Consent 1.K.
Regular City Council Meeting
- Meeting Date:
- 03/28/2016
- TITLE
- Pledged Collateral Report
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
State law, at 7-6-201 MCA, et. seq., requires the City to obtain security for deposits that are not guaranteed or insured. On January 31, 2016, the City had certificates of deposit at First Interstate Bank for $2,590,224. 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 had $34,900,000 in deposits and a Certificate of Deposit at US Bank on January 31, 2016 . 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 100% in pledged securities.
The City also had $34,900,000 in deposits and a Certificate of Deposit at US Bank on January 31, 2016 . 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 100% in pledged securities.
ALTERNATIVES ANALYZED
The Council may:
- Approve the report for pledged collateral; or
- Not approve the report for pledged collateral.
FINANCIAL IMPACT
This is an informational update with no financial impact to the City.
RECOMMENDATION
Staff recommends that the City Council approve the pledged collateral report.