Invitation to Co-sponsor Item 88 on Public Banks

[Andre Treiber]

Posted on behalf of Council Member Qadri:


Colleagues,

I’m excited to bring forward Item 88 which directs the city to perform a public bank feasibility study. A public bank is a bank that is owned and operated by a public institution, such as a municipal government, and operated in the public interest.

Local governments pay oversized fees to private banks to manage their deposits and payments, and a public bank can provide services and credit “at cost,” returning any profits to the public to be used for local development and services. The study will include requirements, legal barriers, benefits of a public bank compared to currently available banking and finance options, and potential governance models and business plans for establishment of a public bank.

Our current city budget is over-dependent on the “taxpayer” revenue model, private investment and like most cities in Texas constrained by GOP-imposed revenue caps. Previous city budgets have stated that due to these constraints simply covering the annual increase in our base costs alone – things like wages, rent, and insurance premiums – will require a fundamental change in the way we do business.

There is a national movement of state and local entities creating public banks with the intent to create loans for a public purpose, re-invest city revenues locally, democratize banking, and provide non-predatory banking services for the public. These investments are usually centered around addressing climate change, housing affordability, and supporting local economic growth.

I want to thank CM Fuentes, CM Vela and CM R. Alter for co-sponsoring this item and would like to invite all of you to join as additional co-sponsors for Item 88 on the July 18 agenda.

Sincerely,
Zo

[Leslie Pool]

CM Qadri, your item 88 to explore possibilities and potentials of a public bank is intriguing and I support investigating the concept.
I would like to be added as a co-sponsor. Thanks for bringing this item.

Leslie

[Jose Velasquez]

Thank you for bringing this item, CM Qadri. I am also interested in learning more about how a public bank might work for Austin.

I would like to be added as a co-sponsor.

CMJV