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<br />~ <br />~HILLS <br /> <br />million for the Hwy 10 redevelopment. The Armory is looking to add two new buildings, a community <br /> <br /> <br />center, some temporary housing units, and redo the existing garage/workshop area. Mayor Harpstead also <br /> <br /> <br />invited the members of the committee to attend any of the Master Development Agreement (MDA) <br /> <br /> <br />Council work sessions. These concern TCAAP and the next meeting is June 25, 2007 at 6 p.m. before the <br /> <br /> <br />regular City Council meeting. <br /> <br />Jeff Johnson has requested a list of all on-going projects for the city. The current CIP will be included in <br />the next packet for all members. <br /> <br />V. INVESTMENT POLICY DISCUSSION <br /> <br />The current policy is very similar to White Bear Township's policy and a number of other Cities's which <br /> <br /> <br />were provided for the committee as reference material in their packets. A concern was had over making <br /> <br /> <br />decisions when they did not have any performance or financial information. Some committee members <br /> <br /> <br />wanted more time to research and have more input to the policy decisions. Mayor Harpstead stated that <br /> <br />policies can be modified at anytime with City Council approval and that we are in need of an updated <br /> <br /> <br />policy so our staff can work on the investment portfolio. His recommendation was to approve a policy <br /> <br /> <br />tonight and if later the committee decides that they would like changes or we find that we have problems <br /> <br /> <br />we can amend it at that time. Current policy was updated in 1996 and is now out of date; statutes have <br /> <br /> <br />changed. Our investment and cash portfolio currently totals approximately $11.4 million. Certificates of <br /> <br /> <br />Deposits (CDs) cannot be more than $98,000 per issuer. We need to make sure all investors have records <br /> <br /> <br />of who we are invested in as we cannot have multiple investments in one company or we will not be <br /> <br />covered by the FDIC insurance. Mayor Harpstead mentioned that the policy needs to be restrictive and <br /> <br /> <br />conservative. All bonds must have an "A" rating or better. There was a discussion on "Timing Risks" and <br /> <br /> <br />was decided that "held to maturity" would stay in place after Finance Director Iverson explained how <br /> <br /> <br />cities handle investments and report them. The City does not do active trading. Long term investments <br /> <br /> <br />are usually invested for duration of three to five years. Maurice Gieske stated that safety is a primary key <br /> <br /> <br />and suggests reviewing how other cities invest. Finance Director Iverson stated that the City current <br /> <br />practice is much like other cities of similar size. The 4M Fund used by the city was set-up by the League <br /> <br /> <br />of Minnesota Cities. Administration fees are charged back to the fund. The committee decided to <br /> <br /> <br />benchmark the City's portfolio return against the 4M Plus Fund; the 4M Fund is a sweep account where <br /> <br />as the 4M Plus Fund is a 30 day account. The City Council approves all investment brokers. Various <br /> <br /> <br />changes were incorporated in the draft policy. The City will not purchase derivatives. Cash flow was <br /> <br /> <br />discussed and Finance Director Iverson stated that she projects cash flow based on two years of <br /> <br /> <br />expenditure history as recommended by the GFOA and any construction and capital expenditures per on- <br /> <br /> <br />going construction contracts. The consensus of the committee was to put concentration risk at no more <br /> <br />City of Arden Hills <br />