Explanation
Background: This ordinance authorizes the Franklin County Municipal Court Clerk to enter into the third year of a three year contract with Huntington National Bank for the provision of bank and credit card services; authorizes the transfer of $20,000.00 within the Clerk's 2008 general fund budget; authorizes an expenditure of $41,517.00 from the Clerk's general fund; and to declare an emergency. ($41,517.00)
Ordinance 2167-2006 approved by Council on December 11, 2006 authorized the first year of a three year contract with Huntington National Bank for the provisions of bank and credit card services.
Fiscal Impact: Funds totaling $41,517.00 are available within the Clerk's 2008 general fund budget.
The Clerk's office has a savings in personnel of $20,000.00 as a result of unexpected staff turnovers (resulting in delays in hiring) and disabilities. The Clerk is requesting a transfer of said funds to banking services to help relieve the budget shortfall.
The Clerk's office receives earnings credit on funds deposited with the Huntington National Bank, which are used to offset the bank service fees. These credits are based on the current federal fund (interest) rate set by the Federal Reserve. The recent decline in this rate caused a decrease in these earnings credits causing a commensurate increase in the Court Clerk's banking service costs. Due to this increase, the 2008 appropriation needed for the third year of a three year contract with Huntington National Bank (commencing December 31, 2008), was used to cover the 2008 bank service shortfall; therefore, causing a shortfall in the 2009 budget.
Contract Modifications:
2006 - Ordinance 2167-2006 - $40,000.00
2007 - First Modification - Ordinance 1519-2007 - No Additional Funds Required
2008 - Second Modification - Ordinance 1007-2008 - $80,000.00
2008 - Third Modification - $41,517.00
Contract Compliance Number: 31-0966785
Expiration Date: 09/21/2009
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