HomeMy WebLinkAboutM-75-0281F.
.�tTY 01 ;•1;:4h11. FLORIDA
iN7r77-3 F I EE MEMOR:'‘.NNNDU`A
O:
Honorable Members of the
City Commission
MAR 25'
City Deposits in Minority Banks
Fao'+: ' ' °"""�F=rEAE`CE3Agenda Item 45 (a)
P. W. Andrews
City Manager ENCLOSURES:
At its meeting on March 12, 1975, the City Commission adopted Motion No. 75-246
referring to the City Manager for investigation and report the matter of City
deposits in minority banks in the City of Miami. _
The City Code prescribes the procedure to be followed by the City in the
depositing, investing and expending of funds received by the City. It desig-
nates the banks into which deposits are made as received by the City and
provides for rotating among nine banks the City's regular checking account an
an annual basis.
In an effort to provide more participation in the City's annual checking account
activity by all of the minority banks in the City, the activities and purposes
have been analyzed, and the results of the study are along the following lines:
The minority banks can qualify for further participation by amending
the City Code relating to the present method of handling the City's
cash deposits and expenditures. There are three minority banks
presently on the list supplied by the United States Government
(Executive Order#11625) located in the City of Miami. They are
Republic National Bank, The Bank of Miami and Continental National
Bank. These banks could be listed as a separate category in the
Code, relating to handling of the City's deposits, and rotation
of banks.
At the present time the minority banks are urged to participate in the City's
distribution of Certificates of Deposit, and they do so participate. The
checking activities could be handled by rotation of a minority bank on an
annual basis, or if preferred by the Commission, can be handled with some of
the checking activities listed below:
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' 3Y 7-7 O .S/
ems' - /'
To Honorable irerrbers of the City Co7Ar ssioa
Subject: city T)posiis in finori.ty hanks - continued
Activity
Credit Union Deduction
Cityts Group Insurance
Contribution
Period Amount
Di -weekly $ 256,000
Monthly 250,000
Construction Contracts Monthly
303,000
MAP g 5vs
The following items should be brought to the attention of everyone concerned.
1. No minimum balance shall be maintained.
2. Checks are to be supplied by the bank.
3. Collateral must be provided in amounts which brings total
deposits of the City in any bank above the $100,000 presently
covered by FDIC.
4. The manner of rotation (if desired) among the minority banks.
This report is presented after a comprehensive study of all aspects relating
to the City's present method of handling its checking account activities,
including an estimate of the additional manhours, and more computer running
time and re -programming in many instances. Many of the present activities
could not be maintained efficiently if the checking activity were not handled
in the single bark which is used for the City's regular checking account on
the annual rotating basis.
cc Honorable Maurice A. Ferre, Mayor
Honorable J. L. Plummer, Jr., Vice Mayor
Honorable Theodore R. Gibson
Honorable Rose Gordon
Honorable Manolo Reboso
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