Section 53601 of the Government Code () of the State of California specifies allowable investments for public agencies.

Investment Policy:  It is the policy of the City to invest public funds in a manner that will provide maximum security, adequate liquidity and sufficient yield, while meeting the daily cash flow demands of the City and conforming to all statutes and regulations governing the investment of public funds.

Investment Portfolio:  Pursuant to the Statement of Investment Policy, the Treasurer shall submit investment reports to the City Council that provide a clear picture of the status of the current investment portfolio and shall contain sufficient information to permit an independent organization to evaluate the performance of the investment program.