Laserfiche WebLink
<br />. CITY OF ARDEN HILLS <br /> ANNUAL REPORT OF INVESTMENT PROGRAM <br /> AND INVESTMENT ACTIVITY <br /> 1997 <br /> The City's Investment Policy requires that a comprehensive annual report be provided by the <br /> Treasurer that summarizes the following: <br /> Investment Stratcgies <br /> The investment strategy is to approximate the yield on the benchmark two year Treasury Note <br /> while maximize return while meeting the daily cash needs of the City and conforming to <br /> regulatory requirements. The objectives of safety and liquidity are balanced through the process <br /> of diversification, while maintaining a market rate of return throughout budgetary and economic <br /> cycles. <br /> Specifically, the objectives for 1997 were to maintain a position where the investment <br /> instruments were diversified by type as suggested by the policy diversification goals, as well as <br /> by maturity. The portfolio maintained a stronger position in cash and cash equivalents than that <br /> required by policy goals because of the following considerations: <br />. a) Budgeted 1998 City Hall facility construction and Maintenance Garage facility planning <br /> funding requirements of $1 ,500,000; and <br /> b) Gateway Business District (TIF District #2) public improvements for engineering <br /> services, legal services, utilities, land acquisition, and street construction required <br /> advance funding of approximately $500,000 prior to anticipated bond issuance. <br /> Description of Portfolio (as of 12/31196 and 12/31197) <br /> Recommended <br /> Policv Goals Actual Portfolio Mix Pro Forma <br /> 12/31/96 12/31/97 12/31/97* <br /> Cash or Equivalents 15% 34% 37% 23% <br /> Fixed Rate Instruments (FRI) 65% 52% 48% 58% <br /> Zero Coupon Instruments 20% 14% 15% 19% <br /> *Restated mix based upon $2,000,000 reduction in cash for Gateway and City Hall <br /> facility funding requirements. <br />. 2 <br />