Corona City Council
June 17, 2026

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-31 ©Best Best & Krieger LLP (Reference: Gov. Code, § 8698.4 [in effect until January 1, 2026].)

9.089.10AFFORDABLE HOUSING DEVELOPMENTS IN COMMERCIAL ZONES.

A proposed affordable multifamily housing development project is subject to streamlined, ministerial review and is not subject to CEQA if it meets the following requirements:

1. One hundred percent of the units within the development project, excluding managers’ units, must be dedicated to lower income households at an affordable cost, as defined by Section 50052.5 of the Health and Safety Code, or an affordable rent set in an amount consistent with the rent limits established by the California Tax Credit Allocation Committee. The units must be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units.

2. The proposed development must meet applicable objective zoning standards, objective subdivision standards, and objective design review standards as further defined in Government Code section 65912.113(f) & (g).

3. The proposed housing development must meet certain density requirements set forth in Government Code section 65583.2(c)(3).

4. The project must be located in a zone where office, retail, or parking are a principally permitted use.

5. At least 75 percent of the perimeter of the project site must adjoin parcels that are developed with urban uses. Parcels that are only separated by a street or highway shall be considered adjoined.

6. The project may not be located on a site or adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use.

7. The project site must be located on a legal parcel or parcels that are either (a) in a city where the city boundaries include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau; or (b) in an unincorporated area, and the legal parcel or parcels are wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.

8. None of the proposed housing may be located within 500 feet of a freeway.

9. None of the proposed housing may be located within 3,200 feet of a facility that actively extracts or refines oil or natural gas.

10. The project may not be located on a site that qualifies as either prime farmland or farmland of statewide importance.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-32 ©Best Best & Krieger LLP

11. The project site may not be located in wetlands.

12. The project site may not be located in a very high fire hazard severity zone.

13. The project site may not be located on a hazardous waste site, with limited exceptions as set forth in Government Code section 65913.4(a)(6)(E).

14. The project site may not be located within a delineated earthquake fault zone, unless the development complies with applicable seismic protection building code standards as set forth in Government Code section 65913.4(a)(6)(F).

15. The project may not be located within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency (“FEMA”).

16. The project site may not be located within a regulatory floodway as determined by FEMA, with limited exceptions as set forth in Government Code section 65913.4(a)(6)(H).

17. The project site may not be located on lands identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act, habitat conservation plan pursuant to the federal Endangered Species Act, or other adopted natural resource protection plan.

18. The project site may not be located on habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act, the California Endangered Species Act, or the Native Plant Protection Act.

19. The project site may not be located on lands under conservation easement.

20. The project site may not be located on an existing parcel of land or site that is governed under the Mobilehome Residency Law, the Recreational Vehicle Park Occupancy Law, the Mobilehome Parks Act, or the Special Occupancy Parks Act.

21. For a project proposed on a site within a neighborhood plan area, the applicable neighborhood plan must permit multifamily housing development on the site.

Additional requirements apply to projects within a neighborhood plan area as of January 1, 2024, as set forth in Government Code section 65912.113(i).

22. For a project proposed on a vacant site, the project may not result in significant and unavoidable impacts to tribal cultural resources on the site.

23. The development proponent must complete a Phase I Environmental Site Assessment, and the proponent must undertake additional measures if a recognized environmental condition is found as set forth in Government Code section 65912.113(c).

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-33 ©Best Best & Krieger LLP A project approved under this section must meet certain labor standards, as set forth in Government Code section 65912.130, et seq. For example, a private housing development project under this section is subject to a requirement that all construction workers employed in the execution of the development be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations. (Reference: Gov. Code, § 65912.110, et seq.)

9.099.11MIXED-INCOME HOUSING DEVELOPMENTS ALONG COMMERCIAL CORRIDORS.

A proposed multifamily housing development project is subject to streamlined, ministerial review and is not subject to CEQA if it meets the following requirements:

1. The proposed development project must meet all of the following affordability criteria, as set forth in greater detail in Government Code section 65912.122:
(a)(1) A rental housing development shall include either of the following:
(A) Eight percent of the units for very low income households and 5 percent of the units for extremely low income households; or (B) Fifteen percent of the units for lower income households. (2) The development proponent must agree to, and the local government must ensure, the continued affordability of all affordable rental units included pursuant to this section for 55 years.
(b)(1) An owner-occupied housing development shall include either of the following:
(A) Thirty percent of the units must be offered at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to moderate-income households; or
(B) Fifteen percent of the units must be offered at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to lower income households.
(2) The development proponent must agree to, and the local government must ensure, the continued affordability of all affordable rental units included pursuant to this section for 45 years.
(c) If the local government has a local affordable housing requirement, the housing development project shall comply with all of the following:
(1) The development project shall include the percentage of affordable units required by this section or the local requirement, whichever is higher.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-34 ©Best Best & Krieger LLP (2) The development project shall meet the lowest income targeting in either policy.
(3) If the local affordable housing requirement requires greater than 15 percent of the units to be dedicated for lower income households and does not require the inclusion of units affordable to very low and extremely low income households, then the rental housing development shall do both of the following:
(A) Include 8 percent of the units for very low income
households and 5 percent of the units for extremely low income households; and
(B) Fifteen percent of units affordable to lower income households shall be subtracted from the percentage of units required by the local policy at the highest required
affordability level.
(d) Affordable units in the development project shall have the same bedroom and bathroom count ratio as the market rate units, be equitably distributed within the project, and have the same type or quality of appliances, fixtures, and finishes.

2. The project site must abut a commercial corridor and have frontage along the commercial corridor of at least 50 feet.

3. The project site may not be greater than 20 acres.

4. The project must be located in a zone where office, retail, or parking are a principally permitted use.

5. At least 75 percent of the perimeter of the project site must adjoin parcels that are developed with urban uses. Parcels that are only separated by a street or highway shall be considered adjoined.

6. The project may not be located on a site or adjoined to any site where more than one-third of the square footage on the site is dedicated to industrial use.

7. The project site must be located on a legal parcel or parcels that are either (a) in a city where the city boundaries include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau; or (b) in an unincorporated area, and the legal parcel or parcels are wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.

8. The proposed development must meet applicable objective zoning standards, objective subdivision standards, and objective design review standards as further explained in Government Code section 65912.123(j).

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-35 ©Best Best & Krieger LLP

9. The proposed housing development must meet certain density requirements set forth in Government Code section 65912.123(b).

10. The proposed housing development must meet certain height and setback requirements set forth in Government Code section 65912.123(c)-(d).

11. The project may not be located on a site where any of the following would apply:
(a) The development would require the demolition of the following types of housing: (i) housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income; (ii) housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power; (iii) or housing that has been occupied by tenants within the past 10 years, excluding any manager’s units.
(b) The site was previously used for permanent housing that was occupied by tenants, excluding any manager’s units, that was demolished within 10 years before the development proponent submitted its application for the development.
(c) The site would require the demolition of a historic structure that was placed on a national, state, or local historic register. (d) The property contains one to four dwelling units.
(e) The property is vacant and zoned for housing but not for multifamily residential use.
(f) The existing parcel of land or site is governed under the Mobilehome Residency Law, the Recreational Vehicle Park Occupancy Law, the Mobilehome Parks Act, or the Special Occupancy Parks Act

12. None of the proposed housing may be located within 500 feet of a freeway.

13. None of the proposed housing may be located within 3,200 feet of a facility that actively extracts or refines oil or natural gas.

14. The project may not be located on a site that qualifies as either prime farmland or farmland of statewide importance.

15. The project site may not be located in wetlands.

16. The project site may not be located in a very high fire hazard severity zone.

17. The project site may not be located on a hazardous waste site, with limited exceptions as set forth in Government Code section 65913.4(a)(6)(E).

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-36 ©Best Best & Krieger LLP

18. The project site may not be located within a delineated earthquake fault zone, unless the development complies with applicable seismic protection building code standards as set forth in Government Code section 65913.4(a)(6)(F).

19. The project may not be located within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency (“FEMA”).

20. The project site may not be located within a regulatory floodway as determined by FEMA, with limited exceptions as set forth in Government Code section 65913.4(a)(6)(H).

21. The project site may not be located on lands identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act, habitat conservation plan pursuant to the federal Endangered Species Act, or other adopted natural resource protection plan.

22. The project site may not be located on habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act, the California Endangered Species Act, or the Native Plant Protection Act.

23. The project site may not be located on lands under conservation easement.

24. For a project proposed on a site within a neighborhood plan area, the applicable neighborhood plan must permit multifamily housing development on the site.

Additional requirements apply to projects within a neighborhood plan area as of January 1, 2024, as set forth in Government Code section 65912.121(i).

25. For a project proposed on a vacant site, the project may not result in significant and unavoidable impacts to tribal cultural resources on the site.

26. The development proponent must complete a Phase I Environmental Site Assessment, and the proponent must undertake additional measures if a recognized environmental condition is found as set forth in Government Code section 65912.123(f).

A project approved under this section must meet certain labor standards, as set forth in Government Code section 65912.130, et seq. For example, a private housing development project under this section is subject to a requirement that all construction workers employed in the execution of the development be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations. (Reference: Gov. Code, § 65912.120, et seq.)

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-37 ©Best Best & Krieger LLP

9.109.12A RESPONSIBLE AGENCY’S PROVISION OF FINANCIAL ASSISTANCE OR INSURANCE FOR THE DEVELOPMENT AND CONSTRUCTION OF AFFORDABLE HOUSING.

Action taken by a local agency that is acting as a responsible agency – not as a lead agency – to provide financial assistance or insurance for the development and construction of residential housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, is exempt from CEQA if the project that is the subject of the application for financial assistance or insurance will be subject to CEQA review by another public agency. This includes a local agency’s approval of contracts that provide residential, counseling, and security services for people experiencing homelessness. (Reference: Pub. Resources Code, § 21080.10.)

9.119.13EXEMPTION FOR SPECIFIED AFFORDABLE HOUSING PROJECTS.

If the conditions and requirements set forth in Public Resources code section 21080.40 are met, the following public agency action relating to an “affordable housing project” shall be exempt from CEQA :

1. The issuance of an entitlement by a public agency for an affordable housing project.

2. An action to lease, convey, or encumber land owned by a public agency for an affordable housing project.

3. An action to facilitate the lease, conveyance, or encumbrance of land owned or to be purchased by a public agency for an affordable housing project.

4. Rezoning, specific plan amendments, or general plan amendments required specifically and exclusively to allow the construction of an affordable housing project.

5. An action to provide financial assistance in furtherance of implementing an affordable housing project.

Section 21080.40 of the Public Resources Code defines “affordable housing project” as a project that meets the following requirements:
 The project consists of multifamily residential uses only or a mix of multifamily residential and nonresidential uses;
 At least two-thirds of the square footage of the project is designated for residential use;  All of the project’s residential units, excluding managers’ units, are dedicated to lower income households, as defined by Health & Safety Code section 50079.5;

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-38 ©Best Best & Krieger LLP  The project meets the labor requirements set forth in Government Code section 65912.130, or Government Code section 65912.131 if the project has 50 or more residential units;
 The project is located on a parcel in any of the following locations: (i) an urbanized area or urban cluster, as designated by the United States Census Bureau, (ii) within one-half mile walking distance to either a high-quality transit corridor or a major transit stop, (iii) a very low vehicle travel area (defined as an urbanized area where existing residential development generates vehicle miles traveled per capita that is below 85 percent of either regional vehicle miles traveled per capita or city vehicle miles traveled per capita), or (iv) proximal to six or more certain specified amenities, including within one-half mile of a bus station or ferry terminal, or within one mile (or two miles if in a rural area) of a supermarket or grocery store, public park, community center, pharmacy or drugstore, medical clinic or hospital, public library, or a school; and  Parcels that are developed with urban uses must adjoin at least 75 percent of the perimeter of the project site or at least three sides of a four-sided project site.

To qualify for this exemption, the affordable housing project must meet a series of requirements set forth in Public Resources Code section 21080.40. The requirements include that the affordable housing project be subject to a recorded California Tax Credit Allocation Committee regulatory agreement for at least 55 years upon completion of construction, and that the project site must be adequately served by existing utilities or extensions. In addition, the public agency must confirm that the project is not built on environmentally sensitive or hazardous land; that the project will not have significant and unavoidable tribal cultural resource impacts; that a Phase I environmental assessment was prepared and any hazardous substances on the site have been remediated; and if the project site is not permitted for multifamily housing, that none of the housing is located within 500 feet of a freeway or within 3,200 feet of a facility that actively extracts or refines soil or natural gas; and that the project site is not within a very high fire hazard severity zone.

If a lead agency determines that the affordable housing project is exempt from CEQA pursuant to this provision, it must file a notice of exemption with the Office of Land Use and Climate Innovation and the county clerk of each county in which the project is located. (Reference: Pub. Resources Code, § 21080.40.)

9.14 “NEAR MISS” STREAMLINED HOUSING DEVELOPMENT PROJECT If a proposed housing development project would normally be exempt from CEQA pursuant to a statutory or categorical exemption (Classes 1 to 5, 12, 15, 20, 27, 30, or 32)—but fails to qualify because of just one specific issue—then CEQA review is limited to only the environmental effects caused by that one issue. The environmental review (initial study or EIR) only needs to analyze impacts caused solely by that single disqualifying issue, based on evidence in the record.

If an EIR is required, it does not need to analyze project alternatives or growth-inducing impacts.

This limited review does not apply if:

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-39 ©Best Best & Krieger LLP  The project is not similar to the types of projects covered by the exemption.  The project fails the exemption because of more than one issue.  The project includes a distribution center or oil and gas infrastructure.  The project is located on protected natural lands (with limited statutory exceptions).

To note, “condition” means a physical feature, regulatory requirement, or environmental effect related to the project. For a project that involves issuance of a lease, permit, license, certificate, or other entitlement for use, the lead agency must offer early consultation – if requested by a potential applicant – before an application is filed. This consultation covers possible actions, alternatives, mitigation measures, and any potential and significant effects on the environment. (Reference: Pub. Resources Code, § 21080.1.)

9.129.15MINISTERIAL APPROVAL OF HOUSING DEVELOPMENTS ON LAND OWNED BY INDEPENDENT INSTITUTIONS OF HIGHER EDUCATION AND RELIGIOUS INSTITUTIONS.

A “housing development project” is not subject to CEQA if it meets the criteria and requirements set forth in Government Code section 65913.16. To qualify for the exemption, a housing development project must, among other things, meet the following requirements:

1. The housing development project must be located on land owned on or before January 1, 2024 by an independent institution of higher education or a religious institution, including ownership through an affiliated or associated nonprofit public benefit corporation organized pursuant to the Nonprofit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code).

2. The housing development project must consist of residential units only; constitute a mixed-use development consisting of residential and non-residential uses with at least two-thirds of the square footage designated for residential use; or consist of transitional housing or supportive housing.

3. The housing development project must meet certain affordability requirements.

One hundred percent of the development project’s total units, exclusive of a manager’s unit or units, must be for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the total units in the development may be for moderate-income households, as defined in Section 50052 of the Health and Safety Code, and 5 percent of the units may be for staff of the independent institution of higher education or religious institution that owns the land.

4. The project must be subject to specified labor and prevailing wage requirements.

The exemption is subject to a lengthy series of locational and other requirements, set forth in Government Code section 65913.16.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) AFFORDABLE HOUSING 20252026 City of Corona Local Guidelines 9-40 ©Best Best & Krieger LLP (Reference: Gov. Code, § 65913.16.)

Local Guidelines for Implementing the
California Environmental Quality Act (2026) CEQA LITIGATION 20252026 City of Corona Local Guidelines 10-1 ©Best Best & Krieger LLP

10. CEQA LITIGATION

10.01 TIMELINES.

When a CEQA lawsuit is filed, there are numerous and complex time requirements that must be met. Pressing deadlines begin to run in the days immediately after a CEQA lawsuit has been filed with the Court. For example, within ten (10) business days of the public agency being served with a petition or complaint alleging a violation of CEQA, the City, if it was the Lead Agency, must provide the petitioner with a list of Responsible Agencies and public agencies with jurisdiction by law over any natural resource affected by the project at issue. There are a variety of other deadlines that apply in CEQA litigation.

If a CEQA lawsuit is filed, CEQA counsel should be contacted immediately in order to ensure that all the applicable deadlines are met.

10.02 MEDIATION AND SETTLEMENT.

After Litigation Has Been Filed. The parties in a CEQA lawsuit are required to meet and discuss settlement. Within twenty (20) days of being served with a CEQA legal challenge, the public agency named in the lawsuit must file a notice with the court setting forth the time and place for a settlement meeting. The meeting must be scheduled and held not later than forty-five (45) days from the date of service of the petition or complaint upon the public agency. Usually the main parties to the litigation (such as the Lead Agency, the developer of the project if there is one, and those challenging the project and their respective attorneys) meet to discuss settlement; there is no requirement to hire a professional mediator. The settlement meeting is usually subject to a confidentiality agreement.

If the parties in a CEQA lawsuit are in settlement or mediation, that attempt is intended to occur concurrently with the litigation. This means that the respondent public agency will be required to comply with all existing litigation timelines and requirements (for example, preparing and lodging the administrative record discussed below) while simultaneously conducting settlement or mediation, unless the parties enter into an alternate agreement to stay the litigation and that agreement is approved by the court.

10.03 ADMINISTRATIVE RECORD.

A. Contents of Administrative Record.

When the Lead Agency’s CEQA finding(s) and/or action is challenged in a lawsuit, the Lead Agency must certify the administrative record that formed the basis of the Lead Agency’s decision. To the extent the documents listed below exist and are not subject to a privilege that exempts them from disclosure, the following items should be included in the administrative record:
(1) All project application materials;.
(2) All staff reports and related documents prepared by the public agency with respect to its compliance with the substantive and procedural requirements of CEQA and with respect to the action on the project;.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) CEQA LITIGATION 20252026 City of Corona Local Guidelines 10-2 ©Best Best & Krieger LLP (3) All staff reports and related documents prepared by the public agency and written testimony or documents submitted by any person relevant to any findings or statement of overriding considerations adopted by the public agency pursuant to CEQA or these Local Guidelines;.
(4) Any transcript or minutes of the proceedings at which the decision-making body of the public agency heard testimony on or considered any environmental document on the project, and any transcript or minutes of proceedings before any advisory body to the respondent public agency that were presented to the decision-making body prior to action on the environmental documents or on the project;. (5) All notices issued by the public agency to comply with CEQA or with any other law governing the processing and approval of the project;. (6) All written comments received in response to, or in connection with, environmental documents prepared for the project, including responses to the notice of preparation;.
(7) All written evidence or correspondence submitted to, or transferred from, the public agency with respect to compliance with CEQA or with respect to the project;. (8) Any proposed decisions or findings submitted to the decision-making body of the public agency by its staff or the project proponent, project opponents, or other persons, to the extent such documents are subject to public disclosure;. (9) The documentation of the final public agency decision, including the final environmental impact report, mitigated negative declaration, or negative declaration, and all documents, in addition to those referenced in paragraph (3) above, cited or relied on in the findings or in a statement of overriding considerations adopted pursuant to CEQA;.
(10) Any other written materials relevant to the respondent public agency’s compliance with CEQA or to its decision on the merits of the project, including the initial study; any drafts of any environmental document, or portions thereof, that were released for public review; copies of studies or other documents relied upon in any environmental document prepared for the project and either made available to the public during the public review period or included in the public agency’s files on the project; and internal agency communications presented to the final decisionmaking body or consulted and/or reviewed by the lead agency executive or other administrative official in a supervisory role, including staff notes and memoranda, related to the project or to compliance with CEQA, to the extent such documents are subject to public disclosure. The administrative record need not include communications that are of a logistical nature, such as meeting invitations or scheduling communications. The administrative record further may not include material that is subject to a privilege contained in the Evidence Code or material that is subject to an exemption set forth in the California Public Records Act.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) CEQA LITIGATION 20252026 City of Corona Local Guidelines 10-3 ©Best Best & Krieger LLP (11) The full written record before any inferior administrative decision-making body whose decision was appealed prior to the filing of the lawsuit.

B. Organization of Administrative Record.

The administrative record should be organized as follows:
(1) Index. A detailed index must be included at the beginning of the administrative record listing each document in the order presented. Each entry must include the document’s title, date, brief description, and the volume and page where the document begins;
(2) The Notice of Determination;
(3) The resolutions or ordinances adopted by the Lead Agency approving the project; (4) The findings required by Public Resources Code section 21081, including any statement of overriding considerations;
(5) The Final EIR, including the Draft EIR or a revision of the draft, all other matters included in the Final EIR (such as traffic studies and air quality studies), or other types of environmental documents prepared under CEQA, such as a negative declaration, mitigated negative declaration, or addenda; (6) The initial study;
(7) Staff reports prepared for the administrative bodies providing subordinate approvals or recommendations to the Lead Agency, in chronological order; (8) Transcripts and minutes of hearings, in chronological order; and (9) All other documents appropriate for inclusion in the administrative record, in chronological order.

Each section listed above must be separated by tabs or marked with electronic bookmarks.

Oversized documents (such as building plans and maps) must be presented in a manner that allows them to be easily unfolded and viewed.

The court may issue an order allowing the documents to be organized in a different manner.

C. Preparation of Administrative Record.

The administrative record can be prepared: (1) by the petitioner, if the petitioner provides the Lead Agency notice that it elects to prepare the record, or (2) by the Lead Agency. If the petitioner provides notice that it elects to prepare the administrative record, the Lead Agency may, within five (5) business days of receiving such notice, deny the petitioner’s request to prepare the record. In this circumstance, the Lead Agency may prepare the administrative record itself despite the petitioner’s election... The petitioner and the Lead Agency can also agree on any alternative

Local Guidelines for Implementing the
California Environmental Quality Act (2026) CEQA LITIGATION 20252026 City of Corona Local Guidelines 10-4 ©Best Best & Krieger LLP method of preparing the record, such as having the project applicant prepare the administrative record. However, when a third party such as the project applicant prepares or assists with the preparation of the administrative record, the Lead Agency may not be able to recover fees incurred by the third party unless petitioner has agreed to this method of preparation.

Notwithstanding the above, upon the written request of a project applicant received no later than 30 days after the date that the Lead Agency makes a determination pursuant to Public Resources Code section 21080.1, 21094.5, or Chapter 4.2 (commencing with Public Resources Code section 21155) and with the written consent of the Lead Agency sent within 10 business days from receipt of the written request, the Lead Agency may prepare the administrative record concurrently with the administrative process. Should the Lead Agency and the project applicant so desire to pursue concurrent record preparation, the parties must comply with the provisions of Public Resources Code section 21167.6.2.
(See Pub. Resources Code, § 21167.6.)
D. Special Circumstances For Environmental Leadership Projects.

Special timing considerations and requirements apply if the Project is certified by the Governor as an Environmental Leadership Project pursuant to the “Jobs and Economic Improvement Through Environmental Leadership Act of 2021.” For example, the administrative record must be finished and certified within five (5) days of project approval. See Public Resources Code section 21186 for a complete discussion of the special requirements related to the preparation of an administrative record for an Environmental Leadership Project.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-1 ©Best Best & Krieger LLP

11. DEFINITIONS
Whenever the following terms are used in these Local Guidelines, they shall have the following meaning unless otherwise expressly defined:

11.01 “Agricultural Employee” means a person engaged in agriculture, which includes farming in all its branches, and, among other things, includes: (1) the cultivation and tillage of the soil, (2) dairying, (3) the production, cultivation, growing, and harvesting of any agricultural or horticultural commodities, (4) the raising of livestock, bees, furbearing animals, or poultry, and (5) any practices (including any forestry or lumbering operations) performed by a farmer or on a farm as an incident to or in conjunction with such farming operations, including preparation for market and delivery to storage or to market or to carriers for transportation to market.

