Board of Selectmen - 45 (07/05/2022)

The Town of Waterford 
 
 
  
  
 
                                                                       

The Town of Waterford 
 
 
July 1, 2022 
 
Town of Waterford 
15 Rope Ferry Road 
Waterford, CT 06385 
 
Attention: Ms. Kimberly Allen and Mr. Abbas Danesh 
 
 
 
We would like to thank The Town of Waterford for providing Chelsea Groton Bank with the opportunity to propose a revised proposal as a follow-up 
to our meeting on June 28, 2022. We appreciate the ability to explore a proposed solution for an optimal structure and setup based on a more in-
depth understanding of the Town’s needs. As discussed, our aim is to establish a close relationship with our municipal customers through a 
consultative approach that adds value through cost efficiencies and time-saving processes. In this updated proposal, we outline our recommendation 
for the account structure, cash management services and estimated costs. Moreover, since our goal is to customize our proposal to your individual 
needs, we are able to further fine-tune and explore further efficiencies based on the Town’s feedback with the objective of ensuring the solution 
perfectly aligns with the Town of Waterford’s desired outcome.   
 
While the financial components are important, this is only part of the value proposition offered by Chelsea Groton Bank.  By banking with 
a people-powered community banking institution such as Chelsea Groton Bank, you have access to local management and you can be 
assured that your voice will be heard and your relationship valued. 
 
 
 
1. General Fund Account 
 
We recommend establishing one (1) Business Sweep Checking account as the General Fund Account for the Town of Waterford. This account 
would be linked to the Zero Balance Account as well as to the IntrFi “Insured Cash Sweep®” (ICS) investment account. Our recommendation is to 
establish a daily collected target balance of $4,000,000 to be linked to the ICS account. Our Business Sweep Checking account is designed for 
municipalities and organizations that maintain larger account balances where the “earnings credit” will reduce or eliminate monthly service charges.  
As per our conversation, given recent interest rate market developments we have been able to increase our earnings credit interest rate 
offered to the Town of Waterford on average daily collected balances to 0.40%, which is used to offset monthly-calculated service charges.  
 
ENVISIONED OPTIMIZED ACCOUNT STRUCTURE 
INTRODUCTION 

The Town of Waterford 
 
 
2. Business Analysis Checking Accounts: 
 
Our recommendation is to establish three (3) Business Analysis Checking accounts. The Business Analysis Checking account is designed for 
municipalities or organizations that maintain larger account balances where the “earnings credit” will reduce or eliminate monthly service charges. 
As per our conversation, given recent interest rate market developments we have been able to increase our earnings credit interest rate 
offered to the Town of Waterford on average daily collected balances to 0.40%, which is used to offset monthly-calculated service charges.  
 
All “earnings credits” and monthly service charges will be aggregated with the General Fund Account and all other Analysis checking accounts in 
order that all Analysis checking account balances will be used to offset monthly-calculated service charges.  All of these checking accounts will be 
included in the online banking profile and will be accessible online in accordance with entitlements as established by the Town of Waterford.        
3. Zero Balance Accounts: 
 
We are able to provide 1 (one) Zero Balance Account for the Town of Waterford to serve as the General Disbursement account.  The Zero Balance 
Account helps segregate certain account activity from the Master Account and at the same time aggregate funds without the need to perform manual 
transfers. The Zero Balance Account will be linked to the desired account so that at the end of each business day, the Zero Balance Account will 
either pull funds in or disburse funds to the linked account to bring the target balance to zero.  The available balance in the Zero Balance Accounts 
will be the balance in the Zero Balance Accounts plus the available balance in the linked account. Chelsea Groton Bank will work with The Town of 
Waterford to determine the most advantageous set up.   
4. Municipal Money Market Account: 
 
Our recommendation is to establish an Insured Cash Sweep account to replace the Town of Waterford’s Municipal Money Market account.  
The IntrFi “Insured Cash Sweep®” (ICS) service provides immediate access to funds for withdrawal, transfer or payment.  Through ICS, the Town 
of Waterford would have access to multi-million dollar FDIC insurance coverage above and beyond the FDIC coverage normally available to 
businesses and organizations at a single financial institution.  The Town is able to consolidate cash balances at one financial institution and access 
the funds as needed, obtain full FDIC insurance coverage, receive a competitive interest rate and view all transaction activity through the Chelsea 
Groton Bank Online Treasury Management System.  
 
