CITY OF MENIFEE
SUBJECT: Annual Investment Policy No. CC-11 Amendment
MEETING DATE: May 12, 2026
TO: Finance Committee
PREPARED BY: Melissa Cortes, Principal Accountant
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Review and provide comment on the draft Fiscal Year 2026/2027 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 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).
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 18, 2025.
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
City of Menifee Staff Report
Annual Investment Policy
May 12, 2026
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specific requirements deemed to be best practices for municipal agency investment policies.
Any recommended modifications or amendments shall be presented by staff to the governing body for their consideration and adoption. The draft Fiscal Year 2026/2027 Investment Policy revisions consist of:
•Updated Commercial Paper sections to align with Senate Bill 595; this includes revision of maximum maturity periods from 270 to 397 days, and;
•Revised Permitted Investment and Notes appendix tables to include latest market standards from California Debt and Investment Advisory Commission as of January 1, 2026, and;
•Updated Repurchase Agreements section to incorporate current best practice language.
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 2026/2027 (Redline)
2. Revised Investment Policy FY 2026/2027 (Clean)