This definition does not include any person covered by the National Labor Relations Act as agricultural employees pursuant to Section 2(3) of the Labor Management Relations Act (Section 152(3), Title 29, United States Code) and Section 3(f) of the Fair Labor Standards Act (Section 203(f), Title 29, United States Code). This definition does not apply to employees who perform work to be done at the site of the construction, alteration, painting, or repair of a building, structure, or other work (as these terms have been construed under Section 8(e) of the Labor Management Relations Act, 29 United States Code section 158(e)) or logging or timber-clearing operations in initial preparation of land for farming, or who does land leveling or only land surveying for any of the above. As used in this definition, “land leveling” shall include only major land moving operations changing the contour of the land, but shall not include annual or seasonal tillage or preparation of land for cultivation. (State CEQA Guidelines section 15191(a).)

11.02 “Applicant” means a person who proposes to carry out a project that requires a lease, permit, license, certificate, or other entitlement for use, or requires financial aid from one or more public agencies when applying for governmental approval or assistance.

11.03 “Approval” Means a decision by the decision-making body or other authorized body or officer of the City which commits the City to a definite course of action with regard to a particular project. With regard to any project to be undertaken directly by the City, approval shall be deemed to occur on the date when the decision-making body adopts a motion or resolution determining to proceed with the project, which in no event shall be later than the date of adoption of plans and specifications. As to private projects, approval shall be deemed to have occurred upon the earliest commitment to provide service or the issuance by the City of a discretionary contract, subsidy, or other form of financial assistance, lease, permit, license, certificate, or other entitlement for use of the project. The mere acquisition of land by the City shall not, in and of itself, be deemed to constitute approval of a project.

For purposes of these Local Guidelines, all environmental documents must be completed as of the time of project approval.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-2 ©Best Best & Krieger LLP

11.04 “Baseline” refers to the pre-project environmental conditions. By comparing the project’s potential impacts to the baseline, the Lead Agency determines whether the project’s impacts are substantial enough to be significant under the relevant thresholds of significance. Generally, the baseline is the environmental conditions existing on the date the environmental analysis begins, such as the date the Notice of Preparation is published for an EIR or the date the Notice of Intent to Adopt a Negative Declaration is published. However, in certain circumstances, an earlier or later date may provide a more accurate environmental analysis. The City may establish any baseline that is appropriate, including an earlier or later date, as long as the choice of baseline can be supported by substantial evidence.

11.05 “California Native American Tribe” means a Native American tribe located in California that is on the contact list maintained by the Native American Heritage Commission for the purposes of Chapter 905 of the Statutes of 2004.

11.06 “Categorical Exemption” means an exemption from CEQA for a class of projects based on a finding by the Secretary of the Resources Agency that the class of projects does not have a significant effect on the environment.

11.07 “Census-Defined Place” means a specific unincorporated land area within boundaries determined by the United States Census Bureau in the most recent decennial census.

11.08 “CEQA” means the California Environmental Quality Act, codified at California Public Resources Code sections 21000, et seq.

11.09 “City” means the City of Corona.

11.10 “Clerk” means either the “Clerk of the Board” or the “County Clerk” depending upon the county. Please refer to the “Index to Environmental Filing by County” in the Staff Summary to determine which applies.

11.11 “Community-Level Environmental Review” means either (1) or (2) below:
(1) An EIR certified for any of the following:
(a) A general plan;
(b) A revision or update to the general plan that includes at least the land use and circulation elements;
(c) An applicable community plan;
(d) An applicable specific plan; or
(e) A housing element of the general plan, if the Environmental Impact Report analyzed the environmental effects of the density of the proposed project;
(2) A Negative Declaration or Mitigated Negative Declaration adopted as a subsequent environmental review document, following and based upon an EIR on a general plan, an applicable community plan or specific plan, provided that the subsequent environmental review document is allowed by CEQA following

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-3 ©Best Best & Krieger LLP a Master EIR or a Program EIR or is required pursuant to Public Resource section 21166.

11.12 “Consultation” means the meaningful and timely process of seeking, discussing, and considering carefully the views of others, in a manner that is cognizant of all parties’ cultural values and, where feasible, seeking agreement. Consultation between government agencies and Native American tribes shall be conducted in a way that is mutually respectful of each party’s sovereignty. Consultation shall also recognize the tribes’ potential needs for confidentiality with respect to places that have traditional tribal cultural significance.

11.13 “Cumulatively Considerable” means that the incremental effects of an individual project are significant when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects.

11.14 “Cumulative Impacts” means two or more individual effects which, when considered together, are considerable or which compound or increase other environmental impacts.

The individual effects may be changes resulting from a single project or a number of separate projects, whether past, present or future.

The cumulative impact from several projects is the change in the environment which results from the incremental impact of the project when added to other closely related past, present and reasonably foreseeable future projects. Cumulative impacts can result from individually minor but collectively significant projects taking place over a period of time.

11.15 “Decision-Making Body” means the body within the City, e.g. the City Council, which has final approval authority over the particular project.

11.16 “Developed Open Space” means land that meets each of the following three criteria:
(1) Is publicly owned, or financed in whole or in part by public funds; (2) Is generally open to, and available for use by, the public; and (3) Is predominantly lacking in structural development other than structures associated with open spaces, including, but not limited to, playgrounds, swimming pools, ball fields, enclosed child play areas, and picnic facilities.

Developed Open Space may include land that has been designated for acquisition by a public agency for developed open space purposes, but does not include lands acquired by public funds dedicated to the acquisition of land for housing purposes.

11.17 “Development Project” means any project undertaken for the purpose of development, including any project involving the issuance of a permit for construction or reconstruction but not a permit to operate. It does not include any ministerial projects proposed to be carried out or approved by public agencies. (Government Code section 65928.)

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-4 ©Best Best & Krieger LLP

11.18 “Discretionary Project” means a project for which approval requires the exercise of independent judgment, deliberation, or decision-making on the part of the City. To determine whether a project is discretionary, the key question is whether the public agency can use its subjective judgment to decide whether and how to carry out or approve a project.

11.19 “EIR” means Environmental Impact Report, a detailed written statement setting forth the environmental effects and considerations pertaining to a project. EIR may mean a Draft or a Final version of an EIR, a Project EIR, a Subsequent EIR, a Supplemental EIR, a Tiered EIR, a Staged EIR, a Program EIR, a Redevelopment EIR, a Master EIR, or a Focused EIR.

11.20 “Emergency” means a sudden, unexpected occurrence, involving a clear and imminent danger, demanding immediate action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services. Emergency includes such occurrences as fire, flood, earthquake, landslide or other natural disaster, as well as such occurrences as riot, war, terrorist incident, accident or sabotage.

11.21 “Endangered, Rare or Threatened Species” means certain species or subspecies of animals or plants. A species or subspecies of animal or plant is “Endangered” when its survival and reproduction in the wild are in immediate jeopardy from one or more causes, including loss of habitat, change in habitat, overexploitation, predation, competition, disease, or other factors. A species or subspecies of animal or plant is “Threatened” when it is listed as a threatened species pursuant to the California Endangered Species Act or the Federal Endangered Species Act. A species or subspecies of animal or plant is “Rare” when either:
(1) Although not presently threatened with extinction, the species is existing in such small numbers throughout all or a significant portion of its range that it may become endangered if its environment worsens; or
(2) The species is likely to become endangered within the foreseeable future throughout all or a significant portion of its range and may be considered “threatened” as that term is used in the Federal Endangered Species Act.

For purposes of analyzing impacts to biological resources, a species of animal or plant shall be presumed to be endangered, rare or threatened if it is listed under the California Endangered Species Act or the Federal Endangered Species Act.

This definition shall not include any species of the Class Insecta which is a pest whose protection under the provisions of CEQA would present an overwhelming and overriding risk to man as determined by the Director of Food and Agriculture (with regard to economic pests) or the Director of Health Services (with regard to health risks).

11.22 “Environment” means the physical conditions which exist in the area which will be affected by a proposed project, including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance. The area involved shall

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-5 ©Best Best & Krieger LLP be the area in which significant effects would occur either directly or indirectly as a result of the project. The “environment” includes both natural and man-made conditions.

11.23 “Feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social and technological factors.

11.24 “Final EIR” means an EIR containing the information contained in the Draft EIR, comments either verbatim or in summary received in the review process, a list of persons commenting, and the response of the City to the comments received.

11.25 “Greenhouse Gases” include, but are not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.

11.26 “Guidelines” or “Local Guidelines” means the City’s Local Guidelines for implementing the California Environmental Quality Act.

11.27 “Highway” shall have the same meaning as defined in Section 360 of the Vehicle Code.

11.28 “Historical Resources” include:

Resources listed in, or eligible for listing in, the California Register of Historical Resources shall be considered historical resources.

A resource may be listed in the California Register if it meets any of the following National Register of Historic Places criteria:
(a) Is associated with events that have made a significant contribution to the broad patterns of California’s history and cultural heritage; (b) Is associated with the lives of persons important in our past; (c) Embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of an important creative individual, or possesses high artistic values; or
(d) Has yielded, or may be likely to yield, information important in prehistory or history.

A resource may also be listed in the California Register if it is identified as significant in an historical resource survey that meets all of the following criteria:
(a) The survey has been or will be included in the State Historic Resources Inventory;
(b) The survey and the survey documentation were prepared in accordance with office procedures and requirements; and
(c) The resource is evaluated and determined by the office to have a significance rating of Category 1 to 5 on DPR Form 523.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-6 ©Best Best & Krieger LLP Resources included on a list of properties officially designated or recognized as historically significant by a local government pursuant to a local ordinance or resolution, or identified as significant in a historical resource survey (as described above) are presumed to be historically or culturally significant, unless a preponderance of evidence demonstrates that they are not historically or culturally significant.

Any of the following may be considered historically significant: any object, building, structure, site, area, place, record or manuscript which a Lead Agency determines, based upon substantial evidence in light of the whole record, to be historically significant or significant in the architectural, engineering, scientific, economic, agricultural, educational, social, political, military or cultural annals of California.

The Lead Agency is not precluded from determining that a resource is a historical resource, as defined in Public Resources Code sections 5020.1(j) or 5024.1, even if it is: (a) not listed in, or is not determined to be eligible for listing in, the California Register of Historical Resources; (b) not included in a local register of historical resources; or (c) not identified in a historical resources survey.

11.29 “Infill Site” means a site in an urbanized area that meets either of the following criteria:
(1) The site has been previously developed for qualified urban uses; or (2) The site has not been previously developed for qualified urban uses and both (a) and (b) are met:
(a) the site is immediately adjacent to parcels that are developed with qualified urban uses, or

1. at least 75 percent of the perimeter of the site adjoins, or is separated only by an improved public right-of-way from, parcels that are developed with existing qualified urban uses at the time the Lead Agency receives an application for an approval; and

2. the remaining 25 percent of the perimeter of the site adjoins parcels that had been previously developed for qualified urban uses;
(b) No parcel within the site has been created within the past 10 years unless the parcel was created as a result of the plan of a redevelopment agency. (Public Resources Code section 21061.3.)

11.30 “Initial Study” means a preliminary analysis conducted by the City to determine whether an EIR, a Negative Declaration, or a Mitigated Negative Declaration must be prepared or to identify the significant environmental effects to be analyzed in an EIR.

11.31 “Jurisdiction by Law” means the authority of any public agency to grant a permit or other entitlement for use, to provide funding for the project in question or to exercise authority over resources which may be affected by the project.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-7 ©Best Best & Krieger LLP The City will have jurisdiction by law over a project when the City has primary and exclusive jurisdiction over the site of the project, the area in which the major environmental effects will occur, or the area in which reside those citizens most directly concerned by any such environmental effects.

11.32 “Land Disposal Facility” means a hazardous waste facility where hazardous waste is disposed in, on, or under land. (Health and Safety Code section 25199.1(d).)

11.33 “Large Treatment Facility” means a treatment facility which treats or recycles one thousand (1,000) or more tons of hazardous waste during any one month of the current reporting period commencing on or after July 1, 1991. (Health and Safety Code section 25205.1(d).)

11.34 “LCI” refers to the Governor’s Office of Land Use and Climate Innovation (formerly known as the Office of Planning and Research, or OPR).

11.35 “Lead Agency” means the public agency which has the principal responsibility for preparing environmental documents and for carrying out or approving a project when more than one public agency is involved with the same underlying activity.

11.36 “Low- and Moderate-Income Households” means persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code—i.e., persons and families whose income does not exceed 120% of area median income, adjusted for family size by the Department of Housing and Community Development, in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development pursuant to Section 8 of the United States Housing Act of 1937. (Public Resources Code section 21159.20(d); State CEQA Guidelines section 15191(f).)

11.37 “Low-Income Households” means households of persons and families of very low and low income. Low-income persons or families are those eligible for financial assistance from governmental agencies for occupants of state-funded housing. Very low income persons are those whose incomes do not exceed the qualifying limits for very low income families as established and amended pursuant to Section 8 of the United States Housing Act of 1937. Such limits are published and updated in the California Code of Regulations. (Public Resources Code section 21159.20(c); Health and Safety Code sections 50105 and 50106; State CEQA Guidelines section 15191(g).)

11.38 “Low-Level Flight Path” means any flight path for any aircraft owned, maintained, or under the jurisdiction of the United States Department of Defense that flies lower than 1,500 feet above ground level, as indicated in the United States Department of Defense Flight Information Publication, “Area Planning Military Training Routes: North and South America (AP/1B)” published by the United States National Imagery and Mapping Agency or its successor.

11.39 “Lower Income Households” is defined in Health and Safety Code section 50079.5 to mean any of the following:

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-8 ©Best Best & Krieger LLP

11.40 “Lower income households” means persons and families whose income does not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937; (2) “Very low income households” means persons and families whose incomes do not exceed the qualifying limits for very low income families as defined in Health and Safety Code section 50105; or
(3) “Extremely low income households” means persons and families whose incomes do not exceed the qualifying limits for extremely low income families as defined in Health and Safety Code section 50106.

11.41 “Major Transit Stop” means a site containing an existing rail or bus rapid transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of twenty (20) minutes or less during the morning and afternoon peak commute periods. (Pub. Resources Code, § 21064.3; see also Pub. Resources Code, § 21060.2; State CEQA Guidelines section 15191(i).)

11.42 “Metropolitan Planning Organization” or “MPO” means a federally-designated agency that provides transportation planning and programming in metropolitan areas. A MPO is designated for each urban area that has been defined in the most recent federal census as having a population of more than 50,000 people. There are 18 federally-designated MPOs in California. Non-urbanized (rural) areas do not have a designated MPO.

11.43 “Military Impact Zone” means any area, including airspace, that meets both of the following criteria:
(1) Is located within two miles of a military installation, including, but not limited to, any base, military airport, camp, post, station, yard, center, homeport facility for a ship, or any other military activity center that is under the jurisdiction of the United States Department of Defense; and
(2) Covers greater than 500 acres of unincorporated land, or greater than 100 acres of city incorporated land.

11.44 “Military Service” means the United States Department of Defense or any branch of the United States Armed Forces.

11.45 “Ministerial” describes a governmental decision involving little or no personal judgment by the public official as to the wisdom or manner of carrying out the project.

The public official merely applies the law to the facts as presented but uses no special discretion or standards or objective measurements, and the public official cannot use personal, subjective judgment in deciding whether or how the project should be carried out. Common examples of ministerial permits include automobile registrations, dog licenses, and marriage licenses. A building permit is ministerial if the ordinance requiring the permit limits the public official to determining whether the zoning allows the structure to be built in the requested location, the structure would meet the strength

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-9 ©Best Best & Krieger LLP requirements in the Uniform Building Code, and the applicant has paid his fee. (Public Resources Code section 21080(b)(1).)

11.46 “Mitigated Negative Declaration” or “MND” means a Negative Declaration prepared for a Project when the Initial Study has identified potentially significant effects on the environment, but: (1) revisions in the project plans or proposals made, or agreed to, by the applicant before the proposed Negative Declaration and Initial Study are released for public review would avoid the effects or mitigate the effects to a point where clearly no significant effect on the environment would occur, and (2) there is no substantial evidence in light of the whole record before the public agency that the project, as revised, may have a significant effect on the environment.

11.47 “Mitigation” includes avoiding the environmental impact altogether by not taking a certain action or parts of an action, minimizing impacts by limiting the degree or magnitude of the action and its implementation, rectifying the impact by repairing, rehabilitating or restoring the impacted environment, reducing or eliminating the impact over time by preservation and maintenance operations during the life of the action, or compensating for the impact by replacing or providing substitute resources or environments, including through permanent protection of such resources in the form of conservation easements.

11.48 “Negative Declaration” or “ND” means a written statement by the City briefly describing the reasons that a proposed project, not exempt from CEQA, will not have a significant effect on the environment and, therefore, does not require the preparation of an EIR.

11.49 “Notice of Completion” means a brief report filed with the Office of Land Use and Climate Innovation by the City when it is the Lead Agency as soon as it has completed a Draft EIR and is prepared to send out copies for review.

11.50 “Notice of Determination” means a brief notice to be filed by the City when it approves or determines to carry out a project which is subject to the requirements of CEQA.

11.51 “Notice of Exemption” means a brief notice which may be filed by the City when it has approved or determined to carry out a project, and it has determined that the project is exempt from the requirements of CEQA. Such a notice may also be filed by an applicant where such a determination has been made by a public agency which must approve the project.

11.52 “Notice of Preparation” means a brief notice sent by a Lead Agency to notify the Responsible Agencies, Trustee Agencies, the Office of Land Use and Climate Innovation, and involved federal agencies that the Lead Agency plans to prepare an EIR for a project. The purpose of this notice is to solicit guidance from those agencies as to the scope and content of the environmental information to be included in the EIR.

Public agencies are free to develop their own formats for this notice.

11.53 “Oak” means a native tree species in the genus Quercus, not designated as Group A or Group B commercial species pursuant to regulations adopted by the State Board of

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-10 ©Best Best & Krieger LLP Forestry and Fire Protection pursuant to Public Resources Code section 4526, and that is five (5) inches or more in diameter at breast height. (Public Resources Code section 21083.4(a).)

11.54 “Oak Woodlands” means an oak stand with a greater than 10 percent canopy cover or that may have historically supported greater than 10 percent canopy cover. (Fish & Game Code section 1361(h).)

11.55 “Offsite Facility” means a facility that serves more than one generator of hazardous waste. (Public Resources Code section 21151.1(h).)

11.56 “Person” includes any person, firm, association, organization, partnership, business, trust, corporation, company, city, county, city and county, town, the state, and any of the agencies which may be political subdivisions of such entities, and, to the extent permitted by federal law, the United States, or any of its agencies or political subdivisions.

11.57 “Pipeline” as defined in these Local Guidelines depends on the context. Please see Local Guidelines Sections 3.10 and 3.11 for specific definitions.

11.58 “Private Project” means a project which will be carried out by a person other than a governmental agency, but which will need a discretionary approval from the City.

Private projects will normally be those listed in subsections (2) and (3) of Local Guidelines Section 11.59.

11.59 “Project” means the whole of an action or activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect change in the environment, and is any of the following:
(1) A discretionary activity directly undertaken by the City including but not limited to public works construction and related activities, clearing or grading of land, or improvements to existing public structures; (2) A discretionary activity which involves a public agency’s issuance to a person of a lease, permit, license, certificate, or other entitlement for use, or which is supported, in whole or in part, through contracts, grants, subsidies, loans or other forms of assistance by the City; or
(3) A discretionary project proposed to be carried out or approved by public agencies, including but not limited to the enactment and amendment of local General Plans or elements thereof, the enactment of zoning ordinances, the issuance of zoning variances, the issuance of conditional use permits and the approval of tentative subdivision maps.

The presence of any real degree of control over the manner in which a project is completed makes it a discretionary project.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-11 ©Best Best & Krieger LLP The term “project” refers to the activity which is being approved and which may be subject to several discretionary approvals by governmental agencies. The term “project” does not mean each separate governmental approval.

11.60 “Project-Specific Effects” means all the direct or indirect environmental effects of a project other than cumulative effects and growth-inducing effects. (Public Resources Code section 21065.3; State CEQA Guidelines section 15191(j).)

11.61 “Public Water System” means a system for the provision of piped water to the public for human consumption that has 3,000 or more service connections. A public water system includes all of the following: (A) Any collection, treatment, storage, and distribution facility under control of the operator of the system which is used primarily in connection with the system; (B) Any collection or pretreatment storage facility not under the control of the operator that is used primarily in connection with the system; (C) Any person who treats water on behalf of one or more public water systems for the purpose of rendering it safe for human consumption. (State CEQA Guidelines section 15155.)

11.62 “Qualified Urban Use” means any residential, commercial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses. (Public Resources Code section 21072; State CEQA Guidelines section 15191(k).)

11.63 “Residential” means a use consisting of either residential units only or residential units and primarily neighborhood-serving goods, services, or retail uses that do not exceed 15% of the total floor area of the project. (State CEQA Guidelines section 15191(l).) Residential, pursuant to Public Resources Code section 21159.24, shall mean a use consisting of either of the following:
(1) Residential units only.
(2) Residential units and primarily neighborhood-serving goods, services, or retail uses that do not exceed 25 percent of the total building square footage of the project.

11.64 “Responsible Agency” means a public agency which proposes to carry out or approve a project for which a Lead Agency has prepared the environmental documents. For the purposes of CEQA, the term “Responsible Agency” includes all federal, state, regional and local public agencies other than the Lead Agency which have discretionary approval power over the project.

11.65 “Riparian areas” mean those areas transitional between terrestrial and aquatic ecosystems and that are distinguished by gradients in biophysical conditions, ecological processes, and biota. A riparian area is an area through which surface and subsurface hydrology connect waterbodies with their adjacent uplands. A riparian area includes those portions of terrestrial ecosystems that significantly influence exchanges of energy and matter with aquatic ecosystems. A riparian area is adjacent to perennial, intermittent, and ephemeral streams, lakes, and estuarine-marine shorelines.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-12 ©Best Best & Krieger LLP

11.66 “Roadway” means a roadway as defined pursuant to Section 530 of the Vehicle Code and the previously graded and maintained shoulder that is within a roadway right-ofway of no more than five feet from the edge of the roadway.

11.67 “Significant Effect” means a substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the activity including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic or aesthetic significance. A social or economic change related to a physical change may be considered in determining whether the physical change is significant.

11.68 “Significant Value as a Wildlife Habitat” includes wildlife habitat of national, statewide, regional, or local importance; habitat for species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531, et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code); habitat identified as candidate, fully protected, sensitive, or species of special status by local, state, or federal agencies; or habitat essential to the movement of resident or migratory wildlife.

11.69 “Special Use Airspace” means the land area underlying the airspace that is designated for training, research, development, or evaluation for a military service, as that land area is established by the United States Department of Defense Flight Information Publication, “Area Planning: Special Use Airspace: North and South America (AP/1A)” published by the United States National Imagery and Mapping Agency or its successor.

11.70 “Staff” means the City Manager or his or her designee.

11.71 “Standard” means a standard of general application that is all of the following:
(1) A quantitative, qualitative or performance requirement found in a statute, ordinance, resolution, rule, regulation, order, or other standard of general application;
(2) Adopted for the purpose of environmental protection; (3) Adopted by a public agency through a public review process; (4) Governs the same environmental effect which the change in the environment is impacting; and
(5) Governs the jurisdiction where the project is located.

