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banking services bids 9-19890 FIRST NATIONAL BANK AND TRUST COMPANY OF SALINA A SERVICE COMPANY / 101 N. SANTA FE / P.O. BOX 800 / SALINA, KS. 67402 / (913) 827-55641 MEMBER FDIC October 24, 1988 Bob Biles City Clerk and Director of Finance City of Salina 300 W. Ash Street Salina, KS 67601 Dear Bob: The opportunity to discuss details of our bank's repurchase agreements investment program with you was very much appreciated. This program has provided safety, flexibility, and competitive rates to our cash management customers, including public units, for many years. We are always looking for ways to adapt our basic service to most effectively meet the needs and requirements of our customers. In providing cash management services for the City of Salina, I am pleased to stipulate that all securities sold under repurchase agreement (Repo) to the City will be held in a joint custody account at the Federal Reserve Banks of Kansas City. A joint custody safekeeping receipt naming our bank and the City of Salina will be issued and the original kept by the City. Further verification will be provided by copies of our bank's securities safekeeping statements issued by the Kansas City Fed. In addition, Repo confirmations will be executed and provided to the City each time a Repo is initiated or the investment balance is changed. As a standard part of our program, the Repo confirm itemizes the amount of each specific security sold under Repo to the City as of that date. We are confident that these procedures will fully satisfy any statutory requirements that may apply. Our bank will be committed to these procedures until December 31, 1989, with extension of this commitment beyond that date at the agreement of both parties. The conscientious and objective consideration of our bank's cash management proposal by the City is greatly appreciated by both Larry and myself. The safety, return and convenience of this service will prove extremely valuable to the City. Thank your for your consideration. Sincerely, TcC �``la cy ya Ted Haggart Senior Vice President and Investment Officer kw 0 CITY OF SALINA CORPORATE CASH MANAGEMENT PROPOSAL FIRST NATIONAL BANK - SALINA, KANSAS Y PREPARED FOR: BOB BILES CITY CLERK AND DIRECTOR OF FINANCE • Larry Britegam Vice President Cash Management Services First National Bank & Trust Co. 101 North Santa Fe Salina, Kansas 67401 0 0 TABLE OF CONTENTS 1. Cover Page 2. Table of Contents 3. Introduction 4. Existing investment balances and First National Bank investment rates 5. Account analysis (soft -dollar or balance requirement for combined totals including activity charges and management fees for June, July, and August 1988 6. Account analysis breakdown on a fee basis for activity and management fees to participate in corporate cash management 7. Total available cash for purposes of analizing cash flow for June, July, and August 1988 8. Actual balances invested under existing program and those under • the proposal for June, July, and August 1988 9. Three month comparison on average investment balances, average rate, and averaged income, between current and proposed systems. 10. Estimated investment amounts on current cash flow and what the interest income would be 11. Graphs showing estimated amounts that could have been invested on your daily cash flow 12. Net cash growth using services proposed by First National Bank using corporate cash management 13. Advantages to City of Salina of utilizing cash management services at First National Bank of Salina. 14. Summary • 0 INTRODUCTION Bob, as were your instructions in your cover letter I went ahead and used our rates with your investment balances. This should allow you to compare what the difference in rates would have generated in income. I also played what if and went ahead and ran your cash flow as if you were banking with us. In order to accomplish this I backed out all of investment entries out of your bank statements. I took the ending ledger balance off your bank statements as a starting point for the next months cash flow. I added in your investment balance to obtain a net cash balance to start with. All checks (or debits) were posted exactly as they were on your old system. I then posted all of your deposits and ran an availability program using a 50%, 45%, and 5% mix. This would make the assumption that 50% of your items would be available the • day you deposit them, 45% the next day, and 5% the second day. Actually .this was probably a conservative approach based off of your assessment of 90% of your items are drawn off of Salina Banks. I then plugged in your target balance and invested the money that was available to come up with the income totals. • 0 CITY OF SALINA, KANSAS Interest Earnings for June 1988 BANK: First National of Salina Total $11,319.53 Average rate for the month of June = 6.285 • Invested Overnight Interest Date Overnight Rate Earned June 1 1,770,000 6.20 $ 300.66 2 2,170,000 6.15 365.63 3 2,170,000 6.15 365.63 4 2,170,000 6.15 365.63 5 2,170,000 6.15 365.63 6 2,235,000 6.20 379.64 7 2,290,000 6.15 385.85 8 2,140,000 6.20 363.51 9 2,140,000 6.10 357.64 10 2,140,000 6.10 357.64 11 2,140,000 6.10 357.64 12 • 2,140,000 6.10 357.64 13 2,053,000 6.25 351.54 14 2,974,000 6.20 505.17 15 2,839,000 6.35 493.91 16 2,906,000 6.30 501.58 17 2,964,000 6.35 515.65 18 2,964,000 6.35 515.65 19 2,964,000 6.35 515.65 20 2,964,000 6.40 519.72 21 2,964,000 6.35 515.65 22 1,873,000 6.25 320.72 23 1,778,000 6.30 306.89 24 1,500,000 6.35 260.96 25 1,500,000 6.35 260.96 26 1,500,000 6.35 260.96 27 1,500,000 6.40 263.01 28 1,700,000 6.40 298.08 29 1,650,000 6.70 302.88 30 1,525,000 6.80 284.11 Total $11,319.53 Average rate for the month of June = 6.285 • 0 CITY OF SALINA, KANSAS Interest Earnings for July 1988 BANK: First National of Salina Total $11,287.34 Average rate for the month of July = 6.5290 • Invested Overnight Interest Date Overnight Rate Earned July 1 1,625,000 6.50 $ 289.38 2 1,625,000 6.50 289.38 3 1,625,000 6.50 289.38 4 1,625,000 6.50 289.38 5 1,720,000 6.50 306.30 6 1,765,000 6.50 314.32 7 1,600,000 6.45 282.74 8 1,600,000 6.35 278.36 9 1,600,000 6.35 278.36 10 1,600,000 6.35 278.36 11 1,625,000 6.35 282.71 12 1,625,000 6.30 280.48 • 13 1,625,000 6.20 276.03 14 1,625,000 6.55 291.61 15 3,075,000 6.65 560.24 16 3,075,000 6.65 560.24 17 3,075,000 6.65 560.24 18 2,875,000 6.70 527.74 19 2,950,000 6.60 533.42 20 2,995,000 6.50 533.36 21 1,995,000 6.60 360.74 22 2,145,000 6.70 393.74 23 2,145,000 6.70 393.74 24 2,145,000 6.70 393.74 25 2,129,000 6.65 387.89 26 2,019,000 6.60 365.08 27 1,869,000 6.35 325.15 28 1,869,000 6.65 340.52 29 1,889,000 6.60 341.57 30 1,889,000 6.60 341.57 31 1,889,000 6.60 341.57 Total $11,287.34 Average rate for the month of July = 6.5290 • 0 CITY OF SALINA, KANSAS Interest Earnings for August 1988 BANK: First National of Salina Total $13,264.24 Average rate for the month of August = 6.79677 • Invested Overnight Interest Date Overnight Rate Earned August 1 2,039,000 6.70 $ 374.28 2 2,109,000 6.65 384.24 3 2,200,000 6.55 394.79 4 2,300,000 6.50 409.59 5 2,480,000 6.55 445.04 6 2,480,000 6.55 445.04 7 2,480,000 6.55 445.04 8 2,655,000 6.60 480.08 9 2,655,000 6.55 476.44 10 2,700,000 6.55 484.52 11 2,700,000 6.95 514.10 12 2,700,000 6.90 510.41 • 13 2,700,000 6.90 510.41 14 2,700,000 6.90 510.41 15 2,700,000 7.20 532.60 16 2,600,000 7.05 502.19 17 2,500,000 6.95 476.02 18 2,450,000 6.80 456.43 19 2,400,000 6.85 450.41 20 2,400,000 6.85 450.41 21 2,400,000 6.85 450.41 22 2,300,000 6.90 434.79 23 2,050,000 6.75 379.10 24 1,450,000 6.50 258.21 25 1,450,000 7.00 278.08 26 1,475,000 6.95 280.85 27 1,475,000 6.95 280.85 28 1,475,000 6.95 280.85 29 2,075,000 6.95 395.10 30 2,575,000 6.85 483.25 31 2,575,000 6.95 490.30 Total $13,264.24 Average rate for the month of August = 6.79677 • l� FIRST NATIONAL BANK AND TRUST COMPANY OF SALINA A SERVICE COMPANY 1101 N. SANTA FE I P.O. BOX 8001 SALINA, KS. 67402 1 (913) 827-5564 I MEMBER FDIC INVESTMENT DIVISION ACC:OUN'1" ANALYSIS JUNE' -88 CITY OF SALINA u COLLECTED BALANCE REQUIREMENT 1,625 137,748 19,502 2,124 10,835 26,003 5,201 0 0 0 u u 0 u 0 5,417 0 u 2,16-1 11,669 0 u Compensating Balances on Loans 0 ----------------------------------------------------------------------------- 'TOTAL COLLECTED BAL. NEEDED 10 SUPPOR1 ACCOUNT ACTIVITY 232,291 BALANCE AVAILABLE TO SUPPORT CREDI"I AND OTHER SERVICES NOT DIRECTLY CHARGED FOR; • ADDITIONAL COL. BAL. NEEDED TO SUPPORT ACCNI ACTIVIIY (232,291) TARGET BALANCE EQUALS: 'Total Col Bal -Comp Bal on Loans+lu`k _ $255,520 AVERAGE DAILY LEDGER BALANCES AVERAGE DAILY - ACCOUNT NUMBER 1111111 FLOAT JUNE -88 EARNINGS CREDIT 6.293% AVERAGE DAILY - JULX-88 EARNINGS CREDIT 6.350% COLLECTED BALANCE -------------------------------------------------------------- BALANCE COST REQUIRED BANK SERVICES -------------------------------------------------------------- PER UNIT ACTIVITY PER UNIT Credit Entries 0.150 50 32.5036 Deposit Items - GROUP A 0.055 11,558 11.9180 GROUP B 0.075 1,200 16.2518 GROUP C 0.098 100 21.2357 •Checks - 1st 500 0.100 500 21.6691 501 & OVER 0.080 1,500 17.3353 Return Checks 0.600 40 130.0146 Wire Transfers Incoming 3.500 u 758.4184 Outgoing 1st 5 6.000 0 1,300.1459 OVER 5 4.500 0 975.1094 Collection Items 8.000 0 1,733.5`'279 Bds, Cpns, Drafts 8.000 0 1,733.5279 DTC'S 1st 25 3.000 0 650.0730 OVER 25 1.500 I11 325.0365 OVER 50 0.750 0 162.5182 Col. Balance Reporting 25.u0u 1 5,417.2746 Controlled Disbursement 75.000 0 16,251.8238 Additional Statements 1.u00 0 216.6910 Account Maintenance -------------------------------------------------------------- 10.000 1 2,166.9u98 Cash Mgmt Service Fee Spec. Bank Arrangements u COLLECTED BALANCE REQUIREMENT 1,625 137,748 19,502 2,124 10,835 26,003 5,201 0 0 0 u u 0 u 0 5,417 0 u 2,16-1 11,669 0 u