Only three branches responded this year, raising questions about participation from Wyandotte County institutions.
A brief discussion during Monday’s Economic Development and Finance Standing Committee meeting highlighted a challenge the Unified Government (UG) has faced for years. Local banks are not consistently bidding on UG investment opportunities, even though they receive “first look” access under UG policy.
During the review of the annual Cash and Investment Policy update, one Commissioner asked how many Wyandotte County banks take advantage of the chance to submit bids. Treasury staff said the number is small. Only three local branches responded this year when the UG sent out its annual certification notice.
Officials said the low response limits the number of local institutions that compete for UG investments. Staff noted that bids often come from the same small group of banks, and that larger institutions outside the county tend to submit more options. Even so, the UG continues to offer flexible investment formats to make participation easier, including a range of certificate of deposit sizes and different maturity levels.
Treasury staff said a recent change to collateral requirements under state law may help smaller banks participate in the future. The revised threshold lowers the amount of collateral banks must set aside when holding public funds. According to staff, this change could reduce the financial burden on smaller institutions and possibly increase local participation.
The UG will revisit investment practices next year as part of its ongoing financial oversight. Commissioners said they hope to see more activity from local banks as new rules take effect. For now, the UG continues to rely on a mix of local and regional bidders to build its investment portfolio.
