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Report regarding a resolution approving the City’s Investment Policy for Fiscal Year 2025-26 (Frank Risso, City Treasurer and Karen Chang, Director of Finance)
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RECOMMENDATION
Recommendation
It is recommended that the City Council approve the City’s Investment Policy for Fiscal Year 2025-26.
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BACKGROUND/DISCUSSION
The City of South San Francisco’s Investment Policy was created to establish guidelines for investment operations, with the objectives of complying with all laws and ensuring the safety, liquidity, and yield of the City’s investments.
Each fiscal year, the City’s Investment Policy is presented to the City Council for consideration. The proposed Fiscal Year (FY) 2025-26 Investment Policy is included as Exhibit A and reflects some minor changes (highlighted in red) from the prior year’s policy as follows:
• Add: Augmentation of Investment Policy section to reflect additional restrictions beyond Code requirements, and applicability of concentration limits and credit quality requirements occur at time of purchase.
• Add: Federal Agency obligation concentration limits are increased to 30% per issuer and maximum percent of agency callable securities will not be 20%.
• Add: Municipal securities as allowed by California Government Code 53601(a)(c)(d)(e), along with additional restrictions as to concentration limits and minimum credit quality.
• Add: Local government investment pools as authorized by California Government Code 53601(p)
Staff will continue to work with the City’s investment advisors, Chandler Asset Management, on a regular basis to review the City’s Investment Policy to ensure compliance with best practices and alignment with state code.
FISCAL IMPACT
There is no direct fiscal impact by the adoption of this resolution. However, a sound Investment Policy, as set forth herein, assists in preserving the financial stability of the City.
RELATIONSHIP TO STRATEGIC PLAN
This resolution supports the City’s strategic goal of Financial Stability.
CONCLUSION
Approval of the FY 2025-26 Investment Policy ensures that the management of the City’s investment portfolio is guided by best practices and in compliance with state code.