Title
Extension of Banking Services - Approval
History
Fifth Third Bank has been providing treasury management and merchant services to the Village since November 2006. The Village maintains twelve (12) operating accounts at the bank; each of these accounts is set up on an earnings credit basis, meaning that interest earnings are credited against banking service fees and the net amount is charged or credited to the Village’s accounts. The Village maintains balances within these accounts that provides an earnings credit rate that it higher than the interest rate on an interest bearing checking account, thereby reducing the overall banking service fees paid by the Village. The Village currently utilizes many of the technologies provided by the bank, including Fifth Third Direct, electronic check deposit, ACH and wire transfers, payroll and accounts payable direct deposit, and ACH and check positive pay. The Village also utilizes Fifth Third’s retail and wholesale lock box services, merchant processing services and participates in the bank’s purchasing card program. In addition, Fifth Third reviews and recommends approval or denial of loans made by the Village thru any of its economic development incentive programs. Fifth Third’s Institutional Services acts as a third party trustee for the Village, maintaining custody of all investments made and managed thru the Village’s external investment managers, PMA Financial Network, Inc. and Hammond Investments, LLC.
The Board recently approved entering into a Line of Credit/Term Loan Agreement with Fifth Third Bank in order to provide financing for the Ninety 7 Fifty on the Park project. One of the terms of this Line of Credit/Term Loan Agreement is that the Village continues to utilize the non-credit banking services provided by Fifth Third for a period of at least three (3) years (the term of the Line of Credit). Staff recommends approval of the three year extension given that Fifth Third provides satisfactor...
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