10/23/2006 Council Packet - Laserfiche WebLink

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FUNDS ON HAND As of August 31, 2006 Fund Cash and Investments General Fund $ 4,390,594 Special Revenue 120,947 Capital Projects 7,395,264 Enterprise Funds 5,482,530 Debt Service Fund 2,707,049 Agency Funds 1,845,591 Total $21,941,975 CITY INVESTMENTS As of August 31, 2006, the City had a total of $21,941,975, invested in the following manner: Percent of Portfolio Checking /CDs /money market $ 11,287,390 51.44% U.S. treasuries and agencies 8,456,979 38.54 Government mutual funds 1,465,606 6.68 Bonds 732,000 3.34 Total $21,941,975 100.0% In October 1997, the City adopted an investment policy that is in accordance with Minnesota Statutes 118A. Some highlights of the City's investment policy are as follows: 1. The primary objective is the safety of the principal. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risks and interest rate risk. a. Investments will be limited to those investments specified in Minnesota Statutes 118A. b. Annually appointing the financial institutions, brokers /dealers, intermediaries and advisors. c. Diversifying the investment portfolio so that potential losses on individual securities will be minimized. d. Investing funds in primarily shorter -term securities. 2. The secondary objective is to have the portfolio remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. 3. The third objective is to attain a market rate of return through budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. 4. The Finance Director and his /her appointed employees in case of unavailability are authorized to manage the investment program. A system of internal controls shall be - 15 -