City of Oak Creek

Common Council Report

Meeting Date: 03/02/04

Item No.:         6

Recommendation: 

That the Common Council adopt Resolution No. 10325-121603, a Resolution Amending Resolution No. 9202-061796 and Resolution No. 9822-041800, Regarding Public Depositories

Background:  Original text presented 12/16/03:

In accordance with the City’s investment policy, only financial institutions approved by Common Council resolution shall be considered as public depositories.  Any financial institution serving as a depository for the City of Oak Creek must provide documentation as to their fiscal soundness and professional certifications and registrations, and must certify agreement with the terms and requirements of the City’s investment policy.

In Resolutions No. 9202 and 9822, the Council approved a list of authorized depositories.  At this time, we would like to add Associated Bank to the approved list.  Associated Bank has a Municipal Cash Management Investment Account that meets our investment policy guidelines and offers an opportunity to attain a small increase in interest earnings. Because this particular depository has not been reviewed by the Finance Committee, the City would be placing the minimum amount needed to benefit from this account, and would have all depositories reviewed at the Finance Committee’s next meeting or at the time of their annual review of all vendors. 

Updated information 03/02/04:

This item was referred to the Finance Committee, however, the Committee has been unable to attain a quorum for a meeting.  A third member of the seven-member committee has just resigned due to other commitments.  Because there is no indication of when this Committee will again become viable, this item is being brought back for Council action.  Both the City Clerk and the City Treasurer believe this financial institution to be acceptable for inclusion as a public depository, and believe we should take advantage of the small increase in earnings potential.

Fiscal Impact: 

The City would see a bonus interest rate of 30 basis points above the rate paid by the Local Government Investment Pool by maintaining a minimum balance of $500,000 on deposit.

Prepared by and Fiscal Review by:

Beverly A. Buretta, CMC

City Clerk