Consent 1.E.
Regular City Council Meeting
- Meeting Date:
- 09/27/2010
- 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 June 30, 2010, the City had certificates of deposit at First Interstate Bank for $2,530,883.56; $44,977,198.07 in the US Bank Repurchase Account; and $11,500,000 in two 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 99% in pledged securities. US Bank has collateralized the City’s Municipal Investor Account and two certificates of deposit with 128% in pledged securities. The Repurchase Account is collateralized with 102% in pledged securities.
On June 30, 2010, the City had certificates of deposit at First Interstate Bank for $2,530,883.56; $44,977,198.07 in the US Bank Repurchase Account; and $11,500,000 in two 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 99% in pledged securities. US Bank has collateralized the City’s Municipal Investor Account and two certificates of deposit with 128% 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.