Compensating Balances on Loans 0 ----------------------------------------------------------------------------- 'TOTAL COLLECTED BAL. NEEDED 10 SUPPOR1 ACCOUNT ACTIVITY 232,291 BALANCE AVAILABLE TO SUPPORT CREDI"I AND OTHER SERVICES NOT DIRECTLY CHARGED FOR; • ADDITIONAL COL. BAL. NEEDED TO SUPPORT ACCNI ACTIVIIY (232,291) TARGET BALANCE EQUALS: 'Total Col Bal -Comp Bal on Loans+lu`k _ $255,520 *Account Analysis "Cost" Breakdown for June, 1988 U PROCESSING COSTS Debit/Credit Entries .15 50 7.50 Deposit Items - Group A .055 11,558 635.69 Group B .075 1,200 90.00 Group C .098 100 9.80 Checks - 1st 500 .10 500 50.00 Over 500 .08 1,500 120.00 Return Checks .60 40 24.00 Account Maintenance 10.00 1 10.00 Total Processing Cost MANAGEMENT FEES Collected Balance Reporting 25.00 Cash Management Service Fee 100.00 Total Management Fees • BANK PROFIT 10% of Required Target Balance NET *Target Balance = $255,519.86 Comparable Hard Dollar Charge . $ 1,179.19 0 $946.99 1 $ 25.00 1 100.00 $125.00 $107.20 a FIRST NATIONAL BANK Aw TRUST COMPANY OF SALINA A SERVICE COMPANY 1101 N. SANTA FE I P.O. BOX 800 1 SALINA. KS. 87402 I (913) 827-5584 1 MEMBER FDIC INVESTMENT DIVISION CITY OF SALINA ACCOUNT NUMBER 1111111 .. JULY. 88 EARNINGS CREDIT .AUOUST"88 EARNINGS CREDIT ------------------------ ACCOUNT ANALYSIS JULY -88 AVERAGE DAILY LEDGER BALANCES AVERAGE DAILY ----- FLOAT 6.350% AVERAGE DAILY - 6.630% COLLECTED BALANCE ---------------------------------- COST BANK SERVICES PER UNIT ---------------------------- BALANCE REQUIRED ACTIVITY PER UNIT -------------------------- Credit Entries 0.150 Deposit Items - GROUP A 0.055 GROUP 8 0.075 GROUP C 0.098 • Checks - 1st 500 0.100 501 & OVER 0.080 Return Checks 0.600 Wire lransters Incoming 3.500 Outgoing 1st 5 6.000 OVER 5 4.500 Collection Items 8.000 Bds, Cpns, Dratts 8.000 DTC'S 1st 25 3.000 OVER 25 1.500 OVER 50 0.750 Col. Balance Reporting 25.000 Controlled Disbursement 75.000 Additional Statements 1.000 Account Maintenance ------------------------------------ 10.000 Cash Mgmt Service Fee Spec: Bank Arrangements 52 32.2119 11,610 11.8110 1,161 16.1059 129 21.0451 500 21.4746 1,437 17.1797 0 128.8475 0 751.6106 0 1,288.4753 U 966.3565 0 1,717.9671 U 1,717.9671 0 644.2377 U 322.1198 U 161.0594 1 5,368.6411 U 16.105.941i 0 214.7459 1 --------------------- 2,147.4588 Compensating Balances on Loans ------------------------------------------------------- TOTAL COLLECTED BAL. NEEDED TO SUPPORT- ACCOUNT ACTIVITY BALANCE AVAILABLE TO SUPPORT CREDIT AND OTHER SERVICES NOT DIRECTLY CHARGED FOR: • ADDITIONAL COL. BAL. NEEDED TO SUPPORT ACONT. ACT'IVIT'Y TARGET BALANCE EQUALS: Total Col Bal -Comp Bal on Loans+10% = 0 0 0 ------------- COLLECTED BALANCE REQUIREMENT ------------- 1,675 137,126 18,699 2,715 10,737 24,687 0 0 0 U 0 0 0 U U 5,369 0 0 2,147 ------------- 21,475 U 0 U 224,630 (224,630) $24"],093 0 *Account Analysis "Cost" Breakdown for July, 1988 PROCESSING COSTS Debit/Credit Entries .15 52 7.80 Deposit Items - Group A .055 11,610 638.55 Group B .075 1,161 87.08 Group C .098 129 12.64 Checks - lst 500 .10 500 50.00 Over 500 .08 1,437 114.96 Return Checks .60 -0- -0- Account Maintenance 10.00 1 10.00 Total Processing Cost $921.03 • MANAGEMENT FEES Collected Balance Reporting 25.00 1 $ 25.00 Cash Management Service Fee 100.00 1 100.00 Total Management Fees $125.00 BANK PROFIT 10% of Required Target Balance NET *Target Balance Comparable Hard Dollar Charge 0 _ $247,093.07 $ 1,150.63 $104.60 ��muuoun� �u FIRST ���uuuO��mL BANKmD u�wmu ��0�� �� SALmNA A SERVICE COMPANY /1o1w.SANTA ps/p/zBOX mm/axuwA,KS. o/*o2/(9?3)uu,-55n^/MEMBER FDIC INVESTMENT DIVISION ACCOUNT ANALYSIS . AUGUST -88 CITY OF SALINA ACCOUNT NUMBER 1111111 �AUGU&t-88 EARNINGS CREDIT 6.630% APICMBEAWa8 EARNINGS CREDIT 6.884, ------------------------------------- BANK SERVICES ----------------------- Credit Entries Deposit It GROUP A pos Items � GROUP 8 GROUP 8 ����heo�s - 1st 500 ��� 501 & OVER Return Checks Wire Transfers Incoming Outgoing 1st 5 OVER 5 Collection Items 8ds, 0pns, Drafts DT0`S 1st 25 OVER 25 OVER 30 Col. 8alancs, Reporting Controlled Disbursement Additional Statements Account Maintenance ----------------------- Cash MgTt Service Fee Spec. Bank Arrangements AVERA&E DAILY LEDGER BALANCES AVERAGE DAILY FLOAT AVERAGE DAILY COLLECTED BALANCE ------------------- COST PER UNIT ACTIVITY ------------------------ 0.150 102 8.855 11,610 0.875 1,161 0.898 129 0.100 500 8.880 1,339 0.600 0 3.500 U 6.000 0 4.500 0 8.808 0 8.000 0 3.000 0 1.500 0 0.750 8 25.000 1 75.008 0 1.000 O 10.000 --------~-~------------- 1 BALANCE COLLECTED REQUIRED BALANCE PER UNIT REQUIREMENT -------------------------- 30.8515 3,147 11.3122 131,335 15.4258 17,909 28.1563 2,600 20.5677 10`284 16.4541 22,032 123.4060 O 719,8684 0 1,234.0601 0 925.5450 0 1,645.4134 O 1,64S.4134 8 617.0300 8 308.515O 0 164.2575 U 5,141.9169 5,142 15,425.7507 o 205.6767 0 2/056.7668 2`057 ------------------ 28,568 V 0 0 8nmpensatin8 Balances on Loans ------------------------------------------------------- TOTAL COLLECTED BAL. NEEDED TO SUPPORT ACCOUNT ACTIVITY BALANCE AVAILABLE TO SUPPORT CREDIT AND OTHER SERVICES NOT DIRECTLY CHARGED FOR: ADDITIONAL COL. BAL. NEEDED TO SUPPORT A8CNT. ACTIVITY TARGET BALANCE EQUALS: Total Col Bal -Comp Bal on Loans+10% = 215/074 (21S'074) $236,581 ------~----^-- n U *Account Analysis "Cost" Breakdown for August, 1988 PROCESSING COSTS Debit/Credit Entries Deposit Items - Group A Group B Group C Checks - 1st 500 Over 500 Return Checks Account Maintenance Total Processing Cost • MANAGEMENT FEES Collected Balance Reporting Cash Management Service Fee Total Management Fees BANK PROFIT 10% of Required Target Balance NET *Target Balance Comparable Hard Dollar Charge • .15 102 15.30 .055 11,610 638.55 .075 1,161 87.08 .098 129 12.64 .10 500 50.00 .08 1,339 107.12 .60 -0- -0- 10.00 1 10.00 $920.69 25.00 1 $ 25.00 100.00 1 100.00 _ $236,581.68 $ 1,150.26 $125.00 $104.57 • CITY OF SALINA Total available cash for purposes of analizing cash flow for June 1988. Date Balance June 1 2,416,593.41 2 2,437,462.38 3 2,493,891.33 4 5 6 2,510,549.99 7 2,320,343.70 8 2,326,545.83 9 2,342,356.65 10 2,274,403.46 11 12 13 2,021,775.66 14 3,076,269.61 15 3,131,486.51 16 3,214,836.35 17 • 3,266,355.16 18 19 20 3,253,882.14 21 2,115,886.71 22 2,314,242.46 23 2,327,053.06 24 2,340,325.25 25 26 27 2,295,668.16 28 2,159,371.75 29 2,148,213.60 30 2,212,887.98 0 • n U CITY OF SALINA Total available cash for purposes of analizing cash flow for July 1988. Date Balance July 1 2,076,457.21 2 3 4 5 2,096,373.03 6 1,918,180.63 7 1,923,059.02 8 1,955,009.98 9 10 11 1,884,319.07 12 1,927,281.46 13 1,943,549.56 14 3,432,799.92 15 3,235,533.39 16 17 18 3,310,119.25 19 3,351,928.99 20 3,494,591.67 21 2,450,240.62 22 2,494,724.51 23 24 25 2,331,395.75 26 2,286,307.67 27 2,344,074.46 28 2,401,659.83 29 2,442,393.79 30 31 n u CITY OF SALINA Total available cash for purposes of analizing cash flow for August 1988. Date Balance August 1 2,542,490.79 2 2,643,046.08 3 2,798,557.80 4 2,996,692.56 5 2,949,739.80 6 7 8 2,834,421.27 • 9 2,952,935.80 10 2,898,828.76 11 2,938,988.66 12 2,973,774.66 13 14 15 2,860,008.48 16 2,727,548.72 17 2,770,685.71 18 2,455,114.76 19 2,574,335.98 20 21 22 2,321,594.03 23 2,298,851.33 24 2,306,620.49 25 2,455,365.95 26 2,608,626.40 27 28 29 2,727,546.40 30 2,589,508.97 31 2,662,391.71 n LJ 0 • • CITY OF SALINA Actual balances invested under existing program and those under the proposal for June 1988. Total Amount Estimated Amount Invested Invested Existing System Daily June 1 1,770,000 2,170,000 2 2,170,000 2,190,000 3 2,170,000 2,245,000 4 -0- -0- 5 -0- -0- 6 2,235,000 2,265,000 7 2,290,000 2,075,000 8 2,140,000 2,080,000 9 2,140,000 2,095,000 10 2,140,000 2,025,000 11 -0- -0- 12 -0- -0- 13 2,053,000 1,775,000 14 2,974.000 2,830,000 15 2,839,000 2,885,000 16 2,906,000 2,965,000 17 2,964,000 3,020,000 18 -0- -0- 19 -0- -0- 20 2,964,000 3,005,000 21 2,964,000 1,870,000 22 1,873,000 2,070,000 23 1,778,000 2,080,000 24 1,500,000 2,090,000 25 -0- -0- 26 -0- -0- 27 1,500,000 2,045,000 28 1,700,000 1,915,000 29 1,650,000 11900,000 .30 1,525,000 1;960,000 Avg. Amount 2,193,100 2,277,167 Avg. Rate 5.5967 6.285% Interest Income $10,007.17 $11,764.77 0 r 1 U • CITY OF SALINA Actual balances invested under existing program and those under the proposal for July 1988. Total Amount Estimated Amount Invested Invested Existing System Daily July 1 1,625,000 1,835,000 2 1,625,000 0 3 1,625,000 0 4 1,625,000 0 5 1,720,000 1,855,000 6 1,765,000 1,675,000 7 1,600,000 1,685,000 8 1,600,000 1,715,000 9 1,600,000 0 10 1,600,000 0 11 1,625,000 1,645,000 12 1,625,000 1,685,000 13 1,625,000 1,705,000 14 1,625,000 3,190,000 15 3,075,000 2,995,000 16 3,075,000 0 17 3,075,000 0 18 2,875,000 3,070,000 19 2,950,000 3,110,000 20 2,995,000 3,255,000 21 1,995,000 2,210,000 22 2,145,000 2,255,000 23 2,145,000 0 24 2,145,000 0 25 2,129,000 2,090,000 26 2,019,000 2,045,000 27 1,869,000 2,104,000 28 1,869,000 2,160,000 29 1,889,000 2,200,000 30 1,889,000 0 31 1,889,000 0 Avg. Amount 2,029,452 2,203,839 Avg. Rate ? 6.5297, Interest Income ? $12,218.93 n U U • CITY OF SALINA Actual balances invested under existing program and those under the proposal for August 1988. Total Amount Estimated Amount Invested Invested Existing System Daily August 1 2,039,000 2,310,000 2 2,109,000 2,410,000 3 2,200,000 2,570,000 4 2,300,000 2,770,000 5 2,480,000 2,720,000 6 2,480,000 0 7 2,480,000 0 8 2,655,000 2,605,000 9 2,655,000 2,725,000 10 2,700,000 2,670,000 11 2,700,000 2,710,000 12 2,700,000 2,745,000 13 2,700,000 0 14 2,700,000 0 15 2,700,000 2,630,000 16 2,600,000 2,495,000 17 2,500,000 2,540,000 18 2,450,000 2,225,000 19 2,400,000 2,345,000 20 2,400,000 0 21 2,400,000 0 22 2,300,000 2,090,000 23 2,050,000 2,065,000 24 1,450,000 2,075,000 25 1,450,000 2,225,000 26 1,475,000 2,380,000 27 1,475,000 0 28 1,475,000 0 29 2,075,000 2,500,000 30 2,575,000 2,360,000 31 2,575,000 2,435,000 Avg. Amount 2,298,323 2,483,226 Avg. Rate ? 