2011.02.10 Work Session PacketCRYSTAL CITY COUNCIL
WORK SESSION
WORKING AGENDA
Thursday, February 10, 2011
7:00 p.m.
Conference Room A
Pursuant to due call and notice given in the manner prescribed
City Charter, the Work Session of the Crystal City Council was
Thursday, February 10, 2011 in Conference Room A located a
Crystal, Minnesota.
I. Attendance
Council members Staff
Budziszewski Norris
J. Moore Therres
Selton Hansen
Anderson
Bowman
Hoffmann
Deshler
II. Agenda
The purpose of the work session is to discuss the following agenc
Employee Leave Benefits;
Draft Investment Policy;
Fourth Quarter 2010 Report of Investments Results; and
Follow up from January 25 goal -setting work session.
III. Adjournment
The Work Session adjourned at p.m.
GACity Clerk\Council\Work sessions\wsagenda_2.10.11.doc
Memorandum
C'ATY ui
Ci[YSTAL
DATE: February 3, 2011
TO: Mayor and Council
FROM: Anne Norris, City Manager
Kim Therres, Assistant City Manager
SUBJECT: Leave Benefits
During recent budget work session discussions the idea of implementing a paid time off
PTO) system has been raised.
For the past two months the City of Crystal participated in a PTO study group facilitated
by the League of Minnesota Cities and Metro Area Human Resource professionals.
The group met to learn about various PTO plans and any issues related to
implementation of a PTO plan.
The attached document briefly explains current leave benefits for Crystal employees
and the concept of a paid time off system, including implementation considerations.
The intent is to provide background on our current system and develop a common
understanding of what a PTO system is prior to developing any specific PTO proposal.
At the February 10 City Council work session, Kim Therres and I will be available to
explain this information and answer any questions.
Attach:
LEAVE BENEFITS
LEAVE BENEFITS
In general, state and federal laws do not mandate any paid leave benefits (with a few
exceptions, such as military training). However, once a city offers a paid leave benefit, there
are laws that will protect employees' right to equal access to the benefits. There are a number
of laws that ensure that all employees will receive the benefits without regard to race, color,
national origin or any other protected status. In addition, state and federal laws will often
dictate that if a city offers paid leave in one type of situation, it must also do so in another. For
example, if a city offers paid leave for an employee who breaks a leg, it will also have to offer it
when an employee has complications during pregnancy.
According to the League of Minnesota Cities, public sector employers have traditionally
provided good leave benefits. This practice helps compensate employees for wages and other
perks" that generally aren't offered in the public sector (bonuses, prizes awarded for company
sales, marketing or customer service goals, profit sharing, etc.) In Minnesota, cities use a
traditional set of leave benefits or they offer "paid time off" or a PTO model. Most cities in
Minnesota retain the traditional model, but some have moved to the PTO model, which is often
used by the private sector.
Traditional Time Off Model (sick and vacation)
Under a traditional time off model, employees have separate leaves for different types of needs
such as vacation leave and sick leave. The leave is related to the reason or the situation.
Paid Time Off (PTO) Model
Under a PTO model, employees do not earn separate accruals for vacation and sick leave.
Instead, they receive only one type of leave, which they can use for any personal absence.
Employees do not need to justify their usage to the same extent that they do for sick leave.
This leave is generally accrued in a slightly lower amount than vacation and sick leave
combined, but is paid out at 100% at retirement or resignation.
Benefits of Paid Leave
Regardless of which model an employer uses offering paid leave provides many benefits:
It helps attract and retain qualified employees;
Employees who periodically take breaks from their work are likely to be more
productive and less likely to suffer "burn out."
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Employees need time off to attend to their personal affairs from time to time and paid
leave allows the employee to take time away instead of using work time for this
purpose; and
From an auditing standpoint, it is good practice to have employees away from the job
from time to time. This increases the likelihood that any illegal or inappropriate
practices will be discovered by the employee who is filling in for the absent employee.
CITY OF CRYSTAL— LEAVE AND RELATED BENEFITS
The City of Crystal offers the following leave benefits, some of which are paid using accrued
leave:
Holidays (paid)
Vacation (paid through accrual)
Sick (Paid through accrual)
Workers' Compensation for a qualifying event
Funeral (paid through accrual of sick leave)
Military Leave (paid up to 15 days per year)
Jury Duty (paid, but fees are turned over)
Election Daytime needed to vote
Parental Leave for School Conferences (unpaid up to 16 hours annually)
Personal Leave (unpaid up to six months, extended by City Manager)
Family Medical Leave — FMLA (up to 12 weeks (480 hours) unpaid , but can
be paid through accrued vacation, sick or comp)
Medical Leave of Absence (unpaid up to 12 months)
Va ation Leave
The City offers paid vacation benefits to all regular full and part-time employees.
The vacation schedule for all full-time regular employees is based on the employee's
anniversary of hire date (vacation schedule for regular part-time employees is pro -rated) as
follows:
0-5 years of completed service
6-10 years of completed service
11 years of completed service
12 years of completed service
13 years of completed service
14 years of completed service
15 years of completed service
16 years of completed service
17 years of completed service
12 days earned per year_
17 days earned per year_
18 days earned per year
19 days earned per year_
20 days earned per year
21 days earned per year.
22 days earned per year
23 days earned per year
24 days earned per year
Not to exceed 24 days._
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Vacation Probationary Period
A "waiting period" of six months of employment is required for newly hired employees before
vacation can be used.
Minimum Yearly Vacation Use
Each full-time employee must expend a minimum of 80 hours of vacation each calendar year.
Newly hired employees may request in writing to the City manager to allow carrying over
vacation from their first year.
Maximum Vacation Accumulation
Vacation accumulation, including the current vacation earned from year to year, may not
exceed a total accumulation of 240 hours.
Vacation Requests
Employees may request to take earned vacation leave anytime after completion of the initial
probationary period. Vacation requests should be submitted to the department head as soon
as practical, or a minimum of 48 hours, prior to commencement of requested vacation leave.
Payment at Termination
State law requires an employer to pay "wages earned" to any employee who has been
discharged. Although the state statute does not define "wages earned," it has been the
practice of the City of Crystal to pay out accrued vacation upon termination as it is understood
to be a benefit "earned" by the employee.
Vacation Use History+.
Full —time Regular Employees
Year Number of FT Employees Average Number of Vacation Days (8 hours
2006 92 15.66
2007 94 15.53
2008 94 15.67
2009 92 17 _
18.3201089
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SICK LEAVE
The City of Crystal offers sick leave benefits to regular full-time and part-time employees. Sick
leave is accumulated at 12 days per year for regular full-time employees, and is pro -rated for
regular part-time employees.
Sick leave may be used for illness, injury, child birth, disability, outpatient or inpatient
treatment for mental illness, employee assistance program, alcoholism or drug addiction or by
necessity for medical or dental care. Sick leave may be used by the employee to care for the
employee's spouse, children, or parents in case of illness. The City Manager may require a
medical certificate as deemed necessary before approving the utilization of sick leave.
Sick leave may be taken only to the extent that it is earned.
Employees may request to take earned sick leave after six months of employment.
History of Use
Full —time Regular Emplovees
Year Number of Full-time Employees Average Number of Sick Days (8 hours)
2006 92 5.72
6.35200794
2008 94 7.0
2009 92 7.12
2010 89 6.2
Payment at Termination - Severance
Employees with 10 years or more of continuous service, except employees who are discharged
for cause, will be paid forty percent (40%) of the employee's accumulated sick leave to a
maximum cap of 960 hours (maximum payout is 384 hours). The cap was put into effect in the
1990's.
Payment History of Sick Leave Severance
Year Number of Employees who Qualified for Payout Total Payout
2003 9 158,228.46*
2004 7 6,200
2005 2 16,384.71
2006 0
1
0
2007 9,839.60
2008 2 9,695.86
2009 1 215.42
2010 3 11,607.23
Early retirement incentive offered.
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Sick Leave Accruals for Employees Who Qualify for Sick Leave Severance as of January 19,_2011
Number of Total Total Total Difference Difference in
Employees Number of Number of Amount of in Number Number of Sick
who Qualify Sick Leave Sick Leave Sick Leave of Sick Leave Hours
for Payout Hours Hours Liability @ Leave Gross — Liability
Gross) Capped) 40% of Cap Hours Cap)
Gross -
Capped)
Totals 1 55 36,359.93 28,851.40 11,540.56 7,508.53 24,819.37
BENEFITS ASSOCIATED WITH VACATION AND SICK LEAVE
The sick leave benefit serves many purposes. In addition to covering less serious absences, sick
leave also serves as a short term disability policy for many employees as well as incentives for
other benefits.
Health Retirement Saving Account
In the past, city employees who retired from the City of Crystal received single coverage health
insurance paid by the City until they were eligible for Medicare coverage, or age 65. Over the
years, the City has worked to move away from that benefit by converting to a Retirement
Health Saving Account plan. A one-time lump sum contribution of the present value of funds
set aside for each qualified employee for the previous insurance program was paid out to make
this conversion. The employer and employee contributions vary by employee group as follows:
Local 44 and 56- Police Officers and Police Supervisors
Employer $50 per month per employee
Employee Employees who maintain a minimum balance of 120 hours in their sick
leave banks shall contribute 36 hours per year.
Or
Employees who maintain a minimum balance of 960 hours in their sick
leave banks shall contribute 60 hours per year.
Local 49 and Non -Represented
Employer
Employee
25 per month per employee
Employees who maintain a minimum balance of 120 hours in their sick
leave banks shall contribute 16 hours per year of sick leave to the plan.
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Family Medical Leave
During Family and Medical Leave, the City requires that employees use all accumulated paid
vacation time over 40 hours. During Family and Medical Leave, employees may also use
accumulated sick leave provided that the circumstances of the leave comply with eligibility for
the use of sick leave under the current policy. Following a normal childbirth delivery,
employees may use up to six weeks of paid sick leave for maternity leave and up to two weeks
of paid sick leave for paternity leave. Following the placement with the employee of a child for
adoption or foster care, employees may use up to two weeks of paid sick leave.
Funeral Leave
Earned sick leave may be taken in the event of a death in an employee's immediate family or in
the event of a death of other persons living in an employee's household. In this section, the
term "immediate family" includes spouse, children (including stepchild/foster child), parents
including stepparent or legal guardian), grandparents, siblings (including stepsiblings), aunt,
uncle, grandchildren, grandparent -in-law, father-in-law, mother-in-law, brother-in-law and
sister-in-law, son-in-law, daughter-in-law. The length of leave will be determined by the
department head and the City Manager. The City Manager may grant funeral leave for other
reasons.
Workers' Comp Leave
An employee who becomes eligible to receive Workers' Compensation will retain the total
amount of the Workers' Compensation check and may receive the difference between his or
her Workers' Compensation payment and the employee's regular gross salary through the use
of accrued sick leave.
PAID TIME OFF MODEL AND IMPLEMENTATION CONSIDERATIONS
A paid time off "PTO" model combines traditional vacation and sick leave banks into one
universal bank of time.
Benefits and Drawbacks
Some Possible Benefits of a PTO Model Some Potential Drawbacks of a PTO Model
Allows flexibility in balancing choices for time Supervisory oversight is not reduced.
off.
Unplanned absences still occur.
Can be viewed as being employee owned by
eliminating the sick time ownership struggles Administration of Family Medical Leave may
between the Employer and the Employee. be more difficult as employer may not be
aware of medical condition.
May reduce sick leave abuse.
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Some Possible Benefits of a PTO Model
Provides equity between individual
employees. Everyone has equal ability to use
the leave. Employees who don't use sick leave
will receive a greater benefit.
Employee leave use may begin sooner and
more leave may be available at a faster rate
Employee receives the benefit payout at
termination.
Could reduce accumulated leave liability
Employees can take time off to care for
important people in their lives who do not
qualify as immediate family members under
the sick leave policy.
Considerations
Some Potential Drawbacks of a PTO Model
Employees may not be protected financially
when using Family Medical Leave. Oftentimes
employees view PTO as vacation and can
become short on leave if they have a
prolonged illness or a need for FML.
New employees need several years to build up
their accrual and may not be able to be
covered in the event of a serious illness or
other type of protected leave.
Employees may choose to come to work when
sick in an effort to keep "their" time.
May increase employee time away from work,
particularly those who rarely use sick leave.
Work may be delayed due to increased
absences.
The considerations involved with the implementation of a PTO plan can be a bit challenging.
Here is a listing of some of the considerations related to implementation:
Who is going to be covered under the model?
o All employee groups
o Current employees
o Future employees
What will the goals of a PTO plan be?
If plan is going to cover current employees how will existing accruals be converted in an
effort to keep employees "whole" and provide equity among the employee groups.
Negotiation of the plan and all other benefits related to existing leave.
Implementation could result in administration of multiple leave plans.
Employee resistance will need to be managed and addressed.
Additional benefits may need to be added, such as employer paid short- and long-term
disability.
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DATE: February 2, 2011
TO: Mayor and City Council
Anne Norris, City Manager
FROM: Charles Hansen, Finance Director Ci R
SUBJECT: Consideration of a Draft Investment Policy
Current Policy
The City of Crystal's current investment policy was in place when I arrived here in 2005.
Investment policies haven't changed dramatically since the current policy was written,
but there are some changes in form and process that I would like to include.
Resources
looked to several resources while writing the proposed policy including the following:
Model investment policy written by the Government Finance Officers Association
Model investment policy written by the League of Minnesota Cities (based on
GFOA model investment policy)
Minnesota Statutes, Chapter 118A
Statements of Position from the Office of the State Auditor
Draft Policy
I used the LMC model as the starting point for my draft since they had already
incorporated provisions of Minnesota Statutes, Chapter 118A into the GFOA model
policy. I made further modifications based on the Statements of Position from the
Office of the State Auditor and some of my own preferences.
Compared to the current investment policy, the draft policy shortens up procedural
sections on things like reporting and delegation of authority while clarifying and
expanding other sections.
Conclusion
I recommend that the City Council discuss the proposed investment policy and suggest
any changes you would like to see.
