ERMU Misc. 12-13-2005 - Laserfiche WebLink

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Investment Committee Meeting 11/22/2005 Members present: John Dietz, Bryan Adams, Theresa Slominski The broker certificates were reviewed and ERMU will be using the same three that the City of Elk River utilizes (RBC Dain Rauscher, Smith-Barney, and Piper Jaffray.) All ' brokers have been contacted and the paperwork has been started to obtain the certificates and open accounts. Theresa Slominski will be able to sign as the official of ERMU on these forms. ' Current investments and maturity dates were reviewed along with cash flow needs in 2006. With the 2006 bond issuance, there will be excess funds that will be available, which will lessen the need for borrowing from reserves to cover cash flow demands in the summer months. Theresa will need to determine what dollar amount of investments ERMU can be comfortable with maturing in the summer months as a precautionary measure. The need for diversification of investments was addressed since we currently have everything invested in CDs and the majority is at The First National Bank of Elk River. Two approaches for reserves balances were attached with the agenda. Current reserve balances were reviewed and discussion was had regarding the goal amount for reserves. It could be a long time before we would be where we think we should be, but we should keep working towards the goal. ' Currently, all reserves are classified as construction reserves, and the appropriateness of this classification was discussed. If the reserves were put in construction reserves, then ' the intent can only be assumed to be used for construction, but it may have been intended to be the bond reserve too. We can't simply reclassify them as part construction reserve and part bond reserve, because the intent is hard to determine at this point in time. It was discussed that we should inquire about obtaining a line of credit with the bank should we ever need to access additional funds in an emergency situation. ' The amount of$750,000 that was "borrowed" this summer will be reinvested with all three brokers, at $250,000 each. Theresa will determine what maturity dates will be necessary and then have the brokers advise suggested investment types.