HomeMy WebLinkAbout[04f] Minnesota 4M Fund
Council Agenda Item 4f
MEETING DATE: June 18, 2018
AGENDA ITEM: Minnesota 4M Fund
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/A
PREVIOUS COUNCIL ACTION: Adopted Investment Policy.
BACKGROUND INFORMATION: Since 1987 Minnesota municipalities have had the option to
participate in the Minnesota Municipal Money Market (4M) Fund for cash management and investments.
The 4M Fund provides safety, daily liquidity and highly competitive yields. The 4M Fund also provides
investment opportunities in compliance with Minnesota Statutes. More information of the 4M Fund can
be found at www.4mfund.com.
One of the goals in the investment policy is to invest locally if rates of return are comparable. When the
Federal rates were at 0% since 2008, the rates were not much different between the 4M Fund and our
local financial institutions. Now that the Federal Reserve Bank has increased rates several times in the
past year, the rates of return (ROR) on money market accounts are showing larger differences. Staff is
requesting the option to place some of the City’s funds in the 4M Fund to maximize ROR. The local
institutions are working with the City to provide fair rates. The City will continue to place cash with
them also.
To place funds in the 4M Fund, council needs to consider adopting the attached resolution authorizing
membership in the 4M Fund. Also attached is the Declaration of Trust referred to in the resolution.
BUDGET/FISCAL IMPACT: varies
ATTACHMENTS: Request for Council Action: Minnesota 4M Fund
Resolution Authorizing Membership in the 4M Fund
Minnesota Secretary of State Declaration of Trust
REQUESTED COUNCIL ACTION: Consider adopting Resolution 2018-030 authorizing membership
in the 4M Fund.
RESOLUTION 2018-030
RESOLUTION AUTHORIZING MEMBERSHIP IN THE MINNESOTA MUNICIPAL
MONEY MARKET (4M) FUND
RECITALS:
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 and make
use from time to time including the 4M Liquid Asset Fund, the 4M Plus Fund, the Term Series,
the Fixed Rate Programs, and other Fund services offered by the Fund; and
WHEREAS, the City of St. Joseph deems it to be in the best interest to make use of, from
time to time, the approved services provided by the 4M Fund’s service providers including the
Investment Advisor (Prudent Man Advisors, Inc.) or Sub-Advisor (RBC Global Asset
Management (U.S.) Inc.), the Administrator (PMA Financial Network, Inc.), the Distributor
(PMA Securities, Inc.) or the Fixed Rate Program Providers, PMA Financial Network, Inc. and
PMA Securities, Inc., and the Custodian, U.S. Bank National Association, (“Service Providers”)
and/or their successors.
WHEREAS, the City of St. Joseph deems it advisable 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.
THEREFORE, IT IS HEREBY RESOLVED:
1. The City of St. Joseph 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 and the participation of all Fund programs.
2. The City of St. Joseph 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
officers of the City of St. Joseph on the next page, or their successors, are designated as
“Authorized Officials” with authority to effectuate investments and withdrawals in accordance
with the Declaration of Trust:
Richard Schultz, Mayor _________________________________________________________
Signature
Judy Weyrens, Administrator_____________________________________________________
Signature
Lorraine Bartlett, Finance Director_________________________________________________
Signature
3. The Trustees of the Fund are designated as having official custody of those monies invested in
accordance with the Declaration of Trust.
4. That the City of St. Joseph may open depository and other accounts, enter into wire transfer
agreements, safekeeping agreements, third party surety agreements securing deposits, collateral
agreements, letters of credit, lockbox agreements, or other applicable or related documents with
institutions participating in Fund programs including U.S. Bank National Association, or its
successor, or programs of PMA Financial Network, Inc. or PMA Securities, Inc. for the purpose
of transaction clearing and safekeeping, or the purchase of certificates of deposit (“CDs”) or other
deposit products and that these institutions shall be deemed eligible depositories for the
municipality. PMA Financial Network, Inc. and PMA Securities, Inc. and their successors are
authorized to act on behalf of this municipality as its agent with respect to such accounts and
agreements. Monies of this entity may be deposited in such depositories, from time to time in the
discretion of the Authorized Officials, pursuant to the Fund’s Programs available through its
Services Providers.
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Adopted this 18 day of June, 2018, by a vote of __ in favor and __ opposed.
CITY OF ST. JOSEPH
By ______________________________
Rick Schultz, Mayor
By ______________________________
Judy Weyrens, Administrator
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