Res 1994-185 - Laserfiche WebLink

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C¡ç)r/ CITY OF SAN MARCOS DEPOSITORY BID - 1994 Victoria Bank & Trus t appreciates the opportunity to compete for your depository relationship. Our depository bid is structured so you will be able to generate income on every dollar not needed to offset bank services. Offered exclusively to our public depositors, we call it our Income Maximization Plan. It has four parts: .' NOW Accounts (operating accounts) - A~l demand deposits can be placed in NOW accounts. We will analyze each account monthly to determine balances needed to cover services. (See Attachment I for service charges.) Excess balances will earn income at 25 basis points below the average of the previous monthl s 91-day Treasury bill auction discount rate. (See Attachment II.) You may have any number of accoünts. The aggregate balance must be sufficient to 'offset service charges. Demand accounts are an alternative to' the NOW accounts for depositors that would rather pay fees. Demand and NOW accounts will be subject to the same fee schedule. (Attachment I) Money Market Mutual Funds (short term funds) - Sec. 2 (d) of the Public Fund Investment Act of 1987 states that a public entity,... II may , in accordance with this Act, purchase, sell and invest its funds and funds under its control in an SEC registered, no load money market mutual fund...11 You may invest 80% of your monthly avèrage fund balance and 100% of bond proceeds in these funds. Mutual funds are an outstanding alternative for your short term needs. We offer Federated Securities mutual funds as an ideal way to achieve the proper balance of liquidity, safety and yield. These funds are rated AAAm by Standard & Poor's Investors Service and are legal investments under the 1987 Act. Attachment III shows average monthly returns on the Government Money Market Fund and the Treasury Money Market Fund. Far more flexible than Time Deposits or short maturity Treasury bills, these funds keep your money working profitably. .