6.796% Interest Income ? $14,328.32 0 • • CITY OF SALINA Comparision between current investment balances and rates and those proposed by FNB/Salina JUNE Avg. Investment Balance Avg. Rate Averaged Income Existing $2,193,000 ? ? FNB/Salina $2,277,167 6.285 $11,764.77 JULY Existing $2,029,452 ? ? FNB/Salina $2,203,839 6.529 $12,218.93 AUGUST Existing $2,298,323 ? ? FNB/Salina $2,483,226 6.796 $14,328.32 Avg. rate for FNB/Salina in September was 7.033 a1 • FIRST NATIONAL BANK AND TRUST COMPANY OF SALINA A SERVICE COMPANY 1 101 N. SANTA FE I P.O. BOX 8001 SALINA, KS. 67402 1(913) 827-5564 1 MEMBER FDIC INVESTMENT DIVISION FIRST NATIONAL BANK OF SALINA CASH MANAGEMENT SERVICES MONTH OF JUNE, 1988 ACCOUNT # XXXXXXXX CITY OF SALINA TOTAL: $11,764.77 Ll CORPORATE REPO (thousands) BEGINNING ENDING # INTEREST DATE BALANCE BUY SELL BALANCE RATE DAYS PAID 01 2,100 60 2,170 6.20 1 $ 368.60 02 2,170 20 2,190 6.15 1 369.00 03 2,190 55 2,245 6.15 3 1,134.80 06 2,245 20 2,265 6.20 1 384.74 07 2,265 190 2,075 6.15 1 349.62 2,075 5 2,080 6.20 1 353.32 •08 09 2,080 15 2,095 6.10 1 350.12 10 2,095 70 2,025 6.10 3 1,015.27 13 2,025 .250 1,775 6.25 1 303.94 14 1,775 1055 2,830 6.20 1 480.71 15 2,830 55 2,885 6.35 1 501.91 -16 2,885 80 2,965 6.30 1 511.77 17 2,965 55 3,020 6.35 3 1,576.19 20 3,020 15 3,005 6.40 1 526.90 21 3,005 1,135 1,870 6.35 1 325.33 22 1,870 200 2,070 6.25 1 354.45 23 2,070 10 2,080 6.30 1 359.01 24 2,080 10 2,090 6.35 3 1,090.81 27 2,090 45 2,045 6.40 1 358.58 28 2,045 130 1,915 6.40 1 335.78 29 1,915 15 11900 6.70 1 348.77 30 1,900 60 1,960 6.80 1 365.15 TOTAL: $11,764.77 Ll • 0 a FIRST NATIONAL BANK AND TRUST COMPANY OF SALINA A SERVICE COMPANY / 101 N. SANTA FE / P.O. BOX 800 / SALINA, KS. 67402 / (913) 827-5564 / MEMBER FDIC INVESTMENT DIVISION CITY OF SALINA CORPORATE REPO (thousands) FIRST NATIONAL BANK & TRUST OF SALINA CASH MANAGEMENT SERVICES, MONTH OF: July, 1988 ACCOUNT # XXXXXXXX TOTAL $12,218.93 BEGINNING ENDING 11 INTEREST DATE BALANCE BUY SELL BALANCE RATE DAYS PAID 01 1,795 40 1,835 6.50 4 $ 1,307.12 05 1,835 20 1,855 6.50 1 330.34 06 1,855 180 1,675 6.50 1 298.28 07 1,675 10 1,685 6.45 1 297.76 08 1,685 30 1,715 6.35 3 895.08 11 1,715 70 1,645 6.35 1 286.18 12 1,645 40 1,685 6.30 1 290.83 13 1,685 20 1,705 6.20 1 289.61 14 1,705 1,485 3,190 6.55 1 572.45 15 3,190 195 2,995 6.65 3 1,636.98 18 2,995 75 3,070 6.70 1 563.53 19 3,070 40 3,110 6.60 1 562.35 20 3,110 145 3,255 6.50 1 579.65 21 3,255 1,045 2,210 6.60 1 363.28 22 2,210 45 2,255 6.70 3 1,241.79 25 2,255 165 2,090 6.65 1 380.78 26 2,090 45 2,045 6.60 1 369.78 27 2,045 60 2,105 6.35 1 366.21 28 27105 55 2;160 6.65 1 393.53 29 2,160 40 2,200 6.60 3 1,193.40 TOTAL $12,218.93 1� • FIRST NATIONAL BANK AND TRUST COMPANY OF SALINA A SERVICE COMPANY 1101 N. SANTA FE 1 P.O. BOX 800 1 SALINA, KS. 67402 I (_913) 827-5564 1 MEMBER FDIC INVESTMENT DIVISION CITY OF SALINA CORPORATE REPO (thousands) FIRST NATIONAL BANK & TRUST OF SALINA CASH MANAGEMENT SERVICES MONTH OF: August, 1988 ACCOUNT 11 XXXXXXRX TOTAL $14,328.32 E BEGINNING ENDING # INTEREST DATE BALANCE BUY SELL BALANCE RATE DAYS PAID 01 2,265 45 2,310 6.70 1 $ 424.03 02 2,310 100 2,410 6.65 1 439.08 03 2,410 160 2,570 6.55 1 461.19 04 2,570 200 2,770 6.50 1 493.29 05 2,770 50 2,720 6.55 3 1,464.33 08 2,720 115 2,605 6.60 1 471.04 • 09 10 2,605 2,725 120 55 2,725 2,670 6.55 6.55 1 1 489.01 479.14 11 2,670 40 2,710 6.95 1 516.01 12 2,710 35 2,745 6.90 3 1,556.75 15 2,745 115 2,630 7.20 1 518.79 16 2,630 135 2,495 7.05 1 481.91 17 2,495 45 2,540 6.95 1 483.64 18 2,540 315 2,225 6.80 1 414.52 19 2,225 120 2,345 6.85 3 1,320.27 22 2,345 255 2,090 6.90 1 395.10 23 2,090 25 2,065 6.75 1 381.88 24 2,065 10 2,075 6.50 1 369.52 25 2,075 150 2,225 7.00 1 426.71 26 2,225 155 2,380 6.95 3 1,359.53 29 2,380 120 2,500 6.95 1 476.03 30 2,500 140 2,360 6.85 1 442.90 31 2,360 75 2,435 6.95 1 463.65 TOTAL $14,328.32 E • • 4J C E Y z aNi J C Q N LL O O L > d ~+ L U C7 0 Y Q m aJ N 'O a/ E a) v a) N Y L J I L Y O V C A N of C. 0) M a) O > Y > L C b U O C 1 Hm QCr. 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Based off of the information I received it was not possible to compare bottom line difference between our proposal and your existing system. But based off of the previous analysis we did feel very confident that we can generate a minimum of $5,000 to $10,000 dollars more a year in income. Assuming that rates stay in the same pattern that they've been, this number would actually be higher. • 0 ADVANTAGES TO THE CITY OF SALINA OF UTILIZING CASH MANAGEMENT SERVICES 1. Do 100% of your banking at FNB/Salina and receive complete security on all of your excess cash. 2. Receive good competitive overnight investment rates on several investment options. 3. Have the ability to increase or decrease your investments or borrowings on a daily basis. 4. Our transfers are in increments of $5,000, whether it is for investments or to borrow on a daily basis. This obviously simplifies your month-end balancing and allows you a clearer audit trail if you are trying to find a transfer amount. • 5. Have the ability to use A.C.H. debits or initiate A.C.H. credits. 6. Receive intra -day credit for deposits made before 12:00p.m. 7. Have the flexibility to deposit up to 5:30 p.m. and receive same day credit for those items. 8. Your greatest savings will surface with the utilization of all your resources. 9. A team of professionals whose sole responsibility is to manage your accounts will make daily recommendations to maximize income in a safe yet profitable manner. 10. The ability to receive one phone call daily and know exactly where your cash position is both on a ledger and collected basis. 11. We feel that we can generate more income for you at substantially less cost than what you are already paying! 12. To be able to choose and build your own cash management product for your business from a laundry list of services. • 13. Direct access to one of the most sophisticated cash management programs in this part of the country. n L SUMMARY: We really appreciate the opportunity Bob that you have given us. We feel very confident that our product will fit your needs exactly. We have spent a considerable amount of time analyizing your cash flow and feel very strongly that our program will substantially improve your earnings. As we have talked about previously we will change your cash management function around to help add additional profits to your bottom-line. You and your staff will find it much easier to balance and manage your money on a daily basis. One item that was very prevelant was that you currently are paying a fee equal to what our monthly charges will be, but have not received the benefits that our program can generate for you. I've been selling and perfecting cash management programs for now over 10 years at our bank. We currently have 74 companies that are using some aspect of our program. I can honestly say that this product will make you substantially morerp ofit over the course of a year and at the same time show you exactly what your cost of your banking relationship is to the penny. I know Bob that we can generate a minimum of $7,000 to $10,000 dollars a year more income at no additional cost to you. I also feel that • this number may actually be higher under certain conditions. Our goal will be to manage your money the most efficient way possible. There's no question that our concept of cash management is a lot different than almost all banks which provide these types of services. We have over 10 years experience in offering sophisticated cash management products to all sorts of businesses throughout the Midwest. Our goal in a continued effort to stay on the cutting edge for our customers. Our costs are upfront and we would appreciate very much the opportunity to provide cash management services for you. Lar y Briteg Vice Presiders Cash Management Services 0 n u A.C.H. SERVICES One of the areas in your letter stated that if we had other services that may benefit you that we should also present them. As our customer base of cash management customers continues to increase, one reason for this growth has been the implimentation of electronic based services. We have been able to attract companies who do business in multiple locations, to do 100% of their banking with us because of the efficiency of this product. We feel that the City of Salina could utilize A.C.H. services to process their monthly payroll. This would allow all of your employees to have their paycheck automatically deposited and will save you money in the processing of checks and employees taking time during their work schedule to go to the bank. I have • included some information on the product and our pricing, which includes both soft and hard dollar pricing. You might also note Bob, that there is a price brake for cash management customers. • n u ACH ORIGINATION PRICE SCHEDULE SOFT DOLLAR PRICING EFFECTIVE 01-01-88 THROUGH 12-31-88 Transmittal Methods Nacha formatted 1600 BPI tape Nacha formatted other mag media Non-nacha formatted 1600 BPI tape Non-nacha formatted other mag media Dial-up Transmission industrial nacha format • Per Item Charge: FED DAY WINDOW Immediate PRICE $15.00 per tape Information on request Immediate $20.00 per tape Information on request Immediate $10.00 per transmission FED NIGHT WINDOW Debit .07 .14 Credit .07 .14 Pre -note .07 .14 Addenda .07 .14 SPECIAL CHARGES: One time charge for non-nacha customization $100.00 Cross referencing set up or maintance per account $ 1.00 OTHER PRICING CONSIDERATIONS: We require the use of funds for two days by the advanced settlement of credit transactions or delayed settlement of debit transactions. *Deadline 