At the December 18, 2006 Troy City Council Meeting, there was a resolution to approve the City’s Investment Policy and the Establishment of Investment Accounts.
Here’s the link to the resolution…
Here’s John Lamerato’s (Assistant City Manager for Finance) background information:
The current investment policy was initially approved in November 1999 and each year thereafter with the stipulation that it be reviewed and approved annually by City Council. The current policy has served us well during the past year and is in compliance with Act 20 PA 1943, as amended, therefore I’m not requesting any changes at this time. I would also like to update our resolution authorizing the establishment of investment accounts at the following institutions: Charter One, Citizens Bank, Comerica Bank, Fifth Third Bank, Flagstar Bank, Huntington National Bank, Independent Bank, JP Morgan Chase Bank, LaSalle Bank, Merrill Lynch, Michigan Class-MBIA, Michigan Heritage Bank, National City Bank, Republic Bank, Salomon Smith Barney, TCF Bank, and The Private Bank.
When I asked City staff why the City of Troy does not establish investment accounts at credit unions, I was given this answer:
Credit Unions are a permitted depository of public funds. I however do not have that comfort level with credit unions as I do have with the banks listed on our authorized list.
As a result of this response, I voted against approval of the resolution.
After that meeting, I contacted the Michigan Credit Union League (MCUL) for information on municipal accounts held at credit unions. MCUL surveyed its member credit unions located in Oakland County on the issue.
MCUL discovered that the following Oakland County municipalities hold funds at credit unions:
Orion Township
City of Pontiac
Waterford Township
In the interest of full disclosure, I'm a full-time employee of Central Corporate Credit Union. However, Central Corporate Credit Union does not accept municipal deposits.
