AGENDA CAPTION:
Title
Consider approval of Resolution 2025-180R, adopting a revised Investment Policy for Operating and Reserve Funds; and declaring an effective date.
Body
Meeting date: September 16, 2025
Department: Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: Presentation and discussion with the Finance and Audit Committee on August 28, 2025.
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Background Information:
The Public Funds Investment Act (PFIA) requires the Investment Officer present the City’s investment policy to City Council for approval on an annual basis. At the Finance and Audit Committee meeting, staff proposed the following changes:
- Changed the maximum maturity length of commercial paper from 365 days to 270 days.
- Maximum Weighted Average Maturity of Financial Assets that are not reserve funds changed from 18 months to 24 months.
- Diversification of Financial Assets limits added the line “as determined at the time of purchase” regarding the maximum allowable percent of allowable investments.
- Minimum of 3 brokers required for bids on security purchases.
- Performance Standards changed from 6-month and 1-year Treasury Bills to “24-month trailing average yield of the 2-year Constant Maturity Treasury (CMT)”.
- Investment Advisors will perform the screening for the City’s Broker/Dealers.
The changes were presented to the Finance and Audit Committee on August 28,2025. A redlined copy and clean copy of the modified investment policy is attached.
Council Committee, Board/Commission Action:
Presentation and discussion with the Finance and Audit Committee on August 28, 2025.
Alternatives:
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Recommendation:
Staff recommends approval of the Resolution.