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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 17, 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 March 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 March 2026.
City Manager’s Comments:
The City Manager requests City Council approval.
Executive Summary
The requested action is to receive and file the Investment Portfolio Report for the month of March 2026. The report is part of the City’s regular financial oversight process and documents the City’s investment balances, activity, liquidity, and 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 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, Shuster Advisory Group was 3 3
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awarded the professional services agreement to serve as the City’s fiduciary consultant.
Discussion
The Investment Portfolio Report summarizes investment activity for the month ending March 31, 2026. This report reflects the City’s March 2026 portfolio data and the continuing transition to Shuster Advisory Group’s reporting and oversight format.
Based on the attached report, the City’s investment portfolio complies with California Government Code section 53601 and the City’s Investment Policy. The report also indicates that sufficient cash flow is available from liquid investments, maturing securities, bank deposits, and investment income to meet the City’s expenditure requirements.
Par Market Book
Value Value Value
Treasury $116,750,000 116,067,138 $116,414,614 36.90% no cap no cap Local Agency Investment Fund (LAIF) $22,697,543 $22,697,543 $22,697,543 7.19% 23.77% $75,000,000 Corporate Bonds $63,500,000 63,549,640 $64,328,913 20.39% 30.00% $94,645,256 Agency Securities $58,000,000 56,405,832 $56,954,917 18.05% no cap no cap Money Market Funds (Wells Fargo) $41,651,815 $41,651,815 $41,651,815 13.20% 20.00% $63,096,837 Cash $6,754,501 $6,754,501 $6,754,501 2.14% no cap no cap Supranationals $3,000,000 3,013,765 $2,977,260 0.94% 10.00% $31,548,419 Certificates of Deposit $500,000 493,452 $500,000 0.16% 30.00% $94,645,256 Municipal Bonds $3,500,000 3,188,690 $3,204,625 1.02% 30.00% $94,645,256 TOTAL Investments 316,353,859 313,822,376 $315,484,187 100.00% Investments % of
Portfolio
% per
City
Policy
CAP allowed by City policy
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Description of Investment Type:
U.S. Treasury instruments – United States Treasury notes, bonds, bills, or certificates of indebtedness, or instruments for which the full faith and credit of the United States is pledged for the payment of principal and interest. There is no portfolio percentage cap for this category under the City’s policy. Current book value: $116.4 million (36.90%).
Local Agency Investment Fund (LAIF) – A State program created by statute that allows local agencies to participate in a major portfolio managed by the State Treasurer’s Office. The City’s policy states that the maximum amount permitted for regular LAIF accounts is $75.0 million, or 23.77% of the portfolio based on the March 2026 total. Current value: $22.7 million (7.19%). Asset-backed securities and collateralized mortgage obligations (CMOs) – These include mortgage pass-through securities, collateralized mortgage obligations, mortgage-backed or other pay-through bonds, equipment lease- backed certificates, consumer receivable pass-through certificates, or consumer receivable-backed bonds with a maximum remaining maturity of five years or less as measured by weighted average life. No more than 20% of the market value of the City’s investment portfolio may be invested in this category.
Current value: $0 (0%).
Federal agency securities – Debt securities issued by U.S. federal agencies or government-sponsored enterprises, including Fannie Mae, Freddie Mac, Ginnie Mae, and the Federal Home Loan Bank. There is no portfolio percentage cap for this category under the City’s policy. Current book value: $57.0 million (18.05%).
Money market funds – Mutual funds that invest in highly liquid, short-term debt securities, which may include Treasury bills, municipal bonds, and commercial paper. The City’s policy allows up to 20% of the portfolio in this category. Current value: $41.7 million (13.20%).
Cash – Liquid cash received from investment maturities, sales, or interest within the investment portfolio. There is no portfolio percentage cap for this category under the City’s policy. Current value: $6.8 million (2.14%). Supranationals – Debt securities issued by supranational entities, which are organizations formed by two or more governments to promote economic development for member countries, such as the World Bank or European Investment Bank. The City’s policy allows up to 10% of the portfolio in this category. Current value: $3.0 million (0.94%).
Certificates of deposit – Negotiable certificates of deposit offered by nationally or state-chartered banks and credit unions for a fixed period of time. The City’s policy allows up to 30% of the portfolio in this category. Current value: $0.5 3 3
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million (0.16%).
Municipal bonds – Registered state warrants, treasury notes, or bonds of the State of California, California local agencies, or other states, including certain bonds payable from revenue-producing property. The City’s policy allows up to 30% of the portfolio in this category. Current value: $3.2 million (1.02%). Corporate or medium-term notes – Corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating in the United States. The City’s policy allows up to 30% of the portfolio in this category. Current value: $64.3 million (20.39%).
2021-2025 Strategic Targets and Goals
Receiving 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 March 2026.
Attachments
Attachment 1 Investment Portfolio Management Summary Report Mar 2026 Attachment 2 FY2025-26 Investment Policy Adopted November 5, 2025.
Ward:
All Wards
Synopsis of Previous Council Actions:
N/A
CC: Eric Levitt, City Manager