Laserfiche WebLink
San Leandro Investment Policy Statement Page 9 of 18 <br /> <br />XII. 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 /> <br />XIII. 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 /> <br />XIV. Collateralization <br />Collateralization will be required on two types of investments: time certificates of deposit <br />and repurchase agreements. To anticipate market changes and provide a level of security <br />for all funds, securities pledged as collateral for time certificate of deposits shall be limited <br />to Treasury and Agency securities and have a market value of at least 110% of principal <br />and accrued interest. . Investments in Repurchase Agreements must be collateralized <br />with collateral limited to Treasury and Agency securities at 102% of market value of <br />principal and accrued interest. <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 /> <br />XV. 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 /> <br />XVI. 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 /> <br />An appropriate performance benchmark shall be established against which portfolio <br />performance shall be compared on a regular basis. The selected performance benchmark <br />shall be representative of the City’s overall investment objectives and liquidity <br />requirements. <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 /> <br />Exhibit A <br />Resolution No. 2026-003 Page 9