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Lennox council splits municipal banking, approves BNSF crossing agreement and deeds Garfield Street lot to local developer
Summary
After reviewing three local bank proposals, the Lennox City Council voted to move checking and money-market accounts to American Bank and Trust and put reserve CDs at Security State Bank; the council also approved a BNSF crossing agreement (city cost ~ $150,000) and voted to deed 505 South Garfield Street to a local development corporation for residential redevelopment.
The Lennox City Council approved several administrative actions including a division of municipal banking services, a construction agreement with BNSF to widen a railroad crossing and a deed transfer of a city-owned lot for residential development.
On banking, staff presented three responses to a November banking RFP from American Bank and Trust, First Interstate Bank and Security State Bank. Staff summarized that First Interstate offered a higher initial rate (4.1%) for six months but American Bank and Trust proposed a 4% offering over a three-year period with interest paid on checking and sweep balances. Tom Murray of American Bank and Trust (Speaker 9) noted tradeoffs in the proposals, and described reciprocal-deposit arrangements and networks such as IntraFi that maximize FDIC coverage by allocating deposits across member banks. Bill Gould (Speaker 8), representing Security State Bank, emphasized local lending and pledged collateralized bond portfolios to secure deposits and keep funds available locally.
After discussion about rates, availability of daily statements, minimum balance mechanics and the possibility of splitting municipal funds for security and liquidity, Councilmember (Speaker 4) moved to allocate checking and money-market business to American Bank and Trust and to place reserve CDs with Security State Bank. The motion was seconded and the council voted in favor.
On infrastructure, staff presented an agreement with BNSF to widen the North Elm Street railroad crossing as part of the Central Basin project; staff estimated a city cost near $150,000, a line item they said is eligible under existing financing. Council approved the agreement.
On property, the council considered a request from the local area development corporation (LADC) to convey a long-held vacant city parcel at 505 South Garfield Street for residential redevelopment. Staff said the parcel was acquired for a potential right-of-way but that a residential use would return the property to the tax rolls; the council voted to deed the lot to LADC and directed staff to prepare transfer paperwork.
Council members said they expect to revisit longer-term investment allocations, debt funds and CD maturities in future sessions as part of broader financial planning.
