Title
City of San Leandro Investment Portfolio Review and Statement of Investment Policy Update
Staffreport
SUMMARY
This report provides an update on the City’s investment portfolio and presents proposed updates to the Statement of Investment Policy.
RECOMMENDATIONS
That the Committee reviews and comments on the proposed updates to the Statement of Investment Policy (Attachment A) and that the Committee recommend approval of the updated Statement of Investment Policy for consideration and adoption at a future City Council meeting.
BACKGROUND & ANALYSIS
California Government Code Section 53600 et seq. and Section VIII of the San Leandro Investment Policy Statement require the City Council to annually review and approve the City’s Investment Policy Statement. The policy was last approved on January 5, 2026.
Sound investment practices are facilitated by the written governing policy. The City’s Statement of Investment Policy includes the primary objective of preserving the safety of principles, followed by objectives of meeting liquidity needs, and obtaining a fair rate of return. Return on investment is the least important criterion compared to the safety and liquidity of the City’s assets. Additionally, investments can be made bearing in mind the responsibility of city government to the community and alternative investments which enhance the quality of life.
The City’s Statement of Investment Policy provides specific guidelines for the City’s investment functions and is consistent with the model policies of the Association of Public Treasurers of the United States and Canada, and the California Government Code. The Statement of Investment Policy serves as a guide for setting and achieving investment objectives, defines rules and established benchmarks, and prohibits and/or restricts certain investment instruments. Establishment and compliance with the policy is an element of fiscal discipline and may be considered by the auditors and ratings agencies during their respective reviews.
The City’s Statement of Investment Policy requires that Council approve any staff recommended changes to the policy. Staff worked in conjunction with the City’s portfolio manager, PFM Asset Management, to review the policy to ensure that it is, in compliance with California Government Code and consistent with the City’s objectives and risk tolerances.
Proposed Policy Changes
Changes proposed by PFM Asset Management are made in an effort to bring the Policy more in line with California Government Code, laws and regulations, and best practices. Attachment A provides an outline of proposed changes to the policy.
In conjunction with the City’s portfolio manager, staff recommend that the Committee recommend approval of the updated Statement of Investment Policy for consideration and adoption at a future City Council meeting.
Current Agency Policies
City Council
• Statement of Investment Policy - Adopted on January 5, 2026
ATTACHMENTS
A: Draft Statement of Investment Policy (redline)
B: Presentation - City of San Leandro Portfolio Update
PREPARED BY: Nicole Gonzales, Finance Director