The definition of “standard” includes any thresholds of significance adopted by the City which meet the requirements of this Section.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-13 ©Best Best & Krieger LLP If there is a conflict between standards, the City shall determine which standard is appropriate based upon substantial evidence in light of the whole record.

11.72 “State CEQA Guidelines” means the Guidelines for Implementation of the California Environmental Quality Act as adopted by the Secretary of the California Natural Resources Agency as they now exist or hereafter may be amended. (California Administrative Code, Title 14, sections 15000, et seq.)

11.73 “Substantial Evidence” means reliable information on which a fair argument can be based to support an inference or conclusion, even though another conclusion could be drawn from that information. “Substantial evidence” includes facts, reasonable assumptions predicated upon facts, and expert opinion supported by facts. “Substantial evidence” does not include argument, speculation, unsubstantiated opinion or narrative, evidence which is clearly inaccurate or erroneous, or evidence of social or economic impacts which do not contribute to, or are not caused by, physical impacts on the environment.

11.74 “Sustainable Communities Strategy” is an element of a Regional Transportation Plan, which must be adopted by the Metropolitan Planning Organization for the region. (See Local Guidelines Section 11.40.) The Sustainable Communities Strategy is an integrated land use and transportation plan intended to reduce greenhouse gases. The Sustainable Communities Strategy includes various components such as: consideration of existing densities and uses within the region, identification of areas within the region that can accommodate an eight-year projection of the region’s housing needs, development of projections for growth in the region, identification of existing transportation networks, and preparation of a forecast for development pattern for the region that can be integrated with transportation networks.

11.75 “Tiering” means the coverage of general matters in broader EIRs (such as on general plans or policy statements) with subsequent narrower EIRs or ultimately site-specific EIRs incorporating by reference the general discussions and concentrating solely on the issues specific to the EIR subsequently prepared. Tiering is appropriate when the sequence of EIRs is:
(a) From a general plan, policy, or Program EIR to a program, plan, or policy EIR of lesser scope or to a site-specific EIR; or (b) From an EIR on a specific action at an early stage to a subsequent EIR or a supplement to an EIR at a later stage. Tiering in such cases is appropriate when it helps the Lead Agency to focus on the issues which are ripe for decision and exclude from consideration issues already decided or not yet ripe.
(Public Resources Code sections 21003, 21061 and 21100.)

11.76 “Transit Priority Area” means an area within one-half mile of a major transit stop that is existing or planned, if the planned stop is scheduled to be completed within the

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-14 ©Best Best & Krieger LLP planning horizon included in a Transportation Improvement Program adopted pursuant to Section 450.216 or 450.322 of Title 23 of the Code of Federal Regulations.

11.77 “Transit Priority Project” means a mixed use project that is consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy for which the California Air Resources Board has accepted a Metropolitan Planning Organization’s determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets. Such a project may be exempt from CEQA if a detailed laundry list of requirements is met. To qualify for the exemption, the Transit Priority Project must:
(1) contain at least 50 percent residential use based on total building square footage; (2) if the project contains between 26 percent and 50 percent non-residential uses, the floor-to-area ratio (FAR) must be at least 0.75;
(3) have a minimum net density of 20 dwelling units per acre; (4) be located within a half mile of a major transit stop or high-quality transit corridor included in a regional transportation plan; and (5) meet all the requirements of Public Resources Code section 21155.1.

11.78 “Transportation Facilities” includes major local arterials and public transit within five (5) miles of the project site, and freeways, highways, and rail transit service within ten (10) miles of the project site.

11.79 “Tribal Cultural Resources” are either of the following:
(1) Sites, features, places, cultural landscapes, sacred places, and objects with cultural value to a California Native American tribe that are either of the following:
(a) Included or determined to be eligible for inclusion in the California Register of Historical Resources.
(b) Included in a local register of historic resources as defined in subdivision (k) of Public Resources Code section 5020.1. (2) A resource determined by the Lead Agency, in its discretion and supported by substantial evidence, to be significant pursuant to criteria set forth in subdivision (c) of Public Resources Code section 5024.1. In applying the criteria set forth in subdivision (c) of Section 5024.1 for the purposes of this definition, the Lead Agency shall consider the significance of the resource to a California Native American tribe.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-15 ©Best Best & Krieger LLP A cultural landscape that meets the criteria set forth above is a tribal cultural resource to the extent that the landscape is geographically defined in terms of the size and scope of the landscape.

A historic resource described in Public Resources Code section 21084.1, a unique archaeological resource as defined in subdivision (g) of Public Resources Code section 21083.2, or a “nonunique archaeological resource” as defined in subdivision (h) of Public Resources Code section 21083.2 may also be a tribal cultural resource if it conforms with the criteria of Tribal cultural resources.

11.80 “Trustee Agency” means a State agency having jurisdiction by law over natural resources affected by a project which are held in trust for the people of the State of California. Trustee Agencies may include, but are not limited to, the following:
(a) The California Department of Fish and Wildlife (“DFW”) with regard to the fish and wildlife of the state, designated rare or endangered native plants, and game refuges, ecological reserves, and other areas administered by DFW;
(b) The State Lands Commission with regard to state owned “sovereign” lands such as the beds of navigable waters and state school lands; (c) The State Department of Parks and Recreation with regard to units of the State Park System;
(d) The University of California with regard to sites within the Natural Land and Water Reserve System; and/or
(e) The State Water Resources Control Board with respect to surface waters.

11.81 “Urban Growth Boundary” means a provision of a locally adopted general plan that allows urban uses on one side of the boundary and prohibits urban uses on the other side of the boundary.

11.82 “Urbanized Area” means either of the following:
(1) An incorporated city that either by itself or in combination with two contiguous incorporated cities has a population of at least one hundred thousand (100,000) persons;
(2) An unincorporated area that meets both of the following requirements:
(a) The unincorporated area is either:
(i) completely surrounded by one or more incorporated cities, has a population of at least 100,000 persons either by itself or in combination with the surrounding incorporated city or cities, and has a population density that at least equals the population density of the surrounding city or cities; or
(ii) located within an urban growth boundary and has an existing residential population of at least five thousand (5,000) persons per square mile. An “urban growth boundary” means a

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-16 ©Best Best & Krieger LLP provision of a locally adopted general plan that allows urban uses on one side of the boundary and prohibits urban uses on the other side.
(b) The board of supervisors with jurisdiction over the unincorporated area has taken all three of the following steps:

1. Prepared a draft document by which the board would find that the general plan, zoning ordinance, and related policies and programs applicable to the unincorporated area are consistent with principles that encourage compact development in a manner that promotes efficient transportation systems,
economic growth, affordable housing, energy efficiency, and an appropriate balance of jobs and housing, and protects the environment, open space and agricultural areas;

2. Submitted the draft document to the Office of Land Use and Climate Innovation and allowed LCI thirty (30) days to submit comments on the draft finding to the board; and

3. At least thirty (30) days after submitting the draft document to the Office of Land Use and Climate Innovation, the board has adopted a final finding in substantial conformity with the draft finding described in the draft document.
(Public Resources Code sections 21083, 21159.20-21159.24; State CEQA Guidelines section 15191(m).)

11.83 “Water Acquisition Plans” means any plans for acquiring additional water supplies prepared by the public water system or a city or county Lead Agency pursuant to subdivision (a) of section 10911 of the Water Code.

11.84 “Water Assessment” or “Water Supply Assessment” means the water supply assessment that must be prepared by the governing body of a public water system, or a city or county, pursuant to and in compliance with sections 10910 to 10915 of the Water Code, and that includes, without limitation, the elements of the assessment required to comply with subdivisions (d), (e), (f), and (g) of section 10910 of the Water Code.

11.85 “Water Demand Project” means any one of the following:
(A) A residential development of more than 500 dwelling units; (B) A shopping center or business establishment employing more than 1,000 persons or having more than 500,000 square feet of floor space; (C) A commercial office building employing more than 1,000 persons or having more than 250,000 square feet of floor space;
(D) A hotel or motel, or both, having more than 500 rooms;

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-17 ©Best Best & Krieger LLP (E) An industrial, manufacturing, or processing plant, or industrial park planned to house more than 1,000 persons, occupying more than 40 acres of land, or having more than 650,000 square feet of floor area;
Except, a proposed photovoltaic or wind energy generation facility approved on or after October 8, 2011, is not a Water Demand Project if the facility would demand no more than 75 acre-feet of water annually.
(F) A mixed-use project that includes one or more of the projects specified in subdivisions (A); (B), (C), (D), (E), or (G) of this section; (G) A project that would demand an amount of water equivalent to, or greater than, the amount of water required by a 500 dwelling unit project; or (H) For public water systems with fewer than 5,000 service connections, a project that meets the following criteria:
(1) A proposed residential, business, commercial, hotel or motel, or industrial development that would account for an increase of 10 percent or more in the number of a public water system’s existing service connections; or
(2) A mixed-use project that would demand an amount of water equivalent to, or greater than, the amount of water required by residential development that would represent an increase of 10 percent or more in the number of the public water system’s existing service connections. (State CEQA Guidelines section 15155.)

11.86 “Waterway” means a bay, estuary, lake, pond, river, slough, or a perennial, intermittent, or ephemeral stream, lake, or estuarine-marine shoreline.

11.87 “Wetlands” has the same meaning as that term is construed in the regulations issued by the United States Army Corps of Engineers pursuant to the Clean Water Act. Thus, “wetlands” means areas that are inundated or saturated by surface or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. (Public Resources Code section 21159.21(d), incorporating Title 33, Code of Federal Regulations, section 328.3.)

11.88 “Wildlife Habitat” means the ecological communities upon which wild animals, birds, plants, fish, amphibians, and invertebrates depend for their conservation and protection. (Public Resources Code section 21159.21.)

11.89 “Zoning Approval” means any enactment, amendment, or appeal of a zoning ordinance; granting of a conditional use permit or variance; or any other form of land

Local Guidelines for Implementing the
California Environmental Quality Act (2026) DEFINITIONS 20252026 City of Corona Local Guidelines 11-18 ©Best Best & Krieger LLP use, subdivision, tract, or development approval required from the city or county having jurisdiction to permit the particular use of the property.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) FORMS
20252026 City of Corona Local Guidelines 12-1 ©Best Best & Krieger LLP

12. FORMS
See forms A – S which accompany these Guidelines.

Local Guidelines for Implementing the
California Environmental Quality Act (2026) Common ACRONYMS 20252026 City of Corona Local Guidelines 13-1 ©Best Best & Krieger LLP

13. COMMON ACRONYMS
A. **************************************************
ADEIR – Administrative Draft Environmental Impact Report AQMD – Air Quality Management District
AQMP – Air Quality Management Plan
AR – Administrative Record
ARB – Air Resources Board
B. **************************************************
BMP – Best Management Practices
BO – Biological Opinion
C. **************************************************
Cal EPA – California Environmental Protection Agency
CAP – Climate Action Plan
CCAA – California Clean Air Act
CCR – California Code of Regulations (Title 14 Sections 15000 et seq. are also known as the State CEQA Guidelines.)
CE – Categorical Exclusion (NEPA)
CESA – California Endangered Species Act
CEQA – California Environmental Quality Act
CFR – Code of Federal Regulations
CMP – Congestion Management Plan
CRWQCB – California Regional Water Quality Control Board D. **************************************************
DEIR – Draft Environmental Impact Report
DFW – Department of Fish and Wildlife
E. **************************************************
EA – Environmental Assessment (NEPA term)
EIR – Environmental Impact Report
EIS – Environmental Impact Statement (NEPA term)
EPA – Environmental Protection Agency
ESA – Endangered Species Act; Environmental Site Assessment F. **************************************************
FCAA – Federal Clean Air Act
FEIR – Final Environmental Impact Report
FOIA – Freedom of Information Act (Federal)
FONSI – Finding of No Significant Impact (NEPA term)
FWS – Fish and Wildlife Service

Local Guidelines for Implementing the
California Environmental Quality Act (2026) Common ACRONYMS 20252026 City of Corona Local Guidelines 13-2 ©Best Best & Krieger LLP G. **************************************************
GHG – Greenhouse Gas
GW – Ground Water
H. **************************************************
HH&E – Human Health and Environment
HRA – Health Risk Assessment
HS – Hazardous Substance
I. **************************************************
IS – Initial Study
J. **************************************************
K. **************************************************
L. **************************************************
LADD – Lifetime Average Daily Dose; Lowest Acceptable Daily Dose LCI – Office of Land Use and Climate Innovation (formerly Office of Planning and Research or OPR)
LEA – Local Enforcement Agency
LESA – Land Evaluation and Site Assessment
LUFT – Leaking Underground Fuel Tank
LUST – Leaking Underground Storage Tanks. Reference Part 213 of Public Act 451 of 1994.

M. **************************************************
MEIR – Master Environmental Impact Report
MMRP – Mitigation Monitoring and Reporting Plan
MPO – Metropolitan Planning Organization
MND – Mitigated Negative Declaration
N. **************************************************
ND – Negative Declaration
NEPA – National Environmental Policy Act
NOA – Notice of Availability
NOC – Notice of Completion
NOD – Notice of Determination
NOE – Notice of Exemption
NOI – Notice of Intent
NOP – Notice of Preparation
NOV – Notice of Violation
O. **************************************************

Local Guidelines for Implementing the
California Environmental Quality Act (2026) Common ACRONYMS 20252026 City of Corona Local Guidelines 13-3 ©Best Best & Krieger LLP P. **************************************************
PEIR – Program Environmental Impact Report. Sometimes also used to describe a Project Environmental Impact Report
PM – Particulate Matter
PRA – Public Records Act
PSA – Permit Streamlining Act
Q. **************************************************
R. **************************************************
RCRA – Resource Conservation and Recovery Act (1976) Governs definition, handling, and disposal of hazardous waste.

S. **************************************************
SCH – State Clearinghouse
SEIR – Supplemental or Subsequent Environmental Impact Report SMARA – Surface Mining and Reclamation Act
SWMP – Stormwater Monitoring Program
SWPPP – Stormwater Pollution Prevention Program
T. **************************************************
TCM – Transportation Control Measure
TCP – Transportation Control Plan
TDS – Total Dissolved Solids
TMP – Transportation Management Plan
Title V – refers to Title V of the Clean Air Act related to ambient air quality provisions TLV – Threshold Limit Value
U. **************************************************
UBC – Uniform Building Code
UFC – Uniform Fire Code
UGST – Underground Storage Tank
USDW – Underground Source of Drinking Water
UWMP – Urban Water Management Plan
V. **************************************************
VOC – Volatile Organic Compounds (Health & Safety Code, section 25123.6.) VOS – Vehicle Operating Survey
W. **************************************************
WQS – Water Quality Standard
WSA – Water Supply Assessment

Local Guidelines for Implementing the
California Environmental Quality Act (2026) Common ACRONYMS 20252026 City of Corona Local Guidelines 13-4 ©Best Best & Krieger LLP WTP – Water Treatment Plant. A facility designed to provide treatment to water.

WWTP – Wastewater Treatment Plan
X. **************************************************
Y. **************************************************
Z. **************************************************

DATE: 06/17/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-225

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

RESOLUTIONS APPROVING THE CITY OF CORONA’S INVESTMENT POLICY AND

THE PENSIONSTABILIZATION TRUST INVESTMENT POLICY
EXECUTIVE SUMMARY:

This staff report asks the City Council to adopt Resolution No. 2026-077, approving the City of Corona’s Investment Policy, and Resolution No. 2026-078, approving the Pension Stabilization Trust Investment Policy. Both policies require City Council’s annual review and adoption by Resolution. The City Treasurer and the City’s investment advisor, Chandler Asset Management, have reviewed the investment policies.

RECOMMENDED ACTION:

That the City Council:
a. Adopt Resolution No. 2026-077, approving the City of Corona’s Investment Policy. b. Adopt Resolution No. 2026-078, approving the Pension Stabilization Trust Investment Policy.

BACKGROUND & HISTORY:

California Government Code Sections 53600 through 53659 defines the types of investments that municipal governments can include in their portfolio, limits on the level of these investments, and the oversight required for the portfolio. The City of Corona’s Investment Policy and the Pension Stabilization Trust Investment Policy establish strategies, practices, and procedures which are used in the administration of the City’s portfolio to ensure compliance with the laws and regulations governing the City’s investment.

The City of Corona’s Investment Policy and the Pension Stabilization Trust Investment Policy are intended to provide guidelines for the prudent investment of the City's temporarily inactive cash and outline the policies for maximizing the efficiency of the City's cash management system. The policies aim to meet the short- and long-term cash flow demands in a manner that will provide for the safety of principal and sufficient liquidity while providing a suitable investment return. The policies are evaluated and adopted annually.

The City of Corona maintains an investment portfolio to hold its inactive cash. The City’s investments allow funds to earn a return while they are in a queue to be spent on City’s projects and services, pursuant to its adopted budget. The current market value of the City’s investment portfolio is approximately $419.6 million, and $63.2 million for the Pension Stabilization Trust portfolio. Through the City’s investment advisor, Chandler Asset Management, the City invests in various instruments that provide a reliable yield and adequate liquidity to ensure that cash is available to meet the City’s needs. Chandler Asset Management makes these investments according to the City’s Investment Policies, with oversight of the City’s Treasury Committee and the Pension Stabilization Trust’s Board of Trustees. The Investment Policies are formal statements of objectives and constraints for the City’s investment approach.

ANALYSIS:

The City of Corona’s Investment Policy and the Pension Stabilization Trust Investment Policy are reviewed annually by the Treasury Committee, the Board of Trustees, and Chandler Asset Management and adopted by the City Council pursuant to State law. They align with the best practices set forth by the California Municipal Treasurers Association and the Government Finance Officers Association.

Chandler Asset Management recommended changes for fiscal year 2027, as noted in the Executive Summary section, to align with new legislative updates and cope with market conditions.

California Government Code 53600 et. seq. sets legal parameters around the degree of risk any municipal treasury can take in its investments. These parameters ensure that public investments are sufficiently diversified, of high quality, and have terms of length that enable the treasury to maintain liquidity and protect against longer-term shifts in the market. Historically, the City of Corona’s Investment Policy has been more conservative than the California Government Code regarding the credit rating requirement and limiting the percentage of funds invested into variable-rate assets. This approach has yielded

higher returns than the industry benchmark yet remains safe and liquid enough to meet the City’s financial needs. Investment strategies are utilized to continuously adjust the balance between cash and investments to improve the overall return on investment.

As of March 31, 2026, the average market yield of the City’s portfolio was 4.06%, which was 0.22% above the benchmark Bank of America Merrill Lynch 1-5-year US Treasury/Agency Index. The total rate of return for the Pension Stabilization Trust investment was 11.67%, which was 3.0% higher compared to the benchmark of the Multi Asset Class Index. The City’s Treasury Committee and the Board of Trustees of the Pension Stabilization Trust believe that the current Investment Policies are prudent and will continue to meet or exceed the benchmarks, thereby ensuring that funds remain available to support the City’s cash flow needs to deliver City services expected by the public.

Monthly investment reports are filed with the City Council and publicly posted on the City’s website to provide a clear picture of the status and performance of the current investments.

Recommended changes have been annotated in the Word documents attached as exhibits alongside each redline, and summarized as below:

City of Corona Investment Policy:
 Updates based on the latest California Government Code, effective 01/01/2026, Senate Bill 595
o Extends the provision to allow up to 40% of a total portfolio in commercial paper through 2031.
o Allows investment in zero- or negative interest rate accrual of US Treasury securities through 2031.
o Extends the CP maximum maturity to increase from 270 days to 397 days.  Update Best Practices
o Collateralization: enhanced consistency of collateralization required for thirdparty custodians to the collateralization section of the policy. o Benchmarks: Genericized to be based on market benchmarks and added +/- 20% for duration targets.
o Authorized Investments: Clarified the three types of LGIPs and notated their corresponding CGC regulation. For county pools, for risk mitigation a best practice is to limit to no more than 20% of total portfolio.

Pension Stabilization Trust Investment Policy:
 Broaden asset allocation categories for Fixed Income and Equity to allow for more flexibility across market cycles
 Update the benchmark to be more representative of asset classes FINANCIAL IMPACT:

There is no financial impact associated with the approval of the recommended actions.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely approves the City’s Investment Policy and there is no possibility that adopting this resolution will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: CHRISTINE THOMPSON, ACCOUNTING MANAGER
REVIEWED BY: BRUCE FOLTZ, FINANCE DIRECTOR
ATTACHMENTS:

1. Exhibit 1 - Resolution No. 2026-077 Approving the City of Corona’s Investment Policy.

2. Exhibit 2 - Resolution No. 2026-078 Approving the Pension Stabilization Trust Investment Policy

3. Exhibit 3 - Administrative Policy 01200.602- City of Corona’s Investment Policy

4. Exhibit 4 - Administrative Policy 01200.602- City of Corona’s Investment Policy Redline

5. Exhibit 5 - Administrative Policy 01200.606- Pension Stabilization Trust Investment Policy

6. Exhibit 6 - Administrative Policy 01200.606- Pension Stabilization Trust Investment Policy Redline

RESOLUTION NO. 2026-077

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CORONA, CALIFORNIA, APPROVING THE CITY OF
CORONA’S INVESTMENT POLICY
WHEREAS, the City Council of the City of Corona has considered a document entitled “City of Corona’s Investment Policy” which outlines the policy enacted to provide guidelines for the prudent investment of inactive cash for all funds in the investment portfolio as well as guidelines for maximizing the efficiency of the cash management system for the City, the Corona Utility Authority, the Corona Housing Authority, and the Corona Public Financing Authority; and
WHEREAS, the “City of Corona’s Investment Policy” has also been administratively assigned City Administrative Policy No. 01200-602; and WHEREAS, the “City of Corona’s Investment Policy” provides for a creation of a Treasury Committee comprised of the City Treasurer, City Manager, Assistant City Manager and Finance Director; and
WHEREAS, at the direction of the City Treasurer, the City of Corona’s Investment Policy shall be reviewed annually to reflect changes in the California state codes, general market conditions or to provide further clarification of the City’s policy; and WHEREAS, the Finance Director has recommended to the City Council that the “City of Corona’s Investment Policy” be approved and established as the policy of the City, the Corona Utility Authority, the Corona Housing Authority, and the Corona Public Financing Authority and such other entities as may be established for cash management; and WHEREAS, the City Council has determined that the “City of Corona’s Investment Policy” be approved and established as recommended by the Finance Director.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA that the “City of Corona’s Investment Policy,” as presented to the City Council at the meeting in which this Resolution is adopted, is hereby approved and established as the policy of the City with respect to investments.

PASSED, APPROVED AND ADOPTED this 17th day of June, 2026. ________________________________
Mayor of the City of Corona, California
ATTEST:
______________________________________________
City Clerk of the City of Corona, California

CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 17th day of June, 2026, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California this 17th day of June, 2026.

City Clerk of the City of Corona, California

(SEAL)

RESOLUTION NO. 2026-078

RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CORONA, CALIFORNIA, APPROVING THE CITY OF
CORONA’S PENSION STABILIZATION TRUST

INVESTMENT POLICY
WHEREAS, the City Council of the City of Corona has considered a document entitled “City of Corona’s Pension Stabilization Trust Investment Policy” which outlines the policy enacted to provide guidelines for the prudent investment of cash in the Pension Stabilization Trust; and
WHEREAS, the “City of Corona’s Pension Stabilization Trust Investment Policy” has also been administratively assigned City Administrative Policy No. 01200-606; and WHEREAS, the Trustees of the Pension Stabilization Trust (“Trust”) have been established with the Pension Stabilization Trust Agreement and consist of the City Treasurer, City Manager, Assistant City Manager, Finance Director, and Accounting Manager; and WHEREAS, at the direction of the City Treasurer, the “City of Corona’s Pension Stabilization Trust Investment Policy” shall be reviewed annually to reflect changes in the California state codes, general market conditions or to provide further clarification of the policy; and
WHEREAS, the Finance Director has recommended to the City Council that the “City of Corona’s Pension Stabilization Trust Investment Policy” be approved and established as the policy of the City and the Trust; and
WHEREAS, the City Council has determined that the “City of Corona’s Pension Stabilization Trust Investment Policy” be approved and established as recommended by the Finance Director.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, that the “City of Corona’s Pension Stabilization Trust Investment Policy,” as presented to the City Council at the meeting in which this Resolution is adopted, is hereby approved and established as the policy of the City and the Trust with respect to investments.