The ICS account automatically sweeps available funds to or from the ICS account in order to maintain the recommended target balance in the 
Business Sweep Checking account.  Available funds in excess of the target balance are automatically swept from the Business Sweep Checking 
account into the ICS account at the end of each business day.  However, if the Business Sweep Checking account falls below the target balance, 
available funds will automatically be swept from the ICS account to the Business Sweep Checking account in order to replenish the checking account 
back to the target balance.  The cost of the ICS sweep arrangement is $35.00 per month and will be included in the account analysis and offset by 
any available earnings credits.   

The Town of Waterford 
 
 
However, if the Town of Waterford prefers to maintain a separate investment account not linked to the General Fund account, we can certainly 
provide one (1) Municipal Money Market account. There is no monthly service charge, provided that the account maintains a minimum monthly 
average balance of $1,000. Interest is compounded and paid monthly on collected balances.  
 
The current interest rate and annual percentage yield on the Municipal Money Market account is variable.  
 
 
 
 
Optional: 
 
CDARS® (Certificate of Deposit Account Registry Service): 
 
We are able to offer to the Town of Waterford access to CDARS® (Certificate of Deposit Account Registry Service) provided by IntraFi. Through 
CDARS, the Town of Waterford would have access to multi-million dollar FDIC insurance coverage above and beyond the FDIC coverage normally 
available to businesses and organizations at a single financial institution.  The Town is able to consolidate your certificates of deposit at one financial 
institution, obtain full FDIC insurance coverage, receive competitive interest rates and receive a single consolidated monthly statement and year-
end 1099 form.  These investments could be layered onto the Town of Waterford’s cash pool structure in order to opportunistically earn additional 
interest on funds that are not needed for certain timeframes. Once the CDARS mature, the funds would be deposited back into the General Fund 
and swept into the Insured Cash Sweep investment account if applicable to earn interest. 

The Town of Waterford 
 
 
 
 
 
 
 
 

The Town of Waterford 
 
 
 
 
To enhance the convenience and efficiency of your banking operations, we offer the following Treasury Management Services: 
 
1. Remote Deposit Capture Service: 
 
We can provide The Town of Waterford with three (3) scanners as part of the Remote Deposit Capture Service, one each for the Finance Department, 
Tax Collection Department and the Waterford Utility Commission. We are also able to accommodate deploying one (1) scanner to the Finance 
Department at the onset, with the onboarding of the two (2) additional scanners once the other Departments are ready to adopt the Remote Deposit 
Capture Service. There is no upfront cost for the scanner equipment; rather, the service charge for the Remote Deposit Capture service will be 
included in the account analysis and offset by any available earnings credits.  
 
2. ACH Origination Service: 
 
We will provide The Town of Waterford with the ACH Origination Service. This service provides the ability to electronically pay vendors or individuals 
manually set up in the system, or alternatively, by uploading a NACHA-compliant file with payment information directly into the ACH Origination 
module to process multiple payments with just a few clicks. As The Town of Waterford eventually moves to performing payroll in-house, this will 
provide a quick and easy solution to processing payroll through the simple file upload.   
 
We will be able to provide the Town’s three (3) Administrators each an RSA Security token to access the ACH Origination module, adding an extra 
layer of security in addition to the security features included in the online banking system.   
 
3. Online Wire Origination Service: 
 
We will provide The Town of Waterford with use of the Online Wire Origination Service.  Each Wire Origination user is provided with an RSA Security 
token to access the Wire Origination module, adding an extra layer of security in addition to the security features included in the online banking 
system.  This RSA Security token is the same device as for the ACH Origination Service and can be utilized for both services.  
 
4. Positive Pay Service: 
 
As per our discussion, we can provide The Town of Waterford with the Positive Pay fraud detection service for three (3) of the Town’s accounts.    
In addition, we will include “ACH Block and Filter” and “Account Reconciliation” as part of the full Positive Pay solution for the Town.  
 
