2002-06-12 CC Packet - Laserfiche WebLink

Home Browse Search

/ ., y Investment Authorization City of Centerville City Council Meeting June 12, 2002 Requested Council Action: Authorize Finance Director and City Administrator to handle investments and fund transfers with Salomon Smith Barney. Background: Smith Barney is requesting a letter of authorization fur the new Finance Director and City Administrator to handle investments. The authorization letter currently on file is for the City Clerk. Discussion: Attached are the city investment portfolio summary and the bank reconciliation from April. The May bank statement was just received at the time of this writing and has not been reconciled. There is in excess 0[$2 million in the city checking account. The tax settlement from Anoka County, estimated at $600,000, should be arriving any day. It is expected that a couple of the city's bonds will be called in this July. The amount of$9oo,000, or one-half the city budget should be more than adequate operating cash. Unless the council has some very large purchases in mind, a significant amount of cash reserves could be invested. The financial consultant from Smith Barney has recommended the following purchases: Amount Type ofInvestment Rate Maturity $255,000 Federal Home Mortgage Corp. 5.25% Note: callable upon 10 days notice March 18,2004 March 18, 2009 $ 96,000 Certificate of Dcposit 4.00% June 26, 2009 6.50% Note: Step-up feature - interest rate 4% for first two years, 6.5% thereafter. Callable June 26, 2004. Suggested motion: Motion to authorize the Mayor to send a letter of authorization to Salomon Smith Barney, designating the Finance Director and/or City Administrator to handle investments and fund transfers on behalf of the City of Centerville. Submitted By: Finance Director Approved: City Administrator