PASSED, APPROVED AND ADOPTED this 17th day of June, 2026.

Mayor of the City of Corona, California
ATTEST:

City Clerk of the City of Corona, California

CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 17th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 17th day of June 2026.

City Clerk of the City of Corona, California
[SEAL]

CITY OF CORONA ___________________________________________________________

INVESTMENT POLICY
Jacque Casillas, Mayor
Wes Speake, Vice Mayor
Tom Richins, Council Member
Jim Steiner, Council Member
Tony Daddario, Council Member
Chad Willardson, City Treasurer
Adopted by the City Council June 17, 2026

City of Corona Investment Policy
Adopted by City Council June 17, 2026

TABLE OF CONTENTS
I. PURPOSE...................................................................................................................... 2 II. SCOPE........................................................................................................................... 2 III. PRUDENCE ................................................................................................................... 2 IV. ETHICS AND CONFLICT OF INTEREST ...................................................................... 3 V. INVESTMENT SELECTION CRITERIA ......................................................................... 3 VI. TREASURY COMMITTEE ............................................................................................. 4 VII. INVESTMENT RESPONSIBILITY.................................................................................. 4 VIII. ALLOWABLE INVESTMENTS ...................................................................................... 5 IX. INVESTMENT POOLS / MUTUAL FUNDS.................................................................... 6 X. SELECTION OF FINANCIAL INSTITUTIONS ............................................................... 6 XI. SAFEKEEPING AND CUSTODY................................................................................... 7 XII. COLLATERALIZATION................................................................................................. 7 XIII. MATURITY..................................................................................................................... 8 XIV. LIQUIDITY ..................................................................................................................... 8 XV. DIVERSIFICATION ........................................................................................................ 8 XVI. REPORTING.................................................................................................................. 9 XVII. INTERNAL CONTROLS ...............................................................................................10 XVIII. PERFORMANCE STANDARDS ...................................................................................10 XIX. INVESTMENT POLICY ADOPTION .............................................................................10 GLOSSARY OF TERMS ..........................................................................................................11 Attachment A – Allowable Investments.................................................................................15 Attachment B – Sample Resolution Approving the Investment Policy...............................20

City of Corona Investment Policy
Adopted by City Council June 17, 2026
2 INVESTMENT POLICY
I. PURPOSE
This document is intended to provide guidelines for the prudent investment of the City's temporary inactive cash and outline the policies for maximizing the efficiency of the City's cash management system. The goal of the City's Investment Policy (the “Policy) is to meet the short and long-term cash flow demands in a manner which will provide for the safety of principal and sufficient liquidity, while providing a suitable investment return.

The Policy shall be adopted annually by resolution of the City Council. The Policy shall be reviewed annually by both the Treasury Committee and the City Council and any modifications made thereto must be approved.

The Policy is in conformance with the California Government Code Sections 53600 et seq. However, to meet the City's needs, the investment parameters set forth in the Policy are more conservative than those allowed by state law.

II. SCOPE
The Policy shall direct the investment of the City's temporarily inactive cash for all funds in the investment portfolio. These funds are accounted for in the City of Corona Annual Comprehensive Financial Report under the following fund types:

Governmental Funds
Proprietary Funds
Fiduciary Funds
The Policy shall also direct all investments related to the Corona Utility Authority, the Corona Housing Authority, and the Corona Public Financing Authority. The Policy will not direct the investment of funds held for employees in deferred compensation plans. Additionally, the Policy will not direct the investment of bond proceeds, which are specifically governed by the individual bond documents and trust indentures.

III. PRUDENCE
The standard of prudence to be used by the investment official shall be the “prudent investor standard” as set forth in California Government Code Section 53600.3 and shall be applied in the context of managing the overall portfolio.

The City Treasurer will be responsible for maintaining and updating investment policies and procedures. The intent of the procedures will be to ensure that the

City of Corona Investment Policy
Adopted by City Council June 17, 2026
3 investment objectives and safeguards stated in this Policy are effectively communicated to all officials involved in the investment of public funds and that they properly reflect the intent of the “Prudent Investor” rule. The procedures will be maintained on file with the City Treasurer and the Finance Director.

IV. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall comply with the disclosure and disqualification requirements required by state law and any applicable regulations, including those adopted by the Fair Political Practices Commission, or FPPC. In addition, the FPPC’s Statement of Economic Interests (Form 700) shall be completed annually and submitted to the City Clerk for all individuals involved in the investment of public funds.

V. INVESTMENT SELECTION CRITERIA
Criteria for selecting investments and the order of priority are:

1. Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts.

Safety of principal is the foremost objective of the investment program. City investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The City shall select only those investments that are considered very safe. The City shall not engage in speculation. The City shall diversify its investments by investing funds among a variety of securities and financial institutions offering independent returns.

2. Liquidity. Liquidity is the ability to change an investment into its cash equivalent on short notice at its prevailing market value. The funds in the City’s portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrently with cash needs to meet anticipated demands. Furthermore, since all possible cash demands cannot be anticipated, the portfolio will maintain a liquidity buffer and invest primarily in securities with active secondary and resale markets.

3. Yield. Yield is the potential dollar earnings that an investment can provide; it is also referred to as the rate of return. The City’s portfolio shall be designed to attain a return on investments through economic cycles, taking into account investment risk constraints and liquidity needs. Return on

City of Corona Investment Policy
Adopted by City Council June 17, 2026
4 investment is of least importance compared to the safety and liquidity objectives.

VI. TREASURY COMMITTEE
The Policy provides for the creation of a Treasury Committee (Committee). The Committee is composed of the City Treasurer, City Manager, Assistant City Manager and Finance Director.

The Committee shall be responsible for the following:

1. Review of financial institutions.

2. Review of investment strategy.

3. Review of investment operations guidelines and procedures.

4. Review of controls to assure compliance with the State law and the City's Policy.

5. Recommendation and approval of investment brokers, dealers, advisors and managers.

6. Review of investment reports and other related issues with the City Council on an as-needed basis.

7. Recommending modifications to the list of permitted investments.

VII. INVESTMENT RESPONSIBILITY
In accordance with the State of California Government Code section 53607, the City Council delegates investment authority to the City Treasurer for a period of one year and such investment authority must be renewed annually. Adoption of this Policy constitutes delegation of investment authority to the City Treasurer for the fiscal year unless revoked in writing.

Within the constraints set forth in the Policy, the City Treasurer has the authority to direct investment strategy and approve investment transactions for the City's investment portfolio.

The City Treasurer appoints the Finance Director as Deputy City Treasurer and authorizes the Finance Director to act on his/her behalf in performing the powers and duties of the office as needed, and to specifically take responsibility for the implementation and supervision of investment controls and operations.

The Finance Director, or his/her designee, is responsible for the following:

1. Approving daily investment transactions.

2. Developing projections of the City's cash requirements for operating needs.

3. Reviewing the liquidity position of the investment portfolio.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
5 4. Ensuring that the City's cash position is consistent with operating requirements.

5. Preparing appropriate investment reports.

6. Developing, implementing and monitoring controls over investments.

7. Record keeping for investment transactions.

Delegation of Authority
The City may engage the services of one or more external investment management advisors to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such advisors may be granted discretion to purchase and sell investment securities in accordance with the Policy. Such managers must be registered under the Investment Advisers Act of 1940. All broker/dealers selected by an external advisor must comply with the requirements of California Government Code Section 53601.5.

VIII. ALLOWABLE INVESTMENTS
Allowable investments for the City are listed in the matrix provided herein as Attachment A. Percentage holding limits and minimum credit requirements listed in this section apply at the time the security is purchased based on total portfolio.

The list is intended to ensure that the investment portfolio is properly diversified so that no single category of investment is over weighted or poses a disproportionate credit risk to the City. It should be noted that any newly developed derivative of an allowable investment that is not specifically mentioned in the Policy must be recommended by the City Treasurer for inclusion in the Policy. Any amendments to the list of allowable investments must be submitted to the City Council, via the Treasury Committee, for review and approval.

Any prior investment currently held by the City that does not meet the guidelines of this policy shall be exempt from the requirements of the Policy. At maturity or liquidation, such funds shall be reinvested as provided by the Policy.

Should an investment’s percentage exceeded the Policy limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Treasurer shall consider reconstructing the portfolio within the Policy established percentage limits.

All purchases and sales of securities will require a minimum of three quotes when practical. The three-quote rule will be waived for the following transactions:

1. Purchase and sale of new issues of federal agency securities that are still in syndicate.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
6 2. Purchase and sale of US treasury bills or notes in amounts of $5 million or less.

3. Purchase and sale of short-term money market securities (i.e. commercial paper, banker’s acceptances, repurchase agreements, discount notes, treasury bills) that have a final maturity of less than 30 days from settlement date.

4. Proprietary reasons, where only one broker is authorized to make or accept offers.

Repurchase agreements may be used as short-term investment vehicles when economic conditions and alternative short-term investments make it favorable to invest in repurchase agreements. Prior to the investment of any public funds in a repurchase agreement, a Master Repurchase Agreement must be properly executed and countersigned by the financial institution that is a party to the agreement. The Master Repurchase Agreement will be the format prescribed by the Bond Market Association.

Investment of bond proceeds held by fiscal agents will be made in accordance with California Government Code Section 53601 (m), which states that money from bond proceeds should be invested as specified by bond documents. In most cases, these investments will be made under the same guidelines as other City investments.

IX. INVESTMENT POOLS / MUTUAL FUNDS
A thorough investigation of the pool/fund is required prior to investing public funds in any local agency investment pool or mutual fund. The investment of any public funds must comply with the rules set forth in the California Government Code Section 53601.

X. SELECTION OF FINANCIAL INSTITUTIONS
Only institutions that demonstrate financial strength may be selected to provide fiscal agent and/or external investment management or advisory services. They shall be selected using the following criteria: financial strength, reputation, technical investment expertise, security controls and ability to conform to the City and State mandated investment parameters.

Purchases and sales of investments shall, whenever practical, be made directly from the issuer, from a member of a federally regulated securities exchange, from a national or state-chartered bank, or from a qualified broker/dealer.

Primary dealers registered with the Federal Reserve Bank of New York should be used for broker/dealer securities transactions. Exceptions to the primary dealer

City of Corona Investment Policy
Adopted by City Council June 17, 2026
7 rule may be made with approval of the Treasury Committee provided they are consistent with the California Government Code Section 53601.5.

A copy of the Policy shall be submitted to all broker/dealers, investment management advisors, fiscal agents and financial institutions with which the City places investments.

The City shall obtain a certification evidencing that they:

1. Have reviewed the City's investment policies and objectives.

2. Are familiar with the City's investment constraints.

3. Have complied with the provisions contained in the Policy.

XI. SAFEKEEPING AND CUSTODY
To protect against fraud, embezzlement, or losses caused by insolvency of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City's custodial bank, a third party bank trust account, acting as agent for the City under the terms of a custody agreement.

Except for federally insured Certificates of Deposit, money market funds or the Local Agency Investment Fund (LAIF), all investments evidenced by physical or book-entry securities shall be secured through third-party custody and the following safekeeping procedures:

1. All transactions described above shall be executed on a delivery versus payment basis.

2. The custodian shall hold assets until the investments mature or the custodial bank receives a request from the City to sell or transfer the securities.

3. Bearer instruments shall be held only through third-party institutions.

XII. COLLATERALIZATION
Certificates of Deposit - The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a non-negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to Government Code Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
8 Repurchase Agreements - The City requires that repurchase agreements be collateralized only by securities authorized in this Policy:

1. The securities which collateralize the repurchase agreement shall be priced at market value, including any accrued interest plus a margin. The market value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.

2. Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third-party custodian

3. Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.

4. The City shall receive monthly statements of collateral.

XIII. MATURITY
The City shall not make any investments in instruments with a stated remaining maturity that exceeds five years at settlement date.

The maturity of investment instruments in the portfolio shall be consistent with projected cash requirements.

It is the City's intent, at the time of purchase, to hold the majority of investments until maturity to ensure the return of all invested principal dollars. However, it is realized that market prices of securities will vary depending on economic and interest rate conditions at any point in time. As a result, the City may choose to sell a security short of final maturity to realize a capital gain if it is to the City's economic advantage to do so. It is further recognized, that in a well-diversified portfolio, occasional measured losses are inevitable due to economic, bond market or individual security credit analysis. These occasional losses must be considered within the context of the overall investment program objectives and the resultant long-term rate of return.

XIV. LIQUIDITY
In maintaining sufficient liquidity in the City’s portfolio, maturities shall be selected to mature prior to or match the timing of the City's projected cash flow needs. It is intended that a liquidity base equal to forecasted cash flow needs for six months should be maintained. Additionally, the marketability of a security shall be important criteria in selecting an investment.

XV. DIVERSIFICATION
The City will diversify its investments by security type, institution, and maturity date.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
9 Mitigating Credit Risk in the Portfolio
Credit Risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City shall mitigate credit risk by adopting the following strategies:

1. The diversification requirements included in this section are designed to mitigate credit risk in the portfolio.

2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US government, its agencies and instrumentalities, money market mutual funds and LAIF.

3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or the City’s risk preferences.

4. If securities owned by the City are downgraded by a Nationally Recognized Statistical Rating Organization (NRSRO) to a level below the quality required by this Policy, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. Moody’s, Standard and Poor’s, and Fitch are currently used as the NRSRO.
a. If a security is downgraded below the level required by the Policy, the City Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the loss in value, the economic outlook for the issuer, and other relevant factors. b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

XVI. REPORTING
The City Treasurer shall file a monthly investment report with the City Council which provides a clear picture of the status of current investments. The investment report may include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentages of investments by category, possible changes in the portfolio structure and significant changes to investment strategies. The monthly investment report filed with the City Council will contain the following:

1. Percentages of the portfolio represented by each investment category.

2. An investment inventory including types and amounts of investments, issuing financial institutions and maturities.

3. A list of all investment transactions that occurred during the reporting month.

4. Investments or programs under the management of contracted parties.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
10 5. Average maturity of the portfolio.

6. Average total yield to maturity of the portfolio relative to the prescribed benchmarks.

7. Current market value of investments with maturities of more than 12 months.

8. A statement denoting that the investment portfolio has sufficient liquidity to meet the City’s anticipated expenditure requirements for the upcoming six months.

9. Percent of portfolio invested by type of instrument.

10. Written explanations for any variances to the Policy.

XVII. INTERNAL CONTROLS
Internal controls shall be established and maintained to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees and officers of the City.

Controls deemed most important include: segregation of duties, separation of transaction authority from accounting and record keeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, control over wire transfers, minimizing the number of authorized investment officials and documentation of transactions and strategies.

The City Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with the policies and procedures set forth in this document.

XVIII. PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.

The duration of each portfolio will be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the investment objectives, constraints and risk tolerances for each portfolio.

XIX. INVESTMENT POLICY ADOPTION
At the direction of the City Treasurer, the City's Investment Policy shall be reviewed annually, to reflect changes in the California state codes, general market conditions or to provide further clarification of the City's policy. The Policy shall be formally presented to the City Council for approval at a public meeting. Any change in the Policy shall also be approved at a public meeting by the City Council.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
11 GLOSSARY OF TERMS
Accrued Interest - Interest earned but not yet received.

Asset Backed Securities – Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

Banker’s Acceptance (BA) - A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Bond - A financial obligation for which an issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Broker - A broker brings buyers and sellers together for a commission. The broker does not take a position.

Certificate of Deposit - A deposit insured up to $100,000 by the FDIC at a set rate for a specified period of time.

Collateral - Securities, evidence of deposit or pledges to secure repayment of a loan.

Also refers to securities pledged by a bank to secure deposit of public funds.

Collateralized Mortgage Obligation (CMO) – classes of bonds that redistribute the cash flow of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

Commercial Paper – A short-term, unsecured promissory note issued by a large corporation.

Coupon - a) The annual rate of interest that a bond's issuer promises to pay the bold holder on the bond's face value. b) A certificate attached to a Bond evidencing interest due on the payment date.

Dealer - A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

Delivery Versus Payment - There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is the delivery of securities with an exchange of money for the securities. Delivery versus receipt is the delivery of securities with an exchange of a signed receipt for the securities.

Discount - The difference between the cost price of a security and its maturity when quoted at a lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

Discount Notes - Non-interest bearing money market instruments that are issued at a Discount and redeemed at maturity for full face value (e.g., U.S. treasury bills).

City of Corona Investment Policy
Adopted by City Council June 17, 2026
12 Diversified Management Companies – Mutual funds or money market mutual funds registered with the Securities and Exchange Commission pursuant California Government Code Section 53601(k).

Federal Reserve System - The central bank of the United States created by Congress and consisting of a seven member-board of governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks are members of the system.

IADB – Inter-American Development Bank, one of the three Washington, D.C. based Supranational issuers.

IBRD – International Bank for Reconstruction and Development, one of the three Washington, D.C. based Supranational issuers.

IFC – International Finance Corporation, one of the three Washington, D.C. based Supranational issuers.

Liquidity - A liquid asset is one that can be converted easily and rapidly to cash without a substantial loss of value.

Local Government Investment Pool - The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. (i.e. Local Agency Investment Fund or LAIF).

Market Value - The price at which a security is trading and could presumably be purchased or sold.

Maturity - The date upon which the principal or stated value of an investment becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

Medium Term Notes – All corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States.

Mortgage-Backed Pass-Through Securities - A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

New Issue - Term used when a security is originally "brought" to the market.

Offering Price - The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See "Asked" and "Bid".

City of Corona Investment Policy
Adopted by City Council June 17, 2026
13 Portfolio - Collection of securities held by an investor.

Primary Dealer - A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include SECregistered securities broker/dealers, banks and a few unregulated firms.

Rate of Return - The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Repurchase Agreement (REPO) - A transaction where the seller (bank) agrees to buy back from the buyer (City) the securities at an agreed upon price after a stated period of time. The buyer in effect lends the seller money for the period of the agreement, and the terms of the agreement are structured to compensate the buyer for this.

Reverse Repurchase Agreement – An agreement to sell securities in return for cash with an agreement to repurchase the securities at an agreed upon price.

Risk - Degree of uncertainty of return on an asset.

Safekeeping - A service to customers rendered by banks, for a fee, whereby securities and valuables of all types and descriptions are held in the bank vaults for protection.

Securities and Exchange Commission (SEC) – An agency created by Congress to protect investors in securities transactions by administering securities legislation.

Supranational – A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

Treasury Bills - U.S. treasury bills are short-term, direct obligations of the U.S. government issued with original maturities of 13 weeks and 52 weeks in book form only.

Treasury Notes - Intermediate-term Coupon bearing U.S. securities having maturities from one year to ten years.

Yield - The rate of annual income return on an investment, expressed as a percentage.

It is obtained by dividing the current dollar income by the current market price of the security.

Yield to Maturity - The rate of income return on an investment, minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of the purchase to the date of maturity of the bond.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
14 Zero Coupon Bond – A bond on which interest is not payable until maturity (or earlier redemption), but compounds periodically to accumulate to a stated maturity amount.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
15 Attachment A – Allowable Investments
ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality Bankers
Acceptances
Not to exceed
25% in any one
institution;
Not to exceed
20% of
portfolio
Not to
exceed
180
days
Eligible for
purchase by the
Federal
Reserve System
Not to exceed
30% in any one
institution;
May not
exceed 40% of
portfolio
Not to
exceed
180
days
Eligible for
purchase by
the Federal
Reserve
System
Bonds issued by the
City, including Bonds
payable solely out of
revenue from a
revenue producing
property owned,
controlled or
operated by the City
Not to exceed
25% of the
portfolio for
combined
municipal debt
“A” rating
category or
better ranking
by nationally
recognized
rating services
No limit Not to
exceed
5 years
Bonds, Notes or
other evidence of
indebtedness of any
local agency within
California, or state
warrants, or Treasury
Notes or Bonds of
California
Not to exceed
25% of the
portfolio for
combined
municipal debt
“A” rating
category or
better ranking
by nationally
recognized
rating services
No limit Not to
exceed
5 years
Bonds, Notes or
other evidence of
indebtedness in any
of the other 49
states, in addition to
California
Not to exceed
25% of the
portfolio for
combined
municipal debt
“A” rating
category or
better ranking
by nationally
recognized
rating services
No limit Not to
exceed
5 years
Commercial Paper Not to exceed
25% of
Portfolio;
Under a
provision
sunsetting on
January 1,
2031, no more
than 40% of
the portfolio
may be
invested in
Commercial
Paper if the
Agency’s
investment
assets under
management
Not to
exceed
397
days
“A1/P1” rating
category for
issuer’s
Commercial
Paper; “A2/A” or
higher rating on
long-term debt;
US domiciled
corporations
with assets
greater than
$500 million
Not to exceed
25% of
Portfolio; Under
a provision
sunsetting on
January 1,
2031, no more
than 40% of the
portfolio may
be invested in
Commercial
Paper if the
Agency’s
investment
assets under
management
are greater
Not to
exceed
397
days
Prime quality
with the highest
letter/number
rating and “A”
or higher rating
on the issuer’s
long-term debt;
US domiciled
corporations
with assets
greater than
$500 million

City of Corona Investment Policy
Adopted by City Council June 17, 2026
16 ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality are greater
than
$100,000,000.

May not
represent more
than 10% of
issuer’s
outstanding
paper
than
$100,000,000.

May not
represent more
than 10% of
issuer’s
outstanding
paper
Diversified
Management
Companies, as
defined by Section
53601(l) of the
Government Code**
Not to exceed
10% of
Portfolio
N/A Highest ranking
by not less than
2 of the 3
largest rating
services;
Have an SEC
registered
investment
advisor with
more than 5
years of
experience and
assets under
management
greater than
$500 million
Not to exceed
20% of
Portfolio**;
Not more than
10% of
Portfolio in one
fund
N/A Highest ranking
by not less than
2 of the 3
largest rating
services;
Have an SEC
registered
investment
advisor with
more than 5
years of
experience and
assets under
management
greater than
$500 million
Money Market
Mutual Funds
registered with the
Securities and
Exchange
Commission under
the Investment
Company Act of
1940**
Not to exceed
20% of
Portfolio
N/A Highest ranking
by not less than
2 of the 3
largest rating
services;
Have an SEC
registered
investment
advisor with
more than 5
years of
experience and
assets under
management
greater than
$500 million
Not to exceed
20% of
Portfolio**;
Not more than
20% of
Portfolio in one
fund
N/A Highest ranking
by not less than
2 of the 3
largest rating
services;
Have an SEC
registered
investment
advisor with
more than 5
years of
experience and
assets under
management
greater than
$500 million

City of Corona Investment Policy
Adopted by City Council June 17, 2026
17 ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality Federal agency or
United States
governmentsponsored enterprise
obligations,
participations, or
other instruments,
including those
issued by or fully
guaranteed as to
principal and interest
by federal agencies
or United States
governmentsponsored
enterprises.

No limit
The maximum
percent of
callable agency
securities in
the portfolio will
be 20%.

Not to
exceed
5 years
No limit Not to
exceed
5 years
Financial Futures
and Financial Option
Contracts
Not authorized Pursuant to
Section 53601
Not to
exceed
5 years
Pursuant to
Section 53601
Medium-Term Notes
issued by
Corporations
Not to exceed
30% of
Portfolio
Not to
exceed
5 years
Rated in a rating
category of “A”
or its equivalent
or better by at
least one
nationally
recognized
rating service
US domiciled
corporations or
US licensed
depository
Not to exceed
30% of
Portfolio
Not to
exceed
5 years
“A” or better
ranking by a
nationally
recognized
rating service
US domiciled
corporations or
US licensed
depository
Negotiable
Certificates of
Deposit issued by a
Nationally or State
Chartered Bank, a
Federal Association,
or a State Licensed
Branch of a Foreign
Owned Bank
(Insured by Federal
Government)
Not to exceed
20% of
Portfolio
May not
exceed
shareholder’s
equity of
issuing bank or
net worth of
issuing S & L
or Federal
Association
Not to
exceed
3 years
Bank or Savings
& Loans with
“A1/P1” rating
category or
better short term
debt rating and
“A2/A” or better
long-term debt
rating
Not to exceed
30% of
Portfolio
May not
exceed
shareholder’s
equity of
issuing bank or
net worth of
issuing S & L or
Federal
Association
Not to
exceed
5 years
Not specified
Non-Government
issued MortgageBacked PassThrough
Not to exceed
20% of
Portfolio
Not to
exceed
5 years
Securities are
rated in a rating
category of “AA”
or its equivalent
Not to exceed
20% of
investing
Not to
exceed
5 years
Securities are
rated in a rating
category of
“AA” or its

City of Corona Investment Policy
Adopted by City Council June 17, 2026
18 ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality Securities
Collateralized
Mortgage Obligations
and Asset–Backed
Securities
or better by a
NRSRO
agency’s
surplus
equivalent or
better by a
NRSRO
Repurchase
Agreements
Not to exceed
10% of
Portfolio
Not to
exceed
14 days
Collateral of
102% or greater
with securities
permitted in the
Policy
None Not to
exceed
1 year
Authorized
Collateral of
102% or
greater
Reverse Repurchase
Agreements
Not authorized None Not to
exceed
1 year
Extensive
conditions
listed in Section
53601 (i)
State of California
Local Agency
Investment Fund
(LAIF)
Limit set by
LAIF
N/A Instruments
consistent with
State Code
No requirement N/A
Shares of Beneficial
Interest Issued by a
Joint Powers
Authority (JPA)
Invests in
securities
under 53601(a)
to (r), inclusive
N/A Invests in
securities
under 53601(a)
to (r), inclusive
N/A
Other Local
Government
Investment Pools
established by public
entities
Not to exceed
20% of
portfolio
N/A None N/A
Supranationals Not to exceed
30% of
portfolio; Not to
exceed 10%
per issuer
Not to
exceed
5 years
“AA” rating
category or
better ranking
by a nationally
recognized
rating service
Washington,
D.C. based
issuers: IADB,
IBRD, and IFC
Not to exceed
30% of portfolio
Not to
exceed
5 years
“AA” or better
ranking by a
nationally
recognized
rating service
Washington,
D.C. based
issuers: IADB,
IBRD, and IFC
United States
Treasury Notes,
Bonds, Bills, or other
certificates of
indebtedness backed
by the US
Government
No limit Not to
exceed
5 years
No limit Not to
exceed
5 years

City of Corona Investment Policy
Adopted by City Council June 17, 2026
19 ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality Zero Coupon
Bonds***
Not authorized Not specified
* Unless otherwise specified in this policy, no more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US government, its agencies and instrumentalities, money market mutual funds and LAIF.
** Total amount invested in Mutual funds and Money Market Mutual Funds may be no more than 20% of the total portfolio.
***Under a provision sunsetting on January 1, 2031, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
20 Attachment B – Sample Resolution Approving the Investment Policy RESOLUTION NO. 2026-077

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CORONA, CALIFORNIA, APPROVING THE CITY OF
CORONA’S INVESTMENT POLICY
WHEREAS, the City Council of the City of Corona has considered a document entitled “City of Corona’s Investment Policy” which outlines the policy enacted to provide guidelines for the prudent investment of inactive cash for all funds in the investment portfolio as well as guidelines for maximizing the efficiency of the cash management system for the City, the Corona Utility Authority, the Corona Housing Authority, and the Corona Public Financing Authority; and
WHEREAS, the “City of Corona’s Investment Policy” has also been administratively assigned City Administrative Policy No. 01200-602; and WHEREAS, the “City of Corona’s Investment Policy” provides for a creation of a Treasury Committee comprised of the City Treasurer, City Manager, Assistant City Manager and Finance Director; and
WHEREAS, at the direction of the City Treasurer, the City of Corona’s Investment Policy shall be reviewed annually to reflect changes in the California state codes, general market conditions or to provide further clarification of the City’s policy; and WHEREAS, the Finance Director has recommended to the City Council that the “City of Corona’s Investment Policy” be approved and established as the policy of the City, the Corona Utility Authority, the Corona Housing Authority, and the Corona Public Financing Authority and such other entities as may be established for cash management; and WHEREAS, the City Council has determined that the “City of Corona’s Investment Policy” be approved and established as recommended by the Finance Director.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA that the “City of Corona’s Investment Policy,” as presented to the City Council at the meeting in which this Resolution is adopted, is hereby approved and established as the policy of the City with respect to investments.

City of Corona Investment Policy
Adopted by City Council June 17, 2026
21 PASSED, APPROVED AND ADOPTED this 17th day of June, 2026. ________________________________
Mayor of the City of Corona, California
ATTEST:
______________________________________________
City Clerk of the City of Corona, California

City of Corona Investment Policy
Adopted by City Council June 17, 2026
22 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 17th day of June, 2026, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California this 17th day of June, 2026.

City Clerk of the City of Corona, California
(SEAL)

CITY OF CORONA ___________________________________________________________

INVESTMENT POLICY
Jim SteinerJacque Casillas, Mayor
Wes Speake Jacque Casillas, Vice Mayor
Tom Richins, Council Member
Jim Steiner Wes Speake, Council Member
Tony Daddario, Council Member
Chad Willardson, City Treasurer
Adopted by the City Council June 187, 20256

City of Corona Investment Policy
Adopted by City Council June 187, 20256

TABLE OF CONTENTS
I. PURPOSE ......................................................................................................................... 2 II. SCOPE .............................................................................................................................. 2 III. PRUDENCE ...................................................................................................................... 2 IV. ETHICS AND CONFLICT OF INTEREST ........................................................................ 3 V. INVESTMENT SELECTION CRITERIA............................................................................ 3 VI. TREASURY COMMITTEE ................................................................................................ 4 VII. INVESTMENT RESPONSIBILITY .................................................................................... 4 VIII. ALLOWABLE INVESTMENTS ......................................................................................... 5 IX. INVESTMENT POOLS / MUTUAL FUNDS ...................................................................... 6 X. SELECTION OF FINANCIAL INSTITUTIONS ................................................................. 6 XI. SAFEKEEPING AND CUSTODY ..................................................................................... 7 XII. COLLATERALIZATION ................................................................................................... 7 XIII. MATURITY ........................................................................................................................ 8 XIV. LIQUIDITY ........................................................................................................................ 8 XV. DIVERSIFICATION ........................................................................................................... 8 XVI. REPORTING ..................................................................................................................... 9 XVIII. PERFORMANCE STANDARDS .................................................................................... 10 XIX. INVESTMENT POLICY ADOPTION ............................................................................... 10 GLOSSARY OF TERMS ............................................................................................................ 12 Attachment A – Allowable Investments .................................................................................. 16 Attachment B – Sample Resolution Approving the Investment Policy ............................... 21

City of Corona Investment Policy
Adopted by City Council June 187, 20256
2 INVESTMENT POLICY
I. PURPOSE
This document is intended to provide guidelines for the prudent investment of the City's temporary inactive cash and outline the policies for maximizing the efficiency of the City's cash management system. The goal of the City's Investment Policy (the “Policy) is to meet the short and long-term cash flow demands in a manner which will provide for the safety of principal and sufficient liquidity, while providing a suitable investment return.

The Policy shall be adopted annually by resolution of the City Council. The Policy shall be reviewed annually by both the Treasury Committee and the City Council and any modifications made thereto must be approved.

The Policy is in conformance with the California Government Code Sections 53600 et seq. However, to meet the City's needs, the investment parameters set forth in the Policy are more conservative than those allowed by state law.

II. SCOPE
The Policy shall direct the investment of the City's temporarily inactive cash for all funds in the investment portfolio. These funds are accounted for in the City of Corona Annual Comprehensive Financial Report under the following fund types:

Governmental Funds
Proprietary Funds
Fiduciary Funds
The Policy shall also direct all investments related to the Corona Utility Authority, the Corona Housing Authority, and the Corona Public Financing Authority. The Policy will not direct the investment of funds held for employees in deferred compensation plans. Additionally, the Policy will not direct the investment of bond proceeds, which are specifically governed by the individual bond documents and trust indentures.

III. PRUDENCE
The standard of prudence to be used by the investment official shall be the “prudent investor standard” as set forth in California Government Code Section 53600.3 and shall be applied in the context of managing the overall portfolio.

The City Treasurer will be responsible for maintaining and updating investment policies and procedures. The intent of the procedures will be to ensure that the

City of Corona Investment Policy
Adopted by City Council June 187, 20256
3 investment objectives and safeguards stated in this Policy are effectively communicated to all officials involved in the investment of public funds and that they properly reflect the intent of the “Prudent Investor” rule. The procedures will be maintained on file with the City Treasurer and the Finance Director.

IV. ETHICS AND CONFLICT OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall comply with the disclosure and disqualification requirements required by state law and any applicable regulations, including those adopted by the Fair Political Practices Commission, or FPPC. In addition, the FPPC’s Statement of Economic Interests (Form 700) shall be completed annually and submitted to the City Clerk for all individuals involved in the investment of public funds.

V. INVESTMENT SELECTION CRITERIA
Criteria for selecting investments and the order of priority are:

1. Safety. The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts.

Safety of principal is the foremost objective of the investment program. City investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The City shall select only those investments that are considered very safe. The City shall not engage in speculation. The City shall diversify its investments by investing funds among a variety of securities and financial institutions offering independent returns.

2. Liquidity. Liquidity is the ability to change an investment into its cash equivalent on short notice at its prevailing market value. The funds in the City’s portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrently with cash needs to meet anticipated demands. Furthermore, since all possible cash demands cannot be anticipated, the portfolio will maintain a liquidity buffer and invest primarily in securities with active secondary and resale markets.

3. Yield. Yield is the potential dollar earnings that an investment can provide; it is also referred to as the rate of return. The City’s portfolio shall be designed to attain a return on investments through economic cycles, taking into account investment risk constraints and liquidity needs. Return on

City of Corona Investment Policy
Adopted by City Council June 187, 20256
4 investment is of least importance compared to the safety and liquidity objectives.

VI. TREASURY COMMITTEE
The Policy provides for the creation of a Treasury Committee (Committee). The Committee is composed of the City Treasurer, City Manager, Assistant City Manager and Finance Director.

The Committee shall be responsible for the following:

1. Review of financial institutions.

2. Review of investment strategy.

3. Review of investment operations guidelines and procedures.

4. Review of controls to assure compliance with the State law and the City's Policy.

5. Recommendation and approval of investment brokers, dealers, advisors and managers.

6. Review of investment reports and other related issues with the City Council on an as-needed basis.

7. Recommending modifications to the list of permitted investments.

VII. INVESTMENT RESPONSIBILITY
In accordance with the State of California Government Code section 53607, the City Council delegates investment authority to the City Treasurer for a period of one year and such investment authority must be renewed annually. Adoption of this Policy constitutes delegation of investment authority to the City Treasurer for the fiscal year unless revoked in writing.

Within the constraints set forth in the Policy, the City Treasurer has the authority to direct investment strategy and approve investment transactions for the City's investment portfolio.

The City Treasurer appoints the Finance Director as Deputy City Treasurer and authorizes the Finance Director to act on his/her behalf in performing the powers and duties of the office as needed, and to specifically take responsibility for the implementation and supervision of investment controls and operations.

The Finance Director, or his/her designee, is responsible for the following:

1. Approving daily investment transactions.

2. Developing projections of the City's cash requirements for operating needs.

3. Reviewing the liquidity position of the investment portfolio.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
5 4. Ensuring that the City's cash position is consistent with operating requirements.

5. Preparing appropriate investment reports.

6. Developing, implementing and monitoring controls over investments.

7. Record keeping for investment transactions.

Delegation of Authority
The City may engage the services of one or more external investment management advisors to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such advisors may be granted discretion to purchase and sell investment securities in accordance with the Policy. Such managers must be registered under the Investment Advisers Act of 1940. All broker/dealers selected by an external advisor must comply with the requirements of California Government Code Section 53601.5.

VIII. ALLOWABLE INVESTMENTS
Allowable investments for the City are listed in the matrix provided herein as Attachment A. Percentage holding limits and minimum credit requirements listed in this section apply at the time the security is purchased based on total portfolio.

The list is intended to ensure that the investment portfolio is properly diversified so that no single category of investment is over weighted or poses a disproportionate credit risk to the City. It should be noted that any newly developed derivative of an allowable investment that is not specifically mentioned in the Policy must be recommended by the City Treasurer for inclusion in the Policy. Any amendments to the list of allowable investments must be submitted to the City Council, via the Treasury Committee, for review and approval.

Any prior investment currently held by the City that does not meet the guidelines of this policy shall be exempt from the requirements of the Policy. At maturity or liquidation, such funds shall be reinvested as provided by the Policy.

Should an investment’s percentage exceeded the Policy limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Treasurer shall consider reconstructing the portfolio within the Policy established percentage limits.

All purchases and sales of securities will require a minimum of three quotes when practical. The three-quote rule will be waived for the following transactions:

1. Purchase and sale of new issues of federal agency securities that are still in syndicate.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
6 2. Purchase and sale of US treasury bills or notes in amounts of $5 million or less.

3. Purchase and sale of short-term money market securities (i.e. commercial paper, banker’s acceptances, repurchase agreements, discount notes, treasury bills) that have a final maturity of less than 30 days from settlement date.

4. Proprietary reasons, where only one broker is authorized to make or accept offers.

Repurchase agreements may be used as short-term investment vehicles when economic conditions and alternative short-term investments make it favorable to invest in repurchase agreements. Prior to the investment of any public funds in a repurchase agreement, a Master Repurchase Agreement must be properly executed and countersigned by the financial institution that is a party to the agreement. The Master Repurchase Agreement will be the format prescribed by the Bond Market Association.

Investment of bond proceeds held by fiscal agents will be made in accordance with California Government Code Section 53601 (m), which states that money from bond proceeds should be invested as specified by bond documents. In most cases, these investments will be made under the same guidelines as other City investments.

IX. INVESTMENT POOLS / MUTUAL FUNDS
A thorough investigation of the pool/fund is required prior to investing public funds in any local agency investment pool or mutual fund. The investment of any public funds must comply with the rules set forth in the California Government Code Section 53601.

X. SELECTION OF FINANCIAL INSTITUTIONS
Only institutions that demonstrate financial strength may be selected to provide fiscal agent and/or external investment management or advisory services. They shall be selected using the following criteria: financial strength, reputation, technical investment expertise, security controls and ability to conform to the City and State mandated investment parameters.

Purchases and sales of investments shall, whenever practical, be made directly from the issuer, from a member of a federally regulated securities exchange, from a national or state-chartered bank, or from a qualified broker/dealer.

Primary dealers registered with the Federal Reserve Bank of New York should be used for broker/dealer securities transactions. Exceptions to the primary dealer

City of Corona Investment Policy
Adopted by City Council June 187, 20256
7 rule may be made with approval of the Treasury Committee provided they are consistent with the California Government Code Section 53601.5.

A copy of the Policy shall be submitted to all broker/dealers, investment management advisors, fiscal agents and financial institutions with which the City places investments.

The City shall obtain a certification evidencing that they:

1. Have reviewed the City's investment policies and objectives.

2. Are familiar with the City's investment constraints.

3. Have complied with the provisions contained in the Policy.

XI. SAFEKEEPING AND CUSTODY
To protect against fraud, embezzlement, or losses caused by insolvency of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City's custodial bank, a third party bank trust account, acting as agent for the City under the terms of a custody agreement.

Except for federally insured Certificates of Deposit, money market funds or the Local Agency Investment Fund (LAIF), all investments evidenced by physical or book-entry securities shall be secured through third-party custody and the following safekeeping procedures:

1. All transactions described above shall be executed on a delivery versus payment basis.

2. The custodian shall hold assets until the investments mature or the custodial bank receives a request from the City to sell or transfer the securities.

3. Bearer instruments shall be held only through third-party institutions.

XII. COLLATERALIZATION
Certificates of Deposit - The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a non-negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to Government Code Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
8 Repurchase Agreements - The City requires that repurchase agreements be collateralized only by securities authorized in this Policy:

1. The securities which collateralize the repurchase agreement shall be priced at market value, including any accrued interest plus a margin. The market value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.

1.2. Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third-party custodian

2.3. Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.

3.4. The City shall receive monthly statements of collateral.

XIII. MATURITY
The City shall not make any investments in instruments with a stated remaining maturity that exceeds five years at settlement date.

The maturity of investment instruments in the portfolio shall be consistent with projected cash requirements.

It is the City's intent, at the time of purchase, to hold the majority of investments until maturity to ensure the return of all invested principal dollars. However, it is realized that market prices of securities will vary depending on economic and interest rate conditions at any point in time. As a result, the City may choose to sell a security short of final maturity to realize a capital gain if it is to the City's economic advantage to do so. It is further recognized, that in a well-diversified portfolio, occasional measured losses are inevitable due to economic, bond market or individual security credit analysis. These occasional losses must be considered within the context of the overall investment program objectives and the resultant long-term rate of return.

XIV. LIQUIDITY
In maintaining sufficient liquidity in the City’s portfolio, maturities shall be selected to mature prior to or match the timing of the City's projected cash flow needs. It is intended that a liquidity base equal to forecasted cash flow needs for six months should be maintained. Additionally, the marketability of a security shall be important criteria in selecting an investment.

XV. DIVERSIFICATION
The City will diversify its investments by security type, institution, and maturity date.

Commented [AS1]: Best Practice. Collateralization section should reference that THIRD PARTY CUSTODIANS will be
utilized for repurchase agreements.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
9 Mitigating Credit Risk in the Portfolio
Credit Risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City shall mitigate credit risk by adopting the following strategies:

1. The diversification requirements included in this section are designed to mitigate credit risk in the portfolio.

2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US government, its agencies and instrumentalities, money market mutual funds and LAIF.

3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or the City’s risk preferences.

4. If securities owned by the City are downgraded by a Nationally Recognized Statistical Rating Organization (NRSRO) to a level below the quality required by this Policy, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. Moody’s, Standard and Poor’s, and Fitch are currently used as the NRSRO.
a. If a security is downgraded below the level required by the Policy, the City Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the loss in value, the economic outlook for the issuer, and other relevant factors. b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

XVI. REPORTING
The City Treasurer shall file a monthly investment report with the City Council which provides a clear picture of the status of current investments. The investment report may include comments on the fixed income markets and economic conditions, discussions regarding restrictions on percentages of investments by category, possible changes in the portfolio structure and significant changes to investment strategies. The monthly investment report filed with the City Council will contain the following:

1. Percentages of the portfolio represented by each investment category.

2. An investment inventory including types and amounts of investments, issuing financial institutions and maturities.

3. A list of all investment transactions that occurred during the reporting month.

4. Investments or programs under the management of contracted parties.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
10 5. Average maturity of the portfolio.

6. Average total yield to maturity of the portfolio relative to the prescribed benchmarks.

7. Current market value of investments with maturities of more than 12 months.

8. A statement denoting that the investment portfolio has sufficient liquidity to meet the City’s anticipated expenditure requirements for the upcoming six months.

9. Percent of portfolio invested by type of instrument.

10. Written explanations for any variances to the Policy.

XVII. INTERNAL CONTROLS
Internal controls shall be established and maintained to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees and officers of the City.

Controls deemed most important include: segregation of duties, separation of transaction authority from accounting and record keeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, control over wire transfers, minimizing the number of authorized investment officials and documentation of transactions and strategies.

The City Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with the policies and procedures set forth in this document.

XVIII. PERFORMANCE STANDARDS
The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.

The duration of each portfolio will be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the investment objectives, constraints and risk tolerances for each portfolio. The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on a benchmark index of one to five- year government securities.

XIX. INVESTMENT POLICY ADOPTION
At the direction of the City Treasurer, the City's Investment Policy shall be reviewed annually, to reflect changes in the California state codes, general market Commented [AS2]: Best Practice. The City has multiple
portfolios (operating reserve, LAIF, liquidity, etc.). Each portfolio should have a benchmark that aligns to the objective of the account.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
11 conditions or to provide further clarification of the City's policy. The Policy shall be formally presented to the City Council for approval at a public meeting. Any change in the Policy shall also be approved at a public meeting by the City Council.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
12 GLOSSARY OF TERMS
Accrued Interest - Interest earned but not yet received.

Asset Backed Securities – Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

Banker’s Acceptance (BA) - A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Bond - A financial obligation for which an issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Broker - A broker brings buyers and sellers together for a commission. The broker does not take a position.

Certificate of Deposit - A deposit insured up to $100,000 by the FDIC at a set rate for a specified period of time.

Collateral - Securities, evidence of deposit or pledges to secure repayment of a loan.

Also refers to securities pledged by a bank to secure deposit of public funds.

Collateralized Mortgage Obligation (CMO) – classes of bonds that redistribute the cash flow of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

Commercial Paper – A short-term, unsecured promissory note issued by a large corporation.

Coupon - a) The annual rate of interest that a bond's issuer promises to pay the bold holder on the bond's face value. b) A certificate attached to a Bond evidencing interest due on the payment date.

Dealer - A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

Delivery Versus Payment - There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is the delivery of securities with an exchange of money for the securities. Delivery versus receipt is the delivery of securities with an exchange of a signed receipt for the securities.

Discount - The difference between the cost price of a security and its maturity when quoted at a lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

Discount Notes - Non-interest bearing money market instruments that are issued at a Discount and redeemed at maturity for full face value (e.g., U.S. treasury bills).

City of Corona Investment Policy
Adopted by City Council June 187, 20256
13 Diversified Management Companies – Mutual funds or money market mutual funds registered with the Securities and Exchange Commission pursuant California Government Code Section 53601(k).

Federal Reserve System - The central bank of the United States created by Congress and consisting of a seven member-board of governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks are members of the system.

IADB – Inter-American Development Bank, one of the three Washington, D.C. based Supranational issuers.

IBRD – International Bank for Reconstruction and Development, one of the three Washington, D.C. based Supranational issuers.

IFC – International Finance Corporation, one of the three Washington, D.C. based Supranational issuers.

Liquidity - A liquid asset is one that can be converted easily and rapidly to cash without a substantial loss of value.

Local Government Investment Pool - The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. (i.e. Local Agency Investment Fund or LAIF).

Market Value - The price at which a security is trading and could presumably be purchased or sold.

Maturity - The date upon which the principal or stated value of an investment becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

Medium Term Notes – All corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States.

Mortgage-Backed Pass-Through Securities - A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

New Issue - Term used when a security is originally "brought" to the market.

Offering Price - The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See "Asked" and "Bid".

City of Corona Investment Policy
Adopted by City Council June 187, 20256
14 Portfolio - Collection of securities held by an investor.

