AGENDA
SPECIAL MEETING OF THE CITY COUNCIL
FINANCE SUBCOMMITTEE
Agoura Hills City Hall - City Manager's Conference Room 30001 Ladyface Court, Agoura Hills, California 91301
Tuesday, July 7, 2026
4:00 PM
Please silence all cell phones and other electronic devices during the meeting.
NOTE: The Subcommittee and City staff will be participating in this meeting in-person in the City Manager's Conference Room. Members of the public have the opportunity to participate in-person in the conference room.
For public participation on items listed on this Agenda, refer to "Public Comments" below.
PUBLIC PARTICIPATION (PUBLIC COMMENT)
Option A: To provide public comments in-person at the meeting Members of the public have an opportunity to attend the meeting in-person and speak or submit a written comment on any item listed on this Agenda. Public testimony is limited to three (3) minutes per speaker; a speaker’s time may not be transferred to another speaker. Written public comments submitted at the meeting are not read aloud by staff.
To request to speak in-person at the meeting. The Subcommittee will open the floor for public comment and any in-person attendee who raises their hand will have the opportunity to speak. Public testimony is limited to three (3) minutes per speaker; a speaker's time may no be transferred to another speaker.
Option B: To submit written public comments by e-mail (prior to the meeting) Members of the public have an opportunity to submit email correspondence on any item listed on the Agenda by sending an email to: [email protected]. All public correspondence received by 3:00 p.m. on the meeting date will be provided to the Subcommittee prior to the meeting. Public comments are not read into the record. Any public comments received after 3:00 p.m. on the meeting day will not be considered as part of the Subcommittee’s deliberations or entered into the official record, but will be provided to the Subcommittee the next day.
CALL TO ORDER
ROLL CALL
Mayor Jeremy Wolf
Councilmember Penny Sylvester
APPROVAL OF AGENDA
PUBLIC COMMENTS
(This section is reserved for persons wishing to address items not listed on the Agenda that are under the subject matter jurisdiction of the City Council. Please refer to “Public Participation” above for full details on how to speak or submit written public comments under this category.)
DISCUSSION ITEMS
1. Review and Approve a Professional Services Agreement with King Capital Advisors/Cambridge Investment Research Inc. (KCA/CIRI) as a broker-dealer, to assist with Managing the City of Agoura’s funds in accordance with the yearly established and approved Investment Policy Staff respectfully recommends that the Finance Subcommittee Review and Approve a Professional Services Agreement with King Capital Advisors/Cambridge Investment Research Inc. (KCA/CIRI) as a broker-dealer, to assist with Managing the City of Agoura’s funds in accordance with the yearly established and approved Investment Policy.
SUBCOMMITTEE OR STAFF COMMENTS
ADJOURNMENT
Date Posted: July 2, 2026
REPORT TO FINANCE SUBCOMMITTEE
DATE: JULY 7, 2026
TO: HONORABLE MEMBERS OF THE FINANCE SUBCOMMITTEE
FROM: NATHAN HAMBURGER, CITY MANAGER
BY: DIEGO IBANEZ, DIRECTOR OF FINANCE
SUBJECT:
REVIEW AND APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH KING CAPITAL ADVISORS/CAMBRIDGE INVESTMENT RESEARCH INC. (KCA/CIRI) AS A BROKER-DEALER, TO ASSIST WITH MANAGING THE CITY OF AGOURA’S FUNDS IN ACCORDANCE WITH THE YEARLY
ESTABLISHED AND APPROVED INVESTMENT POLICY
Finance Staff is requesting the Finance Subcommittee review and recommend approval of a professional service agreement with King Capital Advisors/Cambridge Investment Research Inc. (KCA/CIRI) to establish an account with KCA/CIRI, a broker-dealer. This account will support the City’s investment activities by providing access to investment options that are in compliance with the California Government Code and the City’s Investment Policy.
Establishing this account will provide an additional custodial and transaction platform to efficiently execute approved investment transactions while maintaining appropriate controls and separation of duties.
