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Morning Sun
  • Tied bank bid creates quandary

  • A desire to patronize all local businesses left the Arma City Council in a tough spot Monday evening.



    The council took bids for interest rates from both local banks, University Bank and Community National Bank, for a one-year, $100,000 CD, and received bids that could be considered both significantly different and identical.

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  • A desire to patronize all local businesses left the Arma City Council in a tough spot Monday evening.
    The council took bids for interest rates from both local banks, University Bank and Community National Bank, for a one-year, $100,000 CD, and received bids that could be considered both significantly different and identical.
    The city’s accounts reside at Community National Bank, which bid an interest rate of 0.50 percent.
    University Bank bid 0.25 percent, but said if the city had a checking account at the bank the interest rate would be 0.50 percent.
    “Our job is to represent the city and to make sure to represent the city in the most favorable way possible,” Mayor Buddy Bualle said.
    He said both businesses are very supportive of the community and arguments could be made for going either way or splitting the bid.
    Council members generally favored opening an account at University Bank to enable both to compete, but council member Rock Anderson said he felt a bid should be accepted on current conditions and that the city instead should look at getting policies in place for future tied bids.
    Bualle suggested accepting the higher bid on the current terms, opening an account at University Bank and being prepared to consider the question again in May.
    “I think if we don’t, our bid process loses credibility,” Anderson said.
    The council moved to accept the Community National Bank bid and to open a checking account at University Bank.
    In other business,
    The council discussed goal No. 1 of its 12 city goals, which is  to enter into a discussion with the residents on W. South St. to discuss the possibility of annexation. After discussion on the positives and drawbacks for all parties, the council agreed to create an outline of the facts and talk with those in that area who would be affected by any changes.
    They also talked with owners of structures deemed dangerous.
    Tommy Wilson talked about the property at 314 S. Pine and said he tore down a stump that was prompting complaints and has secured the premises. He said renovations will take a while due to financial and health difficulties. Council members said as long as the property is clean and safe they can be patient.
    Owners at 305 E Perry and 305 E Main did not show up, and council members agreed to invite them to attend the next meeting, otherwise the city will proceed with condemnation.
    Council members voted to approve Washington Township board meetings at the library, to deny a request to borrow tables, to refinance a sewer loan for a savings of almost $24,000 over the remainder of the life of the loan and to take no action regarding the foreclosure sale on the Farris property.
    Page 2 of 2 - The council also hired A.J. Elmer, and Bualle performed the swearing-in ceremony for Elmer and Ryan Deal, who both will serve as part-time police officers.
    The proposed open house in March for the library was postponed due to the fact the facility won’t be ready. Instead, it has been tentatively set for April 15.
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