08-12-1996 SPECIAL CC - Laserfiche WebLink

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ari OF REQUEST FOR COUNCIL CONSIDERATION Agenda Section STAFF REPORT Report Number: lel a -l SY'/ I1 0E08 Report Date: 8/8/96 CITY CO CIL MEETING DATE al -1, Special Order of Bus. °$Pei'-Partnecs�"QS 1 _/../%. Consent Agenda Public Hearings 7 Council Business Item Description: Resolution adding State Bank and Trust Company of New Ulm as a secondary depository of City funds. Administrator's Review/Recommendation: -No Comments to supplement this report -Comments attached. Explanation/Summary (attach supplement sheets as necessary) Summary: Today, I meet with representatives from Western Bank regarding the types of accounts that the City has maintained with them in the past and possible future changes. I have also reviewed the types of investments the City has had in the past and have been working on preparing cash flow analysis to assist in establishing future cash needs and investment options. 0overall, the City needs to have access to a certain amount of cash to meet our cash needs. Currently, this is ing accomplished in part by maintaining a money market account. Several months ago at my prior job, I licited bids for banking services from seven local/regional banks; as part of that proposal, I requested bids on a savings account and the best bid was from a bank that is part of a regional bank holding company which offered to pay interest at the 90 day T-Bill rate, with no fees for any services. Western Bank did not appear to be interested in a similar type of account and our existing money market account is yielding less than the 90 day T-Bill rate. As such, I contacted State Bank and Trust Company of New Ulm. (the best bid noted above) which indicated that they would be willing to provide an account to Mounds View under the same terms noted above. On December 15, 1995, the City Council adopted Resolution 4874 establishing primary and secondary depositories of City funds for 1996. In order to take advantage of the proposal from State Bank and thereby increase investment earnings, the City Council will need to adopt a new resolution naming State Bank and Trust Company of New Ulm as a secondary depository of City funds; the proposed resolution 4996 is attached for your review. ! ' --21-------......,1.7//- Fr rt t K Ct , .---,c /-7OE -.).- COMMENDATION: Adopt Resolution 4996 naming State Bank and Trust Company of New Ulm as a secondary depository of City funds.