07 - Laserfiche WebLink

guidelines, most of the changes are applicable to local agencies other than cities and counties or a city and county, therefore no updates to the City's current policy are required. Per FY 2020/21 investment policy, the City may invest in the State of California Local Agency Investment Fund (LAIF), up to the maximum permitted by the State. The current LAIF deposit limit is $65 million. The State Treasurer's Office increased that limit to $75 million. As such, staff proposes that the FY 2021/22 investment policy includes a LAIF deposit limit of$75 million. Investment Strategy The overall strategy of the investment program is to earn a market rate of return, while maintaining sufficient liquidity to meet operating cash requirements. This is accomplished by maintaining a portfolio of allowable investment instruments that have acceptable credit quality standards with maturities matching expected cash needs. The City does not actively trade securities in the open market. We utilize a conservative approach, which is described as "buy and hold", and means that once we purchase a security, we hold the security until maturity. Allowable Investment Instruments The California Government Code restricts the type of investments that can be made by a municipal government, and the City's investment policy further restricts the type of investment instruments that are allowed. The California Government Code also restricts the maturities of investments to no more than five years and restricts the percentage of certain investment instruments in the portfolio. The City's investment policy mirrors those same restrictions. The following table summarizes the investments allowed by the California Government Code, and of those, the investments allowed by the recommended City investment policy. It also lists the value of each category in the current portfolio as of April 30, 2021. Page 2 of 4