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6 CITY OF SAN MATEO
RESOLUTION NO. ________ (2025)
ADOPTING THE INVESTMENT POLICY FOR THE CITY OF SAN MATEO
AND AUTHORIZING INVESTMENTS IN UNITED STATES TREASURY OBLIGATIONS,
UNITED STATES FEDERAL AGENCY OBLIGATIONS, AND STATE AND LOCAL MUNICIPAL
OBLICAITONS WITH A MAXIMUM MATURITY UP TO SEVEN YEARS AND AN AGGREGATE AMOUNT NOT TO EXCEED TEN PERCENT OF THE CITY’S INVESTMENT PORTFOLIO AT THE
TIME OF PURCHASE
WHEREAS, investment policies guide staff and their advisors for all investment activities on behalf of cities; and
WHEREAS, those investment activities are primarily governed by the individual city’s adopted investment policies and by California state law (Government Code sections 53600-53610); and WHEREAS, the Investment Policy for the City of San Mateo is consistent with state law and, for the purpose of added safety and liquidity, is more restrictive than state law; and WHEREAS, Government Code section 53646 requires annual review and approval of a city’s investment policy only if there are changes, however it encourages cities to conduct an annual review and approval process even if there are no proposed changes; and WHEREAS, recognizing the importance of the City’s Investment Policy, it is the City’s practice to bring the investment policy to the City Council annually for review and approval regardless of whether there are proposed changes; and
WHEREAS, Government Code Section 53601 limits investments with maturities beyond five years unless express authority is granted by the governing body either for a specific investment or as part of an investment program; and
WHEREAS, based on the current market environment and long-term reserve structure of City funds, staff recommends extending the maximum maturity from five years to seven years for specific high-quality fixed-income securities, in order to better align with the City’s long-term reserve structure and investment strategy; and
WHEREAS, the proposed amendments to the Investment Policy authorize such longer-term investments only in the following three categories: United States Treasury obligations, United States Federal Agency obligations, and State and Local Municipal obligations; and WHEREAS, the proposed amendment also establishes that the aggregate amount of investments beyond five years shall not exceed ten percent (10%) of the total City investment portfolio at the time of purchase.
NOW, THEREFORE, THE SAN MATEO CITY COUNCIL HEREBY RESOLVES that:
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6 1. In accordance with California Quality Act Guidelines section 15378(b)(5), this activity is not a project subject to CEQA in that it can be seen with certainty that it won’t have a significant impact on the environment.
2. The City of San Mateo 2025 Investment Policy, including the proposed amendments to extend the maximum maturity for certain securities from five (5) years to seven (7) years, with a ten percent (10%) cap, is hereby approved and adopted.
3. Pursuant to Government Code Section 53601, the City Council grants express authority for the City to invest in United States Treasury obligations, United States Federal Agency obligations, and State and Local Municipal obligations with maturities not to exceed seven (7) years, provided that the aggregate amount of such investments not exceed ten percent (10%) of the City’s investment portfolio at the time of purchase.
4. The authority granted pursuant to this Resolution shall take effect ninety (90) days from the date of this resolution.
5. The City Treasurer, or designee, is authorized to take any and all actions necessary to implement this resolution and to manage the investment program in accordance with the approved Investment Policy and applicable law.