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Stevensville council adopts bank-signatory policy requiring two signatures, clarifies municipal deposit protections
Summary
Council adopted Resolution 584 to designate authorized signers and adopt a bank account signatory and disbursement policy requiring two signatures on checking accounts; discussion clarified municipal deposits are secured by pledged securities beyond FDIC limits.
The Stevensville Town Council on April 9 adopted Resolution 584, which designates authorized signers for municipal bank accounts and adopts a bank account signatory and disbursement policy intended to strengthen internal controls and prevent unauthorized checks.
Under the adopted policy, the town requires two authorized signatures on checking accounts; with a clerk and treasurer in place, approved signers will typically be the treasurer and the mayor, with the council president serving as a backup signer if the mayor is unavailable. Staff explained the bank requires a named list of authorized signers and the town will submit the resolution to its bank for documentation of those signatures.
A resident raised a question about FDIC coverage limits for deposits. Mayor Cruz and staff responded that municipal deposits are secured through pledged securities obtained by the bank for public funds, a standard practice that protects government deposits beyond the $250,000 standard FDIC limit. Council members confirmed that claims and invoices will continue to require council approval before payment.
The council moved, seconded and voted to adopt the policy.
Next steps: the clerk/treasurer will submit the approved resolution to the town’s bank so the authorized-signers list can be recorded.
