Owosso council approves new account with Dort Federal Credit Union to expand insured investments

The Owosso City Council approved a finance department request to open a ModernFi investment account with Dort Federal Credit Union, allowing the city to diversify deposits across multiple federally insured institutions while remaining compliant with state rules.

City Manager and finance staff explained the account will permit the city to keep large cash balances fully insured by distributing funds to multiple credit unions behind the scenes. "Even if we exceed the maximum insured amount of $250,000, we still maintain that protection by having this account with Dort where they can just spread this out over many different accounts," staff said.

Staff said the product is similar to an IntraFi service the city already uses for banks, is allowable for public entities, and would be compliant with Public Act 20. City staff noted the typical yield on the account was "a little above 4%" at the time of discussion and that the product's rate is recalculated every six months.

Council held a brief discussion and then approved the account in a roll-call vote with unanimous support. The clerk recorded yes votes from Olsen, Ludington, Fear, Owens, Pro Tem Haber, Osmer and Mayor Robert J. Tice Jr. The motion passed without amendment.

City staff said the account should increase interest income modestly and broaden the city's insured deposit capacity; they will proceed with account setup and report back on implementation.