SANTA ROSA, Calif. Santa Rosa became the latest city to adopt a deposit-local policy, with the City Council passing a resolution to place $1.25 million of city funds with five Sonoma County financial institutions, three of them credit unions.
Three credit unions, Redwood CU, Community First CU and Sonoma County Grange CU, and two banks, each will receive up to $250,000, with the potential for additional deposits, in an effort to keep that money circulating in the local economy.
The move comes as credit unions around the country continue to fight for a greater share of municipal deposits. Legislation is pending in several states that would authorize city and towns to place their funds with federally insured credit unions.
Most of Santa Rosa's other funds are held in non-local banks, including Bank of New York Mellon, US Bank and Wells Fargo.
Several other municipalities, including Portland and Eugene, Ore., and Phoenix, have adopted similar policies, resulting in municipal funds being deposited in local credit unions and banks.
