The State of California Government code specifies the types of investments that are permissible for public agencies, while a City Council adopted investment policy establishes additional restrictions and other criteria. The primary objectives for management of City cash are:
Safety, in order to ensure preservation of capital
Maintenance of adequate liquidity, in order to meet expenditures
Return on investments
The authority to invest City funds is delegated to the Chief Financial Officer by the City Council on an annual basis. The City has established Council Policy No. 000-26 (PDF), Statement of Investment Policy and Delegating Authority.
The Finance Department is responsible for; the investment of temporary surplus funds, Cash Management and other treasury related activities.
Other Investment related activities include cash-flow projection, oversight of Citywide banking functions, and consulting with other departments regarding financial, banking, and economic issues.