ANNUAL INVESTMENT POLICY REVIEW
FOR FISCALYEAR 2022
Public Safety, Finance and
Strategic Support Committee
Prepared by the Finance Department
February 17, 2022
COMMITTEE AGENDA: 02/17/2022
ITEM: D(3)
FILE: CC 22-022
PRESENTATION
ANNUAL INVESTMENT POLICY REVIEW
• The Policy requires that the Finance Department:
▪ Perform an annual review of the Policy;
▪ Submit any proposed changes to the Public Safety, Finance, and Strategic Support Committee for its review subsequent consideration; and ▪ Seek approval by the full City Council
• A redlined version of the City of San José Investment Policy, Policy Number 1-12, is included as Exhibit A.
2 UPDATE, IMPROVE OR CLARIFY LANGUAGE
• Clarify authority language to better align with the City Charter • Clarify language and improve disclosure requirements for Financial Institutions
• Standardize and update language for authorized investments 3 NEW ELEMENTS FOR ADDITIONAL
FLEXIBILITY
• Add Joint Power Authority Pools as an authorized investment to increase short-term options
• Add a section allowing investment in negative rates under certain market conditions, to conform to changes made in State law 4 IMPROVE AND REFINE POLICY
CONSIDERATIONS
• Expand language in the Social Responsibility section to include all protected categories in City Administrative Policy Manual 1.1.1 • Make permanent the temporary modification of the Weighted Average Maturity to two-and-a-half years.
▪ Originally approved by September 15, 2020 Council Action through July 1, 2021 ▪ Later extended through July 1, 2022
5 RECOMMENDATION
• Approve the City of San José Investment Policy, as amended • Refer the City of San José Investment Policy as well as the respective resolution to the full City Council for consideration at the March 15, 2022 Council Meeting
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