Agenda packet, regular meeting, first session — Antioch City Council, June 23, 2026 (part 4 of 4)

Assets: A probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events.

Audit: A view of the City's accounts by an independent auditing firm to substantiate fiscal year-end funds, salaries, reserves, and cash on hand.

Beginning/Ending (Unappropriated) Fund Balance/Net Position: Unencumbered resources available in a fund from the prior/current fiscal year after payment of the prior/current fiscal year's expenditures/expenses. This is not necessarily cash on hand.

Bond: A City may raise capital by issuing a written promise to pay a specific sum of money, called the face value or principal amount, at a specific date or dates in the future, together with periodic interest at a special rate.

Budget: A plan of financial activity for a specified period of time indicating all planned revenues and expenses for the budget period (July 1 through June 30). The budget is proposed until it has been approved by the City Council.

Budget Amendment: The City Council has the sole responsibility for adopting the City’s budget and may amend or supplement the budget at any time after adoption by a majority vote. The City Manager has the authority to approve administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances.

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SUPPLEMENTARY INFORMATION

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GLOSSARY OF BUDGET TERMINOLOGY (Continued)

Budget Hearing: A public meeting at which any citizen may appear and be heard regarding the increase, decrease or omission of any item in the proposed budget as presented in writing by the City Manager to the City Council.

Building Permits: The City requires that building permits be obtained to ensure that structures meet specific standards. The City requires various construction permits for activities such as the installation of electric, plumbing, and sewage facilities. The City charges a fee for issuing these permits in order to recover only the costs incurred. These fees are collected into the General Fund.

Business License Tax: The Business License Tax is imposed for the privilege of conducting business within the City. These fees are collected into the General Fund.

Capital Improvement: A permanent addition to the City's assets, including the design, construction, or purchase of land, buildings, or facilities, or major renovations of same.

Capital Improvement Program (CIP): A financial plan of proposed capital improvement projects with single- and multiple-year capital expenditures/expenses.

The Capital Improvement Program plans for five years and is updated annually.

Capital Outlay: A budget appropriation category which budgets all equipment having a unit cost of more than $5,000 and an estimated useful life of five years.

Non-CIP capital outlay is budgeted in the City’s operating budget.

Capital Projects: Major construction, acquisition, or renovation activities which add value to a government's physical assets or significantly increase their useful life.

CDBG: Community Development Block Grant – a program designed by the U.S. Department of Housing and Urban Development to revitalize low-and-moderate- income areas within a city.

Consumer Price Index (CPI): Consumer price index is a statistical measure of a weighted average of prices of a specified set of goods and services purchased by wage earners in urban areas.

Debt Service: Payment of the principal and interest on an obligation resulting from the issuance of bonds, notes, or certificates of participation.

Debt Service Requirements: The amount of money required to pay principal and interest on outstanding debt and required contributions to accumulate monies for future retirement of term bonds.

Deficit: An excess of expenditures or expenses over revenues (resources). 2026-27 OPERATING BUDGET

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GLOSSARY OF BUDGET TERMINOLOGY (Continued)

Department: An organizational unit comprised of divisions or programs. It is the basic unit of service responsibility encompassing a broad mandate of related activities.

Division: A sub-section (or activity) within a department which furthers the objectives of the City Council by providing specific services or a product.

Encumbrances: Funds not yet expended, but which are legally obligated or "set aside" in anticipation of expenditure. These funds cease to be an encumbrance when paid and become a disbursement.

Enterprise Funds: A type of fund established for the total costs of those governmental facilities and services which are operated in a manner similar to private enterprises. These programs are entirely or predominantly self-supporting. The City's water, sewer, marina, and Prewett Park funds are enterprise funds.

Expenditure: The actual spending of Governmental Funds set aside by appropriation.

Expense: The actual spending of Proprietary Funds (Enterprise and Internal Service Fund types) set aside by an appropriation.

Fiscal Year: A 12-month period of time to which a budget applies. In Antioch, it is July 1 through June 30.

Fixed Assets: Assets of a long-term character such as land, building, machinery, furniture and other equipment with a value greater than $5,000 and a useful life longer than 5 years.

Franchise Fee: A Franchise Fee is imposed on various utilities and organizations which permits them to use and operate those facilities within the City. These fees are collected into the General Fund.

FTE (Full-Time Equivalent): The amount of time a regular full or part-time position has been budgeted for in terms of the amount of time an employee works in a year.

Fund: An independent fiscal and accounting entity used to record all financial transactions related to the specific purpose for which the fund was created.

Fund Balance: Also known as financial position, fund balance is the excess of assets over liabilities, and represents the cumulative effect of revenues and other financing sources over expenditure and other financing uses.

General Fund: The primary fund of the City used to account for all revenues and expenditures of the City not legally restricted as to use. This fund is used to offset the cost of the City's general operations. Examples of departments financed by the General Fund include the Police Department and City Council.

2026-27 OPERATING BUDGET

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GLOSSARY OF BUDGET TERMINOLOGY (Continued)

Governmental Fund Types: General, Special Revenue, Debt Service and Capital Projects fund types are used to account for most governmental functions. The governmental fund measurement focus is on the "financial flow" basis, which accounts for sources and uses of available spendable resources.

Grant: Contributions, gifts of cash, or other assets from another governmental entity to be used or expended for a specific purpose, activity, or facility. An example is the Community Development Block Grant provided by the Federal Government.

Infrastructure: Facilities on which the continuance and growth of a community depend on such as roads, water lines, sewers, public buildings, and parks.

Interest: Interest income is earned as the City invests its idle funds in various investment media. The goal of the City's investment is to protect each investment while achieving the highest rate of return.

Interfund Transfers: Monies transferred from one fund to another. Such money is transferred to finance the operations of another fund or to reimburse the fund for certain expenditures/expenses.

Internal Service Fund: An Internal Service Fund provides services to other City departments and bills the various other funds for services rendered, just as would private business. Internal Service Funds are self-supporting and only the expense by this fund is counted in budget totals. Examples include the Equipment Maintenance Fund, Information Systems Fund, and Loss Control Fund.

Materials, Supplies, and Services: Expenditures/expenses for materials, supplies, and services which are ordinarily consumed within a fiscal year and which are not included in departmental inventories.

Objectives: The expected results or achievements of a budget activity.

Operating Budget: Annual appropriation of funds for on-going program costs, including salaries and benefits, services and supplies, debt service, capital outlay and capital improvements.

Ordinance: A formal legislative enactment by the City Council. It has the full force and effect of law within City boundaries unless preempted by a higher form of law. An Ordinance has a higher legal standing than a Resolution.

Property Tax: Property tax is imposed on real property (land and permanently attached improvements, such as building) and tangible personal property located within the City.

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GLOSSARY OF BUDGET TERMINOLOGY (Continued)

Proposition 4 Limit (Gann Initiative): In November 1979, the voters of the State of California approved Proposition 4, commonly known as the (Paul) Gann Initiative. The Proposition created Article XIIIB of the State Constitution placing limits on the amount of revenue which can be spent by all entities of government. Proposition 4 became effective for the 1980-81 fiscal year, but the formula for calculating the limits was based on the 1978-79 "base Year" revenues. In June 1990 California voters passed Proposition 111, which provides or new adjustment formulas to make the Gann appropriations limit more reflective of increased service demand due to commercial growth.

