The Investment Policy is designed to provide guidelines for the prudent investment of the City’s idle funds and reporting of same.  Annual review of the policy is conducted by the Investment Advisory Committee.

The City Treasurer has a fiduciary responsibility to maximize the productive use of assets entrusted to her care and to invest and manage those funds with reasonable care, skill, and caution. Therefore, the City must operate its idle cash investment pool under the “prudent investor standard” (Probate Code, section 16047). The California Law identifies permitted investments available to the City.  This affords the City a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California (Government Code sections 53600, et seq.).

Consideration will be given to investments that promote community economic development (i.e., dealing with local financial institutions, etc.) provided that the investment selection criteria is met, the investment is allowable under the California Law, and yield is not significantly impacted.