Agenda packet, first session — Berkeley City Council, February 24, 2026 (part 3 of 3)

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Public
Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: http://www.cityofberkeley.info/manager

INFORMATION CALENDAR
FEBRUARY 24, 2026
A
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Henry Oyekanmi, Director, Finance Department Subject: FY 2025 Fourth Quarter Investment Report: Ended June 30, 2025

SUMMARY
The City’s investment policy requires that a quarterly investment report be submitted to the City Council on the status of the investment portfolio. The report includes all investments managed by the City of Berkeley and provides information on the types, values (par, book, and market), term, and yield of each security.  The return on pooled investments for the quarter ended June 30, 2025 was 3.03%, 124 basis points less than the 4.27% earned by the State Local Agency Investment Fund (State LAIF), which is the benchmark for investment performance used by the City. The returns earned on State LAIF’s portfolio are currently higher because it has a much shorter maturity than the City and current rates are much higher than the rates earned on investments that were in the City’s portfolio before the FEDs raised rates from 0%-.25%.

The return on pooled investments of 3.03% for the quarter ended June 30, 2025 was 2 basis points more than the rate of 3.01% earned in the quarter ended March 31, 2025.
 The average return on all Retiree Medical Trust Fund investments was 4.73% for the quarter ended June 30, 2025.

CURRENT SITUATION AND ITS EFFECTS
Attached is a summary of the quarterly report for fiscal year 2025 Fourth Quarter ending June 30, 2025 representing the status of the City’s investment portfolio. The report includes all investments managed by the City of Berkeley and provides information on the values (par, book, and market), term, and yield of each security.

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Investment Report: FY2025 4th Qtr INFORMATION CALENDAR Ended June 30, 2025 FEBRUARY 24, 2026

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Summary information by type of security and detailed information on each security is provided on Exhibit 2-A. An evaluation of portfolio performance for this accounting period compared to the previous three accounting periods is also included in Attachment 1.

A. Portfolio Results

1. Selection and Comparison of Results with Benchmarks
As a result of the differences in the investment policies of different cities, including responsible investing policies, maturity restrictions, investment restrictions, etc., it was difficult for the City of Berkeley to come up with a reasonable performance measure for pooled cash investments. In order to provide some measure of the relative performance of the City’s investment returns, many years ago the City established the State Local Agency Investment Fund (LAIF) as the performance measure to be reported in the quarterly investment reports, since many local governments invested significant portions of their investment portfolios in LAIF.

LAIF was intended to be a reference point to compare the City’s investment performance against, rather than a true performance measure, since most cities typically earn a yield higher than LAIF in normal interest rate environments, and because LAIF’s average maturity of its investments is normally shorter than that of most cities. As a result, past City Councilmembers requested that information about the rates earned by other California cities be included in the quarterly investment reports for comparison purposes, despite the differences in the investment policies of the various cities.

The most significant difference in investment policies is the maximum period of the investments. The impact of this difference between the various cities has played out in the interest rate environment since the FEDs unexpectedly raised short-term interest rates from zero percent to 5.5 percent from March 17, 2022 to July 26, 2023, to combat sharply rising inflation that the FEDs thought was “transitory” and under control:
 First, it is important to summarize the interest rate environment that existed in the quarter before the FEDs started raising the Federal Funds rate on March 17, 2022:

At that time, interest rates were around 1% and the interest rates earned by selected California cities ranged between .23% and 1.62%, with an average of .94%. Furthermore, the city that was at the top of the list back then is at the bottom of the list in the Fourth Quarter FY 2025 investment report because of a longer average maturity of its investments;
Since the FEDs thought the rise in inflation was “transitory”, there was no warning that FEDs monetary policy would immediately reverse from easing to tightening.

As a result, it is reasonable to assume that portfolios were loaded with investments that were yielding between 1-2%. In addition, the FEDs didn’t give the market any indication of how long or how high it would raise rates. It kept indicating that it felt the increase in inflation was “transitory”;

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Investment Report: FY2025 4th Qtr INFORMATION CALENDAR Ended June 30, 2025 FEBRUARY 24, 2026

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Bond prices and interest rates have an inverse relationship. When interest rates rise, bond prices fall and vice versa. As the FEDs started raising rates, the market values of the investments declined. If investments were sold at that time, the city selling would incur large investment losses, so the only reasonable option was to hold the investments to maturity, since the FEDs didn’t indicate how high it would raise rates.

Cities with investments yielding 1-2% rates have a short average investment maturity that are sooner than cities with longer average investment maturities. As a result, the former cities were able to reinvest at the current higher rates and have higher interest rates earned, while cities with longer average investment maturities had to wait for their low-yielding investments to mature to reinvest. For example, the City of Berkeley’s investment portfolio held $263.3 million (or 40.0% of the City’s portfolio at that time) of such investments that won’t mature until CY 2026- See Exhibit 2-F.

2. Liquidity of Portfolio:

The average investment in the pooled portfolio matures in 729 days as of June 30, 2025. This is 34 days less than the 763 maturity days as of March 31, 2025.

Comparison of Results to Performance Measures – Pooled investments:

Quarter Ended June 30, 2025

The City’s yield on investments for the quarter ended June 30, 2025 was 3.03%, an increase of 2 basis points (.02%) from the 3.01 earned during the quarter ended March 31, 2025. The average yield on a 91-day Treasury bill at the end of the quarter ended June 30, 2025 was 4.24%, a decrease of 5 basis points (0.05%) from the 4.29% at the end of the previous quarter.

As summarized in Table 1, staff’s overall results were under the performance measure for the quarter by 124 basis points. Staff’s performance was under the performance measure in April by approximately 120 basis points (-1.20%); under the performance measure in May by approximately 133 basis points (-1.33%); and, was under the performance measure in June by approximately 112 basis points (-

1.12%). The performance measure for the return on investments is compared to the rate of return of the State LAIF.

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Investment Report: FY2025 4th Qtr INFORMATION CALENDAR Ended June 30, 2025 FEBRUARY 24, 2026

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Table 1
For Quarter Ending June 30, 2025
Period City State LAIF Difference
Apr-25 3.08% 4.28% -1.20%
May-25 2.94% 4.27% -1.33%
June-25 3.15% 4.27% -1.12%
Apr 1-June 30

3.03% 4.27% -1.24%

3. Investment Results-Retiree Health Insurance Funds:

Average interest rates earned on the retiree health insurance trust funds for the quarter ended June 30, 2025 compared to the quarter ended March 31 2025, were as follows:

Table 2

EARNED INTEREST RATES
For Quarter Ended 6/30/2025 Compared To 3/31/2025
Trust Fund 3rd Qtr
3/31/25
4th Qtr
6/30/25
Retiree Medical Trust Fund (Misc Employees) 5.35% 5.35% Fire Retiree Medical Trust Fund 4.70% 4.96%
Police Retiree Medical Trust Fund 3.87% 3.87%
The rates earned on these plans are expected to stay about the same, as staff believes overall rates will remain close to current levels in the near future.

Details related to retiree health trust fund investments are in Attachment 3, Exhibits 3- A, 3-B, and 3-C of this report.

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Investment Report: FY2025 4th Qtr INFORMATION CALENDAR Ended June 30, 2025 FEBRUARY 24, 2026

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B. Discussion of Interest Rate Environment and Outlook
Yield Trend
Federal Reserve Board June 18, 2025 Statement
Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate.

In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective. In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Investment Environment and Change in City’s Investment Strategy A. Investment Environment
At the time of the period covered by this investment report, the investment environment was as follows:
 After the FEDs raised short-term rates from zero percent to 5.50 percent between March 17, 2022 and July 26, 2023, many market participants expected quick moves by the FEDs to lower rates and avoid a recession.  However, the FEDs was much more cautious. The Core Personal Consumption Expenditures (PCE) index (the Feds favored inflation index) had moved down significantly to 2.8% in June 2025 versus the feds goal of 2.0%, but it has been stuck at a level of 2.6%-2.8% for over a year and a half. Until the index moves to

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Investment Report: FY2025 4th Qtr INFORMATION CALENDAR Ended June 30, 2025 FEBRUARY 24, 2026

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the 2.0% goal and stays there for a period, the FEDs will be reluctant to meaningfully lower short-term rates.
 The FEDs was unsure of the impact President Trump’s tariffs would have on inflation but believes that they will increase inflation over the short-term, so the FEDs have more reason to be reluctant to lower short-term rates much under these circumstances.
 These actions would tend to cause the FEDs to stay in a holding pattern and keep short-term interest rates where they are until there is a clearer picture of the impact of the final tariffs imposed on inflation and the economy or unless the unemployment rate increases significantly. The FEDs knows that when the labor market turns, it turns quickly, so they want to make sure they are not stepping on the brakes of the economy at the same time the labor market has already slowed.

B. Significant Changes in the Investment Environment Since the Period of This Report
FEDs Actions:
 The rate cut made by the FEDs on September 17, 2025 came with a warning about the economy: The job market has stopped growing and needed a boost in the form of lower interest rates, despite the increase in inflation in the last few months. The inflation rate rose 2.9% over the 12 months to August, the fastest pace since January, and significantly above the FEDs target of 2%. However, the concern about the rise in inflation has now been eclipsed by the concern in the labor market.

The US reported small job gains in July and August 2025, and a loss of jobs in June-the first decline since 2020.

The market clearly expected another cut at the FEDs December meeting until the FEDs Chairman stated at the October 29 th. Meeting:” A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it, policy is not on a preset course.” However, the weakening of the labor market in November 2025 prompted the FEDs to lower short-term rates by another .25%, to 3 3/4 on December 10, 2025.

PCE for September 2025 was delayed due to the federal government shutdown, and was reported On December 5, 2025 at 2.8%- still range bound, significantly above the FEDs 2% target.

Labor Market Changes:

The labor market weakened significantly: The November 2025 labor report showed U.S. hiring slowed to 64,000 jobs added, and showed an increase in the unemployment rate from 4.40% in September to 4.60% in November. What made this shift more consequential is that it came after a long period in which unemployment had been hovering near multi-decades lows, even as growth

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cooled and interest rates stayed high. The move in the unemployment rate in November suggests that the labor market is no longer absorbing economic headwinds as easily as it did earlier.

Justin Wolfers, Professor of Economics at the University of Michigan indicated that “the gradual weakening of employment conditions is creating a largely overlooked crisis for America’s workers”, despite recent data indicating the labor market may be on slightly stronger footing in the summer. “Unemployment has been rising a tenth of a point here, a tenth of a point there, and “that feels small month to month, but it has added up month over month, and we’ve silently shifted from a very tight market towards a noticeably weaker one”
The unemployment rate is projected to be 4.5% in 2025 and drop to 4.4% in 2026.

Inflation Expectations:
 The September 2025 PCE index was reported on December 5, 2025. The September 2025 rate was 2.8% and Core PCE was 2.8%, in line with expectations, but significantly higher than the FEDs 2% target.
 PCE inflation is expected to be at 3% in 2025 and 2.6% in 2026. Core PCE is projected at 3.1% for 2025 and 2.6% in 2026.

Staff Expectations for Future FEDs Actions:
 Federal Reserve officials are divided on further interest rate cuts amid persistent inflation concerns. Some officials argue that the labor market is stable, so more rate cuts are unnecessary. Others argue that the FEDs risk a recession if they don’t move quickly with rate cuts. The FEDs will continue to be cautious about lowering short-term rates if there is weakness in the labor market.

 The FEDs will continue this caution to lower short-term rates if there is weakness in the labor market, even if inflation rises slightly instead of moving down to the FEDs 2% target.
 The U.S. Supreme Court indicated that it will decide whether President Trump’s novel use of an emergency powers law to impose worldwide tariffs is constitutional.

It held hearings in September 2025 and scheduled arguments by both sides two months after the hearings. This decision may have a significant impact on inflation expectations and determine how much more and how quickly the FEDs lower short-term rates in the near future.

C. Change in City Investment Strategy
After the FEDs changed to a looser monetary policy after July 26, 2023, the City’s investment strategy changed to extending the investment maturities of securities

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Investment Report: FY2025 4th Qtr INFORMATION CALENDAR Ended June 30, 2025 FEBRUARY 24, 2026

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purchased beyond three years and locking in rates, as much as practical.

However, as a result of projected future budget deficits, and in order to increase liquidity, Staff have temporarily stopped purchasing longer-term securities until 2026 when a substantial amount of securities earning between 1-2% mature.

Rates Earned by Berkeley and Other California Cities
On a short-term basis, the City’s earned rate is expected to be below the City’s benchmark (State LAIF) until FY 2026, when most of the securities earning less than 2 percent mature.

However, the City’s return is expected to be comparable to rates earned by other cities with a similar average maturity and lower than cities with a shorter average maturity in California. A sample of rates earned by Northern and Southern California cities is reflected in table 3 below (previously only Northern California cities were included):

Table 4
Other California Cities
Earned Interest Rates
For the Quarter Ending June 30, 2025
City Rates Earned
San Diego 4.27%
Oakland 4.03%
Hayward 4.02%
San Jose 3.80%
San Francisco 3.79%
Burbank 3.49%
Los Angeles 3.36%
Berkeley 3.03%
Sacramento 2.98%
Palo Alto 2.70 %

BACKGROUND
 Pooled Investments
Short-term cash is invested primarily in government sponsored enterprises (referred to as Federal Agency securities) notes, medium-term corporate notes and municipal securities for periods of one to ten years. Additional cash is invested in a money market fund or overnight securities to meet the liquidity needs of the City.

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Investment Report: FY2025 4th Qtr INFORMATION CALENDAR Ended June 30, 2025 FEBRUARY 24, 2026

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 Retiree Health Trust Fund Investments
The City agreed to provide retiree Health insurance coverage for fire, police and miscellaneous employees under certain terms and conditions. An actuarial study commissioned by the City many years ago determined that, in addition to City Contributions, an average rate of return of 7% on miscellaneous employees trust fund assets invested must be achieved to fund the retiree health benefit at the desired 70% level. Primarily because of the Federal Reserve Board’s decision to keep short-term rates near zero from 2008 to March 2022, the average rate currently earned is significantly below that 7% level. City Finance Department staff manages these investment portfolios.

ENVIRONMENTAL SUSTAINABILITY
There are no identifiable environmental effects or opportunities associated with the subject of this report.

CONTACT PERSON
Henry Oyekanmi, Director, Finance Department, 981-7326

ATTACHMENTS

1. Portfolio Evaluation FY 2025 Fourth Quarter

2. Investment Report Analysis FY 2025 Fourth Quarter
a. Exhibit 2-A: Pooled Cash and Investments
b. Exhibit 2-B.1 through 2-B.3: Interest Earnings April 1, 2025 – June 30, 2025 c. Exhibit 2-C: Book Value By Investment Type
d. Exhibit 2-D: Current Holdings vs. Policy Limits
e. Exhibit 2-E: Investment Portfolio Trend
f. Exhibit 2-F: Investments Yielding 2 Percent or Less Maturing in 2026 or 2027

3. Summary of Pooled and Cash Investments FY 2025 Fourth Quarter –Trust Funds a. Exhibit 3-A: Retiree Medical Trust Funds –Misc.
b. Exhibit 3-B: Retiree Medical Trust Funds –Fire
c. Exhibit 3-C: Retiree Medical Trust Funds –Police

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Attachment 1
Total Portfolio
Pooled Cash and Investments (COB) 693,922,102$ 647,948,111$ 649,832,348$ 609,358,155$ Pooled Cash and Investments (Trust) 58,221,801 58,585,989 57,695,193 58,122,162 Total Cash and Investments 752,143,903$ 706,534,100$ 707,527,541$ 667,480,317$ Average Life of Investment Portfolio
Pooled Investments (CoB) 729 763 835 911
Trust Investments 5.417 years 2.791 years 2.791 years 4.077 years Weighted Yield
Pooled Investments (CoB) 3.033% 3.007% 2.901% 3.156%
Trust Investments 4.728% 4.639% 4.285% 4.903%
Prime Rate 7.500% 7.500% 7.500% 8.000%
91-day Treasury Bill Rate 4.240% 4.294% 4.271% 4.618%
2-year Treasury Note Rate 3.777% 3.883% 4.243% 3.169%
Cash and Investments Maturity
Within one year 492,986,029$ 65.54% 255,293,610$ 36.13% 270,171,399$ 38.19% 192,996,379$ 28.91% Between 1 to 3 years 140,692,393 18.71% 333,278,343 47.17% 334,960,505 47.34% 346,026,863 51.84% Between 3 to 5 years 20,790,910 2.76% 20,608,600 2.92% 10,530,270 1.49% 30,946,760 4.64% Between 5 to 10 years 87,784,492 11.67% 81,503,566 11.54% 89,983,467 12.72% 92,995,803 13.93% Over 10 years 9,890,080 1.31% 15,849,980 2.24% 1,881,900 0.27% 4,514,512 0.68% Total 752,143,903$ 100.00% 706,534,100$ 100.00% 707,527,541$ 100.00% 667,480,317$ 100.00%

QUARTER ENDING
Portfolio Evaluation
Quarter Ended June 30, 2025
March 2025 December 2024 September 2024June 2025

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Attachment 2
Pension and OPEB
Investments Pooled Investments Trust Investments Total
Portfolio 469,765,467$ 58,565,695$ 528,331,162$ Unrecognized gain/(loss) (6,659,113) (1,735,524) (8,394,636) Total Investments 463,106,354 56,830,171 519,936,525 Cash Pooled Cash
Pension and OPEB
Trust Cash Total
Cash with Fidelity Money Market 37,081,094 - 37,081,094 Cash with Fiscal Agents 150 - 150 Cash Deposits in Banks 193,734,505 1,391,630 195,126,135 Total Cash 230,815,748 1,391,630 232,207,378 Adjusted Grand Total (All Cash and Investments) 693,922,102$ 58,221,801$ 752,143,903$ Pooled Cash Portfolio Breakdown As of June 30, 2025 Book Value Market Value Investments 469,765,467$ 463,106,354$
NOTE:

1. The pooled cash includes Rent Board cash of $10,879,232.62

2. The pooled cash does not include Section 115 cash of $5,807,227.87

3. The pooled cash does not include Fire Admin Training Building $10,500,000 cash in escrow Investment Report Analysis
As of June 30, 2025

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Exhibit 2-A
CUSIP Investment # Issuer Book Value Par Value Market Value Current
Rate
YTM/C
365
Maturity
Date
Days To
Maturity Moody's Rating
Medium Term Notes
88579YAR2 14659 3M COMPANY 4,994,767.40 5,000,000.00 4,988,200.00 3.000 4.120 08/07/2025 37 A3 233851CU6 14571 Daimler Finance 5,017,344.98 5,000,000.00 4,929,350.00 3.450 3.190 01/06/2027 554 A2 233851CU6 14574 Daimler Finance 3,747,558.28 3,725,000.00 3,672,365.75 3.450 3.000 01/06/2027 554 A2 24422EWK1 14663 John Deere Cap 4,990,118.62 5,000,000.00 5,010,450.00 4.150 4.250 09/15/2027 806 A1 375558BF9 14570 Gilead Sciences 5,015,872.30 5,000,000.00 4,975,000.00 3.650 3.118 03/01/2026 243 A3 30303M8G0 14660 Meta Platforms Inc 4,918,575.86 5,000,000.00 4,952,200.00 3.500 4.360 08/15/2027 775 AA3 617446HD4 14670 Morgan Stanley 10,637,184.37 10,000,000.00 11,508,900.00 7.250 6.000 04/01/2032 2466 A1 747525AU7 14587 Qualcomm Inc 6,046,374.01 5,963,000.00 5,887,687.31 3.250 2.435 05/20/2027 688 A2 07330MAA5 14588 Truist Bank 5,087,678.42 5,000,000.00 4,953,000.00 3.800 2.365 10/30/2026 486 A3 Subtotal and Average 50,455,474.24 49,688,000.00 50,877,153.06 3.898 930 Federal Agency Coupon Securities
3133ENN22 14664 Federal Farm Credit Bank 4,998,526.89 5,000,000.00 4,991,800.00 3.750 3.890 09/22/2025 83 AA1 3133ENP95 14666 Federal Farm Credit Bank 4,998,280.63 5,000,000.00 4,997,700.00 4.250 4.400 09/30/2025 91 AA1 3133ENS50 14667 Federal Farm Credit Bank 4,999,645.65 5,000,000.00 5,030,250.00 4.125 4.128 10/14/2027 835 AA1 3133ENN30 14668 Federal Farm Credit Bank 4,719,292.20 5,000,000.00 4,917,750.00 3.875 4.863 09/20/2032 2638 AA1 3133ENV72 14669 Federal Farm Credit Bank 4,995,202.12 5,000,000.00 5,024,950.00 4.500 4.600 07/27/2026 391 AA1 3133EPGG4 14686 Federal Farm Credit Bank 4,967,524.84 5,000,000.00 4,916,900.00 4.000 4.102 04/20/2033 2850 AA1 3133EPGS8 14687 Federal Farm Credit Bank 4,999,856.60 5,000,000.00 4,999,550.00 4.250 4.300 07/24/2025 23 AA1 3133EPPE9 14689 Federal Farm Credit Bank 4,992,260.65 5,000,000.00 5,027,250.00 4.375 4.540 07/06/2026 370 AA1 3133EPPF6 14690 Federal Farm Credit Bank 4,969,352.60 5,000,000.00 5,055,750.00 4.125 4.300 07/05/2029 1465 AA1 Subtotal and Average 44,639,942.18 45,000,000.00 44,961,900.00 4.344 959 Medium-Term Notes - Callable
22553PXJ3 14655 Credit Suisse AG 5,000,000.00 5,000,000.00 4,915,500.00 5.000 5.001 05/31/2032 2,526 AA2 751212AC5 14566 Ralph Lauren 5,005,876.76 5,000,000.00 4,983,400.00 3.750 3.190 09/15/2025 76 A3 857477CD3 14698 State Street Corp. 4,000,000.00 4,000,000.00 4,040,160.00 5.272 5.272 08/03/2026 398 AA3 91159HHU7 14562 US Bancorp 5,015,977.72 5,000,000.00 4,985,450.00 3.950 2.848 11/17/2025 139 A3 91159HHM5 14684 US Bancorp 4,916,146.85 5,000,000.00 4,949,500.00 3.100 5.348 04/27/2026 300 A3 91159HHW3 14693 US Bancorp 4,460,838.57 5,000,000.00 4,733,500.00 3.000 6.212 07/30/2029 1,490 A3 Subtotal and Average 28,398,839.90 29,000,000.00 28,607,510.00 4.590 824 Federal Agency Callable
3133EN6K1 14676 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,989,850.00 4.220 4.220 01/23/2030 1,667 AA1 3133EN6K1 14677 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,989,850.00 4.220 4.220 01/23/2030 1,667 AA1 3133EPAJ4 14679 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,887,400.00 4.000 4.000 02/09/2033 2,780 AA1 3130AULM4 14678 Federal Home Loan Banks 5,000,000.00 5,000,000.00 5,000,700.00 5.620 5.620 01/26/2033 2,766 AA1 20,000,000.00 20,000,000.00 19,867,800.00 4.515 2,220 Federal Agency Continuously Callable
31422XJW3 14638 Farmer Mac 10,000,000.00 10,000,000.00 9,744,700.00 1.500 0.300 07/20/2026 384 N/A 3133ENUV0 14644 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,848,800.00 4.000 4.000 04/19/2032 2,484 AA1 3133ENVV9 14647 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,960,650.00 3.630 3.630 05/03/2027 671 AA1 3133ENWW6 14653 Federal Farm Credit Bank 4,996,210.91 5,000,000.00 4,899,200.00 4.370 4.384 05/17/2032 2,512 AA1 City of Berkeley
Pooled Cash and Investments
As of June 30, 2025