10:00am one business day prior to effective date **It is suggested that payroll credits are presented 2 days prior to settlement to ensure funds availability for employees. • 0 • 0 ACH ORIGINATION PRICE SCHEDULE HARD CHARGES EFFECTIVE 01-01-88 THROUGH 12-31-88 ****** INPUT FILE FEE ****** Nacha Formatted Input File 1600 BPI Tape Nacha Formated Other Mag Media Input Requiring Formatting CASH MANAGEMENT CUSTOMER $12.50 NON CASH MANAGEMENT CUSTOMER $15.00 Information available on request Information available on request Dial-up Transmission $9.00 $10.00 Industrial Nacha Format ****** PER ITEM FEE ****** CASH MANAGEMENT NON CASH MANAGEMENT CUSTOMER CUSTOMER Night Cycle .07 .07 Premium Per item Per item fee 1 - 499 .14 .16 500 - 999 .12 .14 1,000 - 9,999 .08 .09 10,000 - 24,999 .07 .08 25,000 - 99,999 .06 .07 100,000 - .05 .06 WHAT IS THE ACH7 ACH is an acronym for the Automated_Clearing_House. The Automated Clearing House is a means by which a company can initiate paperless electronic debit or credit entries to customer or employee accounts maintained at participating financial institutions. These institutions can be banks, credit unions or savings and loan associations. Member institutions in this area are members of a regional association known as the MID_AMERICA PAYMENT EXCHANGE, MPX. • 10 HOW DOES THE ACH WORK? 1. Customer signs a "standing authorization" to allow to debit his account on a certain day of each month for his utility payment. Teie-Chek the easy way to pay your phone bill Paying bills can be a real grind ... especially when you find yourself spending time and money on stamps, checks and trips to the post office or trips to present your payment But with Tele-Chek, you save time and • money, because your financial institution (bank, credit union or savings and loan) does the work for you. They automatically deduct your telephone payment from your account every month. No checks, no stamps, no trips. And now, Tele-Chek is better than ever. At all banks, as well as at participating credit unions and savings & loans, it offers you: • Advance notice of payment About ten days prior to your account being charged you will be sent an itemized and if you have questiions,call reviewthe bill, Northwestern Bell Service Representative whose number is on the bill. • Proof of payment Your financial institution will provide you with monthly information showing the amount deducted and what the payment was for. • Reliable and consistent service Even When you're out of town, your phone bill will be automatically paid. And you won't have to worry about your payments getting lost or delayed In the mail. And Tele-Chek is free. To sign up, Just fill out the "authorization card" and return it with your current payment U QD L y". O N .O a > 9 t Ela NU U, EAS �Y pO Ei >n me Eo c_ �o t7 �a �icd �a moo' d t H am a VIU c�14' pcw Dc VL0 �nL YU NdIJ p o= al dC E"E m `o —0 >10 uEa, cA Oo $ t; °E Cx,5 I rAp N I cn C RC a�00q '� yoo_ d le I o rww of a CC O Nr aIDC I� �o pC 0C,+ r. f A u'~^ n N ` c A s For your records on (date) I authorized name of bank to pay and to charge to my account the amount of any Tele•Chek drawn on my account by and payable to the order of Northwestern Bell. I also agreed to the terms listed. 0 2. To be certain information provided by the customer is correct, a "pre -notification" process is followed. 3. On payment date, the company creates a magnetic tape of all - payment data for customers paying that day and sends it to the "originating bank." 4. The "originating bank" credits : . account for the total amount of payments represented -on the tape. The "originating bank" then strips off the debits from the tape of its own customers and sends the rest of the items to MPX. • 5. MPX electronically sorts data and sends the information to other banks, known as "receiving banks." b. Each "receiving bank" debits the apporpriate customer account for that individual's payment. 7. The debit for payment of his bill will show on the customer's next bank statement. 1] 0 STANDING THORIZATION COMPLETED 1 1 PRE -NOTIFICATION _ _ _ _ MAGNETIC TAPE WITH PAYMENT DATA SENT TO "ORIGINATING BANK PROCESS "ORIGINATING BANK" CREDITS ACCOUNT THEN STRIPS OFF "ON -US" DEBITS & SENDS TAPE TO MPX / MPX SORTS DATA FROM TAPE ELECTRONICALLY AND SENDS IT TO "RECEIVING BANKS" 1�/ W RECEIVING RECEIVING REBANKING RECEIVING BANK BANK DEBITS DEBITS DEBITS DEBITS CUSTOMER'S CUSTOMER'S CUSTOMER'S CUSTOMER'S ACCOUNT ACCOUNT ACCOUNT ACCOUNT 0 0 WHY SHOULD UTILIZE AN ELECTRONIC PAYMENT SYSTEM FOR OUR CUSTOMERS? 1. Banks_are_becoming_more reluctant_to_handle_gaoer_drafts If these paper items were to become electronic, it is cheaper and more efficient for the bank to handle the transaction. 2. There are_significant_cost_sav_ings_to_be_realized • Currently we have costs ranging from 11.8 cents for items processed through the lockbox to 45.2 cents for items pro- cessed as bill -as -a -draft items. An ACH item would cost less than s cents to produce and 7 cents for an originating bank to process. .�. Market_Pressure Currently, T is converting their, bili -as -a --draft customers over to ACH items and is beginning to study the possiblity. The Customer Accounting group is already receivi.ng calls asking when - will be offering this type of service. • 0 ADVANTAGES Ty CUSTOMER_OF UTILIZING_ACH_SYSTEM 1. Helps with customer's management of his finances 2. Saves the customer the cost of his check 3. Saves the cost of postage to mail the payment (or• the cost of gas if he drives to an office) 4. Customer's check could get lost or stolen -- this type of payment prevents that possibility 5. No late charge would ever be incurred by the customer • b. Customer's bill would be paid even if he were ill, out of town or just forgot to pay it DISADVANTAGES TO_CUSTOMER_OF_UTILIZING_eCH_SYSTEM 1. Loson. flexibility of when to pay his bill 2. Possible overdraft situations could occur for the customer (He could forget to record the transaction in his check register) 3. Re -folio of accounts would probably change the customer's due date (and subsequent payment date) 4. Relative, to the overdraft situation mentioned, his electric bill might pay, but forgetting to record the transaction • could cause other checks he has written to return to him insufficient 0 ADVANTAGES TO____ OF UTILIZING_THE_ACH_SYSTEM 1. Enhances/Improves image of, , to the customer 2. Work load reduced in the districts through elimination of bill -as -a -draft payments 3. Reduction in float associated with customer's payment is possible 4. Increase predictability of cash flow to • 5. Offers competition in the marketplace to payment systems currently being offered by financial institutions b. Processing costs in the G.O. reduced through reduced volume of walk-in payments and lockbox payments 7. Two bill printings would be unnecessary for bill -as -a -draft customer 8. Reduction of deliquencies and receivables (over the long-term) CITY OF SALINA, KANSAS Interest Earnings for June 1988 Bank: Bank IV Salina. N.A. Average rate for the Month of June = 5.60% Invested Overnight Interest Date Overnight Rate Earned June 1 1,770,000 5.5 266.71 2 2,170,000 ° 326.99 3 ' 2,170,000 326.99 4 2,170,000 326.99 5 2,170,000 „ 326.99 6 2,235,000 „ 336.78 7 2,290,000 „ 345.07 8 2,140,000 „ 322.47 9 2,140,000 „ 322.47 10 2,140,000 „ 322.47 11 2,140,000 „ 322.47 12 2,140,000 „ 322.47 13 2,053,000 309.36 14 2,974,000 „ 448.14 15 2,839,000 5.625 437.52 16 2,906,000 447.84 17 2,964,000 456.78 18 2,964,000 " 456.78 19 2,964,000 456.78 20 2,964,000 456.78 21 2,964,000 456.78 22 1,873,000 288.65 23 1,778,000 274.01 24 1,500,000 5.75 236.30 25 1,500,000 236.30 26 1,500,000 236.30 27 1,500,000 236.30 28 1,700,000 267.81 29 1,650,000 259.93 30 1,525,000 240.24 Total 10,071.47 Average rate for the Month of June = 5.60% CITY OF SALINA, KANSAS Interest Earnings for July 1988 Bank: Bank IV Salina, N.A. Total Average rate for the Month of July = 6.01% Invested Overnight Interest Date Overnight Rate Earned July 1 1,625,000 5.750 255.99 2 1,625,000 It 255.99 3 1,625,000 It 255.99 4 1,625,000 255.99 5 1,720,000 270.96 6 1,765,000 278.05 7 1,600,000 It 252.05 8 1,600,000 5.625 246.58 9 1,600,000 11 246.58 10 1,600,000 It 246.58 11 1,625,000 5.750 255.99 12 1,625,000 255.99 13 1,625,000 " 255.99 14 1,625,000 6.000 267.12 15 3,075,000 11 505.48 16 3,075,000 It 505.48 17 3,075,000 " 505.48 18 2,875,000 6.250 492.29 19 2,950,000 505.14 20 2,995,000 512.84 21 1,995,000 It 341.61 22 2,145,000 " 367.29 23 2,145,000 " 367.29 24 2,145,000 " 367.29 25 2,129,000 It 364.55 26 2,019,000 " 345.72 27 1,869,000 5.125 313.63 28 1,869,000 6.375 326.43 29 1,889,000 329.93 30 1,889,000 329.93 31 1,889,000 329.93 10,410.16 Total Average rate for the Month of July = 6.01% CITY OF SALINA, KANSAS Interest Earnings for August 1988 Bank: Bank IV Salina, N.A. Total Average rate for the Month of August = 6.46% 12,577.41 Invested Overnight Interest Date Overnight Rate Earned Aug 1 2,039,000 6.375 356.13 2 2,109,000 368.35 3 2,200,000 384.25 4 2,300,000 401.71 5 2,480,000 433.15 6 2,480,000 433.15 7 2,480,000 433.15 8 2,655,000 463.72 9 2,655,000 463.72 10 2,700,000 471.58 11 2,700,000 471.58 12 2,700,000 471.58 13 2,700,000 471.58 14 2,700,000 471.58 15 2,700,000 6.625 490.07 16 2,600,000 if 471.92 17 2,500,000 6.500 445.20 18 2,450,000 It 436.30 19 2,400,000 6.125 402.74 20 2,400,000 402.74 21 2,400,000 402.74 22 2,300,000 6.625 417.46 23 2,050,000 it 372.09 24 1,450,000 263.18 25 1,450,000 ° 263.18 26 1,475,000 267.72 27 1,475,000 267.72 28 1,475,000 267.73 29 2,075,000 376.63 30 2,575,000 467.38 31 2,575,000 467.38 Total Average rate for the Month of August = 6.46% 12,577.41 BANK IV, SALINA COMMERCIAL INVESTMENT CHECKING ACCOUNT INITIAL PROJECTION NOTE: Figured on past 3 months activity for average monthly 'Collected Balance