5. ADOPTION OF THE 2026 INVESTMENT POLICY The City's Investment Policy is reviewed on an annual basis for submission and approval by the City Council. On November 25, 2025, the Audit Commission reviewed the proposed 2026 Investment Policy, in which staff recommend a minor change to extend the maximum maturity of allowable commercial paper investments from 270 days to 397 days, as allowed under Senate Bill 595. The Commission found the policy to contain relevant provisions from the California Government Code, and the one proposed change will add flexibility to invest idle cash while maintaining safety and liquidity of assets. Therefore, the Audit Commission recommends that the City Council adopt the 2026 Investment Policy with the proposed change.