Ward 5 Councilman Charles Tillman said it was unfair to give the city council too little time to fully vet a proposal to move more than $76 million in cash from one bank to another. Photo by Trip Burns.
After banking with Trustmark for at least three decades, the City of Jackson is looking to make a change.
This week, Mayor Tony Yarber asked the city council to approve the transfer of $76.5 million in cash to BancorpSouth. Yarber explained that every few years, in December, the city solicits bids from banks to be the city's official depository.
Trustmark has apparently always been the low bidder, but this time around, BancorpSouth came in with the lowest offer, which was $20,000 less than Trustmark's offer, Yarber said.
"It's not only the lowest bid, but it's the best bid," Yarber told the council. The timing and urgency of the request did not sit well with several members of the council.
"It's a tough situation because I think we sort of made it clear that we're not the sort of council where anything involving large sums of money (can be presented) to us on Monday and (be approved) on Tuesday," said Ward 2 Councilman Melvin Priester Jr., who also chairs the Budget Committee.
"At the same time, you are dealing with a bid process, and (BancorpSouth) is one of the most reputable banks in town."
BancorpSouth, headquartered in Tupelo, trades on the New York Stock Exchange and has assets totaling about $13 billion. Trustmark is headquartered in Jackson, has about approximately $12 billion and trades publicly on the NASDAQ.
The two most senior members of the council, Ward 5 Councilman Charles Tillman and Ward 7 Councilwoman Margaret Barrett-Simon, were not comfortable with what they said was too little time to vet the proposal.
"That's not fair to this council," Tillman said. Barrett-Simon wanted to put the proposal into committee for further discussion.
Trivia Jones, the city's director of administration, said time was of the essence because switching accounts would require ordering new checks, moving lockboxes and petty cash accounts, and addressing software issues.
"If we push this to committee, that's going to push us into the new year, and that could delay some of our regular business," Jones told the council.
Michael Booker, a BancorpSouth representative, said the bank could set up the necessary accounts in a matter of days. The council tabled the item until its business meeting on Monday, Dec. 29.
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