Primary Dealer - A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include SECregistered securities broker/dealers, banks and a few unregulated firms.

Rate of Return - The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Repurchase Agreement (REPO) - A transaction where the seller (bank) agrees to buy back from the buyer (City) the securities at an agreed upon price after a stated period of time. The buyer in effect lends the seller money for the period of the agreement, and the terms of the agreement are structured to compensate the buyer for this.

Reverse Repurchase Agreement – An agreement to sell securities in return for cash with an agreement to repurchase the securities at an agreed upon price.

Risk - Degree of uncertainty of return on an asset.

Safekeeping - A service to customers rendered by banks, for a fee, whereby securities and valuables of all types and descriptions are held in the bank vaults for protection.

Securities and Exchange Commission (SEC) – An agency created by Congress to protect investors in securities transactions by administering securities legislation.

Supranational – A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

Treasury Bills - U.S. treasury bills are short-term, direct obligations of the U.S. government issued with original maturities of 13 weeks and 52 weeks in book form only.

Treasury Notes - Intermediate-term Coupon bearing U.S. securities having maturities from one year to ten years.

Yield - The rate of annual income return on an investment, expressed as a percentage.

It is obtained by dividing the current dollar income by the current market price of the security.

Yield to Maturity - The rate of income return on an investment, minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of the purchase to the date of maturity of the bond.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
15 Zero Coupon Bond – A bond on which interest is not payable until maturity (or earlier redemption), but compounds periodically to accumulate to a stated maturity amount.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
16 Attachment A – Allowable Investments
ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality Bankers
Acceptances
Not to exceed
25% in any one
institution;
Not to exceed
20% of
portfolio
Not to
exceed
180
days
Eligible for
purchase by the
Federal
Reserve System
Not to exceed
30% in any one
institution;
May not
exceed 40% of
portfolio
Not to
exceed
180
days
Eligible for
purchase by
the Federal
Reserve
System
Bonds issued by the
City, including Bonds
payable solely out of
revenue from a
revenue producing
property owned,
controlled or
operated by the City
Not to exceed
25% of the
portfolio for
combined
municipal debt
“A” rating
category or
better ranking
by nationally
recognized
rating services
No limit Not to
exceed
5 years
Bonds, Notes or
other evidence of
indebtedness of any
local agency within
California, or state
warrants, or Treasury
Notes or Bonds of
California
Not to exceed
25% of the
portfolio for
combined
municipal debt
“A” rating
category or
better ranking
by nationally
recognized
rating services
No limit Not to
exceed
5 years
Bonds, Notes or
other evidence of
indebtedness in any
of the other 49
states, in addition to
California
Not to exceed
25% of the
portfolio for
combined
municipal debt
“A” rating
category or
better ranking
by nationally
recognized
rating services
No limit Not to
exceed
5 years
Commercial Paper Not to exceed
25% of
Portfolio;
Under a
provision
sunsetting on
January 1,
20262031, no
more than 40%
of the portfolio
may be
invested in
Commercial
Paper if the
Agency’s
investment
assets under
management
Not to
exceed
270
397
days
“A1/P1” rating
category for
issuer’s
Commercial
Paper; “A2/A” or
higher rating on
long-term debt;
US domiciled
corporations
with assets
greater than
$500 million
Not to exceed
25% of
Portfolio; Under
a provision
sunsetting on
January 1,
20262031, no
more than 40%
of the portfolio
may be
invested in
Commercial
Paper if the
Agency’s
investment
assets under
management
are greater
Not to
exceed
270
397
days
Prime quality
with the highest
letter/number
rating and “A”
or higher rating
on the issuer’s
long-term debt;
US domiciled
corporations
with assets
greater than
$500 million
Commented [AS3]: Senate Bill 595 extends this provision from 1/1/26 to 1/1/31, effective January 1, 2026.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
17 ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality are greater
than
$100,000,000.

May not
represent more
than 10% of
issuer’s
outstanding
paper
than
$100,000,000.

May not
represent more
than 10% of
issuer’s
outstanding
paper
Diversified
Management
Companies, as
defined by Section
53601(l) of the
Government Code**
Not to exceed
10% of
Portfolio
N/A Highest ranking
by not less than
2 of the 3
largest rating
services;
Have an SEC
registered
investment
advisor with
more than 5
years of
experience and
assets under
management
greater than
$500 million
Not to exceed
20% of
Portfolio**;
Not more than
10% of
Portfolio in one
fund
N/A Highest ranking
by not less than
2 of the 3
largest rating
services;
Have an SEC
registered
investment
advisor with
more than 5
years of
experience and
assets under
management
greater than
$500 million
Money Market
Mutual Funds
registered with the
Securities and
Exchange
Commission under
the Investment
Company Act of
1940**
Not to exceed
20% of
Portfolio
N/A Highest ranking
by not less than
2 of the 3
largest rating
services;
Have an SEC
registered
investment
advisor with
more than 5
years of
experience and
assets under
management
greater than
$500 million
Not to exceed
20% of
Portfolio**;
Not more than
20% of
Portfolio in one
fund
N/A Highest ranking
by not less than
2 of the 3
largest rating
services;
Have an SEC
registered
investment
advisor with
more than 5
years of
experience and
assets under
management
greater than
$500 million

City of Corona Investment Policy
Adopted by City Council June 187, 20256
18 ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality Federal agency or
United States
governmentsponsored enterprise
obligations,
participations, or
other instruments,
including those
issued by or fully
guaranteed as to
principal and interest
by federal agencies
or United States
governmentsponsored
enterprises.

No limit
The maximum
percent of
callable agency
securities in
the portfolio will
be 20%.

Not to
exceed
5 years
No limit Not to
exceed
5 years
Financial Futures
and Financial Option
Contracts
Not authorized Pursuant to
Section 53601
Not to
exceed
5 years
Pursuant to
Section 53601
Medium-Term Notes
issued by
Corporations
Not to exceed
30% of
Portfolio
Not to
exceed
5 years
Rated in a rating
category of “A”
or its equivalent
or better by at
least one
nationally
recognized
rating service
US domiciled
corporations or
US licensed
depository
Not to exceed
30% of
Portfolio
Not to
exceed
5 years
“A” or better
ranking by a
nationally
recognized
rating service
US domiciled
corporations or
US licensed
depository
Negotiable
Certificates of
Deposit issued by a
Nationally or State
Chartered Bank, a
Federal Association,
or a State Licensed
Branch of a Foreign
Owned Bank
(Insured by Federal
Government)
Not to exceed
20% of
Portfolio
May not
exceed
shareholder’s
equity of
issuing bank or
net worth of
issuing S & L
or Federal
Association
Not to
exceed
3 years
Bank or Savings
& Loans with
“A1/P1” rating
category or
better short term
debt rating and
“A2/A” or better
long-term debt
rating
Not to exceed
30% of
Portfolio
May not
exceed
shareholder’s
equity of
issuing bank or
net worth of
issuing S & L or
Federal
Association
Not to
exceed
5 years
Not specified
Non-Government
issued MortgageBacked PassThrough
Not to exceed
20% of
Portfolio
Not to
exceed
5 years
Securities are
rated in a rating
category of “AA”
or its equivalent
Not to exceed
20% of
investing
Not to
exceed
5 years
Securities are
rated in a rating
category of
“AA” or its

City of Corona Investment Policy
Adopted by City Council June 187, 20256
19 ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality Securities
Collateralized
Mortgage Obligations
and Asset–Backed
Securities
or better by a
NRSRO
agency’s
surplus
equivalent or
better by a
NRSRO
Repurchase
Agreements
Not to exceed
10% of
Portfolio
Not to
exceed
14 days
Collateral of
102% or greater
with securities
permitted in the
Policy
None Not to
exceed
1 year
Authorized
Collateral of
102% or
greater
Reverse Repurchase
Agreements
Not authorized None Not to
exceed
1 year
Extensive
conditions
listed in Section
53601 (i)
State of California
Local Agency
Investment Fund
(LAIF) or other Local
Government
Investment Pools
established by public
entities
Limit set by
LAIF
N/A Instruments
consistent with
State Code
No requirement N/A
Shares of Beneficial
Interest Issued by a
Joint Powers
Authority (JPA)
Invests in
securities
under 53601(a)
to (r), inclusive
N/A Invests in
securities
under 53601(a)
to (r), inclusive
N/A
Other Local
Government
Investment Pools
established by public
entities
Not to exceed
20% of
portfolio
N/A None N/A
Supranationals Not to exceed
30% of
portfolio; Not to
exceed 10%
per issuer
Not to
exceed
5 years
“AA” rating
category or
better ranking
by a nationally
recognized
rating service
Washington,
D.C. based
issuers: IADB,
IBRD, and IFC
Not to exceed
30% of portfolio
Not to
exceed
5 years
“AA” or better
ranking by a
nationally
recognized
rating service
Washington,
D.C. based
issuers: IADB,
IBRD, and IFC
United States
Treasury Notes,
Bonds, Bills, or other
certificates of
No limit Not to
exceed
5 years
No limit Not to
exceed
5 years
Commented [AS5]: CGC § 16429.1
Commented [AS6]: CGC § 53601(p)
Commented [AS7]: e.g., county pools under CGC § 27133

City of Corona Investment Policy
Adopted by City Council June 187, 20256
20 ALLOWABLE INVESTMENTS*

CITY OF CORONA LIMITS STATE CODE LIMITS
Instrument Diversification Term Quality Diversification Term Quality indebtedness backed
by the US
Government
Zero Coupon
Bonds***
Not authorized Not specified

* Unless otherwise specified in this policy, no more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US government, its agencies and instrumentalities, money market mutual funds and LAIF.
** Total amount invested in Mutual funds and Money Market Mutual Funds may be no more than 20% of the total portfolio.
***Under a provision sunsetting on January 1, 20262031, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.

Commented [AS8]: Senate Bill 595 extends this provision from 1/1/26 to 1/1/31, effective January 1, 2026.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
21 Attachment B – Sample Resolution Approving the Investment Policy RESOLUTION NO. 2026-077

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CORONA, CALIFORNIA, APPROVING THE CITY OF
CORONA’S INVESTMENT POLICY
WHEREAS, the City Council of the City of Corona has considered a document entitled “City of Corona’s Investment Policy” which outlines the policy enacted to provide guidelines for the prudent investment of inactive cash for all funds in the investment portfolio as well as guidelines for maximizing the efficiency of the cash management system for the City, the Corona Utility Authority, the Corona Housing Authority, and the Corona Public Financing Authority; and
WHEREAS, the “City of Corona’s Investment Policy” has also been administratively assigned City Administrative Policy No. 01200-602; and WHEREAS, the “City of Corona’s Investment Policy” provides for a creation of a Treasury Committee comprised of the City Treasurer, City Manager, Assistant City Manager and Finance Director; and
WHEREAS, at the direction of the City Treasurer, the City of Corona’s Investment Policy shall be reviewed annually to reflect changes in the California state codes, general market conditions or to provide further clarification of the City’s policy; and WHEREAS, the Finance Director has recommended to the City Council that the “City of Corona’s Investment Policy” be approved and established as the policy of the City, the Corona Utility Authority, the Corona Housing Authority, and the Corona Public Financing Authority and such other entities as may be established for cash management; and WHEREAS, the City Council has determined that the “City of Corona’s Investment Policy” be approved and established as recommended by the Finance Director.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA that the “City of Corona’s Investment Policy,” as presented to the City Council at the meeting in which this Resolution is adopted, is hereby approved and established as the policy of the City with respect to investments.

City of Corona Investment Policy
Adopted by City Council June 187, 20256
22 PASSED, APPROVED AND ADOPTED this 187th day of June, 20265. ________________________________
Mayor of the City of Corona, California
ATTEST:
______________________________________________
City Clerk of the City of Corona, California

City of Corona Investment Policy
Adopted by City Council June 187, 20256
23 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 178th day of June, 20265, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California this 178th day of June, 20256.

City Clerk of the City of Corona, California

(SEAL)

City of Corona Pension Stabilization Trust
Investment Policy
Effective June 17, 2026
CA\JR\07000.20108\10266092.5
I. Background
The City of Corona Pension Stabilization Trust (the “Trust”) holds a pool of funds contributed for the benefit of retired participants of the Trust.

II. Purpose
This Investment Policy is intended to assist the Trust’s fiduciaries by ensuring that they follow a prudent process and make investment-related decisions in a prudent manner. This Policy will be reviewed at least annually with the Investment Manager. In the course of their review, the Trustees will consider the following:
 change in plan participant demographics,
 amended plan provisions that may have a material effect on cash flow needs or the investment horizon,  any changes in asset allocation as recommended by the Investment Manager,  actuarial reports, if any, and
 other factors deemed relevant to the Trust that might require amending the Policy.

This Investment Policy may be modified from time to time as determined by the Trustees.

III. Investment Objectives
The investment objectives for the Trust are:
• Long-term Growth of Assets: The Trust’s objective is to grow over time and increase its purchasing power by earning a total return in excess of inflation over multi-year periods. The Investment Manager will seek to minimize risk through diversification.

The Investment Manager acknowledges that the Trustees have adopted a long-term earnings target rate of return of 7.50% used in setting the Plan’s benefit levels. The Investment Manager shall alert the Trustees at any time that such long-term earnings target rate is not reasonable over a market cycle. The Trustees will periodically review the reasonableness of this target rate with the Investment Manager(s). • Preservation of Capital: Another of the Trust’s objectives is to protect principal. Exposing the Trust to undue risk is to be avoided; however, the assumption of a moderate level of risk, commensurate with the growth objective, is warranted in pursuit of the investment goals. The Investment Manager and the Trustees recognize financial assets fluctuate in value and near-term results can diverge from long-term stated goals. The Investment Manager will seek to minimize risk through diversification. The Investment Manager will advise the Trustees from time to time on the reasonableness of their objectives in light of capital market conditions.
• Liquidity: To provide sufficient liquidity for periodic cash requirements.

These objectives are to be considered in conjunction with guidelines and restrictions set forth in this Policy.

IV. Roles and Responsibilities

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Investment Policy
July 03, 2024

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Those responsible for the management of the Trust’s investments include, but are not limited to the following. In addition to specific duties set forth throughout this Policy, the parties have the following general responsibilities.

The Board of Trustees
The Board of Trustees, as established by the Trust Agreement Governing the Pension Stabilization Trust effective January 19, 2022, and includes the City Treasurer, City Manager, Assistant City Manager, Finance Director, and Accounting Manager. The Trustees are responsible for:
 Hiring the Investment Manager
 Retaining other investment and legal counsel
 Establishing and maintaining the Investment Policy
 Monitoring the Investment Manager
 Evaluating the Trust’s investment performance
 Communicating with participants concerning investment results The Investment Managers
The Investment Managers are responsible for making reasonable investment decisions that are consistent with this Investment Policy, and the Investment Manager’s contract with the Trust, including the specific Investment Guidelines set forth in Section VI therein, or as requested in writing by the Trust’s fiduciaries.

The Investment Manager shall allocate Trust assets consistent with this Policy and the specific Investment Guidelines, and deliver reports as described in Section XII below.

V. Selection of Investment Managers
The Trustees shall select the Investment Manager to manage the Trust assets within the criteria set forth by this Investment Policy. The evaluation process shall include requesting a bid proposal from each candidate. Each Investment Manager must meet certain minimum criteria:
 It should be a bank, insurance company, or investment management company or an investment adviser registered under the Investment Advisers Act of 1940.
 It must assume, in writing, investment fiduciary status concerning investments of the Trust.  It must be operating in good standing with regulators and clients, with no material pending or concluded legal actions.
 It should provide detailed additional information on the history of the firm, its investment philosophy and approach, and its principals, locations, fee schedule, and other relevant information.  It must provide to the Trustees evidence of fidelity bonding and fiduciary liability insurance.  It must be willing to supply references subject to client confidentiality.  It must disclose all fees and costs and provide a detailed explanation of how fees are determined.

VI. Asset Class Restrictions and Investment Guidelines
The Investment Manager will seek to diversify the Trust across market sectors and individual securities to reduce portfolio risk and enhance returns. Excluding Treasury, agency obligations, exchange traded funds (ETFs), and mutual fund holdings, no individual security holding shall exceed 5% of the portfolio at time of purchase. Individually purchased fixed income securities must, at the time of purchase, have a credit rating of at least “Investment Grade” by one of more of the Nationally Recognized Statistical Rating Organization (NRSRO).

City of Corona Pension Stabilization Trust
Investment Policy
July 03, 2024

CA\JR\07000.20108\10266092.5
The Investment Manager will not invest in investment vehicles that cannot be 100% redeemed or sold within three (3) business days.

VII. Time Horizon
The recommended investment strategy is based upon an investment horizon of twenty years or more. The Trustees understands volatility of returns in the short-term and have agreed to view cyclical fluctuations with appropriate perspective. The Investment Manager will seek to minimize volatility through diversification.

VIII. Asset Allocation
The Investment Manager will be responsible for assisting the Trustees in establishing a prudent asset allocation for the Trust portfolio based on the particular goals, objectives, needs, risk tolerance and time horizon of the Trust portfolio. In doing so, the Trustees will seek to diversify the Trust portfolio within and across market sectors and individual securities to reduce portfolio risk and enhance return.

The Investment Manager shall allocate Trust assets consistent with the stated guidelines noted in Section VI above, the stated objectives set forth in Section III, and in accordance with the asset allocation set forth in this section. The allocation of Trust assets shall be maintained within the Acceptable Range and the Policy Mix, as noted below. Individual managers with stock/bond mandates will be responsible for rebalancing as necessary.

Should the Trustees hire stock-only and bond-only managers, the Trustees will act to shift assets between managers to rebalance, including the hiring of an investment adviser.

IX. Portfolio Rebalancing
Over time, each asset class may build up to the maximum point within the Acceptable Range. At least quarterly, the Investment Manager will rebalance the portfolio allocations to assure that asset allocation proportions remain within the Acceptable Range.

X. Permitted Securities & Market Sectors
Investments may be placed in the following:
 Fixed-income securities of U.S. and non-U.S. issuers including governments, quasi-government entities and corporations
 Money-market instruments
 Mortgage-backed securities
 Asset-backed securities
 Equity securities of U.S. and non-U.S. issuers
 Publicly traded Real Estate Investment Trusts (REITs)  Commingled funds that are consistent with the aforementioned investment objectives Policy Mix Acceptable Range
Cash & Fixed Income 10%-60%
Commodities (not direct investment) 0%-5%
Global Equities 40%-80%
Real Estate Investment Trusts (REITs) 0%-15%

City of Corona Pension Stabilization Trust
Investment Policy
July 03, 2024

CA\JR\07000.20108\10266092.5
 Mutual Funds that invest in securities permitted by this investment policy  Exchange Traded Funds (ETF) that invest in securities permitted by this investment policy XI. Prohibited Transactions
 Margin purchases
 Direct investment in real estate or direct real estate lending (the Investment Manager may buy commingled funds that invest in real estate or real estate lending activities)  Hedge funds
 Direct short sales of individual securities (the Investment Manager may buy commingled Funds that employ short sale techniques)
• Direct investment in commodities futures contracts (the Investment Manager may buy commingled funds that use futures contracts)
• Non-US dollar denominated investments (except the Investment Manager may buy commingled funds that purchase both US and non-US dollar denominated securities)  Investment vehicles that have limited liquidity, i.e., any investment that may not be 100% redeemed or sold for cash within three (3) business days.

XII. Investment Manager Reports
A. Performance Measurement
The Investment Manager will make time-weighted rate of return measurements at quarterly intervals for the portfolio as a whole and for each separate asset class.

The Investment Manager will report on the performance of the portfolio net of fees. Performance will be measured against a market-based “Benchmark” which reflects a comparable risk profile and asset allocation to the portfolio. The Investment Manager will report quarterly on the performance of the portfolio, net of fees, compared to the Benchmark.

The Trustees may request the Investment Manager to offer additional benchmarks (e.g., interpolated) in order to better gauge performance and gain a more complete understanding of investment performance.

The Investment Manager will report holdings monthly and performance quarterly, as well as upon request.

The reports should provide annualized performance information net of fees that includes the following time horizons: year to date, and one, three, five and ten (to the extent the manager has managed for those periods) year “look back” periods. Provided performance data is available from the prior investment manager, the Investment Manager shall provide annualized performance information for “look back” periods during which the prior investment manager managed the Trust investments for all or part of the “look back” period.

The Investment Manager is responsible for immediately reporting to the Trustees any material changes in investment strategy, portfolio structure, company ownership, financial position, and any unusual or extraordinary events of their firm. Examples of such events include, but are not limited to, portfolio manager or management team departure, significant changes in the firm’s overall client composition, violation of investment guidelines, material litigation against the manager firm, material changes in firm ownership structure, or announcements thereof.

City of Corona Pension Stabilization Trust
Investment Policy
July 03, 2024

CA\JR\07000.20108\10266092.5
B. Fee/Cost Disclosure
The Investment Manager is responsible to include in quarterly reports the following information regarding fees and costs:

1. Total actual dollar amount Investment Manager’s advisory fees (not including internal fund fees) for the prior rolling 12 months;

2. Total estimated annualized dollar amount of the internal fund fees;

3. The Investment Manager’s advisory fees (not including internal fund fees) as a percentage of total asset value, as of the end of the quarter reported;

4. The fund expense ratio for each investment vehicle, as a percentage of assets invested in the particular investment vehicle, as of the end of the quarter reported; and

5. The total internal fund fees, reported as a percentage of total asset value, as of the end of the quarter reported.

No less than annually, the Investment Manager shall also disclose any other costs associated with the investment and management of the Trust portfolio including, but not limited to, custodial fees for holding trust assets, annual operating expenses, such as expense ratios, wrap fees, mortality fees, etc., and other costs to administer the portfolio, etc. This report must include disclosure of remuneration from all sources whether the remuneration be direct, indirect, an offset, stipulations (order flow), compensation paid among related parties, and the like.

Any compensation that the Investment Manager expects to receive in connection with termination of the Investment Management services contract, including a description of how any pre-paid compensation will be calculated and refunded on termination of the contract, shall be disclosed in the Investment Management services contract and any revisions thereto.

Fees must be competitive in the applicable marketplace compared to similar investments; it is the responsibility of the Investment Manager to clearly articulate its own fees.

XIII. Investment Monitoring
The Treasury Committee, as defined in the City’s Investment Policy (Policy 01200.602), shall review the Investment reports and results on a quarterly basis. If the performance of the Investment Manager and the investment results are found to be satisfactory to the Trustees, no further action is required. The Trustees will evaluate the performance of Trust portfolio investments and Investment Managers from a long-term perspective and the time horizon noted in Section VII.

Nonetheless, where the Trustees or the Treasury Committee find the performance of a Investment Manager to be unsatisfactory, the Trustees or the Treasury Committee will promptly take action to attempt to remedy the deficiency.

XIV. Manager Termination
Generally, the services of an Investment Manager shall be terminated when the Trustees lose confidence in the Investment Manager. If there are significant changes in the Investment Manager’s investment style, the company ownership or management of the Investment Manager’s firm/organization, or performance of the Investment Manager, the Trustees may consider terminating the Investment Manager.

The Trustees shall communicate a termination decision to the Investment Manager in writing.

City of Corona Pension Stabilization Trust
Investment Policy
July 03, 2024

CA\JR\07000.20108\10266092.5
XV. Proxies
The Trustees have determined, in consultation with the Investment Manager, that the cost and burden of researching and voting proxies appurtenant to the type of investments held in the Trust portfolio generally outweighs the financial benefit to the Trust from such voting. Thus, the Board of Trustees hereby directs that the Trust will not vote on proxies appurtenant to shares of stock, mutual funds, or other investments held by the Trust, unless special circumstances arise (as communicated by the Investment Manager to the Trustees and the Trustees specifically direct the Investment Manager to handle proxy voting.

