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87-359 WHITE� - C�TV CLERK �PSNK - FINANCE G I TY OF SA I NT PALT L Council CANARV - DEPARTMENT u �FJ9 Bl_UE - MAVOR File 1\0. �� 'v • Council Resolut on � Presented By Referred To Committe�: Date Out of Committee By Date 4 . Each month a d annually, the investment �$ecords will be balanced to he financial records. 5 . Each quarter and annually, the Treasure� w�11_ submit a report of th City' s inv�stment and cash�position to the Director of he Department of Finance an Management Services, th Mayor and City Council. ' 6 . Interest ear ings will be allocated to tl�e various City Funds at lea t quazter].y. I 7 . An investmen committee consisting of th� C�ty Treasurer, the Director of k'inance and Management S�rvices, and the Budget Direc or shall meet semi-annually, or as necessary to determine specific strategies and to �onitor results . , , 5 . COUNCILMEN Requested by Department of: Yeas Drew Nays ,� Financ & Management Services Rettman In Fevo[ Scheibel Sonnen -�__ Against B redes�o wi�son Adopted by Council: Date MA� � 9 1987 Form Appro d by City Attor Certified Y�ss d by Council Sec ary BY By Appro by A7avor. Date _� �R � �� Approv Mayor Eor Submis i n t C cil sy _ sy; p ..e��4�� Ai� 2 8198� Finance & Manageme t rvices DEP�IRTMENT ��`�� N° 347i�'. Gary Norstrem CONtACT f�7—�� Ext. ,,7016 PHOf�E January 16, 19 8 7 DAT� � �� Q, e ASSIGN NUMBER FOR ROUTING 0 DER Cli A1 Locations for Si na ure : ' `� Department Director � D rector of Management/Mayor Finance and Management ervices Direqtor 4 C ty Clerk �` udget Director � �City Attorney WHAT WILL BE ACHIEVED BY TA ING ACTION 0 THE ATTACHED MATERI LS? (Purpose/ : ' Rationale) : ' � The purpose of the res lution is �o adogt a invest ent policy which provides : the City with a more s ecific foc�s and a more det iled process, while j complying with the bro d brush le�islative authori y of the Minnesota ; Statutes. It also is n opportun, ty for the Mayor and the City Council ! to observe and if desi ed, to act vely participate in establishing and monitor- i ing the policy directi n for the �ity investment p ogram. ', , COST/BENEFIT BUDGETARY AND ERSONNEL IMP CTS ANTICIPATED: �� '� � �� i None � , � ; � ��,� 1 � �� I ; FINANCING SOURCE AND BUDGET CTIVITY NUMB R CHARGED OR CREDITE : (Mayor's signa- ture not re- Total Amount of Transacti n: None ! quired if under i $10,00Q) Funding Source: ,, Activity Number: , ATTACHMENTS List and Number 11 Attachme ts : .,,,._ RECEIVED �,. i Council Resolutions and Appendix I' and II . JAN �G 19$7 OFFlCE OF THE DIRECTOR EPARTMENT OF FMANCE D MANAGEMENT SfR1/j(�S DEPARTMENT REVIEW ; CITY AT ORNEY REVIEW x Yes No Council Resolut on Required?', Resolut'on Required? Yes No Yes No Insurance Requi ed? j Insuran e Sufficient? Yes No Yes No Insurance Attac ed: I (SEE REVERSE SIDE� FOR INSTRUCTIONS) Revised 12/84 �I a;.",`�� _ M't_�?H=T`.��T ' �+ I "�'�' O►F �1�. II�TT ��'A.��LTI. �ianc�i�Q. �� '�� l �esol��2��z � �7-� � r� ., A�'PENI7TX I � , �f'r�sented By . _ _ � .-._..., i `-% - - Referred _.�_._.___ - �ommitte�: Date Out of Committee 't3y _—�__—. Date ANTI-APARTHEI� RESOLUTION WHEREAS, i is the policy of the City df St. Paul to encourage political, econo ic and social policies whicl} guarantee c:i.vil rights, civil liberties, arid �conomic opportunities; � and WHEREAS, it is the policy of the City d�� St. Paul to condemn and seek the eradicat 'on of the policy of apartheid in South Africa, a doctrine of racia separation under which rig�hts and obligations of individuals ar defined according to their� racial and ethnic origin; and WHEREAS, th system of apartheid, officlld.ally adopted by the Government of Sou h Africa in 1948, is morally repugnant to the people of the City of St Paul; and ^ ! THEREFORE, B IT RESOLVED, the City of S�. Paul shall not: � 1 . Purchase commercial paper and or Banikers Acceptances of banks no do any other business with'� bar_ks that continue _to: _ ;._ - _ a. Ad ertise or otherwise promotel! the sale of kr gerrands or other coins min�ed in the Republic o.f South Africa b. Un erwrite the securities of tHe Government of So th Africa, or c. Mak s loans and extension of cnedit to the South Afr' can Government, including dorporati�ns or org nizations controlled by the� South African Gov rnment other than loans for, educational, housing --- � � alth facilities available �to all Yeas COUNCILME Na s Requested by D�epartment of: Orew Y Nicosia Rettman �il �2VOf Scheibel Sonnen __ ��31QSt BY Tedesco Wiison Adopted by Counril: Date _ Form Approved ay City Attorney Certified Passed by Council Secretary �Y __ E3; Approved by :�1avor. Date _ __ Approve3 by Maybr for Suhmission to Council BY' --- - - --- $Y --- --rt-- _. _ _ .._� ...._._. . . � t�; i •�-Y <:� r �1� t zv°r� � �.'