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 and reporting
There are no significant changes in the proposed language or text from the 2024 Investment Policy. The Investment Policy for Calendar Year 2026 will be effective from January 1, 2026, to December 31, 2026.
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA). A “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b)(5), a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
The request is consistent with Guiding Principle 3A of the Rialto General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney's Office has reviewed the staff report and resolution and approved the resolution as to form.
FINANCIAL IMPACTS
Operating Budget Impact
There is no impact on the Operating Budget.
Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget.
Licensing
This action does not require a business license.
ATTACHMENTS
1. 2026 Investment Policy
2. Resolution approving the 2026 Policy