CEO 76-19 -- January 16, 1976

CONFLICT OF INTEREST

PUBLIC OFFICER DIRECTOR OF BANK DOING BUSINESS WITH CITY

To: Frank J. Rouse, City Attorney, Fort Meade

Prepared by: Gene Rhodes

SUMMARY:

Reference is made to CEO 76-12. Where a city borrows money for the construction of a new library from a bank of which a library board member is director, no conflict of interest is deemed to be created pursuant to the statement of legislative intent found in Fla. Stat. s. 112.316(1975).

QUESTION:

Would a prohibited conflict of interest exist were a city to borrow money to build a new library from a bank which has a library board member as a bank director?

Your question is answered in the negative.

You have advised us in your letter of inquiry that the Fort Meade Library Board has authority only to advise the city manager and the city commission on the needs of the library. The city commission has decided to build a new library and, with the help of the library board, has devised preliminary plans and specifications. The library board member in question has no authority to select the lending institution. However, since the bank with which the board member is a director is the only bank in Ft. Meade, the city will borrow the funds from that bank.

Please find enclosed a copy of a recent opinion of this commission, CEO 76-12, the rationale of which is equally applicable to your inquiry. Your question is answered accordingly in the negative.