�-L _ �.v� ,.,s _ , � ._ �.��Af��V -- [)1..4��AII TMi_'N f B� � �7�'''J� �..JF — V.n.V�N Fiie �O. / V . � � � , � C�u��il �Zeso��ipn ��-�� 'resented By __._ __ ___ Referred To Committee;: Date Out of Committee By _ �� Date -- � --� per ons on a totally non-discriminator_y basis and loc ted in geographic areas acGessible to all pop lation groups without any 1�ega1 or administrative res rictions. d. Mak loans to corporations in t�,he Republic of South Afr ' ca. � 2 . Purchase ommercial paper issued on b�half of any business enterpris that makes investments, di�ect or indirect, in new busin sses in South Africa, or an�i new investments in existing outh African businesses BE IT RESOLV D, that banks whose commercial paper and/or Bankers Acceptanc s are purchased by the CiLy �� and banks with whom the City conducts other business that are lis�ed by the Investor Responsibility Re earch Center, Inc. ; as ques�ti�nable concerning their dealings wi h South Africa, shall file �ith the City Treasurer a copy of the ban ' s poZicy relating to South ,Africa and if requested, a certificate sig ed by a duly authorized offucer of such bank setting forth that: -a. It d es not advertise or otherwi�se promote the sale of Krugerrands or other coi�ns minted in the Repu lic of South Africa b. It d es not underwrite the securiities of the Gove nment of South Africa, or ! c. It d es not make loans and exten��sion of credit to the outh Airican Government, in�luding corporations or o ganizations controlled by t�e South African Gove nment other tYian loans for �:ducational, housing or h alth facilities available to all persons on a tota ly non-discriminatory basis � and located in COUNCILMEN i Yeas Nays Requested by Department of: Drew Nicosia Rettman In Favor Scheibet Sonnen __ Against BY I Tedeseo I Wilson I Form Approved by�i City Attorney Adopted by Council: Date _ Certified Passed by Council Secretary BY .— B� --- � Approved by l�favor. Date — ____`_ Approved by Mayot for Submission to Council � �s� - --- --�-- By �� I - _...._._..__. __ . _ , ` T �J �1�,�[, (V, � y '(1��'°j ■r �T ]' VVllill.11 �4'.4 Y - �E P�4 t1�TM E N T �J .1 �, 1 `.j a.` t�._l� j .i�' g' i,.t� lJ .j. Fete ��. -... a _" rn�Y O r� , } � � . ��c�l �Z�s�l�t��r� � ��-�� ('resented By _ _ � Referred To - Committe,e: Date Out of Committee By Date ge graphic areas accessible to' a11 papulation groups wi hout any legal or adm�.nistr�tive restrictions. d. It does not make loans to corp�rations in the Re ublic of South Africa. � BE IT RESOL ED, businesses whose comme�cial papex- are pur- chased by the Ci y and are listed by the Investor Responsibility Research Center, Inc . , as having operations �n South Africa shall file with he City Treasurer a capy of ,their corporate policy relating to Sout Africa and if requested, a certificate signed by a duly authorize officer of such business s�tting forth that it does not make in stments, direct or indirecti, in new businesses in South Africa, -r any new investments in existing South African business . � BE IT FURTHE RESOLVED, the Ci�y of St.'� Paul shall enforce this anti-aparthe ' d policy until all of the f�ollowing conditions have been met by he Government of South Afri�Ca: a. Eli inate policies that prohibi�t Black employees and their families from living '�n family accomoda- � ----- tio s near their place of emplo�ment. b. Eli inate iriflux control polici�s that restrict Bla .ks from seeking employment eahere they choose, and that prevents them from liv�ng near where they fin employment. , c. Eli inate the pass law which rec�uires Blacks to kee on their person at all tim�s a government . iss ed identification card. _-- — — COUNCIL.'1'�EN Requested by 17�partment of: Yeas Drew Nays Nicosia Rettman _._ �R F2v0i - { Scheibel I Sonnen _ AgBiftst