HomeMy WebLinkAboutResolutionRESOLUTION NO. 2013 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE REINVESTMENT OF $2 MILLION IN THE CERTIFICATE
OF DEPOSIT ACCOUNT REGISTRY SERVICES PROGRAM WITH
NEIGHBORHOOD NATIONAL BANK FOR A ONE-YEAR TERM
WHEREAS, on August 21, 2007, the City Council approved an amendment to
the City's Investment policy which made Certificate of Deposit Registry Services ("CDARS") an
eligible investment category; and
WHEREAS, CDARS became statutorily authorized by the enactment of the
California Government Code Section 53601,8; and
WHEREAS, Neighborhood National Bank ("NNB") has confirmed that they will
match the Local Agency Investment Fund interest rate at the time of the investment of funds;
and
WHEREAS, on September 4, 2007, the City Council approved a $2 Million
investment in the CDARS program with Neighborhood National Bank at a competitive rate of
return of 5.13% with a 12 month maturity; and
WHEREAS, on June 17, 2008, the City Council approved an additional $1 Million
investment dated July 24, 2008, at a competitive rate of return of 3.15% with a 12 month
maturity; and
WHEREAS, the original investment of $2 Million matured in March 11, 2009, and
was re -invested at a rate of 2.75%; and
WHEREAS, on July 23, 2009, the $1 Million investment matured and was re-
deposited in the City of National City's Local Agency Investment Fund; and
WHEREAS, on August 18, 2009, NNB offered to reinvest $1 Million at a rate of
return of 1.51% with a 12 month maturity, which will mature March 7, 2013; and
WHEREAS, NNB has now offered to reinvest $2 Million at a rate of return of
.65% with a 12 month maturity.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes an investment of $2 Million in the CDARS Program with
Neighborhood National Bank at a rate of return of .65% with a 12 month maturity.
PASSED and ADOPTED this 5th day of March, 2013.
Ron Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
Michael R. Dalla, City Clerk Claudia Gacitua Silva
City Attorney