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
Ju
ly
202
5 .
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
2 April 2
8 , 2026
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:
202
6 Investment Policy Review
We have
completed
our
review
of
the
City of
Santa Maria’s
(the “City”)
202
5 Investment Policy (the
“Policy”)
.
The City’s policy aligns with the statutes of California Government Code (“Code”) that govern the investment
of
public
funds
for
local
agencies.
We do, however, summarize
below
changes
made
to
Code
effective
January 1, 2026, through Senate Bills 827, 852, 595 and 858 and include a redlined draft of the City’s policy that incorporates our recommendations at this time.
Senate Bills 595 and 858 revised Section 53601 of Code as follows:
• The maximum maturity for eligible commercial paper was extended from 270 to 397 days.
Revision in Section VIII. Authorized Investments for the City and Section IX. Maturities • Local agencies with at least $100 million in investment assets are permitted to invest a maximum of 40% of its portfolio in commercial paper until January 1, 2031, then reverts to a maximum of 25%. No change recommended at this time.
• In periods of low interest rates, Code had authorized local agencies to invest in U.S. government securities that could result in zero-interest accrual if held to maturity until January 1, 2026. This provision was extended to January 1, 2031. Clarifying language in Section VIII. Authorized Investments for the City
The City is also encouraged to review the potential impacts of Senate Bills 827 and 852. SB 827 enhances training requirements for certain local agency officials with additional fiscal and financial training. SB
852
adds
public officials who manage public investments to the list for whom the Fair Political Practices Commission is the filing officer for statements of economic interest and requires filers to use the Commission’s electronic filing system.
ATTACHMENT D
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
Ju
ly
202
5 .
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
2 of
2 PFMAM is also recommending a minor revision to language in Policy to better reflect the current naming convention of “Standard and Poor’s” as “S&P Global” when referencing the credit rating service.
Please let us know if you’d like to schedule a call to discuss our r eview
or to answer any questions you
may have. Thank you.