Requirement'. r MONTHS OF Ce- Z<I9-6 - Account Number Current Collected Balance Requirement: Account Maintenance Deposit 6 Checks @.14 .70 Bi.o SS R� ws.y ,,Deposited Items @,663 x'3577 XKI ' Return Checks @:.1.00 Other Other TOTAL SERVICES 6.00 �3.3G ail.7�f by 3 - a83.27 /S •3C 8%��� .by 3 - 7/3.'13 REQUIRED COLLECTED BALANCE CALCULATIONS: Step 1: Total services R 12 Step 2: Divide by 3 mo ave T -Bill Rate sby 3 - -by 3 =by 3- ,066 .0673 07062 =by 3 .0475 Step 3: Add base amount requirement of $2500 Step 4: Add other Step 5: Divide by reserve factor of .88 REQUIRED COLLECTED BALANCE (round to nearest $100) �,� ooz.74 i2�o3z.yp f n'oCy'T�7TTrf' ,QQ LTC Zu?Gop Effective Date of Change: Wanda Steuber, Vice President Operations FIRST BANK AND TRUST CO. October 14, 1988 Mr. Robert K. Biles City Clerk & Director of Finance City of Salina 300 West Ash Salina, Kansas 67401 Dear Bob: 235 South Santa Fe Box 1337 Salina, Ks. 67402.1337 (913) 825-2211 Thank you for the opportunity to bid on the City of Salina's account. I have enclosed four different options we offer for the investment of the City's overnight funds, along with a prospectus on each of the money market mutual funds for your review to see if they are appropriate for the City. Using the average of 2,000 checks per month and 12,900 deposited items per month, that you provided, and assuming the average of 95 deposits per month shown on the statements is representative of the city's activity, our monthly charges on the account would be as follows: Monthly maintenance charge $5.00 Total checks written and deposits: 2,095 at $.10 equals $209.50 Total items deposited: 12,900 at $.04 equals $516.00 Total charges before earnings credit $730.50 That fee would be reduced by an earnings credit based on the collected balance in the account during the month. The earnings rate used during June was 6.53%, July was 6.59%, and August was 6.89%. I would be happy to calculate your actual earnings credit if you would provide the average collected balance during each month. The balance to be retained in the account will be established by the City. Any surplus funds left in the account will reduce the monthly fees imposed due to the earnings credit, but if you feel higher earnings are available by investing overnight, a collected balance of zero may be maintained. We would once again thank you for the opportunity to bid on your account and if we may explain any of the material provided or provide any other needed information, please contact our Bank at your convenience. Sincerely, ,_1�9 Steven Michel Senior Vice resident & Cashier MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION 9 CITY OF SALINA, KANSAS Interest Earnings for June 1988 Bank: First Bank & Trust Co. M,w Q<q°` 1 Type of Investment: Overnight Funds - Secured L. Po. Invested Date Overnight Overnight Rate Interest Earned JUNE 1 $1,770,000 5.7500% 278.84 2 32,1701000 5.7500% 341.85 3 $2,170,000 5.7500% 341.85 4 $2,170,000 5.7500% 341.85 5 $2,170,000 5.7500% 341.85 6 $2,235,000 5.8750% 359.74 7 $2,290,000 5.8750% 368.60 8 3291409000 6.0000% 351.78 9 329140,000 6.0000% 351.78 10 $2,140,000 6.0000% 351.78 it $2,140,000 6.0000% 351.78 12 $2,140,000 6.0000% 351.78 13 $2,053,000 6.0000% 337.48 14 $2,974,000 6.0000% 488.88 15 $2,839,000 6.0000% 466.68 16 $2,906,000 6.0000% 477.70 17 $2,964,000 6.0000% 487.23 18 329964,000 6.0000% 487.23 19 329964,000 6.0000% 487.23 20 $2,964,000 6.1250% 497.38 21 $2,964,000 6.1250% 497.38 22 $1,873,000 6.1250% 314.30 23 $1,778,000 6.1250% 298.36 24 $1,500,000 6.1250% 251.71 25 $1,500,000 6.1250% 251.71 26 $1,500,000 6.1250% 251.71 27 $1,500,000 6.1250% 251.71 28 $1,700,000 6.1250% 285.27 29 $1,650,000 6.3750% 288.18 30 $1,525,000 6.3750% 266.35 Total Average rate for the Month of June = 6.01% 10,820.01 e It CITY OF SALINA, KANSAS Interest Earnings for July 1988 Hank: First Bank 8 Trust Co. Type of Investment: Overnight Funds - Secured Invested Overnight Interest Date Overnight Rate Earned JULY 1 $1,625,000 6.6000% 293.84 2 $1,6259000 6.6000% 293.84 3 $1,625,000 6.6000% 293.84 4 $1,625,000 6.6000% 293.84 5 $1,720,000 6.3750% 300.41 6 $1,765,000 6.3750% 308.27 7 $1,600,000 6.3750% 279.45 8 $1,6009000 6.3750% 279.45 9 $1,600,000 6.3750% 279.45 10 $1,600,000 6.37509 279.45 11 $1,625,000 6.5000% 289.38 12 $1,625,000 6.5000% '289.38 13 $1,625,000 6.1250% 272.69 14 $1,625,000 6.3750% 283.82 15 $3,075,000 6.5250% 549.71 16 $3,075,000 6.5250% 549.71 17 $3,075,000 6.5250% 549.71 18 $2,875,000 6.5250% 513.96 19 $2,950,000 6.5250% 527.36 20 $2,995,000 6.2500% 512.64 21 $1,995,000 6.3750% 348.44 22 $2,145,000 6.3750% 374.64 23 $2,145,000 6.3750% 374.64 24 $2,145,000 6.3750% 374.64 25 $2,129,000 6.3750% 371.85 26 $29019,000 6.3750% 352.63 27 $1,869,000 6.3750% 326.43 28 $1,869,000 6.3750% 326.43 29 $1,889,000 6.3750% 329.93 30 $1,889,000 6.3750% 329.93 31 $118899000 6.3750% 329.93 Total 11,079.89 Average rate for the Month of July = 6.42% ,+ r CITY OF SALINA, KANSAS Interest Earnings for August 1988 Bank: First Bank & Trust Co. Type of Investment: Overnight Funds - Secured Total 12,772.37 Invested Overnight Interest Date Overnight Rate Earned AUG 1 $2,039,000 6.3750% 356.13 2 $2,109,000 6.3750% 368.35 3 $2,200,000 6.2500% 376.71 4 $2,300,000 6.2500% 393.84 5 $2,480,000 6.2500% 424.66 6 $2,480,000 6.2500% 424.66 7 $2,480,000 6.2500% 424.66 8 $2,655,000 6.3750% 463.72 9 $2,655,000 6.3750% 463.72 10 $2,700,000 6.3750% 471.58 11 $2,700,000 6.7500% 499.32 12 $29700,000 6.6250% 490.07 13 $2,700,000 6.6250% 490.07 14 $2,700,000 6.6250% 490.07 15 $29700,000 7.0000% 517.81 16 $2,600,000 6.8750% 489.73 17 $2,500,000 6.6250% 453.77 18 $2,450,000 6.6250% 444.69 19 $2,400,000 6.6250% 435.62 20 $2,400,000 6.6250% 435.62 21 $2,400,000 6.6250% 435.62 22 $2,300,000 6.6250% 417.47 23 $2,050,000 6.5000% 365.07 24 $1,450,000 6.2500% 248.29 25 $1,450,000 6.6250% 263.18 26 $1,475,000 6.7500% 272.77 27 $1,475,000 6.7500% 272.77 28 $1,475,000 6.7500% 272.77 29 $2,075,000 6.7500% 383.73 30 $2,575,000 6.6250% 467.38 31 $29575,000 6.5000% 458.56 Total 12,772.37 Average rate for the Month of June = 6.51% A CITY OF SALINA, KANSAS Interest Earnings for June 1988 S<<4 Hank: First Hank 8 Trust Co. --'Q 19 �O Type of Investment: Money Market Mutual Fund Trust for U. S. Treasury Obligations i h Invested Overnight Interest '. Date Overnight Rate Earned JUNE 1 $1,770,.000 6.2550% 303.33 2 $2,170,000 6.3051% 374.85 ' 3 $29170,000 6.3435% 377.13 4 $2,1709000 0.3435% 377.13 5 $29170,000 6.3435% 377.13 6 529235,0006.3306% 387.64 7 52,2909000. q6.3950% 401.22 8 . $2,140,000, 6.4550% 378.46 9 $291409000 6.4450% 377.87 10 $29140,000 6.4408% 377.62 11 $29140,000 6.4408% 377.62 12 $2,140,000 6.4408% 377.62 13 $2,053,000 6.4555% 363.10 ". 14 $219741000 6.4655% 526.80 15 $2,8399000 6.5169% 506.89 16 $2,9069000 6.5164% 518.82 17 $2,964,000 .6.5838% 534.64 18 $2,9649000 6.5838% 534.64 . 19 $2,964,000 6.5838% 534.64 20 $2,964,000 6.6250% 537.99 ' 21 $2,964,000 6.6396% 539.17 22 $1,873,000 6.5633% 336.80 23 $197789000 6.5876% 320.90 24 $1,500,000 6.5963% 271.08 25 $195009000 6.5963% 271.08 26 $1,500,000 6.5963% 271.08 27 $1,500,000. 6.5981% 271.15 28 $1,700,000 6.6444% 309.47 29 $1„650,000 6.7450% 304.91 30 $1,525,000 6.8546% 286.39 Total 11,727.19 Average rate for the Month of June = 6.51% A CITY OF SALINA, KANSAS Interest Earnings for July 1988 Bank: First Bank 8 Trust Co. Type of Investment: Money Market Mutual Fund Trust for U., S. Treasury Obligations Invested Overnight •Interest Date Overnight Rate Earned JULY 1 $1,625,000 6.6144% 294.48 2 $1,625,000 6.61449 294.48 3 $1,625,000 6.6144% 294.48 4 $1,625,000 6.6144% 294.48 5 $1,7201,000 6.5993% 310.98 6 $1,765,000 6.60509 319.39 7 $1,600,000 6.6184% 290.12 8 $19600,600 6.60399 289.49 9 $196009000 6.6039% 289.49 10 $1,600,000 6.6039% 289.49 11 $1,625,000 6.6269% 295.03 12 $1,625,000 6.5850% 293.17 13 $1,625,000 6.5550% 291.83 14 $19625,000 6.6644% 296.70 15 $3,075,000 6.8100% 573.72 16 $39075,000 6.8100% 573.72 17 $3,075,000 6.8100% 573.72 18 $29875,000 6.8150% 536.80 19 $2,950,000 6.7950% 549.19 20 $29995,000 6.7150% 551.00 21 $19995,000 6.7450% 368.67 22 $2,1459000 6.8225% 400.94 23 $2,145,000 6.8225% 400.94 24 $2,145,000 6.8225% 400.94 25 $29129,000 6.8200% 397.80 26 $2,019,000 6.8177% 377.12 27 $1,869,000 6.6772% 341.91 28 $198699000 6.8244% 349.45 29 $1,8899000 6.8052% 352.19 30 $1,8899000 6.8052% 352.19 31 $1,889,000 6.8052% 352.19 Total 119596.08 Average rate for the Month of.July = 6.71% f� c* CITY OF SALINA, KANSAS Interest Earnings for August 1988 Bank: First Bank 8 Trust Co. Type of Investment: Money Market Mutual Fund Trust For U. S. Treasury Obligations Total 0 Average rate for the Month of August = 6.74% 13,523.96 A Invested Overnight Interest Date Overnight Rate Earned AUG 1 $2,039,000 6.7050% 374.56 2 $2,109,000 6.71509 388.00 3 $2,200,000 6.7108% 404.48 4 $293009000 6.7150% 423.14 5 $294809000 6.7232% 456.81 6 $29480,000 6.7232% 456.81 7 $2,4809000 6.7232% 456.81 8 $2,655,000 6.7611% 491.80 9 $296559000 6.7605% 491.76 10 $2,700,000 6.7873% 502.07 11 $297009000 7.0266% 519.78 12 $29700,000 6.9854% 516.73 13 $29700,000 6.9854% 516.73 14 $2,700,000 6.98549 516.73 15 $2,700,000 7.2271% 534.61 16 $2,600,000 7.1872% 511.96 17 $2,500,000 6.7263% 460.70 18 $2,450,000 7.0549% 473.55 19 $2,400,000 7.0093% 460.88 20 $2,400,000 7.0093% 460.88 ' 21 $2,400,000 7.0093% 460.88 ' - 22 $29300,000 7.0174% 442.19 23 $2,0501000 6.9770% 391.86 24 $1,450,000 6.8050% 270.34 25 $19450,000 7.0546% 280.25 26 $1,475,000 7.0950% 286.71 27 $1,475,000 7.0950% 286.71 28 $1,475,000 7.09509 286.71 29 $2,075,000 7.1046% 403.89 30 $29575,000 7.0915% 500.29 31 $2,575,000 7.0211% 495.33 Total 0 Average rate for the Month of August = 6.74% 13,523.96 A r CITY OF SALINA, KANSAS Interest Earnings for June 1988 Hank: First Bank 8 Trust Co. Type of Investment: Money Market Mutual