Wednesday, August 20, 2008
STAFF REPORT
COLUMBIANA —The city will lose a small amount of money by withdrawing its funds early from the Home Savings and Loan.
Kevin Smith, the city’s director of finance, told city council Tuesday night the city would lose $1,800 of the $500,000 it had invested at Home Savings.
The loss would be a penalty for early withdrawal.
Home Savings was recently ordered by federal and state bank regulators to diversify its funds to less-risky investments.
“Home Savings and Loan doesn’t want government funds,” Smith said.
And though relations with a local Home Savings official were good, Smith said that it appeared that Home corporate officials weren’t interested.
Though Home Savings isn’t in danger of folding, Smith said, he thought it would be best to withdraw the funds to avoid any problems.
Council approved an emergency measure to remove its funds and reinvest the money elsewhere.
Smith said some financial institutions are not interested in government funds, but others are and are offering good rates.
In other action, council gave first reading to an ordinance to provide employee compensation for a pending program.
The city still has a mayor’s court, although some cases, such as drunken driving, are sent to Columbiana County Municipal Court for disposition.
City Manager Keith A. Chamberlin said the program isn’t ready to start and won’t be for several months.
Many people don’t pay fines from mayor’s court, but the city wants to be able to have some people work off fines by doing cleanup jobs.
Chamberlin said some of the offenders are people who have failed to pay their city taxes.