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<br />City Council <br />Study Session Summary <br />September 23, 2008 <br />Page 4 of 4 <br />Mayor Sisk and several Councilors thanked Director Watson and Mr. Leary for <br />the work they did on the 2008 model. <br /> <br />4. City Manager Items <br />Mayor Sisk went over the Advance Agenda and pointed out that several meeting <br />dates had been changed and that there were two special meetings coming up <br />soon. The Mayor pointed out that the November 10th Study Session was now <br />available to hold Board/Commission interviews on and asked that Councilors <br />check their calendars and let Debbie know if there were any conflicts with holding <br />the interviews on November 10th and again on November 13th if need be. <br /> <br />Councilor Frost Yarnell said the Cultural Council would like to meet with the <br />Council during a Study Session sometime in the Fall. It appeared that October <br />28th or December 9th were the only dates available. <br /> <br />Mayor Pro Tem Sheri Marsella asked what time the October 1st Special Budget <br />Meeting was starting. Mayor Sisk said that it would begin at 7:00 PM but that the <br />October 13th Special Joint Meeting with Louisville Revitalization Commission <br />(LRC) would begin at 5:00 PM. <br /> <br />Mayor Sisk asked Director Watson to give an update on the Colorado Diversified <br />Trust (CDT) issue. Director Watson stated that the City's main depository, 1st <br />National Bank, uses CDT as a "sweep" account for the City's general operations <br />account. On Monday, September 22,2008, Director Watson learned that all <br />accounts at CDT were moved to Colotrust (another local government investment <br />pool) on Wednesday, September 17th. This action was because CDT's <br />investment pool included $5 million of commercial paper issued by Lehman <br />Brothers. This holding represented approximately 1.8% of CDT's total assets. <br />Lehman Brothers has filed for bankruptcy. When all the CDT accounts were <br />moved to Colotrust, only 98% of the value was transferred. Director Watson <br />estimated that the City's CDT account had a balance of approximately $2.4 <br />million at the time of the transfer. Therefore, if the Lehman Brothers holding is <br />eventually valued at zero, the City could lose approximately $44,000. Director <br />Watson stated that both the City and CDT has followed state regulations <br />regarding its investment strategies. <br /> <br />Council Ron Sackett stated that this was not just a local issue but suggested that <br />precautions should be taken. <br /> <br />5. Adjourn <br />Meeting adjourned at 8:15 PM. <br /> <br />Submitted by Deborah Borelli <br />9/24/08 <br />