ITEM NO. 7
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CITY COUNCIL STAFF REPORT |
| TO: |
Honorable Mayor and Members of the City Council |
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| FROM: |
Arron Brown, City Manager |
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| BY: |
Terry Shea, Finance Director |
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| DATE: |
06/10/2026 |
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| SUBJECT: | Consideration of a Resolution Adopting the Updated City Investment Policy
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Recommendation:
Adopt Resolution No. 2026-30 approving the updated City Investment Policy.
Background/Analysis:
The City’s Investment Policy provides guidelines for the investment of the City’s funds based upon State law and prudent money management. The goal is to enhance the economic status of the City while ensuring the safety of the funds. Occasionally, changes to the California Government Code regarding allowable investments and other items necessitate updating the City’s Investment Policy.
The City’s current Investment Policy was officially approved by the City Council in February 2010, updated by the City Council on April 4, 2012, and on September 13, 2023.
The Investment Policy is reviewed annually.
Based on Staff’s review of the City’s existing policy and recent changes to state law, staff has proposed the following changes as proposed and highlighted in yellow in the Updated Investment Policy, i.e., Attachment 2.
Section III. B. Authorized Investments
The City’s current Investment Policy was officially approved by the City Council in February 2010, updated by the City Council on April 4, 2012, and on September 13, 2023.
The Investment Policy is reviewed annually.
Based on Staff’s review of the City’s existing policy and recent changes to state law, staff has proposed the following changes as proposed and highlighted in yellow in the Updated Investment Policy, i.e., Attachment 2.
Section III. B. Authorized Investments
- Government Sponsored Enterprises (US Agencies) changed to U.S. Agency Obligations
- Commercial Paper 270 Days / 10% max / 10% per issuer combined changed to 397 Days / 25% max / 10% per issuer combined.
- Medium-Term Notes 5 Years / 15% max / 5% per issuer combined / 10% max by sector changed to 5 Years / 30% max.
- Negotiable Certificates of Deposit 5 Years / 30% max / lesser of 5% or 1 million per issuer changed to 5 Years / 30% max
- Money Market Mutual Funds 10% max / $500 million assets / 5% per issuer changed to 20% max / $500 million assets / 5% per issuer.
- Added Joint Powers Authority Pool No Limit / $500 million assets / 5 years’ experience in investing
The Summary of State of California Statutes Applicable to Municipal Investments was updated as of January 1, 2026, and is attached to the proposed Investment Policy.
- Fiscal Impact Yes/No:
- No