San Leandro Finance Committee Meeting Summary - February 26, 2025
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San Leandro Finance Committee Meeting Summary - February 26, 2025
The San Leandro Finance Committee met on February 26, 2025, at 4:00 PM in the City Council Chambers. The meeting covered updates to investment policies, year-end and mid-year financial reports, and discussions on fees related to public works and environmental services. The committee made several recommendations to forward items to the City Council, with some items lacking consensus and requiring further discussion.
Meeting Transcript
Is anybody else's interest? We're addressing technical difficulties. We are addressing technical difficulties. Which are now been solved. We will continue. So committee clerk, would you please take the role? Thank you, Mayor. We will now take a role. Councilmember Aguilar? Present. Mayor? President. Please note all members are present. Are there any announcements today? Seeing that let's move to my first item. We've got a staff presentation. I think it's it's finance. Is it still right? Whatever your title is, either route and the. I was saying earlier you need to come up with a new title for me. Um yes, thank you. So what you have before you, I don't have a formal presentation because it's a very simple change. Um is the request from the investment manager to update the investment policies for the 115 trusts, both the pension and the other post-employment benefit trusts. Um there's no substantive change, it's really just form. Um and they've changed investment managers, the city invests through cars for both of these plans, and the um the investment manager changed from high mark to PFM, and so they've asked to update the template. And so on the staff report, you did have attachments to the previous and the draft suggested, and we're just looking for the finance committee to recommend to council to update the investment policies. Again, no changes unless they did mention in the staff report we had previously talked about potentially updating the investment allocation, but it was decided in December that that wasn't really something we wanted to do at the time, but that is something that you want to talk about. Okay, and share on the screen. Okay, just simplify things. We will take public comment on this item at this time. So if anyone from the publisher wishes to speak. Um and I'll go to council members for questions and your commentary at the same time. Thank you. I was just looking through the um looking at page six of uh the uh graph investment proposal and um particularly I just had a question around the asset weightings and the classes and the percentages. There's different between the uh there's different uh numbers between the trust and fund trust pension fund and the OPEB fund. Why is there a difference between the OPEP and the one and I also notice like the difference between the international versus the national? Can you talk a little bit about what that strategy is like and why are there different strategies for those two different trust funds? Um we actually have PFM on the line, and they are the investment advisors who are really the ones that put together that investment strategy. So I am going to lean on them to answer your question. The fifth year five, you know, along well with Andrew Brown from the path management as well. So the third year question, the pension has a modern strategic strategy that I find allocation of 15% equity or 50% fixed income and OPEP trust as a modern strategy of 30% equity and seven percent fixed income. And that would explain the differences between the two draft documents. Just make sure that I'm understanding. So it's regarding the risk tolerance as a is that why and what's the basis for the risk tolerance being higher or lower versus trap the pension versus the LPEP? Right. Right. And so why? So I guess my question is then what is the risk tolerance between both of them? What's the what's the difference? Like why is there a difference?
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