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6.A. -Page 5 of 40 CITY OF REDWOOD CITY INVESTMENT POLICY PURPOSE: The purpose of this policy is to provide guidelines for investment of the City's funds. I. Policy The City shall invest public funds in such a manner as to comply with all federal, state, and local statues governing the investment of public funds; ensure prudent money management; provide for daily cash flow requirements; and meet the objectives of the Policy, in priority order of safety, liquidity, and return on investment. II. Scope A. Investments for all the funds in the custody of the City, including funds belonging to other agencies and entities, such as the Port and Successor Agency to the former Redevelopment Agency, for which the City acts as fiscal agent will be made on a pooled basis. These funds are normally accounted for in the City's Comprehensive Annual Financial Report (CAFR), which includes the annual independent audit report, under the following categories: 1. General Fund 2. Special Revenue Funds 3. Capital Project Funds 4. Debt Service Funds 5. Enterprise Funds 6. Internal Service Funds 7. Agency Funds B. The City Council may, on the recommendation of the City Manager and the City Treasurer, expressly authorize exceptions to this policy. C. If, at the time this policy is adopted, the portfolio holds investments which were made in the past and in accordance with previous policies and existing f e d e ra I a n d State laws but do not meet the provisions of this policy, such past investments are grandfathered as permissible investments. The City may choose to hold such investments until maturity; however, their maturity cannot be extended without the express authorization of the City Council. D. Funds excluded from this policy: 1. Bond Proceeds —Proceeds of debt issuance shall be invested in accordance with the City's general investment philosophy asset forth in this policy. The overriding policy for the investment of bond proceeds will be dictated by the bond documents governing such funds as long as the documents are approved by the City Council or related governing board. 2. Deferred Compensation, Retirement, Section 115 Trust, and Other Post Employment Benefit Plans — Investments related to these plans are not subject to this policy since third -party administrators or trustees manage the funds and either the individual plan participants or outside investment managers or trustees direct investment selections under the guidelines established by City Council. DRAFT on 1/13/20 Approved by Council 1/14/2019 1 11