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File #: RES 19-183    Version: 1 Name: Authorize Participation in ICS at 21st Century Bank
Type: Resolution Status: Passed
File created: 11/18/2019 In control: City Council
On agenda: 11/18/2019 Final action: 11/18/2019
Title: AUTHORIZE BLAINE'S PARTICIPATION IN THE INSURED CASH SWEEP PROGRAM AT 21ST CENTURY BANK
Sponsors: Joe Huss
Attachments: 1. ICS Agreement-21st Century Bank

ADMINISTRATION - Joe Huss, Finance Director

 

Title

AUTHORIZE BLAINE’S PARTICIPATION IN THE INSURED CASH SWEEP PROGRAM AT 21ST CENTURY BANK

 

Background

In 2015, after a comprehensive Request for Proposals process, the Council named US Bank Investments as the City’s authorized Investment Portfolio Manager.  At that time, the City Council also directed staff to seek opportunities to invest a portion of the portfolio within the community.  In conjunction with that direction, Finance has invested between 1-2% of its portfolio locally. Due to FDIC restrictions and statutory collateral requirements, it has been difficult to expand those opportunities beyond that level.  However, 21st Century Bank, Blaine’s main depository, has developed a program called Insured Cash Sweep (ICS) that will allow the City to expand its local portfolio and keep a higher percentage of City funds within the community.

 

The City will look to place and maintain between $4-5 million (4-6%) of its current investment portfolio in the ICS program.  Investments placed in the ICS program will earn a competitive interest rate and will be readily available for transfer to the City’s checking account, thus providing for better cash-flow planning and overall investment earnings.

 

Recommendation

Staff recommendation is for Council to adopt the following resolution.

 

Body

WHEREAS, the investment of public funds requires maintaining the highest level of care to safeguard principal and maintain liquidity while providing an adequate rate of return; and

 

WHEREAS, the City’s investment portfolio is designed to achieve these goals; and

 

WHEREAS, the Blaine City Council has expressed the desire to set aside a portion of the City’s portfolio for investing locally; and

 

 WHEREAS, 21st Century Bank, the City’s main depository of funds, has established an Insured Cash Sweep (ICS) program that allows for the achievement of these goals; and

 

WHEREAS, the City Council desires to maintain a balance in the ICS program of up to 6% of the City’s portfolio;

 

NOW, THEREFORE, BE IT RESOLVED, that the Blaine City Council authorizes an initial deposit of up to $4 million in City funds in the ICS program and authorizes the Mayor and City Manager to execute the agreement as presented.

 

PASSED by the City Council of the City of Blaine this 18th day of November, 2019.