SY i Tedesco VVilson Form Approved by City Attorney Adopted b}� Council: Date Certif�ed Passed by Council Secretary BY -- i B�. _ . Appru�•ed b}� �tavor. Date __ _�_ Approved by M1taY4+r f�r Submission to CounciI B}� — -- — --- ----�----- By --- —+— — .I . ._ _. . I �i i TY O F 5A T N�d' ��.t�I.I L �C-ouncti �,� °��'�«�� - UE�ARTMENT 1 �f'C� �..;f —'^"?rON � � . i'11C N0. _/ / � - � . C�z�nc�l IZesolut�on �8'-��y F'resented By Referred To _ Committe�: Date Out of Committee By I' Date d. Eli inate policies that make di�tinctions between the South African nationality o� Blacks and Whites. e. Eli inate the policy of removing Black populations fro certain locations for reasdn involving race or eth ic origin. � f. Eli inate all residence restrictions based on race or e hnic origin. �� BE IT FURTHE RESOLVED, the Mayor shall! report annually in December to the C' ty Council assuring compliance with the provisions herein, and , - BE IT FINALL RESOLVED, that this resol�ution recinds in its entirety Council ile No. 85-1381 , dated Octo�er 10 , 1985 . _. __ ! _. __ _ _ � COUNCILMEN � Requested by De�partment of: Yeas Drew Nays . , Nicosia ��$. Rettman in FeVOi � Scheibel ' i � r Sonnen Against BY � � 'Fec�ecw . Wilsort Adopted by Council: Date JUL � O i9$S Form Approved by City Attorney Certified P• ss d ' ` ouncil Secre By B; � � � ! Appro��e 1�lavor: Date ,�i- � `� j� Appr by hlaydr for Su issi �ouncil Q}� - - — _ _ . _ _, ._ . . _i . . • I! �07��/ . AP�ENDIX II Eli ible Instruments for City Irlvestment a. IINITED STA ES TRSASDRY OBLIGATIONS - Canstitute the largest se ment of the market for fixe�d income securities The major securities issue�d are bills, notes, and bonds. Treasury bills are a�uctioned weekly, with matur 'ties of several months. They carry no coupon, but are sold on a discount basis. Treasury Notes are issued for aturities of one to seven y�ears; the original maturity on Treasury Bonds is over seven years. Both carry coupons. I general, treasury securiti�s are safest and most marke able securities and yield the lowest return for a given mat rity of all investment inst�uments. b. FEDERAL AGB CY SECORITIES - Obligationsl'� of various agencies an corporations chartered by the federal government nc7 guaranteed by the agency ' issuing the security. rincipal agencies issuing securities are the Federal Lan Banks, the Federal Aome Lo�n Banks, the Federal National Mo tgage Association (Fannie M�e) , the Government National Mo tgage Association (Ginnie M�e) , and the Federal Farm Credit Banks. Ntaturities of these ;issues range upward from a mont to approximately fifteen y�ars. They generally have a high r yield than treasury oblig�tions. c. REPDRCHASg GREEMBNTS (REPO'S) - Provid� for the sale of short-te m securities by a securities! dealer to investors, uch as cities, with an agree�nent to repurchase he securities at a specifiedifuture date. The investo receives a given yield whil'�,e holding the security an the repurchase price is gua�ranteed in advance. T e length of the holding peribd is tailored to the needs of the investor, but is usually of very short durati n. Rates are related to th� rates on Treasury Bil s, federal funds, and loans � to government security dea ers by commercial banks. , d. CERTIFICATBS OF DgPOSITS (CD'S) - The de�iosit of funds at a c mmercial bank for a specifi�d period of time and at specified rate of interestl Yields on Certificates of Deposit tend to be highe�, than on Treasury Bil s of comparable maturity. i e. COM1r11ERCIAL P $R - An unsecured promisso�y note with a fixed maturi y of no more than 270 days. i Commercial Paper is nor ally sold at a discount from face value. 1. � ,� - � . , '�, �'r—�-f s�-�:.�"� . , � f. BANRERS AC BPTANC$ - Short term, non-ir�terest bearing notes sold at discount and redeemed at �face value. It . is secured by the goods which it finanaes, the bank that accep s the draft, and the issuer''s promise to pay. These note trade at a rate equal to o� slightly higher than Certi icates of Deposit depending �on market supply and demand g. MONBY 1�IARR FUNDS - These are short term, high quality investment sold by large banks. These, instruments include Tr asury Bills and Notes, Certi�ficates of Deposit, Commercial Paper, Banker's Acceptance, �and Eurodollar instrument . ' �I •s I; J invpol � � � 2. . �-- 1"?