City of Sacramento
Personnel and Public Employees Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01084 8/12/2025
Annual Report and Performance Evaluation for City Council Appointive Officer - City Treasurer
File ID: 2025-01084
Location: Citywide
Recommendation: Receive annual report and pass a Motion forwarding to the City Council for review.
Contact: John Colville, City Treasurer, (916) 808-8297, [email protected], Office of the City Treasurer
Presenter: John Colville, City Treasurer, (916) 808-8297, [email protected], Office of the City Treasurer
Attachments:
1-Description/Analysis
2-City Treasurer’s Annual Report 24-25
3-Presentation
Description/Analysis
Issue Detail: The mayor and city council is committed to performing regular annual reviews of its appointive officers.
The annual report and appointed officer evaluation process is intended to move forward to the city council. As appropriate, the city council will meet in closed session, per Government Code section 54957(b), to provide feedback on past accomplishments and to give direction on the workplan for the upcoming year.
City of Sacramento Charter § 731 City Treasurer mandates the following:
The city treasurer shall be responsible for the deposit and investment of all funds of the city treasury not made subject to the control of others pursuant to this Charter. The city treasurer shall keep the city council fully advised as to the deposit and investment of funds subject to his control. The city council shall prescribe the qualifications, additional duties, and compensation of the city treasurer.
File ID: 2025-01084 8/12/2025
The city treasurer shall appoint, subject to the civil service provisions of this Charter, such deputies and employees as the council may by resolution prescribe.
Policy Considerations: Council Rules of Procedure, Chapter 18.
Economic Impacts: Not applicable.
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Clear communication and performance metrics are at the core of the work of the council and the city. To evaluate council appointive officers on a consistent basis, the Personnel and Public Employee (P&PE) Committee has the role and responsibility of developing and leading annual performance metrics and evaluations.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): Not applicable.
City Treasurer’s Annual Report
Performance Evaluation of John Colville, City Treasurer Review Period: 06/2024 – 06/2025
Overview
The city treasurer performs executive management duties by overseeing the activities and functions of the Office of the City Treasurer, including the supervision of professional staff, the investment and management of all city funds, issuance and management of city debt (including Redevelopment Agency Successor Agency debt), and the coordination and administration of the city’s banking operations.
City of Sacramento Charter § 73 City Treasurer mandates the following:
The city treasurer shall be responsible for the deposit and investment of all funds of the city treasury not made subject to the control of others pursuant to this Charter. The city treasurer shall keep the city council fully advised as to the deposit and investment of funds subject to his control. The city council shall prescribe the qualifications, additional duties, and compensation of the city treasurer. The city treasurer shall appoint, subject to the civil service provisions of this Charter, such deputies and employees as the council may by resolution prescribe.
The City Treasurer is responsible for the following:
Banking
o Serve as the Citywide Lead/Program Manager and principal liaison between the city’s business units and the city’s banking vendor.
o Establish and administer a variety of banking services for the receipt, disbursement, and safekeeping of city monies and investments.
o Responsible for the implementation and sustainability of the city’s Compliance Program for Payment Card Industry Data Security Standard (PCI DSS).
o Formulate and implement policies, programs, and procedures of banking operations including armor car services, PCard, ACH, and electronic payments.
o Provide, coordinate, and conduct training for city departments on internal and external banking activities and compliance issues.
Debt Management
o Responsible for the planning, coordination, and issuance of all city debt (public or private placement).
o Work with Finance Department and City Attorney's Office staff, as well as external staff to develop the Rate and Method of Apportionment of Special Tax related to new Mello-Roos Districts.
o Manage the pre-issuance process of all financings, whether public or direct placement.
o Manage the feasibility analysis of potential projects (such as small- equipment lease or enterprise revenue bond issues), working in conjunction with various city departments.
o Manage communication between the city and rating agencies and current bondholders.
o Review and provide material edits to all draft rating agency credit reports or rating surveillance publications.
o Manage the levy development process for land-secured districts.
o Evaluate and determine collections of land-secured districts; if necessary, initiate accelerated foreclosure proceedings.
o Manage the delinquency process; including stripping parcels from the secured roll (in accordance with bond covenants) and seek payment for bondholders.
o Manage the reconciliation for special tax collections to determine sufficiency of covering necessary debt service payments and administrative costs of land-secured districts.
o Review and approve reserve fund valuation as prepared by the trustees.
o Complete and approve all debt service payments, including sweeps of the reserve fund or supplants of the reserve fund.
o Complete and approve all continuing disclosure filings, annual filings, event filings, and voluntary filings before the filings are uploaded to MSRB's EMMA system.
