Reso 2021-079 Investment Policy Stmt FY 21 22

Home

San Leandro Investment Policy Statement Page 8 of 18 Competitive Transactions All investment transactions shall be conducted on a competitive basis with quotes from a minimum of three brokers or financial institutions when possible. Safekeeping Purchased securities are held in third party safekeeping by the trust department of the City's bank or other designated third party in the City's name and control. All security transactions entered into by the City will be conducted on a delivery -versus -payment (DVP) basis and evidenced by a receipt issued by the safekeeping agent. Collateral ization An independent third party with whom the City of San Leandro has a current custodial agreement will always hold collateral. A clearly marked evidence of ownership must be supplied to the City. Internal Control and Review The Finance Director will establish an annual review process to ensure compliance with the established Investment Policy and routine reporting requirements. Performance Standards The investment portfolio shall be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs. The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on a Market Benchmark Index of similar risk characteristics as that of the City's investment portfolio. Other market investments that may be used as yield comparisons include: • The State of California Local Agency Investment Fund (LAIF) • The two-year U.S. Treasury Bill • The five-year U.S. Treasury Note Resorting This policy will be reviewed annually with the City Council to ensure compliance with the objectives of safety, liquidity and yield and adherence with applicable laws. The City Council Finance Committee will review and approve all changes to this policy statement prior to submittal to the full City Council for approval. California Government Code Section 53646 states that the Finance Director may render a quarterly report on the status of the City's investment portfolio to the City Manager and the City Council within 30 days after the end of the calendar quarter. The report will provide detailed information regarding the type of investments, the amount invested with various institutions, purchase and maturity dates, and interest yield on all investments. The report shall state if the City's investments are in compliance with this policy and if the City will be able to meet its cash obligations during the next six-month period. The Finance Director will submit a monthly transactions report on the portfolio's activity to the City Manager and City