AGENDA MEMORANDUM

 

 

Meeting Date:           January 24, 2011

 

From:                          Jerry Boop, CPA, CGFO, Finance Director

 

Subject:                      Resolution Designating Authorized Signatories on Branch Banking & Trust, Co., (BB&T) Certificates of Deposit

 

 

 

Staff Recommendation:

Staff recommends adoption of the proposed BB&T Resolutions for Deposit authorizing signatures on Certificates of Deposit.

 

Analysis:

The proposed Resolution designates the current Mayor, City Manager, and Finance Director as authorized signatories for BB&T Certificate of Deposit accounts.  Staff requested the City’s Investment Advisors, Davidson Fixed Income Management, (DFIM) to find a safe, liquid investment opportunity for the City’s funds.  DFIM performed due diligence in screening banks offering reasonable interest rates on Certificates of Deposit, and it was determined that BB&T offered a decent rate at low risk.  BB&T is recognized as a Qualified Public Depository (QPD) by the State of Florida.  The QPD designation provides assurance to the investor that the State would make whole any investments should the institution fail.  The City invested $2,000,000 and $4,000,000 for periods of one and five years respectively to capture existing optimal rate yields.  The interest rates earned on the Certificates are .69% and 2.10%.  The Certificates of Deposit were purchased to earn low risk interest from funds currently earning .18% interest.  The Certificates of Deposit are listed as authorized investments within the City’s investment policy.

 

Authorized signatories:

            Bill Polk, Mayor

            Jay Evans, City Manager

            Gerald Boop, Finance Director

 

Options:        

1.   Adopt the resolution as presented; or

2.   Such alternative action as the Commission may deem appropriate.           

 

 

Fiscal Impact

The City will recognize a higher yield or rate of return of .51%  and 1.92% respectively on its investments. 

 

 

Submission Date and Time:    1/19/2011 4:22 PM____

 

Department: ____Finance___________

Prepared by:  ____Puggy Johnson______                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                 

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head __JB____

 

Finance  Dept. ______JB__________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY OF LEESBURG CITY COMMISSION, AUTHORIZING BRANCH BANKING & TRUST CO., (BB&T), TO HONOR ALL REQUESTS FOR  PURCHASE OF CERTIFICATES OF DEPOSIT IN THE NAME OF THE CITY OF LEESBURG; DESIGNATING THE INDIVIDUALS AUTHORIZED AS SIGNATORIES FOR THE PURCHASE OF SAID CERTIFICATES OF DEPOSIT ON BEHALF OF THE CITY OF LEESBURG, AND PROVIDING A SAMPLE OF SAID INDIVIDUALS SIGNATURE;  AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            WHEREAS, Branch Banking & Trust Co. (BB&T), whose address is 255 S. Orange Avenue, 10th Floor, Orlando, FL 32801 has qualified as a City depository pursuant to the provisions of Chapter 280, Florida Statutes; and,

 

            WHEREAS, inasmuch as BB&T has been designated as a qualified depository for City of Leesburg Funds, the Commission desires by means of this resolution to authorize said depository to issue Certificates of Deposit in the name of the City of Leesburg, Florida, upon receipt of such necessary funds.  Said Certificates of Deposit are listed as authorized investments within the City’s investment policy.

 

            WHEREAS, BB&T has requested that the Commission provide a sample of the signatures of the Mayor, City Manager, and Finance Director of the City of Leesburg, Florida to facilitate the above referenced transactions. 

 

            NOW THEREFORE, BE IT RESOLVED by the Commission, in and for the City of Leesburg, Florida as follows:

 

1.         That BB&T, as a designated depository of the  City of Leesburg, is hereby requested, authorized, and directed to issue Certificates of Deposit as authorized by the Mayor, City Manager, and/or Finance Director when bearing or purporting to bear the actual or facsimile signature of one of the following individuals:

 

Bill Polk, Mayor

City of Leesburg, Florida

 

Jay Evans, City Manager

City of Leesburg, Florida

 

Jerry Boop, Finance Director

            City of Leesburg, Florida

 


 

2.    That, upon adoption by the Commission in open session, this resolution shall be made a part of the Public Records of the City of Leesburg, Florida, and a copy hereof shall be furnished to SunTrust Bank, N.A..

 

5.    This Resolution shall take effect immediately.

           

            PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _24th___ day of January, 2011

                                                                      

 

                                                                             _________________________________

                                                                             Mayor

ATTEST:

 

 

­_____________________________________

City Clerk