Freeport City Council decided this week to stick with its current bank for the city’s depository services.
In July, the city put out advertisements requesting for bids on a new bank. Officials took bids through Aug. 1 and received bids from Texas Gulf Bank, First National Bank of Lake Jackson, First State Bank of Clute and Moody National Bank, finance director Stephanie Russell said.
Russell and staff suggested the city move to accept the bid from Texas Gulf Bank because it presents the best potential interest earnings over the course of the next five years, she said.
“All of these were given consideration with their potential interest earnings throughout the life of the agreement, bank fees, bank service capabilities, responsiveness, online banking technology and reference checks,” Russell said.
Valley View consultant Bill Koch helped review the bids.
The city reviews whether it should stick with its current bank every five years. The last time the council decided on a bank was in 2014, Russell said.
The accepted bid includes a two-year contract and has an option for three one-year continuations under the same terms as the first two years, Koch said.
Putting out bids competitively helped to secure lower service fees with Texas Gulf Bank, City Manager Tim Kelty said.
Besides accepting a bid on a city bank, council adopted the tax rate and budget for the upcoming fiscal year.
The city previously hosted hearings about both the tax rate and budget.
The adopted tax rate is 62.8 cents per $100 of appraised property value. This is the same as Freeport’s current property tax rate, but residents might see a rise in property taxes due to an increase in property value in the area, The Facts previously reported. The adopted rate will take effect Oct. 1.