AGENDA REPORT
DATE: January 12, 2026
TO: City Commission
FROM: Bill McDaniel, City Manager
SUBJECT: Adopt the Investment Policy dated January 12, 2026
EXECUTIVE SUMMARY:
On April 26, 2021, the City Commission adopted an Investment Policy per Resolution 79-2021. As part of the review process with the investment managers, staff recommends the following updates and improvements as reflected in the attached policy:
• Added Section V. Investment Decisions, which requires that investment decisions be based on factors that are objective, prudent, and consistent with the investment policy. Sections 112.662 and 218.415(24), Florida Statutes prohibits the use of environmental, social, and governance (ESG) factors when making investment decisions.
• Revise language in Section VI.A.6. Authorized Investments: Corporations to require a corporation be organized and operating in the United States which would reduce risk and eliminate investments in foreign entities.
• Delete reference to all Negotiable CDs in Section VI.A.10, VI.B.10, VI.C.10, and VI.D.10 as prohibited by Section 280.03(2), Florida Statutes.
• Revised Section VI.B.16. Asset Backed Securities to require an AA rating.
• Remove Section VI.E. Investment Pools questionnaire from the policy section.
• Revise allocations to provide better diversification and potentially increase returns.
RECOMMENDATION:
That the City Commission adopt the attached Investment Policy dated January 12, 2026.
FISCAL IMPACT:
This policy provides guidance to the Director of Finance regarding investing surplus funds in safe investments that yield higher returns. The diversity in the policy will allow the City to continue to invest prudently and earn a market rate of return.
Prepared by: Diane Reichard, Chief Financial Officer