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City of San Leandro <br />Meeting Date: June 20, 2016 <br />Staff Report <br />Agenda Section:File Number:16-140 CONSENT CALENDAR <br />Agenda Number:8.I. <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 Approving the City of San Leandro’s Investment <br />Policy for Fiscal Year 2016-17 <br />SUMMARY AND RECOMMENDATION <br />Staff recommends City Council approval of the City of San Leandro Investment Policy for <br />fiscal year 2016-17. The policy is approved annually and there are five proposed updates for <br />the policy for 2016-17. <br />BACKGROUND AND PROPOSED UPDATES <br />California Government Code Section 53600 et seq. and Section VIII “Reporting” of the San <br />Leandro Investment Policy requires the City Council to annually review and approve the City’s <br />Investment Policy. This policy was last adopted on June 15, 2015. <br />The City of San Leandro Investment Policy (Investment Policy) provides specific guidelines for <br />the City’s investment management functions and remains in compliance with the model policy <br />approved by the Association of Public Treasurers of the United States and Canada and <br />California Government Code Section 53601. The Investment Policy serves as a guide for <br />setting and achieving investment objectives, defines rules and established benchmarks, <br />prohibits and/or restricts investment instruments and reduces exposure to liability of both staff <br />and Council. Compliance with the policy is an element of fiscal discipline considered by the <br />auditors and rating agencies during their respective reviews. <br />Staff has reviewed the current policy and has five recommended updates for 2016-17. The <br />policy update allows for investments in Asset Backed, Mortgage Backed, Mortgage <br />Pass-through Securities, and Collateralized Mortgage Obligations, consistent with California <br />Government Code. Appendix A has also been updated to include specific language to the <br />asset class and Appendix B is updated to include Supranational Securities. The following are <br />the specific changes to the policy: <br />1. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized <br />Page 1 City of San Leandro Printed on 6/14/2016