Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Lithonia officials consider switching banking to Regions after $2M county deposit
Summary
City staff told council that Regions Bank offered integrations and interest near 4% across accounts versus roughly 0.5% at the city's current bank; council was briefed on fees, a $2 million county deposit that just arrived, and staff said a phased change would return for a formal vote in January.
City staff outlined a proposal to expand the city’s banking relationship with Regions after staff said a $2 million county deposit arrived this week.
The city’s finance presentation said Lithonia currently maintains about 11 accounts at Citizens Bank, where interest on one account is about 0.5 percent, and that Regions had proposed interest “about 4% across the board,” along with digital tools that would integrate with the city’s accounting software. Staff noted Regions’ services would incur an estimated $368 per month in service fees but said the higher interest would offset those costs.
Why it matters: switching or expanding banks affects the city’s liquidity, how quickly large deposits can be accessed, and how much the city earns on idle balances. Council members asked about operational details — daily limits, customer service hours, and software integrations such as QuickBooks — and staff said Regions can be configured for higher transaction limits and offers stronger municipal support.
City Accountant Lisa Diggs and staff said the $2 million in county “spot” funds arrived earlier the same day, prompting a faster timeline for deciding how to hold those funds and to track project spending. Staff told council the change would be phased (not overnight) and that additional paperwork and a formal resolution would come back to council; staff also said a previously adopted bond-and-banking resolution already exists and this action would “add services” rather than replace the prior authorization.
Council did not take a final vote on switching banks at the meeting; staff said they expect to return with formal contract documents and a vote in January.
An immediate next step is staff follow-up to present a contract timeline, confirm rate locks and customer-service commitments, and provide a comparison of net interest after fees for council review.
