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-AIJEN HILLS <br /> center, some temporary housing units, and redo the existing garage/workshop area. Mayor Harpstead also <br /> invited the members of the committee to attend any of the Master Development Agreement (MDA) <br /> Council work sessions. These concern TCAAP and the next meeting is June 25,2007 at 6 p.m.before the <br /> regular City Council meeting. <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 /> V. INVESTMENT POLICY DISCUSSION <br /> The current policy is very similar to White Bear Township's policy and a number of other Cities's which <br /> were provided for the committee as reference material in their ackets. A concern was had over making <br /> decisions when they did not have any performance or finan information. Some committee members <br /> wanted more time to research and have more input to the iitilic visions. Mayor Harpstead stated that <br /> policies can be modified at anytime with City Counc pproval an that we are in need of an updated <br /> policy so our staff can work on the investment port . °is recommendation was to approve a policy <br /> tonight and if later the committee decides that t mould changes or we find that we have problems <br /> we can amend it at that time. Current policy wa p ` 1996 and is now out of date; statutes have <br /> changed. Our investment and cash portfol'.a_ .=‘ent ,totals approximately $11.4 million. Certificates of <br /> Deposits (CDs)cannot be more than$9 Z 0 00 ® 'tzt . We need to make sure all investors have records <br /> of who we are invested in as we ca•••t « multiple investments in one company or we will not be <br /> covered by the FDIC insurance. .,a "ayor •stad mentioned that the policy needs to be restrictive and <br /> conservative.No junk bonds can • ha• •; must have an"A"rating or better. There was a discussion <br /> on "Timing Risks" and was decided t ; `held to maturity" would stay in place after Finance Director <br /> Iverson explained how cities handle investments and report them. The City does not do active trading. <br /> Long term investments are usually invested for duration of three to five years. Maurice Gieske stated that <br /> safety is a primary key and suggests reviewing how other cities invest. Finance Director Iverson stated <br /> that the City current practice is much like other cities of similar size. The 4M Fund used by the city was <br /> set-up by the League of Minnesota Cities. Administration fees are charged back to the fund. The <br /> committee decided to benchmark the City's portfolio return against the 4M Plus Fund; the 4M Fund is a <br /> sweep account where as the 4M Plus Fund is a 30 day account. The City Council approves all investment <br /> brokers. Various changes were incorporated in the draft policy. The City will not purchase derivatives. <br /> Cash flow was discussed and Finance Director Iverson stated that she projects cash flow based on two <br /> years of expenditure history as recommended by the GFOA and any construction and capital expenditures <br /> per on-going construction contracts. The consensus of the committee was to put concentration risk at no <br /> more than 5% of the overall portfolio may be invested in the securities of a single issuer except for the <br /> City of Arden Hills <br />