To: MAYOR AND CITY COUNCIL
From: EUGENE SOLOMON, CITY TREASURER
TITLE
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APPROVE AN UPDATE TO THE CITY’S 2026 STATEMENT OF INVESTMENT POLICY INCORPORATING APPROVED BROKER/DEALERS
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EXECUTIVE SUMMARY
The City is in the process of issuing its Measure FP General Obligation (GO) Bonds. The City Treasurer’s Department will manage investment of the bond proceeds once received. The City requires that its investment transactions be conducted with approved financial institutions. In preparation for investing Measure FP proceeds, the City Treasurer published a Request for Qualifications (RFQ) seeking proposals from broker/dealers certified to conduct these transactions in California, having adequate experience working with public entities, and a stable financial profile. The City received responses from several qualified broker/dealers that will be added to the City’s list of “Authorized Broker/Dealers and Other Financial Institutions” in Exhibit A of the adopted Investment Policy.
BACKGROUND
The City will require broker/dealer coverage to access capital markets to invest the proceeds of the City’s upcoming Measure FP GO Bonds. The City received 10 responses to its RFQ. All responses came from well-known, qualified broker/dealers who have comparable experience working with California public entities. Broker/dealer relationships do not include a contract. When seeking bids/offers to conduct investment transactions, broader outreach to qualified firms is considered a best practice to ensure competitive rates in order to best execute a given transaction. As such, the City Treasurer has chosen to include all responding firms in the Investment Policy’s list of Approved Broker/Dealers.
Council approval of the policy update will allow the firms to be contacted for upcoming transactions, but there is no guarantee of payment or usage of the firms as part of the action.
FISCAL IMPACT
There is no fiscal impact associated with this item and the work needed to complete this report is included in the Adopted FY 2026-27 Budget for the City Treasurer’s Department.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• 2026 Statement of Investment Policy