HomeMy WebLinkAboutCC-9 - 26-195 - Approving 2025-2026 Investment Policy - 3/17/2026CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #:26-195 Meeting Date:3/17/2026
TITLE:
RESOLUTION 2026-XX APPROVING THE 2025-2026 STATEMENT OF INVESTMENT POLICY
FOR THE CITY,AND DESIGNATING THE CITY TREASURER TO INVEST AND REINVEST IDLE
MONIES OF THE CITY OF COSTA MESA IN ACCORDANCE WITH THE 2025-2026 STATEMENT
OF INVESTMENT POLICY
DEPARTMENT:FINANCE
PRESENTED BY:MARK KHOU, BUDGET & PURCHASING MANAGER
CONTACT INFORMATION:MARK KHOU, BUDGET & PURCHASING MANAGER (714) 754-
5241
RECOMMENDATION:
Adopt Resolution 2026-XX (Attachment 1)approving the 2025-26 Costa Mesa Investment Policy
(Attachment 2) and delegating the investment activities to the City Treasurer.
BACKGROUND:
Pursuant to California Government Code section 53646(a)(2),the City Treasurer may submit a
“Statement of Investment Policy”to the legislative body and any oversight committee.During each
fiscal year,City staff presents any recommended changes to the Finance and Pension Advisory
Committee (FiPAC)and the City Council.The attached Investment Policy has been developed
according to the specific needs of the City of Costa Mesa and complies with the California
Government Code,guidelines from the California Municipal Treasurer’s Association (CMTA),and the
Association of Public Treasurers of the United States and Canada (APTUS&C),as well as
recommendations by the City’s Finance Officer-Revenue.
FiPAC committee members review the Investment Policy recommended changes prior to the City
Council review.On March 11,2026,staff presented to the Finance and Pension Advisory Committee,
and recommended that changes be made to the FY 2022-2023 Statement of Investment Policy.
FiPAC unanimously approved staff’s recommendation and the proposed revisions.The proposed
Resolution provides the annual update and approves proposed revisions of the policy.
In addition to proposed revisions to allowable investment options,the revised policy adds language to
ensure that the position of City Treasurer is always filled even if the Finance Director position is
vacant.
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File #:26-195 Meeting Date:3/17/2026
ANALYSIS:
The City Treasurer’s single most important statutory duty is set forth in California Government Code
section 41001,which states the “city treasurer shall receive and safely keep all money the treasurer
receives.”The adopted Investment Policy serves primarily to set parameters for the safe investment
of City funds. It also designates who serves as the City Treasurer.
Legal Investment Authority:Temporary idle monies are to be invested in accordance with state and
local statutes and in compliance with California Government Code section 53600, et seq.
1 Safety:It is the primary duty and responsibility of the City Treasurer to protect,preserve,and
maintain intact cash and investments placed in trust with the City Treasurer.
2 Liquidity:An adequate percentage of the portfolio should be maintained in liquid short-term
securities, which can be converted to cash if necessary to meet disbursement requirements.
3 Yield:The City Treasurer shall obtain the highest possible yield within the parameters of the
City’s authorized investments, provided the criteria for safety and liquidity have been met.
Investment Policy language was updated to broaden the ability for the City to invest in any permitted
Local Government Investment Pool (LGIP),which is permitted under California Government Code,
expanding the Policy beyond the currently explicitly named State of California Local Agency
Investment Fund (LAIF).
The City’s current Investment Policy provides that the Finance Director serves as the City Treasurer.
The existing policy contains no provision regarding who would serve as Treasurer if the Finance
Director position were vacant.Principals of good governance require the City to designate who
should serve as City Treasurer in the event the Finance Director position is vacant or the designated
City Treasurer is absent.
The revised Investment Policy is provided at Attachment 2.For ease of review,a redline showing
changes from the current policy is provided in Attachment 3.
ALTERNATIVES:
The City Council could approve amendments to the Resolution or the Investment Policy.Both the
Association of Public Treasurers of the United States &Canada and Government Finance Officers
Association recommend investment policy be reviewed annually.
FISCAL REVIEW:
The proposed amendments provide additional investment opportunities to allow maximum yield from
safe and liquid investment options as per the California Government Code and ensure the role of City
Treasurer is always filled. Investment earnings are distributed across all funds.
LEGAL REVIEW:
The City Attorney’s Office prepared this report and the Resolution and reviewed and approved the
revised Investment Policy as to form.
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File #:26-195 Meeting Date:3/17/2026
CITY COUNCIL GOALS AND PRIORITIES:
This item is administrative in nature but supports the City’s core values of fiscal sustainability and
transparency in government.
CONCLUSION:
The City Council is requested to Adopt Resolution 2026-XX approving the 2025-26 Statement of
Investment Policy and delegating investment activities to the City Treasurer.
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