Proprietary Fund Types: Enterprise and Internal Service fund types are used to account for on-going activities which are financed and operated in a manner similar to those found in the private sector. The intent is that costs (expenses, including depreciation) be financed or recovered through user charges. The measurement focus is "capital maintenance" as in private industry, with the emphasis on net income determination.

Reimbursement: Payment of amount remitted on behalf of another party, department, or fund.

Committed Fund Balance: Accounts used to record a portion of the fund balance as legally segregated for a specific use and not available for appropriation.

Resolution: A special order of the City Council which has a lower legal standing than an ordinance.

Revenues: Amount received for taxes, fees, permits, licenses, interest, intergovernmental sources, and other sources during the fiscal year.

Salaries and Benefits: A budget category which generally accounts for full-time and temporary employees; overtime expenses; and all employee benefits, such as medical, retirement, worker's compensation, and dental.

Sales and Use Tax: Sales and use tax is imposed on retailers for the privilege of selling, at retail, within the City limits. This tax is based on the sales price of any taxable transaction of tangible personal property. This revenue is placed in the General Fund for unrestricted uses.

Special Revenue Funds: This fund type collects revenues that are restricted by the City, State, or Federal Government as to how the City might spend them.

Transient Occupancy Tax: The Transient Occupancy Tax is a tax imposed on "transients" who occupy a room or room in a hotel or motel in the City. This tax is 10%. Seven percent is placed in the General Fund and three percent is placed in the Civic Arts Fund.

6 Agenda Item #

STAFF REPORT TO THE SUCCESSOR AGENCY AND HOUSING SUCCESSOR TO

THE ANTIOCH DEVELOPMENT AGENCY OF THE CITY OF ANTIOCH

DATE: Regular Meeting of June 23, 2026

TO: Honorable Mayor and Members of the City Council

SUBMITTED BY: Dawn Merchant, Finance Director
Ana Cortez, Acting City Manager AEC

SUBJECT: Resolution of the City of Antioch as Successor Age ncy and Housing Successor to the Antioch Development Agency Adopting the Fiscal Year 2026-27 Budget and Revising the 2025-26 Budget

RECOMMENDED ACTION
It is recommended that the City of Antioch as Successor Agency and Housing Successor to the Antioch Development Agency adopt a resolution approving and adopting the fiscal year 2026-27 budget and revising the fiscal year 2025-26 budget.

FISCAL IMPACT
The fiscal impact of this budget is outlined in the draft budget document attached to agenda item #5.

DISCUSSION
A budget for the City as Successor Agency and Housi ng Successor to the Antioch Development Agency has been prepared and reviewed by the City Council during budget study sessions encompassing obligations listed on t he Recognized Obligation Payment Schedules as approved by both the City as Successor Agency and Housing Successor and the Oversight Board to the Successor Agency. T he funds of the Successor Agency and Housing Successor are included in the budget document attached with agenda item #5, starting on page 308.

ATTACHMENTS
A. Resolution approving adoption of the 2026-27 budget and revising the 2025-26 budget

ATTACHMENT A
SA RESOLUTION NO. 2026/XX

RESOLUTION OF THE CITY OF ANTIOCH AS SUCCESSOR AGEN CY AND HOUSING SUCCESSOR TO THE ANTIOCH DEVELOPMENT AGENCY ADOPTING THE FISC AL YEAR 2026-27 BUDGET AND REVISING THE 2025-26 BUDGET AS RELATED TO THE ACTIV ITIES OF THE SUCCESSOR

AGENCY AND HOUSING SUCCESSOR

WHEREAS , the Antioch Development Agency was formed by the adoption of the Redevelopment Plan in July 1975;

WHEREAS, pursuant to the passage of AB X1 26 upheld by the C alifornia Supreme Court, redevelopment agencies were required to be dissolve d by February 1, 2012;

WHEREAS , pursuant to Resolution No. 2012/07 dated January 24, 2012, the City of Antioch confirmed its intention to serve as the Successor A gency to the Antioch Development Agency for non- housing related functions and pursuant to Resolutio n No. 2012/06 dated January 24, 2012, the City of Antioch elected to perform the housing functions of the Antioch Development Agency pursuant to AB X1 26;

WHEREAS , the City Council of the City of Antioch as Succes sor Agency and Housing Successor to the Antioch Development Agency has heretofore co nsidered said Operating Budget; and

WHEREAS, the City Council as Successor Agency and Housing S uccessor to the Antioch Development Agency did receive, consider and evalua te the revised 2025-26 portion of the Operating Budget as submitted; and

WHEREAS, enforceable obligations of the Successor Agency and Housing Successor are incorporated into said budgets;

NOW THEREFORE BE IT RESOLVED:

Section 1. That the Successor Agency and Housing Su ccessor Operating Budget for the 2026-27 Fiscal Year, on file with the Recording Secretary, is hereby approved and adopted.

Section 2. That the revised portion of the Successo r Agency and Housing Successor Budget for the 2025-26 Fiscal Year is hereby approved and adopted.

* * * * * * * * *
* * * *

The foregoing resolution was passed and adopted by the City of Antioch as Successor Agency and Housing Successor to the Antioch Development Ag ency at a regular meeting thereof, held on the 23rd day of June 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________________________
MICHAEL J. MANDY, RECORDING SECRETARY

Agenda Item #

STAFF REPORT TO THE ANTIOCH PUBLIC FINANCING AUTHORITY

DATE: Regular Meeting of June 23, 2026

TO: Honorable Members of the Antioch Public Finance Authority

SUBMITTED BY: Dawn Merchant, Finance Director
Ana Cortez, Acting City Manager AEC

SUBJECT: Resolution of the Antioch Public Financing Authori ty Adopting the Fiscal Year 2026-27 Budget and Revising the Fiscal Year 2025-26 Budget.

RECOMMENDED ACTION
It is recommended that the Board of the Antioch Pub lic Financing Authority adopt a resolution approving and adopting the fiscal year 2 026-27 budget and revising the fiscal year 2025-26 budget.

FISCAL IMPACT
The fiscal impact of this budget is outlined in the draft budget document attached to agenda item #5.

DISCUSSION
The Antioch Public Financing Authority (APFA) is a joint powers authority created between the City of Antioch and former Antioch Deve lopment Agency as a financing mechanism for real and personal property and improv ements for the benefit of the residents of the City. The funds of the APFA are i ncluded in the budget document attached with agenda item #5, starting on page 304.

ATTACHMENT
A. Resolution approving adoption of the fiscal year 20 26-27 budget and revising the 2025-26 budget

7 ATTACHMENT A
RESOLUTION NO. 2026/XX

RESOLUTION OF THE CITY OF ANTIOCH PUBLIC FINANCING AUTHORITY ADOPTING THE FISCAL YEAR 2026-27 BUDGET AND
REVISING THE FISCAL YEAR 2025-26 BUDGET

WHEREAS, The City Council formed the Antioch Public Financin g Authority in April 1993 to provide financial assistance to the C ity by financing improvements for the benefit of the residents of the City; and

WHEREAS , the City Council of the City of Antioch has heret ofore considered said budget.

