It looks like Wellington North will continue to bank with the Royal Bank of Canada – for now.
On Sept. 13, Treasurer John Jeffrey said the municipality received an update of its banking agreement, which expired the past year.
He said it is essentially the same terms and conditions as before.
“The one change, though, in the old agreement we were receiving interest on the balances in our accounts – general, reserve, and trust. We were getting prime minus 1.7%. It’s now been changed to an escalating interest that we will be earning.
Jeffrey said, “It’s not quite what it was before, but it is something.” He noted that at one point it council had considered looking at the marketplace for a better deal.
“This keeps our banking relationship with the Royal Bank going into the new year.”
He said it still allows for an option of reviewing the agreement in the new year.
“The main change is that we will not be earning as much interest on our balance.”
Council later authorized Jeffrey to sign on behalf of the township the renewal deposit interest and compensation agreement with the RBC Royal Bank, Arthur Branch. That agreement is for a term of five years, starting July 1, 2010.
