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HomeMy WebLinkAbout5B MN Municipal Money Market Fd / ..... CONSENT AGENDA #: 4 (b) PREPARED BY: RALPH TESCHNER FINANCE DIRECTOR SUBJECT: CONSIDER APPROVAL OF RESOLUTION 94-02 AUTHORIZING EXECUTION OF PROXY IN FAVOR OF CERTAIN AMENDMENTS TO THE DECLARATION OF TRUST OF THE MINNESOTA MUNICIPAL MONEY MARKET FUND DATE: JANUARY 3, 1994 INTRODUCTION: BACKGROUND: DISCUSSION: The League of Minnesota Cities is conducting a meeting of the participants of the Minnesota Municipal Money Market Fund (commonly known as the League 4M Fund) on February 2, 1994 to consider certain amendments to the Declaration of Trust. These changes are to be considered by proxy. To accomplish this objective, the League has requested the Council to adopt the attached Resolution 94-02 which formally approves these amendments and authorizes the City Finance Director Ralph Teschner to execute the proxy on behalf of the City. The League 4M fund was created in January of 1987 as an investment alternative under the Minnesota Joint Powers Act. Through the 4M Fund, cities like Prior Lake are able to take advantage of such pooling resources to obtain more favorable short term interest rates and to attain additional diversification. On March 21, 1988 the City of Prior Lake entered into the Declaration of Trust and became an official member as approved by Resolution 88-20. Conditions of this resolution authorized the members of the Board of Directors of the League of Minnesota Cities to seIVe as Trustees of the Fund and were designated as having official custody of municipal monies invested in accordance with the Declaration of Trust. During the past six years the League 4M Fund has seIVed as an integral component within the City's overall investment portfolio. Currently, the Fund is restricted to a maximum duration of any investment to one year. Recently, the 4M Fund Technical Advisory Board has recommended changes within the Declaration of Trust that would give the 4M Fund greater investment flexibility. The principal changes are summarized below: 1. Authorization permitting the Board of Trustees to create multiple investment portfolios. 2. Extend the maximum maturity length of investment securities beyond one year. 3. Allow portfolio manager to use reverse repurchase agreements in the fund for up to 25 % of total assets. 4629 Dakota St. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 I Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER r T " These modifications are intended to provide greater investment opportunities and deliver better performance, thereby offering participants the potential of slightly higher yields. An affirmative vote of the majority of all participants is required for the adoption and approval of the Declaration of Trust amendments. Also attached is a copy of the formal proxy which indicates our acceptance of the amendment and appoints David Dubord, Controller of the League of Minnesota Cities, as proxy agent. ALTERNATIVES: The following alternatives are available to the City Council: 1. Approve Resolution 94-02 authorizing certain amendments to the League 4M Declaration of Trust as submitted. 2. Reject Resolution 94-02 and indicate no on the proxy statement. 3. Delay action on the League request if additional information or consideration input is required by the Council. RECOMMENDATION: Staff concurs with the Board of Trustees and Technical Advisory Board's positive recommendation and would likewise recommend that the Council adopt Resolution 94-02 thereby approving the Declaration of Trust amendment. ACTION REQUIRED: A motion as part of the consent agenda to approve Resolution 94-02 Authorizing Execution of Proxy in Favor of Certain Amendments to the Declaration of Trust of the Minnesota Municipal Money Market Fund. A4.WRT T T' RESOLUTION 94-02 ESOLUTION AUTHORIZING EXECUTION IN FAVOR OF CERTAIN AMENDMENTS TO THE DECLARATION OF TRUST OF THE MINNESOTA MUNICIPAL MONEY MARKET FUND MOTION BY: SECONDED BY: WHEREAS, the City of Prior Lake is a participant in the Minnesota Municipal Money Market Fund (4M Fund), by reason of its approval of a joint powers agreement in the fonn of a Declaration of Trust; and WHEREAS, the City has been asked to consider certain amendments to the Declaration of Trust of the 4M Fund; and WHEREAS, the City has reviewed and considered the proposed amendments to the Declaration of Trust as described in the attached proxy statement and amended Declaration of Trust. NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council that the proposed amendments described in the proxy statement and amended Declaration of Trust are hereby approved. BE IT FURTHER RESOLVED that at a meeting of the 4M Fund participants to be held on February 2, 1994, City Finance Director Ralph Teschner, is authorized to attend and vote on behalf of the city in favor of the proposed amendments, or in the alternative, is authorized to execute the attached proxy in favor of the amendments and forward it to the proxy agent to be voted accordingly. Passed and adopted this Jal day of January, 1994. YES NO Andren Greenfield Kedrowski Schenck Scott Andren Greenfield Kedrowski Schenck Scott Frank Boyles City Manager City of Prior Lake { Seal } 4629 Dakota St. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 I Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPlOYER r I PROXY MINNESOTA MUNICIPAL MONEY MARKET FUND The undersigned Participant of the Minnesota Municipal Money Market Fund hereby constitutes and appoints Mr. David DuBord the Proxy Agent of the undersigned Participant (with full power of substitution) on all matters which may be voted on at the Meeting of participants to be held at 2:00 p.m., on Wednesday, February 2, 1994, at the League of Minnesota cities' offices, 3490 Lexington Avenue North, Shoreview, Minnesota, and at any and all adjournments thereof, all in accordance with the Fund's Notice and Proxy Statement dated December 10, 1993, receipt of which is hereby acknowledged, as follows: 1. Amendment of Declaration of Trust. () YES Shall the amendment of the Declaration of Trust be adopted in the form proposed in the Proxy Statement and the appendix thereto? () NO ,,,~,,---y--.._.u..._._c..._,=..:-.......... WHEN PROPERLY EXECUTED, THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE INSTRUCTIONS SPECIFIED ABOVE. IN THE ABSENCE OF INSTRUCTIONS, THIS PROXY WILL BE VOTED IN FAVOR OF THE PROPOSITION SPECIFIED ABOVE. Participant's Name: Signature of Representative of Participant: ' Dated: Please mark, sign, date and return this proxy card promptly using the accompanying envelope. This Proxy is solicited on behalf of the Board of Trustees of the Minnesota Municipal Money Market Fund. Please mail to: Mr. David DuBord League of Minnesota Cities 3490 Lexington Avenue North Shoreview, MN 55126-8044 : proxy .. ---y-"'---r----- .