NOW THEREFORE BE IT RESOLVED that the Authority Budget for the 2026-27 Fiscal Year and the 2025-26 Fiscal Year revised bud get, on file with the Authority Secretary, are hereby approved and adopted.

* * * * * * * * * * * *

The foregoing resolution was passed and adopted by the City of Antioch Public Financing Authority at a regular meeting thereof, h eld on the 23rd day of June 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

_____________________________
MICHAEL J. MANDY, SECRETARY

8 Agenda Item #

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of June 23, 2026

TO: Honorable Mayor and Members of the City Council

SUBMITTED BY: Dawn Merchant, Finance Director

APPROVED BY: Ana Cortez, Acting City Manager AEC

SUBJECT: Statement of Investment Policy

RECOMMENDED ACTION
It is recommended that the City Council:

1. Adopt a resolution approving the Statement of Investment Policy; and

2. Provide direction on inclusion of Socially Responsible Investing or Environmental, Social, and Governance (ESG) Investing practices in the Statement of Investment Policy.

FISCAL IMPACT
There is no fiscal impact associated with this action at this time. There is no cost to adopt the draft policy attached. Should the City choose to adopt an ESG investment practice, additional investment advisory fees could be incurred.

DISCUSSION

Statement of Investment Policy Adoption
The City’s current Investment Policy (“Policy”) requires that the City Treasurer render the Policy to City Council for review when changes are made, or at least every two years.

The investment policy was last reviewed and approved by City Council in June 2024, thus a draft Policy, with a minor change recommended by the City’s investment advisor PFMAM, was on the June 9th City Council agenda for consideration.

The staff report, prepared by Treasurer Rojas, was subsequently pulled for public comment. Members of Contra Costa Divest spoke and requested that the City adopt ethical investment practices, with similar language to the investment policy for Alameda County. Council Member Torres-Walker spoke in support of an ethical policy as well. A motion to approve the Policy as presented failed on a 2-2 vote with Councilmember Rocha

Antioch City Council Report
June 23, 2026 Agenda Item #8 2
absent. Further discussion resulted in direction to bring the item back with the Treasurer and the City’s investment advisor, Justin Resuello from PFMAM, present and for the Treasurer to meet with the advocates to discuss ethical investment. Mayor Pro Tem Freitas inquired about the consequences should the Policy not be adopted by June 30th, but staff confirmed there are no penalties under state law.

Should the Council fail to adopt the attached policy, the current policy will remain in effect.

However, failure to adopt will result in the City being non-compliant with the investment policy itself, which requires that it come back every two years. June 2026 is the two-year mark from when it was last reviewed and adopted. It is recommended to approve the draft policy to remain compliant, and staff can then move forward working on any updates should Council direct ethical investing.

Ethical Investing
At the direction of City Council, information regarding ethical investing is being provided this evening for discussion and direction.

Treasurer Rojas met with a representative from Contra Costa Divest to understand their position and the request was as follows:

"The City of Antioch will strive to invest its funds in ways that promote the wellbeing of our communities and our environment, favoring investment in entities that support the needs of peacetime daily life, in companies that offer renewable energy and other climate mitigation strategies, in companies with a strong environmental, labor, and social records, or in socially responsible community projects within our City.

The City will refrain from investment in harmful industries such as tobacco, fossil fuels, mass incarceration or immigrant detention, and weaponry of any kind, or in companies with a consistent record of direct involvement in severe human rights violations such as slavery and prison labor, war crimes, illegal military occupation, racial segregation, or apartheid.”

To meet the needs of the City Council and be responsive to the issues raised by the community, PFMAM offers two avenues, either of which would support ethical investment by the City:

1. Socially Responsible Investing (SRI), which would filter out and exclude sectors and/or companies the City does not want to invest in. For example, the current Policy includes one such prohibition in Section V. 3:
a. “The City will not invest in any companies that produce alcohol for public consumption or tobacco products” (Attachment A).

There would be no additional investment advisory cost to the City to expand sectors and/or companies; or

Antioch City Council Report
June 23, 2026 Agenda Item #8 3

2. Environmental, Social, and Governance (ESG) Investing which considers environmental risk factors, social factors and governance factors. This approach is more complex and layered and would require an additional investment advisory fee depending on scope, reporting, and implementation. This approach would also not be able to identify companies involved in slavery and prison labor, war crimes, etc. as requested by the advocacy group as PFMAM does not have reliable or a consistently verifiable methodology to screen for these criteria.

With either option, it is recommended that the City hold investments that would be out of compliance with any new methodology adopted until they can either be sold with no loss, or until maturity, whichever comes first. PFMAM did review the current investments with Caterpillar, Chevron and Lockheed Martin that the advocacy group specifically mentioned that the City should divest from, and as of June 17th, four of the investments would be sold at a loss to the City of $25,758.93 and one investment would provide a small gain of $2,262.

Justin Resuello from PFMAM will be presenting the investment strategies and available to answer any questions. City Council direction is requested as to which option, if either, they would like to incorporate into the City investment policy. Based on that direction, the Acting City Manager and Finance Director will work with the City Treasurer and PFMAM to determine investment parameters and draft an updated investment policy, understanding that this is not a quick turnaround process and will take some time as some agencies have spent up to a year crafting an investment strategy that fulfilled the ethical investment guidelines they wanted. A draft updated investment policy will be brought back to Council for consideration once this process is complete.

ATTACHMENTS
A. Resolution
a. Exhibit 1 – Statement of Investment Policy
B. PFMAM Presentation

ATTACHMENT A
RESOLUTION NO. 2026/XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANTIOCH

APPROVING THE STATEMENT OF INVESTMENT POLICY

WHEREAS, California Government Code Sections 53600 et seq. allow a city to make investments with money not required for immediate needs, but limits the kinds of investments that a city can make; and

WHEREAS, when investing, State law requires that the primary objective of a trustee shall be to safeguard the principal of the funds under its control; the secondary objective shall be to meet the liquidity needs of the depositor; and the third objective shall be to achieve a return on the funds under its control.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Antioch hereby approves the Statement of Investment Policy, as attached hereto as Exhibit 1.

* * * * * * * *

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Antioch at a regular meeting thereof, held on the 23rd day of June 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

___________________________________
MICHAEL J. MANDY

CITY CLERK OF THE CITY OF ANTIOCH
EXHIBIT 1

CITY OF ANTIOCH

STATEMENT OF INVESTMENT POLICY

1 6-23-26
I. INTRODUCTION

The purpose of this document is to identify various policies and procedures that enhance opportunities for a prudent and systematic investment process. The initial step toward a prudent investment policy is to organize and formalize investment related activities. Related activities which comprise good cash management include accurate cash projection, the expeditious collection of revenue, the control of disbursements, cost effective banking relations, and a short term borrowing program which coordinates working capital requirements and investment opportunity. In concert with these requirements are the many facets of an appropriate and secure short term investment program.

II. OBJECTIVES

A. Safety of principal is the foremost objective of the City, followed by liquidity and yield. Each investment transaction shall seek to first ensure that capital losses are avoided, whether they are from securities defaults or erosion of market value.

