Title
Staff Report for a City of San Leandro City Council Resolution Approving the City of San Leandro’s Investment Policy Statement for 2020-2021
Staffreport
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council approve the City of San Leandro Investment Policy Statement for 2020-2021. The policy statement is approved annually.
BACKGROUND AND UPDATE
California Government Code Section 53600 et seq. and Section VIII of the San Leandro Investment Policy Statement requires the City Council to annually review and approve the City’s Investment Policy Statement. The policy was last approved on June 17, 2019.
Sound investment practices are facilitated by the written governing policy. The City’s Investment Policy Statement includes the primary objective of preserving the safety of principle, followed by objectives of meeting liquidity needs and obtaining a fair rate of return. Return on investment is the least important criteria 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 Investment Policy Statement provides specific guidelines for the City’s investment functions and complies with the model policy approved by the Association of Public Treasurers of the United States and Canada, and the California Government Code. The Investment Policy Statement serves as a guide for setting and achieving investment objectives, defines rules and established benchmarks, and prohibits and/or restricts certain investment instruments. Compliance with the policy is an element of fiscal discipline considered by the auditors and ratings agencies during their respective reviews.
Other Investment Policy Statement provisions significantly guiding the portfolio makeup include:
• Listing of investment instruments permitted in the portfolio;
• A remaining term to maturity of five-years or less at security acquisition; and
• Yield comparisons for portfolio investment performance including LAIF, two-year Treasury Bills, and five-year Treasury Notes.
There is no proposed change to the policy since it was last approved. Finance staff makes this recommendation following a review by Chandler Asset Management.
Previous City Council Action(s)
The Investment Policy is reviewed annually and was last reviewed by the City Council on June 17, 2019. The Finance Committee reviewed the Investment Policy Statement on June 2, 2020 and made no additional recommendations to the City Council.
ATTACHMENTS:
1. City of San Leandro Investment Policy
PREPARED BY
Elizabeth D. Warmerdam, Assistant City Manager