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San Leandro Investment Policy Statement Page 2 of 12 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. II. 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 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. III. Delegation of Investment Authority/Prudence California Government Code Section 53600 and 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 his/her designee. The Finance Director and his/her designee are trustees and fiduciaries that shall use the "prudent investor" standard in managing the City's portfolio. When investing, reinvesting, purchasing acquiring, exchanging, selling, or managing public funds, the trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments maybe acquired as authorized bylaw.