(A) Tex. Local Gov’t Code, Chapter 105 prescribes procedures for selection of a town depository designating that both general law and home rule cities are “authorized to receive applications (as depository) for the custody of town funds from any banking corporation, association or individual banker doing business within Brazoria County. Pursuant to Tex. Local Gov’t Code, § 150.014, municipalities may select one or more depositories and are not required to have one central depository.
(B) The town will, through a request for applications process, designate one or more banks as its primary depository. This centralization is designed to maximize investment capabilities and minimize banking costs. The depository designation does not limit investment activity to one financial institution.
(C) If a depository is unsuccessful in meeting any of the town’s requirements in the banking services contract, the bank shall meet the requirements within six months or lose the depository contract.
(Tex. Local Gov’t Code, Chapter 105)
(D) State law permits a contract period of five years or less. The town’s contract shall not exceed this five-year contract period.
(1) Annual performance reviews of the contract will be conducted by the Director of Finance. Special banking needs may be contracted for by the town outside this policy if approved by the Director of Finance and the Town Council.
(2) If a depository does not meet the town’s requirements in the banking services contract, the bank will be required to meet the requirements within six months or lose the depository contract.
(Res. 2009-01, passed 3-7-2009)