Hamburg Township Library
10411 Merrill Rd. P.O. Box 247
Hamburg, MI 48139
Hamburg Township Library Board of Trustees
October 8, 2009
Absent: S. Campbell, D. McIntyre.
Meeting was called to order by Eibler at 10:00am.
Motion to approve the agenda made by Crouch, seconded by Hocking. Motion carried.
Librarianís Report: Report will be given at next regular meeting.
Correspondence: There was no correspondence.
Old Business: Old Business will be discussed at next regular meeting.
1. Financial and Banking Concerns.
First National Bank of Howell has received a zero ∂ rating. This is of concern to both the Township Board and Library Board. The Library has a security agreement that backs 100% of its investments, but concern lies in the fact all library money is within this one bank. If the bank fails completely (meaning FDIC did not force a bank buyout or merger), there is concern over the handling and worth of the municipal bonds that are being used to guarantee the library's money. Semprevivo advocated strongly for moving the library's accounts out of First National Bank of Howell and into a banking institution which offers a CDARS program. After much discussion with Emmons regarding CDARS programs and other options, it was decided that diversification is the best route to take. Weber will work with Treasurer Evon to secure library funds in at least one other bank, gradually move funds to that bank and others, and to continually evaluate local banks.
Motion made by Hocking, seconded by Crouch to instruct Township Treasurer Evon to immediately close the money market savings account at First National Bank of Howell, and move the funds to the checking account at First National Bank of Howell. Motion carried.
Motion made by Crouch, seconded by Hocking to instruct Christine Weber to work with Township Treasurer Evon to open a new account up to $250,000.00 at either National City Bank or Fifth Third Bank, depending on service fees and security agreements. Motion carried.
Relevant Board Issues: None to discuss.
Call to the Public: None present.
Adjourn: Motion to adjourn made by Farrell, seconded by Hocking. Motion carried. Meeting adjourned at 11:06am.
Next Meeting is October 20, 2009 at 7:00pm.