09 - City DepositoryItem No. 9
TO: City Council
John Godwin, City Manager
FROM: Gene Anderson, Finance Director
SUBJECT: CITY DEPOSITORY
DATE: January 8, 2019
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 the
City's funds. The City historically has operated under two year agreements. The current
depository agreement expires February 28, 2019. 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 17th and December
24th of 2018 that it would be receiving bids to serve as the City's depository bank for a two year
period beginning March 1, 2019. In addition, email notification was sent to local banks who have
expressed interest in this issue in the past. Liberty National Bank and Peoples Bank submitted
bids. Liberty's bid is the most favorable to the City.
BUDGET: Not affected by this selection.
RECOMMENDATION: Motion to select Liberty National Bank to serve as the City of Paris
depository bank for the ensuing two year period.
NOTICE TO BANKING INSTITUTIONS WITHIN THE CITY OF PARIS
Notice is hereby given that Governing Body of the City of Paris, subject to the provision of
Chapters 105 and 131 of the Texas Local Government Code, will receive bids and applications
from all interested banking institutions within the City of Paris to serve as prime depository of
the City of Paris and maintain custody of the funds of the City for a period of two years from
March 1, 2019 through February 28, 2021. Any such application shall be delivered to the office
of the City Manager located in City Hall prior to 3:00 P. M,, Monday January 7, 2019.
It is required that each bank bid by filling in all blanks and agreeing to the following
specifications:
Bank will pay to City interest on time deposits in accordance with the following schedule:
MATURITY
7- 13 days
14-29 days
30-59 days
60-89 days
90-179 days
180-365 days
7-13 days
14-29 days
30-59 days
60-89 days
90-179 days
180-365 days
CERTIFICATES OF DEPOSIT UNDER $100,000
RATE
T-bill plus or minus
0
basis points
T-bill plus or minus
0
basis points
SEE REVERSE SIDE T-bill plus or minus
0
basis points
OF SHEET T-bill plus or minus
0
basis points
T-bill plus or minus
0
basis points
T-bill plus or minus
0
basis points
CERTIFICATES OF DEPOSIT OVER $100,000
T-bill plus or minus Q— basis points
T-bill plus or minus 0 basis points
SEE REVERSE SIDE T-bill plus or minus 0 basis points
OF SHEET T-bill plus or minus 0 basis points
T-bill plus or minus 0 basis points
T-bill plus or minus 0 basis points
All investment services offered to other bank customers will be available to the City.
The City will accept bids only on the basis herein after described.
Each day, the Wall Street Journal publishes the 26 week treasury -bill yield based on the results of
the most recent treasury -bill auction. Rates for certificates of deposit under this contract must be
tied to this 26 week treasury -bill yield. The rates should be quoted either plus or minus a given
number of basis points from this 26 week treasury -bill yield. Using the Wall Street Journal dated
the same day as the certificate of deposit is purchased, the certificate of deposit rate will be the
26 week T-bill rate published that day in the Wall Street Journal plus or minus the basis points
listed above. f
CHARGES
List below any service charges that will be levied against the City:
NONE
In addition to the normal services and supplies furnished by the depository bank, the following
services are standard and common to most depository contracts. They are to be furnished to the
City at no charge:
deposit slips
one large safe deposit box
coin wrappers
night depository service including bags and keys
traveler's and cashier's checks (travelers Checks N/A)
daily balance on each account
money orders N/A
stop payment orders
wire services
checking and savings accounts
all bank accounts will be interest bearing accounts
on line banking
overdraft protection
Bidders are requested to submit a list of any further concessions or services in the space provided
below which they may want to offer to the City of Paris and make any comment as further
consideration in selecting the City's depository. If needed, please add additional pages.
The Bank will pay interest on the City's Consolidated Cash Account at a rate
equivalent to the auction rate for 26 -week Treasury Bills. The rate will be
changed each calendar quarter and will be calculated using the most recent
Treasury Bill auction.
Using the most recent Treasury Bill auction a rate of 2.48% would result.
Bank will originate City's ACH payments, both debits and credits without charge.
Bank will furnish the City, without charge -at the end of each year a disk containing
a summary of each transaction account activity.
All monies which are deposited into the depository under the provisions of this proposal shall be
continuously secured, in accordance with the laws of the State of Texas applicable thereto, by a
valid pledge of par, exclusive of accrued interest, at all times at least equal to 102% of the
amount of money on deposit in said several funds on deposit in the depository. In addition, the
depository agrees to meet the same security pledge for all funds on deposit by the Paris Economic
Development Corporation.
