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Board approves Citizens National Bank depository bid for reserve certificates of deposit at 4.2%
Summary
After questions about term and additional deposits, the board voted to award municipal depository business for reserve and surplus funds to Citizens National Bank of Meridian at an offered rate of 4.2 percent for one-year certificates of deposit.
The Olive Branch Board of Aldermen voted to accept the highest and best bid for municipal depository services for reserve and surplus funds, awarding business to Citizens National Bank of Meridian at an offered rate of 4.2 percent for one‑year certificates of deposit.
City finance staff described these funds as reserve or backup funds tied to revenue bonds; bidders provided rates for certificates of deposit the city could establish during the remainder of the term. Finance staff said the banks offer was the top bid among 13 responses.
Aldermen asked whether additional funds were likely to be added during the term and whether the quoted rate would apply to renewals; finance staff and the clerk said the process is conducted yearly and the city would return to the market for new CDs as needed. The board moved and approved the recommendation to use Citizens National Bank for this depository business.
Motion and outcome: The motion to approve Citizens National Bank was made by Mister Earhart and seconded by Mister Collins; the board voted in favor and the motion carried.