Fund Federated Master Trust Invested Overnight Interest Date Overnight Rate Earned JUNE 1 $1,770,000 6.4641% 313.47 2 $29170,000 6.4146% 381.36 3 $2,170,000 6.5005% 386.47 4 $29170,000 6.5005% 386.47 5 $2,170,000 6.5005% 386.47 6 $2,235,000 6.5246% 399.52 7 $2,290,000 6.5250% 409.38 8 $2,140,000 6.5299% 382.85 9 $2,140,000 6.5343% 383.10 10 $29140,000 6.5550% 384.32 11 $291409000 6.55509 384.32 12 $29140,000 6.5550% 384.32 13 $290539000 6.5883% 370.57 14 $299749000 6.5832% 536.40 15 $2,8399000 6.6150% 514.52 16 $29906,000 6.6247% 527.44 17 $2,964,000 6.6334% 538.67 18 $2,964,000 6.6334% 538.67 19 $299649000 6.6334% 538.67 20 $2,964,000 6.6351% 538.80 21 $29964,000 6.6351% 538.81 22 $19873,000 6.6503% 341.26 23 $1,778,000 6.6452% 323.70 24 $1,500,000 6.6689% 274.06 25 $1,500,000 6.6689% 274.06 26 $1,500,000 6.6689% 274.06 27 $1,500,000 6.6854% 274.74 28 $197009000 6.7010% 312.10 29 $19650,000 6.7452% 304.92 30 $19525,000 6.7701% 282.86 Total 11,886.36 Average rate for the Month of June = 6.60% 1 1 CITY OF SALINA, KANSAS Interest Earnings for July 1988 Dank: First Bank & Trust Co. Type of Investment: Money Market Mutual Fund Federated Master Trust Invested Overnight Interest Date Overnight Rate Earned JULY 1 $1,625,000 6.6851% 297.62 2 $1,625,000 6.6851% 297.62 3 $1,625,000 6.6851% 297.62 4 $1,625,000 6.6851% 297.62 5 $1,720,000 6.6901% 315.26 6 $1,765,000 6.7145% 324.69 7 $1,600,000 6.7347% 295.22 8 $1,600,000 6.7427% 295.57 9 $1,600,000 6.7427% 295.57 10 $1,600,000 6.7427% 295.57 11 $19625,000 6.7376% 299.96 12 $1,625,000 6.7537% 300.68 13 $1,625,000 6.7419% 300.15 14 $1,625,000 6.8125% 303.30 15 $3,075,000 6.8146% 574.10 16 $3,075,000 6.8146% 574.10 17 $3,075,000 6.8146% 574.10 18 $2,875,000 6.8541% 539.88 19 $2,950,000 6.8647% 554.81 20 $2,995,000 6.8550% 562.48 21 $1,995,000 6.8949% 376.86 22 $2,145,000 6.9354% 407.57 23 $2,145,000 6.9354% 407.57 24 $2,145,000 6.9354% 407.57 25 $2,129,000 6.9351% 404.52 26 $2,019,000 6.9448% 384.15 27 $1,869,000 6.9273% 354.72 28 $1,8699000 6.95539 356.15 29 $1,889,000 6.9732% 360.89 30 $1,889,000 6.97329 360.89 31 $19889,000 6.9732% 360.89 Total 11,777.73 Average rate for the Month of July = 6.82% I V CITY OF SALINA, KANSAS Interest Earnings for August 1988 Hank: First Bank 8 Trust Co. Type of Investment: Money Market Mutual Fund Federated Master Trust Invested Overnight Interest Date Overnight Rate Earned AUG 1 $20039,000 6.92549 386.88 2 $2,109,000 6.9541% 401.81 3 $2,200,000 6.9641% 419.75 4 $2,300,000 6.9604% 438.60 5 $2,480,000 7.0009% 475.68 6 $29480,000 7.0009% 475.68 7 $2,4809000 7.0009% 475.68 8 $2,655,000 6.9951% 508.82 9 $2,655,000 6.9854% 508.11 10 $2,7009000 7.0140% 518.84 11 $2,700,000 7.1049% 525.57 12 $2,700,000 7.1609% 529.71 13 $2,700,000 7.1609% 529.71 14 $2,700,000 7.1609% 529.71 15 $2,7009000 7.2001% 532.61 16 $2,600,000 7.1650% 510.38 17 $2,500,000 7.1450% 489.38 18 $2,450,000 7.1741% 481.55 19 $2,4009000 7.2041% 473.70 20 $2,400,000 7.2041% 473.70 21 $2,400,000 7.2041% 473.70 22 $2,300,000 7.2350% 455.90 23 $2,050,000 7.2347% 406.33 24 $1,450,000 7.2250% 287.02 25 $1,450,000 7.3250% 290.99 26 $1,475,000 7.3530% 297.14 27 $1,475,000 7.35309 297.14 28 $1,475,000 7.3530% 297.14 29 $2,075,000 7.3850% 419.83 30 $2,575,000 7.3655% 519.62 31 $295759000 7.3564% 518.98 Total 13,949.69 Average rate for the Month of August = 7.16% u CITY OF SALINA, KANSAS Interest Earnings for June 1988 Bank: First Bank R Trust Co. Type of Investment: Overnight Funds - Unsecured Total 12,581.36 Average rate for the Month of June = 6.99% P Invested Overnight Interest Date Overnight Rate Earned JUNE 1 $197709000 6.9230% 335.72 2 $2,170,000 6.8480% 407.13 3 $2,170,000 6.8270% 405.88 4 $2,170,000 6.8270% 405.88 5 $2,1709000 6.8270% 405.88 6 $2,235,000 6.9550% 425.87 7 $2,290,000¢ 9010% 432.97 8 $2,1409000 6.8760% 403.14 9 $2,140,000 6.7930% 398.27 10 $29140,000 6.80809 399.15 11 $2,1409000 6.8080% 399.15 12 $29140,000 6.8080% 399.15 13 $2,053,000 6.9920% 393.28 14 $2,974,000 6.8670% 559.52 15 $2,839,000 7.1370% 555.12 16 $29906,000 6.9990% 557.24 17 $29964,000 7.0470% 572.26 18 $2,964,000 7.0470% 572.26 19 $29964,000 7.0470% 572.26 20 $2,964,000 7.0680% 573.96 21 $2,964,000 7.0470% 572.26 22 $1,873,000 6.9360% 355.92 23 $1,778,000 7.0270% 342.30 24 $1,500,000 7.0690% 290.51 25 $1,500,000 7.0690% 290.51 26 $1,500,000 7.0690% 290.51 27 $19500,000 7.0890% 291.33 28 $1,700,000 7.1760% 334.22 29 $1,650,000 7.2520% 327.83 30 $1,525,000 7.4650% 311.89 Total 12,581.36 Average rate for the Month of June = 6.99% P R CITY OF SALINA, KANSAS Interest Earnings for July 1988 Bank: First Bank R Trust Co. Type of Investment: Overnight Funds - Unsecured Total. 12,527.64 Average rate for the Month of July 6.50% Invested Overnight Interest Date Overnight Rate Earned JULY 1 $1,625,000 7.21509 321.22 2 $1,6259000 7.2150% 321.22 3 $19625,000 7.2150% 321.22 4 $196259000 7.2150% 321.22 5 $1,720,000 7.2620% 342.21 6 $1,7659000 7.1630% 346.38 7 $1,600,000 7.1450% 313.21 a $1,600,000 7.0410% 308.65 9 $1,600,000 7.0410% 308.65 10 $1,600,000 7.0410% 308.65 11 $1,6259000 7.0550% 314.09 12 $1,625,000 6.9960% 311.47 13 $196259000 6.9720% 310.40 14 $19625,000 7.3260% 326.16 15 $39075,000 7.3690% 620.81 16 $39075,000 7.3690% 620.81 17 $3,075,000 7.3690% 620.81 18 $298759000 7.3960% 582.56 19 $299509000 7.2850% 588.79 20 $2,9959000 7.2150% 592.03 21 $19995,000 7.3730% 402.99 22 $2,145,000 7.4090% 435.41 23 $2,1459000 7.4090% 435.41 24 $2,145,000 7.4090% 435.41 25 $2,129,000 7.3840% 430.70 26 $2,019,000 7.3330% 405.63 27 $1,869,000 7.0890% 363.00 28 $19869,000 7.3740% 377.59 29 $19,889,000 7.3490% 380.34 30 $1,889,000 7.3490% 380.34 31 $11889,000 7.3490% 380.34 Total. 12,527.64 Average rate for the Month of July 6.50% 1� CITY OF SALINA, KANSAS Interest Earnings for August 1988 Bank:' First Bank & Trust Co. Type of Investment: Overnight Funds - Unsecured Tota1 Overnight Rate 7.4180% 7.3230% 7.2100% 7.2700% 7.2430% 7.2430% 7.2430% 7.2690% 7.5600% 7.3000% 7.6490% 7.6390% 7.6390% 7.8900% 7.6880% 7.5710% 7.6470% 7.6130% 7.6130% 7.6130% 7.5470% 7.3420% 7.2600% 7.2600% 7.6940% 7.6600% 7.6600% 7.6600% 7.6640% 7.5810% 7.6380% Average rate for the Month of August = 7.50 Interest Earned 414.39 423.13 434.58 458.11 492.13 492.13 492.13 528.75 549.91 540.00 565.82 565.08 565.08 583.64 568.70 539.30 523.77 511.01 500.58 500.58 496.24 462.65 407.75 288.41 305.65 309.55 309.55 309.55 435.69 534.82 538.85 14,647.51 Invested Date Overnight AUG 1 $2,0399000 2 $2,1099000 3 $2,200,000 4 $2,300,000 5 $2,480,000 6, $2,480,000 7 $2,480,000 8 $2,655,000 9 $296559000 10 $2,700,000 11 $2,7009000 12 $2,700,000 13 $2,700,000 14 $2,7009000 15 $2,700,000 16 $2,600,000 17 $2,500,000 18 $2,450,000 19 $2,400,000 20 $2,400,000 21 $2,400,000 22 $2,300,000' 23 $2,0509000 24 $1,450,000 25 $1,450,000 26 $1,475,000 27 $1,475,000 28 $1,475,000 29 $2,075,000 30 $2,575,000 31 $2,575,000 Tota1 Overnight Rate 7.4180% 7.3230% 7.2100% 7.2700% 7.2430% 7.2430% 7.2430% 7.2690% 7.5600% 7.3000% 7.6490% 7.6390% 7.6390% 7.8900% 7.6880% 7.5710% 7.6470% 7.6130% 7.6130% 7.6130% 7.5470% 7.3420% 7.2600% 7.2600% 7.6940% 7.6600% 7.6600% 7.6600% 7.6640% 7.5810% 7.6380% Average rate for the Month of August = 7.50 Interest Earned 414.39 423.13 434.58 458.11 492.13 492.13 492.13 528.75 549.91 540.00 565.82 565.08 565.08 583.64 568.70 539.30 523.77 511.01 500.58 500.58 496.24 462.65 407.75 288.41 305.65 309.55 309.55 309.55 435.69 534.82 538.85 14,647.51 R 0 0 0 u u ro M p u W d F q P. .a O rn n ul 0« u1 L O V1 O O O uW00 n 1 N In %0 Ln O d Orn N U n O 00 O N 0 O M V1 .r '+ O U Ili N r+ W M O ' ah K iG 1t O d 00 O% %a N .r it K K eo m O 00 n.r d w0 0 O'+a ON O 710 a�kON u � 41 N P4 b U P. .a O rn n ul it u1 L O V1 O O O uW00 n 1 MO M d Orn N U n 700 O Ino N V1 U as coo '+ a% rl Ili N r+ W M O ' ah K iG 1t O d 00 O% %a N .r O O O eo wgo O '+ a% Go 00 d O dG� In a1 ON 1 u u � +"P- H .-1 N P. .a O rn n ul it u1 L O V1 O O O uW00 n 1 MO M + O O Orn N U n 700 O Ino N V1 01 Ln ti O W10+ OOO N r+ W M O ' ah O O d 00 O% %a N .r u eo wgo 0�0O) o d O dO P. .a O rn n ul O V1 %0 In Vl 00 M O "MW + O O Orn L40 O 000 .. .. U M Ln ti O .ti d K eo wgo 0�0O) o d O dO a+ u u � P. .a O rn n ul In Vl 00 M O + O O ti O d eo d o s+ u u � P4 b U b d d F u W M M u d Mp d �O 7 r�j4 4W tr �+ O 0 a p p d F+ ++ a N -H F v o: d03 m H d tl V1 N d w O u w m F M 4� q O i u T u u G 7 0 o Cl) C p 71 w u d H 0 a 6 E W ti w m U F O q W 1L K `Ihe 11�t onal `Bank of�lMMCa gins, K»nw5 $ECONO CENTUM/SINCE IBHI TELEPHONE (913) 8250511 • POST OFFICE BOX 560 . SALINA, KANSAS 6 74 02-0560 • DOWNTOWN BANK -SANTA FE AND IRON , GOLD STAR FACILITY -NINTH AND MAGNOLIA Mr. Bob Biles City Clerk 6 Director of Finance City of Salina P.O. Box 736 Salina, KS 67402-0736 Dear Bob: October 17, 1988 I am glad to hear you are studying our proposal for the demand deposit account for the City of Salina. Enclosed you will find the service charges for June, July, and August as well as the estimated service charge for the information you provided in your letter of 9-20-88. You will note that we estimated the number of checks in town and out of town for each month - June, July and August - to be the same as that of the information you provided earlier. We also estimated that you average 100 deposits per month. As we discussed by phone, the earnings credit is paid as a rebate against the service charge for any funds left on deposit with the bank. Therefore, this service charge would not be an actual fee unless your balances were zero for each day of the month. If you should have questions or need additional information, please give me a call. We look forward to hearing the outcome of your study. Sincerely yours, Rex Matlack Vice President 9hee%ahna caums SECOND CEN1Ua//SINCE iB� TELEPHONE (913) 825-0511 . POST OFFICE BOX 560 . SALINA, KANSAS 67402-0560 , DOWNTOWN BANK—SANTA FE AND IRON . GOLD STAR FACILITY—NINTH