HomeMy WebLinkAbout04-23-18 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 March 31, 2018.
MEETING DATE: April 23, 2018
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Approve the depository bonds and pledged securities as of March 31,
2018.
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
FISCAL EFFECTS: None
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Attachments: Depository Bonds & Pledges Securities Report as of March 31, 2018
Report compiled on: April 4, 2018
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DEPOSITORY BONDS AND SECURITIES
AS OF
MARCH 31, 2018
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 06/29/18 524786 $ 12,000,000.00
TOTAL – US Bank $ 16,500,000.00
FIRST SECURITY BANK
All Accounts
Federal Deposit Insurance Corporation $ 250,000.00
Central noble IN 2012 BLDG PRO 07/15/2032 15464QDF3 $ 635,000.00
Celina TX ISD REF GO UNLTD BD 08/15/2033 151145NX3 $ 1,185,000.00
Celina TX ISD REF GO UNLTD BD 08/15/2034 151145NY1 $ 1,235,000.00
TOTAL - First Security Bank $ 3,305,000.00
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 March 31, 2018, by
the banks of Bozeman and approve and accept the same.
_____________________________________________
CYNTHIA L. ANDRUS, Mayor
_______________________________________ _______________________________________
CHRIS MEHL, Deputy Mayor I-HO POMEROY, Commissioner
_______________________________________ _______________________________________
JEFFREY K. KRAUSS, Commissioner TERRY CUNNINGHAM, Commissioner
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PLEDGED SECURITIES AND CASH IN BANK
As of
March 31, 2018
US BANK
Total Cash and CD's on Deposit $6,142,998.19
FDIC Coverage $500,000.00
Amount Remaining $5,642,998.19
Pledges Required 104% $5,868,718.12
Actual Pledges $12,000,000.00
Over (Under) Pledged $6,131,281.88
FIRST SECURITY BANK
CD's $3,264,337.52
FDIC Coverage $250,000.00
Amount Remaining $3,014,337.52
Pledges Required 50% $1,507,168.76
Actual Pledges $3,055,000.00
Over (Under) Pledged $1,547,831.24
REFERENCE: Section 7-6-207, M.C.A.
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