The Montana Board of Investments adopted new requirements at their November 2015 meeting affecting local governments that participate in the State Short Term Investment Pool (STIP). Local governments are now required to adopt a resolution authorizing a representative to conduct transactions with STIP, including making changes to the name of the City's bank and account number for STIP transactions and the earning distribution method of the STIP account.

 

City Council may:

• Approve the resolution authorizing Patrick Weber 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.

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 $39,616,309 invested in STIP with a March average interest rate of .54%.

Staff recommends that the City Council approve the resolution designating Patrick Weber to act on behalf of the City of Billings regarding STIP investments.