County Talks Bank Building, Bank Account and River Bank

Fayette County Commissioners renegotiated the County’s banking services agreement with Fayette Savings Bank (FSB) at a meeting last Thursday, May 13.

The County went out for bids for banking services two years ago and awarded the bid to FSB. The contract was for four years and stipulated that the parties could renegotiate interest rates after two years.

Rodney Kalich, FSB’s chief financial officer, told the Commissioners that treasury rates were at an all-time high two years ago when his bank bid for the contract.

At that time, the bank offered the County interest rates of 2.72 percent for certificates of deposit and 2.23 percent for the County’s checking accounts. Last Thursday Kalich said the 91-day treasury note rate had fallen from more than two percent to just one basis point (0.01 percent).

FSB asked Commissioners to agree to new rates of 0.45 percent for checking accounts and one percent for certificates of deposit for the next two years.

Commissioners agreed to the change. They will formally sign the changes at a later date. In other business at Thurs

In other business at Thursday’s meeting, Commissioners signed an order authorizing the County to borrow $525,000 to purchase and renovate the old Pioneer Bank Building on the Square in the La Grange.

The County plans to move the Tax Assessor-Collector and County Auditor office to the building once renovations are complete. The County will pay for the project through a tax anticipation note, a type of debt instrument whereby the County pledges a portion of its tax revenue towards the loan. Carmine State Bank won the bid for the tax note with an interest rate of 1.95 percent.

Also at Thursday’s meeting, Assistant County Attorney Blake Watson advised Commissioners against putting a gate up at the end of Brandt River Bottom Road. Commissioners discussed the idea two weeks ago after Pct. 4 Commissioner Drew Brossmann reported on gunshots, littering and vandalism at the end of the road which leads to the Colorado River near Holman.

“After looking through everything, I don’t think the County should put a gate up across there,” Watson said.

Watson said property records show that the county road easement ends a short distance from the river bank. The neighboring property owners own the land from the point the easement ends to the river.

He said the neighboring property owners could put up a gate on their property if they wish.