Consent 1.F.
Regular City Council Meeting
- Meeting Date:
- 02/24/2014
- TITLE
- Pledged Collateral Report
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The City requires security for deposits that are not guaranteed or insured according to Montana Code Annotated Section 7-6-207.
On December 31, 2013, the City had certificates of deposit at First Interstate Bank for $2,584,161. Because First Interstate Bank's net worth to total assets ratio is 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 100% in pledged securities.
The City also has $81,392,329 deposited at US Bank on December 31, 2013. Because US Bank's net worth to total assets ratio is over 6%, the City is required to have a minimum of 50% of the deposits covered by pledged securities. US Bank has provided 98.2% in pledged securities.
On December 31, 2013, the City had certificates of deposit at First Interstate Bank for $2,584,161. Because First Interstate Bank's net worth to total assets ratio is 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 100% in pledged securities.
The City also has $81,392,329 deposited at US Bank on December 31, 2013. Because US Bank's net worth to total assets ratio is over 6%, the City is required to have a minimum of 50% of the deposits covered by pledged securities. US Bank has provided 98.2% 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.