FROM:
Management Services
SUBJECT:
Title
2025-2026 Statement of Investment Policy
End
RECOMMENDATION:
Recommendation
Adopt the City of Fontana Statement of Investment Policy for Fiscal Year 2025-2026.
End
COUNCIL GOALS:
• To create a team by working together to provide stability and consistent policy direction.
DISCUSSION:
The City of Fontana Statement of Investment Policy (Policy) requires an annual review and adoption by the City Council. The Policy was last updated in July 2024. The Policy is being presented at this time to ensure that the requirements of the Policy are consistent throughout the fiscal year. The Policy has been certified by the Association of Public Treasurers of the United States and Canada (APT US&C).
There are some minor changes being proposed to the policy including the following:
• Frequency of reporting will be changed from monthly to quarterly.
• Additional language clarification, as needed:
o Section I - Prudent Person Rule definition update.
o Section II - Internal Control - update language for clarity.
o Section III - Selection of Eligible Financial Institutions - add language to require the investment advisor to provide the City with advance written notice of the engagement or termination of a broker dealer prior to conducting transactions.
o Section III - Safekeeping and Custody - update language for clarification on role of safekeeping agent.
o Section IV - Update language for clarity.
• Minimum quality credit requirement for California/State/Local Agency Bonds updated to A and its equivalent.
• Update benchmark to ICE BofA 1-5 Year US Government and Corporate Index which is more appropriate to the mix of eligible bond types per CA 53601.
The Investment Review Committee will meet quarterly to discuss the status of current investments, strategies for future investments, and other matters deemed relevant. Additionally, upon approval of this item, the Authorized Investment Officers will be as follows:
Authorized Investment Officers:
City Manager
Chief Financial Officer/Deputy City Treasurer
Deputy Finance Officer
Revenue and Operations Manager
Accounting Manager
FISCAL IMPACT:
None.
MOTION:
Approve staff recommendation.