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Dolton board to consider opening interest-bearing accounts at United Trust Bank
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Summary
A staff member told the Dolton board that United Trust Bank is offering a premium money-market account with up to 4% APY and CDs around 3.45–3.55%; the board agreed to place the item on the May 5 agenda for further consideration.
A staff member told the Village of Dolton board that the village's current bank accounts earn no interest and proposed opening new accounts at United Trust Bank, which is offering a premium money-market account with an annual percentage yield of up to 4% and an attached free business checking account.
Why it matters: The staff member said the village could earn higher returns on short-term funds and that the bank has proposed relationship benefits that might create future municipal lending opportunities. The finance department proposed seeding the accounts using 10% of collections from longstanding outstanding debts owed to the village.
What was proposed: The staff member described the bank's tiered offer: accounts of $100,000 or more would earn 4% APY, while accounts under $100,000 would earn 3.5% APY. The finance department would also consider certificates of deposit, with roughly 3.45% for six-month CDs and about 3.55% for 12-month CDs.
Direct quote: “We have 0% interest coming in on our money and our accounts,” the staff member said, summarizing the village's current position and the rationale for seeking higher yields.
Procedural next step: The chair asked whether the board wanted to place the proposal on the May 5 agenda for a formal vote or further review. Several board members responded in the affirmative by voice, and the chair confirmed the item will appear on the May 5 agenda. No formal mover or seconder was recorded during the voice consensus.
Scope and funding: The staff member said the village would not move all bank accounts; instead, these would be additional accounts. To seed the new accounts, staff proposed allocating 10% of incoming collections from previously outstanding debts. The total amount of those collections and any proposed initial deposit amounts were not specified during the discussion.
What was not decided: The board did not take a formal vote on bank selection, account sizes, or any transfer of existing accounts. The discussion ended with the board agreeing to consider the item at the May 5 meeting and with the chair thanking Director Bryant for her work on the proposal.
Next steps: The item will return to the board on May 5 for formal consideration, during which staff are expected to present recommended account structures, initial deposit amounts, and any required resolutions or authorizations.