B. Investment decisions should not incur unreasonable investment risks in order to obtain current investment income.

C. The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. This need for investment liquidity may be tempered to the extent that the City is able to issue short term notes to meet its operating requirements.

D. The investment portfolio shall be managed to attain a market average rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow requirements, and state and local law, ordinances or resolutions that restrict the placement of short term funds.

E. Portfolio performance will be measured against a total return index with securities with similar attributes and similar average maturity, e.g., the Merrill Lynch 1-3 Year U.S. Treasury Index.

F. The City's investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types or in individual financial institutions.

G. While the City will not make investments for the purpose of trading or speculation as the dominant criterion, the City Treasurer shall seek to enhance total portfolio return by means of active portfolio management. The prohibition of speculative investments precludes pursuit of gain or profit through unusual risk and precludes investments primarily directed at gains or profits from conjectural fluctuations in market prices. However, as long as the original investments can be justified by their ordinary earning power, trading in response to changes in market value or market direction is a requirement of portfolio management.

H. The City adheres to the guidance provided by the "prudent investor rule", which states that, “when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”

I. All participants in the investment process shall act responsibly as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust.

Nevertheless, in a diversified portfolio, it must be recognized that occasional measured losses are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented.

III. DELEGATION OF AUTHORITY

EXHIBIT 1

CITY OF ANTIOCH

STATEMENT OF INVESTMENT POLICY

2 6-23-26
The responsibility for conducting the City's investment program resides with the City Treasurer, who shall establish written procedures for the operation of the investment program, consistent with this investment policy. Such procedures shall include explicit delegation of authority for all investment activities. Transactions may be delegated to an independent investment advisor registered with the SEC who will meet at least quarterly with the City Treasurer and Finance Director to review general strategies and monitor results.

IV. PERMITTED INVESTMENT INSTRUMENTS

The City of Antioch shall strive to maintain the level of investment of all idle funds as near 100% as possible, through daily and projected cash flow determinations. Idle cash management and investment transactions are the responsibility of the City Treasurer. The City Treasurer, or designee, is authorized to purchase the following investment instruments.

Investment of City funds is governed by the California Government Code Sections 53600 et seq., within the context of the limitations, the following investments are authorized, as further limited herein. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.

Where this section specifies a percentage limitation for a particular security type, that percentage is applied on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased.

If an investment’s credit rating falls below the minimum rating required at the time of purchase, the City Treasurer, or designee, will perform a timely review and decide whether to sell or hold the investment.

A. U.S. Treasury, notes, bonds, bills, or other certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.

B. Federal agency or United States government-sponsored enterprise obligations, participation, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises.

C. Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency or by a department, board, agency or authority of the state or any local agency.

D. Registered treasury notes or bonds of any of the other 49 United States in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 United States, in addition to California.

E. Repurchase Agreements. Repurchase agreements are to be used solely as short-term investments not to exceed 30 days. The City may enter into repurchase agreements with primary government securities dealers rated "A" or better by two nationally recognized rating organizations (NRSRO). Counterparties should also have (i) a short-term credit rating in the highest category by an NRSRO; (ii) minimum assets and capital size of $25 billion in assets and $350 million in capital; (iii) five years of acceptable audited financial results; and (iv) a strong reputation among market participants.

The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities will be acceptable collateral. All securities underlying repurchase agreements must be delivered to the City's custodian bank versus payment or be handled under a properly executed tri-party repurchase agreement. The total market value of all collateral for each repurchase agreement must equal or exceed 102% of the total dollar value of the money invested by the City for the term of the investment. For any repurchase agreement with a term of more than one day, the value of the underlying securities must be reviewed on an on-going basis according to market conditions. Market value must be calculated each time there is a substitution of collateral.

EXHIBIT 1

CITY OF ANTIOCH

STATEMENT OF INVESTMENT POLICY

3 6-23-26

The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to repurchase agreement. The City shall have properly executed a SIFMA agreement with each counter party with which it enters into repurchase agreements.

F. Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers' acceptances. Purchases of bankers' acceptances may not exceed 180 days' maturity, or 40% of the City's surplus money that may be invested. Eligible bankers' acceptances are restricted to issuing financial institutions with short-term paper rated in the highest category by an NRSRO.

G. Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2) below:

1. The entity meets the following criteria: (A) is organized and operating in the United States as a general corporation. (B) has total assets in excess of five hundred million dollars ($500,000,000). (C) has debt other than commercial paper, if any, that is rated in a rating category of "A" or its equivalent or higher by an NRSRO.

2. The entity meets the following criteria: (a) is organized within the United States as a special purpose corporation, trust, or limited liability company. (b) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (c) Has commercial paper that is rated "A-1", or its equivalent or higher by an NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 397 days or less. The City may invest no more than 40% of its money in eligible commercial paper. If the City’s investable assets fall below $100 million, the City may invest no more than 25% of its money in eligible commercial paper.

H. Medium term notes with a maximum maturity of five years issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States shall be rated in a rating category of “A” or its equivalent or better by an NRSRO.

Purchases of medium term notes may not exceed 30% of the City's portfolio.

I. FDIC-insured or fully collateralized time certificates of deposit in financial institutions located in California, including U.S. branches of foreign banks licensed to do business in California. All time deposits must be collateralized in accordance with California Government Code Section 53561, either at 150% by promissory notes secured by first mortgages and first trust deeds upon improved residential property in California eligible under Section (m) or at 110% by eligible marketable securities listed in Subsections (a) through (l) and (n) and (o). To be eligible to receive local agency deposits, a financial institution must have received a minimum overall satisfactory rating for meeting the credit needs of California Communities its most recent evaluation.

J. Negotiable Certificates of Deposit issued by a nationally or state-chartered bank or a state or federal savings and loan association, a state or federal credit union, or by a federally- or state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30% of the City's surplus money.

1. Certificates with maturities up to one year shall have an “A-1”rating, or its equivalent or higher, as provided for by an NRSRO.

2. Certificates with maturities greater than one year and through five years shall be rated in a rating category of “A,” its equivalent or better by an NRSRO.

K. State of California's Local Agency Investment Fund (LAIF). Investment in LAIF may not exceed the amount specified by the State Treasurer.

1. The LAIF portfolio should be reviewed periodically.

EXHIBIT 1

CITY OF ANTIOCH

STATEMENT OF INVESTMENT POLICY

4 6-23-26

L. California Asset Management Program (CAMP).

M. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). To be eligible for investment pursuant to this subdivision these companies shall either:

1. Attain the highest ranking letter or numerical rating provided by not less than two of the three largest NRSROs or

2. Have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years experience managing money market mutual funds and with assets under management in excess of $500,000,000.

The purchase price of shares shall not exceed 20 percent of the investment portfolio of the City.

N. Asset-Backed Securities

A mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond.

For securities eligible for investment under this subdivision not issued or guaranteed by an agency or issuer identified in subdivision (b) or (f), the following limitations apply:

(A) The security shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and have a maximum remaining maturity of five years or less.
(B) Purchase of securities authorized by this paragraph shall not exceed 20 percent of the agency’s surplus moneys that may be invested pursuant to this section.

O. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter-American Development Bank (IADB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO.

Purchases of these securities shall not exceed 30 percent of the investment portfolio of the City.

