CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 CONSENT CALENDAR
SUBJECT: ADOPT THE CITY’S FISCAL YEAR 2026-27 INVESTMENT POLICY
GOVERNING THE INVESTMENT OF CITY FUNDS
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:
Government Code Section 53646(1)(2) provides for the City Council’s annual consideration of the City’s Investment Policy at a public meeting. Additionally, the City Council may elect to delegate its authority to invest and reinvest City funds to the City Treasurer for up to one year pursuant to California Code section 53607. The proposed Investment Policy and delegation of authority will be effective upon adoption by the City Council.
RECOMMENDATION:
1)Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING AN INVESTMENT POLICY
GOVERNING THE INVESTMENT OF CITY FUNDS AND SUPERSEDING
RESOLUTION NO. 25200”.
2) Delegate the City Council’s authority to invest and reinvest public funds, and to sell or exchange securities so purchased to the City Treasurer for one year or until earlier revoked by the City Council.
BACKGROUND:
The City of Palm Springs has had an investment policy since 1985. The Treasurer and Finance Department Staff ensure that all investments are consistent with the Investment Policy and provide oversight with appropriate checks and balances over the investment process. The Policy requires annual adoption by City Council.
On January 28, 2021, the City Council approved the appointment of Chandler Asset Management (CAM) to provide investment advisory services to the City. Although Chandler Asset Management works with Staff to actively manage the portion of the City’s
City Council Staff Report
May 27, 2026 -- Page 2
Fiscal Year 2026-27 Investment Policy
cash portfolio not needed to meet near-term obligations, fiduciary responsibility for investments remains with the City.
STAFF ANALYSIS:
The City of Palm Springs’ investment advisor, Chandler Asset Management, and the Finance Sub-Committee recently reviewed the City’s investment policy. The team from Chandler Asset Management recommended changes that incorporated industry best practices and updates to align with California State Code. Those changes are listed in the attached investment policy document, with comments (Attachment A). A memo summarizing the changes is included as Attachment B.
The unchanged language in the policy is consistent with updated State statues and enables the portfolio to transition from passive management (hold all securities until maturity) to active management (responsive to changing market conditions). The Investment Portfolio will continue to be managed with the policy prioritization of Safety first, Liquidity second, and Return on Investment third.
Additionally, attached for the City Council’s consideration is the current Management Directive (Attachment C) and the Staff Report of October 2021 which reviews the City’s directive to Chandler Asset Management on Socially Responsible Investing (SRI) and Environmental, Social, and Governance (ESG) strategies (Attachment D).
The Finance Sub-Committee reviewed the Investment Policy and the recommended changes with Chandler Asset Management at the quarterly meeting on April 29, 2026.
The Finance Sub-Committee agrees with the changes. In addition to the Investment Policy changes, the Finance Sub-Committee also recommended making a change to the issuer’s list in Attachment E. The issuers list is comprised of large corporations the City can invest in the company’s corporate bond issuances. The list meets the City’s ESG strategy of not investing in companies that support firearm sales and/or manufacturing and companies that support the manufacturing of Alcohol and Tobacco. The Finance Sub-Committee is recommending moving forward with a sector approved list in Attachment E.
Pursuant to the delegation of authority authorized by Government Code section 53607, the City Treasurer is required to make a monthly report of investment transactions to the City Council. Each quarterly Cash and Investments Report (“Treasurer’s Report”) describes the portfolio’s composition and recent performance and reports each of the quarter’s monthly investment transactions. Within each Treasurer’s Report, the Treasurer certifies that all investments were made in compliance with the Investment Policy and that there are adequate funds to pay City obligations for at least six months.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Foundation of Financial and Organizational Well-Being.
City Council Staff Report
May 27, 2026 -- Page 3
Fiscal Year 2026-27 Investment Policy
FISCAL IMPACT:
None.
REVIEWED BY:
Department Director: Kristopher J. Mooney
City Manager: Scott Stiles
ATTACHMENTS:
A. City of Palm Springs Investment Policy (Redlined showing updates) B. Memo from Chandler Asset Management
C. City of Palm Springs Management Directive
D. October 2021 Staff Report with SRI/ESG Strategies
E. City of Palm Springs Issuer List
F. City of Palm Springs Investment Policy, Final
G. Resolution