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<br />REQUEST FOR COUNCIL ACTION <br /> Date:April 13, 2020 <br /> Item No.:7.d <br />Department Approval City Manager Approval <br />Item Description: Consider Adopting a Revised Investment Policy <br />1 B ACKGROUND <br />2 <br />3 At the September 16, 2019 meeting, members of the Finance Commission met with the City to discuss <br />4 several policy issues, one of which was in regards to the City’s Investment Policy. Changes to the current <br />5 Investment Policy was suggested by the Finance Commission as a result of a recent change in state law <br />6 that allows Roseville to invest a portion of its available cash into equity (stock market) investment. The <br />7 City Council indicated that they would open to amending the policy to allow such investment. Since that <br />8 time the Finance Commission has been working on a revised investment policy in conjunction with the <br />9 City Manager and the Finance Director. <br />10 <br />11 Best practices for government investment practices are to adhere to the safety, liquidity and yield <br />12 guidelines. While a policy offers broad flexibility, not all of the options will find their way into a <br />13 portfolio. Depending on market conditions, certain investments may have the same returns but the safety <br />14 of a certain instrument weighs into the decision. <br />15 <br />16 The following changes are incorporated into the attached draft policy which will allow for flexibility in <br />17 alternatives for pursuing safe investments with the best yields during changing markets. <br />18 <br />19 1.Added State and Local government securities and Certificates of Deposit as investment options <br />20 2. Struck the section on specific restrictions related to the 2011 and 2012 bonds <br />21 3. Added Equity Investments section based on Statute 118A.09 for AAA rated cities <br />22 <br />23 The Council is asked to adopt the revised Investment Policyby resolution. The policy is included included <br />24 inmarkup form in the attached resolution (Attachment B). <br />25 P OLICY O BJECTIVE <br />26 The City’s financial policies are consistent with governmental finance best practices as well as <br />27 previously-adopted Council actions. <br />28 F INANCIAL I MPACTS <br />29 Not applicable. <br />30 S TAFF R ECOMMENDATION <br />31 Staff recommends the Council adopt the revised investment policy as submitted. <br />Page 1 of 8 <br /> <br />