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Commission tables proposal to move municipal accounts to Horizon Bank pending committee review
Summary
Commissioners asked for more due diligence and numerical detail before consolidating multiple city bank accounts at Horizon Bank. Staff estimated about $6,000 in additional annual interest; the measure was tabled and referred to Personnel & Finance.
The City Commission voted to table a staff proposal to establish bank accounts with Horizon Bank and move several Fifth Third accounts after commissioners raised concerns about consolidating municipal funds and the absence of detailed cost comparisons.
Staff described the memo as recommending establishment of multiple Horizon Bank accounts ‘‘for all city accounts’’ with the city clerk and mayor as signers, and said the change would reduce fees and generate modest interest income. The city manager told the commission the Horizon arrangement would produce “about $6,000 in interest income” compared with the current arrangement.
Several commissioners objected to the lack of committee review, asked which accounts would be moved, and requested hard numbers showing fee savings and interest earnings. Commissioner Clark Griffin and others said major banking changes should go through the Personnel & Finance committee; Commissioner Kennard and Commissioner Henry emphasized that municipal funds should not be concentrated in a single bank without full vetting and described the need for safeguards and clearer signatory policy.
Commissioner Isom moved to table the resolution and refer it to the Personnel & Finance committee; the motion carried on a roll call. The clerk said the staff previously identified about 15 accounts at Fifth Third that would be affected; staff said the city’s income-tax account would remain separate where required by law.
What happens next: The measure will return to the commission after the Personnel & Finance committee reviews the proposal and provides comparative numbers and a recommended signatory policy.
