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Council discusses $40M transfer to Regions Bank, seeks more checks and quarterly reporting
Summary
Council members questioned a recent transfer of a large investment fund to Regions Bank, discussed adding checks for large transfers and oversight of the CFO’s authority, and staff committed to quarterly investment reporting to council.
Milton council members resumed a discussion of the city’s investment policy after staff disclosed that nearly $40 million had been transferred from Truist to Regions Bank as part of a change in investment vehicle. Council members sought clearer written procedures, additional signers for transfers and regular reporting of investment holdings and maturities.
Councilwoman Farrow led the discussion, saying she had asked for details after discovering the transfer and noting the existing investment policy requires a written procedure and references an ordinance that has not been updated. City staff said the ordinance still names the city clerk as the person responsible but that code cleanups will reassign authority to the chief financial officer and make policies the governing specifics while keeping the ordinance generic.
Why it matters: Large transfers of public funds trigger questions about checks and balances, liquidity for emergencies and how council oversight is informed. Council members emphasized a need to know when the city changes investment instruments or institutions so they can ensure public transparency and that liquidity remains available for emergencies such as hurricanes.
Points raised and staff commitments included: a staff review and ordinance updates to reassign duties from the clerk to the chief financial officer; a written investment procedure to be developed and presented at the July work session; consideration of requiring two officials (mayor plus clerk or mayor pro tem in the mayor’s absence) to sign transfers rather than a single signatory; and a promise by staff to provide quarterly investment reports in council packets showing amounts in 30-, 60-, 90- and 120-day Treasury bills, maturities, rates of return, fees and balances.
Staff explained the transfer was made to take advantage of higher interest on Treasury bills, that Treasury bills are purchased directly from the U.S. Treasury and that the city maintains liquidity by staggering maturities (30/60/90/120 day approach). The city said the transfer was completed after Regions required a formal resolution authorizing the signers. Staff also explained that the city already reconciles statements monthly and that records are public.
No formal policy change was adopted at the meeting; staff said they would implement improved communications immediately and bring proposed ordinance and procedural language to council for consideration in coming weeks.
