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M <br />January 1986 <br />TO: Jim Andre <br />City, Manager <br />From: Ed, Burrell, <br />Finance Diriectillor <br />RE:11 City Bianking, procedurel <br />The Colunciii had expressed some iinterest i,n being briefed about <br />tihe City's, banking and cash management procedures, It seemed <br />appropriate for me to summarize some of this information for you <br />4 <br />in, wr in t i ng <br />Beicause of' the growth of such compeve money markets, public <br />funds, now find 'they must actively manage their funds and <br />C 4 <br />a shf1 ow For example where it is possible many <br />munici'pal i4ties secu,rie competitive bids for their investments, <br />I <br />checking accounts, and many other financial services, <br />Rol si e vi 11 le currently does business only with banks with-in thit <br />community and to the best of my knowledge, we are not "charged'-' <br />tiorectl,y for any normal services renderedf <br />All of the, City"s bank accountis are interest bearing and a <br />current, rates , they apear to be compet'tive <br />stay compeltit,ive we P do have 1 Should they no <br />1 , tihe option of returning t <br />collateral'zed. relplurcihase agreements,, which on occasion do Pa <br />higher rates. <br />It has, been and certainly shou,ld be City policy to invest only in <br />collateralized. bank, Certif icatesi of' Deposit or U, s guaranteed <br />treasuries and agenicies . While the return 'is not always the <br />gri e at e st , the, risk 'is nearly zero, and in the handling of public <br />funds, risk is something we need tio allways consider, <br />