02-22-1999 Council Packet - Laserfiche WebLink

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r REQUEST FOR COUNCIL ACTION DATE; FEB 2 2 1999 I I or onoi>to ITEM NO: Department Approv^ Administrator Reviewed: Agenda Section: Name TomKuehn City Administrator's Report j CjTitle Finance Director Item Description: Proposed Revision of the City of Orono Investment Policy Attachments; (A) Proposed Resolution to Revise the City of Orono Investment Policy (B) Proposed Investment Policy, Revised February 22, 1999 (C) Investment Policy, Adopted December 12,1988 During the review of the city's investment policy, requested by the Council, it was discovered that several areas of the policy required revision. The legislature enacted laws which repealed most or all of the previous legislation referred to in the policy and consolidated the new laws under Minnesota Statute Chapter 118 A, entitled "Deposit and Investment of Local Public Funds". We have attempted to reflect those changes within the proposed revised investment policy, while addressing the areas which were discussed by Ae council at the January 25, 1999 council meeting. When possible, language has been simplified. Some of the specific changes include the following: • Addition of the Internal Service Funds category within the scope of the policy, as it is anticipated that at least one fund of this type will be added this year. • Regarding the purchase of certificates of deposit, language has been added setting a minimum allowable net worth to asset ratio of 5.0% and the IDC rating of the bank is requested. • At the end of the listing of acceptable investment instruments is a list of instruments that the City specifically will not invest in. • Included in the banks and dealers section is incorporated the state requirement for the City to obtain broker/dealer certifications each year. • Under the delegation of authority section it is noted that the state authorizes the city to delegate the investment management and designation of depositories to the treasurer.