Banking Services

The vendor required to provide banking services contract is an important component of the treasury and cash management system of the entities.
- The entities intend to improve customer service, minimize banking costs, improve operational efficiency, and maximize its investment capabilities.
- Comprehensive annual financial report and include:
•    General fund
•    Special revenue funds
•    Debt service funds
•    Capital projects funds
•    Enterprise funds
•    Internal service funds
•    Trust and agency funds
- Objectives and investment strategy
•    Safety and preservation of principal
•    Maintenance of sufficient liquidity to meet operating needs
•    Public trust from prudent investment activities
•    Optimization of interest earnings on the portfolio
•    Diversification of investments
- Preservation and safety of principal
1. Credit risk
•    Limiting investments to the safest types of investments 
•    Pre-qualifying the financial institutions and brokers and dealers with which the city will do business 
•    Diversifying the investment portfolio so that potential losses on individual issuers will be minimized.
2. Interest rate risk
•    Structuring the investment portfolio so that investments mature to meet cash requirements for ongoing operations, thereby avoiding the need to liquidate investments prior to maturity 
•    Diversifying maturities and staggering purchase dates to minimize the impact of market movements over time.
- Investment strategy
•    Investment program uses a "pooled" investment strategy where all moneys of all funds covered by this policy are combined and invested in a portfolio, which is stratified by various levels of maturities to meet the requirements of all working capital, construction and debt service funds. 
•    In some cases, one or more separate pools of funds may be established to meet specific requirements or yield restrictions for certain funds. 
•    By combining the net cash flows of all funds, the pooled investment strategy maximizes return on investment without sacrificing safety and liquidity because economies of scale can be taken advantage of to obtain better prices and reduce transaction and administrative costs. 
•    The dollar weighted average maturity for the pooled fund group will not exceed 18 months.

- Contract Period/Term: 3 years
- Questions/Inquires Deadline: February 13, 2026