City Council

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