The City requires security for deposits that are not guaranteed or insured according to Montana Code Annotated Section 7-6-207. On June 30, 2014,  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 $71,080,040 deposited at US Bank on June 30, 2014. 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 91.4% in pledged securities.

The Council may:

• Approve the report for pledged collateral; or
• Not approve the report for pledged collateral.

There is no financial impact to the City. 

Staff recommends that Council approve the pledged collateral report.