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May 19, 2026
ITEM TITLE
Receive Investment Report: Receive the Investment Report for Quarter Ending March 31, 2026 Report Number: 26-0115
Location: No specific geographic location
Department: Finance
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEAQ”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Receive the investment report for the quarter ending on March 31, 2026.
SUMMARY
This report provides an update on how the City of Chula Vista’s (“City”) money was invested during the quarter that ended on March 31, 2026. State law and the City’s Investment Policy require City to provide this report every quarter.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (“CEQA”), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the propose d activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
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DISCUSSION
As shown in the table below, as of March 31, 2026, the City held a total of $811,111,089 in cash and investments. Of this amount, $684,744,228 is managed di rectly by the City, and $126,366,861 is held by outside trustees.
Summary of Cash and Investments as of March 31, 2026
Cash and Investments Book Value
Managed Investment Portfolio $ 633,196,810 State of California Local Agency Investment Fund 16,389,062 County of San Diego Pooled Investment Fund 27,126 Total Investments Held by the City 649,612,998 Cash/Time Deposits 35,131,230
Total Cash and Investments Held by the City 684,744,228
Cash and Investments Held by Bank Trustee 126,366,861 Total Cash and Investment Portfolio $ 811,111,089
Cash and investments held by City and the trustees continue to be invested in accordance with the Government Code and City Council Policy 220-01 Investment Policy and Guidelines as adopted by Resolution No. 2026-029 on February 10, 2026.
During this quarter, $20,000,000 was transferred to Bank of New York, City’s Custodian Bank, to be used for investment purchases. A total of eleven (11) investments matured, and one (1) investment was called early by the issuer, providing $54.1 million in proceeds. The City reinvested funds by purchasing sixteen (16) new investments, including one corporate bond ($4.9 million) and fifteen U.S. Treasury notes ($75.6 million). The Finance Department continues to actively manage the portfolio based on financial and economic conditions.
No other significant activity occurred beyond routine investment transactions.
The City’s investment portfolio earned an average return of 4.15%, which was slightly lower than the previous quarter. The average portfolio maturity decreased from 1.95 to 1.91 years.
The Federal Open Market Committee (“FOMC”) meets approximately every six weeks to set the target range for the federal funds rate. At its most recent meeting, the FOMC noted that the economy continues to grow at a solid pace; however, job growth has slowed, an d the unemployment rate has increased slightly. Inflation remains somewhat elevated and remains above the Committee’s long-term target.
In response to increased economic uncertainty and heightened risks to employment, the Federal Reserve maintained the tar get range for the federal funds rate at 3.50% –3.75%. The Committee will continue to closely monitor incoming economic data and adjust monetary policy as appropriate to support maximum employment and maintain inflation near its long-term objective.
The Finance Department, with the assistance of Chandler Asset Management, Inc, continues to manage City’s investment portfolio in accordance with the State law and City Council Policy 220-01 Investment Policy and P a g e | 3
Guidelines. Considering the projected timing of cas h receipts and disbursements and the structure of the Pooled Investment Portfolio, City will be able to comfortably meet overall cash flow needs over the next six months.
In accordance with City Council Policy 220-01 Investment Policy and Guidelines, the City Investment Report for the Quarter Ended March 31, 2026 (Attachment 2) includes the following sections:
Portfolio Summary (pg. 1)
Statement of Compliance (pg. 2)
Holdings Report (pg. 5)
U.S. Treasury Yields and Interest Earnings (pg. 15)
Transaction Ledger (pg. 16)
Portfolio Maturity Distribution (pg. 18)
Corporate Bonds Sector Distribution (pg. 22)
Glossary (pg. 24)
DECISION-MAKER CONFLICT
Staff have reviewed the decision contemplated by this action and have determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov’t Code § 87100, et seq.).
Staff are not independently aware and have not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, City should be able to comfortably meet overall cash flow needs over the next six months. There is no direct current-year fiscal impact as a result of this action.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of this action.
ATTACHMENTS
1. Summary of Cash and Investments as of March 31, 2026
2. Investment Report for the Quarter Ended March 31, 2026 Staff Contact: Galen Fleming, Fiscal Services Analyst, Finance Department Adrian Del Rio, Director of Finance/Treasurer