Stockton City Council
September 29, 2026

City Council and Concurrent Authorities
City of Stockton
Meeting Agenda - - Revised
City Council and
Concurrent Authorities
Christina Fugazi, Mayor/Chair (At Large)
Jason Lee, Vice Mayor (District 6)
Michele Padilla (District 1)
Mariela Ponce (District 2)
Michael Blower (District 3)
Mario Enríquez (District 4)
Brando Villapudua (District 5)
Council Chamber, City Hall, 501 W. Weber Ave,
Building 1, Stockton CA
1:00 PMTuesday, September 29, 2026
Regular Session 1:00 PM :: Closed Session To Follow

1. REGULAR SESSION CALL TO ORDER/ROLL CALL

2. INVOCATION/PLEDGE TO FLAG

3. ADDITIONS TO REGULAR SESSION AGENDA***

4. RECOGNITIONS, ANNOUNCEMENTS, OR REPORTS

4.1 26-1075 PRESENTATION BY THE GREATER STOCKTON CHAMBER OF

COMMERCE REGARDING THE STAART PROGRAM
Recommended Action: RECOMMENDATION
Presentation only. No action to be taken.

Department: Office of the Mayor

4.2 26-1063 PROCLAMATION: AMERICAN PHARMACISTS MONTH
Department: Office of the Mayor

4.3 26-1064 PROCLAMATION: CALIFORNIA WATER SERVICE’S 100 YEARS OF

SERVICE
Department: Office of the Mayor

5. PUBLIC COMMENTS* – MATTERS NOT ON THE AGENDA

6. CONSENT AGENDA

6.1 26-0621 MEASURE A CITIZENS’ ADVISORY COMMITTEE ANNUAL REPORT (JULY 1, 2018 - JUNE 30, 2024)

1 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to accept the Measure A Annual Reports for July 1, 2018, through June 30, 2024.

Department: Administrative Services
Attachment A - Adopted Annual Report July 1, 2018 - June 30, 2024Attachments:

6.2 26-0626 MOTION TO ACCEPT THE MEASURE A CITIZENS’ ADVISORY COMMITTEE BUDGET REPORT - FISCAL YEAR ENDING JUNE 30,
2026
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to accept the Measure A Budget Report for the Fiscal Year ending June 30, 2026 (Attachment A).

Department: Administrative Services
Attachment A - Budget Report FY Ending June 30, 2026Attachments:

6.3 26-1006 ACCEPTANCE OF THE QUARTERLY INVESTMENT REPORT FOR QUARTER ENDED JUNE 30, 2026
Recommended Action: RECOMMENDATION
It is recommended that the City Council, by motion, accept the Quarterly Investment Report for the quarter ending on June 30, 2026 Department: Administrative Services
Attachment A - Investment Policy
Attachment B - PFMAM Investment Report
Attachment C - Chandler Investment Report
Attachment D - Quarterly Investment Certification
Attachments:

6.4 26-1044 APPROVE RESPONSE TO THE 2025-2026 CIVIL GRAND JURY REPORT ON CASE NO. 0125, “STOCKTON CITY COUNCIL:

GOVERNANCE IN TURMOIL”

2 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Recommended Action: RECOMMENDATION
It is recommended that the City Council.

Approve by motion the City’s response to the 2025-2026 Civil Grand Jury Report titled “Stockton City Council: Government in Turmoil,” Case No. 0125; and
Authorize the City Manager and City Attorney to make any necessary non-substantive revisions to the responses prior to submission to the Presiding Judge of the San Joaquin County Superior Court; and Direct staff to establish a public tracking matrix identifying each Finding and Recommendation, the City’s response, responsible department or office, implementation status, and anticipated completion date, as applicable.

Department: City Attorney
Attachment A - Civil Grand Jury Report No. 0125
Attachment B - Grand Jury Draft Response
Attachments:

6.5 26-0574

ADOPT A RESOLUTION RESCINDING AND REPLACING THE CITY
OF STOCKTON ’S CONFLICT OF INTEREST CODE BY ADDING AND

DELETING CERTAIN DESIGNATED POSITIONS
Recommended Action: RECOMMENDATION
It is recommended that City Council adopt a resolution rescinding and replacing the City of Stockton’s Conflict of Interest Code by adding and deleting certain designated positions.

Department: City Clerk
Attachment A - 2026 Conflict of Interest Code Redlined
Proposed Resolution
Exhibit 1 - 2024 Conflict of Interest Code - Clean Copy Attachments:

6.6 26-1023 ADOPT A RESOLUTION TO ACCEPT $4.5M PROPOSITION 64 PUBLIC HEALTH AND SAFETY GRANT PROGRAM COHORT 4
AWARD

3 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Accept a $4,500,000 grant award from the California Board of State and Community Corrections (BSCC) under the Proposition 64 Public Health and Safety Grant Program, Cohort 4, for the Stockton Cannabis Public Safety & Prevention Project;
Authorize the City Manager to execute Grant Agreement No. BSCC 1473-26 and any related documents necessary to administer the grant; and
Authorize the City Manager to appropriate $4,500,000 in grant revenues and expenditures.

It is also recommended that the City Manager be authorized to take any appropriate and necessary actions to carry out the purpose and intent of the resolution.

Department: City Manager
Proposed Resolution - Prop 64 Grant
Exhibit 1 - 2026 Prop 64 Grant Agreement
Attachments:

6.7 26-1031 ADOPT A RESOLUTION NAMING THE NEW PARK SITE LOCATED AT 3993 STAPLETON DRIVE AS "CORAZÓN DEL VALLE PARK"
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution:

Authorizing the City Manager to process the naming of the park site located at 3993 Stapleton Drive as "Corazón del Valle Park" Authorizing the City Manager to take other actions which are necessary and appropriate to carry out the purpose and intent of this Resolution.

Department: Community Services
Attachment A - Naming of Facilities Policy
Proposed Resolution
Attachments:

6.8 26-0701 ADOPT A RESOLUTION TO AUTHORIZE EXECUTION OF TWO

TEAM LEASE AGREEMENTS BETWEEN THE CITY OF STOCKTON
AND (1) PARKER MOSKAL, FEDERAL PROSPECTS HOCKEY
LEAGUE/STOCKTON PRO HOCKEY, LLC AND (2) STOCKTON

CRUSADERS, FOR THE USE OF ADVENTIST HEALTH ARENA

4 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution:

Authorizing the execution of a Team Lease Agreement with Parker Moskal, Federal Prospects Hockey League/Stockton Pro Hockey, LLC (Stockton Thunder), for the use of Adventist Health Arena as the home court for the Stockton Thunder Hockey Team, consistent with the drafted agreement;
Authorizing the execution of a Team Lease Agreement with Stockton Crusaders for the use of the Adventist Health Arena as the home venue for Arena Football One regular season home games, consistent with the drafted agreement; and
Authorizing the City Manager, or his designee, to take all the necessary and appropriate actions to carry out the purpose and intent of this resolution.

Department: Economic Development
Proposed Resolution
Exhibit 1 - Draft Hockey Lease Agreement
Exhibit 2 - Draft Football Lease Agreement
Attachments:

6.9 26-1041 APPROVAL OF A TEMPORARY RECRUITMENT AND RETENTION

INCENTIVE AND SIDE LETTER AGREEMENTS FOR FIRE

TELECOMMUNICATION CLASSIFICATIONS IN THE STOCKTON
CITY EMPLOYEES’ ASSOCIATION AND THE STOCKTON

MID-MANAGEMENT / SUPERVISORY UNITS
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached Side Letter Agreements between the City of Stockton (City) and the Stockton City Employees’ Association (SCEA) and the Stockton Mid-Management/Supervisory Level (B&C) Unit. The side letters establish a temporary recruitment and retention incentive for eligible employees in the Fire Telecommunication classifications through June 30, 2029.

It is further recommended that the City Manager be authorized to take any appropriate and necessary actions to carry out the purpose and intent of the resolution, including implementation and funding of the side letter agreements.

Department: Human Resources
Proposed Resolution
Exhibit 1 - B&C Fire Telecommunications Side Letter Agreement Exhibit 2 - SCEA Fire Telecommunications Side Letter Agreement Attachments:

6.10 26-1029 ACCEPT THE ANNUAL HEALTH BENEFITS REPORT AND ADOPT THE MONTHLY PREMIUM RATES FOR THE CITY’S 2027

EMPLOYEE HEALTH PLANS

5 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to:

Accept the Annual Health Benefits Report for the City’s medical, dental, and vision plans;
Approve the recommended monthly premium rates for the
City’s 2027 employee health plans; and
Authorize the City Manager or their designee to take the necessary and appropriate actions to carry out the purpose and intent of this motion.

Department: Human Resources
Attachment A - Annual Health Benefits Report
Attachment B - 2027 Health Premiums Rates
Attachments:

6.11 26-0930 APPROVE FINDINGS AND AUTHORIZE ADDITIONAL FUNDS FOR

SOLE SOURCE AGREEMENT WITH MUNICIPAL MAINTENANCE

EQUIPMENT INC FOR MUNICIPAL UTILITIES CAMERA REPAIR

SERVICES AND MATERIALS (CITYWIDE)
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Approve findings pursuant to Stockton Municipal Code section 3.68.070 which support an exception to the competitive bidding process.

Authorize additional funds to the existing five-year sole source agreement with Municipal Maintenance Equipment Inc. of Sacramento, CA, in an amount not to exceed $450,000 for camera repair services and materials (Exhibit 1 to the Resolution).

It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Municipal Utilities
Proposed Resolution
Exhibit 1
Attachments:

6.12 26-0931 APPROVE FINDINGS AND AUTHORIZE THE PURCHASE OF

MEMBRANE FILTERS AND REPLACEMENT PARTS FROM

ENVIRONMENTAL DYNAMICS INTERNATIONAL (CITYWIDE)

6 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Approve findings pursuant to Stockton Municipal Code section 3.68.070, which support an exception to the competitive bidding process.

Authorize a nine-year sole source agreement with Environmental Dynamics International of Columbia, MO, in an amount not to exceed $900,000, for the purchase of membrane filters and replacement parts for the Regional Wastewater Control Facility (Exhibit 1 to the Resolution).

It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Municipal Utilities
Proposed Resolution
Exhibit 1
Attachments:

6.13 26-0939 ADOPT A RESOLUTION OF INTENTION TO ANNEX TERRITORY TO

A MUNICIPAL IMPROVEMENT DISTRICT AND LEVY ANNUAL
STORM DRAINAGE MAINTENANCE ASSESSMENTS (DISTRICT 6)
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a Resolution of Intention to:

Provide intent to annex assessor’s parcel number 177-020-78, owned by Applied Aerospace Structures Corporation, into the Western Pacific Industrial Park Assessment District for the maintenance and operation of storm drainage improvements.

Specify that the public interest would be served by annexing the parcel into the Western Pacific Industrial Park Assessment District and levying annual assessments for the costs to maintain and operate the storm drainage improvements.

Preliminarily approve the Proposed 2027-2028 Fiscal Year Budget, the schedule of parcels and assessment amounts for the 2027-2028 fiscal year, and Amendment No. 12 to the Amended Assessment Diagram for the Western Pacific Industrial Park Storm Drainage Basin Maintenance District (Attachment A).

Set the Public Hearing date on December 8, 2026, and direct the City Clerk to mail public notice to the affected property owners by October 23, 2026, at least forty-five days before the hearing date.

It is also recommended that the City Manager be authorized to take appropriate and necessary action to carry out the purpose and intent of this resolution.

Department: Municipal Utilities

7 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Attachment A – Western Pacific Industrial Park Amendment 12 – AASC Annexation Attachment B - Boundary Map
Attachment C - Storm Drainage Basin Locations Map
Proposed Resolution
Attachments:

6.14 26-0940 ADOPT A RESOLUTION OF INTENTION TO ANNEX TERRITORY TO

A MUNICIPAL IMPROVEMENT DISTRICT AND LEVY ANNUAL
STORM DRAINAGE MAINTENANCE ASSESSMENTS (DISTRICT 6)
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a Resolution of Intention to:

Provide intent to annex PG&E assessor’s parcel number 177-280-31 into the Western Pacific Industrial Park Assessment District, for the maintenance and operation of storm drainage improvements.

Specify that the public interest would be served by annexing to the Western Pacific Industrial Park Assessment District and levying annual assessments for the costs to maintain and operate the storm drainage improvements.

Preliminarily approve the Proposed 2027-2028 Fiscal Year Budget, the schedule of parcels and assessment amounts for the 2027-2028 fiscal year, and Amendment No. 13 to the Amended Assessment Diagram for Western Pacific Industrial Park Storm Drainage Basin Maintenance District (Attachment A).

Set the Public Hearing date on December 8, 2026, and direct the City Clerk to mail public notice to the affected property owners by October 23, 2026, at least forty-five days before the hearing date.

It is also recommended that the City Manager be authorized to take appropriate and necessary action to carry out the purpose and intent of this resolution.

Department: Municipal Utilities
Attachment A - Western Pacific Industrial Park Amendment 13 – PG&E Annexation Attachment B - Boundary Map
Attachment C - Storm Drainage Basin Locations Map
Proposed Resolution
Attachments:

6.15 26-0952 APPROVE MOTION TO EXECUTE AN AGREEMENT UP TO FIVE

YEARS WITH AT&T VESTA FOR THE CITY OF STOCKTON PUBLIC

SAFETY DISPATCH CENTERS IN A TOTAL NOT-TO-EXCEED THE
AMOUNT OF $215,205 ANNUALLY

8 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to:

Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.

Delegate authority to the City Manager to negotiate and execute an agreement up to five years between the City of Stockton (City) and AT&T in an amount not to exceed $215,205 annually.

It is further recommended that the City Manager, or designee, be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.

Department: Police
Attachment A - Sole Source Letter, including QuotesAttachments:

6.16 26-0843 ADOPT RESOLUTION TO AUTHORIZE THE MORMON SLOUGH SANITARY SEWER REHABILITATION PROJECT (DISTRICT 6)
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Approve the plans and specifications for the Mormon Slough Sanitary Sewer Rehabilitation, Project No. UW18030.

Award a Construction Contract in the amount of $2,978,000 to K. J.

Woods Construction, Inc. of South San Francisco, CA, for the Mormon Slough Sanitary Sewer Rehabilitation, Project No. UW18030.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Public Works
Attachment A -Vicinity Map
Proposed Resolution
Exhibit 1 - Construction Contract - CWTA
Attachments:

6.17 26-0849 ADOPT RESOLUTION TO APPROPRIATE FUNDS AND AWARD A

PROFESSIONAL SERVICES CONTRACT FOR THE B STREET
ROUNDABOUTS PROJECT (DISTRICT 6)

9 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Appropriate funds in the amount of $51,040 from the Public Facility Fee Air Quality fund balance to the B Street Roundabouts, Project No.

WT25053/Federal Project No. HSIPL-5008(225).

Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.

Award a Professional Services Contract to Siegfried Engineering, Inc. of Stockton, CA, in the amount of $300,000 for design services, environmental documentation services, and construction support of the B Street Roundabouts, Project No. WT25053/Federal Project No.

HSIPL-5008(225).

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Public Works
Attachment A - Vicinity Map
Proposed Resolution
Exhibit 1 - Professional Services Contract
Attachments:

7. ADMINISTRATIVE MATTERS

8. UNFINISHED BUSINESS

8.1 26-1028 ADOPTED 2026-2027 STATE AND FEDERAL LEGISLATIVE

ADVOCACY PROGRAM FOLLOW-UP
Recommended Action: RECOMMENDATION
Informational only. No action to be taken.

Department: City Manager
Attachment A - Federal Accomplishments & Completed Objectives PPT - 8.1 - Follow-up to Adopted Legislative Advocacy Program Attachments:

9. HEARINGS**

10. NEW BUSINESS

10.1 26-0963 ADOPT A RESOLUTION TO ALLOCATE FUNDING FROM THE

HOMELESS HOUSING, ASSISTANCE AND PREVENTION (HHAP)

PROGRAM TO ELIGIBLE ORGANIZATIONS FOR EXISTING

HOMELESS PREVENTION SERVICE PROGRAMS, SHELTERS,

EMERGENCY HOUSING VOUCHERS AND CHILDCARE

10 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised

VOUCHERS
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Approve and allocate HHAP funding totaling $1,019,288.08 for the Housing Justice Program operated by Amelia Ann Adams Whole Life Center (AAAWLC);
Approve and allocate HHAP funding totaling $1,019,288.09 for the Housing Assistance Program operated by Family Resource Center (FRC); Approve and allocate HHAP funding totaling $5,000,000.00 for the operations of the St. Mary’s Community Services Campus (SMCS) operated by St. Mary’s Community Services;
Approve and allocate HHAP funding totaling $1,161,187.97 for the CATALYST Program operated by Children’s Home of Stockton (CHS); Approve and allocate HHAP funding totaling $1,161,187.94 for the Housing Assistance Program operated by Lutheran Social Services (LSS); Approve and allocate HHAP funding totaling $1,019,288.09 for the Childcare Voucher Program operated by Family Resource Center (FRC); Approve and allocate HHAP funding totaling $1,325,880.00 for the Emergency Housing Vouchers Program operated by the Housing Authority of San Joaquin County (HASJC);
Approve findings pursuant to Stockton Municipal Code Section 3.68.070 that support an exception to the competitive bidding process; Authorize the City Manager or designee to defund and reallocate awarded funding if the project is unable to meet the required spending obligations, or the Department of Housing and Community Development (HCD) does not approve the use of funds as detailed in this resolution. If defunded, the funding is to be reallocated to eligible projects that can meet HCD timelines and general requirements; and
Authorize the City Manager, or designee, to execute all documents, including subrecipient agreements and amendments, and take all necessary and appropriate actions to carry out the purpose and intent of the resolution.

Department: Housing, Homelessness, Events & Parking Department

11 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
Attachment A - Regional Goals
Attachment B - Resolution 2026-02-03-1205
Attachment C - Resolution 2025-07-15-1208
Attachment D - Competitive Scoring Tabulations
Attachment E - HHAP Project Recommendations - Project Descriptions Attachment F - Approved Motion 2025-08-12-1211
Attachment G - HHAP Funding and Expenditure Timelines
Proposed Resolution
PPT - 10.1 - HHAP Recommendations
Attachments:

11. CITY MANAGER'S UPDATE

12. COUNCIL COMMENTS

13. ADDITIONS TO CLOSED SESSION AGENDA

14. ANNOUNCEMENT OF CLOSED SESSION

14.1 26-1017 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Number of Cases: One
Name of Case: Jose Torres, et al. v. City of Stockton, et al. (San Joaquin County Superior Court Case No.

STK-CV-UPI-2024-15722)
This Closed Session is authorized pursuant to section 54956.9(d) (1) of the Government Code to discuss matters
pertaining to existing litigation.

Department: City Attorney

14.2 26-1059 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED

LITIGATION
Number of Cases: One
Potential action involving significant exposure to litigation pursuant to Government Code section 54956.9(d)(2).

Department: City Attorney

15. RECESS TO CLOSED SESSION

16. REPORT OF ACTION TAKEN IN CLOSED SESSION

12 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised

17. ADJOURNMENT

1. INFORMATIONAL ITEMS

1.1 26-1071 COUNCIL COMMITTEE/BOARD AND COMMISSION MINUTES Recommended Action: RECOMMENDATION
Information item only. No action required.

Department: City Clerk
CSC Special 2026-07-31.pdf
CSC Special 2026-08-10.pdf
Council Legislative 2026-07-27.pdf
Measure W 2026-02-12.pdf
Measure W 2026-05-28.pdf
PC 2026-04-23.pdf
PC 2026-05-14.pdf
Attachments:

CERTIFICATE OF POSTING
I declare, under penalty of perjury, that I am employed by the City of Stockton and that I caused this agenda to be posted in the City Hall notice case on September 25, 2026, in compliance with the Brown Act.

Bonnie Paige, CMC
Interim City Clerk
By: ________________________________

Deputy

13 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised

PUBLIC COMMENTS
*Citizens may comment on any subject within the jurisdiction of the City Council/Successor Agency to the Redevelopment Agency/Public Finance Authority/Parking Authority, including items on the Agenda. The time limit for public comment is four (4) minutes and remains at the discretion of the presiding officer and changes shall be set at the start of the meeting. Speakers must submit “Request to Speak” cards to the City Clerk, and be prepared to speak when called. No speaker cards will be received after the close of the Citizen’s Comments portion of the meeting.

**Speakers should hold comments on items listed as a Hearing until the Hearing is opened.

The City of Stockton invites public comments in multiple forms. You provide your comments by using one of these methods:

1. Email - you may email your comments to [email protected]

2. Voicemail - you can leave a voice message by dialing (209) 937-8459.

3. In-Person Comments - a) Speakers must submit "request to speak cards" to the Clerk prior to the Public Comment portion of the agenda. No speaker cards will be accepted after the close of Public Comment. b) Address only issues over which the meeting body has jurisdiction. c) The time limit for public comment is at the discretion of the presiding officer and shall be set at the start of the meeting. Donating time is not authorized. d) Your time will be displayed on the speaker podium for convenience. *All written and voicemail public comments received by the Clerk's Office for meetings scheduled between noon (12:00 PM) and 5:00 PM. Material must be submitted to the City Clerks’ Office of applicable meeting body support staff no later than 8:00 AM the day of the meeting. Meetings scheduled after 5:00 PM. Materials must be submitted to the City Clerk’s Office or applicable meeting body support staff no later than noon (12:00 PM) the day of the meeting. All comments received after that time will be forwarded as correspondence the following business day.

Written and voicemail comments will not be read into the record.

In accordance with the Americans With Disabilities Act and California Law, it is the policy of the City of Stockton to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the Office of the City Clerk located at 501 W.Weber Ave, Stockton, California 95202 during normal business hours or by calling (209) 937-8458, at least 5 days in advance of the hearing/meeting. Advance notification within this guideline will enable the City/Agency to make reasonable arrangements to ensure accessibility.

Materials related to an item on this agenda submitted to City Council after distribution of the agenda packet are available for public inspection in the City Clerk's Office at 501 W.Weber Ave, Stockton, California 95202, during normal business hours. Such documents are also available on the City's website at www.stocktongov.com subject to staff's ability to post the documents before the meeting.

CHALLENGING CITY DECISIONS: The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Stockton, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

Council Policy Manual Chapter 4.07 DECORUM
§ 4.07.010 Policy.

14 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
1) COUNCILMEMBERS
The City Council will practice civility and decorum in their discussions and debate. Councilmembers will value each other's time and will preserve order and decorum. A member shall neither, by conversation or otherwise, delay or interrupt the proceedings of the Council, use personal, impertinent or slanderous remarks, nor disturb any other member while that member is speaking or refuse to obey the orders of the presiding officer or the Council, except as otherwise provided herein.

A) All Councilmembers have the opportunity to speak and agree to disagree but no Councilmember shall speak twice on any given subject unless all other Councilmembers have been given the opportunity to speak.

B) The Mayor has the affirmative duty to maintain order. The City Council will honor the role of the Mayor in maintaining order. If a Councilmember believes the Mayor is not maintaining order, the Councilmember may move that the Vice-Mayor enforce the rules of decorum and otherwise maintain order. If that motion receives a second and is approved by a Council majority, the Vice-Mayor shall enforce the rules of decorum and maintain order.

C) Any Councilmember who violates the rules repeatedly shall be sanctioned by the City Council, including, but not limited to, barring the Councilmember from further participation (other than voting) on the subject. 2) PERSONS ADDRESSING THE CITY COUNCIL
Persons addressing the Council shall not make personal, impertinent, unduly repetitive, slanderous or profane remarks to the Council, any member of the Council, City staff or the general public, nor utter loud, threatening, personal or abusive language, nor engage in any other conduct that disrupts, disturbs or otherwise unreasonably impedes the orderly conduct of the Council meeting. Any person who makes such remarks, who utters loud, threatening, personal or abusive language, who is unduly repetitious or engages in extended discussion of irrelevancies, or who engages in any disorderly conduct that disrupts, disturbs or otherwise unreasonably impedes the orderly conduct of any Council meeting shall, at the discretion of the presiding officer or a majority of the Council, be barred from further audience before the Council during that meeting. 3) ENFORCEMENT
The rules of decorum set forth above shall be enforced in the following manner:

Warning. The presiding officer shall request that a person who is breaching the rules of decorum be orderly and silent. If, after receiving a warning from the presiding officer, a person persists in disturbing the meeting, the presiding officer shall order him or her to leave the Council meeting. If such person does not remove himself or herself, the presiding officer may order any law enforcement officer who is on duty at the meeting to remove that person from the Council Chambers.
4) RULES PERTAINING TO SIGNS, OBJECTS, SYMBOLIC MATERIALS, AND FIRE SAFETY WITHIN THE

COUNCIL CHAMBERS DURING COUNCIL MEETINGS
A) Objects and symbolic materials such as signs which do not have sticks attached or otherwise create any fire or safety hazards will be allowed within the Council Chamber during Council meetings provided that they are not so large as to infringe upon the space of those in adjacent areas, and are no wider on their longest side than the audience chairs.

B) Persons with objects and symbolic materials such as signs must remain seated when displaying them except when making an oral presentation to the Council and must not raise them above shoulder level or otherwise use them to obstruct vision or passage or disturb the conduct of the Council meeting. Such materials may not be placed on or against the walls, doors or furniture or in the aisles.

C) Exits shall not be obstructed in any manner. Obstructions, including storage, shall not be placed in aisles or other exit ways. Hand carried items must be stored so that such items do not inhibit passage in aisles or other exit ways.

D) Exit ways shall not be used in any way that will present a hazardous condition.

E) Overcrowding and admittance of persons beyond the approved capacity of a place of assembly are prohibited.

F) The Fire Marshal may establish designated areas for media equipment. 5) PERSONS AUTHORIZED WITHIN RAIL

15 September 29, 2026City Council and Concurrent
Authorities
Meeting Agenda - - Revised
No person except City officials and City staff shall be permitted within the rail in front of the City Council dais without the express consent of the presiding officer.

16 City of Stockton
Legislation Text
File #: 26-1075, Version: 1

PRESENTATION BY THE GREATER STOCKTON CHAMBER OF COMMERCE REGARDING THE

STAART PROGRAM

RECOMMENDATION
Presentation only. No action to be taken.

Summary
Staff from the Greater Stockton Chamber of Commerce will provide an informal presentation regarding the Standing Together Against All Regional Theft Program (STAART).

City of Stockton Printed on 9/25/2026Page 1 of 1
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17 City of Stockton
Legislation Text
File #: 26-1063, Version: 1
PROCLAMATION: AMERICAN PHARMACISTS MONTH
City of Stockton Printed on 9/25/2026Page 1 of 1
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18 City of Stockton
Legislation Text
File #: 26-1064, Version: 1
PROCLAMATION: CALIFORNIA WATER SERVICE’S 100 YEARS OF SERVICE City of Stockton Printed on 9/25/2026Page 1 of 1
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19 City of Stockton
Legislation Text
File #: 26-0621, Version: 1
MEASURE A CITIZENS’ ADVISORY COMMITTEE ANNUAL REPORT (JULY 1, 2018 - JUNE 30, 2024)

RECOMMENDATION
It is recommended that the City Council approve a motion to accept the Measure A Annual Reports for July 1, 2018, through June 30, 2024.

Summary
The Measure A Citizens’ Advisory Committee was established to provide independent oversight of Measure A revenues and expenditures pursuant to the City of Stockton Measure Advisory Committee Charter (Resolution No. 2013-10-08-1505) and adopted Bylaws.

The Committee is responsible for reviewing financial activity associated with Measure A (Public Safety Transaction and Use Tax) and reporting findings to the City Council on a periodic basis to ensure transparency and accountability in the use of voter-approved funds dedicated to public safety services.

The attached Annual Report covers the period July 1, 2018, through June 30, 2024, and includes:
• Summary of Measure A revenues over the reporting period • Expenditure allocations supporting Police and Fire services • Programmatic and operational uses of Measure A funding • Staffing and service levels supported by Measure A resources • Long-term fiscal trends impacting Measure A revenues, including sales tax performance • Committee observations regarding the administration and use of Measure A funds This multi-year report provides a comprehensive review of Measure A financial activity and related public safety investments over the six-year reporting period.

Background
Stockton voters approved Measure A on November 5, 2013, establishing a ¾-cent general transaction and use tax effective April 1, 2014. At the same election, voters approved Measure B, an advisory measure recommending that 65% of Measure A funds be used for law enforcement and crime prevention services through the implementation of the Marshall Plan, and that the remaining 35% be used for the City’s efforts to exit bankruptcy and support City services.

Ordinance 2013-07-09-1601 established a seven-member Citizens’ Advisory Committee appointed by the City Council. The Committee reviews expenditures of the additional General Fund revenues City of Stockton Printed on 9/24/2026Page 1 of 2
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20 File #: 26-0621, Version: 1
generated by Measure A. The specific requirements for this Annual Report are outlined in detail below.

As part of the City’s commitment to accountability and transparency regarding the expenditures of the Measure A tax proceeds, the City adopted Resolution No. 2014-10-08-1505 establishing the Committee Charter. The Committee subsequently adopted By-Laws establishing its objectives and duties. A principal responsibility outlined in Section 2.2.3 of the Charter and Section 9 of the By-Laws is the preparation and adoption of an Annual Report to be presented to the City Council regarding compliance with the purposes established in Measures A and B.

Charter section 2.2.3 reads as follows:
“The Committee shall present to the City Council, in public session, an annual written report, which shall include the following:
a) A statement indicating whether the City is in compliance with the purposes set forth in the applicable ballot measures with respect to the tax proceeds; b) A review of tax revenues and expenditures to verify that amounts collected were expended for the purposes set forth in the applicable ballot measure with respect to the tax proceeds; c) A review of the City’s progress in implementing the recommendation of the Marshall Plan on Crime, including the hiring of 120 additional police officers and other investments; and d) A summary of the Committee’s Proceedings and activities for the Preceding Year.” The Committee approved the FY 2017-18 Annual Report on October 16, 2019, and it was presented to the City Council on November 5, 2019.

The Committee elected to form a subcommittee to draft future annual reports using informational materials provided by the City and auditors. At the March 20, 2019, and June 11, 2021, Committee meetings, members appointed a subcommittee to prepare annual reports for FY 2018-19 and FY 2019-20. Since then, the subcommittee has submitted no draft reports, and additional fiscal year reports are now overdue.

Present Situation
At its meeting on April 30, 2025, the Measure A Citizens’ Advisory Committee approved Motion No. 2025-04-30-0403-01 adopting the Measure A Annual Report covering the period July 1, 2018, through June 30, 2024.

The Committee’s approval reflects its review and concurrence with the report's contents prior to submission to the City Council.

Financial Summary
There is no fiscal impact associated with the receipt and filing of the Annual Report. All financial information contained within the report reflects previously adopted budgets and actual expenditures during the reporting period.

Attachment A - Adopted Annual Report July 1, 2018 through June 30, 2024 City of Stockton Printed on 9/24/2026Page 2 of 2
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21 MEASURE A – DRAFT 3/29/25

ANNUAL REPORTS
JULY 1, 2018 TO JUNE 30, 2024
Given delays in preparation of the customary annual reports of the city of Stockton (City) Measure A Committee, this report combines information for the periods from July 1, 2018 to June 30, 2024.

Introduction.

The Measure A Committee is the single, statutory oversight body for the Measure A tax. On November 5, 2013 Stockton voters approved both Measures A and B, The Measure A tax became effective on April 1, 2014 with an additional three quarter (3/4) cent sales tax. The Measure A ordinance provided for the establishment of the Measure A Committee to “review the expenditures of revenues generated by the tax and to make recommendations to the City Council regarding those expenditures.”
We offer our observations and recommendations about accounting and audits, and police staffing at the beginning of this report given the critical importance of those matters. We then provide additional background information and other observations and recommendations. We have provided links to key documents throughout this report.

Accounting and Audits.

Below is a table of the Measure A revenue collected and reported expenditures. These amounts are taken from financial statements provided by the City. Those financial statements were not prepared in accordance with Generally Accepted Accounting Principles (GAAP). The financial statements were not audited in accordance with Generally Accepted Auditing Standards (GAAS) and Generally Accepted Government Auditing Standards (GAGAS).

EXPENDITURES

REVENUE SWORN TOTAL POLICE TOTAL UNACCOUNTED UNACCOUNTED FYE 6/30:
2014 6,573,956 0 5,216 68,720 6,505,236 99.0%
2015 27,811,587 1,718,905 4,857,390 5,551,998 22,259,589 80.0% 2016 29,259,106 6,247,971 12,255,785 13,423,658 15,835,448 54.1% 2017 30,048,605 11,077,640 17,433,483 18,441,314 11,607,291 38.6% 2018 31,735,727 15,907,750 21,600,708 22,649,210 9,086,517 28.6% 2019 34,570,561 17,552,945 23,347,964 24,385,739 10,184,822 29.5% 2020 34,329,713 18,424,245 24,925,978 26,073,828 8,255,885 24.0% 2021 40,810,516 19,316,382 26,248,290 27,374,026 13,436,490 32.9% 2022 45,412,129 18,420,634 25,408,688 26,604,773 18,807,356 41.4% 2023 49,703,488 22,471,737 30,750,171 32,054,399 17,649,089 35.5% TOTALS 330,255,388 131,138,209 186,833,673 196,627,665 133,627,723 40.5% 100.0% 39.7% 56.6% 59.5% 40.5%
EXPENDITURES EXCLUDES OTHER CITY SERVICES AND MISSION CRITICAL PROJECTS. THE CITY ADMITTED IT DID NOT HAVE SUPPORT, AMOUNTS NOT EXPENDED, AND NOT LISTED AS A MEASURE B ELIGIBLE COSTS. 2014 192,000
2015 8,050,006
2016 6,297,101
2017 407,367
-1-
April 30, 2025 Measure A meeting, the committee unanimously adopted (Motion 2025-04-30-0403-01) the Annual Report July 1, 2018, to June 30, 2024, to send to the City Council.

ATTACHMENT A
22 The amount of unaccounted Measure A funds is profound, over 40% of the collected tax. The City has failed to account specifically for these funds as either (1) accumulated as an unexpended fund balance or (2) as expended but not reported on the Measure A financial statements. [link] Consider the proper financial statements of Measure M. [link]. The provisions in the Measure M ordinance for audits and accounting are exactly the same as Measure A. Measure M has a full set of GAAP compliant financial statements, and audits conducted under GAAS and GAGAS. The surplus over expenditures is accumulated in a fund balance account. There is an opinion on the financial statements. There are notes to the financial statements, a report on internal control, and supplementary information that shows detailed information about the budget including original budget, final budget, actual and variance. The cost of the Measure M audit was listed as $5,000.

The Measure A table above has no entries for the year end June 30, 2024. The Committee, at its March 27, 2025 meeting was provided a report: General Fund Measures A and B Summary” which reflected revenue of $46,214,556 and a residual line item: General Fund Services & Reserves $7,790,539. This report was not considered at the meeting because staff scheduling problems resulted in premature adjournment. Furthermore, we have no evidence the amounts have been subject to audit or any attest procedures, and the financial statement clearly has not been prepared in compliance with GAAP.

Like last year, the City’s financial reports and audits are delinquent. In a January 27, 2025 posting on the Electronic Municipal Market Access (EMMA) website, the City disclosed it “will fail to meet its obligation to post audited financial statements” by the February 1 deadline. The failure “is due to the implementation of the City’s finance and payroll reporting system” and staff turnover.

The prior year reports were delinquent. The City violated a number of loan covenants. The June 2023 audit reports included findings of material weakness in internal control. There was a $38.5 million prior period adjustment, i.e., error in the prior audited financial statements. The material errors and internal control deficiencies were due to problems in the City’s accounting system.

Given the problems with the citywide accounting, it is more important than ever to have proper, complete Measure A accounting reports and audits. Below we recite some historic concerns with Measure A accounting and audits, and the efforts of the Committee and the City to address those concerns.

The Measure A Committee has called for proper accounting and audits since its first annual report that was released in March 2016:

Independent Audit: In the interest of transparency and proper oversight, on May 19, 2015 the Committee sent a recommendation to City Council to arrange an outside audit of the Measure A funds under generally accepted auditing standards, separate from the annual CAFR, to be performed by an auditing firm independent of city staff and persons currently hired by the city. The recommendation was not supported by the City Manager's office.

The Committee has passed motions urging the City Council to arrange for the preparation of financial statements compliant with GAAP and audits under GAAS and GAGAS. -2-

ATTACHMENT A
23 Every annual report has called for preparation of complete and proper financial statements and audits.

FY 2014-15 released on March 3, 2016
FY 2015-16 released on September 20, 2017
FY 2016-17 released February 28, 2018
FY 2017-18 released August 23, 2019
The Committee further passed motions to call for complete and proper financial statements and audits.

Motion 2015-09-24-0301 adopted May 19, 2015.

Motion 2022-10-03-0405 adopted October 3, 2022.

Instead of honoring the request for a proper audit of the financial statements of Measure A, the City has substituted other accounting services. It has arranged engagements under Standards for Attest Engagements i.e., Agreed Upon Procedures. It has arranged for a Performance Audit by the City’s Internal Auditor.

While those services provide some useful information, those are not financial statement audits, also known in professional parlance as “examinations.” We need audits of the financial statements where the financial statements are prepared under GAAP and audits are conducted under GAAS and GAGAS.

Proper accounting and audits would follow the form of the Measure M financial statements and audits. Again, section 20 of the Measure A ordinance reads exactly the same as the Measure M ordinance.

Section 20. Audit and Review. The proceeds of the tax imposed by this Ordinance, as well as the expenditure thereof, shall be audited annually by an independent accounting firm. The City Council shall discuss the results of such audit at a meeting of the City Council that is open to the public. The report of such audit shall be posted on the City's website.

The City claimed it cannot prepare Measure A financial statements and arrange for traditional audits. Consider the stated reasons.

July 1, 2015, statement from the City Manager:

External Audit of Measure A: Measure A is not a separate fund, it is a part of the General Fund, and is audited as part of the Comprehensive Annual Financial Report (CAFR). The entire General Fund is audited as part of the CAFR. There is not a separate display or specific audit component because the General Fund collected under Measure A is not designated to a specific purpose or fund (even though it is as a practical matter). To manage or audit Measure A differently by treating it as a special tax could call into question the legal basis for its approval.

October 13, 2022, statement by Ryan Meyerhoff, Deputy City Attorney The issue staff raised is that we cannot perform a Measure M-style audit on just a portion of the General Fund, where Measure A funds reside. Measure M, unlike A, is a special -3-

ATTACHMENT A
24 tax and has its funds segregated. If the City were to segregate Measure A funds in a similar manner to facilitate a Measure M-style audit we may invite legal challenge that Measure A is a special tax.

That is not a credible position of the City. We do not know of any example where a California sales tax was invalidated by having an audit, especially an audit required under the enabling ordinance.

Members of the Committee and the public have asked over and over again for a citation to any California Court case where a tax was overturned by having an audit. A member provided the City guidance and authority from the AICPA’s State and Local Accounting and Audit Guide on such audits of subfunds of a general fund. The City’s general ledger had many subfund accounts classified as part of the general fund including a subfund for Measure A (e.g., subfund 14). It had a subfund 13 library, 44 recreational services, 45 boat lunching, 86 entertainment service fund. Those funds have “been segregated” in the general ledger. Such fund accounting and structure is common in government and nongovernment accounting.

At the very least, the City should have made clear in the Measure A ordinance that there would be no audit of the Measure A financial statements. That way, voters would not have been misled.

If the City persists in maintaining this position, it seems the City is open to substantial risk of the tax being overturned because of what seems a material misstatement about audits and oversight in the ballot language.

None of the Agreed Upon Procedures reports or the Performance Audit contain a discussion, analysis or evaluation of the statement of the City’s position. At an early Measure A Committee meeting, staff said it would ask for a “white paper” from outside experts to offer advice on how to prepare the required financial statements and conduct an audit of the Measure A fund. We see no evidence that the City followed up on that opportunity.

The Performance Audit was prepared by the City’s Internal Auditor and presented at the November 20, 2023, meeting of the Measure A Committee. [Link.] The report contains no financial statements. There is no opinion on financial statements. There is no mention or explanation of the unaccounted for $133,627,723 in Measure A Funds.

The City’s Internal Auditor spoke at the Measure A Committee September 29, 2016 meeting.

Per the minutes of that meeting:

4.4 16-3052 OVERVIEW OF THE CITY'S INTERNAL AUDITOR
Mark Steranka, Partner, Moss Adams LLP - provided the report and responded to questions from Committee members with additional comments from Chief Financial Officer Matt Paulin. Mark Steranka remarked during his presentation that the goal of an Internal Auditor is not to find things wrong, but to help Cities operate better. In response to questions from Member Leiba regarding what advice he could give the Committee to discharge their duties under the Ordinance and Charter of Measure A, Mr. Steranka stated that the Committee can do its best to understand how dollars are coming in and take a leap of faith that monies are flowing.

Accordingly, there was concern that the City’s Internal Auditor does not function with the independence, professional skepticism and focus that would assist the Measure A Committee. -4-

ATTACHMENT A
25 The Measure A Committee has repeatedly called for an audit by an outside firm not connected to the City.

At the September 19, 2018 Measure A Committee meeting, the CFO said the City was able purchase its New City Hall because of Measure A funds.

The reason why we were able to purchase the waterfront office towers for cash, that is going to be our new permanent City Hall, is because of the money that we saved in no small part due to Measure A.

By “saved,” the CFO refers to the substantial increase in the general fund balance due to retention of Measure A funds. At June 30, 2023, the last date available, the general fund balance had increased to $212.4 million.

The CFO later clarified that “it was not completely Measure A funds” used to purchase and renovate the New City Hall. The cost, and potential use of Measure A funds, for the New City Hall could reach $100 million.

There is no accounting or even discussion of the use of Measure A funds for the New City Hall in the Measure A Performance Audit or Measure A Agreed Upon Procedures engagements. We see little information in the annual reports about the New City Hall project that seems to be substantially funded with Measure A tax proceeds.

Consider the June 30, 2015 Measure A financial reports that included a line item under Uses and Expenditures: Information Technology Projects $5,236,000. Members of the Measure A Committee were concerned about this and other apparent, claimed uses of Measure A funds listed on the financial reports. A member had to make a request under the California Public Records Act to finally determine this amount and other large “Uses and Expenditures” were not in fact expended by the City. Consider the explanation of the Assistant City Manager.

June 19, 2018 statement by the Assistant City Manager as reported by Record Columnist Michael Fitzgerald:

Christian Clegg said of that 2015 expenditure you [Ned Leiba - member of Measure A Committee] overlined, saying the city didn't actually spend that money, that according to government accounting standards, if the money is moved from the General Fund into a line item, it is considered spent, even if it has not yet.

That assertion is not credible. A member of the Committee spoke with Governmental Accounting Standards Board senior technical managers. The member provided contact information to the City so staff could correct their misunderstandings. The application of the City’s expressed government accounting standard would result in materially misstated Measure A financial reports, to say nothing of the other financial reports produced by the City.

None of the Agreed Upon Procedures reports or the Performance Audit contain a discussion or analysis of the City’s profoundly incorrect understanding of government accounting standards.

What was the effect of this accounting treatment on financial statements of Measure A? The engagements commissioned by the City are silent.
-5-

ATTACHMENT A
26 The accounting and audit deficiencies appear profound. We call again, in the strongest terms, for the City to arrange for proper accounting and audits of Measure A funds. It is impossible for the Measure A Committee to discharge its duties without reliable, complete financial information.

Police Staffing.

The public was promised that Measure A funds would result in an increase of 120 sworn officers.

The base was 365 and thus the promised goal was 485 sworn officers. As reflected in the table below, the City has failed to meet their promised staffing level. The number of sworn officers is only 361 as of June 30, 2024. The City is below the 365 base number of sworn officers at the beginning of the Measure A funding period.
04/01/14 BASE 365
04/01/14 BASE PLUS 120 PROMISED 485
Percent
Source: TOTAL VS 485 VS 365 VS +120
06/30/16 CAFR 411 -74 46 38.33%
06/30/17 CAFR 445 -40 80 66.67%
06/30/18 CAFR 470 -15 105 87.50%
06/30/19 CAFR 469 -16 104 86.67%
06/30/20 CAFR 432 -53 67 55.83%
06/30/21 ACFR 433 -52 68 56.67%
06/30/22 ACFR 405 -80 40 33.33%
06/30/23 ACFR 352 -133 -13 -10.83%
06/30/24 Measure A Meeting 11/21/24 361 -124 -4 -3.33%
CAFR: Comprehensive Annual Financial Report of the City ACFR: Annual Comprehensive Financial Report of the City.

Measure A Committee: Measure A Committee meeting.

The failure of the City to meet its promised staffing level is profoundly alarming. The 2023 action of the City to reduce the target is not availing to change the promised staffing when Measure A was approved by the voters.

While the Measure A Committee appreciates the efforts of the Stockton Police Department (SPD) to hire and retain officers, it has failed to build the numbers promised. Those additions to police staff have been budgeted year after year. We need to understand the reasons for the failure to reach the promised goals. It seems it is due to failure to retain veteran officers.

The Measure A Committee, in its first report March 3, 2016, stated:

We recommend independent, professionally conducted interviews of exited officers to see if the critical issues of retention and attrition can be better understood.

We strongly recommend the City arrange for a professional, blinded survey of police officer who have separated from the Department over the last 5 years, to determine the reasons for failure to retain officers.

Background and History.

On July 9, 2013, the Stockton City Council adopted Resolution 2013-07-09-1601 calling for a special election establishing the ¾cent sales tax contingent upon voter consideration and -6-
ATTACHMENT A 27
approval at the November 5, 2013, election.

On October 8, 2013, the Stockton City Council adopted Resolution 2013-10-08-1505 to clarify the intent of authorizing the formation of a Citizens’ Oversight Committee. The Measure A Committee was to be comprised of seven City Council appointees tasked with the oversight of Measure A revenues and expenditures.

Responsibilities include a review of annual audits conducted by an independent accounting firm, measuring economic recovery to determine when the tax should end, producing annual reports, holding public meetings and making recommendations to the City Council.

On November 5, 2013, Stockton voters approved both Measures A and B authorized under Ordinance 2013-07-09-1601.

Measure A is a transaction and use (sales) tax initiative introduced by the City of Stockton. A key component in the campaign leading up to the ballot measure was the promise of an effective citizens’ oversight committee.

April 1, 2014, with an additional three quarter (3/4) cent sales tax, the sales tax within the City of Stockton increased to nine percent (9%). The tax was set to expire by its own terms in ten years, unless extended by the City Council. The City Council on December 5, 2023, extended the tax for another 10 years. It is not scheduled to sunset until March 2034.

The ballot measure provided:

Law Enforcement, Crime Prevention, and Other Essential City Services Measure. To pay for law enforcement and crime prevention services such as those described in Stockton's Marshall Plan on Crime, to help end the bankruptcy and restore other City services; and provided it shall sunset in ten years or when economic recovery occurs, a Citizen's Oversight Committee reports on the use of proceeds, and independent audits are done annually shall Ordinance 2013-07-09-1601 be adopted to impose a 3/4 cent transaction and use (sales) tax?
Measure A was accompanied by Measure B, a non-binding advisory measure to communicate the priorities and will of the people. The voter approved Measure B called for 65 percent of the new revenues to be used for law enforcement and crime prevention services such as those described in the City’s Marshall Plan on Crime. This had three components. First to hire 120 additional sworn officers as well as civilian staff. Second, fund an Office of Violence Prevention and implement Neighborhood Blitz Teams. Third, the remaining 35 percent of the proceeds was to be used only to pay for the City’s efforts to end the bankruptcy and for services to residents, businesses, and property owners.

Measure B as it appeared on the November 5, 2013 Ballot:

Advisory Measure. If Measure A is approved by the voters, shall (I) 65% of its proceeds be used only to pay for law enforcement and crime prevention services in the City such as those described in the City's Marshall Plan on Crime and (ii) 35% of its proceeds be used only to pay for the City's efforts to end the bankruptcy and for services to residents, businesses, and property owners?
-7-
ATTACHMENT A 28
Measure A passed with a yes vote of 51.85%. That constituted an affirmative vote of 11% of the city’s population. Measure B passed with a yes vote of 59.27%.

The City’s bankruptcy case ended February 10, 2015, with approval of its plan. The Committee cannot determine what Measure A funds have been used “to end the bankruptcy.” Funding a New City Hall that might cost $100 million would not properly be considered an expenditure to “end the bankruptcy” nor would it prosaically be considered services to “residents, businesses and property owners.”
At the June 6, 2024, Measure A meeting, staff as the last item included material on a Measure A Guidelines Expenditure Plan. A schedule listed the use of residual Measure A funds: $5,927,000 to pay the annual debt due to Assured Guaranty, $3,000,000 Victory Park Pool, and $286,927 Fire Station No. 7. No details, analysis, evaluation or alternatives were presented or discussed.

This was an “information only” item. The Committee did not adopt or endorse this Plan, indeed, under the agenda prepared by staff, the Measure A Committee could take no action on this item.

We oppose this Plan. The Committee should be given an opportunity for substantive deliberation on all significant uses of Measure A funds. The payments to Assured Guarantee in 2025 and thereafter will not be used to “end the bankruptcy” that was over in February 2015.

Furthermore, there must be consideration of alternatives. For example, the Assured Guarantee debt would have been paid in full if a fraction of the Measure A funds used for the New City Hall were used to pay off that debt. This Plan seems to be an unfortunate response to the repeated calls by the Committee for proper and complete accounting and audits, and the involvement of the Committee in budgeting of Measure A funds.

Measure A Committee Report Contents.

The charter provides that the Committee must meet at least annually and make recommendations to the City Council regarding Measure A revenues and expenditures. The report shall include the following relevant elements:

1. A statement indicating whether the City is in compliance with the purposes set forth in the applicable ballot measures with respect to the tax proceeds.

2. A review of tax revenues and expenditures to verify that amounts collected were expended for the purposes set forth in the applicable ballot measure with respect to the tax proceeds.

3. A review of the City’ progress in implementing the recommendation of the Marshall Plan on Crime, including the hiring of 120 additional police officers and other investments.

