File #: 17-621    Version: 1 Name: Finance Committee Minutes October 3 2017
Type: Minutes Status: Passed
In control: Finance Committee
Meeting Date: 11/6/2017 Final action: 11/6/2017
Enactment date: Enactment #:
Title: Highlights of the Finance Committee Meeting of October 3, 2017
Sponsors: David Baum Finance Director
Related files: 17-557, 17-584, 17-583
Title
Highlights of the Finance Committee Meeting of October 3, 2017

Body
CITY OF SAN LEANDRO

FINANCE COMMITTEE

October 3, 2017
5:30 - 7:00p.m.

San Leandro City Hall
835 East 14th Street
San Leandro, California
(Sister Cities Gallery)

HIGHLIGHTS

1. CALL TO ORDER

Councilmember Lee called the meeting to order at 5:30 p.m.

1.A. Attendance

Committee members present: Councilmember Lee, Councilmember Hernandez

City staff present: Assistant City Manager Kay, City Attorney Pio Roda, Finance Director Baum, Budget & Compliance Manager Perini

Public present: Carlos Oblites, Chandler Asset Management, Dan Dillman, Darlene Evans


1.B. Announcements
None


2. DISCUSSION ITEMS

2.A. 17-583 Benchmark Study Presented by Chandler Asset Management
Director Baum introduced Carlos Oblites of Chandler Asset Management. Mr. Oblites presented the investment strategy used for the City of San Leandro's investments of $45 million. Mr. Oblites stated that investment portfolio is governed by California Government Code, which is very restrictive, as well as by the City's Investment Policy. The average final maturity in the portfolio is 1.6 years and average yield is 1.45% as of 6/30/17. Mr. Oblites' presentation provided a look at four different benchmarks. The longer the index, the more return the City will receive however, the risk is also higher. Mr. Oblites stated that if the City chose to invest in a longer index, 5 years and more, the City would have to think about selling before the maturity date and be comfortable with a higher volatility to ensure a higher return rate.

Councilmember Hernandez asked three questions of Mr. Oblites. The first question was in regards to how the City of San Leandro compares to neighboring cities. Mr. Oblites stated that although there are some cities that have investments with a shorter maturity date there are some that have longer duration investments but for the most part, neighboring cities follow the same format. The ...

Click here for full text