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San Leandro Investment Policy Page 1 of 12 Revised May 2003 I. Policy Statement The City of San Leandro (City) invests public funds not required to meet current City obligations in compliance with the State of California (State) Government Code and this policy. The City's overall goal is to invest as close to 100% of these funds as possible to provide the maximum return and security while meeting the City's daily cash flow needs. As a rule, the City invests in securities having maturities no greater than five (5) years and holds its investment securities until their scheduled maturity dates or until they are called prior to their scheduled maturity dates by the issuing entity. IL Policy Scope This investment policy is applicable to all financial assets of the City of San Leandro; the Community Redevelopment Agency of the City of San Leandro; the San Leandro Housing Finance Corporation; the City of San Leandro Parking Authority; the San Leandro Public Financing Authority; and the San Leandro Economic Development Agency. These assets are accounted for in the City's Comprehensive Annual Financial Report in the following funds: • General Fund • Special Revenue Funds • Capital Project Funds • Debt Service Funds • Enterprise Funds • Internal Service Funds • Agency Funds This policy automatically applies to component units and funds subsequently established by the City of San Leandro. IIL Delegation of Investment Authority/Prudence California Government Code Section 53646 states that the ultimate responsibility for the prudent investment of public funds rests with the governing body, or City Council. Through City Council resolution No. 94-143 the Council has delegated investment authority to the Finance Director and the Assistant Finance Director. The Finance Director and the Assistant Finance Director are trustees and fiduciaries that shall use the "prudent person" standard in managing the City's portfolio. They will exercise the same judgement and care which persons of prudence, discretion and intelligence exercise in the management of their own affairs. They will invest not for speculation, but to provide for the safety of principal, the assurance of liquidity and the generation of income. IV. Investment Objectives The City's cash management system is designed to monitor and forecast revenues and expenditures in order to meet the following objectives: 1. Safety of Principal -Safety of principal is the primary objective of the City's investment program. The City invests in a manner that ensures the preservation of the principal value of