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Resident raises conflict-of-interest concerns after town moves $3.5M to single bank
Summary
Public commenters told the Stevensville Town Council on June 4 that the town consolidated nearly $3.5 million into one bank and asked who authorized the move, whether a written pledge covers deposits above FDIC limits, and whether the finance officer has a relationship with a bank board member, a claim council said it will investigate.
A Stevensville resident told the Town Council on June 4 that the town moved what the speaker estimated at "about $3.5 million" into a single account at a bank identified in the meeting as Security Bank and asked who authorized the consolidation and whether a written pledge covering deposits above the FDIC $250,000 limit exists.
The resident said the town had historically spread deposits across multiple banks and described the consolidation as risky, adding, "If they fail, they're broke and they won't be able to cover the money." The speaker also alleged that the town's finance officer is related to a board member at First Security Bank and asked that relationship be examined as a possible conflict of interest.
Mayor Cruz and council members said they would not answer all questions immediately and would provide a formal report at the next regular council meeting. The mayor told the council that he and Council Member Smith met with Gina and Robert at the bank earlier in the day and that a formal report should address the concerns raised.
Marilyn Wolf, who identified herself as a Stevensville resident later in the public comment period, reiterated the point that consolidating all town revenue into one account is risky, asked whether the council had approved the account and whether a legal contract exists, and urged the council to provide answers for taxpayers.
Council members asked staff to check bank records and receipts going back to 2021 to confirm whether reimbursements and deposits from grant awards and other sources had been received and correctly coded; staff agreed to search the records and return findings at the next meeting.
The council did not take formal action on the bank question at the June 4 meeting; Mayor Cruz said a written report would be prepared for the next meeting.