��1 C�/1� e ' ' C?��7-,�� ,.. ' F��, CITY OF SAINT PA�UL �i'•i'��~iij�� OP'FIC.�I OF THT CITY COIIN�CIL .. � I Committee Re ort �; P �i�a.nc� Mana eme�t & Personn 'l Committee. MARCH� 12, 1987 , 1. Approval of minutes rom meeting held March S, 1987. I approved 2. Resolution amending he salary plan and rates of comp�nsation resolution by establishing a salar range in Section I p 2, Grade 2�E, Technical Standard Ranges for the title of Library Assistant. laid over � to April 2, 1987 � 3. k?esolution establish ng the title and class specificat�ions €or Library Assistant in Grade Z0. laid o er to A ril 2, 1987 l+. Resc�lution creating he 1987 Spring Cleanup Fund. move�d out w/o recommendation �. Resolutio�z authorizi g contract with Saint Paul Ramsey.Medical Center iahereby �.h�e city sha11 recei e the services of Dr. Keith Henry� in the Health Division Coaununicable Program approved • r 6. . Resolutio�-.-adopting ity policg establishing standards�-�for investments,, ��,p�roved - � . i � . _ - � i - I CITY HALL SEVENTH FLOOR SAINT PAUL, h1INNFSOTA 55102 .�ae I . . _. _. ._. _,. :...._ _ _ . .�.,_ ....,.-,-:. ,._«..>.e...��..f,.__- i WMITE - CITV CLERK '�,. # PINK - FINANCE GITY OF SAINT PA�TL Council �q • CANAQV - DEPARTMENT /y� BLUE - MAVOR File NO• ✓ �� uncil Resolution �6 Presented By - - �Referred To �"� �� Committee: Date �� 3 r �� Out of Committee By Date RESOLVED, THA THE COUNCIL OF THE CITY OF SAINT PAUL DOES HEREBY ADOPT THE FOLLOW NG AS THE CITY' S POLICY E5T�BLISHING STANDARDS FOR INVESTMENTS: The purpose of t is Policy Statement is to e tablish standards governing the in estment of City funds. It s the City' s policy that the maximum available funds be invested at the highest rates obtainable at th time of investment, in accqrdance with state statutes (includ ng Minnesota Statutes, Chap er 118 and Sections 471 .56, 471 .59 a d 475 .66) , the City of Sain� Paul Anti-Apartheid Resolution 86-94 (see Appendix I) and the a�.ministrative guide- lines as outline in this policy. STATEMENT OF POLICY APPLICABILITY ' This directive a plies to all investment mad by the City, regardless of fu d. COUNCILMEN Requested by Department of: Yeas Drew NaYs , Nicosia ln Favor Rettman Scheibel Sonnen __ Agaltlst BY Tedesco i Wilson Form Approv d by City Attorney Adopted by Council: Date Certified Yassed by Council Secret ry BY B}� Approved by Mavor: Date Appro y ayor for Su s Council By _ — BY . � , � ', �K7-��r E F E The City will i vest only in the following instruments or those others that may subsequently be permitted by State Statute: a. United tates Treasury Obligations � b. Federal Agency Securities c. Repurch se Agreements (Consisting of II.S. Treasury Obligat ons and Federal Agency Secur,ities) d. Certifi ates of Deposit (C.D. 's) e. Commeri ial Paper � f. Banker ' Acceptances g. Money M rket Mutual Funds These instrumen s are defined in detail in A�pendix II. O , The vendor quali ications for investments fo�cus upon protection of taxpayer dollars and investment income, cons�stent with statutory authorization, t e City's anti-apartheid resplution and financial prudence. The C'ty will conduct its investment transactions with several legal, c mpeting, reputable investme�t security dealers and banks, utili ing the following guideline�: A. RE B g $ ' ' 1 . Perfect n o ate al Repo's re considered secured loans 'with securities as unde lying collateral. The City �,shall maintain the rig t to take delivery and ownenship of the collate al involved in a repo apon demand. With deliver there is less principal ris'k for the City since t e claim against the collater;al is secured in relatio to those of other parties. � For rep 's with maturities of 21 day's or less, collateral is considered perfected w�ithout security deliver . For repo's with maturities extencling past 21 days, perfection occurs only by thking possession of secur 'ties. The City will determ�.ne if delivery of secur 'ties is required for maturities beyond twenty-o e days. 2 . electio of Re o endors The City will purchase repo's £rom v�ndors who meet cer ain criteria: a. Repo ting dealers who are monito�ed by the New York Federal Reserve Bank. , b. Nati nally supervised commercial �banks whose comb ned capital and surplus equ�ls