Reso 2026-003 Investment Policy - Laserfiche WebLink

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San Leandro Investment Policy Statement Page 3 of 18 IV. Investment Objectives 1. Safety: Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 2. Liquidity: The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. 3. Yield: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs. Return on investment is of least importance compared to the safety and liquidity of the City’s assets as described above. Other: Investments are to be made that will bear in mind the responsibility of city government to its citizens. Alternative investments which enhance the quality of life will be given full consideration. V. Investment Criteria The City invests its funds in accordance with the following criteria: 1. Ensure that funds not needed for current City obligations are fully invested. 2. Ensure that yield-restricted funds are monitored to ensure compliance with federal arbitrage rebate requirements. 3. Ensure that the specific requirements outlined in the Bond Indentures of Trust are maintained. VI. Ethics and Conflicts of Interest Officers and employees involved in the investment process will refrain from personal business activity that would conflict with the proper execution of the investment program or would impair their ability to make impartial investment decisions. Employees and investment officials will disclose to the Finance Director any material interests in financial institutions that conduct business with the City. Furthermore, they will disclose any personal financial/investment positions that could be related to the financial performance of the City, particularly at the time of investment purchases and sales. Investment officers and employees who fail to comply with this disclosure requirement will be subject to administrative action. VII. Authorized Financial Dealers and Institutions The Finance Director shall approve all financial institutions from which securities are purchased or sold and approve security broker/dealers selected after conducting a process of due diligence for internal transactions. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). The City’s Finance Director/Treasurer will determine which financial institutions are authorized to provide investment services directly to the City. Institutions eligible to transact investment business with the City include: 1. Primary dealers and regional dealers. Exhibit A Resolution No. 2026-003 Page 3