4. A summary of the Committee’ proceedings and activities.

These elements have been addressed in this report.

For item 1-2, the Committee cannot affirm those statements.

For item 3, as discussed above, the City is regressing on its goal of hiring 120 new officers.

Item 4, a summary of the committee’s members and activities are further discussed below. -8-

ATTACHMENT A
29 Members of the Measure A Committee during the period July 1, 2018, through June 30, 2024:

Anderson, Joni
Bartman, Susan
Cox, Julia
Gonzalez, Ernesto
Hake, Blair
Johnson, Joseph
Klor, Hank.

Kosier, Andrea
Miller, Karl
Mannor, Anthony
Offield, Daniel
Ramos, Carmen
Rivas, Destiny
Smith, Eric
Vigil, Douglas
Williams, Dwight
-9-

ATTACHMENT A
30 The Measure A Committee held meetings as reflected in the table below.

TABLE OF MEASURE A COMMITTEE MEETINGS
Meeting Members Attending Notes
September 19, 2018 Anderson
Bartman Vice Chair
Cox
Gonzalez
Johnson
Miller
Williams Chair.

November 28, 2018 Anderson
Bartman Vice Chair - absent
Cox
Gonzalez
Johnson
Miller
Williams Chair
March 20, 2019 Anderson
Gonzalez
Mannor
Miller
Ramos
Williams Chair
June 5, 2019 Anderson
Gonzalez
Johnson.

Mannor
Miller
Ramos - absent
Williams Chair
September 25, 2019 Anderson
Gonzalez - absent excused.

Johnson - absent excused
Mannor
Miller
Ramos
Williams Chair
October 16, 2019 Anderson
Gonzalez Vice Chair
Johnson
Mannor - absent
Miller
Ramos
Williams Chair
Charter 5-year review, 2017-18
Annual Report
-10-

ATTACHMENT A
31 Meeting Members Attending Notes
January 23, 2020 Anderson
Gonzalez Vice Chair
Johnson
Mannor
Miller - absent
Ramos
Williams Chair
May 27, 2020 Anderson
Gonzalez Vice Chair - absent
Johnson
Mannor
Ramos - absent
Williams Chair
September 9, 2020 Anderson
Gonzalez Vice Chair
Johnson
Mannor
Ramos
Williams Chair
January 28, 2021 Anderson - absent
Gonzalez Vice Chair
Johnson
Mannor
Ramos - absent
Williams Chair
June 11, 2021 Anderson
Gonzalez Chair
Hake
Kosier - absence excused.

Mannor
November 17, 2021 Anderson - absent
Gonzalez Chair
Hake
Kosier
Mannor Vice Chair
Smith
April 25, 2022 Anderson
Gonzalez Chair
Hake - absent
Kosier
Mannor Vice Chair - absent
Smith
-11-

ATTACHMENT A
32 Meeting Members Attending Notes
June 6, 2022 Anderson
Gonzalez Chair
Hake - absent
Kosier
Mannor Vice Chair
Smith - absent
October 3, 2022 Anderson
Gonzalez Chair
Hake - absent
Kosier
Mannor Vice Chair
Smith - absent
March 6, 2023 cancelled lack of quorum
May 15, 2023 Gonzalez Chair
Hake
Kosier - absent
Mannor Vice Chair
Rivas
Smith - absent
November 13, 2023 Gonzalez Chair
Hake - absent
Klor
Mannor Vice Chair
Rivas - absent
Smith - absent
Vigil
November 20, 2023 Gonzalez Chair
Hake
Klor
Mannor Vice Chair
Rivas
Vigil - absent
March 28, 2024 cancelled lack of quorum
April 29, 2024 cancelled lack of quorum
June 6, 2024 Gonzalez Chair
Hake
Klor
Mannor Vice Chair
Offield - absence excused.

Rivas
Vigil
-12-

ATTACHMENT A
33 Meeting Members Attending Notes
November 21, 2024 Gonzalez Chair
Hake
Klor
Mannor Vice Chair
Offield
Rivas - absent
Vigil - absent
At each meeting, there was a presentation by the Stockton Police Department (SPD), the Office of Violence Prevention (OVP) and Administrative Services. The presentations provided information on SPD staffing, crime statistics and the latest developments. OVP presented information on the Peacekeeper program to address gun violence in our community. Administrative services provided quarterly financial reports. Those reports were not complete presentations and not consistent with annual reporting formats and customary accounting standards.

The efforts of SPD, OVP and others within the City have been extensive, genuine, and laudable.

Clearly the efforts of SPD and OVP have reduced crime, but it is difficult to measure the beneficial effects and to develop a clear determination of cost and benefits. Crime is high.

Officer staffing levels by all measures are too low.

The Measure A Committee is looking for clear, quantifiable trends to show the benefits of the tax.

Agendas and Minutes are posted on the city’s web site:
www.stocktongov.com/government/departments/manager/pubMeasureA.html www.stocktongov.com/government/oMeetings/boardComMeetings.html Prior Annual Reports.

Most of the observations and recommendations in the prior four reports remain relevant and cogent. Please consult those reports for detailed information. Link. We recite below some statements of observations and recommendations from past annual reports that we believe have specific relevancy to current concerns.

1. FY 2014-15 released on March 3, 2016:

Independent Audit: In the interest of transparency and proper oversight, on May 19, 2015 the Committee sent a recommendation to City Council to arrange an outside audit of the Measure A funds under generally accepted auditing standards, separate from the annual CAFR, to be performed by an auditing firm independent of city staff and persons currently hired by the city. The recommendation was not supported by the City Manager's office.

However, the Council Audit Committee acted favorably to the recommendation, and it was later approved by the City Council. The audit is scheduled for spring 2016 and it will be addressed in the next annual report.

No audit was performed.
-13-
ATTACHMENT A 34

2. FY 2015-16 released on September 20, 2017.

There was no audit but rather an agreed upon procedures engagement.

Recommendation: The committee continues to recommend that a full audit be made of the Measure A funds on an annual basis pursuant to the ordinance and the expectations of the voters.

3. FY 2016-17 released February 28, 2018.

Police Staffing: The assurances set forth in the Implementation Plan for a quantified level of police staffing has not been met. The residents of Stockton were told that, with Measure A revenues, at least 120 additional sworn officers would be employed by the end of Fiscal Year 2016-17. It did not happen. Prior to Measure A, Stockton had 365 budgeted authorized positions for sworn officers. This is the benchmark from which to measure the Implementation Plan of 120 additional officers funded by Measure A officers in the three years. . . . As of June 30, 2017, there were a total of 447 [445 per the CAFR] positions filled . . . This is far short of the established goal of 485.

Audits: Recommendation: The committee continues to recommend that a full audit be made of the Measure A funds on an annual basis pursuant to the ordinance and the expectation of the voters.

4. FY 2017-18 released August 23, 2019.

Staffing. Prior to Measure A, in June 2014, Stockton had 365 authorized positions for sworn officers. This is the benchmark to measure the success of the Implementation Plan of 120 additional officers funded by the Measure A Tax. Once again, the Committee must point out, the assurances set forth in the Implementation Plan for a quantified level of police staffing has not been met . . . . On June 30, 2018 filled positions for sworn officers was at 470. Measure A funded positions had a net gain of 16 sworn officers. This was still 15 positions short of the set benchmark of 485.

Ineffective and costly hiring efforts: To the best of our estimates, when you factor the number of officers lost by the $54,000 hiring cost, the City has spent approximately $10,962,000 in hiring costs that could have been used on other priorities.

Bankruptcy Recovery. $9.2 million dollars was spent in FY 2017/2018 on bankruptcy recovery. We were provided no other details or breakdown of these costs. Therefore, we are unable to report further or make any recommendations.

Financial reports and audits. Recommendation: We continue to request that the Revenue and Expenditures of Measure A funds be audited annually by an independent auditor.

Which is clearly stated in Section 20 Audit and Review. . . . This process has not been occurring in a manner designated in the By Laws. Thus, the Committee continues to request the independent audit of Measure A Tax proceeds and expenditures be completed and that the By Law’s be followed as set forth in the Charter.

Failure of the city to provide information and accommodate its oversight function of the committee. Mission and Purpose: The mission of a strong and independent Committee is to oversee the expenditure of revenues generated by Measure A and to make -14-

ATTACHMENT A
35 recommendations to the City Council regarding those expenditures as set forth in Measure B. The Committee was not involved in the pre-budget process and therefore unable to make recommendations to the City Council.

The Committee shall conduct an annual meeting with the City/Independent auditor and City staff, each year within 60 days following the audit of the prior fiscal year’s books.

The purpose of the annual meeting is for Committee members to review the expenditures of Measure A proceeds and the audits, as attested by the City/Independent financial auditor, to ensure that tax proceeds are expended for the purpose set forth in the applicable Measure A & B ballot language. The annual meeting will also include the task of adopting an annual report of their findings for presentation to the City Council.

In accordance with the Charter, The Committee will meet at least one additional time to review budgets for Measure A revenues and Measure B (public safety) expenditures before the City Council’s public sessions on the upcoming annual budget.

Additional Observations and Recommendations.

1. The Chair and Vice Chair should work on the agenda with staff well before the scheduled meetings.

2. The quarterly financial reports provided by the City should be in the same format with proper cut-off dates like the annual financial statements.

3. The Measure A Committee, because it is the only statutory oversight committee, should be involved in the selection of outside auditors and have essential communications with the outside auditors.

4. Once every two years, the Measure A Committee should have a workshop to hear from outside experts in police staffing, tactics, crime suppression, and relevant topics in government accounting and auditing,

5. The Committee should have the opportunity to review the proposed Measure A budget before adoption and offer recommendations.
-15-

ATTACHMENT A
36 City of Stockton
Stockton, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures
on Measure A and B Transaction and Use Tax
For the Year Ended June 30, 2023

ATTACHMENT A
37 200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

INDEPENDENT A
CCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES

ON MEASURE A AND B TRANSACTION AND USE TAX
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, Cal
ifornia
We have performed the procedures enumerated below on th e Measure A and B Schedule of Sources and Uses of the City of Stockton, California (the “City”) for the year ende d June 30, 2023. The City’s management is responsible for the Measure A and B Schedule of Sources and Uses (the “Schedule”).

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating whether Transaction and Use Tax of the C ity were collected in accordance with Measure A and expenditures were spent in accordance with provisions of Measure B for the y ear ended June 30, 2023. This report may not be suitable for any other purpo se. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all u sers of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are described as follows:

1. We obtained understanding of the compliance requireme nts of Measure A, B, and the Marshall Plan on Crime.

Findings: No exceptions were noted.

2. We obtained the Measure A and B Schedule of Sources and Uses included in the Annual Comprehensive Financial Report of the City for the fiscal year ended June 30, 2023.

Findings: No exceptions were noted.

3. We obtained reports from the California Department of Tax and Fee Administration (CDTFA) and traced the quarterly cash receipts for the fiscal year ended June 30, 2023.

Findings: No exceptions were noted.

4. We selected 40 expenditure transactions spent in Mars hall Plan on Crime and determine whether they were spent in accordance with approved Marshall Plan uses.

Findings: No exceptions were noted.

ATTACHMENT A
38 To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California

2 We were engaged by the City to perfo rm this agreed-upon procedures engageme nt and conducted our engagement in accordance with attestation standards established by the Ameri can Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Measure A and B Schedule of Sources and Uses.

Accordingly, we do not express such an opinion or conclusion. Had we pe rformed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of th e City and to meet our ethical respons ibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and u se of the City Council and City management and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
March 13, 2024

ATTACHMENT A
39 City of Stockton
Measure A and B Schedule of Sources and Uses
For the Year Ended June 30, 2023
3 Final Budget Y ear E nd Actual Variance
Revenues
Measure A Transaction and Use Tax 42,080,000 $ 49,703,488$ 7,623,488$ Total Revenues 42,080,000 49,703,488 7,623,488
U ses/E xpenditures
Police
Salary & Benefits
Sworn 24,965,558 22,471,737 2,493,821
Non-Sworn 3,892,835 3,312,145 580,690
V acancy Savings (1,696,203) - (1,696,203)
Other Services 3,496,480 3,379,931 116,549
Materials & Supplies -
Fuel 346,141 414,694 (68,553)
Other Supplies 1,132,271 510,188 622,083
Other Ex penses
Training 595,000 584,222 10,778
Capital outlay 277,254 77,254 200,000
33,009,336 30,750,171 2,259,165
Office of Violence Prev ention
Salary & Benefits
Non-Sworn 926,130 774,769 151,361
Other Services 317,033 285,544 31,489
Fuel 7,750 8,078 (328)
Other Supplies 36,553 27,036 9,517
Office Equipment 3,979 - 3,979
Other Ex penses 20,000 9,638 10,362
1,311,445 1,105,065 206,380
Basic Ad justm ent
Encum brances (included in Final Budget) - 199,163 (199,163) Total M easure B E xpenditures 34,320,781 32,054,399 2,266,382 Crime Prevention (Measure B) ex penditures
as a % of annual Measure A revenues 82% 64%
Other City Serv ices
G eneral Fund Available Fund Balance 7,759,219 17,649,089 (9,889,870) Total Uses/E xpenditures 42,080,000$ 49,703,488$ (7,623,488)$

ATTACHMENT A
40 Measure M
Strong Communities Fund
of the City of Stockton
Stockton, California
Financial Statements and
Independent Auditors’ Reports
For the Year Ended June 30, 2023

ATTACHMENT A
41 ATTACHMENT A
42 City of Stockton
Measure M Strong Communities Fund
For the Year Ended June 30, 2023

Table of Contents

Page

FINANCIAL SECTION

Independent Auditors’ Report on the Financial Statements ...................................................................................... 1

Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................. 5

Basic Financial Statements:

Balance Sheet ...................................................................................................................................................... 9 Statement of Revenues, Expenditures, and Change in Fund Balance ............................................................... 10 Notes to the Fund Financial Statements ............................................................................................................ 13

Required Supplementary Information (Unaudited):

Budgetary Information:

Budget Process .................................................................................................................................................. 19 Budgetary Basis of Accounting ......................................................................................................................... 19 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual ............................. 20

ATTACHMENT A
43 This page intentionally left blank.

ATTACHMENT A
44 FINANCIAL SECTION

ATTACHMENT A
45 This page intentionally left blank.

ATTACHMENT A
46 200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor and Members of the City Council
of the City of Stockton
Stockton, California

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financ ial statements of the City of Stockton, California (the “City”) Strong Communities Initiative Measure M (the “Fund”), which comprise the balance sheet as of June 30, 2023 and the related statement of revenues, expenditures, and change in fund balance for the y ear then ended, and the related notes to the financial statements, as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, and the respective changes in financial pos ition thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standard applicable to fi nancial audits contained in Governmental Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under tho se standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements secti on of our report. We are requi red to be independent of the City and the Fund and to meet our other ethical responsibilities, in accordance w ith the relevant ethical requirements relating to our audit. We believe that the a udit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter

As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the City of Stockton, California, as of June 30, 2023, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United Stat es of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

ATTACHMENT A
47 To the Honorable Mayor and Members of the City Council of the City of Stockton
Stockton, California

2 In preparing the financial statements, management is required to evaluate wh ether there are conditions or events, considered in the aggregate, that raise substantial doubt ab out City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whet her the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards ge nerally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the ove rride of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 Obtain an understanding of internal c ontrol relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal cont rol-related matters that we identified during the audit.

ATTACHMENT A
48 To the Honorable Mayor and Members of the City Council of the City of Stockton
Stockton, California

3 Required Supplementary Information
Accounting principles generally accepted in the United St ates of America require that the budgetary comparison information as listed in the table of contents be presen ted to supplement the basic financial statements. Such information is the responsibility of mana gement and, although not a part of the basic financial statements, is required by the Governmental Accounting Standard s Board who considers it to be an essen tial part of financial reporting for placing the basic financial statements in an appropriate opera tional, economic, or historical context. We have applied certain limited procedures to the required supplementary in formation in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency w ith management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the in formation because the limited pr ocedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to s upplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by th e Governmental Accounting Standards Board, who considers it to be an essential pa rt of financial reporting for placing the basic financial statements in an appropriate operati onal, economic, or historical contex t. Our opinion on the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our repor t dated March 13, 2024, on our consideration of the City’s internal control over the Fund’s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the e ffectiveness of the City’s internal control over the Fund’s financial reporting or on compliance. Th at report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal cont rol over the Fund’s financial reporting and compliance.

Santa Ana, California
March 13, 2024

ATTACHMENT A
49 4
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ATTACHMENT A
50 200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Independent Auditors’ Report

To the Honorable Mayor and Members of the City Council
of the City of Stockton
Stockton, California

We have audited, in accordance with the auditing standa rds generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure M Strong Communities Fund (the “Fund”) of the City of Stockton, California (the “City”), which comprise the balance sheet as of June 30, 2023 and the related statement of revenues, expenditures, and changes in fund bala nce for the year then ended, and the related notes to the fund financial statements and have issued our report thereon dated March 13, 2024.

Report on Internal Control Over Financial Reporting

In planning and performing our audit of the financial statem ents, we considered the City’s internal control over the Fund’s financial reporting (“internal control”) as a basis fo r designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s inte rnal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assi gned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significan t deficiencies may exist that have not been identified.

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weakness. However, material weaknesses or significant deficiencies may exist that were not identified.

ATTACHMENT A
51 To the Honorable Mayor and Members of the City Council of the City of Stockton
Stockton, California

6 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whethe r the financial statements of the Measure M Strong Communities Fund of the City are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contract s, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statem ent amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entit y’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
March 13, 2024

ATTACHMENT A
52 7

FUND FINANCIAL STATEMENTS

ATTACHMENT A
53 8
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ATTACHMENT A
54 Assets
Cash and investments 31,008,586$
Interest receivable 146,896
Deposits 18,097
Due from State of California Department of Tax and Fee Administration 2,682,599 Total assets 33,856,178$
Liabilities and Fund Balances
Liabilities:

Accounts payable 247,521$
Accrued payroll 199,882
Total liabilities 447,403
Fund Balance:

Nonspendable 18,097
Restricted 33,390,678
Total fund balance 33,408,775
Total liabilities and fund balance 33,856,178$
City of Stockton
Balance Sheet
June 30, 2023
Measure M Strong Communities Fund
See accompanying Notes to Fund Financial Statements.
9 ATTACHMENT A 55
Revenues:

Taxes:

Sales - levied by City 16,551,044$
Interest income (loss) (234,758)
Total revenues 16,316,286
Expenditures:

Current:

Library 2,892,739
Parks and recreation 4,821,876
Capital outlay 6,721,241
Total expenditures 14,435,856
Change in fund balance 1,880,430
Fund Balance:

Beginning of year 31,528,345
End of year 33,408,775$
City of Stockton
Statement of Revenues, Expenditures, and Change in Fund Balance For the Year Ended June 30, 2023
Measure M Strong Communities Fund
See accompanying Notes to Fund Financial Statements.
10 ATTACHMENT A 56

11 NOTES TO THE FUND FINANCIAL STATEMENTS

ATTACHMENT A
57 12
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ATTACHMENT A
58 City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements
For the Year Ended June 30, 2023

13 Note 1 – Definition of the Fund

On November 8, 2016, the people of the City of Stockton (the “City”) approved the Strong Communities Initiative (“Measure M”), which authorized the City of Stockton Special Library and Recreation Transactions and Use Tax Ordinance (Ordinance No. 2016-06-07-1212). The original Ordinance is adopted by the Stockton City Council on May 24, 2016. An amended Ordinance was approved by the City Council on June 7, 2016. The Ordinance allows the City to implement a dedicated one-quart er (¼) cent special transaction and use tax for a period of 16 years for the restoration and expansion of library and recreation services.

The City established the Measure M Strong Communities Fu nd (the “Fund”), to accoun t for the Measure M taxes collected and spent on library and recreation services. These operations constitute part of the overall financial reporting entity of the City and are accounted for as a special revenue fund in accordance with generally accepted accounting principles within the City’s annual comprehensive financial report. The accounting policies of the Fund conform to the modified accrual basis of accounting.

These financial statements present only the Fund and do not present fairly the financial position of the City as of June 30, 2023, the changes in its fina ncial position, or where applicable, its cash flows for the y ear then ended in accordance with the accounting principles generally accepted in the United States of America.

Note 2 – Summary of Significant Accounting Policies

A. Basis of Presentation

The accompanying financial statements present only information pertain to the Fund and are not intended to present the financial position, and changes in financia l position of the City in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The financial statement presentation follows the recommendations promulga ted by the Governmental Accounting Standards Board (“GASB”) commonly referred to as U. S. GAAP. GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.

B. Measurement Focus and Basis of Accounting

In the accompanying financial statements, the Fund is presented using the “ current financial resources ” measurement focus. This means that only current assets and current liabiliti es are generally included on their balance sheet. The Statement of Revenues, Expenditu res, and Changes in Fund Balance present increases (revenues) and decrease (expenditures) in net current assets.

The activities of the Fund are recorded in a special re venue fund and accounted for using the modified accrual basis of accounting. Special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Under the modified accrual basis of accounting, revenues are recognized wh en they become susceptible to accrual (i.e., both measurable and available). Measurable means that the amount of the transaction can be estimated, or otherwise determined. Available means the funds are collectible within 90 days after year-end. Expenditures are generally recognized when the related liability is incurred.

ATTACHMENT A
59 City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements (Continued)
For the Year Ended June 30, 2023

14 Note 2 – Summary of Significant Accounting Policies (Continued)

C. Use of Estimates

The preparation of the basic financial statements in c onformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements a nd the reported changes in net position during the reporting period. Actual results could differ from those estimates.

D. Cash and Investments

All cash and investments reported in the Fund are accounted for by the City. For further information, please refer to Note 1 – Summary of Significant Accounting Policies in the City’s annual comprehensive financial report.

E. Receivables

Revenues are recorded when received in cash, except revenues subject to accrual (up to 90 days after year-end) are recognized when due. The primary revenue source of th e Fund is transactions and use tax collected through the State of California Department of Tax and Fee Administration.

F. Classification of Fund Balance

All fund balance in the Fund are nonspendable and restricted.

Nonspendable – Amounts that cannot be spent because they are (1) not in spendable form, such as prepaid items, deposits and long-term receivabl es for which the payment of proceed s are not restricted or committed with respect to the nature of the specific expenditures of that fund or (2) legally or contractually required to be maintained intact.

Restricted – Amounts that are restricted by external parties such as creditors or imposed by grants, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation.

The City has legislative restrictions on amounts coll ected and reported in the Fund. As a result, these restrictions have been classified as restricted for library and recreation.

Other types of fund balance that are not applicable to the Fund are described below:

Committed – This amount indicates the portion of fund balances which can only be used for specific purposes under formal resolution or ordinance of the City Coun cil. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally.

Assigned – Amounts that have been allocated by action of an official authorized by the Stockton City Council in which the City’s intent is to use the funds for a specific purpose. The City considers this level of authority to be the City Manager of the City of Stockton.

Unassigned – Amounts that constitute the residual balances that have no restrictions placed upon them. If restrictions exceed available resources at the end of the year, the deficit amounts are reported and classified as unassigned.

ATTACHMENT A
60 City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements (Continued)
For the Year Ended June 30, 2023

15 Note 2 – Summary of Significant Accounting Policies (Continued)

G. Spending Policy

When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is first to expend restricted fund balances, then unrestricted fund balances as they are needed.

When expenditures are incurred for purposes where only unrest ricted fund balances are av ailable, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned depending on the nature of the expenditure.

Note 3 – Cash and Investments

The Fund’s share of the City’s cash and investments at June 30, 2023 was $31,008,588.

Cash is deposited in the City’s internal investment pool, which is reported at the amortized cost. The Fund does not own specifically identifiable securities in the City’s pool. Interest income is allocated based on average cash balances.

Investment policies and associated risk factors applicable to the Fund are those of the City and are included in the City’s basic financial statements. Pl ease refer to the City’s annual comprehensive financial report for related disclosures for cash and investments.

Note 4 – Due From Other Governments

Due from other governments consists of retail transactions and use tax due from the State of California Department of Tax and Fee Administration. At June 30, 2023, the amount due from the State of California Department of Tax and Fee Administration was $2,682,599.

Note 5 – Commitments and Contingencies

Litigation

Legal claims and lawsuits arise from time to time in th e normal course of business wh ich, in the opinion of management, will not materially affect the financial statements of the Fund as of June 30, 2023.

Commitments

In addition to library and recreation operations, Str ong Communities funds are being used for capital projects expanding or improving library and r ecreation facilities. The capital appropriations outstanding as of June 30, 2023 were $12,123,912 for eight projects. The largest project underw ay, with an outstanding appropriation of $4,464,768 is allocated toward the renovation of the Cesar Chavez Libr ary for life safety upgrades and to make the building more accessible and inviting to the community. A new library and recreation facility in Northeast Stockton is also under construction with an outstanding balance of $3,660,669. $1,190,658 is appropriated to renovate the Victory Park Pool and $1,500,000 is appropriated to renovate the Oak Park Pool. The McKinley Park renovation project has a balance of $1,121,481. In addition, $85,529 is appropriated to complete renovations at the Stockt on Soccer Complex, $59,500 is appropriated to install UV sterilization systems at pools, and $41,307 is appropriated to complete fencing and gate upgrades for improved security at the McNair Soccer Complex.

ATTACHMENT A
61 16
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ATTACHMENT A
62 17

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

ATTACHMENT A
63 18
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ATTACHMENT A
64 City of Stockton
Measure M Strong Communities Fund
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2023

19 1. Budgetary Information

Budget Process

In accordance with the provisions of the City Charter, the City prepares and adopts a budget on or before June 30 for each fiscal year. Total Appropriations shall not exceed the total of estimated revenues, estimated unencumbered balances of funds to be carried over from the preceding year and unencumbered available fund balances. Prior to July 1, the original adopted budget is legally enacted through the passage of a resolution by the City Council. In the event this does not occur, the City Manager’s draft budget is in force until a budget is adopted by the City Council.

If expenditures exceed appropriations at the department level for the General Fund or at the fund level for all other funds, Council approval must be obtained to amend the budget. The City Manager is authorized to transfer budgeted amounts between line items within a General Fund department and w ithin a fund for all other funds.

During the year, the City Council approves supplemental appr opriations and, by resolution, has also authorized the City Manager to transfer fund balances to applicab le appropriation accounts, or to transfer between funds, when necessary to continue purposes approved by the City Council in the current year, adopted budget, or subsequent action. Amounts reported as final budget in the Schedule of Re venues, Expenditures and Changes in Fund Balance – Budget and Actual – On a Budgetary Basis include amendments authorized throughout the year.

All unencumbered appropriati ons lapse at year-end, with the excepti on of ongoing capital improvement projects and miscellaneous grants in the respective funds. Encumbered appropriations are re-appropriated in the following year’s budget.

Budgetary Basis of Accounting

The City adopts budgets each fiscal year on a basis of accounting, which is differe nt from accounting principles generally accepted in the United States of America (GAAP).

The statements of revenue, expenditures and changes in fund balances have been prepared on the modified accrual basis of accounting in accordance with GAAP. Th e schedules of revenues, expenditures and changes in fund balances – budget and actual – on a budgetary basis have been prepared on the budgetary basis, which is different from GAAP.

The variations from GAAP that are for budgetary purposes include the following:

 Outstanding commitments relating to construction contracts and other purchases of goods and services are recorded as expenditures at the time contracts or purchase agreements are entered into. Under GAAP, these obligations are recognized when goods are received or services are rendered.

 The write-off uncollectable accounts receivables is not recognized as an expenditure. Under GAAP, these write-offs are recognized as expenditures when th e accounts receivables are determined to be uncollectable.

ATTACHMENT A
65 City of Stockton
Measure M Strong Communities Fund
Required Supplementary Information (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2023

20 1. Budgetary Information (Continued)

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual

V ariance with
Original Final Actual Final Budget
Revenues:

Taxes:

Sales - levied by City 14,027,000 $ 14,027,000 $ 16,551,044 $ 2,524,044 $ Interest income (loss) - - (234,758) (234,758) Total rev enues 14,027,000 14,027,000 16,316,286 2,289,286 E xpenditures:

Current:

Library 4,471,381 4,466,089 2,892,739 1,573,350 Recreation programs 6,238,267 6,699,620 4,821,876 1,877,744 Capital outlay 5,350,000 8,600,753 6,721,241 1,879,512 Total expenditures 16,059,648 19,766,462 14,435,856 5,330,606 Changes in fund b alance (2,032,648)$ (5,739,462) $ 1,880,43 0 7,619,892$ Fund Balance (GAAP Basis):

Beginning of year 31,528,345
End of year 33,408,775$
Basis Ad justm ent:

Changes in fund balances - GAAP basis 1,880,430 $
Encumbrances (411,140)
Changes in fund balances - Budget basis 1,469,290
Fund Balance (Budgetary Basis):

Beginning of year 31,528,345
End of year 32,997,635$
Budget

ATTACHMENT A
66 City of Stockton
Legislation Text
File #: 26-0626, Version: 1
MOTION TO ACCEPT THE MEASURE A CITIZENS’ ADVISORY COMMITTEE BUDGET REPORT - FISCAL YEAR ENDING JUNE 30, 2026

RECOMMENDATION
It is recommended that the City Council approve a motion to accept the Measure A Budget Report for the Fiscal Year ending June 30, 2026 (Attachment A).

Summary
The Measure A Citizens’ Advisory Committee was established to provide independent oversight of revenues and expenditures associated with Measure A (Public Safety Transaction and Use Tax) funding provisions.

Pursuant to the Committee Charter (Resolution No. 2013-10-08-1505) and adopted Bylaws, the Committee is responsible for reviewing financial information related to Measure A and submitting an annual report to the City Council. The report includes an assessment of revenues, expenditures, and programmatic use of funds dedicated to public safety services.

The Fiscal Year Ending June 30, 2026, Budget Report provides the Committee’s review of:
• Adopted and projected revenues for Measure A and Measure B • Expenditures by department and program area, including Police and Fire services • Staffing levels and operational expenditures supported by Measure funding • Variances between budgeted and actual or projected financial activity • Fiscal trends impacting Measure revenues, including changes in sales tax performance • Committee observations regarding the allocation and use of Measure funds The Committee’s report is intended to enhance transparency and accountability by providing an independent review of voter-approved funding dedicated to public safety.

Present Situation
The Measure A Citizens’ Advisory Committee reviewed the Fiscal Year Ending June 30, 2026, Budget Report at its duly noticed public meeting held on October 23, 2025. Following the discussion, the Committee approved the report by Motion 2025-10-23-0409 for submission to the City Council.

City of Stockton Printed on 9/24/2026Page 1 of 2
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67 File #: 26-0626, Version: 1
Financial Summary
This item is informational only. There is no direct fiscal impact associated with receiving and filing the Committee’s report. All financial data contained in the report reflects previously adopted budgets and actual or projected expenditures for the Fiscal Year Ending June 30, 2026.

Attachment A - Budget Report - Fiscal Year Ending June 30, 2026 City of Stockton Printed on 9/24/2026Page 2 of 2
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68 City of Stockton Measure A Committee
Observations, Recommendations, Questions
FYE June 30, 2026, City of Stockton Budget
Draft July 18, 2025
T
he Measure A Committee welcomes the opportunity to offer our observations, recommendations, and questions as part of the City of Stockton’s (City) budget process. We have reviewed the first proposed budget for Measure A funds along with relevant parts of the entire city budget document.

A
ttached to our report:

1. FYE 2026 budget for Measure A. C-7.

2. June 30, 2024, Measure A preliminary financial report.

3. June 30, 2023, Measure A Schedule of Sources and Uses, from the Annual Comprehensive Financial Report (ACFR) of the City.

4. FYE 2026 budget for the Police Department. D-8, 9.

5. FYE 2026 budget for Measure W. D-13.

6. Stockton Police Officers MOU compensation schedule July 1 2022 to June 30, 2025.

R
ecall the promise of Measure A was to add 120 officers to our base of 365 sworn officers.

Thus, starting in 2014, the City was to build its sworn officers staff to 485. Unfortunately, the City has fallen dramatically short of those goals.

I
n some sense, the Measure A financial statements and budgets should show the costs of hiring sworn officers above the 365 base. We need to see the costs of the pure Measure A officers, above the 365 base, vs costs that have been expended to maintain the 365 base.

T
he budget and financial reports need to provide information that shows the incremental costs, (the “avoidable” costs), of adding a police officer and adding other staff such as employees who serve in the Office of Violence Prevention (OVP). Sunk costs, liabilities such as the long existing unfunded pension liability, need to be separated from the current avoidable costs. The presentation of information on avoidable costs should be part of the entire budget process.

1. We do not understand why the downward trend in Measure A sales tax receipts is greater than the trend for Measure W and general sales tax receipts. In C -7 for Measure A, the decrease in sales tax receipts FYE 23 TO FYE 24 is down 7% ($3.489m), FYE 24 TO 25 down 2.7% ($1.231m), and for our budget year FYE 26 up 1.9% ($872k). The Measure W is negative 5.7% and then has positive increases. The Point of Sale trends have one year 2.9% negative, and all others are positive. See C-4 and D-13. We would expect sales tax receipt trends to be similar, but it seems Measure A tracks lower.

2. The budget should show the amount of the California Department of Tax and Fee Administration (CDTFA) administrative costs withheld before sales tax proceeds are remitted to the City. C -7 and Schedule of Source and Uses in the ACFR do not show the cost, which was $216,490 for FYE 2024. All budget and financial statements of Measure A should show the

ATTACHMENT A
69 receipt of sales tax at gross consistent with the CDFTA reports, another line should show less the CDTFA administrative cost, with a net amount of Measure A revenue.

3. The modest “audit recovery service” cost paid to HdL should also appear on the budget and financial reports of Measure A. What are the quantified net benefits from these services? T
he primary expenditures of Measure A funds are divided between police (PD) and OVP. We need information on (1) per capita personnel costs, (2) quantified examples of major expenditures, and (3) outcome metrics. Please explain significant changes (over 25%) in lines items from FYE 2025.

4. P
olice.
a. S
alary and benefits. We need to see how much is salary vs. benefits. We need to know the per capita composition and nature of those costs and the avoidable cost per officer based on current salary and current pension and benefits. b. P
olice officer salaries per MOU. Attached is the Stockton Police Officers MOU compensation schedule July 1, 2022, to June 30, 2025. In addition, we understand there is a “side Letter” that modifies the effective MOU steps. We need a matrix showing the numbers of officers, classification, and steps, that foot to an amount for police officer salaries with reference to the specific steps in the MOU and “side letter.” Those amounts per the proposed budget C-7 are $19.470m less vacancy $1.711m plus recruitment etc. $11.944m = $29.703m.
c.

Benefits. We need to know the composition of benefits e.g., health, pension, etc., Most importantly, quantify benefits related to past liabilities such as unfunded pensions.

The notes in the ACFR state that current pension costs for public safety is 20.52% of wages. The budget document, however, states the cost is 88.00%. B-8. Any pension costs in excess of the 20.52% would seem to be a sunk cost and should not be combined with current employment benefit costs.
d.

Other line items, e.g., other services, materials and supplies, vehicles, technology, training. There are dramatic changes from prior year amounts in most of these line items.
e. P
lease indicate if the budgeted costs arise from direct assignment, allocation, or overhead application, and the method for allocation and overhead application. f.

We need to know details and expected expenditure amounts for these categories.

If possible, please list details for subcategories that constitute 10% or more of the main line item. For example, “other services” costs have increased from $3.380m to $4.463m FYE 2023 to our budget year. Please list those other services that constitute $4.46m or more in the budget.
5 OVP.

ATTACHMENT A
70 a. OVP shows a significant increase in costs FYE 23 $1.1m to FYE 26 budget $1.98m. It would be helpful if we had a compensation document for salaries for OVP like PD, and a matrix showing job classification, step, numbers, that foot to $1.311m listed as budget.
b.

Other services. As with PD, detail services over 10%, i.e., over $58,000.

6. O
utcome metrics. We have read the material in A -8, A-9, D-1 to D-21. If applicable, please offer any other metrics that would help us understand the use of Measure A funds for PD and OVP.

7. Measure W has built a significant fund surplus. Measure W was initially designed to pay for 45 additional police, but for recent years, it has paid the costs of only 24. Accordingly, it reported an increase in accumulated surplus, and sales tax received over expenditures. Should Measure W assume more of the costs of police?

8. Each year, substantial unexpended Measure A funds are not accounted for except as additions to the General Fund. The current budget document C-7 shows unexpended Measure A funds FYE 23, 24, 25, and 26 budget: $17.848m, $8,011m, $3.304m, and $7,948m. The City has maintained a subfund designation for Measure A: 115. See B-26. It would seem a simple matter to establish a Measure A subfund balance account to capture and report on these funds.

Our Measure A Committee is charged with oversight of all the receipts and all the expenditures of Measure A funds. By seeing the changes in the subfund 115 balance, staff could report on the accumulated expended and unexpended amounts of Measure A Funds.

9. A
prior CFO stated Measure A funds were used to purchase the New City Hall. We request an accounting of Measure A funds used and budgeted for the New City Hall and for associated projects, e.g., street and infrastructure. Some costs are reported in the CIP budget.

10. Cost of the City Auditor can be allocated to other funds. K-23. The Committee would welcome working with the City Auditor, once appointed. We would concur with a reasonable allocation of costs to the Measure A fund. We hope the new City Auditor will be qualified, independent, and preferably belong to the Association of Local Government Auditors (ALGA).

ATTACHMENT A
71 FY 2022-23 2023-24 FY 2024-25 FY 2024-25 FY 2025-26
Adopted
Actual Actual Budget Projected Budget
Revenues
Police
Measure A Transaction and Use Tax 49,703,488$ 46,214,556$ 47,058,000$ 44,983,216$ 45,855,164$ Total Revenues 49,703,488 46,214,556 47,058,000 44,983,216 45,855,164 Expenditures (Public Safety Measure B)
Police
Salary & Benefits
Sworn & Non-Sworn 25,783,882 26,443,535 19,068,331 16,781,798 19,469,912 Vacancy Savings - - (1,531,305) - (1,710,758)
Recruitment, Retention, & Wellness - 3,988,998 12,295,709 16,193,751 11,943,895 Other Services 3,379,931 4,678,504 4,590,249 4,157,455 4,463,185 Materials & Supplies - -
Fuel 414,694 421,178 378,960 229,571 354,060 Other Supplies 485,713 822,536 755,825 1,479,303 805,825 Equipment - -
Office Equipment - - - - -
Radios - 29,533 - - -
Vehicles - - - 394,035 -
Other Expenses - -
Techonology Upgrades 14,228 45,378 - 135,000 - Training 594,470 399,194 601,809 624,257 601,809 Capital Outlay 77,254 - - - -
30,750,171 36,828,856 36,159,578 39,995,170 35,927,928 Office of Violence Prevention
Salary & Benefits
Non-Sworn 774,769 973,097 1,220,264 1,220,264 1,310,989 Other Services 285,543 320,576 328,934 328,934 587,346 Materials & Supplies - -
Fuel 8,078 13,026 33,418 33,418 12,402
Other Supplies 27,036 44,514 45,000 45,000 45,000 Equipment - -
Office Equipment - 3,361 3,379 3,379 3,379
Other Expenses 9,638 20,489 53,500 53,500 20,000 1,105,064 1,375,063 1,684,495 1,684,495 1,979,116 Total Expenditures (Measure B) 31,855,235$ 38,203,919$ 37,844,073$ 41,679,665$ 37,907,044$ Measure B expenditures as a %
of annual Measure A revenues 64% 83% 80% 93% 83%
General Fund - 100
Measures A and B
FY 2025-26 Annual Budget
City of Stockton
C - 7
FY 2025-26 Proposed
Annual Budget

ATTACHMENT A
72 General Fund
Measures A and B Summary
F
Y 2023-24 4th Quarterly Report (Budgetary Basis*)
FY 2022-23
Actual
FY 2023-24
Amended
Budget
4th Quarter
Actual
% of
Budget
Revenue
Measure A Tax 49,703,488 46,338,887 46,214,556 100% Total Revenue 49,703,488 46,338,887 46,214,556 100% Expenditures
Police
Salary & Benefits
Sworn 22,471,737 28,762,060 22,965,412 80% Non-Sworn 3,312,145 4,005,145 3,478,123 87% Vacancy Savings - (2,149,267) - 0%
Recruitment, Retention, and Wellness - - 3,988,998 - Other Services 3,379,931 4,745,335 4,678,504 99% Materials & Supplies
Fuel 414,694 386,396 421,178 109% Other Supplies 485,713 1,305,510 822,536 63% Equipment
Radios - - 29,533 -
Technology Upgrades 14,228 - 45,378 -
Other Expenses 594,470 620,000 399,194 64% Capital Outlay 77,254 - - -
30,750,171 37,675,180 36,828,857 98%
Office of Violence Prevention -
Salary & Benefits
Non-Sworn 774,769 972,327 973,097 100% Other Services 285,543 321,367 320,576 100% Materials & Supplies
Fuel 8,078 30,077 13, 026 43% Other Supplies 27,036 45,304 44,514 98% Equipment
Office Equipment - 3,379 3,361 99%
Other Expenses 9,638 20,000 20,489 102%
1,105,064 1,392,454 1,375,062 99% Total Measure B Expenditures 31,855,235 39,067,634 38,203,919 94% Measure B expenditures as a % of
year-to-date Measure A revenues 64% 84% 83%
Other City Services
Administration Overhead
CDTFA Admin Cost 291,730 287,000 216,490 75% Audit Recovery Services (HdL) 25,938 10,000 3,607 36% General Fund Services & Reserves 17,530,585 6,974,253 7,790,539 112% 17,848,252 7,271,253 8,010,636 110% Total Expenditures/Uses 49,703,488 46,338,887 46,214,556 100% *Includes funds encumbered for purchases authorized prior to current fiscal year 7 ATTACHMENT A73
City of Stockton
Measure A and B Schedule of Sources and Uses
For the Year Ended June 30, 2023
3 Final Budget Y ear E nd Actual Variance
Revenues
Measure A Transaction and Use Tax 42,080,000 $ 49,703,488$ 7,623,488$ Total Revenues 42,080,000 49,703,488 7,623,488
U ses/E xpenditures
Police
Salary & Benefits
Sworn 24,965,558 22,471,737 2,493,821
Non-Sworn 3,892,835 3,312,145 580,690
V acancy Savings (1,696,203) - (1,696,203)
Other Services 3,496,480 3,379,931 116,549
Materials & Supplies -
Fuel 346,141 414,694 (68,553)
Other Supplies 1,132,271 510,188 622,083
Other Ex penses
Training 595,000 584,222 10,778
Capital outlay 277,254 77,254 200,000
33,009,336 30,750,171 2,259,165
Office of Violence Prev ention
Salary & Benefits
Non-Sworn 926,130 774,769 151,361
Other Services 317,033 285,544 31,489
Fuel 7,750 8,078 (328)
Other Supplies 36,553 27,036 9,517
Office Equipment 3,979 - 3,979
Other Ex penses 20,000 9,638 10,362
1,311,445 1,105,065 206,380
Basic Ad justm ent
Encum brances (included in Final Budget) - 199,163 (199,163) Total M easure B E xpenditures 34,320,781 32,054,399 2,266,382 Crime Prevention (Measure B) ex penditures
as a % of annual Measure A revenues 82% 64%
Other City Serv ices
G eneral Fund Available Fund Balance 7,759,219 17,649,089 (9,889,870) Total Uses/E xpenditures 42,080,000$ 49,703,488$ (7,623,488)$

ATTACHMENT A
74 Police Department
FY 2025-26 Annual Budget
General Fund Measure Asset State
W Seizure COPS
100 200 260 260
See Page D-10 See Page D-13 See Page D-15 See Page D-17 Revenues
Taxes -$ 8,257,500$ -$ -$
Grants - - - 900,000
Program Revenue 7,359,914 - 3,000 -
Other Revenue - - - -
7,359,914 8,257,500 3,000 900,000
Expenditures
Salary & Benefits 143,694,709 7,092,463 - 244,749 Services & Supplies 41,020,694 1,261,673 181,210 1,041,320 Administration Overhead - 148,506 - -
Capital Outlay 20,000 - - -
184,735,403 8,502,642 181,210 1,286,069
-
Transfers
Transfer In - - - -
Transfer Out - - - -
- - - -
Net Annual Activity (177,375,489)$ (245,142)$ (178,210)$ (386,069)$ City of Stockton
D - 8
FY 2025-26 Proposed
Annual Budget

ATTACHMENT A
75 Police Department, Continued
FY 2025-26 Annual Budget
Special Special
Revenue Grants Police
260 280 Total
See Page D-19 See Page D-21
Revenues
-$ -$ 8,257,500$
Grants - - 900,000
Program Revenue 7,362,914
Other Revenue 4,868,831 - 4,868,831
4,868,831 - 21,389,245
Expenditures
Salary & Benefits - - 151,031,921
Services & Supplies 1,260,675 - 44,765,572
Administration Overhead - - 148,506
Capital Outlay - - 20,000
1,260,675 - 195,965,999
Transfers
Transfer In - - -
Transfer Out - - -
- - -
Net Annual Activity 3,608,156$ -$ (174,576,754)$
Revenues 21,389,245$
Transfers -
Total Sources 21,389,245$
Expenditures 195,965,999$
Transfers -
Total Appropriations 195,965,999$
City of Stockton
D - 9
FY 2025-26 Proposed
Annual Budget

ATTACHMENT A
76 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26
Actual Actual Projected Budget
Beginning Available Balance 9,973,679$ 12,914,043$ 13,241,813$ 13,077,768$ Revenues
Police
Measure W Sales Tax 8,160,741 7,703,437 8,023,000 8,257,500 Investment Proceeds 92,458 213,572 - -
8,253,199 7,917,009 8,023,000 8,257,500
Fire
Measure W Sales Tax 8,171,918 7,703,437 8,023,000 8,257,500 Investment Proceeds 77,595 183,972 - -
8,249,513 7,887,409 8,023,000 8,257,500
16,502,712 15,804,418 16,046,000 16,515,000
Expenditures
Police
Salary & Benefits 5,898,708 6,593,294 6,750,435 7,092,463 Services & Supplies 930,705 1,060,075 1,165,445 1,261,673 Administration 146,343 107,729 23,506 148,506
6,975,756 7,761,098 7,939,386 8,502,642
Fire
Salary & Benefits 5,834,924 6,592,897 7,100,505 7,410,159 Services & Supplies 495,352 813,355 960,596 963,085 Administration 145,833 107,729 129,280 147,000 Equipment & Maintenance 110,483 201,571 80,278 10,000 6,586,592 7,715,552 8,270,659 8,530,244
13,562,348 15,476,650 16,210,045 17,032,886
Transfers
Transfer In - - - -
Transfer Out - - - -
- - - -
Net Annual Activity
Police 1,277,443 155,911 83,614 (245,142)
Fire 1,662,921 171,859 (247,659) (272,744)
2,940,364 327,770 (164,045) (517,886)
Ending Available Balance 12,914,043$ 13,241,813$ 13,077,768$ 12,559,882$ Available Balance Calculation
Current assets 13,926,758$
Current liabilities (684,945)
Program Commitments -
Ending Available Balance 13,241,813$
(a) The portion of Measure W Fund - 200 relating to Fire is also presented in Fire on page E-17.

Police and Fire Departments
Measure W - 200 (a)
FY 2025-26 Annual Budget
City of Stockton
D - 13
FY 2025-26 Proposed
Annual Budget

ATTACHMENT A
77 ATTACHMENT B
EXHIBIT 5

STOCKTON POLICE OFFICERS ASSOCIATION (SPOA) SUCCESSOR MOU TERM: July 1, 2022 -June 30, 2025
APPENDIX A. COLA AND MARKET ADJUSTMENTS
Year 1· Effective 7/1/22;
Year 2- Effective 7 /1/23;
Ven 3- Effective 7 /1/24
Ste
1 2 3 4 s 6
Poke Officer 6,055.40 6,366.58 6,694.48 7,037.52 7,400.36 7,779.88 COLA and MA vear 1 (9.8'4) 593,44 623.92 6S6.06 689,68 725.24 762.44 Year l-Monthly Salary 6,648.84 6,990.SO 7,350.54 7,727.20 8,125.60 8,542.32 COLA and MA year 2 (4") 265,96 279.62 294,02 309.08 325.04 341.68 Year 2 -M011thly Salarv 6,914.80 7,270.12 7,644.56 8,036.28 8,450.64 8,884,00 COLA •nd MA year 3 (4") 276.60 290,82 905.78 321.46 338.02 355.36 Year 3 • Monthly Salary 7,191.40 7,560.94 7,950.34 8,357,74 8,788.66 9,239.36 Poke Officer Recruit S,134,74
COlA and MA year 1 (!1.8") 503,22
Year l • Monthly SallfY 5,637.96
COIA and MA year 2 (4") 225,51
Year 2 • MOl'lthly Salary 5,863.46
COLA and MA year 3 (4") 2$4.56
Year 3 • Monthly Salary 6,098.02
Pollce Officer Trainee 5,134.74
COtA and MA year 1 (9.87') 503.22
Year 1 • Monthly Salary 5,637,96
COIA and MA veer 2 (4") 225,51
Year 2- Monthly Salary 5,863.46
COLA and MA year 3 (4") 234.56
Year 3 - Monthly Salary 6,098.02
Police serceant 7,159.02 7,527.88 7,913.48 1,320.32 8,748 . .0 9,197.74 COi.A and MA year 1 (9,8") 701.56 737.74 775.52 815.40 857,34 90U8 Year 1 • Monthly Salary 7,860.58 8,265.62 8,689.00 . 9,135.72 9,605.74 10,099.12 COIA and MA year 2 (4%) 314,42 330.62 :14756 365.42 38-4,22 403.96 Year 2 -Monthly Salary 8,175.00 8,596.24 9,0l6.56 9,501.14 9,989.96 10,503,08 COLA and MA ya.- 3 14"1 327,02 343.86 361M 380,06 399,60 420.14 Year 3 - Monthly Salary 8,502.02 8,940.10 9,398.02 9,881.20 10,389,$6 10,923.22 CITY OF STOCKTON 68
30 ATTACHMENT A
78 POLICE MANAGEMENT UNIT SUCCESSOR MOU
TERM: July 1, 2022 - June 30, 2025
APPENDIX A. COLA AND MARKET ADJUSTMENTS
Year 1-Effectlve 7/1/22;
Year 2· Effective 7/1/23;
Year 3"' Effective 7/1/2-4
Ste s
2 3 4 5
Police Captain 11,314.50 11,893.82 12,503.18 13,144.00 13,817.72 COLA aod MA year 1 (10%) 1,131.46 1,189.38 1,250.30 1,314.40 1,381.78 Year 1 - Monthly Salary 12,445.96 13,083.20 13,753.48 14,458.40 15,199.50 COLA and MA year 2 (4%) 497.84 523.34 550.16 578,32 607.96 Year 2 - Monlliy Salary 12,943.80 13,606.54 14,303.84 15,036.72 15,807.46 COLA and MA year 3 (4%) 517.74 544.24 572.14 601.48 632,30 Year 3 - Monthly Salary 13,461.54 14, 150,78 14,876.78 15,638.20 16,439.76 Police Lieutenant 9,806.86 10,310.34 10,838.18 11,393.18 11,976,78 COLA and MA year 1 (10%) 980.70 1,031.06 1,083.84 1,139.32 1,197.68 Year 1 - Monthly Salary 10,787.56 11,341.40 11,922.02 12,532.50 13,174.46 COLA and MA year 2 (4%) 431.50 463.64 476.86 601.30 526.98 Year 2 - Monthly Salary 11,219.06 11,795,04 12,398.88 13,033.80 13,701.44 COLA and MA year 3 (4o/o) 448.76 471.80 495.96 621.36 548,04 Year 3 • Monthly Salary 11,667.82 12,266.84 12,894.84 13,565.16 14,249.48

CITY OF STOCKTON

ATTACHMENT B
EXHIBIT 5
6 14,524.34
1,452.42
15,976.76
639.08
16,615.84
664.64
17,280.48
12,590.42
1,259.04
13,849.46
553.98
14,403.44
576,14
14,979.58
43 31
ATTACHMENT A79
City of Stockton
Legislation Text
File #: 26-1006, Version: 1
ACCEPTANCE OF THE QUARTERLY INVESTMENT REPORT FOR QUARTER ENDED JUNE 30, 2026

RECOMMENDATION
It is recommended that the City Council, by motion, accept the Quarterly Investment Report for the quarter ending on June 30, 2026
Summary
Pursuant to California Government Code section 53646 and the City’s Investment Policy No.

