TO: Finance Committee
FROM: Kevin Sing, Director of Finance
SUBJECT:
title
Resolution Approving Banking Services Agreement
end
BACKGROUND:
The City of Joliet utilizes Old National Bank for its primary banking needs. To ensure we receive services at the lowest cost, staff conducted a Request for Proposal (RFP) for Banking Services. This RFP was advertised on the City's e-procurement portal and marketed to several area financial institutions. Four proposals were received and three met the requirement for a full service branch in the City of Joliet.
The proposals were evaluated using two different methods.
1. Minimum balance to offset all fees.
2. Using the minimum balance in to offset fees, the remainder of the balance would be kept in a money market. This sweep to and from the money market would be automatic and result in interest income.
Old National Bank's proposal has the lowest fees, however, Old National did not submit pricing for the city's electronic lockbox transactions. When reviewing the proposals in whole, JP Morgan Chase is providing a larger earnings credit which is used to reduce or eliminate fees. The larger earnings results in the City being able to invest additional funds generating substantially more interest income. Based on rates in effect on August 1, 2026, the JP Morgan Chase proposal would generate over $227,000 more interest with no banking fees.
Services included in this proposal are: General Checking, Payroll Checking, Lockbox, Electronic Lockbox, Remote Check Capture/Deposit, Merchant Credit Card Processing, Armored Card Services, and Account Validation.
The attached agreement is for a period of 5 years whereas fees and the earnings credit are locked for the five year period.
The change in bank will result in a change of the City's mailing address for payments as the current mailing address is the Old National Bank lockbox processing center. Staff will educate customers about the change of payment address wi...
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