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Exhibit 2-A
CUSIP Investment # Issuer Book Value Par Value Market Value Current
Rate
YTM/C
365
Maturity
Date
Days To
Maturity Moody's Rating
City of Berkeley
Pooled Cash and Investments
As of June 30, 2025
3133EPEK7 14682 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,995,400.00 4.620 4.620 04/03/2028 1,007 AA1 3133EPQT5 14695 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,995,750.00 5.650 5.292 07/25/2033 2,946 AA1 3130AMAV4 14611 Federal Home Loan Banks 5,600,000.00 5,600,000.00 5,348,952.00 1.250 1.125 04/29/2027 667 AA1 3130ALZA5 14612 Federal Home Loan Banks 9,000,000.00 9,000,000.00 8,905,140.00 3.000 0.500 04/29/2026 302 AA1 3130AMEX6 14613 Federal Home Loan Banks 15,000,000.00 15,000,000.00 14,799,300.00 2.500 1.023 05/27/2026 330 AA1 3130AMF72 14615 Federal Home Loan Banks 15,000,000.00 15,000,000.00 14,646,150.00 1.300 1.040 05/27/2026 330 AA1 3130AMFQ0 14616 Federal Home Loan Banks 15,000,000.00 15,000,000.00 14,627,400.00 1.150 1.020 05/26/2026 329 AA1 3130AMFT4 14617 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,759,700.00 1.250 1.000 05/27/2026 330 AA1 3130AMG22 14618 Federal Home Loan Banks 20,000,000.00 20,000,000.00 19,623,400.00 1.750 0.500 05/27/2026 330 AA1 3130AMGG1 14619 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,820,900.00 2.000 1.160 05/26/2026 329 AA1 3130AMFN7 14620 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,833,200.00 2.000 1.175 05/26/2026 329 AA1 3130AMG55 14622 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,556,600.00 1.375 1.219 05/27/2027 695 AA1 3130AMG22 14624 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,811,700.00 1.750 0.500 05/27/2026 330 AA1 3130AMLS9 14627 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,851,200.00 2.000 1.170 06/17/2026 351 AA1 3130AMN24 14628 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,745,700.00 1.150 1.034 06/03/2026 337 AA1 3130AMN57 14629 Federal Home Loan Banks 20,000,000.00 20,000,000.00 19,484,800.00 1.100 1.013 06/03/2026 337 AA1 3130AMP71 14630 Federal Home Loan Banks 20,000,000.00 20,000,000.00 19,479,600.00 1.200 1.077 06/18/2026 352 AA1 3130AMPL0 14631 Federal Home Loan Banks 15,000,000.00 15,000,000.00 14,613,300.00 1.150 0.375 06/08/2026 342 AA1 3130AMMW9 14632 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,762,500.00 1.500 0.500 06/10/2026 344 AA1 3130AMWM0 14634 Federal Home Loan Banks 4,250,000.00 4,250,000.00 4,130,277.50 1.050 0.500 06/30/2026 364 AA1 3130AN5U0 14642 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,778,400.00 1.750 0.500 07/29/2026 393 AA1 3130ANJY7 14643 Federal Home Loan Banks 40,000,000.00 40,000,000.00 38,678,400.00 1.000 0.400 08/26/2026 421 AA1 3130ARTE1 14645 Federal Home Loan Banks 6,425,000.00 6,425,000.00 6,211,561.50 4.100 4.100 04/26/2032 2,491 AA1 3130ARYA3 14651 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,971,350.00 4.000 4.000 05/26/2027 694 AA1 3130AS7K9 14654 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,886,650.00 4.440 4.440 05/26/2032 2,521 AA1 3134GXC28 14657 Federal Home Loan Mortgage Co 5,000,000.00 5,000,000.00 4,999,350.00 4.100 4.100 07/18/2025 17 AA1 325,271,210.91 325,275,000.00 317,770,031.00 1.281 564 Medium Term Notes Continuous Callable Bonds
06051GLG2 14688 Bank of America Corporation 1,000,000.00 1,000,000.00 1,021,960.00 5.202 5.202 04/25/2029 1,394 A1 Subtotal and Average 1,000,000.00 1,000,000.00 1,021,960.00 5.202 1,394 Total Investments and Average 469,765,467.23 469,963,000.00 463,106,354.06 2.200 729 Total Investments (Book Value) 469,765,467.23
Cash 230,815,748.00
Total Investments (Book Value) and Cash 700,581,215.23
Increase / (Decrease) in Market Value of Securities (6,659,113.17) Total Investments (Market Value) and Cash 693,922,102.06

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Pooled Investments Selected Funds
Interest Earnings
Exhibit 2-B.1
Sorted by Fund - Fund
April 1, 2025 - April 30, 2025
Yield on Average Book Value
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
10,000,000.0014619 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.672.028010 10,000,000.003130AMGG1 10,000,000.0014620 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.672.028010 10,000,000.003130AMFN7 5,000,000.0014648 5,000,000.00 3.000MC5 05/23/2025 12,500.00 0.00 12,500.003.042010 5,000,000.003130ARX71 5,000,000.0014651 5,000,000.00 4.000MC5 05/26/2027 16,666.67 0.00 16,666.674.056010 5,000,000.003130ARYA3 20,000,000.0014618 20,000,000.00 1.500MC5 05/27/2026 25,000.00 0.00 25,000.001.521010 20,000,000.003130AMG22 10,000,000.0014617 10,000,000.00 1.250MC5 05/27/2026 10,416.66 0.00 10,416.661.267010 10,000,000.003130AMFT4 5,000,000.0014654 5,000,000.00 4.440MC5 05/26/2032 18,500.00 0.00 18,500.004.502010 5,000,000.003130AS7K9 5,000,000.0014656 5,000,000.00 4.000MC5 06/30/2025 16,666.66 0.00 16,666.664.056010 5,000,000.003130ASGF0 6,425,000.0014645 6,425,000.00 4.100MC5 04/26/2032 21,952.08 0.00 21,952.084.157010 6,425,000.003130ARTE1 10,000,000.0014622 10,000,000.00 1.375MC5 05/27/2027 11,458.33 0.00 11,458.331.394010 10,000,000.003130AMG55 10,000,000.0014632 10,000,000.00 1.500MC5 06/10/2026 12,500.00 0.00 12,500.001.521010 10,000,000.003130AMMW9 20,000,000.0014630 20,000,000.00 1.200MC5 06/18/2026 20,000.00 0.00 20,000.001.217010 20,000,000.003130AMP71 20,000,000.0014629 20,000,000.00 1.100MC5 06/03/2026 18,333.33 0.00 18,333.331.115010 20,000,000.003130AMN57 10,000,000.0014627 10,000,000.00 1.500MC5 06/17/2026 12,500.00 0.00 12,500.001.521010 10,000,000.003130AMLS9 10,000,000.0014628 10,000,000.00 1.150MC5 06/03/2026 9,583.34 0.00 9,583.341.166010 10,000,000.003130AMN24 40,000,000.0014643 40,000,000.00 1.000MC5 08/26/2026 33,333.33 0.00 33,333.331.014010 40,000,000.003130ANJY7 10,000,000.0014642 10,000,000.00 1.750MC5 07/29/2026 14,583.33 0.00 14,583.331.774010 10,000,000.003130AN5U0 15,000,000.0014631 15,000,000.00 1.150MC5 06/08/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMPL0 4,250,000.0014634 4,250,000.00 1.050MC5 06/30/2026 3,718.75 0.00 3,718.751.065010 4,250,000.003130AMWM0 15,000,000.0014616 15,000,000.00 1.150MC5 05/26/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMFQ0 5,000,000.0014678 5,000,000.00 5.620MC4 01/26/2033 23,416.67 0.00 23,416.675.698010 5,000,000.003130AULM4 5,600,000.0014611 5,600,000.00 1.250MC5 04/29/2027 5,833.33 0.00 5,833.331.267010 5,600,000.003130AMAV4 10,000,000.0014624 10,000,000.00 1.500MC5 05/27/2026 12,500.00 0.00 12,500.001.521010 10,000,000.003130AMG22 15,000,000.0014613 15,000,000.00 1.750MC5 05/27/2026 21,875.00 0.00 21,875.001.774010 15,000,000.003130AMEX6 9,000,000.0014612 9,000,000.00 3.000MC5 04/29/2026 15,500.00 0.00 15,500.002.095010 9,000,000.003130ALZA5 15,000,000.0014615 15,000,000.00 1.300MC5 05/27/2026 16,250.00 0.00 16,250.001.318010 15,000,000.003130AMF72 5,000,000.0014682 5,000,000.00 4.620MC5 04/03/2028 19,250.00 0.00 19,250.004.684010 5,000,000.003133EPEK7 5,000,000.0014677 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.279010 5,000,000.003133EN6K1 5,000,000.0014679 5,000,000.00 4.000MC4 02/09/2033 16,666.67 0.00 16,666.674.056010 5,000,000.003133EPAJ4 4,966,663.5414686 5,000,000.00 4.000FAC 04/20/2033 16,666.67 346.83 17,013.504.168010 4,966,484.343133EPGG4 4,999,392.1314687 5,000,000.00 4.250FAC 07/24/2025 17,708.33 187.04 17,895.374.355010 4,999,295.493133EPGS8 5,000,000.0014695 5,000,000.00 5.650MC5 07/25/2033 23,541.66 0.00 23,541.665.728010 5,000,000.003133EPQT5

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0.0014559 0.00 3.375MUN 04/01/2025 0.00 0.00 0.00010 5,000,000.0013063DGB8 5,024,730.2314562 5,000,000.00 3.950MC3 11/17/2025 16,458.33 -3,524.50 12,933.833.132010 5,026,551.2291159HHU7 4,433,495.1214693 5,000,000.00 3.000MC3 07/30/2029 12,500.00 11,010.78 23,510.786.452010 4,427,806.2291159HHW3 4,895,041.9214684 5,000,000.00 3.100MC3 04/27/2026 12,916.66 8,498.63 21,415.295.323010 4,890,650.9691159HHM5 5,004,078.0414563 5,000,000.00 3.375MTN 08/15/2025 14,062.50 -1,032.42 13,030.083.168010 5,004,611.4620030NBN0 6,055,521.8214587 5,963,000.00 3.250MTN 05/20/2027 16,149.79 -3,683.69 12,466.102.505010 6,057,425.06747525AU7 5,011,793.2214566 5,000,000.00 3.750MC3 09/15/2025 15,625.00 -2,382.47 13,242.533.215010 5,013,024.16751212AC5 5,020,799.3214570 5,000,000.00 3.650MTN 03/01/2026 15,208.34 -1,984.04 13,224.303.205010 5,021,824.41375558BF9 3,750,641.9314574 3,725,000.00 3.450MTN 01/06/2027 10,709.37 -1,241.74 9,467.633.071010 3,751,283.50233851CU6 5,019,716.0014571 5,000,000.00 3.450MTN 01/06/2027 14,375.00 -954.77 13,420.233.253010 5,020,209.29233851CU6 5,101,315.2514588 5,000,000.00 3.800MTN 10/30/2026 15,833.34 -5,491.35 10,341.992.467010 5,104,152.4507330MAA5 5,000,000.0014652 5,000,000.00 4.050MC3 05/25/2025 16,875.00 0.00 16,875.004.106010 5,000,000.0022553PWD7 5,000,000.0014655 5,000,000.00 5.000MC3 05/31/2032 20,380.43 0.00 20,380.434.959010 5,000,000.0022553PXJ3 4,983,938.8314659 5,000,000.00 3.000MTN 08/07/2025 12,500.00 4,360.49 16,860.494.116010 4,981,685.9188579YAR2 4,910,635.9414660 5,000,000.00 3.500MTN 08/15/2027 14,583.33 3,197.28 17,780.614.405010 4,908,984.0130303M8G0 4,000,000.0014698 4,000,000.00 5.272MC3 08/03/2026 17,573.33 0.00 17,573.335.345010 4,000,000.00857477CD3 489,963,000.00Subtotal 494,419,038.95 2.633 1,070,319.645,882.851,064,436.79499,749,332.80 Fund: Wells Fargo MM- Regular
164,805,706.4714701 188,283,858.72RRP 564,391.39 0.00 564,391.394.167025 129,372,554.71SYS14701 188,283,858.72Subtotal 164,805,706.47 4.167 564,391.390.00564,391.39129,372,554.71

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Pooled Investments Selected Funds
Interest Earnings
Exhibit 2-B.2
(510)981-7335
Sorted by Fund - Fund
May 1, 2025 - May 31, 2025
Yield on Average Book Value
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
10,000,000.0014619 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.671.962010 10,000,000.003130AMGG1 10,000,000.0014620 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.671.962010 10,000,000.003130AMFN7 3,548,387.1014648 0.00 3.000MC5 05/23/2025 9,166.67 0.00 9,166.673.042010 5,000,000.003130ARX71 5,000,000.0014651 5,000,000.00 4.000MC5 05/26/2027 16,666.67 0.00 16,666.673.925010 5,000,000.003130ARYA3 20,000,000.0014618 20,000,000.00 1.750MC5 05/27/2026 25,555.56 0.00 25,555.561.504010 20,000,000.003130AMG22 10,000,000.0014617 10,000,000.00 1.250MC5 05/27/2026 10,416.67 0.00 10,416.671.226010 10,000,000.003130AMFT4 5,000,000.0014654 5,000,000.00 4.440MC5 05/26/2032 18,500.00 0.00 18,500.004.356010 5,000,000.003130AS7K9 5,000,000.0014656 5,000,000.00 4.000MC5 06/30/2025 16,666.67 0.00 16,666.673.925010 5,000,000.003130ASGF0 6,425,000.0014645 6,425,000.00 4.100MC5 04/26/2032 21,952.08 0.00 21,952.084.023010 6,425,000.003130ARTE1 10,000,000.0014622 10,000,000.00 1.375MC5 05/27/2027 11,458.34 0.00 11,458.341.349010 10,000,000.003130AMG55 10,000,000.0014632 10,000,000.00 1.500MC5 06/10/2026 12,500.00 0.00 12,500.001.472010 10,000,000.003130AMMW9 20,000,000.0014630 20,000,000.00 1.200MC5 06/18/2026 20,000.00 0.00 20,000.001.177010 20,000,000.003130AMP71 20,000,000.0014629 20,000,000.00 1.100MC5 06/03/2026 18,333.34 0.00 18,333.341.079010 20,000,000.003130AMN57 10,000,000.0014627 10,000,000.00 1.500MC5 06/17/2026 12,500.00 0.00 12,500.001.472010 10,000,000.003130AMLS9 10,000,000.0014628 10,000,000.00 1.150MC5 06/03/2026 9,583.33 0.00 9,583.331.128010 10,000,000.003130AMN24 40,000,000.0014643 40,000,000.00 1.000MC5 08/26/2026 33,333.34 0.00 33,333.340.981010 40,000,000.003130ANJY7 10,000,000.0014642 10,000,000.00 1.750MC5 07/29/2026 14,583.34 0.00 14,583.341.717010 10,000,000.003130AN5U0 15,000,000.0014631 15,000,000.00 1.150MC5 06/08/2026 14,375.00 0.00 14,375.001.128010 15,000,000.003130AMPL0 4,250,000.0014634 4,250,000.00 1.050MC5 06/30/2026 3,718.75 0.00 3,718.751.030010 4,250,000.003130AMWM0 15,000,000.0014616 15,000,000.00 1.150MC5 05/26/2026 14,375.00 0.00 14,375.001.128010 15,000,000.003130AMFQ0 5,000,000.0014678 5,000,000.00 5.620MC4 01/26/2033 23,416.66 0.00 23,416.665.514010 5,000,000.003130AULM4 5,600,000.0014611 5,600,000.00 1.250MC5 04/29/2027 5,833.33 0.00 5,833.331.226010 5,600,000.003130AMAV4 10,000,000.0014624 10,000,000.00 1.750MC5 05/27/2026 -62,222.23 0.00 -62,222.23-7.326010 10,000,000.003130AMG22 15,000,000.0014613 15,000,000.00 2.500MC5 05/27/2026 23,125.00 0.00 23,125.001.815010 15,000,000.003130AMEX6 9,000,000.0014612 9,000,000.00 3.000MC5 04/29/2026 22,500.00 0.00 22,500.002.944010 9,000,000.003130ALZA5 15,000,000.0014615 15,000,000.00 1.300MC5 05/27/2026 16,250.00 0.00 16,250.001.276010 15,000,000.003130AMF72 5,000,000.0014682 5,000,000.00 4.620MC5 04/03/2028 19,250.00 0.00 19,250.004.533010 5,000,000.003133EPEK7 5,000,000.0014677 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.141010 5,000,000.003133EN6K1 5,000,000.0014679 5,000,000.00 4.000MC4 02/09/2033 16,666.66 0.00 16,666.663.925010 5,000,000.003133EPAJ4 4,967,015.7814686 5,000,000.00 4.000FAC 04/20/2033 16,666.67 346.84 17,013.514.033010 4,966,831.173133EPGG4 4,999,582.0814687 5,000,000.00 4.250FAC 07/24/2025 17,708.34 187.04 17,895.384.214010 4,999,482.533133EPGS8 5,000,000.0014695 5,000,000.00 5.650MC5 07/25/2033 23,541.67 0.00 23,541.675.544010 5,000,000.003133EPQT5

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Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.2
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
May 1, 2025 - May 31, 2025
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,991,327.0014689 5,000,000.00 4.375FAC 07/06/2026 18,229.17 636.11 18,865.284.450010 4,990,988.433133EPPE9 4,968,418.0614690 5,000,000.00 4.125FAC 07/05/2029 17,187.50 636.72 17,824.224.224010 4,968,079.163133EPPF6 5,000,000.0014676 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.141010 5,000,000.003133EN6K1 4,996,143.5214653 5,000,000.00 4.370MC5 05/17/2032 18,208.33 45.91 18,254.244.302010 4,996,119.093133ENWW6 5,000,000.0014647 5,000,000.00 3.630MC5 05/03/2027 15,125.00 0.00 15,125.003.562010 5,000,000.003133ENVV9 4,997,726.1014664 5,000,000.00 3.750FAC 09/22/2025 15,625.00 545.60 16,170.603.810010 4,997,435.703133ENN22 4,997,429.3514666 5,000,000.00 4.250FAC 09/30/2025 17,708.33 579.56 18,287.894.309010 4,997,121.503133ENP95 4,994,654.8114669 5,000,000.00 4.500FAC 07/27/2026 18,750.00 372.90 19,122.904.508010 4,994,456.333133ENV72 4,999,626.6914667 5,000,000.00 4.125FAC 10/14/2027 17,187.50 12.92 17,200.424.051010 4,999,619.823133ENS50 4,714,536.4514668 5,000,000.00 3.875FAC 09/20/2032 16,145.84 3,240.19 19,386.034.842010 4,712,811.833133ENN30 5,000,000.0014644 5,000,000.00 4.000MC5 04/19/2032 16,666.66 0.00 16,666.663.925010 5,000,000.003133ENUV0 5,000,000.0014657 5,000,000.00 4.100MC5 07/18/2025 17,083.33 0.00 17,083.334.023010 5,000,000.003134GXC28 10,648,730.3314670 10,000,000.00 7.250MTN 04/01/2032 60,416.66 -7,866.47 52,550.195.810010 10,652,917.32617446HD4 1,000,000.0014688 1,000,000.00 5.202MC6 04/25/2029 4,335.00 0.00 4,335.005.104010 1,000,000.0006051GLG2 10,000,000.0014638 10,000,000.00 1.500MC5 07/20/2026 12,500.00 0.00 12,500.001.472010 10,000,000.0031422XJW3 4,989,570.6414663 5,000,000.00 4.150MTN 09/15/2027 17,291.67 373.35 17,665.024.169010 4,989,371.9224422EWK1 5,021,150.7814562 5,000,000.00 3.950MC3 11/17/2025 16,458.34 -3,524.50 12,933.843.033010 5,023,026.7291159HHU7 4,444,665.7414693 5,000,000.00 3.000MC3 07/30/2029 12,500.00 11,010.79 23,510.796.228010 4,438,817.0091159HHW3 4,903,673.0514684 5,000,000.00 3.100MC3 04/27/2026 12,916.67 8,498.63 21,415.305.142010 4,899,149.5991159HHM5 5,003,029.5314563 5,000,000.00 3.375MTN 08/15/2025 14,062.50 -1,032.41 13,030.093.067010 5,003,579.0420030NBN0 6,051,780.7014587 5,963,000.00 3.250MTN 05/20/2027 16,149.79 -3,683.68 12,466.112.425010 6,053,741.37747525AU7 5,009,373.6014566 5,000,000.00 3.750MC3 09/15/2025 15,625.00 -2,382.47 13,242.533.113010 5,010,641.69751212AC5 5,018,784.3514570 5,000,000.00 3.650MTN 03/01/2026 15,208.33 -1,984.04 13,224.293.102010 5,019,840.37375558BF9 3,749,380.8314574 3,725,000.00 3.450MTN 01/06/2027 10,709.38 -1,241.74 9,467.642.973010 3,750,041.76233851CU6 5,018,746.3414571 5,000,000.00 3.450MTN 01/06/2027 14,375.00 -954.77 13,420.233.148010 5,019,254.52233851CU6 5,095,744.2014588 5,000,000.00 3.800MTN 10/30/2026 15,833.33 -5,491.34 10,341.992.390010 5,098,661.1007330MAA5 3,870,967.7414652 0.00 4.050MC3 05/25/2025 13,500.00 0.00 13,500.004.106010 5,000,000.0022553PWD7 5,000,000.0014655 5,000,000.00 5.000MC3 05/31/2032 20,395.53 0.00 20,395.534.803010 5,000,000.0022553PXJ3 4,988,367.3114659 5,000,000.00 3.000MTN 08/07/2025 12,500.00 4,360.50 16,860.503.980010 4,986,046.4088579YAR2 4,913,883.0714660 5,000,000.00 3.500MTN 08/15/2027 14,583.33 3,197.29 17,780.624.260010 4,912,181.2930303M8G0 4,000,000.0014698 4,000,000.00 5.272MC3 08/03/2026 17,573.34 0.00 17,573.345.173010 4,000,000.00857477CD3 479,963,000.00Subtotal 487,177,695.17 2.382 985,654.325,882.93979,771.39489,755,215.65 Fund: Wells Fargo MM- Regular
182,987,147.8414701 190,591,354.04RRP 644,712.49 0.00 644,712.494.148025 188,283,858.72SYS14701 190,591,354.04Subtotal 182,987,147.84 4.148 644,712.490.00644,712.49188,283,858.72 Fund: Fidelity MM - Regular
36,824,838.8914265 36,952,760.94 0.003RRP 132,186.12 0.00 132,186.124.226040 36,820,574.82SYS14265

