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6.A. - Page 1 of 40 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />A,&/ <br />DATE: February 22, 2021 <br />SUBJECT <br />Annual Investment Policy review <br />RECOMMENDATION <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />By motion, approve and adopt the City's updated investment policy. <br />STRATEGIC PLAN GUIDING PRINCIPLE <br />Excellence in Government Operations <br />BACKGROUND <br />From the City Manager <br />The City has an investment portfolio of approximately $250 million, which consists of reserves and fund <br />balances held by the City for general operations, capital projects, utilities, and various other special <br />purpose funds. The return on the investments in the form of interest income is a significant component <br />of City revenues, and it varies annually depending on the interest rates in the market. <br />Investments are governed by State law (referenced as "Code" in this report) and the City's investment <br />policy (Policy) in order to achieve the City's investment objectives of safety, liquidity, and return. The <br />original Policy was adopted in the early 1990s. In June 2016, the City Council adopted a new Policy to <br />address the City's investment objectives in light of the growth of the City's investment portfolio and <br />changing market conditions, and to incorporate best practices as informed by the California Municipal <br />Treasurers Association (CMTA). <br />The City Council's primary responsibilities over the investment function include approving the Policy, <br />annually reviewing such policy, reviewing investment reports issued by the City Treasurer, authorizing <br />Page 1 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />