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Lebanon council approves 24-month renewal of meter-deposit CD; treasurer reports Bank of Springfield interest gains
Summary
The council voted to renew a maturing meter-deposit certificate of deposit (about $97,000) into a 24-month First Federal CD at 4%. Treasurer Jess reported $19,434 in interest from Bank of Springfield for November and December and the council approved dialing back pledged securities with First Federal.
The Lebanon City Council voted on Jan. 12 to renew a maturing meter-deposit CD for 24 months after treasurer "Jess" recommended locking a higher rate.
"First Federal, I would recommend that we move forward with renewing this into a 24 month CD at 4%," Jess told the council, describing the funds as part of the meter-deposit escrow (about $97,000) that the city must hold and cannot spend. She said the meter-deposit funds are held to cover potential refunds to residents and that an early-termination fee would be an option if the money were needed sooner.
A motion to renew the CD was moved and seconded and passed in a roll-call vote. The clerk recorded affirmative votes from Pero, Marcinkowski, Smith, Washington, Velke, Bennett and others present.
Jess also updated the council on the transition of the city's operating funds to Bank of Springfield, reporting the city received $19,434 in interest from that bank for November and December combined, putting the city ahead by roughly $5,300 compared with 2025’s total through those months. She said some service fees appeared during the initial transition but that the treasurer resolved them and they will not continue.
The council also approved lowering the amount of pledged securities First Federal must hold to cover the city’s balances, consistent with the reduced funds remaining there. The treasurer noted FDIC insurance covers $250,000 and that pledged securities are used to protect amounts above that limit.
The council did not tie any of these steps to new spending; the decisions were presented as cash-management measures as the city completes its bank transition.
