Consent 1.H.
Regular City Council Meeting
- Meeting Date:
- 09/12/2011
- TITLE
- Pledged Collateral Report
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
Deposit-type securities (i.e., certificates of deposit) shall be collateralized according to Montana Code Annotated Section 7-6-207.
On June 30, 2011, the City had certificates of deposits at First Interstate Bank for $2,562,976; and $10,000,000 at US Bank, Billings.
Because First Interstate Bank and US Bank’s net worth to total assets ratios are over 6%, the City is required to have a minimum of 50% of the deposits covered by pledged securities. First Interstate Bank has collateralized the City’s deposits with 97.5% in pledged securities. US Bank has collateralized the certificates of deposit with 120% in pledged securities.
On June 30, 2011, the City had certificates of deposits at First Interstate Bank for $2,562,976; and $10,000,000 at US Bank, Billings.
Because First Interstate Bank and US Bank’s net worth to total assets ratios are over 6%, the City is required to have a minimum of 50% of the deposits covered by pledged securities. First Interstate Bank has collateralized the City’s deposits with 97.5% in pledged securities. US Bank has collateralized the certificates of deposit with 120% in pledged securities.
ALTERNATIVES ANALYZED
The Council may:
- Approve the report for pledged collateral; or
- Not approve the report for pledged collateral
FINANCIAL IMPACT
There is no financial impact to the City.
RECOMMENDATION
Staff recommends that Council approve the pledged collateral report.
APPROVED BY CITY ADMINISTRATOR
Attachments
No file(s) attached.