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Pleasant Valley council votes to sell Principal Financial Group shares
Summary
At a special meeting, the Pleasant Valley council voted to sell the city's 333 shares of Principal Financial Group, directing the clerk to liquidate the holdings and deposit proceeds into city accounts; members cited volatility and limited municipal use of the stock.
The Pleasant Valley special council voted to sell the city's 333 shares of Principal Financial Group, directing the city clerk to convert the holdings to cash before the end of the year.
The motion was made by Committee member (S1), who proposed authorizing the clerk to monitor the stock price and sell; the presenter (S3) urged immediate sale because the shares are "volatile." S3 told the council the current market price was $85.26 per share, which S3 calculated as a total value of $28,391. S1 amended the motion to sell at the current price rather than merely monitor.
Clerk (S4) provided background: the shares were issued to the city on 12/10/2001 as part of a demutualization process and were not purchased by the city; they were received through conversion of a legacy policyholder account. S3 and other members said municipal ownership of publicly traded, volatile stock is uncommon and argued proceeds should be returned to city coffers.
The council recorded a roll-call vote in favor of the motion; members recorded as voting "yes" were Callender, Callaghan, Scarborough, Showers and Olson. The motion carried by the recorded vote.
Council members and staff discussed where sale proceeds will be realized. S3 noted that when the shares are sold, the funds become cash in the institution holding the account and must then be withdrawn and placed into the appropriate city fund; members said proceeds would likely be realized to the general fund unless the shares had been designated for a particular purpose.
The clerk will execute the sale and report back on the transaction and the precise accounting of where the revenue is realized. The council treated the matter as a straightforward liquidation of a non-operational municipal holding.
The action followed a short presentation and Q&A; no opposition was recorded during the roll call. The council moved on to other budget and administrative items after the vote.
