no parking sign at 1111 East Vine St. so a handicapped resident will have access to his apartment with his motorized scooter.
Councilmen Eskew, Billy Jack Cranford and Johnny Bacon were absent from the meeting.
Published in The Messenger 1.4.12