Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Finance topic
No spam. Unsubscribe anytime.
Stevensville officials outline banking move that added roughly $335,600 in interest
Summary
Town finance staff told the council the town moved most deposits to First Security Bank in July 2023 and has realized substantially higher interest income (presenter reported $335,626.17 in total since the transfer); staff said deposits remain secured by pledged securities and annual audit checks.
Stevensville finance staff presented a multi‑year review on June 11, saying a decision to move nearly all town deposits from Rocky Mountain Bank to First Security Bank in July 2023 produced a large increase in interest earnings.
Robert, a town staff member who co-presented the analysis, told the council the town earned $335,626.17 in interest since the transfer. He said First Security’s higher rates — compared with the prior certificates of deposit — multiplied monthly interest receipts and that staff allocates earnings back to the funds that hold the principal.
Finance officer Gina Trove described the mechanics: banks holding public deposits must pledge securities to cover amounts above FDIC limits, the town’s pledged securities are monitored by the auditor, and the administration receives documentation from custodians showing the collateral backing public deposits. She told the council auditors have not issued findings related to pledged securities in recent audits.
Council members and residents asked whether staff had compared rates with other local banks before the transfer and whether concentrating funds in one institution creates operational or reconciling difficulty. Jim Jab, a resident, asked whether the town had shopped rates during the last three years. Robert and Gina said staff had not continuously re‑checked every bank but defended the move as the result of a multi‑month review in 2023 and said a later bank consolidation would likely have moved accounts automatically if staff had done nothing.
Gina and Robert emphasized that the town’s accounting software and the way funds are pooled make managing multiple banks harder and could reduce aggregate earnings. They also noted that the town’s auditors verify pledge securities and that the town has not received audit findings on this matter.
The presentation included details of fund allocations (the airport, water, sewer, and general funds each receiving their proportional share of interest), the airport’s recent fuel sales increase, and an explanation that some unusual accounting timing (revenues recorded in one fiscal year but received in another) affected year‑to‑year comparisons.
The council did not vote on any new banking authorization at the meeting. Members discussed whether staff should re‑survey local institutions for rates going forward.
