In a bid opening to choose a bank as depository for City of Magee funds, the Board of Aldermen agreed to accept all three bids at their last meeting.
The best bid, which would provide interest at 1.46 percent, was offered by Peoples Bank. Trustmark came in second with a bid of 1.25 percent and PriorityOne bid at market rate. This means the rate could change daily. Approving all three bids would allow the city to call around and get the best rate at any given time.
This decision basically nullifies the bid process because the city can shop the rates as they choose. Conversely, it could also prevent the city from being able to take advantage of long-term rate guarantees. The bid is for a two year term.
Trustmark had been the primary depository for the city. However, the last time funds were available for deposit was from the proceeds of a $250,000 grant from the state. In that situation the city clerk called Trustmark and PriorityOne, which was selected as the depository for those grant funds.
Alderman Whitney Baker, an employee of PriorityOne, left the room for the vote in this circumstance as well as when the depository choice was discussed. Representatives from the State Auditor’s Office confirmed that this is the correct procedure but added that an exemption allows banks to have a representative on a city board and conduct financial business for the city.
Mayor Berry brought to the board for discussion the idea of getting an ATM machine to set up in the police department. He said people from out of town could use it to pay fines. He also reported that there are daily inquiries from customers at city hall wanting to know if the city has an ATM.
Alderman Baker told the board that PriorityOne sometimes leases space for an ATM or the fee could be based on volume of transactions. City Clerk Lane Yearby said they had inquired about the cost of a machine and it was $2,500 to $3,000. Baker said that was probably for servicing the machine.
Baker told the board they had explored the idea of customers being able to pay bills on-line. The board agreed that they should research the possibilities of options available.
The board also dealt with the issue of health insurance for city employees. The current plan is Blue Cross Blue Shield. According to David Dunn, a former insurance agent who is now director of the Recreation Department, the city is facing a 24 percent increase in health premiums. The city currently funds 70 percent of the cost for employees, and employees are paying 30 percent.
The increase would cost $5.10 more for individuals or $15.82 more for families on each payroll at the current 70 - 30 split. In total dollars, that means employee shares of insurance would see an increase of $5,300 per month and the city’s share would have increased $7,538 per month. The board opted to increase the city share to 72 percent, which will lessen the amount due from employees. Board members said the addition contribution helps offset the smaller raises that were given this year.
Berry cited high claims as the reason for the increase and said he does not expect that to go down for the next year. The city received $357,000 in claims and paid $369,000 in premiums, which includes a $1,500 deductible.
The board agreed to allow a change of designation of property owned by Bruce Lewis at 1108 Mill Drive, S.E. to industrial use. At the same time they said they would not allow truck traffic on Mill Road, citing that it was not built for 18-wheeler traffic. Berry said the traffic could be re-routed to 13th Avenue. The board approved.
A request from the Simpson County Development Foundation was tabled to allow for additional findings. The Foundation requested that the city pay the utility bill for a lift station at the industrial park where the Pioneer facility was located. The bill is $47 to $48 per month. The letter indicated that the station had been turned over to the City of Magee. Berry said while it did not seem like a lot, when the insurance increases are considered, those funds matter.
The vaping ordinance supported by the mayor was determined not to be necessary, according to board attorney Bruce Smith, who told the board that the current ordinance addresses vaping issues.
Berry reported that the city had received $32,000 from the state for internet sales tax. He encouraged the board to wait for another payment in six months to build up more funding before the funds were spent. These funds may only be spent on roads, bridges, water and sewer lines.
Berry said the proceeds from the auction sale of what he termed “junk” held last weekend brought in $29,000 for the city.
