HomeMy WebLinkAbout2013-07 Responsible Banking Policy
RESOLUTION NO. 2013-0-7
A RESOLUTION ADOPTING A RESPONSIBLE BANKING POLICY
RECITALS:
A. The City of Ashland makes investments in accordance with the City's Investment Policy as
well as Oregon Revised Statutes.
B. The objectives of the City's investment portfolio are to preserve principal, provide sufficient
liquidity to serve the City's needs and to generate a fair return; to achieve these objectives;
the City invests in a diversified portfolio of conservative investments.
C. In addition to a diversified portfolio, the City of Ashland makes deposits in banks and relies
on banks for banking and treasury management services including checking, electronic
transfers and credit card processing services.
D. Large and small financial institutions in the Ashland area are a vital part of our economic,
philanthropic, and civic infrastructure, and many bank leaders in this region strive together
with government to create a more vibrant community.
E. The economic recession that began in 2007 and some federal programs and banking policies
severely limited financing options for homeowners and many small businesses.
F. When financial institutions tailor their decision making, lending policies, and practices to the
needs of the local community, they are better positioned to help sustain the local economy
and local employment.
G. The City of Ashland supports allowing local governments to deposit more than the current
NCUA insurance limit of $250,000 in State approved credit unions beginning in 2013.
H. It is in the City's best interest to increase participation in the competitive solicitation process
for its banking services during the contracting cycle.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1.
The City of Ashland will continue to evaluate deposits in local financial institutions where those
deposits are consistent with the City's Investment Policy criteria of safety, liquidity and yield
and when such deposits are consistent with the efficient management of the investment portfolio;
accordingly, the Council requests that the City Treasurer continue to exercise diligence in the
evaluation of potential opportunities to place deposits within local financial institutions.
SECTION 2.
The Council requests that the City Treasurer evaluate local credit unions and financial
institutions which are approved as qualified depositories by the State Treasurer provided such
deposits are consistent with the City's Investment Policy criteria of safety, liquidity and yield
and when such deposits are consistent with the efficient management of the investment portfolio.
SECTION 3.
The Council requests the City Treasurer to amend the City's Investment Policy to allow for
deposits more than the current NCUA insurance limit of $250,000 in State approved credit
unions and to bring the amendment to Council for
Resolution No. 2013- Page I oft
approval as part of the annual review of the Investment Policy.
SECTION 4.
In an effort to maximize competition for banking services and create an environment that
encourages local participation in the solicitation process, the City Treasurer will work
collaboratively with Procurement Services to identify any strategies and best practices that would
enhance the chance for local participation in the procurement of banking services during the next
contracting cycle.
SECTION 5.
The City Treasurer will research national best practices and include as part of the selection
criteria for banking services other aspects of a financial institution's operations possibly
including, but not limited to, commitments to local lending and other community investments,
small business loan programs, workforce data, and mortgage and interest rate and terms, to the
extent they are available at the time of the solicitation process and which provide a reasonable
basis of comparison and are allowed under law.
SECTION 6.
This resolution takes effect upon signing by the Mayor. o
This resolution was duly PASSED and ADOPTED this day of 2013, and
take fect upon signing by the Mayor.
a CL
Xl~d
Barbara Christensen, City Recorder
SIGNED and APPROVED this 6 day ofAk, 2013.
Jo Stromberg, Mayo
Re e d :as Vto: L
avid H. Lohman, City Attorney
Resolution No. 2013- Page 2 of 2