Title
title
A Motion to Approve the Account Sweeps Recommendations made by Huntington Bank
..end
Introduction
overview
This is a motion to approve the account sweeps recommendations made my Huntington Bank and approved by the Finance Committee at their November 4, 2025 meeting.
end
body
Recommended Action
Approve the motion.
Prior Board Action
There is no prior Board action associated with this item.
Background
The recommendations made by Huntington Bank will increase the amount of interest income earned by the Village and decrease the possibility of fraudulent activity on Village accounts. Huntington Bank presented alternatives for increasing the returns the Village receives on the balances the Village maintains at their bank. The alternatives they presented that would benefit the Village immediately were to lower the “peg” rate (the balance in an account above which all monies will be swept into an overnight investment account which is currently $10,000,000 to $25,000) on the Village’s sweep account and adding the sweeping feature to two additional bank accounts (the corporate cash and MFT accounts). Additionally, Huntington Bank recommended increasing the level of fraud protection to reduce the chance of fraudulent activity.
This is a core service priority. The Finance Department has determined that these will increase the amount of interest income the Village receives along with increased protection from fraud.
Timing Considerations
As soon as the proposed changes are incorporated, the Village will begin to experience the benefits.
Budget Impact
The Village will enjoy additional incremental income from lowering the peg rate and adding account sweeps to the corporate cash and MFT accounts.
Staffing Impact
There is no staffing impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Approve the motion.
Advantages:
• The Village will begin to benefit from increased interest income on select accounts.
• This action will increase the level of fraud protection the Village receives from Huntington Bank.
Disadvantages:
• There are no disadvantages to this alternative.
Alternatives
Alternative 1:
The Board can elect to reject the proposed changes.
Advantages:
• There are no advantages to this alternative.
Disadvantages:
• The accounts will receive lower interest income over time.
• This action will result in lower protection against fraud.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: John Kramer, Deputy Chief Financial Officer
Reviewed By: Donna M. Gayden, Interim Chief Financial Officer
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Village of Oak Park - Account Structure Options Summary