Merrill council votes to open custodial accounts with Pershing LLC and hire Ehlers to invest 2026 A bond proceeds

The Merrill Common Council voted to open custodial accounts with Pershing LLC and engage Ehlers to act as investment advisor for proceeds from the city's 2026 A bond borrowing.

Emily, a city staff member who provided the council briefing, said the bond proceeds would be deposited into a Pershing purchasing account and pooled with other accounts Ehlers manages. "So the money would be deposited into this purchasing account. It would be pooled with all the other accounts that Ehlers manages, and we will be earning interest off of that larger sum of money," she said. Emily told the council Ehlers would act as a fiduciary and is familiar with state arbitrage rules.

She said the city is planning conservative, laddered certificates of deposit rather than higher-risk investments and that Ehlers estimated about $33,000 in interest earnings from the pooled account. "We're not doing any high risk investing. We're being very safe," Emily said.

Council members asked no follow-up questions during the presentation. The resolution was offered for a vote, was seconded, and passed by voice vote. The council record notes the motion carried.

Why it matters: placing bond proceeds in a custodial account and using a professional municipal advisor affects how the city manages investment risk, compliance with arbitrage restrictions, and the net interest earned on borrowed funds. The council's vote authorizes staff to open the accounts with Pershing LLC and proceed with Ehlers as the adviser; any further operational steps or contracts will be handled by staff as the accounts are established.

Next steps: staff will execute account opening and investment placement consistent with the council's authorization and applicable state law.