CITY OF MENIFEE
SUBJECT: Annual Investment Policy Update for Fiscal Year 2026/2027 MEETING DATE: June 3, 2026
TO: Mayor and City Council
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. Adopt a resolution approving the annual update to the City of Menifee’s Fiscal Year 2026/2027 Investment Policy.
DISCUSSION
In accordance with the current Investment Policy CC-11(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 policy was initially adopted in 2008 and has had subsequent updates since then with the last annual update approved by the City Council on June 18, 2025.
The Finance Committee reviewed the Fiscal Year 2026/2027 updated draft Policy at its meeting held on May 12, 2026, and recommended approval by the City Council. 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
City of Menifee Staff Report
Annual Investment Policy Update for Fiscal Year 2026/2027 June 3, 2026
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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. The City will be eligible to re-certify its Investment Policy in Summer 2026.
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
•Revised Permitted Investment and Notes appendix tables to include latest market standards from California Debt and Investment Advisory Commission as of January 1, 2026
•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.
STRATEGIC PLAN OBJECTIVE
Regular City Business
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Resolution
2. Exhibit 1
3. Investment Policy - Redlined