The City of Agoura Hills invests public funds in accordance with California Government Code Sections 53600 et seq. and the City’s adopted Investment Policy, with the objectives of safety, liquidity, and yield. Currently, the City of Agoura Hills uses investment services through the Local Agency Investment Fund (LAIF), a specialized, voluntary investment program in California that allows local agencies to pool their funds and participate in the state’s massive investment portfolio. It is managed by the California State Treasurer's Office.
Cambridge Investment Research Inc. is a registered broker-dealer and member of the Financial Industry Regulatory Authority (FIRNA) that provides brokerage services for government accounts. FINRA is a not-for-profit self-regulatory organization that is subject to oversight by Congress and the Securities and Exchange Commission (SEC). It works to protect investors by overseeing the broker-dealer industry and ensuring that brokers are fair and truthful in their operations. FINRA regulates trading in equities, corporate bonds, securities futures, and options. In addition, it monitors over 624,000 brokers nationwide and analyzes billions of market events daily Establishing a government entity brokerage account with KCA/CIRI will allow the City to efficiently purchase and hold eligible securities while maintaining third-party custody and strong internal controls. The proposed account will be structured as a non-advisory account, with all investment decisions remaining under the authority of the City and its authorized personnel. KCA/CIRI will not have discretionary authority over City funds.
Account Structure and Use
The account will primarily be used for the purchase of securities permitted under the City’s Investment Policy and the California Government Code Sections 53600 et seq.
Authorization and Governance
In order to open and maintain the account, CIRI requires account information pertaining to opening the account and identifying the authorized signers for the account. Finance Staff recommends a professional service agreement governing authorized signers’ information. The account will designate the City officials authorized to:
• Open and maintain the investment account
• Execute account documents
• Provide instructions for transactions consistent with City policy These authorizations are consistent with standard municipal investment governance practices and ensure compliance with CIRI regulatory requirements.
Risk Management and Controls
The City will retain full ownership and control of all funds held in the account. CIRI will act as a broker-dealer executing transactions as directed, with Cambridge Investment Research Inc. serving as the brokerage platform.
Funds will remain subject to:
• Third-party custody
• Monthly statements and reporting
• Oversight by the Finance Department
• Review by the City’s independent auditors
This structure preserves appropriate segregation of duties and minimizes operational and financial risk.
FISCAL IMPACT
There is no direct fiscal impact associated with establishing the KCA/CIRI account to the City Council approved FY 2026-27 budget. No advisory fees will be charged by KCA/CIRI, as the account will be non-discretionary and brokerage-only.
Monies to fund the account would be transferred from the City's LAIF account in an amount that the Finance Subcommittee would deem sufficient to begin the relationship;earnings received from this KCA/CIRI account would be received into the City's General Fund.
RECOMMENDATION
Finance Staff respectfully recommends review and recommend approval of a Professional Services Agreement with King Capital Advisors/Cambridge Investment Research Inc. (KCA/CIRI) as a broker-dealer, to assist with managing the City of Agoura Hills' funds in accordance with the annually established and approved Investment Policy.
Attachments
City of Agoura Hills June 2026 - KCA (002).pdf
FIXED INCOME
PORTFOLIO
MANAGEMENT
Services Proposal
PREPARED FOR
June 2026
KING CAPITAL
ADVISORS
Cambridge Investment Research, Inc.
Mark Edelman
Executive Vice President
Registered Representative | FINRA/SIPC
About King Capital Advisors
Specialized fixed income expertise backed by an industry-leading broker-dealer
KING CAPITAL ADVISORS
Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP
KING CAPITAL ADVISORS
Fixed Income Specialists for Public Agencies
Specialists in the fixed income marketplace for public agencies, cities, counties, and special districts throughout California Deep expertise in California Government Code Section 53601 — the legal framework governing all public fund investments Broad access to fixed income product inventory and markets through Cambridge Investment Research
Tailored portfolio construction fully aligned with each client's Investment Policy Statement
Long-term partnership model — we become a trusted extension of your finance team
CAMBRIDGE INVESTMENT RESEARCH
Broker-Dealer | FINRA/SIPC Member | Est. 1981
Founded in 1981 — over 45 years serving independent financial advisors across the country
Named Broker-Dealer of the Year by Investment Advisor magazine 13 times
Full-service broker-dealer offering comprehensive investment solutions and technology
Core values: Integrity, Commitment, Flexibility, and Kindness Robust compliance infrastructure, back-office support, and portfolio reporting capabilities
