HomeMy WebLinkAboutItem 5.09 Attachments
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February 10, 2026
ITEM TITLE
Policy and Investment Report: Amend City Council Policy No. 220-01, Delegate Investment Activity Authority
to the Director of Finance/Treasurer, and Accept the Investment Report for Quarter Ending December 31,
2025
Report Number: 26-0009
Location: No specific geographic location
Department: Finance
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no
environmental review is required.
Recommended Action
Adopt a resolution acknowledging receipt of City Council Policy No. 220-01 Investment Policy and
Guidelines, amending the existing policy, delegating investment activity authority to the Director of
Finance/Treasurer, and accepting the investment report for the quarter ending December 31, 2025.
SUMMARY
State law allows the City Council to delegate each year to the City Treasurer authority to manage the City’s
investments. The law also allows the City Treasurer to bring the City’s Investment Policy to the City Council
annually to reaffirm or make any changes to the existing policy. City Council Policy No. 220-01, the
Investment Policy and Guidelines, provides guidelines on the investment of idle funds and provides the
various investments opportunities allowable by State law. The City Council last reviewed and approved the
Policy on February 11, 2025. Staff are recommending minor revisions to enhance clarity, maintain alignment
with State law, and update the Policy to reflect the new City Council Policies format adopted in September
2025.
Additionally, this report provides an update on how the City of Chula Vista’s money was invested during the
quarter that ended on December 31, 2025. State law and the City’s Investment Policy require the City to
provide this report every quarter.
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ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act
(CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the
State CEQA Guidelines because the proposed activity consists of a governmental fiscal/administrative
activity which does not result in a physical change in the environme nt. Therefore, pursuant to Section
15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review
is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Investment Policy
The Policy was last updated on February 11, 2025, through Resolution 2025-020. It provides guidance on
how to invest idle City funds and how to manage cash efficiently. The goal of the Policy is to improve the
City’s financial position while keeping invested funds safe.
The Policy lists the types of investments allowed under California Government Code Section 53600 et seq.
When making investment decisions, the City first prioritizes protecting the principal, second ensuring funds
are available when needed, and third earning the highest reasonable return.
Under Section XIX of the Policy, the Finance Director/Treasurer must present the Policy to the City Council
each fiscal year for approval. Staff are recommending minor revisions to enhance clarity, maintain alignment
with State law, and update the Policy to reflect the new City Council Policies format adopted in September
2025
Quarterly Investment Report
As shown in the table below, as of December 31, 2025, the City held a total of $777,797,748 million in cash
and investments. Of this amount, $655,570,419 is managed directly by the City, and $122,227,329 million is
held by outside trustees.
Summary of Cash and Investments as of December 31, 2025
Cash and Investments Book Value
Managed Investment Portfolio $ 607,077,143
State of California Local Agency Investment Fund 16,325,663
County of San Diego Pooled Investment Fund 26,978
Total Investments Held by the City 623,429,784
Cash/Time Deposits 32,140,635
Total Cash and Investments Held by the City 655,570,419
Cash and Investments Held by Bank Trustee 122,227,329
Total Cash and Investment Portfolio $ 777,797,748
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Cash and investments held by the City and the trustees continue to be invested in accordance with the
Government Code and City Council Policy 220-01 Investment Policy and Guidelines as adopted by Resolution
No. 2025-020 on February 11, 2025.
During the quarter, the City transferred $10.0 million to the State of California Local Agency Investment Fund
(LAIF) and received $20.0 million from the Bank of New York, the City’s custodian bank, to maintain adequate
cashflows during the quarter. A total of 19 investments matured, and 1 investment was called early by the
issuer, providing $94.5 million in proceeds. The City reinvested funds by purchasing 10 new investments,
including one corporate bond ($5.0 million) and nine U.S. Treasury notes ($72.7 million). The Finance
Department continues to actively manage the portfolio based on financial and economic conditions. No other
significant activity occurred beyond routine investment transactions.
The City’s investment portfolio earned an average return of 4.19%, which was slightly higher than the
previous quarter. The average portfolio maturity increased from 1.90 to 1.95 years.
The Federal Open Market Committee (FOMC) meets approximately every six weeks to set the target range
for the federal funds rate. At its most recent meeting, the FOMC noted that the economy continues to grow at
a moderate pace; however, job growth has slowed, and the unemployment rate has increased slightly.
Inflation has risen and remains above the Committee’s long-term target.
In response to increased economic uncertainty and heightened risks to employment, the Federal Reserve
lowered the target range for the federal funds rate to 3.50%–3.75%. The Committee will continue to closely
monitor incoming economic data and adjust monetary policy as appropriate to support maximum
employment and maintain inflation near its long-term objective.
