HomeMy WebLinkAboutM-80-0076Joseph R. Grassie
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February 5, 1980
New Proposal:
The ininority banks were contacted and asked their thoughts on
the:. following:. proposal: Would they accept a percentage of.
each investment bid at the highest rate bid. The percentage.
to be determined by the ratio of their assets vs. the '`average
assets of all non -minority banks.
answers -.were,. -as
follows:
follows
1) ; Would not;, be interested if it were, mandatory to accept
part of an investment each time, it was offered.
2). Cheaper funds are available from other government agencies;
therefore, they would not be interested on a mandatory
basis.
In some cases, funds can be generated from severalsmall
investors at less expensive rates.
Recommendation: Since the minority: banks are unable to accept a percentage share
of any bid on a mandatorybasis, then the city should first con-
tact the minority banks before the bid and determine if they would
be'willing to accept a percentage of the bid offering at the
highest rate of interest offered on that bid. If they declinethe
offer, the bid will be conducted as usual. If they accept, the
funds will be reserved at the highest interestrate established
by the competitive bid.
JEG:hb
cc: Howard Gary, Assistant City Manager
Robert Burns, Assistant Finance Director