City of Oak Creek

Common Council Report

Meeting Date: 01/15/08 

Item No.:        

Recommendation: That the Common Council adopt:

            a.         Resolution No. 10816-011508, A Resolution Rescinding Resolutions No. 10549-092005 and No. 10637-050206, and Restating Public Depositories for the City of Oak Creek.

            b.         Resolution No. 10817-011508, A Resolution Rescinding Resolution 10636-050206 and Restating the Investment Policy for the City of Oak Creek.

            c.         Resolution No. 10818-011508, A Resolution Rescinding Resolution No. 10637-050206 and Reauthorizing an Investment Agency Agreement with Marshall & Ilsley (M&I) Trust Company, N.A.

            d.         Resolution No. 10819-011508, A Resolution Authorizing Conditions of a Public Deposits Security Agreement with Tri-City National Bank, through JPMorgan Chase Bank, N.A. as Intermediary on Behalf of the City of Oak Creek.

Background: 

Recently, the City was contacted by our representative at Tri-City National Bank, with which the City carries depository accounts.  As part of routine account reviews, Tri-City realized that some documents related to the collateralization agreement with the City were in need of updating to satisfy new legal requirements.  We were asked to have the Council adopt a new resolution of authorization.  This seemed an appropriate time to update other depository and investment resolutions in order to have a comprehensive group of current policies in place. 

Following is a brief description and summary of purpose for each resolution listed above:

            a.  Res. 10816-011508 identifies the specific financial institutions that are authorized to be used as depositories for City funds, and complies with requirements of state statutes for naming the depositories and providing for withdrawal or disbursement orders.

            b.  Res. 10817-011508 restates the City’s investment policy as adopted in May, 2006, with modification  limited to a reference to electronic fund transfers and an additional verification requirement.  References in the policy to the Finance Committee have been left in place, although there has been no functioning Finance Committee for several years.

            c.  Res. 10818-011508 reauthorizes the investment agency agreement currently in place with Marshall & Ilsley (M &I) Trust, but places the agreement in its own authorizing resolution rather than in a combination resolution with other depository approvals.

            d.  Res. 10819-011508 authorizes the conditions of the collateralization agreement with Tri-City, authorizes officials to execute terms of the agreement, and includes indemnification language required by the Bank and the Intermediary.

Fiscal Impact: 

There is no fiscal impact from approving the resolutions.  The fiscal impact of having appropriate policies in place is that City funds are protected to the maximum ability.

Prepared by and fiscal review by: Beverly A. Buretta, CMC City Clerk/Comptroller

Respectfully submitted, Patrick DeGrave, PhD City Administrator