HomeMy WebLinkAbout07-30-07 Item 4J, Resolution 07-63 Additional Brokerage Firm for Investments
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~HILLS
Request for Council Action
6~e~":red By: .~~:~~:son ~
Council Mtg. Oate:.. ........ ............. ::~uj},.3Q,:?@...........
Final Action Needed By: ~ 30, 2007
Agenda Item:
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Funding Source: """""__________ _............"..""."."."_____ N/A
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! Motion to approve Resolution #07.63 Designating An Additional Brokerage Firm For Investment Purposes.
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i Staff recommends a motion to approve Wachovia Securities, LLC as an additional brokerage firm for investment purposes.
X Memo dated July 24, 2007
X No.: 07-63 A Resolution Designating An Additional Brokerage Firm For Investment Purposes
No.:
l:.I1Y"lt:::t:::1II IY Recommendation:
Recommendation:
Other:
This brokerage firm provides additi'o-naCinvestmenT'optlonsmfc)"r"'fhe--Cit}i"'f:o""maxlm-jze--the"'ea'rriing--potiirl'tiiforthe""ciiY's"-i'dfe-c:a's'h'""whlle----
maintaining the liquidity of City funds.
None.
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~HILLS
MEMORANDUM
DATE:
July 24, 2007
4J
TO: Honorable Mayor and City Council
Michelle Wolfe, City Administrator
FROM: Sue Iverson, Finance Director
SUBJECT: Designating Wachovia Securities as an Additional Brokerage Firm
BackgroundJDiscussion:
Annually, the City Council designates official depositories and brokerage firms for investment of
City funds. During the audit, it was found that one of the City's financial brokerage accounts
had a fund that was not rated and compliant with State Statute. This same firm typically had a
lower rate of return as other firms, in that they charge a higher commission/fee amount which
lowers the yield on accounts. I would like to transfer these accounts to Wachovia Securities, a
firm that I have experience with. In my dealings with this company they have always been very
professional and acted with the City's best interest in mind.
With the approval of the City's new Investment Policy, I would like to get the portfolio invested
at the best return and in the best interests of the City.
Staff Recommendation:
Staff recommends approval of Resolution 07-63, a resolution designating an additional
brokerage firm for investment purposes, which includes Wachovia Securities, LLC.
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~HILLS
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION NO. 07-63
RESOLUTION DESIGNATING BROKERAGE FIRMS FOR INVESTMENT IN
FINANCIAL INSTRUMENTS AUTHORIZED BY STATE STATUTE
CONSISTENT WITH THE CITY INVESTMENT POLICY
WHEREAS, it is desirable to invest City funds at the highest available interest rate;
NOW THEREFORE, BE IT RESOLVED that effective this date, the following additional
brokerage firm is designated for the sole purpose of investing City funds in Federal government
instruments or other authorized investments allowed by State statutes and consistent with the formal
investment policy of the City:
Wachovia Securities, LLC
BE IT FURTHER RESOLVED, that the Treasurer is authorized to take whatever actions
are necessary to make investments at the aforesaid brokerage firm and to ascertain that adequate
security, as required by the laws of the State of Minnesota, is furnished by the issuing bank or
savings and loan to protect the City's deposited funds against financial loss; and
BE IT FURTHER RESOLVED, that no collateral be required for Federal government
instruments since these investments are backed by the full faith and credit of the United States
government.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 30th
DAY OF JULY, 2007.
Stanley D. Harpstead, Mayor
ATTEST:
Michelle A. Wolfe, Administrator