Attachments:
Current Investment Policy
Proposed Investment Policy
Minnesota Statutes, Chapter 118A
CITY OF CRYSTAL
INVESTMENT POLICY or
I, INTRODUCTION
The purpose of this investment policy is to establish:
the City of Crystal's investment objectives
investment reporting practices to management and the
council
investment instruments that are appropriate for the
City
criteria for selection of banks and dealers
requirements regarding maturities and diversification
investment principles of risk, prudence and ethics
internal controls over investments
This investment policy will be submitted annually to the
city council for its review with the budget along with all
other fiscal policies and goals. This process ensures that
the council members are fully aware of policies in place and
that they and staff have the opportunity to refine the
policy on a annual basis. as may be necessary.
II. SCOPE
This investment policy applies to all funds held by the City
of Crystal, including escrowed funds, and those funds
invested on behalf of the North Metro Mayors Association.
III. INVESTMENT OBJECTIVES
A. The primary objectives of the investment policy are:
1. Foremost, to maintain the safety of principal. Except
for long-term investments for which short-term market
fluctuations are tolerable, each investment transaction
shall seek first to ensure that capital losses are avoided
whether they be from defaults or erosion of market value.
2. To remain sufficiently liquid to meet disbursement
requirements. The accomplishment of this objective shall he
based on cash flow forecasts prepared during the budget
process, and maintained throughout the year. Priority shall
be given to investments that provide liquidity over yield in
order to meet disbursement requirements.
3. To diversify the portfolio by individual financial
institution, government agency or by corporation in the case
of commercial paper to reduce the exposure to risk of loss.
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To maintain the portfolio such that the we shall attain
a market -average rate of return taking into account the
investment options as set forth in Minnesota Statutes and
the liquidity needs of the various funds. Benchmarks for
periodic measurement of market -average rate of return are
discussed in the reporting section of this policy-
S To maintain public confidence in the City of Crystal.
All participants in the investment process shall .seek to act
responsibly and avoid any transaction that might impair the
credibility of the City of Crystal.
IV, REPORTING
The investment reporting function shall include requirements
for: budgetary reporting, interim reporting, internal
reporting, and annual reporting,
A. Budgetary reporting. 'As part of the annual budget
interest income shall be estimated for all funds based on a
formal cash flow forecast: This forecast shall take into
account the historical pattern of inflows and outflows of
cash the adopted fiscal..policies and any other pertinent
factors affecting .cash flow.
B. Interim -reporting. The.`-Jn stment -portfolio shall be
provided to the .council .on a -quarte271y.:loasis . These reports
shah. be .s.equenced by .maturity date .and shall state the type
of investment, amortized oosn, rate and yield percentages,
and shall indicate an annualized rate of return based on
the daily interest amount. Any variances from budgeted
interest income shall be reported:
C. Internal reporting. Finance department procedures shall
ensure that the investment portfolio is maintained on a
daily basis, reconciled to the accounting system, and
available to the City Manager or City Council at any time.
The City Manager shall be provided with the investment
portfolio on a monthly basis.
D. Annual reporting. By April 15, of each year the Finance
Department shall prepare a written comprehensive report of
the prior calendar years investment activity. This report
shall include
1. a summary of the investment activity and rate of return
for the calendar year then ended,
2. a discussion of how the years investment activity
compares to the stated objectives and the budgeted amount,
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3. A detailed comparison of rate of return with other
benchmarks. These benchmarks will include the Minnesota
Municipal Money Market Fund, and the indexes publi.'shed
monthly in the Government Finance Officers publication "The
Public Investor."
V. INSTRUMENTS
The City of Crystal is restricted to investments authorized
by Minnesota Statutes, section, 475.66 a copy of which is
attached as Exhibit 1.
VI. S.WKS AND DEALERS
Depositories shall be selected through a banking services
procurement process which shall include a comprehensive
review of credit characteristics and financial history by
the finance department or reliance on selection criteria by
an independent third party. Only brokers and dealers of
government securities that report directly to the New York
Federal Deserve Dank shall be utilized. No business shall
be conducted with any securities broker or dealer or outside
money manager with whom or through whom public entities have
sustained losses on investments. All investment purchases
shall be completed on a "Delivery versus Payment" basis with
all securities held in safekeeping by the banking
institution with whom the City of Crystal has designated its
official depository. Preference shall be given.to
Minnesota brokers and dealers.
VII. MATURITIES AND DIVERSIFICATION
Funds shall be diversified to eliminate the risk of loss
resulting from the over concentration of assets in a
specific maturity, a specific issuer, or a specific class oJ,
maturities. With the exception of P.IR and debt service
funds, a majority of the investment portfolio is used to
fund recurring operations. Maturities should not be
extended beyond the dates necessary to meet these projected
liquidity needs and should be staggered in such a way that
avoids over concentration in a specific maturity sector.
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VIII. RISKS PRUDENCE AND ETHICS
The City of Crystal recognizes that investment risks can
result from issuer defaults or market price changes. The
Minnesota Statutes governing permissible investments and the
above diversification guidelines are designed to control
risk to some degree. The finance department is expected to
display prudence in the selection of securities, as a way to
minimize default risk. No individual transaction shall be
undertaken which jeopardizes the total principal positicn of
the overall portfolio. In the even of a default by a
specific issuer, the finance department shall review, and if
appropriate, proceed to liquidate securities having
comparable credit risks.
The standard of prudence to be used by investment officials
shall be the "prudent person" and shall be applied in the
context of managing the overall portfolio.
Officers and employees involved in the investment process
shall refrain from personal business activity that could
conflict, or gives the appearance of conflict, with prope-r
execution of the investment program or impair the ability tcj
make impartial investment decisions.
Annually such officers and employees shall.disclose in
writing to .the .City Manager any material financial ?nterest$
in .financial institutions that conduct business with the
City of Crystal.
IX. DELEGATION OF AUTHORITY AND INTERNAL CONTROLS
Management of the investment program is itemized as a
responsibility of the Finance Director in the city code. Th.e
Finance Director shall establish written procedures and
internal controls for the operation of the investment
program consiateat with this investment policy. In the
absence of the Finance Director the individual so designated
in the procedure shall exercise Lhe same authority, with
the exception of extending maturities. No other person may
engage in any i-avastment transaction except as provided for
by this policy. In addition to the delegation of the
investment function, the Finance Director shall have full
authority to initiate necessary wire transfers or intrabank
transfers as necessary to accomplish the investment
objectives as stated herein.
The Finance Director shall establish a system of internal
controls to be documented in writing and subject to external
auditor review. The controls shall be designed to prevent
losses from fraud, employee error, unanticipated changes in
financial markets and imprudent action by employees and
officers of the City of Crystal
L
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CITY OF CRYSTAL
PROPOSED INVESTMENT POLICY
I. PURPOSE AND NEED FOR POLICY
It is the policy of the City of Crystal to invest public funds in a manner which will provide the
highest investment return with the maximum security while meeting the daily cash flow
requirements of the City and conforming to all state and local statutes governing the investment
of public funds. The purpose of this Policy is to develop an overall program for cash
investments, designed and managed with a high degree of professionalism, worthy of the public
trust; to establish that elected and appointed officials and employees are custodians of a portfolio
which shall be subject to public review; to establish cash investment objectives, delegation of
authority, standards of prudence, internal controls, authorized investments, selection process for
investments, and broker representations.
iI. SCOPE
This Policy applies to the investment and deposit of all funds of the City.
III. POOLING OF FUNDS
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve
balances from all funds to maximize investment earnings and to increase efficiencies with regard
to investment pricing, safekeeping and administration. Investment income will be allocated to the
various funds based on their respective participation and in accordance with generally accepted
accounting principles.
IV. OBJECTIVE
At all times, investments of the City shall be in accordance with Minnesota Statutes Chapter
118A and amendments thereto. The primary objectives of the City's investment activities shall
be in the following order of priority:
A. Safety
Safety of principal is the foremost objective of the investment portfolio. Investments shall be
undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio.
The objective will be to mitigate credit risk, interest rate risk, and custodial risk.
1. Credit Risk: Credit Risk is the risk of loss due to failure of the security issuer or backer.
Thus, investments shall be limited to the types of securities listed in Section VIII of this
policy and the portfolio shall be diversified so that the impact of potential losses from any
one type of security or from any one issuer will be minimized. Furthermore, the City
Council will approve all financial institutions, brokers, and advisers with which the City
will do business.
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Interest Rate Risk: Interest Rate Risk is the risk that the market value of securities in
the portfolio will fall due to changes in general interest rates. The City will minimize
Interest Rate Risk by structuring the investment portfolio so that securities mature to
meet cash requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity.
3. Custodial Risk: The City will minimize Custodial Risk, which is the risk of loss due to
failure of the depository bank or broker, by requiring the bank or broker to have
insurance through the Federal Deposit Insurance Corporation (FDIC) and Securities
Investor Protection Corporation (SIPC) insurance or transfer the security to a custodian
bank to be held on the City's behalf.
B. Liquidity
The investment portfolio shall remain sufficiently liquid to meet projected disbursement
requirements. This is accomplished by structuring the portfolio so that securities mature
concurrent with cash needs to meet anticipated demands. Generally, investments shall have
laddered" maturities so that money becomes available on a regular schedule. Liquid funds will
allow the City to meet possible cash emergencies without being penalized on investments.
C. Yield
The investment portfolio shall be designed to manage the funds to maximize returns consistent
with items A and B above and within the requirements set forth in this Policy. Subject to the
requirements of the above objectives, it is the policy of the City to purchase investments through
multiple banks & brokers; seeking the best investment yields.
V. DELEGATION OF AUTHORITY
Responsibility for the investment program is hereby delegated from the City Council to the
Finance Director. Authority to conduct actual investment transactions are delegated to the
Finance Director & Assistant Finance Director, who shall act in accordance with procedures as
established with this investment policy. The authorized individuals, when acting in accordance
with this Policy and exercising due diligence, shall not be held responsible for losses, provided
that the losses are reported immediately and that appropriate action is taken to control further
losses.
VI. PRUDENCE
The standard of prudence to be used by investment officials shall be the "prudent investor", and
shall be applied in the context of managing the investments. All investment transactions shall be
made in good faith with the degree of judgment and care, under the circumstances, that a person
of prudence, discretion and intelligence would exercise in the management of their own affairs.
This standard of prudence shall mean not for speculation, and with consideration of the probable
safety of the capital as well as the probable investment return derived from assets.
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VII. INTERNAL CONTROLS
Internal controls are designed to prevent loss of public funds due to fraud, misrepresentation,
error, unanticipated market changes, or imprudent actions. Before the City invests any surplus
funds, quotations shall be obtained. Verbal quotations received from brokers, shall be followed
by subsequent written confirmation. Proposed investment securities shall be analyzed against
the requirements and objectives of this policy to determine which securities would be most
advantageous.
The investment portfolio will be maintained on a daily basis, reconciled to the accounting system
and bank records, and shall be available to the City Manager or City Council at any time.
The Finance Director will report quarterly to the City Council on the details of all funds invested
and the total interest received on all securities year to date.
VIII. AUTHORIZED INVESTMENTS
All City investments and deposits shall be those allowable by Minnesota Statutes Chapter I I8A
and amendments thereto. State law defines the types of securities that a financial institution may
pledge as collateral for public deposits. These securities include:
United States Treasury Issues
i Issues of US Government Agencies and Instrumentalities
Obligations of State and Local Governments
Certificates of Deposits issued by U.S. Banks fully insured by the federal deposit
insurance company or federal agency.
Bankers' Acceptances issued by U.S. Banks
Commercial Paper issued by U.S. Corporations or their Canadian subsidiaries with
maturities of 270 days or less
Money Market Mutual Funds
f Government Investment Pools, including the 4M Fund, the Liquid Asset Fund,
MAGIC Fund and MN Trust
Securities that are not direct obligations of the U.S. government or are not covered by F.D.I.C.
insurance or collateral, shall be reviewed for their bond rating at the time of purchase and at least
quarterly thereafter and shall require the following bond ratings.
f State and local securities that are general obligations of any state or local government
with taxing powers require "A" or better rating by a national bond rating service.
State and local securities that are revenue obligations of any state or local government
with taxing powers require "AA" or better rating by a national bond rating service.
Commercial paper requires rating in the highest quality category by at least two
nationally recognized rating agencies.
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IX. COLLATERALIZATION
In accordance with MN Statutes 118A, collateralization will be required on all demand deposit
accounts, including checking, savings, and money market savings accounts, and non-negotiable
certificates of deposit in excess of federal deposit insurance.
Since the amount a public entity has on deposit will vary from time to time, the financial
institution needs sufficient amounts of pledged collateral to cover 110% of the uninsured amount
on deposit during peak deposit times.
X. DIVERSIFICATION
The City will attempt to diversify its investments according to type and maturity. The portfolio,
as much as possible, will contain both short-term and long-term investments. The City will
attempt to match its investments with anticipated cash flow requirements. Extended maturities
may be utilized to take advantage of higher yields.
No more than 5% of the overall portfolio may be invested in the securities of a single issuer,
except for the securities of the U.S. Government and its agencies.
XI. CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business
activity that could conflict with the proper execution and management of the investment
program, or that could impair their ability to make impartial decisions.
XII. BROKER REPRESENTATIONS
Municipalities must obtain from their brokers certain representations regarding future
investments. Pursuant to Minnesota Statutes 118A, the City shall provide each broker with the
City's investment policy, and the securities broker shall submit a certification annually to the
City stating that the officer has reviewed the investment policies and objectives, as well as
applicable state law, and agrees to disclose potential conflicts of interest or risk to public funds
that might arise out of business transactions between the firm and the City. All financial
institutions shall agree to undertake reasonable efforts to preclude imprudent transactions
involving the City's funds.
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2010 Minnesota Statutes
Chapter ii8A. Deposit and Investment of Local Public Funds
Section Headnote
118A.01 Definitions
118A.02 Depositories; Investing: Sales, Proceeds, Immunity
118A.03 When and What Collateral Required
118A.04 Investments
118A.05 Contracts and Agreements
118A.06 Safekeeping; Acknowledgements
118A.07 Additional Investment Authority
118A.08 No Superseding Effect
118A.01 DEFINITIONS.