17.01.030 (Attachment A), the City Treasurer (Chief Financial Officer) is required to provide a quarterly report and certification to the City Council, City Manager, and City Auditor.

Due to the specialized services and expertise required to assist the City with the varied investment options available, effective July 1, 2022, the City moved to have two portfolio managers manage separate portions of the City’s Reserve portfolio. The Quarterly Investment Reports for PFM Asset Management (PFMAM) (Attachment B), Chandler Asset Management (Attachment C), and the Certification for the quarter ending June 30, 2026 (Attachment D), are being provided as required.

The City’s consolidated investment portfolio was approximately $1.04 billion as of June 30, 2026, which includes an approximate increase of $39 million increase from the prior market value for the quarter ending on March 31, 2026. This consolidated investment portfolio includes the City’s liquidity position, short-term investments, and the reserve portfolios. (Attachment A- PFMAM Investment Report, page 18).

Total Program Breakdown:
· Reserve Portfolio - $837,437,972
· Short Term Portfolio - $4,337,708
· BMO Main Account - $148,839,218
· California Asset Management Program (CAMP) - $53,210,580 · Local Agency Investment Fund (LAIF) - $905,659

DISCUSSION
Background
To comply with state law and City policy, the City is required to present quarterly certification and investment reports detailing the City’s investment portfolio to the City Council, City Manager, and City Auditor. The City also posts monthly transaction reports to the City’s website. The Quarterly Investment Report shall include a complete description of the portfolio, the types of investments, the City of Stockton Printed on 9/24/2026Page 1 of 2
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issuers, maturity dates, par value, and dollar amounts invested in all securities, investments, or programs that are under the management of contracted parties, including lending programs. The certification must provide assurances that investments were made consistent with the City’s Investment Policy and that the City will meet its obligations for the next six months.

The authority of the Council to invest, reinvest funds, sell, or exchange securities is delegated to the City’s Chief Financial Officer, who also serves as City Treasurer (Resolution No. 2025-06-24-1602).

Pursuant to the Investment Policy, the City Treasurer may and does delegate fiduciary responsibility to external investment managers. An investment manager’s fiduciary responsibility is a legal requirement related to registration with the Securities and Exchange Commission under the Investment Advisor Act of 1940.

Present Situation
The City divides its investment portfolio into Reserve and Liquid portions. The Reserve portion represents the long-term assets managed by PFMAM and Chandler Asset Management, and the Liquid portion represents funds invested in several short-term investment vehicles including State of California LAIF, CAMP, and Dreyfus Treasury Money Market, to maintain adequate liquidity and optimize returns.

City staff works closely with both PFMAM and Chandler Asset Management to monitor the status of the City’s investment portfolios and their returns. Details on the returns are reflected in Attachment B, page 24 (PFMAM Investment Report) and on Attachment C, page 26 (Chandler Investment Report).

The quarterly return valuation includes funds from all activities, restricted and unrestricted, and includes changes in fair market value (unrealized gains/losses).

The City’s investment portfolio complies with California Government Code section 53601. It is invested solely in fixed-income securities (no stock holdings) that, while earning certain rates of interest, gain in market value when interest rates fall and lose market value when interest rates rise.

FINANCIAL SUMMARY
There is no financial impact related to the presentation and acceptance of these reports.

Attachment A - Investment Policy
Attachment B - PFMAM Investment Report
Attachment C - Chandler Investment Report
Attachment D - Certification of Quarterly Investment Report City of Stockton Printed on 9/24/2026Page 2 of 2
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POLICY
It is the policy of the City of Stockton to invest funds in a manner which will provide foremost for the safety of principal while meeting the short and long-term cash flow demands of the City and conforming to all statutes governing the investment of City funds.

I. Scope
This Investment Policy applies to all cash, operating, and surplus funds included within the City’s audited financial statements and held directly by the City.

Bond proceeds shall be invested in accordance with the governing bond documents (e.g. official statement and trust indenture). Proceeds of City bonds or other debt issues in possession of a t
rustee or fiscal agent are not considered to be part of the financial assets covered by these Investment Policy guidelines.

Also excluded from this Policy are any deferred compensation, retirement, Section 115 Trust, and Other Post Employment Benefit Plans. Investments related to these plans are not subject to this policy since third-party administrators or trustees manage the funds, and, either the individual plan par
ticipants or outside investment managers or trustees direct investment selections under the gui
delines established by the plan documents.

II. Prudence
Investments shall be made with judgment and care, under circumstances then prevailing, which per
sons of prudence, discretion and intelligence exercise in the management of their own affairs; not for speculation, but for investment, considering the probable safety of their capital as well as the pr
obable income to be derived.

Investments shall be made in accordance with the “Prudent Investor” standard, as described in California Government Code Section 53600.3, which states: “Except as provided in subdivision (a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are t
rustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not SUBJECT: INVESTMENT POLICY NUMBER: 17.01.030
RESPONSIBLE OFFICER:

City Manager
EFFECTIVE DATE:
6/20/2023
POLICY OWNER:

Administrative Services Department
LAST UPDATED:
10/30/2017
POLICY CONTACT:

CFO, Administrative Department, City Treasurer
APPROVED:

Original Signed by City Manager
INVESTMENT POLICY 17.01.030

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limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” III. Objectives
Within the overriding requirement of compliance with all Federal, State and local laws governing the investment of moneys under the control of the Treasurer, and as specified in the California Government Code Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objectives, in priority order, of the investment activities shall be:

1. Safety . Safety of principal is the foremost objective of the investment program.

Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the portfolio.

2. Liquidity . The inv estment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated.

3. Return on Investment. The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into ac
count the City’s investment risk constraints and cash flow requirements.

IV. Delegation of Authority
Cal
ifornia Government Code Section 53607 allows for the delegation of investment activities to the Treasurer of the City for periods of one year. The Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials, and their procedures in the absence of the Treasurer. The delegation, subject to review, is renewable on an annual basis and is to be included as part of the adoption of the annual budget to have the authority in place at July 1 of each year.

The Treasurer may delegate the day-to-day execution of investments to a Securities and Exchange Commission (SEC)-registered investment advisor, via written agreement approved by City Council .

The A
dvisor, in coordination with the Treasurer, will manage the City’s investment portfolio in accordance with this Investment Policy, the stated investment objectives of the City, and any such other written instructions provided by the Treasurer. The Advisor will also assist in security s
ettlement.

V. Ethics and Conflicts of Interest
The Treasurer and any designated employees are prohibited from personal business activity that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions, or which could give the appearance thereof. Employees and i
nvestment officials shall disclose any material interests in financial institutions with which they conduct business to the Treasurer. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Furthermore, these same individuals are prohibited from undertaking personal investment transactions with any individual with whom business is conducted on behalf of the City. The State of California Fair Political Practices Commission Statement of Economic Interests, Form 700, shall be completed on an annual basis by the Treasurer and any designee of the Treasurer.

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VI. Internal Controls
The Treasurer is responsible for establishing and maintaining a control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. Internal controls shall separate transaction authority from accounting and record keeping, safekeep assets, and maintain written records for all investments and wire transfers.

A. Objectives of Internal Control
Internal control is the plan of the organization and all the related systems established by management’s objective of ensuring, as far as practicable:
• Orderly and efficiently conduct of its business, including adherence to management policies.
• Safeguarding of assets.
• Prevention and detection of errors and fraud.
• Accuracy and completeness of the accounting records; and • Timely preparation of reliable financial information.

An internal control system, however elaborate, can provide only reasonable assurance that the objectives are met. Internal controls are reviewed periodically to ensure effectiveness.

VII. Reporting
A. Monthly: As described in California Government Code Section 53607, a report of investment transactions will be made to the City Council every month.

B. A report shall be rendered to the City Manager, City Council, and City Auditor at least four times per fiscal year and shall include:
• A complete description of the portfolio, the type of investments, the issuers, maturity dates, par and dollar amounts invested on all securities, the current market values of each component of the portfolio, the source of the portfolio valuation, investments, and monies held by the City.
• A description of any of the City’s funds, investments, or programs under the management of contracted parties, including lending programs.
• T he following certifications:
− All investment actions executed since the last report have been made in full compliance with the Investment Policy.
− The City of Stockton will meet its expenditure obligations for the next six months as described in California Government Code Section 53646(b)(3).

C. Both monthly and quarterly reports shall be made publicly available in the City Clerk’s Office, on the City Website, or other appropriate means.

VIII. Authorized and Suitable Investments
The City’s investments are governed by California Government Code, Sections 53600, et seq.

Within the assets permitted by the Code; the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. All percentage holding limits and rating

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requirements listed in this section apply at the time the security is purchased. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity, and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.

Securities with term to maturity greater than 5 years shall not exceed 30% of total portfolio value.

A. Municipal Securities including Registered state warrants or treasury notes or bonds of 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.

B
onds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

R
egistered 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.
• The securities are rated in a rating category of “A” or the equivalent or higher by at least one nationally recognized statistical rating organization (“NRSRO”). • No more than 5% of the portfolio may be invested in any single issuer. • No more than 30% of the portfolio may be in Municipal Securities. • The maximum maturity does not exceed ten (10) years.

B. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the f
ull faith and credit of the United States are pledged for the payment of principal and interest. • There are no limits on the maturity, dollar amount or percentage that the City may invest in U.S. Treasuries
C. Feder
al Agencies or United States Government-Sponsored Enterprise (GSE) obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. • Includes agency-backed mortgage-backed securities, mortgage pass-through securities, and collateralized mortgage obligations.
• There are no limits on the maturity, dollar amount, or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:
• No more than 20% of the portfolio may be invested in a federal agency or GSE issued mortgage-backed securities, mortgage pass -through securities, and collateralized mortgage obligations.

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D. Banker’s Acceptances otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank.
• I ssued by institutions w hich have short-term debt obligations rated “A-1” or higher by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or the equivalent or higher by at least one NRSRO, provided that:
• No more than 40% of the portfolio may be invested in Banker’s Acceptances. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed 180 days.

E. Commercial Paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500,000,000). (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.
(2) The entity meets the following criteria:
(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company.
(B) Has program wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (C) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.

Commercial paper that meets the above requirements is permitted, provided that:
• The securities are rated “A-1” o r higher by at least one NRSRO. • N o more than 40% of the portfolio may be invested in commercial paper. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed 270 days.

F. Negotiable Certificates of Deposit (NCDs), issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
• The amount of the NCD insured up to the FDIC limit does not require any credit ratings. • Any amount above the FDIC insured limit must be issued by institutions which have short- term debt obligations rated “A-1” or higher by at least one NRSRO; or long-term obligations rated in a rating category of “A” or the equivalent or higher by at least one NRSRO. • No more than 30% of the total portfolio may be invested in NCDs. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

G. Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
• The amount per institution is limited to the maximum covered under federal insurance. • No more than 20% of the portfolio will be invested in a combination of federally insured time deposits, collateralized time deposits and Certificate of Deposit Account Registry Service (CDARS).
• The maximum maturity does not exceed five (5) years.

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H. Collateralized Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
• No more than 20% of the portfolio will be invested in a combination of federally insured time deposits, collateralized time deposits, and CDARS. • The maximum maturity does not exceed five (5) years.

I. Certificate of Deposit Placement Service (CDARS), provided that:
• No more than 20% of the total portfolio may be invested in a combination of federally insured time deposits, collateralized time deposits, and CDARS. • The maximum maturity does not exceed five (5) years.

J. Collateralized Bank Deposits. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651.

K. Repurchase Agreements collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement.

There are no limits on the dollar amount or percentage that the City may invest, provided that:
• Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
• Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association.
• The maximum maturity does not exceed one (1) year.

L. S tate of California Local Agency Investment Fund (LAIF). • The City may invest up to the maximum amount permitted by LAIF. • LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

M. California Asset Management Program
N. Medium Term Notes (MTNs) defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, provided that:
• The securities are rated in a rating category of “A” or the equivalent or higher by at least one NRSRO.
• No more than 30% of the total portfolio may be invested in MTNs. • No more than 5% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

O. A pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond of a maximum remaining maturity of five years’ or less, provided that:

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• The securities are rated in a rating category of “AA” or the equivalent or higher by a NRSRO.
• No more than 20% of the total portfolio may be invested in these securities. • No more than 5% of the portfolio may be invested in any single Asset -Backed security issuer.
• The maximum legal final maturity does not exceed five (5) years.

P. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). Money market funds eligible under this paragraph are restricted to those which invest solely in US Government and Agency securities, provided that:
• Such Funds meet either of the following criteria:

A. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
B. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million. • No more than 20% of the total portfolio may be invested in Money Market Funds.

Q. Supranational, provided that:
• Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. • The securities are rated in a rating category of “AA” or the equivalent or higher by a NRSRO.
• No more than 30% of the total portfolio may be invested in these securities. • No more than 10% of the portfolio may be invested in any single issuer. • The maximum maturity does not exceed five (5) years.

IX. Review of Investment Portfolio
All securities purchased by the City must be in compliance with Section VIII Authorized and Suitable Investments at the time of purchase. Because some securities may not comply with Section VIII Authorized and Suitable Investments subsequent to the date of purchase, the Treasurer shall at least annually review the portfolio to identify those securities that do not comply.

Any investment currently held that becomes non-compliant due to a change of the policy after its acquisition will not have to be sold immediately. As long as investments are compliant at the time of purchase, they are acceptable to hold to maturity if that is the Treasurer’s decision. It is not, however, acceptable to reinvest the proceeds of those maturities in any investment that does not meet the most current Investment Policy guidelines. The Treasurer shall establish procedures to report to the City Council and to its oversight committee, should one exist, any incidences of noncompliance identified through the review of the portfolio.

X. Investment Pools/Mutual Funds
A thorough investigation of any permitted pool/fund is required prior to investing, along with periodic due diligence reviews at least annually. The prospectus, program guide or offering statement shall be reviewed to ensure compliance with the following criteria:

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1. A description of eligible investment securities, and a written statement of investment policy and objectives.

2. A description of interest calculations and how it is distributed, and how gains and losses are treated.

3. A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.

5. A schedule for receiving statements and portfolio listings.

6. Are reserves, retained earnings, etc. utilized by the pool/fund?

7. A fee schedule, and when and how is it assessed.

8. Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

XI. Collateral Requirements
California Government Code Sections 53652 and 53667 require depositories to post certain types and levels of collateral for public funds on deposit above the FDIC insurance amounts. The collateral requirements apply to bank deposits, both active (checking and savings accounts) and inactive (non- negotiable time certificates of deposit), and to repurchase agreements.

The City chooses to limit collateral to the following: U.S. Treasuries and Federal Agency Obligations.

Collateral will always be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The right of collateral substitution may be granted.

XII. Authorized Financial Institutions and Dealers
A. For brokers/dealers of government securities and other investments, the Treasurer shall select only brokers/dealers who are licensed and in good standing with the California Department of Securities, the Securities and Exchange Commission, and/or Financial Industry Regulatory Authority, Inc. (FINRA). Before engaging in investment transactions with a broker/dealer, the Treasurer shall obtain a signed verification form that attests the individual reviewed the City’s Investment Policy, and intends to present only those investment recommendations and transactions to the City that is appropriate under the terms and conditions of the Investment Policy.

B. The City may engage the services of one or more external managers to assist in the management of the City’s investment portfolio. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy.

External managers may use their own list of approved broker-dealers. Such managers must be registered under the Investment Advisers Act of 1940.

C. Public deposits shall be made only in qualified public depositories within the State of California as established by State law. Deposits shall be insured by the Federal Deposit Insurance Corporation (FDIC), or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law.

D. The Administrative Services Department shall verify investment trades against the bank transactions and broker confirmation tickets to ensure accuracy. On a monthly basis, the custodial asset statement shall be reconciled with the month end portfolio holdings.

XIII. Maximum Allowable Maturity of Investments
The investment program may include investments with maturities beyond five years, if in the judgment of the Treasurer, such investments should result in a more favorable rate of return for the

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City. Per California Government Code Section 37354, donated securities are not subject to maturity limits. Investments maturing beyond a five-year horizon should not exceed 30% of the total portfolio value at any given time. Investments of greater than five years shall be permitted for US Treasury, US Agency or GSE obligations, and municipal securities, as described in Section VIII Authorized and Suitable Investments, paragraphs A, B and C. Additionally, investments in City Variable Rate obligations, with maturities greater than five years, may be made when IRS and SEC guidelines permit. For purposes of compliance with this Policy, an investment’s term or remaining maturity shall be measured from the settlement date to final maturity.

XIV. Mitigating Risk in the Portfolio
A. Credit Risk
• The City will diversify its investments to diminish the credit risk resulting from concentrations in any one non-governmental issuer.
• If a security owned by the City is downgraded to a level below the quality required for purchase by this Policy, the Treasurer shall review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

B. Market Risk. While the City recognizes that longer term portfolios achieve higher returns, longer term portfolios also have higher volatility of market values and total return. The City will limit market risk by limiting the concentrations, volume and duration of its longer term investments, as well as limiting them to funds which are not needed for current year cash flow purposes. • Maturities selected shall provide for stability of income and liquidity. • Por
tfolio maturities shall be managed to avoid undue concentration in any specific maturity.
• The City may sell a security prior to its maturity (recording a gain or loss) to diminish the portfolio’s exposure to market risk.

C. Diversification is required that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.

D. The City may sell a security prior to its maturity (recording a gain or loss) to adjust the portfolio duration or improve the risk structure, liquidity or yield of the portfolio in response to market condition or City needs.

XV. Safekeeping and Delivery
A. To protect against fraud, embezzlement, or losses caused by collapse of individual securities dealers, all securities owned by the City shall be held in safekeeping by the City’s custodial bank, a third-party bank trust department, acting as agent for the City under the terms of a custody agreement.

B. All security transactions entered into by the City shall be conducted on a standard delivery- versus-payment basis, which ensures that securities are deposited with the third-party custodian prior to the release of funds. All securities purchased or acquired shall be delivered to the City by book entry, physical delivery or by third-party custodial agreement as required by California Government Code Section 53601. Investments in the State Pool, California Asset Management Program, or money market mutual funds are undeliverable and are not subject to third-party safekeeping requirements.

XVI. Diversification
The City’s investments shall be diversified by:
• Limiting investments to avoid over concentration in securities from a specific issuer or

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business sector (excluding U.S. Treasury securities).
• Limiting investment in securities that have higher credit risks. • Investing in securities with varying maturities.
• Continuously investing a portion of the portfolio in readily available funds such as money market funds to ensure that appropriate liquidity is maintained to meet ongoing obligations.

XVII. Performance Evaluation and Operations Audit
Investment of City funds is governed by the California Government Code Section 53600, et seq.

Within the context of those limitations, the analysis and selection of investments includes prudent investment principals, review of investment performance, current and expected interest rate yields (economic and interest rate trends), diversification, and structured maturity composition to meet necessary cash flow requirements.

The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on a market benchmark which reflects the City’s investment objectives and risk preferences.

The Treasurer shall ensure that the City’s annual process of independent review by an external auditor will include a review to assure full compliance with this investment policy and a review of acceptable internal controls.

XVII. Investment Policy Adoption

As stated in California Government Code Section 53646(2)(b), the Treasurer may annually render to the City Council a statement of Investment Policy, and any changes thereto, for consideration at a public meeting.

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Glossary
AGENCIES: Federal agency securities and/or government-sponsored enterprises (GSEs).

ASK PRICE: The price at which securities are offered.

BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BENCHMARK: A `market index used as a comparative base for measuring the relative performance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer.

BROKER/DEALER: A person or firm in the business of buying and selling securities from/to customers.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a Certificate.

Large-denomination CD’s are typically negotiable.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report of a public body. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

COUPON: The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: Delivery of securities with a simultaneous exchange of money for the securities.

DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).

DISCOUNT: The difference between the cost price of a security and its maturity value when quoted at lower than face value.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills.) The difference between the discounted purchase price and the maturity value represents the interest earnings on the investment.

DIVERSIFICATION: Dividing investment funds among a variety of sectors, securities, or maturities that offer independent returns.

DURATION: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.

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FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.

FEDERAL FUNDS RATE: The interest rate at which depository institutions lend reserve balances to other depository institutions overnight. This rate is pegged by the Federal Reserve.

FEDERAL HOME LOAN BANK (FHLB) SYSTEM: A system of 11 regional banks from which local lending institutions across the U.S. borrow funds to finance housing, economic development, infrastructure and jobs. There are approximately 7,100 FHLB System members, including commercial banks, thrifts, credit unions, and insurance companies. Each member is a shareholder in one of the regional FHLBs; each regional Bank is an individual corporate entity, which must meet strict management and capitalization criteria befitting its status as a government-sponsored enterprise.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA or Fannie Mae): Fannie Mae is a government-sponsored enterprise (“GSE”) chartered by Congress. It serves as a stable source of liquidity for purchases of homes and financing of multifamily rental housing, as well as for refinancing existing mortgages. It also supports the liquidity and stability of the U.S. mortgage market primarily by securitizing mortgage loans originated by lenders into Fannie Mae mortgage-backed securities that it guarantees, which are referred to as Fannie Mae MBS.

FEDERAL OPEN MARKET COMMITTEE (FOMC): A committee within the Federal Reserve System (the Fed), that is charged under U.S. law with overseeing the nation's open market operations (i.e., the Fed's buying and selling of United States Treasury securities. It consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents, who serve on a rotating basis.

The Committee meets about 8 times per year to set Federal Reserve monetary policy, including establishing the target for the fed funds rate.

FEDERAL RESERVE SYSTEM: The central bank of the United States . It was created by Congress and consists of a seven member Board of Governors in Washington, D.C., 12 regional banks and about 7 ,000 commercial banks that are members of the system. Its role is to conduct the nation's monetary policy , maintain the stability of the financial system , supervise and regulate financial institutions, foster payment and settlement system safety and efficiency, and promote consumer protection and community development.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae): Secur ities influencing
the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FHA mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.

In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP):

The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all transactions between the parties to a repurchase or reverse repurchase agreement. It establishes each party’s rights in the transactions, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

ATTACHMENT A
93 13

OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid
PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALERS: Banks and securities broker-dealers designated by the Federal Reserve Bank of New York that permit them to trade in U.S. Government securities directly with the Fed in its implementation of monetary policy. They are also expected to make markets for the New York Fed on behalf of its official accountholders as needed, and to bid on a pro-rata basis in all Treasury auctions at reasonably competitive prices.

PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

RATE OF RETURN: The actual realized return on an investment or portfolio of investments over a specified period of time.

REPURCHASE AGREEMENT (REPO): A transaction in which an investor purchases securities from a counterparty with a simultaneous agreement to sell them back at a fixed price on a fixed date in the future.

The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate for this by paying an implied rate of interest for the term of the repo.

REVERSE REPURCHASE AGREEMENT (REVERSE REPO): The opposite transaction to a repo. A reverse-repurchase agreement (reverse repo) involves a counterparty borrowing cash from a financial institution in exchange for a temporary sale of securities used as collateral. The borrower agrees to repurchase the securities at a specified date for an agreed upon price, which includes interest. While a repo is a straightforward investment of funds, the reverse repo is a borrowing which can be used to fund a temporary cash shortage, or to create leverage.

SAFEKEEPING: A fee-based service provided by banks to hold and safeguard customer assets and investments.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES & EXCHANGE COMMISSION: An independent, federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets, and facilitating capital formation. It is also the responsibility of the Commission to interpret and enforce federal securities laws, issue new rules and amend existing rules, oversee the inspection of securities firms, brokers, investment advisers, and ratings agencies, oversee private regulatory organizations in the securities, accounting, and auditing fields, and coordinate U.S. securities regulation with federal, state, and foreign authorities.

SEC RULE 15(C)3-1: See Uniform Net Capital Rule.

STRUCTURED NOTES: Complex notes typically issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and corporations, which have imbedded options or other complications (e.g., variable coupons, derivative-based returns) that can significantly affect their performance.

TREASURY BILLS: A non-interest bearing short-term discount security issued by the U.S. Treasury to finance the national debt. Most T-bills are issued to mature in three months, six months, or one year.

TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

ATTACHMENT A
94 14

TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

ATTACHMENT A
95 15

RESPONSIBILITIES
City Treasurer for implementation of this policy.

RELEVANT AUTHORITY
Article XII, Section 1201, of the City of Stockton Charter

California Government Code Section 53607 allows for the delegation of investment activities to the Treasurer of the City for periods of one year. That delegation, subject to review, is renewable on an annual basis and is to be included as part of the adoption of the annual budget to have the authority in place at July 1 of each year.

Chapter 2.20.050 of the City of Stockton Municipal Code (SMC) defines “Treasurer” as the Director of Administrative Services. Chapter 2.20.060 of the SMC provides that management responsibility for the investment program is delegated to the Administrative Services Director. Under the provision of California Government Code Section 53600.3, the Treasurer is a trustee and therefore a fiduciary subject to the prudent investor standard outlined in the section below.

The City may engage the services of an external investment manager to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such an external manager may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.

RELATED CITY POLICIES

FAIR POLITICAL PRACTICES COMMISSION

RELATED CITY PROCEDURES
N/A

RELATED FORMS, DOCUMENTS, OR LINKS

FAIR POLITICAL PRACTICES COMMISSION

FREQUENTLY ASKED QUESTIONS
N/A

UPDATE HISTORY
N/A

ATTACHMENT A
96 16

ATTACHMENT A
97 Investment Performance Review
For the Quarter Ended June 30, 2026
Client Management Team
PFM Asset Management
A division of U.S. Bancorp Asset Management, Inc
213 Market Street
Harrisburg, PA 17101-2141
717-232-2723
1 California Street Ste. 1000
San Francisco, CA 94111-5411
415-393-7270
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only - This material is not for inspection by, distribution to, or quotation to the general public

CITY OF STOCKTON
Monique Spyke, Managing Director
A
llison Kaune, Relationship Manager
Joseph Creason, Portfolio Manager
Rachael Miller, Client Consultant

ATTACHMENT B
98 PFM Asset Management | pfmam.com
• Market Update
A
ccount Summary•
Portfolio Review•

ATTACHMENT B
99 PFM Asset Management | pfmam.com
Market Update

ATTACHMENT B
100
Current Market Themes
Source: Details on market themes and economic indicators provided throughout the body of the presentation. Bloomberg Finance L.P., as of June 30, 2026.

For the Quarter Ended June 30, 2026
Market Update
▸ U.S. growth remains resilient as AI-driven investment offsets a moderating consumer ▹ Headline inflation may be at or near its peak as the energy shock fades, though flare-ups in the Middle East conflict and potential delayed passthroughs to core inflation remain key risks ▹ The labor market is in balance, though real wage growth remains modest ▹ AI investment continues to drive growth while fueling inflation in tech-related categories ▸ The Federal Reserve (Fed) left policy rates unchanged at 3.50-3.75% ▹ New Fed Chair Kevin Warsh stressed restoring price stability ▹ Forward guidance was removed to refocus markets on economic fundamentals and incoming data rather than the Fed's policy response
▹ Nine participants projected a 2026 rate hike though Warsh did not submit projections ▸ Treasury yields moved higher on a more hawkish Fed
▹ Given current pricing of Fed rate hikes, we continue to find value in the front end ▹ Longer-term rates face two-sided risks from inflation and growth dynamics ▹ Credit spreads remain tight as resilient growth, stable labor conditions, and strong demand outweigh valuation concerns
PFM Asset Management | pfmam.com

CITY OF STOCKTON
1 ATTACHMENT B
101
Source: Bloomberg Finance L.P. and Bureau of Labor Statistics. CPI as of May 2026. Market implied inflation expectations shown using 1-year and 5-year inflation swaps as of June 30, 2026.

For the Quarter Ended June 30, 2026
Market Update
Implications of the Energy Shock
▸ Higher energy costs lift headline inflation but the Fed remains attentive to broader passthroughs to core goods and services
▹ Oil prices ended the quarter near pre-conflict levels after peaking in April ▹ Headline inflation may be at or near peak as energy supply normalizes ▹ Fed remains focused on long-run inflation expectations

2.1%

2.4%
2%
3%
4%
Jun-25 Sep-25 Dec-25 Mar-26 Jun-26
Hundreds
Forward Inflation Expectations
June 30, 2025 to June 30, 2026
1-year 5-year
Energy prices push
headline CPI higher

4.2%

2.9%
0%
1%
2%
3%
4%
5%
May-25 Aug-25 Nov-25 Feb-26 May-26
Consumer Price Index
Year-over-Year Change
CPI Core CPI
PFM Asset Management | pfmam.com

CITY OF STOCKTON
2 ATTACHMENT B
102
3Q26

4.4% 4Q26

4.3%
2Q27

4.3%Jun ‘26

4.2%

3.0%

3.5%

4.0%

4.5%

5.0%
Jun-23 Jun-24 Jun-25 Jun-26 Jun-27
Unemployment Rate
Mean Forecast
Actual

2.1%

0.0%
-2%
0%
2%
4%
6%
8%
May-23 May-24 May-25 May-26
Real Spending & Income
Year-Over-Year Change
Real Personal Spending
Real Personal Income
The personal savings rate is near a
two-decade low at 3.0%
For the Quarter Ended June 30, 2026
Market Update
Source: Bloomberg Finance L.P. and Bureau of Economic Analysis as of May 2026. Bureau of Labor Statistics as of June 2026. Su rvey responses after June 26, 2026, included in mean and forecast range. Shading represents the central 80% of the forecasts.

Labor Market Remains Balanced But Purchasing Power Erodes PFM Asset Management | pfmam.com

CITY OF STOCKTON
3 ATTACHMENT B
103
Source: Bloomberg Finance L.P. and Bureau of Economic Analysis as of March 2026. Tech investment contains contributions to GDP from computers and peripheral equipment, information processing equipment, and software.

For the Quarter Ended June 30, 2026
Market Update
Technology Investment Offsets Moderating Consumption

2.9%

2.5%

4.7%

3.4%

0.8%

3.6%

3.3%

1.9%
-0.6%

3.8%

4.4%

0.5%

2.1%
-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%
1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Contribution to U.S. Real GDP
Tech Investment GDP Personal Consumption
contributed 0.4% to 1Q26 GDP,
the lowest amount since 2022
PFM Asset Management | pfmam.com

CITY OF STOCKTON
4 ATTACHMENT B
104
Sources: Bloomberg Finance L.P. as of June 30, 2026, Bureau of Economic Analysis as of March 31, 2026, and Department of Labor as of June 19, 2026. Survey responses after June 26, 2026, included in median and forecast range. Shading represents the central 80% of the forecasts.

Factors Shaping Our Economic Outlook
For the Quarter Ended June 30, 2026
Market Update
▸ Geopolitical uncertainty and
supply chain disruptions
▸ Savings rate near record low
▸ Increasing retail credit card
balances
▸ Fed policy uncertainty
▸ Core inflation passthrough from
energy shock modest thus far
▸ U.S. growth near trend but led
by AI investment
▸ Low layoffs and stable
unemployment rate
▸ Corporate fundamentals
▸ Supportive fiscal policy
PositiveNeutralNegative
0 10
20 30
40 50
60 Mar-26 Apr-26 May-26 Jun-26
Hormuz Ship Traffic
Daily Volume

4.4%

0.5%

2.1%

2.5%

1.9%
0%
1%
2%
3%
4%
5%
Q3 '25 Q4 '25 Q1 '26 Q2 '26 Q3 '26
U.S. GDP Forecasts
Range Actual Median Forecast
215
150
170
190
210
230
250
270
290
Jun-22 Jun-23 Jun-24 Jun-25 Jun-26
Initial Jobless Claims
Jobless claims remain
low and stable
PFM Asset Management | pfmam.com

CITY OF STOCKTON
5 ATTACHMENT B
105
Source: Federal Reserve and Kevin Warsh as of June 17, 2026.

For the Quarter Ended June 30, 2026
Market Update
Hawkish Lean New Task ForcesLess Forward Guidance
▸ Fed voted unanimously to keep
rates unchanged
▸ New Chair Kevin Warsh
reaffirmed commitment to 2%
inflation target, noting the Fed has
“some work to do”
▸ Dot plot showed 9 of 18
participants projected at least one
hike in 2026
▸ Five task forces established with
initial findings expected by year-
end
▸ Covers communications, balance
sheet, data, productivity and jobs,
and inflation framework
▸ 2% inflation target not in scope of
task forces
▸ Statement pared back and more
factual in nature
▸ No dot or projections submitted by
Warsh
▸ Chair Warsh argued markets
should focus on economic
fundamentals and incoming data
rather than anticipated policy
responses
New Fed Leadership and a Modified Approach
PFM Asset Management | pfmam.com

CITY OF STOCKTON
6 ATTACHMENT B
106

3.6%

2.3% 2.0% 2.0%
0%
1%
2%
3%
4%
2026 2027 2028 Longer
Run
PCE Inflation
Mar Projections Jun Projections

2.2% 2.3% 2.2% 2.0%
0%
1%
2%
3%
2026 2027 2028 Longer
Run
Change in Real GDP
Mar Projections Jun Projections
For the Quarter Ended June 30, 2026
Market Update
Source: Federal Reserve, latest economic projections as of June 2026.

4.3% 4.3% 4.2% 4.2%
0%
2%
4%
6%
2026 2027 2028 Longer
Run
Unemployment Rate
Mar Projections Jun Projections

3.8% 3.6% 3.4% 3.1%
0%
1%
2%
3%
4%
5%
2026 2027 2028 Longer
Run
Federal Funds Rate
Mar Projections Jun Projections
Fed’s Updated Summary of Economic Projections
PFM Asset Management | pfmam.com

CITY OF STOCKTON
7 ATTACHMENT B
107
The Fed acknowledged inflation remained above the 2% target. However, it noted economic growth is expanding at a solid pace while the unemployment rate has remained little changed.

The Latest Fed “Dot Plot”
Source: Federal Reserve; Bloomberg Finance L.P. Individual dots represent each Fed member’s judgement of the midpoint of the appropriate target range for the federal funds rate at each year-end. As of June 17, 2026.

For the Quarter Ended June 30, 2026
Market Update
0%
1%
2%
3%
4%
5%
Fed Participants’ Assessments of ‘Appropriate’ Monetary Policy Jun-26 FOMC Projections
Mar-26 Median
Jun-26 Median
2026 Longer Term2027 2028

3.1%3.8% 3.6% 3.4%
PFM Asset Management | pfmam.com

CITY OF STOCKTON
8 ATTACHMENT B
108
Source: Bloomberg Finance L.P., as of June 30, 2026.

For the Quarter Ended June 30, 2026
Market Update

3.50%

3.75%

4.00%

4.25%
Mar-26 Apr-26 May-26 Jun-26
2-Year U.S. Treasury Yield
March 31, 2026 – June 30, 2026
Apr 29th
Fed signals a long
pause given uncertainty
from the energy shock
Jun 17th
Fed meeting more
hawkish than expected
May 11-15th
CPI and PPI exceeded
expectations and provided
the first indication of the
impact of the energy shock
May 29th
Announcement of
tentative agreement
between U.S. & Iran
2-Year Treasury Yield Moves Higher
PFM Asset Management | pfmam.com

CITY OF STOCKTON
9 ATTACHMENT B
109
Source: Bloomberg Finance L.P., as of June 30, 2026.

For the Quarter Ended June 30, 2026
Market Update

3.81%

4.17%

4.23%

4.34%

4.47%

4.96% 4.95%

3.00%

3.50%

4.00%

4.50%

5.00%

5.50%Yield
Maturity
U.S. Treasury Yield Curve
1 Year Range
June 30, 2026
March 31, 2026
3mo 2yr 5yr 7yr 10yr 20yr 30yr
Treasury Yields Rise Across the Curve
PFM Asset Management | pfmam.com

CITY OF STOCKTON
10 ATTACHMENT B
110
Source: ICE BofA 1-5 year Indices via Bloomberg Finance L.P. as of June 30, 2026. Spreads on ABS and MBS are option-adjusted spreads based on weighted average life; spreads on agencies are relative to comparable maturity Treasuries.

CMBS is Commercial Mortgage-Backed Securities and represented by the ICE BofA Agency CMBS Index.

Sector Yield Spreads
For the Quarter Ended June 30, 2026
Market Update
-20
0 20
40 60
80 100
Federal
Agency
Agency
CMBS
Mortgage
Backed
AAA Auto
ABS
AAA Credit
Card ABS
AAA
Corp
AA
Corp
A
Corp
BBB
Corp
1-5 Year Yield Spreads
2026 Range 6/30/2026 3/31/2026
PFM Asset Management | pfmam.com

CITY OF STOCKTON
11 ATTACHMENT B
111
Source: ICE BofA Indices. ABS indices are 0-5 year, based on weighted average life. Agency CMBS represented by ICE BofA Agency CMBS Index. As of June 30, 2026.

Fixed-Income Index Excess Returns
For the Quarter Ended June 30, 2026
Market Update

0.00%
-0.04%

0.17%

0.80%

0.18%

0.46%0.47%

0.83%
-0.25%

0.00%

0.25%

0.50%

0.75%

1.00%
2Q26 1-Year
Excess Returns
1-5 Year Indices
Federal Agency Agency CMBS ABS Corp A-AAA
PFM Asset Management | pfmam.com

CITY OF STOCKTON
12 ATTACHMENT B
112
For the Quarter Ended June 30, 2026
Market Update
Source: ICE BofA Indices. ABS indices are 0-5 year, based on weighted average life. As of June 30, 2026. 1-5 Year Indices
Fixed-Income Index Total Returns in 2Q 2026

2.71%

2.99%

3.95%

3.65%

4.25%
0%
1%
2%
3%
4%
5%
U.S. Treasury
Agency
ABS
Corp A-AAA
Corp BBB
1-Year Return

0.23% 0.33%

0.75% 0.71%

1.09%
0%
1%
2%
3%
4%
5%
U.S. Treasury
Agency
ABS
Corp A-AAA
Corp BBB
Second Quarter 2026 Returns
PFM Asset Management | pfmam.com

CITY OF STOCKTON
13 ATTACHMENT B
113
The views expressed within this material constitute the perspective and judgment of PFM Asset Management at the time of distribution (6/30/2026) and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management cannot guarantee its accuracy, completeness, or suitability.

Fixed-Income Sector Commentary – 2Q 2026
For the Quarter Ended June 30, 2026
Market Update
▸ The Federal Reserve held rates steady at Kevin
Warsh’s first meeting as Chair, removing forward
guidance from the policy statement and reaffirming its
commitment to price stability. The June “dot plot”
turned more hawkish, showing no rate cuts in 2026
and nine policymakers penciling at least one hike this
year.
▸ The U.S. Treasury yield curve continued to flatten
over the quarter. with a notable sell-off in the front
end. The 2-year yield surpassed 4% for the first time
in over one year, which is a key technical threshold.
▸ Federal Agency & supranational issuance
remained limited, keeping spreads narrow and
excess returns muted. Market concerns around
privatization have abated for the time being.
▸ Investment-grade (IG) corporate bonds benefited
from strong investor demand and generally healthy
corporate fundamentals. Credit spreads returned
toward historically rich valuations, supporting excess
returns during the quarter.
▸ Asset-Backed Securities continued to benefit from
resilient collateral performance and strong investor
demand. Spreads narrowed modestly but widened
versus corporates, improving relative value. Auto loan
collateral marginally outperformed credit card
receivables, which posted negative excess returns for
the quarter.
▸ Thirty-year Agency-backed mortgage-backed
securities (MBS) generated solid excess returns in
the quarter and outperformed 15-year tenors, which
lagged Treasuries. Lower volatility supported excess
returns. Agency-backed commercial MBS (CMBS)
also generated positive excess returns for the quarter
but continue to trail residential MBS.
▸ Short-term credit (commercial paper and negotiable
bank CDs) yield spreads remained attractive through
the quarter, with additional opportunities emerging
across the money market credit curve into quarter-
end. Floating-rate notes also saw notable spread
widening, ending the quarter 10-15 bps wider.

PFM Asset Management | pfmam.com

CITY OF STOCKTON
14 ATTACHMENT B
114
The views expressed within this material constitute the perspective and judgment of PFM Asset Management at the time of distribution (6/30/2026) and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management cannot guarantee its accuracy, completeness, or suitability.

Fixed-Income Sector Outlook – 3Q 2026
For the Quarter Ended June 30, 2026
Market Update
▸ We find the front end of the U.S. Treasury curve
attractive given current pricing for Fed rate hikes. For shorter-duration strategies, we prefer a modestly
longer duration stance and for longer duration
strategies we will maintain a curve steepening bias
through a modest underweight to the long end.
▸ Federal Agency & Supranational spreads are likely
to remain at tight levels. Government-only accounts
may find occasional value on an issue-by-issue basis.
▸ Taxable Municipals continue to offer limited
opportunity as ongoing supply constraints and strong
demand keep yields compressed. We do not expect
this dynamic to change in the near term.
▸ Investment-Grade (IG) Corporate bonds are
supported by technicals and stable fundamentals. All-
in yields remain attractive; however, the recent
spread tightening has reduced value in the sector.

While corporate fundamentals remain favorable, we
believe limited room exists for further spread
compression and expect income generation and carry
to be the primary contributors to returns going
forward.
▸ Asset-Backed Securities fundamentals remain
within expectations and credit enhancements remain
robust. Prime loan delinquencies are stable and well
below historical averages, though the subprime
sector has shown some pressure. We remain
constructive on the sector given its diversification
benefits and favorable fundamentals. We believe
security selection will become increasingly important
as spreads remain below longer-term averages.
▸ Despite recent Mortgage-Backed Securities
performance, we continue to view valuations as rich
relative to historical levels, which may limit future
excess return opportunities.
▸ Short-term credit (commercial paper and negotiable
bank CDs) spreads are expected to be primarily
driven by the FOMC's monetary policy decisions.

Given the hawkish repricing we anticipate more
opportunities over the quarter.

PFM Asset Management | pfmam.com

CITY OF STOCKTON
15 ATTACHMENT B
115
Excess return potential
Limited Carry-
driven Strong
Sector Our Investment Preferences

C O M M E R C I A L P A P E R
/ C D

T R E A S U R I E S
T-Bill
T-Note

F E D E R A L A G E N C I E S
Bullets
Callables

S U P R A N AT I O N A L S

C O R P O R AT E S

S E C U R I T I Z E D
Asset-Backed
Agency Mortgage-Backed
Agency CMBS

M U N I C I P A L S
Current outlook Outlook one quarter ago
For the Quarter Ended June 30, 2026
Market Update
Fixed-Income Sector Outlook – 3Q 2026
PFM Asset Management | pfmam.com

CITY OF STOCKTON
16 ATTACHMENT B
116
PFM Asset Management | pfmam.com
Account Summary

ATTACHMENT B
117
PFM Asset Management | pfmam.com

CITY OF STOCKTON
Sector Allocation
U.S. Treasury | 33%
Federal Agency | 3%
Agency MBS | 12%
Municipal | <1%
Negotiable CD | <1%
Corporate | 22%
Asset-Backed | 10%
MMF | <1%
LAIF | <1%
CAMP | 5%
Cash | <1%
BMO Main Account | 14%
Consolidated Summary
Account Summary
Reserve Portfolio1 $837,437,972
Short Term Portfolio1 $4,337,708
BMO Main Account $148,839,218
CAMP Pool $53,210,580
Local Agency Investment Fund $905,659
Total Program $1,044,731,137

1. Reserve Portfolio includes both the PFMAM Reserve portfolio assets and Chandler Asset Management assets. Short-Term Portfolio comprises assets managed by Chandler Asset Management.

Portfolio figures include cash in portfolios’ sweep accounts and includes accrued interest.

21.0%

0.7% 0.0% 0.3%

2.1%

6.8%

23.4%

17.1%

19.4%

5.4% 3.9%

0.0%
$0
$100
$200
$300
30 Days
and Under
31 to 60
days
61 to 90
days
91 to 180
days
181 to 1
year
1 to 2
years
2 to 3
years
3 to 4
years
4 to 5
years
5 to 7
years
7 to 10
years
Over 10
years
Millions
Maturity Distribution
Weighted Average Maturity: 1,041 days
For the Quarter Ended June 30, 2026
Account Summary
18 ATTACHMENT B
118
PFM Asset Management | pfmam.com
Portfolio Review:

CITY OF STOCKTON RESERVE PORTFOLIO

ATTACHMENT B
119
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Compliance
Note: Pre- and post-trade compliance for the account(s) managed by PFM Asset Management is provided via Bloomberg Financial LP Asset and Investment Management ("AIM").

Certificate of Compliance
During the reporting period for the quarter ended June 30, 2026, the account(s) managed by PFM Asset Management ("PFMAM") w
ere in compliance with the applicable investment policy and guidelines as furnished to PFMAM.

Acknowledged : PFM Asset Management, a division of U.S. Bancorp Asset Management, Inc. 20 ATTACHMENT B
120
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Snapshot
Portfolio Snapshot - CITY OF STOCKTON RESERVE PORTFOLIO¹ Credit Quality - S&P
10%
17%
24%
19%
16%
6% 5% 3%4%
27%
22%
18% 1
2%
8% 6% 3%
0%
5%
10%
15%
20%
25%
30%
0-1 Yr 1-2
Yrs
2-3
Yrs
3-4
Yrs
4-5
Yrs
5-6
Yrs
6-7
Yrs
> 7
Yrs
Portfolio Benchmark
Duration Distribution
U.S. Treasury | 38%
Corporate | 27%
Agency CMBS | 19%
ABS | 15%
Negotiable CD | 1%
Municipal | <1%
Federal Agency | <1%
Sector Allocation
AAA | 11%
AA+ | 60%
AA | 2%
AA- | 7%
A+ | 9%
A | 5%
A- | 2%
A-1 | 1%
Not Rated | 4%
Portfolio Statistics
Portfolio Effective Duration 3.1 4 years
Benchmark Effective Duration 3.20 years
Portfolio Credit Quality AA
Yield At Market 4.36%
Yield At Cost 4.33%
Total Market Value $491,742,170.45
$487,788,456.23Securities Sub-Total
$53,627.58Cash
$3,900,086.64Accrued Interest
Yield and duration calculations exclude cash and cash equivalents. Sector allocation includes market values and accrued interest.

The portfolio’s benchmark is Ccurrently 80% ICE BofA 1-5 Year AAA-A US Corporate & Government Index and 20% ICE BofA 5-10 Year US Treasury Index. Prior to 3/31/23 it was the ICE BofA 1-5 Year AAA-A US Corporate & Government Index. Source: Bloomberg Financial LP.AA An average of each security’s credit rating was assigned a numeric value and adjusted for its relative weighting in the portfolio.

1. 21
ATTACHMENT B 121
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Characteristics
$0.0
$98.0
$196.0
$294.0
$392.0
$490.0
Millions
June 2026
$0.0
$98.0
$196.0
$294.0
$392.0
$490.0
Millions
March 2026
$0.0
$98.0
$196.0
$294.0
$392.0
$490.0
Millions
December 2025
$0.0
$98.0
$196.0
$294.0
$392.0
$490.0
Millions
September 2025
Sector Allocation Review - CITY OF STOCKTON RESERVE PORTFOLIO U.S. Treasury Federal Agency Agency CMBS Municipal Negotiable CD Corporate ABS Market values, excluding accrued interest. Only includes fixed-income securities held within the separately managed account(s) and LGIPs managed by PFMAM. Detail may not add to total due to rounding.

