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Council hears three bank bids, signals preference for BTC pending federal-rate movement
Summary
City staff and three banks presented proposals for the city depository; council members said they favored BTC Bank’s rate structure but postponed a final ordinance because of potential federal-rate movement and a planned first/second-reading schedule.
The Booneville City Council heard presentations from three banks on Sept. 15 as it evaluates a new city depository contract. First State Community Bank, Southern Bank and BTC Bank each presented proposals; council members expressed a preliminary preference for BTC Bank’s offer but did not adopt a final contract that night.
Representatives described services and community ties. Corey Field, First State Community Bank branch representative, emphasized the bank’s long-standing local relationship and said the bank can provide remote deposit, positive pay, ACH payroll and an in-house Mastercard credit-card program supported by a local business-services team. Nathan Todd, First State regional business-services support, said First State can meet the city’s service requirements without external partners.
Lonnie McCullough, branch president for Southern Bank, said Southern has a multi-state footprint and local involvement in community activities; Mary Hooser and Anita Pierce described branch operations and community engagement. Southern’s presentation highlighted a larger asset base and local service presence.
Curtis Carter, Booneville market president for BTC Bank, said BTC bases its proposal on the 91-day Treasury bill and described a structure that, at the time of the meeting, equated to a 4.05% yield with a 4.5% ceiling and a 1% floor. Carter also said BTC would provide a $1,000 annual credit to offset the city’s check costs and meet the city’s service requirements with no additional fees.
Council members and staff discussed timing and interest-rate risk tied to a Federal Reserve decision expected the following day. City staff said banks were asked to hold proposals through Dec. 1 and that staff could proceed with a first and second reading in October if the council wanted to finalize a choice. Several council members said BTC’s rate structure appeared to offer the best return to the city on a purely empirical basis; at least three council members voiced support for BTC during discussion.
No formal depository contract was approved at the Sept. 15 meeting. The council directed staff to prepare the ordinance language and to proceed with readings; the city administrator said he would proceed with a first reading and a second reading in October unless a significant rate change after the Fed decision altered the council’s direction.
The selection process will return to the council for formal readings and a vote; staff noted choosing a depository typically requires follow-up administrative steps and, if adopted, a transition period to move accounts and services to the chosen bank.