Subdivision 1. Application. The definitions in this section apply to sections 118A.01 to
118A.06.
Subd. 2. Government entity. (a) "Government entity" means a county, city; town, school
district, hospital district, public authority, public corporation, public commission, special district,
any other political subdivision, except an entity whose investment authority is specified under
chapter 11A or 356A.
b) For the purposes of sections 118A.02 and 118A.03 only, the term includes an American
Indian tribal government entity located within a federally recognized American Indian
reservation.
Subd. 3. Financial institution. "Financial institution" means a savings association,
commercial bank, trust company, credit union, or industrial loan and thrift company.
Subd. 4. Public funds. "Public funds" means all general, special, permanent, trust, and other
funds, regardless of source or purpose, held or administered by a government entity, unless
otherwise restricted.
History: 1996 c 399 art 1 s 2; 1999 c 151 s 39
118A.02 DEPOSITORIES; INVESTING: SALES, PROCEEDS, IMMUNITY.
Subdivision 1. Designation; delegation. (a) The governing body of each government entity
shall designate, as a depository of its funds, one or more financial institutions.
b) The governing body may authorize the treasurer or chief financial officer to:
1) designate depositories of the funds;
2) make investments of funds under sections 118A.01 to 118A.06 or other applicable law; or
3) both designate depositories and make investments as provided in this subdivision.
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Subd. 2. Sale; proceeds; immunity, if loss. (a) The treasurer or chief financial officer of a
government entity may at any time sell obligations purchased pursuant to this section and the
money received from such sale, and the interest and profits or loss on such investment shall be
credited or charged, as the case may be, to the fund from which the investment was made.
b) Neither such official nor government entity, nor any other official responsible for the
custody of such funds, shall be personally liable for any loss sustained from the deposit or
investment of funds in accordance with the provisions of sections I I8A.04 and I I8A.05.
History: 1996 c 399 art 1 s 3
118A.03 WHEN AND WHAT COLLATERAL REQUIRED.
Subdivision 1. For deposits beyond insurance. To the extent that funds on deposit at the
close of the financial institution's banking day exceed available federal deposit insurance, the
government entity shall require the financial institution to furnish collateral security or a
corporate surety bond executed by a company authorized to do business in the state. For the
purposes of this section, "banking day" has the meaning given in Federal Reserve Board
Regulation CC, Code of Federal Regulations, title 12, section 229.2(f), and incorporates a
financial institution's cutoff hour established under section 336.4-108.
Subd. 2. In lieu of surety bond. The following are the allowable forms of collateral in lieu of
a corporate surety bond:
1) United States government Treasury bills, Treasury notes, Treasury bonds;
2) issues of United States government agencies and instrumentalities as quoted by a
recognized industry quotation service available to the government entity;
3) general obligation securities of any state or local government with taxing powers which is
rated "A" or better by a national bond rating service, or revenue obligation securities of any state
or local government with taxing powers which is rated "AA" or better by a national bond rating
service;
4) general obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a
municipality accompanied by written evidence that the bank's public debt is rated "AA" or better
by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and
6) time deposits that are fully insured by any federal agency.
Subd. 3. Amount. The total amount of the collateral computed at its market value shall be at
least ten percent more than the amount on deposit at the close of the financial institution's banking
day, except that where the collateral is irrevocable standby letters of credit issued by Federal
Home Loan Banks, the amount of collateral shall be at least equal to the amount on deposit at the
close of the financial institution's banking day. The financial institution may furnish both a surety
bond and collateral aggregating the required amount.
Subd. 4. Assignment. Any collateral pledged shall be accompanied by a written assignment
to the government entity from the financial institution. The written assignment shall recite that,
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upon default, the financial institution shall release to the government entity on demand, free of
exchange or any other charges, the collateral pledged. Interest earned on assigned collateral will
be remitted to the financial institution so long as it is not in default. The government entity may
sell the collateral to recover the amount due. Any surplus from the sale of the collateral shall be
payable to the financial institution, its assigns, or both.
Subd. 5. Withdrawal of excess collateral. A financial institution may withdraw excess
collateral or substitute other collateral after giving written notice to the governmental entity and
receiving confirmation. The authority to return any delivered and assigned collateral rests with the
government entity.
Subd. 6. Default. For purposes of this section, default on the part of the financial institution
includes, but is not limited to, failure to make interest payments when due, failure to promptly
deliver upon demand all money on deposit, less any early withdrawal penalty that may be required
in connection with the withdrawal of a time deposit, or closure of the depository. If a financial
institution closes, all deposits shall be immediately due and payable. It shall not be a default
under this subdivision to require prior notice of withdrawal if such notice is required as a
condition of withdrawal by applicable federal law or regulation.
Subd. 7. Safekeeping. All collateral shall be placed in safekeeping in a restricted account at a
Federal Reserve bank, or in an account at a trust department of a commercial bank or other
financial institution that is not owned or controlled by the financial institution furnishing the
collateral. The selection shall be approved by the government entity.
History: 1996 c 399 art 1 s 4; 2003 c 51 s 15,16; 2004 c 151 s 1,2; 2004 c 174 s 2; 2007 c
44 s 7; 2007 c 57 art 3 s 39; 2008 c 154 art 10 s 1
118A.04 INVESTMENTS.
Subdivision 1. What may be invested. Any public funds, not presently needed for other
purposes or restricted for other purposes, may be invested in the manner and subject to the
conditions provided for in this section.
Subd. 2. United States securities. Public funds may be invested in governmental bonds,
notes, bills, mortgages (excluding high -risk mortgage -backed securities), and other securities,
which are direct obligations or are guaranteed or insured issues of the United States, its agencies,
its instrumentalities, or organizations created by an act of Congress.
Subd. 3. State and local securities. Funds may be invested in the following:
1) any security which is a general obligation of any state or local government with taxing
powers which is rated "A" or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing
powers which is rated "AA" or better by a national bond rating service; and
3) a general obligation of the Minnesota housing finance agency which is a moral obligation
of the state of Minnesota and is rated "A" or better by a national bond rating agency.
Subd. 4. Commercial papers. Funds may be invested in commercial paper issued by United
States corporations or their Canadian subsidiaries that is rated in the highest quality category by at
least two nationally recognized rating agencies and matures in 270 days or less.
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Subd. 5. Time deposits. Funds may be invested in time deposits that are fully insured by the
Federal Deposit Insurance Corporation or bankers acceptances of United States banks.
Subd. 6. High -risk mortgage -backed securities. For the purposes of this section and section
118A.05, "high -risk mortgage -backed securities" are:
a) interest -only or principal -only mortgage -backed securities; and
b) any mortgage derivative security that:
1) has an expected average life greater than ten years;
2) has an expected average life that:
i) will extend by more than four years as the result of an immediate and sustained parallel
shift in the yield curve of plus 300 basis points; or
ii) will shorten by more than six years as the result of an immediate and sustained parallel
shift in the yield curve of minus 300 basis points; or
3) will have an estimated change in price of more than 17 percent as the result of an
immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points.
Subd. 7. Temporary general obligation bonds. Funds may be invested in general obligation
temporary bonds of the same governmental entity issued under section 429.091, subdivision 7,
469.178, subdivision 5, or 475.61, subdivision 6.
Subd. 8. Debt service funds. Funds held in a debt service fund may be used to purchase any
obligation, whether general or special, of an issue which is payable from the fund, at such price,
which may include a premium, as shall be agreed to by the holder, or may be used to redeem any
obligation of such an issue prior to maturity in accordance with its terms. The securities
representing any such investment may be sold by the governmental entity at any time, but the
money so received remains part of the fund until used for the purpose for which the fund was
created. Any obligation held in a debt service fund from which it is payable may be canceled at
any time unless otherwise provided in a resolution or other instrument securing obligations
payable from the fund.
Subd. 9. Broker; statement and receipt. (a) For the purpose of this section and section
I I8A.05, the term "broker" means a broker -dealer, broker, or agent of a government entity, who
transfers, purchases, sells, or obtains securities for, or on behalf of, a government entity.
b) Prior to completing an initial transaction with a broker, a government entity shall provide
annually to the broker a written statement of investment restrictions which shall include a
provision that all future investments are to be made in accordance with Minnesota Statutes
governing the investment of public funds.
c) A broker must acknowledge annually receipt of the statement of investment restrictions in
writing and agree to handle the government entity's account in accordance with these restrictions.
A government entity may not enter into a transaction with a broker until the broker has provided
this written agreement to the government entity.
d) The state auditor shall prepare uniform notification forms which shall be used by the
government entities and the brokers to meet the requirements of this subdivision.
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History: 1996 c 399 art 1 s 5
118A.05 CONTRACTS AND AGREEMENTS.
Subdivision 1. May enter into. In addition to other authority granted in sections 118A.01 to
118A.06, government entities may enter into contracts and agreements as follows.
Subd. 2. Repurchase agreements. Repurchase agreements consisting of collateral allowable
in section 118A.04, and reverse repurchase agreements may be entered into with any of the
following entities:
1) a financial institution qualified as a "depository" of public funds of the government
entity;
2) any other financial institution which is a member of the Federal Reserve System and
whose combined capital and surplus equals or exceeds $10,000,000;
3) a primary reporting dealer in United States government securities to the Federal Reserve
Bank of New York; or
4) a securities broker -dealer licensed pursuant to chapter 80A, or an affiliate of it, regulated
by the Securities and Exchange Commission and maintaining a combined capital and surplus of
40,000,000 or more, exclusive of subordinated debt.
Reverse agreements may only be entered into for a period of 90 days or less and only to meet
short-term cash flow needs. In no event may reverse repurchase agreements be entered into for the
purpose of generating cash for investments, except as stated in subdivision 3.
Subd. 3. Securities lending agreements. Securities lending agreements, including custody
agreements, may be entered into with a financial institution meeting the qualifications of
subdivision 2, clause (1) or (2), and having an office located in Minnesota. Securities lending
transactions may be entered into with entities meeting the qualifications of subdivision 2 and the
collateral for such transactions shall be restricted to the securities described in this section and
section 118A.04.
Subd. 4. Minnesota joint powers investment trust. Government entities may enter into
agreements or contracts for:
1) shares of a Minnesota joint powers investment trust whose investments are restricted to
securities described in this section and section 118A.04;
2) units of a short-term investment fund established and administered pursuant to regulation
9 of the Office of the Comptroller of the Currency, in which investments are restricted to
securities described in this section and section 118A.04;
3) shares of an investment company which is registered under the Federal Investment
Company Act of 1940 and which holds itself out as a money market fund meeting the conditions
of rule 2a-7 of the Securities and Exchange Commission and is rated in one of the two highest
rating categories for money market funds by at least one nationally recognized statistical rating
organization; or
4) shares of an investment company which is registered under the Federal Investment
Company Act of 1940, and whose shares are registered under the Federal Securities Act of 1933,
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as long as the investment company's fund receives the highest credit rating and is rated in one of
the two highest risk rating categories by at least one nationally recognized statistical rating
organization and is invested in financial instruments with a final maturity no longer than 13
months.
Subd. 5. Guaranteed investment contracts. Agreements or contracts for guaranteed
investment contracts may be entered into if they are issued or guaranteed by United States
commercial banks, domestic branches of foreign banks, United States insurance companies, or
their Canadian subsidiaries, or the domestic affiliates of any of the foregoing. The credit quality
of the issuer's or guarantor's short- and long-term unsecured debt must be rated in one of the two
highest categories by a nationally recognized rating agency. Should the issuer's or guarantor's
credit quality be downgraded below "A", the government entity must have withdrawal rights.
History: 1996 c 399 art 1 s 6; 1997 c 219 s 1; 2000 c 493 s 1; 2005 c 152 art 1 s 2; 2010 c
234 s 1; 2010 c 385 s 4
118A.06 SAFEKEEPING; ACKNOWLEDGEMENTS.
a) Investments, contracts, and agreements may be held in safekeeping with:
1) any Federal Reserve bank;
2) any bank authorized under the laws of the United States or any state to exercise corporate
trust powers, including, but not limited to, the bank from which the investment is purchased;
3) a primary reporting dealer in United States government securities to the Federal Reserve
Bank of New York; or
4) a securities broker -dealer, or an affiliate of it, that meets the following requirements:
i) it is registered as a broker -dealer under chapter 80A or is exempt from the registration
requirements;
ii) it is regulated by the Securities and Exchange Commission; and
iii) it maintains insurance through the Securities Investor Protection Corporation or excess
insurance coverage in an amount equal to or greater than the value of the securities held.
b) The government entity's ownership of all securities under paragraph (a) must be
evidenced by written acknowledgments identifying the securities by the names of the issuers,
maturity dates, interest rates, CUSIP number, or other distinguishing marks.
History: 1996 c 399 art i s 7; 2010 c 234 s 2
118A.07 ADDITIONAL INVESTMENT AUTHORITY.
Subdivision 1. Authority provided. As used in this section, "governmental entity" means a
city with a population in excess of 200,000 or a county that contains a city of that size. If a
governmental entity meets the requirements of subdivisions 2 and 3, it may exercise additional
investment authority under subdivisions 4, 5, and 6.
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Subd. 2. Written policies and procedures. Prior to exercising any additional authority under
subdivisions 4, 5, and 6, the governmental entity must have written investment policies and
procedures governing the following:
1) the use of or limitation on mutual bond funds or other securities authorized or permitted
investments under law;
2) specifications for and limitations on the use of derivatives;
3) the final maturity of any individual security;
4) the maximum average weighted life of the portfolio;
5) the use of and limitations on reverse repurchase agreements;
6) credit standards for financial institutions with which the government entity deals; and
7) credit standards for investments made by the government entity.
Subd. 3. Oversight process. Prior to exercising any authority under subdivisions 4, 5, and 6,
the governmental entity must establish an oversight process that provides for review of the
government entity's investment strategy and the composition of the financial portfolio. This
process shall include one or more of the following:
1) audit reviews;
2) internal or external investment committee reviews; and
3) internal management control.
Additionally, the governing body of the governmental entity must, by resolution, authorize its
treasurer to utilize the additional authorities under this section within their prescribed limits, and
in conformance with the written limitations, policies, and procedures of the governmental entity.
