12-04-2023 City Council Minutes - Laserfiche WebLink

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City Council Minutes December 4, 2023 Page 2 of 9 ----------------------------- Mayor Gardner explains the City must have insurance for the funds that are in the accounts. He states they now have a new option to protect our funds. Ms. Tappe presents a new option called IntraFI. It gives both the City and the bank more flexibility with the funds but also continues to have FDIC coverage. Ms. Tappe explains anything over the $250k automatically sweeps over to IntraFi who then farms it out to other banks, then making all funds 100 percent covered. She states this has been around for many years. Through research, they found this option is just as good, if not better for public funds. It gives the same coverage in a more user-friendly way. Ms. Tappe also explains that the City can make a slow transition with the process, as needed. The bank would have accounts ready before the first of the year if the City is ready to move forward immediately. She states they will leave the current pledging in place until they can verify that everything is moved over and the to ensure the sweeps are working correctly. The City would receive monthly statements that map out the exact banks that the monies are being held in. Council Member Ronning inquires of how long this program has been around and what level of trust there is for it. He also asks if other cities use this. Ms. Tappe responds stating they have done trial runs with more of the private sector first to be sure they have everything covered and to ensure everything was working properly. Ms. Tappe states that the City’s letter of credit matures and that one million dollars comes due on December 19th with the current set up. Mayor Gardner clarifies that this program does not cost the City anything to be part of moving forward. Discussion ensues on the security of this program versus what the City is currently using. Ms. Tappe explains that it is more consistent with auto sweeps moving money to a protected account, not necessarily more secure. This program will eliminate the need to constantly monitor account balances and manually transfer funds. It will eliminate some of the man hours put into continuous monitoring of accounts and balances. Ms. Tappe clarifies the CD will not be moving yet, so that would still require the pledges, as it has needed previously. COUNCIL MEMBER RONNING MOVES TO TRANSITION TO THE INFTRAFI PROGRAM. COUNCIL MEMBER PEDERSON SECONDED THE MOTION. MOTION CARRIED 3-0. 5.2. EDC Update Michelle updates on the EDC. At the last meeting it was discussed to have a special session on December 12th, that was approved, to go over the idea of the EDC taking over some marketing for Trailside Estates. It would be open to the public to come in and voice opinions and potentially pick a realtor. It would also be a date for potential discussion of the EDC website. Some of the ideas