Bethlehem IDA reviews January–February finances and questions bank service charges

The Bethlehem Town Industrial Development Agency reviewed its January–February 2026 financial statements and raised concerns about recurring bank service charges on accounts that hold substantial balances.

Al, the finance presenter, reported that the agency’s cash, prepaid expenses and other assets give total assets in excess of $1 million, and noted a CD matured in February producing about $13,007.56 in interest. On revenues and expenses he said fee income is ahead of budget but contractual expenses are front-loaded, and the agency currently shows a modest net ordinary income position for the year-to-date.

Board members focused discussion on bank fees. Ted De Barbieri said he had emailed the IDA’s M&T account representative asking for an explanation of service charges on an account with more than $450,000 in checking; he said he expected a reply. “She should respond to my request,” De Barbieri said.

Al acknowledged he received the message and observed that municipal banking setups have changed in recent years; he noted M&T pays some interest and collateralizes deposits but the service charges can still outweigh interest earned on the account in some months. “Our interest is less than the service charge,” Al said, describing the practical effect on monthly returns.

Kate Hedgeman suggested the finance committee and staff may reach out to other banks with municipal banking departments and consider moving deposits if a better arrangement is available.

The board did not approve any banking changes at the meeting but asked staff to seek a response from M&T and to discuss bank alternatives at a future finance committee meeting.