REPORT TO COUNCIL
SUBJECT
Title
Annual Investment Policy Review and Approval
Report
BACKGROUND
The Investment Policy for the City of Santa Clara, its agencies and corporations (the "Investment Policy") is submitted for review and approval. The City Charter, Article IX, Section 904 gives the Director of Finance the authority and responsibility to deposit and invest all City funds.
DISCUSSION
As part of the annual staff review of the attached Investment Policy, staff recommends approval of some substantive changes and clarified some wording in the attached investment policy. Substantive changes recommended to the Investment Policy are shown in the attached redline version and summarized below. These recommended changes are consistent with applicable state law and the City Charter.
* Deleted items duplicated throughout the policy.
* Clarified that the Bentzien Trust portfolio is not subject to the City's Investment Policy, since it is governed by the "Agreement By and Between the City of Santa Clara, California and the Mission City Community Fund Regarding the Investment, Disbursement and Distribution of Funds in the Forrest and Evalyne Bentzien Non-Expendable Trust Fund" approved by City Council and dated July 25, 2000. The Bentzien Trust was established in accordance with the Bentzien Will with the income earned on the Trust to be used for programs administered through the Mission City Community Fund.
* Presented the maximum holdings of an investment type, maximum issuer amounts, and maximum maturity for each permissible investment type in a consistent manner.
* Reduced the maximum holdings for certain investment types, and established maximum limits per issuer, in order to ensure proper diversification of the City's investment portfolio.
* Clarified that securities owned in mutual funds and investment pools will not count towards maximum allowable holding percentages.
* Updated the investment reporting requirements under the Reporting section to include...
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