5. Lockbox Services: 
 
Chelsea Groton is able to provide Lockbox processing through Lighthouse Payment Services, Inc. As discussed, the Lockbox service will be available 
throughout the year, but the estimated annual charges are based on the assumption that the Town of Waterford will only be utilizing Lockbox during 
tax season, i.e. the months of January and July. Moreover, the cost of the annual P.O. box rental, which is estimated to be $1,500, is built into the 
annual cost estimate provided by Chelsea Groton.  

The Town of Waterford 
 
 
6. Armored Car Services:  
 
We are able to propose two solution options for The Town of Waterford to accommodate the transportation of coin and currency.  
Option 1: Through Chelsea Groton’s Armored Car Transportation Services Provider, Loomis, we can arrange to have an armored car pick up coin 
and currency twice per week during ten months of the year from two locations – Town Hall and the Waterford Utility Commission – as well as three 
times per week during the months of January and July. Through Chelsea Groton Bank’s existing contract with Loomis, we can reflect the cost of this 
service as a monthly account analysis charge which can be partially offset by the earnings credit. The pricing estimate for this option is included in 
the Proposed Pricing section below. 
Option 2: The Town of Waterford can opt to contract directly with Loomis for SafePoint Titan® smart safes. This service offers the latest in secure 
hardware combined with Loomis’ proprietary software to streamline the on-location cash-handling process, secure deposits, and increase cash 
visibility. Cash deposits made into the smart safe are credited to the account each day, with Loomis picking up the cash from the safe each week. 
We can provide two (2) smart safes through Loomis – one for Town Hall and one for the Waterford Utility Commission. The price for each smart 
safe would be approximately $650 per safe, for a total of $1,300 for The Town of Waterford.  
During the transition to employing Remote Deposit Capture for all the Town’s check deposit needs, Chelsea Groton can continue to provide Loomis’ 
Armored Car Transportation Services for pickups of both coin and currency as well as checks at Town Hall and the Waterford Utility Commission, 
and depositing them at a Chelsea Groton branch. The pricing estimate for this interim solution is included in the Proposed Pricing section below.  
7. Proposed Pricing 
 
Annual Pricing Estimate 
 
This annual banking service charge estimate assumes average collected balances between the Town’s four (4) analysis accounts of $4,000,000. 
Net service charges may vary based on average monthly balances and banking activity within a given month. Chelsea Groton Bank is willing to 
guarantee the cost structure and banking charges included in this proposal for five years (this excludes Lockbox and armored car services 
as these are outside the Bank’s influence). Chelsea Groton Bank is committed to providing fair and transparent charges. Following that time, costs 
outlined in the proposal sheet will remain in effect until notified by Chelsea Groton Bank.  
This annual pricing estimate assumes that The Town of Waterford’s checks are deposited through the Remote Deposit Capture Service, and coin 
and currency is picked up by Loomis and delivered to the Loomis cash vault.  
 
 

The Town of Waterford 
 
 
 
 
 
 
* The Town of Waterford would contract and pay Loomis directly for the Smart Safe Service; the displayed cost in column 2 is the approximate 
total banking cost, including both banking service charges as well as the estimated $1,300 monthly cost directly paid to Loomis.  
 
** Please note that the annual Lockbox P.O. Box charge is billed once per year and included as a one-time charge on that month’s analysis 
statement. For the sake of this estimate, it is shown included in the net banking service charges in the month of April.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Month
Total Banking Fees - with Armored Car
Total Banking Fees - with Smart Safe*
January
$2,022.25
$1,981.07
February
$1,074.94
$1,351.07
March
$1,074.94
$1,351.07
April**
$2,574.94
$2,851.07
May
$1,074.94
$1,351.07
June
$1,074.94
$1,351.07
July
$2,022.25
$1,981.07
August
$1,074.94
$1,351.07
September
$1,074.94
$1,351.07
October
$1,074.94
$1,351.07
November
$1,074.94
$1,351.07
December
$1,074.94
$1,351.07
Annual Fees
$16,293.87
$18,972.86

The Town of Waterford 
 
 
Annualized Pricing Estimate per Month During Tax Season (January & July) 
 
