For City Council Meeting January 27, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Scott Williams, Director of Finance
Title
Request City Council to Adopt Resolution No. 8454 Amending the City's Investment Policy.
Body
RECOMMENDATION
Staff recommends that the City Council adopt a Resolution of the City Council amending the City's Investment Policy.
BACKGROUND
Annually, staff review the City's Investment Policy and make changes to ensure conformity with the California Government Code. On January 9, 2024, the City Council adopted the Investment Policy for calendar year 2024. In accordance with prior City Council direction given to the City Manager, the Investment Policy for calendar year 2026 is submitted for approval with no significant changes.
ANALYSIS/DISCUSSION
The Investment Policy establishes the framework and guidelines for managing the City's investment portfolio in accordance with California Government Code Sections 53600 et seq. This policy serves as the governing document for all investment activities conducted ensure that public funds are invested with the primary objectives of safety, liquidity, and yield; in that order of priority. The policy outlines authorized investment types, concentration limits, maturity restrictions, and oversight mechanisms to protect the City's assets while maximizing returns within acceptable risk parameters.
By adopting this policy, the City Council establishes clear investment standards, delegates authority to the external investment manager, and maintains appropriate oversight through monthly reporting and annual review requirements.
An annual Investment Policy, included as Attachment 1, must be submitted to the City Council for approval by law. The attached calendar year 2026 Investment Policy describes:
* The investment process
* Scope
* Objectives
* Authority
* Suitable Investments
* Ethics
* Broker-Dealer Authorization
* Legal requirements
* Internal controls a...
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