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Description
San Bruno City Council Meeting April 27, 2010 10a. Quarterly Investment Report
B
Honorable
mayor
and
members
of
the
City
Council
during
the
first
quarter
of
2010,
the
city
continued
to
actively
reposition
its
investment
for
portfolio.
In
accordance
with
the
revisions
to
the
city's
investment
policy
adopted
november,
two
thousand
eight
at
quarter-end,
the
city
held
the
following
eight
million
dollars
in
direct
obligations
of
the
US
government.
These
securities
are
held
in
trust
at
union
bank
10.5
million
dollars,
with
the
city's
account
at
the
local
agency
investment
fund
administered
by
the
state,
treasurer
and
16.7
million
in
the
county
pool
administered
by
the
San
Mateo
County
Treasurer's
Office.
B
Further
diversification
and
additions
to
the
city's
portfolio
are
currently
being
evaluated
and
it
is
anticipated.
These
purchases
will
be
made
by
month
in
which
is,
of
course,
by
Friday
April.
We
saw
an
influx
of
approximately
seven
million
dollars
into
our
county
pool
account
and,
as
such,
you,
we
kind
of
you
know
lag
in
balancing
the
portfolio
by
generally
two
to
three
weeks,
because
they're
in
flux
by
the
early
part
of
May
that
will
be
taken
into
account
by
way
of
reminding
the
council.
The
county
treasurer
asks
us
not
to
withdraw
at
any
one
month.
B
More
than
twenty
percent
of
our
balance,
that
is,
they've
asked
that
that
of
all
its
participants
in
order
to
help
them
better
manage
their
their
cash
flows,
so
that
will
be
accomplished
by
by
the
end
of
next
week,
which
would
be
the
first
week
of
May
we'll
be
able
to
get
improper
balance
in
accordance
with
our
investment
policy
statement.
Now,
with
respect
to
the
San
Mateo
County's
investment
in
lehman
brothers,
or
that,
I
should
say,
the
county
pools,
investment
in
the
latest
is
as
follows.
B
During
the
first
quarter,
a
meeting
was
held
with
secretary
Geithner,
along
with
our
congressional
delegation
during
which
it
was
discussed
under
the
current
tarp
legislation.
Does
the
Secretary
of
the
Treasury
have
the
authority
to
reimburse
local
agencies
for
their
losses?
It
is
the
opinion
of
the
secretary
that,
in
fact,
they
do
not
have
that
authority
to
do
so.
So,
as
a
result,
attention
is
now
focusing
on
using
the
profits
from
already
repaid
tarp
funds
to
purchase
the
Lehman
bonds
at
par.
Currently,
those
bonds
are
trading
at
around
30
cents.
B
On
the
dollar,
the
idea
is
to
use
the
repaid
tarp
funds
to
purchase
the
the
bonds
that
part,
in
other
words,
make
the
various
investment
investors
whole
using
again
re
pay
top
dollars.
In
fact,
today
our
deputy
county
manager,
Mary
McMillan,
was
meeting
in
Washington
to
further
explore
this
idea.
She's
meeting
with
our
congressional
delegation,
Jackie
Speier
and
as
you
and
others
involved
in
the
House
Financial
Services
Committee,
as
soon
as
the
results
of
those
meetings
are
made
available,
I
will
report
them
as
soon
as
possible
and,
lastly,
it
was
reported.
B
We
were
informed
last
week
that
the
San
Mateo
County
Treasurer's
Office,
announced
an
eight
percent
reduction
in
the
management
fees
charged
to
pool
participants.
This
translates
into
a
drop
of
12
and
a
half
basis
points
to
11
and
a
half
basis
points
saving
the
city,
a
thousand
dollars
for
every
million
dollars,
managed
by
the
pool
as
their
management
fees
being
reduced
in
to
more
or
less
help,
the
all
the
participants
and
their
accounts
for
us
again.
However,
it
is
a
thousand
dollars
for
every
million
dollars
and
managed
by
the
pool.