CITY OF MENIFEE
SUBJECT: Fiscal Year 2025/2026 Annual Investment Policy MEETING DATE: May 13, 2025
TO: Finance Committee
PREPARED BY: Ann-Marie Etienne, Finance Manager
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Review and provide feedback on the proposed Fiscal Year 2025/2026 Investment Policy and recommend submittal to the City Council for approval at a future City Council meeting.
DISCUSSION
In accordance with the Investment Policy, this policy shall be reviewed and adopted at least once a year within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. The investment policy was last endorsed and adopted by the Menifee City Council and became effective on May 5, 2021 (Policy Number CC-11) with the most recent annual update on June 5, 2024.
The purpose of the investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Menifee’s objectives of safety, liquidity and return on investment through a diversified investment portfolio. This policy also serves to organize and formalize the City of Menifee’s investment-related activities, while complying with all applicable statutes governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).
On July 5, 2022, the CMTA Investment Policy Certification was granted to the City of Menifee.
This Investment Policy Certification recognizes that CMTA has validated that the City of Menifee’s Investment Policy adheres with the State of California Government Code and meets specific requirements deemed to be best practices for municipal agency investment policies.
City of Menifee Staff Report
Fiscal Year 2025/2026 Annual Investment Policy Adoption May 13, 2025
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Per CMTA recommendation, the City will be eligible to re-certify the Investment Policy in July 2025 or whenever a major update occurs.
Any recommended modifications or amendments shall be presented by staff to the governing body for their consideration and adoption. The proposed Fiscal Year 2025/2026 Investment Policy revisions consist of:
•Updated Placement Service Deposits alignment with AB 2618; this includes modernizing the language around Placement Service Deposits to reflect the latest market practices •Updated glossary to align to latest language
•Updated scope to align to CMTA best practice to exclude pensions.
Although minor changes have occurred with the state government code, we are recommending that we leave the City of Menifee’s Policy maximums unchanged.
The overall goal of this policy is to ensure that the City’s investments are managed with the degree of professionalism worthy of the public trust, with preservation and protection of the City’s assets being the guiding philosophy.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Revised Investment Policy FY 2025/2026