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as the reasonableness of their cost estimate and <br />recommend Council authorize the renewal of their <br />contract for 1988. <br />Mayor Fauson moved and Scarpella seconded to <br />approve the Engagement Letter with Bondi & Co. for <br />the City's 1988 Audit. Motion passed 7-0. <br />RESOLUTION #21 - CITY'S INVESTMENT <br />POLICIES Williamson read in its entirety Resolution #21, "A <br />Resolution amending the Investment Financial <br />Policies for the City of Louisville." <br />Asti-Caranci e~cplained that the City is <br />experiencing problems in investing its cash with <br />the current investment policies of the City. <br />Areas of concern are: 1) coverage in excess of <br />$100,000, and 2) t:he restriction in the policy <br />that limits the City to invest in Certificate of <br />Deposits only. <br />The current policy of the City requires that <br />banking institutions collateralize all amounts in <br />excess of $100,000 by government securities. Some <br />banks have had to pledge a mix of government <br />securities and mortgages. The concern is the <br />potential exposure of the general and utility <br />funds, i.e., payroll or accounts payable could be <br />held up while the City liquidated mortgages. The <br />main concern with the City's current policy is <br />dealing with the amounts in excess of $100,000. <br />In accordance with the Colorado State Statutes, <br />this Resolution wi7.1 allow the City to invest in <br />other instruments besides C.D.'s. For large sums <br />of money it is extremely time consuming and <br />cumbersome to deal with separate institutions <br />limiting the City investments to $100,000 C.D.'s. <br />Buying government securities such as Repurchase <br />Agreements, T-Bills, T-Notes, T-Bonds, etc., would <br />not only be easier, but more secure and efficient <br />than interest-bearing deposits. <br />Szymanski pointed out that the Finance Committee <br />did also review this proposal and keeping with the <br />City's policy of managing investment money, <br />looking at safety, liquidity and yield, the <br />Committee felt that this is an appropriate change <br />to make in the City's investment policy as it <br />enhances the City's, ability to invest the City's <br />money more prudentl;y. <br />Mayor Fauson moved and Sackett seconded to adopt <br />Resolution #21, Series 1988. The motion passed 7- <br />0. <br />10 <br />