Title
A Resolution Amending Resolution 22-1217 and Approving Other Financial Institution Actions
Summary
Section 2 of Resolution 22-1217 approved a $5MM investment at PNC bank that was found to require signing a very broad Customer Agreement. A request was made on July 14th to tailor the Agreement to state the terms quoted the City which to date has not occurred. The request being made is to invest that $5MM in a new account at The First bank at 1.15% (.40% higher than quoted by PNC) which will also cause that rate to be paid on all eligible interest bearing accounts at The First, including the Sales Tax revenue account. The banks we are currently doing business with are offering additional eligible accounts, programs and products paying higher rates. Requesting permission to utilize these products and monitor performance throughout the fiscal year and update Council as new opportunities arise.
Budgetary Impact: N/A
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
____ Not budgeted requiring increase to account #___________ in the amount of $____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and described in budget as ________________________. Additional amount needed, if any: Increase in budget of $_________ OR, transfer of $________ from Account #____________ to Account #_____________**Request to Increase OR Request toTransfer Departmental Budget Dollars form must be attached**
____ Not Budgeted - account #____________ requires budget increase of $_____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital Project - **If requesting to start a project, a Capital Project Worksheet form must be attached**
In current year Capital Projects Plan:
_____ Yes, described as __________________________, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________.
_____ No, requesting an increase of $___________ to an already approved project titled ________________________ that is being tracked under Account No. ___________________.
Body
WHEREAS, Resolution 22-1217 approved placement and/or reallocation of cash on hand based on the results of a Request for Proposals, and
WHEREAS, There is now a need to rescind Section 2 of Resolution 22-1217 and approve opening a new investment account at The First bank, and
WHEREAS, The Finance Director is requesting to monitor cash balances and required outflows and invest cash surplus at Financial Institutions with which the City is currently doing business in accordance with the attached State statutes.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Approves rescinding Section 2 of Resolution 22-1217.
SECTION 2: Approves opening a new investment account at The First bank with an initial deposit of $5,000,000.
SECTION 3: Authorizes the Finance Director to invest surplus cash in eligible accounts, programs or products offered by Financial Institutions having a current banking relationship with the City.
SECTION 4: Authorizes City Council Members, the Mayor and the Finance Director to execute required banking documents and agreements.
SECTION 5: This Resolution shall become effective immediately upon its adoption as required by law.