Public Banking + Depository Practices

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Ashley Richardson
Posts: 61
Joined: Mon Apr 17, 2017 1:34 pm

Public Banking + Depository Practices

Post by Ashley Richardson »

On behalf of Council Member Tovo -

Dear Colleagues,

Thanks to those of you who expressed support for the public banking item contained within my proposed amendments to Mayor Adler’s Item #57. In my remarks I alluded to previous conversations and Council deliberations regarding how to best align our community values with our banking practices. Resolution No. 20120301-048, sponsored by then-Council Member Morrison, directed the City Manager to assess the city’s depository contract, explore the feasibility of banking with a credit union or local or regional bank, and provide recommendations to incorporate community benefits as a consideration within the Request for Proposals (RFP) for the City’s depository contract. Council Member Kitchen previously submitted questions in the Council Q&A when our depository contract was up for renewal, and I previously gave direction to shorten the length of our depository contract so these conversations should occur. I’m including the details of those previous conversations and actions below.

Since 2012, other cities throughout the country have implemented refinements to their depository services contracts’ Request for Proposal processes to include community benefits as part of their scoring criteria. I recall that St. Paul was a community that I admired in this respect. Identifying and vetting these practices could help align the City’s depository services contracts with the City of Austin's equity and community development goals. My staff and I have had conversations with staff on this point, including whether we could include additional information in the Council’s back-up such as the selected banking institution’s Community Reinvestment Act rating.

If anyone would like to reinvigorate this conversation, I would encourage such a collaboration, and I welcome you to contact my staff.

Previous Council Action and Staff Responses

1. Resolution No. 20120301-048 - Approve a resolution directing the City Manager to review the city's current banking policies and make recommendations on changes to give preference to banks that support community reinvestment goals: ... 120828.pdf
Sponsor: Council Member Laura Morrison
Co-sponsors: Council Member Kathie Tovo, Mayor Pro Tem Sheryl Cole

2. March 19, 2012 Memo Response to Resolution No. 20120301-048: ... 120907.pdf

3. April 25, 2012 Memo Response to Resolution No. 20120301-048: ... 120924.pdf

4. April 5, 2017 Memo in response to Council Direction regarding the City's Depository Contract: ... 120951.pdf

5. April 13, 2017 Council Member Kitchen's Council Q&A Item #19 - Page 11: ... 121014.pdf

6. Mayor Pro Tem Tovo's April 13, 2017 Amendment to Item #19: ... 121035.pdf


Senior Policy Advisor
Office of Kathie Tovo, Council Member District 9