Agenda - Council - 11/25/1997 - Laserfiche WebLink

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IFC CASE # AUTHORIZE REQUEST FOR PROPOSALS FOR BANKING SERVICES By: Jessie L. Hart, Finance Officer Background: Banking services to the City of Ramsey are currently supplied through several institutions. ' These services include, but are not limited to, checking and market accounts, certificates of deposit, and other investment alternatives. The existing banking relationship began with what was the only local bank in the City and was eventually bought out by First Bank, NA This relationship with what is now First Bank has continued, even with the departure of all branches of the bank located in Ramsey. The city's checking account [a zero balance account] is through First Bank and is "swept" on a daily basis to the 4M Fund. Daily deposits are made to a money market account through First Bank and transferred to the checking account, with these funds ending up in the 4M Fund. Interest earned on the 4M Fund compounds daily, with same day credit on deposits and wires, at higher yields than most other money market funds [due to the nature and make-up of the fund]. The 4M Fund also -offers the Plus Fund which averages a yield higher than the regular account on deposits left in for a minimum of 30 days. These yields are net of all fees and charges associated with the administration of the fund. The only direct fees that the City currently experiences is the cost of printing deposit slips through the bank and checks through an outside vendor. In addition to the aforementioned accounts, the City maintains a money market savings account ' and jumbo certificates of deposits at Landmark Community Bank, NA and Northland Security Bank, both located in the City of Ramsey. Because of their location in the community, it would be desirable to keep as much of the activity within the community as possible, which is consistent with the city's investment policy. In an attempt to keep the banking activities local, staff has prepared the attached "Request for ' Proposal - Banking Services" to be submitted to Landmark Community Bank, NA and Northland Security Bank, both located in the City of Ramsey. ' The proposals for bankin errvices would need to be returned to the Finance Officer by 2:00 PM on Tuesday, Decembei997 with the award being made by the City Council on Tuesday, ' December 9, 1997. Banking services would commence in January of 1998. This schedule would allow for implementation of ACH [direct deposit] simultaneously with the banking change and would also allow the utilization of check stock and deposit slips currently on hand. 1 a4s