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58 <br /> • The City would be required to maintain a $200,000.00 balance to offset banking fees <br /> (the annual cost of banking fees totals $13,000.00). Calculation of the loss of interest <br /> earnings versus potential interest earnings on the funds indicates that the present <br /> practice of waiving the banking fees and maintaining the $200,000.00,balance <br /> requirement continues to be more-beneficial. <br /> Annual interest earnings on $200,000 X 5.03% (4/M rate of return) _ $10,600.00 <br /> Annual waived banking fees total $13,000.00. <br /> Recommendation: <br /> Staff formalize and restructure the City's banking services with Bremer Bank to <br /> include: <br /> 1) Interest earnings equal to that-of Bremer's Dreyfus Government Cash <br /> Management Fund for all accounts. <br /> 2) Maintain waived banking fees agreement with a minimum cash balance of <br /> $200,000.00. <br /> • Council authorize the Mayor, City Manager and Finance Director to sign the <br /> appropriate paperwork and signature cards. <br />