Sep-25 % of TotalSecurity Type Dec-25 % of Total Mar-26 % of Total % of TotalJun-26 U.S. Treasury $228.9 47.6% $212.7 43.8% $199.1 40.9% $183.2 37.5% Federal Agency $0.8 0.2% $0.8 0.2% $0.8 0.2% $0.8 0.2%
Agency CMBS $93.9 19.6% $93.5 19.3% $93.5 19.2% $92.6 19.0% Municipal $0.0 0.0% $0.0 0.0% $0.0 0.0% $1.3 0.3%
Negotiable CD $4.2 0.9% $4.2 0.9% $4.2 0.9% $4.2 0.9%
Corporate $101.6 21.2% $115.8 23.9% $124.2 25.6% $133.3 27.3% ABS $50.5 10.5% $57.9 11.9% $64.3 13.2% $72.4 14.8%
Total $480.0 100.0% $484.9 100.0% $486.2 100.0% $487.8 100.0% 22 ATTACHMENT B
122
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Portfolio Activity - CITY OF STOCKTON RESERVE PORTFOLIO Net Activity by Sector
(
$ millions)
U.S. Treasury
Agency CMBS
Municipal
ABS
Corporate
U.S. Treasury
A
gency CMBS
Municipal
ABS
Corporate
($40.0) ($20.0) $0.0 $20.0 $40.0
Based on total proceeds (principal and accrued interest) of buys, sells, maturities, and principal paydowns. Detail may not add to total due to rounding.

Sector Net Activity
Corporate $9,573,673
ABS $8,377,866
Municipal $1,285,000
Agency CMBS ($231,084)
U.S. Treasury ($14,484,260)
$4,521,195Total Net Activity
Sales/Maturities Purchases
23 ATTACHMENT B
123
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CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Performance

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%
Return
Portfolio Benchmark
Portfolio Performance
Market Value Basis Earnings 3 Months 1 Year 3 Years 5 Years Since Inception¹ Interest Earned² $4, 986,482 $19,203,098 $46,097,225 $58,768,749 $93,969,641 Change in Market Value ($3,138,643) ($4,106,976) $15,552,531 ($23,454,047) ($9,905,028) $1,847,839Total Dollar Return $15,096,122 $61,649,756 $35,314,702 $84,064,613 Total Return³
Portfolio 0.38% 3.17% 4.59% 1.82% 2.18%
Benchmark⁴ 0.27% 2.82% 4.35% 1.51% 1.97%
3 Months 1 Year 3 Years 5 Years Since Inception
The lesser of 10 years or since inception is shown. Since inception returns for periods one year or less are not shown. Performance inception date is June 30, 2017.1.

2. Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.

3. Returns for periods one year or less are presented on a periodic basis. Returns for periods greater than one year are presented on an annualized basis.

4. The portfolio's benchmark is currently 80% ICE BofA 1-5 Year AAA-A US Corporate & Government Index and 20% ICE BofA 5-10 Year US Treasury Index. Prior to 3/31/23 it was the ICE BofA 1-5 Year AAA-A US Corporate & Government Index. Source: Bloomberg Financial LP. 24 ATTACHMENT B
124
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CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Performance
The lesser of 10 years or since inception is shown. Performance inception date is June 30, 2017.1.

Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.2.

Realized gains / (losses) are shown on an amortized cost basis.3.

Accrual Basis Earnings - CITY OF STOCKTON RESERVE PORTFOLIO Accrual Basis Earnings
Interest Earned²
Re
alized Gains / (Losses)³
Change in Amortized Cost
Total Earnings
3 Months
$4,986,482
($
220,308)
$258,052
$5,024,226
1 Year
$19,203,098
($
293,637)
$1,343,338
$20,252,798
3 Years
$46,097,225
($
6,015,396)
$5,866,302
$45,948,130
5 Year
$58,768,749
($
19,243,257)
$19,621,554
$59,147,045
Since Inception¹
$93,969,641
($
14,593,455)
$20,743,107
$100,119,293
25 ATTACHMENT B
125
Statements and opinions expressed about the next 6-12 months were developed based on our independent research with information obtained from Bloomberg Finance L.P. and FactSet. The views expressed within this material constitute the perspective and judgment of PFM Asset Management at the time of distribution (6/30/2026) and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management cannot guarantee its accuracy, completeness, or suitability.

Stance Unfavorable
to Risk Assets
Stance Favorable
to Risk Assets Current outlook Outlook one quarter ago Negative Slightly Negative Neutral Slightly
Positive Positive
Factors to Consider for 6-12 Months
For the Quarter Ended June 30, 2026
Market Update
Monetary Policy (Global):
• The Federal Reserve held rates steady at Chair
Warsh’s first meeting and removed forward
guidance while shifting its focus to price stability.
• The June “dot plot” shifted more hawkish, showing
no projected rate cuts in 2026 while nine
policymakers projected at least one hike this year.
• Warsh launched five task forces to review Fed
operations and key policy frameworks.
• Global central banks diverged, with ECB and BoJ
hiking on persistent inflation while others remain on
hold.

Economic Growth (Global):
• Global growth prospects improved following easing
Middle East tensions, easing a key overhang on
global supply chains and energy prices.
• AI-related capex and easing tariff pressures are
expected to continue offsetting softening in
consumer demand.
• Risks remain skewed to the downside given
geopolitical uncertainty and signs of softer
consumer demand.

Inflation (U.S.):
• Headline inflation remains above target but may be
at or near its peak as falling oil prices provide a
disinflationary impulse.
• Core services inflation remains sticky while core
goods inflation remains muted as easing tariff
pressures offset AI-fueled inflation.
• Producer prices suggest lingering supply-chain
pressures, increasing the risk of cost passthroughs.
• While long-run inflation expectations remain
anchored, the Fed remains focused on the
passthrough of higher energy into core inflation.

Financial Conditions (U.S.):
• Equity and fixed-income markets largely looked
through the Middle East conflict, remaining focused
on fundamentals and earnings strength.
• Strong corporate fundamentals persist and credit
spreads are back near historical tights reflecting
investor demand for yield.
• AI-related capex continues to drive significant
capital flows, supporting equity valuations and
elevated investment-grade issuance.
• Elevated valuations, large capital raises, geopolitical uncertainty, and energy price volatility remain key
risks.

Consumer Spending (U.S.):
• Consumers remained resilient throughout the
quarter despite higher energy costs but are
beginning to show signs of softening.
• Real wages have turned modestly negative as
inflation outpaces nominal wage gains, eroding
purchasing power.
• The savings rate has fallen to multi-year lows,
leaving consumers with less cushion.
• Consumer spending remains supported by higher-
income households while affordability pressures
persist for lower-income consumers.

Labor Markets (U.S.):
• The labor market has continued to show resilience,
with recent payroll gains exceeding expectations
and the unemployment rate holding steady.
• Hiring breadth remains narrow, concentrated in
healthcare and social assistance.
• The “low-hire, low-fire” dynamic persists, with labor demand stable but hiring activity subdued.
• Slowing population growth and a softer labor force
participation rate point to a structurally tighter supply of labor going forward.

PFM Asset Management | pfmam.com

CITY OF STOCKTON
26 ATTACHMENT B
126
PFM Asset Management | pfmam.com
Reserve Portfolio Holdings and Transactions

ATTACHMENT B
127
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Managed Account Detail of Securities Held
Security Type/Description
D
ated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury

US TREASURY N/B
DTD 11/16/2020 0.875% 11/15/2030
91282CAV3 1,330,000.00 AA+ Aa1 11/30/2022 11/30/2022 1,071,065.63 3.72 1,486.31 1,154,917.471,187,661.81

US TREASURY N/B
DTD 12/01/2025 3.500% 11/30/2030
91282CPN5 4,200,000.00 AA+ Aa1 12/3/2025 12/5/2025 4,176,046.88 3.63 12,450.82 4,082,202.604,178,589.99

US TREASURY N/B
DTD 12/31/2025 3.625% 12/31/2030
91282CPR6 245,000.00 AA+ Aa1 1/2/2026 1/5/2026 243,803.71 3.73 24.13 239,229.02243,911.83

US TREASURY N/B
DTD 02/02/2026 3.750% 01/31/2031
91282CPW5 4,395,000.00 AA+ Aa1 2/5/2026 2/10/2026 4,394,828.32 3.75 68,747.76 4,312,079.544,394,853.23

US TREASURY N/B
DTD 01/31/2024 4.000% 01/31/2031
91282CJX0 1,350,000.00 AA+ Aa1 1/30/2025 1/31/2025 1,323,210.94 4.38 22,524.86 1,338,292.801,328,932.10

US TREASURY N/B
DTD 02/02/2026 3.750% 01/31/2031
91282CPW5 6,300,000.00 AA+ Aa1 2/4/2026 2/5/2026 6,280,558.59 3.82 98,546.27 6,181,137.906,282,015.40

US TREASURY N/B
DTD 02/16/2021 1.125% 02/15/2031
91282CBL4 565,000.00 AA+ Aa1 4/6/2022 4/11/2022 498,104.88 2.63 2,387.98 493,028.61530,020.81

US TREASURY N/B
DTD 02/15/2001 5.375% 02/15/2031
912810FP8 2,955,000.00 AA+ Aa1 7/7/2023 7/10/2023 3,201,326.95 4.09 59,671.41 3,102,173.783,104,907.29

US TREASURY N/B
DTD 02/15/2001 5.375% 02/15/2031
912810FP8 1,800,000.00 AA+ Aa1 1/10/2023 1/11/2023 2,021,273.44 3.61 36,348.07 1,889,649.001,926,463.35

US TREASURY N/B
DTD 02/15/2001 5.375% 02/15/2031
912810FP8 1,820,000.00 AA+ Aa1 2/27/2023 2/28/2023 1,991,620.31 3.98 36,751.93 1,910,645.101,919,703.79

US TREASURY N/B
DTD 03/02/2026 3.500% 02/28/2031
91282CQD6 5,000,000.00 AA+ Aa1 3/13/2026 3/16/2026 4,917,968.75 3.87 58,491.85 4,853,320.004,922,382.61

US TREASURY N/B
DTD 04/01/2024 4.125% 03/31/2031
91282CKF7 2,535,000.00 AA+ Aa1 4/25/2024 4/26/2024 2,446,175.98 4.72 26,285.04 2,525,493.752,471,107.85

US TREASURY N/B
DTD 04/30/2024 4.625% 04/30/2031
91282CKN0 1,560,000.00 AA+ Aa1 6/26/2026 6/30/2026 1,592,906.25 4.14 12,155.71 1,587,909.961,592,893.80

US TREASURY N/B
DTD 05/17/2021 1.625% 05/15/2031
91282CCB5 1,265,000.00 AA+ Aa1 11/30/2022 11/30/2022 1,070,802.73 3.76 2,625.39 1,122,242.221,153,122.75

US TREASURY N/B
DTD 05/17/2021 1.625% 05/15/2031
91282CCB5 2,930,000.00 AA+ Aa1 1/11/2023 1/12/2023 2,530,673.05 3.53 6,080.94 2,599,343.642,696,698.64 28 ATTACHMENT B
128
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury

US TREASURY N/B
DTD 05/31/2024 4.625% 05/31/2031
91282CKU4 5,000,000.00 AA+ Aa1 6/4/2025 6/5/2025 5,147,656.25 4.06 19,586.75 5,089,650.005,123,782.41

US TREASURY N/B
DTD 07/31/2024 4.125% 07/31/2031
91282CLD1 730,000.00 AA+ Aa1 8/14/2024 8/15/2024 748,164.45 3.72 12,560.74 726,977.07743,715.29

US TREASURY N/B
DTD 08/16/2021 1.250% 08/15/2031
91282CCS8 2,465,000.00 AA+ Aa1 2/27/2023 2/28/2023 1,994,627.93 3.92 11,575.97 2,130,395.972,180,188.95

US TREASURY N/B
DTD 08/16/2021 1.250% 08/15/2031
91282CCS8 562,500.00 AA+ Aa1 4/6/2022 4/11/2022 498,515.62 2.63 2,641.57 486,145.13527,423.89

US TREASURY N/B
DTD 11/15/2021 1.375% 11/15/2031
91282CDJ7 2,080,000.00 AA+ Aa1 1/10/2023 1/11/2023 1,739,075.00 3.55 3,652.72 1,796,275.521,872,806.26

US TREASURY N/B
DTD 11/15/2021 1.375% 11/15/2031
91282CDJ7 1,305,000.00 AA+ Aa1 11/30/2022 11/30/2022 1,068,927.54 3.77 2,291.73 1,126,990.171,163,370.95

US TREASURY N/B
DTD 01/31/2025 4.375% 01/31/2032
91282CMK4 3,400,000.00 AA+ Aa1 2/4/2025 2/5/2025 3,386,984.38 4.44 62,047.65 3,421,913.003,389,295.23

US TREASURY N/B
DTD 02/15/2022 1.875% 02/15/2032
91282CDY4 2,365,000.00 AA+ Aa1 2/27/2023 2/28/2023 1,999,625.98 3.94 16,659.53 2,086,280.022,135,664.75

US TREASURY N/B
DTD 05/16/2022 2.875% 05/15/2032
91282CEP2 1,150,000.00 AA+ Aa1 11/30/2022 11/30/2022 1,067,164.06 3.79 4,222.66 1,067,657.701,098,557.30

US TREASURY N/B
DTD 05/16/2022 2.875% 05/15/2032
91282CEP2 2,670,000.00 AA+ Aa1 1/11/2023 1/12/2023 2,525,548.83 3.56 9,803.91 2,478,822.662,579,162.19

US TREASURY N/B
DTD 05/16/2022 2.875% 05/15/2032
91282CEP2 660,000.00 AA+ Aa1 8/5/2022 8/9/2022 662,629.69 2.83 2,423.44 612,742.68661,581.35

US TREASURY N/B
DTD 05/16/2022 2.875% 05/15/2032
91282CEP2 1,100,000.00 AA+ Aa1 7/2/2024 7/3/2024 988,410.16 4.41 4,039.06 1,021,237.801,013,190.36

US TREASURY N/B
DTD 05/16/2022 2.875% 05/15/2032
91282CEP2 2,175,000.00 AA+ Aa1 1/10/2023 1/11/2023 2,056,224.61 3.57 7,986.33 2,019,265.652,100,330.24

US TREASURY N/B
DTD 08/15/2022 2.750% 08/15/2032
91282CFF3 2,195,000.00 AA+ Aa1 2/27/2023 2/28/2023 1,991,190.82 3.93 22,677.62 2,015,883.612,063,078.37

US TREASURY N/B
DTD 09/02/2025 3.875% 08/31/2032
91282CNW7 2,500,000.00 AA+ Aa1 9/2/2025 9/3/2025 2,484,277.34 3.98 32,379.42 2,446,095.002,485,923.08

US TREASURY N/B
DTD 11/15/2022 4.125% 11/15/2032
91282CFV8 1,520,000.00 AA+ Aa1 5/14/2025 5/15/2025 1,500,346.88 4.33 8,007.88 1,506,344.321,502,919.54

US TREASURY N/B
DTD 11/15/2022 4.125% 11/15/2032
91282CFV8 1,055,000.00 AA+ Aa1 11/30/2022 11/30/2022 1,084,877.93 3.78 5,558.10 1,045,521.881,074,127.46 29 ATTACHMENT B
129
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury

US TREASURY N/B
DTD 11/15/2022 4.125% 11/15/2032
91282CFV8 1,965,000.00 AA+ Aa1 1/10/2023 1/11/2023 2,054,269.34 3.57 10,352.29 1,947,346.442,022,816.54

US TREASURY N/B
DTD 11/15/2022 4.125% 11/15/2032
91282CFV8 3,225,000.00 AA+ Aa1 7/7/2023 7/10/2023 3,242,006.84 4.06 16,990.40 3,196,026.603,236,595.12

US TREASURY N/B
DTD 12/01/2025 3.750% 11/30/2032
91282CPM7 2,300,000.00 AA+ Aa1 12/3/2025 12/5/2025 2,289,847.66 3.82 7,305.33 2,231,000.002,290,593.13

US TREASURY N/B
DTD 02/15/2023 3.500% 02/15/2033
91282CGM7 2,065,000.00 AA+ Aa1 2/27/2023 2/28/2023 1,993,450.98 3.92 27,153.04 1,970,220.632,017,412.04

US TREASURY N/B
DTD 05/15/2023 3.375% 05/15/2033
91282CHC8 1,075,000.00 AA+ Aa1 7/2/2024 7/3/2024 992,191.41 4.43 4,633.75 1,015,328.901,008,121.16

US TREASURY N/B
DTD 08/15/2023 3.875% 08/15/2033
91282CHT1 2,385,000.00 AA+ Aa1 10/2/2023 10/2/2023 2,236,496.48 4.67 34,720.86 2,319,226.472,277,813.83

US TREASURY N/B
DTD 11/15/2023 4.500% 11/15/2033
91282CJJ1 4,340,000.00 AA+ Aa1 10/16/2024 10/17/2024 4,504,784.38 4.00 24,943.21 4,383,569.264,478,166.70

US TREASURY N/B
DTD 02/15/2024 4.000% 02/15/2034
91282CJZ5 3,880,000.00 AA+ Aa1 4/25/2024 4/26/2024 3,667,357.81 4.70 58,307.18 3,790,577.643,706,655.61

US TREASURY N/B
DTD 05/15/2024 4.375% 05/15/2034
91282CKQ3 1,000,000.00 AA+ Aa1 7/2/2024 7/3/2024 995,156.25 4.44 5,587.64 1,000,313.00995,977.71

US TREASURY N/B
DTD 08/15/2024 3.875% 08/15/2034
91282CLF6 8,450,000.00 AA+ Aa1 9/4/2024 9/5/2024 8,514,365.23 3.78 123,015.19 8,161,838.108,504,347.66

US TREASURY N/B
DTD 02/18/2025 4.625% 02/15/2035
91282CMM0 4,350,000.00 AA+ Aa1 4/1/2025 4/2/2025 4,521,621.09 4.13 75,584.25 4,418,986.654,503,548.44

US TREASURY N/B
DTD 08/15/2025 4.250% 08/15/2035
91282CNT4 7,450,000.00 AA+ Aa1 5/27/2026 5/28/2026 7,338,832.03 4.45 118,953.04 7,355,131.707,339,762.32

US TREASURY N/B
DTD 08/15/2025 4.250% 08/15/2035
91282CNT4 2,500,000.00 AA+ Aa1 9/2/2025 9/3/2025 2,494,335.94 4.28 39,917.13 2,468,165.002,494,720.75

US TREASURY N/B
DTD 11/17/2025 4.000% 11/15/2035
91282CPJ4 2,300,000.00 AA+ Aa1 12/3/2025 12/5/2025 2,288,769.53 4.06 11,750.00 2,224,891.202,289,314.31

US TREASURY N/B
DTD 02/17/2026 4.125% 02/15/2036
91282CPZ8 2,400,000.00 AA+ Aa1 3/13/2026 3/16/2026 2,369,718.75 4.28 37,193.37 2,341,500.002,370,461.17

US TREASURY N/B
DTD 08/15/2019 1.625% 08/15/2029
912828YB0 520,000.00 AA+ Aa1 3/21/2022 3/22/2022 496,518.75 2.29 3,174.59 481,873.60510,088.01

US TREASURY N/B
DTD 08/16/1999 6.125% 08/15/2029
912810FJ2 415,000.00 AA+ Aa1 1/10/2023 1/11/2023 473,002.73 3.72 9,549.59 438,554.57442,483.85 30 ATTACHMENT B
130
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury

US TREASURY N/B
DTD 10/31/2024 4.125% 10/31/2029
91282CLR0 1,700,000.00 AA+ Aa1 11/1/2024 11/4/2024 1,695,816.41 4.18 11,814.54 1,697,276.601,697,115.85

US TREASURY N/B
DTD 10/31/2024 4.125% 10/31/2029
91282CLR0 950,000.00 AA+ Aa1 11/14/2024 11/15/2024 942,949.22 4.29 6,602.24 948,478.10945,104.79

US TREASURY N/B
DTD 11/30/2022 3.875% 11/30/2029
91282CFY2 1,070,000.00 AA+ Aa1 11/30/2022 11/30/2022 1,069,289.45 3.89 3,511.85 1,059,676.641,069,653.20

US TREASURY N/B
DTD 12/31/2024 4.375% 12/31/2029
91282CMD0 580,000.00 AA+ Aa1 1/6/2025 1/7/2025 578,708.59 4.43 68.95 583,738.10579,064.28

US TREASURY N/B
DTD 01/03/2023 3.875% 12/31/2029
91282CGB1 2,030,000.00 AA+ Aa1 1/10/2023 1/11/2023 2,059,339.84 3.64 213.76 2,010,016.682,044,739.06

US TREASURY N/B
DTD 01/31/2025 4.250% 01/31/2030
91282CMG3 470,000.00 AA+ Aa1 2/5/2025 2/6/2025 470,110.16 4.24 8,332.11 471,028.36470,081.98

US TREASURY N/B
DTD 02/18/2020 1.500% 02/15/2030
912828Z94 542,500.00 AA+ Aa1 4/6/2022 4/11/2022 498,040.43 2.66 3,057.18 494,226.18521,952.76

US TREASURY N/B
DTD 02/28/2023 4.000% 02/28/2030
91282CGQ8 1,875,000.00 AA+ Aa1 3/4/2025 3/5/2025 1,875,512.70 3.99 25,067.93 1,863,646.871,875,392.68

US TREASURY N/B
DTD 03/31/2025 4.000% 03/31/2030
91282CMU2 4,500,000.00 AA+ Aa1 4/1/2025 4/2/2025 4,522,500.00 3.89 45,245.90 4,471,348.504,517,294.11

US TREASURY N/B
DTD 03/31/2025 4.000% 03/31/2030
91282CMU2 2,830,000.00 AA+ Aa1 3/28/2025 3/31/2025 2,826,573.05 4.03 28,454.64 2,811,981.392,827,376.43

US TREASURY N/B
DTD 05/01/2023 3.500% 04/30/2030
91282CGZ8 3,880,000.00 AA+ Aa1 4/25/2024 4/26/2024 3,632,498.44 4.73 22,879.35 3,786,030.283,714,363.38

US TREASURY N/B
DTD 04/30/2025 3.875% 04/30/2030
91282CMZ1 6,750,000.00 AA+ Aa1 3/19/2026 3/20/2026 6,755,800.78 3.85 44,067.60 6,676,965.006,755,432.37

US TREASURY N/B
DTD 02/15/2000 6.250% 05/15/2030
912810FM5 2,160,000.00 AA+ Aa1 1/11/2023 1/12/2023 2,519,859.38 3.64 17,241.85 2,317,781.522,349,866.11

US TREASURY N/B
DTD 02/15/2000 6.250% 05/15/2030
912810FM5 925,000.00 AA+ Aa1 11/30/2022 11/30/2022 1,065,123.05 3.89 7,383.66 992,568.48997,763.13

US TREASURY N/B
DTD 05/15/2020 0.625% 05/15/2030
912828ZQ6 2,535,000.00 AA+ Aa1 1/10/2023 1/11/2023 2,057,608.01 3.56 2,023.52 2,214,857.392,283,216.23

US TREASURY N/B
DTD 05/31/2023 3.750% 05/31/2030
91282CHF1 2,830,000.00 AA+ Aa1 7/12/2023 7/12/2023 2,783,459.77 4.03 8,988.73 2,785,229.402,803,537.76

US TREASURY N/B
DTD 05/31/2023 3.750% 05/31/2030
91282CHF1 9,900,000.00 AA+ Aa1 6/4/2025 6/5/2025 9,807,574.22 3.96 31,444.67 9,743,382.009,825,964.17 31 ATTACHMENT B
131
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
U.S. Treasury

US TREASURY N/B
DTD 06/30/2025 3.875% 06/30/2030
91282CNK3 1,875,000.00 AA+ Aa1 7/1/2025 7/1/2025 1,880,639.65 3.81 197.44 1,853,321.251,879,596.77

US TREASURY N/B
DTD 07/31/2025 3.875% 07/31/2030
91282CNN7 850,000.00 AA+ Aa1 8/19/2025 8/20/2025 852,091.80 3.82 13,739.12 839,972.55851,754.86

US TREASURY N/B
DTD 08/17/2020 0.625% 08/15/2030
91282CAE1 2,545,000.00 AA+ Aa1 1/10/2023 1/11/2023 2,052,204.49 3.56 5,975.83 2,204,010.722,277,365.66

US TREASURY N/B
DTD 08/17/2020 0.625% 08/15/2030
91282CAE1 587,500.00 AA+ Aa1 4/6/2022 4/11/2022 498,755.37 2.65 1,379.49 508,784.40543,651.77

US TREASURY N/B
DTD 08/17/2020 0.625% 08/15/2030
91282CAE1 2,540,000.00 AA+ Aa1 2/27/2023 2/28/2023 1,995,586.72 3.97 5,964.09 2,199,680.642,239,124.26

US TREASURY N/B
DTD 09/02/2025 3.625% 08/31/2030
91282CNX5 10,050,000.00 AA+ Aa1 9/2/2025 9/3/2025 9,996,609.38 3.74 121,767.49 9,832,116.0010,004,811.66

US TREASURY N/B
DTD 11/16/2020 0.875% 11/15/2030
91282CAV3 3,000,000.00 AA+ Aa1 7/11/2023 7/12/2023 2,405,390.63 4.02 3,352.58 2,605,077.002,645,849.51 188,777,500.00 184,019,380.62 1,700,598.93 183,185,607.38Security Type Sub-Total 3.96 185,857,334.00 Negotiable CD

COOPERAT RABOBANK UA/NY
DTD 07/20/2023 5.080% 07/17/2026
21684LGS5 4,200,000.00 A-1 P-1 7/17/2023 7/20/2023 4,200,000.00 5.08 97,197.33 4,202,658.604,200,000.00 4,200,000.00 4,200,000.00 97,197.33 4,202,658.60Security Type Sub-Total 5.08 4,200,000.00 Municipal

HAWAII ST-TXBL-GP (CALLABLE)
DTD 04/30/2026 4.212% 04/01/2031
419792S23 1,285,000.00 AA+ Aa2 4/16/2026 4/30/2026 1,285,000.00 4.21 9,171.05 1,271,558.901,285,000.00 1,285,000.00 1,285,000.00 9,171.05 1,271,558.90Security Type Sub-Total 4.21 1,285,000.00 Federal Agency

FEDERAL HOME LOAN BANK
DTD 08/25/2022 3.375% 09/10/2032
3130AT4C8 875,000.00 AA+ Aa1 11/1/2022 11/3/2022 779,616.25 4.77 9,105.47 832,227.38815,059.10 875,000.00 779,616.25 9,105.47 832,227.38Security Type Sub-Total 4.77 815,059.10 32 ATTACHMENT B
132
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate

TARGET CORP (CALLABLE)
DTD 01/24/2022 1.950% 01/15/2027
87612EBM7 640,000.00 A A2 1/27/2022 1/31/2022 639,609.60 1.96 5,754.67 632,523.52639,957.55

MICROSOFT CORP (CALLABLE)
DTD 02/06/2017 3.300% 02/06/2027
594918BY9 65,000.00 AAA Aaa 1/27/2023 1/31/2023 63,172.85 4.07 863.96 64,657.9064,728.14

HOME DEPOT INC (CALLABLE)
DTD 09/14/2017 2.800% 09/14/2027
437076BT8 3,450,000.00 A A2 1/25/2023 1/27/2023 3,255,385.50 4.15 28,711.67 3,392,802.453,399,449.26

JPMORGAN CHASE & CO
(CALLABLE)
DTD 02/24/2022 2.947% 02/24/2028
46647PCW4 1,605,000.00 A A1 9/14/2023 9/18/2023 1,467,563.85 5.13 16,686.16 1,588,900.251,553,935.06

KENVUE INC (CALLABLE)
DTD 10/17/2023 5.050% 03/22/2028
49177JAF9 2,500,000.00 A A2 6/27/2025 6/30/2025 2,559,025.00 4.12 34,718.75 2,524,060.002,537,381.03

JPMORGAN CHASE & CO
(CALLABLE)
DTD 04/25/2017 3.540% 05/01/2028
46647PAF3 1,725,000.00 A A1 8/8/2024 8/9/2024 1,672,059.75 4.44 10,177.50 1,710,827.401,697,889.32

HERSHEY COMPANY (CALLABLE)
DTD 05/04/2023 4.250% 05/04/2028
427866BH0 2,785,000.00 A A1 5/9/2023 5/11/2023 2,801,821.40 4.11 18,740.73 2,777,747.862,791,039.67

MORGAN STANLEY BANK NA
(CALLABLE)
DTD 05/30/2024 5.504% 05/26/2028
61690U8B9 2,770,000.00 A+ Aa3 5/30/2024 5/31/2024 2,775,844.70 5.45 14,822.58 2,793,226.452,771,734.62

MORGAN STANLEY BANK NA
(CALLABLE)
DTD 05/30/2024 5.504% 05/26/2028
61690U8B9 1,430,000.00 A+ Aa3 5/28/2024 5/30/2024 1,430,000.00 5.50 7,652.09 1,441,990.551,430,000.00

JOHN DEERE CAPITAL CORP
DTD 07/14/2023 4.950% 07/14/2028
24422EXB0 1,420,000.00 A A1 7/11/2023 7/14/2023 1,417,884.20 4.98 32,606.75 1,437,599.481,419,138.40

JOHN DEERE CAPITAL CORP
DTD 07/14/2023 4.950% 07/14/2028
24422EXB0 600,000.00 A A1 7/13/2023 7/14/2023 608,160.00 4.64 13,777.50 607,436.40603,322.93

JOHN DEERE CAPITAL CORP
DTD 07/14/2023 4.950% 07/14/2028
24422EXB0 1,400,000.00 A A1 6/24/2025 6/25/2025 1,434,272.00 4.09 32,147.50 1,417,351.601,423,326.02

NATIONAL RURAL UTIL COOP
(CALLABLE)
DTD 08/25/2025 4.150% 08/25/2028
63743HFZ0 1,750,000.00 NR A2 8/19/2025 8/25/2025 1,748,040.00 4.19 25,418.75 1,735,681.501,748,572.14

TOYOTA MOTOR CREDIT CORP
DTD 09/11/2023 5.250% 09/11/2028
89236TLB9 1,400,000.00 A+ A1 9/6/2023 9/11/2023 1,397,564.00 5.29 22,458.33 1,423,332.401,398,854.75

CITIBANK NA (CALLABLE)
DTD 09/29/2023 5.803% 09/29/2028
17325FBB3 1,300,000.00 A+ Aa3 5/1/2024 5/3/2024 1,325,142.00 5.30 19,278.86 1,337,485.501,313,278.79 33 ATTACHMENT B
133
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate

CITIBANK NA (CALLABLE)
DTD 09/29/2023 5.803% 09/29/2028
17325FBB3 4,935,000.00 A+ Aa3 9/26/2023 9/29/2023 4,935,000.00 5.80 73,185.50 5,077,300.734,935,000.00

BANK OF AMERICA CORP
(CALLABLE)
DTD 01/24/2025 4.979% 01/24/2029
06051GMK2 1,865,000.00 A- A1 4/1/2025 4/2/2025 1,885,664.20 4.66 40,496.56 1,875,188.501,876,819.40

ALPHABET INC (CALLABLE)
DTD 02/13/2026 3.700% 02/15/2029
02079KBJ5 750,000.00 AA+ Aa2 2/10/2026 2/13/2026 749,257.50 3.74 10,637.50 737,825.25749,348.41

ALPHABET INC (CALLABLE)
DTD 02/13/2026 3.700% 02/15/2029
02079KBJ5 700,000.00 AA+ Aa2 2/9/2026 2/13/2026 697,459.00 3.83 9,928.33 688,636.90697,768.11

ALPHABET INC (CALLABLE)
DTD 02/13/2026 3.700% 02/15/2029
02079KBJ5 750,000.00 AA+ Aa2 2/10/2026 2/13/2026 749,197.50 3.74 10,637.50 737,825.25749,296.46

ALPHABET INC (CALLABLE)
DTD 02/13/2026 3.700% 02/15/2029
02079KBJ5 4,505,000.00 AA+ Aa2 2/10/2026 2/13/2026 4,500,404.90 3.74 63,895.92 4,431,870.344,500,974.67

CATERPILLAR FINL SERVICE
DTD 02/24/2026 3.750% 02/23/2029
14913UBJ8 3,210,000.00 A A1 2/18/2026 2/24/2026 3,205,762.80 3.80 42,465.63 3,158,254.803,206,239.21

BLACKROCK FUNDING INC
(CALLABLE)
DTD 03/14/2024 4.700% 03/14/2029
09290DAA9 405,000.00 AA- Aa3 3/5/2024 3/14/2024 404,266.95 4.74 5,657.63 409,019.22404,583.58

BLACKROCK FUNDING INC
(CALLABLE)
DTD 03/14/2024 4.700% 03/14/2029
09290DAA9 4,200,000.00 AA- Aa3 4/9/2024 4/11/2024 4,181,646.00 4.80 58,671.67 4,241,680.804,189,403.36

SALESFORCE INC (CALLABLE)
DTD 03/13/2026 4.650% 03/15/2029
79466LAR5 3,665,000.00 A+ A2 3/11/2026 3/13/2026 3,664,193.70 4.66 51,126.75 3,663,101.533,664,272.28

DEPOSITORY TRUST COMPANY
(CALLABLE)
DTD 03/27/2026 4.300% 03/27/2029
249672AC0 5,460,000.00 AA+ Aa1 4/20/2026 4/21/2026 5,485,006.80 4.13 61,303.67 5,432,257.745,483,388.16

DEPOSITORY TRUST COMPANY
(CALLABLE)
DTD 03/27/2026 4.300% 03/27/2029
249672AC0 1,500,000.00 AA+ Aa1 4/6/2026 4/7/2026 1,500,480.00 4.29 16,841.67 1,492,378.501,500,443.46

ADOBE INC (CALLABLE)
DTD 04/04/2024 4.800% 04/04/2029
00724PAF6 1,775,000.00 A+ A1 4/1/2024 4/4/2024 1,772,355.25 4.83 20,590.00 1,792,345.301,773,464.20

ADOBE INC (CALLABLE)
DTD 04/04/2024 4.800% 04/04/2029
00724PAF6 1,450,000.00 A+ A1 4/2/2024 4/4/2024 1,447,578.50 4.84 16,820.00 1,464,169.401,448,593.76

BANK OF NEW YORK MELLON
(CALLABLE)
DTD 04/22/2025 4.729% 04/20/2029
06405LAH4 7,000,000.00 AA- Aa2 4/25/2025 4/28/2025 7,081,900.00 4.40 65,286.47 7,029,512.007,050,789.89 34 ATTACHMENT B
134
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate

MASTERCARD INC (CALLABLE)
DTD 05/31/2019 2.950% 06/01/2029
57636QAM6 3,600,000.00 A+ Aa3 6/26/2024 6/27/2024 3,307,140.00 4.82 8,850.00 3,466,738.803,418,449.64

PEPSICO INC (CALLABLE)
DTD 07/17/2024 4.500% 07/17/2029
713448FX1 2,160,000.00 A+ A1 7/15/2024 7/17/2024 2,156,652.00 4.53 44,280.00 2,166,683.042,157,878.99

TOYOTA MOTOR CREDIT CORP
DTD 08/09/2024 4.550% 08/09/2029
89236TMK8 370,000.00 A+ A1 8/6/2024 8/9/2024 369,248.90 4.60 6,640.47 369,856.81369,513.81

TOYOTA MOTOR CREDIT CORP
DTD 08/09/2024 4.550% 08/09/2029
89236TMK8 805,000.00 A+ A1 8/7/2024 8/9/2024 804,074.25 4.58 14,447.51 804,688.46804,402.91

TOYOTA MOTOR CREDIT CORP
DTD 08/09/2024 4.550% 08/09/2029
89236TMK8 925,000.00 A+ A1 8/8/2024 8/9/2024 921,198.25 4.64 16,601.18 924,642.02922,539.28

ELI LILLY & CO (CALLABLE)
DTD 08/14/2024 4.200% 08/14/2029
532457CQ9 2,600,000.00 AA- Aa3 8/13/2024 8/14/2024 2,604,420.00 4.16 41,556.67 2,586,399.402,602,834.64

ELI LILLY & CO (CALLABLE)
DTD 08/14/2024 4.200% 08/14/2029
532457CQ9 750,000.00 AA- Aa3 8/12/2024 8/14/2024 748,357.50 4.25 11,987.50 746,076.75748,937.16

PEPSICO INC (CALLABLE)
DTD 02/07/2025 4.600% 02/07/2030
713448GB8 805,000.00 A+ A1 2/5/2025 2/7/2025 803,647.60 4.64 14,812.00 811,375.60803,996.67

MORGAN STANLEY PVT BANK
(CALLABLE)
DTD 02/02/2026 4.213% 02/08/2030
61776NU43 2,800,000.00 A+ Aa3 2/4/2026 2/5/2026 2,800,980.00 4.20 48,823.99 2,763,426.402,800,861.03

CISCO SYSTEMS INC (CALLABLE)
DTD 02/24/2025 4.750% 02/24/2030
17275RBX9 6,917,000.00 AA- A1 4/21/2025 4/22/2025 7,006,367.64 4.45 115,907.78 6,977,164.076,985,710.30

TEXAS INSTRUMENTS INC
(CALLABLE)
DTD 05/04/2020 1.750% 05/04/2030
882508BJ2 4,000,000.00 A+ Aa3 7/2/2025 7/3/2025 3,561,520.00 4.28 11,083.33 3,613,976.003,644,525.52

CHARLES SCHWAB CORP
(CALLABLE)
DTD 05/21/2026 4.744% 05/21/2030
808513CQ6 2,750,000.00 A- A2 5/19/2026 5/21/2026 2,748,625.00 4.76 14,495.56 2,755,183.752,748,667.35

CHARLES SCHWAB CORP
(CALLABLE)
DTD 05/21/2026 4.744% 05/21/2030
808513CQ6 850,000.00 A- A2 5/18/2026 5/21/2026 850,000.00 4.74 4,480.44 851,602.25850,000.00

JPMORGAN CHASE & CO
(CALLABLE)
DTD 07/22/2024 4.995% 07/22/2030
46647PEJ1 3,130,000.00 A A1 3/17/2026 3/18/2026 3,189,000.50 4.51 69,051.71 3,151,193.233,185,465.26

NOVARTIS CAPITAL CORP
(CALLABLE)
DTD 11/05/2025 4.100% 11/05/2030
66989HAY4 6,370,000.00 AA- Aa3 11/3/2025 11/5/2025 6,350,890.00 4.17 40,626.44 6,258,244.726,353,202.84 35 ATTACHMENT B
135
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Corporate

CATERPILLAR FINL SERVICE
DTD 01/08/2026 4.150% 01/08/2031
14913UBH2 500,000.00 A A1 1/5/2026 1/8/2026 499,820.00 4.16 9,971.53 491,998.00499,836.74

TOTALENERGI CAP USA LLC
(CALLABLE)
DTD 01/13/2026 4.248% 01/13/2031
89158TAA7 2,775,000.00 A+ Aa3 1/7/2026 1/13/2026 2,782,631.25 4.19 55,011.60 2,728,241.252,781,976.22

TOTALENERGI CAP USA LLC
(CALLABLE)
DTD 01/13/2026 4.248% 01/13/2031
89158TAA7 2,025,000.00 A+ Aa3 1/6/2026 1/13/2026 2,025,000.00 4.25 40,143.60 1,990,878.752,025,000.00

BANK OF AMERICA CORP
(CALLABLE)
DTD 02/13/2020 2.496% 02/13/2031
06051GHZ5 2,040,000.00 A- A1 3/16/2026 3/17/2026 1,890,937.20 4.16 19,518.72 1,885,212.961,898,914.54 AMAZON.COM INC (CALLABLE)
DTD 03/13/2026 4.250% 03/13/2031
023135DD5 7,150,000.00 AA A1 5/12/2026 5/13/2026 7,062,984.50 4.53 91,162.50 7,040,283.257,065,167.23

DEPOSITORY TRUST COMPANY
(CALLABLE)
DTD 03/27/2026 4.550% 03/27/2031
249672AA4 1,145,000.00 AA+ Aa1 3/23/2026 3/27/2026 1,144,038.20 4.57 13,603.24 1,138,316.641,144,087.45

WALMART INC (CALLABLE)
DTD 04/30/2026 4.150% 04/30/2031
931142FT5 1,620,000.00 AA Aa2 4/27/2026 4/30/2026 1,616,533.20 4.20 11,391.75 1,601,395.921,616,646.65

META PLATFORMS INC (CALLABLE)
DTD 05/04/2026 4.550% 05/15/2031
30303MAF9 7,375,000.00 AA- Aa3 6/3/2026 6/4/2026 7,333,036.25 4.68 53,130.73 7,335,322.507,333,608.45

MASTERCARD INC (CALLABLE)
DTD 06/08/2026 4.600% 06/08/2031
57636QBL7 1,490,000.00 A+ Aa3 6/9/2026 6/10/2026 1,485,991.90 4.66 4,378.94 1,487,709.871,486,040.17

MASTERCARD INC (CALLABLE)
DTD 06/08/2026 4.600% 06/08/2031
57636QBL7 2,260,000.00 A+ Aa3 6/4/2026 6/8/2026 2,258,192.00 4.62 6,641.89 2,256,526.382,258,212.95 134,222,000.00 133,177,004.09 1,599,959.68 133,320,126.34Security Type Sub-Total 4.49 133,529,468.43 Agency CMBS
FHMS K061 A2
DTD 01/01/2017 3.347% 11/01/2026
3137BTUM1 2,685,176.94 AA+ Aa1 5/19/2023 5/24/2023 2,602,523.83 4.29 7,489.41 2,672,954.012,675,738.35 FHMS K064 A2
DTD 05/01/2017 3.224% 03/01/2027
3137BXQY1 4,477,651.00 AA+ Aa1 8/16/2023 8/18/2023 4,223,684.23 4.94 12,029.96 4,444,901.464,425,956.88 FHMS K065 A2
DTD 07/01/2017 3.243% 04/01/2027
3137F1G44 2,540,000.00 AA+ Aa1 8/16/2023 8/18/2023 2,394,842.97 4.93 6,864.35 2,517,152.702,507,840.09 36 ATTACHMENT B
136
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Agency CMBS
FHMS K066 A2
DTD 08/01/2017 3.117% 06/01/2027
3137F2LJ3 3,881,666.32 AA+ Aa1 8/17/2023 8/22/2023 3,629,964.52 4.97 10,082.63 3,840,761.323,817,239.35 FHMS K507 A1
DTD 09/01/2023 4.800% 04/01/2028
3137HAMR4 3,477,202.64 AA+ Aa1 9/20/2023 9/28/2023 3,422,634.90 5.19 13,908.81 3,493,121.273,453,469.02 FHMS K506 A1
DTD 09/01/2023 4.650% 05/01/2028
3137HAMG8 2,028,283.22 AA+ Aa1 9/7/2023 9/14/2023 1,997,950.24 5.01 7,859.60 2,033,286.992,015,083.43 FHMS K505 A2
DTD 07/01/2023 4.819% 06/01/2028
3137HACX2 4,200,000.00 AA+ Aa1 7/13/2023 7/20/2023 4,241,949.60 4.59 16,866.50 4,218,778.204,216,874.34 FHMS KJ46 A1
DTD 07/01/2023 4.777% 06/01/2028
3137HAD45 3,242,157.07 AA+ Aa1 7/19/2023 7/27/2023 3,242,076.00 4.78 12,906.49 3,249,056.383,242,124.29 FNA 2023-M6 A2
DTD 07/01/2023 4.172% 07/01/2028
3136BQDE6 3,894,231.57 AA+ Aa1 7/18/2023 7/31/2023 3,828,212.17 4.58 13,538.82 3,868,720.463,866,852.28 FHMS K508 A2
DTD 10/01/2023 4.740% 08/01/2028
3137HAQ74 4,300,000.00 AA+ Aa1 10/11/2023 10/19/2023 4,205,675.20 5.25 16,985.00 4,316,774.304,255,031.72 FHMS KJ47 A1
DTD 09/01/2023 5.272% 08/01/2028
3137HAMN3 1,145,693.20 AA+ Aa1 9/19/2023 9/28/2023 1,145,687.47 5.27 5,033.41 1,150,091.521,145,690.86 FHMS K506 A2
DTD 09/01/2023 4.650% 08/01/2028
3137HAMH6 4,200,000.00 AA+ Aa1 9/7/2023 9/14/2023 4,137,869.40 4.99 16,275.00 4,208,051.404,170,988.75 FHMS K507 A2
DTD 09/01/2023 4.800% 09/01/2028
3137HAMS2 4,200,000.00 AA+ Aa1 9/20/2023 9/28/2023 4,149,797.40 5.07 16,800.00 4,221,814.804,175,507.95 FHMS K509 A2
DTD 10/01/2023 4.850% 09/01/2028
3137HAST4 3,305,000.00 AA+ Aa1 10/25/2023 10/31/2023 3,199,626.69 5.60 13,357.71 3,323,431.993,252,402.05 FHMS K511 A2
DTD 12/01/2023 4.860% 10/01/2028
3137HB3G7 2,440,000.00 AA+ Aa1 11/28/2023 12/7/2023 2,432,989.88 4.93 9,882.00 2,456,860.402,436,451.80 FHMS K510 A2
DTD 11/01/2023 5.069% 10/01/2028
3137HB3D4 1,675,000.00 AA+ Aa1 11/14/2023 11/21/2023 1,670,157.58 5.14 7,075.48 1,692,887.321,672,562.89 FHMS K512 A2
DTD 12/01/2023 5.000% 11/01/2028
3137HBCF9 2,040,032.65 AA+ Aa1 12/11/2023 12/21/2023 2,059,082.48 4.79 8,500.14 2,060,581.902,049,907.15 FHMS K514 A2
DTD 02/01/2024 4.572% 12/01/2028
3137HBLV4 2,495,000.00 AA+ Aa1 2/1/2024 2/8/2024 2,519,947.51 4.34 9,505.95 2,495,069.862,508,400.17 FHMS K513 A2
DTD 01/01/2024 4.724% 12/01/2028
3137HBFY5 2,505,000.00 AA+ Aa1 1/10/2024 1/18/2024 2,530,022.45 4.50 9,861.35 2,514,145.762,518,327.25 FHMS K516 A2
DTD 03/01/2024 5.477% 01/01/2029
3137HBPM0 4,200,000.00 AA+ Aa1 2/29/2024 3/7/2024 4,325,987.40 4.79 19,169.50 4,289,976.604,270,094.09 37 ATTACHMENT B
137
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
Agency CMBS
FHMS K515 A2
DTD 02/01/2024 5.400% 01/01/2029
3137HBPD0 4,200,000.00 AA+ Aa1 2/14/2024 2/22/2024 4,313,148.00 4.79 18,900.00 4,276,994.404,262,476.26 FHMS K518 A2
DTD 03/01/2024 5.400% 01/01/2029
3137HC2L5 3,040,000.00 AA+ Aa1 3/19/2024 3/28/2024 3,113,400.80 4.83 13,680.00 3,098,304.163,081,930.32 FHMS K517 A2
DTD 03/01/2024 5.355% 01/01/2029
3137HC2C5 3,760,000.00 AA+ Aa1 3/5/2024 3/14/2024 3,872,747.36 4.67 16,779.00 3,828,661.363,822,869.08 FHMS K520 A2
DTD 04/01/2024 5.180% 03/01/2029
3137HCKV3 2,380,000.00 AA+ Aa1 4/23/2024 4/30/2024 2,389,660.42 5.09 10,273.67 2,416,223.602,385,785.04 FHMS K524 A2
DTD 07/01/2024 4.720% 05/01/2029
3137HDV56 3,730,000.00 AA+ Aa1 7/16/2024 7/25/2024 3,752,905.93 4.58 14,671.33 3,748,485.883,744,608.88 FHMS K529 A2
DTD 10/01/2024 4.791% 09/01/2029
3137HH6C0 2,355,000.00 AA+ Aa1 10/8/2024 10/16/2024 2,402,069.39 4.34 9,402.34 2,375,210.612,386,982.50 FHMS K531 A2
DTD 12/01/2024 4.630% 10/01/2029
3137HHUN9 1,805,000.00 AA+ Aa1 12/3/2024 12/12/2024 1,813,198.31 4.53 6,964.29 1,812,349.961,810,786.88 FHMS K541 A2
DTD 06/01/2025 4.348% 02/01/2030
3137HLXV9 2,470,000.00 AA+ Aa1 6/4/2025 6/12/2025 2,469,911.08 4.35 8,949.63 2,457,010.272,469,933.14 FHMS K553 A2
DTD 01/01/2026 4.070% 12/01/2030
3137HPU50 1,945,000.00 AA+ Aa1 1/7/2026 1/15/2026 1,947,433.20 4.04 6,596.79 1,911,470.151,947,229.30 FHMS K557 A2
DTD 03/01/2026 3.936% 01/01/2031
3137HQSP7 2,290,000.00 AA+ Aa1 3/3/2026 3/12/2026 2,289,956.49 3.94 7,511.20 2,237,064.362,289,961.64 FHMS K555 A2
DTD 02/01/2026 4.050% 01/01/2031
3137HQ4U2 1,390,000.00 AA+ Aa1 2/4/2026 2/12/2026 1,385,314.31 4.13 4,691.25 1,364,469.871,385,647.38 92,297,094.60 91,710,427.21 352,411.61 92,594,663.26Security Type Sub-Total 4.79 92,264,753.13 ABS
KCOT 2023-2A A3
DTD 07/26/2023 5.280% 01/18/2028
500945AC4 442,463.03 NR Aaa 7/18/2023 7/26/2023 442,351.26 5.29 1,038.31 444,052.79442,424.40 BAAT 2023-1A A3
DTD 07/31/2023 5.530% 02/15/2028
06428AAC2 380,985.97 NR Aaa 7/25/2023 7/31/2023 380,971.53 5.53 936.38 382,372.76380,980.81 HAROT 2023-3 A3
DTD 08/22/2023 5.410% 02/18/2028
43815QAC1 661,301.87 AAA NR 8/15/2023 8/22/2023 661,165.51 5.42 1,291.93 664,098.52661,252.34 TAOT 2023-C A3
DTD 08/15/2023 5.160% 04/17/2028
89231FAD2 270,992.83 AAA NR 8/8/2023 8/15/2023 270,931.53 5.17 621.48 271,813.12270,969.28 38 ATTACHMENT B
138
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
ABS
USAOT 2023-A A3
DTD 09/15/2023 5.580% 05/15/2028
90291VAC4 563,999.72 AAA Aaa 9/7/2023 9/15/2023 563,901.02 5.58 1,398.72 565,824.26563,957.70 BAAT 2023-2A A3
DTD 11/21/2023 5.740% 06/15/2028
06054YAC1 1,070,069.84 NR Aaa 11/15/2023 11/21/2023 1,070,050.47 5.74 2,729.87 1,075,130.201,070,061.93 FITAT 2023-1 A3
DTD 08/23/2023 5.530% 08/15/2028
31680EAD3 926,460.38 AAA Aaa 8/15/2023 8/23/2023 926,402.94 5.53 2,277.03 930,466.39926,435.88 TAOT 2023-D A3
DTD 11/14/2023 5.540% 08/15/2028
89239FAD4 418,060.07 AAA NR 11/7/2023 11/14/2023 418,015.01 5.54 1,029.36 420,697.62418,039.19 AMXCA 2023-3 A
DTD 09/19/2023 5.230% 09/15/2028
02582JKD1 3,460,000.00 AAA NR 9/12/2023 9/19/2023 3,459,845.34 5.23 8,042.58 3,469,694.923,459,928.07 CHAIT 2023-A1 A
DTD 09/15/2023 5.160% 09/15/2028
161571HT4 3,380,000.00 AAA NR 9/7/2023 9/15/2023 3,379,063.06 5.17 7,751.47 3,388,514.223,379,557.02 HART 2023-C A3
DTD 11/13/2023 5.540% 10/16/2028
44918CAD4 540,966.27 AAA NR 11/3/2023 11/13/2023 540,895.14 5.54 1,331.98 544,001.63540,931.42 BACCT 2023-A2 A2
DTD 12/14/2023 4.980% 11/15/2028
05522RDH8 1,520,000.00 NR Aaa 12/7/2023 12/14/2023 1,519,795.86 4.98 3,364.27 1,524,859.441,519,898.18 GMCAR 2024-1 A3
DTD 01/17/2024 4.850% 12/18/2028
36268GAD7 203,979.66 NR Aaa 1/9/2024 1/17/2024 203,938.64 4.85 412.21 204,543.67203,957.91 CHAIT 2024-A1 A
DTD 01/31/2024 4.600% 01/15/2029
161571HV9 3,825,000.00 AAA NR 1/24/2024 1/31/2024 3,824,417.45 4.60 7,820.00 3,833,418.833,824,688.91 KCOT 2025-1A A3
DTD 02/19/2025 4.670% 06/15/2029
50117FAC5 1,745,000.00 NR Aaa 2/11/2025 2/19/2025 1,744,940.15 4.67 3,621.84 1,749,200.221,744,961.52 HART 2025-A A3
DTD 03/12/2025 4.320% 10/15/2029
44935CAD3 2,870,000.00 AAA NR 3/4/2025 3/12/2025 2,869,576.67 4.32 5,510.40 2,871,320.202,869,692.54 HART 2025-B A3
DTD 06/11/2025 4.360% 12/17/2029
44935XAD7 1,125,000.00 AAA NR 6/3/2025 6/11/2025 1,124,898.41 4.36 2,180.00 1,125,345.381,124,920.62 USAOT 2025-A A3
DTD 10/09/2025 3.950% 12/17/2029
90327HAC3 1,095,000.00 AAA Aaa 10/2/2025 10/9/2025 1,094,903.86 3.95 1,922.33 1,090,333.111,094,922.19 HAROT 2025-3 A3
DTD 08/12/2025 4.040% 02/21/2030
43813QAD1 2,725,000.00 AAA Aaa 8/5/2025 8/12/2025 2,724,943.05 4.04 3,058.06 2,712,977.302,724,953.95 TAOT 2025-C A3
DTD 07/30/2025 4.110% 03/15/2030
89238VAD0 1,930,000.00 AAA Aaa 7/22/2025 7/30/2025 1,929,796.58 4.11 3,525.47 1,924,233.161,929,834.43 ALLYA 2025-1 A3
DTD 10/16/2025 3.960% 03/15/2030
02008KAC7 970,000.00 AAA NR 10/7/2025 10/16/2025 969,861.48 3.96 1,707.20 966,282.96969,883.17 39 ATTACHMENT B
139
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
ABS
HART 2025-C A3
DTD 09/17/2025 3.880% 04/15/2030
44935JAD8 2,305,000.00 AAA NR 9/9/2025 9/17/2025 2,304,623.82 3.88 3,974.84 2,288,383.262,304,691.84 TAOT 2025-D A3
DTD 10/23/2025 3.840% 06/17/2030
89231GAD0 2,495,000.00 AAA NR 10/15/2025 10/23/2025 2,494,713.08 3.84 4,258.13 2,476,275.032,494,752.82 HAROT 2025-4 A3
DTD 11/12/2025 3.980% 06/17/2030
43814XAD5 2,020,000.00 AAA NR 11/5/2025 11/12/2025 2,019,608.93 3.98 3,573.16 2,005,037.862,019,660.03 CHAOT 2025-1A A3
DTD 07/30/2025 4.290% 06/25/2030
16145NAC5 1,300,000.00 NR Aaa 7/23/2025 7/30/2025 1,299,872.99 4.29 929.50 1,298,932.701,299,895.45 COPAR 2025-1 A3
DTD 11/05/2025 3.850% 07/15/2030
14043YAD7 1,080,000.00 AAA NR 10/28/2025 11/5/2025 1,079,771.26 3.85 1,848.00 1,070,243.281,079,802.36 AMXCA 2025-4 A
DTD 07/22/2025 4.300% 07/15/2030
02582JKV1 2,675,000.00 AAA NR 7/15/2025 7/22/2025 2,674,614.53 4.30 5,112.22 2,671,498.432,674,683.15 CHAIT 2025-A1 A
DTD 07/25/2025 4.160% 07/15/2030
161571HZ0 3,765,000.00 AAA NR 7/18/2025 7/25/2025 3,764,924.32 4.16 6,961.07 3,750,297.683,764,944.09 COMET 2025-A1 A
DTD 09/16/2025 3.820% 09/15/2030
14041NGF2 2,895,000.00 AAA NR 9/9/2025 9/16/2025 2,894,451.11 3.82 4,915.07 2,861,345.632,894,539.55 TAOT 2026-A A3
DTD 01/21/2026 3.860% 09/16/2030
89240KAD0 1,195,000.00 AAA Aaa 1/13/2026 1/21/2026 1,194,898.19 3.86 2,050.09 1,183,524.421,194,907.30 HART 2025-D A3
DTD 11/12/2025 3.990% 09/16/2030
44891XAD9 2,095,000.00 AAA NR 11/5/2025 11/12/2025 2,094,822.76 3.99 3,715.13 2,079,365.022,094,846.02 HAROT 2026-1 A3
DTD 02/18/2026 3.780% 09/23/2030
43815CAD0 1,195,000.00 NR Aaa 2/10/2026 2/18/2026 1,194,809.64 3.78 1,254.75 1,181,026.861,194,827.50 BAAT 2026-1A A3
DTD 04/24/2026 4.180% 10/15/2030
05620EAD0 1,240,000.00 NR Aaa 4/15/2026 4/24/2026 1,239,810.16 4.18 2,303.64 1,231,792.441,239,820.15 FORDO 2026-A A3
DTD 03/24/2026 4.050% 10/15/2030
34532WAD7 2,000,000.00 AAA Aaa 3/17/2026 3/24/2026 1,999,617.80 4.05 3,600.00 1,985,604.001,999,646.24 CHAOT 2025-2A A3
DTD 10/29/2025 3.860% 10/25/2030
16144MAD6 1,535,000.00 NR Aaa 10/17/2025 10/29/2025 1,534,939.21 3.86 987.52 1,521,665.461,534,951.23 HAROT 2026-2 A3
DTD 05/13/2026 4.300% 11/15/2030
43814YAD3 3,260,000.00 AAA Aaa 5/5/2026 5/13/2026 3,259,905.79 4.30 6,230.22 3,251,664.183,259,909.18 TAOT 2026-B A3
DTD 04/21/2026 4.130% 12/16/2030
89240QAD7 1,885,000.00 AAA Aaa 4/14/2026 4/21/2026 1,884,602.45 4.14 3,460.02 1,874,006.681,884,624.51 HART 2026-A A3
DTD 02/18/2026 3.790% 02/18/2031
448981AD2 795,000.00 AAA NR 2/10/2026 2/18/2026 794,946.34 3.79 1,339.13 784,440.81794,952.80 40 ATTACHMENT B
140
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Holdings
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
Amortized
Cost
ABS
VZMT 2026-1 A1A
DTD 03/13/2026 3.940% 02/20/2031
92348KFC2 4,260,000.00 NR Aaa 3/5/2026 3/13/2026 4,259,407.01 3.94 5,128.57 4,228,395.064,259,441.26 BACCT 2026-A1 A
DTD 05/14/2026 4.220% 04/15/2031
05522RDL9 4,495,000.00 NR Aaa 5/7/2026 5/14/2026 4,494,547.80 4.22 8,430.62 4,478,934.874,494,571.90 72,614,279.64 72,605,552.15 131,642.57 72,381,614.37Security Type Sub-Total 4.35 72,607,718.84 494,270,874.24 487,776,980.32 3,900,086.64 487,788,456.23Managed Account Sub Total Securities Sub Total
Accrued Interest
$494,270,874.24 $487,776,980.32 $3,900,086.64 $487,788,456.23 $3,900,086.64
490,559,333.50
$490,559,333.50

