2005 interest rate plac January 20, 2005
Mr. Rod Franz S NFIi,, `O' T-i�`��� ER
Finance Department BCIl\11
City of Salina MEMBER FDIC
300 West Ash \.uw.sunflowerbank.com
Salina KS 67401
As we discussed on the phone, I would like to recommend a modification to our current
interest rate plan being utilized by the City of Salina's primary investment account (010-
950-539-9). The modified interest rate plan is a tier-rate plan. The rate of interest paid
- would be based on the-dollars maintained in the-account. The modified plan is described
below.
The Index for the interest rate to be paid to the City will be the (week ending) Federal
Funds Effective Rate as quoted on the Federal Reserve Statistical Release (H15 report)
which can be found at www.federalreserve.gov/releases/h15/current. The interest rate will
be set weekly based on the prior weeks average index.
• The interest rate paid to the City will be tiered based on the daily Collected Balance
maintained by the City. The rate table is as follows:
Balances Balances Balances Balances Balances Balances Balances
under 250m to 500m to $1,000m $3,000m $5,000m $7,500m
Index 250m 500m 1,000m to 3,000m to 5,000m to 7,500m &over
Federal Funds effective rate -0.90 -0.85 -0.80 -0.65 -0.50 -0.35 -0.20
The Federal Funds effective rate for week ending January 14th was 2.25%. Depending
on the daily collected balance maintained by the City, the rate,of interest paid to the City
would be as follows:
Balances_ Balances Balances Balances Balances _Balances Balances
under 250m to 500m to $1,000m $3,000m $5,000m $7,500m
250m 500m 1,000m to 3,000m to 5,000m to 7,500m &over
Interest Rate Paid 1.35 1.40 1.45 1.60 1.75 1.90 2.05
Rod, I would like to implement this change in rate plan yet this month. On behalf of
Sunflower Bank, we appreciate the opportunity to provide financial services to the City.
Let me know if you have questions.
Respectfully,
Dennis Zimmerman Jr.
Vice President of Investments
Sunflower Bank, N.A.
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