3.4 Amending Designated Depositories and Investment Brokers
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty August 14, 2023
PRESENTER(s) REVIEWED BY: ITEM #:
Consent 3.4 – Depositories and Brokers
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends that the City Council adopt a resolution amending designated depositories and investment
brokers.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
On January 9, 2023, the City Council adopted Resolution 2023-02 designating depositories and approving investment
brokers for 2023 in accordance with Minnesota Statute and City Policy.
The amended resolution is the result of one of the brokers changing brokerage firms. As a result of that change, City staff
no longer have any existing relationships with investment brokers of said firm. With the broker assigned to the City’s
account being located outside of Minnesota, City staff will not effectively be able to develop a relationship, and therefore
are also recommending a change in the custody account.
In accordance with Minnesota State Statute §118A.02, the City Council shall designate, as a depository of City funds, one
or more financial institutions. The listed depositories and the accounts at each are:
1) Bank of Elk River – Checking Account
2) Minnesota Municipal Money Market Fund (4M Fund) – Money Market Accounts
3) RBC Capital Markets, LLC – Custody Account for City’s Investment Portfolio
In accordance with the City’s Investment Policy, the City Council shall approve the investment brokers to be used for the
purpose of investing public monies. The firms and individual brokers are:
1) RBC Capital Markets, LLC – Reid Christianson
2) Oppenheimer & Co., Inc. – Chris Sullivan
3) Moreton Capital Markets – Lynn Cornwell
4) PMA Financial Network, Inc. – Corey Boyer
It should be noted that in accordance with the City’s investment policy, any investment security that is purchased
through any of the brokers listed above will be held in one centralized custody account with RBC Capital Markets, LLC.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2023-49
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Resolution 2023-49 designating depositories and approving investment brokers.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2023-49
AMENDING DESIGNATED DEPOSITORIES AND INVESTMENT BROKERS
WHEREAS, the Otsego City Council must on an annual basis designate one or more financial institutions as a depository of City
funds in accordance with Minnesota Statute §118A.02, Subdivision 1; and
WHEREAS, the Otsego City Council must on an annual basis authorize the investment brokers for the purpose of investing
public monies in accordance with the City’s investment policy; and
WHEREAS, the Otsego City Council designated depositories and investment brokers on January 9, 2023; and
WHEREAS, the City has amended depositories and investment brokers.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. That the following financial institutions are designated as depositories of City funds:
a. The Bank of Elk River
b. Minnesota Municipal Money Market Fund (4M Fund)
c. RBC Capital Markets, LLC
2. That the following investment brokers are approved for the purpose of investing public monies:
a. RBC Capital Markets, LLC
b. Oppenheimer & Co., Inc.
c. Moreton Capital Markets
d. PMA Financial Network, Inc.
3. That Resolution 2023-02 is hereby superseded by this Resolution.
2
ADOPTED by the Otsego City Council this 14th day of August, 2023.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk