Agenda Item# 5
Columbus Consolidated Government
Council Meeting
November 14, 2017
Agenda Report # 47
TO: Mayor and Councilors
SUBJECT: Collateralization Method Change
INITIATED BY: Finance Department
Recommendation: Approval is requested authorizing the City?s participation in
the State?s Pooled Secure Deposit Program for the collateralization of public
funds.
Background: Georgia Law requires banks to collateralize the deposits of public
bodies up to 110% of the deposit. Presently, the City?s deposits are
collateralized using a dedicated collateralization method. However, the City?s
contracted banking services vendor, Synovus Bank, can no longer offer the
dedicated method of collateralization due to its participation in the State?s
Secure Deposit Program. Synovus Bank has been accepted into the State?s
multibank contingent pledging pool and will be participating in the Pooled
Secure Deposit Program for the collateralization of public funds as of January
1, 2018.
Analysis: The pooled collateralization method has no significant impact as to
when or how deposits are collateralized since the bank has advised that all
monitoring, reporting, and custodial requirements will be virtually the same
under the pooled method as it was under the dedicated method.
Financial Considerations: There are certain risks associated with
participating in the pooled collateralization method that could cause public
funds to be uncollateralized for a period of time due to bank failure. However,
the same risk of un-collateralization exists under the dedicated method in the
event of bank failure.
Legal Considerations: Council approval is requested to authorize participation
in the pooled method for collateralization of public funds.
Recommendations/Actions: Approve a resolution authorizing the City?s
participation in the State?s Pooled Secure Deposit Program for the
collateralization of public funds.
A RESOLUTION
NO. ________
A RESOLUTION AUTHORIZING THE CITY?S PARTICIPATION IN THE STATE?S POOLED SECURE
DEPOSIT PROGRAM FOR THE COLLATERALIZATION OF PUBLIC FUNDS.
WHEREAS, Georgia Law requires banks to collateralize the deposits of public
bodies up to 110% of the deposit; and,
WHEREAS, the City?s contracted banking services vendor, Synovus Bank, can no
longer offer the dedicated collateralization method due to its acceptance into
the State?s multibank contingent pledging pool and its participation in the
Pooled Secure Deposit Program; and,
WHEREAS, Synovus Bank, will be participating in the Pooled Secure Deposit
Program for the collateralization of public funds as of January 1, 2018;
NOW THEREFORE THIS COUNCIL HEREBY RESOLVES:
That the City Manager is authorized to sign the attached agreement with the
Georgia Bankers Association Services, Inc to participate in the pooled method
for collateralization of public funds.
______________
Introduced at a regular meeting of the Council of Columbus, Georgia held on the
14th day of November, 2017, and adopted at said meeting by the affirmative vote
of ______ members of Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_______________________________ __________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
Attachments