Regular Village Board meetings are typically held at 7:00 p.m., the first three Tuesdays of each month in Council Chambers of Village Hall (room 201), 123 Madison St. When a Regular Meeting falls on a holiday, the meeting typically is held the following night. The Village Board also meets in special sessions from time to time. However, dates and times of Special Meetings can vary and may change.

File #: RES 18-957    Name:
Type: Resolution Status: Passed
In control: President and Board of Trustees
On agenda: 9/4/2018 Final action: 9/4/2018
Title: A Resolution Designating Huntington National Bank as the Village of Oak Park's Authorized Depository and Authorizing the Execution of Related Agreements with Huntington National Bank
Attachments: 1. Resolution Designating Huntington National Bank, 2. CDARS - Deposit Placement Agreement (Village of Oak Park)
Submitted By
Steve Drazner, CFO

Reviewed By
LKS

Agenda Item Title
Title
A Resolution Designating Huntington National Bank as the Village of Oak Park's Authorized Depository and Authorizing the Execution of Related Agreements with Huntington National Bank

End
Overview
Overview
The Village utilizes the services of Huntington National Bank (formerly FirstMerit prior to Huntington acquisition) for the majority of its financial needs, including serving as a depository for all incoming revenue collections, business checking, and money market investments. Village funds are insured by collateralized deposits held at the Federal Reserve. The agreements previously executed with FirstMerit transferred over to Huntington after the acquisition and new agreements were not required. However, in order to increase investment returns, staff is now recommending the execution of a separate agreement with Huntington Bank which would allow the purchase of short term certificates of deposit via the CDARS (Certificate of Deposit Account Registry Service) program.

Body
Staff Recommendation
Approve the Resolution.

Fiscal Impact
None. There are no fees associated with purchasing CDs through CDARS.

Background
By executing an additional agreement with Huntington National Bank and thus allowing the Village to purchase CDs through CDARs, CFO Drazner estimates that the Village can earn an additional $30,000 to $40,000 per year in interest by investing a certain amount of cash float not needed in the short term, particularly after the collection of the first and second property tax installments. This cash could then be invested in short term (3 or 6 month) CDs, and earn a higher interest rate than that offered in a money market account. Interest rates continually change, but recent quotes on 3 and 6 month CDs offered through the CDARS program are 1.90% and 2.10%, respectively.

There would be no additional risk to Village funds invested in CDARS, and all CDs purchased would...

Click here for full text