Title
Adopt a Resolution to Approve the Update to the City of San Leandro Statement of Investment Policy
Staffreport
SUMMARY
Resolution approving the update to the City of San Leandro Statement of Investment Policy.
RECOMMENDATIONS
Staff recommend the City Council approve the resolution updating the City of San Leandro Statement of Investment Policy for 2025-2026.
BACKGROUND AND 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 June 17, 2024.
In July 2025, through a request for proposal (RFP) process, the City changed investment management services from Chandler Asset Management to PFM Asset Management, a subsidiary of U.S. Bancorp Asset Management, Inc.
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 principle, followed by objectives to meet liquidity needs, and obtain 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 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 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 tolerance.
Proposed Policy Changes
Changes proposed by PFM Asset Management would better align the City’s Policy with the California Government Code and best practices. They would also increase clarity, and increase investment opportunities, within the limits of the California Government Code and the City’s risk tolerance. Attachment A provides an outline of proposed changes to the policy.
In conjunction with the City’s portfolio manager, staff recommend that the Council adopt a resolution approving the update to Statement of Investment Policy.
Current Agency Policies
City Council
• Statement of Investment Policy - Adopted on June 17, 2024
Committee Review and Actions
The City of San Leandro Statement of Investment Policy was reviewed by the City Council Finance Committee on October 22, 2025. The Finance Committee unanimously recommends the Statement of Investment Policy be moved to the City Council for approval.
ATTACHMENTS
A: Resolution
B: Draft Statement of Investment Policy (Redline)
C: Draft Statement of Investment Policy (Clean)
PREPARED BY: Nicole Gonzales, Finance Director