City Council

5.\nADOPTION OF THE 2026 INVESTMENT POLICY The City’s Investment\nPolicy is reviewed on an annual basis for submission and approval by the\nCity Council. On November 25, 2025, the Audit Commission reviewed the\nproposed 2026 Investment Policy, in which staff recommend a minor\nchange to extend the maximum maturity of allowable commercial paper\ninvestments from 270 days to 397 days, as allowed under Senate Bill 595.\nThe Commission found the policy to contain relevant provisions from the\nCalifornia Government Code, and the one proposed change will add\nflexibility to invest idle cash while maintaining safety and liquidity of assets.\nTherefore, the Audit Commission recommends that the City Council adopt\nthe 2026 Investment Policy with the proposed change.\nRecommendation: It is recommended that the City Council adopt the City's\n2026 Investment Policy with one change related to the maximum maturity\nof allowable commercial paper investments. Adoption of the Investment\nPolicy also delegates to the City Treasurer for a period of one year the\nauthority to invest the funds of the City in accordance with the Investment\nPolicy.Fiscal Impact: Consistent with State Law, the City's primary\ninvestment objective is to invest in a manner aimed to safeguard principal\nand maintain liquidity where the secondary objective is to achieve a market\nrate of return. The 2026 Investment Policy continues to provide for safety\nand liquidity of public funds while earning a reasonable rate of return.\nAGENDA REPORT