AND MAGNOLIA October 12, 1988 Mr. Bob Biles City Clerk & Director of Finance City of Salina Room 206, 300 W. Ash Salina, KS 67401 Dear Bob: We certainly appreciate the opportunity to look at the City of Salina's demand deposit and investment account relationship. After considerable discussion and study of your current situation, we would present the follow- ing alternatives to the City of Salina. We could provide a non-interest bearing checking account provided that the City of Salina maintains an average balance of $225,000. It should be stressed that this balance require- ment is an average balance as opposed to a minimum balance and therefore, there will be no service fee as long as the average balance is maintained, even though on a given day the balance may fall below the $225,000 figure. We calculate the $225,000 after our analysis of the information you provided me in that the City writes approximately 2,000 checks per month as you deposit 12,900 items per month. Of the items deposited, you mention that 90% are originated within the city limits while 9% are within the State of Kansas. Therefore, we assumed that your deposits are largely collected funds. Enclosed for your use is a copy of our service fee brochure which outlines the cost associated with handling the account and includes the charges used in developing the target balance. The bank can also offer a cash management account whereby we monitor your checking account balance and transfer in and out of the investment account to maintain a target balance of $225,000 in the checking account. The cash management service offers two investment options to the City. We can invest your funds in either a National Bank of America Money Market account or a Federated Mutual Fund. I have presented interest calculation figures for you as well as interest rates for each option on the attached sheets. The Federated Mutual Fund, "Trust for U.S. Treasury Obligations", which we offer is a $1 fund of Treasury securities which can be increased or decreased on a daily basis. You will find enclosed a prospectus on the Trust for U.S. Treasury Obligations Mutual Fund and a current list of assets held by the fund. Mr. Bob Biles October 13, 1988 Page Two We also calculated an adjusted daily overnight investment position based on the $225,000 target balance for your checking account and have presented the investment amounts and overnight earnings for the adjusted balance as en- closed. You will note as you look at these adjusted investment balances, that we would be able to invest an average of approximately $145,000 per day in addition to your current investment position. Again, we were pleased to have the opportunity to make this proposal for the City of Salina's account relationship and would look forward to serving the City in this capacity. If you should have questions or comments, please let me know. I would look forward to visiting with you. Sincerely yours, Rex Matlack Vice President RM/cl Encl r v Y National Bank of America w BALANCES AS PRESENTED BY THE CITY INVESTED IN T°`< NBA MONEY MARKET ACCOUNT CITY OF SALINA, KANSAS Interest Earnings for June 1988 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED June 1 1,770,000 5.7500 278.84 2 2,170,000 5.7500 341.85 3 2,170,000 5.7500 341.85 4 2,170,000 5.7500 341.85 5 2,170,000 5.7500 341.85 6 2,235,000 5.7500 352.09 7 2,290,000 5.7500 360.75 8 2,140,000 5.7500 337.12 9 2,140,000 5.7500 337.12 10 2,140,000 5.7500 337.12 11 2,140,000 5.7500 337.12 12 2,140,000 5.7500 337.12 13 2,053,000 5.7500 323.42 14 2,974,000 5.7500 468.51 15 2,839,000 5.7500 447.24 16 2,906,000 5.7500 457.79 17 2,964,000 5.7500 466.93 18 2,964,000 5.7500 466.93 19 2,964,000 5.7500 466.93 20 2,964,000 5.7500 466.93 21 2,964,000 5.7500 466.93 22 1,873,000 5.7500 295.06 23 1,778,000 5.7500 280.10 24 1,500,000 5.7500 236.30 25 1,500,000 5.7500 236.30 26 1,500,000 5.7500 236.30 27 1,500,000 5.7500 236.30 28 1,700,000 5.7500 267.81 29 1,650,000 5.7500 259.93 30 1,525,000 5.7500 240.24 TOTAL 10,364.63 Monthly Average 2,193,100 5.7500 National Bank of America BALANCES AS PRESENTED BY THE CITY INVESTED IN NBA MONEY MARKET ACCOUNT CITY OF SALINA, KANSAS Interest Earnings for July 1988 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED July 1 1,625,000 5.7500 255.99 2 1,625,000 5.7500 255.99 3 1,625,000 5.7500 255.99 4 1,625,000 5.7500 255.99 5 1,720,000 5.7500 270.96 6 1,765,000 5.7500 278.05 7 1,600,000 5.7500 252.05 8 1,600,000 5.7500 252.05 9 1,600,000 5.7500 252.05 10 1,600,000 5.7500 252.05 11 1,625,000 5.7500 255.99 12 1,625,000 5.7500 255.99 13 1,625,000 5.7500 255.99 14 1,625,000 5.7500 255.99 15 3,075,000 5.7500 484.42 16 3,075,000 5.7500 484.42 17 3,075,000 5.7500 484.42 18 2,875,000 5.7500 452.91 19 2,950,000 5.7500 464.73 20 2,995,000 5.7500 471.82 21 1,995,000 5.7500 314.28 22 2,145,000 5.7500 337.91 23 2,145,000 5.7500 337.91 24 2,145,000 5.7500 337.91 25 2,129,000 5.7500 335.39 26 2,019,000 5.8750 324.98 27 1,869,000 5.8750 300.83 28 1,869,000 5.8750 300.83 29 1,889,000 5.8750 304.05 30 1,889,000 5.8750 304.05 31 1,889,000 5.8750 304.05 TOTAL 9,950.04 Monthly Average 2,029,452 5.7742 National Bank of America BALANCES AS PRESENTED BY THE CITY INVESTED IN NBA MONEY MARKET ACCOUNT CITY OF SALINA, KANSAS Interest Earnings for Aug 1988 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED Aug 1 2,039,000 5.8750 328.20 2 2,109,000 5.8750 339.46 3 2,200,000 5.8750 354.11 4 2,300,000 5.8750 370.21 5 2,480,000 5.8750 399.18 6 2,480,000 5.8750 399.18 7 2,480,000 5.8750 399.18 8 2,655,000 5.8750 427.35 9 2,655,000 5.8750 427.35 10 2,700,000 5.8750 434.59 11 2,700,000 5.8750 434.59 12 2,700,000 5.8750 434.59 13 2,700,000 5.8750 434.59 14 2,700,000 5.8750 434.59 15 2,700,000 5.8750 434.59 16 2,600,000 5.8750 418.49 17 2,500,000 5.8750 402.40 18 2,450,000 5.8750 394.35 19 2,400,000 5.8750 386.30 20 2,400,000 5.8750 386.30 21 2,400,000 5.8750 386.30 22 2,300,000 5.8750 370.21 23 2,050,000 5.8750 329.97 24 1,450,000 5.8750 233.39 25 1,450,000 5.8750 233.39 26 1,475,000 5.8750 237.41 27 1,475,000 5.8750 237.41 28 1,475,000 5.8750 237.41 29 2,075,000 5.8750 333.99 30 2,575,000 5.8750 414.47 31 2,575,000 5.8750 414.47 TOTAL 11,468.02 Monthly Average 2,298,323 5.8750 National Bank of America BALANCES AS PRESENTED BY THE CITY INVESTED IN TRUST FOR U.S. TREASURY OBLIGATIONS CITY OF SALINA, KANSAS Interest Earnings for June 1988 DATE INVESTED OVERNIGHT OVERNIGHT RATE INTEREST EARNED June 1 1,770,000 6.0050 291.20 2 2,170,000 6.0551 359.99 3 2,170,000 6.0935 362.27 4 2,170,000 6.0935 362.27 5 2,170,000 6.0935 362.27 6 2,235,000 6.0806 372.33 7 2,290,000 6.1450 385.54 8 2,140,000 6.1050 363.80 9 2,140,000 6.1950 363.21 10 2,140,000 6.1908 362.97 11 2,140,000 6.1908 362.97 12 2,140,000 6.1908 362.97 13 2,053,000 6.2055 349.04 14 2,974,000 6.2155 506.44 15 2,839,000 6.2669 487.44 16 2,906,000 6.2664 498.91 17 2,964,000 6.3338 514.34 18 2,964,000 6.3338 514.34 19 2,964,000 6.3338 514.34 20 2,964,000 6.3750 517.68 21 2,964,000 6.3876 518.87 22 1,873,000 6.3133 323.97 23 1,778,000 6.3376 308.72 24 1,500,000 6.3463 260.81 25 1,500,000 6.3463 260.81 26 1,500,000 6.3463 260.81 27 1,500,000 6.3481 260.88 28 1,700,000 6.3944 297.82 29 1,650,000 6.4950 293.61 30 1,525,000 6.6046 275.95 TOTAL 11,276.57 Monthly Average 2,193,100 6.2597 National Bank of America BALANCES AS PRESENTED BY THE CITY INVESTED IN TRUST FOR U.S. TREASURY OBLIGATIONS CITY OF SALINA, KANSAS Interest Earnings for July 1988 Monthly Average 2,029,452 6.4612 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED July 1 1,625,000 6.3644 283.35 2 1,625,000 6.3644 283.35 3 1,625,000 6.3644 283.35 4 1,625,000 6.3644 283.35 5 1,720,000 6.3493 299.20 6 1,765,000 6.3550 307.30 7 1,600,000 6.3684 279.16 8 1,600,000 6.3539 278.53 9 1,600,000 6.3539 278.53 10 1,600,000 6.3539 278.53 11 1,625,000 6.3769 283.90 12 1,625,000 6.3350 282.04 13 1,625,000 6.3050 280.70 14 1,625,000 6.4144 285.57 15 3,075,000 6.5600 552.66 16 3,075,000 6.5600 552.66 17 3,075,000 6.5600 552.66 18 2,875,000 6.5650 517.11 19 2,950,000 6.5450 528.98 20 2,995,000 6.4650 530.48 21 1,995,000 6.4950 355.00 22 2,145,000 6.5725 386.25 23 2,145,000 6.5725 386.25 24 2,145,000 6.5725 386.25 25 2,129,000 6.5700 383.22 26 2,019,000 6.5677 363.29 27 1,869,000 6.4272 329.11 28 1,869,000 6.5744 336.65 29 1,889,000 6.5552 339.25 30 1,889,000 6.5552 339.25 31 1,889,000 6.5552 339.25 TOTAL 11,165.18 Monthly Average 2,029,452 6.4612 National Bank of America BALANCES AS PRESENTED BY THE CITY INVESTED IN TRUST FOR U.S. TREASURY OBLIGATIONS CITY OF SALINA, KANSAS Interest Earnings for Aug 1988 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED Aug 1 2,039,000 6.4550 360.60 2 2,109,000 6.4650 373.55 3 2,200,000 6.4608 389.42 4 2,300,000 6.4650 407.38 5 2,480,000 6.4732 439.82 6 2,480,000 6.4732 439.82 7 2,480,000 6.4732 439.82 8 2,655,000 6.5111 473.62 9 2,655,000 6.5105 473.57 10 2,700,000 6.5373 483.58 11 2,700,000 6.7766 501.28 12 2,700,000 6.7354 498.24 13 2,700,000 6.7354 498.24 14 2,700,000 6.7354 498.24 15 2,700,000 6.9771 516.11 16 2,600,000 6.9372 494.16 17 2,500,000 6.7683 463.58 18 2,450,000 6.8049 456.77 19 2,400,000 6.7593 444.45 20 2,400,000 6.7593 444.45 21 2,400,000 6.7593 444.45 22 2,300,000 6.7674 426.44 23 2,050,000 6.7270 377.82 24 1,450,000 6.5550 260.40 25 1,450,000 6.8046 270.32 26 1,475,000 6.8450 276.61 27 1,475,000 6.8450 276.61 28 1,475,000 6.8450 276.61 29 2,075,000 6.8546 389.68 30 2,575,000 6.8415 482.65 31 2,575,000 6.7711 477.69 TOTAL 13,055.98 Monthly Average 2,298,323 6.6912 0 TRUST FOR U.S. TREASURY OBLIGATIONS PORTFOLIO AS OF 10/03/88 SECURITY NAME UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES, TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE UNITED STATES TREASURY NOTE U.S. TREASURY OBLIGATIONS BOUGHT UNDER REPURCHASE AGREEMENT TOTAL FACE VALUE FUND NUMBER FEDERATED SECURITIES CORP. Distributor DUE DATE 10/31/88 11/15/88 11/15/88 11/15/88 11/15/88 11/15/88 11/15/88 11/15/88 11/15/88 11/15/88 11/15/88 11/30/88 11/30/88 11/30/88 11/30/88 11/30/88 11/30/88 12/31/88 12/31/88 01/31/89 01/31/89 02/15/89 02/15/89 02/15/89 02/28/89 02/28/89 02/28/89 05/15/89 05/15/89 05/15/89 05/15/89 VARIOUS e".