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Jackson names JPMorgan Chase public funds depository after debate over branches and fees
Summary
After extended questioning about branch access, fees and interest rates, the Jackson City Council designated JPMorgan Chase as the city's public funds depository for 2026-2029. Councilmembers were split over out-of-state depositories and the availability of branches for city employees; the measure passed 5-2.
The Jackson City Council voted on Feb. 10 to designate JPMorgan Chase Bank as the City of Jackson's public funds depository for 2026 through 2029.
CFO Jillian Caldwell and CAO Peter Taberson presented the banking bid analysis, saying the administration evaluated interest rates, banking-service fees and other factors. Taberson told council the administration recommended a four-year depository term and noted the state statute on banking bids had changed in 2024, allowing a term longer than two years.
Council members pressed staff on the trade-offs between interest rates and service fees. Councilmember Clay pointed out Renaissance Bank's higher headline interest rate on some lines and asked whether JPMorgan's free-fee period offset the rate difference; Caldwell said staff did preliminary calculations that supported JPMorgan's overall value because it waived fees for the first 15 months. Councilman Stokes expressed concern that the city's funds would be held in an out-of-state bank and worried about access to branches for low-income residents and city employees. Dan Lally, a representative of JPMorgan's Government Banking Group, told the council the bank has two local branches and participates in Mississippi's collateral pool.
After discussion, council approved the designation of JPMorgan Chase as the public funds depository by a 5-2 vote. Supporters noted the projected improvement in interest earnings on city deposits (estimated by one member as roughly $2.5 million on $100 million at 2.5%), while opponents cited branch access and community-banking concerns.
Next steps: the administration will complete the depository agreement and begin transition procedures; councilmembers asked for monitoring of service fees and for updates if branch access or services change.
Attribution: reporting draws on remarks by CFO Jillian Caldwell, CAO Peter Taberson, Councilman Stokes and JPMorgan representative Dan Lally from the Feb. 10 meeting.
