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Regular City Council Meeting Monday,January 23,2012 Page 17 cedure to restrict investments to only...., [those agencies] with AA ratings or bet- ter." Councilmember McGehee expressed concern with language related to unsecured promissory notes. Mr. Miller advised that, using the AA credit rating or better, the City would con- tinue to only make purchases through a broker that was trusted to monitor their credit rating agencies, as staff does on a regular basis, with assurances in place to avoid compromising the security of the public's money. Mr. Miller advised that, if a credit rating should be downgraded, a mechanism would be in place to main- tain the safety of those investments, similar to current practice, while allowing the City to receive much better interest rates. Councilmember McGehee questioned if it was customary for the City to pay bro- kerage fees. Mr. Miller advised that customarily broker fees were factored into investment pricing, and subsequently included in the rate of return for those securities. McGehee moved, Johnson seconded, adoption of Resolution No. 10966 (Attach- ment A) entitled, "Resolution Adopting Financial and Budget Policies for the City of Roseville;" approving a revised investment Policy; amended to add language on page 5, line 188-191 under "Portfolio Management, that the City's procedure would restrict investments only to those agencies with AA ratings or better." Councilmember McGehee questioned the difference in AA or AAA credit ratings. Mr. Miller advised that there were more investment opportunities in AA versus AAA ratings; however, there was a slim margin between those two credit ratings, and the AA still provided nice returns. Mr. Miller advised that ratings of a single A alerted him and were beyond his comfort zone. At the request of Mayor Roe, Mr. Miller confirmed that the City of Roseville's credit rating was AAA, among only 6% of cities retaining that high of a credit rat- ing. Roll Call Ayes: Pust; Willmus; Johnson; McGehee; and Roe. Nays: None. Mayor Roe noted, for the record, that this investment policy was constrained and operated under State Statute parameters.