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CASE <br /> <br />PARTICIPATION IN THE MINNESOTA MUNICIPAL MONEY MARKET FUND <br /> By: Jessie L. Hart, Finance Officer <br /> <br />Background: <br /> <br />The Minnesota Municipal Money Market Fund (4M Fund) is a professionally managed money <br />market fund. It enables cities in Minnesota to pool short-term investable monies and earn high <br />money market rates while maintaining safety of principal. <br /> <br />By pooling short-term investable monies with those of other Minnesota cities, the time and expense <br />of managing the ~onies will be reduced while helping to improve investment earnings.The money <br />market fund uses grate-of-the-an cash management techniques to maximize investment earnings. It <br />maximizes "float!' by keeping all of the monies invested at ail times. It compounds principal and <br />interest daily and credits these monthly, so that interest actually earns interest. <br /> <br />The 4M Fund does not purport to be a replacement for the services that banks or other financial <br />institutions providle to cities. However, it does provide a unique service by reducing the amount of <br />time and money public officials spend on their invesunent management programs. <br /> <br />The 4M Fund offers the following: <br /> <br />Safety of Principal. <br />COmpetitive money market rates. <br />E~y and immediate access to invested assets; no advance notice is required for <br />deposits or withdrawals. <br />NO minimum balance or minimum length of deposit. <br />Direct deposit of state payments for each account. <br />Free, unlimited check writing allows investments to earn interest until checks are <br />presented for payment. <br />Comprehensive monthly statements for each account. <br />D .Oily statements for each investment and wire withdrawal. <br /> <br />The 4M Fund is sponsored by the League of Minnesota Cities and is a financial service exclusively <br />for Minnesota cities. Accounts are available only to cities, counties, public authorities, public <br />corporations, pukilic commissions, special districts, and any "insummentality" (as defined in the <br />Joint Powers Act) of a municipality in the State of Minnesota. Participation in the 4M Fund <br />requires passage Of a standard resolution and entering into the joint powers a~eement by signing a <br />Declaration of Tm~st Agreement. <br /> <br />Staff Recomme-n clarion: <br /> <br />Staff recommend~ that the Finance Committee approve participation and recommend approval by <br />the City Council Cf the attached resolution authorizing participation in the 4M Fund and authorize <br />entering into joint-powers agreement by signing the Declaration of Trust. <br /> <br /> <br />