or exceeds $25, 00,000. ' 2. • . � � , � �ar�- ��-;�s�� , �� c. Lo al designated depository ba�ks issuing repos � in amounts of $500 ,000 or less � and scheduled to ma ure in thirty days or less. The qualifying ank or dealer must have demonstrated over a significant per od of time, a successful, puofitable, and reliable operat on. The qualifying bank or ;dealer must have an established man gerial component and knowlec�geable professional staff capable o ensuring the continued succ�ess of the enterprise. B. E F T F $ T � All banks and savings associations wit'hin the United States are desig ated as depositories for the� purpose of purchasin Certificates of Deposit and� are authorized to act as sa ekeeping agents for City col�lateral. In order to provide an opportunity for� local investments, the City ill purchase short-term and, medium-term Certificat s of Deposit from local ban�CS and savings associatio s based on the following cr;iteria: 1. The ra e should match or exceed ot�er investment option . 2. The Ce tificates of Deposit shall be collateralized for al amounts in excess of FDIC/�'SLIC insurance ($100, 00 under current law) . 3 . Mortga es are not acceptable as collateral. Certificat s of Deposit purchased from �any bank or savings associatio outside of the local area �ust meet the above criteria a d the interest rate must exaeed, by 15 basis points, Ce tificates of Deposit availa�le at the same time from local banks. C. E A A L ER APE I Although a thorized by Minnesota Law, Bankers Acceptances and commer ial paper are more risky than instruments of the Federa government or Federal agencies. Because of the credit risk, the City of Saint Paul' will follow these guid lines: BANRER A EPTAN E il 1. Bankers Acceptances shall be restri�cted to the top 50 banks i the United States (as measured annually by deposit , published by American Ban�Cer Magazine) , First B nk Minneapolis/Saint Paul a�d Norwest Bank Minneap lis. , 2 . The bro er, dealer, or banker shall � verify that the Bankers Acceptance is eligible for �urchase by the Federal Reserve System. 3. i . . � � � (,� d�7- .�� . � 3. Banke s Acceptances should not belpurchased unless the yield is qreater than IInited States Treasury Oblig tions or Federal Agency Isst�es. C MMER A PAPER 1. Comme cial Paper shall be restricted to issues which matur in 270 days or less and sh�ll be rated A-1 (Mood 's) , or P-1 (Standards and Poors) , or F-1 (Fitch) . 2. Comme cial Paper shall not be purchased unless the yield is greater than United State}s Treasury Oblig tions or Federal Agency Issues. i D. B T g BE The City ill not purchase investments that, at the time of invest ent, cannot be held to matu�ity. This does not mean that an investment cannot be sold prior to maturity. AD RAT B Investments sha 1 be undertaken so as to inslure the preservation of capital in t e overall portfolio. Safety of principal is the foremost object 've. Liquidity and yield are� also important considerations. It is essential that money �.s always available when needed. T erefore, the City's investment goal is to maximize yield hile scheduling maturity dat�es to coincide with expenditure need . The City's inves ment portfolio shall be des�.gned to attain a market-average r te of return during budgeta�y and economic cycles, taking i to account the City's invesi�ment risk constraint and the cash flo characteristics of the portfolio. All participants in he investment process shall� seek to act responsibly as c stodians of the public trus . Investment officials shall void any transaction that m�ght impair public confidence in th City's ability to govern e�ffectively. A. PROCEDQRES � Cash manage ent is essential to a good �nvestment program. The Treasur Division of the Department of Finance and Manaqement ervices has responsibility �o organize and establish p ocedures for effective cashlmanagement, based on the followi g quidelines: ' 1. Cash fl w projections will be prepa�ed at the beginning of each budget year. 2. Each mo ning, cash balances will belprepared based on cash re eived the previous day, dis ursement float and sizeabl checks or wire transfers t�at present investm nt opportunity. 3 . Each mo ning, the investment record will be reviewed and upd ted as investments mature o� are purchased. 4 . j �I i