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Waunakee finance committee approves annual public depositories list after conflict-of-interest question about Ehlers
Summary
The Village of Waunakee Finance Committee voted unanimously to recommend adoption of its annual resolution designating public depositories, including a named broker subsidiary used to manage borrowing proceeds; a committee member raised concerns about a perceived conflict of interest between consulting and investment services.
The Village of Waunakee Finance Committee on May 19 voted to recommend adoption of its annual resolution designating public depositories and authorizing withdrawals of village deposits.
Renee, a finance staff member who presented the item, said, "This is a resolution we have to adopt every year. By statute, we have to, designate our public depositories." She told the committee the practice has been to list all banks and credit unions with a village location and to include other permitted investment channels such as the local government investment pool and broker relationships used by the village.
The packet lists Ehlers Investment Services (a subsidiary/branch of Ehlers) because the village used that channel in 2024 to invest proceeds from a $5,300,000 borrowing for a police department addition. Renee explained the arrangement was chosen so the village could stagger investments and monitor arbitrage rules tied to the borrowing and, if necessary, remit appropriate amounts to the IRS.
A committee member asked, "Who is Ehlers Investment Services?" and later said, "I understand. And as you know, I'm always concerned about conflict of interest. ... You it impairs your independence when it comes to the consulting engagement." Renee responded that the borrowing and related engagement had previously gone before the village board.
Tom Wilson moved to approve the resolution as presented; the motion was seconded, and the committee chair called the question. The committee then voted and the ayes carried the recommendation to the village board.
The action sends the annual depository resolution to the full Village Board for formal adoption at the next board meeting. No change to the village's current depository or broker list was made during the committee discussion.