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Pooled Investments Selected Funds
Interest Earnings
Exhibit 2-B.3
Sorted by Fund - Fund
June 1, 2025 - June 30, 2025
Yield on Average Book Value
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
10,000,000.0014619 10,000,000.00 2.000MC5 05/26/2026 16,666.66 0.00 16,666.662.028010 10,000,000.003130AMGG1 10,000,000.0014620 10,000,000.00 2.000MC5 05/26/2026 16,666.66 0.00 16,666.662.028010 10,000,000.003130AMFN7 5,000,000.0014651 5,000,000.00 4.000MC5 05/26/2027 16,666.66 0.00 16,666.664.056010 5,000,000.003130ARYA3 20,000,000.0014618 20,000,000.00 1.750MC5 05/27/2026 29,166.67 0.00 29,166.671.774010 20,000,000.003130AMG22 10,000,000.0014617 10,000,000.00 1.250MC5 05/27/2026 10,416.67 0.00 10,416.671.267010 10,000,000.003130AMFT4 5,000,000.0014654 5,000,000.00 4.440MC5 05/26/2032 18,500.00 0.00 18,500.004.502010 5,000,000.003130AS7K9 4,833,333.3314656 0.00 4.000MC5 06/30/2025 16,111.11 0.00 16,111.114.056010 5,000,000.003130ASGF0 6,425,000.0014645 6,425,000.00 4.100MC5 04/26/2032 21,952.09 0.00 21,952.094.157010 6,425,000.003130ARTE1 10,000,000.0014622 10,000,000.00 1.375MC5 05/27/2027 11,458.33 0.00 11,458.331.394010 10,000,000.003130AMG55 10,000,000.0014632 10,000,000.00 1.500MC5 06/10/2026 12,500.00 0.00 12,500.001.521010 10,000,000.003130AMMW9 20,000,000.0014630 20,000,000.00 1.200MC5 06/18/2026 20,000.00 0.00 20,000.001.217010 20,000,000.003130AMP71 20,000,000.0014629 20,000,000.00 1.100MC5 06/03/2026 18,333.33 0.00 18,333.331.115010 20,000,000.003130AMN57 10,000,000.0014627 10,000,000.00 2.000MC5 06/17/2026 14,444.45 0.00 14,444.451.757010 10,000,000.003130AMLS9 10,000,000.0014628 10,000,000.00 1.150MC5 06/03/2026 9,583.33 0.00 9,583.331.166010 10,000,000.003130AMN24 40,000,000.0014643 40,000,000.00 1.000MC5 08/26/2026 33,333.33 0.00 33,333.331.014010 40,000,000.003130ANJY7 10,000,000.0014642 10,000,000.00 1.750MC5 07/29/2026 14,583.33 0.00 14,583.331.774010 10,000,000.003130AN5U0 15,000,000.0014631 15,000,000.00 1.150MC5 06/08/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMPL0 4,250,000.0014634 4,250,000.00 1.050MC5 06/30/2026 3,718.75 0.00 3,718.751.065010 4,250,000.003130AMWM0 15,000,000.0014616 15,000,000.00 1.150MC5 05/26/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMFQ0 5,000,000.0014678 5,000,000.00 5.620MC4 01/26/2033 23,416.67 0.00 23,416.675.698010 5,000,000.003130AULM4 5,600,000.0014611 5,600,000.00 1.250MC5 04/29/2027 5,833.34 0.00 5,833.341.267010 5,600,000.003130AMAV4 10,000,000.0014624 10,000,000.00 1.750MC5 05/27/2026 14,583.34 0.00 14,583.341.774010 10,000,000.003130AMG22 15,000,000.0014613 15,000,000.00 2.500MC5 05/27/2026 31,250.00 0.00 31,250.002.535010 15,000,000.003130AMEX6 9,000,000.0014612 9,000,000.00 3.000MC5 04/29/2026 22,500.00 0.00 22,500.003.042010 9,000,000.003130ALZA5 15,000,000.0014615 15,000,000.00 1.300MC5 05/27/2026 16,250.00 0.00 16,250.001.318010 15,000,000.003130AMF72 5,000,000.0014682 5,000,000.00 4.620MC5 04/03/2028 19,250.00 0.00 19,250.004.684010 5,000,000.003133EPEK7 5,000,000.0014677 5,000,000.00 4.220MC4 01/23/2030 17,583.34 0.00 17,583.344.279010 5,000,000.003133EN6K1 5,000,000.0014679 5,000,000.00 4.000MC4 02/09/2033 16,666.67 0.00 16,666.674.056010 5,000,000.003133EPAJ4 4,967,357.2014686 5,000,000.00 4.000FAC 04/20/2033 16,666.66 346.83 17,013.494.167010 4,967,178.013133EPGG4 4,999,766.2014687 5,000,000.00 4.250FAC 07/24/2025 17,708.33 187.03 17,895.364.355010 4,999,669.573133EPGS8 5,000,000.0014695 5,000,000.00 5.650MC5 07/25/2033 23,541.67 0.00 23,541.675.728010 5,000,000.003133EPQT5 4,991,953.1914689 5,000,000.00 4.375FAC 07/06/2026 18,229.17 636.11 18,865.284.598010 4,991,624.543133EPPE9

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Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.3
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
June 1, 2025 - June 30, 2025
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,969,044.8514690 5,000,000.00 4.125FAC 07/05/2029 17,187.50 636.72 17,824.224.364010 4,968,715.883133EPPF6 5,000,000.0014676 5,000,000.00 4.220MC4 01/23/2030 17,583.34 0.00 17,583.344.279010 5,000,000.003133EN6K1 4,996,188.7214653 5,000,000.00 4.370MC5 05/17/2032 18,208.34 45.91 18,254.254.445010 4,996,165.003133ENWW6 5,000,000.0014647 5,000,000.00 3.630MC5 05/03/2027 15,125.00 0.00 15,125.003.680010 5,000,000.003133ENVV9 4,998,263.1914664 5,000,000.00 3.750FAC 09/22/2025 15,625.00 545.59 16,170.593.936010 4,997,981.303133ENN22 4,998,000.5014666 5,000,000.00 4.250FAC 09/30/2025 17,708.34 579.57 18,287.914.452010 4,997,701.063133ENP95 4,995,021.8914669 5,000,000.00 4.500FAC 07/27/2026 18,750.00 372.89 19,122.894.658010 4,994,829.233133ENV72 4,999,639.4114667 5,000,000.00 4.125FAC 10/14/2027 17,187.50 12.91 17,200.414.186010 4,999,632.743133ENS50 4,717,726.1114668 5,000,000.00 3.875FAC 09/20/2032 16,145.83 3,240.18 19,386.015.000010 4,716,052.023133ENN30 5,000,000.0014644 5,000,000.00 4.000MC5 04/19/2032 16,666.67 0.00 16,666.674.056010 5,000,000.003133ENUV0 5,000,000.0014657 5,000,000.00 4.100MC5 07/18/2025 17,083.33 0.00 17,083.334.157010 5,000,000.003134GXC28 10,640,986.5014670 10,000,000.00 7.250MTN 04/01/2032 60,416.67 -7,866.48 52,550.196.008010 10,645,050.85617446HD4 1,000,000.0014688 1,000,000.00 5.202MC6 04/25/2029 4,335.00 0.00 4,335.005.274010 1,000,000.0006051GLG2 10,000,000.0014638 10,000,000.00 1.500MC5 07/20/2026 12,500.00 0.00 12,500.001.521010 10,000,000.0031422XJW3 4,989,938.1714663 5,000,000.00 4.150MTN 09/15/2027 17,291.66 373.35 17,665.014.307010 4,989,745.2724422EWK1 5,017,681.2314562 5,000,000.00 3.950MC3 11/17/2025 16,458.33 -3,524.50 12,933.833.136010 5,019,502.2291159HHU7 4,455,516.6914693 5,000,000.00 3.000MC3 07/30/2029 12,500.00 11,010.78 23,510.786.420010 4,449,827.7991159HHW3 4,912,039.1814684 5,000,000.00 3.100MC3 04/27/2026 12,916.67 8,498.63 21,415.305.304010 4,907,648.2291159HHM5 666,994.7514563 0.00 3.375MTN 08/15/2025 1,875.00 -137.66 1,737.343.169010 5,002,546.6320030NBN0 6,048,154.4514587 5,963,000.00 3.250MTN 05/20/2027 16,149.79 -3,683.68 12,466.112.508010 6,050,057.69747525AU7 5,007,028.2814566 5,000,000.00 3.750MC3 09/15/2025 15,625.00 -2,382.46 13,242.543.218010 5,008,259.22751212AC5 5,016,831.2514570 5,000,000.00 3.650MTN 03/01/2026 15,208.33 -1,984.03 13,224.303.207010 5,017,856.33375558BF9 3,748,158.4514574 3,725,000.00 3.450MTN 01/06/2027 10,709.37 -1,241.74 9,467.633.073010 3,748,800.02233851CU6 5,017,806.4614571 5,000,000.00 3.450MTN 01/06/2027 14,375.00 -954.77 13,420.233.254010 5,018,299.75233851CU6 5,090,332.5714588 5,000,000.00 3.800MTN 10/30/2026 15,833.33 -5,491.34 10,341.992.472010 5,093,169.7607330MAA5 5,000,000.0014655 5,000,000.00 5.000MC3 05/31/2032 20,833.34 0.00 20,833.345.069010 5,000,000.0022553PXJ3 4,992,659.8314659 5,000,000.00 3.000MTN 08/07/2025 12,500.00 4,360.50 16,860.504.109010 4,990,406.9088579YAR2 4,917,030.5014660 5,000,000.00 3.500MTN 08/15/2027 14,583.34 3,197.28 17,780.624.400010 4,915,378.5830303M8G0 4,000,000.0014698 4,000,000.00 5.272MC3 08/03/2026 17,573.33 0.00 17,573.335.345010 4,000,000.00857477CD3 469,963,000.00Subtotal 475,262,452.91 2.668 1,042,063.196,777.621,035,285.57479,761,098.58 Fund: Wells Fargo MM- Regular
189,294,993.7014701 191,769,017.53RRP 646,152.55 0.00 646,152.554.153025 190,591,354.04SYS14701 191,769,017.53Subtotal 189,294,993.70 4.153 646,152.550.00646,152.55190,591,354.04 Fund: Fidelity MM - Regular
36,957,038.7014265 37,081,093.68 0.003RRP 128,332.74 0.00 128,332.744.225040 36,952,760.94SYS14265 37,081,093.68Subtotal 36,957,038.70 4.225 128,332.740.00128,332.7436,952,760.94

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Exhibit 2-C
Medium Term Notes
$80,506,623 11.6%
Federal Agency
$382,599,731 55.1%
Bank and Money Market
Account $230,815,748

33.3%
Pooled Cash and Investments
(Market Value)
as of June 30, 2025

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Exhibit 2-D
$230,815,748
$80,506,623
$382,599,731
$693,922,103
$208,176,631
$693,922,103

BANK ACCOUNTS

MEDIUM TERM NOTES

FEDERAL AGENCY BONDS
City of Berkeley
Current Holdings vs. Policy Limits
as of June 30, 2025
Policy Limits
Current Holdings

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-
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Investment Value
Pooled and Trust
Cash and Investment Portfolio Trend
as of June 30, 2025

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Exhibit 2-F
Investments Yielding 2 Percent or Less Maturing in 2026 or 2027 Investment Investment Interest Maturity
Number Par Value Rate Date
14619 10,000,000 2.00% 05/26/2026
14620 10,000,000 2.00% 05/26/2026
14618 20,000,000 1.25% 05/27/2026
14622 10,000,000 1.38% 05/27/2026
14632 10,000,000 1.50% 06/10/2026
14630 20,000,000 1.20% 06/18/2026
14629 20,000,000 1.10% 06/02/2026
14627 10,000,000 1.30% 06/17/2026
14628 10,000,000 1.15% 06/03/2026
14643 40,000,000 1.00% 08/26/2026
14642 10,000,000 1.75% 07/29/2026
14631 15,000,000 1.15% 06/08/2026
14634 4,250,000 1.05% 06/30/2026
14616 15,000,000 1.15% 05/26/2026
14611 5,600,000 1.25% 04/29/2027
14624 10,000,000 1.25% 05/27/2026
14613 15,000,000 1.75% 05/27/2026
14612 9,000,000 2.00% 04/29/2026
14615 15,000,000 1.30% 05/27/2026
14638 10,000,000 1.50% 07/20/2026
$268,850,000

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Attachment 3
As of June 30, 2025
Pooled Cash
Investments Gain/Loss on & Investments
Pooled Cash (Book Value) Investments (Market Value)
Retiree Medical Trust Fund
Fund No.
721 BHA 170,298$ 578,350$ 29,002$ 777,650$ 722 M1=IBEW (263,802) 83,179 (5,825) (186,448) 723 M2=Local 1 410,899 13,411,789 59,876 13,882,563 724 MUI=Z1 52,165 2,230,249 (140,860) 2,141,554 725 MUI=Z2 to Z6 (23,379) 3,205,334 (103,078) 3,078,877 726 M535= Local 535 334,650 12,007,149 (410,007) 11,931,792 727 M3=Local 790 146,955 7,290,076 (107,526) 7,329,504 Total Retiree Medical Trust Fund 827,786 38,806,126 (678,420) 38,955,492 Fire Medical Trust Fund
736 Fire Medical Trust Fund 400,827 14,887,206 (637,551) 14,650,482 Total Fire Medical Trust Fund 400,827 14,887,206 (637,551) 14,650,482 Police Medical Trust Fund
731 Police EE Retiree HLT Assistance Plan 54,771 1,783,201 (168,948) 1,669,024 701 Safety Members Pension Fund - - - - 706 Police Medical Trust Fund 108,246 3,089,161 (250,604) 2,946,803 Total Police Medical Trust Fund 163,017 4,872,362 (419,553) 4,615,827 Total Trust Funds 1,391,630$ 58,565,695$ (1,735,524)$ 58,221,801$ Summary of Pooled Cash and Investments - Trust Funds
(Market Value)

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Exhibit 3-A
As of June 30, 2025
CUSIP Investment # Issuer Par Value
Beginning Book
Value
Ending Book
Value Market Value Maturity Date
Moody's
Rating
Current
Rate
Annualized
Yield Interest Earned
Amortization/
Accretion
Adjusted Interest
Earnings
Federal Agency Coupon Securities
3133EFQT7 14361 Fed Farm Credit Bank 2,600,000.00 2,601,182.40 2,600,727.63 2,583,776.00 11/25/2025 AA1 2.700 2.636 17,550.00 (454.77) 17,095.23 Medium Term Notes - Callable
26442UAU8 14705 Duke Energy Progress LLC 2,000,000.00 1,997,656.35 1,997,715.20 2,008,480.00 03/15/2035 AA3 5.050 5.082 25,250.00 58.85 25,308.85 665859AX2 14671 Northern Trust Corp 10,000,000.00 10,012,917.92 10,012,492.21 10,798,200.00 11/02/2032 A2 6.125 6.117 153,125.00 (425.71) 152,699.29 Federal Agency Continuous Callable
3133EPMQ5 14691 Misc Federal Farm Credit Bank 4,746,000.00 4,716,643.81 4,717,537.91 4,746,284.76 06/16/2033 AA1 5.360 5.484 63,596.40 894.10 64,490.50 3133EPNL5 14692 Misc Federal Farm Credit Bank 3,796,800.00 3,773,931.84 3,774,626.69 3,791,978.07 06/23/2033 AA1 5.180 5.299 49,168.56 694.85 49,863.41 Continous Callable Bonds
797440CD4 14680 San Diego Gas & Electric 2,000,000.00 1,980,400.78 1,980,575.77 1,867,800.00 04/01/2053 A1 5.350 5.453 26,750.00 174.99 26,924.99 Corporate Bonds - Callable
25161FXB9 14706 Deutsche Bank 4,000,000.00 4,000,000.00 4,000,000.00 4,028,600.00 03/29/2040 A1 5.600 5.615 56,000.00 - - Municipal Bonds
786091AG3 14316 SACGEN 3,785,000.00 3,798,634.94 3,788,408.74 3,791,888.70 08/01/2025 A1 7.250 6.172 68,603.12 (10,226.20) 58,376.92 Savo Island Loan
SYS10988 10988 EMPMED 54,000.00 54,000.00 54,000.00 54,000.00 09/01/2025 N/A 8.000 7.978 1,074.10 - 1,074.10 Preferred Securities
00206R706 14591 AT&T Inc. 1,680,033.60 1,680,033.60 1,680,033.60 1,273,358.80 N/A N/A 4.596 4.765 19,960.21 - 19,960.21 00206R706 14596 AT&T Inc. 1,680,008.40 1,680,008.40 1,680,008.40 1,273,339.70 N/A N/A 4.643 4.765 19,959.92 - 19,959.92 00206R706 14597 AT&T Inc. 2,520,000.00 2,520,000.00 2,520,000.00 1,910,000.00 N/A N/A 4.640 4.765 29,939.71 - 29,939.71 Pooled Cash 827,787.72 556,455.42 827,787.72 827,787.72 N/A N/A 4.470 11,984.65 - 11,984.65 Total 39,689,629.72 39,371,865.46 39,633,913.87 38,955,493.75 5.350 542,961.67 (9,283.89) 477,677.78 Total Pooled Cash and Investments (Book Value) 39,633,913.87$ Gain/Loss on Investments (678,420.12)
Total Pooled Cash and Investments (Market Value) 38,955,493.75 Adjusted Interest Earnings
Retiree Medical Trust Fund
Fund 721 - 727
Investments Interest Earnings
April 01 to June 30, 2025
April 01 to June 30, 2025
Interest Earnings

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Exhibit 3-B
CUSIP Investment # Issuer Par Value
Beginning Book
Value
Ending Book
Value Market Value Maturity Date
Moody's
Rating
Current
Rate
Annualized
Yield Interest Earned
Amortization/
Accretion
Adjusted Interest
Earnings
Medium Term Notes
6174467X1 14318 Morgan Stanley DW DTC#0015 2,000,000.00 2,004,996.37 2,003,066.44 2,003,000.00 11/24/2025 BAA1 5.000 4.664 25,000.00 (1,929.93) 23,070.07 Federal Agency Coupon Securities
3133EFQT7 14362 Fed Farm Credit Bank 2,300,000.00 2,301,045.97 2,300,643.67 2,285,648.00 11/25/2025 AA1 2.700 2.665 15,525.00 (402.30) 15,122.70 Federal Agency Continuously Callable
3133EPMQ5 14691 Fire Federal Farm Credit Bank 35,500.00 35,280.42 35,287.10 35,502.13 06/16/2033 AA1 5.360 5.546 475.70 6.68 482.38 3133EPNL5 14692 Fire Federal Farm Credit Bank 28,400.00 28,228.95 28,234.14 28,363.93 06/23/2033 AA1 5.180 5.359 367.78 5.19 372.97 3133ER6C0 14704 Federal Farm Credit Bank 4,000,000.00 4,000,000.00 4,000,000.00 3,993,480.00 03/06/2025 AA1 5.740 5.596 57,400.00 - 57,400.00 3130B5CR7 14703 Federal Home Loan Banks 4,000,000.00 4,000,000.00 4,000,000.00 3,993,680.00 03/06/2025 AA1 5.890 5.742 58,900.00 - 58,900.00 Preferred Securities
00206R706 14592 AT&T Inc. 1,679,983.20 1,679,983.20 1,679,983.20 1,273,320.60 N/A N/A 4.596 4.628 19,959.61 - 19,959.61 00206R706 14594 AT&T Inc. 839,991.60 839,991.60 839,991.60 636,660.30 N/A N/A 4.640 4.655 9,979.80 - 9,979.80 Pooled Cash 400,827.00 370,064.33 400,827.00 400,827.00 N/A N/A 4.145 5,498.72 - 5,498.72 Total 15,284,701.80$ 15,259,590.84$ 15,288,033.15$ 14,650,481.96$ 4.963 193,106.61$ (2,320.36)$ 190,786.25$ Total Pooled Cash and Investments (Book Value) 15,288,033.15$ Gain/Loss on Investments (637,551.19)
Total Pooled Cash and Investments (Market Value) 14,650,481.96 Fire Retiree Medical
Fund 736
Adjusted Interest Earnings
April 01 to June 30, 2025As of June 30, 2025
Investments Interest Earnings
Interest Earnings
April 01 to June 30, 2025

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Exhibit 3-C
CUSIP Investment # Issuer Par Value
Beginning Book
Value
Ending Book
Value Market Value Maturity Date
Moody's
Rating
Current
Rate
Annualized
Yield Interest Earned
Amortization/
Accretion
Adjusted Interest
Earnings
Medium Term Notes
6174467X1 14319 Morgan Stanley DW DTC#0015 500,000.00 501,249.09 500,766.61 500,750.00 11/24/2025 BAA1 5.000 4.617 6,250.00 (482.48) 5,767.52 Federal Agency Coupon Securities
3133EFQT7 14363 Fed. Farm Credit Banks 2,300,000.00 2,301,045.97 2,300,643.67 2,285,648.00 11/25/2025 AA1 2.700 2.636 15,525.00 (402.30) 15,122.70 Federal Agency Continuously Callable
3133EPMQ5 14691 Pol Federal Farm Credit Bank 218,500.00 217,148.48 217,189.64 218,513.11 06/16/2033 AA1 5.360 5.484 2,927.90 41.16 2,969.06 3133EPNL5 14692 Pol Federal Farm Credit Bank 174,800.00 173,747.18 173,779.17 174,578.00 06/23/2033 AA1 5.180 5.299 2,263.66 31.99 2,295.65 Preferred Securities
00206R706 14593 AT&T Inc. 1,679,983.20 1,679,983.20 1,679,983.20 1,273,320.60 N/A N/A 4.596 4.765 19,959.61 - 19,959.61 Pooled Cash 163,017.51 592,815.77 163,017.51 163,017.51 N/A N/A 4.470 6,667.03 - 6,667.03 Total 5,036,300.71$ 5,465,989.69$ 5,035,379.80$ 4,615,827.22$ 3.871 53,593.20$ (811.63)$ 52,781.57$ Total Pooled Cash and Investments (Book Value) 5,035,379.80$ Gain/Loss on Investments (419,552.58)
Total Pooled Cash and Investments (Market Value) 4,615,827.22 Fund 701 Safety Members Pension Fund Cash -
Total Investments (Market Value) and Cash 4,615,827.22
Police Retiree Medical
Fund 731 and 706
Adjusted Interest Earnings
Investments Interest Earnings
As of June 30, 2025 April 01 to June 30, 2025
Interest Earnings
April 01 to June 30, 2025

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Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: http://www.cityofberkeley.info/manager

INFORMATION CALENDAR
FEBRUARY 24, 2026
A
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Henry Oyekanmi, Director, Finance Department Subject: FY 2026 First Quarter Investment Report: Ended September 30, 2025

3.08%, 117 basis points less than the 4.25% earned by the State Local Agency Investment Fund (State LAIF), which is the benchmark for investment performance used by the City. The returns earned on State LAIF’s portfolio are currently higher because it has a much shorter maturity than the city and current rates are much higher than the rates earned on investments that were in the City’s portfolio before the FEDs raised rates from 0%-.25%.

