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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: May 20, 2026
To: Honorable Mayor and City Council Members
From: Tarik Rahmani, Director of Finance & Management Services Department: Finance & Management Services
Subject: Investment Portfolio Report for February 2026 (All Wards) Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for February 2026.
City Manager’s Comments:
No recommendation.
Executive Summary
This action is to receive and file the Investment Portfolio for the month of February 2026. This is part of the City’s regular financial oversight process and helps ensure that City investments remain in compliance with the Mayor and City Council approved Investment Policy.
Background
The City’s 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 adopted FY 2025-26 Investment Policy states: “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 prepares, reviews, and presents the City’s Investment Portfolio Report and confirms that the portfolio complies with the City’s Investment Policy.
On September 3, 2025 the Mayor and City Council were informed that the City has selected outside professional support for evaluation and advice regarding the City’s investment program. Following a review of qualifications, investment strategy, compliance record, reporting capabilities, and fees, the Shuster Advisory Group was awarded the professional services agreement to serve as the the City’s fiduciary 3 3
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consultant.
Discussion
The Investment Portfolio Report summarizes investment activity for for the month ending February 28, 2026. This reporting period reflects the City’s transition from Wells to Shuster Advisory Group as the City’s fiduciary consultant, alongside the related reporting and portfolio oversight changes associated with that transition.
The City’s Investment Portfolio complies with California Government Code section 53601; and, there is sufficient cash flow from liquid and maturing securities, bank deposits, and investment income to meet the City’s expenditure requirements.
Description of Investment Type:
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•US Treasury instruments – these include United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of the City's portfolio that may be invested in this category (no cap). The current book value is $122.0m (37.96%). •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 or 23.3% of total investments. Current value: $22.5m (7%).
•Asset-Backed securities & Collateralized Mortgage Obligations (CMOs) - these include a mortgage passthrough security, collateralized mortgage obligation, mortgage- backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond with a maximum remaining maturity of five years or less as measured by Weighted-Average Life (WAL). No more than 20% of the market value of the City's investment portfolio shall be invested in this category ($322m x 20% = $64.3m). Current value: $67.1m (20.85%). •Federal Agency securities – these include the 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: $53.9m (16.75%). •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 20% of the City’s portfolio ($322m x 20% = $64.4m). Current value: $48.9m (15.21%).
•Cash – Liquid cash received from investment maturities or interest within the Bond Portfolio. There is no maximum amount in the City policy. Current investment: $1.8m (0.57%).
•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 3 3
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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 ($322m x 10% = $32.2m). Current value: $3m (0.94%). •Certificates of Deposit – negotiable certificates of deposit offered by nationally or state-chartered 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 ($322m x 30% = $96.4 m). Current value: $482.0k (0.15%). •Municipal Bonds - Registered state warrants or treasury notes or bonds of the State of California, or local agencies within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. A maximum of 30% of the City's portfolio may be invested in this category ($322m x 30% = $96.4 m). Current value: $1.8m (0.57%).
2021-2025 Strategic Targets and Goals
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, accept and file the Monthly Investment Portfolio Report for February 2026.
Attachments
Attachment 1 Investment Portfolio Management Summary Report Feb 2026 Attachment 2 FY2025-26 Adopted Investment Policy Ward:
All Wards
Synopsis of Previous Council Actions:
N/A
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CC: Eric Levitt, City Manager