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Regular City Council Meeting Monday, October 22,2012 Page 13 parent company may be located overseas. Mr. Miller reiterated that he was making this recommendation on a temporary basis only; and specific to these last two (2) bond issues. For long-term investments, Mr. Miller advised that he continued to recommend the current policy. In either case, Mr. Miller clarified that collateral security for any of the investments would remain in place. At the request of Councilmember Willmus, Mr. Miller clarified that the interest rate would be less than % percent, and a temporary step for the bond proceeds intended to construction purposes, and was intended for no more than 3-4 years in duration; with anticipated interest earnings estimated to be in the $40,000 to $45,000 range. At the request of Councilmember Pust, Mr. Miller advised that when the City adopted its current Investment Policy, it was enacted based on national profes- sional associations and financial institution ratings and the financial industry and economic conditions at that time. Mr. Miller confirmed that the Policy was based on a number of national professional associations; and clarified that all the "big players" nationally and in the state were no longer rated with Double A's status; with the Triple A rating no longer used as a benchmarks. However, Mr. Miller advised that the City still used this standard for its regular investment portfolio. At the request of Councilmember Pust, Mr. Miller advised that this was the "new normal;" and based on the global financial market, with each municipality setting its own parameters. Mr. Miller advised that, with the relaxed temporary measures, the City should receive a number of bids, opining that the key was security of the City's investment based on collateral security, providing strength and confidence, with the underwriting done in a United States held bank. Mr. Miller advised that most American banks in the market are now foreign-based in European countries with stronger economies. At the request of Councilmember McGehee, Mr. Miller advised that the City typically received bids on an investment, with assistance from its financial advi- sors and market tests; and advised that consideration would give given to split- ting the investment or keeping it intact, depending on the best comparable op- tions available at that time,using their expertise and best discretion. In response to Councilmember McGehee's concern regarding diversification of the investment, Mayor Roe noted that the City's financial experts would also be looking at the timeframe for accessing funds for construction purposes as part of that overall picture. Mr. Miller concurred, advising that cash flow and draw down for proceeds would be based on the projected construction schedule, as well as from an insti-