The return on pooled investments of 3.08% for the quarter ended September 30, 2025 was 5 basis points more than the rate of 3.03% earned in the quarter ended June 30, 2025.
 The average return on all Retiree Medical Trust Fund investments was 4.55% for the quarter ended September 30, 2025.

CURRENT SITUATION AND ITS EFFECTS
Attached is a summary of the quarterly report for fiscal year 2026 First Quarter ending September 30, 2025 representing the status of the City’s investment portfolio. The report includes all investments managed by the City of Berkeley and provides information on the values (par, book, and market), term, and yield of each security.

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Investment Report: FY2026 1st Qtr INFORMATION CALENDAR Ended September 30, 2025 FEBRUARY 24, 2026

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A. Portfolio Results

1. Selection and Comparison of Results with Benchmarks
As a result of the differences in the investment policies of different cities, including responsible investing policies, maturity restrictions, investment restrictions, etc., it was difficult for the City of Berkeley to come up with a reasonable comparative performance measure for pooled cash investments. In order to provide some measure of the relative performance of the City’s investment returns, many years ago the City established the State Local Agency Investment Fund (LAIF) as the performance measure to be reported in the quarterly investment reports, since many local governments invested significant portions of their investment portfolios in LAIF and used LAIF as their performance measure.

LAIF was intended to be a reference point to compare the City’s investment performance against, rather than a true performance measure, since most cities typically earn a yield higher than LAIF in normal interest rate environments, and because LAIF’s average maturity of its investments is normally much shorter than that of most cities. As a result, past City Councilmembers requested that information about the rates earned by other California cities be included in the quarterly investment reports for comparison purposes, despite the differences in the investment policies of the various cities.

The most significant difference in investment policies is the maximum period of the investments. The impact of this difference between the various cities has played out in the interest rate environment since the FEDs unexpectedly raised short-term interest rates from zero percent to 5.5 percent from March 17, 2022 to July 26, 2023, to combat sharply rising inflation that the FEDs thought was “transitory” and under control:
 It is important to summarize the interest rate environment that existed in the quarter before the FEDs started raising the Federal Funds rate on March 17, 2022: At that time, interest rates were around 1% and the interest rates earned by selected California cities ranged between .23% and 1.62%, with an average of .94%.

Furthermore, the city that was at the top of the list back then is at the bottom of the list in the First Quarter FY 2026 investment report because of a longer average maturity of its investments;
Since the FEDs thought the rise in inflation was “transitory”, there was no warning that FEDs monetary policy would immediately reverse from easing to tightening.

As a result, it is reasonable to assume that portfolios were loaded with investments that were yielding between 1-2%. In addition, the FED did not give the market any indication of how long or how high it would raise rates. It kept indicating that it felt the increase in inflation was “transitory”.

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Investment Report: FY2026 1st Qtr INFORMATION CALENDAR Ended September 30, 2025 FEBRUARY 24, 2026

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Bond prices and interest rates have an inverse relationship. When interest rates rise, bond prices fall and vice versa. As the FED started raising rates, the market values of the investments declined. If investments were sold at that time, the city selling would incur large investment losses, so the only reasonable option was to hold the investments to maturity, since the FED did not indicate how high it would raise rates.
 The investments yielding 1-2% for cities with short average investment maturities matured sooner than cities with longer average investment maturities. As a result, the former cities were able to reinvest at the current higher rates and have higher interest rates earned, while cities with longer average investment maturities had to wait for their low-yielding investments to mature to reinvest. For example, the City of Berkeley’s investment portfolio held $263.3 million (or 40.0% of the City’s portfolio at that time) of such investments that will not mature until CY 2026-See Exhibit 2-F.

2. Liquidity of Portfolio:

The average investment in the City’s pooled portfolio matures in 610 days as of September 30, 2025. This is 119 days less than the 729 maturity days as of June 30, 2025- See Comparison of Results to Performance Measures – Pooled investments: Quarter Ended September 30, 2025.

The City’s yield on investments for the quarter ended September 30, 2025 was

3.08%, an increase of 5 basis points (.05%) from the 3.03 earned during the quarter ended June 30, 2025. The average yield on a 91-day Treasury bill at the end of the quarter ended September 30, 2025 was 3.86%, a decrease of 58 basis points (0.58%) from the 4.24% at the end of the previous quarter. This decrease was due to the reduction in the Federal Funds rate by .25% on September 17, 2025 and the anticipation of a further rate cut of .25% at the October 29, 2025 FEDs meeting.

As summarized in Table 1, staff’s overall results were under the performance measure for the quarter by 117 basis points. Staff’s performance was under the performance measure in July by approximately 112 basis points (-1.12%); under the performance measure in August by approximately 119 basis points (-1.19%); and, was under the performance measure in September by approximately 118 basis points (-1.18%). The performance measure for the return on investments is compared to the rate of return of the State LAIF.

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Investment Report: FY2026 1st Qtr INFORMATION CALENDAR Ended September 30, 2025 FEBRUARY 24, 2026

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Table 1
For Quarter Ending September 30, 2025
Period City State LAIF Difference
July-25 3.14% 4.26% -1.12%
Aug-25 3.06% 4.25% -1.19%
Sept-25 3.03% 4.21% -1.18%
July 1-Sept 30

3.08% 4.25% -1.17%

3. Investment Results-Retiree Health Insurance Funds:

Average interest rates earned on the retiree health insurance trust funds for the quarter ended September 30, 2025 compared to the quarter ended June 30 2025, were as follows:

Table 2

EARNED INTEREST RATES
For Quarter Ended 9/30/2025 Compared To 6/30/2025
Trust Fund 1st Qtr
9/30/25
4th Qtr
6/30/25
Retiree Medical Trust Fund (Misc Employees) 5.13% 5.35% Fire Retiree Medical Trust Fund 4.96% 4.96%
Police Retiree Medical Trust Fund 3.57% 3.87%
The rates earned on these plans are expected to stay about the same, as staff believes overall medium and long-term rates will remain close to current levels in the near future.

Details related to retiree health trust fund investments are in Attachment 3, Exhibits 3- A, 3-B, and 3-C of this report.

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Investment Report: FY2026 1st Qtr INFORMATION CALENDAR Ended September 30, 2025 FEBRUARY 24, 2026

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B. Discussion of Interest Rate Environment and Outlook
Yield Trend
Federal Reserve Board September 17, 2025 Statement
Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated.

The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.

In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the Federal Funds rate by 1/4 percentage point to 4 to 4-1/4 percent. In considering additional adjustments to the target range for the Federal Funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Investment Environment and Change in City’s Investment Strategy A. Investment Environment
At the time of the period covered by this investment report, the investment environment was as follows:
 After the FED raised short-term rates from zero percent to 5.50 percent between March 17, 2022 and July 26, 2023, many market participants expected quick moves by the FEDs to lower rates and avoid a recession.  However, the FED was very cautious in lowering rates. The Core Personal Consumption Expenditures (PCE) index (the FEDs favored inflation index) had moved down significantly to 2.8% in September 2025 versus the FEDs goal of

2.0%, but it has been stuck at a level of 2.6%-2.9% for over a year and a half. Until

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the index moves to the 2.0% goal and stays there for a period, the FED indicated it will be reluctant to meaningfully further lower short-term rates.  The FED was unsure of the impact President Trump’s tariffs would have on inflation but believes that they will increase inflation slightly over the short-term, so this gives the FEDs another reason to be reluctant to lower short-term rates significantly under these circumstances.
 These actions would tend to cause the FED to stay in a holding pattern and keep short-term interest rates where they are until there is a clearer picture of the impact of the final tariffs imposed on inflation and the economy or unless the unemployment rate increases significantly. The FED knows that when the labor market turns, it turns quickly, so they want to make sure they are not stepping on the brakes of the economy at the same time the labor market has already slowed.

As indicated in the Federal Reserve Board Statement on September 17, 2025, the FED lowered the Federal Funds Rate by .25%. However, the rate cut came with a warning about the economy: The job market has stopped growing and needed a boost in the form of lower interest rates, despite the increase in inflation the last few months. The inflation rate rose 2.9% over the 12 months to September, the fastest pace since January, and significantly above the FEDs target of 2%.

However, the concern about the rise in inflation has now been eclipsed by the concern in the labor market. The US reported small job gains in July, August and September 2025, and a loss of jobs in June-the first decline since 2020.

B. Significant Changes in the Investment Environment Since the Period of This Report
FEDs Actions:

The market clearly expected another cut at the FEDs December meeting until the FED Chairman stated at the October 29th Meeting. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it, policy is not on a preset course.”
However, the weakening of the labor market in November 2025 prompted the FEDs to lower short-term rates by another .25%, to 3 3/4 on December 10, 2025.

Labor Market Changes:

The labor market weakened: The November 2025 labor report showed U.S. hiring slowed to 64,000 jobs added, down from the 105,000 added in October 2025. The report also showed an increase in the unemployment rate from 4.40% in September to 4.60% in November. What made this shift more consequential is that it came after a long period in which unemployment had been hovering near multi- decades lows, even as growth cooled and interest rates stayed high. The move in

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the unemployment rate in November suggests that the labor market is no longer absorbing economic headwinds as easily as it did earlier.

The December 2025 labor report showed continued weakness as the US added 50,000 jobs when economists expected 70,000 jobs to be added. The Unemployment rate was reported at 4.4%, versus an expectation of 4.5%.

The unemployment rate is projected to be 4.5% for the entire year of 2025 and drop to 4.4% in 2026.

Inflation Expectations:
 The Core Personal Consumption Expenditures Price Index (PCE) is the less volatile measure of the PCE price index which excludes the more volatile and seasonal food and energy prices. It is the inflation index favored by the FEDs in developing monetary policy.

The September 2025 PCE index was reported late on December 5, 2025. The September 2025 rate was 2.8% and Core PCE was 2.8%, in line with expectations, but significantly higher than the FEDs 2% target.
 The Core November 2025 PCE index report is scheduled to be reported January 22, 2025 and is projected to increase by 2.7%, down from 2.8% in September.

October 2025 PCE was not reported because of the federal government shutdown.  PCE inflation is expected to be at 3% in 2025 and 2.6% in 2026. Core PCE is projected at 3.1% for 2025 and 2.6% in 2026.

Staff Expectations for Future FED Actions:
 Future cuts: Federal Reserve officials are divided on further interest rate cuts amid persistent inflation concerns. Some officials argue that the labor market is stable, so more rate cuts are unnecessary. Others argue that the FEDs risk a recession if it doesn’t move quickly with rate cuts. The FEDs will continue to be cautious about lowering short-term rates as long as there is weakness in the labor market.

The FEDs will continue this caution to lower short-term rates as long as there is weakness in the labor market, even if inflation stays around the current level instead of moving down to the FEDs 2% target.

Staff believe that as long as the Core PCE index doesn’t move up and the labor market is showing signs of weakness, the FEDs will lower the Federal Funds rate 1-2 times in 2026, by .25% each or a total of .50%.

 Legality of Tariffs: The U.S. Supreme Court indicated that it will decide whether President Trump’s novel use of an emergency powers law to impose worldwide

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tariffs is constitutional. It held hearings in November 2025 and the decision should come in a few weeks (as of this report writing date, in late January). This decision may have a significant impact on inflation expectations and determine how much more and how quickly the FEDs lower short-term rates in the near future and determine how much medium and long-term rates will be impacted.

Table 3
Other California Cities
Earned Interest Rates
For the Quarter Ending September 30, 2025
City Rates Earned
San Diego 4.25%
Hayward 4.05%
San Jose 4.03%
Oakland 3.98%
San Francisco 3.80%
Burbank 3.47%
Los Angeles Not available
Berkeley 3.08%
Sacramento 3.06%
Palo Alto 2.61 %

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Investment Report: FY2026 1st Qtr INFORMATION CALENDAR Ended September 30, 2025 FEBRUARY 24, 2026

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In some cases, the city may have investments with a current market value that is greater or less than the recorded cost. These changes in market value are due to fluctuations in the market and have no effect on the City’s yield, as the city does not intend to sell securities prior to maturity.
 Retiree Health Trust Fund Investments
The City agreed to provide retiree Health insurance coverage for fire, police and miscellaneous employees under certain terms and conditions. An actuarial study commissioned by the City many years ago determined that, in addition to City Contributions, an average rate of return of 7% on miscellaneous employees trust fund assets invested must be achieved to fund the retiree health benefit at the desired 70% level. Primarily because of the Federal Reserve Board’s decision to keep short-term rates near zero from 2008 to March 2022, the average rate currently earned is significantly below that 7% level. City Finance Department staff manages these investment portfolios.

ENVIRONMENTAL SUSTAINABILITY
There are no identifiable environmental effects or opportunities associated with the subject of this report.

CONTACT PERSON
Henry Oyekanmi, Director, Finance Department, 981-7326

ATTACHMENTS

1. Portfolio Evaluation FY 2026 First Quarter

2. Investment Report Analysis FY 2026 First Quarter
a. Exhibit 2-A: Pooled Cash and Investments
b. Exhibit 2-B.1 through 2-B.3: Interest Earnings July 1, 2025 – September 30, 2025
c. Exhibit 2-C: Book Value By Investment Type
d. Exhibit 2-D: Current Holdings vs. Policy Limits
e. Exhibit 2-E: Investment Portfolio Trend
f. Exhibit 2-F: Investments Yielding 2 Percent or Less Maturing in 2026 or 2027

3. Summary of Pooled and Cash Investments FY 2026 First Quarter –Trust Funds a. Exhibit 3-A: Retiree Medical Trust Funds –Misc.

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Investment Report: FY2026 1st Qtr INFORMATION CALENDAR Ended September 30, 2025 FEBRUARY 24, 2026

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b. Exhibit 3-B: Retiree Medical Trust Funds –Fire
c. Exhibit 3-C: Retiree Medical Trust Funds –Police

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Attachment 1
Total Portfolio
Pooled Cash and Investments (COB) 641,740,041$ 693,922,102$ 647,948,111$ 649,832,348$ Pooled Cash and Investments (Trust) 60,096,426 58,221,801 58,585,989 57,695,193 Total Cash and Investments 701,836,467$ 752,143,903$ 706,534,100$ 707,527,541$ Average Life of Investment Portfolio
Pooled Investments (CoB) 610 729 763 835
Trust Investments 5.349 years 5.417 years 2.791 years 2.791 years Weighted Yield
Pooled Investments (CoB) 3.076% 3.033% 3.007% 2.901%
Trust Investments 4.554% 4.728% 4.639% 4.285%
Prime Rate 7.250% 7.500% 7.500% 7.500%
91-day Treasury Bill Rate 3.860% 4.240% 4.294% 4.271%
2-year Treasury Note Rate 4.830% 3.777% 3.883% 4.243%
Cash and Investments Maturity
Within one year 542,779,001$ 77.34% 492,986,029$ 65.54% 255,293,610$ 36.13% 270,171,399$ 38.19% Between 1 to 3 years 59,601,319 8.49% 140,692,393 18.71% 333,278,343 47.17% 334,960,505 47.34% Between 3 to 5 years 20,856,960 2.97% 20,790,910 2.76% 20,608,600 2.92% 10,530,270 1.49% Between 5 to 10 years 68,605,647 9.78% 87,784,492 11.67% 81,503,566 11.54% 89,983,467 12.72% Over 10 years 9,993,540 1.42% 9,890,080 1.31% 15,849,980 2.24% 1,881,900 0.27% Total 701,836,467$ 100.00% 752,143,903$ 100.00% 706,534,100$ 100.00% 707,527,541$ 100.00% September 2025

QUARTER ENDING
Portfolio Evaluation
Quarter Ended September 30, 2025
March 2025 December 2024June 2025

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Attachment 2
Pension and OPEB
Investments Pooled Investments Trust Investments Total
Portfolio 419,779,034$ 49,750,140$ 469,529,174$ Unrecognized gain/(loss) (3,562,983) (1,128,147) (4,691,129) Total Investments 416,216,051 48,621,993 464,838,044 Cash Pooled Cash
Pension and OPEB
Trust Cash Total
Cash with Fidelity Money Market 37,477,106 - 37,477,106 Cash with Fiscal Agents 150 - 150 Cash Deposits in Banks 188,046,734 11,474,433 199,521,167 Total Cash 225,523,990 11,474,433 236,998,423 Adjusted Grand Total (All Cash and Investments) 641,740,041$ 60,096,426$ 701,836,467$ Pooled Cash Portfolio Breakdown As of September 30, 2025 Book Value Market Value Investments 419,779,034$ 416,216,051$
NOTE:

1. The pooled cash includes Rent Board cash of $11,032,135

2. The pooled cash does not include Section 115 cash of -$2,428,143

3. The pooled cash does not include Fire Admin Training Building $10,500,000 cash in escrow Investment Report Analysis
As of September 30, 2025

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Exhibit 2-A
CUSIP Investment # Issuer Book Value Par Value Market Value Current
Rate
YTM/C
365
Maturity
Date
Days To
Maturity Moody's Rating
Medium Term Notes
233851CU6 14571 Daimler Finance 5,014,480.68 5,000,000.00 4,960,350.00 3.450 3.190 01/06/2027 462 A3 233851CU6 14574 Daimler Finance 3,743,833.06 3,725,000.00 3,695,460.75 3.450 3.000 01/06/2027 462 A2 24422EWK1 14663 John Deere Cap 4,991,238.68 5,000,000.00 5,023,550.00 4.150 4.250 09/15/2027 714 A2 375558BF9 14570 Gilead Sciences 5,009,920.18 5,000,000.00 4,991,650.00 3.650 3.118 03/01/2026 151 A1 30303M8G0 14660 Meta Platforms Inc 4,928,167.71 5,000,000.00 4,977,850.00 3.500 4.360 08/15/2027 683 A3 617446HD4 14670 Morgan Stanley 10,613,584.95 10,000,000.00 11,584,000.00 7.250 6.000 04/01/2032 2374 AA3 747525AU7 14587 Qualcomm Inc 6,035,322.96 5,963,000.00 5,911,658.57 3.250 2.435 05/20/2027 596 A1 07330MAA5 14588 Truist Bank 5,071,204.40 5,000,000.00 4,984,950.00 3.800 2.365 10/30/2026 394 A2 Subtotal and Average 45,407,752.62 44,688,000.00 46,129,469.32 3.874 936 Federal Agency Coupon Securities
3133ENS50 14667 Federal Farm Credit Bank 4,999,684.40 5,000,000.00 5,041,500.00 4.125 4.128 10/14/2027 743 AA1 3133ENN30 14668 Federal Farm Credit Bank 4,729,012.75 5,000,000.00 4,967,400.00 3.875 4.863 09/20/2032 2546 AA1 3133ENV72 14669 Federal Farm Credit Bank 4,996,320.79 5,000,000.00 5,036,300.00 4.500 4.600 07/27/2026 299 AA1 3133EPGG4 14686 Federal Farm Credit Bank 4,968,565.34 5,000,000.00 4,974,000.00 4.000 4.102 04/20/2033 2758 AA1 3133EPPE9 14689 Federal Farm Credit Bank 4,994,168.98 5,000,000.00 5,031,200.00 4.375 4.540 07/06/2026 278 AA1 3133EPPF6 14690 Federal Farm Credit Bank 4,971,262.75 5,000,000.00 5,073,300.00 4.125 4.300 07/05/2029 1373 AA1 Subtotal and Average 29,659,015.01 30,000,000.00 30,123,700.00 4.419 1,320 Medium-Term Notes - Callable
857477CD3 14698 State Street Corp. 4000000.00 4000000.00 4037920.00 5.272 5.272 08/03/2026 306.000 AA3 91159HHU7 14562 US Bancorp 5005404.23 5000000.00 4996550.00 3.950 2.848 11/17/2025 47.000 A3 91159HHM5 14684 US Bancorp 4941642.74 5000000.00 4972750.00 3.100 5.348 04/27/2026 208.000 A3 91159HHW3 14693 US Bancorp 4493870.93 5000000.00 4784900.00 3.000 6.212 07/30/2029 1398.000 A3 Subtotal and Average 18,440,917.90 19,000,000.00 18,792,120.00 4.863 475 Federal Agency Callable
3133EN6K1 14676 Federal Farm Credit Bank 5000000.00 5000000.00 4986850.00 4.220 4.220 01/23/2030 1575.000 AA1 3133EN6K1 14677 Federal Farm Credit Bank 5000000.00 5000000.00 4986850.00 4.220 4.220 01/23/2030 1575.000 AA1 3133EPAJ4 14679 Federal Farm Credit Bank 5000000.00 5000000.00 4982300.00 4.000 4.000 02/09/2033 2688.000 AA1 15,000,000.00 15,000,000.00 14,956,000.00 4.147 1,946 Federal Agency Continuously Callable
31422XJW3 14638 Farmer Mac 10,000,000.00 10,000,000.00 9,834,600.00 1.500 0.300 07/20/2026 292 N/A 3133ENUV0 14644 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,880,550.00 4.000 4.000 04/19/2032 2,392 AA1 3133ENVV9 14647 Federal Farm Credit Bank 5,000,000.00 5,000,000.00 4,987,000.00 3.630 3.630 05/03/2027 579 AA1 3133ENWW6 14653 Federal Farm Credit Bank 4,996,348.64 5,000,000.00 4,981,200.00 4.370 4.384 05/17/2032 2,420 AA1 City of Berkeley
Pooled Cash and Investments
As of September 30, 2025

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Exhibit 2-A
CUSIP Investment # Issuer Book Value Par Value Market Value Current
Rate
YTM/C
365
Maturity
Date
Days To
Maturity Moody's Rating
City of Berkeley
Pooled Cash and Investments
As of September 30, 2025
3130AMAV4 14611 Federal Home Loan Banks 5,600,000.00 5,600,000.00 5,392,800.00 1.250 1.125 04/29/2027 575 AA1 3130ALZA5 14612 Federal Home Loan Banks 9,000,000.00 9,000,000.00 8,954,460.00 3.000 0.500 04/29/2026 210 AA1 3130AMEX6 14613 Federal Home Loan Banks 15,000,000.00 15,000,000.00 14,871,000.00 2.500 1.102 05/27/2026 238 AA1 3130AMF72 14615 Federal Home Loan Banks 15,000,000.00 15,000,000.00 14,756,700.00 1.300 1.040 05/27/2026 238 AA1 3130AMFQ0 14616 Federal Home Loan Banks 15,000,000.00 15,000,000.00 14,743,200.00 1.150 1.020 05/26/2026 237 AA1 3130AMFT4 14617 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,834,600.00 1.250 1.000 05/27/2026 238 AA1 3130AMG22 14618 Federal Home Loan Banks 20,000,000.00 20,000,000.00 19,748,400.00 1.750 0.500 05/27/2026 238 AA1 3130AMGG1 14619 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,883,000.00 2.000 1.160 05/26/2026 237 AA1 3130AMFN7 14620 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,883,000.00 2.000 1.175 05/26/2026 237 AA1 3130AMG55 14622 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,631,600.00 1.375 1.219 05/27/2027 603 AA1 3130AMG22 14624 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,874,200.00 1.750 0.500 05/27/2026 238 AA1 3130AMLS9 14627 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,919,600.00 2.000 1.170 06/17/2026 259 AA1 3130AMN24 14628 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,823,900.00 1.150 1.034 06/03/2026 245 AA1 3130AMN57 14629 Federal Home Loan Banks 20,000,000.00 20,000,000.00 19,640,400.00 1.100 1.013 06/03/2026 245 AA1 3130AMP71 14630 Federal Home Loan Banks 20,000,000.00 20,000,000.00 19,652,600.00 1.200 1.077 06/18/2026 260 AA1 3130AMPL0 14631 Federal Home Loan Banks 15,000,000.00 15,000,000.00 14,741,850.00 1.150 0.375 06/08/2026 250 AA1 3130AMMW9 14632 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,846,200.00 1.500 0.500 06/10/2026 252 AA1 3130AMWM0 14634 Federal Home Loan Banks 4,250,000.00 4,250,000.00 4,165,425.00 1.050 0.500 06/30/2026 272 AA1 3130AN5U0 14642 Federal Home Loan Banks 10,000,000.00 10,000,000.00 9,839,600.00 1.750 0.500 07/29/2026 301 AA1 3130ANJY7 14643 Federal Home Loan Banks 40,000,000.00 40,000,000.00 39,047,200.00 1.000 0.400 08/26/2026 329 AA1 3130ARTE1 14645 Federal Home Loan Banks 6,425,000.00 6,425,000.00 6,279,216.75 4.100 4.100 04/26/2032 2,399 AA1 3130ARYA3 14651 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,994,600.00 4.000 4.000 05/26/2027 602 AA1 3130AS7K9 14654 Federal Home Loan Banks 5,000,000.00 5,000,000.00 4,982,800.00 4.440 4.440 05/26/2032 2,429 AA1 310,271,348.64 310,275,000.00 305,189,701.75 1.121 435 Medium Term Notes Continuous Callable Bonds
06051GLG2 14688 Bank of America Corporation 1000000.00 1000000.00 1025060.00 5.202 5.202 04/25/2029 1302.000 A1 Subtotal and Average 1,000,000.00 1,000,000.00 1,025,060.00 5.202 1,394 Total Investments and Average 419,779,034.17 419,963,000.00 416,216,051.07 1.934 610 Total Investments (Book Value) 419,779,034.17
Cash 225,523,990.00
Total Investments (Book Value) and Cash 645,303,024.17
Increase / (Decrease) in Market Value of Securities (3,562,983.10) Total Investments (Market Value) and Cash 641,740,041.07

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Pooled Investments Selected Funds
Interest Earnings
Exhibit 2-B.1
Sorted by Fund - Fund
July 1, 2025 - July 31, 2025
Yield on Average Book Value
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,250,000.0014634 4,250,000.00 1.050MC5 06/30/2026 3,718.75 0.00 3,718.751.030010 4,250,000.003130AMWM0 15,000,000.0014631 15,000,000.00 1.150MC5 06/08/2026 14,375.00 0.00 14,375.001.128010 15,000,000.003130AMPL0 20,000,000.0014630 20,000,000.00 1.200MC5 06/18/2026 20,000.00 0.00 20,000.001.177010 20,000,000.003130AMP71 10,000,000.0014632 10,000,000.00 1.500MC5 06/10/2026 12,500.00 0.00 12,500.001.472010 10,000,000.003130AMMW9 10,000,000.0014642 10,000,000.00 1.750MC5 07/29/2026 14,583.33 0.00 14,583.331.717010 10,000,000.003130AN5U0 40,000,000.0014643 40,000,000.00 1.000MC5 08/26/2026 33,333.33 0.00 33,333.330.981010 40,000,000.003130ANJY7 5,000,000.0014651 5,000,000.00 4.000MC5 05/26/2027 16,666.67 0.00 16,666.673.925010 5,000,000.003130ARYA3 6,425,000.0014645 6,425,000.00 4.100MC5 04/26/2032 21,952.08 0.00 21,952.084.023010 6,425,000.003130ARTE1 20,000,000.0014629 20,000,000.00 1.100MC5 06/03/2026 18,333.33 0.00 18,333.331.079010 20,000,000.003130AMN57 10,000,000.0014628 10,000,000.00 1.150MC5 06/03/2026 9,583.33 0.00 9,583.331.128010 10,000,000.003130AMN24 9,000,000.0014612 9,000,000.00 3.000MC5 04/29/2026 22,500.00 0.00 22,500.002.944010 9,000,000.003130ALZA5 5,600,000.0014611 5,600,000.00 1.250MC5 04/29/2027 5,833.33 0.00 5,833.331.226010 5,600,000.003130AMAV4 15,000,000.0014613 15,000,000.00 2.500MC5 05/27/2026 31,250.00 0.00 31,250.002.453010 15,000,000.003130AMEX6 15,000,000.0014616 15,000,000.00 1.150MC5 05/26/2026 14,375.00 0.00 14,375.001.128010 15,000,000.003130AMFQ0 15,000,000.0014615 15,000,000.00 1.300MC5 05/27/2026 16,250.00 0.00 16,250.001.276010 15,000,000.003130AMF72 10,000,000.0014624 10,000,000.00 1.750MC5 05/27/2026 14,583.33 0.00 14,583.331.717010 10,000,000.003130AMG22 10,000,000.0014627 10,000,000.00 2.000MC5 06/17/2026 16,666.67 0.00 16,666.671.962010 10,000,000.003130AMLS9 10,000,000.0014622 10,000,000.00 1.375MC5 05/27/2027 11,458.33 0.00 11,458.331.349010 10,000,000.003130AMG55 10,000,000.0014619 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.671.962010 10,000,000.003130AMGG1 10,000,000.0014620 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.671.962010 10,000,000.003130AMFN7 10,000,000.0014617 10,000,000.00 1.250MC5 05/27/2026 10,416.67 0.00 10,416.671.226010 10,000,000.003130AMFT4 20,000,000.0014618 20,000,000.00 1.750MC5 05/27/2026 29,166.67 0.00 29,166.671.717010 20,000,000.003130AMG22 5,000,000.0014654 5,000,000.00 4.440MC5 05/26/2032 18,500.00 0.00 18,500.004.356010 5,000,000.003130AS7K9 5,000,000.0014678 5,000,000.00 5.620MC4 01/26/2033 23,416.67 0.00 23,416.675.514010 5,000,000.003130AULM4 3,709,626.5414687 0.00 4.250FAC 07/24/2025 13,576.39 143.40 13,719.794.355010 4,999,856.603133EPGS8 4,992,599.2214689 5,000,000.00 4.375FAC 07/06/2026 18,229.17 636.11 18,865.284.449010 4,992,260.653133EPPE9 4,967,709.4414686 5,000,000.00 4.000FAC 04/20/2033 16,666.67 346.83 17,013.504.032010 4,967,524.843133EPGG4 4,969,691.5014690 5,000,000.00 4.125FAC 07/05/2029 17,187.50 636.72 17,824.224.223010 4,969,352.603133EPPF6 3,870,967.7414695 0.00 5.650MC5 07/25/2033 18,833.33 0.00 18,833.335.728010 5,000,000.003133EPQT5 4,996,235.3414653 5,000,000.00 4.370MC5 05/17/2032 18,208.33 45.91 18,254.244.302010 4,996,210.913133ENWW6

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Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.1
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
July 1, 2025 - July 31, 2025
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
5,000,000.0014682 5,000,000.00 4.620MC5 04/03/2028 19,250.00 0.00 19,250.004.533010 5,000,000.003133EPEK7 4,998,817.2914664 5,000,000.00 3.750FAC 09/22/2025 15,625.00 545.60 16,170.603.809010 4,998,526.893133ENN22 4,995,400.5914669 5,000,000.00 4.500FAC 07/27/2026 18,750.00 372.89 19,122.894.507010 4,995,202.123133ENV72 4,721,016.8114668 5,000,000.00 3.875FAC 09/20/2032 16,145.83 3,240.18 19,386.014.835010 4,719,292.203133ENN30 5,000,000.0014644 5,000,000.00 4.000MC5 04/19/2032 16,666.67 0.00 16,666.673.925010 5,000,000.003133ENUV0 5,000,000.0014676 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.141010 5,000,000.003133EN6K1 4,998,588.4814666 5,000,000.00 4.250FAC 09/30/2025 17,708.33 579.56 18,287.894.308010 4,998,280.633133ENP95 4,999,652.5314667 5,000,000.00 4.125FAC 10/14/2027 17,187.50 12.92 17,200.424.051010 4,999,645.653133ENS50 5,000,000.0014679 5,000,000.00 4.000MC4 02/09/2033 16,666.67 0.00 16,666.673.925010 5,000,000.003133EPAJ4 5,000,000.0014677 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.141010 5,000,000.003133EN6K1 5,000,000.0014647 5,000,000.00 3.630MC5 05/03/2027 15,125.00 0.00 15,125.003.562010 5,000,000.003133ENVV9 2,741,935.4814657 0.00 4.100MC5 07/18/2025 9,680.56 0.00 9,680.564.157010 5,000,000.003134GXC28 10,632,997.3814670 10,000,000.00 7.250MTN 04/01/2032 60,416.67 -7,866.47 52,550.205.819010 10,637,184.37617446HD4 1,000,000.0014688 1,000,000.00 5.202MC6 04/25/2029 4,335.00 0.00 4,335.005.104010 1,000,000.0006051GLG2 10,000,000.0014638 10,000,000.00 1.500MC5 07/20/2026 12,500.00 0.00 12,500.001.472010 10,000,000.0031422XJW3 4,990,317.3414663 5,000,000.00 4.150MTN 09/15/2027 17,291.67 373.36 17,665.034.168010 4,990,118.6224422EWK1 5,014,101.7814562 5,000,000.00 3.950MC3 11/17/2025 16,458.33 -3,524.49 12,933.843.037010 5,015,977.7291159HHU7 4,920,670.3114684 5,000,000.00 3.100MC3 04/27/2026 12,916.67 8,498.63 21,415.305.124010 4,916,146.8591159HHM5 4,466,687.3114693 5,000,000.00 3.000MC3 07/30/2029 12,500.00 11,010.79 23,510.796.197010 4,460,838.5791159HHW3 6,044,413.3414587 5,963,000.00 3.250MTN 05/20/2027 16,149.79 -3,683.68 12,466.112.428010 6,046,374.01747525AU7 5,004,608.6714566 5,000,000.00 3.750MC3 09/15/2025 15,625.00 -2,382.47 13,242.533.116010 5,005,876.76751212AC5 5,014,816.2814570 5,000,000.00 3.650MTN 03/01/2026 15,208.33 -1,984.04 13,224.293.105010 5,015,872.30375558BF9 5,016,836.8014571 5,000,000.00 3.450MTN 01/06/2027 14,375.00 -954.76 13,420.243.150010 5,017,344.98233851CU6 3,746,897.3514574 3,725,000.00 3.450MTN 01/06/2027 10,709.38 -1,241.74 9,467.642.975010 3,747,558.28233851CU6 5,084,761.5114588 5,000,000.00 3.800MTN 10/30/2026 15,833.33 -5,491.34 10,341.992.395010 5,087,678.4207330MAA5 5,000,000.0014655 5,000,000.00 5.000MC3 05/31/2032 20,833.33 0.00 20,833.334.906010 5,000,000.0022553PXJ3 4,997,088.3114659 5,000,000.00 3.000MTN 08/07/2025 12,500.00 4,360.50 16,860.503.973010 4,994,767.4088579YAR2 4,920,277.6414660 5,000,000.00 3.500MTN 08/15/2027 14,583.33 3,197.28 17,780.614.255010 4,918,575.8630303M8G0 4,000,000.0014698 4,000,000.00 5.272MC3 08/03/2026 17,573.33 0.00 17,573.335.173010 4,000,000.00857477CD3 454,963,000.00Subtotal 465,091,715.00 2.557 1,010,150.296,871.691,003,278.60469,765,467.23 Fund: Wells Fargo MM- Regular
226,259,585.9514701 198,481,378.46RRP 796,667.11 0.00 796,667.114.146025 191,769,017.53SYS14701 198,481,378.46Subtotal 226,259,585.95 4.146 796,667.110.00796,667.11191,769,017.53

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Pooled Investments Selected Funds
Interest Earnings
Exhibit 2-B.2
Sorted by Fund - Fund
August 1, 2025 - August 31, 2025
Yield on Average Book Value
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,250,000.0014634 4,250,000.00 1.050MC5 06/30/2026 3,718.75 0.00 3,718.751.030010 4,250,000.003130AMWM0 15,000,000.0014631 15,000,000.00 1.150MC5 06/08/2026 14,375.00 0.00 14,375.001.128010 15,000,000.003130AMPL0 20,000,000.0014630 20,000,000.00 1.200MC5 06/18/2026 20,000.00 0.00 20,000.001.177010 20,000,000.003130AMP71 10,000,000.0014632 10,000,000.00 1.500MC5 06/10/2026 12,500.00 0.00 12,500.001.472010 10,000,000.003130AMMW9 10,000,000.0014642 10,000,000.00 1.750MC5 07/29/2026 14,583.33 0.00 14,583.331.717010 10,000,000.003130AN5U0 40,000,000.0014643 40,000,000.00 1.000MC5 08/26/2026 33,333.33 0.00 33,333.330.981010 40,000,000.003130ANJY7 5,000,000.0014651 5,000,000.00 4.000MC5 05/26/2027 16,666.67 0.00 16,666.673.925010 5,000,000.003130ARYA3 6,425,000.0014645 6,425,000.00 4.100MC5 04/26/2032 21,952.08 0.00 21,952.084.023010 6,425,000.003130ARTE1 20,000,000.0014629 20,000,000.00 1.100MC5 06/03/2026 18,333.33 0.00 18,333.331.079010 20,000,000.003130AMN57 10,000,000.0014628 10,000,000.00 1.150MC5 06/03/2026 9,583.33 0.00 9,583.331.128010 10,000,000.003130AMN24 9,000,000.0014612 9,000,000.00 3.000MC5 04/29/2026 22,500.00 0.00 22,500.002.944010 9,000,000.003130ALZA5 5,600,000.0014611 5,600,000.00 1.250MC5 04/29/2027 5,833.33 0.00 5,833.331.226010 5,600,000.003130AMAV4 15,000,000.0014613 15,000,000.00 2.500MC5 05/27/2026 31,250.00 0.00 31,250.002.453010 15,000,000.003130AMEX6 15,000,000.0014616 15,000,000.00 1.150MC5 05/26/2026 14,375.00 0.00 14,375.001.128010 15,000,000.003130AMFQ0 15,000,000.0014615 15,000,000.00 1.300MC5 05/27/2026 16,250.00 0.00 16,250.001.276010 15,000,000.003130AMF72 10,000,000.0014624 10,000,000.00 1.750MC5 05/27/2026 14,583.33 0.00 14,583.331.717010 10,000,000.003130AMG22 10,000,000.0014627 10,000,000.00 2.000MC5 06/17/2026 16,666.67 0.00 16,666.671.962010 10,000,000.003130AMLS9 10,000,000.0014622 10,000,000.00 1.375MC5 05/27/2027 11,458.33 0.00 11,458.331.349010 10,000,000.003130AMG55 10,000,000.0014619 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.671.962010 10,000,000.003130AMGG1 10,000,000.0014620 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.671.962010 10,000,000.003130AMFN7 10,000,000.0014617 10,000,000.00 1.250MC5 05/27/2026 10,416.67 0.00 10,416.671.226010 10,000,000.003130AMFT4 20,000,000.0014618 20,000,000.00 1.750MC5 05/27/2026 29,166.67 0.00 29,166.671.717010 20,000,000.003130AMG22 5,000,000.0014654 5,000,000.00 4.440MC5 05/26/2032 18,500.00 0.00 18,500.004.356010 5,000,000.003130AS7K9 2,096,774.1914678 0.00 5.620MC4 01/26/2033 10,147.22 0.00 10,147.225.698010 5,000,000.003130AULM4 4,993,235.3314689 5,000,000.00 4.375FAC 07/06/2026 18,229.17 636.11 18,865.284.448010 4,992,896.763133EPPE9 4,968,056.2814686 5,000,000.00 4.000FAC 04/20/2033 16,666.67 346.84 17,013.514.032010 4,967,871.673133EPGG4 4,970,328.2214690 5,000,000.00 4.125FAC 07/05/2029 17,187.50 636.72 17,824.224.222010 4,969,989.323133EPPF6 4,996,281.2514653 5,000,000.00 4.370MC5 05/17/2032 18,208.33 45.91 18,254.244.302010 4,996,256.823133ENWW6 3,387,096.7714682 0.00 4.620MC5 04/03/2028 13,475.00 0.00 13,475.004.684010 5,000,000.003133EPEK7 4,999,362.8814664 5,000,000.00 3.750FAC 09/22/2025 15,625.00 545.59 16,170.593.808010 4,999,072.493133ENN22

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Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
August 1, 2025 - August 31, 2025
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,995,773.4914669 5,000,000.00 4.500FAC 07/27/2026 18,750.00 372.89 19,122.894.507010 4,995,575.013133ENV72 4,724,256.9914668 5,000,000.00 3.875FAC 09/20/2032 16,145.83 3,240.18 19,386.014.832010 4,722,532.383133ENN30 5,000,000.0014644 5,000,000.00 4.000MC5 04/19/2032 16,666.67 0.00 16,666.673.925010 5,000,000.003133ENUV0 5,000,000.0014676 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.141010 5,000,000.003133EN6K1 4,999,168.0514666 5,000,000.00 4.250FAC 09/30/2025 17,708.33 579.56 18,287.894.307010 4,998,860.193133ENP95 4,999,665.4414667 5,000,000.00 4.125FAC 10/14/2027 17,187.50 12.92 17,200.424.051010 4,999,658.573133ENS50 5,000,000.0014679 5,000,000.00 4.000MC4 02/09/2033 16,666.67 0.00 16,666.673.925010 5,000,000.003133EPAJ4 5,000,000.0014677 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.141010 5,000,000.003133EN6K1 5,000,000.0014647 5,000,000.00 3.630MC5 05/03/2027 15,125.00 0.00 15,125.003.562010 5,000,000.003133ENVV9 10,625,130.9114670 10,000,000.00 7.250MTN 04/01/2032 60,416.67 -7,866.47 52,550.205.823010 10,629,317.90617446HD4 1,000,000.0014688 1,000,000.00 5.202MC6 04/25/2029 4,335.00 0.00 4,335.005.104010 1,000,000.0006051GLG2 10,000,000.0014638 10,000,000.00 1.500MC5 07/20/2026 12,500.00 0.00 12,500.001.472010 10,000,000.0031422XJW3 4,990,690.7014663 5,000,000.00 4.150MTN 09/15/2027 17,291.67 373.35 17,665.024.168010 4,990,491.9824422EWK1 5,010,577.2814562 5,000,000.00 3.950MC3 11/17/2025 16,458.33 -3,524.50 12,933.833.039010 5,012,453.2391159HHU7 4,929,168.9414684 5,000,000.00 3.100MC3 04/27/2026 12,916.67 8,498.63 21,415.305.115010 4,924,645.4891159HHM5 4,477,698.1014693 5,000,000.00 3.000MC3 07/30/2029 12,500.00 11,010.78 23,510.786.182010 4,471,849.3691159HHW3 6,040,729.6614587 5,963,000.00 3.250MTN 05/20/2027 16,149.79 -3,683.69 12,466.102.430010 6,042,690.33747525AU7 5,002,226.2014566 5,000,000.00 3.750MC3 09/15/2025 15,625.00 -2,382.47 13,242.533.117010 5,003,494.29751212AC5 5,012,832.2414570 5,000,000.00 3.650MTN 03/01/2026 15,208.33 -1,984.04 13,224.293.106010 5,013,888.26375558BF9 5,015,882.0314571 5,000,000.00 3.450MTN 01/06/2027 14,375.00 -954.77 13,420.233.150010 5,016,390.22233851CU6 3,745,655.6114574 3,725,000.00 3.450MTN 01/06/2027 10,709.38 -1,241.74 9,467.642.976010 3,746,316.54233851CU6 5,079,270.1714588 5,000,000.00 3.800MTN 10/30/2026 15,833.33 -5,491.34 10,341.992.397010 5,082,187.0807330MAA5 4,516,129.0314655 0.00 5.000MC3 05/31/2032 19,444.44 0.00 19,444.445.069010 5,000,000.0022553PXJ3 967,671.6014659 0.00 3.000MTN 08/07/2025 2,500.00 872.10 3,372.104.103010 4,999,127.9088579YAR2 4,923,474.9214660 5,000,000.00 3.500MTN 08/15/2027 14,583.33 3,197.28 17,780.614.252010 4,921,773.1430303M8G0 4,000,000.0014698 4,000,000.00 5.272MC3 08/03/2026 17,573.33 0.00 17,573.335.173010 4,000,000.00857477CD3 434,963,000.00Subtotal 445,742,136.30 2.467 933,994.823,239.84930,754.98454,772,338.92 Fund: Wells Fargo MM- Regular
197,058,545.8214701 184,685,873.10RRP 699,547.21 0.00 699,547.214.180025 198,481,378.46SYS14701 184,685,873.10Subtotal 197,058,545.82 4.180 699,547.210.00699,547.21198,481,378.46 Fund: Fidelity MM - Regular
37,219,025.3314265 37,348,805.79 0.003RRP 134,106.48 0.00 134,106.484.242040 37,214,699.31SYS14265 37,348,805.79Subtotal 37,219,025.33 4.242 134,106.480.00134,106.4837,214,699.31 656,997,678.89Total 680,019,707.44 3.061 1,767,648.513,239.841,764,408.67690,468,416.69 Exhibit 2-B.2

