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Annual Review of the City’s Statement of Investment Policy
memo
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
Prepared By: Jay Baksa, Finance Director
EXECUTIVE SUMMARY:
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The City Council will consider a resolution completing the annual review of the Statement of Investment Policy. The Policy has been updated to reflect changes to state law, align the Policy with current investment management best practices, and formally recognize the Finance and Investment Committee’s role in reviewing the City’s investment reports and Investment Policy prior to consideration by the City Council.
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STAFF RECOMMENDATION:
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recommendation text
Adopt the Resolution Approving the Annual Review of the Statement of Investment Policy and Delegation of Authority to Complete Investment Transactions.
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FINANCIAL IMPACT:
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DESCRIPTION:
Background
An investment policy establishes the framework for how the City invests public funds until those funds are needed for operations or capital projects. It identifies the investments the City may purchase, sets limits intended to manage risk and improve diversification, and establishes requirements for oversight and reporting to the City Council. California Government Code Section 53600.5 establishes the objectives that govern the investment of public funds, in priority order: safety of principal, liquidity sufficient to meet the City’s cash flow needs, and return on investment.
The City’s Investment Policy, originally adopted on August 21, 2007 and last amended on September 16, 2025, implements those objectives locally and gives Staff and the City’s investment advisor clear parameters within which to operate. The Policy requires annual review by the City Council by the second meeting in September (Section XVIII). Although annual review of the City’s Policy is not required by state law, it is recommended by the California De...
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