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Item No. 9E Meeting Date: May 9, 2005 Type of Business: Council Business City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Charles Hansen, Finance Director Item Title/Subject: Resolution 6506 Adopting an Investment Policy Background: The City Council reviewed a draft investment policy at the March 1, 2005 work session. The draft policy was based on a sample policy from the Government Finance Officers Association (GFOA) and a research memo from the League of Minnesota Cities. I also consulted with Ken Malloy of MMKR, the City’s auditors and with my contacts at each of the three brokerages where I purchase investments. The March 1st draft of the policy had language that I added in bold type and language that I want to remove in strike-out. Other language that was in parenthesis came that way from GFOA. For this draft, I removed the bold type and deleted the language that was in strike out and that was in parenthesis in the March draft. Any new additions in this draft are in bold type or new deletions are in strike-out type. Policy Changes in this Draft: A. Introduction: The March draft had the introduction that came from the GFOA sample policy. I removed that and wrote an introduction more appropriate to a final policy for the City of Mounds View. B. Treasurer: A new section II.2 has been added to clearly define the titles Treasurer and Finance Director. I have gone through the policy and made the use of the titles Finance Director and Treasurer consistent the definitions. C. Safekeeping and Custody: At the March meeting, we discussed the high cost and limited benefits of having the City’s securities held at an independent third party custodian. I recall that the consensus was to continue the current practice of having securities in safekeeping at the bank or broker they were purchased from.