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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: August 20, 2025
To: Honorable Mayor and City Council Members
From: C. Jeannie Fortune, Interim Director of Finance & Management Services; Eric Levitt, City Manager
Department: Finance & Management Services
Subject: Investment Portfolio Report for June 2025 (All Wards) Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the Monthly Investment Portfolio Report for June 2025.
Executive Summary
This action is to receive and file the Investment Portfolio for the month of June 2025.
This is regular business of the Mayor and City Council ensuring that City investments are in compliance with the Mayor and Council approved Investment Policy.
Background
The City’s Statement of Investment Policy requires that a monthly Investment Portfolio Report be prepared and submitted to the Mayor and City Council. Section III, Chapter N of the City’s approved 2025-26 Investment Policy reads as follows, “The Director of Finance shall submit to the City Council, on a monthly basis, a report summarizing the individual transactions executed within the month.” The Director of Finance will prepare, review, and present the City’s Investment Portfolio Report and confirm that the portfolio is in compliance with the City’s Investment Policy.
Discussion
The Investment Portfolio Report provides a synopsis of investment activity for the City’s investment portfolio for the month ending June 30, 2025.
The City’s Investment Portfolio is in full compliance with the City’s current Investment Policy and California Government Code section 53601, and there is sufficient cash flow from a combination of liquid and maturing securities, bank deposits, and income to meet the City’s expenditure requirements.
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Investment Portfolio Summary for the month ended June 30, 2025:
Investments Par
Value
Market
Value
Book
Value
% of
Portfolio
% per
City
Policy
State Local Agency
Investment Fund
$83,957,784 $83,957,784 $83,957,784 21.77% 19.50%
Certificates of Deposit $500,000 $479,996 $500,000 0.13% 30.00% Federal Agency Issues
- Coupon
$44,500,000 $43,599,875 $44,490,359 11.53% No cap
Money Market Funds $233,644,195 $233,644,195 $233,644,195 60.58% 30.00% Corporate Notes $19,125,000 $18,635,761 $19,117,042 4.96% 20.00% Supranationals $4,000,000 $3,986,660 $3,998,867 1.04% 10.00% TOTAL Investments $385,726,980 $384,304,271 $385,708,248 100.00% Description of Investment Type:
State local Agency investment Fund (LAIF) – a State program created by statute that offers local agencies the opportunity to participate in a major portfolio using the investment expertise of the State Treasurer’s office. The City policy states that the maximum investment amount permitted by California state law regular LAIF accounts is $75m. Current value: $84m.
State Local Agency
Investment Fund
21.8%
Certificates of
Deposit
0.1%
Federal Agency
Issues - Coupon
11.5%
Money Market Funds
60.6%
Corporate Notes
5.0%
Supranationals
1.0%
State Local Agency Investment Fund Certificates of Deposit Federal Agency Issues - Coupon Money Market Funds
Corporate Notes Supranationals
% of Portfolio
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Certificates of Deposit – savings accounts offered by banks and credit unions offering a fixed interest rate for a specific period of time (guaranteed interest rate). The City policy states that the maximum investment amount permitted is up to 30% of the City’s portfolio ($385m x 30% = $115m). Current value: $500k. Federal Agency Issues Coupon – purchase of debt securities issued by either a U.S. federal agency (such as Federal Housing Administration (FHA), Small business Administration (SBA), Government National Mortgage Association (GNMA) – “Ginnie Mae,” or a government-sponsored enterprise (GSE) such as Fannie Mae, Freddie Mac or the Federal Home Loan Bank (FHLB). There is no maximum amount (cap) in the City policy for investing in federal agency issues coupons. Current investment: $44.5m.
Money Market Funds – type of mutual funds that invest in highly, liquid, short- term debt securities, which typically include Treasury bills, municipal bonds, and tax-exempt commercial paper. The City policy states that the maximum investment amount permitted is 30% of the City’s portfolio ($385m x 30% = $115m). Current value: $233m.
Corporate Notes – purchase of debt securities issued by corporations to raise capital. Like bonds, they represent a loan from the investor to the company, in exchange for regular interest payments and the return of the principal amount at maturity. The City policy states that the maximum investment amount permitted is up to 20% of the City’s portfolio ($385m x 30% = $115m). Current value: $19m.
Supranationals – a debt security issued by a supranational entity, an organization formed by two or more governments to promote economic development for member countries (ex. World Bank or European Investment Bank). These organizations issue bonds to fund operations and development projects, with the expectation of repayment from operational revenue. The City policy states that the maximum investment amount permitted is up to 10% of the City’s portfolio ($385m x 10% = $38.5m). Current value: $4m.
Interest Earnings Summary:
30-Jun 30-Jun
Description Month ending FY to Date
Interest Collected $891,948 $13,282,664
Plus: Accrued interest at End of Period $209,560 $240,124 Less: Accrued Interest at Beginning of Period ($1,000,907) ($1,981,437) Sub-total $100,601 $11,541,351
Adjustments: Premiums and Discounts $2,618 $17,940
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30-Jun 30-Jun
Description Month ending FY to Date
Total Interest collected $103,219 $11,559,291
2021-2025 Strategic Targets and Goals
The acceptance and filing of the attached Investment Portfolio Report aligns with Key Target No. 1: Improved Operational & Financial Capacity by implementing, maintaining, and updating a fiscal accountability plan.
Fiscal Impact
There is no fiscal impact associated with receiving and filing the monthly investment report.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the Monthly Investment Portfolio Report for June 2025.
Attachments
Attachment 1 Investment Portfolio Management Summary Report, June 2025 Attachment 2 FY2025-26 Adopted Investment Policy Ward:
All Wards
Synopsis of Previous Council Actions:
N/A