�w Io %r/et FEDERATED INVESTORS TOWER PITTSBURGH, PA 15222-3779 YIELD 59 ON YOUR EDGE TERMINAL 6.90% 6.67 6.68 6.74 6.77 6.80 6.90 7.01 7.07 7.13 7.15 6.71 6.88 7.10 7.12 7.14 7.20 7.26 7.30 7.38 7.43 7.51 7.55 7.57 7.81 8.09 8.11 7.99 8.04 8.09 8.13 7.95 FACE VALUE (000) 5,000 50,000 35,000 25,000 20,000 25,000 10,000 25,000 25,000 25,000 5,000 30,000 60,000 25,000 10,000 30,000 15,000 25,000 25,000 15,000 10,000 45,000 25,000 15,000 75,000 25,000 20,000 25,000 25,000 10,000 40,000 3,978,545 $ 4,778,545 For more complete information on the fund, including charges and expenses, send for a current prospectus or call 800-245-5040; in PA, 800-792-2340. Read the prospectus carefully before investing or sending money. Federated Securities Corp., Distributor, Federated Investors Tower, Pittsburgh, PA 15222-3779. Average Net Yield to Shareholders for the seven day period ended October 3, 1988 - 7.58%* Average Maturity - 24 Days * This is the net annualized yield for seven days ending October 3, 1988 based on the average daily income dividend of $.000207579 and the net asset value of $1.00 per share. This yield, therefore, is subject to change and should not be construed as indicative of future results. TRUST FOR U.S.,TREASURY OBLIGATIONS MONTHLY REPORT OF INCOME The following daily dividends reflect the income earned on ($1.00) each day. JULY 1988 AUGUST 1988 SEPTEMBER 1988 OCTOBER 1988 1 $.000188065 1 $.000190549 1 $.000199921 1 $.000211678 2 .000188065 2 .000190822 2 .000206435 2 .000211678 3 .000188065 3 .000190706 3 .000206435 3 .000204242 4 .000188065 4 .000190822 4 .000206435 4 5 .000187653 5 .000191046 5 .000206435 5 6 .000187807 6 .000191046 6 .000201275 6 7 .000188176 7 .000191046 7 .000197365 7 8 .000187778 8 .000192085 8 .000201501 8 9 .000187778 9 .000192068 9 .000203584 9 10 .000187778 10 .000192803 10 .000203584 10 11 .000188408 11 .000199360 11 .000203584 11 12 .000187260 12 .000198229 12 .000202789 12 13 .000186438 13 .000198229 13 .000202428 13 14 .000189435 14 .000198229 14 .000202975 14 15 .000193425 15 .000204853 15 .000204881 15 16 .000193425 16 .000203758 16 .000203665 16 17 .000193425 17 .000199131 17 .000203665 17 18 .000193562 18 .000200135 18 .000203665 18 19 .000193014 19 .000198884 19 .000203281 19 20 .000190822 20 .000198884 20 .000201062 20 21 .000191644 21 .000198884 21 .000203503 21 22 .000193768 22 .000199106 22 .000203971 22 23 .000193768 23 .000198001 23 .000204205 23 24 .000193768 24 .000193289 24 .000204205 24 25 .000193698 25 .000200125 25 .000204205 25 26 .000193635 26 .000201232 26 .000204473 26 27 .000189785 27 .000201232 27 .000205065 27 28 .000193820 28 .000201232 28 .000204322 28 29 .000193294 29 .000201496 29 .000204393 29 30 .000193294 30 .000201137 30 .000211678 30 31 .000193294 31 .000199209 31 6.96% 6.99% 7.45% 7.64% 31 Days 31 Days 30 Days 3 Days Each monthly annualized yield is based on the income dividends listed above, and the net asset value of $1.00 per share on each day. This yield, therefore, is subject to change and should not be construed as indicative of future results. National Bank of America ADJUSTED BALANCES INVESTED IN NBA MONEY MARKET ACCOUNT CITY OF SALINA, KANSAS Interest Earnings for June 1988 Monthly Average 2,260,433 5.7500 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED June 1 2,815,000 5.7500 443.46 2 2,625,000 5.7500 413.53 3 2,230,000 5.7500 351.30 4 2,230,000 5.7500 351.30 5 2,230,000 5.7500 351.30 6 2,380,000 5.7500 374.93 7 2,360,000 5.7500 371.78 8 1,975,000 5.7500 311.13 9 2,115,000 5.7500 333.18 10 2,130,000 5.7500 335.55 11 2,130,000 5.7500 335.55 12 2,130,000 5.7500 335.55 13 1,978,000 5.7500 311.60 14 2,934,000 5.7500 462.21 15 2,774,000 5.7500 437.00 16 3,026,000 5.7500 476.70 17 3,019,000 5.7500 475.60 18 3,019,000 5.7500 475.60 19 3,019,000 5.7500 475.60 20 3,054,000 5.7500 481.11 21 3,004,000 5.7500 473.23 22 1,303,000 5.7500 205.27 23 1,723,000 5.7500 271.43 24 1,530,000 5.7500 241.03 25 1,530,000 5.7500 241.03 26 1,530,000 5.7500 241.03 27 1,820,000 5.7500 286.71 28 1,975,000 5.7500 311.13 29 1,600,000 5.7500 252.05 30 1,625,000 5.7500 255.99 TOTAL 10,682.88 Monthly Average 2,260,433 5.7500 National Bank of America ADJUSTED BALANCES INVESTED IN NBA MONEY MARKET ACCOUNT CITY OF SALINA, KANSAS Interest Earnings for July 1988 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED July 1 1,810,000 5.7500 285.14 2 1,810,000 5.7500 285.14 3 1,810,000 5.7500 285.14 4 1,810,000 5.7500 285.14 5 1,890,000 5.7500 297.74 6 1,845,000 5.7500 290.65 7 1,470,000 5.7500 231.58 8 1,620,000 5.7500 255.21 9 1,620,000 5.7500 255.21 10 1,620,000 5.7500 255.21 11 1,675,000 5.7500 263.87 12 1,580,000 5.7500 248.90 13 1,805,000 5.7500 284.35 14 3,185,000 5.7500 501.75 15 4,555,000 5.7500 717.57 16 3,180,000 5.7500 500.96 17 3,180,000 5.7500 500.96 18 2,980,000 5.7500 469.45 19 3,065,000 5.7500 482.84 20 3,080,000 5.7500 485.21 21 2,330,000 5.7500 367.05 22 2,305,000 5.7500 363.12 23 2,305,000 5.7500 363.12 24 2,305,000 5.7500 363.12 25 2,559,000 5.7500 372.51 26 1,914,000 5.8750 308.08 27 1,689,000 5.8750 271.86 28 2,054,000 5.8750 330.61 29 2,114,000 5.8750 340.27 30 2,114,000 5.8750 340.27 31 2,114,000 5.8750 340.27 TOTAL 10,942.30 Monthly Average 2,238,484 5.7742 National Bank of America ADJUSTED BALANCES INVESTED IN NBA MONEY MARKET ACCOUNT CITY OF SALINA, KANSAS Interest Earnings for Aug 1988 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED Aug 1 2,269,000 5.8750 365.22 2 2,294,000 5.8750 369.24 3 2,410,000 5.8750 387.91 4 2,815,000 5.8750 453.10 5 2,930,000 5.8750 471.61 6 2,930,000 5.8750 471.61 7 2,930,000 5.8750 471.61 8 2,855,000 5.8750 459.54 9 2,670,000 5.8750 429.76 10 2,760,000 5.8750 444.25 11 2,635,000 5.8750 424.13 12 2,680,000 5.8750 431.37 13 2,680,000 5.8750 431.37 14 2,680,000 5.8750 431.37 15 2,715,000 5.8750 437.00 16 1,840,000 5.8750 296.16 17 2,385,000 5.8750 383.89 18 2,465,000 5.8750 396.76 19 2,310,000 5.8750 371.82 20 2,310,000 5.8750 371.82 21 2,310,000 5.8750 371.82 22 1,515,000 5.8750 243.85 23 1,795,000 5.8750 288.92 24 1,430,000 5.8750 230.17 25 2,030,000 5.8750 326.75 26 2,380,000 5.8750 383.08 27 2,380,000 5.8750 383.08 28 2,380,000 5.8750 383.08 29 2,970,000 5.8750 478.05 30 3,080,000 5.8750 495.75 31 2,400,000 5.8750 386.30 TOTAL 12,270.39 Monthly Average 2,459,129 5.8750 National Bank of America ADJUSTED BALANCES INVESTED IN TRUST FOR U.S. TREASURY OBLIGATIONS CITY OF SALINA, KANSAS Interest Earnings for June 1988 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED June 1 2,815,000 6.0050 463.13 2 2,625,000 6.0551 435.47 3 2,230,000 6.0935 372.29 4 2,230,000 6.0935 372.29 5 2,230,000 6.0935 372.29 6 2,380,000 6.0806 396.49 7 2,360,000 6.1450 397.32 8 1,975,000 6.2050 335.75 9 2,115,000 6.1950 358.97 10 2,130,000 6.1908 361.27 11 2,130,000 6.1908 361.27 12 2,130,000 6.1908 361.27 13 1,978,000 6.2055 336.29 14 2,934,000 6.2155 499.62 15 2,774,000 6.2669 476.28 16 3,026,000 6.2664 519.51 17 3,019,000 6.3338 523.88 18 3,019,000 6.3338 523.88 19 3,019,000 6.3338 523.88 20 3,054,000 6.3750 533.40 21 3,004,000 6.3876 525.87 22 1,303,000 6.3133 225.38 23 1,723,000 6.3376 299.17 24 1,530,000 6.3463 266.02 25 1,530,000 6.3463 266.02 26 1,530,000 6.3463 266.02 27 1,820,000 6.3481 316.54 28 1,975,000 6.3944 346.00 29 1,600,000 6.4950 284.71 30 1,625,000 6.6046 294.04 TOTAL 11,614.32 Monthly Average 2,260,433 6.2597 National Bank of America ADJUSTED BALANCES INVESTED IN TRUST FOR U.S. TREASURY OBLIGATIONS CITY OF SALINA, KANSAS Interest Earnings for July 1988 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED July 1 1,810,000 6.3644 315.60 2 1,810,000 6.3644 315.60 3 1,810,000 6.3644 315.60 4 1,810,000 6.3644 315.60 5 1,890,000 6.3493 328.77 6 1,845,000 6.3550 321.23 7 1,470,000 6.3684 256.48 8 1,620,000 6.3539 282.01 9 1,620,000 6.3539 282.01 10 1,620,000 6.3539 282.01 11 1,675,000 6.3769 292.64 12 1,580,000 6.3350 274.23 13 1,805,000 6.3050 311.80 14 3,185,000 6.4144 559.72 15 4,555,000 6.5600 818.65 16 3,180,000 6.5600 571.53 17 3,180,000 6.5600 571.53 18 2,980,000 6.5650 535.99 19 3,065,000 6.5450 549.60 20 3,080,000 6.4650 545.54 21 2,330,000 6.5950 414.61 22 2,305,000 6.5725 415.06 23 2,305,000 6.5725 415.06 24 2,305,000 6.5725 415.06 25 2,559,000 6.5700 460.62 26 1,914,000 6.5677 344.40 27 1,689,000 6.4272 297.41 28 2,054,000 6.5744 369.97 29 2,114,000 6.5552 379.66 30 2,114,000 6.5552 379.66 31 2,114,000 6.5552 379.66 TOTAL 12,317.31 Monthly Average 2,238,484 6.4612 National Bank of America ADJUSTED BALANCES INVESTED IN TRUST FOR U.S. TREASURY OBLIGATIONS CITY OF SALINA, KANSAS Interest Earnings for Aug 1988 INVESTED OVERNIGHT INTEREST DATE OVERNIGHT RATE EARNED Aug 1 2,269,000 6.4550 401.27 2 2,294,000 6.4650 406.32 3 2,410,000 6.4608 426.59 4 2,815,000 6.4650 498.60 5 2,930,000 6.4732 519.63 6 2,930,000 6.4732 519.63 7 2,930,000 6.4732 519.63 8 2,855,000 6.5111 509.29 9 2,670,000 6.5105 476.25 10 2,760,000 6.5373 494.33 11 2,635,000 6.7766 489.21 12 2,680,000 6.7354 494.54 13 2,680,000 6.7354 494.54 14 2,680,000 6.7354 494.54 15 2,715,000 6.9771 518.98 16 1,840,000 6.9372 349.71 17 2,385,000 6.7683 442.26 18 2,465,000 6.8049 459.56 19 2,310,000 6.7593 427.78 20 2,310,000 6.7593 427.78 21 2,310,000 6.7593 427.78 22 1,515,000 6.7674 280.89 23 1,795,000 6.7270 330.82 24 1,430,000 6.5550 256.81 25 2,030,000 6.8046 378.45 26 2,380,000 6.8450 446.33 27 2,380,000 6.8450 446.33 28 2,380,000 6.8450 446.33 29 2,970,000 6.8546 557.76 30 3,080,000 6.8415 577.31 31 2,400,000 6.7711 445.22 TOTAL 13,964.47 Monthly Average 2,459,129 6.6912