Consent 1.C.
Regular City Council Meeting
- Meeting Date:
- 05/09/2011
- TITLE
- One Year Banking Contract Extension with U.S. Bank
- PRESENTED BY:
- Patrick M. Weber, Financial Services Manager
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The City’s current banking contract with US Bank expires in February 2012. US Bank has provided the City with a proposal to extend the contract one year to February 2013 (Exhibit A). The proposal compensates the City an additional 25 basis points and no increase in annual service costs for the one-year extension.
ALTERNATIVES ANALYZED
The Council may:
- Approve the one year extension; or
- Not approve the one year extension.
FINANCIAL IMPACT
The additional 25 basis points would generate an additional $5,800 per month in interest earnings, netting $127,600 through February 2013.
RECOMMENDATION
Staff recommends Council approve the one year banking contract extension with US Bank.