December 16, 2025
TO: City Council
REQUESTED BY: Tom Prill, Deputy City Manager
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Statement of Investment Policy
RECOMMENDATION:
Staff recommends Council approve the revised Statement of Investment Policy and adopt Resolution No. 4113.
BACKGROUND:
Section 53646 of the Government Code of the State of California requires the City to review its Statement of Investment Policy annually and make revisions if necessary. The City Council last reviewed and approved the policy on December 16, 2025, with no changes at that time.
The Statement of Investment Policy is legally required and provides authority to invest in allowable securities and within specified durations as detailed within the guidelines of the adopted policy. The policy cannot be more liberal than that allowed by California Government Code §53600 et. seq.; however, it can be more restrictive.
DISCUSSION:
The primary objectives of the Statement of Investment policy are to ensure the following:
Legality: Sections 53601 and 53635 of the Government Code outlines what investments are allowable for California agencies.
Safety: It is the primary duty and responsibility of the Treasurer to protect, preserve and maintain cash and investments on behalf of the citizens of the City of San Jacinto. Generally, the higher the yield, the greater the risk an investment carries.
Maturity: The longer an investment is held, the greater the degree of market risk (the risk that changes in the financial market will reduce the value of a security).
Investment in instruments with varying maturities provides a natural hedge against changes in interest rates.
Liquidity: To meet disbursement requirements, an adequate portion of the investment portfolio should be liquid and easily converted to cash, such as in an investment pool or money market.
Risk: The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account risk constraints. Yields should become a consideration only after the basic requirements of legality, safety, maturity, and liquidity have been met.
FISCAL IMPACT:
There are no recommended changes that would result in a fiscal impact.
ATTACHMENTS:
Resolution No. 4113
Investment Policy
ATTACHMENTS:
Resolution No. 4113 - Statement of Investment Policy