Label
Banking Services
Department of Finance - Treasury
Sullivan Nicholls (x1636)/Bryan Benner (x1194)
Revised
Title
Authorizing the Mayor to enter into a three-year contract for banking services; further authorizing the expenditures; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
Toledo Municipal Code Section 192.17 sets forth the procedures for designating a Central Depository and a Secondary Custodian for banking and custodial services. This is required to be done every three (3) years. The City's current banking services contracts expires September 30, 2019. A Request for Proposal (RFP) was duly advertised. Proposals were received from four institutions and subsequently evaluated by the Department of Finance in accordance with established procedures for professional service contracts.
The four banks that submitted RFP were all responsive and were able to provide the financial services requested by the city. Concerning the cost, fees and interest earned on daily balances, Fifth Third Bank proposed the lowest total annual fees and charges at approximately $59,000. The other proposals annual costs ranged from $64,800 to $80,000. The Banking Services RFP asked for a variable interest rate earned on daily balances and Fifth Third Bank offered a rate based upon the nightly Federal Funds rate minus 0.65% (65 basis points) on all bank accounts.
After review of the banking services RFP, it is recommended that the city contract with Fifth Third Bank as Central Depository and the State of Ohio Treasurer Ohio Pooled Collateral System (OPCS) as Secondary Custodian.
The fiscal impact of this ordinance is as follows:
- The total amount of funds requested: estimated fees are $59,000 annually, though charges will vary based on the city's balances with the bank and the federal funds rate
- The expenditure budget line item: 1001-14200-1132003STDSTD, 6078-31000-4000524STDSTD, 6060-31000-4000511STDSTD, 6070-31000-4000508STDSTD, and 607A-31000-4000552ST...
Click here for full text