By Anton Riecher
In a compromise reached with Lytle State Bank, the Lytle City Council voted unanimously at its March 9 meeting to amend its depository services agreement with the bank to include creation of a $2 million money market account for city funds.
Officials with the bank raised concerns in January that the council’s decision to invest nearly $7 million in city funds in TexPool, a low-risk pool providing investment services to more than 2,750 communities across Texas, rather than locally with the bank would negatively impact the Lytle economy.
In other financial business, the council also voted unanimously to approve the issuance of $6 million in certificates of obligation to support future city utility projects.
Regarding the new bank agreement, City Administrator Zachary Meadows said that after considerable “back and forth” between the city and the bank a workable negotiation was finally reached.
“(The bank) would like to amend the existing depository agreement to establish a money market account that would stay at a constant $2 million,” Meadows said. “If it drops below $2 million for any amount of time as outlined in the agreement then we would have a limited amount of time to get it back up to $2 million.”
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