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AI- 3576   12. B. 4.    
BOC Regular
Meeting Date: 05/20/2021  
Designation of Main Depository Bank
Submitted For: Kelli Scott
FROM: Kelli Scott, Administrator/Controller, Administration
Department: Treasurer's Office  

Information
RESOLUTION:
Resolved, the Calhoun County Board of Commissioners do hereby approve the Resolution to Designate Southern Michigan Bank & Trust as the main banking depository for Calhoun County and authorize the County Treasurer and Administrator/Controller or designees to execute all necessary documents to implement this designation.
RECOMMENDATION:

The Calhoun County Treasurer recommends the Calhoun County Board of Commissioners approve the Resolution to Designate Southern Michigan Bank & Trust as the Main banking Depository for Calhoun County.

 

BACKGROUND:
MCL 129.12 states “The County Treasurer shall deposit daily money, drafts, or checks on hand received by the treasurer in a financial institution designated by the County Board of Commissioners or, if the county has a board of auditors, by the board of county auditors as provided in this act”. MCL 129.12 also states “The County Board of Commissioners …shall provide by resolution for the designation and deposit of public money, including tax money, coming into the possession of the County Treasurer,…in 1 or more financial institutions…”.

The County Board designated in 2013 Chemical Bank as the County's main depository based on the Treasurer's recommendation at that time.   Chemical Bank was merged into Huntington Bank since that designation and the County has continued to do business with Huntington Bank.

Calhoun County Treasurer Brian Wensauer and his staff have recently reviewed the current banking relationship partly due to the upcoming merger of Huntington Bank into TCF Bank.  This review included the consideration of a number of local banks and the conclusion was that Southern Michigan Bank & Trust would be most beneficial to Calhoun County.  The complete analysis and results are included in the attachments.

ALTERNATIVES:
The County could choose not to provide for this change in main banking depository.  This is not recommended due to the anticipated negative financial and administrative impacts that will occur if the County continues with the current bank.
SUMMARY:
 The Calhoun County Treasurer recommends the Calhoun County Board of Commissioners approve the Resolution to Designate Southern Michigan Bank & Trust as the Main banking Depository for Calhoun County.


Fiscal Impact
BUDGETARY IMPACT:
The County Treasurer has analyzed various costs and potential earnings related to the County's main banking relationship, and has indicated that designating Southern Michigan Bank & Trust as the main depository will save substantial costs and increase potential earnings for the County's various funds.
Attachments
SMBT bank designation
SMBT info
Muni analysis
More Analysis

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