HomeMy WebLinkAbout08-14-17 City Commission Packet Materials - C2. Approval of Depository Bonds and Pledged Securities
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Laurae Clark, Treasurer
Kristin Donald, Finance Director
SUBJECT: Approval of depository bonds and pledged securities as of June 30, 2017. MEETING DATE: August 14, 2017
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Approve the depository bonds and pledged securities as of June 30, 2017. SUGGESTED MOTION: Motion to approve the depository bonds and pledged securities as of June 30, 2017.
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. UNRESOLVED ISSUES: None ALTERNATIVES: As suggested by the City Commission
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FISCAL EFFECTS: None
Attachments: Depository Bonds & Pledges Securities Report as of June 30, 2017 Report compiled on: July 24, 2017
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DEPOSITORY BONDS AND SECURITIES
AS OF
JUNE 30, 2017
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 05/01/2017 522866 $ 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 11/16/2018 3133EGJ48 $ 3,000,000.00
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 June 30, 2017, 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
June 30, 2017
US BANK
Total Cash and CD's on Deposit $6,296,718.02
FDIC Coverage $500,000.00
Amount Remaining $5,796,718.02
Pledges Required 104% $6,028,586.74
Actual Pledges $12,000,000.00
Over (Under) Pledged $5,971,413.26
FIRST SECURITY BANK
CD's $5,418,526.78
FDIC Coverage $250,000.00
Amount Remaining $5,168,526.78
Pledges Required 50% $2,584,263.39
Actual Pledges $3,000,000.00
Over (Under) Pledged $415,736.61
REFERENCE: Section 7-6-207, M.C.A.
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