If the governing body of a governmental entity exercises the authority provided in this
section, the treasurer of the governmental entity must annually report to the governing body on
the findings of the oversight process required under this subdivision. If the governing body
intends to continue to exercise the authority provided in this section for the following calendar
year, it must adopt a resolution affirming that intention by December 1.
Subd. 4. Repurchase agreements. A government entity may enter into repurchase
agreements as authorized under section 118A.05, provided that the exclusion of mortgage -backed
securities defined as "high -risk mortgage -backed securities" under section 118A.04, subdivision
6, shall not apply to repurchase agreements under this authority if the margin requirement is 101
percent or more.
Subd. 5. Reverse repurchase agreements. Notwithstanding the limitations contained in
section 118A.05, subdivision 2, the county may enter into reverse repurchase agreements to:
1) meet cash flow needs; or
2) generate cash for investments, provided that the total securities owned shall be limited to
an amount not to exceed 130 percent of the annual daily average of general investable monies for
the fiscal year as disclosed in the most recently available audited financial report. Excluded from
this limit are:
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i) securities with maturities of one year or less; and
ii) securities that have been reversed to maturity.
There shall be no limit on the term of a reverse repurchase agreement. Reverse repurchase
agreements shall not be included in computing the net debt of the governmental entity, and may
be made without an election or public sale, and the interest payable thereon shall not be subject to
the limitation in section 475.55. The interest shall not be deducted or excluded from gross income
of the recipient for the purpose of state income, corporate franchise, or bank excise taxes, or if so
provided by federal law, for the purpose of federal income tax.
Subd. 6. Options and futures. A government entity may enter into futures contracts, options
on futures contracts, and option agreements to buy or sell securities authorized under law as legal
investments for counties, but only with respect to securities owned by the governmental entity,
including securities that are the subject of reverse repurchase agreements under this section that
expire at or before the due date of the option agreement.
History: 1996 c 399 art l s 8
118A.08 NO SUPERSEDING EFFECT.
Except as provided in Laws 1996, chapter 399, article 1, section 11, sections 118A.01 to 118A.06
shall not supersede any general or special law relating to the deposit and investment of public
funds.
History: 1996 c 399 art 1 s 9
https://www.revisor.mn.gov/statutes/?id—I 18A&view--chapter
DATE: February 3, 2011
TO: Mayor and City Council
Anne Norris, City Manager
FROM: Charles Hansen, Finance Director
SUBJECT: Fourth Quarter 2010 Report of Investment Results
Investment Results for the Fourth Quarter
The City of Crystal's investment pool received interest payments totaling $309,245.03
during the quarter. However, after factoring in other adjustments, investment earnings
were a negative $141,694.30 for the quarter.
The main reason for this reversal was a decrease in the fair market value of the
portfolio. Interest rates increased during the quarter, so the fair market value of existing
securities in our portfolio decreased by about $375,000. Amortization of premiums
caused the remainder of the negative earnings.
Future Expectations
The yield to maturity of 2.11% as of December 31, 2010, assumes that all securities will
be held to maturity and no further change in fair market value. I anticipate that there
will be at least some further increase in market interest rates in 2011. This will cause
the fair market value of existing securities in our portfolio to decrease. Investment
earnings on the portfolio will be diluted by the change in fair market value, possibly
ending up in the area of the 1.5% estimate we used to prepare the 2011 budget.
Investment Strategy
I have switched to buying a mix of state & municipal bonds and securities issued by
federal housing agencies. Many of the agency securities are step-ups so that the
interest earned on them will step-up with inflation if the agency doesn't call them for
early redemption. The safety and fixed term of bank certificates of deposit are nice, but
the extremely low yields they currently offer makes them undesirable.
Buying new securities with yields above 2% right now requires accepting final maturities
of at least five years. This puts us at risk of having significant negative changes in fair
market value when interest rates rise. The alternative of buying securities with final
maturities on three years or less requires accepting yields of 1 % or less. I have recently
bought more of the long maturities, but need to balance this against market risk.
Purchases of Securities
In the fourth quarter of 2010, 1 purchased one certificate of deposit worth $245,000,
maturing in 2012 with an interest rate of 0.40%. 1 purchased seven state, municipal or
school district bonds totaling $4,128,948 maturing in 2013 through 2015 with interest
yields of 1.20% to 3.5%. 1 purchase two federal agency securities totaling $3,498,247
maturing in 2015 and 2016 with interest rates (initial rates, prior to any step-ups) of
1.25% to 2.0%.
Portfolio Summary
Attached are the Portfolio Performance Measures and Investment Register reports as
of December 31, 2010. The average yield on the portfolio (ignoring any change in fair
market value) was 2.11 % on December 31 st.
Investment earnings for the full year of
2010 equaled 2.49%, which included a positive change in fair market value of 0.21 %.
Conclusion
This report is on the work session agenda as a companion to the proposed new
investment policy. This gives the City Council the opportunity to discuss the portfolio
performance if you desire.
also have attached a new report that I will receive on a quarterly basis from Wells
Fargo. The City Council can decide if you would like to receive this as part of future
quarter investment reports.
CITY OF CRYSTAL
INVESTMENT TRUST FUND
PORTFOLIO PERFORMANCE MEASURES AS OF DECEMBER 31, 2010
Investment Maturities (in Years)
2013 2015
Percent Market through through
Investment Ty oe of Total Value 2011 2012 2014 2016
Money Market Accounts 6.62% 3,588,861 3,588,861
Certificates of Deposit 28.54% 15,470,485 5,431,214 6,753,924 3,189,325 96,022
Federal Farm Credit Note 0.95% 516,173 516,173
Federal Home Loan Bank 12.35% 6,692,873 516,147 2,003,006 4,173,720
Federal Home Loan Mortgage Corp 5.56% 3,014,723 3,014,723
Federal National Mortgage Assoc 12.34% 6,687,749 253,530 2,006,630 4,427,589
State & Local Government Bonds 33.65% 18,244,270 1,145,020 4,779,415 10,853,977 1,465,858
Percent of Total
Estimated Current Average Yield on Portfolio
DURATION OF PORTFOLIO
Weighted Average Duration - to Call Date
Weighted Average Duration - to Maturity Date
54,215,134 11,450,945 11,533,339 18,052,938 13,177,912
21.12% 21.27% 33.30% 24.31%
2.11%
1.25 Years
2.71 Years
MATURITIES BY YEAR 5-wtiftCall. Date Security Maturity Date
Amortized Percent Amortized Percent
Cost of Total Cost of Total
2011 24,554,904 48.5% 7,862,084 15.5%
2012 11,533,339 22.8% 11,533,339 22.8%
2013 9,536,279 18.8% 12,539,681 24.8%
2014 5,001,751 9.9% 5,513,257 10.9%
2015 0.0% 4,791,121 9.5%
2016 0.0% 8,386,791 16.6%
50,626,273 100.00% 50,626,273 100.00%
The weighted average duration calculation and the maturities by year schedule excludes money
market accounts since the funds are available immediately upon demand.
3
City of Crystal Investment Trust Fund
Investment Register as of December 31, 2010 12/31/2010
Premium)/
Purchase Maturity Next Call Coupon Interest Beginning Discount Ending Balance Estimated Interest
Type TYPE LIdu M tC Date Rate Yield Balance (Cost'I Purchases Maturities Amortization Cost) Market Value Par Value Received
CD First Merit Bank, Ackron OH 07/02/08 01/04/10 01/04/10 4.000°/ 4.000% 96,000.00 96,000.00 0.00 96,000 1,956.82
CD Southern CMNTY B&T, Winston-Salem NC 01/08/09 01/08/10 01/08/10 1.550% 1.550°/, 95,000.00 95,000.00 D00 95,000 1,472.50
CD Texas Enterprise Bank, Bryan TX DIfi9m4 01/08/10 ulf%40 1.650% 1.650% 95,000.00 95,000.00 boo 95,000 1,563.21
CD Carolina First, Greenville SC 07/11/08 01/11/10 01/11/10 4.000% 4.000% 95,000.00 95,000,00 DOD 95,000 1,915.62
CD White Rock Bank, Cannon Falls MN 61/12/09 01/12/10 01/12/10 1.600% 1.600% 95,000.00 45,000.60 0.00 95,000 1,520.00
CD Horizon Bank, Belingham WA 07A11a'R 02/01/10 01/13/10 4.D00S 4.000% 95,000.00 95,000.00 000 95,000 1,686.58
CD Bank of the Cascades, Bend OR 01/14/09 01/14/10 01/14/10 1.400% 1.400% 95,000.00 95,000.00 D.W 95,000 1,47250
TNz US Treasury Inflation Index Security 01/24/08 01/15/10 01/15/10 4.250% 0.120% 1,012,968.39 1,012,968.39 stag 750,000 26,567.66)
TNz US Treasury Inflation Index Security 01/28/08 01/15/10 IM511D 4.2509/6 0.086% 975,282.14 975,282.14 CLOD 725,000 25,579.25)
FHLB FHLB stepup 10/15/09 10/15/12 01/15/10 1.000°/a 1.000% 500,000.00 500,000.00 0.00 500,000 1,250.00
CD American Bank of St Paul MN 07/18/08 01/19/10 01/19/10 4.000% 4.000% 95,000.00 9.5,000.00 0.00 95,000 1,926.03
CD Paragon Natl Bank, Memphis TN 47MM8 01/19/10 Olfl!)Ab 4.0509/6 4.050% 95,000.00 95,000.00 0.09 95,000 1,971.18
CD Provident Bank, Baltimore MD 01/16/08 01/19/10 01/19/10 4.400% 4.400% 95,000.00 95,000.00 0.10 95,000 2,141.53
CD Lehman Coml Bank, Salt Lake City UT O7f2,MR 01/75/10 01/25/10 4.000% 4.000% 95,000.00 95,000.00 0A0 95,000 t,936.44
CD Royal Bank America, Narberth PA 07/23/08 01/25/10 01/25/?0 4.100% 4.1009/6 95,000.00 95,000.00 0.00 95,000 t,984.85
CD First United B&T, Oakland MD QU27AR 01/27/tO 01/27/10 1 tr50% 1.650% 95,000.00 95,000.00 0.40 95,OOP 1,567.50
FNMA FNMA 07l28" 01/28/13 61/28/10 7.403% 2,400% 500,000.00 500,000.00 0.00 500,006 6,000.00
CD Bank Amer NA, Charlotte NC 01/30/09 01/29/10 01/29/10 P.500°/ 1,500% 95,000.00- 95,000.00 0,0D 95,000- 1,421.10
CD Horry CNTY Bank, Loris SC 01/30/09 01/269/10 01/29/10 1.600% 1.600% 95,000.00 95,000.00 4.W 95,000 1,5t5.84
FHLB FHLB callable 09/10/09 01/29/13 01/29/10 2.500°/ 2.000% 1,000,385.64 1,000,385.64 0.00 1,000,000 12,114.36
CD Frontier Bank, Everett WA 06/30/08 02/01/10 02/01/10 4.000% 4.000% 95,000.00 95,000.00 0.00 95,000r 34356
CD Hyperion Bank, Philadelphia PA 02/04/09 02/04/1a 02/04/10 1.650% 1.650% 95,000.00- 95,000.00 1100 95,000 1,567.50
CD Severn Savings Bank, Annapolis IN 02/04/09 02/04/10 02/04/10 1.&1% 1.6009% 95,000.00 95,000.00 0.00 95,e00 1,520.00
CD Capital Bank, Raleigh NC 02/06/09 02/05/10 02/05/10 1.600°/, 1,600°/ 95,000.00 95,000.00 O.OV 95,000 1,515.84
CD First Bank, Lexington TN 02/08/08 02/08/10 02/08/10 3.250°/ 3.250% 95,000.00 95,000.00 0.01E 95,600 1,556.44
CD TN Bank, Oak Ridge TN 02/08/08 02/08/10 02/08/10 3.300% 3.300% 98,000.00 98,000.00 O.DD 98,000 1,630.29
CD Stillwater Nad. Bank, Stillwater OK 02/11/09 02/11/10 02/11/10 1A50°/, 1 q5p% 97,000.00 97,000.00 0.00 97,000 1,406.50
PTC F'FC 10/29/09 10/22/12 01/11/10 2.000% 7009% 973,000.00 973,000.00 O.Oa 973,000 5,892.06
CD FSG Bank, Chattanooga TN 02/13/08 02/12/10 02/12/10 3.300% 330a% 95,000.00 95,000.00 O.PO 95,000 1,571.79
CD Midwest B&T, Elmwood ILL 02/13/08 02/12/10 02/12/10 3.300% 3.300% 95,000.00 95,000.00 0.00 95,000 1,571.80
CD First State Bank, Stockbridge GA 08/13/08 02/16/10 02/16/10 4.000"/ 4.000% 95,000.00 95,000.00 13.D13' 95,000 1,946.85
P11111 FILL.B 02/17/09 it211Ft1 OW17f10 1.750% 1.750'/6 1,000,000.00 1,000,000.00 0.01 1,000,000 8,750-00
CD BPD Bards, New York NY 02/18/09 02/18/10 02/18/10 1.4001/6 1.400'/0 95,000.00 95,000.00 00 95,000 1,330.00
CD Border State Bank, Greenbush MN 02/18/09 02/18/10 02/18/10 1.500% 1.500% 95,000.00 95,000.00 0.00 95,000 1,425,00
CD Citizens St Bank, Finley ND i70f4VM 02/19/10 WAWI O 3.350% 3 34R4 95,000.00 95,000.00 020 95,000 1,595.61
CD Bank of India, New York NY 02/26/09 02/24/10 424-0fl O 1.400% 1.400% 95,000.00 95,000.00 060 95,000 1,322.71
CD Heartland State Bank, Edgeley ND 02/25/09 02/25/10 02/25/10 1.400% 1.400% 55,000.00 95,000.00 0.00 95,000 1,330.00
FHLB FHLB step-up callable quarterly 11/25/09 1 t/25/14 02/25/10 2.500% 2.500% 2,000,000.00 2,000,000.00 0.00 2,000,000 12,500.00
CD Far East NB, Los Angeles CA 03/31/09 03/01/10 03/01/10 1.100% 1.1001/ 95,000.00 95,000.00 D00 95.000 959.11
FNMA FNMA 09/01/09 03/01/13 03/01/10 2.500% 2.500% 1,000,000.00 1,000,000.00 0.00 1,000,000 12,500.00
CD Boundary Waters Bank, Ely MN 03/02/09 03/02/10 03/02/10 1.400"/0 1.400% 95,000.00 95,000.00 0-00 95,000 1,330.00
FFC FFCB 3Y/lY continuous 03/02/09 03/02/12 03/02/10 2.370% 2.270% 1,000,000.00 1,000,000.00 om 1,000,000 11,850.00
CD Central Bank., Stillwater MN 03/04/09 03/04/10 03/04/10 1.350°/ 1.350% 95,000.00 95,000.W D OO 95,000 r,28250
CD Discover Bank, Greenwood DE 03/05/08 03/05/10 03/05/10 3.700% 3.700% 95,000.00 95,000.00 0.00 95,000 1,743.05
CD CIT Bank, Salt Lake City UT 09/10/08 03/10/10 03/10/10 4.100% 4.1001/. 95,000.00 95,000.DO Duo 95,000 t,931.49
FHLMC FREDDIE MAC bullet OVIN97 03/17/10 03/17/10 4.D00% 4.980% 997,905.26 997,905.26 13A0 1,000,000 22,094.74
CD City State Bank, Ogden IA 03/19/08 03f L4+10 03/19/10 3.650% 3.650% 95,000.00 95,000.00 0.00 95,000 1,719.50
CD Voyager Bank, Eden Prairie MN 09/25/08 OIFLVID 0.3r-' MP 4.0009/6 4.000% 95,000.00 95,000.00 0.00 95,000 1,884.M
CD American Nat] Bank, Parma OH 04/08/09 04/08/10 03/24/10 1.000% E000 % 95,000.00 95,000.00 0.00 95,000 905.75.
