Laserfiche WebLink
FC CASE <br /> <br />REVIEW AND ADOPT INVESTMENT POLICY FOR THE CITY OF RAMSEY <br /> By: Jessie Hart, Finance Officer <br /> <br />Background: <br /> <br />The City of Ramsey does not currently utilize a written investment policy. It is a common <br />occurrence for the City to have cash balances in various fund accounts which, though allocated <br />for a specific purpose, are temporarily not needed. When this occurs, the funds are invested in <br />accordance with State Statutes. <br /> <br />Effective cash management is recognized as essential to good fiscal management. This is <br />particularly true as mounting costs and expanding programs have placed ever increasing <br />pressures on local governmental revenues. The extent to which local governments can obtain <br />investment returns on funds not immediately required can help to reduce this pressure. <br />Investment policies must be well founded and uncompromisingly applied in their legal, vendor, <br />and administrative aspects. <br /> <br />It is necessary to have each official depository sign an annual certification that they are aware of <br />a city's investment policies and will comply accordingly. With out a formally adopted policy, <br />the depository simply signs the form with the understanding State Statutes are the policy in force. <br />Upon adoption of a formal policy, it is necessary to provide each existing or potential depository <br />with a copy of the policy and have each certify that the policy will be complied with. <br /> <br />Attached is a draft Investment Policy that meets Statutory requirements, and also provides some <br />administrative guidelines for the cash management at the City of Ramsey. This formal policy <br />differs very little from the practices currently utilized in the Finance Department. <br /> <br />Staff Recommendation: <br /> <br />Staff recommends adoption of the attached City of Ramsey Investment Policy effective <br />immediately upon adoption. <br /> <br />Committee Action: <br /> <br />Motion to recommend City Council adoption of City of Ramsey Investment Policy effective <br />immediately upon adoption and direct the Finance Officer to transmit a copy of the City of <br />Ramsey Investment Policy and new certification to each existing official depository. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Finance Officer <br /> <br />FC: 10/22/96 <br /> <br /> <br />