This City of Corona Pension Stabilization Trust Investment Policy has been reviewed by the Trustees and is adopted by the City Council at a meeting held on July 3, 2024, and shall be effective immediately.

City of Corona Pension Stabilization Trust
Investment Policy
July 03, 2024

CA\JR\07000.20108\10266092.5
Glossary of Investment Terms
BENCHMARK. A comparison security or portfolio for evaluating the Investment Manager’s performance.

COMMINGLED FUND. An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities issued by multiple issuers. Examples include mutual funds and exchange traded funds.

COMMODITY. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services.

When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade. Examples include crude oil and gold.

DIVERSIFICATION. Dividing investment funds among a variety of investments and sectors to avoid excessive exposure to any one source of risk.

EQUITY. A stock or any other security representing an ownership interest.

EXCHANGE TRADED FUND (ETF). A marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold.

INVESTMENT GRADE. A credit rating that indicates a bond has a relatively low risk of default. Bond rating firms, such as Standard & Poor's, use different designations consisting of upper- and lower-case letters 'A' and 'B' to identify a bond's credit quality rating. 'AAA' and 'AA' (high credit quality) and 'A' and 'BBB' (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations ('BB', 'B', 'CCC', etc.) are considered low credit quality, and are commonly referred to as "High Yield bonds."
INVESTMENT MANAGER. The person or organization that makes investments in portfolios of securities on behalf of the Trust, in accordance with the investment objectives and parameters defined by this Investment Policy. The Investment Manager shall be responsible for all activities associated with the management of the Trust portfolio, from buying and selling securities on a day-to-day basis to portfolio monitoring, settlement of transactions, performance measurement, and regulatory and client reporting.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

MARKET CYCLE. Every market has cycles and they recur periodically, though not on a predictable schedule. The length of each full cycle, and each phase within it, varies from several months to several years. The top of a cycle is called a peak and the bottom a trough.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that issues credit ratings that the U.S. Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes.

City of Corona Pension Stabilization Trust
Investment Policy
July 03, 2024

CA\JR\07000.20108\10266092.5
REAL ESTATE INVESTMENT TRUST (REIT). A security that invests in real estate directly, either through properties or mortgages.

City of Corona Pension Stabilization Trust
Investment Policy
Effective June 17, 2026
CA\JR\07000.20108\10266092.5
I. Background
The City of Corona Pension Stabilization Trust (the “Trust”) holds a pool of funds contributed for the benefit of retired participants of the Trust.

II. Purpose
This Investment Policy is intended to assist the Trust’s fiduciaries by ensuring that they follow a prudent process and make investment-related decisions in a prudent manner. This Policy will be reviewed at least annually with the Investment Manager. In the course of their review, the Trustees will consider the following:
 change in plan participant demographics,
 amended plan provisions that may have a material effect on cash flow needs or the investment horizon,  any changes in asset allocation as recommended by the Investment Manager,  actuarial reports, if any, and
 other factors deemed relevant to the Trust that might require amending the Policy.

This Investment Policy may be modified from time to time as determined by the Trustees.

III. Investment Objectives
The investment objectives for the Trust are:
 Long-term Growth of Assets: The Trust’s objective is to grow over time and increase its purchasing power by earning a total return in excess of inflation over multi-year periods. The Investment Manager will seek to minimize risk through diversification.

The Investment Manager acknowledges that the Trustees have adopted a long-term earnings target rate of return of 7.50% used in setting the Plan’s benefit levels. The Investment Manager shall alert the Trustees at any time that such long-term earnings target rate is not reasonable over a market cycle. The Trustees will periodically review the reasonableness of this target rate with the Investment Manager(s).  Preservation of Capital: Another of the Trust’s objectives is to protect principal. Exposing the Trust to undue risk is to be avoided; however, the assumption of a moderate level of risk, commensurate with the growth objective, is warranted in pursuit of the investment goals. The Investment Manager and the Trustees recognize financial assets fluctuate in value and near-term results can diverge from long-term stated goals. The Investment Manager will seek to minimize risk through diversification. The Investment Manager will advise the Trustees from time to time on the reasonableness of their objectives in light of capital market conditions.
 Liquidity: To provide sufficient liquidity for periodic cash requirements.

These objectives are to be considered in conjunction with guidelines and restrictions set forth in this Policy.

IV. Roles and Responsibilities

City of Corona Pension Stabilization Trust
Investment Policy
Julney 1703, 20264

CA\JR\07000.20108\10266092.5
Those responsible for the management of the Trust’s investments include, but are not limited to the following. In addition to specific duties set forth throughout this Policy, the parties have the following general responsibilities.

The Board of Trustees
The Board of Trustees, as established by the Trust Agreement Governing the Pension Stabilization Trust effective January 19, 2022, and includes the City Treasurer, City Manager, Assistant City Manager, Finance Director, and Accounting Manager. The Trustees are responsible for:
 Hiring the Investment Manager
 Retaining other investment and legal counsel
 Establishing and maintaining the Investment Policy
 Monitoring the Investment Manager
 Evaluating the Trust’s investment performance
 Communicating with participants concerning investment results The Investment Managers
The Investment Managers are responsible for making reasonable investment decisions that are consistent with this Investment Policy, and the Investment Manager’s contract with the Trust, including the specific Investment Guidelines set forth in Section VI therein, or as requested in writing by the Trust’s fiduciaries.

The Investment Manager shall allocate Trust assets consistent with this Policy and the specific Investment Guidelines, and deliver reports as described in Section XII below.

V. Selection of Investment Managers
The Trustees shall select the Investment Manager to manage the Trust assets within the criteria set forth by this Investment Policy. The evaluation process shall include requesting a bid proposal from each candidate. Each Investment Manager must meet certain minimum criteria:
 It should be a bank, insurance company, or investment management company or an investment adviser registered under the Investment Advisers Act of 1940.
 It must assume, in writing, investment fiduciary status concerning investments of the Trust.  It must be operating in good standing with regulators and clients, with no material pending or concluded legal actions.
 It should provide detailed additional information on the history of the firm, its investment philosophy and approach, and its principals, locations, fee schedule, and other relevant information.  It must provide to the Trustees evidence of fidelity bonding and fiduciary liability insurance.  It must be willing to supply references subject to client confidentiality.  It must disclose all fees and costs and provide a detailed explanation of how fees are determined.

VI. Asset Class Restrictions and Investment Guidelines
The Investment Manager will seek to diversify the Trust across market sectors and individual securities to reduce portfolio risk and enhance returns. Excluding Treasury, agency obligations, exchange traded funds (ETFs), and mutual fund holdings, no individual security holding shall exceed 5% of the portfolio at time of purchase. Individually purchased fixed income securities must, at the time of purchase, have a credit rating of at least “Investment Grade” by one of more of the Nationally Recognized Statistical Rating Organization (NRSRO).

City of Corona Pension Stabilization Trust
Investment Policy
Julney 1703, 20264

CA\JR\07000.20108\10266092.5
The Investment Manager will not invest in investment vehicles that cannot be 100% redeemed or sold within three (3) business days.

VII. Time Horizon
The recommended investment strategy is based upon an investment horizon of twenty years or more. The Trustees understands volatility of returns in the short-term and have agreed to view cyclical fluctuations with appropriate perspective. The Investment Manager will seek to minimize volatility through diversification.

VIII. Asset Allocation
The Investment Manager will be responsible for assisting the Trustees in establishing a prudent asset allocation for the Trust portfolio based on the particular goals, objectives, needs, risk tolerance and time horizon of the Trust portfolio. In doing so, the Trustees will seek to diversify the Trust portfolio within and across market sectors and individual securities to reduce portfolio risk and enhance return.

The Investment Manager shall allocate Trust assets consistent with the stated guidelines noted in Section VI above, the stated objectives set forth in Section III, and in accordance with the asset allocation set forth in this section. The allocation of Trust assets shall be maintained within the Acceptable Range and the Policy Mix, as noted below. Individual managers with stock/bond mandates will be responsible for rebalancing as necessary.

Should the Trustees hire stock-only and bond-only managers, the Trustees will act to shift assets between managers to rebalance, including the hiring of an investment adviser.

IX. Portfolio Rebalancing
Over time, each asset class may build up to the maximum point within the Acceptable Range. At least quarterly, the Investment Manager will rebalance the portfolio allocations to assure that asset allocation proportions remain within the Acceptable Range.

X. Permitted Securities & Market Sectors
Investments may be placed in the following:
 Fixed-income securities of U.S. and non-U.S. issuers including governments, quasi-government entities and corporations
 Money-market instruments
 Mortgage-backed securities
 Asset-backed securities
 Equity securities of U.S. and non-U.S. issuers
 Publicly traded Real Estate Investment Trusts (REITs)  Commingled funds that are consistent with the aforementioned investment objectives Policy Mix Acceptable Range
Cash & Fixed Income 10%-3060%
Commodities (not direct investment) 0%-5%
Global Equities 5040%-80%
Real Estate Investment Trusts (REITs) 0%-15%

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 Mutual Funds that invest in securities permitted by this investment policy  Exchange Traded Funds (ETF) that invest in securities permitted by this investment policy XI. Prohibited Transactions
 Margin purchases
 Direct investment in real estate or direct real estate lending (the Investment Manager may buy commingled funds that invest in real estate or real estate lending activities)  Hedge funds
 Direct short sales of individual securities (the Investment Manager may buy commingled Funds that employ short sale techniques)
 Direct investment in commodities futures contracts (the Investment Manager may buy commingled funds that use futures contracts)
 Non-US dollar denominated investments (except the Investment Manager may buy commingled funds that purchase both US and non-US dollar denominated securities)  Investment vehicles that have limited liquidity, i.e., any investment that may not be 100% redeemed or sold for cash within three (3) business days.

XII. Investment Manager Reports
A. Performance Measurement
The Investment Manager will make time-weighted rate of return measurements at quarterly intervals for the portfolio as a whole and for each separate asset class.

The Investment Manager will report on the performance of the portfolio net of fees. Performance will be measured against a market-based “Benchmark” which reflects a comparable risk profile and asset allocation to the portfolio comprised of 35% S&P 500 Index, 25% MSCI EAFE Index, and 40% Bank of America Merrill Lynch US Corporate, Government and Mortgage Index. The Investment Manager will report quarterly on the performance of the portfolio, net of fees, compared to the Benchmark.

The Trustees may request the Investment Manager to offer additional benchmarks (e.g., interpolated) in order to better gauge performance and gain a more complete understanding of investment performance.

The Investment Manager will report holdings monthly and performance quarterly, as well as upon request.

The reports should provide annualized performance information net of fees that includes the following time horizons: year to date, and one, three, five and ten (to the extent the manager has managed for those periods) year “look back” periods. Provided performance data is available from the prior investment manager, the Investment Manager shall provide annualized performance information for “look back” periods during which the prior investment manager managed the Trust investments for all or part of the “look back” period.

The Investment Manager is responsible for immediately reporting to the Trustees any material changes in investment strategy, portfolio structure, company ownership, financial position, and any unusual or extraordinary events of their firm. Examples of such events include, but are not limited to, portfolio manager or management team departure, significant changes in the firm’s overall client composition, violation of investment guidelines, material litigation against the manager firm, material changes in firm ownership structure, or announcements thereof.

Commented [AS2]: Best Practice. Similar to the operating reserve, recommending that the benchmark be included as part of the Management Directive instead of embedded in the investment policy.

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B. Fee/Cost Disclosure
The Investment Manager is responsible to include in quarterly reports the following information regarding fees and costs:

1. Total actual dollar amount Investment Manager’s advisory fees (not including internal fund fees) for the prior rolling 12 months;

2. Total estimated annualized dollar amount of the internal fund fees;

3. The Investment Manager’s advisory fees (not including internal fund fees) as a percentage of total asset value, as of the end of the quarter reported;

4. The fund expense ratio for each investment vehicle, as a percentage of assets invested in the particular investment vehicle, as of the end of the quarter reported; and

5. The total internal fund fees, reported as a percentage of total asset value, as of the end of the quarter reported.

No less than annually, the Investment Manager shall also disclose any other costs associated with the investment and management of the Trust portfolio including, but not limited to, custodial fees for holding trust assets, annual operating expenses, such as expense ratios, wrap fees, mortality fees, etc., and other costs to administer the portfolio, etc. This report must include disclosure of remuneration from all sources whether the remuneration be direct, indirect, an offset, stipulations (order flow), compensation paid among related parties, and the like.

Any compensation that the Investment Manager expects to receive in connection with termination of the Investment Management services contract, including a description of how any pre-paid compensation will be calculated and refunded on termination of the contract, shall be disclosed in the Investment Management services contract and any revisions thereto.

Fees must be competitive in the applicable marketplace compared to similar investments; it is the responsibility of the Investment Manager to clearly articulate its own fees.

XIII. Investment Monitoring
The Treasury Committee, as defined in the City’s Investment Policy (Policy 01200.602), shall review the Investment reports and results on a quarterly basis. If the performance of the Investment Manager and the investment results are found to be satisfactory to the Trustees, no further action is required. The Trustees will evaluate the performance of Trust portfolio investments and Investment Managers from a long-term perspective and the time horizon noted in Section VII.

Nonetheless, where the Trustees or the Treasury Committee find the performance of a Investment Manager to be unsatisfactory, the Trustees or the Treasury Committee will promptly take action to attempt to remedy the deficiency.

XIV. Manager Termination
Generally, the services of an Investment Manager shall be terminated when the Trustees lose confidence in the Investment Manager. If there are significant changes in the Investment Manager’s investment style, the company ownership or management of the Investment Manager’s firm/organization, or performance of the Investment Manager, the Trustees may consider terminating the Investment Manager.

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The Trustees shall communicate a termination decision to the Investment Manager in writing.

XV. Proxies
The Trustees have determined, in consultation with the Investment Manager, that the cost and burden of researching and voting proxies appurtenant to the type of investments held in the Trust portfolio generally outweighs the financial benefit to the Trust from such voting. Thus, the Board of Trustees hereby directs that the Trust will not vote on proxies appurtenant to shares of stock, mutual funds, or other investments held by the Trust, unless special circumstances arise (as communicated by the Investment Manager to the Trustees and the Trustees specifically direct the Investment Manager to handle proxy voting.

This City of Corona Pension Stabilization Trust Investment Policy has been reviewed by the Trustees and is adopted by the City Council at a meeting held on July 3, 2024, and shall be effective immediately.

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Glossary of Investment Terms
BENCHMARK. A comparison security or portfolio for evaluating the Investment Manager’s performance.

COMMINGLED FUND. An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities issued by multiple issuers. Examples include mutual funds and exchange traded funds.

COMMODITY. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services.

When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade. Examples include crude oil and gold.

DIVERSIFICATION. Dividing investment funds among a variety of investments and sectors to avoid excessive exposure to any one source of risk.

EQUITY. A stock or any other security representing an ownership interest.

EXCHANGE TRADED FUND (ETF). A marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold.

INVESTMENT GRADE. A credit rating that indicates a bond has a relatively low risk of default. Bond rating firms, such as Standard & Poor's, use different designations consisting of upper- and lower-case letters 'A' and 'B' to identify a bond's credit quality rating. 'AAA' and 'AA' (high credit quality) and 'A' and 'BBB' (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations ('BB', 'B', 'CCC', etc.) are considered low credit quality, and are commonly referred to as "High Yield bonds."
INVESTMENT MANAGER. The person or organization that makes investments in portfolios of securities on behalf of the Trust, in accordance with the investment objectives and parameters defined by this Investment Policy. The Investment Manager shall be responsible for all activities associated with the management of the Trust portfolio, from buying and selling securities on a day-to-day basis to portfolio monitoring, settlement of transactions, performance measurement, and regulatory and client reporting.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

MARKET CYCLE. Every market has cycles and they recur periodically, though not on a predictable schedule. The length of each full cycle, and each phase within it, varies from several months to several years. The top of a cycle is called a peak and the bottom a trough.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that issues credit ratings that the U.S. Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes.

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REAL ESTATE INVESTMENT TRUST (REIT). A security that invests in real estate directly, either through properties or mortgages.

DATE: 06/17/2026
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Public Works Department and Utilities Department
2026-233

REQUEST FOR CITY COUNCIL AND

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

RESOLUTION ADOPTING THE CITY OF CORONA 2026 POTABLE WATER MASTER

PLAN UPDATE
EXECUTIVE SUMMARY:

This staff report asks the City Council to adopt the 2026 Potable Water Master Plan update. This master plan assists the with the evaluation of its existing water system infrastructure, updates to the water system hydraulic model, and identification and implementation of appropriate capital improvements to ensure continuous provision of high quality water.

RECOMMENDED ACTION:

That the City Council adopt Resolution No 2026-079, adopting the City of Corona 2026 Potable Water Master Plan.

That the Corona Utility Authority review, ratify, and to the extent necessary, direct the City Council to take the above actions.

BACKGROUND & HISTORY:

The City of Corona (City)’s Utilities Department (Department) operates a domestic water system serving more than 40 square mile service area including Coronita, El Cerrito, and

the northern part of Temescal Valley within the City’s sphere of influence. The system consists of 6 pressure zones, approximately 668 miles of transmission and distribution pipelines, 18 storage reservoirs, 20 pressure booster pump stations, 17 active groundwater wells, 4 water treatment plants, and 9 inter-agency connections.

The Potable Water Master Plan (PWMP) is a detailed engineering report that analyzes the City’s water system by evaluating existing infrastructure, identifying water supply and demand characteristics, and updating and calibrating the water system hydraulic model to help shape findings, conclusions, and recommended improvements for up to a 20-year period necessary to maintain the City’s reliability in delivering potable water.

ANALYSIS:

The City’s previous PWMP was completed in 2005. Since then, several changes have taken place, including additional development in the water service area and construction of capital improvement projects to serve City residents. The City contracted with Michael Baker International to prepare the 2026 PWMP.

The 2026 PWMP is a dynamic document that serves as a roadmap and foundation in developing the City’s ten-year capital improvement program. This PWMP evaluates the current condition, capacity, and performance of the existing potable water system and identifies capital improvement projects necessary to meet both current and projected service demands. It also incorporates updated population and land use projections, assesses system deficiencies, and utilizes hydraulic modeling to analyze system performance under existing and future conditions.

The 2026 PWMP recommends improvements to ensure adequate water supply, storage, transmission, distribution, and pressure management throughout the service area. To facilitate the prioritization of the recommended capital improvements, five categories were defined:
 Improvements to alleviate any existing deficiencies identified by the hydraulic model.
 Improvements to address aging infrastructure.
 Improvements to provide a looped water system.
 Improvements in conjunction with current and future developments.  Improvements to ensure system resiliency.

The recommended capital improvements will be prioritized and implemented though the Capital Improvement Program and annual budget process. Adoption of the 2026 PWMP does not constitute approval or authorization of any specific capital improvement project.

In addition to identifying future capital improvements, the 2026 PWMP establishes updated development standards and design criteria to guide future new development and redevelopment projects. The recommended standards reflect current engineering practices, regulatory requirements, and operational objectives to provide consistent framework for the design, construction, and operation of the potable water system. These standards and criteria address matters such as water main sizing, system looping and

redundancy, pressure and velocity requirements, storage capacity, and fire flow standards.

Adoption of the 2026 PWMP will ensure that future development is planned and designed in a manner that is consistent with protection and support of the City’s long-term water system and infrastructure needs.

FINANCIAL IMPACT:

There is no financial impact associated with the approval of the recommended actions.

However, the 2026 PWMP will be used to develop future Capital Improvement Projects and funding needs.

ENVIRONMENTAL ANALYSIS:

The adoption and resolution of the Potable Water Master Plan is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This Resolution approves a master plan for the implementation of potable water projects and programs. This action does not approve or authorize any construction activity and will not result in any disturbance or effect on an environmental resource. There is no possibility that adopting the 2026 Potable Water Master Plan will have a significant effect on the environment. Therefore, no further environmental review is required.

PREPARED BY: ALAN ZHANG, CIP SUPERVISOR
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR & TOM MOODY,

UTILITIES DIRECTOR
ATTACHMENTS:

1. Exhibit 1 - Resolution No. 2026-079

2. Exhibit 2 - 2026 Potable Water Master Plan

3. Exhibit 3 - 2026 Potable Water Master Plan Appendices

RESOLUTION NO. 2026-079

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CORONA, CALIFORNIA, ADOPTING THE CITY OF
CORONA 2026 POTABLE WATER MASTER PLAN
WHEREAS, the City of Corona (“City”) is a municipal corporation duly created, established, and authorized to exercise its powers under and pursuant to the Constitution and the laws of the State of California; and
WHEREAS, the City previously adopted a Potable Water Master Plan (“PWMP”) in September 2005; and
WHEREAS, the City of Corona (“City”) has prepared and proposes to implement the 2026 PWMP which serves as a document to assist with planning and development of water supply, treatment, and distribution facilities to maintain the City’s level of service goals for potable water use; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF CORONA, CALIFORNIA, AS FOLLOWS:

SECTION 1. The City Council hereby adopts the 2026 Potable Water Master Plan attached hereto as Exhibit “A” and incorporated herein by reference.

SECTION 2. The City Council hereby finds that adoption of the PWMP is consistent with the 2021-2026 Strategic Plan, because it furthers the objectives and strategies of Goal 3: Sound Infrastructure.

SECTION 3. This Resolution is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This Resolution approves a master plan for the implementation of potable water projects and programs. This action does not approve or authorize any construction activity and will not result in any disturbance or effect on an environmental resource. There is no possibility that adopting the 2026 Potable Water Master Plan will have a significant effect on the environment. Therefore, no further environmental review is required.

