A local bank official told the Union County board Monday morning, that the “lowest” bid is not always the “best” bid when awarding county business.
Comparative impact of banking institutions
James R. “Bo” Collins, president of BNA Bank, reminded members of the Union County Board of Supervisors of the philanthropic work BNA Bank did last year, and every year for decades, for the community. BNA paid $153,829 during 2018 into Union County government and philanthropic operations. This includes ad valorem taxes, contributions to the Union County Historical Society, the Tanglefoot Trail, the UCDA, Main Street, and Magnolia Civic Center,
According to publically available sources, during the same period Bancorp South contributed $18,292 (12% of the amount contributed by BNA). Renasant Bank contributed $17,345 (11% of BNA’s contribution). Regions Bank contributed $5,359 (3% of BNA’s contribution).
Local banks benefit local citizens
However, Supervisors recently placed an $8.5-million one-year certificate of deposit (CD) with Bancorp South. Bancorp will provide total interest income of $185,000, compared to a bid of $181,000 from BNA. This is a $4,000 difference in income for the year.
BNA Bank is locally owned and has approximately 850 shareholders. Most of the shareholders live in Union County. Collins told the supervisors that money put on deposit at a local bank is loaned out to local customers. Local borrowers use the funds for commercial, residential and other local needs.
Collins acknowledged that the other banks are solid institutions. He said that Bancorp and Rensasant had made significant contributions to the welfare of the community. However, he urged the supervisors to consider the overall impact on the community when awarding future bids on business.
State law does not require boards to award bids to the lowest bidder, but rather to the best bid. This allows consideration of the overall impact on the community when placing county business.
Routine county business transacted
In other business:
- The board reappointed T. R. Trout its representative on the TVA Regional Housing Authority.
- Approved fees payable to the circuit clerk, the deputy medical examiner, and the county elections commissioners.
- Authorized legal advertising and set a May 20 bid opening for construction of an access road to the Martintown North Industrial site.
The Union County Board of Supervisors will meet again on Monday, May 6, 2019.