Finance Highlights 2008 0729 - Laserfiche WebLink

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CITY COUNCIL FINANCE COMMITTEE July 29, 2008 9:00 a.m. -10:30 a.m. San Leandro City Hall 835 East 14th Street San Leandro, California (Sister Cities Gallery) HIGHLIGHTS Committee Members: Mayor Santos, Councilmember Grant (Chair), Councilmember Gregory City Staff Present: City Manager Jermanis, Assistant City Manager Hollister, Interim Finance Director Carter, Human Resources Director Caire, ALCO Fire Chief Gilbert, Deputy Finance Director Rodriguez, City Attorney Williams, Assistant City Attorney Stuart, Assistant City Attorney Pio Roda, ALCO Fire Financial Services Manager Hisatomi, Administrative Assistant III Perez Public Present: Councilmember Souza, Charles Gilcrest, and Linda Perry The meeting was called to order at 9:02 a.m. 1. Discussion Regarding Investment Report -Quarter Ended June 30, 2008 Interim Finance Director Carter provided an overview of the City's portfolio and explained that the market value was approximately $95.7 million. Of this amount, $58.6 million is in the Local Agency Investment Fund (LAIF) and $37.1 million is in the Chandler Asset Management program. The return for LAIF was 3.11 % and the return on the Chandler managed funds were 4.12%, which is good in today's market. The Chandler Investment Report indicates that the City is in compliance with all provisions of the City's Investment Policy. Carter focused on the overview and informed the Committee that the strategy recommended by Chandler is to gradually lengthen the average maturity of the portfolio to capture higher interest rates. The City and Economic Development Agency LAIF investments, each having a maximum investment amount of $40 million are essentially liquid funds and can be withdrawn within 24 hours. Councilmember Gregory inquired about the amount of money in LAIF and the accessibility of funds. Carter stated that the City is able to move money around the different accounts to stay within the $40 million maximum per regular account. Councilmember Grant inquired on whether or not LAIF funds are insured (FDIC). Jermanis stated that they are not insured and that is the reason for only investing in AAA rated bonds. Carter also mentioned that the City does have investments in Freddy Mac and Fanny Mae however the City holds bonds rather than stocks and therefore the decline in value have not impacted our investments. Carter added that the bonds are not subject to stock market fluctuations.