City of Oak Creek

Common Council Report

Meeting Date: 09/20/05

Item No.:        

Recommendation: 

That the Common Council adopt Resolution No. 10549-092005, a Resolution Rescinding Resolutions 9202-061795, 9822-041800, and 10325-121603,  and Restating the Designation of  Public Depositories for the City of Oak Creek.

Background:  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.  By means of Resolutions No. 9202-061795, 9822- and 10325, the Council approved and modified a list of authorized depositories.  Some of the financial institutions have been corporately restructured and renamed and some are no longer being utilized by the City.  We would like to restate the list to reflect the current correct corporate names, and drop those institutions that are not being utilized, and include Smith-Barney, Citigroup as a new inclusion on the approved list.

(Note:  The Local Government Investment Pool was approved by a separate resolution; the Pool is still being used, and is not affected by this action.)  

Recently, representatives of Smith-Barney, Citigroup provided a presentation; a letter from Richard Knowlton, Senior Vice-President, accompanies this report.  Smith-Barney, Citigroup has an institutional investment division that meets our investment policy guidelines and offers an opportunity to gain higher interest earnings by diversifying our portfolio of mid-term investments. Both the City Clerk and the City Treasurer believe this financial institution to be acceptable for inclusion as a public depository, based on its reputation, and on meeting the City’s investment policy criteria.  Municipal references were also very positive.  We have a signed statement from Smith-Barney, Citigroup, indicating their understanding of the City’s policy and their intent to follow it.  Pending the decision of the Council to add the firm to our approved list, the Clerk and Treasurer will review the investment amount decision.

Fiscal Impact: 

The City has available approximately $2,000,000 of funds not immediately needed.  Those funds could be placed into the Smith-Barney account and a modest increase in interest earnings could be expected.

Prepared by and Fiscal Review by:

Beverly A. Buretta, CMC

City Clerk