HomeMy WebLinkAbout10-24-16 CC Mtg - C2. Sub-Committee for Bonds and Securities
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Laurae Clark, Treasurer
Anna Rosenberry, Finance Director
SUBJECT: Appoint a sub-committee of two commissioners to review pledged securities as of September 30, 2016.
MEETING DATE: October 24, 2016
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Appoint Mayor Taylor and Deputy Mayor Andrus to review the
depository bonds and pledged securities as of September 30, 2016.
SUGGESTED MOTION: Motion to approve the appointment of Mayor Taylor and Deputy
Mayor Andrus to review the depository bonds and pledged securities as of September 30, 2016.
BACKGROUND: 17-6-102. Insurance on deposits. (1) Deposits in excess of the amount insured by the federal deposit insurance corporation or the national credit union administration
may not be made unless the bank, building and loan association, savings and loan association, or
credit union first delivers to the state treasurer or deposits in trust with some solvent bank, as
security therefore, bonds or other obligations of the kinds listed in 17-6-103, having a market
value equal to at least 50% of the amount of the deposits in excess of the amount insured. The board of investments may require security of a greater value. When negotiable securities are placed in trust, the trustee's receipt may be accepted instead of the actual securities if the receipt
is in favor of the state treasurer, successors in office, and the state of Montana and the form of
receipt and the trustee have been approved by the board of investments.
(2) Any bank, building and loan association, savings and loan association, or credit union pledging securities as provided in this section may at any time substitute securities for any part of the securities pledged. The substituted collateral must conform to 17-6-103 and have a market
value at least sufficient for compliance with subsection (1). If the substituted securities are held
in trust, the trustee shall, on the same day the substitution is made, forward by registered or
certified mail to the state treasurer and to the depository financial institution a receipt specifically describing and identifying both the securities substituted and those released and returned to the depository financial institution.
Section 7-6-207 (2), MCA requires the City Commission to approve pledged securities at least
quarterly. The Commission appoints two commissioners quarterly on a rotating basis. UNRESOLVED ISSUES: None
ALTERNATIVES: As suggested by the City Commission.
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FISCAL EFFECTS: None
Attachments: Depository Bonds and Securities Report as of September 30, 2016
Report Compiled on: October 10, 2016
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DEPOSITORY BONDS AND SECURITIES
AS OF
SEPTEMBER 30, 2016 MATURITY CUSIP NO/LOC NO. TOTAL AMOUNT
US BANK
All Accounts
Federal Deposit Insurance Corporation-Operating Accts $ 250,000.00 Federal Deposit Insurance Corporation-CD $ 250,000.00 LOC-FHLB Cincinnati 11/01/2016 520357 $ 12,000,000.00 TOTAL – US Bank $ 12,500,000.00 FIRST SECURITY BANK All Accounts Federal Deposit Insurance Corporation $ 250,000.00 Federal Home Loan Bank 12/09/2016 313371PV2 $ 2,000,000.00 Federal Home Loan Bank 04/05/2019 3130A7PW9 $ 1,000,000.00 TOTAL - First Security Bank $ 3,250,000.00
This is to certify that we, the Commission of the City of Bozeman, in compliance with the provisions of Section 7-6-207, M.C.A., have this day certified the receipts of the First Security Bank and US Bank, for the Depository Bonds held by the Director of Finance as security, for the deposit for the City of Bozeman funds as of September 30, 2016, by the banks of Bozeman and approve and accept the same. _____________________________________________ CARSON TAYLOR, Mayor _______________________________________ _______________________________________ CYNTHIA L. ANDRUS, Deputy Mayor CHRIS MEHL, Commissioner _______________________________________ _______________________________________ JEFFREY K. KRAUSS, Commissioner I-HO POMEROY, Commissioner
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PLEDGED SECURITIES AND CASH IN BANK
As of
September 30, 2016
US BANK Total Cash and CD's on Deposit $8,386,071.14
FDIC Coverage $500,000.00
Amount Remaining $7,886,071.14 Pledges Required 104% $8,201,513.99 Actual Pledges $12,000,000.00 Over (Under) Pledged $3,798,486.01 FIRST SECURITY BANK
CD's $5,400,036.00 FDIC Coverage $250,000.00
Amount Remaining $5,150,036.00 Pledges Required 50% $2,575,018.00 Actual Pledges $3,000,000.00 Over (Under) Pledged $424,982.00
REFERENCE: Section 7-6-207, M.C.A.
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