2 PASSED, ADOPTED AND ADOPTED this 17th day of June 2026. _________________________________
Mayor of the City of Corona, California
ATTEST:
____________________________________
City Clerk of the City of Corona, California

3 CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Resolution was regularly passed and adopted by the City Council of the City of Corona, California, at a regular meeting thereof held on the 17th day of June 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 17th day of June 2026. ___________________________________
City Clerk of the City of Corona, California
(SEAL)

4 EXHIBIT “A”
2026 POTABLE WATER MASTER PLAN
[ON FILE IN THE CITY CLERK’S OFFICE FOR REVIEW]

POTABLE WATER MASTER PLAN
March 2026
FINAL
Prepared for
City of Corona
400 South Vicentia Avenue
Corona, CA 92882
Prepared by
Michael Baker International
40180 County Center Drive, Suite 200
Temecula, CA 92591
Date Signed: 3/7/2026
April 2026

City of Corona
Potable Water Master Plan

KEY TO ABBREVIATIONS
AC Asbestos Cement
ADD Average Day Demand
AF Acre-Foot
AFY Acre-Foot per Year
AMI Advanced Metering Infrastructure
AMSL Above Mean Sea Level
AWWA American Water Works Association
BPS Booster Pump Station
CAS Cast Iron Pipe
CEM Cement Pipe
cfs Cubic feet per second
CIP Capital Improvement Plan
CIPP Cast-in Place Pipe
CMLC Cement Mortar Lined and Coated Steel Pipe
CML-TW Cement Mortar Lined and Tape Wrapped Steel Pipe
CoF Consequence of Failure
COP Copper Pipe
CCR Consumer Confidence Report
DBP Disinfection Byproducts
DBPR Disinfectants and Disinfection Byproducts Rule
DDW Division of Drinking Water
DIP Ductile Iron Pipe
DPR Direct Potable Reuse
DU Dwelling Unit
DWSAP Drinking Water Source Assessment and Protection
EPA Environmental Protection Agency
EPS Extended Period Simulation
FCV Flow Control Valve
fps feet per second

City of Corona
Potable Water Master Plan

GAC Granular Activated Carbon
GACWTP Granular Activated Carbon Water Treatment Plant
GIS Geographic Information System
GPM Gallon per Minute
GSA Groundwater Sustainability Agency
GSP Groundwater Sustainability Plan
HGCWD Home Gardens County Water District
HGL Hydraulic Grade Line
HWL High Water Level
IPR Indirect Potable Reuse
LAFCO Local Agency Formation Commission
LoF Likelihood of Failure
MCL Maximum Contaminant Level
MG Million Gallons
MGD Million gallons per day
MDD Maximum Day Demand
MWD Metropolitan Water District
NTU Nephelometric Turbidity Units
PHD Peak Hour Demand
PRS Pressure Reducing Station
PVC Polyvinyl Chloride Pipe
RO Reverse Osmosis
ROW Right-of-Way
RWMP Reclaimed Water Master Plan
SCADA Supervisory Control and Data Acquisition
SDWA Safe Drinking Water Act
SOI Sphere of Influence
SWRCB State Water Resources Control Board
TDS Total Dissolved Solids
TOU Time-of-Use

City of Corona
Potable Water Master Plan

TTHM Total Trihalomethanes
UCMR Unregulated Contaminant Monitoring Rule
U.S. EPA United States Environmental Protection Agency
UWMP Urban Water Master Plan
WRF Water Reclamation Facility
WTP Water Treatment Plant
WMWD Western Municipal Water District
WRCRWA Western Riverside County Regional Wastewater Authority

City of Corona
Potable Water Master Plan

TABLE OF CONTENTS
SECTION 1 - EXECUTIVE SUMMARY................................................................................... 1-1

1.1. Introduction.......................................................................................................................1-1

1.1.1. Purpose of Potable Water Master Plan ..............................................................................1-1

1.1.2. Master Plan Organization ...................................................................................................1-1

1.1.3. Planning Period and Master Plan Approach .......................................................................1-1

1.2. Existing Infrastructure (Section 2) .......................................................................................1-2

1.2.1. Sphere of Influence.............................................................................................................1-2

1.2.2. Pressure Zones....................................................................................................................1-2

1.2.3. Infrastructure Facilities.......................................................................................................1-2

1.2.3.1. Water Supply and Treatment...................................................................................................1-2

1.2.3.2. Storage and Distribution System Infrastructure ......................................................................1-3

1.2.3.3. Water System Control and Safety and Safety Components.....................................................1-3

1.2.4. Infrastructure Condition and Reliability Analysis................................................................1-4

1.3. Water Supply (Section 3) ....................................................................................................1-4

1.3.1. Supply Sources and Historic Production.............................................................................1-4

1.3.2. Groundwater.......................................................................................................................1-5

1.3.2.1. Wells and Production Capacity ................................................................................................1-5

1.3.3. Imported .............................................................................................................................1-6

1.3.4. Reclaimed Water – Supply, Demand, and Recharge ..........................................................1-6

1.4. Water Use (Section 4).........................................................................................................1-6

1.4.1. Water Use ...........................................................................................................................1-6

1.4.1.1. Representative Demand Year and Historical Trends................................................................1-6

1.4.1.2. Historical Demand Trends........................................................................................................1-6

1.4.2. Water Demand....................................................................................................................1-7

1.4.2.1. Water Demand By Land Use ....................................................................................................1-7

1.4.2.2. Water Demand by Pressure Zone ............................................................................................1-7

1.4.2.3. Seasonal Variability ..................................................................................................................1-8

1.4.3. System Losses .....................................................................................................................1-8

1.4.4. Reclaimed Water Use Opportunities..................................................................................1-8

1.4.5. Existing System Demands and Peaking Factors..................................................................1-8

1.4.6. Area-Based Demand Factors and Buildout Projections......................................................1-9

1.4.7. 2040 Demand Projects........................................................................................................1-9

1.5. Service Criteria (Section 5)..................................................................................................1-9

1.5.1. Design and Performance Standards..................................................................................1-10

1.5.2. Design Standards by Component......................................................................................1-10

City of Corona
Potable Water Master Plan

1.5.2.1. Well Design and Source Protection........................................................................................1-10

1.5.2.2. Storage and Emergency Supply..............................................................................................1-10

1.5.2.3. Fire Protection and Pressure Management ...........................................................................1-10

1.5.2.4. Planning and Asset Management...........................................................................................1-10

1.5.3. Service Life Planning Criteria ............................................................................................1-11

1.5.4. Summary of Design Criteria ..............................................................................................1-12

1.6. Hydraulic Model Development and Existing System Analysis (Section 6) ............................1-13

1.6.1. Hydraulic Model Development.........................................................................................1-13

1.6.1.1. Hydraulic Model History and Formulation.............................................................................1-14

1.6.1.2. Hydraulic Model Calibration ..................................................................................................1-14

1.6.2. Existing Potable Water System Analysis...........................................................................1-15

1.6.2.1. System Pressure Analysis.......................................................................................................1-15

1.6.2.2. Pipeline Capacity Analysis......................................................................................................1-15

1.6.2.3. Booster Pumping Analysis......................................................................................................1-15

1.6.2.4. Fire Flow Analysis...................................................................................................................1-15

1.6.3. Findings from the Existing System Hydraulic Analysis......................................................1-15

1.6.3.1. Existing System Hydraulic Deficiencies ..................................................................................1-16

1.7. Future System Modeling and Analysis (Section 7)..............................................................1-17

1.7.1. Future Hydraulic Model ....................................................................................................1-17

1.7.2. Future Potable Water System Analysis.............................................................................1-17

1.7.2.1. Water Supply Analysis............................................................................................................1-17

1.7.2.2. Storage Analysis .....................................................................................................................1-18

1.7.2.3. Booster Pumping Analysis......................................................................................................1-18

1.7.2.4. Pipeline Capacity Analysis......................................................................................................1-18

1.7.3. Findings from the Future System Hydraulic Analysis........................................................1-18

1.7.3.1. Future System (Buildout) Hydraulic Deficiencies...................................................................1-19

1.8. Water Quality (Section 8)..................................................................................................1-19

1.8.1. Key Water Quality Data ....................................................................................................1-20

1.8.2. Unregulated and Emerging Contaminants .......................................................................1-21

1.8.3. Disinfection and Byproducts.............................................................................................1-21

1.8.4. Operational Practices........................................................................................................1-21

1.8.5. Groundwater and Imported Water...................................................................................1-21

1.8.6. Conclusions.......................................................................................................................1-22

1.9. Master Plan Improvements (Section 9) .............................................................................1-22

1.9.1. Risk-Based Framework......................................................................................................1-22

1.9.2. Basis of Planning Level Cost Opinions...............................................................................1-23

1.9.3. Recommended Improvements.........................................................................................1-23

1.9.4. Next Steps.........................................................................................................................1-24

City of Corona
Potable Water Master Plan

LIST OF TABLES
Table 1.1 – Existing Demand and Peaking Factors.....................................................................................1-9 Table 1.2 – Future Water Use and Demands (MGD) .................................................................................1-9 Table 1.3 – Summary of Design Criteria...................................................................................................1-12 Table 1.4 – Existing System Hydraulically Deficient Pipes.......................................................................1-16 Table 1.5 – 2040 Water Supply Analysis..................................................................................................1-18 Table 1.6 – Future (Buildout 2040) Hydraulically Deficient Pipes ...........................................................1-19 Table 1.7 – Summary of Elements Used to Estimate Recommended Improvement Costs.....................1-23 Table 1.8 – Recommended Improvements..............................................................................................1-24

City of Corona
Potable Water Master Plan

TABLE OF CONTENTS
SECTION 2 - EXISTING INFRASTRUCTURE........................................................................ 2-1

2.1. General Description............................................................................................................2-1

2.1.1. Sphere of Influence.............................................................................................................2-1

2.2. Pressure Zones...................................................................................................................2-1

2.2.1. Zone 725 (Zone 1) ...............................................................................................................2-4

2.2.2. Zone 905 and Subzones (Zone 2)........................................................................................2-6

2.2.2.1. Subzone 780 .............................................................................................................................2-8

2.2.2.2. Subzone 820 .............................................................................................................................2-9

2.2.3. Zone 1020 and Subzones..................................................................................................2-11

2.2.3.1. Subzone 1130 (Aquino)..........................................................................................................2-12

2.2.3.2. Subzone 1235 (Morita)...........................................................................................................2-13

2.2.4. Zone 1060 and Subzones (Zone 3)....................................................................................2-15

2.2.4.1. Subzone 920 (Home Gardens)................................................................................................2-18

2.2.4.2. Subzone 960 (Hummingbird) .................................................................................................2-19

2.2.4.3. Subzone 1315 (Kraft Ranch)...................................................................................................2-20

2.2.5. Zone 1136 (Glen Ivy).........................................................................................................2-22

2.2.6. Zone 1220 and Subzones (Zone 4)....................................................................................2-23

2.2.6.1. Subzone 1045 (Arcadia) .........................................................................................................2-25

2.2.6.2. Subzone 1060 (Freedom) .......................................................................................................2-26

2.2.6.3. Subzone 1310 (Mabey Canyon)..............................................................................................2-27

2.2.7. Zone 1320 .........................................................................................................................2-30

2.2.8. Zone 1380 and Subzones (Zone 5)....................................................................................2-30

2.2.8.1. Subzone 1250 Sonrisa ............................................................................................................2-32

2.2.8.2. Subzone 1220 (Montana Ranch)............................................................................................2-33

2.2.9. Zone 1640 and Subzones (Zone 6)....................................................................................2-35

2.2.9.1. Subzone 1480 Orange Heights...............................................................................................2-36

2.3. Water Supply And Treatment Facilities .............................................................................2-38

2.3.1. Local Groundwater Supply................................................................................................2-38

2.3.1.1. Temescal Basin Wells .............................................................................................................2-38

2.3.1.2. Bedford-Coldwater Basin Wells .............................................................................................2-41

2.3.2. Imported Water Supply, System and Emergency Interconnections, and Emergency Interconnections.........................................................................................................................2-43

2.3.2.1. Imported Water Turnouts......................................................................................................2-43

2.3.2.2. Interconnections ....................................................................................................................2-46

2.3.2.3. Emergency Interconnections .................................................................................................2-48

2.3.3. Water Treatment Plants ...................................................................................................2-48

2.3.3.1. Lester Water Treatment Plant................................................................................................2-49

City of Corona
Potable Water Master Plan

2.3.3.2. Sierra Del Oro Water Treatment Plant...................................................................................2-50

2.3.3.3. Green River Treatment Plant (Inactive) .................................................................................2-51

2.3.3.4. Temescal Desalter Treatment Plant.......................................................................................2-51

2.3.3.5. Granular Activated Carbon Water Treatment Plant...............................................................2-53

2.4. Storage and Distribution Infrastructure.............................................................................2-53

2.4.1. Tanks.................................................................................................................................2-53

2.4.2. Booster Pump Stations .....................................................................................................2-57

2.4.3. Pressure Reducing Stations...............................................................................................2-63

2.4.4. Flow Control Valve............................................................................................................2-68

2.4.5. Water Transmission and Distribution Pipelines................................................................2-70

2.4.5.1. Transmission Pipelines...........................................................................................................2-72

2.4.5.2. Distribution Pipelines.............................................................................................................2-72

2.5. Water System Control and Safety Components .................................................................2-73

2.5.1. Blow-Off Valves.................................................................................................................2-73

2.5.2. Air Relief Valves & Combination Valves............................................................................2-73

2.5.3. Detector Check & Backflow Control Valves......................................................................2-73

2.5.4. Water System Valves........................................................................................................2-74

2.5.4.1. Main Valves............................................................................................................................2-74

2.5.4.2. Zone Valves ............................................................................................................................2-76

2.5.4.3. Fire Hydrant Valves ................................................................................................................2-76

2.5.5. Fire Hydrant Connections.................................................................................................2-76

2.6. Customer Services............................................................................................................2-77

2.6.1. Water Meters....................................................................................................................2-77

2.6.2. Service Valves ...................................................................................................................2-77

2.7. Infrastructure Condition And Reliability Analysis...............................................................2-78

2.7.1. Condition and Reliability Analysis.....................................................................................2-78

2.7.1.1. Asset Age Assessment............................................................................................................2-78

2.7.2. Groundwater Production Well Analysis............................................................................2-78

2.7.3. Water Treatment Plant Analysis.......................................................................................2-81

2.7.4. Storage Tank Analysis .......................................................................................................2-82

2.7.5. Pump Station Analysis.......................................................................................................2-83

2.7.6. Pressure Reducing Station Analysis..................................................................................2-84

2.7.7. Pipeline Analysis ...............................................................................................................2-85

2.7.7.1. Coronita (Unincorporated) Pipeline Analysis.........................................................................2-87

2.7.7.2. Temescal Valley Pipeline Analysis..........................................................................................2-91

2.7.7.3. El Cerrito (Unincorporated) Pipeline Analysis........................................................................2-95

2.7.7.4. Downtown Pipeline Analysis..................................................................................................2-99

City of Corona
Potable Water Master Plan

LIST OF TABLES
Table 2.1 – Temescal Basin Well Inventory and Specifications...............................................................2-39 Table 2.2 – Temescal Basin Wells Treatment and Storage......................................................................2-41 Table 2.3 – Bedford-Coldwater Basin Wells.............................................................................................2-41 Table 2.4 – Imported Water Turnouts.....................................................................................................2-43 Table 2.5 – Interconnections with Neighboring Agencies.......................................................................2-46 Table 2.6 – Emergency Interconnections.................................................................................................2-48 Table 2.7 – Water Treatment Facilities....................................................................................................2-49 Table 2.8 – Tanks......................................................................................................................................2-54 Table 2.9 – Booster Pump Stations..........................................................................................................2-58 Table 2.10 – Pressure Reducing Stations.................................................................................................2-64 Table 2.11 – Flow Control Valves.............................................................................................................2-68 Table 2.12 – 2021 City of Corona Water Pipelines Inventory..................................................................2-70 Table 2.13 – 2021 Transmission Pipeline Inventory ................................................................................2-72 Table 2.14 – 2021 Distribution Pipelines Inventory.................................................................................2-72 Table 2.15 – 2021 Blow-Off Valve Inventory ...........................................................................................2-73 Table 2.16 – 2021 Air Relief & Combination Valve Inventory .................................................................2-73 Table 2.17 – 2021 Detector Check & Backflow Control Valve Inventory.................................................2-74 Table 2.18 – 2021 Main Valves Inventory................................................................................................2-75 Table 2.19 – 2021 Zone Valves Inventory................................................................................................2-76 Table 2.20 – 2021 Fire Hydrant Connection Inventory............................................................................2-77 Table 2.21 – 2021 Water Meter Inventory ..............................................................................................2-77 Table 2.22 – Pipeline Service Life.............................................................................................................2-86

LIST OF FIGURES
Figure 2.1 – System Hydraulic Profile ........................................................................................................2-2 Figure 2.2 – System Pressure Zone Map....................................................................................................2-3 Figure 2.3 – System Pressure Zone 725 .....................................................................................................2-5 Figure 2.4 – System Pressure Zone 905 .....................................................................................................2-7 Figure 2.5 – System Pressure Zone 780 .....................................................................................................2-9 Figure 2.6 – System Pressure Zone 820 ...................................................................................................2-10 Figure 2.7 – System Pressure Zone 1020 .................................................................................................2-12 Figure 2.8 – System Pressure Zone 1130 .................................................................................................2-13 Figure 2.9 – System Pressure Zone 1235 .................................................................................................2-15 Figure 2.10 – System Pressure Zone 1060 ...............................................................................................2-17 Figure 2.11 – System Pressure Zone 920 .................................................................................................2-19 Figure 2.12 – System Pressure Zone 960 .................................................................................................2-20 Figure 2.13 – System Pressure Zone 1315 ...............................................................................................2-21 Figure 2.14 – System Pressure Zone 1136 ...............................................................................................2-23 Figure 2.15 – System Pressure Zone 1220 ...............................................................................................2-25

City of Corona
Potable Water Master Plan

Figure 2.16 – System Pressure Zone 1045 ...............................................................................................2-26 Figure 2.17 – System Pressure Zone 1060 (Freedom) .............................................................................2-27 Figure 2.18 – System Pressure Zone 1310 ...............................................................................................2-29 Figure 2.19 – System Pressure Zone 1380 ...............................................................................................2-31 Figure 2.20 – System Pressure Zone 1250 ...............................................................................................2-33 Figure 2.21 – System Pressure Zone 1220 (Montana Ranch)..................................................................2-34 Figure 2.22 – System Pressure Zone 1640 ...............................................................................................2-36 Figure 2.23 – System Pressure Zone 1480 ...............................................................................................2-37 Figure 2.24 – Map of Temescal Basin Wells.............................................................................................2-40 Figure 2.25 – Map of Bedford-Coldwater Basin Wells.............................................................................2-42 Figure 2.26 – Map of Imported Water Service Connections ...................................................................2-45 Figure 2.27 – Interconnection with Neighboring Agencies Map .............................................................2-47 Figure 2.28 – Map of Treatment Plants...................................................................................................2-52 Figure 2.29 – Map of Tanks......................................................................................................................2-55 Figure 2.30 – Map of Blending Stations...................................................................................................2-56 Figure 2.31 – Map of Booster Pump Stations..........................................................................................2-62 Figure 2.32 – Map of Pressure-Reducing Stations...................................................................................2-67 Figure 2.33 – Map of Flow Control Stations ............................................................................................2-69 Figure 2.34 – Transmission/Distribution Pipelines..................................................................................2-71 Figure 2.35 – Age of Groundwater Production Wells in 2026 and Casing Material ................................2-80 Figure 2.36 – Age of Water Treatment Plants in 2026 ............................................................................2-81 Figure 2.37 – Age of Storage Tanks in 2026.............................................................................................2-82 Figure 2.38 – Age of Pump Stations in 2026............................................................................................2-84 Figure 2.39 – Age of Pressure Reducing Stations in 2026........................................................................2-85 Figure 2.40 – Remaining Pipe Service Life as of 2026..............................................................................2-86 Figure 2.41 – Coronita Pipeline Diameters..............................................................................................2-88 Figure 2.42 – Coronita Pipeline Materials................................................................................................2-89 Figure 2.43 – Coronita Pipeline Age.........................................................................................................2-90 Figure 2.44 – Temescal Valley Pipeline Diameters..................................................................................2-92 Figure 2.45 – Temescal Valley Pipeline Materials....................................................................................2-93 Figure 2.46 – Temescal Valley Pipeline Age.............................................................................................2-94 Figure 2.47 – El Cerrito Pipeline Diameters.............................................................................................2-96 Figure 2.48 – El Cerrito Pipeline Materials ..............................................................................................2-97 Figure 2.49 – El Cerrito Pipeline Age........................................................................................................2-98 Figure 2.50 – Downtown Pipeline Diameter..........................................................................................2-100 Figure 2.51 – Downtown Pipeline Materials..........................................................................................2-101 Figure 2.52 – Downtown Pipeline Age...................................................................................................2-102

City of Corona
Potable Water Master Plan

TABLE OF CONTENTS
SECTION 3 - WATER SUPPLY.............................................................................................. 3-1

3.1. General Description............................................................................................................3-1

3.2. Monthly Production ...........................................................................................................3-5

3.3. Groundwater......................................................................................................................3-6

3.3.1. Basins..................................................................................................................................3-6

3.3.1.1. Temescal Basin ........................................................................................................................ 3-6

3.3.1.2. Bedford-Coldwater Basin ........................................................................................................ 3-8

3.3.2. Wells .................................................................................................................................3-10

3.3.2.1. Drinking Water Source Assessment and Protection (DWSAP) Program ............................... 3-10

3.3.2.2. Temescal Basin Wells ............................................................................................................ 3-10

3.3.2.3. Bedford-Coldwater Basin Wells ............................................................................................ 3-10

3.3.2.4. Well Production Analysis....................................................................................................... 3-10

3.4. Imported Water ...............................................................................................................3-12

3.4.1. Untreated Imported Water...............................................................................................3-12

3.4.2. Treated Imported Water...................................................................................................3-12

3.5. Water Treatment Facilities ...............................................................................................3-15

3.6. Reclaimed Water..............................................................................................................3-15

3.6.1. Existing Reclaimed Water System.....................................................................................3-15

3.6.1.1. Reclaimed Water Supply ....................................................................................................... 3-16

3.6.1.2. Reclaimed Water Demand .................................................................................................... 3-16

3.7. Water Conservation .........................................................................................................3-17

LIST OF TABLES
Table 3.1 – Sources of Supply (MGD), 2016 - 2019 ...................................................................................3-2 Table 3.2 – Sources of Supply (MGD), 2020 - 2024 ...................................................................................3-3 Table 3.3 – Temescal Basin Sustainability..................................................................................................3-7 Table 3.4 – Bedford-Coldwater Basin Sustainability..................................................................................3-9 Table 3.5 – Well Production Capacity (GPM)...........................................................................................3-11 Table 3.6 – Imported Water Capacity and Historical Use (Acre-ft/Yr.), 2016 - 2019 ..............................3-14 Table 3.7 – Imported Water Capacity and Historical Use (Acre-ft/Yr.), 2020 - 2024 ..............................3-14 Table 3.8 – Reclaimed Water Supply (from 2018 Reclaimed Water Master Plan)..................................3-16 Table 3.9 – Reclaimed Water Demand ....................................................................................................3-16

City of Corona
Potable Water Master Plan

LIST OF FIGURES
Figure 3.1 – Hydraulic Schematic of Supply Sources.................................................................................3-4 Figure 3.2 – City of Corona's Monthly Production from 2016 - 2019........................................................3-5 Figure 3.3 – City of Corona's Monthly Production from 2020 - 2024........................................................3-6 Figure 3.4 – Map of Imported Water Supply Locations...........................................................................3-13 Figure 3.5 – Average Imported Water by Supply Source (2016 - 2019 Average)....................................3-15 Figure 3.6– Average Imported Water by Supply Source (2020 - 2024 Average).....................................3-15

City of Corona
Potable Water Master Plan

TABLE OF CONTENTS
SECTION 4 - WATER USE........................................................................................................ 1

4.1. General Description...............................................................................................................1 Selection of Representative Demand Year............................................................................ 1 Historical Water Use .............................................................................................................. 1

4.2. Correlation between Meters, Parcels, and Land Use ...............................................................3 Methodology.......................................................................................................................... 3 Database Attributes............................................................................................................... 4 Protocol for Future Meters.................................................................................................... 4

4.3. Water Demands ....................................................................................................................4 Demands from Hydrant Meters............................................................................................. 5 Demand by Land Use ............................................................................................................. 5 Demand by Pressure Zone ..................................................................................................... 9

4.4. Water Production................................................................................................................11

4.5. Reconciliation of Deliveries and Production .........................................................................14 Methodology........................................................................................................................ 14

4.6. Reclaimed Water Use ..........................................................................................................15

4.7. Demand Variability..............................................................................................................16 Reference Year..................................................................................................................... 16 Existing System Demands and Peaking Factors................................................................... 16

4.7.2.1. Average Day Demand................................................................................................................17

4.7.2.2. Maximum Day Demand.............................................................................................................17

4.7.2.3. Peak Hour Demand ...................................................................................................................17

4.8. Existing Area-Based Demand Factors ...................................................................................18 Methodology........................................................................................................................ 18 Area-Based Demand Factors................................................................................................ 18

4.9. Demand Projection..............................................................................................................20 Methodology........................................................................................................................ 20 Demand Associated with Infill and Densification ................................................................ 20 Demand Projection .............................................................................................................. 20 Future Demands................................................................................................................... 22