Submitted By
Steve Drazner, CFO
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
A Resolution Designating Wintrust Bank as a Village of Oak Park Depository and Investment Bank and Authorizing Investments Pursuant to the Illinois Public Funds Investment Act and the Village’s Investment Policy
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Overview
Overview
The Village is seeking to expand banking relationships by selecting additional financial institutions to invest in surplus reserves. Finance Department staff prepared a Request for Proposals for Investment Services, included in this agenda item herein and nine (9) proposals were received. Staff thoroughly reviewed each proposal and is recommending entering into an investment banking relationship with Wintrust Bank which has a local branch in Oak Park.
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Recommendation
Recommendation
Adopt the Resolution.
Background
The Village utilizes the services of Huntington Bank not only for checking and routine banking services but also for investing surplus funds. At the present time, the Village has approximately $78 million in its Huntington Insured Cash Sweep, earning a competitive interest rate of 5.00%.
In addition, the Village has approximately $10 million invested in a US Treasury note with PNC Bank, which will mature at the end of November 2023.
Staff recommends that $5 million be invested with Wintrust Bank in their MaxSafe Public Fund Money Market Account at a current interest rate of slightly over 5.00%. This will allow the Village to develop and build another banking relationship which may be beneficial in the future, depending on the Village’s needs. The $5 million for investment with Wintrust will come out of the Huntington ICS account which will subsequently be replenished with the proceeds from the PNC Treasury note when it matures on November 30, 2023.
Included as part of this agenda item for reference is the Proposal submitted by Wintrust Bank.
Fiscal Impact
There will be no impact on expenses and no significant change to interest income.
DEI Impact
N/A
Alternatives
The alternative would be to not adopt the Resolution and therefore not enter into a banking relationship with Wintrust Bank.
Previous Board Action
N/A
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A