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San Leandro Investment Policy StatementPage 8of 15 <br /> <br />Competitive Transactions <br />All investment transactions shall be conducted on a competitive basis with quotes from a <br />minimum of three brokers or financial institutions when possible. <br />Safekeeping <br />Purchased securities are held in third party safekeeping by the trust department of the City's <br />bank or other designated third party in the City's name and control. All security transactions <br />entered into by the City will be conducted on a delivery-versus-payment (DVP) basis and <br />evidenced by a receipt issued by the safekeeping agent. <br />Collateralization <br />An independent third party with whom the City of San Leandro has a current custodial <br />agreement will always hold collateral. A clearly marked evidence of ownership must be <br />supplied to the City. <br />Internal Control and Review <br />The Finance Director will establish an annual review process to ensure compliance with <br />the established Investment Policy and routine reporting requirements. <br />Performance Standards <br />The investment portfolio shall be designed with the overall objective of obtaining a total <br />rate of return throughout economic cycles, commensurate with investment risk constraints <br />and cash flow needs. <br />The investment performance objective for the portfolio shall be to earn a total rate of <br />return over a market cycle which is approximately equal to the return on a Market <br /> <br />Other market investments that may be used as yield comparisons include: <br /> The State of California Local Agency Investment Fund (LAIF) <br /> The two-year U.S. Treasury Bill <br /> The five-year U.S. Treasury Note <br />Reporting <br />This policy will be reviewed annually with the City Council to ensure compliance with the <br />objectives of safety, liquidity and yield and adherence with applicable laws. The City Council <br />Finance Committee will review and approve all changes to this policy statement prior to <br />submittal to the full City Council for approval. <br />California Government Code Section 53646 states that the Finance Director may render a <br />quarterly report on the status of the Cinvestment portfolio to the City Manager and the <br />City Council within 30 days after the end of the calendar quarter. The report will provide <br />detailed information regarding the type of investments, the amount invested with various <br />institutions, purchase and maturity dates, and interest yield on all investments. The report <br />are in compliance with this policy and if the City will be <br />able to meet its cash obligations during the next six-month period. The Finance Director, will <br />submit a monthly transactions report on the to the City Manager and City <br />Council consistent with the requirements of the State Code. <br /> <br />