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Page 1 of 2 <br />Item #4 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />June 18, 2024 <br />Finance <br /> <br />TITLE: ADOPT A RESOLUTION APPROVING FISCAL YEAR 2024/25 INVESTMENT <br />POLICY AND GUIDELINES <br /> <br />SUMMARY <br />Pursuant to California Government Code Sections 53601 and 53635, the City’s Investment <br />Policy and Guidelines must be submitted to the City Council annually for adoption. Various <br />sections of the Investment Policy and Guidelines were updated last fiscal year to make the <br />policy more comprehensive and to reflect the requirements in the California Government Code. <br />Last year's updates included proper interpretation of the latest changes to Government Code <br />Section 53601 for FY 2024/25 relating to passthrough securities. This report satisfies the legal <br />requirement that the City Council adopt an annual investment policy. <br /> <br />RECOMMENDATION <br />Adopt the attached resolution approving the Fiscal Year 2024/25 Investment Policy and <br />Guidelines. <br /> <br />BACKGROUND <br />California Government Code Section 53646 provides for the City Council to adopt an annual <br />investment policy. The proposed investment policy for FY 2024/25 and the adopting resolution <br />are attached. <br /> <br />DISCUSSION <br />In addition to being legally required, an investment policy is important because it provides the <br />necessary framework for a prudent investment program and helps fulfill the City's fiduciary <br />responsibilities. Specifically, a formal investment policy is necessary to identify investment <br />objectives, define risk tolerance, assign responsibility, and establish control over the <br />investment process. Safekeeping of cash and investments is one of the most important <br />responsibilities of the City Council, City Manager, and the Director of Finance. A well- <br />developed investment policy serves as a working document that directs the investment <br />activities of the staff and protects the government from potential losses stemming from <br />unsuitable investment practices. <br /> <br />EQUITY AND SUSTAINABILITY <br />Not applicable, as this item is a routine administrative matter of City business. <br /> <br />OUTREACH <br />No outreach was conducted, as this item is a routine administrative matter of City business. <br /> <br />STRATEGIC PLAN ALIGNMENT <br />Insomuch as this item is a routine administrative matter, it is aligned with the ONE Pleasanton <br />Page 31 of 248