Reso 2001-214 - Laserfiche WebLink

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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 the portfolio -investing only in securities having the highest quality ratings and little or no risk of default. The City employs diversification to ensure that potential losses on individual securities do not exceed the income generated by the remainder of the portfolio. 2. Liquidity -The City's investment portfolio will be structured to provide cash from maturing investments and interest income to meet City operating requirements which can be reasonably anticipated. Since emergency cash needs do arise on occasion, the portfolio will consist primarily of securities with established and active secondary resale markets. 3. Yield or Return on Investment -Yield becomes a consideration only after the safety and liquidity objectives have been met. The City's investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles, commensurate with the City's investment risk constraints and the cash flow characteristics of the portfolio. V. Investment Criteria The City invests its funds in accordance with the following criteria: 1. Insure that funds not needed for current City obligations are fully invested at all times. 2. Actively manage the portfolio and take advantage of the changing nature of the economy, the U.S. Government Securities market and the national money market in order to maximize total return. 3. Guarantee that funds are always available when needed. 4. Insure that yield-restricted funds are monitored to ensure compliance with federal arbitrage rebate requirements. 5. Insure that the specific requirements outlined in the Bond Indentures of Trust are maintained. VI. Ethics and Conflicts of Interest Officers and employees involved in the investment process will refrain from personal business activity that would conflict with the proper execution of the investment program, or would impair their ability to make impartial investment decisions. Employees and investment officials will disclose to the Finance Director any material interests in financial institutions that conduct business with the City of San Leandro. Furthermore, they will disclose any large personal financial/investment positions that could be related to the financial performance of the City, particularly at the time of investment purchases and sales. Investment officers and employees who fail to comply with this disclosure requirement will be subject to administrative action. City of San Leandro Investment Policy Page 2 of 11