Title
Depository Changes for Certain City Accounts
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
Sue Steigerwald, Finance Manager: Due to rising bank fees and diminished rates, proposals were solicited from local banks and banks with existing relationships with the City.
SOURCE OF FUNDING:
Please provide the amount requested: _______N/A
Is this a budgeted item? Yes /No N/A
Please provide the budgeted amount: $_____________ Account No. ___________________________
If budgeted, is this a capital purchase, capital project, or special fund? _________________________
Was this item included in the Fiscal Year Capital Projects Plan? Yes/No
If yes, please provide the amount included in Capital Projects Plan: $___________
Body
WHEREAS, On June 6th, 2014, proposals were solicited from local banks and banks with exisiting relationships with the City.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: The following responses were received:
1. BB&T - No response received.
2. Bancorp South - No response received.
3. Bryant Bank - Flush with money, so no investment accounts offered. Will continue to provide no service charge on accounts, $3 for monthly provision of cancelled checks (audit/grantee requirement), no fees for stop payments (10-15 of these per month), $6 returned item fee (NSF), $20 wire fee.
4. Centennial Bank - Investment interest equal to the 91-day t-bill which is currently .035% with a floor rate of .23% APY. Rate structure will be reviewed in 2 years. No service fees. Deposit relationship - Minimum aggregate average daily balance of $5M.
5. Citizens Bank - No response received.
6. Community Bank - They are willing to take on an additional million dollars in deposits with the same interest/fee structure (.30% APY).
7. PNC - Passing
8. Regions Bank - No response received.
9. The First Bank of Baldwin County - Investment interest of 0.23% fixed for 36 months (would periodically check for better rates as conditions improve) No service charge on accounts. $7 returned item fee (NSF). $35 stop payment fee (we have 10-15 per month). $20 wire fee.
10. Trustmark - No response received.
11. United Bank - Only bid received was on the General operating account set up as an analysis account with an earnings credit of Federal Funds Rate minus 5 bps, current 20 bps (25 bps minus 5). The rate is subject to change monthly. The earnings credit will be offset by the monthly service charges. Due to the transaction volume of the City's operating account; earnings will not fully cover the cost per item.
12. Wells Fargo - No response received.
SECTION 2: Based on the above responses, the following action is being taken:
1. Court Fines & Forfeiture account, to Bryant Bank
2. Court Bond account, to Bryant Bank
3. Recreational Activity Fund account, to Bryant Bank
4. General Fund Sales Tax Investment, to The First Bank of Baldwin County
5. General Fund Investment #2, to The First Bank of Baldwin County
6. VFD Advalorem Fund account, to The Frist Bank of Baldwin County
7. Corrections Fund account, to The First Bank of Baldwin County
8. Federal Forfeitures account, to The First Bank of Baldwin County
9. CDBG Project account, to The First Bank of Baldwin County
10. General Fund Investment #3, to Centennial Bank
11. Drug Fund account, to Centennial Bank
12. 4 Cent Gas Tax account, to Centennial Bank
13. 5 Cent Gas Tax account, to Centennial Bank
14. 7 Cent Gas Tax account, to Centennial Bank
15. General Fund Misc Investment (01-1110), deposit balance in existing MMA at Community Bank and close account
16. General Fund Misc Investment (01-1107), deposit balance in existing MMA at Community Bank and close account
17. General Fund Misc Investment (01-1124), deposit balance in existing MMA at Community Bank and close account
SECTION 3: Authorizes opening an account titled Court Corrections within the Corrections Fund with The First Bank of Baldwin County and depositing 60% of the amount held in the Corrections Fund account to segregate the Police Corrections from Municipal Court to 40%/Corrections and 60%/Court as mandated.
SECTION 4: This Resolution shall become effective immediately upon its adoption as required by law.