The City Council recently introduced/approved a new ordinance intended to prohibit political interference from the day-to-day operations within the City Treasurer's Office.
Council President Mixon: " . . . all placement, use, investment . . . at sole discretion of City Treasurer . . . in accordance with all laws pertaining to public funds . . . City Treasurer is appointed by Council . . . based on education, training, experience . . . Councilmember or Mayor should have no input . . . remove politics from this . . . Treasurer's the expert in field . . ."
Apparently the Mayor's transfer of some city accounts ($3 million reserve funds) from one bank (Citizen's) to another (Compass) last summer, which resulted in a considerable loss of revenue for the city, instigated the change.
In recent media reports Mixon stated: "I learned we were losing $4,000 a month by making that transfer." Mixon added another transfer made by the Mayor to Compass Bank (Utilities payment lock box, from BB&T) is costing the city an additional $2,000/mo.
Mixon: "One of those decisions will cost the city $50,000 a year . . . the other $24,000 . . . the Citizens account earned 2.5% interest . . . while Compass is less than 1%."
In a statement made at a recent Council meeting, the Mayor defended his actions calling the whole thing a "misunderstanding"--and claimed he received assurances from Tim Rosson (Regional Vice President of Compass Bank) at a social meeting (Mayor's Prayer Breakfast) that the city would incur no additional costs.
The Mayor also objected to the Treasurer reporting to a "non-elected" official, but Councilmember Quinn pointed out in the video that is not permitted by the ordinance.
In response to the new ordinance and revelations concerning the city's loss of revenue, when asked about the propriety of the Mayor's personal campaign finance loan from the same bank (Compass), one city official privately wondered what the loan's "terms" may be.
This is page 2 of the Mayor's 2009 annual campaign finance report on file at the county probate office:
Comments