FHLB FHLB bullet 04/13/07 4)4/01/10 94/0t/10 3.750% 4.890% 498,689.57 498,689.57 goo 50Q000 10,685.43
CD Cathay Bank, Los Angeles CA 04/06/09 04/06/10 04/06/10 t,200% 1.2009/6 95,000.00 95,000.00 0.00 95,000 1,140.00
CD S&T Bank, Indiana PA 04/08/09 04/000 04/09/10 0.900% 0.900% 95,000-00 95,000.00 0.00 95,000 955.00
CD National City Bank, Cleveland OH 04/09/08 04/09/t0 04/09/t0 3.550°/, 3.550°/ 98,000.00 98,000.00 0.00 98,000 1,734.73
TNz US Treasury Inflation Index Security OtnMR 04/15/t0 04/15/10 0.875% 0.282% 979,110-15 979,110.15 0.00 875,000 26,203.60
FHLMC FHLMC step up 04/15/09 04/15/13 04/15/10 t.500% 1.500% 1,000,000.00 1,000,000.00 0.00 1,000,000 7,500.00,
CD Bank of Georgetown, Washington DC 04/16/08 Q4116110 04/16/10 3.450% 3.450'/0 98,000.00 98,000.00 0.0p 98,000 1,685.87
CD NBT Bank NA, Norwich NY 04+1" 04/16/10 04/16/10 3.450% 3A509/6 96,000.00 96,000.00 O.6p 96,000 1,699,33
CD Park Sterling Bank, Charlotte NC 04/17/09 04/16/10 04/16/10 0.900% 0.9001/6 95,000.00f 95,000.00 O,Dp 95,000 830,06
CD Signature Bank, Chicago ILL 04/16/08 04/16/tO 04/16/10 3.500% 3.500% 95,000.00- 95,000.00 0.00 95,000 1,657.95
CD Apline Bank, Glenwood CO 04/18/08 04/19/10 04/19/10 3.600% 3.600% 95,000.Oa 95,000.00 0.00 95,000 1,714.68
U.1 CD First National Bank, LytonUT 04/21/08 04/21/10 04/21/10 3.550% 3.550°/ 95,000.00 95,000.00 0.00 95,000 1,681.63
p7CN4ry_wrr.i7nmly3i inh tW..6 p0mu 1:1 I.MI i IN na
an
City of Crystal Investment Trust Fund
Investment Register as of December 31, 2010 12/31/2010
Premium)/
Pm xho Maturity Next Call Coupon rntevesl Beginning Discount Ending Balance Estimated Interest
15rpp TYPO Date Ehum del- Roe Yield Ba1mn SCOW Purchases Maturities Amortization Costl F. uire: Vn_1u_e Par Value Received
CD Amcore Bank, Rockford ILL 10/05/07 10/05/12 04/28/10 4.800% 4.800% 95,000.00 95,000.00 U.00 95,000 2,511.12
CD US Century Bank, Dora] FL 04/30/09 04/30/10 04/30/10 1 000:i 1.0000/0 95,000.00 95,000.00 021 95,000 950.00
CD The Union Bank, Columbus OH 04/30/08 04/30/10 04/30/10 3.700'/0 3.700% 95,000.00 95,000.00 0.00 95,000 1,752.68
CD Bank of Madison, Madison WI 05/08/08 195/07/10 05/07/10, 3.650% 3.650% 95,000.00 95,000.00 Rm 95,000 1,710X0
CD Beverly B&T, Chicago ILL 11/07108 05/07/10 05/07/10 4.100% 4.100% 95,000.00 95,000.00 0.00 95,000 1,931.49
CD Hinsdale B&T, Hinsdale ILL 11/07/08 05/07/10 05/07/10 4.050% 4.050% 96,000.00 96,000.00 O.W 96,000 1,928.02
CD Washington Mutual Bank, Park City UT 05/08/08 05/07/10 05/07/10 3.500% 3.500% 95,000.00 95,000.00 0S3 95,000 1,639.73
CD Wheaton B&T, Wheaton ILL 11/07108 05/07/10 05/07/10 4.100% 4.100% 95,000.00 95,000,00 0.00 95,000 1,931.49
CD RG Premier Bank, Hato Puerto Rico 02/08/08 02/08/11 05/10/10 3.400% 3.400% 98,000.00 98,000.00 D.M 98,000 2,428.24
CD Western Bank, Puerto Rico 09/19/07 09/20/10 05/11/10 4.950% 4.950% 95,000.00 95,000.00 0.10 95,000 2,885.91
CD Sterling Savings Bank, Spokane WA 02/11/09 05/11/10 05/11/10 1.6507E k-659 C 95,000.00 95,000.00 0,00 95,000 1,172.40
FNMA FNMA 05/11/09 08/11/11 05/11/10 1.780% 1.780% 500,000.00 500,000.00 0.00 500,000 6,675.00
CD First Pacific Bank, San Diego CA 03/20/09 09/20/10 05/13/10 1.700% 1.700% 95,000.00 95,000.00 0.00 95,000 1,013.24
FNMA FNMA bullet 03/19/07 05/20/10 @5/20/10 3.950% 4.790'% 498,525.04 498,525.04 0.00 500,000 11,349.96
FNMA FNMA bullet A11913 7+ 05/20/10 05/20110 3.950% 4.900% 498,321.36 498,321.36 0.06 500,000 11,553.64
CD Huntington National Bank, Columbus OH 02/20/09 05/20/10 05/20110 1.650T. 1.650"/ 95,000.00 95,000.00 0.00 95,000 1,172.40
CD Bridgeview Bank, Bridgeview ILL 11/21/07 05/21/10 05/21110 4.650% 4.650% 95,000.00 95,000.00 0.00 95,000 2,190.60
CD Old National Bank, Evansville IN 06/04/08 06/04/10 @6/04/10 3,750% 3.750% 96,000.00 96,000,00 0.00 96,000 1,795.07
CD Panhandle Bank, Sand Point OH 06/04/08 06/04/10 06/04/10 3.750% 3.750% 96,000.00 000.00 0.00 96,000 1,795.07
CD Village Bank & Trust, Arlington IL 06/04/08 06/04/10 06/04/10 3.750"/ 3.750"/ 96,000.00 000.00 0.00 96,000 1,795.07
FHLMC FHLMC step-up 13AIM 12/11/14 wins 2.250% 2.250"/ 1,000,000.00 1,000,000.00 0.00 1,000,000 11,250.00
FHLB FHLB step-up canary 12/17/09 12/17/14 06/17/10 2.100% 2.100% 1,800,000.00 1,800,000.00 0.00 1,800,000 18,900.00
CD Community B&T, Sheboygan WI 04/20/09 06/21/10 06/21/10 1.1000/0 1.100% 95,000.00 95,000,00 0.00 95,000 698.14
FHLMC FHLMC step up 06/29/09 06/29/12 06/29/10 1.500% 1.500% 500,000.00, 500,000.00 0.00 500,000, 3,750.00
FNMA FNMA step-up canary 12/30/09 12/30/14 06/30/10 2.250% 2.250% 1,000,000.00 1,000,000.00 0.00 1,000,000, 11,250.00
MB MN STATE HSG FIN AGENCY 09/05/96 01/01/17 07/01/10 8.000% 8.0009/6 10,000.00 10,000.00 0.00 10,000 800.00
CD Branch B & T, Winston Salem NC 07/02/08 07/02/10 07/02/10 4.15011. 4.150°/ 96,000.00 96,000.00, 0.00 96,000 3,994.00
FFCB FFCB callable 01/12/10 07/12/13 07/12/10 2.350% 2.350% 1,000,000.00 1,000,000.00 0.5I0 1,000,000 11,750.00
FNMA FNMA step-up 01/15/10 01/15/15 07/15/10 2.0000/ 2.000% 1,000,000.00 1,000,000.00 0.90 1,000,000 10,000.00
CD M&I First State Bank, Las Vegas NV 07/16/08 07/16/10 07/16/10 4.200% A.X(16A 96,000.00 96,000.00, DOD 96,000 4,032.00
CD Southwest Bank, St Louis MO 07/16/08 07/16/10 07/16/10 4.200% 4.200"/ 96,000.00 96,000.00 0.00 96,000 4,032.00
CD Brand Banking, Lawrenceville GA 01/23/09 07/23/10 07/23/10 2.250% 2.2500/9 95,000.00 95,000.09 O51U 95,000 2,137.50
CD Homestreet Bank, Seattle WA 4)7/30/08 07/30/10 07/30/10 4.300% 4.200% 95,000.00 95,000.00 POU 95,000 4,085.00
CD Town & Country Bank, Las Vegas NV 04/30/09 07/30/10 07/30/10 1.05011 1.050% 95,000.00 95,000.00, I? W 95,000 558.E
CD Security Federal Bank, Aiken SC 02/04/09 08/04/10, 08104/10 2.000"/ 2.000°/ 95,000.00 95,000.00 D 00 95,000 1,900.00
CD Community First B&T, Columbia TN 02/06/09 09/06/10 08/06/10 2.100% 2.1000/ 95,000A0 95,000,00 0.00 95,000 1,995.00
CD Sturdy Savings Bank, Stone Harbor NJ 02/11/09 08/11/10 08/11/10 1.750% 1.750% 95,000.00 95,000.00 D.00 95,000 1,662.50
FNMA FNMA step-up 02/1210 02/12/15 08/12/10 2.250% 2.250% 499,900,00 499,900.00 0.00 500,000 5,725.00,
CD Lakeside Bank, Chicago IL 02/13/08 08/13/10 08/13/10 33007E 3.300% 98,000.00 98,000.00 0.00 98,000 3,234.00
CD Southside Bank, Tyler TX 02/13/09 08/13/10 08/13/10 1.750% 1.750'/6 97,000.00 97,000,00 D.W 97,000 1,697.50
CD Central Bank of Georgia, Ellaville GA 02/20/09 0820/10 08/20/10 1.95M 1.950% 95,000.00 95,000.00 0.00 95,000 1,85250
FHLMC FHLMC step up 02/26/10 02/26/15 0826/10 2.500% 2.500% 999,750.00 999,750.00 0.00 1,000,000 12,750.00
FNMA FNMA step-up 0226/10 08/26/15 0826/10 2.250°/, 2,250% 250,000.00 250,000.00 D.UO 250,000 2,812.50
CD Hills Bank & Trust, Hills IA 03/06/09 09/07/10 09/07/10 1.800°/, 1.800% 95,000.00 95,000.00 0.00 95,000 1,714.68
FNMA FNMA step-up 03/10/10 03/10/15 09/10/10 2.750% 2.750°/, 2,000,000.00 2,000,000.00 D:04 2,000,000 27,500.00,
CD Capstone Bank, Tuscaloosa AL 03/11/09 09/13/10 09/13/10 1.750% 1.750°/ 95,000.00 95,000.00 0.00 95,000 1,671.61
FFC FrC 06/16/10 09/16/13 CWTV10 1.800% 1.8009/6 1,000,000,00 1,000,000.00 0.00 1,000,000 4,500.00
FHLB FHLB callable 09/17/08 09/17/12 119f1711d 4.25D% 4.250°/ 500,000.00 500,000.00 000 500,000 21,250.00
CD Communitysouth B&T, Easley SC 03/19/09 09/20/10 09/20/10 2.100% 2.100% 95,000.00 95,000.00 0.00 95,000 2,000.46
CD Macatawa Bank, Holland MI 09/18/08 09/20/10 0920/10 4.250°/, 4.250% 95,000.00 95,000.00 D.G7 95,000 3,053.01
CD Atlanta Business Bank, Atlanta GA 0925/08 09/24/10 09/24/10 4.000"/, 4.000% 96,000.00 96,000.00 0.00 96,000 2,872.14
CD Newbridge Bank, Greensboro NC (New West) 09/26/08 0927/10 0927/10 4.100% 4.100% 95,000.00 95,000.00 0.00 95,000 2,934.60,
CD Chevy Chase Bank, Mclean VA 10/08/08 10/09/10 10/08/10 4.200% 4.200% 95,000.00 95,000.00 0.00 95,000 3,990.00
CD Enerbank USA 12/21/09 10/08/10 10/08/10 0.850% 0.850% 245,000.00 245,000.00 0.00 245,000 1,728.75
CD Morgan Stanley Bank, SLC UT 10/08/08 10/08/10 10/08110 4.250% 4.250% 96,000.00 96,000.00 0.00 96,000 4,080.00,
CD First Nad B&T, Weatherford TX 12/21/09 10/14/10 10/14/10 0.800*/0 13.1101! . 245,000.00 245,000.60 0.00 245,000 1,632A8
CD Key Bank NA, Cleveland OH 10/15/08 10/15/10 10/15/10 4.250°/ 4.250% 98,000.00 98,000.00 O,PO 98,000 3,468.94
