Title
A resolution adopting an Investment Policy and declaring that the City Council completed its review of the investment policies and investment strategies.
Body
Chapter 2256 of the Government Code, known as the Public Funds Investment Act (PIFA), requires the governing body to adopt a written investment policy to include a separate written investment strategy for each fund or group of funds under its control. The governing body must review the policy and strategies not less than annually.
City staff has reviewed the City's Investment Policy with the City's investment advisory firm, Hilltop Securities Asset Management, and recommend the following changes:
* Designates new City treasury staff as investment officers
* Reduces the weighted average maturity of an eligible money market fund from 90 days to 60 days to reflect recent Securities and Exchange Commission rule changes
* Increases investment pool cap from 80 percent to 90 percent of total portfolio
* Adds letters of credit issued by a federal home loan bank as an eligible security for collateral
* Adds Hilltop Securities Asset Management's list of broker/dealers to the list of Approved Broker/Dealers for the City
PFIA also requires the governing body to annually review, revise if necessary, and adopt a list of qualified brokers who are authorized to engage in investment transactions with the City. A review of current brokers was performed by City staff to determine the quality of services provided during the past year. The broker dealer list for fiscal year 2025-26 has been updated and the list of approved broker/dealers is found on page 18 of the attached Investment Policy.
The proposed Investment Policy was reviewed with City Council at the September 2, 2025, City Council meeting, and a resolution adopting the Investment Policy with the list of approved broker/dealers is attached.
Recommended/Desired Action
Staff recommends approval of the resolution.
Attachment(s)
Resolution
Drafter
Ted Chinn...
Click here for full text