4.33 4.33%
Total Investments $491,688,542.87
41 ATTACHMENT B
141
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description
BUY
4/6/2026 4/7/2026 1,500,000.00 249672AC0 DEPOSITORY TRUST COMPANY (CALLABLE) 4.30% 3/27/2029 1,502,271.67 4.29% 4/14/2026 4/21/2026 1,885,000.00 89240QAD7 TAOT 2026-B A3 4.13% 12/16/2030 1,884,602.45 4.14% 4/15/2026 4/24/2026 1,240,000.00 05620EAD0 BAAT 2026-1A A3 4.18% 10/15/2030 1,239,810.16 4.18% 4/16/2026 4/30/2026 1,285,000.00 419792S23 HAWAII ST-TXBL-GP (CALLABLE) 4.21% 4/1/2031 1,285,000.00 4.21% 4/20/2026 4/21/2026 5,460,000.00 249672AC0 DEPOSITORY TRUST COMPANY (CALLABLE) 4.30% 3/27/2029 5,500,658.80 4.13% 4/27/2026 4/30/2026 1,620,000.00 931142FT5 WALMART INC (CALLABLE) 4.15% 4/30/2031 1,616,533.20 4.20% 5/5/2026 5/13/2026 3,260,000.00 43814YAD3 HAROT 2026-2 A3 4.30% 11/15/2030 3,259,905.79 4.30% 5/7/2026 5/14/2026 4,495,000.00 05522RDL9 BACCT 2026-A1 A 4.22% 4/15/2031 4,494,547.80 4.22% 5/12/2026 5/13/2026 7,150,000.00 023135DD5 AMAZON.COM INC (CALLABLE) 4.25% 3/13/2031 7,113,630.33 4.53% 5/18/2026 5/21/2026 850,000.00 808513CQ6 CHARLES SCHWAB CORP (CALLABLE) 4.74% 5/21/2030 850,000.00 4.74% 5/19/2026 5/21/2026 2,750,000.00 808513CQ6 CHARLES SCHWAB CORP (CALLABLE) 4.74% 5/21/2030 2,748,625.00 4.76% 5/27/2026 5/28/2026 7,450,000.00 91282CNT4 US TREASURY N/B 4.25% 8/15/2035 7,428,046.81 4.45% 6/3/2026 6/4/2026 7,375,000.00 30303MAF9 META PLATFORMS INC (CALLABLE) 4.55% 5/15/2031 7,360,999.79 4.68% 6/4/2026 6/8/2026 2,260,000.00 57636QBL7 MASTERCARD INC (CALLABLE) 4.60% 6/8/2031 2,258,192.00 4.62% 6/9/2026 6/10/2026 1,490,000.00 57636QBL7 MASTERCARD INC (CALLABLE) 4.60% 6/8/2031 1,486,372.68 4.66% 6/26/2026 6/30/2026 1,560,000.00 91282CKN0 US TREASURY N/B 4.62% 4/30/2031 1,604,865.90 4.14% Total BUY 51,630,000.00 51,634,062.38 0.00
42 ATTACHMENT B
142
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description
CALL
5/21/2026 5/21/2026 2,150,000.00 38151LAG5 GOLDMAN SACHS BANK USA (CALLABLE) 5.41% 5/21/2027 2,150,000.00 5.41% 5/21/2026 5/21/2026 1,450,000.00 38151LAG5 GOLDMAN SACHS BANK USA (CALLABLE) 5.41% 5/21/2027 1,450,000.00 5.41% Total CALL 3,600,000.00 3,600,000.00 0.00

INTEREST
4/1/2026 4/1/2026 MONEY0002 MONEY MARKET FUND 0.00% 5,571.04 4/1/2026 4/25/2026 3137HACX2 FHMS K505 A2 4.81% 6/1/2028 16,866.50 4/1/2026 4/25/2026 3137HLXV9 FHMS K541 A2 4.34% 2/1/2030 8,949.63 4/1/2026 4/25/2026 3137HB3G7 FHMS K511 A2 4.86% 10/1/2028 9,882.00 4/1/2026 4/25/2026 3137HQSP7 FHMS K557 A2 3.93% 1/1/2031 7,511.20 4/1/2026 4/25/2026 3137HBFY5 FHMS K513 A2 4.72% 12/1/2028 9,861.35 4/1/2026 4/25/2026 3137HAMH6 FHMS K506 A2 4.65% 8/1/2028 16,275.00 4/1/2026 4/25/2026 3137HC2L5 FHMS K518 A2 5.40% 1/1/2029 13,680.00 4/1/2026 4/25/2026 3137HAMG8 FHMS K506 A1 4.65% 5/1/2028 7,900.37 4/1/2026 4/25/2026 3137HAD45 FHMS KJ46 A1 4.77% 6/1/2028 13,251.76 4/1/2026 4/25/2026 3137HH6C0 FHMS K529 A2 4.79% 9/1/2029 9,402.34 4/1/2026 4/25/2026 3137HBLV4 FHMS K514 A2 4.57% 12/1/2028 9,505.95 4/1/2026 4/25/2026 3137HQ4U2 FHMS K555 A2 4.05% 1/1/2031 4,691.25 43 ATTACHMENT B
143
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
4/1/2026 4/25/2026 3137HB3D4 FHMS K510 A2 5.06% 10/1/2028 7,075.48 4/1/2026 4/25/2026 3137HAMR4 FHMS K507 A1 4.80% 4/1/2028 14,221.94 4/1/2026 4/25/2026 3137HPU50 FHMS K553 A2 4.07% 12/1/2030 6,596.79 4/1/2026 4/25/2026 3137HAST4 FHMS K509 A2 4.85% 9/1/2028 13,357.71 4/1/2026 4/25/2026 3137HDV56 FHMS K524 A2 4.72% 5/1/2029 14,671.33 4/1/2026 4/25/2026 3137HCKV3 FHMS K520 A2 5.18% 3/1/2029 10,273.67 4/1/2026 4/25/2026 3137HBPM0 FHMS K516 A2 5.47% 1/1/2029 19,169.50 4/1/2026 4/25/2026 3136BQDE6 FNA 2023-M6 A2 4.17% 7/1/2028 13,600.58 4/1/2026 4/25/2026 3137F1G44 FHMS K065 A2 3.24% 4/1/2027 6,864.35 4/1/2026 4/25/2026 3137HAMN3 FHMS KJ47 A1 5.27% 8/1/2028 5,110.40 4/1/2026 4/25/2026 3137HAMS2 FHMS K507 A2 4.80% 9/1/2028 16,800.00 4/1/2026 4/25/2026 3137HBPD0 FHMS K515 A2 5.40% 1/1/2029 18,900.00 4/1/2026 4/25/2026 3137HAQ74 FHMS K508 A2 4.74% 8/1/2028 16,985.00 4/1/2026 4/25/2026 3137BXQY1 FHMS K064 A2 3.22% 3/1/2027 12,029.96 4/1/2026 4/25/2026 3137HC2C5 FHMS K517 A2 5.35% 1/1/2029 16,779.00 4/1/2026 4/25/2026 3137HHUN9 FHMS K531 A2 4.63% 10/1/2029 6,964.29 4/1/2026 4/25/2026 3137BTUM1 FHMS K061 A2 3.34% 11/1/2026 7,539.27 44 ATTACHMENT B
144
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
4/1/2026 4/25/2026 3137F2LJ3 FHMS K066 A2 3.11% 6/1/2027 10,130.52 4/1/2026 4/25/2026 3137HBCF9 FHMS K512 A2 5.00% 11/1/2028 8,503.41 4/4/2026 4/4/2026 00724PAF6 ADOBE INC (CALLABLE) 4.80% 4/4/2029 77,400.00 4/15/2026 4/15/2026 90327HAC3 USAOT 2025-A A3 3.95% 12/17/2029 3,604.38 4/15/2026 4/15/2026 06054YAC1 BAAT 2023-2A A3 5.74% 6/15/2028 7,251.30 4/15/2026 4/15/2026 89231GAD0 TAOT 2025-D A3 3.84% 6/17/2030 7,984.00 4/15/2026 4/15/2026 161571HZ0 CHAIT 2025-A1 A 4.16% 7/15/2030 13,052.00 4/15/2026 4/15/2026 02582JKV1 AMXCA 2025-4 A 4.30% 7/15/2030 9,585.42 4/15/2026 4/15/2026 90291VAC4 USAOT 2023-A A3 5.58% 5/15/2028 4,595.73 4/15/2026 4/15/2026 14043YAD7 COPAR 2025-1 A3 3.85% 7/15/2030 3,465.00 4/15/2026 4/15/2026 44935CAD3 HART 2025-A A3 4.32% 10/15/2029 10,332.00 4/15/2026 4/15/2026 161571HV9 CHAIT 2024-A1 A 4.60% 1/15/2029 14,662.49 4/15/2026 4/15/2026 31680EAD3 FITAT 2023-1 A3 5.53% 8/15/2028 6,041.23 4/15/2026 4/15/2026 89238VAD0 TAOT 2025-C A3 4.11% 3/15/2030 6,610.25 4/15/2026 4/15/2026 06428AAC2 BAAT 2023-1A A3 5.53% 2/15/2028 2,749.39 4/15/2026 4/15/2026 02582JKD1 AMXCA 2023-3 A 5.23% 9/15/2028 15,079.82 4/15/2026 4/15/2026 89231FAD2 TAOT 2023-C A3 5.16% 4/17/2028 1,683.74 45 ATTACHMENT B
145
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
4/15/2026 4/15/2026 05522RDH8 BACCT 2023-A2 A2 4.98% 11/15/2028 6,308.00 4/15/2026 4/15/2026 44935JAD8 HART 2025-C A3 3.88% 4/15/2030 7,452.83 4/15/2026 4/15/2026 43814XAD5 HAROT 2025-4 A3 3.98% 6/17/2030 6,699.67 4/15/2026 4/15/2026 44935XAD7 HART 2025-B A3 4.36% 12/17/2029 4,087.50 4/15/2026 4/15/2026 14041NGF2 COMET 2025-A1 A 3.82% 9/15/2030 9,215.75 4/15/2026 4/15/2026 89239FAD4 TAOT 2023-D A3 5.54% 8/15/2028 2,485.84 4/15/2026 4/15/2026 44891XAD9 HART 2025-D A3 3.99% 9/16/2030 6,965.88 4/15/2026 4/15/2026 89240KAD0 TAOT 2026-A A3 3.86% 9/16/2030 3,843.92 4/15/2026 4/15/2026 34532WAD7 FORDO 2026-A A3 4.05% 10/15/2030 4,725.00 4/15/2026 4/15/2026 02008KAC7 ALLYA 2025-1 A3 3.96% 3/15/2030 3,201.00 4/15/2026 4/15/2026 161571HT4 CHAIT 2023-A1 A 5.16% 9/15/2028 14,534.00 4/15/2026 4/15/2026 50117FAC5 KCOT 2025-1A A3 4.67% 6/15/2029 6,790.96 4/15/2026 4/15/2026 500945AC4 KCOT 2023-2A A3 5.28% 1/18/2028 2,785.48 4/15/2026 4/15/2026 44918CAD4 HART 2023-C A3 5.54% 10/16/2028 3,375.79 4/15/2026 4/15/2026 448981AD2 HART 2026-A A3 3.79% 2/18/2031 2,510.87 4/16/2026 4/16/2026 36268GAD7 GMCAR 2024-1 A3 4.85% 12/18/2028 1,090.63 4/18/2026 4/18/2026 43815QAC1 HAROT 2023-3 A3 5.41% 2/18/2028 4,527.74 46 ATTACHMENT B
146
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
4/20/2026 4/20/2026 06405LAH4 BANK OF NEW YORK MELLON (CALLABLE) 4.72% 4/20/2029 165,515.00 4/20/2026 4/20/2026 92348KFC2 VZMT 2026-1 A1A 3.94% 2/20/2031 17,250.63 4/21/2026 4/21/2026 43813QAD1 HAROT 2025-3 A3 4.04% 2/21/2030 9,174.17 4/21/2026 4/21/2026 43815CAD0 HAROT 2026-1 A3 3.78% 9/23/2030 3,764.25 4/25/2026 4/25/2026 16145NAC5 CHAOT 2025-1A A3 4.29% 6/25/2030 4,647.50 4/25/2026 4/25/2026 16144MAD6 CHAOT 2025-2A A3 3.86% 10/25/2030 4,937.58 4/30/2026 4/30/2026 91282CHA2 US TREASURY N/B 3.50% 4/30/2028 3,762.50 4/30/2026 4/30/2026 91282CLR0 US TREASURY N/B 4.12% 10/31/2029 54,656.25 4/30/2026 4/30/2026 91282CGZ8 US TREASURY N/B 3.50% 4/30/2030 67,900.00 4/30/2026 4/30/2026 91282CFU0 US TREASURY N/B 4.12% 10/31/2027 12,065.63 4/30/2026 4/30/2026 91282CMZ1 US TREASURY N/B 3.87% 4/30/2030 130,781.25 5/1/2026 5/1/2026 46647PAF3 JPMORGAN CHASE & CO (CALLABLE) 3.54% 5/1/2028 30,532.50 5/1/2026 5/1/2026 MONEY0002 MONEY MARKET FUND 0.00% 3,494.73 5/1/2026 5/25/2026 3137HHUN9 FHMS K531 A2 4.63% 10/1/2029 6,964.29 5/1/2026 5/25/2026 3137BXQY1 FHMS K064 A2 3.22% 3/1/2027 12,029.96 5/1/2026 5/25/2026 3137HLXV9 FHMS K541 A2 4.34% 2/1/2030 8,949.63 5/1/2026 5/25/2026 3137HC2C5 FHMS K517 A2 5.35% 1/1/2029 16,779.00 47 ATTACHMENT B
147
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
5/1/2026 5/25/2026 3137HAMR4 FHMS K507 A1 4.80% 4/1/2028 14,122.64 5/1/2026 5/25/2026 3137HBFY5 FHMS K513 A2 4.72% 12/1/2028 9,861.35 5/1/2026 5/25/2026 3137HAD45 FHMS KJ46 A1 4.77% 6/1/2028 13,236.03 5/1/2026 5/25/2026 3137BTUM1 FHMS K061 A2 3.34% 11/1/2026 7,523.01 5/1/2026 5/25/2026 3137HAMH6 FHMS K506 A2 4.65% 8/1/2028 16,275.00 5/1/2026 5/25/2026 3137F2LJ3 FHMS K066 A2 3.11% 6/1/2027 10,114.98 5/1/2026 5/25/2026 3136BQDE6 FNA 2023-M6 A2 4.17% 7/1/2028 13,541.05 5/1/2026 5/25/2026 3137HAST4 FHMS K509 A2 4.85% 9/1/2028 13,357.71 5/1/2026 5/25/2026 3137HPU50 FHMS K553 A2 4.07% 12/1/2030 6,596.79 5/1/2026 5/25/2026 3137HH6C0 FHMS K529 A2 4.79% 9/1/2029 9,402.34 5/1/2026 5/25/2026 3137HC2L5 FHMS K518 A2 5.40% 1/1/2029 13,680.00 5/1/2026 5/25/2026 3137HBCF9 FHMS K512 A2 5.00% 11/1/2028 8,502.40 5/1/2026 5/25/2026 3137HCKV3 FHMS K520 A2 5.18% 3/1/2029 10,273.67 5/1/2026 5/25/2026 3137HQSP7 FHMS K557 A2 3.93% 1/1/2031 7,511.20 5/1/2026 5/25/2026 3137HB3G7 FHMS K511 A2 4.86% 10/1/2028 9,882.00 5/1/2026 5/25/2026 3137HACX2 FHMS K505 A2 4.81% 6/1/2028 16,866.50 5/1/2026 5/25/2026 3137HAMG8 FHMS K506 A1 4.65% 5/1/2028 7,890.99 48 ATTACHMENT B
148
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
5/1/2026 5/25/2026 3137HAMS2 FHMS K507 A2 4.80% 9/1/2028 16,800.00 5/1/2026 5/25/2026 3137HDV56 FHMS K524 A2 4.72% 5/1/2029 14,671.33 5/1/2026 5/25/2026 3137HB3D4 FHMS K510 A2 5.06% 10/1/2028 7,075.48 5/1/2026 5/25/2026 3137HBPD0 FHMS K515 A2 5.40% 1/1/2029 18,900.00 5/1/2026 5/25/2026 3137HBPM0 FHMS K516 A2 5.47% 1/1/2029 19,169.50 5/1/2026 5/25/2026 3137HQ4U2 FHMS K555 A2 4.05% 1/1/2031 4,691.25 5/1/2026 5/25/2026 3137HAMN3 FHMS KJ47 A1 5.27% 8/1/2028 5,086.79 5/1/2026 5/25/2026 3137F1G44 FHMS K065 A2 3.24% 4/1/2027 6,864.35 5/1/2026 5/25/2026 3137HBLV4 FHMS K514 A2 4.57% 12/1/2028 9,505.95 5/1/2026 5/25/2026 3137HAQ74 FHMS K508 A2 4.74% 8/1/2028 16,985.00 5/4/2026 5/4/2026 427866BH0 HERSHEY COMPANY (CALLABLE) 4.25% 5/4/2028 59,181.25 5/4/2026 5/4/2026 882508BJ2 TEXAS INSTRUMENTS INC (CALLABLE) 1.75% 5/4/2030 35,000.00 5/5/2026 5/5/2026 66989HAY4 NOVARTIS CAPITAL CORP (CALLABLE) 4.10% 11/5/2030 130,585.00 5/15/2026 5/15/2026 161571HT4 CHAIT 2023-A1 A 5.16% 9/15/2028 14,534.00 5/15/2026 5/15/2026 44935CAD3 HART 2025-A A3 4.32% 10/15/2029 10,332.00 5/15/2026 5/15/2026 06428AAC2 BAAT 2023-1A A3 5.53% 2/15/2028 2,379.31 5/15/2026 5/15/2026 161571HV9 CHAIT 2024-A1 A 4.60% 1/15/2029 14,662.50 49 ATTACHMENT B
149
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
5/15/2026 5/15/2026 91282CHC8 US TREASURY N/B 3.37% 5/15/2033 18,140.63 5/15/2026 5/15/2026 90291VAC4 USAOT 2023-A A3 5.58% 5/15/2028 3,870.91 5/15/2026 5/15/2026 91282CAV3 US TREASURY N/B 0.87% 11/15/2030 18,943.75 5/15/2026 5/15/2026 44935JAD8 HART 2025-C A3 3.88% 4/15/2030 7,452.83 5/15/2026 5/15/2026 05522RDH8 BACCT 2023-A2 A2 4.98% 11/15/2028 6,308.00 5/15/2026 5/15/2026 91282CKQ3 US TREASURY N/B 4.37% 5/15/2034 21,875.00 5/15/2026 5/15/2026 91282CPJ4 US TREASURY N/B 4.00% 11/15/2035 46,000.00 5/15/2026 5/15/2026 14043YAD7 COPAR 2025-1 A3 3.85% 7/15/2030 3,465.00 5/15/2026 5/15/2026 912810FM5 US TREASURY N/B 6.25% 5/15/2030 96,406.25 5/15/2026 5/15/2026 02582JKD1 AMXCA 2023-3 A 5.23% 9/15/2028 15,079.83 5/15/2026 5/15/2026 90327HAC3 USAOT 2025-A A3 3.95% 12/17/2029 3,604.38 5/15/2026 5/15/2026 44935XAD7 HART 2025-B A3 4.36% 12/17/2029 4,087.50 5/15/2026 5/15/2026 91282CCB5 US TREASURY N/B 1.62% 5/15/2031 34,084.38 5/15/2026 5/15/2026 912828ZQ6 US TREASURY N/B 0.62% 5/15/2030 7,921.88 5/15/2026 5/15/2026 91282CFV8 US TREASURY N/B 4.12% 11/15/2032 160,153.13 5/15/2026 5/15/2026 448981AD2 HART 2026-A A3 3.79% 2/18/2031 2,510.87 5/15/2026 5/15/2026 91282CJJ1 US TREASURY N/B 4.50% 11/15/2033 97,650.00 50 ATTACHMENT B
150
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
5/15/2026 5/15/2026 02008KAC7 ALLYA 2025-1 A3 3.96% 3/15/2030 3,201.00 5/15/2026 5/15/2026 44918CAD4 HART 2023-C A3 5.54% 10/16/2028 3,062.34 5/15/2026 5/15/2026 50117FAC5 KCOT 2025-1A A3 4.67% 6/15/2029 6,790.96 5/15/2026 5/15/2026 05620EAD0 BAAT 2026-1A A3 4.18% 10/15/2030 3,023.53 5/15/2026 5/15/2026 06054YAC1 BAAT 2023-2A A3 5.74% 6/15/2028 6,475.49 5/15/2026 5/15/2026 89239FAD4 TAOT 2023-D A3 5.54% 8/15/2028 2,284.15 5/15/2026 5/15/2026 91282CDJ7 US TREASURY N/B 1.37% 11/15/2031 23,271.88 5/15/2026 5/15/2026 31680EAD3 FITAT 2023-1 A3 5.53% 8/15/2028 5,374.62 5/15/2026 5/15/2026 89240KAD0 TAOT 2026-A A3 3.86% 9/16/2030 3,843.92 5/15/2026 5/15/2026 161571HZ0 CHAIT 2025-A1 A 4.16% 7/15/2030 13,052.00 5/15/2026 5/15/2026 89238VAD0 TAOT 2025-C A3 4.11% 3/15/2030 6,610.25 5/15/2026 5/15/2026 44891XAD9 HART 2025-D A3 3.99% 9/16/2030 6,965.88 5/15/2026 5/15/2026 02582JKV1 AMXCA 2025-4 A 4.30% 7/15/2030 9,585.42 5/15/2026 5/15/2026 43814XAD5 HAROT 2025-4 A3 3.98% 6/17/2030 6,699.67 5/15/2026 5/15/2026 89240QAD7 TAOT 2026-B A3 4.13% 12/16/2030 5,190.03 5/15/2026 5/15/2026 89231FAD2 TAOT 2023-C A3 5.16% 4/17/2028 1,495.85 5/15/2026 5/15/2026 89231GAD0 TAOT 2025-D A3 3.84% 6/17/2030 7,984.00 51 ATTACHMENT B
151
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
5/15/2026 5/15/2026 14041NGF2 COMET 2025-A1 A 3.82% 9/15/2030 9,215.75 5/15/2026 5/15/2026 500945AC4 KCOT 2023-2A A3 5.28% 1/18/2028 2,488.82 5/15/2026 5/15/2026 91282CEP2 US TREASURY N/B 2.87% 5/15/2032 111,478.13 5/15/2026 5/15/2026 34532WAD7 FORDO 2026-A A3 4.05% 10/15/2030 6,750.00 5/16/2026 5/16/2026 36268GAD7 GMCAR 2024-1 A3 4.85% 12/18/2028 994.32 5/18/2026 5/18/2026 43815QAC1 HAROT 2023-3 A3 5.41% 2/18/2028 3,971.73 5/20/2026 5/20/2026 92348KFC2 VZMT 2026-1 A1A 3.94% 2/20/2031 13,987.00 5/21/2026 5/21/2026 43815CAD0 HAROT 2026-1 A3 3.78% 9/23/2030 3,764.25 5/21/2026 5/21/2026 38151LAG5 GOLDMAN SACHS BANK USA (CALLABLE) 5.41% 5/21/2027 97,452.00 5/21/2026 5/21/2026 43813QAD1 HAROT 2025-3 A3 4.04% 2/21/2030 9,174.17 5/25/2026 5/25/2026 16144MAD6 CHAOT 2025-2A A3 3.86% 10/25/2030 4,937.58 5/25/2026 5/25/2026 16145NAC5 CHAOT 2025-1A A3 4.29% 6/25/2030 4,647.50 5/26/2026 5/26/2026 61690U8B9 MORGAN STANLEY BANK NA (CALLABLE) 5.50% 5/26/2028 115,584.00 5/31/2026 5/31/2026 91282CPN5 US TREASURY N/B 3.50% 11/30/2030 73,500.00 5/31/2026 5/31/2026 91282CHF1 US TREASURY N/B 3.75% 5/31/2030 238,687.50 5/31/2026 5/31/2026 91282CFY2 US TREASURY N/B 3.87% 11/30/2029 20,731.25 5/31/2026 5/31/2026 91282CKU4 US TREASURY N/B 4.62% 5/31/2031 115,625.00 52 ATTACHMENT B
152
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
5/31/2026 5/31/2026 91282CPM7 US TREASURY N/B 3.75% 11/30/2032 43,125.00 6/1/2026 6/1/2026 MONEY0002 MONEY MARKET FUND 0.00% 3,116.26 6/1/2026 6/1/2026 57636QAM6 MASTERCARD INC (CALLABLE) 2.95% 6/1/2029 53,100.00 6/1/2026 6/25/2026 3137HQSP7 FHMS K557 A2 3.93% 1/1/2031 7,511.20 6/1/2026 6/25/2026 3137HBPD0 FHMS K515 A2 5.40% 1/1/2029 18,900.00 6/1/2026 6/25/2026 3137HAST4 FHMS K509 A2 4.85% 9/1/2028 13,357.71 6/1/2026 6/25/2026 3137HLXV9 FHMS K541 A2 4.34% 2/1/2030 8,949.63 6/1/2026 6/25/2026 3137HB3G7 FHMS K511 A2 4.86% 10/1/2028 9,882.00 6/1/2026 6/25/2026 3137HQ4U2 FHMS K555 A2 4.05% 1/1/2031 4,691.25 6/1/2026 6/25/2026 3137HC2C5 FHMS K517 A2 5.35% 1/1/2029 16,779.00 6/1/2026 6/25/2026 3136BQDE6 FNA 2023-M6 A2 4.17% 7/1/2028 13,598.38 6/1/2026 6/25/2026 3137F2LJ3 FHMS K066 A2 3.11% 6/1/2027 10,098.29 6/1/2026 6/25/2026 3137HAMH6 FHMS K506 A2 4.65% 8/1/2028 16,275.00 6/1/2026 6/25/2026 3137HBCF9 FHMS K512 A2 5.00% 11/1/2028 8,501.16 6/1/2026 6/25/2026 3137HDV56 FHMS K524 A2 4.72% 5/1/2029 14,671.33 6/1/2026 6/25/2026 3137BXQY1 FHMS K064 A2 3.22% 3/1/2027 12,029.96 6/1/2026 6/25/2026 3137HAMS2 FHMS K507 A2 4.80% 9/1/2028 16,800.00 53 ATTACHMENT B
153
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
6/1/2026 6/25/2026 3137HAMG8 FHMS K506 A1 4.65% 5/1/2028 7,880.31 6/1/2026 6/25/2026 3137HHUN9 FHMS K531 A2 4.63% 10/1/2029 6,964.29 6/1/2026 6/25/2026 3137HBLV4 FHMS K514 A2 4.57% 12/1/2028 9,505.95 6/1/2026 6/25/2026 3137HH6C0 FHMS K529 A2 4.79% 9/1/2029 9,402.34 6/1/2026 6/25/2026 3137BTUM1 FHMS K061 A2 3.34% 11/1/2026 7,505.78 6/1/2026 6/25/2026 3137HAD45 FHMS KJ46 A1 4.77% 6/1/2028 14,665.95 6/1/2026 6/25/2026 3137HC2L5 FHMS K518 A2 5.40% 1/1/2029 13,680.00 6/1/2026 6/25/2026 3137HAMN3 FHMS KJ47 A1 5.27% 8/1/2028 5,057.33 6/1/2026 6/25/2026 3137HAMR4 FHMS K507 A1 4.80% 4/1/2028 14,009.10 6/1/2026 6/25/2026 3137HB3D4 FHMS K510 A2 5.06% 10/1/2028 7,075.48 6/1/2026 6/25/2026 3137HBFY5 FHMS K513 A2 4.72% 12/1/2028 9,861.35 6/1/2026 6/25/2026 3137HACX2 FHMS K505 A2 4.81% 6/1/2028 16,866.50 6/1/2026 6/25/2026 3137HCKV3 FHMS K520 A2 5.18% 3/1/2029 10,273.67 6/1/2026 6/25/2026 3137HAQ74 FHMS K508 A2 4.74% 8/1/2028 16,985.00 6/1/2026 6/25/2026 3137HPU50 FHMS K553 A2 4.07% 12/1/2030 6,596.79 6/1/2026 6/25/2026 3137HBPM0 FHMS K516 A2 5.47% 1/1/2029 19,169.50 6/1/2026 6/25/2026 3137F1G44 FHMS K065 A2 3.24% 4/1/2027 6,864.35 54 ATTACHMENT B
154
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
6/15/2026 6/15/2026 89240QAD7 TAOT 2026-B A3 4.13% 12/16/2030 6,487.54 6/15/2026 6/15/2026 161571HV9 CHAIT 2024-A1 A 4.60% 1/15/2029 14,662.50 6/15/2026 6/15/2026 44935XAD7 HART 2025-B A3 4.36% 12/17/2029 4,087.50 6/15/2026 6/15/2026 44891XAD9 HART 2025-D A3 3.99% 9/16/2030 6,965.88 6/15/2026 6/15/2026 500945AC4 KCOT 2023-2A A3 5.28% 1/18/2028 2,211.56 6/15/2026 6/15/2026 44935CAD3 HART 2025-A A3 4.32% 10/15/2029 10,332.00 6/15/2026 6/15/2026 43814YAD3 HAROT 2026-2 A3 4.30% 11/15/2030 12,460.44 6/15/2026 6/15/2026 89231FAD2 TAOT 2023-C A3 5.16% 4/17/2028 1,325.76 6/15/2026 6/15/2026 89239FAD4 TAOT 2023-D A3 5.54% 8/15/2028 2,098.54 6/15/2026 6/15/2026 89238VAD0 TAOT 2025-C A3 4.11% 3/15/2030 6,610.25 6/15/2026 6/15/2026 50117FAC5 KCOT 2025-1A A3 4.67% 6/15/2029 6,790.96 6/15/2026 6/15/2026 89231GAD0 TAOT 2025-D A3 3.84% 6/17/2030 7,984.00 6/15/2026 6/15/2026 05620EAD0 BAAT 2026-1A A3 4.18% 10/15/2030 4,319.33 6/15/2026 6/15/2026 448981AD2 HART 2026-A A3 3.79% 2/18/2031 2,510.87 6/15/2026 6/15/2026 34532WAD7 FORDO 2026-A A3 4.05% 10/15/2030 6,750.00 6/15/2026 6/15/2026 05522RDH8 BACCT 2023-A2 A2 4.98% 11/15/2028 6,308.00 6/15/2026 6/15/2026 06054YAC1 BAAT 2023-2A A3 5.74% 6/15/2028 5,764.70 55 ATTACHMENT B
155
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
6/15/2026 6/15/2026 02582JKV1 AMXCA 2025-4 A 4.30% 7/15/2030 9,585.42 6/15/2026 6/15/2026 31680EAD3 FITAT 2023-1 A3 5.53% 8/15/2028 4,796.54 6/15/2026 6/15/2026 14041NGF2 COMET 2025-A1 A 3.82% 9/15/2030 9,215.75 6/15/2026 6/15/2026 44918CAD4 HART 2023-C A3 5.54% 10/16/2028 2,773.85 6/15/2026 6/15/2026 06428AAC2 BAAT 2023-1A A3 5.53% 2/15/2028 2,057.03 6/15/2026 6/15/2026 90291VAC4 USAOT 2023-A A3 5.58% 5/15/2028 3,200.11 6/15/2026 6/15/2026 44935JAD8 HART 2025-C A3 3.88% 4/15/2030 7,452.83 6/15/2026 6/15/2026 90327HAC3 USAOT 2025-A A3 3.95% 12/17/2029 3,604.38 6/15/2026 6/15/2026 02008KAC7 ALLYA 2025-1 A3 3.96% 3/15/2030 3,201.00 6/15/2026 6/15/2026 05522RDL9 BACCT 2026-A1 A 4.22% 4/15/2031 16,334.33 6/15/2026 6/15/2026 43814XAD5 HAROT 2025-4 A3 3.98% 6/17/2030 6,699.67 6/15/2026 6/15/2026 14043YAD7 COPAR 2025-1 A3 3.85% 7/15/2030 3,465.00 6/15/2026 6/15/2026 89240KAD0 TAOT 2026-A A3 3.86% 9/16/2030 3,843.92 6/15/2026 6/15/2026 02582JKD1 AMXCA 2023-3 A 5.23% 9/15/2028 15,079.83 6/15/2026 6/15/2026 161571HT4 CHAIT 2023-A1 A 5.16% 9/15/2028 14,534.00 6/15/2026 6/15/2026 161571HZ0 CHAIT 2025-A1 A 4.16% 7/15/2030 13,052.00 6/16/2026 6/16/2026 36268GAD7 GMCAR 2024-1 A3 4.85% 12/18/2028 907.17 56 ATTACHMENT B
156
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

INTEREST
6/18/2026 6/18/2026 43815QAC1 HAROT 2023-3 A3 5.41% 2/18/2028 3,462.58 6/20/2026 6/20/2026 92348KFC2 VZMT 2026-1 A1A 3.94% 2/20/2031 13,987.00 6/21/2026 6/21/2026 43815CAD0 HAROT 2026-1 A3 3.78% 9/23/2030 3,764.25 6/21/2026 6/21/2026 43813QAD1 HAROT 2025-3 A3 4.04% 2/21/2030 9,174.17 6/25/2026 6/25/2026 16145NAC5 CHAOT 2025-1A A3 4.29% 6/25/2030 4,647.50 6/25/2026 6/25/2026 16144MAD6 CHAOT 2025-2A A3 3.86% 10/25/2030 4,937.58 6/30/2026 6/30/2026 91282CPR6 US TREASURY N/B 3.62% 12/31/2030 4,440.63 6/30/2026 6/30/2026 91282CNK3 US TREASURY N/B 3.87% 6/30/2030 36,328.13 6/30/2026 6/30/2026 91282CMD0 US TREASURY N/B 4.37% 12/31/2029 12,687.50 6/30/2026 6/30/2026 91282CGB1 US TREASURY N/B 3.87% 12/31/2029 39,331.25 Total INTEREST 0.00 4,071,322.88 0.00

PAYDOWNS
4/1/2026 4/25/2026 5,372.11 3137HAMN3 FHMS KJ47 A1 5.27% 8/1/2028 5,372.11 0.01 4/1/2026 4/25/2026 241.81 3137HBCF9 FHMS K512 A2 5.00% 11/1/2028 241.81 -1.28 4/1/2026 4/25/2026 5,830.96 3137BTUM1 FHMS K061 A2 3.34% 11/1/2026 5,830.96 33.31 4/1/2026 4/25/2026 3,950.10 3137HAD45 FHMS KJ46 A1 4.77% 6/1/2028 3,950.10 0.04 4/1/2026 4/25/2026 5,982.25 3137F2LJ3 FHMS K066 A2 3.11% 6/1/2027 5,982.25 124.54 57 ATTACHMENT B
157
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

PAYDOWNS
4/1/2026 4/25/2026 24,824.49 3137HAMR4 FHMS K507 A1 4.80% 4/1/2028 24,824.49 191.32 4/1/2026 4/25/2026 2,421.53 3137HAMG8 FHMS K506 A1 4.65% 5/1/2028 2,421.53 17.71 4/1/2026 4/25/2026 288.83 3136BQDE6 FNA 2023-M6 A2 4.17% 7/1/2028 288.83 2.28 4/15/2026 4/15/2026 162,190.11 06054YAC1 BAAT 2023-2A A3 5.74% 6/15/2028 162,190.11 1.32 4/15/2026 4/15/2026 144,653.67 31680EAD3 FITAT 2023-1 A3 5.53% 8/15/2028 144,653.67 4.20 4/15/2026 4/15/2026 155,875.56 90291VAC4 USAOT 2023-A A3 5.58% 5/15/2028 155,875.56 12.85 4/15/2026 4/15/2026 43,696.93 89231FAD2 TAOT 2023-C A3 5.16% 4/17/2028 43,696.93 4.24 4/15/2026 4/15/2026 43,686.86 89239FAD4 TAOT 2023-D A3 5.54% 8/15/2028 43,686.86 2.39 4/15/2026 4/15/2026 80,306.54 06428AAC2 BAAT 2023-1A A3 5.53% 2/15/2028 80,306.54 1.23 4/15/2026 4/15/2026 67,894.32 44918CAD4 HART 2023-C A3 5.54% 10/16/2028 67,894.32 4.75 4/15/2026 4/15/2026 67,422.31 500945AC4 KCOT 2023-2A A3 5.28% 1/18/2028 67,422.31 6.69 4/16/2026 4/16/2026 23,830.50 36268GAD7 GMCAR 2024-1 A3 4.85% 12/18/2028 23,830.50 2.74 4/18/2026 4/18/2026 123,330.37 43815QAC1 HAROT 2023-3 A3 5.41% 2/18/2028 123,330.37 10.39 5/1/2026 5/25/2026 2,756.92 3137HAMG8 FHMS K506 A1 4.65% 5/1/2028 2,756.92 19.42 5/1/2026 5/25/2026 342.68 3136BQDE6 FNA 2023-M6 A2 4.17% 7/1/2028 342.68 2.60 5/1/2026 5/25/2026 28,383.80 3137HAMR4 FHMS K507 A1 4.80% 4/1/2028 28,383.80 210.45 5/1/2026 5/25/2026 6,427.78 3137F2LJ3 FHMS K066 A2 3.11% 6/1/2027 6,427.78 124.77 58 ATTACHMENT B
158
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

PAYDOWNS
5/1/2026 5/25/2026 6,707.44 3137HAMN3 FHMS KJ47 A1 5.27% 8/1/2028 6,707.44 0.01 5/1/2026 5/25/2026 6,174.91 3137BTUM1 FHMS K061 A2 3.34% 11/1/2026 6,174.91 30.75 5/1/2026 5/25/2026 297.96 3137HBCF9 FHMS K512 A2 5.00% 11/1/2028 297.96 -1.54 5/1/2026 5/25/2026 4,772.40 3137HAD45 FHMS KJ46 A1 4.77% 6/1/2028 4,772.40 0.05 5/15/2026 5/15/2026 69,935.89 06428AAC2 BAAT 2023-1A A3 5.53% 2/15/2028 69,935.89 1.02 5/15/2026 5/15/2026 148,596.79 06054YAC1 BAAT 2023-2A A3 5.74% 6/15/2028 148,596.79 1.16 5/15/2026 5/15/2026 63,014.37 500945AC4 KCOT 2023-2A A3 5.28% 1/18/2028 63,014.37 5.95 5/15/2026 5/15/2026 125,440.82 31680EAD3 FITAT 2023-1 A3 5.53% 8/15/2028 125,440.82 3.52 5/15/2026 5/15/2026 39,554.44 89231FAD2 TAOT 2023-C A3 5.16% 4/17/2028 39,554.44 3.68 5/15/2026 5/15/2026 40,205.38 89239FAD4 TAOT 2023-D A3 5.54% 8/15/2028 40,205.38 2.12 5/15/2026 5/15/2026 144,258.37 90291VAC4 USAOT 2023-A A3 5.58% 5/15/2028 144,258.37 11.44 5/15/2026 5/15/2026 62,489.22 44918CAD4 HART 2023-C A3 5.54% 10/16/2028 62,489.22 4.24 5/16/2026 5/16/2026 21,561.49 36268GAD7 GMCAR 2024-1 A3 4.85% 12/18/2028 21,561.49 2.41 5/18/2026 5/18/2026 112,935.58 43815QAC1 HAROT 2023-3 A3 5.41% 2/18/2028 112,935.58 9.08 6/1/2026 6/25/2026 291.72 3136BQDE6 FNA 2023-M6 A2 4.17% 7/1/2028 291.72 2.13 6/1/2026 6/25/2026 5,344.40 3137HAMG8 FHMS K506 A1 4.65% 5/1/2028 5,344.40 36.22 6/1/2026 6/25/2026 6,028.69 3137F2LJ3 FHMS K066 A2 3.11% 6/1/2027 6,028.69 108.54 59 ATTACHMENT B
159
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description

PAYDOWNS
6/1/2026 6/25/2026 25,073.15 3137HAMR4 FHMS K507 A1 4.80% 4/1/2028 25,073.15 178.54 6/1/2026 6/25/2026 78,010.68 3137HAD45 FHMS KJ46 A1 4.77% 6/1/2028 78,010.68 0.82 6/1/2026 6/25/2026 244.74 3137HBCF9 FHMS K512 A2 5.00% 11/1/2028 244.74 -1.22 6/1/2026 6/25/2026 5,443.16 3137HAMN3 FHMS KJ47 A1 5.27% 8/1/2028 5,443.16 0.01 6/1/2026 6/25/2026 5,871.27 3137BTUM1 FHMS K061 A2 3.34% 11/1/2026 5,871.27 24.94 6/15/2026 6/15/2026 114,381.24 31680EAD3 FITAT 2023-1 A3 5.53% 8/15/2028 114,381.24 3.09 6/15/2026 6/15/2026 65,385.05 06428AAC2 BAAT 2023-1A A3 5.53% 2/15/2028 65,385.05 0.91 6/15/2026 6/15/2026 36,496.99 89239FAD4 TAOT 2023-D A3 5.54% 8/15/2028 36,496.99 1.86 6/15/2026 6/15/2026 124,195.11 90291VAC4 USAOT 2023-A A3 5.58% 5/15/2028 124,195.11 9.46 6/15/2026 6/15/2026 135,093.88 06054YAC1 BAAT 2023-2A A3 5.74% 6/15/2028 135,093.88 1.02 6/15/2026 6/15/2026 59,867.13 44918CAD4 HART 2023-C A3 5.54% 10/16/2028 59,867.13 3.93 6/15/2026 6/15/2026 37,324.41 89231FAD2 TAOT 2023-C A3 5.16% 4/17/2028 37,324.41 3.32 6/15/2026 6/15/2026 60,164.11 500945AC4 KCOT 2023-2A A3 5.28% 1/18/2028 60,164.11 5.40 6/16/2026 6/16/2026 20,475.75 36268GAD7 GMCAR 2024-1 A3 4.85% 12/18/2028 20,475.75 2.22 6/18/2026 6/18/2026 106,737.44 43815QAC1 HAROT 2023-3 A3 5.41% 2/18/2028 106,737.44 8.17 Total PAYDOWNS 2,732,084.41 2,732,084.41 1,239.22
60 ATTACHMENT B
160
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description
SELL
4/6/2026 4/7/2026 1,530,000.00 9128282R0 US TREASURY N/B 2.25% 8/15/2027 1,502,337.43 -10,718.09 4/17/2026 4/21/2026 875,000.00 91282CFH9 US TREASURY N/B 3.12% 8/31/2027 871,822.77 -3,928.60 4/20/2026 4/21/2026 4,820,000.00 91282CND9 US TREASURY N/B 3.75% 5/15/2028 4,900,274.38 -11,139.20 4/20/2026 4/21/2026 560,000.00 912810FJ2 US TREASURY N/B 6.12% 8/15/2029 606,671.34 1,118.10 4/21/2026 4/24/2026 1,325,000.00 91282CBJ9 US TREASURY N/B 0.75% 1/31/2028 1,259,113.45 -10,333.92 4/21/2026 4/24/2026 1,285,000.00 91282CKF7 US TREASURY N/B 4.12% 3/31/2031 1,301,024.65 46,068.11 4/28/2026 4/30/2026 75,000.00 9128282R0 US TREASURY N/B 2.25% 8/15/2027 73,877.19 -449.06 5/11/2026 5/13/2026 1,275,000.00 91282CGC9 US TREASURY N/B 3.87% 12/31/2027 1,292,355.15 -6,070.28 5/11/2026 5/13/2026 745,000.00 91282CAL5 US TREASURY N/B 0.37% 9/30/2027 710,493.66 199.09 5/11/2026 5/13/2026 4,155,000.00 91282CFH9 US TREASURY N/B 3.12% 8/31/2027 4,142,319.06 -24,665.51 5/11/2026 5/13/2026 585,000.00 91282CFU0 US TREASURY N/B 4.12% 10/31/2027 587,680.59 -1,265.06 5/11/2026 5/13/2026 700,000.00 9128282R0 US TREASURY N/B 2.25% 8/15/2027 690,031.31 -4,507.80 5/12/2026 5/13/2026 7,150,000.00 023135CT1 AMAZON.COM INC (CALLABLE) 4.10% 11/20/2030 7,185,912.86 -97,981.46 5/27/2026 5/28/2026 1,105,000.00 91282CGC9 US TREASURY N/B 3.87% 12/31/2027 1,120,218.31 -6,743.16 5/27/2026 5/28/2026 1,240,000.00 91282CBJ9 US TREASURY N/B 0.75% 1/31/2028 1,177,808.93 -13,919.75 5/27/2026 5/28/2026 880,000.00 91282CGT2 US TREASURY N/B 3.62% 3/31/2028 878,730.19 -5,831.16 5/27/2026 5/28/2026 215,000.00 91282CHA2 US TREASURY N/B 3.50% 4/30/2028 213,456.14 -1,721.94 61 ATTACHMENT B
161
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Portfolio Activity
Quarterly Portfolio Transactions
Trade
D
ate
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description
SELL
5/27/2026 5/28/2026 895,000.00 91282CBS9 US TREASURY N/B 1.25% 3/31/2028 852,931.86 -9,594.70 5/27/2026 5/28/2026 835,000.00 91282CGP0 US TREASURY N/B 4.00% 2/29/2028 842,816.78 -9,029.59 6/3/2026 6/4/2026 2,520,000.00 89788MAC6 TRUIST FINANCIAL CORP (CALLABLE) 1.12% 8/3/2027 2,441,757.15 -16,237.79 6/3/2026 6/4/2026 3,800,000.00 69371RS56 PACCAR FINANCIAL CORP 5.05% 8/10/2026 3,867,494.33 5,754.04 6/3/2026 6/4/2026 525,000.00 91282CCY5 US TREASURY N/B 1.25% 9/30/2028 493,209.42 -22,513.74 6/4/2026 6/8/2026 2,260,000.00 594918BY9 MICROSOFT CORP (CALLABLE) 3.30% 2/6/2027 2,275,804.93 994.14 6/9/2026 6/10/2026 1,500,000.00 87612EBM7 TARGET CORP (CALLABLE) 1.95% 1/15/2027 1,492,641.25 -19,029.73 Total SELL 40,855,000.00 40 ,780,783.13 -221,547.06
62 ATTACHMENT B
162
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Appendix
Important Disclosures
This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to any specific objectives or financial circumstances.

PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sources external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements.

While efforts are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers are for illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of the strategy rated by a NRSRO.

It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets.

Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown.

The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain assumptions and current opinion as of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and data presented are not necessarily indicative of future events or expected performance.

PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S.

Bancorp. U.S. Bank N.A. is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.

For more information regarding PFMAM's services or entities, please visit www.pfmam.com.

Further distribution is not permitted without prior written consent. 63 ATTACHMENT B
163
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Appendix
Important Disclosures
Generally, PFMAM’s market prices are derived from closing bid prices as of the last business day of the month as supplied by ICE Data Services. There may be differences in the values shown for investments due to accrued but uncollected income and the use of differing valuation sources and methods. Non-negotiable FDIC-insured bank certificates of deposit are priced at par. Although PFMAM believes the prices to be reliable, the values of the securities may not represent the prices at which the securities could have been bought or sold. Explanation of the valuation methods for a registered investment company or local government investment program is contained in the appropriate fund offering documentation or information statement.

In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and forward settling sales are excluded.

Performance is presented in accordance with the CFA Institute's Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of future returns.

ICE Bank of America Indices provided by Bloomberg Financial Markets.

Money market fund/cash balances are included in performance and duration computations.

Standard & Poor's is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.

Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.

MBS maturities are represented by expected average life. 64 ATTACHMENT B
164
PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Appendix
Glossary
Accrued Interest: Interest that is due on a bond or other fixed income security since the last interest payment was made.

Agencies: Federal agency securities and/or Government-sponsored enterprises.

Amortized Cost: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.

Asset-Backed Security: A financial instrument collateralized by an underlying pool of assets – usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, and receivables.

Bankers’ Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.

Commercial Paper: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.

Contribution to Total Return: The weight of each individual security multiplied by its return, then summed for each sector to determine how much each sector added or subtracted from the overall portfolio performance.

Effective Duration: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.

Effective Yield: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on investment returns, while nominal yield does not.

FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.

Interest Rate: Interest per year divided by principal amount and expressed as a percentage.

Market Value: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.

Negotiable Certificates of Deposit: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.

Par Value: The nominal dollar face amount of a security.

Pass-through Security: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the mortgage-backed security.
65 ATTACHMENT B
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PFM Asset Management | pfmam.com

CITY OF STOCKTON
For the Quarter Ended June 30, 2026
Appendix
Glossary
Repurchase Agreements: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.

Settle Date: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity proceeds) occurs on a non-business day, the funds are exchanged on the next business day.

Supranational: A multinational union or association in which member countries cede authority and sovereignty on at least some internal matters to the group, whose decisions are binding on its members.

Trade Date: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.

Unsettled Trade: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.

U.S. Treasury: The department of the U.S. government that issues Treasury securities.

Yield: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis.

YTM at Cost: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period from purchase date to maturity, stated as a percentage on an annualized basis.

YTM at Market: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis. 66 ATTACHMENT B
166

INVESTMENT REPORT
City of Stockton | As of June 30, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

ATTACHMENT C
167

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

PORTFOLIO HOLDINGS

TRANSACTIONS
1 ATTACHMENT C
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ECONOMIC UPDATE
2 ATTACHMENT C
169
▪
▪
▪
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the8–4 split at April’s meeting, which marked JeromePowell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance.

The 2-year yield rose to 4.15% from 3.98% the prior month, while the 10-year yield edged down slightly to 4.44% from 4.45%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 47 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Front-end rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

ECONOMIC UPDATE
3 ATTACHMENT C
170
-400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
Nonfarm payrolls increased by just 57,000 in June, well below the 113,000 consensus and marking a sharp slowdown from May’s pace. The unemployment rate edged down to 4.2%, though the decline was driven by a drop in labor force participation to 61.5%, its lowest level since March 2021. Revisions further weakened the report’s signal. April payrolls were revised down by 31,000 to 148,000, while May was lowered by 43,000 to 129,000, resulting in a combined two-month downward revision of 74,000.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4 ATTACHMENT C
171
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
Job openings were essentially unchanged at 7.6 million in May, remaining elevated by historical standards even as hiring momentum moderates. Gains in wholesale trade and accommodation and food services were offsetby declines in health care and social assistance, as well as finance and insurance. April openings were revised down by 33,000 to 7.6 million, while hires were revised up by 99,000, highlighting ongoing churn but a broadly stable labor market backdrop.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5 ATTACHMENT C
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Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Crude oil prices declined sharply in June as supply disruptions tied to the Middle East conflict began to ease. Tanker traffic through the Strait of Hormuz normalized, and signs of progress in U.S.–Iran negotiations helped unwind the geopolitical risk premium that had driven prices higher earlier in the year. West Texas Intermediate settled near $69.37 per barrel on June 30, while Brent crude closed around $72.96, both well below their recent peaks. Brent’s 21% monthly decline marked its steepest drop since March 2020, while WTI fell more than 20%, its largest monthly loss since late 2021. Beyond crude, broader energy markets also softened. Refined product cracks narrowed as gasoline and diesel demand showed signs of seasonal moderation, while U.S. natural gas prices remained range-bound amid ample storage and steady production. Taken together, the retracement in oil and broader energy prices reflects a rapid compression in geopolitical risk premia and improved near-term supply visibility, even as underlying structural risks in the region remain unresolved.

2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot)
6 ATTACHMENT C
173

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY %
Change
PCE Core Deflator YOY %
Change
Fed Target
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
Inflation firmed in May, with the Personal Consumption Expenditures (PCE) price index rising 0.4% on the month and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE, which excludes food and energy, increased 0.3% in May and 3.4% over the year. Energy prices remained the primary driverof the headline acceleration, reflecting supply disruptions tied to the Iranian conflict. A similar pattern was evident in the headline Consumer Price Index (CPI), which rose 0.5% on the month and 4.2% year over year, the fastest annual pace since 2023. Energy prices climbed 3.9% in May and 23.5% from a year earlier, largely due to crude oil reaching a four-year high. In contrast, core CPI rose a more modest 0.2% on the month and 2.9% year over year, indicating that inflation pressures remain concentrated in energy rather than broad-based.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
7 ATTACHMENT C
174

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%
Retail Sales YOY % Change
YOY (%) Change
Retail sales rose a robust 0.9% in May to $763.7 billion, nearly double the pace economists had penciled in and an acceleration from April's downwardly revised 0.4% gain. The closely watched control group, which feeds directly into gross domestic product calculations, advanced

0.7%, pointing to durable underlying demand. Gasoline station receipts roseas energy prices stayed high, while auto sales rebounded after an April pullback. The Conference Board's Consumer Confidence Index tickedup 0.6 points to 91.2 in June, though the improvement masked a further deterioration in how households view the job market, with the share calling jobs ‘hard-to-get’ climbing to a five year high.

Spending has proven more resilient than sentiment across recent months. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
8 ATTACHMENT C
175
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) edged up 0.1% in May to 99.3, following a revised 0.2% increase in April. Despite the monthly gains, the LEI’s six- and twelve-month growth rates remained negative at -0.6% and -1.5%, respectively. The advance was driven primarily by financial components, including equity prices and the interest rate spread, while consumer expectations continuedto weigh on the index. The Chicago Fed National Activity Index fell to -0.10 in May from an upwardly revised 0.19 in April. Production-related and employment-related indicators each subtracted from the index, while the sales, orders, and inventories category made a small positive contribution.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
9 ATTACHMENT C
176
0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts declined sharply in May to a seasonally adjusted annual rate of 1,177,000, a 15.4% drop from a downwardly revised 1,392,000 in April. The pullback was driven primarily by multifamily construction, while single-family starts edged down a more modest

1.9% to 882,000; total multifamily starts came in at 295,000 units. The S&P CoreLogic Case-Shiller 20-City Composite rose 1.1% year over year in April, marking its first pickup since November 2025, following an upwardly revised 0.9% gain in March. Freddie Mac’s average 30- year fixed mortgage rate increased to 6.44% in May from 6.33% in April, reinforcing ongoing affordability constraints for prospective buyers.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
10 ATTACHMENT C
177
40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
Manufacturing activity cooled slightly in June, with the Institute for Supply Management's Manufacturing Index easing to 53.3%, down 0.7 percentage point from May but still marking a sixth consecutive month of expansion. Services activity also moderated, as the ISM Services Index eased to 54.0% from 54.5%, a twenty-fourth consecutive monthin expansion territory. Business activity and new orders both slowed, though the employment component jumpedto 51.2% from 47.9%, its strongest reading since late 2021 and the first expansion in services hiring in four months.

Source: Institute for Supply Management

PURCHASING MANAGERS INDEX (PMI)
11 ATTACHMENT C
178
Components of GDP 6/25 9/25 12/25 3/26

1.7% 2.3% 1.3% 0.4%
-2.7% 0.0% 0.4% 1.4%

4.8% 1.6% -0.2% -0.4%
-0.4% 0.2% -1.2% 0.6%

0.3% 0.2% 0.2% 0.2%

3.8% 4.4% 0.5% 2.1%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real gross domestic product increased at an annualized rate of 2.1% in the first quarter of 2026, according to the Bureau of Economic Analysis’ third estimate, up from 1.6%in the prior estimate andan acceleration from 0.5% in the fourth quarterof 2025. The 0.5 percentage point upward revision was driven primarily by a downward revision to imports—which subtract from GDP—partly offset by a downward revision to consumer spending.

GROSS DOMESTIC PRODUCT (GDP)
12 ATTACHMENT C
179
Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50% to 3.75% at its June 16–17 meeting, with a unanimous 12–0 vote. This marked a notable shift from the Aprilmeeting—Jerome Powell’slast as chair—which saw four dissents in an 8–4 decision. The return to consensus under Chair Kevin Warsh signals a clear change in tone. Minutes from the June meeting are scheduled for release in early July. The June Summaryof Economic Projections reflected a more hawkish outlook. The median projection for the federal funds rate at year-end 2026 rose to 3.8%, up from 3.4%in March, before easing to 3.6% in 2027 and 3.4% in 2028. Officials also revised their inflation forecasts, with headline PCE projected at 3.6% in 2026 (from 2.7%) and core PCE at 3.3%. By contrast, median projections for real GDP growth and the unemployment rate—2.2% and 4.3%, respectively—were little changed.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
13 ATTACHMENT C
180
Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Jun-26
Mar-26
Jun-25
Yield (%)
Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal.

The 2-year yield rose to 4.15% from 3.98% at the end of May, while the 10-year yield edged down to 4.44% from 4.45%. The 2s/10s spread narrowedto 29 basis points, down from 47 basis points a month earlier. The 3-month/10-year spread remained positive at roughly 64 basis points at month-end. Relativeto the 69 basis point spread at the start of 2026, the curve has flattened materially year to date, reflecting a repricing higher in front-end rates as expectations shift toward the possibility of further Fed tightening rather than easing.

BOND YIELDS
14 ATTACHMENT C
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ACCOUNT PROFILE
15 ATTACHMENT C
182

OBJECTIVES
Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and econmic cycles, taking into account the investment risk constraints and liquidity needs.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 16 ATTACHMENT C
183

STATEMENT OF COMPLIANCE
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES
Max % (MV) 20.0 9.0 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 20.0 9.0 Compliant Max Maturity (Years) 10.0 4.5 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 9.5 Compliant
Max % Issuer (MV) 5.0 1.4 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
(CDARS)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 0.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-

NEGOTIABLE CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 26.9 Compliant
Max % Issuer (MV) 5.0 1.8 Compliant
17 ATTACHMENT C
184

STATEMENT OF COMPLIANCE
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Rules Name Limit Actual Compliance
Status Notes
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 100.0 8.1 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 100.0 9.0 Compliant Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 10 8 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 0.0 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.3 Compliant
Max % Issuer (MV) 20.0 0.3 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE -BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 1.1 Compliant
Max % Issuer (MV) 5.0 1.1 Compliant
Max Maturity (Years) 10 6 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
18 ATTACHMENT C
185

STATEMENT OF COMPLIANCE
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Rules Name Limit Actual Compliance
Status Notes
Max Maturity (Years) 10 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 45.0 Compliant
Max Maturity (Years) 10 6 Compliant
19 ATTACHMENT C
186

PORTFOLIO CHARACTERISTICS
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Benchmark* 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 2.67 3.03 3.02
Average Modified Duration 2.49 2.54 2.55
Average Purchase Yield 4.18% 4.09%
Average Market Yield 4.22% 4.28% 4.03%
Average Quality** AA AA AA+
Total Market Value 356,856,418 353,652,761
*Benchmark: ICE BofA 1-5 Year Gov/Corp A or better
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 20 ATTACHMENT C
187

SECTOR DISTRIBUTION
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 44.99% 45.85%
Corporate 26.86% 26.62%
ABS 9.60% 9.51%
Agency CMBS 9.09% 8.30%
Agency 8.08% 8.20%
Muni Bonds 1.06% 1.08%
Money Mkt Fd 0.32% 0.43%
21 ATTACHMENT C
188

ISSUERS
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Issuer Investment Type % Portfolio
United States US Treasury 44.99%
Federal Home Loan Mortgage Corp Agency CMBS 9.09%
Farm Credit System Agency 4.90%
Federal Home Loan Banks Agency 2.42%
State Street Corporation Corporate 1.74%
Morgan Stanley Corporate 1.50%
Chase Issuance Trust ABS 1.39%
Caterpillar Inc. Corporate 1.14%
The Home Depot, Inc. Corporate 1.14%
Visa Inc. Corporate 1.11%
State of California Muni Bonds 1.06%
American Express Credit Master Trust ABS 1.05%
PACCAR Inc Corporate 1.02%
Nat Rural Util Coop Fin Corp Corporate 1.00%
American Honda Finance Corporation Corporate 0.99%
New York Life Insurance Company Corporate 0.99%
Eli Lilly and Company Corporate 0.98%
The Charles Schwab Corporation Corporate 0.98%
Merck & Co., Inc. Corporate 0.97%
GM Financial Auto Leasing Trust ABS 0.93%
BMW Vehicle Owner Trust ABS 0.90%
Cisco Systems, Inc. Corporate 0.86%
Mastercard Incorporated Corporate 0.85%
Massachusetts Mutual Life Insurance Corporate 0.84%
Prologis, Inc. Corporate 0.84%
JPMorgan Chase & Co. Corporate 0.83%
Hyundai Auto Receivables Trust ABS 0.79%
Amazon.com, Inc. Corporate 0.77%
U.S. Bancorp Corporate 0.76%
PNC Financial Services Corporate 0.75%
22 ATTACHMENT C
189

ISSUERS
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Issuer Investment Type % Portfolio
Metropolitan Life Global Funding I Corporate 0.75%
Toyota Motor Corporation Corporate 0.72%
Verizon Master Trust ABS 0.71%
Bank of America Corporation Corporate 0.71%
American Express Company Corporate 0.70%
The Progressive Corporation Corporate 0.65%
Northern Trust Corporation Corporate 0.62%
Target Corporation Corporate 0.60%
Public Storage OP, LP Corporate 0.59%
Honda Auto Receivables Owner Trust ABS 0.57%
Deere & Company Corporate 0.57%
Hyundai Motor Company ABS 0.57%
Toyota Auto Receivables Owner Trust ABS 0.56%
PepsiCo, Inc. Corporate 0.56%
Tennessee Valley Authority Agency 0.52%
WF Card Issuance Trust ABS 0.51%
Bank of America Credit Card Trust ABS 0.46%
BMW Vehicle Lease Trust ABS 0.45%
John Deere Owner Trust ABS 0.39%
The Goldman Sachs Group, Inc. Corporate 0.33%
Federated Hermes, Inc. Money Mkt Fd 0.32%
Hyundai Auto Lease Sec Trust ABS 0.30%
State of Tennessee Agency 0.25%
Cash Cash 0.00%
TOTAL 100.00%
23 ATTACHMENT C
190

QUALITY DISTRIBUTION
City of Stockton Reserve | Account #10020 | As of June 30, 2026 S&P Rating Moody’s Rating Fitch Rating
Rating 06/30/2026 03/31/2026
AAA 8.30% 8.44%
AA 64.98% 63.10%
A 18.61% 20.04%
BBB 1.01% 1.00%
A-1+ 3.42% 3.82%
NA 3.68% 3.60%
Rating 06/30/2026 03/31/2026
Aaa 6.22% 6.36%
Aa 66.64% 65.81%
A 18.69% 19.07%
P-1 3.42% 3.82%
NA 5.02% 4.94%
Rating 06/30/2026 03/31/2026
AAA 14.64% 14.69%
AA 60.15% 60.59%
A 11.56% 11.87%
F1+ 3.42% 3.82%
NA 10.23% 9.05%
24 ATTACHMENT C
191

DURATION DISTRIBUTION
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Portfolio Compared to the Benchmark
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 7.2% 0.5% 7.6% 16.4% 31.7% 21.7% 9.5% 5.5% 0.0% ICE BofA 1-5 Year Gov/Corp A or better 0.0% 0.0% 2.3% 35.3% 28.1% 21.8% 12.4% 0.0% 0.0% 25 ATTACHMENT C
192

INVESTMENT PERFORMANCE
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Total and Realized Rate of Return : Inception | 08/01/2022 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception*

MARKET VALUE BASIS EARNINGS
Income Earned 3,630,096 13,918,660 23,953,937 30,493,922 34,254,193 Change in Market Value (2,217,263) (2,757,025) 7,166,053 14,907,278 (1,849,853) TOTAL DOLLAR RETURN 1,412,833 11,161,635 31,119,991 45,401,200 32,404,340 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception

TOTAL RATE OF RETURN
City of Stockton Reserve 0.40% 3.24% 4.69% 4.64% 3.46%
ICE BofA 1-5 Year Gov/Corp A or better 0.29% 2.82% 4.49% 4.44% 3.12% Basis Point Fee* 0.01% 0.04% 0.04% 0.03% 0.03%
Net of Fees 0.39% 3.21% 4.65% 4.60% 3.43%
*Periods over 1 year are annualized.

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. Realized rate of return: A measure of a portfolio’s return over time. It is the internal rate which equates the beginning book value of the portfolio with the ending book value; it includes interest earnings, realized gains and losses in the portfolio. 26 ATTACHMENT C 193

HISTORICAL AVERAGE PURCHASE YIELD
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Purchase Yield as of 06/30/26 = 4.18%
27 ATTACHMENT C
194

PORTFOLIO HOLDINGS
28 ATTACHMENT C
195

HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
36271VAD9 GMALT 2025-1 A3 4.66
02/21/2028 1,390,000.00 02/05/2025

4.66%
1,389,835.98
1,389,910.86
100.19

4.34%
1,392,581.23
1,979.21

0.39%
2,670.37
NA/AAA
AAA

1.65 0.50
05592XAD2 BMWOT 2023-A A3 5.47
02/25/2028 104,333.94 07/11/2023

5.47%
104,315.45
104,327.31
100.33

4.10%
104,676.58

95.12 0.03%
349.27
NA/AAA
AAA

1.66 0.23
477920AC6 JDOT 2023-B A3 5.18 03/15/2028 281,793.79 06/21/2023

5.51%
281,746.79
281,776.79
100.36

4.19%
282,798.67
648.75

0.08%
1,021.88
Aaa/NA
AAA

1.71 0.34
47787CAC7 JDOT 2023-C A3 5.48 05/15/2028 1,096,571.18 09/12/2023

5.55%
1,096,495.84
1,096,540.87
100.51

4.40%
1,102,209.75
2,670.76

0.31%
5,668.88
Aaa/NA
AAA

1.88 0.45
438123AC5 HAROT 2023-4 A3 5.67
06/21/2028 432,748.33 11/01/2023

5.74%
432,672.13
432,715.77
100.62

4.34%
435,409.74
681.58

0.12%
2,693.97
Aaa/NA
AAA

1.98 0.42
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 4,915,000.00 --

5.23%
4,920,147.11
4,915,037.69
100.25

3.96%
4,927,380.89
11,271.73

1.39%
12,343.19
NA/AAA
AAA

2.21 0.20
448970AD5 HALST 2026-A A3 3.97
12/15/2028 1,080,000.00 01/12/2026

3.98%
1,079,841.67
1,079,865.74

99.32 4.46%
1,072,708.92
1,905.60

0.30%
(7,156.82)
NA/AAA
AAA

2.46 1.49
36273VAD7 GMALT 2026-1 A3 3.88
01/22/2029 1,915,000.00 02/03/2026

4.11%
1,914,749.33
1,914,781.74

99.29 4.44%
1,901,443.72
2,270.34

0.54%
(13,338.03)
NA/AAA
AAA

2.56 1.35
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 897,137.04 06/04/2024

5.18%
897,000.77
897,060.16
100.51

4.33%
901,678.35
774.53

0.25%
4,618.19
Aaa/AAA
NA

2.66 0.56
44934QAD3 HART 2024-B A3 4.84 03/15/2029 750,600.97 07/16/2024

5.45%
750,487.70
750,534.94
100.30

4.40%
752,865.53
1,614.63

0.21%
2,330.59
NA/AAA
AAA

2.71 0.61
43813YAC6 HAROT 2024-3 A3 4.57
03/21/2029 1,584,163.65 08/09/2024

4.66%
1,583,914.78
1,584,015.79
100.20

4.31%
1,587,303.46
2,011.01

0.45%
3,287.68
Aaa/NA
AAA

2.72 0.64
05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 1,635,000.00 06/06/2024

4.93%
1,634,908.28
1,634,946.66
100.65

4.21%
1,645,553.93
3,582.47

0.46%
10,607.27
Aaa/AAA
NA

2.87 0.84
05594YAD8 BMWLT 2026-1 A3 4.15
05/25/2029 1,590,000.00 04/14/2026

4.85%
1,589,824.31
1,589,835.20

99.56 4.46%
1,582,964.25
1,099.75

0.45%
(6,870.95)
Aaa/NA
AAA

2.90 1.65
89240JAD3 TAOT 2025-A A3 4.64 08/15/2029 1,990,000.00 01/22/2025

4.69%
1,989,920.20
1,989,945.12
100.32

4.31%
1,996,429.69
4,103.82

0.56%
6,484.57
Aaa/NA
AAA

3.13 0.86
096924AD7 BMWOT 2025-A A3 4.56
09/25/2029 2,185,000.00 02/04/2025

4.56%
2,184,784.78
2,184,849.12
100.25

4.28%
2,190,403.51
1,660.60

0.62%
5,554.39
Aaa/AAA
NA

3.24 0.77
44935CAD3 HART 2025-A A3 4.32 10/15/2029 2,045,000.00 03/04/2025

4.84%
2,044,698.36
2,044,783.93
100.05

4.31%
2,045,940.70
3,926.40

0.58%
1,156.77
NA/AAA
AAA

3.29 0.95
29 ATTACHMENT C
196

HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
92970QAE5 WFCIT 2024-2 A 4.29 10/15/2029 1,815,000.00 10/17/2024

4.29%
1,814,730.29
1,814,821.58
100.06

4.28%
1,816,092.63
3,460.60

0.51%
1,271.05
Aaa/AAA
NA

3.29 1.23
02582JKM1 AMXCA 2025-1 A 4.56 12/17/2029 3,685,000.00 02/04/2025

4.57%
3,684,181.56
3,684,415.07
100.39

4.32%
3,699,386.24
7,468.27

1.05%
14,971.17
NA/AAA
AAA

3.47 1.38
92348KDY6 VZMT 2025-3 A1A 4.51
03/20/2030 2,525,000.00 03/25/2025

4.51%
2,524,891.43
2,524,918.77
100.17

4.49%
2,529,279.88
3,479.59

0.71%
4,361.11
Aaa/NA
AAA

3.72 0.69
44935KAD5 HART 26B A3 4.81 02/18/2031 1,995,000.00 06/09/2026

4.86%
1,994,759.20
1,994,761.17
100.24

4.44%
1,999,795.98
3,731.76

0.57%
5,034.81
NA/AAA
AAA

4.64 2.20
Total ABS 33,912,348.91 4.77%
33,913,905.97
33,909,844.27
100.16

4.30%
33,966,903.62
58,436.50

9.60%
57,059.35

2.94 0.93
AGENCY
3130ATS57 FEDERAL HOME LOAN BANKS 4.5
03/10/2028 4,100,000.00 03/28/2023

3.89%
4,211,028.00
4,137,950.94
100.53

4.17%
4,121,766.90
56,887.50

1.16%
(16,184.04)
Aa1/AA+
AA+

1.70 1.59
3133ERDH1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 04/30/2029 2,500,000.00 04/29/2024

4.70%
2,505,075.00
2,502,873.80
101.52

4.17%
2,538,122.50
20,121.53

0.72%
35,248.70
Aa1/AA+
AA+

2.83 2.61
3130B1BC0 FEDERAL HOME LOAN BANKS

4.625 06/08/2029 1,900,000.00 07/30/2024

4.10%
1,943,358.00
1,926,239.78
101.20

4.19%
1,922,815.20
5,614.24

0.54%
(3,424.58)
Aa1/AA+
AA+

2.94 2.72
3133EN7B0 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.75 01/25/2030 3,000,000.00 01/20/2023

3.83%
2,985,090.00
2,992,396.31

98.37 4.25%
2,951,151.00
48,750.00

0.83%
(41,245.31)
Aa1/AA+
AA+

3.57 3.25
3133EN4V9 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.125 09/23/2030 2,100,000.00 12/22/2022

4.22%
2,087,505.00
2,093,171.29

99.62 4.22%
2,092,015.80
23,581.25

0.59%
(1,155.49)
Aa1/AA+
AA+

4.23 3.80
3133ENQ45 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.25 09/30/2030 875,000.00 11/30/2022

4.40%
866,250.00
870,253.41
100.08

4.23%
875,672.00
9,400.17

0.25%
5,418.59
Aa1/AA+
AA+

4.25 3.81
880591EX6 TENNESSEE VALLEY AUTHORITY

1.5 09/15/2031 1,003,000.00 01/23/2023

4.03%
818,959.53
892,085.88

87.28 4.25%
875,412.38
4,429.92

0.25%
(16,673.50)
Aa1/AA+
AA+

5.21 4.88
3133ENFQ8 FEDERAL FARM CREDIT BANKS
FUNDING CORP 1.81 12/01/2031 2,303,000.00 01/25/2023

3.94%
1,939,056.91
2,080,083.45

88.04 4.31%
2,027,600.35
3,473.69

0.57%
(52,483.10)
Aa1/AA+
AA+

5.42 5.05
3133ENGS3 FEDERAL FARM CREDIT BANKS
FUNDING CORP 1.625 12/09/2031 4,500,000.00 02/24/2023

4.35%
3,613,410.00
3,950,684.65

87.38 4.25%
3,932,082.00
4,468.75

1.11%
(18,602.65)
Aa1/AA+
AA+

5.44 5.09
3133EN6M7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.0 01/19/2033 3,000,000.00 01/18/2023

3.93%
3,017,490.00
3,011,462.10

96.99 4.54%
2,909,640.00
54,000.00

0.82%
(101,822.10)
Aa1/AA+
AA+

6.56 5.58
30 ATTACHMENT C
197

HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3130AV4X7 FEDERAL HOME LOAN BANKS

4.375 03/11/2033 2,500,000.00 05/12/2023

4.04%
2,568,175.00
2,546,457.04
100.28

4.32%
2,507,105.00
33,420.14

0.71%
(39,352.04)
Aa1/AA+
AA+

6.70 5.68
880591FB3 TENNESSEE VALLEY AUTHORITY

4.375 08/01/2034 1,845,000.00 08/08/2024

4.49%
1,828,561.05
1,831,663.68

99.87 4.39%
1,842,614.42
33,632.81

0.52%
10,950.74
Aa1/AA+
AA+

8.09 6.63
28,383,958.49 96.84 28,595,997.55 8.08% 4.57
Total Agency 29,626,000.00 4.14% 28,835,322.33 4.27% 297,780.00 (239,324.78) 4.07

AGENCY CMBS
3137F2LJ3 FHMS K-066 A2 3.117 06/25/2027 2,363,472.22 10/20/2022

4.88%
2,200,337.24
2,330,942.33

98.95 4.19%
2,338,565.95
6,139.12

0.66%
7,623.62
Aa1/AA+
AAA

0.99 0.81
3137FG6X8 FHMS K-077 A2 3.85 05/25/2028 5,245,000.00 05/24/2023

4.65%
5,148,705.08
5,209,117.02

98.91 4.37%
5,187,771.81
16,827.71

1.47%
(21,345.22)
Aa1/AA+
AAA

1.90 1.72
3137FHPJ6 FHMS K-080 A2 3.926 07/25/2028 3,500,000.00 10/28/2025

3.73%
3,510,937.50
3,508,208.74

98.90 4.39%
3,461,657.50
11,450.83

0.98%
(46,551.24)
Aaa/AA+
AA+

2.07 1.93
3137FK4M5 FHMS K-085 A2 4.06 10/25/2028 1,500,000.00 12/09/2025

3.90%
1,503,574.22
1,502,872.64

99.03 4.42%
1,485,451.50
5,075.00

0.42%
(17,421.14)
Aaa/AA+
AA+

2.32 2.13
3137FLN91 FHMS K-091 A2 3.505 03/25/2029 4,065,000.00 09/12/2025

3.81%
4,020,539.06
4,030,658.24

97.59 4.43%
3,967,155.45
11,873.19

1.12%
(63,502.79)
Aa1/AAA
AA+

2.73 2.45
3137FMTY8 FHMS K-094 A2 2.903 06/25/2029 3,500,000.00 11/17/2025

3.89%
3,383,925.78
3,404,006.89

95.77 4.43%
3,351,876.50
8,467.08

0.95%
(52,130.39)
Aa1/AA+
AAA

2.99 2.73
3137FPJG1 FHMS K-099 A2 2.595 09/25/2029 3,500,000.00 06/06/2025

4.38%
3,261,425.78
3,320,953.37

94.58 4.43%
3,310,450.50
7,568.75

0.94%
(10,502.87)
Aa1/AA+
AAA

3.24 2.94
3137FQ3Z4 FHMS K-101 A2 2.524 10/25/2029 3,400,000.00 06/09/2026

4.43%
3,200,117.19
3,203,263.65

94.18 4.44%
3,202,147.20
7,151.33

0.90%
(1,116.45)
Aa1/AA+
AA+

3.32 3.05
3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 3,000,000.00 07/14/2025

4.28%
2,730,937.50
2,788,581.95

92.25 4.44%
2,767,434.00
5,172.50

0.78%
(21,147.95)
Aa1/AA+
AAA

3.57 3.33
3137F8ZV8 FHMS K-123 A2 1.621 12/25/2030 3,500,000.00 02/11/2026

3.98%
3,144,667.96
3,171,907.37

88.77 4.46%
3,106,855.50
4,727.92

0.88%
(65,051.87)
Aa1/AA+
AAA

4.49 4.13
32,105,167.31 95.96 32,179,365.90 9.09% 2.76
Total Agency CMBS 33,573,472.22 4.20% 32,470,512.20 4.40% 84,453.43 (291,146.30) 2.52 CASH
31 ATTACHMENT C
198

HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CCYUSD Receivable 14,608.80 -- 14,608.80
14,608.80

1.00 14,608.80

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 14,608.80
14,608.80
14,608.80

1.00 14,608.80

0.00 0.00%

0.00 0.00

0.00 CORPORATE
02665WEK3 AMERICAN HONDA FINANCE
CORP 5.25 07/07/2026 3,500,000.00 04/29/2025

4.37%
3,535,000.00
3,500,484.99
100.01

4.29%
3,500,493.50
88,812.50

0.99%

8.51 A3/BBB+
A-

0.02 0.02
61761J3R8 MORGAN STANLEY 3.125
07/27/2026 3,500,000.00 04/29/2025

4.30%
3,450,685.00
3,497,169.56

99.96 3.58%
3,498,733.00
46,788.19

0.99%
1,563.44
A1/A-
A+

0.07 0.07
87612EBM7 TARGET CORP 1.95 01/15/2027 2,140,000.00 --

1.97%
2,137,844.40
2,139,765.35

98.83 4.16%
2,115,000.52
19,242.17

0.60%
(24,764.83)
A2/A
NA

0.54 0.52
808513BY0 CHARLES SCHWAB CORP 2.45
03/03/2027 3,500,000.00 01/23/2023

4.35%
3,251,955.00
3,459,431.89

98.80 4.27%
3,458,143.50
28,106.94

0.98%
(1,288.39)
A2/A-
A

0.67 0.65
665859AW4 NORTHERN TRUST CORP 4.0
05/10/2027 2,200,000.00 08/24/2022

3.93%
2,206,402.00
2,201,073.32

99.81 4.22%
2,195,806.80
12,466.67

0.62%
(5,266.52)
A2/A+
A+

0.86 0.83
92826CAH5 VISA INC 2.75 09/15/2027 4,000,000.00 03/27/2024

4.57%
3,769,760.00
3,919,797.91

98.21 4.28%
3,928,496.00
32,388.89

1.11%
8,698.09
Aa3/AA-
NA

1.21 1.16
74340XBV2 PROLOGIS LP 3.375 12/15/2027 3,000,000.00 01/25/2023

4.28%
2,881,530.00
2,964,651.69

98.72 4.29%
2,961,615.00
4,500.00

0.84%
(3,036.69)
A2/A
NA

1.46 1.40
24422EWR6 JOHN DEERE CAPITAL CORP 4.75
01/20/2028 2,000,000.00 01/20/2023

4.35%
2,035,920.00
2,011,197.89
100.71

4.27%
2,014,146.00
42,486.11

0.57%
2,948.11
A1/A
A+

1.56 1.45
713448FL7 PEPSICO INC 3.6 02/18/2028 2,000,000.00 04/27/2023

4.00%
1,964,920.00
1,988,080.39

98.92 4.29%
1,978,398.00
26,600.00

0.56%
(9,682.39)
A1/A+
NA

1.64 1.54
857477CU5 STATE STREET CORP 4.536
02/28/2028 4,155,000.00 02/25/2025

4.51%
4,155,000.00
4,155,000.00
100.38

4.29%
4,170,772.38
64,394.19

1.18%
15,772.38
Aa3/A
AA-

1.67 1.48
61747YER2 MORGAN STANLEY 4.21
04/20/2028 1,800,000.00 07/31/2023

5.39%
1,729,026.00
1,784,698.03

99.79 4.90%
1,796,266.80
14,945.50

0.51%
11,568.77
A1/A-
A+

1.81 0.78
58933YBH7 MERCK & CO INC 4.05 05/17/2028 2,000,000.00 --

4.03%
2,001,621.20
2,000,584.18

99.71 4.21%
1,994,176.00
9,900.00

0.56%
(6,408.18)
Aa3/A+
NA

1.88 1.78
46647PAM8 JPMORGAN CHASE & CO 3.509
01/23/2029 3,000,000.00 02/27/2024

5.19%
2,823,480.00
2,929,218.46

98.34 4.75%
2,950,347.00
46,201.83

0.83%
21,128.54
A1/A
AA-

2.57 1.48
32 ATTACHMENT C
199

HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
69371RS80 PACCAR FINANCIAL CORP 4.6
01/31/2029 3,600,000.00 01/29/2024

4.52%
3,612,132.00
3,606,275.17
100.64

4.33%
3,622,989.60
69,460.00

1.02%
16,714.43
A1/A+
NA

2.59 2.37
857477CN1 STATE STREET CORP 4.53
02/20/2029 2,000,000.00 08/14/2024

4.53%
2,000,000.00
2,000,000.00

99.96 4.59%
1,999,142.00
32,968.33

0.56%
(858.00)
Aa3/A
AA-

2.64 1.54
17275RBR2 CISCO SYSTEMS INC 4.85
02/26/2029 3,000,000.00 02/27/2024

4.84%
3,001,560.00
3,000,817.85
101.06

4.42%
3,031,857.00
50,520.83

0.86%
31,039.15
A1/AA-
NA

2.66 2.36
14913UAJ9 CATERPILLAR FINANCIAL SERVICES
CORP 4.85 02/27/2029 4,000,000.00 04/29/2024

5.08%
3,960,640.00
3,978,311.84
101.21

4.36%
4,048,560.00
66,822.22

1.14%
70,248.16
A1/A
A+

2.66 2.43
023135DC7 AMAZON.COM INC 4.0
03/13/2029 2,750,000.00 04/17/2026

4.05%
2,746,342.50
2,746,591.40

98.93 4.42%
2,720,608.00
33,000.00

0.77%
(25,983.40)
A1/AA
AA-

2.70 2.50
06051GLG2 BANK OF AMERICA CORP 5.202
04/25/2029 2,500,000.00 05/28/2024

5.38%
2,484,025.00
2,492,566.64
100.93

4.87%
2,523,335.00
23,842.50

0.71%
30,768.36
A1/A-
AA-

2.82 1.70
89236TMF9 TOYOTA MOTOR CREDIT CORP

5.05 05/16/2029 2,500,000.00 05/28/2024

5.09%
2,495,600.00
2,497,451.74
101.46

4.50%
2,536,385.00
15,781.25

0.72%
38,933.26
A1/A+
A+

2.88 2.64
57629W4T4 MASSMUTUAL GLOBAL FUNDING
II 5.15 05/30/2029 2,950,000.00 05/22/2024

5.17%
2,947,551.50
2,948,573.27
101.27

4.68%
2,987,317.50
13,082.43

0.84%
38,744.23
Aa3/AA+
AA+

2.91 2.67
38151LAJ9 GOLDMAN SACHS BANK USA

4.656 06/03/2029 1,150,000.00 05/27/2026

4.57%
1,150,000.00
1,150,000.00
100.06

4.54%
1,150,711.85
4,164.53

0.33%
711.85
A1/A+
AA-

2.93 1.81
437076DC3 HOME DEPOT INC 4.75
06/25/2029 4,000,000.00 07/30/2024

4.58%
4,028,360.00
4,017,074.04
100.99

4.39%
4,039,588.00
3,166.67

1.14%
22,513.96
A2/A
A

2.99 2.68
025816EJ4 AMERICAN EXPRESS CO 4.351
07/20/2029 2,500,000.00 07/25/2025

4.38%
2,497,650.00
2,498,196.66

99.49 4.56%
2,487,215.00
48,646.60

0.70%
(10,981.66)
A2/A-
A

3.05 1.90
532457CQ9 ELI LILLY AND CO 4.2 08/14/2029 2,290,000.00 08/12/2024

4.25%
2,284,984.90
2,286,869.00

99.48 4.38%
2,278,021.01
36,601.83

0.64%
(8,847.99)
Aa3/AA-
NA

3.12 2.85
64952WFK4 NEW YORK LIFE GLOBAL FUNDING

4.6 12/05/2029 3,500,000.00 02/27/2025

4.58%
3,502,135.00
3,501,536.56

99.95 4.62%
3,498,155.50
11,627.78

0.99%
(3,381.06)
Aa1/AA+
AAA

3.43 3.13
59217GFT1 METROPOLITAN LIFE GLOBAL
FUNDING I 4.9 01/09/2030 2,645,000.00 01/02/2025

4.95%
2,639,551.30
2,641,156.67
100.57

4.72%
2,660,169.08
61,922.39

0.75%
19,012.41
Aa3/AA-
AA-

3.53 3.13
63743HFX5

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.95
02/07/2030
3,500,000.00 05/28/2025

4.70%
3,535,315.00
3,526,968.58
101.05

4.63%
3,536,883.00
69,300.00

1.00%
9,914.42
A2/NA
A

3.61 3.14
743315AW3 PROGRESSIVE CORP 3.2
03/26/2030 2,425,000.00 11/14/2025

4.16%
2,332,971.25
2,346,052.07

95.34 4.57%
2,311,961.05
20,477.78

0.65%
(34,091.02)
A2/A
A

3.74 3.44
33 ATTACHMENT C
200

HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
74464AAC5 PUBLIC STORAGE OPERATING CO

4.375 07/01/2030 2,085,000.00 07/17/2025

4.58%
2,066,109.90
2,069,743.82

99.35 4.56%
2,071,407.89
45,609.38

0.59%
1,664.07
A2/A
NA

4.00 3.63
693475CD5 PNC FINANCIAL SERVICES GROUP
INC 4.899 05/13/2031 2,650,000.00 05/15/2026

4.83%
2,656,810.50
2,656,604.69
100.54

4.79%
2,664,336.50
17,309.80

0.75%
7,731.81
A3/A-
A

4.87 3.47
91159HJV3 US BANCORP 5.083 05/15/2031 2,650,000.00 05/15/2026

4.82%
2,675,307.50
2,674,543.76
101.11

4.80%
2,679,513.05
17,211.60

0.76%
4,969.29
A3/A
A+

4.87 3.46
532457DL9 ELI LILLY AND CO 4.375
05/20/2031 1,210,000.00 05/06/2026

4.40%
1,208,705.30
1,208,735.08

99.23 4.55%
1,200,686.63
6,028.99

0.34%
(8,048.45)
Aa3/AA-
NA

4.89 4.33
58933YCK9 MERCK & CO INC 4.65 05/22/2031 1,435,000.00 05/18/2026

4.66%
1,434,110.30
1,434,129.79
100.16

4.61%
1,437,346.23
7,228.81

0.41%
3,216.44
Aa3/A+
NA

4.89 4.31
57636QBL7 MASTERCARD INC 4.6 06/08/2031 3,020,000.00 06/04/2026

4.62%
3,017,584.00
3,017,614.43

99.85 4.63%
3,015,358.26
8,875.44

0.85%
(2,256.17)
Aa3/A+
NA

4.94 4.36
Total Corporate 95,155,000.00 4.54%
94,220,589.55
94,850,966.71

99.92 4.45%
95,063,941.64
1,100,482.17

26.86%
212,974.92

2.54 2.14

MONEY MARKET
FUND
60934N104 FEDERATED HRMS GV O INST 1,132,543.03 --

3.51%
1,132,543.03
1,132,543.03

1.00 5.17%
1,132,543.03

0.00 0.32%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 1,132,543.03 3.51%
1,132,543.03
1,132,543.03

1.00 5.17%
1,132,543.03

0.00 0.32%

0.00 0.00

0.00 MUNICIPAL BONDS
13063ESC1 CALIFORNIA ST 4.35 11/01/2032 3,800,000.00 10/31/2025

4.26%
3,820,216.00
3,818,338.57

98.91 4.55%
3,758,485.00
27,550.00

1.06%
(59,853.57)
Aa2/AA-
AA

6.34 5.44
Total Municipal
Bonds 3,800,000.00 4.26%
3,820,216.00
3,818,338.57

98.91 4.55%
3,758,485.00
27,550.00

1.06%
(59,853.57)

6.34 5.44

US TREASURY
912797UP0 UNITED STATES TREASURY
07/14/2026 4,500,000.00 06/16/2026

3.64%
4,487,909.06
4,494,178.44

99.87 3.63%
4,494,186.00

0.00 1.27%

7.56 P-1/A-1+
F1+

0.04 0.04
912797UU9 UNITED STATES TREASURY
08/18/2026 7,750,000.00 04/17/2026

3.69%
7,657,749.38
7,712,789.67

99.51 3.73%
7,712,195.50

0.00 2.18%
(594.17)
P-1/A-1+
F1+

0.13 0.13
34 ATTACHMENT C
201

HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CQB0 UNITED STATES TREASURY 3.375
02/29/2028 7,000,000.00 02/25/2026

3.46%
6,988,242.19
6,990,193.76

98.75 4.15%
6,912,773.00
78,963.99

1.95%
(77,420.76)
Aa1/AA+
AA+

1.67 1.58
91282CHX2 UNITED STATES TREASURY 4.375
08/31/2028 7,000,000.00 06/16/2026

4.09%
7,041,562.50
7,040,840.57
100.42

4.17%
7,029,533.00
102,360.73

1.99%
(11,307.57)
Aa1/AA+
AA+

2.17 2.02
91282CCY5 UNITED STATES TREASURY 1.25
09/30/2028 5,325,000.00 --

3.51%
4,940,998.05
5,072,453.18

93.79 4.17%
4,994,269.58
16,731.56

1.41%
(78,183.60)
Aa1/AA+
AA+

2.25 2.17
91282CPC9 UNITED STATES TREASURY 3.5
10/15/2028 6,300,000.00 10/28/2025

3.49%
6,301,230.47
6,300,951.85

98.54 4.17%
6,208,209.00
46,389.34

1.75%
(92,742.85)
Aa1/AA+
AA+

2.29 2.16
9128285M8 UNITED STATES TREASURY 3.125
11/15/2028 6,300,000.00 10/28/2025

3.50%
6,232,078.13
6,247,029.49

97.66 4.17%
6,152,838.30
25,144.36

1.74%
(94,191.19)
Aa1/AA+
AA+

2.38 2.25
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 6,300,000.00 10/28/2025