1 Cambridge and its predecessor broker-dealer.
2 Investment Advisor magazine, 2007, 2008, 2010, 2012–2020, Division IV; a broker-dealer becomes eligible for this honor only after a minimum of 10% of its producing financial professionals cast valid ballots. The ballots rate the broker-dealer in 15 different categories defined by Investment Advisor as relevant challenges and concerns. Broker-dealers receiving the highest marks in each of four divisions are declared Broker-Dealer of the Year. Results are based on experiences and perceptions of participants surveyed in June of each of the years listed. Experience may vary. This recognition is not representative of investment performance or returns of financial professionals.
Your Dedicated Advisor
Mark Edelman, Executive Vice President — King Capital Advisors
KING CAPITAL ADVISORS
Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP Mark Edelman
Executive Vice President
18+
Years Experience
Public Funds
CA
Gov. Code 53601
Specialist
Public Fund Expertise
18+ years managing fixed income portfolios for
California public agencies, cities, counties, and
special districts across the state.
California Code Section
53601
Comprehensive knowledge of the legal
framework governing public fund investments
— ensuring every recommendation is fully
compliant.
Investment Policy Assistance
We work with your City to review and
strengthen your Investment Policy Statement to
reflect current market best practices.
Long-Term Partnership
Built on lasting relationships — not
transactions. We become a trusted extension of
your finance team, available year-round.
Our Investment Philosophy
The foundation of everything we do — for Agoura Hills and every public agency we serve
KING CAPITAL ADVISORS
Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP For public funds, the priority order is non-negotiable and informs every recommendation we make:
01 SAFETY
Capital Preservation First
Protecting the City's principal is the
paramount objective. Every investment
recommendation is evaluated first through
credit quality, issuer strength, and downside
risk.
We only recommend securities appropriate
for public funds under California Government
Code Section 53601.
02 LIQUIDITY
Meeting Cash Needs On Demand
Agoura Hills must be able to meet its
obligations at all times. We structure
maturities and maturity ladders around the
City's specific cash flow calendar — payrolls,
capital projects, debt service — so funds are
always available when needed.
03 YIELD
Maximizing Return Within Constraints
Only after safety and liquidity are fully
satisfied do we pursue yield enhancement.
We leverage our broad market access and
deep fixed income expertise to identify the
best available return within your Investment
Policy Statement.
How We Manage Your Portfolio
A disciplined, four-step process built around the City of Agoura Hills' specific needs
KING CAPITAL ADVISORS
Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP 1 Understand Your
Cash Flow Needs
We map the City's full financial
calendar — payroll cycles, debt
service dates, capital project
disbursements, and seasonal
revenue patterns — to ensure
funds are always accessible
precisely when required.
2 Align to Your
Investment Policy
Every decision is made within the
boundaries of your Investment
Policy Statement and California
Government Code Section 53601.
We assist in updating the policy to
reflect current market best
practices as needed.
3 Construct a
Laddered Portfolio
We build a diversified, maturityladdered fixed income portfolio providing regular cash flow and
protection against interest rate
volatility — optimizing yield
without compromising safety or
liquidity.
4 Monitor, Report
& Adapt
We provide ongoing portfolio
monitoring, credit quality
surveillance, and regular reporting
for City management and council
review. We proactively adjust
positioning as market conditions or
City needs evolve.
Fixed Income Products Available
Broad access to California-compliant securities through Cambridge Investment Research
KING CAPITAL ADVISORS
Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP U.S. Treasury Securities
Bills, notes, and bonds backed by the full faith
and credit of the U.S. government — the gold
standard of safety for public agency portfolios.
U.S. Agency Securities
Securities issued by federal agencies (FHLB,
FNMA, FHLMC, FFCB) offering higher yields
than Treasuries with implied government
backing.
Municipal Bonds
Obligations issued by state and local
governments, offering favorable yields for
qualifying public fund portfolios.
