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ll]rNV a jOf Report Number 10-008 <br />Agenda Section V1_5 <br />the city r MUTorkrosION Council Meeting Date January 12, 2010 <br />• REQUEST FOR COUNCIL CONSIDERATION <br />• <br />ITEM DESCRIPTION: Resolution Designating Institutions as Depositories of City Funds for <br />Investment Purposes and Naming the Primary Depository for 2010 <br />DEPARTMENT HEAD'S APPROVAL: <br />CITY MANAGER'S APPROVAL: <br />No comments to supplement this report r,4 Comments attached <br />Recommendation: '� <br />To waive the reading and adopt the RESOLUTION DESIGNATING INSTITUTIONS AS <br />DEPOSITORIES OF CITY FUNDS FOR INVESTMENT PURPOSES AND NAMING THE <br />PRIMARY DEPOSITORY FOR 2010. <br />Legislative History: <br />None <br />Financial Impact: <br />None <br />Explanation: <br />Annually the City must authorize depositories for investment purposes and designate a primary <br />depository to provide traditional banking services such as checking, deposits, electronic transfers, etc. <br />The investment depositories are used to enable the City to invest its funds and maximize interest earnings <br />while minimizing investment risks. <br />Primary Depository. New Brighton has banked with US Bank, the City's current primary depository, <br />for more than ten years. By participating in the Minnesota Municipal Money Market Fund (4M Fund), <br />the City earns a competitive rate on its short term investments and incurs no charges for any of the <br />standard banking services such as electronic funds transfers, deposits, and check clearing. This is a <br />substantial savings to the City. The 4M Fund contract with the League of Minnesota Cities requires the <br />use of US Bank as primary depository in order to obtain these free services. The continuation of US Bank <br />as the primary depository for the City is recommended for 2010. <br />Investment Services. To ensure the highest rate of return on investments, rates are competitively <br />obtained from several institutions. The City has been well served by its current investment institutions: <br />RBC Capital Markets, Voyager Asset Management (4M Fund), Morgan Stanley Smith Barney, Wells <br />Fargo Securities LLC, Wells Fargo Advisors, and Piper Jaffray. <br />Kevin Mannetter <br />Assistant Finance Director <br />L\COUNC I L\REPOR I S\2010\Finance\10 Invest-deposit.doc <br />