All time deposits or certificates of deposits which have not elapsed on the termination date of the
finally approved depository contract, shall remain on deposit with the same depository under the
same terms and conditions in effect during said contract until the date such time deposits have
elapsed. Funds from Bond sales may be deposited in the City depository or placed in outside
investments.
The City of Paris reserves the right to accept or reject any or all bids, to waive formalities, and to
accept the bid the City considers the most advantageous. The City also reserves the right to place
or invest part or all of its surplus or excess funds outside the designated depository, in any
manner permitted by law, from time to time throughout the term of the contract.
The undersigned bank official represents that he is authorized by the Bank's Board of Directors
to sign this document and legally obligate the Bank to the terms stated in this agreement,
NAME OF BANK Liberty National Bank in Paris
BY: - C
....... _w....._ .�_..�..
lip R. Cecil
TITLE::e�
DATE: January 3,w 2019
Notice is hereby given that Governing Body of the City of Paris, subject to the provision of
Chapters 105 and 131 of the Texas Local Government Code, will receive bids and applications
from all interested banking institutions within the City of Paris to serve as prime depository of
the City of Paris and maintain custody of the funds of the City for a period of two years from
March 1, 2� 1 J I
161 46���
IV"
specifications:
Bank will pay to City interest on time deposits in accordance with the following schedule:
MATURITY RATE
7-13 days
T-bill plus or minus
_o basis points
14-29 days
T-bill plus or minus
0 basis points
30-59 days
T-bill plus or minus
6— basis points
60-89 days
T-bill plus or minus
+. 20 basis points
90-179 days
T-bill plus or minus
20 basis points
180-365 days
T-bill plus or minus
25 basis points
7-13 days
T-bill plus or minus
0 basis points
14-29 days
T-bill plus or minus
o basis points
30-59 days
T-bill plus or minus
0 basis points
60-89 days
T-bill plus or minus
+. 20 basis points
90-179 days
T-bill plus or minus
+,. 20 basis points
180-365 days
T-bill plus or minus
+. 25 basis points
Each day, the WO Street Journal publishes the 26 week treasury -bill yield based on the results of
the most recent treasury -bill auction. Rates for certificates of deposit under this contract must be
tied to this 26 week treasury -bill yield. The rates should be quoted either plus or minus a given
number of basis points from this 26 week treasury -bill yield, Using the Wall Street Journal dated
the same day as the certificate of deposit is purchased, the certificate of deposit rate will be the
26 week T-bill rate published that day in the Wall Street Journal plus or minus the basis points
listed above.
1W
List below any service charges that will be ... against the City:
In addition to the normal services and supplies famished by the depository bank, the following
services are standard and common to most depository contracts, They are to befurnished to the
City at no charge:
deposit slips
one large safe deposit box
coin wrappers
night depository service including bags and keys
--travticr's-and cashier's checks. - BANK DOES NOT SELL TRAVELER'S CHECKS
daily balance on each account
money orders
stop payment orders
wire services
checking and savings accounts
all bank accounts will be interest bearing accounts
on line banking
overdraft protection
OrLd e r �sa r �quest�edto s�ub—�*.o
X
below which they may want to offer to the City of Paris and make any comment as further
consideration in selecting the City's depository. If needed, please add additional pages.
All monies which are deposited into the depository under the provisions of this proposal shall be
continuously secured, in accordance with the laws of the State of Texas applicable thereto, by a
valid pledge of par, exclusive of accrued interest, at all times at least equal to 102% of the
amount of money on deposit in said several funds on deposit in the depository. In addition, the
W1 -1-1 e e
Development Corporation.
lr�-jvrr7 Lnuer Inc
same terms and conditions in effect during said contract until the date such time deposits have
elapsed. Funds from Bond sales may be deposited in the City depository or placed in outside
i-vivestments.
"C"Ot =MONIX, CM7rj%'i7 Tif accepT or rejecT ITTI, or aive tormalities, a d
rill
zccept the bid the City considers the most advantageous, The City also reserves the right to pla
or invest part or all of its surplus or excess funds outside the designated depository, in any
manner permitted by law, from time to time throughout the ten -n of the contract,
X
I giWaTIA41011 firaUfM M I to WON #2111 of - #
NAME OFBANK - PEOPLE'S BANK
BY:
TITLE:
SR VP
DATE: 01-01,311-12011