09 - City's Depository Bid - Liberty National BankItem 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.
NOTICE TO BANKING INSTITUTIONS WITIHN THE CITY OF PARTS
Notice is hereby given that Governing. Body of the City of Pat!$, subject to
the provision of
Chapters 105 and 131 of the: Texas.Local Govemment Code, will receive bids aad qpplicdd s
oil
from all interested baWdug institutions within the City of Paris to serve as prime depogitoly of
the City of Paris and maintain custody of the funds of the ft for 4 po&dof twil years WS T OW
M .2021 ugh -Fbbruaiy 282023. Any sue tip e 4aRypred t
Wch., tivo -h application shall b o office
I - -, _ TUO
Of the 'City Manager located in City Hall prior to 3 -00 P.M., Monday -janualy 4,2021.
it is required quired - tat each bank bid by-fiffitilgin all blanks and agreeing to the following
specifications,
Bai3lc will pay to Cit n. accordance .y interest on time depositsid
.,once with the following schedule.
CERTIFICATES OF.DEPOSIT- UNDER $100,000
MATURITY RATE,
7-13 days
7 -bill pjqN or minus 0
basis points
.14-29 days
T-bill plus or -minus 0
basis points
30-59 days
T-bill plus or minus 0
basis -points
6089 days
T-bill plus or)g4W 10.
basis points
90-179 days
T-bill plus or XdhWC 20
basis points
.180365 days
T-bill plus or XIM30
basis points
2-5
CERTIFICATES OF DEPOSIT OVER $100,000
180-3.65 days
7-13 days.
T -bill -plus or minus
0
basis points
P()Mts
142 days
T-bill plus or n3jous
0
basis points
30-5944ys
T-bill plus or minus
--Q
b
Aois.points
-60-89 days
T-bill Plus or )WW
15
basis pqifttg
00-110 days
T=bill Plus ori
2-5
basis points
180-3.65 days
T-bill plus or- ;Wow, 35 basi's points
All*investment services offered to other bank customers will be available to the City,
Each day, the -Wall Street Journal publishes the 26 week treasuiT-bill yield based
on the results of
the most recent treasury bill auction. Rates for certWeatos of deposit undet this contract inust be
tied to this 26 week treasury -bill -yield. The rates s4oiQ beq poiedeitherp! or-binusiagveA
nuinbor of basis paints fiom
this 26 week tieasutT-bill yield. Using the W411*06t Jow-091 dated
the same day as the certfficate of deposit is purchased, the ceitificate 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.
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:
P
deposit slips
one large safe deposit box
coin wrappers
night depository service including bags and keys
**XX riff cashier's checks
daily balance on each account
)GOMMtC
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 my further concessions or services in the space provided
below which they may want to offer to the City of Paris and make any cotninent 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 plus 25 basis points. 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 0.36% would result.
The Bank will originate the City's ACH payments, both debits & credits, without charge.
The 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%q 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 furies 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 .design ated 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.
NAIVIE OF BANK Liberty,lational Bank in Paris
1
Carl Cecil�/, I
TITLE: President
DATE:.l 2 � � 2 (