P. Insured savings account or money market account. To be eligible to receive local agency deposits, a financial institution must have received a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation.

V. PROHIBITED INVESTMENTS

Any security type or structure not specifically approved by this policy is hereby specifically prohibited.

Security types which are thereby prohibited include, but are not limited to:

1. Reverse repurchase agreements.

2. The City shall not invest any funds in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages, or in any security that could result in zero interest accrual if held to maturity.

EXHIBIT 1

CITY OF ANTIOCH

STATEMENT OF INVESTMENT POLICY

5 6-23-26

3. The City will not invest in any companies that produce alcohol for public consumption or tobacco products.

Notwithstanding the prohibitions stated in the above paragraph, the City may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. The City may hold these instruments until their maturity dates.

VI. MATURITY

Investment maturities shall be based on a review of cash flow forecasts. Maturities will be scheduled as to permit the City to meet all projected obligations. No investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement as authorized by this section that at the time of the investment has a term remaining to maturity in excess of five years unless City Council has provided approval for a specific purpose at least three months before the investment is made. The City Council has approved agency mortgage-backed securities (MBS) as permitted by Section IV.B. of this Policy to have a final maturity longer than five years. The weighted average life (WAL) of agency MBS may not exceed five years. For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity.

VII. DIVERSIFICATION

It is City policy to diversify the investment portfolio in order to reduce the risk of loss resulting from other concentration of assets in a specific maturity, a specific issuer, or a specific class of securities. The following strategies and constraints shall apply:

A. Maturities shall be selected which provide for stability of income and reasonable liquidity.

B. Concern for liquidity shall be insured through practices that include covering the next vendor disbursement date and payroll date through maturing investments.

C. Risks of market price volatility shall be controlled through the appropriate management of the portfolio’s duration versus the benchmark duration. Whereby duration is used as a measure of the portfolio’s sensitivity to changes in interest rates which cause market price volatility.

D. Specific diversification limitation shall be imposed on the portfolio as follows:

1. The portfolio’s duration should be appropriately positioned relative to benchmark duration during rising and falling interest rate environments.

2. Except for fully collateralized deposits, investments in pooled funds such as LAIF, CAMP, and money market funds, instruments of the U.S. Government or its Agencies and securities issued by the IBRD, IFC, and IADB, no more than 5% of the overall portfolio may be invested in the securities of a single financial institution.

3. In accordance with California statutes, City deposits including collateralized certificates of deposit shall not exceed the total paid up capital (to include capital notes and debentures) and surplus of any depository bank, or the total of the net worth of any savings and loan association.

VIII. RISK TOLERANCE

The City recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to control risk.

No individual investment transaction shall be undertaken which jeopardizes the total capital position of the overall portfolio. The City Treasurer shall periodically establish guidelines and strategies to control risks of default, market price changes and illiquidity.

EXHIBIT 1

CITY OF ANTIOCH

STATEMENT OF INVESTMENT POLICY

6 6-23-26

In addition to these general policy considerations, the following specific policies will be strictly observed.

A. All investment funds will be placed directly with qualified financial institutions. The City will not deposit or invest funds through third parties or money brokers.

B. All transactions will be executed on a delivery versus payment basis with one exception: Upon the City's receipt of an account number from an authorized official, a California savings and loan institution and Bay Area banks shall have 48 hours from the transaction settlement date in which to deliver the certificate of deposit for a collateralized deposit to the City's safekeeping, even though payment is made by the City on the settlement date.

C. A competitive bid process, utilizing a minimum of three financial institutions deemed eligible by the City's Investment Advisor, will be used to place all investment purchases. Based on a quarterly evaluation, securities dealers, banks and other financial institutions will be dropped or continued on the eligibility list. The following criteria will be used in the quarterly evaluation:

1. Number of transactions competitively won.

2. Prompt and accurate confirmation of transactions.

3. Efficient securities delivery.

4. Accurate market information account servicing.

D. The City Treasurer shall forward a copy of and updates to the City's Investment Policy to the City's Investment Advisor and require written acknowledgment of the Policy.

IX. SAFEKEEPING AND CUSTODY

To protect against potential fraud and embezzlement, the assets of the City shall be held in the City's vault or secured through third party custody and safekeeping procedures. City Treasurer or designee shall be bonded to protect the public against possible embezzlement and malfeasance. Safekeeping procedures shall be reviewed annually by an independent auditor. The auditor may conduct surprise audits of safekeeping and custodial procedures.

All securities will be received and delivered using standard delivery versus payment procedures.

X. REPORTING REQUIREMENTS

The City Treasurer shall render to the City Council at least a quarterly investment report, which shall include, at a minimum, the following information for each individual investment:

1. Type of investment instrument (i.e., Treasury Bill, medium term note);

2. Issuer name (i.e., General Electric Credit Corporation);

3. Purchase date (trade and settlement date);

4. Maturity date;

5. Par value;

6. Purchase price;

7. Current market value and the source of the valuation;

8. Overall portfolio yield based on cost.

The quarterly report also shall (a) state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance; (b) include a description of any of the City's funds, investments, or programs that are under the management of contracted parties, including lending programs; and (c) include a statement denoting the ability of the City to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

As a good reporting practice, the Report will be submitted on a quarterly basis and provided to the Council.

EXHIBIT 1

CITY OF ANTIOCH

STATEMENT OF INVESTMENT POLICY

7 6-23-26
The Treasurer will submit to City Council a monthly report of investment transactions.

XI. INVESTMENT POLICY REVIEW

The Statement of Investment Policy shall be reviewed annually by the City Treasurer and shall be rendered to the City Council at a public meeting when any changes are proposed or at least every two years.

XII. INTERNAL CONTROLS

The Finance Director and Treasurer are responsible for establishing and maintaining an internal control structure designed to ensure that the financial assets of the City are protected from loss, theft, fraud and misuse.

XIII. INVESTMENT POOLS/MUTUAL FUNDS

The Treasurer will perform due diligence reviews of pools and funds prior to investing, and on a continual basis.

pfmam.com
A Division of U.S. Bancorp Asset Management, Inc.

For Institutional Investor or Investment Professional Use Only –
This material
is not for inspection by, distribution to, or quotation to the general public City of Antioch
Sustainable and ESG Solutions
as requested by the City
June 23, 2026
Justin Resuello
Institutional Sales and Relationship
Manager
Monique Spyke
Managing Director
Agenda
2 PFMAM Overview
Credit Process
Sustainable and ESG
Solutions
Structure of
Organizational
Support and
Resources
3As of March 31, 2026.
•
Parent company of U.S. Bank, N.A.
•
70k+ employees and $
700
b in assets
U.S. Bancorp
U.S. Bank, N.A.
•
Among the largest commercial banks in the
U.S. by assets
U.S. Bancorp Asset Management, Inc.
•
Institutionally focused Registered Investment
Adviser
•
Fixed income and multi
-
asset solutions for
institutional investors
•
$435.8b in assets under management
PFM Asset Management
•
A division of U.S. Bancorp Asset
Management,
Inc.
•
40+ years of providing public sector
investment solutions
3 At a Glance
4*As of March 31, 2026. Public sector includes government, pool, and TERM. Total assets under management for U.S. Bancorp Asse t Management, Inc. were $435.8 billion.

