AGENDA ITEM SUMMARY

Consider for approval to remain and participate in the Pooled Method for Collateralization.  Chief Financial Officer, Markus Schwab will present.  Approved

O.C.G.A. §45-8-12 requires banks to collateralize public funds and O.C.G.A. §45-8-13 allows banks to collateralize public funds using either a dedicated or pooled method. Administration of the pooled method (“Pooled Method”) is delegated to the State Treasurer (“Treasurer”) who is authorized to contract with a private entity to carry out its rights and responsibilities in respect to the Pooled Method for the State of Georgia. Since 1999, Georgia Bankers Association Services, Inc. (GBASI), a wholly-owned subsidiary of the Georgia Bankers Association, has contracted with the Treasurer to administer the Pooled Method (“Pooled Method Administrator”). GBASI receives monthly reports from banks and custodians to monitor the collateralization of deposits and assesses fees to participating banks for administering the Pooled Method. GBASI receives no compensation from the Office of the State Treasurer or the State. GBASI is currently the only approved Pooled Method Administrator.

Staff recommends approval.

Remaining and participating in the Pooled Method for Collateralization continues at no financial impact to the City.