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i • <br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br />AGENDA DATE REQUESTED Januarv 14. 1991 <br />REQUESTED BY Jeff Litchfield DEPARTMENT Director of Finance <br />REPORT RESOLUTION X ORDINANCE <br />EXHIBITS: Report <br />SUMMARY AND RECOMMENDATION <br />On December 17, 1991, the City received proposals from Bayshore National Bank and <br />Baytown State Bank to provide Banking Services to the City of La Porte. <br />When we consider a bank to be our depository, there are two aspects that need to be <br />looked at. Both are equally important. The first is how much will we be charged <br />for our routine, everyday transactions. The second is how much can we earn on our <br />idle funds. <br />In analyzing the two proposals, the following numbers were generated: <br />Bayshore Baytown <br />Estimated Interest Income Revenue to the City 75,220.08 53,906.64 <br />Less Estimated Expense to the City 32.772.99 20.352.95 <br />Total Impact to-the City of La Porte (Profit) 42,447.09 33,553.69 <br />In looking at the numbers, we see that our expense will be less if we select Baytown <br />State Bank as our depository bank. However, we will earn considerably more in <br />interest if we select Bayshore National Bank. The above analysis is based on an <br />estimated average daily balance of $956,133. If the City selects Bayshore National, <br />we come out ahead by about $8,900. <br />ACTION REQUIRED BY COUNCIL: <br />Adopt Ordinance approving and authorizing a depository agreement with Bayshore <br />National Bank for a two year period beginning February 1, 1991. <br />AVAILABILITY OF FUNDS: <br />GENERAL FUND UTILITY FUND <br />ACCOUNT NUMBER: N/A FUNDS AVAILABLE: <br />OTHER <br />YES NO <br />APPROVED FOR CITY COUNCIL AGENDA <br />~~ T. t - °~ - ~, t <br />ROBERT T HERRERA DATE <br />CITY MANAGER <br />