3.51%
6,345,035.16
6,335,515.22

99.01 4.17%
6,237,491.40
641.98

1.76%
(98,023.82)
Aa1/AA+
AA+

2.50 2.36
91282CJW2 UNITED STATES TREASURY 4.0
01/31/2029 7,000,000.00 03/27/2024

4.20%
6,940,117.19
6,968,028.67

99.57 4.18%
6,969,921.00
116,795.58

1.97%
1,892.33
Aa1/AA+
AA+

2.59 2.39
91282CQA2 UNITED STATES TREASURY 3.5
02/15/2029 7,000,000.00 02/11/2026

3.56%
6,987,968.75
6,989,442.41

98.34 4.17%
6,884,066.00
92,044.20

1.95%
(105,376.41)
Aa1/AA+
AA+

2.63 2.45
9128286B1 UNITED STATES TREASURY 2.625
02/15/2029 7,000,000.00 --

4.06%
6,525,214.84
6,766,542.75

96.20 4.17%
6,733,671.00
69,033.15

1.90%
(32,871.75)
Aa1/AA+
AA+

2.63 2.47
91282CKT7 UNITED STATES TREASURY 4.5
05/31/2029 6,500,000.00 06/13/2024

4.25%
6,572,617.19
6,542,751.41
100.91

4.17%
6,558,909.50
24,774.59

1.85%
16,158.09
Aa1/AA+
AA+

2.92 2.70
91282CLC3 UNITED STATES TREASURY 4.0
07/31/2029 3,450,000.00 12/23/2024

4.42%
3,390,164.06
3,409,895.67

99.52 4.17%
3,433,557.30
57,563.54

0.97%
23,661.63
Aa1/AA+
AA+

3.08 2.82
912828YB0 UNITED STATES TREASURY 1.625
08/15/2029 7,600,000.00 --

3.42%
6,985,504.69
7,211,241.36

92.67 4.15%
7,042,768.00
46,397.79

1.99%
(168,473.36)
Aa1/AA+
AA+

3.13 2.97
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 6,500,000.00 11/26/2024

4.21%
6,475,371.10
6,483,325.18

99.84 4.18%
6,489,587.00
45,173.23

1.83%
6,261.82
Aa1/AA+
AA+

3.34 3.06
91282CFY2 UNITED STATES TREASURY 3.875
11/30/2029 8,000,000.00 01/30/2025

4.32%
7,847,187.50
7,891,887.76

99.04 4.18%
7,922,816.00
26,256.83

2.24%
30,928.24
Aa1/AA+
AA+

3.42 3.15
91282CGJ4 UNITED STATES TREASURY 3.5
01/31/2030 6,700,000.00 --

4.02%
6,511,839.85
6,593,025.43

97.75 4.18%
6,549,511.30
97,816.30

1.85%
(43,514.13)
Aa1/AA+
AA+

3.59 3.28
912828Z94 UNITED STATES TREASURY 1.5
02/15/2030 542,500.00 04/06/2022

2.65%
498,040.43
521,952.76

91.10 4.17%
494,226.18
3,057.18

0.14%
(27,726.58)
Aa1/AA+
AA+

3.63 3.44
91282CMZ1 UNITED STATES TREASURY 3.875
04/30/2030 3,500,000.00 05/28/2025

4.08%
3,467,871.09
3,474,987.01

98.92 4.18%
3,462,130.00
22,849.86

0.98%
(12,857.01)
Aa1/AA+
AA+

3.83 3.50
35 ATTACHMENT C
202

HOLDINGS REPORT
City of Stockton Reserve | Account #10020 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 3,000,000.00 06/06/2025

4.11%
2,985,117.19
2,988,287.06

99.32 4.19%
2,979,726.00
10,163.93

0.84%
(8,561.06)
Aa1/AA+
AA+

3.92 3.58
91282CNN7 UNITED STATES TREASURY 3.875
07/31/2030 4,000,000.00 08/15/2025

3.85%
4,005,000.00
4,004,123.34

98.82 4.19%
3,952,812.00
64,654.70

1.12%
(51,311.34)
Aa1/AA+
AA+

4.08 3.68
91282CAE1 UNITED STATES TREASURY 0.625
08/15/2030 587,500.00 04/06/2022

2.63%
498,755.37
543,651.76

86.60 4.20%
508,784.40
1,379.49

0.14%
(34,867.36)
Aa1/AA+
AA+

4.13 3.98
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 5,000,000.00 09/18/2025

3.66%
4,992,382.81
4,993,584.19

97.83 4.20%
4,891,600.00
60,580.84

1.38%
(101,984.19)
Aa1/AA+
AA+

4.17 3.77
91282CPA3 UNITED STATES TREASURY 3.625
09/30/2030 1,500,000.00 11/17/2025

3.72%
1,493,496.09
1,494,319.60

97.80 4.20%
1,466,953.50
13,668.03

0.41%
(27,366.10)
Aa1/AA+
AA+

4.25 3.86
91282CPD7 UNITED STATES TREASURY 3.625
10/31/2030 7,000,000.00 11/13/2025

3.70%
6,975,664.06
6,978,739.63

97.74 4.20%
6,841,954.00
42,751.36

1.93%
(136,785.63)
Aa1/AA+
AA+

4.34 3.94
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 7,000,000.00 12/08/2025

3.75%
6,920,703.13
6,929,606.03

97.20 4.20%
6,803,671.00
20,751.37

1.92%
(125,935.03)
Aa1/AA+
AA+

4.42 4.03
91282CPW5 UNITED STATES TREASURY 3.75
01/31/2031 3,000,000.00 03/26/2026

4.04%
2,962,031.25
2,964,089.41

98.11 4.21%
2,943,399.00
46,926.80

0.83%
(20,690.41)
Aa1/AA+
AA+

4.59 4.10
912810FP8 UNITED STATES TREASURY 5.375
02/15/2031 6,000,000.00 --

4.27%
6,403,066.41
6,262,639.14
104.98

4.18%
6,298,830.00
121,160.22

1.78%
36,190.86
Aa1/AA+
AA+

4.63 4.01
91282CBL4 UNITED STATES TREASURY 1.125
02/15/2031 565,000.00 04/06/2022

2.62%
498,104.88
530,020.80

87.26 4.18%
493,028.61
2,387.98

0.14%
(36,992.20)
Aa1/AA+
AA+

4.63 4.40
91282CQD6 UNITED STATES TREASURY 3.5
02/28/2031 7,000,000.00 03/05/2026

3.72%
6,929,726.56
6,934,244.14

97.07 4.20%
6,794,648.00
81,888.59

1.92%
(139,596.14)
Aa1/AA+
AA+

4.67 4.20
91282CCS8 UNITED STATES TREASURY 1.25
08/15/2031 562,500.00 04/06/2022

2.62%
498,515.62
527,423.89

86.43 4.22%
486,145.13
2,641.57

0.14%
(41,278.76)
Aa1/AA+
AA+

5.13 4.84
91282CFV8 UNITED STATES TREASURY 4.125
11/15/2032 2,500,000.00 --

3.72%
2,582,389.33
2,553,551.91

99.10 4.29%
2,477,540.00
13,170.86

0.70%
(76,011.91)
Aa1/AA+
AA+

6.38 5.52
Total US Treasury 161,982,500.00 3.83%
159,941,654.33
160,751,313.49

98.36 4.14%
159,221,750.69
1,354,119.97

44.99%
(1,529,562.81)

3.06 2.81
Total Portfolio 359,196,472.96 4.18%
353,532,643.48
355,783,449.41

98.30 4.28%
353,933,596.22
2,922,822.06
100.00%
(1,849,853.19)

3.03 2.54
Total Market Value +
Accrued 356,856,418.28
36 ATTACHMENT C
203

TRANSACTIONS
37 ATTACHMENT C
204

TRANSACTION LEDGER
City of Stockton Reserve | Account #10020|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 04/20/2026 023135DC7 2,750,000.00 AMAZON.COM INC 4.0 03/13/2029 99.867 4.05% (2,746,342.50) (11,305.56) (2,757,648.06) 0.00 Purchase 04/20/2026 912797UA3 7,750,000.00 UNITED STATES TREASURY 06/16/2026 99.430 3.67% (7,705,800.46) 0.00 (7,705,800.46) 0.00 Purchase 04/21/2026 912797UU9 7,750,000.00 UNITED STATES TREASURY 08/18/2026 98.810 3.69% (7,657,749.38) 0.00 (7,657,749.38) 0.00 Purchase 04/22/2026 05594YAD8 1,590,000.00 BMWLT 2026-1 A3

4.15 05/25/2029 99.989 4.85% (1,589,824.31) 0.00 (1,589,824.31) 0.00 Purchase 04/28/2026 91282CCY5 2,000,000.00

UNITED STATES
TREASURY 1.25
09/30/2028

94.121 3.81% (1,882,421.88) (1,912.57) (1,884,334.45) 0.00 Purchase 05/18/2026 693475CD5 2,650,000.00

PNC FINANCIAL

SERVICES GROUP INC

4.899 05/13/2031
100.257 4.83% (2,656,810.50) (1,803.10) (2,658,613.60) 0.00 Purchase 05/18/2026 91159HJV3 2,650,000.00 US BANCORP 5.083 05/15/2031 100.955 4.82% (2,675,307.50) (1,122.50) (2,676,430.00) 0.00 Purchase 05/20/2026 532457DL9 1,210,000.00 ELI LILLY AND CO 4.375 05/20/2031 99.893 4.40% (1,208,705.30) 0.00 (1,208,705.30) 0.00 Purchase 05/22/2026 58933YCK9 1,435,000.00 MERCK & CO INC 4.65 05/22/2031 99.938 4.66% (1,434,110.30) 0.00 (1,434,110.30) 0.00 Purchase 06/03/2026 38151LAJ9 1,150,000.00

GOLDMAN SACHS
BANK USA 4.656
06/03/2029
100.000 4.57% (1,150,000.00) 0.00 (1,150,000.00) 0.00
Purchase 06/03/2026 38151LAJ9 (1,150,000.00)

GOLDMAN SACHS
BANK USA 4.656
06/03/2029
100.000 4.57% 1,150,000.00 0.00 0.00 0.00
Purchase 06/03/2026 38151LAJ9 1,150,000.00

GOLDMAN SACHS
BANK USA 4.656
06/03/2029
100.000 4.57% (1,150,000.00) 0.00 0.00 0.00
Purchase 06/08/2026 57636QBL7 3,020,000.00 MASTERCARD INC 4.6 06/08/2031 99.920 4.62% (3,017,584.00) 0.00 (3,017,584.00) 0.00 Purchase 06/12/2026 3137FQ3Z4 3,400,000.00 FHMS K-101 A2 2.524 10/25/2029 94.121 4.43% (3,200,117.19) (2,622.16) (3,202,739.35) 0.00 Purchase 06/17/2026 44935KAD5 1,995,000.00 HART 26B A3 4.81 02/18/2031 99.988 4.86% (1,994,759.20) 0.00 (1,994,759.20) 0.00 38 ATTACHMENT C
205

TRANSACTION LEDGER
City of Stockton Reserve | Account #10020|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Purchase 06/17/2026 91282CHX2 7,000,000.00

UNITED STATES
TREASURY 4.375
08/31/2028
100.594 4.09% (7,041,562.50) (90,709.92) (7,132,272.42) 0.00 Purchase 06/17/2026 912797UP0 4,500,000.00 UNITED STATES TREASURY 07/14/2026 99.731 3.64% (4,487,909.06) 0.00 (4,487,909.06) 0.00 Total Purchase 50,850,000.00 (50,449,004.08) (109,475.81) (50,558,479.89) 0.00 TOTAL
ACQUISITIONS 50,850,000.00 (50,449,004.08) (109,475.81) (50,558,479.89) 0.00

DISPOSITIONS
Maturity 04/01/2026 46625HQW3 (3,000,000.00) JPMORGAN CHASE & CO 3.3 04/01/2026 100.000 4.38% 3,000,000.00 0.00 3,000,000.00 0.00 Maturity 04/07/2026 912797TG2 (13,500,000.00) UNITED STATES TREASURY 04/07/2026 100.000 3.69% 13,500,000.00 0.00 13,500,000.00 0.00 Maturity 04/19/2026 06051GFX2 (3,000,000.00) BANK OF AMERICA CORP 3.5 04/19/2026 100.000 4.43% 3,000,000.00 0.00 3,000,000.00 0.00 Maturity 05/15/2026 02582JJZ4 (1,270,000.00) AMXCA 2023-1 A 4.87 05/15/2026 100.000 4.92% 0.00 0.00 0.00 0.00
Maturity 05/15/2026 91324PEC2 (4,000,000.00) UNITEDHEALTH GROUP INC 1.15 05/15/2026 100.000 4.16% 4,000,000.00 0.00 4,000,000.00 0.00 Maturity 05/31/2026 91282CCF6 (8,320,000.00)

UNITED STATES
TREASURY 0.75
05/31/2026
100.000 0.80% 8,320,000.00 0.00 8,320,000.00 0.00
Maturity 06/16/2026 912797UA3 (7,750,000.00) UNITED STATES TREASURY 06/16/2026 100.000 3.67% 7,750,000.00 0.00 7,750,000.00 (0.00) Total Maturity (40,840,000.00) 39,570,000.00 0.00 39,570,000.00 (0.00) Sale 06/08/2026 57636QAW4 (3,000,000.00) MASTERCARD INC

4.875 03/09/2028 100.848 4.50% 3,025,440.00 36,156.25 3,061,596.25 8,417.32 Total Sale (3,000,000.00) 3,025,440.00 36,156.25 3,061,596.25 8,417.32 TOTAL
DISPOSITIONS (43,840,000.00) 42,595,440.00 36,156.25 42,631,596.25 8,417.32 39 ATTACHMENT C
206

IMPORTANT DISCLOSURES
2026 Chandler Asset Management, Inc, An Independent Registered InvestmentAdviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest.

LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds, the 30-day yield is calculated using reported daily yield data. Yield calculations are subject to change and may not be directly comparable across funds.

LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yields represent the most recently available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end. 40 ATTACHMENT C
207

BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Year Gov/Corp A or
better
The ICE BofA US Issuers 1-5 Year AAA-A US Corporate & Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational, and corporate securities. Qualifying securities must be issued from US issuers and be rated AAA through A3 (based on an average of Moody’s, S&P and Fitch). In addition, qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to final maturity at point of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for US Treasuries and $250 million for all other securities. 41 ATTACHMENT C
208

ATTACHMENT D
209
City of Stockton
Legislation Text
File #: 26-1044, Version: 1
APPROVE RESPONSE TO THE 2025-2026 CIVIL GRAND JURY REPORT ON CASE NO. 0125, “STOCKTON CITY COUNCIL: GOVERNANCE IN TURMOIL”

RECOMMENDATION
It is recommended that the City Council.

1. Approve by motion the City’s response to the 2025-2026 Civil Grand Jury Report titled “Stockton City Council: Government in Turmoil,” Case No. 0125; and

2. Authorize the City Manager and City Attorney to make any necessary non-substantive revisions to the responses prior to submission to the Presiding Judge of the San Joaquin County Superior Court; and

3. Direct staff to establish a public tracking matrix identifying each Finding and Recommendation, the City’s response, responsible department or office, implementation status, and anticipated completion date, as applicable.

Summary
On June 25, 2026, the San Joaquin County Civil Grand Jury released its 2025-2026 Consolidated Report. Among the investigations included in the report is “Stockton City Council: Governance in Turmoil,” Case No. 0125.

The Grand Jury's investigation initially involved complaints concerning alleged violations of the Brown Act and the handling of confidential information by members of the Stockton City Council. According to the Grand Jury, the investigation subsequently expanded to examine broader issues involving City governance, Council conduct, the Council-Manager form of government, relationships between elected officials and City staff, fiscal processes, ethics, social media and public communications, campaign finance, and the City's responses to prior Grand Jury recommendations.

The report contains nine Findings and eight Recommendations directed to the Stockton City Council.

The recommendations include additional Councilmember training, strengthening the City's ethics framework, establishing written social media guidelines, addressing public statements concerning other Councilmembers and City staff, consideration of an independent ethics commission, and consideration of local campaign contribution limits.

California Penal Code Sections 933 and 933.05 establish the City's obligation to respond to the findings and recommendations of the Civil Grand Jury. For each Finding, the responding agency must state whether it agrees or disagrees, wholly or partially, and explain the basis for any disagreement. For each Recommendation, the response must identify whether the recommendation City of Stockton Printed on 9/24/2026Page 1 of 3
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File #: 26-1044, Version: 1
has been implemented, will be implemented, requires further analysis, or will not be implemented because it is not warranted or reasonable.

The City's response submittal was due to the Presiding Judge of the San Joaquin County Superior Court within 90 days of publication of the report. However, due to time constraints, the City has requested an extension in order that City Council can consider the report at this Council meeting.

DISCUSSION
Background
Civil Grand Juries are authorized to examine and investigate the operations, functions, and activities of local governmental agencies. The 2025-2026 San Joaquin County Civil Grand Jury released its consolidated report on June 25, 2026 (Attachment A).

The Stockton investigation, entitled “Stockton City Council: Governance in Turmoil,” examined the City's governance structure and the conduct of the City Council during a period of significant organizational transition.

The Civil Grand Jury identified concerns related to:
· Public disagreements and conflict among members of the City Council; · The relationship between the City Council and City staff; · Compliance with City Charter provisions concerning Councilmember interaction with staff; · Leadership instability and the absence of a permanent City Manager for a significant portion of 2025;
· City fiscal and investigative processes;
· Councilmember compliance with ethics principles and the City's Code of Conduct; · Use of social media and other public forums in connection with City business; · Transparency concerning outside interests and political activity; and · Local campaign contribution limitations and transparency.

The report contains nine Findings and eight Recommendations addressing these areas.

Present Situation
Legal Requirements for the City's Response
California Penal Code Section 933.05 requires a responding public agency to address each Grand Jury Finding and Recommendation individually.

For Findings, the response must state whether the City:
· Agrees with the Finding; or
· Disagrees wholly or partially with the Finding and explains the reasons for the disagreement.

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File #: 26-1044, Version: 1
For Recommendations, the response must state whether:
· The Recommendation has been implemented, with a summary of the action; · The Recommendation has not yet been implemented, but will be implemented, including a timeframe;
· The Recommendation requires further analysis, including the scope of the analysis and a timeframe not exceeding six months; or
· The Recommendation will not be implemented because it is not warranted or reasonable, including an explanation.

Staff has therefore organized the proposed response in a manner that directly corresponds to the statutory requirements. Attachment B provides the draft City Response to the 2025-2026 Civil Grand Jury Report.

The 2025-2026 San Joaquin County Civil Grand Jury report provides the City Council with an opportunity to review the City's governance practices, clarify roles and expectations, and strengthen existing policies and procedures.

Staff recommends that the City Council approve the City's responses to the Civil Grand Jury's Findings and Recommendations and establish a formal implementation tracking process.

The City's objective shall be to respond to the Grand Jury in a manner that is factual, legally compliant, constructive, and focused on strengthening the organization and its ability to serve the residents of Stockton.

FINANCIAL SUMMARY
The recommendations contained in this staff report are not expected to have a significant immediate fiscal impact.

Implementation of certain recommendations may require future resources, including costs associated with training, development, or administration of an ethics commission, policy development, outside legal or consulting assistance, technology, or additional administrative support.

Any future expenditures requiring appropriation will be brought forward to the City Council for consideration through the City's established budget process.

Attachment A - 2025-2026 San Joaquin County Civil Grand Jury Report - Case No. 0125 Attachment B - City of Stockton Response to 2025-2026 San Joaquin County Civil Grand Jury Report - “Stockton City Council: Governance in Turmoil ”
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Draft for Internal Review | September 2026 | Page 1

CITY OF STOCKTON
RESPONSE TO THE 2025-2026 SAN JOAQUIN COUNTY CIVIL GRAND JURY Stockton City Council - Governance in Turmoil
Case No. 0125
P
repared September 2026
P
repared for review prior to City Council adoption and submission to the Presiding Judge, San Joaquin County Superior Court.

S
ource report: 2025-2026 San Joaquin County Civil Grand Jury, “Governance in Turmoil,” Case No. 0125, released June 2026.

ATTACHMENT B
237

Draft for Internal Review | September 2026 | Page 2

CONTENTS

Cover Letter and City Response Framework

I. Responses to Grand Jury Findings F1-F9
II. Responses to Grand Jury Recommendations R1-R8
III. Corrective Action and Governance Reset
IV. Response to Prior Grand Jury Follow-Up Concerns
V. Accountability and Public Reporting
VI. Conclusion

Exhibit A - Grand Jury / Governance Reset Implementation Matrix Exhibit B - Council Governance and Conduct Policy Framework Exhibit C - Charter and Council-Manager Governance Protocol Exhibit D - Brown Act and Closed-Session Compliance Plan Exhibit E - Social Media and Public Communications Policy Exhibit F - Investigation Accountability Protocol
Exhibit G - Ethics and Accountability Roadmap
Exhibit H - Fiscal, Procurement and Grant Transparency Protocol Exhibit I - Campaign Finance Ordinance Work Plan
Exhibit J - Prior Grand Jury Recommendation Closeout Matrix Exhibit K - Implementation and Reporting Calendar

This draft incorporates the verbatim Findings F1-F9 and Recommendations R1-R8 from the Civil Grand Jury report. Final adoption date, resolution number, and any conforming legal revisions should be inserted by the City Attorney and City Clerk before submission.

ATTACHMENT B
238

Draft for Internal Review | September 2026 | Page 3 September 2026

The Honorable Lance G. Jacot, Presiding Judge
San Joaquin County Superior Court
180 E. Weber Avenue, Suite 1306J
Stockton, California 95202

Re: City of Stockton Response to 2025- 2026 Civil Grand Jury Report, “Stockton City Council - Governance in Turmoil,” Case No. 0125

Dear Judge Jacot:

On behalf of the City of Stockton, the Stockton City Council respectfully submits this response to the findings and recommendations contained in the 2025-2026 San Joaquin County Civil Grand Jury report entitled “Stockton City Council - Governance in Turmoil,” Case No. 0125.

The City recognizes the important role of the Civil Grand Jury in reviewing the operation of local government and identifying circumstances that may impair public confidence, administrative efficiency, legal compliance, or institutional stability. The City takes the concerns raised in this report seriously.

Pursuant to California Penal Code sections 933 and 933.05, the City responds separately to each finding and recommendation. For each finding, the City states whether it agrees or disagrees wholly or partially and explains any disagreement. For each recomme ndation, the City uses the response category and implementation detail required by Penal Code section 933.05(b), including a summary of action already taken or a specific implementation timeframe.

The City’s response is guided by four principles:

1. The City can acknowledge a governance problem without necessarily accepting every factual characterization, inference regarding motive, or conclusion concerning individual conduct contained in the report.

2. Disagreement among elected officials is not itself a failure of governance. The concern arises when disagreement interferes with lawful administration, staff operations, public confidence, workplace safety, or the orderly conduct of City business.

3. Corrective measures must respect constitutional and statutory protections. The City’s reforms regulate governmental process and official conduct, not political viewpoints or lawful criticism.

4. Corrective action must be measurable. The City will maintain a Grand Jury and Governance Reset Implementation Matrix identifying the corrective action, responsible office, implementation vehicle, deadline, status, and public evidence of completion.

The City Council will adopt the final response in public session before submission. The adoption date and resolution number will be added by the City Clerk following Council action.

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Draft for Internal Review | September 2026 | Page 4 I. RESPONSES TO GRAND JURY FINDINGS

The following reproduces Findings F1 through F9 verbatim from pages 18 -19 of the Civil Grand Jury report. The City’s responses are structured to conform to Penal Code section 933.05(a).

FINDING F1
The very public conflicts among Council members have seriously undermined public faith in the Council's ability to conduct business transparently and professionally.

CITY RESPONSE: THE CITY AGREES IN PART WITH THE FINDING.

The City agrees that sustained and highly public conflict among Councilmembers can diminish public confidence in municipal government and distract attention from the City's responsibility to provide services, make policy, and conduct public business professionally.

The City does not agree, however, that public disagreement itself necessarily constitutes a governance failure. Elected officials are independently elected and are expected to debate policy, question recommendations, scrutinize expenditures, and represent differing viewpoints.

The City's corrective objective is therefore not unanimity. It is to ensure that disagreement occurs within a professional, lawful, transparent, and institutionally responsible framework.

The Governance Reset addresses this concern through strengthened Council conduct standards, meeting procedures, complaint routing, staff protections, public communications standards, training, and measurable implementation reporting.

FINDING F2
In violation of City Charter Section 408, Stockton City Council has directly interfered with the duties and responsibilities of City staff. These actions have contributed to operational challenges within City government that will require additional time and resources to resolve.

CITY RESPONSE: THE CITY AGREES IN PART WITH THE FINDING.

The City agrees with the underlying governance principle that Stockton Charter Section 408 establishes important boundaries between the legislative role of the Mayor and Council and the administrative responsibilities of the City Manager and other Charter officers.

The City further agrees that individual elected officials shall not direct, discipline, pressure, threaten, or otherwise exercise administrative authority over employees who fall within the supervision of the City Manager or another Charter officer, except as authorized by the Charter.

The City disagrees with the finding to the extent it treats all Council interaction with City staff, or the conduct of the Council collectively, as established Charter violations without individualized factual analysis. Councilmembers retain legitimate authority to request information, raise constituent

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Draft for Internal Review | September 2026 | Page 5 concerns, ask policy questions, participate in authorized investigations, and exercise legislative oversight.

Whether a specific interaction constitutes prohibited interference depends upon the facts, the nature of the communication, and the applicable Charter authority. To eliminate ambiguity going forward, the City will implement a Council request -routing protocol, staff-contact procedures, Charter Section 408 training, escalation procedures, and a mechanism through which employees may report suspected improper direction without retaliation.

FINDING F3
Public records and media coverage indicate that the Stockton City Council has experienced ongoing internal conflict, including frequent disagreements, contentious meetings, and voting patterns that consistently divide the Council and lead to Council improprieties and the appearance of improprieties.

CITY RESPONSE: THE CITY AGREES IN PART WITH THE FINDING.

The City agrees that repeated personal conflict, contentious meetings, and breakdowns in professional relationships can diminish public confidence and impede effective governance.

The City disagrees, however, with any implication that recurring divided votes or disagreement among elected officials, standing alone, constitutes an impropriety or evidence of an appearance of impropriety. A divided vote is a lawful exercise of legislative judgment, and a 4 -3 decision is not less legitimate than a unanimous decision merely because the same elected officials may frequently take differing positions.

The relevant governance issue is the conduct surrounding disagreement, not the existence of disagreement itself. The City will strengthen objective standards governing meeting decorum, professional conduct, complaint routing, public accusations, use of off icial communications, and referral of alleged misconduct to appropriate processes.

FINDING F4
The Stockton City Council has attempted to bypass established protocols regarding fiscal matters, thus raising the possibility for further delays in the approval process and the possibility of the District Attorney's intervention.

CITY RESPONSE: THE CITY AGREES IN PART WITH THE FINDING.

The City agrees that fiscal decisions shall comply with applicable Charter provisions, ordinances, procurement rules, budget authority, grant conditions, conflict -of-interest requirements, and established administrative procedures.

The City also agrees that the administrative record supporting significant expenditures, grants, contracts, and funding decisions should be transparent and sufficiently documented.

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Draft for Internal Review | September 2026 | Page 6 The City disagrees that a Council decision differing from a staff recommendation necessarily constitutes an attempt to bypass fiscal protocols. The City Council retains legislative and budgetary discretion within the limits of law.

The Governance Reset will strengthen fiscal training, procurement and grant transparency, documentation of material deviations from staff recommendations, conflict certifications, public - benefit findings where appropriate, and procedures governing investigation expenditures and other significant discretionary spending.

FINDING F5
The Stockton City Council appears not to follow the ethics principles that are set forth in AB 1234, and the Stockton City Council Code of Conduct, which erodes public trust in the Council as a governing body.

CITY RESPONSE: THE CITY AGREES IN PART WITH THE FINDING.

The City agrees that compliance with applicable ethics laws and the City's Code of Conduct is essential to maintaining public confidence.

The City further agrees that periodic statutory training alone is insufficient if elected officials do not have clear, accessible, and enforceable standards explaining applicable ethical responsibilities and the processes for addressing alleged violations. The City will implement City -specific training for Councilmembers that complies with the requirements of AB 1234 (Gov. Code § 53235) and applicable state law. The training will include the required ethics and transparency topics and will be tailored to the roles, responsibilities, and circumstances of Stockton City Councilmembers. Where appropriate, the training will also addres s City -specific policies, procedures, and legal requirements, including conflicts of interest, Brown Act and open meeting requirements, public records, appropriate use of City resources, and other issues that directly affect the Council’s governance responsibilities.

The City will establish a regular training schedule and maintain documentation of completion to ensure Councilmembers satisfy applicable statutory training requirements.

The City does not agree that the Grand Jury's generalized statement should be construed as a legal finding that every member of the City Council has violated AB 1234, the Political Reform Act, conflict- of-interest laws, or the City's Code of Conduct. Ethics violations must be evaluated according to the particular conduct, applicable legal standard, evidence, jurisdiction, and due-process requirements.

The City will expand its ethics framework, improve complaint routing, enhance training concerning conflicts of interest and public resources, establish clearer enforcement and referral procedures, and continue development of an independent Ethics and Accountability Commission or comparable body.

FINDING F6
The use of social media platforms (SMPs) and public forums such as press conferences to further personal agendas and air grievances is inappropriate.

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Draft for Internal Review | September 2026 | Page 7 CITY RESPONSE: THE CITY AGREES IN PART WITH THE FINDING.

The City agrees that official communications, City resources, public forums conducted in an official capacity, and official social- media accounts must not be misused to retaliate against others, disclose confidential information, harass employees, violate the Brown Act, misuse public resources, or misrepresent personal political positions as official City action.

The City cannot agree, however, with a standard based solely upon whether speech is characterized as advancing a “personal agenda” or “airing grievances.” Elected officials retain constitutional and statutory rights to criticize government policy, explain disagreements, communicate with constituents, hold press conferences, and express individual political viewpoints.

The City's policy response will therefore regulate objectively identifiable conduct and official-capacity activity rather than political viewpoint. The City will establish written social- media and public - communications standards addressing official versus personal speech, City branding, public resources, record retention, Brown Act compliance, confidentiality, account administration, and viewpoint- neutral moderation.

FINDING F7
The Stockton City Council has shown disrespect to City staff and communicated with staff in a manner contrary to Section 408 of the City Charter, contributing to a loss of skilled and professional employees and resulting in a substantial financial loss to the City.

CITY RESPONSE: THE CITY AGREES IN PART WITH THE FINDING.

The City agrees that City employees must be treated professionally and must be able to perform their duties without improper political pressure, retaliation, intimidation, or administrative direction from individual elected officials.

The City further recognizes that employee turnover can impose significant costs through recruitment, training, severance obligations where applicable, loss of institutional knowledge, disrupted projects, and reduced organizational continuity.

The City does not accept without individualized factual analysis the conclusion that Council conduct or Charter Section 408 violations caused particular employee departures or particular financial losses.

Personnel departures can involve multiple factors, many of which may concern confidential employment matters that the City cannot lawfully disclose in a public Grand Jury response.

The City's corrective response will focus on the institutional issue. The City will strengthen staff-contact protocols, anti-retaliation protections, Charter Section 408 training, complaint pathways, leadership accountability, retention analysis, and succession planning.

//
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Draft for Internal Review | September 2026 | Page 8 FINDING F8
In their efforts to influence decisions made by the Stockton City Council, outside of Council chambers, some Council members have pursued personal agendas and advancement of business interests, thus compromising transparency.

CITY RESPONSE: THE CITY AGREES IN PART WITH THE FINDING.

The City agrees that elected officials must comply with conflict -of-interest laws, campaign -finance requirements, restrictions on the use of public resources, disclosure obligations, procurement requirements, and other laws governing private interests and public decision-making.

The City also agrees that transparency is especially important when outside relationships, business interests, campaign activity, applicants, vendors, contractors, consultants, political organizations, or other private parties intersect with matters pending before the City.

The City does not agree that lawful political advocacy, communication outside Council chambers, association with private persons or organizations, or pursuit of policy objectives establishes improper conduct without additional facts. Nor does this response concede that any identified Councilmember possessed a legally disqualifying business interest unless established under applicable law.

The City's corrective approach will focus on disclosure, conflicts, contacts concerning qualifying City matters, campaign-finance compliance, lobbying and outside-influence transparency, public-resource restrictions, and appropriate recusals where legally required.

FINDING F9
The City of Stockton does not have an ordinance regarding limiting campaign contributions beyond state law, leading to a lack of transparency.

CITY RESPONSE: THE CITY AGREES IN PART WITH THE FINDING.

The City agrees that Stockton currently relies principally upon applicable state campaign-contribution law rather than a comprehensive local contribution -limit ordinance and agrees that the City should evaluate whether a local framework would improve transparency and public confidence.

The City disagrees to the extent the finding suggests that the absence of a local contribution limit necessarily creates an absence of campaign -finance transparency. State law already imposes substantial disclosure, reporting, contribution, and enforcement requirements.

Nevertheless, the City recognizes that a local ordinance may provide clearer Stockton -specific rules.

The City will develop a local campaign -finance ordinance for Council consideration addressing contribution limits, aggregation, monetary and in -kind contr ibutions, candidate -controlled committees, transfers, reporting, enforcement, indexing, and coordination with state law.

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Draft for Internal Review | September 2026 | Page 9 II. RESPONSES TO GRAND JURY RECOMMENDATIONS

The following reproduces Recommendations R1 through R8 verbatim from pages 19-20 of the report.

Each City response uses the statutory category required by Penal Code section 933.05(b) and supplies the summary or timeframe the Grand Jury expressly requests.

RECOMMENDATION R1
Within 90 days of the issuance of this report, the Stockton City Council should provide the Civil Grand Jury with written documentation detailing the actions taken to comply with the Stockton Council Policy Manual provisions governing member conduct, inclu ding standards applicable to meetings, public statements, online activity, professionalism, decorum, and mutual respect (F1, F3 and F5).

CITY RESPONSE: PENAL CODE § 933.05(b)(1): THE RECOMMENDATION HAS BEEN IMPLEMENTED.

The City is providing the requested written documentation through this formal response and the accompanying Governance Reset exhibits. The documentation identifies actions taken and underway to strengthen compliance with existing Council Policy Manual provisions governing member conduct, including meetings, public statements, online activity, professionalism, decorum, and mutual respect.

The documented actions include preparation of a comprehensive implementation matrix; strengthened Council governance and conduct standards; updated social -media and official- communications standards; review and proposed amendment of relevant Council Policy Manual provisions; Brown Act and closed -session procedures; Council/staff communication protocols; ethics and complaint -routing reforms; investigation -accountability procedures; procurement, grant, and fiscal-transparency reforms; and a public implementation and reporting framework.

Documentation supporting R1 is contained principally in Exhibits A, B, C, D, E, G, and K. Providing documentation does not mean that every underlying reform is complete. Each corrective action will remain tracked until completed or formally closed.

RECOMMENDATION R2
By December 31, 2026, all Stockton City Council members should complete formal training conducted by the City Manager on Charter Section 408, all Charter provisions governing Council conduct, and the requirements of the Stockton Council Policy Manual. Written verification of completion should be submitted to the Civil Grand Jury (F1, F3 and F5, F7).

CITY RESPONSE: PENAL CODE § 933.05(b)(2): THE RECOMMENDATION HAS NOT YET BEEN FULLY IMPLEMENTED BUT WILL BE IMPLEMENTED.

The City accepts this recommendation and will complete the required training no later than December 31, 2026.

The City Manager, with assistance from the City Attorney and other qualified personnel where appropriate, will conduct or oversee formal training for all members of the Stockton City Council. The curriculum will include Charter Section 408; the respective legislative and administrative roles of the

ATTACHMENT B
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Draft for Internal Review | September 2026 | Page 10 City Council and City Manager; Charter provisions governing Council authority and conduct; Charter provisions governing investigations and interaction with City officers and employees; the Council Policy Manual; conduct and decorum requirements; permissible information requests and constituent- service activity; prohibited administrative direction; complaint and escalation procedures; and corrective processes associated with noncompliance.

Implementation deadline: December 31, 2026. Evidence of implementation will include the training agenda, materials, attendance record, and written verification of completion by each Councilmember.

Written verification will be transmitted to the Civil Grand Jury as expressly requested.

RECOMMENDATION R3
By December 31, 2026, the Stockton City Council should receive training from the City Manager on established City policies and procedures governing fiscal matters, including the approval, funding, and oversight of City projects (F4, F7).

CITY RESPONSE: PENAL CODE § 933.05(b)(2): THE RECOMMENDATION HAS NOT YET BEEN FULLY IMPLEMENTED BUT WILL BE IMPLEMENTED.

The City accepts this recommendation. The City Manager, working with the Chief Financial Officer, City Attorney, Procurement, Economic Development, and other appropriate departments, will provide formal training concerning established fiscal procedures.

The training will include budget and appropriation authority; approval and funding of City projects; fiscal impacts of Council actions; procurement procedures; competitive selection processes; grant and NOFA procedures; staff scoring and evaluation process es; Council discretion and documentation of departures from staff recommendations; conflicts of interest; use of public resources; contract approval; investigation expenditures; grant conditions and post -award oversight; and financial reporting and accountability.

Implementation deadline: December 31, 2026. Evidence of implementation will include training materials, agenda, attendance records, and written certification of completion.

RECOMMENDATION R4
By December 31, 2026, the Stockton City Council should demonstrate documented and measurable efforts toward establishing an Ethics Commission or similar body, including clear steps taken, draft frameworks, and publicly visible actions showing active development. The goal should be to formally establish and operationalize the Commission by January 2028 (F1, F5, F6, F7 and F8).

CITY RESPONSE: PENAL CODE § 933.05(b)(2): THE RECOMMENDATION HAS NOT YET BEEN FULLY IMPLEMENTED BUT WILL BE IMPLEMENTED.

The City accepts this recommendation and will demonstrate documented and measurable progress toward creation of an independent Ethics Commission or legally comparable accountability body by December 31, 2026.

ATTACHMENT B
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Draft for Internal Review | September 2026 | Page 11 The development process will include review of comparable California ethics bodies; proposed jurisdiction; membership qualifications and appointment process; investigation and complaint-review authority; due -process and conflict safeguards; enforcement mechanisms; staffing, legal counsel, budget, and administrative support; jurisdiction over ethics, conflicts, campaign -finance provisions, lobbying, open-government requirements, and related local laws; identification of powers available by ordinance and any powers requiring Charter amendment; preparation of a draft framework; and public presentation of implementation progress.

Milestone deadline: by December 31, 2026, the City will have a publicly available framework, legal analysis, proposed structure, implementation pathway, and documented Council/public consideration. Operational goal: formal establishment and operation by January 2028, subject to legally required ordinance, Charter, budget, staffing, labor, and election processes. Exhibit G provides the initial implementation framework.

RECOMMENDATION R5
By December 31, 2026, the City Manager and City Attorney should rewrite and expand the City of Stockton Council Policy Manual Chapter 2.03: Code of Ethics for Elected Officials and Commissioners, to include more specific information and explanation of ethical behavior and action requirements (F1, F5, F6, F7 and F8).

CITY RESPONSE: PENAL CODE § 933.05(b)(2): THE RECOMMENDATION HAS NOT YET BEEN FULLY IMPLEMENTED BUT WILL BE IMPLEMENTED.

The City accepts this recommendation. The City Manager and City Attorney will prepare amendments to Council Policy Manual Chapter 2.03 expanding the City's Code of Ethics for Elected Officials and Commissioners.

The revised chapter will address, as appropriate, fundamental ethical obligations of public office; AB 1234 requirements; Political Reform Act requirements; Government Code section 1090; common- law conflict principles; the Levine Act and other applicable contribution/conflict provisions; use of public resources; gifts, disclosures, and financial interests; recusal and disqualification; confidential information; Brown Act responsibilities; Public Records Act responsibilities; misuse of official position; improper administrative interference; retaliation; treatment of City employees; complaint intake and referral; due process; applicable enforcement authority; and referral to outside agencies where jurisdiction does not reside with the City.

Implementation deadline: December 31, 2026. Evidence of implementation will include draft and adopted amendments to Chapter 2.03, the associated staff report, legal review, and the publicly available final policy.

RECOMMENDATION R6
Effective upon publication of this report, members of the Stockton City Council, when speaking or posting in their official capacity or on matters related to City business, should refrain from using social media platforms or public forums to make disparaging or demeaning statements about fellow Council members or City staff (F1 and F6).

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Draft for Internal Review | September 2026 | Page 12 CITY RESPONSE: PENAL CODE § 933.05(b)(2): THE RECOMMENDATION HAS NOT YET BEEN FULLY

IMPLEMENTED BUT WILL BE IMPLEMENTED IMMEDIATELY THROUGH FORMALIZED COUNCIL STANDARDS.

The City accepts the professional -governance objective of this recommendation. Upon adoption of this response, Councilmembers will be directed to adhere to an interim professional-conduct standard pending completion of the permanent written policy required by Recommendation R7.

When communicating in an official capacity or concerning City business, Councilmembers shall refrain from personal attacks and disparaging or demeaning statements directed toward fellow Councilmembers or City employees. Implementation will be consistent with constitutional protections and applicable law and is not intended to prohibit good -faith criticism of policy, disagreement with another elected official, criticism of official decisions, questioning of staff recommendations, disclosure of nonconfidential information, reporting suspected wrongdoing through lawful channels, or other legally protected speech.

Implementation timeframe: immediate upon Council adoption of this response. Permanent implementation: incorporated into the written guidelines required by R7 no later than December 31, 2026. Evidence of implementation will include adopted Council direction, revised conduct standards, and the final social-media/public-forum policy.

RECOMMENDATION R7
By December 31, 2026, the Stockton City Council should establish written guidelines regarding Council members' use of social media platforms and public forums in order to discuss City business and to maintain proper decorum (F1 and F6).

CITY RESPONSE: PENAL CODE § 933.05(b)(2): THE RECOMMENDATION HAS NOT YET BEEN FULLY IMPLEMENTED BUT WILL BE IMPLEMENTED.

The City accepts this recommendation and will adopt written guidelines governing Councilmembers' use of social-media platforms and public forums when discussing City business.

The guidelines will address official versus personal communications; when an individual Councilmember is speaking for themselves rather than for the City Council; authorized City accounts; use of City seals, logos, titles, and branding; use of public resources; Brown Act considerations; public- record retention; closed-session and confidential information; interaction among Councilmembers on social-media platforms; official -account administration; moderation standards; personal attacks and professional decorum; communications concerning City employees; correction of inaccurate official information; cybersecurity and account credentials; and procedures for preserving and referring threatening, harassing, or potentially unlawful communications.

Implementation deadline: December 31, 2026. Evidence of implementation will include the adopted policy, official-account inventory, written guidance, training materials, and implementation records.

Exhibit E provides the initial policy framework.

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Draft for Internal Review | September 2026 | Page 13 RECOMMENDATION R8
By December 31, 2027, the Stockton City Council should establish their own ordinance limiting campaign contributions by individuals and organizations in city elections as exampled by San Francisco, Oakland and Los Angeles. This ordinance should include all monetary, in kind and campaign committee contributions. This will allow public transparency in campaign finances. (F9)

CITY RESPONSE: PENAL CODE § 933.05(b)(2): THE RECOMMENDATION HAS NOT YET BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED.

The City accepts the recommendation to establish a local campaign -contribution ordinance. The City Attorney, City Clerk/elections personnel, and other appropriate staff will prepare an ordinance for Council consideration establishing local contribution limits consistent with federal and California law.

At a minimum, the ordinance -development process will address contributions by individuals and organizations; monetary and in -kind contributions; candidate -controlled committees; campaign - committee contributions and transfers; aggregation rules; loans; returned contributions; contribution limits applicable to each election; reporting and disclosure; enforcement; administrative responsibilities; applicable penalties; indexing if appropriate; interaction with state campaign-finance law; and effective-date and transition provisions.

The City will review relevant provisions from San Francisco, Oakland, Los Angeles, and other appropriate California jurisdictions while developing a Stockton -specific ordinance. Implementation deadline: December 31, 2027. Interim milestones will include legal and comparative review, a draft framework, public review, Council consideration, administrative and enforcement procedures, and candidate/public education sufficiently in advance of the first election governed by the ordinance.

Evidence of implementati on will include the adopted ordinance, implementation guidance, public contribution-limit information, election materials, and identified enforcement procedures.

STATUTORY COMPLIANCE AND FOLLOW-THROUGH

For each recommendation that the City states will be implemented in the future, the City has identified a specific implementation timeframe as required by California Penal Code section 933.05(b)(2). The City will maintain the Grand Jury/Governance Reset Implementation Matrix as the official tracking mechanism for Recommendations R1 through R8.

Where implementation requires Council adoption, legal review, labor review, budget authorization, ordinance adoption, voter approval, or another legally required process, those requirements will be identified in the matrix. Such requirements do not elimina te the City's commitment to implementation. If circumstances later make a recommendation legally unavailable or unreasonable to implement in the form contemplated by the Grand Jury, the matter will return to the City Council for a public status determination explaining the impediment and, where possible, identifying a lawful alternative addressing the underlying governance concern.

The City will preserve written evidence of completion and will provide additional verification to the Civil Grand Jury where specifically requested, including written verification of Councilmember training required by Recommendation R2.

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Draft for Internal Review | September 2026 | Page 14

III. CORRECTIVE ACTION AND GOVERNANCE RESET

The City believes the most effective response to the Civil Grand Jury is not a single filing but an institutional process that continues after this response is submitted. Accordingly, the City will use its Governance Reset framework to coordinate the corrective work described above.

The framework includes Council conduct and meeting standards; governance protocols defining the respective responsibilities of elected officials and Charter officers; Brown Act and closed- session compliance; staff -protection and Charter -compliance procedur es; social -media and public - communications standards; ethics and complaint -routing reforms; investigation authorization and expenditure controls; procurement and grant transparency; workplace-safety procedures; campaign- finance review; and public implementation reporting.

Corrective measures will be assigned to the appropriate legal vehicle. Some may be accomplished administratively. Others may require amendment of Council policy, adoption of a resolution or ordinance, labor review, budget authorization, contract amendment, or voter approval of a Charter amendment.

No corrective measure will be treated as effective merely because it has been announced. Completion will require an identifiable policy, action, training record, adopted legislative instrument, administrative procedure, or other evidence that can be review ed by the public to the extent permitted by law.

IV. RESPONSE TO PRIOR GRAND JURY FOLLOW-UP CONCERNS

The City acknowledges the Grand Jury's concern that prior City responses did not consistently provide the finding-by-finding and recommendation -by-recommendation treatment required by Penal Code section 933.05. This response is structured specifically to correct that deficiency.

In addition to the responses contained in this document, the City will incorporate unresolved recommendations from prior Civil Grand Jury reports into the public implementation matrix and identify whether each matter has been completed, remains in progress , requires additional analysis, has been superseded, or will not be implemented for a stated legal or policy reason.

This commitment does not constitute agreement with every prior finding or recommendation.

Recommendations touching political speech, association, media relationships, or other constitutionally protected activity must be interpreted and implemented consistently with the United States Constitution, California Constitution, and applicable state and federal law.

Where conduct is independently unlawful or prohibited by valid City policy, the City will address that conduct. Where activity consists of lawful political speech, criticism, association, advocacy, or participation in government, the City will respect the rights of the speaker and respond through lawful governmental processes.

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Draft for Internal Review | September 2026 | Page 15 V. ACCOUNTABILITY AND PUBLIC REPORTING

The City will maintain a public implementation matrix following submission of this response.

Progress reports will identify completed actions, actions in progress, items awaiting Council action, matters undergoing legal or labor review, delayed actions and the reason for delay, and any recommendation that ultimately requires voter approval or action by another governmental agency.

The City intends to provide periodic public updates until the corrective actions arising from this report have been completed or formally closed. The purpose is straightforward: the City's response to the Civil Grand Jury should be demonstrated by what changes are in practice, not merely by what is written in this response.

VI. CONCLUSION

The Civil Grand Jury's report describes serious concerns about the operation of Stockton City government. The City does not accept every characterization in the report, and this response should not be interpreted as an admission of unlawful conduct by any elected official, employee, Charter officer, or other individual except where expressly stated.

The City nevertheless accepts the larger responsibility identified by the Grand Jury. Stockton residents are entitled to a City government in which elected officials can disagree without disabling the institution; professional employees can perform their duties without improper interference; allegations are reviewed through fair and consistent processes; public funds are spent transparently; investigations have defined purposes and controls; ethics expectations are understandable and enforceable; and government remains accountable to the public it serves.

The City's objective is therefore not simply to respond to the report. It is to use the report to establish clearer rules, stronger institutions, measurable accountability, and a governance structure capable of enduring beyond the individuals presently holding office.

Respectfully submitted,

CITY OF STOCKTON

Christina Fugazi, Mayor

Attest: Approved as to form:

City Clerk / Acting City Clerk Donald Larkin, Interim City Attorney

Council adoption date and resolution number to be entered by the City Clerk upon final Council action.

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Draft for Internal Review | September 2026 | Page 16

EXHIBIT A

GRAND JURY / GOVERNANCE RESET IMPLEMENTATION MATRIX

Purpose
This matrix serves as the City’s central public accountability document for implementation of the Civil Grand Jury response and related Governance Reset reforms. The City Clerk, in coordination with the City Attorney and City Manager, will maintain the matrix and update it after material action occurs.

The public version will exclude privileged, confidential, personnel- related, security -sensitive, or otherwise protected information.

