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SOMBA K'E/YELLOWKNIFE - Putting together an investment strategy for Yellowknife is kind of like growing up, joked city councillor Lydia Bardak at Tuesday's meeting.

The strategy she's referring to has yet to be approved by council, but if it is, it would allow the city to hire somebody to complete and manage a five-year investment plan to be used in conjunction with its everyday banking requirements.

Such a plan would be a new venture for the city of Yellowknife, which currently collects interest on its money.

"We haven't done it before, but it is common," pointed out Mayor Gord Van Tighem, adding many Canadian cities invest their money.

The money, he added, "has just been sitting in the bank account these past years."

While he admitted results with the passive measure weren't bad," it could have been better," he said.

During the first eight months of this year, the monthly balance for the city - which keeps its operating accounts with TD Canada Trust - was $24,378,000. For 2007 it was $18,256,000.

The interest rate applied to these balances was prime minus 1.95 per cent until January 2008, when a rate of prime minus 1.75 per cent was negotiated as part of a one-year extension of the city's current banking services agreement.

This means for 2007, the additional interest earned was $356,000. This year, if the city maintains its present balance for the rest of the year, it will earn an extra $427,000 in interest.

If the city wants to better those numbers, "This is the vehicle to do that," said Van Tighem, encouraging the move for an investment strategy.

Initial breakdowns for what the city can invest in were as follows: securities issued or guaranteed by the federal or territorial government, up to 100 per cent of its portfolio; chartered banks, up to 100 per cent of its portfolio; other financial institutions, like trust companies, up to 25 per cent of its portfolio; and corporations at up to five per cent.

The extensive list still missed one consideration, however, said Coun. Shelagh Montgomery.

"I would like to see some mention of socially responsible investment," she said.

Montgomery suggested it make up a small amount of the city's portfolio, maybe five per cent, to show, "We're not just out to make as much money as possible." It's important, she said, to have the long-term in mind.

Before the bylaw can be passed a public hearing must be held and the city must get approval from the minister for Municipal and Community Affairs.

There was one thing everybody in attendance agreed upon early on, however - no investing in U.S. banks.