09 - City's Depository Bid - Liberty National Bank

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Item No. 9 TO: Mayor & City Council Grayson Path, City Manager FROM: Gene Anderson, Finance Director SUBJECT: CITY DEPOSITORY 2021-22 DATE: January 11, 2021 BACKGROUND: Under Chapters 105 and 131 of the Local Government Code, the City of Paris may receive bids from financial institutions to serve as the depository and custodian of City funds. The City has historically operated under two year agreements. The current depository agreement expires February 28, 2021.In order to allow time for transition should the depository bank change, the City Council votes on this issue in January. STATUS OF ISSUE: The City advertised in the Paris News on December 10th and 17th of 2020 that it would receive bids to serve as the City's depository bank for a two year period beginning March 1, 2021 and ending February 28, 2023. In addition, email notification was sent to local banks who have expressed interest in the past. Requests for additional information were received from two banks. Liberty National Bank submitted the only bid. However, Liberty's bid is more favorable to the City than the current depository agreement which is also with Liberty National Bank. BUDGET: Not affected by this selection. RECOMMENDATION: Motion to select Liberty National Bank to serve as the City of Paris depository bank for the period March 1, 2021 through February 28, 2023.