Submitted By: Marcella Hughes
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Presentation By: Peter Brill
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Department: Finance
FORMAL TITLE:
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Four-year renewal agreement with Truist Bank for comprehensive banking services through May 31, 2030
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OCALA'S RELEVANT STRATEGIC GOALS:
Operational Excellence, Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The City receives comprehensive banking services from Truist Bank, a qualified public depository (QPD) institution that meets the criteria set forth in Chapter 280, Florida Statutes. The City's banking services objectives are to secure the most efficient and effective banking services while maintaining sufficient liquidity and protection of all City funds. Truist has satisfactorily provided services to the City for over 20 years.
FINDINGS AND CONCLUSIONS:
Truist has proposed competitive increases to both the earnings credit rate (ECR), which is applied to the compensating balance, and the interest rate (IR) for excess funds, as well as a supplies credit and free cashing of City employees' payroll checks.
* Earnings Credit Rate (ECR): The ECR under this extension period does not begin until June 1, 2026. As of today, and based on the current rate environment, the initial bank-managed rate would be 80 basis points. The ECR will be applied to all accounts under Group number *4475. The ECR will be a bank-managed rate and subject to change at any time at the bank's discretion without notice.
* Interest Rate (IR): The IR under this extension period does not begin until June 1, 2026. As of today, based on the current rate environment, the initial Bank-managed rate would be 270 basis points. The IR will be applied to all accounts under Group number *4475. The IR will be a bank-managed rate, subject to change at any time at the bank's discretion, without notice.
* Supplies Credit: Truist offers the City up to $3,000 in total for this extension period, to be used for supplies, including remote deposit capture machin...
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