HomeMy WebLinkAboutC8 Sub-Committee
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, 2015.
MEETING DATE: November 16, 2015
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Appoint Mayor Krauss and Commissioner Pomeroy to review the
depository bonds and pledged securities as of September 30, 2015.
SUGGESTED MOTION: Motion to approve the appointment of Mayor Krauss and
Commissioner Pomeroy to review the depository bonds and pledged securities as of September
30, 2015.
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 therefor, 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
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ALTERNATIVES: As suggested by the City Commission.
FISCAL EFFECTS: None
Attachments: Depository Bonds and Securities Report as of September 30, 2015
Report Compiled on: November 5, 2015
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DEPOSITORY BONDS AND SECURITIES
September 30, 2015
MATURITY CUSIP NO/LOC NO. TOTAL AMOUNT
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 05/15/2016 61212LJR1 $ 1,000,000.00
TOTAL - First Security Bank $ 3,250,000.00
US BANK
All Accounts
Federal Deposit Insurance Corporation-Operating Accts $ 250,000.00
Federal Deposit Insurance Corporation-CD $ 250,000.00
LOC-FHLB Cincinnati 11/13/2015 518626 $ 3,000,000.00
LOC-FHLB Cincinnati 10/01/2015 518307 $ 10,000,000.00
TOTAL – US Bank $ 13,500,000.00
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, 2015,
by the banks of Bozeman and approve and accept the same.
_____________________________________________
JEFFREY K. KRAUSS, Mayor
_______________________________________ _______________________________________
CARSON TAYLOR, Deputy Mayor CHRIS MEHL, Commissioner
_______________________________________ _______________________________________
CYNTHIA L. ANDRUS, Commissioner I-HO POMEROY, Commissioner
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PLEDGED SECURITIES AND CASH IN BANK
As of
September 30, 2015
___ First Security Bank _______
Total
Cash & CD’s on Deposit
As of September 30, 2015 $ 5,371,463.54
FDIC Coverage $ 250,000.00
Amount Remaining $ 5,121,463.54
Pledges required 50% $ 2,560,731.77
Actual Amount of Pledges
As of September 30, 2015 $ 3,000,000.00
Over (Under) Pledged
As of September 30, 2015 $ 439,268.23
_____ US Bank ______ _______
Total
Cash on Deposit
As of September 30, 2015 $ 9,245,399.44
FDIC Coverage $ 500,000.00
Amount Remaining $ 8,745,399.44
Pledges required104% $ 9,095,215.42
Actual Amount of Pledges
As of September 30, 2015 $ 13,000,000.00
Over (Under) Pledged
As of September 30, 2015 $ 3,904,784.58
REFERENCE: Section 7-6-207, M.C.A.
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