Title
Requesting the City's Human Rights and Equal Economic Opportunity Department to establish and convene a Responsible Banking Committee.
Body
Whereas, racial disparities in homeownership, small business development and financial accessibility continue to plague the city and state; and
Whereas, the City of St. Paul has a commitment to racial equity and expanding opportunities for all members of the city to have access to affordable housing and financial services; and
Whereas, the Community Reinvestment Act was passed in the 1970’s to reduce disinvestment, and while progress has been made, disparities in the Minnesota still persist; and
Whereas, City investments must be in compliance with the City of Saint Paul’s Investment Policy and Minnesota Statutes Chapter 118A; and
Whereas, in 2014, the City amended Chapter 2 of the Saint Paul Administrative Code pertaining to Community Presence and Responsibility in Banking requiring financial institutions to disclose certain information for public review, Ord 14-30; and
Whereas, the City periodically releases a new Banking RFP to decide who will serve the City’s general banking needs for the next three to five years; and
Whereas, the RFP provides an opportunity for the City to work with a bank or banks that share its commitment to racial equity and community reinvestment and collect data on specific goals; and
Whereas, the newest St. Paul Banking RFP will be released on February 1, 2017 and will include the "Community Presence and Responsibility in Banking Questionnaire," related to community reinvestment, housing, small businesses and financial accessibility and how each financial institution applying to become the City’s bank intends to expand access and equity; and
Whereas, community involvement in decisions about banking in St. Paul and racial equity will increase the engagement of the community, increase transparency and the creation of more powerful collaborations to meet the City's goals; now, therefore be it
Resolved, the St. Paul City Council directs the Human Rights and Equal Economic Opportunity Department to establish and convene a Responsible Banking Committee; and be it further
Resolved, the Responsible Banking Committee shall -
a. Represent different segments of St. Paul, representative of community members, community organizations and resources such as the University of MN, to review the "Community Presence and Responsibility in Banking Questionnaire," to the RFP and make recommendations to the Chief Financial Officer on the best bank to be selected based on their responses
b. Work with appropriate City departments to review and recommend an infrastructure and reporting mechanism for monitoring the responses of banks to the annual requirement for information through the Responsible Banking Ordinance and other banking relationships with the City
c. Examine the City's current banking practices and programs to determine what additional questions and criteria could be added to the current requirements that are consistent with the new banking RFP and will provide the city with more data and partners in the financial community working to reduce racial disparities in the city