Consent 1.H.
Regular City Council Meeting
- Meeting Date:
- 10/26/2009
- TITLE
- Quarterly Report for Pledged Collateral
- 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 September 30, 2009, the City had a certificate of deposit at First Interstate Bank for $1,500,000; also $11,133,169 invested in the U.S. Bank Municipal Investor Accounts; and $8,771,685 in the US Bank Repurchase Account. The City has $16,760,000 in four certificates of deposit at US Bank, Billings.
Because First Interstate Bank and US Bank’s net worth ratios to total assets ratio 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 100% in pledged securities. US Bank has collateralized the City’s Municipal Investor Account and four certificates of deposit with 131% in pledged securities. The Repurchase Account is collateralized with 102% in pledged securities.
On September 30, 2009, the City had a certificate of deposit at First Interstate Bank for $1,500,000; also $11,133,169 invested in the U.S. Bank Municipal Investor Accounts; and $8,771,685 in the US Bank Repurchase Account. The City has $16,760,000 in four certificates of deposit at US Bank, Billings.
Because First Interstate Bank and US Bank’s net worth ratios to total assets ratio 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 100% in pledged securities. US Bank has collateralized the City’s Municipal Investor Account and four certificates of deposit with 131% in pledged securities. The Repurchase Account is collateralized with 102% in pledged securities.
ALTERNATIVES ANALYZED
The Council may:
- Approve the quarterly report for pledged collateral; or
- Not approve the quarterly report for pledged collateral
FINANCIAL IMPACT
There is no financial impact to the City.
RECOMMENDATION
Staff recommends that Council approve the quarterly report for pledged collateral
APPROVED BY CITY ADMINISTRATOR
Attachments
No file(s) attached.