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<br />, <br /> <br />.' <br /> <br />CITY OF ARDEN HILLS <br /> <br />ANNUAL REPORT OF INVESTMENT PROGRAM <br />AND INVESTMENT ACTIVITY <br />2000 <br /> <br />. <br /> <br />The City's Investment Policy requires that a comprehensive annual report be provided by the <br />Treasurer that summarizes the following: <br /> <br />Investment Stratel!ies <br /> <br />The investment strategy is to approximate the yield on the benchmark two year Treasury Note <br />while meeting the daily cash needs of the City and conforming to regulatory requirements, The <br />objectives of safety and liquidity are balanced through the process of diversification, while <br />maintaining a market rate of return throughout budgetary and economic cycles, <br /> <br />Specifically, the objectives for 2000 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 much stronger position in cash and cash equivalents than <br />that required by policy goals because of the following considerations: <br /> <br />. City Hall facility construction costs are currently estimated in the $2,900,000 range; <br />and <br /> <br />. Ingerson neighborhood street reconstruction project installation costs were estimated . <br />in the $2,200,000 range, <br /> <br />Descrintion of Portfolio (as of 12/31199 and 12/31100) <br /> <br />Cash or Equivalents <br />Fixed Rate Instruments (FRI) <br />Zero Coupon Instruments <br /> <br />Recommended <br />Policv Goals Actual Portfolio Mix <br />12/31/99 12/31/00 <br />37% 45% <br />48% 44% <br />15% 11% <br /> <br />15% <br />65% <br />20% <br /> <br />Pro Forma <br />12/31/00* <br />25% <br />64% <br />11% <br /> <br />*Restated mix based upon $2,900,000 reduction in cash for City Hall facility funding <br />requirements, <br /> <br />2 <br /> <br />. <br />