3.2. EDSR 08-13-2007REQUEST FOR ACTION
To Item Number
Economic Develo ment Authori ~ . 2 .
Agenda Section Meeting Date Prepared by
Consent Au ust 13, 2007 Lori Ziemer, Asst. Finance Director
Item Description Reviewed by
Consider Resolution Authorizing Membership in the Minnesota Tim Simon, Finance Director
Municipal Money Market Fund (4M Fund) Reviewed by
Action Requested
The EDA is asked to consider the resolution authorizing the Economic Development Authority
membership in the Minnesota Municipal Money Market Fund (4M Fund).
Background/Discussion
The 4M Fund was formed in 1987, pursuant to the Joint Powers Act and in accordance with Minnesota
Investment Statutes, authorizing municipalities of the State of Minnesota to become participants of the
Fund. Participation in the Fund is for the purpose of joint investment with other municipalities so as to
enhance the investment earnings to the EDA and yet maintain liquidity of EDA monies. Currently, the
EDA is yielding interest at a rate of 3.10% on its idle monies while the 4M Fund is at 4.92%. The 4M
Fund is an approved depository, as approved on January 8, 2007, and this is simply necessary to use the
Fund. The City has used the 4M Fund since 1997.
Financial Impact
Once the resolution is approved, participation in the 4M Fund will allow for increased investment
earnings on EDA monies for liquid funds.
Attachments
Resolution authorizing membership in the 4M Fund
Action Motion by Second by Vote
Follow Up
C:ADocuments and Settings\cmchelich\Local SettingsV"Temporary Internet Piles\OLK79\EDA-4M Fund.doc
RESOLUTION 07 -
A RESOLUTION FOR THE CITY OF ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
A RESOLUTION AUTHORIZING MEMBERSHIP IN THE 4M FUND
WHEREAS, Minnesota Statutes (the Joint Powers Act) provides that governmental units may j ointly exercise
any power common to the contracting parties; and
WHEREAS, the Ntinnesota Municipal Money Market Fund (the 4M Fund) was formed in 1987, pursuant to the
Joint Powers Act and in accordance with Minnesota Investment Statutes, by the adoption of a joint powers
agreement in the form of a Declaration of Trust; and
WHEREAS, the Declaration of Trust, which has been presented. to this council, authorizes municipalities of the
State of Minnesota to become Participants of the Fund and make use from time to time including the 4N1 Liquid
Asset Fund, the 4M Plus Fund, the Fixed Rate Program, and other Fund services offered by the Fund; and
WHEREAS, this Council deems it to be in the best interest for the municipality to make use of ,from time to
rime, the approved services provided by the 4M Fund's service providers including the Investment Advisor and
Administrator, Voyageur Asset Management, the Sub Administrator, PIMA Financial Network, Inc. or the Fixed
Rate Investment Program Administrator, RBC Dain Rauscher, and the Custodian, li.S. Bancorp, ("Service
Providers") and/or their successors.
WHEREAS, this Council deems it advisable for this municipality to enter into the Declaration of Trust and
become a Participant of the Fund for the purpose of joint investment with other municipalities so as to enhance
the investment earnings accruing to each; now, therefore BE IT RESOLVED AS FOLLOWS:
Section 1. This municipality shall become a Participant of the Fund and adopt and enter into the Declaration of
Trust, a copy of which shall be filed in the minutes of this meeting. The appropriate officials are hereby
authorized to execute those documents necessary to effectuate entry into the Declaration of Trust and the
participation of all Fund programs.
Section 2. This municipality is authorized to invest monies from time to time and to withdraw such monies from
time to time in accordance with the provisions of the Declaration of Trust. The following officers of the
municipality or their successors are designated as "Authorized Officials" with authority to e ~ tuate investments
and withdrawals in accordance with the Declaration of Trust:
~~'!~ r
e 3 ~1 ~ %ev~ ~ r c? t:~ ~1 '~j t:'~jf
Print Name/Title Si.~trat re
Print Name/Title Signature
Print Name/Title Signature
(Additional names may be added on a separate list. The treasurer shall advise the Fund of any changes in
Authorized Officials in accordance with Fund procedures.)
Section 3. T'ne Trustees of the Fund are designaied as having official custody or"those monies invested in
accordance with the Declaration of Trust.
Section =1. That the municipality may open depository accounts, enter into wire transfer agreements, safekeeping
agreements, third party surety agreements securing deposits, collateral agreements and lockbox agreements with
institutions participating in Fund programs including U.S. Bancorp, its successor, or programs of PNIA Financial
Network, Inc., or Voyageur Asset Management or RBC Dain Rauscher and that these institutions shall be
deemed eligible depositories for municipality. PMA Financial Network Inc., Voyageur Asset Manager and/or
RBC Dain Rauscher and their successors are authorized to act on behalf of this municipality as its agent with
respect to such accounts and agreements. Ylonies of this entity may be deposited in such depositories, from time
to time in the discretion of the Authorized Officials, pursuant to the Fund's Programs available through its
Services Providers.
Passed and adopted by the Elk River Economic Development Authority this 13`h day of August, 2007.
ATTEST:
Jeffrey Gongoll, President
Catherine Mehelich, Executive Director