CD Eastside CMRL BY, Conyers GA 10/16/07 10/18/10 10/18/10 4.800°/ 4 . 8 00 % 95,000.00 95,000.00 UU0 95,000 4,594.99
CD Franklin Security Bank, Plains PA 04/22/09 10/22/10 10/=10 1.450°/ 1.450% 95,000.00 95,000.00 0.00 95,000 1,377.50
CD Shinhan American Bank, New York NY 04/25/08 10/25/10 1025/10 3.900% 3.900% 98,000.00 98,000.00 0.00 98,000 3,822.00
FHLMC FHLMC step-up 04/28/10 04/28/15 1028/10 2.625% 2.625% 999,750.00 999,750.00 0.00 1'000,000 13,375.00
u Pnd.W..._tM4L211 In „nifo-W Pv Uld Ifllr55111.1FPN
City of Crystal Investment Trust Fund
Investment Register as of December 31, 2010 12/31 /2010
Premium)/
Purchase Maturity Next Call Coupon Interest Beginning Discount Ending Balance Estimated Interest
Type Ti"P5 Date Date Dale kme Yield Balance Cost Purchases Maturities Amortization Cost) Market Value Par Value Received
Cif Amboy Bank, Old Bridge NJ 04/30/09 11/01/10 11/01/10 2.000°/, 2OU% 95,000.00 95,000.00 900 95,000 1,910.40
FHL9 FHLB step up 09115/10 12/15/15 11/15/10 1.500% 1.500% 1,400,000.00 1,400,000.00 9.00 1,400,000 3,500.00
CD Copper State Bank, Scottsdale AZ 09/19/08 09/19/11 09/19/11 4.500% 4 S0^ 95,000.00 95,000.00 0.00 95,000 3,876.73
CD National Bank, Sumter SC 05r21J09 II/22/10 11/22/10 1_650% 1.650% 95,000.00 95,000.00 4.40 95,000 1,571.80
CD BMW Bank, Salt Lake City UT 12/01/08 12/01/10 12/01/10 4.1501/6 4.150% 96,000.00 96,000.00 0.00 96,000 3,964.00
CD American Express Centurion Bank, SLC UT 12JV3109 12/03/10 12/03/10 4.000% 4.000% 96,000.00 96,000.00 0.00 96,000 3 8d0 n0
C9 Sallie Mae Bank, Murray UT I Z/10/08 12/10/10 12/10/10 3.850% 3 15O% 95,000.00 95,000.00 0.00 95,000 3,65750
FNMA FNMA step up DY2311 n 12/23/15 12/23/10 2.500% 2.500% 3,000,000.00 3,000,000.00 0 G7 3,000,000 j7,500.00
CD Bank of Miami, Coral Gables FL 04/09/09 101 7111 12/23/10 2.450% 2.450% 95,000.00 95,000.00 0.00 95,000 2,786.62
CD Ally Bank, Midvale UT (formerly GMAC) 01/02/09 01/03/11 01 /03/11 2.750%, 2.7500/. 95,000.00 95,000.00 95,000 95,000 2,612.50
49 Chelsea MA Taxable Municipal Bonds 07/14/09 01/15/11 011A 5/ 11 1 500% 30D0% 551,987.20 18,237.71) 533,749.49 533,586 553,000 M,455.03
CD American Express Centurion Bank, SLC UT 07/15/09 01/18/11 01/18/11 1.300% 1.300°/ 150,000.00 150,000DO 150,037 150,000 1,950.00
CO Bank Amer NA, Charlotte NC 07/15/09 01/18/1t 01/18/11 1.350% 1.350% 150,000.00 IS0,000,00 150,039 150,000 2,025.00
E'D Merrick Bank, South Jordan UT O1126/09 01/21/11 01/21/11 2.400% 2.400% 96,000.00 96,000.00 96,069 96,000 2,304.00
CD Exchange State Bank, Collins IA O1/23/09 01/24/11 01/24/11 2.500% 2.500% 95,000.00 95,000.00 95,088 05,000 2,375.00
CD First National Bank, Milton FL 07/25/08 01/25/11 01/25/11 4.350% 4.350% 95,OOO.00 95,000,00 95,177 95,000 4,132.50
CD Center Bank Los Angeles CA 01/26/09 01/26/11 01/26/11 2.450% 2.450% 96,000.00 96,000.00 96,097 96,000 2,352.00
M11 Lake County Schools, ELL 12/17/09 02/01/11 02/01/11 4.500% 1.250% 517,430.33 16,025.37) 501,404.96 501,305 500,000 22,500.00
h11 Lake Crystal MN School Bonds 10/13/09 02/01/11 02/01/11 2.000% 1.751 % 110,291.74 268.22) 110,023.52 110,129 110,000 1,760.00
CD First Fed Bucks Cnty, Bristol PA 02/02/09 02/02/11 02/02/11 2.550% 2.550% 95,000.00 95,000.00 95,t39 95,000 2,422.50
CD Legacy Bank, Pittsfield MA UVI5EM 02/08/11 02/08/11 3.350% 3.350% 98,000.00 98,000.00 98,245 98,000 3,283.00
CD Bryn Mawr Trust, Bryn Mawr PA 02/14JO8 02/14/11 02/14/11 3.400% 3.400% 95,000.00 95,000.00 95,287 95,000 3,230.00
fl) Shore Bank, Onley VA 02/14/08 02/14/11 02/14/11 3.300% 3.300% 95,000.00 95,000.00 95,277 95,000 3,135.00
CD Southport Bank, Kenosha WI 02/13/08 02/14/11 02/14/11 3.300% 3.300% 96,000.00 96,000.00 96,319 96,000 3,168.00
CD First Bank Highland Park, HP ILL 02/18/09 07/18/11 02/18/11 2.250% 2.2500/. 96,000.00 96,000.00 96,196 96,000 2,160.00
CD Bank Baroda, New York NY 05/26/10 02/2&/11 02/28/11 0.450% 0.450°/ 150,000.00 150,000.00 150,000 150,000
CU Commercial Bank, Thomasville GA 09/10/09 03/10/11 03/10/11 L250% 1.250% 150,000.00 150,000.00 150,211 150,000 1,975.00
CU Byron Bank, Byron Center MI 03/14/08 03/14/11 03/14/11 3.700% 3 wMA 95,000.00 95,000.00 95,578 95,000 3,514.99
CD Ally Bank, Midvale UT (formerly GMAC) 09/18/09 03/18/11 03/18/11 1.400% 1.400% 150,000.00 150,000.00 t50,282 150,000 2,100.00
CD JGB Bank NA, Miami FL 10/01/09 04/01/11 04/O1/11 1.400% 1.400% 245,000,00 245,000.00 245,544 245,000 3,430.00
CD Highlands Independent Bk Sebring FL 04/03/09 04/04/11 04/04/11 2000% 2.000% 95,000.00 95,000.00 95,355 95,000 1,900.00
Cl7 Nall City Bank, Hillsboro OH 10/02/09 04/04/11 04/04/11 1.400% 1 AD0% 245,000.00 245,000.00 245,560 245,000 3,430.00
CD Aquesta Bank, Cornelius NC 04/09/08 04/11/11 Od11 III 1 3 75&/0 3 75ft 98,000.00 98,000.00 98,840 98,000 3,675.00
FI4 A FNMA bullet 07/07/06 04/15/11 04/15/11 5.125% 5.516% 248,900.83 25"1 249,754.44 253,530 250,000 12,812.50
CD Wacovia Mortgage Bank, Las Vegas NV 04/16/08 04/18/11 04/18/11 3.900% 3.900% 96,000.00 96,000.00 96,607 96,000 3,744.00
LU Bank India, New York NY 05/27/10 04/27/11 04/27/1 t 0.550% 0.5501/. 245,000.00 245,000.00 245,042 245,000
CD Columbus B&T Co. Columbus GA 0#l2LTA 04/28/11 04/28/11 2.000% 2.000% 95,000.00 95,000.00 95,440 95,000 1,900.00
Cb First Sound Bank, Seattle WA 04/29/09 04129/1 t 04/29/11 2.000% 2.000% 95,000.00 95,000.00 95,443 95,000 1,900.00
CD Commercial Bank, Thomasville GA 05/01/09 05/02/11 05/02/11 2.100% 2.100% 95,000.00 95,000.00 95,488 95,000 1,995.00
CD Washington Trust Bank, Spokane WA 05/20/09 05/20/11 05/20/11 2.1501/6 2.1501/6 97,000.00 97,000.00 97,593 97,000 2,085.50
CP Marshall & Ilsee Batik, WI 05/23/08 05/23/11 05/23/11 4.000% 4.000% 95,000.00 95,000.00 96,258 95,000 3,800.00
C0 GE Capital Finance, Holladay UT 06/11l09 06/13/11 06/13/11 2.200% 2.200% 145,000.00 145,000.00 146,068 145,000 3,190,00
CFi Compass Bank, Birmingham AL 97/15/09 07/15/11 07/15/11 2.000% 2.000% 245,000.00 245,000.00 246,947 245,000 4,900.00
FlILl3 FHLB bullet 07/07/06 08/15/11 08/15/11 5.750% 5.527% 501,547.45 954.09) 500,593.36 516,147 500,000 28,750AO
CD Coastal Bank, Brunswick GA 09/10/09 09/12/11 09/12/11 1.600°/ 1.600% 245,000.00 245,000.00 246,801 245,000 3,920,00
C6 Wright Express Fn Sery UT 09/25/09 O 2&11 09/26/11 1.650% 1.650% 245,000.00 245,000.00 246,949 245,000 4,042.59
TFC FFC 10/03/07 10/03/11 10/03/11 4,700% 4.700% 500,000.00 500,000.00 516,173 500,000 23,500.00
4 Integra Bank, Evansville IN 10103/08 10/03/11 10103/11 4.600% 4.600% 95,000.00 95,000.00 97,833 95,000 4,370.00
CIS GE Money Bank, Salt Lake City UT 10/09/08 10/11/t 1 10/11 /11 4,500°/ 4.500% 95,000.00 95,000.00 97,835 95,000 4,275.00
CD Coastal B&T, Pensacola FL 10/15/09 10/14/11 10/14/11 1.800% 1:90446 245,000.00 245,000.00 247,312 245,000, 4,410.00,
CD Bank Hampton Roads, Norfolk VA 10/15/09 10/17/11 10/17/11 1.750°fo 1.750% 245,000.00 245,000.00 247,22& 245,000 4,287.50
CU Meridian Bank, Wickenburg AZ 10/26/07 10/26/11 10/26/11 4.8501% 4.850% 95,000.00 95,000.00, 98,235 95,000 4,607.50
CD Eastern SB, Hunt Valley MD 11/07/07 11/07/11 11107/11 4400% 4600% 95,000.00 95,000.00 98,153 95,000 4,370.00
CD American Express FSB Bank, SLC UT 11/25/09 11/25/11 11/25/11 1.750°/ 1.750°/, 150,000.00 150,000.00 151,466 150,000 2,625.00
CD American Express FSB Bank, SLC UT 12/03/08 12/05/11 12/05/11 4.300% 4.300% 96,000.00 6,000.00 99,176 96,000 4,127.99
M& IllinoisState Taxable Bonds 01/22/10 01/01/12 01/01/12 2.766% 1.900% 508,210.00 (3,971.83) 504,238.17 50t,240 500,000' 0,108.25 CD
Bank Baroda, New York NY 01/05/09 01/05/12 01105A2 2.950% 2.950% 95,000.00 95,000.00 91,114 95,000 2,802.50, CV
Cornerstone Cmnty Bk, Grafton WIS Dimmq inn-J 1Z O1/17/12 2.800% 2.800% 95,000.00, 95,000.00 97,013 95,000 2,660.00 CID
Home Fed Savings, Rochester MN D7rzDD9 01/23/12 01/23/12 M l-%G% 2.150% 175,000.00 175,000.00 177,574 175,000 3,762.50 CD
CapmarkBank, Midvale UT OU28109 01/30/12 01/30/12 3.000% 3,000% 95,000,00 95,000.00 97,265 95,000 2,850.00 OA mY]
mm41I In ry .J' lalame I307M
OD
City of Crystal Investment Trust Fund
Investment Register as of December 31, 2010 12/31/2010
Premium)/
Purchase Maturity Next Call Coupon 101e st Beginning Discount Ending Balance Estimated law."
Type TYPE date Dalc hale R tt Yield Balance (Cost) Purchases Maturities Amortization (Cost)_ Market Value_ Par Value Received.
