Lebanon treasurer recommends Bank of Springfield; council moves to draft resolution

Treasurer Jessica presented the results of a solicitation for banking services and recommended the proposal she labeled as "Bank 4" (Bank of Springfield) for the city's operational accounts. Jessica said she contacted 10 banks, received formal proposals from six and four sealed proposals, and used the city's average on-demand account balance (about $4.5 million) to estimate potential additional interest revenue of roughly $153,000 annually under Bank 4's proposal, which guarantees 3.75% on all accounts through year-end and thereafter would track the federal discount rate minus 0.65 percentage points.

Jessica highlighted services the bank offered that address staff concerns: a remote-deposit scanner on the city staff's desk, positive-pay fraud protection to reduce check-fraud losses, and a local banking team (Pat Mandeville and Eric Huber among those who met with staff). She said the bank would provide single-point phone contacts rather than an 800-number and described collateral and custodial arrangements to protect city funds.

Jessica also disclosed a potential conflict of interest: she works for the Bank of Springfield's insurance agency, not the bank division that would handle the city account. She said the proposals were sealed and opened with committee members present, that the mayor had been cc'd on communications, and that the committee had reviewed proposals before recommending Bank 4.

Council members raised process questions about whether a request-for-proposal should have been presented in committee earlier, how many banks had been solicited and how mileage from city limits was measured, and potential burdens on staff for driving to a branch to deposit cash. City staff and the treasurer responded that remote deposit options and alternate logistics could address cash concerns and that more details would be provided in the resolution paperwork.

A motion was made and seconded to authorize the city attorney to draft a resolution reflecting the committee recommendation; the paperwork would return for committee and full-council consideration. The motion was procedural (to draft paperwork) and did not approve final contract terms or a binding agreement.

Next steps: the city attorney will prepare draft resolution language and the item will return to committee for review of contract and operational details before a council vote on any contract or ordinance.