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Description
San Bruno City Council Meeting May 24, 2011
10a. City Treasurer's Report
A
B
B
No
changes
have
been
made
to
the
investment
strategy
adopted
January
12
2010
in
response
to
the
fiscal
year,
2009-2010
year-end
audit
that
indicated
a
conflict
between
the
city's
investment
policy
and
the
deposits
from
the
San
Mateo
County
pool
the
city
has
initiated
the
process
for
an
electronic
funds
transfer
to
the
main
checking
account
for
all
funds
that
were
previously
credited
to
its
main
checking
account.
By
doing
so,
the
city
has
strengthened
its
ability
to
monitor
and
remain
in
compliance
with
the
investment
policy
statement.
B
Furthermore,
this
electronic
funds
transfer
enables
the
city
to
become
more
efficient
and
timely
and
allocating
its
assets.
The
county
treasurer's
office
estimates
this
process
to
be
completed
to
be
in
place
by
june
thirtieth
of
this
year.
During
the
first
quarter
of
2011,
the
city
actively
managed
its
investment
portfolio
has
several
bond
issues:
matured
at
quarter-end,
the
city
held
the
following:
15.7
million
in
the
San
Mateo
County
pool
13.1
million
in
the
local
agency.
B
With
respect
to
the
Lehman
Brothers
collapse,
the
bankruptcy
proceedings
are
nearing
an
end
on
june
thirtieth.
The
bankruptcy
judge
will
rule
as
to
the
final
plan
for
the
creditors.
The
expectation
is,
each
creditor
will
receive
thirty
cents
on
the
dollar,
with
the
distribution
to
occur
sometime
in
the
third
quarter
this
year.
In
the
wake
of
this
Lehman
issue,
the
City
Council
asked
to
have
an
investment
investment
before
that.
Each
quarter
end
in
large
part
to
report
on
the
progress
of
the
bankruptcy
proceedings.
C
B
B
At
this
point,
I
would
like
to
offer
a
clarifying
language
to
our
investment
policy
that
is
meant
to
formalize.
What,
in
fact
is
already
occurring,
I
would
like
to
direct
your
attention
to
page
2
or
section
2.
Excuse
me
entitled
implementation.
The
first
paragraph
on
page
2,
which
discusses
the
appointment
of
a
deputy
city,
treasurer
I,
would
suggest
eliminating
that
paragraph
in
its
entirety
and
replacing
it
with
the
following.
B
I
do
believe
you
have
a
copy
of
the
suggested
language,
I'll
read
it
aloud
and
the
event
the
treasure
is
unable
to
perform
his
or
her
duties.
The
city's
finance
director
will
serve
as
interim
treasurer
until
the
City
Council
is
able
to
take
the
necessary
action
to
fill
this
position.
As
I
mentioned
a
moment
ago.
This
is
meant
to
clarify
what
in
fact
has
taken
place
on
every
single
account
checking
account
investment
account.
B
The
finance
director
is
a
signatory
on
it,
as
well
as
I,
and
also
the
deputy
city
finance
director
is
already
on
the
accounts
as
well.
So,
in
fact,
if
I
am
unable
to
perform
my
duties
that
the
finance
director
has
in
fact
already
the
authority
to
act
to
handle
any
of
the
city
funds,
so
I
would
respectfully
request
that
again
that
first
paragraph
first
paragraph
on
page
to
be
eliminated
and
in
its
stead,
this
paragraph
inserted.
A
Okay,
anything
else,
John
know
that
is
all
just
as
a
point
of
clarification.
Maybe
the
city
manager
can
clarify
this
for
us.
When
you
mentioned
you
had
three
million
dollars
in
the
Indian
in
the
fund
for
the
glenview
victims,
I
believe
it
was
unrestricted
for
City
us
regarding
the
fire.
I
want
to
make
sure
it's
clarified.
Yeah.
D
D
They
were
intended
to
be
used
for
City
related
purposes
for
costs
associated
with
the
city's
business
and
operations
related
to
related
to
the
incident
they
are
otherwise.
Undesignated
have
not
been
used,
as
the
treasurer
has
indicated
are
on
deposit
in
an
investment
account
and
at
this
particular
moment
in
time,
have
no
immediate
plan
or
intended
use.
But
given
the
extraordinary.
D
E
I
would
concur
with
the
cleanup
language
that
mr.
Marty
is
recommended
and
I
would
also
write
a
concur
with
the
treasure
in
regards
to
the
quarterly
coming
back,
because
Lehman
Brothers
situation
is
pretty
well
resolved,
not
to
all
that
we
would
love,
but
it's
the
reality
of
what
is,
but
I
also
add
periodically
I,
don't
know
what
periodically
maybe,
but
it
would
be.
Nice
also
hear
some
food
for
thought
investment
opportunity
what
the
market
is
seen
in
the
yield
rate
or
performance.
The
city's
cash
flow.
E
C
Michael
to
the
two
primary
polls
that
are,
the
funds
are
invested
in
the
local
agency
investment
fund
in
the
San
Mateo
County
pool.
What
do
we
know
about
what's
contained
in
each
of
those
funds,
and
are
they
different
enough,
where
we're
actually,
where
we
have
enough
diversity
or
are
those
two
essentially
the
same
types
of
investments?
No.
B
The
San
Mateo
County
pool
holds
approximately
350
different
issues.
The
entire
sizes
of
fun
is
about
3
billion
dollars.
It
holds
anything
from
CDs
from
various
banks
not
restricted
to
California
the
nationwide.
You
have
us
treasuries.
You
have
agency
paper
agency,
Federal,
Home,
Loan,
Bank,
Fannie,
Mae,
Freddie,
Mac,
Federal,
Home,
Loan,
Mortgage
Corporation.
B
You
have
medium
term
notes
up
to
7
10
years.
In
addition,
you
do
have
some
corporate
investment
grade
corporate
securities
in
there,
some
of
which
are
part
of
the
Treasury
guarantee
program.
So
they
have
it
in
his
essence.
Federal
backing
Lafe
has
a
lot
more
concentration
state
in
California
obligations,
general
obligation
bonds.
They
held
some
securities
issued
by
various
municipalities
within
the
state.
So
if
you
look
at
the
portfolios
in
general,
you
can
think
of
late,
more
California
centric.