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