Banking Services Agreement First AmendmentCity of Dubuque
City Council
CONSENT ITEMS # 4.
Copyrighted
November 17, 2025
ITEM TITLE: Banking Services Agreement First Amendment
SUMMARY: City Manager recommending City Council approve the
updated terms of the banking services agreement with UMB
Bank, n.a.
SUGGUESTED Receive and File; Approve
DISPOSITION:
ATTACHMENTS:
1. Banking Services Agreement First Amendment_MVM Memo
2. Banking Services Agreement First Amendment —Staff Memo_2025_11_13
3. GOVERNMENT BANKING - Cover Sheet (1)
Page 125 of 750
THE CITY OF
DUB E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Banking Services Agreement First Amendment
DATE: November 13, 2025
Dubuque
AI -America City
II
2007 • 2012 •2013
Chief Financial Officer Jennifer Larson seeks City Council approval for updated banking
agreement terms. The new interest rate of the 91-day T-Bill (avg) discount index plus 14
basis points is equivalent to the original agreement, ensuring equivalent interest earnings
for City funds. Going forward, UMB will continue to conduct a comparative analysis
monthly to ensure that the amount of interest being paid to the City of Dubuque remains at
a level equal to or better than the original structure.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
wh--
Michael C. Van Milligen
MCVM: bd/sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Brian DeMoss, Finance Manager
Page 126 of 750
THE CITY OF
DUB E
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Chief Financial Officer
SUBJECT: Banking Services Agreement First Amendment
DATE: November 13, 2025
INTRODUCTION
Dubuque
AI -America City
II
2007 • 2012 •2013
This memorandum seeks City Council's consideration and action on updated terms in the
banking services agreement with HTLF Bank, now UMB Bank, n.a., as outlined in the
attached form.
DISCUSSION
The attached form from UMB Bank updates the banking services agreement to use the
91-day T-Bill (avg) discount index plus a 14 basis points spread. Previously, it was the 13-
week T-Bill plus five basis points, which is unavailable at UMB. UMB determined an
equivalent rate of 91-day T-Bill (avg) discount plus 14 basis points, providing the
equivalent interest earnings on City funds. Going forward, UMB will continue to conduct a
comparative analysis monthly to ensure that the amount of interest being paid to the City
of Dubuque remains at a level equal to or better than the original structure.
ACTION
I recommend the City Council approve and sign the updated terms of the banking services
agreement with UMB Bank, n.a.
JML
Enclosures
Page 127 of 750
GOVERNMENT BANKING
TREASURY MANAGEMENT
COVER SHEET
Organization Name: CITY OF DUBUQUE
Contact Person: Jenny Larson
Address: 50 W. 13' St,
Email: Jlarson(a-)-cityofdubugue.org
Relationship Manager: KEVIN FINKE
Phone: 563-589-4322
City/State/Zip: Dubuque, IA, 52001
Treasury Management Officer: Alma Mrzljak
INDEX AND INTEREST RATE TO BE PAID:
91 Day T-Bill Avg plus 14 bps
DDA Account:
Type of Collateral to be used: US Treasury and Government Agency Securities
and other collateral allowable by Iowa State Statue
% of collateral to be used: 100%
Date of contract to begin: November 4, 2024
Contract Expiration Date: November 4, 2029
Instance: 869454 Pag%pgfafio
Updated Terms: Converting from HTLF, updating the index to 91-day T Bill (avg)
disc, plus 14bps spread, and re -documenting Government Banking Form (GBF). As
a result of the merger with UMB, the interest rate calculation has changed slightly
as noted in the Government Banking Form. With that said, a 90 day look back
comparative analysis was performed which resulted in the increase in the spread over the
index increasing from .05 to .14 basis points to be equal to or greater than the interest
associated with the original structure. Going forward, UMB will continue to
conduct this comparative analysis monthly to ensure that the amount of interest being
paid to the City of Dubuque remains at a level equal to or better than the original
structure.
Nat'! FFE Fn}i4lW-&- bps
GOVERNMENT BANKING
TREASURY MANAGEMENT
Client S' re Date
COVER SHEET
UMB Relationship Manager Approval Date
UMB Funds Management Approval
Date
Inctanra• RRAd.rd