Built to Serve the Public
Sector
We serve state and local
governments, public pensions,
higher education, other post
employment benefit trusts
(OPEB), and public insurance
and captives
•
Public sector investment and
relationship management
teams experienced in the
specific investment codes &
needs of public sector clients
•
Strong performance track
record, transparent reporting
and commitment to client
education
Our Solutions
•
Local Government
Investment Pools (LGIPs)
•
Fixed Income Strategies
•
Cash & Enhanced
Cash
•
Short & Intermediate
Duration
•
Core Aggregate
•
Outsourced Chief
Investment Officer (OCIO)
•
Specialized Solutions
•
Structured Products
•
Arbitrage Rebate
in
P
ublic Sector A
ssets
Under Management*
$176.8
b
Public Sector
Clients*
700+
Years Serving the Public
Sector*
40 +
5 *Total assets include discretionary assets as of 03/31/2026. **California Association of County Treasurers and Tax Collectors, California Society of Municipal Finance Officers, Californi a Municipal Treasurers Association, California Debt and Investment Advisory Commission.

Total assets under management for U.S. Bancorp Asset Management, Inc. were $491.5 billion as of March 31, 2026 Across the State
Active Participant in the California Public
Finance Community
•
Serving clients in California since 1986
•
Educators and sponsors
for CACTTC, CSMFO,
CMTA, CDIAC**
•
Membership with CSMFO Professional Standards
Committee
•
Offices in Irvine, Sacramento, and San Francisco
$60.9 billion
in total assets*
for 177
clients
in California
$11.5 billion
in total assets*
for 68
cities
in California
Fixed Income Investment Resources
6*Investment professionals include fixed income portfolio managers, traders, credit research, portfolio strategy teams. Average y ears of industry experience.

| Sustainalytics
Greg Haendel, CFA
Managing Director
–
Head of
Corporate Fixed Income
Jeff Rowe, CFA
Managing Director
–
Head of
Liquidity Portfolio Management
Robert Cheddar, CFA
Managing Director
–
Senior Fixed
Income Portfolio
James Sims, CFA
Managing Director
–
Head of
Public Sector Fixed Income
Portfolio Management Leadership
Portfolio Strategies Group
Portfolio Construction | Investment Analytics & Attribution Structured Products Group
Sector Specialists & Investment Strategies
Sectors:
•
Agencies
•
Asset
-
Backed Securities
•
Certificates of Deposits
•
Commercial Paper
•
Corporates
•
Mortgage
-
Backed Securities
•
Municipals
•
Repurchase Agreements
•
Supranationals
•
Treasuries
Portfolio Types:
•
Money Market Funds
and
Securities Lending
•
Local Government
Investment Pools
•
Fixed Maturity TERM
Investments
•
Cash & Enhanced Cash
•
Short & Intermediate
Duration
•
Core Aggregate Fixed
Income
•
Structured/Escrow
•
Asset/Liability Matched
Credit Research Group
•
Preserve Principal
•
Manage Approved Lists
•
Generate Alpha
45 +
Investment professionals*
20 +
Average Years Experience*
Credit Process
7 Robert Hajduch
Managing Director
-
Head of Taxable Credit
Research
38 years experience
Eric Espeseth
Director
-
Senior Credit Research Analyst
22 years experience
Marin Komlan
Director
-
Senior Credit Analyst
24 years experience
Tim Russell
Managing Director
-
Head of Municipal
Credit Research
30 years experience
Winnie Cheng, CFA
Director
-
Senior Credit Research Analyst
40 years experience
Cynthia Ma, CFA
Director
-
Senior Credit Research Analyst
19 years experience
Kevin Xie, CFA
Credit Research Analyst
7 years experience
Joe Morrison
Associate Credit Research Analyst
5 years experience
Credit Research Team
. 8
Jackson Nelson
Associate Credit Research Analyst
4 years experience

Approved List
Driven by Fundamental Analysis and Monitoring Cycle
9 Fundamental Analysis
Proprietary Common Analytic Framework
Issuer Fundamentals, News, Filings
Top
-
Down Industry Fundamentals
Bottom
-
Up Analysis
3 rd
Party Research + Rating Agencies
Base Case
Business Risk Profile
Financial Risk Profile
Ratings Outlook
Credit Structure
Fundamental Credit Outlook
Analysis Events
Financial Results
Operating, Regulatory,
Macro Environment
Corporate Events
External Factors
Business Cycle
Credit Committee
Consensus on
Credit Risks
Unanimous Approved List
Any Member May
Remove An Issuer
A Closer Look at Constructing the
Approved List
10 Industry Information Sources
3 rd
Party Research
Rating Agencies
Market Data
Issuer
Top
-
Down Macroeconomic Analysis
Sector
•
Macro trends
•
Capacity utilization
•
Industry structure and
dynamics
•
Capital intensity
•
Regulatory environment
Involved Parties
•
Credit Research team
•
Investment team
•
Credit committee
•
Strategy committee
Universe Definition
•
U.S. dollar denominated
•
Rated investment grade
•
Typical final maturity
≤ 5 years
•
Issued in sufficient size
Bottom
-
Up Issuer Analysis
Analysis + monitoring of quantitative and qualitative factors utilizing broad range of external research tools
Country
•
Rating and outlook
of sovereign
•
Financial reporting standards
•
Economic structure
•
Political/macroeconomic
stability
Sustainable and
ESG Solutions
11 The following information is provided as
requested by the City
Please see important disclosures at the end of this presentation Screening Permitted Credit Investments
For clients with an SRI/ESG mandate
Please see important disclosures at the end of this presentation. 13 1)
Applicable State Laws & Statutes
2)
Our Approved Credit List
•
Credit research is integral to our investment process
•
Senior credit research analysts continuously monitor an approved credit list driven by fundamental analysis
•
Credit risk is assessed at the security, issuer, and sector level 3)
Client’s Investment Policy Statement
•
Details of credit quality restrictions, maturity limits, and permitted sectors that align with the client’s investment objectives and risk tolerances •
If applicable, defined sustainability considerations which may include:
•
Socially responsible investing (SRI) criteria to avoid specific issuers and/or industries
•
Environmental, social, and governance (ESG) criteria to restrict credit investments based on specific sustainability objectives Option 1
Company
-
Specific Screening
14 The client can provide a specific list of issuers that it wants to avoid within its investment portfolio as part of its investment policy/mandate
PFMAM will add those companies to a do
-
not
-
buy list
within our trade compliance system, Bloomberg AIM
Traders will be notified that a trade is not permitted if they attempt to purchase from an issuer on the
prohibited list
Please see important disclosures at the end of this presentation.

Option 2
Negative Screening / SRI Option
For illustrative purposes only. Not a specific recommendation. Actual criteria may vary. SRI/ESG metrics as provided by Susta inalytics and Bloomberg, as noted.

Please see important disclosures at the end of this presentation. 15 The client can include exclusions for specific industries and/or subindustries within its investment policy/mandate
Using Bloomberg Classifications
•
Bloomberg has over 800 categories available in its proprietary sector classifications system (“BB Sectors”), which are all available for exclusionary coding within our trade management system (Bloomberg AIM).
•
Example classifications include firearms and ammunition, private corrections, oil & gas, coal, tobacco, wine/spirits, brewery, night clubs, etc.

