TITLE
Recommendation to receive and file Investment Report for Quarter Ending September 30, 2008. (Citywide)
DISCUSSION
The Department of Financial Management, City Treasurer's Office, invests the City's funds in compliance with the California Government Code, Section. 53600 et seq., and the City's Investment Policy. As of September 30, 2008, these funds had a market value of approximately $1.70 billion, with approximately $700 million, or 41 percent, maturing within six months, ensuring sufficient funds are available to meet the City's cash and liquidity needs.
Statutory Compliance
All investment transactions have been executed in conformance with the City's Investment Policy and the California Government Code. According to the California Government Code, the maturity term of all investments is limited to a maximum of five years unless the local agency legislative body gives prior approval to exceed this limitation. The City's Investment Policy currently requires that all funds invested in the City's investment pool not exceed a weighted average maturity of three years. In addition, the Investment Advisory Committee, composed of the Assistant City Manager, Assistant City Auditor, Assistant City Attorney, Director of Financial Management, City Treasurer, City Controller, and the Financial Officers of the Harbor, Water and Development Services Departments, meets quarterly, or as needed, to review investment policies, strategies and performance. The City Auditor's Office conducts quarterly audits of the City's investment portfolio to ensure compliance with all applicable laws and policies.
Investment Pool Rating
As previously reported, the City's investment portfolio carried the highest credit rating of AAAf and the lowest volatility rating of S1 by the Standard & Poor's rating agency on March 31, 2008. Given the current financial crisis, and the recent failure of Lehman Holdings, Inc., the Department of Financial Management contacted the Standard & Poor...
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