HomeMy WebLinkAbout#12 - 4M Fund MembershipSTAFF REPORT
DATE: July 17 , 2018
CONSENT
ITEM # 12
TO: Honorable Mayor and City Council
FROM: Sue Iverson – Finance Director
AGENDA ITEM: Authorizing Membership in the 4M Fund – Resolution 2018-071
REVIEWED BY: Kristina Handt– City Administrator
BACKGROUND:
Based upon current and likely future needs, it is recommended that the City of Lake Elmo enter into
membership in the Minnesota Municipal Money Market Fund (4M Fund).
The 4M Fund was formed in 1987 by a Joint Powers Act and in accordance with Minnesota Investment
Statutes by the adoption of a joint powers agreement in the form of a Declaration of Trust which is attached
for you review. Staff would like to utilize this to maximize interest earnings along with our other
depositories.
ISSUE BEFORE THE CITY COUNCIL:
Should the Council approve investing with the 4M Fund?
FISCAL IMPACT:
Membership in the 4M Fund enhances the investment opportunities available to the City of Lake Elmo and
increase investment earnings.
RECOMMENDATIONS:
1)Motion to Adopt Resolution No. 2018-071; Authorizing Membership in the 4M Fund.
ATTACHMENTS:
•Resolution No 2018-071
•Declaration of Trust for the Minnesota Municipal Investment Money Market Fund (4M
Fund)
CITY OF LAKE ELMO
WASHINGTON COUNTY, MINNESOTA
RESOLUTION 2018 – 071
RESOLUTION AUTHORIZING MEMBERSHIP IN THE 4M FUND
WHEREAS, Minnesota Statutes (the Joint Powers Act) provides that governmental units may jointly exercise
any power common to the contracting parties; and
WHEREAS, the Minnesota Municipal Money Market Fund (the 4M Fund) was formed in 1987, pursuant to the
Joint Powers Act and in accordance with Minnesota Investment Statutes, by the adoption of a joint powers
agreement in the form of a Declaration of Trust; and
WHEREAS, the Declaration of Trust, which has been presented to this Council, authorizes municipalities of the
State of Minnesota to become Participants of the Fund and make use from time to time including the 4M Liquid
Asset Fund, the 4M Plus Fund, the Term Series, the Fixed Rate Programs, and other Fund services offered by the
Fund; and
WHEREAS, this Council deems it to be in the best interest for the municipality to make use of, from time to
time, the approved services provided by the 4M Fund’s service providers including the Investment Advisor
(Prudent Man Advisors, Inc.) or Sub-Advisor (RBC Global Asset Management (U.S.) Inc.), the Administrator
(PMA Financial Network, Inc.), the Distributor (PMA Securities, Inc.) or the Fixed Rate Program Providers,
PMA Financial Network, Inc. and PMA Securities, Inc., and the Custodian, U.S. Bank National Association,
(“Service Providers”) and/or their successors.
WHEREAS, this Council deems it advisable for this municipality to enter into the Declaration of Trust and
become a Participant of the Fund for the purpose of joint investment with other municipalities so as to enhance
the investment earnings accruing to each; now, therefore BE IT RESOLVED AS FOLLOWS:
Section 1. This municipality shall become a Participant of the Fund and adopt and enter into the Declaration of
Trust, a copy of which shall be filed in the minutes of this meeting. The appropriate officials are hereby
authorized to execute those documents necessary to effectuate entry into the Declaration of Trust and the
participation of all Fund programs.
Section 2. This municipality is authorized to invest monies from time to time and to withdraw such monies from
time to time in accordance with the provisions of the Declaration of Trust. The following officers of the
municipality or their successors are designated as “Authorized Officials” with authority to effectuate investments
and withdrawals in accordance with the Declaration of Trust:
Susan K. Iverson Finance Director ____________________________________________
Signature
Kristina Handt City Administrator ____________________________________________
Signature
(Additional names may be added on a separate list. The treasurer shall advise the Fund of any changes in
Authorized Officials in accordance with Fund procedures.)
Section 3. The Trustees of the Fund are designated as having official custody of those monies invested in
accordance with the Declaration of Trust.
Section 4. That the municipality may open depository and other accounts, enter into wire transfer agreements,
safekeeping agreements, third party surety agreements securing deposits, collateral agreements, letters of credit,
lockbox agreements, or other applicable or related documents with institutions participating in Fund programs
including U.S. Bank National Association, or its successor, or programs of PMA Financial Network, Inc. or
PMA Securities, Inc. for the purpose of transaction clearing and safekeeping, or the purchase of certificates of
2
deposit (“CDs”) or other deposit products and that these institutions shall be deemed eligible depositories for the
municipality. PMA Financial Network, Inc. and PMA Securities, Inc. and their successors are authorized to act
on behalf of this municipality as its agent with respect to such accounts and agreements. Monies of this entity
may be deposited in such depositories, from time to time in the discretion of the Authorized Officials, pursuant to
the Fund’s Programs available through its Services Providers.
It is hereby certified that the Council of the City of Lake Elmo adopted this Resolution at a duly convened meeting of
the Council held on the 17th day of July, 2018, and that such Resolution is in full force and effect on this date, and that
such Resolution has not been modified, amended, or rescinded since its adoption.
_____________________________________
Mike Pearson, Mayor
ATTEST:
_____________________________
Julie Johnson, City Clerk
Dated: July 17, 2018