MB Forest Lake Schools 03/05/09 02/01/12 02/01/12 3.500% 2.750% 177,606.79 1,248.66) 176,358.13 179,945 175,000 8,677.08
MB Mounds View MN School Bonds 11/24/08 M111r12 02/01/12 6.DD:r% 5.000% 509,502.09 4,551,53) 504,950.56 527,535 500,000 30,000.00
MB Robbinsdale School Bonds 05/14/09 02/01/12 02/01/12 2.450°/ 2.450% 500,000.00 500,000.00 508,355 500,000 15,312.50
MB Roseville MN Schools O1/07/09 02/01/12 02/01/12 4.750% 4.750% 50,000.00 50,000.00 52,088 50,000 2,375.00
MB Waconia MN Schools 12/23/08 02/01/12 02/O1/12 4,100% 4.100°/, 235,000.00 235,000.00 242,109 235,000 9,635.00
MB City of Lancaster TX Bonds 04/27/10 02/15/12 02/15/12 1.819°/ 1.420% 251,765.00 664.22) 251,100.78 251,815 250,000
CD Mercantile Bank, Grand Rapids MI 11/17/09 02/17/12 02/17112 2.000% 2.000°/ 245,000.00 245,000.00 248,352 245,000 4,900.00
CD Alliance Bank, Syracuse NY 02/25/09 02/27/12 OT27/12 2.750% 2.75(M 96,000.00 96,000.00 98,140 96,000 2,640.00
CD Beal Bank, Las Vegas NV 12/08/10 03/07/12 03/07/12 0.400°/ 0.4000/6 245,000.00 245,000.00 243,888 245,000
CD Centrue Bank, Streator ILL 03/31/09 03/30/12 a3/30112 2.300% 2.300% 97,000.00 97,000.00 98,749 97,000 2,231.00
CD Nexbank SSB, Dallas TX 04/02/09 04/02/12 04/02/12 2.750°/ 2.750% 95,000.00 95,000.00, 97,243 95,000 2,612.50
CD Oriental BK & TR, San Juan Puerto Rico 04/11/08 04/} l,/12 04/11/12 4.000% 4.000% 98,000.00 99,000.00, 101,878 98,000 3,920.00
MB New York State Bonds 09/16/10 04/15/12 04/15/12 5.210% 1.040% 1,065,190.00 11,975.98) 1,053,214.02 1,047,020 1,000,000 4,196.94
CD First State B&T, Valdosta GA 05/11/10 05/11/12 05/11/12 1.200% 1.200% 245,000.00 249,000.00 246,703 245,000 1,482.08
CD Plainscapital BK, Lubbock TX 05/12/10 05/14/12 05/14/12 1259% 12-9) . 245,000.00 245,000.00, 246,600 245,000 1,543.84
CD Wilmington Trust Co, Wilmington DE 11/25/09 05/25/12 05/25/12 1.950% 1.950% 245,000.00 245,000.00 248,533 245,000 4,777,50
MB Grimes IA, GO Build America Bonds 1 kX3}09 06/01/12 06/01/12 2.500% 2.300% 497,308.51 954.25) 496,354.26 505,479 495,000 13,138.12
CD First Commercial BK, Birmingham AL 12/22/09 06/22/12 06/22/12 1.900% 1.9000/ 245,000.00 245,000.00 248,407 245,000 4,655.00
MB Utah State Revenue Bonds 02/23/10 07/01/12 07/01/12 1.600% 1,6 500,000.00 500,000.00 500,880 500,000 2,844A4
CD Cathay Bank, Los Angeles CA 07/13/09 07/13/12 07/13/12 2.60M 26DDl 150,000.00 150,000.00 153,678 150,000 3,899.99
CD Bank of China, New York NY 07/14/10 07/14/12 071L4112 1,0000/ 1A00% 245,000.00 245,000.00 245,908 245,000
CD Discover Bank, Greenwood Del 07/21/10 07/23/12 07/23/12 1,0000/ 1 .WMA 245,000.00, 245,000.00 245,876 24$,000
CD Eagle Bank, Bethesda MD 07/24/09 07/24/12 07 h"2 2.500% 7 300% 245,000,00 245,000.00 250,742 245,000 6,125.00
CD Barclays Bank, Wilmington DE 08/05/09 08/06/12 a%6012 2.450% 2.4501/6 245,000.00 245,000.00 250,521 245,000 6,002.50
CD First United Sec, Thomasville AL 08/18/10 08/17/12 08/17/12 0.750% 0.750"/6 245,000.00 245,000.00 245,794 24$,000
CD Celtic Bank, Salt Lake City UT 08/21/09 198/21112 08/21/12 2.400% 2A00°/ 150,000.00 150,000.00 153,286 150,000 3,600.00
CD Lake First B&T, Lake Forest ILL 08/26/09 08/27/12 08/27/12 2.350°/ 2,350% 245,000.00 245,000.00 251,314 245,000 5,75750
CD North Shore Cmnty B&T, Wilmette ILL O8/26/09 98/27/12 08/27/12 2.350% 2.350% 245,000.00 245,000.00 250,183 245,000 5,757.50
CD Suburban B&T, Elmhurst ILL 09/11/09 09/11/12 0911111Z 2.300% 2.300% 245,000.00 245,000.00 250,007 245,000 5,635.00
CD BMW Bank, Salt Lake City UT 09/16/09 09/17/12 09/17/12 2.300°/ 2.3000/6 150,000.00 150,000.00 153,070 150,000 3,450.00
CD Columbus B&T Co. Columbus GA 09/16/09 09/17/12 09/17/12 2,300% 2.300"/0 150,000.00 150,000.00 153,070 150,000 3,450.00
CD First Premier Bank, Sioux Falls SD 09/17/09 09/17/12 09/17/12 4.650% 4.650% 95,000.00 95,000.00 100,685 95,000 4,4t7.50
CD Citibank NA, Las Vegas NV 09/23/09 09/24/12 09/24/12 2.250% 2,250°/ 245,000.00 245,000.00 249,815 245,000 5,512.50
CD Bank Northern Mich, Petoskey MI 05/28/10 09/28/12 agavia 1.3x% 1.250% 245,000.00 245,000,00 247,286 245,000 1,543.84
MB Kenosha WI Bonds 62/22/10 10/01/12 10/01/12 5.050% 1.400% 475,520.25 13,279.75) 462,240.50 462,949 435,000 13,363.56
CD Soy Capital B&TC, Decatur ILL 10/05/07 10/05/12 10/05/12 4.900% 4.900% 95,000.00 95,000.00 101,208 95,000 4,655.00
CD Village Bank, St. Francis MN 06>VI D 10/15/12 10/15/12 1.100% 1.1000/ 2457,000.00 245,000.00 247,400 245,000 1,351.19
CD Georgia B&T, Augusta GA 10/16109 10/16/12 10/16/12 2A5p% 2.450% 245,000.00 245,000.00 250,684 245,000 6,002.50
CD National Republic Bank ILL 10'24^37 10/24/12 10/24/12 4.95M 4.950% 95,000.00 95,000.00 101,421 95,000 4,702.50
CD GE Money Bank, Salt Lake City UT 10/30/09 10/30/12 10/30/12 2.4000/0 2.400% 150,000.00 150,000.00 153,363 150,000 3,600.00
CD Goldman Sachs Bank, SLC UT 11101/07 11/01/12 11/01/12 5.000°/ 5,000°/ 95,000.00- 95,000.00 101,560 95,000, 4,750.00
CD Standard B&T, Hickory Hills ILL 11/20/09 11/20/12 11/20/12 2.200% 2.200% 245,000.00 245,000.00 249,594 245,000 5,390.00
MB Illinois State Taxable Bonds O111511O 01/01/13 01/01/13 3.320% 2.8000/c 1,522,035.00 7,036.72) 1,514,998.28 1,498,305 1,500,000, 22,970.25
CD Sun Natl. BK, Vineland NJ 07/09/10 01/09/13 01/09/13 1.000% 1.0000/0 245,000.00 245,000.00 246,543 245,000
CD Ironstone Bank, Fort Meyers FL 01/16/08 01/16/13 01/16/13 4.600% 4.600% 95,000.00 95,000.00 101,294 95,000 4,370.00
CD JP Morgan Chase &Co 01/16/08 01/16/13 01/16/13 4.600% 4.600% 95,000.00 95,000.00 100,315 95,000 4,370.00
CD Farmers Savings Bank, Colesburg IA 01/21/09 OU22113 01/22/13 3.000% 3.000% 95,000.00 95,000.00 98,278 95,000 2,850.00
MB Chaska MN Taxable Municipal Bonds 11/06/08 02/01/13 02/01/13 5.2501/. 5,2509/6 145,000.00 145,000.00 154,577 145,000 7,612.50
MB Rosemont/Apple Valley Schools 02/12/09 02/01/13 02/O1/13 3.000% 3.000% 150,000.00, 150,000.00 153,624 150,000 4,500.00
MB Roseville MN Schools 01/07/09 02/01-113 02/01/13 5.00011 5,00011 85,000.00 85,000.00, 91,209 85,000 4,250.00
MB Springfield Cty Schools, Sangamon ILL 07/15/09 02101/13 02/01/13 3.100% 2.600% 405,847.86 1,892.26) 403,955.60 412,096 400,000 12,951.11
MB Waconia MN Schools 12/23/08 02/01/13 02/01113 4.500% 4.500"/ 245,000.00 245,000.00 258,240 245,000 11,025.00
CD Insbank, Nashville TN 02/04/09 02/04/13 02/04/13 3.000% 3.000% 95,000.00 95,000.00 98,298 95,000 2,850.00
CD Superior Bank, Superior WI 02/06/09 0R+1 90 02/06/13 3.0000/. 3.000% 95,000.00 95,000.00. 98,302 95,000 2,850.00-
MB Chisholm MN School Bonds 10129/09 03/01/13 03/O1/13 R.9517jG 2.550% 270,000.00 270,000.00 273,996 270,000 6,31125
MB Cleveland Cty NC, Taxable Bonds 06/21/10 03/O1/13 03/O1/13 zloa 1 2.100% 402,084.00 008,75) 401,675.25 404,132 400,000 1,633.33
FHLB FIFL6cellable O31A1f1O 03/01/13 03/01/11 1,710% 1.7100/6 1,000,000.00 1,000,000.00 1,001,983 1,000,000 8,550.OQ
FNMA FNMA 07/26/10 04/26/13 01/26/11 1.25001 1.250°/ 1,000,000.00 I,000,000.00 1,000,396 1,000,000 3,125.00
CD Columbin Bank, Hillsboro OR 10/31/07 04/30/13 04/30/13 4.900°/ 4.900% 95,000.00 95,000,00, 102,517 95,000 4,655.00
MB Wisconsin State Taxable Rev Bonds 11/25/08 05/01/13 05/01/13 4.140% 4.1401% 1,000,000.00 1,000,000.00 1,050,400 1,000,000 41,400.00
MB Somerset Cty Tax lmpr,NJ 1207FI4 RFl5fl] 05/15/13 1,194% 1.280°/ 1,012,898.95 56.66 1,012,955.61 999,684 1,015,000 706.95)
11+1w6+Nr+.mrM241mV' 31 oFp.3e4c a Nudwe 111dgmt.11il Lid ,
0
City of Crystal Investment Trust Fund
Investment Register as of December 31, 2010 12/31/2010
Premium)/
Inn clang Maturity NEW Call Coupon Jelmlat Beginning Discount Ending Balance Estimated Interest
TMYC TYPE D40 Date I4" Yield Balance (Cost'; Purchases Maturities Amortization Costl MKkNL PerVdut Received
M13 Dakota County Comm Dev Agy
1J1!c
12/01/10 06/01/13 06/01/13 1.3500/ 1.350% 260,000.00 260,000.00 258,531 260,000 78.00)
MB Grimes IA, GO Build America Bonds 11/03/09 06/01/13 06/01/13 2.750% 2.750% 607,936.91 858.95) 607,077.96 622,896 605,000 18,023.96
CD First Business BK Madison WI 12/17109 06/17/13 06/17/13 2.300% 2.300% 245,000.00 245,000.00 250,396 245,000 5,635.00
CD River Valley Bk, Wausau WI 06/30/10 QdQa'1S 06/28/13 1.550% 1."M% 245,000,00 245,000.00 247,957 245,000 1,903.95
CD Northbrook B&T, ILL 07/14/10 07/15/13 07/15/13 1.5000/ 1.500% 245,000.00 245,000.00 247,459 245,000
CD Crystal Lake B&T, ILL 07/21110 07/22/13 07/22/13 1.400% 1.3D04L 245,000.00 245,000.00 247,619 245,000
CD Hinsdale B&T ILL 07/21/10 07/22/13 07/22/13 1.400% 1.400% 245,000.00 245,000.00 247,680 245,000
CD Heritage Bank, Hinesville GA 08/06/10 08/16/13 08/16/13 1.300% 1.300% 245,000.00 245,000.00 247,019 245,000 1,064.58
FHLB FHLB step-up canary 03/10/10 09/10/13 03/10/11 1.000% 1.094% 999,057,75 Z17-90 999,275-65 1,001,023 1,000,000 5,000.00
CD Medallion Bank, Salt Lake City UT 09/10/10 09/10/13 09/10/13 1.000% 1.0000/ 245,000.00 245,000.00 246,180 245,000
CD GE Capital Finance, Holladay UT 09/18/08 09/18/13 09/18/13 5,000% 5.000% 95,000.00 95,000.00 103,531 95,000 4,750.00
CD Minnwest Bank Central, Montivideo MN 10/02/09 10/02/13 10/02/13 2.600% 2.600% 150,000.00 150,000.00 154,196 150,000 3,900.00
MB State of Minnesota 01/29/09 12/01/13 12/01/13 3.2500/0 2.9001/6 506,345.15 1,618.43) 504,726.72 521,005 500,000 16,250.00
FNMA FNMA 07/14/10 01/14/14 01/14/11 1.850% 1.8501/. 500,000.00 500,000.00 500,171 500,000
MB Chelsea MA Bonds IZr[" 01/15/14 01/15/14 5.000% 4.700% 161,701.78 420.83) 161,280.95 169,432 160,000 8,000.00
MB Lake Crystal MN School Bonds 10/13/09 02/01A4 0' MIA4 3.2500/0 3.000% 136,275-e7 308.31) 135,966.76 139,860 135,000 3,510.00
MB Manitowoc WI Bonds 0211iJ1t5 02/01/14 02/01/14 23(0% 2.3009/6 315,000.00 315,000.00 318,270 315,000
CD Alliance Bank, Chantilly VA 08/20/10 02/20/14 02/20/14 1.750% t.750% 245,000.00 245,000.00 246,835 245,000 1,433.08
MB Redwing MN School Bonds 1M22+%IQ 03/01/14 03/01/14 3.000% 31000% 1,000,000.00 1,000,000.00 1,017,600 1,000,000 27,500.00
MB West Bend WI Utility Bonds 10/19/10 03/01/14 03/01/14 2.000% 1.200% 456,707.95 695.43) 456,012.52 444,453 445,000
MB Oconomowoc WI Bonds 09/16/10 041DU11 04/01114 4.150% 1.350% 219,302.00, 1,582.38) 217,719.62 213,026 200,000 345.83
1i*?,JA FNMA 05/14/09 fflil 14 fl/14/11 2.125% 2.125% 500,000.00 500,000.00, 506,063 500,000 10,625.00
MB City of Bend OR Bonds 07/18/10 W14 06/0t/M 2.600% 2.600% 195,000,00 195,000.00, 198,058 195,000 3,985.58
MB Dakota County Comm Dev Agy t 2f111l1V 06/01/14 06/01/14 1.750% 1.750% 210,000.00, 210,000.09 207,971 210,000 81.67)
MB Lexington -Fayette KY Bonds 01/28/10 mmV14 09/01/14 2.750% 2.550% 504,300.00, 864.10) 503,435.90 513,150 500,000 4,135.42
CD Minnwest Bank Central, Montevideo MN r1h2W 10/23/14 i0123A4 5.000% 5,00001 95,000.00 95,000.00 104,906 95,000 4,750.00
MB WI HSG & EDA Revenue Bonds 12/27/10 11/01/14 11/01/14 3.5000/ 3.500% 680,000,00- 680,000.00, 680,095 680,000 330,56)
MB Me Henry ILL Bonds 02/18/10 12/15/14 12/15/14 3.000% 3,000% 245,000.00 245,000.00 253,367 245,000 6,063.75
MB West Bend WI Utility Bonds 10/19/1& 03/01/15 03/01/15 2.5000/ 1,550% 514,775.25 905.64) 513,869.61 494,728 495,000,
FNMA FNMA step-up 03/30/10, 03/30/15 03/30/11 2.000% 2.0000/ 500,000.00, 500,000.00 501,410 500,000 5,000,00,
CD Lehman Brothers BK FSB CD 04/22/03 04/22/15 05/22/11 5.000% 5.000% 95,000.00 95,000.00 96,022 95,000 4,750.00
