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August 11, 2026
ITEM TITLE
Receive Investment Report: Receive the Investment Report for Quarter Ending June 30, 2026 Report Number: 26-0225
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 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 June 30, 2026.
SUMMARY
This report provides an update on how the City of Chula Vista’s (“City”) money was invested d uring the quarter that ended on June 30, 2026. State law and the City’s Investment Policy require the 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 proposed 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 June 30, 2026, the City held a total of $808,359,124 in cash and investments. Of this amount, $685,358,065 is managed direc tly by the City, and $123,001,059 is held by outside trustees.
Summary of Cash and Investments as of June 30, 2026
Cash and Investments Book Value
Managed Investment Portfolio $ 639,723,166 State of California Local Agency Investment Fund 16,549,833 County of San Diego Pooled Investment Fund 27,336 Total Investments Held by the City 656,300,335 Cash/Time Deposits 29,057,730
Total Cash and Investments Held by the City 685,358,065
Cash and Investments Held by Bank Trustee 123,001,059 Total Cash and Investment Portfolio $ 808,359,124
Cash and investments held by the 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, a total of fourteen (14) investments matured, providing $63.2 million in proceeds. The City reinvested funds by purchasing 11 new investments, including three corporate bonds ($15 million) and eight U.S. Treasury notes ($48.2 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 4.14%, which was slightly lower than the previous quarter. The average portfolio maturity decreased from 1.91 to 1.84 years.
The Federal Open Market Committee ( “FOMC”) meets approximately every six (6) weeks to set the target range for the federal funds rate. At its most recent meeting, the FOMC reported that economic activity is expanding at a solid pace , despite ongoing conflicts in the Middle East . Productivity growth and capital investment remain strong, e mployment gains are keeping pace with labor force growth , and the unemployment rate has shown lit tle movement. Inflation, however, remains above the FOMC’s long-term target.
The Federal Reserve maintained the federal funds rate target range at 3.50%–3.75%, in alignment with its dual mandate to promote maximum employment and price stability. The FOMC also reaffirmed its policy of maintaining ample reserves within the banking system and reiterated its commitment to achieving stable inflation over time.
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The Finance Department, with the assistance of Chandler Asset Management, Inc, continues to manage the City’s investment portfolio in accordance with the State law and City Council Policy 220-01 Investment Policy and Guidelines. Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City will be able to comfortably meet overall cash flow needs over the next six (6) months.
In accordance with City Council Policy 220-01 Investment Policy and Guidelines, the City Investment Report for the Quarter Ended June 30, 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. 14)
Transaction Ledger (pg. 15)
Portfolio Maturity Distribution (pg. 17)
Corporate Bonds Sector Distribution (pg. 20)
Glossary (pg. 22)
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, the City should be able to comfortably meet overall cash flow needs over the next six (6) 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 June 30, 2026
2. Investment Report for the Quarter Ended June 30, 2026 Staff Contact: Galen Fleming, Fiscal Services Analyst, Finance Department Adrian Del Rio, Director of Finance/Treasurer