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Committee forwards resolution to open Pershing brokerage account and retain Ehlers for 2026A bond investments
Summary
The Merrill Personal Finance Committee voted May 26 to forward a resolution allowing the city to open custodial brokerage accounts with Pershing LLC and retain Ehlers Investment Partners to invest proceeds from the 2026A bond; Finance Director Emily said Ehlers projects about a 4% return, roughly $33,000 in net interest on the bond.
The Merrill Personal Finance Committee on May 26 voted to forward a resolution to the full city council to open custodial brokerage accounts with Pershing LLC and engage Ehlers Investment Partners to manage proceeds from the 2026A bond. The committee meeting was held at 6 p.m. in Merrill City Council Chambers.
Finance Director Emily presented the proposal, saying the plan is to deposit bond proceeds, reimburse approximately $800,000 already spent on 2025 projects, and invest the remaining proceeds tied to the 2026A borrowing. Emily said the adviser estimated the city would "be earning probably 4% interest" and projected "about $33,000 in net income just on the 2026 a bond." She told the committee the city will deposit the funds temporarily at Nicolet Bank at settlement and, if approved, move the funds into the Pershing custodial account.
Committee members asked how the proposal differs from keeping funds in local banks and whether the city would withdraw existing local deposits. Emily said the resolution covers only newly borrowed 2026A proceeds and that existing local banking relationships would remain intact. She described the arrangement as a pooled brokerage account Ehlers would manage on the city's behalf, with the intention of increasing returns on temporarily idle bond proceeds.
Committee member S3 moved to approve the resolution; S2 seconded. The Chair called for the ayes and the motion carried. The committee will forward the resolution to the city council for consideration at the council meeting later that evening.
Background and next steps: Emily told the committee the bond closing for the borrowing is scheduled for May 27; the city is waiting on some TID valuation information from the Department of Revenue before additional borrowing steps for the TID portion. If the council approves the resolution, staff said they will deposit proceeds at Nicolet Bank at settlement and transfer funds to Pershing once the custodial accounts are established.
