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Authorized Depository InstitutionsMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Authorizing Depository Institutions DATE: May 30, 2012 Dubuque bierd All-America City 1 2007 Finance Director Ken TeKippe recommends City Council approval of a resolution increasing the maximum balance of City funds allowed to be deposited in Dubuque Bank and Trust to $60,000,000. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Kenneth J. TeKippe, Finance Director Masterpiece on the Mississippi TO Michael C Van Milligen, City Manager FROM Kenneth J TeKippe, Finance Director DATE May29,2012 SUBJECT Authorized Depository Institutions Dubuque had NI- America City 'I 1 1 I' 2007 INTRODUCTION Chapter 12C 2 of the Code of Iowa states that a public entity shall enter into the minutes of as governing body, by resolution or wntten statement, the name of each financial institution eligible for the deposit of public funds and the maximum amount authorized for deposit therein This procedure is required if a financial institution changes its name or home office location, if the maximum balance is changed, or if a financial institution is added or deleted DISCUSSION The attached resolution increases the maximum balance for Dubuque Bank and Trust The increase is requested to allow additional City funds to be deposited in Dubuque Bank and Trust The bank continues to submit the most favorable interest rates on certificates of deposit and investment of bond proceeds City will receive proceeds of approximately $14,000,000 for Series 2012 C and D bond issues in late June Should Dubuque Bank and Trust be successful in quoting a rate to the City this resolution would allow the funds to be invested with them Presently local financial institutions are not overly interested in holding City funds due to their loan demands or opportunity to invest funds short -term to provided desired margin The approval of the request allows the City to invest up to $60,000,000 with Dubuque Bank and Trust, up from $40,000,000 The most recent change to our authorized depository institutions was in June 2009 when BBVA Compass was added for collecting pet licenses ACTION TO BE TAKEN Please present the attached resolution to the City Council for consideration of approval If there are any questions on the resolution please contact me Thank you for your assistance Prepared by KT /eml Enclosure RESOLUTION NO. 135 -12 RESOLUTION NAMING DEPOSITORIES Whereas, Chapter 12C.2 of the 2201 Code of Iowa states that the approval of a financial institution as a depository shall be by written resolution or order which shall be entered of record in the minutes of the approving board, and which shall distinctly name each depository approved, and specify the maximum amount which may be kept on deposit in each depository; and Whereas, This procedure is required if a financial institution changes its name or home office location, if the maximum amount is changed, or if a financial institution is added or deleted. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the following financial institutions are approved to be depositories of the City of Dubuque, Iowa funds in conformance with all applicable provisions of the 2001 Iowa Code Chapter 12C.2. The City Treasurer is hereby authorized to deposit City of Dubuque, Iowa funds in amounts not to exceed the maximum approved for each respective financial institution as set out below. Depository Name American Trust & Savings Bank Dubuque Bank & Trust Company U.S. Bank Dupaco Community Credit Union Premier Bank East Dubuque Savings Bank Liberty Bank State Central Bank BBVA Compass Attest: Location of Home Office Maximum Balance Dubuque, Iowa Dubuque, Iowa Minneapolis, Minnesota Dubuque, Iowa Dubuque, Iowa Dubuque, Iowa Des Moines, Iowa Keokuk, Iowa Birmingham, Alabama Passed, approved and adopted this 4th day of June, 2012. "'Ale 4' As Kevin Fi nstahl, City lerk $40,000,000 $60,000,000 $40,000,000 $20,000,000 $20,000,000 $20,000,000 $20,000,000 $20,000,000 $ 100,000 Roy D. uol, Mayor