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<br />CITY OF SAN LEANDRO <br />STAFF REPORT <br /> <br />APPROVED AND <br />FORWARDED <br />TO CITY COUNCIL <br /> <br />DATE: <br /> <br />July 3, 2007 <br /> <br /> <br />TO: <br /> <br />John Jermanis, City Manager <br /> <br />SUBJECT: <br /> <br />Jesse Baloca, Finance Dire~ <br /> <br />RESOLUTION APPROVING THE CITY OF SAN LEANDRO'S <br />INVESTMENT POLICY FOR FISCAL YEAR 2007-08 <br /> <br />FROM: <br /> <br />SUMMARY AND RECOMMENDATION <br />Staff recommends City Council approval of the City of San Leandro Investment Policy for fiscal <br />year 2007-08. The Policy is approved annually and includes two changes regarding investment <br />thresholds for commercial paper and medium-term corporate notes. <br /> <br />BACKGROUND <br /> <br />California Government Code Section 53600 et seq., and Section VIII of the San Leandro <br />Investment Policy requires the City Council to annually review and approve the City's <br />Investment Policy. This policy was last adopted on June 19,2006. <br /> <br />The City of San Leandro Investment Policy (Investment Policy) provides specific guidelines for <br />the City's investment management functions and remains in compliance with the model policy <br />approved by the Association of Public Treasurers of the US & Canada. The investment policy <br />serves as a guide for setting and achieving investment objectives, defines rules and established <br />benchmarks, prohibits and/or restricts investment instruments and reduces exposure to liability of <br />both staff and Council. Compliance with the policy is an element of fiscal discipline considered <br />by the auditors and rating agencies during their respective reviews. Following and City Council <br />approval, the City's Investment Policy will be submitted to MTA for its 5-year recertification. <br /> <br />City Council performs an annual review of the Investment Policy during the budget preparation <br />process to ensure that the policy remains in compliance with the City's fiscal policies and <br />California law. Council also reviews at this time any proposed amendments and/or revisions to <br />the Investment Policy as recommended by staff. Although a number of recommendations were <br />suggested by the City's Portfolio Manager, Chandler Asset Management, staff is only <br />recommending implementation of two changes as follows: <br /> <br />Page 5 & 8. Commercial Paper - removal of a sentence that is not congruent with current State <br />Code and changing the threshold from ... <br /> <br />"total portfolio purchases shall not exceed 15% of idle funds or 30% if the average <br />maturity of commercial paper holdings does not exceed 31 days." <br />to ... <br />