Using Sustainalytics Classifications
•
Sustainalytics has categorized each rated organization into one of over 40 industries and one of over 135 subindustries.
•
Example classifications include oil & gas, refiners & pipelines, energy services, tobacco, pharmaceuticals, paper/forestry, etc.

Option 3
Positive Screening / ESG Option
The client can require investment screening based on ESG Risk Rating metrics within its investment policy/mandate
For illustrative purposes only. Not a specific recommendation. Actual criteria may vary. SRI/ESG metrics as provided by Susta inalytics.

Please see important disclosures at the end of this presentation. 16 Sustainable Criteria Options
Limit Overall ESG
-
Related Risk
Select up to one

2. Universal Rating
Limit eligibility to
issuers with medium or
lower ESG Risk Ratings

3. Relative Rating
Issuers must rank within
top half of their
subindustry; rankings
are based on overall
ESG Risk Ratings of
issuers within the same
subindustry

1. Universal Rating
with Exception Rule
Issuers must have
medium or lower ESG
Risk Rating; high
-
ESG
Risk Rating issuers can
still be eligible if within
top 25
th
percentile of
subindustry

4. Universal & Relative
Rating Hybrid
All eligible issuers must
have a medium or lower
ESG Risk Rating and
score within the top half
of their subindustry
least restrictive
most restrictive
Notes on Sustainable Investing Options
17 •
The three options detailed herein are
not
mutually exclusive; the client can choose a
blend of all options if it wishes to do so.
•
Screenings only apply to credit issuers.
•
There is no additional fee associated with company
-
specific exclusions (option 1 as
defined in this document).
•
For adding SRI and/or ESG criteria, fees depend on a variety of factors —
including
the complexity of the criteria chosen
—
but are typically an additional 1
-
2 basis points
on total AUM (options 2 & 3).
•
If the client incorporates ESG Risk Rating metrics (option 3) within the parameters defined in its investment policy, PFMAM will also provide ESG -
specific updates and
portfolio reporting on a quarterly basis.
•
PFMAM does not recommend specific SRI or ESG criteria. Instead, we create rules -
based solutions for the client to implement the parameters defined in its investment policy/mandate.
•
Criteria is sourced from Sustainalytics, a Morningstar subsidiary, unless otherwise noted.

Please see important disclosures at the end of this presentation. 18 Our Perspectives
Align with Your
Goals
Philosophy
Approach
Preserve capital with high
-
quality investments
Plan for and provide liquidity as needed
Seek to increase earnings through disciplined portfolio strategy Portfolios are designed to match our clients’ specific investment needs.

We seek to achieve strong results by:

Understanding our clients’ investment objectives
Carefully matching maturities to the client’s cash flow needs Limiting investments to those of high quality
Selecting investments based on relative value
Utilizing low
-
risk portfolio management techniques to add value
1 2
3 4
5 Safety
Liquidity
Yield
Disclaimer
Disclosures
Indexes shown are not available for investment. The index data reference herein is the property of the index provider and/ or its licensors.

The index provider assumes no liability in connections with its use and does not sponsor, endorse or recommend the products o r services contained herein. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown.

The views expressed within this material constitute the perspective and judgment of U.S. Bancorp Asset Management, Inc. (USBAM) at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon current opinion as of the date of issue and are also subject to change. Opinions and data presented are not necessarily indicative of future events or expected performance. Information contained herein is based on d ata obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. No representation is made as to its accuracy or completeness.

Please remember you could lose money with this investment. Safety of principal is not guaranteed. Past performance does not guarantee future results. Individual account performance may be greater or less than performance of the composite.

USBAM claims compliance with Global Investment Performance Standards (GIPS®). “GIPS” is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. USBAM has been independently verified for the periods May 11, 2001 through December 31, 2024. Copies of verification reports are available upon request. To receive a copy of the firm’s composites, please email the firm’s Distribution Group at [email protected].

PFM Asset Management serves clients in the public sector and is a division of USBAM, which is the legal entity providing investment advisory services. USBAM is a registered investment adviser, a direct subsidiary of U.S. Bank National Association (U.S. Bank) and an indirect subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services, or performance of USBAM.

NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE 19 Disclosures
Disclaimer
Disclosures
This report contains information developed by Sustainalytics. Such information and data are proprietary of Sustainalytics and/or its third- party suppliers (Third Party Data) and are provided for informational purposes only. The use of the data does not constitute an endorsement of any product or project, nor investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose.

The use of their data is subject to their conditions. For more information visit http://www.sustainalytics.com/legal-disclaimer.

Although PFM Asset Management’s information providers, including without limitation, Sustainalytics, Inc. and its affiliates (the “ESG Parties”), obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accurate and/or completeness of any data herein. None of the ESG Parties make any express or implied warranties of any kind, and the ESG Parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to any data herein. None of the ESG Parties shall have any liability for any errors or omissions in connect with any data herein. Further, without limiting any of the foregoing, in no event shall any of the ESG Parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

There is a risk that the issuers selected to support client sustainable objectives may not perform as expected in addressing sustainability considerations or such performance may change over time, which could cause a client account to temporarily hold securities that are not in alignment with the account’s sustainable objectives. Further, there is a risk that information used to evaluate ESG criteria may not be readily available, complete or accurate, which could negatively impact an account’s ability to apply its sustainable objectives. In managing client's sustainability objectives, PFM Asset Management may rely on analysis and ratings provided by third parties in determining whether an issuer meets an account’s sustainability objectives. A client’s perception may differ from PFM Asset Management’s or a third party’s on how to judge an issuer’s adherence to client's guidelines.
20 ESG & Sustainability
Disclosures

9 Agenda Item #

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of June 23, 2026

TO: Honorable Mayor and Members of the City Council

SUBMITTED BY: Monserrat Cabral, Public Safety and Community Resources Department Director

REVIEWED BY: Ana Cortez, Acting City Manager

SUBJECT: Homekey+ Award Consideration of Acceptance or Declination of State Funding

RECOMMENDED ACTION

It is recommended that the City Council consider whether to accept State Funding related to the Homekey+ Project and either:

1. Adopt a Resolution accepting the Homekey+ award from the California Department of Housing and Community Development (HCD) and authorize the Acting City Manager to execute all agreements and documents necessary to implement the Homekey+ project, including the City's proposed financial participation; or

2. Adopt a Resolution declining the Homekey+ award and withdraw from further participation in the Homekey+ project prior to execution of binding agreements.

FISCAL IMPACT

If the City Council elects to accept the Homekey+ award and proceed with the project as proposed, the anticipated fiscal impacts to the City would include:

1. A one-time capital match contribution of $750,000. Consistent with the approved Homekey+ application and prior City Council authorization, the City identified a proposed $750,000 contribution to support acquisition and rehabilitation costs associated with the project. The proposed contribution is also reflected in the City's Five-Year Consolidated Plan and Annual Action Plan. Funding for this contribution is included in the proposed FY 2026/27 Housing Successor budget; and

Antioch City Council Report
June 23, 2026, 2026 Agenda Item #9 2

2. Potential ongoing operating subsidy commitments associated with project operations. The Homekey+ application and related project materials contemplate ongoing local operating support to assist with long- term project sustainability.

