Consent 1.H.
Regular City Council Meeting
- Meeting Date:
- 08/28/2017
- TITLE
- Resolution Changing the Authorized Representative for Short Term Investment Pool (STIP)
- PRESENTED BY:
- Andy Zoeller
- Department:
- City Hall Administration
Presentation:
No
PROBLEM/ISSUE STATEMENT
The Montana Board of Investments adopted new requirements affecting local governments that participate in the State Short Term Investment Pool (STIP). Local governments are now required to adopt a resolution reflecting any changes in their STIP account. The authorized representative needs to be changed from Patrick Weber to Andy Zoeller.
ALTERNATIVES ANALYZED
City Council may:
- Approve the resolution authorizing Andy Zoeller to act on behalf of the City of Billings for STIP transactions or;
- Do not approve the resolution, which will bar the City of Billings from investing with STIP, or
- Approve the resolution, authorizing an alternative officer to transact STIP business.
FINANCIAL IMPACT
The City utilizes STIP because of the 24-hour liquidity. Any transactions submitted prior to 2 pm will be completed the next business day. The City's investment balance in STIP varies depending on the cash flow needs. Currently, the City has $87,401,850 invested in STIP with a July average interest rate of 1.15%.
RECOMMENDATION
Staff recommends that the City Council approve the resolution designating Andy Zoeller to act on behalf of the City of Billings regarding STIP investments.