Finance Highlights 2012 0706 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: June 1, 2012 TO: Finance Committee FROM: Chris Zapata, City Manager BY: David Baum, Finance Director Mary Ann Perini, Budget and Compliance Manager SUBJECT: City of San Leandro's Investment Policy for 2012 -13 SUMMARY AND RECOMMENDATION Staff recommends that the Finance Committee review and approve the City of San Leandro's Investment Policy for fiscal year 2012 -13. The policy is scheduled for the June 18, 2012 City Council agenda. The Policy is approved annually, and includes modifications from previous years. Staff proposes acceptance of the enhancements and new language to the updated Investment Policy. BACKGROUND 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 June 20, 2011. 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 U.S. & 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 considered by the auditors and rating agencies during their respective reviews. Staff has reviewed the current policy and has seven recommended changes for 2012- 13. In addition, current state legislation has been reviewed to determine if there have been any updates or changes to state law that should be reflected in the City's policy and there were none. Should the legislature take such action in 2012 -13, then staff will return to Council with the necessary recommended changes.