CCP 03-13-2000 - Laserfiche WebLink

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. . . CITY OF ARDEN HILLS ANNUAL REPORT OF INVESTMENT PROGRAM AND INVESTMENT ACTIVITY 1999 The City's Investment Policy requires that a comprehensive ailllual report be provided by the Treasurer that summarizes the following: Investment Strate!!ies The investment strategy is to approximate the yield on the benchmark two year Treasury Note while meeting the daily cash needs of the City and conforming to regulatory requirements. The objectives of safety and liquidity are balanced through the process of diversification, while maintaining a market rate of return throughout budgetary and economic cycles. Specifically, the objectives for 1999 were to maintain a position where the investment instruments were diversified by type as suggested by the policy diversification goals, as well as by maturity. The portfolio maintained a much stronger position in cash and cash equivalents than that required by policy goals because of the following considerations: a) City Hall facility reconstruction costs are currently estimated in the $3,100,000 range; and b) The planned Pavement Management Program (PMP) project (West Round Lake Road, Phase II) was not undertaken in 1999. Instead, budgeted dollars from 1999 were carried forward to 2000 to assist in undertaking a proposed $2,200,000 Ingerson neighborhood improvement project. Description of Portfolio (as of 12/31/98 and 12/31/99) Cash or Equivalents Fixed Rate Instruments (FRI) Zero Coupon Instruments Recommended Policv Goals Actual Portfolio Mix 12/31/98 12/31/99 53% 47% 34% 42% 13% 11% Pro Forma 12/31/99 * 14% 68% 18% 15% 65% 20% * Restated mix based upon $3, I 00,000 reduction in cash for City Hall facility funding requirements and $2,200,000 reduction in cash for funding the proposed 2000 Ingerson neighborhood improvement project. Portfolio Maturities Maturities should be varied, with not more than twenty percent (20%) of the portfolio invested out five years (maximum term).