Findlay May Change Bank Agreements Following New Rule From The State

12/06/17 – 5:10 A.M.

A change in depositary agreements made by the State Treasurer Josh Mandel could be bad news for Findlay. The Courier reports that city council heard about the new rule change at their Tuesday meeting. City Auditor Jim Staschiak said that in the past, banks were required to keep a treasury with enough money to guarantee the return of public funds should the bank collapse. The new rule has all pooled collateral pledged to the state treasurer rather than to public entities.

Staschiak said that this will result in fewer options for protecting Findlay’s funds and increased banking fees. He explained that before the rule change, every dollar the city had was guaranteed at a minimum of $1.02. After the rule change, this can be reduced to as little as 50 cents.

Council hurried legislation that will allow Staschiak to start signing new bank depository agreements. He said his goal is to maintain an excess of the 100 percent guarantee.