FARMINGTON — The Franklin County treasurer and commissioner chairman clashed Tuesday, for the second time since March 1, over moving about $2 million in federal funds to the bank that offers the highest interest rate.
After a lengthy discussion the treasurer agreed to have her and her deputies with assistance of interim Clerk Vickie Braley, former county finance manager, to call other banks to find out interest rates. Treasurer Pam Prodan will bring a proposal back to the board May 3.
Commissioner Terry Brann of Wilton and Prodan of Wilton are both elected to their positions.
Brann brought in representatives of the Franklin Savings Bank in Farmington to the commissioners’ meeting Tuesday to talk about interest rates and what the bank could offer the county.
Prodan said she was not aware the presentation was going to happen.
Beckie Bowering, the bank’s business solutions officer, said the bank would offer 0.60% interest rate on about $2 million, which would result in an estimated $11,618 interest earnings annually. Bowering told commissioners about a fully-insured cash sweep checking account the money could go in where it is estimated that the monthly earnings would be $968.18. The target balance for the account is $100,000. The money is in another local bank making 0.15% interest. If more money was deposited, the interest earnings would be more.
There would be a $75 monthly fee for the account, she said. The bank reviews interest rates on a quarterly basis, she said.
Bowering said commissioners could probably think of something in the budget to spend the estimated $11,618 in annual earnings on.
The county has received half of its $5.86 million allotment of American Rescue Plan Act funds. The other half is expected to be received later this year.
The other bank where the money is located had offered a higher rate than normal last year but nothing was done with it, Braley said.
Prodan previously said she hasn’t had the time or resources to move the federal funds. She also didn’t think it would be cost effective considering interest rates change and ARPA funds are temporary.
Commissioners can spend the interest earned on anything they think is needed, which could save taxpayers’ money. The earnings would not be held to the constraints the actual ARPA funds can be spent on.
Bowering said she would assist Prodan to make the transaction easier and would come to the county office to do paperwork and assist her when needed.
Former Strong Selectman Mike Pond, the county’s road supervisor, said the selectmen had representatives of six banks come in to give a presentation and the board chose Franklin Savings. It worked well, he said.
“I think it is up to the treasurer’s department to come to you with an offer,” Prodan told Brann and Commissioner Lance Harvell of Farmington. Commissioner Clyde Barker of Strong was ill and could not make it to the meeting.
Prodan agreed it would be great to have that money and she was willing to look into what bank would offer the highest rate.
“It is really up to the treasurer to make the decision,” Prodan said.
Harvell asked Prodan if she could come up with a proposal within 30 days. That is the length of time, the bank’s offer is good for.
Brann motioned to transfer the money to the bank offering the highest interest rate to get the biggest bang for the buck for county residents. It was not seconded.
He said the county is getting about one-third of the funds that it should.
Prodan said it was not in his discretion to make that vote.
Brann disagreed.
“You cannot issue an edict to the treasurer about that, Mr. Chairman,” she said, “I am not going to follow an edict.”
Brann said Title 30, 102, gives county commissioners final authority over the operation of all county offices by elected or appointed county officials.
There is an exception in circumstances for which a county personnel board has been established in regard to the powers and duties of hiring and firing of county employees. The county commissioners must act as a board and not on an individual basis in exercising this authority, according to the statute.
“Commissioners, as the counties’ chief elected officials, are ultimately responsible for the fiscal operations and policy decisions affecting county government,” according to the Maine County Commissioners Association’s website. Additional duties include municipal tax abatement appeals and hearings on maintenance of town roads. They also serve, in effect, as the municipal officials in Maine’s many unorganized territories.
“Each county has an elected or an appointed treasurer who maintains the county’s financial records,” according to the association. The treasurer is also responsible for investment of tax revenues.
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