01-13-2020 Council Packet - Laserfiche WebLink

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STAFF REPORT TO:Mayor Keis and Members of City Council FROM:Brenda Malinowski, Finance Director DATE:December 27, 2020 RE:Deposit and Investment of Local Public Funds REQUESTED ACTION: Make a motion to designate the following financial institutions as a depository of its funds and to authorize the Finance Director to make investments of funds under MN State Statute section 118A, and the City’s Investment Policy. CHECKING ACCOUNT DEPOSITORY: US Bank National Association – Little Canada INVESTMENT DEPOSITORIES: PMA Financial Network, Inc. (4M Fund) Royal Credit Union (RCU) UBS Wealth Management Wells Fargo Advisors Morton Capital Markets US Bank National Association BACKGROUND: Minnesota Statutes Chapter 118A.02 requires that the governing body of each government entity to designate one or more financial institutions as a depository for its public funds. The MN State Auditor has recommended that City’s do this on an annual or biannual basis. Little Canada has done this annually. The City of Little Canada has utilized US Bank as its checking account depository for many years. Also included below is a list of financial institutions that the City of Little Canada utilizes for investments. In 2018, Morgan Stanley notified the City that it would no longer provides municipal investment services as of March 31, 2019. These investments were transferred to UBS Wealth Management. Instead of adding another investment depository at that time, staff wanted to understand the strengths of the current investment depositories, and if another investment depository would bring any additional benefits. After attending a semi-annual investing seminar hosted by Lynn Cornwell of Morton Capital Markets earlier this year, I was impressed by the additional services that can be provided by Lynn and Morton Capital Markets that are not readily available with the existing investment depositories. In particular, Morton provides the following services: