Title
Staff Report for Resolution Approving the City of San Leandro's Investment Policy for Fiscal Year 2016-17
Staffreport
SUMMARY AND RECOMMENDATION
Staff recommends City Council approval of the City of San Leandro Investment Policy for fiscal year 2016-17. The policy is approved annually and there are five proposed updates for the policy for 2016-17.
BACKGROUND AND PROPOSED UPDATES
California Government Code Section 53600 et seq. and Section VIII "Reporting" of the San Leandro Investment Policy requires the City Council to annually review and approve the City's Investment Policy. This policy was last adopted on June 15, 2015.
The City of San Leandro Investment Policy (Investment Policy) provides specific guidelines for the City's investment management functions and remains in compliance with the model policy approved by the Association of Public Treasurers of the United States and Canada and California Government Code Section 53601. The Investment Policy serves as a guide for setting and achieving investment objectives, defines rules and established benchmarks, prohibits and/or restricts investment instruments and reduces exposure to liability of both staff and Council. Compliance with the policy is an element of fiscal discipline considered by the auditors and rating agencies during their respective reviews.
Staff has reviewed the current policy and has five recommended updates for 2016-17. The policy update allows for investments in Asset Backed, Mortgage Backed, Mortgage Pass-through Securities, and Collateralized Mortgage Obligations, consistent with California Government Code. Appendix A has also been updated to include specific language to the asset class and Appendix B is updated to include Supranational Securities. The following are the specific changes to the policy:
1. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations, provided that:
a. The securities are rated "AA" or...
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