Reso 1997-031 to 035 - Laserfiche WebLink

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April 7, 1997 Pagel of 3 City of San Leandro INVESTMENT POLICY 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 adequate cash for on -going cash flow needs. The investment of public funds shall provide maximum security of principal invested, while it strives for the maximum return on funds. I. Delegation of Authority The Finance Director and Assistant Finance Director have been delegated the 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 City shall manage its investments and meet the following: 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 chance of loss due to failure of the security issuer or backer. Interest rate risk is the chance the market value of portfolio securities will fall due to higher general interest rates. 2. Liquidity - The City's investments shall be structured to provide maturity as cash is needed. 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 significant but of lower 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. III. Objectives The basic premise of the investment policy is to insure that money is available when needed. It shall also be the policy of the City to diversify its investment portfolio in a range of instruments to insure the maximum safety of City assets. The City's portfolio shall be actively managed in order to gain the advantage of changing economic conditions. Through daily projected cash flow analysis, the City will invest all idle cash.