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Approach / Methodology <br />V.Costs of Account Maintenance <br />The City will pay for banking services using an Account Analysis calculation, whereby the bank <br />will bill for the quantity of services provided multiplied by a specific unit cost less an Earnings <br />Credit. The bank will provide the City with a monthly account analysis statement for each <br />account detailing activity volume versus associated unit costs, cost extensions and a summary <br />analysis for all accounts combined. <br />1.Proposer shall provide a sample monthly analysis statement based upon the City’s <br />Bank statement and Account Analysis statement for the most recent month. See <br />ATTACHMENT B and ATTACHMENT C. The sample account analysis should include, at <br />a minimum: <br />a. Description of Service <br />b.Target Average Collected Balance – minimum target daily balance which <br />produces a monthly earnings credit sufficient to pay/offset monthly bank <br />service fees. <br />c.Earnings Credit Rate – the proposer will identify the index used. This rate <br />should be fixed for the contract term. <br />d. Monthly Earnings Credit <br />e.Net Service Charge – total bank service fees less the Earnings credit <br />f.Interest earnings rate on excess balances over minimum target balance <br />The City will have access to monthly account analysis statements via TD eTreasury <br />which are issued on or around the 15th of the following month. All analysis reports <br />provide a detail of activity including the average monthly collected balance, balance <br />requirements, itemized services, checks processed, checks paid, deposits, returned <br />items, stop payments, and fees. Accrued interest will also be shown on this analysis <br />report. <br />TD Bank’s ECR and Interest rates are not directly tied to any specific financial market <br />rate at this time. We utilize a “managed” rate method of determining ECR and interest <br />each month. In the management of these rates, a central leadership rate committee <br />examines competitive data and various indices, including US Treasury Bill, short-term <br />auction rates, monthly average short-term LIBOR, Fed Funds and other <br />investment/economic barometers to determine when changes to TD Bank’s ECR & <br />Interest rate is required. Rates are established each month based on real-time <br />positions in these indices and are tempered by historic and emerging trends or events. <br />TD Bank reserves the right to change its rate and methodology from time to time in its <br />sole and absolute discretion without regard to any external interest rate index or <br />market conditions. <br />Proposed by: TD Bank, N.A.Page 41