Laserfiche WebLink
Ci ty of <br />Pequot <br />Lakes - <br />AGENDA ITEM #10.2.A-D <br />REPORT TO <br />CITY COUNCIL <br />Report Prepared by: Sandy Peine & Nancy Malecha <br />Date: <br />Subiect: <br />July 2, 2013 <br />Investment Strategy <br />Report: For the past several months, we have been in contact <br />with several financial institutions regarding the establishment of an <br />investment strategy for the City's money. The purpose of this was <br />to earn better interest rates than the average .41 % we are earning <br />on the City's checking and money market accounts. We contacted <br />the 4M Fund, American National Bank, Lakes State Bank, and <br />Wells Fargo. After several discussions and meetings, we <br />recommend that the City enter into a contract with Wells Fargo to <br />invest $1,000,000 per the attached sample portfolio. (Please note <br />this portfolio is a sample only and the actual issuers may change.) <br />The total estimated coupon rate on the sample portfolio is 2.72%. <br />Wells Fargo's annual fee is .55% therefore; the total estimated net <br />coupon rate is 2.17%. <br />We also recommend that the City fund this investment portfolio by <br />closing money market account 4100011130 at American National <br />Bank ($591,606) and the remaining amount be funded from money <br />market account 504985 at Lakes State Bank ($408,394). <br />