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Pooled Investments Selected Funds
Interest Earnings
Exhibit 2-B.3
Sorted by Fund - Fund
September 1, 2025 - September 30, 2025
Yield on Average Book Value
Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
4,250,000.0014634 4,250,000.00 1.050MC5 06/30/2026 3,718.75 0.00 3,718.751.065010 4,250,000.003130AMWM0 15,000,000.0014631 15,000,000.00 1.150MC5 06/08/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMPL0 20,000,000.0014630 20,000,000.00 1.200MC5 06/18/2026 20,000.00 0.00 20,000.001.217010 20,000,000.003130AMP71 10,000,000.0014632 10,000,000.00 1.500MC5 06/10/2026 12,500.00 0.00 12,500.001.521010 10,000,000.003130AMMW9 10,000,000.0014642 10,000,000.00 1.750MC5 07/29/2026 14,583.33 0.00 14,583.331.774010 10,000,000.003130AN5U0 40,000,000.0014643 40,000,000.00 1.000MC5 08/26/2026 33,333.33 0.00 33,333.331.014010 40,000,000.003130ANJY7 5,000,000.0014651 5,000,000.00 4.000MC5 05/26/2027 16,666.67 0.00 16,666.674.056010 5,000,000.003130ARYA3 6,425,000.0014645 6,425,000.00 4.100MC5 04/26/2032 21,952.08 0.00 21,952.084.157010 6,425,000.003130ARTE1 20,000,000.0014629 20,000,000.00 1.100MC5 06/03/2026 18,333.33 0.00 18,333.331.115010 20,000,000.003130AMN57 10,000,000.0014628 10,000,000.00 1.150MC5 06/03/2026 9,583.33 0.00 9,583.331.166010 10,000,000.003130AMN24 9,000,000.0014612 9,000,000.00 3.000MC5 04/29/2026 22,500.00 0.00 22,500.003.042010 9,000,000.003130ALZA5 5,600,000.0014611 5,600,000.00 1.250MC5 04/29/2027 5,833.33 0.00 5,833.331.267010 5,600,000.003130AMAV4 15,000,000.0014613 15,000,000.00 2.500MC5 05/27/2026 31,250.00 0.00 31,250.002.535010 15,000,000.003130AMEX6 15,000,000.0014616 15,000,000.00 1.150MC5 05/26/2026 14,375.00 0.00 14,375.001.166010 15,000,000.003130AMFQ0 15,000,000.0014615 15,000,000.00 1.300MC5 05/27/2026 16,250.00 0.00 16,250.001.318010 15,000,000.003130AMF72 10,000,000.0014624 10,000,000.00 1.750MC5 05/27/2026 14,583.33 0.00 14,583.331.774010 10,000,000.003130AMG22 10,000,000.0014627 10,000,000.00 2.000MC5 06/17/2026 16,666.67 0.00 16,666.672.028010 10,000,000.003130AMLS9 10,000,000.0014622 10,000,000.00 1.375MC5 05/27/2027 11,458.33 0.00 11,458.331.394010 10,000,000.003130AMG55 10,000,000.0014619 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.672.028010 10,000,000.003130AMGG1 10,000,000.0014620 10,000,000.00 2.000MC5 05/26/2026 16,666.67 0.00 16,666.672.028010 10,000,000.003130AMFN7 10,000,000.0014617 10,000,000.00 1.250MC5 05/27/2026 10,416.67 0.00 10,416.671.267010 10,000,000.003130AMFT4 20,000,000.0014618 20,000,000.00 1.750MC5 05/27/2026 29,166.67 0.00 29,166.671.774010 20,000,000.003130AMG22 5,000,000.0014654 5,000,000.00 4.440MC5 05/26/2032 18,500.00 0.00 18,500.004.502010 5,000,000.003130AS7K9 4,993,861.5314689 5,000,000.00 4.375FAC 07/06/2026 18,229.17 636.11 18,865.284.596010 4,993,532.873133EPPE9 4,968,397.7014686 5,000,000.00 4.000FAC 04/20/2033 16,666.67 346.83 17,013.504.166010 4,968,218.513133EPGG4 4,970,955.0114690 5,000,000.00 4.125FAC 07/05/2029 17,187.50 636.71 17,824.214.363010 4,970,626.043133EPPF6 4,996,326.4514653 5,000,000.00 4.370MC5 05/17/2032 18,208.33 45.91 18,254.244.445010 4,996,302.733133ENWW6 3,499,872.6914664 0.00 3.750FAC 09/22/2025 10,937.50 381.92 11,319.423.935010 4,999,618.083133ENN22 4,996,140.5614669 5,000,000.00 4.500FAC 07/27/2026 18,750.00 372.89 19,122.894.657010 4,995,947.903133ENV72 4,727,446.6614668 5,000,000.00 3.875FAC 09/20/2032 16,145.83 3,240.19 19,386.024.989010 4,725,772.563133ENN30

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Maturity
Date
Current
Rate
Ending
Par Value
AverageSecurity
TypeFund
Exhibit 2-B.3
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
September 1, 2025 - September 30, 2025
Interest Earnings
Pooled Investments Selected Funds
Annualized
YieldCUSIP Investment #
Interest
Earned
Fund: Pooled Investment - Long Term
5,000,000.0014644 5,000,000.00 4.000MC5 04/19/2032 16,666.67 0.00 16,666.674.056010 5,000,000.003133ENUV0 5,000,000.0014676 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.279010 5,000,000.003133EN6K1 4,833,071.8914666 0.00 4.250FAC 09/30/2025 17,118.06 560.25 17,678.314.450010 4,999,439.753133ENP95 4,999,678.1614667 5,000,000.00 4.125FAC 10/14/2027 17,187.50 12.91 17,200.414.186010 4,999,671.493133ENS50 5,000,000.0014679 5,000,000.00 4.000MC4 02/09/2033 16,666.67 0.00 16,666.674.056010 5,000,000.003133EPAJ4 5,000,000.0014677 5,000,000.00 4.220MC4 01/23/2030 17,583.33 0.00 17,583.334.279010 5,000,000.003133EN6K1 5,000,000.0014647 5,000,000.00 3.630MC5 05/03/2027 15,125.00 0.00 15,125.003.680010 5,000,000.003133ENVV9 10,617,387.0814670 10,000,000.00 7.250MTN 04/01/2032 60,416.67 -7,866.48 52,550.196.022010 10,621,451.43617446HD4 1,000,000.0014688 1,000,000.00 5.202MC6 04/25/2029 4,335.00 0.00 4,335.005.274010 1,000,000.0006051GLG2 10,000,000.0014638 10,000,000.00 1.500MC5 07/20/2026 12,500.00 0.00 12,500.001.521010 10,000,000.0031422XJW3 4,991,058.2314663 5,000,000.00 4.150MTN 09/15/2027 17,291.67 373.35 17,665.024.306010 4,990,865.3324422EWK1 5,007,107.7414562 5,000,000.00 3.950MC3 11/17/2025 16,458.33 -3,524.50 12,933.833.143010 5,008,928.7391159HHU7 4,937,535.0714684 5,000,000.00 3.100MC3 04/27/2026 12,916.67 8,498.63 21,415.305.277010 4,933,144.1191159HHM5 4,488,549.0514693 5,000,000.00 3.000MC3 07/30/2029 12,500.00 11,010.79 23,510.796.373010 4,482,860.1491159HHW3 6,037,103.4114587 5,963,000.00 3.250MTN 05/20/2027 16,149.79 -3,683.68 12,466.112.512010 6,039,006.64747525AU7 2,333,574.2314566 0.00 3.750MC3 09/15/2025 7,291.67 -1,111.82 6,179.853.222010 5,001,111.82751212AC5 5,010,879.1414570 5,000,000.00 3.650MTN 03/01/2026 15,208.33 -1,984.04 13,224.293.211010 5,011,904.22375558BF9 5,014,942.1514571 5,000,000.00 3.450MTN 01/06/2027 14,375.00 -954.77 13,420.233.256010 5,015,435.45233851CU6 3,744,433.2314574 3,725,000.00 3.450MTN 01/06/2027 10,709.38 -1,241.74 9,467.643.076010 3,745,074.80233851CU6 5,073,858.5514588 5,000,000.00 3.800MTN 10/30/2026 15,833.33 -5,491.34 10,341.992.480010 5,076,695.7407330MAA5 4,926,622.3514660 5,000,000.00 3.500MTN 08/15/2027 14,583.33 3,197.29 17,780.624.391010 4,924,970.4230303M8G0 4,000,000.0014698 4,000,000.00 5.272MC3 08/03/2026 17,573.33 0.00 17,573.335.345010 4,000,000.00857477CD3 419,963,000.00Subtotal 430,443,800.86 2.473 875,032.633,455.41871,577.22434,775,578.76 Fund: Wells Fargo MM- Regular
184,811,438.8014701 181,164,648.77RRP 622,519.23 0.00 622,519.234.098025 184,685,873.10SYS14701 181,164,648.77Subtotal 184,811,438.80 4.098 622,519.230.00622,519.23184,685,873.10 Fund: Fidelity MM - Regular
37,353,082.4714265 37,477,106.22 0.003RRP 128,300.43 0.00 128,300.434.179040 37,348,805.79SYS14265 37,477,106.22Subtotal 37,353,082.47 4.179 128,300.430.00128,300.4337,348,805.79 638,604,754.99Total 652,608,322.12 3.031 1,625,852.293,455.411,622,396.88656,810,257.65

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Exhibit 2-C
Medium Term Notes
$65,946,649 10.28%
Federal Agency
$350,269,402 54.58%
Bank and Money Market
Account $225,523,990

35.14%
Pooled Cash and Investments
(Market Value)
as of September 30, 2025

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Exhibit 2-D
$225,523,990
$65,946,649
$350,269,402
$641,740,042
$192,522,013
$641,740,042

BANK ACCOUNTS

MEDIUM TERM NOTES

FEDERAL AGENCY BONDS
City of Berkeley
Current Holdings vs. Policy Limits
as of September 30, 2025
Policy Limits
Current Holdings

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-
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
800,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Investment Value
Pooled and Trust
Cash and Investment Portfolio Trend
as of September 30, 2025

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Attachment 3
Pooled Cash
Investments Gain/Loss on & Investments
Pooled Cash (Book Value) Investments (Market Value)
Retiree Medical Trust Fund
Fund No.
721 BHA 299,914$ 507,064 (7,345) 799,633$ 722 M1=IBEW (245,993) 58,499 (7,849) (195,343) 723 M2=Local 1 3,699,977 10,868,253 (104,650) 14,463,580 724 MUI=Z1 627,357 1,578,164 (7,150) 2,198,370 725 MUI=Z2 to Z6 819,453 2,402,457 (23,737) 3,198,173 726 M535= Local 535 3,356,838 9,003,414 (12,588) 12,347,664 727 M3=Local 790 1,852,707 5,828,377 (114,031) 7,567,053 Total Retiree Medical Trust Fund 10,410,253 30,246,228 (277,349) 40,379,132 Fire Medical Trust Fund
736 Fire Medical Trust Fund 842,744 14,849,592 (494,368) 15,197,968 Total Fire Medical Trust Fund 842,744 14,849,592 (494,368) 15,197,968 Police Medical Trust Fund
731 Police EE Retiree HLT Assistance Plan 181,726 1,748,775 (143,219) 1,787,282 701 Safety Members Pension Fund 128,401 - - 128,401 706 Police Medical Trust Fund (88,691) 2,905,545 (213,211) 2,603,643 Total Police Medical Trust Fund 221,436 4,654,320 (356,430) 4,519,326 Total Trust Funds 11,474,433$ 49,750,140$ (1,128,147)$ 60,096,426$ Summary of Pooled Cash and Investments - Trust Funds
(Market Value)
As of September 30, 2025

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Exhibit 3-A
as of September 2025
CUSIP Investment # Issuer Par Value
Beginning Book
Value
Ending Book
Value Market Value Maturity Date
Moody's
Rating
Current
Rate
Annualized
Yield Interest Earned
Amortization/
Accretion
Adjusted Interest
Earnings
Federal Agency Coupon Securities
3133EFQT7 14361 Fed Farm Credit Bank 2,600,000.00 2,600,727.63 2,600,272.86 2,594,384.00 11/25/2025 AA1 2.700 2.620 17,550.00 (454.77) 17,095.23 Medium Term Notes - Callable
26442UAU8 14705 Duke Energy Progress LLC 2,000,000.00 1,997,715.20 1,997,774.05 2,032,240.00 03/15/2035 AA3 5.050 4.995 25,250.00 58.85 25,308.85 665859AX2 14671 Northern Trust Corp 10,000,000.00 10,012,492.21 10,012,066.50 10,932,500.00 11/02/2032 A2 6.125 6.018 153,125.00 (425.71) 152,699.29 Federal Agency Continuous Callable
3133EPMQ5 14691 Misc Federal Farm Credit Bank - 4,717,537.91 - - 06/16/2033 AA1 5.360 5.484 38,864.47 546.39 39,410.86 3133EPNL5 14692 Misc Federal Farm Credit Bank 3,796,800.00 3,774,626.69 3,775,321.53 3,790,421.38 06/23/2033 AA1 5.180 5.275 49,168.56 694.84 49,863.40 Continous Callable Bonds
797440CD4 14680 San Diego Gas & Electric 2,000,000.00 1,980,575.77 1,980,750.76 1,922,420.00 04/01/2053 A1 5.350 5.421 26,750.00 174.99 26,924.99 Corporate Bonds - Callable
25161FXB9 14706 Deutsche Bank 4,000,000.00 4,000,000.00 4,000,000.00 4,048,880.00 03/29/2040 A1 5.600 5.562 56,000.00 - 56,000.00 Municipal Bonds
786091AG3 14316 SACGEN - 3,788,408.74 - - 08/01/2025 A1 7.250 6.172 22,867.71 (3,408.74) 19,458.97 Savo Island Loan
SYS10988 10988 EMPMED - 54,000.00 - - 09/01/2025 N/A 8.000 7.978 731.80 - 731.80 Preferred Securities
00206R706 14591 AT&T Inc. 1,680,033.60 1,680,033.60 1,680,033.60 1,328,026.56 N/A N/A 4.596 4.660 19,792.06 - 19,792.06 00206R706 14596 AT&T Inc. 1,680,008.40 1,680,008.40 1,680,008.40 1,328,006.64 N/A N/A 4.643 4.704 19,791.77 - 19,791.77 00206R706 14597 AT&T Inc. 2,520,000.00 2,520,000.00 2,520,000.00 1,992,000.00 N/A N/A 4.640 4.707 29,687.50 - 29,687.50 Pooled Cash 10,410,253.19 827,787.72 10,410,253.19 10,410,253.19 N/A N/A 4.275 60,582.01 - 60,582.01 Total 40,687,095.19 39,633,913.87 40,656,480.89 40,379,131.77 5.125 520,160.88 (2,814.15) 517,346.73 Total Pooled Cash and Investments (Book Value) 40,656,480.89$ Gain/Loss on Investments (277,349.12)
Total Pooled Cash and Investments (Market Value) 40,379,131.77 Adjusted Interest Earnings
Retiree Medical Trust Fund
Fund 721 - 727
Investments Interest Earnings
July 01 to September 30, 2025
July 01 to September 30, 2025
Interest Earnings

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Exhibit 3-B
CUSIP Investment # Issuer Par Value
Beginning Book
Value
Ending Book
Value Market Value Maturity Date
Moody's
Rating
Current
Rate
Annualized
Yield Interest Earned
Amortization/
Accretion
Adjusted Interest
Earnings
Medium Term Notes
6174467X1 14318 Morgan Stanley DW DTC#0015 2,000,000.00 2,003,066.44 2,001,136.51 2,001,460.00 11/24/2025 BAA1 5.000 4.572 25,000.00 (1,929.93) 23,070.07 Federal Agency Coupon Securities
3133EFQT7 14362 Fed Farm Credit Bank 2,300,000.00 2,300,643.67 2,300,241.38 2,295,032.00 11/25/2025 AA1 2.700 2.608 15,525.00 (402.29) 15,122.71 Federal Agency Continuously Callable
3133EPMQ5 14691 Fire Federal Farm Credit Bank - 35,287.10 - - 06/16/2033 AA1 5.360 5.445 290.71 4.09 294.80 3133EPNL5 14692 Fire Federal Farm Credit Bank 28,400.00 28,234.14 28,239.34 28,352.29 06/23/2033 AA1 5.180 5.241 367.78 5.20 372.98 3133ER6C0 14704 Federal Farm Credit Bank 4,000,000.00 4,000,000.00 4,000,000.00 4,016,160.00 03/06/2025 AA1 5.740 5.693 57,400.00 - 57,400.00 3130B5CR7 14703 Federal Home Loan Banks 4,000,000.00 4,000,000.00 4,000,000.00 4,022,240.00 03/06/2025 AA1 5.890 5.842 58,900.00 - 58,900.00 Preferred Securities
00206R706 14592 AT&T Inc. 1,679,983.20 1,679,983.20 1,679,983.20 1,327,986.72 N/A N/A 4.596 4.674 19,791.47 - 19,791.47 00206R706 14594 AT&T Inc. 839,991.60 839,991.60 839,991.60 663,993.36 N/A N/A 4.640 4.674 9,895.73 - 9,895.73 Pooled Cash 842,743.87 400,826.99 842,743.87 842,743.87 N/A N/A 4.645 6,312.36 - 6,312.36 Total 15,691,118.67$ 15,288,033.14$ 15,692,335.90$ 15,197,968.24$ 4.963 193,483.05$ (2,322.93)$ 191,160.12$ Total Pooled Cash and Investments (Book Value) 15,692,335.90$ Gain/Loss on Investments (494,367.66)
Total Pooled Cash and Investments (Market Value) 15,197,968.24 Fire Retiree Medical
Fund 736
Adjusted Interest Earnings
July 01 to September 30, 2025as of September 30, 2025
Investments Interest Earnings
Interest Earnings
July 01 to September 30, 2025

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Exhibit 3-C
CUSIP Investment # Issuer Par Value
Beginning Book
Value
Ending Book
Value Market Value Maturity Date
Moody's
Rating
Current
Rate
Annualized
Yield Interest Earned
Amortization/
Accretion
Adjusted Interest
Earnings
Medium Term Notes
6174467X1 14319 Morgan Stanley DW DTC#0015 500,000.00 500,766.61 500,284.13 500,365.00 11/24/2025 BAA1 5.000 4.572 6,250.00 (482.48) 5,767.52 Federal Agency Coupon Securities
3133EFQT7 14363 Fed. Farm Credit Banks 2,300,000.00 2,300,643.67 2,300,241.38 2,295,032.00 11/25/2025 AA1 2.700 2.608 15,525.00 (402.29) 15,122.71 Federal Agency Continuously Callable
3133EPMQ5 14691 Pol Federal Farm Credit Bank - 217,189.64 - - 06/16/2033 AA1 5.360 5.445 1,789.28 25.16 1,814.44 3133EPNL5 14692 Pol Federal Farm Credit Bank 174,800.00 173,779.17 173,811.16 174,506.34 06/23/2033 AA1 5.180 5.240 2,263.66 31.99 2,295.65 Preferred Securities
00206R706 14593 AT&T Inc. 1,679,983.20 1,679,983.20 1,679,983.20 1,327,986.72 N/A N/A 4.596 4.674 19,791.47 - 19,791.47 Pooled Cash 93,035.02 163,017.51 93,035.02 93,035.02 N/A N/A -0.586 (234.94) - (234.94) Total 4,747,818.22$ 5,035,379.80$ 4,747,354.89$ 4,390,925.08$ 3.574 45,384.47$ (827.62)$ 44,556.85$ Total Pooled Cash and Investments (Book Value) 4,747,354.89$ Gain/Loss on Investments (356,429.81)
Total Pooled Cash and Investments (Market Value) 4,390,925.08 Fund 701 Safety Members Pension Fund Cash 128,401.00
Total Investments (Market Value) and Cash 4,519,326.08
Police Retiree Medical
Fund 731 and 706
Adjusted Interest Earnings
Investments Interest Earnings
as of September 2025 July 01 to September 30, 2025
Interest Earnings
July 01 to September 30, 2025

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Internal
Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/

INFORMATION CALENDAR
February 24, 2026
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Scott Gilman, Director, Health, Housing, and Community Services Subject: Restaurant Inspection Audit Status Report

INTRODUCTION
On July 10, 2024, the City Auditor submitted an audit report1 on the status of Restaurant Inspections to the City Council, including recommendations to improve the overall delivery of services for the food safety inspection program. This is the third status report updating the City Council on the implementation of those recommendations.

