Reso 1996-026 to 030 - Laserfiche WebLink

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March 4, 1996 Page 1 of 4 City of San Leandro INVESTMENT POLICY The policy of the City of San Leandro shall have funds not required for immediate expenditure by the City invested in compliance with State law and this policy. The City will maintain cash adequate for on -going cash flow needs. The investment of public funds shall provide maximum security of principal invested, while striving for the maximum return on invested funds. I. Delegation of Authority The Finance Director and Assistant Finance Director have been delegated investment authority by City Council Resolution No. 94-143. The Finance Director and Assistant Finance Director are trustees and fiduciaries subject to the prudent investor standard in accordance with Government Code chapter 53600. II. Investment Criteria The criteria for selecting investments in order of priority are: 1. Safety of Principal-- The City shall insure the safety of its surplus funds by limiting both credit and interest rate risks. Credit risk is the risk of loss due to failure of the security issuer or backer. Interest rate risk is the risk the market value of portfolio securities will fall due to an increase in general interest rates. 2. Liquidity-- The City's investments shall be structured to provide maturity as cash is required. Since all cash demands can not be anticipated, the portfolio will consist primarily of securities with active, secondary resale markets. 3. Maximize Return on Overall Total Portfolio-- Yield on the City's investment portfolio is of significant but lesser importance than safety of principal and liquidity. The City's investment portfolio shall be designed to attain the market -average rate of return through economic cycles. The City shall manage its investments in such a way as to insure meeting these criteria. Investments will be made in a range of instruments to lessen risk by diversifying the City's portfolio.