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Phone: 763.44 ~.Z020 <br />Fax: ~63,~4t.8099 <br />May 6, 201 D <br />To: Elk River Municipal Utilities Commission <br />John Dietz <br />Jerry Gumphrey <br />Daryl Thompson <br />From: Troy Adams <br />Subject. Review and Consider the revised Investment Policy and the proposed Reserves Policy <br />0n March 9th, the Investment Committee met to review ERMU's current Investment Policy. A <br />number of issues with the current Investment Policy were identified. First, it was determined <br />that a stand alone policy was needed to set criteria for the financial reserves, Second, the policy <br />needed to be updated to establish formal delegation of authority and reporting requirements. The <br />revised Investment Policy is attached for review and consideration. Staff recommends adopting <br />the revised Investment Policy, <br />During the March 9th Commission meeting, the Investment Committee provided an update to the <br />Commission on the need for a financial reserves policy. At the April 13th Commission meeting, <br />the Utilities Commission took action on the reserve balance target level criteria <br />recommendations made by the Investment Committee and directed staff to draft a reserves policy <br />based on the adopted criteria, The proposed Financial Reserves Policy is attached for review and <br />consideration. Staff recommends adopting this policy, <br />Reserves Levels are presented for discussion: <br /> Electric Water <br />Cash balances per audit 6,091,320 2,500,960 <br />Restricted for Debt Service 724,500 <br />Unrestricted Designated Reserve 3,315,181 1,194,758 <br />Unrestricted Reserve 2,051,639 1,306,202 <br />Total Reserves 6,091,320 2,500,960 <br />