1993-07-26 Regular Meeting - Laserfiche WebLink

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• ~ REQUEST FOR CITY COUNCIL AGENDA ITEM AGENDA DATE REQUESTED July 26, 1993 REQUESTED BY Robert T. Herrera DEPARTMENT City Manager REPORT EXHIBITS: Resolution Agreement XX RESOLUTION ORDINANCE SUMMARY AND RECOMMENDATION In March of 1993, the City was approached by the La Porte Volunteer Fire Department (LPVFD) about the City serving as their Trustee. At the time, they had certain funds they had accumulated over the years and were distraught with the interest earnings they were receiving in the open market (Certificates of Deposit). The LPVFD indicated the funds were the result of past fund raisers and they used the interest off of the funds to pay for certain insurance premiums for the department. The drastic decline in Certificate of Deposit rates has greatly reduced the amount of interest available for the policies. They LPVFD desired to piggy back off of the City's investment operation. In March, the Director of Finance visited with members of the LPVFD and accepted funds totaling $55,000 contingent upon the City and the LPVFD reaching an written agreement as to rights and responsibilities. Since March, the LPVFD has been credited with interest earnings on the amount we have obtained from them. The rates they have earned, compared with the open market, are: City Open Market March 5.29 3.00 April 6.37 2.97 May 5.75 2.92 June 8.31 3.08 While no guarantees are expressed or implied on future interest rates, the City expects to continue their trend of earning more than the open market. LPVFD funds will not be commingled with City Funds. They will be shown as funds escrowed for the LPVFD and will have no impact on the City's Financial Statements. The attached contract has been reviewed and signed by the LPVFD. ACTION REQUIRED BY COUNCIL: Approve or disprove the Resolution authorizing the City of La Porte to serve as Trustee for the La Porte Volunteer Fire Department. AVAILABILITY OF FUNDS: GENERAL FUND UTILITY FUND OTHER ACCOUNT NUMBER: N1A FUNDS AVAILABLE: YES NO APPROVED FOR CITY COUNCIL AGENDA ~ T- ~~ -~ ~aa~g~ ROBERT T HERRERA li?i'1'E CITY MANAGER