CURRENT SITUATION AND ITS EFFECTS
The audit included nine recommendations. As of the writing of this report:
 Two recommendations are fully implemented.
 Five recommendations are partly implemented.
 One recommendation has started.
 One recommendation has not yet started.

Recommendations currently tracked as "partly implemented" need longer-term tracking and the implementation of technological solutions, such as the completion of the upgrade to the Accela database.

The Environmental Health Division (EHD) is currently staffed with four food inspectors and a supervisor.

EHD has developed a detailed policy for maintaining the inventory list of food facilities with data quality at the forefront. This includes confirming risk designations for all facilities and validation that the inventory is accurate.

City staff are currently in the process of working with a third-party vendor to convert to a new database on the Accela Civic Platform, as the current database is sunsetting. This 1 Berkeley Restaurant Inspections: Chronically Understaffed Program Did Not Meet Targets

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Internal
Restaurant Inspection Audit Status Report INFORMATION CALENDAR February 24, 2026

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conversion process involves reviewing and automation of all applications and permits for all programs, analysis of the workflows, and development of a public portal.

Additionally, EHD has recently completed a division-wide fee study to address revenue concerns as well as evaluate current staffing needs to determine adequacy for the food safety inspection program and other departmental responsibilities, including vector control, noise complaints, stormwater inspections, swimming pools and spas, retail tobacco, and body art. New fee schedule recommendations and a placarding program proposal will be presented to Council as part of the budget process.

For a detailed table of audit report recommendations, corrective action plans, and implementation progress, see Attachment 1. The next status report to Council is anticipated in Fall 2026.

BACKGROUND
Local health jurisdictions are responsible for determining the frequency of inspections based on the needs of the community and available resources. In 2015, EHD transitioned to a risk-based food inspection process, following the guidelines established by the Federal Food and Drug Administration's (FDA) Voluntary National Retail Food Regulatory Program Standards. This program categorizes permitted food facilities (restaurants, grocery markets, schools, bars, etc.) based on the complexity of food handling and populations served, assigning them to one of four "Risk Categories" (RC-1 to RC-4). Each RC designation dictates the minimum number of annual inspections a facility receives. During the early stages of the COVID-19 pandemic, EHD staff were reassigned to assist with the pandemic. In addition, EHD faced staffing shortages due to promotions to other departments, prolonged staff illnesses, and hiring freezes in FY2021 and FY2022. Once the hiring freeze was lifted, EHD experienced additional budgetary challenges and a limited pool of qualified applicants for a vacant supervisor and inspector positions, a statewide issue for jurisdictions providing environmental health services. Unfortunately, during this time the City’s food inspection policies were not adjusted resulting in audit findings of delinquent inspections.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
There are no identifiable environmental effects associated with the subject of this report.

POSSIBLE FUTURE ACTION
On September 24, 2024, Council made a budget referral to the November 2024 budget process of $100,000 for the City Manager to engage an independent consultant to conduct an analysis of the current structure of the Environmental Health Food Inspection Program and provide recommendations for alternative models, staffing levels, and increased use of technology to improve customer service. To date, this referral has not been included in final budget proposals.

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Internal
Restaurant Inspection Audit Status Report INFORMATION CALENDAR February 24, 2026

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FISCAL IMPACTS OF POSSIBLE FUTURE ACTION
As noted above, the cost for conducting this analysis of the EHD programs is estimated to be $100,000, which would be funded by the City’s General Fund.

CONTACT PERSON
Scott Gilman, Director, Health, Housing, and Community Services (510) 981-5100 Attachments:
1: Food Inspections Recommendations Status Update Table – Jan 2026

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Internal
Attachment 1
Audit Title: Berkeley Restaurant Inspections:

Chronically Understaffed Program Did Not Meet Targets
Issue Date: July 10, 2024
Finding Recommendation Department Last Period:

Status
Current Status Update
The Division was
significantly
behind on
inspections in
2023, increasing
health risk.

1.1 Develop a plan to improve
coverage of routine inspections
throughout the City, which may
require the Division to prioritize
health and safety duties over
other responsibilities. As part of
this process: (a) Evaluate
inspection targets to determine if
current inspection frequencies are
achievable or establish different
temporary targets to adapt to
periods of understaffing. (b)
Establish a baseline of inspection
coverage for all permitted food
facilities in the City and prioritize
inspection of facilities with high
risk and very high risk
designations that were not
inspected in 2023.

HHCS Implemented Implemented. The Division
developed new policies that
include revised inspection targets
for periods of short staffing and a
baseline of at least one inspection
per year. According to the
Division, all high and very high
risk facilities that were not
inspected in 2023 have now been
inspected.

The Division was
significantly
behind on
inspections in
2023, increasing
health risk.

1.2 Develop a plan to ensure timely
response to complaints involving
alleged foodborne illness, which
may require the Division to
prioritize health and safety duties
over other responsibilities.

HHCS Partly
Implemented
Implemented. The Division has
strengthened its internal policy for
addressing complaints in a timely
fashion. Policy improvements
include documented
responsibilities for staff to ensure
complaints are received by admin
staff and/or other designated staff
and prioritized by inspectors
within 24 hours or one business
day.

The Division did
not track
spending and left
critical positions
vacant.

2.1 Work with the Budget Office to
track how the food inspection
program revenues are used.

HHCS Partly
Implemented
Partly implemented. The
Division is now using program-
specific codes to track revenues
and expenditures related to food
facility inspections. A
comprehensive report comparing
revenues and expenditures for a
full fiscal year was not yet
available. Our team will reassess
the status of this recommendation
once the FY 2026 report is
available.

The Division did
not track
spending and left
critical positions
vacant.

2.2 Take the following steps to fill
positions and assess program
staffing: (a) Open recruitment for
the supervisor position. (b) If the
recruitments for the supervisor
and food inspector positions do
not yield qualified candidates,
work with the Human Resources
Department (HR) to develop
targeted recruitments for the
inspector and supervisor roles.

HHCS Partly
Implemented
Partly implemented. The
Division worked with a consultant
to complete a fee study, which
council will consider soon.

According to the Division, and
subject to Council approval, fee
changes based on the study’s
results study could potentially
help support increased staffing. In
a future update, the Division will
need to show that they have

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Finding Recommendation Department Last Period:

Status
Current Status Update
This may include conducting an
analysis of compensation or other
factors that affect recruitment. (c)
Develop a trainee program to
build a pipeline into the Division’s
inspector positions. (d) Work with
HR as needed to identify staffing
resources needed to meet
inspection targets.
assessed staffing resources to
meet inspection targets. We will
also follow up on the Division’s
plans to develop a training
program once staffing stabilizes.

The Division did
not track
spending and left
critical positions
vacant.

2.3 Make the following updates to the
inspection data: (a) Add a risk
designation to all food facilities in
the Envision database. (b)
Correct the date of last inspection
in the Envision software that
inspectors use during inspections
or develop a workaround to
ensure inspectors have an
accurate list of facilities prioritized
by last inspection date. (c)
Develop a process to regularly
verify that the Envision database
includes all food facilities that
should be permitted and
inspected.

HHCS Partly
Implemented
Partly implemented. The
Division has updated its policies
to include stronger requirements
for data management to ensure
that risk designations are
documented for all facilities and
that the inventory of food facilities
is complete and up to date. To
mark this recommendation as
implemented, the Division would
need to confirm that the new
database can produce an
accurate list of facilities prioritized
by the last inspection date.

The Division did
not track
spending and left
critical positions
vacant.

2.4 Work with the Department of
Information Technology (IT) to
develop list of database
functionalities and/or data points
needed to help meet the
Division’s targets and produce
reports. If the current database
cannot provide this functionality,
document the limitations of the
current database and include
these requirements in the future
request for proposals for a new
database.

HHCS Partly
Implemented
Partly implemented. The
Division estimates that the new
database will be live in June
2026. We will reassess the status
of this recommendation once the
new database is in place.

The Division did
not track
spending and left
critical positions
vacant.

2.5 Identify performance metrics and
report them to the public at least
annually.

HHCS Partly
Implemented
Partly implemented. After
developing and identifying
preliminary performance metrics
for the Food Safety and
Inspection program, the Division
has paused this project while staff
focus on migrating to the new
database.

Public
information
about food
safety was
limited.

3.1 Work with Department of
Information Technology (IT) to
update the online system for
sharing information on food
inspections. As part of this
process: (a) Develop internal
guidance informed by state code
that details what information the
Division will share with the public
online and defines responsibility
for managing the data. (b) Make
inspection history available online
for all permitted food facilities in
Berkeley. This could include
HHCS Not Started Not started. After removing
information about food
inspections from the City’s Open
Data Portal, the Division updated
its webpage to include
instructions for requesting
individual inspection reports from
the Environmental Health
Division. However, the food
inspection data is still not posted
on the Open Data Portal.

According to the Division, the
estimated timeline for the new

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Finding Recommendation Department Last Period:

Status
Current Status Update
sharing a copy of the most recent
inspection report.
public portal featuring inspection
reports is summer 2026.

Public
information
about food
safety was
limited.

3.2 Develop a plan to implement
placarding in Berkeley once
staffing levels are stable. As part
of this process: (a) Assess
resources needed to implement
placarding. (b) Consider adding
elements such as community
engagement for designing and
implementing evidence-based,
equitable placarding.

HHCS Not Started Started. In their upcoming report
to City Council on the recently
completed fee study, the Division
developed a budget and staffing
proposal for implementing and
sustaining a placarding program
based on information from the
study. Additionally, the Division
reported that program supervisor
has completed training in
inspection standardization to
support an evidence-based
placarding program. The Division
plans to implement standards
across the Division in 2026.

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2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-6750 ● TDD: (510) 981-6903 E-mail: [email protected] Website: http://www.berkeleyca.gov/your-government/city-audits

INFORMATION CALENDAR
February 24, 2026

To: Honorable Mayor and Members of the City Council
From: Jenny Wong, City Auditor
Subject: A Guide to Measuring Performance in the City of Berkeley

INTRODUCTION
The Auditor’s Office developed a special report that provides a practical guide for departments and city leadership to develop meaningful performance measures in the City of Berkeley. We developed this report to provide city management and City Council with information to assist with the fiscal year 2027-2028 budget process.

CURRENT SITUATION AND ITS EFFECTS
Governments can use performance measures to understand operations, make informed decisions, and measure progress towards goals. Performance measures provide governments with the data they need to make service improvements and maintain accountability. Quality performance measures help prioritize limited resources on specific department or citywide goals. During a budget deficit period, performance measures can help city leadership focus resources on programs that are successful and matter most to the Berkeley community.

This report summarizes performance management best practices from leading organizations such as the Government Finance Officers Association (GFOA) and the International City/County Management Association (ICMA). We also reviewed Berkeley’s most recent budget books to identify the performance measures currently reported by a few departments. While this is not a comprehensive review of performance measures in every department, we provided three departments as examples to understand how the City currently presents and uses performance measures.

In addition, we reviewed performance measures from comparable jurisdictions to identify common practices and examples of how other cities structure and report performance measures.

Finally, this report synthesizes best practices from comparable jurisdictions and leading organizations to develop opportunities for management consideration on performance management. To enhance the City’s performance measurement process, we suggest management consider organizing and streamlining reporting efforts, revisiting Strategic Plan goals and alignment of performance measures, and exploring outcomes-based budgeting.

BACKGROUND
We developed this report based on a request from Councilmember Blackaby asking our office to conduct benchmarking and best-practice research on outcome-based budget metrics and compare selected city departments’ budget materials with those of peer jurisdictions. This was following a related item he authored requesting the City Manager develop 10-20 measurable

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A Guide to Measuring Performance in the City of Berkeley INFORMATION CALENDAR

Pg. 2 of 2

goals and metrics that reflect key priorities for the City. That item was recently approved by the Health, Life Enrichment, Equity and Community Policy Committee.

ENVIRONMENTAL SUSTAINABILITY
There are no identifiable environmental effects or opportunities associated with this report.

POSSIBLE FUTURE ACTION
City Council may recommend city management consider this framework when developing performance measures and citywide goals. This report provides a practical guide for departments and city leadership to develop meaningful performance measures in the City of Berkeley. The report also provides opportunities for management consideration regarding performance measure reporting and outcomes-based budgeting.

FISCAL IMPACTS OF POSSIBLE FUTURE ACTION
Quality performance measures help prioritize limited resources on specific department or citywide goals. During a budget deficit period, specific performance measures can help city leadership focus resources on programs that are successful and matter most to the Berkeley community. Further exploration of outcomes-based budgeting practices may have implications for how Berkeley structures and allocates its budget. Additional resources may be needed for departments to fully implement comprehensive outcomes-based budgeting.

CONTACT PERSON
Jenny Wong, City Auditor, City Auditor’s Office, 510-981-6750 Attachments:
1: Report: A Guide to Measuring Performance in the City of Berkeley

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Promoting transparency and accountability in Berkeley government Audit Report
May 27, 2021
A Guide to
Measuring
Performance in
the City of
Berkeley
Special Report
February 5, 2026
Jenny Wong, City Auditor
Erin Mullin, Audit Manager
Kendle Kuechle, Auditor II

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A Guide to Measuring Performance in the City of Berkeley 2 Table of Contents
Introduction ............................................................................................................................ 3 Purpose ............................................................................................................................... 3 Scope and Methodology ...................................................................................................... 3 Performance Measures: A Framework .................................................................................... 5 Background and Definitions ................................................................................................ 5 How to Develop Quality Performance Measures ................................................................. 6 Step 1: Identify stakeholder and population needs. ......................................................... 6 Step 2: Identify desired outcomes based on population needs. ....................................... 7 Step 3: Determine how to measure these outcomes. ........................................................ 7 Step 4: Develop a data collection process. ...................................................................... 8 Step 5: Establish baselines and targets. ........................................................................... 8 Step 6: Establish reporting methods. ............................................................................... 8 City of Berkeley Performance Measures. .............................................................................. 10 How does the City of Berkeley measure performance? ..................................................... 10 Information Technology ................................................................................................. 11 Parks, Recreation and Waterfront .................................................................................. 13 Police ............................................................................................................................. 14 How do comparable cities report performance data? ....................................................... 15 Reporting methods: ....................................................................................................... 15 Outcomes-based budgeting: ......................................................................................... 16 Opportunities for Management Consideration ..................................................................... 18

1. Organize and streamline reporting efforts. ........................................................... 18

2. Revisit Strategic Plan goals and alignment of performance measures. .................. 18

3. Explore outcomes-based budgeting. .................................................................... 18

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A Guide to Measuring Performance in the City of Berkeley 3 Introduction
Purpose
Governments can use performance measures to understand operations, make informed decisions, and measure progress towards goals. Performance measures provide governments with the data they need to make service improvements and maintain accountability. The purpose of this special report is to provide a practical, user-friendly framework for developing clear, meaningful performance measures in the City of Berkeley based on local government best practices.

This work is based on a request from Councilmember Blackaby asking our office to conduct benchmarking and best-practice research on outcome-based budget metrics and compare selected city departments’ budget materials with those of peer jurisdictions. This was following a related item he authored requesting the City Manager develop 10-20 measurable goals and metrics that reflect key priorities for the City. That item was referred to the Health, Life Enrichment, Equity and Community Policy Committee.

This report is not an audit and does not evaluate departmental performance. This report focuses on performance measures that departments report in city budgets and uses three departments as examples. The report also highlights common performance measurement practices from comparable jurisdictions and identifies considerations that may support future performance management efforts in Berkeley.

Scope and Methodology
To develop this report, we reviewed and summarized performance management best practices from leading organizations such as the Government Finance Officers Association (GFOA) and the International City/County Management Association (ICMA).

We also reviewed Berkeley’s most recent budget books to identify the performance measures currently reported by departments. The analysis is limited to performance measures published in the budget books and does not include other performance data or reporting practices departments use in annual reports, dashboards, grant reporting, or internal management tools.

We selected three departments as examples to understand how the City currently presents and uses performance measures, not to assess overall departmental performance. We interviewed leadership from these departments to understand their process for measuring performance, along with any challenges and opportunities in this area.

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A Guide to Measuring Performance in the City of Berkeley 4 In addition, we reviewed performance measures from comparable jurisdictions to identify co
mmon practices and examples of how other cities structure and report performance measures.

Finally, we synthesized best practices from comparable jurisdictions and leading organizations to develop opportunities for management consideration on performance management.

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A Guide to Measuring Performance in the City of Berkeley 5 Performance Measures: A Framework
Background and Definitions
The Berkeley City Auditor’s Office undertook this work as a research-focused, non-audit project in response to City Council interest in strengthening the City’s use of performance measures to achieve goals and understanding best practices in this area. We prepared this report quickly to provide Council and city management with information to assist with the fiscal year 2027-2028 budget process. Performance measures are reported in Berkeley’s budgets and can provide valuable information on how the City is achieving its goals.

What is a performance measure?
A performance measure is a quantitative measure or qualitative assessment of an agency’s work. In other words, performance measures tell an agency how much or how well they are doing in specific areas – for example, the number of permits processed in a year or the customer satisfaction rating of a program. Performance measures are also referred to as performance metrics or Key Performance Indicators (KPIs). Governments use performance measures to collect information about operations, track progress towards goals, and make informed decisions.

Performance management is the use of performance measurement data to assess how well an organization is performing and to improve progress toward its goals.

Why are performance measures important?
Performance measures serve important purposes for different stakeholders:
• Members of the public can use performance measures to understand how city services are performing and how their taxpayer money is being used. • City Council can use performance measures to inform budget and policy decisions. City Council can also use performance data to demonstrate that they are accountable to taxpayers and that the City is using public funds efficiently and effectively. • City management can use performance data to prioritize resources and guide operational decisions. Performance data can help identify where additional investment may be needed and where programs are performing well.
• Department leadership can review performance data to improve operations.

Performance measures allow departments to measure results, correct mistakes and demonstrate progress towards department-wide goals.

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A Guide to Measuring Performance in the City of Berkeley 6 Quality performance measures help prioritize limited resources on specific department or ci
tywide goals. During a budget deficit period, specific performance measures can help city leadership focus resources on programs that are successful and matter most to the Berkeley
community.

Performance measures are also used by external entities. Grantors may require grantees to report performance measures to demonstrate compliance with grant terms, such as the number of trees planted under a tree-planting grant. In other cases, the City is required to report data to external entities to ensure compliance with state or federal requirements. For instance, the state of California requires dispatch centers to answer 95% of 911 calls within 15 seconds, which requires Berkeley to collect and report on 911 call answer times.

The City of Berkeley uses public funds to provide services, and therefore is accountable to taxpayers, grant providers, state and federal agencies, and people who rely on City services, whether as a resident or visitor. The development and consistent use of clear, appropriate performance measures supports transparency, accountability, and informed decision-making across the organization.

How to Develop Quality Performance Measures
The process of developing performance measures may require staff time and resources.

However, quality performance measures can help leaders make better decisions about budget and priorities, resulting in future cost savings and efficiencies.

Developing high-quality measures typically starts with clearly defining department or division goals. The following framework outlines a practical approach for developing meaningful performance measures:

Step 1: Identify stakeholder and population needs.

The first step involves identifying the population you serve as well as their needs and expectations. For example, the Berkeley Fire department serves residents and visitors who use emergency services, whereas the Berkeley Human Resources department mainly serves city staff and Berkeley job applicants. Understanding who the primary audience is helps clarify what success should look like.

Next, identify the population’s key expectations or needs. For the Fire department, this could be Berkeley residents expect a quick response to 911 calls. For Human Resources, city job applicants expect timely processing of job applications. It may be beneficial to ask the community about their needs and priorities. The Santa Monica Human Services division

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A Guide to Measuring Performance in the City of Berkeley 7 redeveloped their performance measures in 2020 by asking the community through surveys and mee
tings, “What does an effective human service system in Santa Monica look like to you?” The division then developed key outcomes and measures based on those priorities.

Step 2: Identify desired outcomes based on population needs.

The next step is to frame the population’s needs and expectations as an outcome of your work.

For instance, Berkeley residents receive a fast response to 911 calls, or job applicants receive a prompt review of their application. This framing is important because it connects performance measures to results, ensuring that performance measures reflect what matters most to people using a service.

Step 3: Determine how to measure these outcomes.

This step involves determining how to measure whether you are achieving desired outcomes.

Some relevant questions to ask during this process are: how will people know whether we are successful? What data will demonstrate success in achieving these outcomes? There are multiple types of performance measures that can be useful in measuring an agency’s work:
• Inputs – the resources used by an activity or process.

Example: money or staff allocated to a program.
• Outputs – the goods or services delivered through a program.

Example: number of interviews conducted, number of permits approved. • Efficiency – the unit cost to deliver a product or service. This could also be a ratio of inputs to outputs.

Example: building code enforcement complaints investigated per full-time employee, cost per successful foster home placement.
• Outcomes – how well an agency is providing services, or the overall benefit from a program or service.

Example: reduction in traffic-related deaths, percentage of park users reporting satisfaction with park services.

Outcomes are considered the optimal performance measures, as they provide a clear measure of whether an agency is achieving its goals. However, other types of measures can provide

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A Guide to Measuring Performance in the City of Berkeley 8 important information or context associated with the desired outcome. Additional types of mea
sures include benchmarks, which compare the performance of a service against peers or leaders in the field – f
or example, comparing Berkeley’s 911 response times to those of similar cities. Other measures include process measures, which describe aspects of a business process such as the error rate – for example, the percentage of paychecks with identified errors.

Performance measures should also be understandable to a broad audience. Good performance measures align with the SMART model: they are specific, measurable, achievable, results- oriented, and time-based or reported consistently over time.

Step 4: Develop a data collection process.

The next step is to determine how you will collect and maintain data to report on the selected performance measures. This could include identifying data sources, assigning staff, establishing frequency of data collection, and estimating any costs associated with collecting data.

Step 5: Establish baselines and targets.

