League of Arizona Cities and Towns Payment Card Consortium August 22, 2018

BMO Harris Leadership in Governments $1.3 billion in lending commitments 400+ clients in the industry 325+ years of collective experience Your funding needs are unique, which is why it's important that you work with a financial institution that has EXPERTISE in your industry. At BMO Harris Bank, our team of specialists has long been DEDICATED to helping government agencies and public school districts NAVIGATE their various challenges. FINANCING CAPABILITIES TREASURY & PAYMENT SOLUTIONS INVESTMENT MANAGEMENT & CUSTODY Letters of Credit Lines of Credit Term Debt Bank Purchases Commercial Mortgages Syndicated Financings Equipment Leasing / Finance Remote Deposit Capture Tools Credit & Purchasing Card Solutions Wholesale & Retail Lockbox Capabilities Online Balance Reporting & Transaction Initiation Fraud Prevention Tools Direct Deposit & Payroll Card Solutions Advanced POS Technology Investment Management Operating & Reserve Portfolios Endowments and Foundations Retirement Plans Planned Gift Vehicles Custody & Master Trust Participant Recordkeeping Securities Lending

Purchasing Card Overview A Purchasing Card is similar to a traditional credit card however it allows you to manage your ongoing purchasing requirements while enhancing control, spend visibility and generate a rebate Manage maverick spend through user-defined, custom control mechanisms. Improve efficiency by changing payment from manual invoice and check requisition to purchasing card settlement Streamline transaction management by enabling the review, reconciliation, modification & approval of transactions 24/7 Ensure policy compliance by providing auditors easy, online access to detailed transaction history. Identify spending patterns via user-friendly, intuitive, standard and ad-hoc reports along with robust data extraction capabilities Significantly reduce costs associated with authorizing, tracking, processing and reconciling your business purchases Generate additional revenue stream based from expenses. (REBATE)

LACT & BMO Harris Bank Purchasing Card BMO Harris Bank & Illinois ASBO – Created a Payment Card Consortium in 2003 that was focused on School Districts / Municipalities 2016 – League of Arizona Cities and Towns joined the program in order to serve its Municipalities. 2018 – Program expanded through 18 State ASBO’s & Gov’t Originations 1100+ Schools & Local Government Roughly $400 Million in Program Spend 25,000 Cards Issued Over $4 Million in card rebates last year to Schools & Local Governments

Benefits of LACT Payment Card Consortium Avoid a lengthy (and expensive) RFP Process – (Every 5 Years) No Fees for Cards, Implementation, Support, Online Access No Minimum Spend (even the smallest community can benefit) All program members may earn an annual performance incentive paid directly by the LACT (no minimum spend requirements) Receive a dedicated BMO support team. Pick your payment terms (Grace Days of 7, 14, 21, or 27) Access to multiple payment tools including PCards, Virtual Cards, Ghost Cards, Declining Balance Cards, and others.

Take Away Questions Are we using a card program of any Kind? If yes, is it a Credit or Purchasing Card? Are we generating a rebate? Are we required to hit a minimum spend before getting a rebate? Are we assessed charges for new or replaced cards, support, etc. ?

BMO’S SUPPORT FOR YOUR ORGANIZATION Institutional Markets - Government Banking Chris Daly AVP – Relationship Manager (602) 407-6724 Christopher.Daly@bmo.com Mark Mitrovich Director (312) 461-6538 Mark.Mitrovich@bmo.com John Mattern Managing Director (312) 461-3292 John.Mattern@bmo.com TREASURY & PAYMENT SOLUTIONS – Card Payments Mark Bockelmann Sr. Sales, Relationship Manager (312) 841-0886 Mark.Bockelmann@bmo.com Bryan Barger Managing Director (312) 461-1528 Bryan.Barger@bmo.com REQUIRED Review these points briefly as part of the introductions – focus on your role in BMO – Treasury and Payment Solutions