PFM Asset Management is a division of U.S. Bancorp Asset Management, Inc.
Investment observations based on City of Santa Maria’s Investment Policy Statement as of June 2024.
Investment observations are for informational purposes only and are not intended to provide specific advice or any specific recommendations.
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE 1 of 1 May 23, 2025
Memorandum
To: Rebecca Campbell, Finance Director
Rick Kirkwood, Interim Assistant Finance Director
Angie Hernandez, CRO, Revenue Manager
City of Santa Maria
From: Justin Resuello, Institutional Sales and Relationship Manager Monique Spyke, Managing Director
PFM Asset Management, a division of U.S. Bank Asset Management RE: 2025 Investment Policy Review
W
e have completed our review of the City of Santa Maria’s (the “City”) 2024 Investment Policy (the “Policy”). This year we are recommending modifications to the Policy that would align with recent Code changes introduced by AB 2618 (Chapter 239, 2024), that went into effect on January 1, 2025. Below, we have summarized the Code change and have attached a marked-up version of the Policy to illustrate our recommendations.
AB 2618 made amendments to Code Section 53601.8, which governs the placement of surplus funds by local agencies in depository institutions. This amendment extended the portfolio concentration limit from 30% to 50% of a local agency’s surplus funds; this limit is expected to revert to 30% on January 1, 2031. The California Debt and In vestment Advisory Commission (CDIAC) is also required to submit a report to the Legislature by January 1, 2030, who will evaluate the use and impact of these deposits.
This new Code language will provide local agencies with extended flexibility in managing surplus funds while ensuring legislative oversight through the required report.
In Policy section, VIII. Authorized Investment Instruments f or the C ity, we recommend extend ing the current policy limit of Deposit Placement Serv ices to 50%, providing the City with greater latitude in managing surplus funds, and meeting the requirements of the newly amended Code.
Please let us know if you’d like to schedule a call to discuss our review or to answer any questions you may have. Thank you.
ATTACHMENT D