Finance Highlights 2010 0518 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: May 18, 2010 TO: Finance Committee FROM: Perry Carter, Interim Finance Director BY: Mary Ann Perini, Budget & Compliance Manager /1,t~f'~ SUBJECT: Proposed Update of City Investment Policy RECOMMENDATION Staff recommends Finance Committee approval of the City of San Leandro Investment Policy update. The Policy is approved annually and includes five changes regarding regulatory compliance with California Government Code (CGC) sections. Background and Discussion California Government Code Section 53600 et seq., and Section VIII 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 July 20, 2009. 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 US & Canada. 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 covered by the auditors and rating agencies during their respective reviews. City Council performs an annual review of the Investment Policy during the budget preparation process to ensure that the policy remains in compliance with the City's fiscal policies and California law. Council also reviews at this time any proposed amendments and/or revisions to the Investment Policy as recommended by staff. 1. Page 2, III Delegation of Investment Authority/Prudence -The recommended changes are as follows: • Added the word "Prudence" to the title of section III and added CGC Section "53600" regarding prudent investments, which is consistent with the remainder of section III.