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<br />51 <br />payroll over a 30 year closed amortization period. There is no assumed post retirement <br />benefit increase. <br /> Investment Policies and Procedures. The City maintains a cash and investment pool, <br />which includes cash balances and authorized investments of all funds, which the Finance <br />Director invests to enhance interest earnings. The pooled interest earned is allocated to the <br />funds based on average daily cash and investment balance in these funds. The City invests its <br />funds in accordance with the City’s Investment Policy (the “Investment Policy”), which is subject <br />to annual review and approval by the City Council. The purpose of the Investment Policy is to <br />establish the investment goals of safety, liquidity, and yield (in that order). The City’s <br />Investment Policy complies with the provisions of the California government Code, Sections <br />53600 through 53659 (the authority governing investments for municipal governments in the <br />State). The Investment Policy limits the City to investments authorized by State law. In <br />addition, the Investment Policy establishes further guidelines. <br /> <br />The overall strategy of the Investment Policy is to earn a maximum rate of return, while <br />preserving capital and sufficient liquidity to meet operating cash requirements. This is <br />accomplished by maintaining a portfolio of allowable investment instruments that have <br />acceptable credit quality standards with maturities matching expected cash needs. The City <br />does not actively trade securities in the open market. The City utilizes a “buy and hold” <br />approach, which means that it holds securities until maturity unless they are called prior to their <br />scheduled maturity dates by the issuing entity. <br /> <br />The City Council reviews quarterly investment reports. According to the report for the <br />quarter ended June 30, 2016, the City has invested funds as set forth in the table below. There <br />has been no material change to the amounts of invested funds set forth below as of the date <br />hereof. <br /> <br />TABLE 16 <br />CITY OF SAN LEANDRO <br />INVESTMENT PORTFOLIO <br />As of August 31, 2016(1) <br /> <br /> <br />Par Value Market Value Cost <br />% of <br />Portfolio(3) <br />Government Issues (2) $43,173,000 $44,842,320 $44,370,605 40.7% <br />Money Market 9,854,368 9,854,368 9,854,368 9.0 <br />Local Agency Investment Fund (LAIF) 55,318,619 55,318,619 55,318,619 50.3 <br />TOTAL $108,345,987 $110,015,307 $109,543,591 100.0% <br /> <br />(1) Most recent report available. <br />(2) Includes federal agency securities and U.S. Treasury notes. <br />(3) Market value of assets used. <br />Source: City of San Leandro. <br /> <br />City Economic and Demographic Information <br /> Employment and Industry. The City has a diverse and strong economy, with its <br />business community comprised of a varied collection of businesses ranging from neighborhood <br />coffee houses and fine restaurants, large food processing centers, and regional shopping <br />opportunities, to cutting edge technology companies. While the economic base has dramatically <br />changed from its agricultural early years, the City continues to expand on its sound business <br />base with the ongoing development of such projects as a new downtown parking structure, a