Investments
o Manage the city’s Pool A ($1.8B) and SHRA’s Pool D ($108mm) short-term investment portfolios for principal preservation, liquidity, and income.
o Portfolio Manager for the Sacramento City Employees’ Retirement System (SCERS) which includes equities, fixed-income, and equity option securities ($250mm).
o Manage endowment and trust funds that were bequeathed to the city:
Ann Land/Bertha Henschel Endowment ($4.9mm) – Poor and indigent citizens
Ethel Hart Memorial Endowment ($3.7mm) – Senior citizens George H. Clark Memorial Scholarship ($2.1mm) – Sacramento high school student scholarships
o Participate in the Defined Contribution Committee which conducts advisory activities for the city’s 401A and 457 defined contribution programs.
o Oversee and monitor the daily cash management to ensure adequate liquidity for the city.
o Prepare monthly, quarterly, and annual reports for the council and portfolio participants to ensure transparency.
o Complete all reporting in compliance with SEC regulations.
Evaluation Period Accomplishments
In addition to the statutory responsibilities of the City Treasurer, over this evaluation period the following are significant accomplishments:
Banking
o Banking Operations continues to manage the City’s Merchant Services Program.
Monitoring over 70+ Merchant Accounts, with gross sales averaging $234M, equating to more than 4.9M transactions, annually.
Gross sales increased by almost 5% from the prior fiscal year, due primarily to offering more ecommerce options.
o Coordinating/co-leading team in a Clean PCI Report of Compliance; implementing significant requirements to Payment Card Industry Data Security Standard (PCI DSS) 4.0 Policy and Procedures;
Initiated stricter policies in card processing procedures; added responsibility matrix of Third-Party Service Providers
o Working with the City’s Bank, IT and participating Lines of Business to develop a project plan for the city-wide implementation of a Consumer Funded Service Fee Program.
Debt Management
o Completed the issuance of Greenbriar CFD No. 2018-03 (Improvements) Improvement Area No. 2 Special Tax Bonds, Series 2024 in the par amount of $36.95 million to finance the acquisition of capital improvements from the master developer.
o Completed the issuance of Delta Shores CFD No. 2019-01 (Improvements) Improvement Area No. 1 Special Tax Bonds, Series 2024 in the par amount of $14.48 million to finance the acquisition of capital improvements from the master developer.
o Received a credit rating upgrade from Moody’s for the City’s Transient Occupancy Tax (TOT) Revenue Bonds – from “A1” to “Aa3” for the Senior Series A & B bonds, and from “A2” to “A1” for the subordinate Series C bonds.
o Received a credit rating upgrade from Fitch Ratings for the Sacrament Public Financing Authority Lease Revenue Bonds, Series 2015 (Golden 1 Center) from “AA-” to “AA”.
o Received a credit rating upgrade from Fitch Ratings for the City’s various series of Water Revenue Bonds – Series 2017, Series 2020, and Series 2023, from “AA-” to “AA”.
o Completed the comprehensive update of the TOT forecast to determine the city’s ability to issue additional TOT bonds for eligible projects.
Investments
o The Investment Staff manages over $1.8 billion in the City’s Pool A account. The portfolio is consistently ranked in the top tier of California cities with similar populations and pool sizes. Staff also manages over $100 million in the SHRA Pool (D) account. These pools' main objectives in order of importance are principal preservation, liquidity, and yield. For the most recent fiscal year through June 30, 2025, the Pool A portfolio had an annual 5-year average return of 2.12%. This is an increase of .27% over the previous 5 yr average. The pool underperformed the 5-year average annual return of the Local Agency Investment Fund (LAIF) at 2.31%. Staff anticipates the Pool A return will increase monthly starting in July 2025 as over half a billion dollars in low coupons mature out of the Pool during the upcoming fiscal year.
o For Fiscal Year 2024-2025 The City Treasurer's office worked in conjunction with the Finance department to create a custom laddered investment portfolio for the CalPERS Annual Payment. CalPERS offered the city a savings of 3.2% which equated to a total payment of $104.9 million as a lump sum in July of 2024, in lieu of the monthly payments. By creating a custom bond portfolio, the city was able to still pay the CalPERS’ payments monthly and earn enough additional interest to save the city over $1.8m during the Fiscal Year
o The Investment Staff manages 3 endowment/trust accounts with over $10 million in assets. These funds are managed to generate income for the ultimate beneficiaries of the plans. The largest endowment is the Ann Land/Bertha Henschel Fund whose value exceeds $5 million. Over the last 7 years, staff has proactively managed and increased the annual funding allocation by over 36%. By continually rebalancing their portfolio over the last few years, staff has increased the foundations' disbursement amount 6 of the last 7 years, allowing more funds to be directly placed into the community.
o The Investment Staff manages over $250 million in multiple asset classes in the SCERS plan. The plan has just 703 participants and 1 currently active employee. The plan has an annual actuarial target of 6.0%. Through fiscal year ending June 30, 2025, the plan has a 10-year average annual return of
7.50%. This outperformance equates to approximately $3.75 million of additional earnings PER YEAR based on an average portfolio size of $250 million. The funding status of the system as of this unaudited Fiscal year end is near 105%.
SCERS CalPERS CalSTRS
FY ROR Funded
Ratio
ROR Funded
Ratio
ROR Funded Ratio
2025(unaudited) 10.63% 105% 11.60% 8.50%
2024 12.74% 101.60% 9.30% 75.00% 8.40% 76.70%
2023 10.13% 95.50% 5.80% 72.00% 6.30%
2022 -10.69% -7.50% -3.30%
2021 29.46% 21.30% 27.20%
2020 3.24% 4.70% 3.90%
2019 7.25% 6.70% 6.80%
10 YEAR AVG 7.50% 7.10% 8.10%
City Treasurer
Annual
Performance
Review
City Treasurer
§ 73 City Treasurer.
The city treasurer shall be responsible for the deposit and investment of all funds of the city treasury not made subject to the control of others pursuant to this Charter. The city treasurer shall keep the city council fully advised as to the deposit and investment of funds subject to his/her control. The city council shall prescribe the qualifications, additional duties, and compensation of the city treasurer. The city treasurer shall appoint, subject to the civil service provisions of this Charter, such deputies and employees as the council may by resolution prescribe.
City Treasurer's Office
Diversity Statistics
Gender Number of
FTE's
Office of the City
Treasurer Staff
Sacramento
Residents
Female 6 67% 51%
Male 3 33% 49%
Ethnicity Number of
FTE's
Office of the City
Treasurer Staff
Sacramento
Residents
White 4 44% 31%
Hispanic 1 11% 29%
Black 1 11% 12%
Asian 2 22% 16%
Middle Eastern/North African 0 0% 0%
Filipino 1 11% 3%
Hawaiian/Pacific Islander 0 0% 2%
American Indian/Alaska Native 0 0% 0%
Two or More 0 0% 6%
Banking
The Banking Operations division provides citywide access to banking services, ensuring timely deposits and disbursements of city funds. The division is the sole liaison between the city's bank and all city departments
❖ Banking Operations continues to manage the City’s Merchant & Banking Operations Programs.
o Monitoring over 70+ Merchant Accounts, with gross sales averaging $234M, equating to more than 4.9M transactions, annually.
o Gross sales increased (5%) from the prior fiscal year, due primarily to offering more ecommerce & digital wallet options.
o Collections Activity - electronic receivables make up 61% of activity. o Disbursements Activity - electronic disbursements make up 75% of activity. ❖ Coordinating/co-leading team in a Clean PCI Report of Compliance; implementing significant requirements to Payment Card Industry Data Security Standard (PCI DSS) 4.0 Policyand Procedures; Trained 240+ staff on PCI Security Awareness ❖ Initiated stricter policies in card processing procedures; responsibility matrix of Third-Party Service Providers
❖ Worked with the City’s Bank, IT and participating Lines of Business to develop a project plan for the city-wide implementation of a Citywide Consumer Funded Service Fee Program.
Debt Management
Overview
The Debt Management Division manages approximately $1.6 billion of debt outstanding issued by the City, various financing authorities, and the Redevelopment Agency Successor Agency. Additionally, any debt issued by the Aggie Square Enhanced Infrastructure Financing District, Railyards Enhanced Infrastructure Financing District, or Innovation Park Enhanced Financing District will be managed by the Division. Major responsibilities include:
Reconcile and pay debt service and complete financial reporting. Prepare and provide continuing disclosure to bond holders and rating agencies. Safeguard the City’s credit ratings.
Perform analyses/compliance review of debt expenditures and complete other post-debt issuance responsibilities in accordance with federal, state, and local requirements, and bond covenants.
Provide feasibility analyses and implement the financing needs for City departments, and requests for financing from developers (Mello-Roos CFD financings).
Debt Management
Accomplishments
Completed the issuance of Greenbriar CFD No. 2018-03 (Improvements) Improvement Area No. 2 Special Tax Bonds, Series 2024 in the par amount of $36.95 million to finance the acquisition of capital improvements from the master developer. Completed the issuance of Delta Shores CFD No. 2019-01 (Improvements) Improvement Area No. 1 Special Tax Bonds, Series 2024 in the par amount of $14.48 million to finance the acquisition of capital improvements from the master developer. Received a credit rating upgrade from Moody’s for the City’s Transient Occupancy Tax (TOT) Revenue Bonds – from “A1” to “Aa3” for the Senior Series A & B bonds, and from “A2” to “A1” for the subordinate Series C bonds.
Received a credit rating upgrade from Fitch Ratings for the Sacrament Public Financing Authority Lease Revenue Bonds, Series 2015 (Golden 1 Center) from “AA-” to “AA”. Received a credit rating upgrade from Fitch Ratings for the City’s various series of Water Revenue Bonds – Series 2017, Series 2020, and Series 2023, from “AA-” to “AA”. Completed the comprehensive update of the TOT forecast to determine the city’s ability to issue additional TOT revenue bonds for eligible projects.
Debt Management
0 10
20 30
40 50
60Millions
Fiscal Year
Outstanding Lease Revenue Bond Debt Service
2006 Capital Improvement Revenue Bonds, Series B (2) 2006 Capital Improvement Revenue Bonds, Series E (2) 2015 Lease Revenue Bonds (Golden 1 Center) 2015 Refunding Revenue Bonds (1)(2) 2016 Refunding H Street Complex Total General Fund Debt Service Amount Investments
The City Treasurer manages the City’s Pool A, the SHRA pool, as well as investments in endowments, trusts and the Sacramento City Employees’ Retirement System (SCERS) ❖ The Investment Staff manages over $1.8 billion in the City’s Pool A account.The portfolio is consistently ranked in the top tier of California cities with similar populations and pool sizes. Staff also manages over$100 million in the SHRA Pool (D) account.These pools'main objectives in order of importance are principal preservation, liquidity, and yield.For the most recent fiscal year through June 30, 2025, the Pool A portfolio had an annual 5- year average return of2.12%, up .27% from the previous years annualized 5 yr return.The fund has slightly underperformed the Local Agency Investment Fund (LAIF) by .19%. The large inflow of funds to the City during Covid in an artificially low-interest rate environment,necessitated staff to invest longer term to earnincome. Over half a billion of these low coupon bonds will mature in the next fiscal year which will createa positive reinvest risk scenario starting in July 2025.
❖ For Fiscal Year2024-2025 The City Treasurer's office worked in conjunction with the Finance department to create acustom laddered investment portfolio for the CalPERS Annual Payment. CalPERS offeredthe City a savings of3.2% which equated to a total payment of $104.9million as a lump sum in July of 2024, in lieu of the monthly payments.By creating a custom bond portfolio, the City was able to still pay the CalPERS's paymentsmonthly and earn enough additional interest tosave the city over $1.8m during the Fiscal Year. ❖ The Investment Staff manages 3 endowment/trust accounts with over $10 million in assets.These funds are managed to generate income for the ultimate beneficiaries of the plans. The largest endowment is the Ann Land/Bertha Henschel Fund whose value exceeds $5 million. Over the last7 years, staff has proactively managedand increased the annualfunding allocationby over 36%. By continuallyrebalancing their portfolio over the last few years, staff has increased the foundations' disbursement amount 6 of the last 7 years, allowing more funds to be directlyplaced into the community. ❖ The Investment team continues toanalyze ongoingways to improveportfolio performance and streamlineour operations. Over the last 24 months we continue to have meetings to keep our participants' abreast of political,economic and marketpolicies that could affectthe portfolios. We believe that through our education, accessibility, and unwavering commitment to transparency, we have helped our clients feel less anxiousabout our investment portfolios, which as of June 30, 2025, totaled over $2 billion.
Investments
The City Treasurer actively manages the Sacramento City Employees’ Retirement System (SCERS)
❖ The Investment Staff manages over $250 million in multiple asset classes in the SCERS plan. The plan has just 703 active participants and 1 current employee. The plan is near105% funded for the unaudited Fiscal Year ending June 30, 2025. The plan has an annual actuarial target of 6.0%. Through the current fiscal year the plan has a 10 -year average annual return of
7.50%. This outperformance equates to approximately $3.75mm of additional earnings PER YEAR based on an average portfolio size of $250 million.
SCERS CalPERS CalSTRS
FY ROR Funded Ratio ROR Funded Ratio ROR Funded Ratio
2025 (unaudited) 10.63% 105% 11.60% 8.50%
2024 12.74% 101.60% 9.30% 75.00% 8.40% 76.70%
2023 10.13% 95.50% 5.80% 72.00% 6.30%
2022 -10.69% -7.50% -3.30%
2021 29.46% 21.30% 27.20%
2020 3.24% 4.70% 3.90%
2019 7.25% 6.70% 6.80%
10 YEAR AVG 7.50% 7.10% 8.10%
CTO Value Added FY 24-25
Superior Performance = $21,345,000
Investments $14.625 million
SCERS 10.63%* vs. Actuarial Assumption (6.0%) + $11,575,000 FY 24 -25 vs. Custom Benchmark (10.1%) + $1,250,000 FY 24 -25
CalPERS Annual Payment - $1,800,000
CTO Total Department Revenues $ 6.72 million
Investment Management Fees - $4.1mm ($3.8mm budget 24 -25) Other Misc Revenue -$2.2mm
Salary Savings - $420k (5 FTE Vacancies)
• *Unaudited FY end June 30, 2025
2025-26 Goals
❖ Banking
o Implement a Citywide Service Fee program to eliminate the city’s subsidy of merchant fees for credit card payments made to the city; program will be primarily consumer funded. o Kick off recruitment campaign with Finance to add top suppliers to SUA (epayables) program to increase rebate o Work with YPCE on new gateway P@PE (Point to Point Encryption)integration to secure payment methods. o Continue to evaluate and establish a citywide Credit Card Fee Policy; Incorporate and remediate new PCI DSS 4.0.01 requirements into PCI Policies and Procedures. ❖ Debt Management
❖ Complete the issuance of the 2025 Refunding Revenue Bonds to provide the City’s General Fund and other City funds cashflow savings. ❖ Complete the issuance of the 2025 Transient Occupancy Tax Revenue Bonds to fund a portion of the Waterfront Reinvestment Program. ❖ Work with Finance Dept. staff and the CAO on the formation of the Innovation Park CFD. ❖ Kickoff the issuance of the Aggie Square CFD bonds.
❖ Continue to provide financial analysis and support on citywide projects – including the Sacramento Valley Station and I Street Bridge Projects. ❖ Continue recruitment efforts to fill vacant analyst positions.. ❖ Investments
o Train new Investment Officer to provide stability and continuity to the Investment division; put in place adequate succession plans as Investment Staff faces high levels of natural attrition in the near to mid term future.
o Continue tooutperform actuarial assumptions for the SCERS retirement plan to lessen and/or eliminate the need for future City funded contributions. o Run analysis on the long-term trajectory of the SCERS plan with outside legal consultant to determine if charter amendments willbe necessary as plan may reach "non active" status in the future.
o Revisit and update all internal policies and procedures manuals within thedepartment to ensure cleardepartmentguidelines to use for new incoming investment staff. o Run analysis on fee structure for Poolparticipants to determine whether fees are covering basic costs associated with running portfolios. Last increase to the Poolrecovery fee was 14 year ago.
❖ Miscellaneous
o Continue to work with the Council and City Manager to find financing solutions for affordable housing projects, climate initiatives, economic development (Aggie Square, Railyards, the 102 acresetc.) and other strategic objectives.