Required Fields

1. Grand Jury finding or recommendation number.

2. Subject matter.

3. City’s statutory response.

4. Corrective action.

5. Responsible office.

6. Supporting legal or policy authority.

7. Required implementation vehicle.

8. Target date.

9. Current status.

10. Public evidence of completion.

11. Legal, fiscal, labor, operational, or Charter dependency.

12. Revised completion date, if applicable.

13. Closure determination and date.

Initial Implementation Matrix
ID Issue Corrective Action Lead Target Public Proof
GJ-01 Public conflict and
confidence
Adopt governance
and conduct
standards;
training; public
dashboard
Mayor / City
Attorney / City
Clerk
0-60 days Resolution,
training record,
dashboard
GJ-02 Meeting decorum Update objective
meeting rules and
presiding-officer
procedures
City Attorney /
City Clerk
0-60 days Adopted rules,
chair protocol
GJ-03 Social media/public
forums
Adopt official
communications
and social- media
standards
City Attorney /
PIO / City Clerk
By Dec. 31,
2026
Policy, account
inventory, training

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Draft for Internal Review | September 2026 | Page 17 ID Issue Corrective Action Lead Target Public Proof
GJ-04 Brown Act/closed
session
Refresher
training,
confidentiality
acknowledgment,
social-media
guidance and
referral
procedures
City Attorney /
City Clerk
0-90 days Training
certificates,
acknowledgments,
quick guide
GJ-05 Staff interference Establish Council
request-routing
and staff- contact
protocols
City Manager /
City Attorney /
HR
0-90 days Written protocol,
referral log,
training
GJ-06 Workplace safety Align threat,
harassment and
abusive-
communication
procedures with
existing safety
requirements
HR / Risk
Management /
City Attorney
0-120 days Intake process,
referral protocol,
training
GJ-07 Ethics and
complaints
Strengthen ethics
rules and create
neutral complaint
triage
City Attorney /
City Manager /
HR
By Dec. 31,
2026
Ethics package,
routing chart
GJ-08 Investigations Implement
written
authorization,
scope, budget,
conflict and
closeout controls
City Attorney /
City Manager /
CFO
0-120 days Authorization
form, policy, cost
report
GJ-09 Procurement/grants Require enhanced
documentation
for material
deviations and
conflicts
City Manager /
CFO /
Procurement
0-120 days Forms, deviation
memorandum
template
GJ-10 Independent ethics
oversight
Develop
framework and
legal
implementation
pathway
City Attorney By Dec. 31,
2026
Public framework
and staff report
GJ-11 Campaign finance Prepare local
contribution-limit
ordinance
City Attorney /
City Clerk /
Elections
By Dec. 31,
2027
Draft/adopted
ordinance

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Draft for Internal Review | September 2026 | Page 18 ID Issue Corrective Action Lead Target Public Proof
GJ-12 Staff
morale/retention
Review turnover,
vacancy,
succession and
institutional-
knowledge risks
City Manager /
HR
0-180 days Aggregate report
and retention
measures
GJ-13 Prior Grand Jury
items
Inventory and
close out
unresolved prior
recommendations
City Clerk / City
Attorney
0-120 days Prior-report
crosswalk
GJ-14 Final reporting Publish
consolidated
Governance Reset
implementation
report
City Manager /
City Clerk
Day 200 Public report

STATUS DEFINITIONS
Not Started: Assigned but substantive work has not begun.

In Review: Legal, administrative, fiscal, labor, or operational analysis is underway.

Drafted: A policy, ordinance, resolution, procedure, or other corrective instrument has been prepared but has not yet received final approval.

In Implementation: Final authority has been obtained and operational implementation is underway.

Completed: Required corrective action has been implemented, and public proof of completion is available.

Closed - Alternative Action: The original recommendation was addressed through a legally permissible alternative achieving substantially the same objective.

Closed - Not Implemented: The City Council has formally determined that implementation is not warranted, reasonable, legally available, or within City authority and has stated the basis for that determination.

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EXHIBIT B

COUNCIL GOVERNANCE AND CONDUCT POLICY FRAMEWORK

Purpose
The Council Governance and Conduct framework establishes uniform rules governing professional conduct by the Mayor and Councilmembers while preserving vigorous policy disagreement, public criticism, minority viewpoints, constituent advocacy, and other protected activity.

Core Standards
• Conduct City business professionally and with due regard for the institutional interests of the City.
• Debate the merits of policy rather than use City processes primarily to pursue personal disputes.
• Respect authority assigned by Charter to the City Manager, City Attorney, City Clerk, City Auditor, and other Charter officers.
• Avoid directing subordinate City employees unless expressly authorized by Charter, ordinance, policy, or the responsible Charter officer.
• Route allegations of wrongdoing through the appropriate complaint, ethics, legal, Human Resources, workplace-safety, law-enforcement, or administrative process. • Protect confidential and privileged information as required by law. • Comply with the Brown Act and applicable conflict-of-interest requirements. • Refrain from retaliation against employees, complainants, witnesses, residents, contractors, or other persons for legally protected activity.
• Avoid use of City staff, resources, logos, facilities, accounts, or equipment for impermissible political purposes.
• Distinguish personal or campaign communications from official City communications where confusion is reasonably likely.
• Meeting Decorum
• The presiding officer should apply meeting rules neutrally and consistently. Corrective steps may include a request for voluntary compliance, statement of the applicable rule, warning where legally appropriate, recess, consultation with the City Attorney, or other action authorized by law or Council rules. No meeting rule should be applied to suppress criticism because of viewpoint.
• Allegations Against Officials or Employees
• A serious allegation should be routed to the office with lawful jurisdiction rather than adjudicated through an unscheduled public accusation. The referral process should identify the nature of the allegation, reviewing authority, confidentiality status, r ecusal or conflict issues, need for outside review, and appropriate public reporting after disposition. • Violations and Corrective Measures
• Potential responses depend upon legal authority and may include education, corrective counseling, referral, public clarification, censure procedures, removal from an appointed committee where legally permissible, or referral to an outside enforcement agenc y. This framework does not create removal, suspension, monetary -penalty, or other enforcement powers that the City does not possess under its Charter or applicable law.

ATTACHMENT B
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The City Attorney and City Clerk should review the policy annually and recommend amendments when changes in law, recurring disputes, or implementation experience show that clarification is necessary.

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EXHIBIT C

CHARTER AND COUNCIL-MANAGER GOVERNANCE PROTOCOL

Governing Principle
The City Council establishes policy. Charter officers and professional staff administer City government within the authority assigned to them by the Charter, Municipal Code, Council policy, contracts, personnel rules, and applicable law. Legitimate oversig ht must be preserved without converting individually elected officials into administrative supervisors.

Permissible Council Activity
• Request information concerning City operations.
• Ask questions of the City Manager and Charter officers. • Request status information on constituent matters.
• Submit agenda referrals and propose policy changes.
• Question expenditures and staff recommendations.
• Communicate constituent concerns.
• Seek legal advice through authorized channels.
• Advocate publicly for or against policy decisions.
• Administrative Direction
• Except where specifically authorized, individual Councilmembers shall not hire, discipline, threaten, evaluate, or direct subordinate employees; order staff to initiate or cease operational activity; direct procurement or grant -selection outcomes; require alteration of professional findings outside the lawful decision-making process; interfere with personnel investigations; or use administrative access to obtain preferential treatment for private or political interests. • Council Request Routing
• Routine informational requests should be transmitted through the City Manager, designated executive staff, or another Charter officer with jurisdiction. The City Manager may establish reasonable procedures for response deadlines, workload management, department assignment, duplication, emergency requests, and requests involving confidential or privileged information. A centralized Council Request Log may record the date, requester, general subject, assigned office, completion status, and workload impact wit hout publicly disclosing protected information.
• Constituent Services
• Councilmembers remain free to assist constituents. A Councilmember may bring a constituent problem to the attention of the appropriate City official but shall not promise a particular administrative outcome or personally direct subordinate staff to provide preferential treatment.
• Disputed Contacts and Escalation
• When an employee believes an elected official has crossed the line from inquiry into administrative direction, the employee must be able to refer the matter, without retaliation, to a supervisor, department director, City Manager, Human Resources, City Attorney, or other designated channel. Repeated or significant concerns must be documented and reviewed.

Potential responses may include clarification of authority, counseling or training, written notice, referral to the City Attorney, referral to an ethics process, or Council consideration under applicable conduct or censure procedures.
• Protection Against Retaliation

ATTACHMENT B
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Draft for Internal Review | September 2026 | Page 22 • No employee or official shall be subjected to retaliation for making a good-faith report through an authorized process. Nothing in this protocol limits rights under applicable whistleblower, labor, discrimination, employment, or other law.

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EXHIBIT D

BROWN ACT AND CLOSED-SESSION COMPLIANCE PLAN

Training
Periodic Brown Act training should address meeting and agenda requirements; serial meetings; communications among Councilmembers; electronic communications; social- media interaction; public-comment rights; permissible closed -session subjects; reporting out of closed session; confidentiality obligations; and remedies and consequences of noncompliance.

Closed-Session Acknowledgment
Councilmembers and other authorized attendees shall receive a written explanation of closed-session confidentiality obligations and acknowledge receipt. The acknowledgment should clarify that confidentiality rules protect the City’s lawful decision-making process and do not prohibit disclosures expressly authorized by law.

Electronic and Social-Media Guidance
The City Attorney shall prepare a concise guide addressing conduct that can unintentionally create a serial meeting, including replies, comments, group messaging, intermediary communications, and coordinated online interaction.

Leak or Unauthorized Disclosure Protocol
When a suspected unauthorized disclosure occurs, preserve relevant evidence; determine whether the information was legally confidential; determine which office has jurisdiction; avoid public accusations before sufficient facts are established; preserve pri vilege and due process; refer potentially criminal conduct when warranted; and provide lawful public closeout information when appropriate.

Meeting Support
For high -risk or complex agenda items, the City Attorney and City Clerk will provide pre -meeting procedural guidance regarding motions, recusals, public comment, closed -session boundaries, or other identified compliance concerns.

Proof of Implementation
Evidence may include training records, signed acknowledgments, written legal guidance, revised Council policies, compliance checklists, and aggregate reports regarding corrective measures.

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EXHIBIT E

SOCIAL MEDIA AND PUBLIC COMMUNICATIONS POLICY

Scope
The policy shall distinguish among official City accounts; accounts maintained by elected offices using City resources; personal accounts used to conduct City business; campaign or purely personal accounts; and City websites, newsletters, and electronic communications.

Official Accounts
Official City accounts must be used for legitimate public purposes; maintain appropriate records; follow approved branding and security procedures; identify authorized publishers; preserve records consistent with applicable requirements; and avoid campaign advocacy or prohibited poli tical use of public resources.

Personal Accounts Used for City Business
Officials shall avoid conducting City business through purely personal channels when an official channel is reasonably available. Where City business occurs through a personal account or device, applicable public-record and retention obligations should be followed.

Distinction Between Official and Personal Speech
The City shall use clear disclaimers where necessary to reduce confusion over whether statements represent official City policy, an individual elected official, campaign activity, or personal political opinion.

Brown Act Compliance
Councilmembers must not use social media to engage in prohibited collective deliberation or serial discussion of City business.

Moderation
Any moderation of an official interactive account shall be governed by written, viewpoint-neutral rules reviewed by the City Attorney. The policy should distinguish protected criticism from objectively defined categories that may lawfully be moderated.

Threats, Harassment and Doxxing
Potential threats or unlawful harassment must be preserved and routed to the appropriate safety, Human Resources, law-enforcement, legal, or risk-management process. Offensive, hostile, or sharply critical speech does not alone establish unlawful conduct.

Records Preservation
The City must maintain appropriate preservation mechanisms for official- account content and City - business communications.

Account Inventory and Security
The City must maintain an inventory of official accounts identifying platform, responsible office, account owner, authorized publishers, recovery information, credential custody, and archival method.

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Training
Authorized publishers and elected officials shall receive periodic training covering records, Brown Act considerations, cybersecurity, City branding, political- use restrictions, moderation, and protected speech.

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EXHIBIT F

INVESTIGATION ACCOUNTABILITY PROTOCOL

Purpose
The City shall preserve its ability to investigate legitimate allegations while reducing the risk of open - ended, duplicative, retaliatory, politically driven, or fiscally uncontrolled investigations.

Classification
Before initiation, the reviewing authority shall determine whether the matter is primarily personnel, workplace/HR, ethics, Brown Act, legal/claims, fraud or misuse of funds, procurement, workplace safety, law enforcement, administrative, Council- authorized, or otherwise required by statute, Charter, contract, insurance, or regulation.

Written Authorization

1. Authorizing authority.

2. Legal or policy basis.

3. Public purpose.

4. Factual basis sufficient to justify review.

5. Scope.

6. Investigator or investigating entity.

7. Estimated budget.

8. Funding source.

9. Expected timeline.

10. Reporting structure.

11. Confidentiality requirements.

12. Conflict-of-interest review.

13. Conditions requiring amendment or additional authorization.

Scope Expansion and Budget Controls
Material scope expansion shall require written justification and appropriate authorization, including newly discovered facts, additional issues, expected cost, additional time, and conflict implications. The authorization shall establish a budget or reasonable estimated range, and material deviations should be reported to the official or body with appropriate fiscal authority.

Conflict Review
Potential investigators must disclose circumstances that could reasonably raise questions concerning independence. Conflicts involving the requesting party, subject, witness, investigator, City Attorney, City Manager, Councilmember, or other decisionmaker should be addressed before assignment where practicable.

Duplicate Investigations
Before authorizing a substantially duplicative investigation, the City shall document why an existing or prior review is insufficient and identify materially new evidence or a distinct legal purpose justifying additional expenditure.

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Nothing in this protocol requires disclosure of privileged legal advice, personnel information, confidential witness information, protected investigative material, law -enforcement information, or other exempt records. Where legally permissible, closeout re cords shall identify the general issue, authority, status, aggregate cost, disposition category, and policy recommendations, with lawful aggregate public reporting.

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EXHIBIT G

ETHICS AND ACCOUNTABILITY ROADMAP

Phase One - Strengthen Existing Rules
The City Attorney shall identify existing ethics, conduct, conflict, disclosure, censure, complaint, and enforcement provisions and recommend amendments where rules are unclear, duplicative, or lack an identifiable enforcement path.

Complaint Classification

• Ethics.
• Conflict of interest.
• Brown Act.
• Staff interference.
• Misuse of public resources.
• Workplace harassment or discrimination.
• Retaliation.
• Workplace safety.
• Procurement.
• Campaign finance.
• Lobbying or outside influence.
• Criminal conduct.
• Matters outside City jurisdiction.
• Neutral Intake and Triage.

The City shall provide at least one reliable complaint intake method that does not require a complainant to submit an allegation directly to the person accused. Initial review should determine jurisdiction, whether the allegation states a potential violation, whether immediate safety action is required, appropriate routing, conflicts, and confidentiality measures.

Anti-Retaliation
The ethics system must expressly preserve statutory and contractual anti -retaliation protections and provide a route for reporting suspected retaliation.

Independent Ethics & Accountability Commission Development Consistent with Recommendation R4, the City must develop a publicly available framework by December 31, 2026, and pursue formal establishment and operation by January 2028. The framework should address membership qualifications, appointment process, staggered terms, removal protections, budget independence, legal counsel, complaint jurisdiction, investigatory aut hority, hearing procedures, administrative enforcement, fines or remedies if legally authorized, advisory opinions, training, lobbying oversight, campaign -finance oversight, open -government jurisdiction, appeal rights, judicial review, and any Charter amendment requirements.

//
//
//

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An ethics body shall not acquire general administrative control over departments or authority to remove elected officials unless that authority is expressly and lawfully created. Serious matters outside local jurisdiction should be referred to the agency possessing lawful enforcement authority.

Public Reporting
The ethics framework shall provide aggregate reporting of complaints received, jurisdictional dispositions, referrals, completed investigations, advisory opinions, and other measurable information while protecting legally confidential material.

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EXHIBIT H

FISCAL, PROCUREMENT AND GRANT TRANSPARENCY PROTOCOL

General Principle
The Council retains lawful policy and budget discretion. Transparency is especially important when the Council chooses a materially different outcome from an objective staff scoring process, competitive selection, professional recommendation, or established funding methodology.

Required Administrative Record

1. For qualifying matters, the record shall identify amount and funding source; purpose; recipient or contractor; selection process; scoring or evaluation criteria where applicable; conflict certifications; staff recommendation; Council action; material deviation from the recommended outcome; fiscal effect; and public benefit supporting the final action.

2. Deviation Memorandum
When legally appropriate, a material departure from a competitive or scored staff recommendation shall be accompanied by a concise public explanation identifying the policy basis for the different outcome. This requirement does not eliminate the Council’s legislative discretion.

3. Conflict Certification
Participants in qualifying procurement or grant evaluations should disclose actual or potential conflicts in accordance with applicable law and City policy.

4. Grant Awards
For competitive City grant programs, the City shall publish, where appropriate, eligibility requirements, scoring criteria, application period, evaluation process, award recommendations, and final awards.

5. Procurement
The protocol shall establish documentation expectations when competitive procedures are waived, exceptions are invoked, or Council selects an alternative to a staff recommendation.

6. Investigation Expenditures
Investigation costs must be tracked separately or in a manner permitting appropriate aggregate reporting.

7. Public Resources
Nothing in this protocol authorizes expenditure of public resources for campaign or private political purposes.

8. Annual Review
Procurement and finance staff shall periodically identify recurring exceptions, waivers or deviations and recommend policy changes where patterns demonstrate a need for clarification.

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EXHIBIT I

CAMPAIGN FINANCE ORDINANCE WORK PLAN

Objective
The City will prepare a locally enforceable campaign -contribution framework designed to promote transparency, reduce ambiguity, and increase confidence in municipal elections without infringing protected political participation.

• Legal Review
• State-law contribution limits applicable to local candidates. • Charter authority.
• Preemption.
• First Amendment requirements.
• Due-process requirements.
• Enforcement authority.
• Recordkeeping and reporting.
• Interaction with FPPC jurisdiction.

Policy Issues for Council Determination

1. Contribution limit per election.

2. Treatment of candidate, controlled committee, and other contributor categories.

3. Aggregation of affiliated contributors where authorized.

4. Loans.

5. In-kind contributions.

6. Candidate personal funds.

7. Transfers between candidate-controlled committees.

8. Contributions from other candidate committees.

9. Returned contributions.

10. Election-cycle definitions.

11. Indexing for inflation.

12. Disclosure requirements.

13. Late-contribution rules.

14. Enforcement.

15. Administrative remedies and penalties within lawful authority.

16. Statute of limitations.

17. Effective date and transition rules.

Contribution-to-Decision Safeguards
The ordinance review shall separately address existing state conflict and contribution rules applicable to certain governmental proceedings so that local rules do not create contradictory obligations.

Public Review
Before adoption, the City shall provide a public draft, legal memorandum, comparison with relevant California charter cities, fiscal/enforcement analysis, and opportunity for public comment.

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The City shall identify an enforcement model before adoption. Potential models include City Attorney enforcement, City Clerk administration, an independent hearing officer, future Ethics Commission jurisdiction, or referral to the FPPC or another state authority.

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EXHIBIT J

PRIOR GRAND JURY RECOMMENDATION CLOSEOUT MATRIX

Purpose
The City shall conduct a retrospective review of outstanding recommendations arising from prior Civil Grand Jury reports concerning Stockton governance to eliminate uncertainty about whether an item was implemented, superseded, remained pending, or was rejected for a stated reason.

Required Review

1. Grand Jury year.

2. Case/report number.

3. Finding or recommendation number.

4. Original recommendation.

5. City’s original response.

6. Action subsequently taken.

7. Current governing policy, ordinance, Charter provision, administrative procedure, or practice.

8. Current implementation status.

9. Remaining action, if any.

10. Public evidence.

11. Legal impediment or superseding law, if applicable.

12. Closure determination.

Response Categories

1. Completed.

2. Completed through alternative action.

3. Partially completed - additional action underway.

4. Requires renewed legal or administrative analysis.

5. Superseded by later law or policy.

6. Not implemented - reason stated.

Priority Subjects

1. Outside influence and elected-official conduct.

2. Threatening or abusive communications.

3. Brown Act compliance.

4. Closed-session confidentiality.

5. Reporting of investigation findings.

6. Ethics Hotline procedures.

7. Staff interference.

8. Council conduct.

9. Expenditure of public funds.

10. Transparency and accountability.

11. Constitutional and Legal Review

Any prior recommendation affecting protected speech, association, media interaction, political activity, public participation, or other constitutional rights should be reviewed by the City Attorney before implementation. The City should distinguish between unlawful conduct and protected activity.

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Unresolved prior recommendations shall be incorporated into the Governance Reset Implementation Matrix, with a public closeout report identifying completed, pending, superseded, and not- implemented items and the reasons for each status.

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EXHIBIT K

IMPLEMENTATION AND REPORTING CALENDAR

Days 0-30
• Finalize and publish the Grand Jury Response Matrix.
• Complete Governance Reset legal crosswalk.
• Prepare Council Governance and Conduct Resolution.
• Identify outstanding prior Grand Jury recommendations. • Inventory official social-media accounts.
• Issue initial Council-manager governance guidance.

Days 31-60
• Present or adopt Council conduct reforms.
• Complete Brown Act/closed-session refresher materials. • Launch Council request-routing procedures.
• Create public implementation dashboard.
• Complete initial Charter-role training.
• Prepare social-media policy draft.

Days 61-90
• Implement complaint-routing framework.
• Complete investigation-control policy.
• Establish standard investigation authorization form.
• Complete procurement/grant transparency draft.
• Establish workplace-safety and threatening-communications referral protocol. • Advance ethics-code revision and Ethics Commission framework.

Days 91-120
• Apply investigation controls to qualifying new matters. • Implement procurement/grant documentation standards.
• Publish initial aggregate compliance information where legally permissible. • Complete prior Grand Jury closeout review.
• Present Ethics Commission structural framework if ready.

Days 121-150
• Review effectiveness of Council request-routing and staff-contact procedures. • Publish implementation status report.
• Complete additional Council/leadership training.
• Identify policy changes requiring ordinance, budget, labor process, or Charter amendment.

Days 151-200
• Publish aggregate investigation expenditure/status information where legally permissible. • Complete staff morale, retention and institutional-knowledge review. • Present campaign-finance ordinance work plan.
• Present ethics/accountability implementation path.
• Issue consolidated Governance Reset Implementation Report. • Continuing Obligations
• Complete all R2, R3, R4, R5, and R7 milestones by December 31, 2026. • Continue development toward an operational Ethics Commission or comparable body by

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January 2028.

Adopt a local campaign-contribution ordinance by December 31, 2027.

Report unfinished items at least quarterly until completed or formally closed.

No missed internal target automatically terminates a reform item. Where a deadline cannot reasonably be met because of legal review, meet-and-confer obligations, election requirements, fiscal analysis, procurement, Charter amendment procedure, or another l egitimate dependency, the responsible office should identify the reason, revised date, and next required action. Statutory or Grand Jury deadlines should not be extended without legal review and an appropriate public response.

FINAL IMPLEMENTATION AND LEGAL CONFORMITY STATEMENT
These exhibits are intended to function as an implementation framework and not merely as statements of aspiration. Nothing in this response or its exhibits should be interpreted to diminish authority assigned by the Stockton City Charter; create enforcemen t authority the City does not otherwise possess; waive attorney -client privilege, attorney work product, personnel confidentiality, privacy rights, labor rights, or statutory exemptions; prohibit constitutionally protected speech, criticism, association, public participation, petition, journalism, advocacy, or political activity; interfere with lawful whistleblower activity; or prevent any official from referring reasonably suspected criminal or regulatory violations to an agency with lawful jurisdiction.

Where a provision of this response conflicts with controlling federal law, California law, the Stockton City Charter, or a binding labor agreement, the controlling authority governs and the City should modify the implementation mechanism while preserving the underlying corrective objective to the greatest lawful extent.

The City Attorney is requested to make any conforming legal revisions necessary before final Council adoption and submission to the Presiding Judge.

SOURCE NOTE
Verbatim Findings F1 -F9 and Recommendations R1 -R8 are reproduced from the 2025 -2026 San Joaquin County Civil Grand Jury report, “Stockton City Council - Governance in Turmoil,” Case No. 0125, pages 18- 20. The report states the required response categories under California Penal Code section 933.05 on pages 22-23 and identifies the City’s response as due within 90 days from receipt of the report.

ATTACHMENT B
272
City of Stockton
Legislation Text
File #: 26-0574, Version: 1
ADOPT A RESOLUTION RESCINDING AND REPLACING THE CITY OF STOCKTON’S

CONFLICT OF INTEREST CODE BY ADDING AND DELETING CERTAIN DESIGNATED

POSITIONS

RECOMMENDATION
It is recommended that City Council adopt a resolution rescinding and replacing the City of Stockton’s Conflict of Interest Code by adding and deleting certain designated positions.

Summary
This is the Biennial Review and amendment of the City’s Conflict of Interest Code as required by the Fair Political Practices Commission. In July 2026, all Departments were notified of the review and were requested to submit any changes to their department’s designated positions as reflected in the City’s Conflict-of-Interest Code. The amendments to the Conflict-of-Interest Code were made as indicated in Attachment A using strike-out and redline text. The Disclosure Categories and department amendments have been reviewed and approved by the City Attorney.

DISCUSSION
Background
The Political Reform Act (Cal. Gov. Code § 87100, et seq.) (“the Act”) requires every city to adopt a Conflict-of-Interest Code that identifies designated officials and employees in the agency who must file a financial disclosure statement. This section of the Act was established to ensure that:
“No public official at any level of state or local government shall make, participate in making, or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest” (Cal. Gov. Code § 87100).

Government Code section 87200 of the Act requires that certain public officials, including City Mayors and Councilmembers, City Managers, City Attorneys, City Treasurers, file an annual statement fully disclosing economic interests. In addition, certain employees are designated and disclosure categories set forth which require reporting by those individuals who because their position entails the making or participation in the making of decisions which may foreseeably have a material effect on any financial interest, must file statements of economic interest as indicated in Attachment A.

The Act specifically excludes designation of positions in conflict-of-interest codes that are covered under section 87200, and therefore, those positions are not included in this review. Statements completed by officials holding these positions are filed with the Fair Political Practices Commission (FPPC) through the City Clerk.

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File #: 26-0574, Version: 1
Government Code section 91013 authorizes the City Clerk, as the Filing Official for the City of Stockton, to impose a late filing penalty in the form of a fine of $10 per day for each day a statement is late up to a maximum fine of $100.

Present Situation
The Act requires agencies to amend their code "...when change is necessitated by changed circumstances, including the creation of new positions which must be designated..." (Cal. Gov. Code § 87306). The Council is required to approve by resolution its current Conflict of Interest Code with modifications recommended by staff as noted in Attachment A. Newly designated positions are written in red text. Previously designated positions recommended for deletion are lined through.

FINANCIAL SUMMARY
There is no financial impact to the City because of these amendments.

Attachment A - 2026 Conflict of Interest Code Redlined
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APPENDIX A: Page 1 of 8

CITY OF STOCKTON CONFLICT OF INTEREST CODE
APPENDIX A: DEPARTMENTS AND OFFICES

ADMINISTRATIVE SERVICES DEPARTMENT
Designated Position Disclosure Category
Accounting Manager 1
Assistant Chief Financial Officer 1
Budget Analyst I/II 1
Budget Officer 1
Chief Financial Officer *
Grants Analyst 1
Materials Supervisor 3, 7
Procurement Specialist I/II 2,4,5
Procurement Officer 2, 4, 5
Program Manager I/II 1
Program Manager III 3, 7
Reprographics Supervisor 3,7
Revenue Officer 3,7
Senior Budget Analyst (Confidential) 1
Senior Procurement Specialist 2,4,5
Supervising Procurement Specialist *
CI

TY ATTORNEY
Designated Position Disclosure Category
Assistant City Attorney 1
City Attorney *
Deputy City Attorney 1
CI

TY AUDITOR
Designated Position Disclosure Category
Consultant 8

ATTACHMENT A
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APPENDIX A: Page 2 of 8

CITY CLERK

Designated Position Disclosure Category
City Clerk 1
Assistant City Clerk 1
Senior Deputy City Clerk 3,7
Supervising Deputy City Clerk/Operations 2,4,5

CITY COUNCIL

Designated Position Disclosure Category
City Councilmember *

CITY MANAGER

Designated Position Disclosure Category
Administrative Analyst I/II 1
City Manager *
Community Relations Officer 1
Deputy City Manager 1
Director of Performance and Data Analytics 1
Diversity, Equity, Inclusion Officer 1
Environmental and Sustainability Officer 1
Management Assistant 1
Office of Violence Prevention Director 1
Office of Violence Prevention Manager 1
Program Manager I 1
Program Manager II 1
Program Manager III 1
Senior Management Assistant 1
Consultants 1

COMMUNITY DEVELOPMENT DEPARTMENT

Designated Position Disclosure Category
Administrative Analyst I/II 2,5,7
Assistant Director of Community Development 1
Assistant Planner 2,5,7
Associate Civil Engineer 2,5,7
Associate Engineer 2,5,7

ATTACHMENT A
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APPENDIX A: Page 3 of 8
COMMUNITY DEVELOPMENT DEPARTMENT (continued)
Designated Position Disclosure Category
Associate Planner 2,5,7
Combination Inspector I/II 2,5,7
Community Development Technician 2,5,7
Deputy Building Official 2,5,7
Deputy Director/Building 1
Deputy Director/Planning and Engineering Services 1
Director of Community Development 1
Engineering Technician I/II 2,5,7
Junior Engineer 2,5,7
Plan Check Engineer 2,5,7
Plan Checker I/II 2,5,7
Planning Manager 2,5,7
Principal Civil Engineer 2,4,5
Program Manager I/II 2,5,7
Program Manager III 2,5,7
Senior Building Inspector 3,7
Senior Civil Engineer 2,5,7
Senior Community Development Technician 2,5,7
Senior Engineering Technician 2,5,7
Senior Plan Checker 2,5,7
Senior Planner 2,5,7
Supervising Combination Inspector 2,5,7
Supervising Plan Check/Structural Engineer 2,5,7

COMMUNITY SERVICES DEPARTMENT

Designated Position Disclosure Category
Administrative Analyst I/II 3,7
City/County Librarian 1
Director of Community Services 1
Department Finance Officer 1
Deputy Director of Community Services-City Librarian * 1 Deputy Director of Community Services/Recreation 1
Library Manager 3,7

ATTACHMENT A
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APPENDIX A: Page 4 of 8
Program Manager II 3,7
COMMUNITY SERVICES DEPARTMENT (continued)
Designated Position Disclosure Category
Program Manager III 3,7
Project Manager 3,7
Recreation Superintendent 3,7
Recreation Manager 3,7
Senior Administrative Analyst 3,7

ECONOMIC DEVELOPMENT DEPARTMENT

Designated Position Disclosure Category
Administrative Analyst I/II 2,5,7
Department Finance Officer 2,5,7*
Deputy Redevelopment Officer 1
Director of Housing and Homelessness Initiatives 1
Economic Development Analyst 2,5,7
Economic Development Director *
Events Coordinator 2,5,7
Events Manager 2,5,7
Grants Analyst 2,5,7
Managing Director of Events and Parking 2,5,7
Parking Enforcement Supervisor 2,5,7
Program Manager I/II - Administration 2,5,7
Program Manager III – Business Incentive Manager 2,5,7
Program Manager III – Housing Manager 2,5,7
Program Manager III – Homelessness Program Manager 2,5,7 Program Manager III – Parking Authority and Venues 2,5,7 Real Property Agent I/II 2,5,7
Senior Administrative Analyst 2,5,7
Senior Economic Development Analyst 2,5,7
Senior Housing Rehabilitation Counselor 2,5,7
Consultants Consultants

FIRE DEPARTMENT

Designated Position Disclosure Category
Assistant Fire Marshall 3,7
Deputy Fire Chief I/II 3,7
Deputy Fire Marshal 3,7

ATTACHMENT A
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APPENDIX A: Page 5 of 8
Division Chief 3,7
ECD Captain 3,7
FIRE DEPARTMENT (continued)
Designated Position Disclosure Category
Emergency Manager 3,7
EMS Captain/Division of Training 3, 7
Fire Battalion Chief 3, 7
Fire Chief 1
Fire Marshall (Fire and Prevention) 3, 7
Fire Prevention Inspector I/II 3, 7
Plan Checker I/II 3, 7
Program Manager I/II/III 3, 7
Project Manager I/II/III 3, 7
Supervising Fire Prevention Inspector 3, 7
Suppression Captain/Division of Training 3, 7

HUMAN RESOURCES DEPARTMENT

Designated Position Disclosure Category
Assistant Director of Human Resources 1
Deputy Director of Human Resources 1 *
Director of Human Resources *
Program Manager III 1
Risk Manager 1
Senior Risk Analyst 1
Supervising Human Resources Analyst 1

INFORMATION TECHNOLOGY DEPARTMENT

Designated Position Disclosure Category
Deputy Information Technology Director 1
Director of Information Technology 1
Information Technology Supervisor 3, 7
Information Technology Officer 3, 7
Network Support Analyst II 3, 7
Program Manager I/II/III 3, 7
Project Manager II 3, 7

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APPENDIX A: Page 6 of 8
Senior Systems Analyst 3, 7
Consultants 8

MAYOR

Designated Position Disclosure Category
Executive Assistant to the Mayor 1
Mayor’s Senior Policy Advisor 1
Public Information Officer I/II 1
Program Manager III 1
Consultants 8

MUNICIPAL UTILITIES DEPARTMENT

Designated Position Disclosure Category
Assistant Director of Municipal Utilities 3, 7
Assistant Engineer 3, 7
Associate/Associate Civil Engineer 3, 7
Chief Plant Operator – Wastewater 3, 7
Chief Plant Operator – Water 3, 7
Chief Water Systems Operator 3, 7
Deputy MUD Director/Maintenance & Collection Systems 3, 7 Deputy MUD Director/Wastewater 3, 7
Deputy MUD Director/Water Resources 3, 7
Director of Municipal Utilities 1
Engineering Services Manager Municipal Utilities 3, 7
Environmental Control Officer 3, 7
MUD Financial Finance Officer 3,7*
Principal Civil Engineer 3, 7
Program Manager I/II/III 3, 7
Public Works Inspector 3, 7
Regulatory Compliance Officer 3,7
Senior Civil Engineer 3, 7
Senior Environmental Control Officer 3, 7
Technical Services Supervisor 3, 7

ATTACHMENT A
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APPENDIX A: Page 7 of 8

POLICE DEPARTMENT

Designated Position Disclosure Category
Animal Services Manager 5
Chief of Police 3, 7
Department Finance Officer 2, 4, 5
Deputy Chief of Police I/II 3, 7
Police Captain 3, 7
Police Fiscal Affairs/Planning Manager 2, 4, 5
Police Services Administrator 3, 7
Police Services Manager Code and Housing Enforcement Official 3, 7 5 Program Manager I/II/III 3, 7
Property and Records Manager 5
Public safety Telecommunications Manager 5

PUBLIC WORKS DEPARTMENT

Designated Position Disclosure Category
Administrative Analyst 3, 7
Assessment District Program Coordinator 3, 7
Assistant City Traffic Engineer 3, 7
Assistant Civil Engineer 3, 7
Assistant Engineer 3, 7
Assistant Solid Waste Manager 2, 4,5
Associate Civil Engineer 3, 7
Associate Engineer 3, 7
Associate Traffic Engineer 3, 7
City Traffic Engineer 3, 7
Construction Services Manager 3, 7
Department Finance Officer *
Deputy Public Works Director/City Engineer 3, 7
Deputy Public Works Director 3, 7

ATTACHMENT A
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APPENDIX A: Page 8 of 8
Engineering Services Manager 3, 7
Engineering Technician I/II 3, 7
Facilities Manager 3, 7
Fleet Manager 2, 4, 5,
Junior Engineer 3, 7
Parks Facility Planner/Landscape Architect 2, 5, 7
Parks Manager 3, 7
PUBLIC WORKS DEPARTMENT (continued)
Designated Position Disclosure Category
Parks Supervisor 3, 7
Principal Administrative Analyst 3, 7
Program Manager I/II/III 3, 7
Project Manager I/II/III 3, 7
Public Works Director 1
Public Works Inspector 2, 5, 7
Public Works Safety/Training Officer 3, 7
Public Works Supervisor 3, 7
Public Works Supervisor/Electrical 3, 7
Senior Administrative Analyst 3, 7
Senior Civil Engineer 3, 7
Senior Engineering Technician 3, 7
Supervising Public Works Inspector 2, 5, 7
Senior Public Works Supervisor Electrical (Traffic) 3, 7 Senior Public Works Supervisor/Streets 3, 7
Solid Waste Manager 2, 4, 5
Supervising Mechanic 3, 7,
Transportation Manager 5
Consultants 8
*Required to file a statement of economic interest pursuant to Government Code Section 87200

ATTACHMENT A
282
APPENDIX B: Page 1 of 1

CITY OF STOCKTON CONFLICT OF INTEREST CODE
APPENDIX B: DESIGNATED BOARDS, COMMISSIONS, COMMITTEES

BOARDS, COMMISSIONS, COMMITTEES

Name Designated Position Disclosure
Category
Arts Commission All Commissioners 1
Building Board of Appeals All Commissioners 1
Central Parking District Advisory Board All Commissioners 2 Charter Review Advisory Commission All Commissioners 1
City Council Salary Setting Commission All Commissioners 1 Civil Service Commission All Commissioners 1
Community Development Committee All Commissioners 1
Handicapped Access Board of Appeals All Commissioners 1 Measure A Citizens Advisory Committee All Commissioners 2,5,7 Measure W Oversight Committee All Commissioners 2,5,7
Parks and Recreation Commission All Commissioners 1
Planning Commissioners All Commissioners *
Public Financing Authority (meeting concurrently
as City Council)
Chairperson, Executive
Director, Treasurer, Legal
Advisor
*
Public Financing Authority Consultants 6
Redistricting Advisory Commission All Commissioners 5
Strong Communities Advisory Commission All Commissioners 2, 5, 7 Water Advisory Group All Commissioners 1

ATTACHMENT A
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APPENDIX C: Page 10 of

CITY OF STOCKTON CONFLICT OF INTEREST CODE
APPENDIX C: DISCLOSURE CATEGORIES

DISCLOSURE CATEGORY 1 – BROAD DISCLOSURE

1) All sources of income, gifts loans, and travel payments. 2) All investments and interests in real property within the boundaries of the City of Stockton, within a two-mile radius of any property owned or used by the City of Stockton, or subject to the jurisdiction of the City of Stockton 3) All investments and business positions in business entities

DISCLOSURE CATERGORY 2 – REAL PROPERTY

All interests in real property within the jurisdiction of the County, including interests in real property held by business entities and trusts in which a person in the designated position holds a business position or has an investment or other financial interest.

DISCLOSURE CATERGORY 3 – PROCUREMENT

All investments, business positions in business entities and sources of income, gifts, loans and travel payments from sources which provide services, supplies, materials, machinery, or equipment of the type utilized by the designated position’s agency or department

DISCLOSURE CATEGORY 4 – REGULATING AND PERMITTING

All investments, business positions in business entities, and sources of income, gifts, loans, and travel payments from any source subject to the regulatory, permitting or licensing authority of, or which has an application or license pending before, the designated position’s agency or department.

DISCLOSURE CATEGORY 5 – FUNDING

All investments, business positions and sources of income, gifts, loans and travel payments, from sources which receive grants or other funding from or through the designated position's agency or department.

DISCLOSURE CATEGORY 6 – LAND DEVELOPMENT

All investments, business positions and sources of income, gifts, loans and travel payments, from sources which engage in land development, construction, or real property acquisition or sale.

DISCLOSURE CATERGORY 7 – PROVISION OF SERVICES

ATTACHMENT A
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APPENDIX C: Page 11 of

All investments, business positions and sources of income, gifts, loans and travel payments, from any source that provides the same or similar service as the designated position's agency or department or provides consulting services to any source that provides the same or similar service.

DISCLOSURE CATEGORY 8: CONSULTANTS

Consultants (the individual representing the firm) shall be included in the listing of designated employees and shall disclose pursuant to Disclosure Category 1, subject to the following limitation: The City Manager may determine, in writing, that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and, thus, is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties, and based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record, and shall be retained for public inspection in the same manner and location as this conflict of interest code.

Public Officials (Specified in Government Code Section 87200):

The positions listed below shall file a statement of economic interests pursuant to Government Code Section 87200. These positions are listed for informational purposes only.

1. Stockton City Councilmembers

2. City Manager

3. City Attorney

4. Chief Financial Officer

5. Stockton Planning Commissioners

An individual holding one of the above-listed positions may contact the Fair Political Practices Commission for assistance or written advice regarding their filing obligations if they believe that their position has been categorized incorrectly. The Fair Political Practices Commission makes the final determination whether a position is covered by Government Code section 87200.

ATTACHMENT A
285

Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION RESCINDING AND REPLACING THE CITY OF STOCKTON’S

CONFLICT OF INTEREST CODE BY ADDING AND DELETING CERTAIN

DESIGNATED POSITIONS

Title 2, California Code of Regulations, section 18000, et seq., requires the periodic review of Conflict-of-Interest Codes as adopted by the City of Stockton; and

The Political Reform A ct, Government Code section 81000, et seq., require s conforming amen dments to Conflict-of-Interest Codes adopted and promulgated pursuant to its provisions; and

The Fair Political Practices Commission has adopted section 18730 of Title 2, California Code of Regulations, which contains the terms of a standard conflict of interest code, and may be incorporated by reference and which may be after public notice and hearings conducted by the Fair Political Practices Commission to conform to amendments in the Political Reform Act , pursuant to Government Code section 11370, et seq.; and

The terms of 2 Cal. Code of Regs., Section 18730 and any amendments thereto, are incorporated by reference and along with the attached Appendix A, in which members of and employees are designated, and disclosure categories are set forth, and sha ll constitute the City of Stockton’s Conflict-of-interest Code; and

Designated employees shall file statements of economic interests where indicated in Appendix A, as required by 2 Cal. Code of Regs., Section 18730, upon appointment, beginning employment, termination, and annually; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. All previously adopted resolutions approving or amending the City’s Conflict of Interest Codes are hereby rescinded.

2. The model Conflict of Interest Code, Title 2, California Code of Regulations section 18730 and its subsequent amendments are hereby adopted by reference together with Appendix A– C, attached and incorporated by reference and marked as Exhibit 1 , designating employee disclosures, all of which constitute the Conflict-of-Interest Codes for the following departments and agencies:

A. PUBLIC OFFICIALS

286

(1) Mayor and City Councilmembers
(2) Planning Commissioners
(3) City Manager
(4) City Attorney
(5) Director of Administrative Services/City Treasurer

The officials named in section 2A of this resolution are required to file a statement of economic interests in accordance with Government Code section 87200.

B. DESIGNATED FILERS

1. A designated employee is anyone within the City of Stockton who is an officer, employee, member, or consultant who is designated in the Code because the position entails the making or participation in the making of decisions which may foreseeably have a mat erial effect on any financial interest (Gov. Code, § 82019), and who shall file statements of economic interest pursuant to subsection (b)(5) of section 18730 of Title 2, California Code of Regulations, which contains the terms for a standard Conflict-of-Interest Code.

2. Government Code section 91013 authorizes the City Clerk, as the Filing Official for the City of Stockton, to impose a late filing penalty upon late filers, in the form of a fine of $10 per day for each day a statement is late up to a maximum of $100.

APPENDIX A – DEPARTMENTS AND OFFICES OF THE CITY OF STOCKTON:

(1) Administrative Services
(2) City Attorney
(3) City Auditor
(4) City Clerk
(5) City Manager
(6) Community Development
(7) Community Services
(8) Economic Development
(9) Fire
(10) Information Technology
(11) Human Resources
(12) Mayor
(13) Municipal Utilities
(14) Police
(15) Public Works

APPENDIX B – BOARDS AND COMMISSIONS OF THE CITY OF STOCKTON

(1) Arts Commission
(2) Building Board of Appeals
(3) Central Parking District Advisory Board
287

(4) City Council Salary Setting Commission
(5) Civil Service Commission
(7) Community Development Committee
(7) Council Water Advisory Group
(8) Development Oversight Commission
(9) Handicapped Access Board of Appeals
(10) Measure A Citizens’ Advisory Committee
(11) Measure W Oversight Committee
(12) Parks and Recreation Commission
(13) Public Arts Advisory Committee
(14) Public Financing Authority
(15) Redistricting Advisory Commission
(17) Strong Communities Advisory Committee

APPENDIX C – DISCLOSURE CATEGORIES

(1) Disclosure Category 1
(2) Disclosure Category 2
(3) Disclosure Category 3
(4) Disclosure Category 4
(5) Disclosure Category 5
(6) Disclosure Category 6 – Consultants

PASSED, APPROVED, and ADOPTED September 29, 2026_ .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

BONNIE PAIGE, CMC
Interim City Clerk of the City of Stockton

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APPENDIX A: Page 1 of 8

CITY OF STOCKTON CONFLICT OF INTEREST CODE
APPENDIX A: DEPARTMENTS AND OFFICES

ADMINISTRATIVE SERVICES DEPARTMENT
Designated Position Disclosure Category
Accounting Manager 1
Assistant Chief Financial Officer 1
Budget Analyst I/II 1
Budget Officer 1
Chief Financial Officer *
Grants Analyst 1
Materials Supervisor 5
Procurement Specialist I/II 3
Procurement Officer 3
Program Manager I/II 1
Program Manager III 5
Reprographics Supervisor 5
Revenue Officer 5
Senior Budget Analyst (Confidential) 1
Senior Procurement Specialist 3
Supervising Procurement Specialist 3
CI

TY ATTORNEY
Designated Position Disclosure Category
Assistant City Attorney 1
City Attorney *
Deputy City Attorney 1
CI

TY AUDITOR
Designated Position Disclosure Category
Consultant 6
EXHIBIT 1
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APPENDIX A: Page 2 of 8

CITY CLERK

Designated Position Disclosure Category
City Clerk 1
Assistant City Clerk 1
Senior Deputy City Clerk 5
Supervising Deputy City Clerk/Operations 3

CITY COUNCIL

Designated Position Disclosure Category
City Councilmember *

CITY MANAGER

Designated Position Disclosure Category
Administrative Analyst I/II 1
City Manager *
Community Relations Officer 1
Deputy City Manager 1
Director of Performance and Data Analytics 1
Diversity, Equity, Inclusion Officer 1
Environmental and Sustainability Officer 1
Management Assistant 1
Office of Violence Prevention Director 1
Office of Violence Prevention Manager 1
Program Manager I 1
Program Manager II 1
Program Manager III 1
Senior Management Assistant 1
Consultants 1

COMMUNITY DEVELOPMENT DEPARTMENT

Designated Position Disclosure Category
Administrative Analyst I/II 4
Assistant Director of Community Development 1
Assistant Planner 4
Associate Civil Engineer 4
Associate Engineer 4
EXHIBIT 1
290
APPENDIX A: Page 3 of 8
COMMUNITY DEVELOPMENT DEPARTMENT (continued)
Designated Position Disclosure Category
Associate Planner 4
Combination Inspector I/II 4
Community Development Technician 4
Deputy Building Official 4
Deputy Director/Building 1
Deputy Director/Planning and Engineering Services 1
Director of Community Development 1
Engineering Technician I/II 4
Junior Engineer 4
Plan Check Engineer 4
Plan Checker I/II 4
Planning Manager 4
Principal Civil Engineer 3
Program Manager I/II 4
Program Manager III 4
Senior Building Inspector 5
Senior Civil Engineer 4
Senior Community Development Technician 4
Senior Engineering Technician 4
Senior Plan Checker 4
Senior Planner 4
Supervising Combination Inspector 4
Supervising Plan Check/Structural Engineer 4

COMMUNITY SERVICES DEPARTMENT

Designated Position Disclosure Category
Administrative Analyst I/II 5
Director of Community Services 1
Department Finance Officer 1
Deputy Director of Community Services-City Librarian 1
Deputy Director of Community Services/Recreation 1
Library Manager 5
Program Manager II 5
EXHIBIT 1
291
APPENDIX A: Page 4 of 8
COMMUNITY SERVICES DEPARTMENT (continued)
Designated Position Disclosure Category
Program Manager III 5
Project Manager 5
Recreation Superintendent 5
Recreation Manager 5
Senior Administrative Analyst 5

ECONOMIC DEVELOPMENT DEPARTMENT

Designated Position Disclosure Category
Administrative Analyst I/II 4
Department Finance Officer 4
Deputy Redevelopment Officer 1
Economic Development Analyst 4
Economic Development Director 1
Events Coordinator 4
Events Manager 4
Grants Analyst 4
Parking Enforcement Supervisor 4
Program Manager I/II - Administration 4
Program Manager III – Business Incentive Manager 4
Program Manager III – Housing Manager 4
Program Manager III – Homelessness Program Manager 4
Program Manager III – Parking Authority and Venues 4
Real Property Agent I/II 4
Senior Administrative Analyst 4
Senior Economic Development Analyst 4
Senior Housing Rehabilitation Counselor 4
Consultants Consultants

FIRE DEPARTMENT

Designated Position Disclosure Category
Assistant Fire Marshall 5
Deputy Fire Chief I/II 5
Deputy Fire Marshal 5
Division Chief 5
ECD Captain 5
Emergency Manager 5
EXHIBIT 1
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APPENDIX A: Page 5 of 8
FIRE DEPARTMENT (continued)
Designated Position Disclosure Category
EMS Captain/Division of Training 5
Fire Battalion Chief 5
Fire Chief 1
Fire Marshall (Fire and Prevention) 5
Fire Prevention Inspector I/II 5
Plan Checker I/II 5
Program Manager I/II/III 5
Project Manager I/II/III 5
Supervising Fire Prevention Inspector 5
Suppression Captain/Division of Training 5

HUMAN RESOURCES DEPARTMENT

Designated Position Disclosure Category
Assistant Director of Human Resources 1
Deputy Director of Human Resources 1
Director of Human Resources 1
Program Manager III 1
Risk Manager 1
Senior Risk Analyst 1
Supervising Human Resources Analyst 1

INFORMATION TECHNOLOGY DEPARTMENT

Designated Position Disclosure Category
Deputy Information Technology Director 1
Director of Information Technology 1
Information Technology Supervisor 5
Information Technology Officer 5
Network Support Analyst II 5
Program Manager I/II/III 5
Project Manager II 5
Senior Systems Analyst 5
Consultants 6

EXHIBIT 1
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APPENDIX A: Page 6 of 8

MAYOR

Designated Position Disclosure Category
Executive Assistant to the Mayor 1
Mayor’s Senior Policy Advisor 1
Public Information Officer I/II 1
Program Manager III 1
Consultants 6