Title
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Review of the Peg Amount of the Current Sweep Account and To Discuss Adding the Sweep Capability to Two (2) Additional Accounts
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Introduction
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This is a discussion regarding the lowering of the peg amount on the current sweep account and the potential to add the sweep capability to two additional accounts.
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Recommended Action
Give the Village Manager direction to modify the Village’s sweep account peg amount and to add the sweep capability to the Single-Family Loan and the Money Market.
Prior Board Action
There is no prior Board action associated with this item.
Background
The Finance Committee requested information on the type and performance of the vehicles in the Village’s cash accounts.
Timing Considerations
To set the new peg amounts before the month's end.
Budget Impact
Option 1 - To offset fees and avoid hard-dollar bank charges.
Option 2 - Pay hard interest on excess balances and pay bank charges.
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
Staff will provide knowledge of options to set the peg amount for the current sweep account and to consider adding the sweep capability to the Single-Family Loan and to the Money Market account.
Advantages:
• The suggested peg amounts will provide additional interest for the Village.
Disadvantages:
• There are no disadvantages to this action.
Alternatives
There are no alternatives to this action; this is a report.
Anticipated Future Actions
There are potential future actions if the direction given is to modify the Village’s sweep account peg amount and to add the sweep capability to the Single-Family Loan and the Money Market account.
Prepared By: Donna M. Gayden, Interim Chief Financial Officer
Reviewed By: Ahmad Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Huntington Bank Banking Sweep Account Proposal