MB Iowa State Revenue Bonds 12/06/10 06/01/15 01/06/11 2.157% 2.250% 996,050.00 60.29 996,110.29 97t,130 1,000,000 299.58)
FHLB FHLB step up 09/30/10 09/30/15 03/30/11 1.0001/6 1.0000/0 750,000.00 750,000.00 740,751 750,000
FHLB FHLB step up 12/30/10 12/30/15 03/30/11 2,000% 2_U007C 1,999,500.00 0.27 1,999,500,27 1,987,080 2,000,000,
FHLMC FHLMC step-up 02/25/10 02/25/16 02/25/11 2.350% 7.350% 999,750.00 35.26 999,785.26 1,002,684 1,000,000 11,750.00
FHLMC FHLMCstep-up 04/15/10 04/15/16 04/15/11 2.0000/ 2.152% 998,500.00 77M 998,677.92 1,005,050 I,000,000 10,000.00 FHLMC
FHLMC step-up 04/29/10 04/29/16 04/29/11 2AD9% 2.4000/ 999,250.00 84.17 999,334.17 1,006,989 t,000,000 12,000.00 FNMA
FNMA step-up 06/30/10 06/30/16 06/30/11 7ocuY; 2.000% 1,450,000.00 1,450,000.00 1,457,618 1,450,000 14,500.00 FNMA
FNMA step-up 07/27/10 07/27/16 07/27/11 2.000% 1ODDi6 999,350.00 46J6 999,39656 996,714 1,000,000 FHLB
FHLB step up 11/23/10 11/23/16 05/23/11 1.250% 1.250% 1,498,725.00 22.10 1,499,747.10 1,445,989 1,500,000 FNMA
FNMA step-up D8t231L4 11/25/16 02/25/11 2.000% 2.000% 1,499,250.00 42.03 1,499,292.03 1,471,847 1,500,000 50,
287,776.22 50,626,273 50,123,000 Wells
Fargo GOV"r M MKT DAILY 0.0100/0 0.010% 633,512.51 633,513 631,513 96.83 Wells
Fargo Public Funds Savings Acet DAILY 0.20016 0.200% 2,085,011.48 2,085,011 2,085,011 3,508.62 MN
MUNCIPAL M MKT DAILY 0.020% 0.0200/ 857,594.33 957,594 857,594 34.06 4M
Plus Money Market DAILY 0.060% 0.060% 12,742.75 12,743 12,743 1,952.75 49,
924,869.26 41,991,621,15 41,541,587.55 87,126.64) 53,876,637-29 54,215,134 53,711,861 1,317,715.34 Fmcdr}
53,876,63729 DAILY
INTEREST 3 1 I b 2010 Interest Received 1,317,715.34 Money Market Accounts 3,589,861.07 2009
Accrued Interest 391,442.63) ImewDaw 50,287,776.22 YIELD
TO MATURITY 19 I S4 2010 Accrued Interest 355,595.44 53,876,637.29 2010
Net Disc/Prem 87,126.64) 2010
Bank Fees 11,447.50) Current 2010 Unrealized Gain 338,496.78 2010
Change in Fair Market Value 1 rR,6.32 uR_ Dec. 31, 2009 Unrealized Gain 227.b64 7s 2010
Net Interest Income 1,294,126.05 Potential Year -End Gain/(Loss) 1 832 04 L343, .--
JVIMl_31 mrwrh. I'' o lrllrRll I:n IM
Ord Quarter 2010 City of Crystal
Market Commentary by Paul BlomZMU
The fourth quarter of 2010 marked a turning point in market sentiment towards a more positive economic
outlook. Economic data released in October and November was mixed, but there were encouraging signs in
employment data and consumer spending. The main signal of a strengthening recovery was a significant
improvement in December's consumer spending report. Since consumer spending represents 70% of the
U.S. GDP, the market understandably placed a heavy weight on this improvement. However, the
sustainability of higher consumer spending levels remains to be seen. On the negative side, inflation
remained persistently below the Fed's target level, employment data generally remained weak, and the
housing market did not show any signs of a sustainable recovery.
The quarter began with speculation about a second Fed program of asset purchases (quantitative easing), and
interest rates continuing the downward trend that began in April 2010. Remarkably, this trend reversed itself
in early November when the Fed announced its plans to purchase $600 billion in Treasury securities.
Although this quantitative easing was intended to promote low interest rates, the market reacted by driving
interest rates higher. The reason for this move is uncertain, but it appears as though increased concern about
inflationary pressure was a major influence. This is consistent with the fact that the increase in rates on
longer maturities was more dramatic than shorter maturities. The 2-year Treasury ended the quarter about 25
basis points higher, while the 5-year and 10-year ended about 84 and 67 basis points higher, respectively.
Despite the dramatic reversal in interest rates, the market expectations for future Fed actions remained
relatively stable. Changes in the Fed Funds Target Rate are critical because that rate is the driving force for
most rates on the short end of the maturity spectrum. As the quarter progressed the Fed Funds futures market
began to price in an increasing probability that the Fed would increase the Target Rate in 2011. On
December 31, 2010 the futures market implied a 41.0% probability that the Fed Funds Target Rate would be
raised in 2011 compared with a 17.6% probability on October 29, 2010. However, it is not expected to be a
dramatic increase since the futures market was still pricing in a 90.1 % probability that the Target Rate would
be 50 basis points or lower at the end of 2011. A stable rate outlook was supported by statements from the
Fed that reinforced their commitment to keep rates low and monetary policy accommodative for an extended
period of time.
Current Market Yields — 11 id f 2 o ii
U A
Treftsurl*s Agencies
Cop
AA-rnted
Bouds IUnICIPa s
AAA -rated
CP
A1 pi)
Maturity Yield
i
Maturity Yield Maturity Yield Maturity Yield Maturity Yield
1-ma 0.10% 3-mo (DN) 0.14% t-}T 0.36% i-yr 0.33% 3o-days 0.20%
3-mo 0.12% 6-mo (DN) o.16% 2-yr 0.72% 2-3'r o.67% 6o-days 0_,45%
6-mo 0.14% 1-year (DN) 0.25% 5-yr 2.12% 5-3r 1.43% go -days 0.29%
i-)T 0.23% 2-yr o.68% io-yr 3.65% io-yr 3.32%
2-*T 0.52% 5-yr 2.15%
5-yr 1.81% io-yr 3.50%
10-yr 3.21%
11
Brok+_.M. l CDs
Callable
A grebes
Corporate
rated)
Bonds Muilicipnls
A -rafted) _
ell
Az k'22
Maturity /
Maturity Yield Call Yield Maturity Yield Maturity Yield Maturity Yield
3-mo 0.20% 1-yr / 3-ma 0.35% 1-yr 0.45% i-yr 0.82% 3o-days 0.35%
6-mo 0.25% 1.5-yr / 3-mo 0.55% 2-yr o.86% 2-yr 1.26% 6o-days 0.41%
1-yr 0.40% 2-yr / i-yr 0.74% 5-yr 2.25% 5-yr 2.6o% go -days 0.42%
2-yr 0.70% 3-yr / 1-yr 1.33% 10-yr 3.85% io-yr 4.30%
2.10 % i-yr 1.8
Source: Wells Fargo Securities and Bloomberg
jjistorical i-Year Treasury Yields
Historical 1-year Treasury
6.0% ------- ---- ---------------- -----
5.0%-----------------
4.0%---------------------- ----- ..
3.0%-----------------------------------
2.0%---------------------------- -- --------------
1.0% ------------------------
0.0%
O `O \
mo0°
Z' oo' do oo\oo\
o\ 0\
e
o ydo
Source: BloombergPortfolio Hi9to
All averages
market weighted
Total Par Avg. Value
Effective
Date 000)
Duration: May-
10 $48,205
1.48 Dec-10 $50,756
1.72 Source: Bond Edge Portfolio
Performance Avg. Total
Avg. Life
Market Avg.
Avg. Avg. Unrealized # of Convexity Yrs Yield: Coupon:
Price: Rating G/L $000 : I Issues 0.18 1.31
1.61 2.68 101.08 AAA $411 174 0.19 1.69
1.68 2.48 100.61 Aal $143 154 Aver a Convey:tp,-.
3 Avers a Book Yield:
2.96 Avg. Effective Duration: 1.
72 Unrealized Gain Loss: 143,
000.00 Total Par Value: 50,
756,000.00 Annual Income: 1,11 ,
000
Portfolio Allocations
35.82
33.04
29.90
i
1.13
Source: Bond Edge
Please contact your Wells Fargo Securities sales representative Lynn Cornwell at 612.667.9874 for further questions.
Disclaimer
This account summary was prepared by Wells Fargo Portfolio Analytic Services and is not a substitute for your
monthly statement or trade confirmation. Prices and yields are current as of the date of this summary and are
subject to change and availability; past performance is no guarantee offuture results. Municipal leases are shown
at their par value. Any rating provided for a municipal lease investment is a rating associated with the lessee, and
does not constitute a rating of the lease investment itself.
Wells Fargo Securities is the trade name for certain capital markets and investment banking services of the Wells
Fargo & Company and its subsidiaries, including Wells Fargo Securities, LLC, a member of NYSE, FINRA and SIPC,
Wells Fargo Institutional Securities, LLC, a member of FINRA and SIPC, and Wells Fargo Bank, National
Association. Wells Fargo Securities, LLC carries and provides clearing services for Wells Fargo Institutional
Securities, LLC customer accounts.
MemorandumCorALL
DATE: February 2, 2011
TO: Mayor and City Council
FROM: Anne Norris, City Manager
SUBJECT: Follow up to January 13 and 25 Goal-Setting/Issue Identification Sessions
The Council spent several work sessions in January discussing and identifying relatively
short-term goals and issues. Attached is the ranked listing of these goals and issues.
The Council spent some time developing an action plan for the first goal/issue,
evaluating current business practices within the organization. Follow up to the Council's
work includes:
1, Share the goals/issues with senior staff (scheduled for Feb. 8);
2, Develop action plans for the next 4 top goals/issues (I think we can only
realistically focus on the top 5 — at most) and tweak the action plan for the
first goal/issue. Please note that just because there aren't action plans for
the other goals/issues doesn't mean they won't be addressed. For many of
the goals/issues, they may be incorporated into action plans for the top five
goals/issues or they will happen anyhow (examples are #18 - alley
reconstruction and #20 - Comp. Plan completion). I will have draft action
plans for your discussion at the Feb. 10 work session; and
3. Start work on the action plans and provide the Council updates and check -in
points along the way.
The Council should discuss whether this is acceptable and other actions that are
needed.
Attach:
1/5
City of Crystal — Planning Results — January 25, 2011
Issues
1. Evaluate current business practices within the organization
evaluate components of each function
explore more private contracts for city services
consider shared positions with other public entities
I ................. I.. .... ..I.. 7-7-8-8-8-4 = 42
2. Continue street reconstruction program
5-2-7-2-8-7= 31
3. Phase out of LGA over an extended period of time
less than three, no more than five years
I....... 8-6-3-2-7 = 26
4. Continue purchase and resale of housing
6-4-1 -- = 23
5. Assess municipal building program
replace, new, remodel, retrofit
A-5-6-4-3 = ,?
3/5
6. Evaluate the need to replace "useful assets"
justification
formula
model
process/procedure
I ........... , . , ... ... .1-5-4-13
7. Expand revenue options and growth
tax base
additional service fees
6-7 - 13
8. Convert vacation and sick leave to flex tune
I ................ . ..........................1. —7-5 = 12
9. Conduct ordinance review
parking
Low Impact Development — stormwater management
3-5 = 11
10. Determine our "affordable" spending budget
8-2 = 10
11. Effectively reduce spending ------ impact on services
F.. .......................................2-7-1 = 10
12. Improve energy efficiency
business, homeowners, city facilities
1-- -5 = 9
13. Determine if there is a correlation — street reconstruction and
home foreclosures
I ........... I .... I ............. . ...... ,. = 8
4/
14. Develop long term financial strategies
operating and capital
maintain a position to respond to
opportunities
4-2-1 = 7
15. Improve the "image" of Crystal
6 = 6
16. Determine the desires/wants of the citizens and
willingness to pay
I ....................... ............................5 = 5
17. Improve the image of "elected officials" ---trust factor
3 = 3
18. Continue alley reconstruction program
2-1 = 3
19. Assess business relationship with city
public assistance
corporate welfare
3 _ 3
20. Work on Comp Plan Approval
I .......................... ..4...................0 = 0
5/,5