Certificates of Deposit
FDIC-insured or NCUA-insured CDs placed
through banks and credit unions— ideal as a
core holding for small to medium size
portfolios.
Investment-Grade Corporate Bonds
High-quality corporate debt offering yield
enhancement for appropriate allocations,
always within Investment Policy Statement
guidelines.
Money Market Instruments
Short-term, highly liquid instruments including
commercial paper and bankers' acceptances
for day-to-day liquidity management.
All securities recommended are fully compliant with California Government Code Section 53601 and the City's Investment Policy Statement.
Authorized Investment Term Allowable % In Policy Issuer Limit CA Code Allowable % US Treasuries 5-year Max 100% N/A 100%
US Agencies 5-year Max 75% 30% 100%
US Agencies (Callable) 5-year Max 20% 30% 100%
Corporates – “A Rated” 5-year Max 30% 5% 30%
FDIC Bank CDs
NCUA Credit Union CDs 5-year Max 30% 5% 30%
Municipal Securities 5-year Max 30% 5% 100%
City of Agoura Hills Policy Approved Investments KING CAPITAL ADVISORS Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP * Of the 75% US Agency asset class, only 20% may be callable.
City of Agoura Hills Example Investment Portfolio KING CAPITAL ADVISORS Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP * Rates and availability subject to change.
Issuer Type Price CPN SIZE YTM MAT. CASH FLOW Call Feature PNC Bank NA CD $100.00 4.10% $ 240,000 4.10% 7/3/2027 $ 9,840.00 N/A Ally Bank CD $100.00 4.20% $ 244,000 4.20% 1/3/2028 $ 10,248.00 N/A Bank of America NA CD $100.00 4.20% $ 244,000 4.20% 7/3/2028 $ 10,248.00 N/A MTB Bank CD $100.00 4.25% $ 244,000 4.25% 6/30/2029 $ 10,370.00 N/A JP Morgan Chase Bank CD $100.00 4.45% $ 240,000 4.45% 7/2/2029 $ 10,680.00 NC1yr-Qtrly call Wells Fargo Bank CD $100.00 4.30% $ 249,000 4.30% 7/1/2030 $ 10,707.00 N/A Goldman Sachs Bank CD $100.00 4.25% $ 244,000 4.25% 7/1/2030 $ 10,370.00 N/A Citibank NA CD $100.00 4.55% $ 244,000 4.55% 6/30/2031 $ 11,102.00 NC6mo-S/A call Morgan Stanley Bank NA CD $100.00 4.40% $ 244,000 4.40% 7/1/2031 $ 10,736.00 N/A Investment Avg. Yield Yr 1 - Cash Flow Weighted Average Maturity $ 2,193,000 4.30% $ 94,301.00 3.19 YRS
This example portfolio is fully FDIC Insured. FDIC allows up to $250,000 of coverage in each institution.
Benefits of Building a Fixed Income Portfolio KING CAPITAL ADVISORS Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP Predictable Cash Flow
A laddered bond portfolio delivers scheduled
interest payments, enabling the City to
forecast revenue streams and plan budgets
with greater confidence.
Reduce Interest Rate Risk
Overexposure to cash and money markets
leaves the City vulnerable to declining shortterm rates. Fixed income locks in yields across maturities.
Portfolio Diversification
Spreading investments across maturities,
issuers, and instrument types enhances the
overall safety and stability of the City's
portfolio.
Organic Portfolio Growth
Reinvesting earned interest compounds
returns over time, growing the portfolio
organically without requiring additional
principal from the City.
Fund City Initiatives
Investment income can fund critical priorities
— enhancing public safety, wildfire prevention
programs, facility upgrades, and other
community initiatives.
Stronger Credit Position
A well-managed portfolio strengthens the
City's financial standing, supporting higher
credit ratings and more favorable terms when
issuing bonds.
All securities recommended are fully compliant with California Government Code Section 53601 and the City's Investment Policy Statement.
Why Choose King Capital
for the City of Agoura Hills?
Safety-first philosophy — protecting City assets is our primary mandate, not an afterthought.
Cash flow planning built around Agoura Hills' specific calendar — payrolls, projects, and debt service — so funds are always available.
