In previous City Advertising and Promotion Commission meetings commissioner Robert Schmid has expressed a desire to diversify the CAPC’s bank accounts, and commissioners considered the topic during their Wednesday, March 25 meeting.
CAPC accounts currently sit in one bank. Tourism Director Mike Maloney explained the CAPC has bid it out in the past with little success, but noted that the city has recently diversified accounts with banks.
Finance Director Ty Reed said the CAPC has recently received two CDs, one 12-month and another 6-month, and the CAPC would need to wait until the 6-month CD expires. He said the commission could choose not to bid it out and go to a specific bank if they wished, once they mature.
He explained the reason for diversification is for if a bank fails. FDIC insures $250,000 and if a bank fails the FDIC arranges for another bank to acquire it and that insured amount should be available in one to two business days. He continued the rest of deposits are secured by pledges from the bank, banks invest in securities, and they pledge the amount to cover deposits. If the bank fails, the acquiring bank will get those securities and the CAPC would have access to funds once more in one to two business days.
Schmid explained his concern is that difficult times may be coming and should anything happen “we’re not playing everything on one card.” Reed explained that a third-party custodian holds those securities for anything over $250,000, and if the bank fails the CAPC is guaranteed to receive its money back. He suggested again for the 6-month CD to mature before moving money and agreed to bring the bids available to the commission.
Commissioners also lightly discussed reaching out to banks throughout the state. Schmid asked if online banks would be a possible which Maloney explained he would have to speak with legislative auditor about it.
In the Tourism Director’s Report, Maloney thanks community members for attending the Quorum Court meeting on March 18 in support of town’s wedding industry. He also went over website changes Kaitlyn Jerrell had worked. He showed commissioners new pages for locals, including the ability for local businesses to have access to photos to use for social media and marketing, just requiring credit to the CAPC for use.
He also showed commissioners the auditorium website, which he said he is using to show promoters what the Auditorium has to offer them, as well as the show photography and upcoming shows. Maloney bragged about the lineup so far for the year including Eric Gales on May 28. He also covered public relations updates including a writer for Atlanta Magazine coming in early April and other magazines and shows Eureka Springs has been featured in. He said staff and Madden Media would be joining a Zoom call on March 30 with Arkansas Heritage Parks and tourism and state tourism PR writers to speak on what is going on in Eureka Springs.
In old business, the CAPC affirmed that Danyelle Harris would begin helping with the minute taking during meetings with commissioner Heather Wilson remaining as secretary.