Consent Agenda Item 4i
STAFF REPORT
Consent Agenda Item
DATE: September 21, 2026
TO: Honorable Mayor and City Council
FROM: Aaron Felmlee, Finance Director
SUBJECT: Approve the Investment Policy for Fiscal Year 2026-27; Adopt Resolution 2026-31
STAFF RECOMMENDATION:
Approve the Investment Policy for Fiscal Year 2026-27; Adopt Resolution 2026-31 EXECUTIVE SUMMARY:
The purpose of the Investment Policy is to establish cash management and investment guidelines for the City Treasurer, who is responsible for the administration of the City of Fortuna Investment Program. It is the policy of the City of Fortuna to meet the short and long-term cash flow demands of the City in a manner which will provide for the safety of principal and sufficient liquidity, while providing an investment return.
The City last revised the investment policy on September 15, 2025. As such, it is time for the annual review by the City Council of the Investment Policy. Staff is not recommending any changes to the investment policy for fiscal year 2026-27.
The June 30, 2026, investment report for Council review is attached. Please note that the total funds listed in the investment report are pooled funds comprised of the many general funds, restricted funds, and enterprise funds held by the City and therefore a majority of the funds are restricted to specific projects and purposes.
STRATEGIC PLAN 2026-2036:
This action supports the following area(s) of your City Council’s Strategic Plan 2026-2036.
CORE VALUES:
Quality of Life: Family, Nature & Neighbors Safety, family life, care for youth, cleanliness, parks, forests, and river. Fortuna’s #1 value across every instrument and generation in this process.
Economic Resilience The status quo is not sustainable. Generating City revenue is essential to keeping City services and investing in what Fortuna residents want.
Clear Direction Consistent decisions based on shared principles that outlast any one leader. Every Council member interviewed named this as essential.
PRIORITIES:
Priority 1: Clarity, Culture & Capacity for Organizational Health Priority 2: Our People — Staff Retention, Pay & Succession Priority 3: Fiscal Foundation — Revenue, Cost Accounting & Honest Commitments Priority 4: Economic Development to Build Fortuna's Future Consent Agenda Item 4i
FISCAL IMPACT:
None.
RECOMMENDED COUNCIL ACTION:
Motion to adopt Resolution 2026-31. Consent Agenda vote.
ATTACHMENTS:
• Resolution 2026-31, A Resolution of the City Council of the City of Fortuna Approving the Investment Policy for Fiscal Year 2026-27.
• City of Fortuna Investment Policy
• June 30, 2026 Treasurer’s Report
Consent Agenda Item 4i
RESOLUTION 2026-31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORTUNA APPROVING THE INVESTMENT POLICY FOR FISCAL YEAR 2026-27 WHEREAS, sound investment practices are facilitated by the preparation of written governing policy statements, and;
WHEREAS, such policies should cover all substantive aspects of the investment of funds, and; WHEREAS, the City Treasurer has prepared a comprehensive Investment Policy document pursuant to which the City will manage and conduct investment of the City’s pooled funds, and; WHEREAS, in furtherance of the prudent management of the City’s treasury pools, the Investment Policy is in compliance with State law provisions establishing investment objectives and setting forth permissible investment of public funds not required for immediate expenditure, and;
WHEREAS, the Fortuna Municipal Code designates the City Finance Director as the City Treasurer, and;
WHEREAS, the delegation of investment authority and responsibility from the City Council to the City Treasurer will allow the City Treasurer and his staff to continue the prudent investment of the City’s pooled funds and the effective and efficient support of the City’s efforts to meet its cash flow needs.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fortuna that the Council hereby
Section 1. Approves and adopts the Investment Policy submitted by the City Treasurer, attached hereto as Exhibit A.
Section 2. The City Council, pursuant to Government Code section 53607, delegates to the City Treasurer for a period of twelve (12) months the authority to invest the City’s pooled funds in accordance with the Investment Policy.
Section 3. Exhibit A is part of this resolution.
PASSED AND ADOPTED on this 21st day of September 2026 by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Mike Johnson, Mayor
ATTEST:
Siana L. Emmons, City Clerk