Title
Resolution - A Resolution Authorizing the Bank Depository Contract
Requested Action
Approve the resolution accepting the bid for the City’s Depository Services between the City of Mansfield, Texas and JPMorgan Chase.
Recommendation
Approve a Resolution allowing JPMorgan Chase to provide depository services for the City of Mansfield, Texas.
Description/History
Chapter 105 of the Texas Local Government Code addresses the establishment of a Depository for municipal funds. The purpose of the Chapter is to protect, guard and establish the relationship between a financial institution and a Municipality.
The City of Mansfield, Texas has requested proposals for Depository Services from several banks with branch offices located within the City of Mansfield, Texas. The City received proposals from JPMorgan Chase, Frost Bank and American National Bank. The sealed proposals were received on August 10, 2015.
Justification
As a part of the Government Finance Officers Association’s Recommended Practices and compliance with Chapter 105 of the Texas Local Government Code, the City of Mansfield, Texas periodically initiates a request for proposals and for major banking services which include service fees, earnings credit rates, and other banking services. The purpose is to create a competitive market environment for controlling costs while safeguarding and protecting the assets of the City’s Treasury. The purpose has been served.
Staff reviewed, evaluated and analyzed the proposals in detail. All three proposals are very similar in structure of banking fees. From a cursory review of the proposals, the Frost Bank proposal seems to be better because of the lower service fees. However, after consideration of required bank balances to offset fees, JPMorgan Chase provides for a better proposal to the City for banking services. The analysis is fairly straightforward as JPMorgan allows the City to invest more of its funds over the course of a year resulting in greater interest earnings over a year.
For these reasons, staff has determined that JPMorgan Chase is the best solution for a depository for the City of Mansfield, Texas.
Funding Source
General Fund
Prepared By
Peter Phillis, CPA, Director of Business Services 817-276-4261