Town of Waterford
Average Collected Balance:
$4,000,000.00
Earnings Credit Rate:
0.40%
Earnings Credit Amount:
$1,333.33
               Less Services Performed:
$3,355.59
Net Position:
-$2,022.25
Service Description
Volume
Unit Price
Charge
Required 
Collected Balance
Account Services
Monthly Maintenance
4
$12.00
$48.00
$144,000.00
Checks Paid
648
$0.12
$77.80
$233,400.00
Checks Deposited
3686
$0.12
$442.34
$1,327,020.00
ACH Debits
51
$0.12
$6.10
$18,300.00
ACH Credits
104
$0.12
$12.44
$37,320.00
Deposit Correction
0
$7.50
$0.00
$0.00
Returns
7
$15.00
$98.75
$296,250.00
Lockbox Service
Lockbox Service
1
$630.00
$630.00
$1,890,000.00
ACH Origination Service
ACH Monthly Maintenance
1
$25.00
$25.00
$75,000.00
ACH Originated Debits
0
$0.10
$0.00
$0.00
ACH Originated Credits
1386
$0.10
$138.64
$415,925.00
ACH Returns
0
$5.00
$0.00
$0.00
Wire Transfer Service
Wire Transfer Module
1
$25.00
$25.00
$75,000.00
Domestic Wire Out
2
$20.00
$40.00
$120,000.00
International Wire Out
0
$45.00
$0.00
$0.00
Incoming Wire Transfer
1
$10.00
$13.33
$40,000.00
Positive Pay Service
Positive Pay
3
$40.00
$120.00
$360,000.00
Remote Deposit Capture Service
Remote Deposit Capture
3
$75.00
$225.00
$675,000.00
Cash Management Services
Security Token
3
$8.00
$24.00
$72,000.00
Line of Credit Sweep Arrangement
0
$0.00
$0.00
$0.00
Investment Sweep Arrangement
1
$35.00
$35.00
$105,000.00
Zero Balance Accounts
1
$8.00
$8.00
$24,000.00
Zero Balance Sweep Service
1
$10.00
$10.00
$30,000.00
Loomis Transportation Service (3 per week)
1
$1,341.18
$1,341.18
$4,023,540.00
Stop Payment
2
$20.00
$35.00
$105,000.00
Monthly Total:
$3,355.59
$10,066,755.00

The Town of Waterford 
 
 
Note: if the Town were to maintain average collected balances of $10,100,000 between accounts during tax season, the Town would not be 
expected to pay any banking service charges.  
Annualized Pricing Estimate per Month Outside Tax Season (February-June, August-December) 
 
 
Town of Waterford
Average Collected Balance:
$4,000,000.00
Earnings Credit Rate:
0.40%
Earnings Credit Amount:
$1,333.33
               Less Services Performed:
$2,408.27
Net Position:
-$1,074.94
Service Description
Volume
Unit Price
Charge
Required 
Collected Balance
Account Services
Monthly Maintenance
4
$12.00
$48.00
$144,000.00
Checks Paid
648
$0.12
$77.80
$233,400.00
Checks Deposited
3686
$0.12
$442.34
$1,327,020.00
ACH Debits
51
$0.12
$6.10
$18,300.00
ACH Credits
104
$0.12
$12.44
$37,320.00
Deposit Correction
0
$7.50
$0.00
$0.00
Returns
7
$15.00
$98.75
$296,250.00
Lockbox Service
Lockbox Service
0
$630.00
$0.00
$0.00
ACH Origination Service
ACH Monthly Maintenance
1
$25.00
$25.00
$75,000.00
ACH Originated Debits
0
$0.10
$0.00
$0.00
ACH Originated Credits
1386
$0.10
$138.64
$415,925.00
ACH Returns
0
$5.00
$0.00
$0.00
Wire Transfer Service
Wire Transfer Module
1
$25.00
$25.00
$75,000.00
Domestic Wire Out
2
$20.00
$40.00
$120,000.00
International Wire Out
0
$45.00
$0.00
$0.00
Incoming Wire Transfer
1
$10.00
$13.33
$40,000.00
Positive Pay Service
Positive Pay
3
$40.00
$120.00
$360,000.00
Remote Deposit Capture Service
Remote Deposit Capture
3
$75.00
$225.00
$675,000.00
Cash Management Services
Security Token
3
$8.00
$24.00
$72,000.00
Line of Credit Sweep Arrangement
0
$0.00
$0.00
$0.00
Investment Sweep Arrangement
1
$35.00
$35.00
$105,000.00
Zero Balance Accounts
1
$8.00
$8.00
$24,000.00
Zero Balance Sweep Service
1
$10.00
$10.00
$30,000.00
Loomis Transportation Service (2 per week)
1
$1,023.87
$1,023.87
$3,071,595.00
Stop Payment
2
$20.00
$35.00
$105,000.00
Monthly Total:
$2,408.27
$7,224,810.00