Current projections refl ected in the application assume operating assistance averaging approximately $1.2 million annually during the initial five- year period, with two additional five -year extension periods contemplated thereafter. If such funding levels were maintained over the full fifteen-year period, the total potential City contribution could be approximately $18.75 million, from the General Fund.

While acceptance of the Homekey+ award would authorize the initial capital contribution and project participation, any future operating subsidies would remain subject to annual budget appropriations, identification of available funding sources, and future City Council consideration and approval.

DISCUSSION

The California Department of Housing and Community Development (HCD) administers Homekey+ programs to provide funding of acquisition, rehabilitation, and development of permanent supportive housing (PSH) for individuals experiencing homelessness and behavioral health challenges.

On May 22, 2025, City Council adopted a resolution authorizing staff to submit a Homekey+ application in partnership with California Supportive Housing (CSH) for acquisition and rehabilitation of the Comfort Inn property located at 2436 Mahogany Way.

As part of the application, City Council authorized a contribution proposed as a grant to support acquisition and rehabilitation costs associated with the project. and approximately $1.2 million annually in operating assistance for an initial five-year period, subject to future appropriations and program requirements.

The proposed project, known as the CSH Mahogany Housing Project, would convert the existing hotel into approximately 84 to 85 units of permanent supportive housing with supportive services for eligible residents.

In May 2026, HCD announced an award of approximately $34.9 million in Homekey+ funding for the project. While the City was a co-applicant and recipient of the award, the City has not executed the Homekey+ Standard Agreement with HCD and has not formally accepted the grant funds. Accordingly, the City Council retains discretion to determine whether to proceed with or decline participation in the project and associated funding award.

The following options are presented for City Council consideration.

OPTION 1: Accept the Homekey+ award and authorize execution of the required agreements.

Antioch City Council Report
June 23, 2026, 2026 Agenda Item #9 3

Impacts to the City
• The City would enter into the Homekey+ Standard Agreement and related implementation agreements required by the California Department of Housing and Community Development (HCD).
• The City would be responsible for complying with applicable Homekey+ program requirements, including reporting, monitoring, and other obligations identified in the final agreements.
• The City would be required to enter into agreements necessary to implement the project, including agreements related to the City's proposed capital contribution and any approved operating support.

Financial Considerations

• The City would provide the proposed one-time capital contribution of $750,000, funded through Housing Successor resources, to support project acquisition and rehabilitation.
• The project application assumes ongoing operating assistance averaging approximately $1.2 million annually during the initial five-year period. Any future operating support would remain subject to City Council appropriations, approved agreements, and identification of available funding sources. • The City would receive the benefit of approximately $34.9 million in State Homekey+ funding for acquisition and rehabilitation of the project. • The City would assume ongoing administrative, monitoring, and compliance responsibilities associated with participation in the program.

OPTION 2: Decline the Homekey+ award and do not execute the Standard Agreement or related implementation agreements.

Impacts to the City
• Because the Homekey+ Standard Agreement has not been executed, the City currently has no contractual obligation to participate in the project. • The City would not assume the reporting, compliance, monitoring, or administrative responsibilities associated with the Homekey+ Program. • The City could experience reduced competitiveness for certain future discretionary housing funding opportunities.

Financial Considerations

• The City would not provide the proposed $750,000 capital contribution. • The City would not be responsible for any future operating support associated with the project.
• The City would forgo approximately $34.9 million in State Homekey+ funding awarded for the project.

Antioch City Council Report
June 23, 2026, 2026 Agenda Item #9 4

• The proposed conversion of the property into approximately 84–85 units of permanent supportive housing would not proceed under the current Homekey+ award.

ATTACHMENTS
Attachment A - Resolution accepting the Homekey+ award
Attachment B - Resolution declining the Homekey+ award

ATTACHMENT A
RESOLUTION NO. 2026/**

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANTIOCH ACCEPTING THE HOMEKEY+ AWARD FROM THE CALIFORNIA DEPARTMENT OF HOUSING

AND COMMUNITY DEVELOPMENT FOR THE CSH MAHOGANY HOUSING

PROJECT AND AUTHORIZING EXECUTION OF RELATED AGREEMENTS

WHEREAS, the California Department of Housing and Community Development ("HCD") administers the Homekey+ Program to support the acquisition, rehabilitation, and development of permanent supportive housing for individuals experiencing homelessness and behavioral health challenges; and

WHEREAS, on May 22, 2025, the City Council authorized submission of a Homekey+ application in partnership with California Supportive Housing ("CSH") for the acquisition and rehabilitation of the property located at 2436 Mahogany Way, Antioch, California; and

WHEREAS, HCD has awarded approximately $34.9 million in Homekey+ funding for the proposed CSH Mahogany Housing Project; and

WHEREAS, the City Council has reviewed the staff report and desires to accept the Homekey+ award and proceed with project implementation.

WHEREAS, the Homekey+ application included a proposed one- time capital contribution of $750,000 and contemplated future operating support, subject to future City Council appropriations and approvals;

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Antioch hereby accepts the Homekey+ award from HCD for the CSH Mahogany Housing Project, and authorizes the City Manager, or designee, to execute the Homekey+ Standard Agreement and any related documents, certifications, amendments, and agreements necessary to implement the project, subject to approval as to form by the City Attorney.

Any agreements relating to the City's proposed capital contribution or future operating subsidies shall be subject to separate City Council approval as required by law and City policy.

* * * * * * *

RESOLUTION NO. 2026/***
June 23, 2026

Page 2 ends

AYES:

NOES:

ABSTAIN:

ABSENT:

_____________________________________
MICHAEL J. MANDY

CITY CLERK OF THE CITY OF ANTIOCH

ATTACHMENT B

RESOLUTION NO. 2026/**

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANTIOCH DECLINING THE HOMEKEY+ AWARD FROM THE CALIFORNIA DEPARTMENT OF HOUSING

AND COMMUNITY DEVELOPMENT FOR THE CSH MAHOGANY HOUSING

PROJECT

WHEREAS, HCD has awarded approximately $34.9 million in Homekey+ funding for the proposed CSH Mahogany Housing Project; and

WHEREAS, the City has not executed the Homekey+ Standard Agreement and has not formally accepted the Homekey+ award; and

WHEREAS, the City Council has reviewed the staff report and determined not to proceed with participation in the Homekey+ Program.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Antioch hereby declines the Homekey+ award for the CSH Mahogany Housing Project, and shall not execute the Homekey+ Standard Agreement or related implementation agreements associated with the Homekey+ award, and authorizes the City Manager, or designee, is to notify HCD and all applicable project partners of the City's decision and to take any actions necessary to withdraw from further participation in the Homekey+ project.

* * * * * * *

RESOLUTION NO. 2026/***
June 23, 2026

Page 2 ends

AYES:

NOES:

ABSTAIN:

ABSENT:

_____________________________________
MICHAEL J. MANDY

CITY CLERK OF THE CITY OF ANTIOCH

Antioch City CouncilJune 23, 2026

Antioch City Council
June 23, 2026