TO: LINDA REICH, CITY MANAGER
FROM: NADYNE LOWRY, ACTING DIRECTOR OF FINANCE
SUBJECT
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Annual Adoption of City of Chino and Successor Agency Investment Policy.
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RECOMMENDATION
Adopt City Resolution No. 2025-009 and Successor Agency Resolution No. 2025-001 containing the City of Chino and Successor Agency Statement of Investment Policy and delegating authority to the City Treasurer.
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FISCAL IMPACT
An active Investment Policy is required for the City Treasurer to have authority to invest available funds to maximize earnings within the constraints of the law.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
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BACKGROUND
The City will invest cash balances in conformance with the California Government Code and the three main investment objectives are safety, liquidity and yield. The City will adhere to the prudent investor standard and best practices in Treasury Management. California Government Code Section 53600 et seq. authorizes the investment of public funds and establishes permitted investment parameters for local governments. Chino’s annual Statement of Investment Policy (attached) defines the suitable and authorized investments specifically for Chino, which may be more restrictive than the State Code, but can never be less restrictive than the State Code. Additionally, the Investment Policy serves as a guide for setting and achieving Chino’s particular investment objectives and defines the overall guidelines for management of the portfolio.
ISSUES/ANALYSIS
The policy is reviewed each year for compliance with any changes in State Code. The changes to the policy stem from legislative updates and review notes from the California Municipal Treasurers Investment Policy Certification Program. Section 8 of the policy has been updated to reflect the table (Figure 1) approved by State legislation through the California Debt and Investment Commission's (CDIAC) Local Agency Investment Guidelines (LAIG). Figure 1 includes all the authorized investments, while the City retains all the discretionary authority on which investments to consider.
The updated Investment Policy was presented to the Investment Advisory Committee on February 11, 2025 and was recommended for approval by the Committee. The Investment Policy is then presented to the City Council for adoption. City Council last acted on the Investment Policy on February 20, 2024. State Law requires an active policy for the entire fiscal year. Staff is recommending adoption of the resolutions adopting the City of Chino Statement of Investment Policy.
Attachments: City Resolution No. 2025-009
Successor Agency Resolution No. 2025-001
Statement of Investment Policy