The Town of Waterford 
 
 
Note: if the Town were to maintain average collected balances of $7,300,000 between accounts during non-tax season, the Town would not be 
expected to pay any banking service charges.  
 
Interim Solution:  
While the Town of Waterford transitions to the utilization of three check scanners for the Finance Department, Tax Collector and Water Commission 
to process all check deposits, checks and cash can be picked up and processed by the Bank’s armored car service, Loomis. The pricing estimate 
for the transition period is illustrated below: 
 
Annualized Pricing Estimate per Month During Tax Season (January & July) – Interim Solution 
 
Town of Waterford
Average Collected Balance:
$4,000,000.00
Earnings Credit Rate:
0.40%
Earnings Credit Amount:
$1,333.33
               Less Services Performed:
$3,604.33
Net Position:
-$2,270.99
Service Description
Volume
Unit Price
Charge
Required 
Collected Balance
Account Services
Monthly Maintenance
4
$12.00
$48.00
$144,000.00
Checks Paid
648
$0.12
$77.80
$233,400.00
Checks Deposited
3686
$0.12
$442.34
$1,327,020.00
ACH Debits
51
$0.12
$6.10
$18,300.00
ACH Credits
104
$0.12
$12.44
$37,320.00
Deposit Correction
0
$7.50
$0.00
$0.00
Returns
7
$15.00
$98.75
$296,250.00
Lockbox Service
Lockbox Service
1
$630.00
$630.00
$1,890,000.00
ACH Origination Service
ACH Monthly Maintenance
1
$25.00
$25.00
$75,000.00
ACH Originated Debits
0
$0.10
$0.00
$0.00
ACH Originated Credits
1386
$0.10
$138.64
$415,925.00
ACH Returns
0
$5.00
$0.00
$0.00
Wire Transfer Service
Wire Transfer Module
1
$25.00
$25.00
$75,000.00
Domestic Wire Out
2
$20.00
$40.00
$120,000.00
International Wire Out
0
$45.00
$0.00
$0.00
Incoming Wire Transfer
1
$10.00
$13.33
$40,000.00
Positive Pay Service
Positive Pay
3
$40.00
$120.00
$360,000.00
Remote Deposit Capture Service
Remote Deposit Capture
1
$75.00
$75.00
$225,000.00
Cash Management Services
Security Token
3
$8.00
$24.00
$72,000.00
Line of Credit Sweep Arrangement
0
$0.00
$0.00
$0.00
Investment Sweep Arrangement
1
$35.00
$35.00
$105,000.00
Zero Balance Accounts
1
$8.00
$8.00
$24,000.00
Zero Balance Sweep Service
1
$10.00
$10.00
$30,000.00
Loomis Transportation Service (3 per week)
1
$1,739.92
$1,739.92
$5,219,760.00
Stop Payment
2
$20.00
$35.00
$105,000.00
Monthly Total:
$3,604.33
$10,812,975.00

The Town of Waterford 
 
 
Annualized Pricing Estimate per Month Outside Tax Season (February-June, August-December) – Interim Solution 
 
 
 
 
 
