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Regular City Council Meeting Monday, June 17, 2024 Page 12 Finance Commissioners Davy and Sagisser were also at the meeting. Commissioner Sagisser highlighted some of the items that the Finance Commission has been working on. Chair Bester provided investment recommendations. Councilmember Schroeder wanted to make a couple of points that the investment strategy the Finance Commission is recommending is State-approved. She also mentioned that the City invests long term so the City rarely invests for just a year. So, when showing the long-year trends, that is important because typically when bonds are purchased by the City, it is for extended periods. The timeframe will be similar and this recommended percentage is a very small portion of the total amount the City invests. She thought this was a good idea. Councilmember Etten asked if the Finance Commission had a dollar figure they were recommending the City start at and if there are tax implications for investing and making money in the equity market. Chair Bester explained fifteen percent is the number. Finance Director Pietrick has advised and cautioned the Finance Commission that the look ahead to the Capital Investment Plans going forward is going to be challenging. He thought it would probably be over one million dollars but to be sensitive, he used five hundred thousand dollars as a way to put the City's 'feet in the water.' He did not see why these would be any more taxable than the investment earnings on the bond and other investments. Councilmember Groff asked if anyone has researched to see if other cities have done this and what their results have been in the State of Minnesota. Chair Bester indicated one other city, Woodbury, is currently doing this and the results are pending. Mayor Roe reviewed the history of the City's investments. He asked if the Council was interested in considering such a resolution that would initiate the process. Finance Director Pietrick indicated the Finance Commission has been discussing this for well over a year and she is prepared to bring a resolution forward to the Council for the City to start equity and investments through the State Investment Board. She explained she has been laddering the City's investments from one year up to ten years so the City has investments throughout the gamut to invest safely and try to gain as much yield as possible. She noted she had some investments maturing and was in a position to bring forward a resolution. The Council was in favor of bringing this item forward to a future agenda.