Item 6.3.
Investment Policy for FY 2026-2027
May 26, 2026
2 How are City Financial Assets
Managed?
Staff Managed – Leave funds in City bank account, LAIF & other trust funds, laddered CD’s.
Investment Advisor/Portfolio Manager – Maximize
accountability, compliance and investment yield
• Best suited for smaller agencies with limited staffing resources • Recommend safe investments and monitors investment policy compliance
• City currently using Shuster Advisory Group who serves 100+ agencies, including Lafayette, Palo Alto and Los Gatos. 3 © 2025 HUB International Limited.
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City of Union City
Investment Policy
Update
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Cities and Towns We Proudly Serve
The cities and agencies listed above do not expressly recommend Shuster Advisory Group, a HUB International Company.
American Canyon Commerce Jurupa Valley Montebello Pismo Beach Sausalito Arcadia Covina Laguna Hills Monterey Park Placentia Sebastopol Artesia Downey La Mirada Moraga Pleasant Hill Scotts Valley Azusa Eastvale La Palma Moreno Valley Rancho Cordova Signal Hill Baldwin Park El Segundo La Quinta Morgan Hill Rancho Mirage South Gate Bell Emeryville La Verne Norwalk Rancho Palos Verdes South Pasadena Bell Gardens Fontana Lafayette Oakley Redlands Stanton
Bellflower Fullerton Lakeport Ontario Rialto Stockton
Beverly Hills Gardena Lakewood Orange Riverside Temecula Canyon Lake Glendora Lancaster Oxnard San Bernardino Union City Carson Hemet Lomita Palmdale San Dimas Upland
Cathedral City Hermosa Beach Lompoc Palm Desert San Fernando Vernon Chino Hesperia Los Altos Palo Alto San Juan Capistrano Walnut Claremont Huntington Park Los Gatos Paramount San Luis Obispo Whittier Clovis Indian Wells Lynwood Perris San Pablo Wildomar
Colton Inglewood Manhattan Beach Pico Rivera Santa Fe Springs Yucaipa 5 © 2025 HUB International Limited.
Public Agencies We Proudly Serve
Antelope Valley Medical Center Midway City Sanitation District Buena Vista Water Storage District Mountains Recreation & Conservation Authority (MRCA) Chino Valley Fire District Ohio County Employees Retirement Plan (OCERP) Conejo Recreation & Park District (CRPD) Ontario International Airport Authority County Commissioners’ Association of Ohio (CCAO) Orange County Fire Authority (OCFA) County of Modoc Regional Center of the East Bay
First Public Hydrogen Authority San Bernardino Water District Greater Los Angeles County Vector Control District (GLACVCD) South Bay Regional Public Communications Authority Hesperia Fire Protection District Three Valleys Municipal Water District Hesperia Water District Trinity County Waterworks
Little Lake Fire Protection District Valley-Wide Recreation & Park District Madera Irrigation District West Valley Water District
The cities and agencies listed above do not expressly recommend Shuster Advisory Group, a HUB International Company. 6 © 2025 HUB International Limited.
Shuster Advisory Group
• Shuster Advisory Group, LLC (“Shuster”) is an independent SEC-Registered Investment Advisor with over $11 billion in assets under management. • As a Fiduciary, Shuster specializes in serving the unique investment needs of governmental agencies, special districts, and institutional clients, including more than 120 cities and public entities. • Shuster Advisory Group provides Fiduciary services for the City’s 457(b) plan, 115 Trust investments, and Cash investment assets, which include reviewing and recommending revisions to the City’s Investment Policy. • Mark Shuster, Founder and Managing Partner at Shuster Advisory Group, LLC, along with members of the Shuster team, has worked closely with City staff through regular meetings to review and evaluate the City's investment portfolio, including discussion on updating the City’s Policy and any recommended changes to the Policy.
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Powers and Duties Common To Cities,
Counties And Other Agencies
CA GOVT CODE §53600.3.
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 trustees 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 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.
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Why Update the Investment Policy?
• The City has an Investment Policy that governs cash, treasury, and investment management functions.
• The California Local Agency Investment Guidelines and California Code Section 53601 (“53601”) are updated every year, though oftentimes the updates are minor.
• An annual review of the Investment Policy is good fiscal practice to ensure a City remains compliant with 53601 and reflects the latest version of 53601.
• The current Investment Policy Statement remains compliant with California Government Code Section §53601.
• However, updates to the Code in recent years have expanded investment flexibility for local agencies while preserving the core principles of safety, liquidity, and return.
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What are the Proposed Changes?
a) Clarifying the maturity of agency asset-backed and mortgage-backed securities to be measured by Weighted-Average-Life (WAL), which is not to exceed 5 years, pursuant to CA Code §53601(o).
b) Increasing the maximum allowable maturity for commercial paper to 397 days, pursuant to CA Code §53601(h).
c) Setting the maximum portfolio allowance for bankers’ acceptances in any one commercial bank to 30%, pursuant to CA Code §53601(g).
d) Clarifying that the current maximum allowance for any LAIF account is $75 million.
e) Enhancing the reporting data inputs for more informative monitoring of the Fixed Income portfolio's exposures and risk across security type. f) The recommended threshold limit updates above reflect the latest allowable limits within CA Code 53601. While these limits may not be fully utilized, it's important to maintain flexibility given dynamic market conditions. 2510 © 2025 HUB International Limited. © 2026 HUB International Limited.
Thank you
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Unless otherwise stated,all information, including fees and interest rates, is gatheredfrom the Agency or publicly available sources.
Past performanceis no guaranteeof future results.
HUB Retirement and Private Wealthemployees are affiliated with and offer Securities and Advisory services through various Broker Dealers and Registered Investment Advisers, some of whom may or may not be affiliated with HUB International. HUB Internationalowns the following Registered Investment Advisers: HUB Investment Partners; HUB Investment Advisors; Global Retirement Partners, LLC; RPA Financial; and Taylor Advisors.
Additional information for each individual HUB International RegisteredInvestment Advisor may be foundin the respective Form ADV available on the SEC’s IAPD website at https://adviserinfo.sec.gov.Insuranceservices are offeredthrough HUB International.