Town of Waterford
Average Collected Balance:
$4,000,000.00
Earnings Credit Rate:
0.40%
Earnings Credit Amount:
$1,333.33
               Less Services Performed:
$2,825.45
Net Position:
-$1,492.11
Service Description
Volume
Unit Price
Charge
Required 
Collected Balance
Account Services
Monthly Maintenance
4
$12.00
$48.00
$144,000.00
Checks Paid
648
$0.12
$77.80
$233,400.00
Checks Deposited
3686
$0.12
$442.34
$1,327,020.00
ACH Debits
51
$0.12
$6.10
$18,300.00
ACH Credits
104
$0.12
$12.44
$37,320.00
Deposit Correction
0
$7.50
$0.00
$0.00
Returns
7
$15.00
$98.75
$296,250.00
Lockbox Service
Lockbox Service
0
$630.00
$0.00
$0.00
ACH Origination Service
ACH Monthly Maintenance
1
$25.00
$25.00
$75,000.00
ACH Originated Debits
0
$0.10
$0.00
$0.00
ACH Originated Credits
1386
$0.10
$138.64
$415,925.00
ACH Returns
0
$5.00
$0.00
$0.00
Wire Transfer Service
Wire Transfer Module
1
$25.00
$25.00
$75,000.00
Domestic Wire Out
2
$20.00
$40.00
$120,000.00
International Wire Out
0
$45.00
$0.00
$0.00
Incoming Wire Transfer
1
$10.00
$13.33
$40,000.00
Positive Pay Service
Positive Pay
3
$40.00
$120.00
$360,000.00
Remote Deposit Capture Service
Remote Deposit Capture
1
$75.00
$75.00
$225,000.00
Cash Management Services
Security Token
3
$8.00
$24.00
$72,000.00
Line of Credit Sweep Arrangement
0
$0.00
$0.00
$0.00
Investment Sweep Arrangement
1
$35.00
$35.00
$105,000.00
Zero Balance Accounts
1
$8.00
$8.00
$24,000.00
Zero Balance Sweep Service
1
$10.00
$10.00
$30,000.00
Loomis Transportation Service (2 per week)
1
$1,591.04
$1,591.04
$4,773,120.00
Stop Payment
2
$20.00
$35.00
$105,000.00
Monthly Total:
$2,825.45
$8,476,335.00

The Town of Waterford 
 
 
 
 
 
• 
Increased earnings credit of 0.40%.  
• 
Optimized account structure including greater liquidity as well as FDIC insurance through Insured Cash Sweep and CDARS. 
• 
Chelsea Groton Banking service charges honored for five years.  
• 
Estimated annual banking service charges inclusive of Lockbox during tax season and Armored Car Services year-round of $16,293.87.  
 
 
 
********************************************** 
 
Chelsea Groton Bank helps municipalities succeed in big ways and small by putting more effort into everything we do — and by doing it all with a 
customized mindset. We’re committed to supporting every customer’s needs and financial wellness goals, equally, and solving their problems with 
customized solutions. Our technology is focused on bringing together the best in digital, remote and in-person capabilities — an approach designed 
around the lives of our customers so they can manage finances when, where and how they want. This dedication to help others extends to the 
places where our customers and employees live and work. We put more time, energy and money into our local communities to make them stronger. 
Because when we do, everyone succeeds. To learn more about Chelsea Groton Bank, please watch our Annual Report video at 
www.chelseagroton.com/AnnualReport.  
 
If you have any questions, please feel free to contact Alexis Kahn directly at (860) 448-4157 or via email at akahn@chelseagroton.com or Harry 
Colonis at (860) 448-4269 or via email at hcolonis@chelseagroton.com.  
 
 
 
Sincerely, 
 
 
Alexis Kahn 
Vice President 
Cash Management Sales Manager 
 
Chelsea Groton Bank
Tier 1 Ratio
13.87%
Earnings Credit
0.40%
Average Ledger Balance
$4,000,000
Annual Fees After Credit Including Armored Car
$16,294
Honored For
5 Years
References
New London, Montville, North 
Stonington, Franklin, Bolton
BOTTOM LINE 

The Town of Waterford 
 
 
Harry Colonis 
Assistant Vice President 
Business Development Officer 
 
cc.:  
Alex Masse, Senior Vice President, Director of Operations & Business Intelligence 
Lori Dufficy, Executive Vice President, Chief Experience & Engagement Officer 
Tony Joyce, Chief Operating Officer 
Michael Rauh, Chief Executive Officer