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City of San Leandro <br />Meeting Date: November 4, 2013 <br />Staff Report <br />Agenda Section:File Number:13-527 CONSENT CALENDAR <br />Agenda Number:8.E. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:David Baum <br />Finance Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for Resolution Accepting the Investment Report for the Quarter <br />Ended September 30, 2013 <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council adopt the resolution accepting the attached <br />investment report for the quarter ended September 30, 2013. <br />BACKGROUND <br />At September 30, 2013, the City’s investment portfolio had a market value of $80.6 million. Of <br />this total, $46.9 million was placed with the Local Agency Investment Fund (LAIF) and bank <br />accounts and $33.6 million was placed in the Chandler Asset Management portfolio . On <br />January 31, 2012 the Redevelopment Agency LAIF accounts were closed as a result of the <br />dissolution of the San Leandro Redevelopment Agency . These funds were transferred to the <br />City’s Economic Development Agency LAIF account in the amount of $9.3 million. <br />Subsequently, the Economic Development Agency LAIF account has been transferred to a <br />new Successor Agency LAIF account established during the quarter ended June 30, 2012. <br />The balance in this new account is $2.8 million and has decreased since January 31, 2012 <br />due to debt repayments. <br />The rate of return for LAIF for the quarter was 0.26%, while the average book yield for the <br />Chandler managed funds was 0.82%. The City’s investment policy establishes three bases <br />for the performance standard: the LAIF rate of return and the rate of return on 2-year and <br />5-year U.S. Treasury securities. Amounts invested in LAIF meet this performance standard. <br />The Chandler managed funds average book yield was 0.82%, which exceeds the benchmark <br />rate of return on the 2-year U.S. Treasury securities of 0.32%. <br />Amounts invested with LAIF are essentially liquid; funds can be withdrawn with minimal notice <br />as City operations require. The rate of return earned by LAIF generally follows fixed income <br />security rates. <br />Page 1 City of San Leandro Printed on 10/29/2013