HomeMy WebLinkAboutIR 7959 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7959
To the Mayor and Members of the City Council
EX Subject:
BANKING SERVICES CONTRACT WITH BANK ONE
On September 28, 1992, the City Council authorized the City Manager to enter into an
agreement with Bank One, Texas, to provide the City's banking services. In general, Bank One
provides the City its "checkbook." The bank honors the City's checks for goods and services
and takes the deposits that are its income. The City usually keeps a balance in its consolidation
account of $1,000,000 which is collateralized by securities held at the Federal Reserve Bank of
Dallas. Funds in excess of the daily balance are invested as allowed by the City's Cash
Management Policy. The City is prohibited from investing with the bank by governmental
accounting standards relative to custodial credit risk. These rules prohibit the City from
buying any security from its bank if that bank also safe keeps it.
Under terms of the contract, Bank One provides the following services:
• Executing incoming and outgoing wire transfers;
• Receiving deposits from the City Cashier;
• Processing automated clearinghouse transactions;
• Clearing the City's-payroll checks;
• Processing the City's investment purchases and sales;
• Safekeeping securities for the City;
• Operating the Water Department's lockbox to collect monthly payments; and
• Processing all the City's checks to vendors.
As Bank One has performed these services satisfactorily and the bank indicated its ability to
maintain the contract's fee structure, staff recommended and the City Council approved on
June 20, 1995 an option to extend the contract until September 30, 1997.
IN-
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Bob Terrell 0FRIAL RIECul,
City Manager CITY SECRIET, Ry
FL WORTH, TEX
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS