AmeriSpace proposes new treasury solutions for city financial management

During the City of Palatka's recent CRA/General Budget Workshop, financial strategies took center stage as officials discussed innovative banking solutions aimed at enhancing the city’s revenue and operational efficiency. Janet Porter, the regional treasury officer for AmeriSpace, presented a comprehensive proposal that could significantly benefit the city’s financial management.

Porter outlined a shift to a net interest checking composite structure, which would allow the city to earn additional interest on its funds while mitigating banking fees. This new structure would utilize compensating balances and provide an earnings credit rate, potentially generating over $19,000 in revenue for the city. The proposal also included the introduction of a remote business deposit scanner, enabling quicker check deposits without the need for physical trips to the bank, thus improving cash flow.

In light of rising concerns about fraud, Porter emphasized the importance of implementing fraud protection measures. She recommended adopting ACH positive pay and check positive pay services, which would give the city greater control over electronic debits and checks, alerting officials to any discrepancies in real-time.

Additionally, the workshop touched on the potential benefits of a purchasing card program, which would allow the city to manage cash flow more effectively by delaying payments to vendors. This strategy could enhance liquidity and provide opportunities for revenue diversification.

As the meeting transitioned to the general budget presentations, the discussions highlighted a proactive approach to financial management, aiming to keep more funds within the city’s banking system while safeguarding against fraud. The city council's engagement with these financial strategies signals a commitment to optimizing resources and ensuring fiscal responsibility moving forward.