CITY COUNCIL AGENDA ITEM
Memo Date: July 23, 2024
Agenda Date: July 23, 2024
Prepared By: Rebecca Bowman, Finance Director, MBA, CGFO, CGFM
Through: Stockton Whitten, City Manager
Requested Action:
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Approve the City Manager to negotiate a multi-year contract for banking services with Truist Bank piggy-backing off the Brevard County Clerk of Circuit Court contract RFP1-23-01 and authorize the City Manager to sign all the necessary documents to change the piggyback contract. End
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BACKGROUND:
Since October, 1997, the City has used Truist Bank (formerly Suntrust Bank) for banking services. The City has piggy-backed off of other banking contracts for many years to continue using Truist. Truist has a well-established relationship with the City and staff is satisfied with the services and pricing that Truist offers. The current contract with Marion County was approved by City Council on agenda item 22-486 on August 23, 2022 and expires on August 31, 2025. The earnings credit rate under the Marion County contract is 90 basis points. The earnings credit rate offsets banking fees charged. The interest rate is variable at 125 basis points. The economy has changed significantly since initially piggybacking off of the Marion County Clerk of Circuit Court contract in 2022. Brevard County recently entered into a contract with Truist at an earnings rate of 150 basis points and an interest rate at 50 basis points above the federal funds rate. That rate is currently 330 basis points. It is financially advantageous for the City to discontinue piggybacking off of the Marion County Clerk of Circuit Court and piggyback off of the Brevard County contract. The contract term is a multi-year contract for the original term of April 1, 2023 through March 31, 2028, with one additional five-year extension. The historical interest earnings have exceeded the banking fees; therefore, no budget is necessary for the banking fees.
Staff is requesting City Council appr...
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