Annual Update:
Investment Policy
City Treasurer
October 6, 2026
2026 Review Focused On
1 • Updates to allow the Investment Policy to define
Permitted Investments to manage proceeds of the
Measure FP Bond Issue
• Incorporating updates to the California Government
Code
• Modernizing language to better align with the California Government Code
2 Updates for Managing
Measure FP Bond Proceeds
• Added Section 14.Q Investment of Bond Proceeds
• Permitted investments for bond proceeds are not defined by California Government Code, but rather bond documents
• Relieved percentage limits on cash management tools (LAIF, CAMP, and money market fund) only for the investment of bond proceeds
• Exempted Reserve Funds from the Policy’s maximum maturity limit
• Added permission for the use of investment contracts
3 Updates to Authorized Investments
• Incorporated additional criteria from Code:
• Ability to invest beyond 5 years with Council Approval • Application of percentage limits and credit minimums at time of purchase • Update language regarding handling of subsequent changes of allocation percentages or credit rating that have fallen below the minimum subsequent to purchase
• Applied 5% issuer maximum across credit sectors
• Updated rating agency reference to nationally recognized statistical rating organization (NRSRO)
• Added Asset-Backed Securities (ABS) as a new permitted sector 4 Recommendation
• Approve the City’s Statement of Investment Policy
2026, as amended, and annual renewal of the
delegation of investment authority to the City
Treasurer