ITEM 3.5 DepositoriesP
OtsegoOF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Dan Jordet, ASD
12 January 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
Consent Agenda
Lori Johnson, CA
3.5 Depositories for City Funds
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended that the City Council approve the list of official depositories and investment brokers
for use during the 2015 fiscal year.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUN D/J USTI FICATION:
Each January, the City Council is asked to approve a number of different institutions to serve as
depositories for public dollars and other firms to act as investment brokers for the purpose of investing
idle public funds.
The banks named are The Bank of Elk River, the City's primary banking relationship, and KleinBank,
providing wire services and high liquidity money market service.
Investment brokers include the 4M Fund of the League of Minnesota Cities, Multi -Bank Securities of
Southfield, MI, ICD Securities of Scottsdale, AZ, Northland Securities of Minneapolis and RBC Capital
Markets of Minneapolis. Added to the list for 2015 is Oppenheimer & Company, Inc. The Minneapolis
representative has regularly provided reports of the securities available through his firm. The
availabilities, maturities and interest rates of securities offered are favorable compared with other
brokers. It is therefore recommended that Oppenheimer & Company, Inc. be added to the list.
Additions to these brokers may be presented for consideration during 2015. Any new firms considered
will have a Minnesota base of operations.
In addition, a securities safekeeping and custody agreement for City investments has been solicited via
request for proposals. Three institutions have responded favorably. Results and a recommendation will
be presented to the City Council on Monday, January 26, 2015.
SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE
Resolution 2015-02
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Move adoption of Resolution 2015-02 (attached)
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
Does not require funding
❑ NO
X Not Applicable
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2015-02
RESOLUTION ESTABLISHING DEPOSITORIES FOR CITY FUNDS
WHEREAS, the City of Otsego must, each year, designate official depositories for City funds
and approve the investment brokers to be used for invetment of City funds in accourance with
the City's Investment Policy and Minnesota Statutes 118A.02.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OTSEGO, WRIGHT COUNTY, MINNESOTA THAT:
1. The following are designated as official depositories for City funds:
a. The Bank of Elk River
b. K1einBank
2. The following are approved as investment brokers for the purposes of investing idle cash
funds of the City:
a. Minnesota Municipal Money Market (4M) Fund
b. Multi -Bank Securities, Inc.
c. ICD Securities, Inc.
d. Northland Securities
e. Oppenheimer & Company, Inc.
f. RBC Capital Markets, LLC
3. Collateral is required for all bank deposits that exceed Federal Deposit Insurance
Corporation (FDIC) maximum coverage.
4. Investments shall be made in accordance with Minnesota Statutes 118A and the adopted
Investment Policy of the City of Otsego.
5. The Administrative Services Director may recommend additional depositories, brokers or
other repositories for City funds during the coming fiscal year.
ADOPTED by the Otsego City Council this 12th day of January, 2015.
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
MOTION made by Council Member and SECONDED by Council Member
IN FAVOR:
OPPOSED: