City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01660 11/18/2025
Increasing the Amount Allocated to Treasurer for Cost Recovery for Investment Services File ID: 2025-01660
Location: Citywide
Recommendation: Adopt a Resolution increasing the amount allocated to the City Treasurer for cost recovery for investment services.
Contact: Jason Bader, Investment Officer, (916) 808-5340, [email protected]; John Colville, City Treasurer, (916) 808-8297, [email protected]; Office of the City Treasurer Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Description/Analysis
Issue Detail: The City Treasurer manages a portfolio of approximately $2 billion in assets for the City. To recover costs across the department, staff is recommending a two basis point (bp) increase in the amount allocated for cost recovery. A basis point is a financial term used to express incremental percentages. For example, 1 basis point is 0.01%. This adjustment would increase the current rate from 26 bp to 28 bp.
Policy Considerations: Amending the allocation for cost recovery to maintain financial stability and cover administrative expenses for investment services.
Economic Impacts: None.
Environmental Considerations: This action is not a project that is subject to California Environmental Quality Act (CEQA) because it is an administrative activity that will not result in direct or indirect physical changes in the environment and because it relates to government fiscal activities that do not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. (CEQA Guidelines § 15378 (a), (b)(2), and (b)(5)).
File ID: 2025-01660 11/18/2025
Sustainability: None.
Commission/Committee Action: None.
Rationale for Recommendation: The City Treasurer is responsible for the periodic review of investment management allocation to ensure that the City’s recovery of costs for service keeps pace with the level of service provided. The current Treasury Pool cost recovery allocation has not been increased since the fiscal year (FY) 2011/12 Operating Budget.
Financial Considerations: The City Treasurer is recommending a two bp increase for the City’s portfolio management services. The current rate of 26 bp was established with the adoption of the FY2011/12 Operating Budget. This two bp increase will bring the investment management allocation up to 28 bp for all Pool A eligible managed assets. Staff will continue to monitor revenues and expenditures and make any necessary budget adjustments as part of the FY2026/27 budget development process.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2025-
Adopted by Sacramento City Council
November 18, 2025
INCREASING THE AMOUNT ALLOCATED TO THE TREASURER FOR COST
RECOVERY FOR INVESTMENT SERVICES
BACKGROUND:
A. On June 23, 1998, the City Council adopted resolution 98-307, which increased the City Treasurer’s allocation for cost recovery for investment services from 18 basis points (bp) to 20 bp. A basis point is a financial term used to express incremental percentages. For example, 1 basis point is 0.01%.
B. As part of the FY2009/10 budget development process, the City Treasurer’s allocation for cost recovery were increased from 20 bp to 25 bp.
C. On June 11, 2011, the City Council adopted resolution 2011-391, which increased further the City Treasurer’s allocation for cost recovery from 25 bp to 26 bp.
D. Now, the City would like to further increase the City Treasurer’s allocation to cover increased costs of providing the City’s investment services.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The allocation to the City Treasurer for cost recovery for investment services is approved and will become effective January 1, 2026. The allocation will increase from 26 bp to 28 bp.
Section 2. Any necessary budget adjustments will be included in the FY2026/27 budget development process.