Laserfiche WebLink
AN City of San Leandro <br />Meeting Date: February 3, 2014 <br />ONR x419 ` Staff Report <br />File Number: 14-014 <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 />Agenda Section: CONSENT CALENDAR <br />Agenda Number: 8.B. <br />TITLE: Staff Report for Resolution Approving the Investment Report for the Quarter <br />Ended December 31, 2013 <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council review and accept the investment report for the <br />quarter ended December 31, 2013. <br />OVERVIEW <br />At December 31, 2013, the City's investment portfolio had a market value of $75.8 million. Of <br />this total, $42.1 million was placed with the Local Agency Investment Fund (LAIF) and bank <br />accounts and $33.7 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 0.86%. 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 0.86%, which exceeds the benchmark <br />rate of return on the 2 -year U.S. Treasury securities of 0.38%. <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Amounts invested with LAIF are essentially liquid; funds can be withdrawn with minimal notice 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 />City of San Leandro Page 1 Printed on 1/28/2014 <br />