In response to a request from City Council members, Selma Mayor James Perkins Jr. provided documentation stating the City of Selma lost no money in the closing of the Dallas Educators Federal Credit Union.

The credit union, which was closed by the National Credit Union Administration Board last week, held $488,639.98 of Selma’s money during 2002 and 2003.

Perkins noted in a memorandum given to Selma City Council members that the city recouped all its funds and $12,047.09 in interest from the credit union before it closed.

The council discussed the matter at its Monday meeting. Council members Rita Sims Franklin and Glenn Sexton ask Perkins a series of questions about the money in a May 6 letter. Perkins responded to those questions in writing on Monday, though he wasn’t present when the council began discussing it.

“The money is back,” Council President George Evans said. “We know the policy on that now. We know what the rules are.”

According to the memorandum, the city removed funds from Peoples Bank & Trust and Regions Bank between March 7, 2002, and Oct. 14, 2002, and placed it in the credit union, which held seven different accounts for the city. The funds were removed between July 3, 2002, and May 30, 2003, and placed in Peoples Bank.

The memorandum notes that the city incurred no penalties from removing the funds.

Perkins began removing funds from the credit union after it was discovered the credit union wasn’t on a list of banking institutions that meet the Security for Alabama Funds Enhancement Program’s requirements. The list’s purpose is to ensure the safety of all public funds by establishing guidelines for banks wishing to be certified as a qualified public depository.

Franklin said that she had asked an attorney about council liability for the money.

“I heard that if the council approved the move, it would be liable,” Franklin said. “They said the person who removed it was liable.”

City Treasurer Cynthia Mitchell noted that Perkins received a recommendation to put the funds in the credit union.

“I don’t want to be liable,” Mitchell said. “I might have made the same recommendation.”

Later in the meeting the council approved a resolution that proclaims all future funds be placed in SAFE banks. The resolution passed 7-to-0. Councilman Sam Randolph wasn’t present. Councilwoman Bennie Ruth Crenshaw abstained.

The council will examine an ordinance, which would make the resolution binding, at its next regular meeting – June 14.

In other matters the council:

Heard from Police Chief Robert Green, who requested pay increases for police officers. According to Green, his department is down to 55 officers because of low salaries and several recent departures.

Voted unanimously to split about $88,000 gained from oil lease funds among council members and Perkins. Perkins suggested that the funds be used for the creation of basketball courts for youth.

Council members Jean Martin, Nancy Sewell, Crenshaw and Evans pledged portions of their oil lease funds for the courts.

Voted to remove a proposed youth curfew ordinance from first reading. Instead of voting on the ordinance, which was suggested by Selma’s Crime Task Force, the council will examine alternatives.