It is also important to set meaningful targets for each performance measure. Initially, this involves gathering data on current performance to establish baselines. This will help determine the level of performance that is possible given current performance. The next step is to identify reasonable performance targets for each measure. Targets could be selected based on past performance data, data from comparable jurisdictions, standards from professional associations, or state and federal requirements. For example, review all job applications within three weeks or respond to all fires within eight minutes. If your department consistently falls short of targets, that indicates the targets are not feasible and should be updated.

Targets help readers to understand the context behind performance measures and if the City is successfully meeting its goals. Without targets, it can be difficult to establish accountability for performance measures. Targets should also signal when performance requires management attention or corrective action. However, performance data may not always be perfect. In some cases, it may be helpful to establish realistic short-term goals to track progress toward more ambitious long-term goals. This could demonstrate the department’s commitment to continuous improvement.

Step 6: Establish reporting methods.

The last step is to determine how and how often you will report performance measurement data.

In the City of Berkeley, departments report on performance measures in the biennial budget book. However, there may be opportunities for additional reporting, such as a citywide annual report or a performance dashboard for users to access up-to-date information. It is important to

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A Guide to Measuring Performance in the City of Berkeley 9 standardize reporting periods and report data regularly so that stakeholders can track progress and v
iew trends. Performance measure reporting should also provide context and a brief explanation of the measures for readers unfamiliar with the data, as well as communicate how each measure connects to desired outcomes.

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A Guide to Measuring Performance in the City of Berkeley 10 City of Berkeley Performance Measures.

How does the City of Berkeley measure performance?
Background on Berkeley’s Performance Measures
The City first reported on performance measures by department in the fiscal year (FY) 2022 budget book. In 2019, the Police and Planning departments participated in a pilot program to develop performance measures reflective of the City’s Strategic Plan goals, with other city departments joining this effort in subsequent years. The FY 2022 budget book stated that departments would refine and improve their performance measures to make them better tools for decision-making and continuous improvement.

Berkeley departments continued to report performance measures in the FY 2023-2024 and FY 2025-2026 budget books. Some departments collect and report additional performance data outside of the budget process through annual reports, dashboards, or program-specific reporting. However, the budget book is the most centralized location to access performance measurement data by department.

Department Analysis
To illustrate how the City of Berkeley currently measures performance, we selected three city departments to highlight: Information Technology (IT); Parks, Recreation and Waterfront; and Police. The following analysis only reflects what is reported in the budget books, it is not a full assessment of departmental performance or reporting of performance.

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A Guide to Measuring Performance in the City of Berkeley 11 Information Technology
Table 1. Information Technology Performance Measures
Measure Type of
Measure
Target FY 22 Budget
Actual
FY 23-24
Budget
Actual
FY 25-26
Budget
Actual
Metrics collected using
network management tools
that indicate the total
“uptime” of the City servers
Outcome 99.999%* 98.888% Data
Server Uptime,

99.850%
Phone Server
Uptime
Not reported Not reported
Number of queries
answered on the first
call by 311 (external)
Process Increase 84% first call
resolution, 311
84% first call
resolution, 311

99.92% first
call
resolution, 311
Number of queries
answered on the first
call by Help Desk
(internal)
Process Increase 45% first call
resolution, Help
Desk
45% first call
resolution,
Help Desk
36% first call
resolution,
Help Desk
Abandoned calls
divided by the total
number of inbound
calls received by 311
(external)
Process Decrease 15% abandon
rate, 311
20% abandon
rate, 311
31% abandon
rate, 311
Abandoned calls
divided by the total
number of inbound
calls received by Help
Desk (internal)
Process Decrease 21% abandon
rate, Help Desk
Not reported 13% abandon
rate, Help
Desk
Count of projects and
percent complete
Output n/a 326 total
projects, 51%
complete
Not reported 25 of 48
projects or
52% complete
Volume of requests Input n/a Not reported Not reported 117,593 total interactions,
311; 5004 total
requests,
Service
Desk

*Target was 99.92% in FY 25-26
Note: This table reflects performance measures as reported in the budget books. We did not review the source data for accuracy.

Source: Auditor Analysis of FY 22, FY 23-24 and FY 25-26 City Budget Books The IT department reports on metrics that touch on various aspects of their work, such as 311 Customer Service calls and network management. However, IT’s published performance measures only capture a small portion of their overall work. According to the IT Director, some

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A Guide to Measuring Performance in the City of Berkeley 12 areas of their work should not be publicly reported or do not translate well into simple metrics, such
as cybersecurity, infrastructure reliance, and system modernization.

Berkeley’s IT department is also considering starting an IT Governance Committee to manage and prioritize technology and infrastructure projects. According to the IT Director, there could be future opportunities to add project management performance metrics related to projects managed by the Governance Committee to communicate progress and value without disclosing sensitive information.

Our analysis included a review of comparable cities to Berkeley and commonly reported performance measures among departments in other jurisdictions. To understand how other cities report performance, we reviewed publicly available information from several jurisdictions similar to Berkeley in terms of population size or location. The jurisdictions we selected were Hayward (CA), Fremont (CA), Oakland (CA), Pasadena (CA), Kirkland (WA), Redmond (WA), and Fort Collins (CO).

Direct comparisons across cities can be limited by differences in services, reporting structures, and overall goals and priorities. However, there were some common measures reported by IT departments in other cities that may be relevant to Berkeley:
• Number or percentage of service requests completed in a given timeframe. • Number or percentage of projects completed.
• Percent of employees up to date on cybersecurity training.

Some of these measures are outcome-oriented, such as the percentage of employees up-to-date on cybersecurity training. These measures illustrate how other IT departments measure their work and track progress toward goals.

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A Guide to Measuring Performance in the City of Berkeley 13 Parks, Recreation and Waterfront
Table 2. Parks, Recreation and Waterfront Performance Measures Measure Type of
Measure
Target FY 22 Budget
Actual
FY 23-24
Budget
Actual
FY 25-26
Budget
Actual
Number of community
communications,
including brochures,
press releases and
flyers
Output Increase 26
communications
54 communications
54 communications
Number of, and time
spent at, community
meetings/pop-ups
Input Increase 24 community
meetings/pop-
ups, 48.5 hours
35 community
meetings/pop-
ups, 95 hours
35 community
meetings/pop-
ups, 95 hours
Number of, and time
spent at, Commission
and Sub-Committee
meetings
Input Increase 49 Commission
and Sub-
Committee
meetings, 115
hours
32 Commission
and Sub-
Committee
meetings, 75
hours
32 Commission
and Sub-
Committee
meetings, 75
hours
Amount of fire fuel
debris tonnage
removed from the hills
Output Increase 154.5 tons 327 tons 327 tons
Note: This table reflects performance measures as reported in the budget books. We did not review the source data for accuracy.

Source: Auditor Analysis of FY 22, FY 23-24 an d FY 25-26 City Budget Books The Parks, Recreation and Waterfront department reports on metrics related to forestry activities and community engagement. According to department leadership, their profession requires a significant amount of data collection and reporting beyond what appears in the budget book, such as data on water quality at city-run camps.

The department also collects qualitative feedback through focus groups for camps and other youth programs. In addition, the department reports on capital projects in the City’s Capital Improvement Program book. Department leadership noted that there may be opportunities to communicate more of the work they do through performance measures in the budget book, such as the number of capital projects completed.

Some benchmark cities reported the following performance measures that may be applicable to Berkeley’s Parks, Recreation and Waterfront department:
• Customer satisfaction rating for parks or recreation programming. • Number of people accessing park areas or community programming. • Parks maintenance requests responded to in a given timeframe.

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A Guide to Measuring Performance in the City of Berkeley 14 These measures include outcome measures, such as the customer satisfaction rating for parks or re
creation programming, while other measures describe the workload or process of that department.

Police
Table 3. Police Performance Measures
Measure Type of
Measure
Target FY 22 Budget
Actual
FY 23-24
Budget
Actual
FY 25-26
Budget
Actual
Number of deaths
relating to
vehicles/bicycles
Outcome Decrease 2 deaths (2
vehicle, 0
bicycle)
8 deaths (8
vehicle, 0
bicycle)
0 deaths
Number of accidents
relating to
vehicles/bicycles
Outcome Decrease 383 accidents
(316 vehicle, 67
bicycle)
722 accidents
(625 vehicle, 97
bicycle)
873 accidents
(665 vehicle, 110
bicycle, 99
pedestrian)
Police Department
demographic
information compared
to community
information
Benchmark Parity The department
is within 10% of
parity for race,
but not
for gender.

86.5% male,

15.5% female;

14.9% Black,

10.6% Hispanic,

60.2% White
The department
is within 10% of
parity for race,
but not for
gender. 84.0%
male,

16.0% female;

14.1% Black,

10.7% Hispanic,

60.4% White
The department
is within 15.9%
of parity for race,
but not for
gender. 85%
male, 15%
female;14.1%
Black, 10.7%
Hispanic, 60.4%
White
Number of uses of
force
Outcome Decrease 90 incidents Not Reported
(Reporting
standard
changed)

0.05% of the
63,791 total calls
for service.

Number of external
personnel complaints
made against the
Police Department,
compared to number
of Calls for Service
Outcome Decrease 24 complaints,
58,095 calls for
service
23 complaints;
60,393 calls for
service
36 complaints;
63,791 calls for
service
Number of
commendations the
Police Department
receives
Outcome Increase 111
commendations
137
commendations
13 commendations
Note: This table reflects performance measures as reported in the budget books. We did not review the source data for accuracy.

Source: Auditor Analysis of FY 22, FY 23-24 an d FY 25-26 City Budget Books The Berkeley Police department (BPD) reports on metrics in the budget book that include number of accidents, demographic parity, uses of force, commendations, and complaints.

According to BPD, the department collects and reports on a significant amount of additional

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A Guide to Measuring Performance in the City of Berkeley 15 data through their online Transparency Hub and annual report. The department uses data fr
equently to make decisions, such as deployment and patrol capacity, based on crime trends and calls for service.

Department staff also noted that metrics such as 911 call response times and case clearance rates are straightforward indicators of police activity and service levels. BPD reports on these metrics in their annual report, though there may be opportunities to also include that information in the budget book.

Police departments in benchmark cities commonly reported the following performance measures:
• Average emergency services response times.
• Number of crimes per 1000 people.

These measures are the most frequently reported among the wide range of performance measures used by Police departments in other cities. Some cities also report metrics on case clearance rates or police staffing levels; information which may be useful to report in Berkeley.

The examples in this report show that Berkeley departments differ in the types of performance measures they report, reflecting the differences in their work along with data availability and reporting practices. The performance measures in benchmark cities illustrate how other jurisdictions report performance and may offer ideas for measures that can be developed in Berkeley. Developing outcome-oriented measures often requires additional time and resources to define outcomes and establish new data collection pr ocesses. However, these measures can
ultimately support a strong performance management system in Berkeley.

How do comparable cities report performance data?
We additionally reviewed reporting practices from comparable jurisdictions to understand how other cities structure and report performance data.

Reporting methods: Most benchmark cities report their performance measures in the budget book and use standardized reporting periods. Many report performance at least annually and include performance data from previous years in their budget books which allows readers to compare performance over time.

Some cities also use a dashboard to report on performance measures outside of the budget process. For example, Fort Collins, CO reports quarterly on their performance measures through an online dashboard. Pasadena, CA also reports performance data on a dashboard.

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A Guide to Measuring Performance in the City of Berkeley 16 Figure 1. Example – City of Pasadena IT Performance Measures Source: City of Pasadena FY 2026 Budget Book
Four of the seven benchmark cities associate departmental performance measures with citywide goals or priorities. For example, Pasadena links department performance measures to specific City Council goals, which helps readers understand how departmental activities support broader city goals.

Outcomes-based budgeting: Some benchmark cities follow an innovative process known as outcomes-based budgeting, which means they make budget decisions and allocate resources based on key goals or outcomes. This allows governments to prioritize specific programs or initiatives that help them achieve desired results.

In Fort Collins, every program or service funded in the budget is connected to at least one strategic objective and has at least one performance metric so that the community can evaluate its success.

Redmond, WA uses a similar process called Budgeting by Priorities. The city allocates funding to their programs through Budget Offers which are associated with one of the city’s four priorities:

Healthy and Sustainable, Safe and Resilient, Strategic and Response, and Vibrant and Connected. Each Budget Offer includes a description of the program and two to three performance measures that evaluate the program’s success. The Redmond FY 2025-2026 budget book states that this budgeting method allows the city to identify and fund programs that are most important to the Redmond community.

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A Guide to Measuring Performance in the City of Berkeley 17 Figure 2. Example – City of Redmond Budget Offer

Source: City of Redmond FY 25-26 Budget Book

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A Guide to Measuring Performance in the City of Berkeley 18 Opportunities for Management Consideration
To strengthen Berkeley’s performance management process, we identified opportunities for management consideration based on best practices literature and insight from comparable jurisdictions. These options may require additional staff time and coordination and would need to be balanced with other priorities.

1. Organize and streamline reporting efforts.

There has been variation in some departments’ reported performance measures since fiscal year 2022. Maintaining the same measures over time and using standardized reporting periods for performance data could support comparability across years. This could also help Council and the public evaluate the City’s progress toward its goals.

The City could also consider including prior years’ performance measurement data in the budget book for easier comparison and clearer historical context. Berkeley may also consider supplementing budget book performance measure reporting with tools such as dashboards or annual performance measure reports to provide more timely updates between budget cycles.

2. Revisit Strategic Plan goals and alignment of performance measures.

There may be an opportunity for Berkeley to revisit Strategic Plan goals and consider how performance measures align with those goals. City Council approved Berkeley’s nine Strategic Plan goals in January 2018. Since that time, there have been leadership changes in both Council and City management. Current leadership may decide to reevaluate whether the goals continue to reflect City priorities and determine if updates are necessary.

The FY 2022 and 2023-2024 budget books organized performance measures by Strategic Plan goal, though this structure was not included in the FY 2025-2026 budget book. As departments update their performance measures over time, it may be beneficial to reassess how department performance measures connect to broader citywide priorities.

3. Explore outcomes-based budgeting.

Some jurisdictions allocate funding by desired outcome rather than by department through a process known as outcomes-based budgeting. This type of approach typically requires significant coordination, clear outcomes, and mature performance data, and may not be feasible to implement at a citywide level in the near term.

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A Guide to Measuring Performance in the City of Berkeley 19 However, there may be opportunities to implement outcomes-bas ed budgeting practices on a smaller scale. For example, city departments could develop more outcome-oriented performance measures and relate those measures to their department-wi de goals.

Departments could then assess how much of their budget is allocated toward achieving their goals, for example, dollars spent per service. Over time, this work can strengthen the connection between resources, activities, and results, provide useful context for future budget discussions, and can help the City prepare for potential outcomes-based budgeting efforts.

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Mission Statement
Promoting transparency and accountability in Berkeley government.

Audit Team
Erin Mullin, Audit Manager
Kendle Kuechle, Auditor II

City Auditor
Jenny Wong

Office of the City Auditor
Phone: (510) 981-6750
Email: [email protected]
Website: https://berkeleyca.gov/your-government/city-audits

Copies of our audit reports are available at
https://berkeleyca.gov/your-government/city-audits/city-auditor-reports

Cover photograph provided by the City of Berkeley.

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Safe Streets Citizen Oversight Committee
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/

INFORMATION CALENDAR
February 24, 2026
To: Honorable Mayor and Members of the City Council
From: Safe Streets Citizen Oversight Committee (SSCOC)
Submitted by: Douglas Legg, Chairperson, SSCOC
Subject: Safe Streets Citizen Oversight Committee (SSCOC) Workplan for FY25-26

INTRODUCTION
This work plan outlines the SSCOC’s objectives and actions for its inaugural year, Fiscal Year 2025-26.

CURRENT SITUATION AND ITS EFFECTS
As the first proceeds from the parcel tax will not be deposited with the City until December 2025, there will be limited expenditures made during the fiscal year. The Department of Public Works does not anticipate issuing its first report on Measure FF activities and expenditures until August 2026. As such, the committee intends to educate itself on the state of pavement and sidewalk conditions and safety challenges in the City of Berkeley. We hope to learn from the Department of Public Works about the baselines they are working from to achieve the goals set forth in the parcel tax measure.

The Fiscal Year 2025-2026 Workplan was adopted at the November 19, 2025, meeting of the SSCOC as item 7 on the agenda:

Adoption of the FY25-26 Workplan and Information Report to Council- Chair Public Speakers- 0
Action: M/S/C (Gerhardstein/Lutzker) To adopt the Workplan and submit it to Council with the following edit:

Edit the second bullet of the section titled “January/February” to read:
“Presentation by Public Works on their framework and plan for evaluating progress toward meeting the pavement condition, sidewalk repair and fatal and severe crash elimination (Vision Zero) goals in the City.” Voice Vote: Ayes:6; Noes: None; Abstain: None; Absent: Fraser, Kesselman The Committee’s Workplan supports the City’s Strategic Plan Priorities, advancing the goal to provide state-of-the-art, well-maintained infrastructure, amenities, and facilities.

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Safe Streets Citizen Oversight Committee
(SSCOC) Workplan for FY25-26 INFORMATION CALENDAR
February 24, 2026

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BACKGROUND
Approved in November 2024, Measure FF authorized the City of Berkeley to levy a parcel tax to finance street and sidewalk repair and traffic safety improvement. The revenues from the measure are to be used only for the purposes of enhancing streets, sidewalks and pedestrian paths within the City limits by funding the following types of projects:
1) Repair, repaving and reconstruction of streets, sidewalks and pedestrian paths
2) Safety improvements to streets, sidewalks and pedestrian paths 3) Environmental enhancements to sidewalks and pedestrian paths.

The goal of the tax is to achieve the following by December 31, 2036:
1) Raise Berkeley’s Pavement Condition Index (PCI) to or above 70 (rated as “Good” by the Metropolitan Transportation Commission), ideally with no streets having a PCI below 50
2) Eliminate the backlog of damaged sidewalks and pedestrian paths in Berkeley
3) Significantly reduce or eliminate fatal and severe traffic crashes throughout the city, particularly involving pedestrians or cyclists. 4) Achieve the above three goals in a way that is in line with current best practices, ensures accessibility for all users, enhances the sustainability and resiliency of Berkeley’s public right-of-way facilities, and provides benefits to Berkeley’s entire community.

The Safe Streets Citizen Oversight Committee (SSCOC) was established following the passage of City of Berkeley Measure FF to review expenditures and progress reports from the City Manager and City Auditor to ensure compliance with the measure, evaluate the impacts and outcomes of tax expenditures on the measures state goals, and prepare public reports on the committee’s findings.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
Improved PCI enhances the sustainability and resiliency of Berkeley’s public right-of- way facilities and provides benefits to Berkeley’s entire community with reduced emissions through better vehicle milage, improved drainage to the bay with green infrastructure improvements and safer roads to encourage fewer cars and increased pedestrian and bicycle use.

POSSIBLE FUTURE ACTION
None at this time.

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Safe Streets Citizen Oversight Committee
(SSCOC) Workplan for FY25-26 INFORMATION CALENDAR
February 24, 2026

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FISCAL IMPACTS OF POSSIBLE FUTURE ACTION
None at this time.

CONTACT PERSON
Amanda Montez, Senior Management Analyst, Public Works (510) 981-6317 Attachments:
1: Workplan

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City of Berkeley
Safe Streets Citizen Oversight Committee (SSCOC)
FY 2025-26 Work Plan
Introduction
Approved in November 2024, Measure FF authorized the City of Berkeley to levy a parcel tax to finance street and sidewalk repair and traffic safety improvement. The revenues from the measure are to be used only for the purposes of enhancing streets, sidewalks and pedestrian paths within the City limits by funding the following types of projects:
1) Repair, repaving and reconstruction of streets, sidewalks and pedestrian paths
2) Safety improvements to streets, sidewalks and pedestrian paths 3) Environmental enhancements to sidewalks and pedestrian paths.

FY 2025-26 Work Plan
This work plan outlines the SSCOC’s objectives and actions for its inaugural year, Fiscal Year 2025-26. As the first proceeds from the parcel tax will not be deposited with the City until December 2025, there will be limited expenditures made during the fiscal year. The Department of Public Works does not anticipate issuing its first report on Measure FF activities and expenditures until August 2026. As such, the committee intends to educate itself on the state of pavement and sidewalk conditions and safety challenges in the City of Berkeley. We hope to learn from the Department of Public Works about the baselines they are working from to achieve the goals set forth in the parcel tax measure.

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October/November
 Discussion of the current paving plan and City’s Pavement Condition Index scores and distribution throughout the City to provide context to planned Measure FF expenditures.
 Presentation on projects related to streets, sidewalks, safety improvements and environmental enhancements included in the Capital Improvement Plan adopted by the City Council in June 2025.
 Review the status of filling positions in Public Works Measure FF staffing plan and expenditures on projects which received funding from City Council in the FY 2025-26 budget.
 Presentation on criteria staff plan to use in prioritizing Measure FF projects.

January/February
 Review of the Draft FY 2027-31 CIP projects related to streets, sidewalks, safety improvements and environmental enhancements.
 Presentation by Public Works on their framework and plan for evaluating progress toward meeting the pavement condition, sidewalk repair and fatal and severe crash elimination (Vision Zero) goals in the City.  Review the status of filling positions in Public Works Measure FF staffing plan and expenditures on projects which received funding from City Council in the FY 2025-26 budget.

April/May
 Review of the new 5-year pavement plan and its assumptions about Measure FF and other funding sources.
 Review adopted FY 2027-31 CIP.
 Review anticipated Measure FF budget and projects for FY 2026-27.  Discuss annual report to Council and information and data that the Committee would like City staff to provide to support preparation of the report.

October
 Final first report submitted to City Council.

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Communications

All communications submitted to the City Council are
public record. Communications are not published directly to the City’s website. Copies of individual communications are available for viewing at the City Clerk Department and through Records Online.

City Clerk Department
2180 Milvia Street
Berkeley, CA 94704
(510) 981-6900

Records Online
https://records.cityofberkeley.info/

To search for communications associated with a particular City Council meeting using Records Online:

1. Select Search Type = “Public – Communication Query (Keywords)”

2. From Date: Enter the date of the Council meeting

3. To Date: Enter the date of the Council meeting (this may match the From Date field)

4. Click the “Search” button

5. Communication packets matching the entered criteria will be returned

6. Click the desired file in the Results column to view the document as a PDF

Berkeley City CouncilFebruary 24, 2026

Berkeley City Council
February 24, 2026