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COUNCIL COMMUNICATION
City Manager’s Office
GENERAL INFORMATION
Agenda Date: 12/19/05 Communication No.: 05-703
Agenda Item Type: Resolution Roll Call No.:
Submitted by: Merrill Stanley, Assistant City Manager/Finance Director
SUBJECT—
Approving Banks to be Used as Depositories for City Funds.
SYNOPSIS—
Per the City’s investment policy and state law, the City Council is required to approve a list of authorized depositories and the maximum amounts allowed at each. The list of approved institutions is updated periodically as the need arises. Two of the depositories on the City’s current list have changed their names, therefore the list must be updated.
FISCAL IMPACT—
None
RECOMMENDATION—
Approval
BACKGROUND—
Chapter 12C of the Code of Iowa requires that cities designate the financial institutions to be used as depositories of city funds and specify the maximum amount which may be kept on deposit in each institution. This designation applies to banks that hold operating accounts, checking and savings, as well as certificates of deposits. Bankers Trust has been selected as the bank that will be used for all operating accounts, and therefore is recommended to receive approval for a higher limit than other banks. Other banks listed will be included as potential depositories for the purchase and investment in certificates of deposit.
Bank Maximum Authorized Deposit
Bank of America $ 50,000,000
Bankers Trust $100,000,000
Bank of the West $ 50,000,000*
Community State Bank $ 15,000,000
First American Bank $ 15,000,000
First Bank $ 15,000,000
Fort Des Moines Community Bank $ 15,000,000
Iowa State Bank $ 15,000,000
Metabank $ 15,000,000
Principal Bank $ 15,000,000
U.S. Bank $ 50,000,000
Regions Bank $ 50,000,000*
Wells Fargo Bank Iowa $ 50,000,000
West Bank $ 50,000,000
*This list reflects name changes made to two banks. Commercial Federal Bank became Bank of the West on December 2, 2005, and Union Planters Bank became Regions Bank on November 4, 2005.