Agenda Report
Fullerton City Council
MEETING DATE: SEPTEMBER 15, 2026
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: steven avalos, INTERIM DIRECTOR OF ADMINISTRATIVE SERVICES PREPARED BY: STEVEN AVALOS, INTERIM DIRECTOR OF ADMINISTRATIVE SERVICES
NOAH HYUN, ADMINISTRATIVE ANALYST
SUBJECT: TREASURER’S REPORT FOR QUARTER ENDED JUNE 30, 2026
SUMMARY
Staff presents the Treasurer’s Report for Fiscal Year (FY) 2025-26 Fourth Quarter (Q4) ended June 30, 2026.
PROPOSED MOTION
Receive and file.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
City operating portfolio investments totaled $219.48 million for the quarter ending June 30, 2026. The market yield equaled 4.30% on June 30, 2026 and accrued interest income for the quarter totaled $826,793.04. The City of Fullerton bases investment practices and policies on state law, prudent money management and the Statement of Investment Policy, updated and approved with the most recent Q3 Treasurer’s Report. Staff will use the information in this report to ensure continued idle funds and cash investment oversight.
DISCUSSION
City financial and treasury policies direct the City Treasurer / Director of Administrative Services to provide quarterly treasurer’s reports to City Council and the Investment Advisory Committee (IAC) which review temporary idle funds and cash investment across all City funds. The contracted City investment manager, Chandler Asset Management, prepares quarterly investment reports with City Treasurer oversight.
The IAC cancelled the August 20, 2026 meeting and did not review the FY 2025-26 Q4 Investment Report. Staff subsequently emailed the Q4 Reports to IAC committee members for information only. Staff presents the report to City Council for review.
The City operating portfolio ended the quarter with investments totaling $219.48 million including:
$97.13 million in the State Local Agency Investment Fund and a Local Government Investment Pool $77.30 million in U.S. Treasury Notes
$26.13 million in corporate notes
$7.45 million in asset backed securities
$10.50 million in agency commercial mortgage backed securities $0.11 million in money market funds
$0.86 million in municipal bonds
$0.003 million in cash.
The market yield equaled 4.30% on June 30, 2026 and the accrued interest income for the quarter totaled $826,793.04.
Cash balances attributable to various City Funds comprise the temporary idle cash invested in these portfolios. The invested cash is not discretionary and restricted to support each Fund and thus not transferable between Funds. The City collectively invests and draws upon these funds to support maintaining cashflow for day-to-day operations and working capital as needed. The City bases investment practices and policies on state law, prudent money management and the Statement of Investment Policy with the following primary goals:
protect the principal monies entrusted to the City Treasurer assure compliance with all federal, state and local laws governing public fund investments under City Treasurer control achieve a reasonable rate of return within prudent risk management parameters while minimizing the potential for capital losses arising from market changes or issuer default.
The City Treasurer controls all investable funds including, but not limited to, the General Fund, Special Revenue funds, Debt Service funds, Capital Project funds, Enterprise funds and Trust and Successor Agency funds accounted for in the City Annual Comprehensive Financial Report. The City consolidates cash and reserve balances from all funds to maximize investment earnings and increase efficiencies for investment pricing, safekeeping and administration, except for cash in certain restricted and special funds.
The City strives to achieve a nominal yield above set benchmarks as stated in the Investment Policy and allocates investment income to the funds based on their respective participation and in accordance with generally accepted accounting principles.
Attachments:
Attachment 1 – Q4 Investment Report for Quarter Ended June 30, 2026 cc: City Manager Eddie Manfro
Fourth Quarter FY 2025-26 Treasurer’s Report
September 15, 2026 - Page 2