CITY OF SAN MATEO
6 2
7 9
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 9 Section Name: CONSENT CALENDAR Account Number: 10-2021 File ID: 26-11017 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: April 06, 2026
SUBJECT:
2026 Annual Investment Policy — Approval
RECOMMENDATION:
Adopt a Resolution to approve the City of San Mateo 2026 Investment Policy.
BACKGROUND:
The investment of funds by a California local agency, including the types of securities in which an agency may invest, is governed by the California Government Code (Sections 53000-53610). Formal investment policies by local agencies are not required by law, but they are considered a best practice to provide guidelines for investing City funds in accordance with the Government Code.
The City’s Investment Policy provides a framework for managing public funds with a focus on safety, liquidity and return, and is designed to comply with the State law and best practices in public fund management. The Investment Policy may be more restrictive than the Government Code; however, it may not be more permissive.
City staff reviews the Investment Policy periodically to reflect changes in investment strategies and regulatory updates.
The City’s practice is to bring the investment policy to the City Council annually for review and approval, regardless of whether changes are proposed.
The proposed City of San Mateo 2026 Investment Policy includes a few updates. First, it adds a legislative update from California Government Code (Section 53601) regarding the extension of commercial paper maturities and limitations.
Second, it modernizes the language around Joint Powers Authority (JPA) accounts and allows the City to invest in any JPA account rather than restricting the City to just one type of JPA account as the policy did previously by specifying only California Asset Management Program. Finally, City staff removed the language requiring the approval of the Investment Policy by the Investment Advisory Committee since the policy is now reviewed by our outside investment management consultant prior to its approval by the City Council. In addition, rather than coordinating a review of the investments with the Investment Advisory Committee, City staff will submit a consent agenda item four times a year with the quarterly investment report to the City Council. City staff did review all of the proposed changes to the Investment Policy with a member of the Investment Advisory Committee, and he was supportive of these changes.
BUDGET IMPACT:
Approval of the proposed changes to the City's Investment Policy for 2026 will not have a budgetary impact.
ENVIRONMENTAL DETERMINATION:
CITY OF SAN MATEO
6 2
7 9
Approval of the City’s 2026 Investment Policy update is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – 2026 Investment Policy Track Changes
Att 3 – 2026 Investment Policy
STAFF CONTACT
Karley Toffey, Senior Management Analyst
[email protected]
(650) 522-7106