8/20/2026
1 RiversideCA.gov1
RiversideCA.gov
INVESTMENT POLICY REVIEW AND UPDATECity CouncilSeptember 1, 2026Finance Department RiversideCA.gov2
•The City’s Investment Policy establishes the framework governing how City Funds are invested.•The Investment Policy ensures compliance with federal, state, and local laws governing prudent investment practices.•Investment Authority is delegated by City Council to the City Treasurer/Chief Financial Officer through a formal resolution.LEGISLATIVE HISTORY & BACKGROUND1 2 8/20/2026
2 RiversideCA.gov3
•Current Policy was adopted April 20, 2020 by Resolution 23566. •The Investment Policy is reviewed annually by staff and the City’s Investment Advisor; City Council re-adoption is only required when material changes are recommended.LEGISLATIVE HISTORY & BACKGROUND RiversideCA.gov4
•The City’s Investment Policy continues to emphasize safety, liquidity, and yield—in that order of priority.•The policy reinforces prudent risk management, diversification, transparency, and strong internal oversight.INVESTMENT PROGRAM GOALS3 4 8/20/2026
3 RiversideCA.gov5
Changes were made to align with government code and update terminology.These updates ensure the City’s investment framework remains aligned with statutory requirements and evolving public treasury best practices.BACKGROUND AS TO THE CHANGES RiversideCA.gov6
SUMMARY OF CHANGES•Commercial Paper Changes:–State law now allows commercial paper investments to mature in up to397 days, instead of the previous 270-day limit. The City’s InvestmentPolicy has been updated to reflect this change.–State legislation has extended the ability for larger local agencies toinvest up to 40% of their portfolio in commercial paper through January1, 2031, for agencies with $100 million or more. The City’s policy hasbeen updated to reflect this extension.5 6 8/20/2026
4 RiversideCA.gov7
SUMMARY OF CHANGES•The policy also updates the terminology for the City’s AnnualComprehensive Financial Report (ACFR) to reflect currentaccounting standards.•Maximum Maturity is now calculated from settlement date onall permitted investments.•Prohibited Investments updated to align with changes ingovernment code regarding investments in securities thatcould result in zero interest accrual.
RiversideCA.gov8
That the City Council:1. Adopt the City’s updated Investment Policy and accompanying Resolution.RECOMMENDATION7 8