18+ years of California public fund experience with deep knowledge of all Government Code Section 53601 requirements.
Enhanced yield through broad market access and wide fixed income inventory — always within policy guidelines.
A true long-term partner: responsive, transparent, and fully aligned with the City's best interests.
OUR
COMMITMENT
#1
SAFETY
#2
LIQUIDITY
#3
YIELD
Mark Edelman, EVP
Other CA Public Agencies We Serve KING CAPITAL ADVISORS Cambridge Investment Research
Byron-Bethany ID City of Rosemead City of San Fernando City of Solvang Imperial Irrigation Templeton CSD & Many More
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP Professional Reference KING CAPITAL ADVISORS
Cambridge Investment Research
Economic and Interest Rate Outlook June 2026
Economic Outlook
• GDP Growth: Projected at 2.2% for 2026, supported by consumer spending and business investment, though momentum is softening • Labor Market: Stable but cooling — unemployment at 4.3%, payroll growth averaging ~70,000/month
• Inflation Elevated: CPI at 4.2% (May), Core PCE at 3.3% — tariff and energy-driven pressures persist
• Consumer Pressure: Sentiment at record lows; gas at $4.49/gal (+42% YoY), real wages lagging inflation
Interest Rate Outlook
• Fed Funds Rate: Held at 3.50%–3.75% for 4th consecutive meeting (June 2026, unanimous vote)
• Hawkish Shift: New Chair Warsh removed easing bias; dot plot signals possible hike to 3.75%–4.00% by yearend
• Market Pricing: One 25bps hike potentially expected by October; rate cuts previously anticipated are off the table
• Yield Environment: Treasury yields elevated; 30-year at highest since 2007; long-run neutral rate ~3.0%
Impact on the City of Agoura Hills, CA
• Housing: Mortgage at 6.71% on $1.1M median home = ~$5,700/mo for new buyers. Rate lock-in reduces mobility for existing owners. • Daily Costs: LA energy up 18% YoY; gas above $5/gal; food +3.5%. CA cost of living is 42% above the national average. • Purchasing Power: Despite $171K median incomes, 3.6% LA-area inflation outpaces wages — consumer sentiment at record lows. • Investment Opportunity: Higher-for-longer rates are favorable for a public agency beginning to build a fixed income portfolio — locking in elevated yields now benefits the City long term.
New Account Process and Third-Party Custodian Safekeeping The next steps:
KING CAPITAL ADVISORS
Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP 1 Safekeeping Selection
Determine where the City will
safekeep your securities. One cost
effective safekeeping option
available is National Financial
Services (NFS), a wholly owned
subsidiary of Fidelity Investments.
2 New Account
Paperwork
Cambridge Investment Research Inc
new account paperwork: We will
safely collect sensitive information
about the City and authorized City
personnel on the account.
3 DocuSign
& E-Sign
We will securely input this
information into DocuSign for the
authorized to e-sign and establish
the account.
4 Deposit Funds
Deposit funds into your account to
begin investment program.
Important Disclosures KING CAPITAL ADVISORS
Cambridge Investment Research
Prepared exclusively for the City of Agoura Hills | King Capital Advisors | Mark Edelman, EVP Regulatory and Legal Disclosures
Registered Representative: Securities offered through Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC.
Investment Advisor Representative: Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor.
Non-Affiliation: Cambridge Investment Research, Inc. and King Capital Advisors Inc. are not affiliated entities.
General Disclosure: This presentation has been prepared for informational purposes only and is intended solely for the City of Agoura Hills. It does not constitute an offer or solicitation for the purchase or sale of any security. Past performance is not indicative of future results. All investments involve risk, including possible loss of principal. Recommendations are subject to the City Investment Policy Statement and California Government Code Section 53601.
Recognition Disclosure: The Broker-Dealer of the Year recognition was awarded to Cambridge Investment Research, Inc. by Investment Advisor magazine in 2007, 2008, 2010, and 2012 through 2020, Division IV. Eligibility requires a minimum of 10% of producing financial professionals to cast valid ballots. This recognition is not representative of investment performance or returns.