1h. Approval of Resolution Authorizing Membership in 4M Fund
CITY OF
CBANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227,1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax. 952.227.1110
Public Works
1591 Park Road
Phone: 952.227,1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
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MEMORANDUM
TO:
Mayor
City Council Members
. it ~
Greg Sticha, Finance Director ~ clvT6/ ~
FROM:
DATE:
February 12, 2007
SUBJ:
Participation in 4M Fund
BACKGROUND
The Minnesota Municipal Money Market Fund-the 4M Fund-is a customized
cash management program created in 1987 by the League of Minnesota Cities.
Its purpose is to provide a unique investment alternative to address the daily and
long term investment needs of Minnesota cities and other municipal entities.
As a pooled asset fund, the 4M Fund brings cities and other municipal-related
public organizations together to create true "buying power" for investments. The
fund is governed and sponsored by the League of Minnesota Cities Board of
Directors.
The fund is comprised of 280 cities and 343 total members that keep an average
balance of anywhere from a few thousand dollars to several million. Nearly all
metro cities currently are participants. The fund earns an average of 10-15 basis
points above the short term money markets offered by the city's investment
brokers. There are no fees associated with participating in the 4M Fund.
It is our intent to use the 4M fund to keep short term cash for operations. I
anticipate keeping a balance of around a half million to one million dollars for
this purpose. This will earn the city an extra $1,000 to $1,500 on an annual
basis.
RECOMMENDATION
Approve the attached resolution to allow for participation in the 4M fund.
A TT ACHMENTS
1. Resolution Authorizing Membership in the 4M Fund
The City of Chanhassen . A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE:
RESOLUTION NO:
2007 -
MOTION BY:
SECONDED BY:
RESOLUTION AUTHORIZING MEMBERSHIP IN THE 4M FUND
WHEREAS, Minnesota Statutes (the Joint Powers Act) provides that governmental units
may jointly exercise any power common to the contracting parties; and
WHEREAS, the Minnesota Municipal Money Market Fund (the 4M Fund) was formed
in 1987, pursuant to the Joint Powers Act and in accordance with Minnesota Investment Statutes,
by the adoption of a joint powers agreement in the form of a Declaration of Trust; and
WHEREAS, the Declaration of Trust, which has been presented to this council,
authorizes municipalities of the State of Minnesota to become Participants of the Fund, to
include the Fixed Rate Program; and
WHEREAS, this Council deems it advisable for this municipality to enter into the
Declaration of Trust and become a Participant of the Fund for the purpose of joint investment
with other municipalities so as to enhance the investment earnings accruing to each.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. This municipality shall become a Participant of the Fund and adopt and enter
into the Declaration of Trust, a copy of which shall be filed in the minutes of this meeting. The
appropriate officials are hereby authorized to execute those documents necessary to effectuate
entry into the Declaration of Trust.
Section 2. This municipality is authorized to invest monies from time to time and to
withdraw such monies from time to time in accordance with the provisions of the Declaration of
Trust. The following officers of the municipality are designated as "Authorized Officials" with
authority to effectuate investments and withdrawals in accordance with the Declaration of Trust:
Greg Sticha, Finance Director Signature:. ~
Todd Gerhardt, City Manager
Signature:
(Additional names may be added on a separate list. The treasurer shall advise the Fund of any
changes in Authorized Officials in accordance with Fund procedures.)
Section 3. The Trustees of the Fund are designated as having official custody of those
monies invested in accordance with the Declaration of Trust.
Section 4. State banks, national banks, and thrift institutions which qualify as
depositories under Minnesota law and are included on a list approved and maintained for such
purpose by the Investment Advisor of the Fund are hereby designated as depositories of this
municipality.
Passed and adopted by the Chanhassen City Council this 12th day of February, 2007.
ATTEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
YES
NO
ABSENT