The Finance Department, with the assistance of Chandler Asset Management, Inc, continues to manage the
City’s investment portfolio in accordance with the State law and City Council Policy 220-01 Investment Policy
and Guidelines. Considering the projected timing of cash receipts and disbursements and the structure of the
Pooled Investment Portfolio, the City will be able to comfortably meet overall cash flow needs over the next
six months.
In accordance with City Council Policy 220-01 Investment Policy and Guidelines, the City Investment Report
for the Quarter Ended December 31, 2025 (Attachment 2) includes the following sections:
• Portfolio Summary (pg. 1)
• Statement of Compliance (pg. 2)
• Holdings Report (pg. 5)
• U.S. Treasury Yields and Interest Earnings (pg. 14)
• Transaction Ledger (pg. 15)
• Portfolio Maturity Distribution (pg. 17)
• Corporate Bonds Sector Distribution (pg. 20)
• Glossary (pg. 22)
DECISION-MAKER CONFLICT
Staff have reviewed the decision contemplated by this action and have determined that it is not site-specific
and consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov’t Code § 87100, et seq.).
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Staff are not independently aware and have not been informed by any City Council member, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Considering the projected timing of cash receipts and disbursements and the structure of the Pooled
Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six
months. There is no direct current-year fiscal impact as a result of this action.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of this action.
ATTACHMENTS
1. Summary of Cash and Investments as of December 31, 2025
2. Investment Report for the Quarter Ended December 31, 2025
3. Council Policy 220-01 Investment Policy and Guidelines – Redline Version
Staff Contact: Galen Fleming, Fiscal Services Analyst, Finance Department
Sarah Schoen, Director of Finance/Treasurer
Form Rev 3/6/2023
RESOLUTION NO. 2026-__________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACKNOWLEDGING RECEIPT OF COUNCIL
POLICY 220-01, INVESTMENT POLICY AND GUIDELINES,
AMENDING THE EXISTING POLICY, DELEGATING
INVESTMENT ACTIVITY AUTHORITY TO THE DIRECTOR
OF FINANCE/TREASURER, AND ACCEPTING THE
INVESTMENT REPORT FOR THE QUARTER ENDING
DECEMBER 31, 2025
WHEREAS, the City of Chula Vista’s “Investment Policy and Guidelines,” amended on
February 11, 2025 by Resolution No. 2025-020 (the “Policy”), is intended to provide direction for
the prudent investment of temporarily idle cash and to maximize the efficiency of the cash
management process; and
WHEREAS, the stated goal of the Policy is to enhance the economic condition of the City
while ensuring the safety of funds invested; and
WHEREAS, the Policy includes a list of specific investment instruments available pursuant
to California Government Code sections 53600, et seq. and 53635; and
WHEREAS, each investment transaction is made in the context of first ensuring the
“safety” of principal, second, investing only for that timeframe that the cash is not needed for the
operational purposes (“liquidity”), and last seeking the highest return possible (“yield”) provided
that the first two factors are met; and
WHEREAS, in accordance with Section XIX of the Policy, staff have provided the City
Council with a copy of the City’s Investment Policy; and
WHEREAS, staff recommend that the Policy be amended to ensure the Policy aligns with
the California Government Code; and
WHEREAS, staff recommends that the Policy be amended to reflect these changes; and
WHEREAS, pursuant to California Government Code section 53607, the City Council may
delegate authority to conduct investment activities of the City to the Finance Director/Treasurer
on an annual basis; and
WHEREAS, City staff have prepared, and provided the City Council with, a copy of the
City’s Investment Report for the quarter ending December 31, 2025.
Resolution No. 2026-______
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it:
• Acknowledges receipt of Council Policy 220-01, Investment Policy and Guidelines;
• Amends the existing Policy as set forth in Exhibit 1 to this resolution, attached hereto
and incorporated herein;
• Delegates the authority to conduct and supervise the investment activities of the City
to the Director of Finance/Treasurer; and
• Accepts the Investment Report for the quarter ending December 31, 2025.
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
Director of Finance/Treasurer City Attorney
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I. BACKGROUND
City Council’s “Investment Policy and Guidelines” (the “Investment Policy”) Policy 220-01 was first adopted on July
26, 1994 and last updated on February 11, 2025. The Investment Policy provides guidelines, rules, and strategies for
managing the city’s public funds. Its primary goals are to ensure safety of principal, maintain liquidity for operational
needs, and obtain a market rate of return. The investment practices and policies of the City of Chula Vista are based
upon state law and prudent money management.
II. PURPOSE
This Investment Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista’s (the
“City”) cash balances, and outline policies to assist in maximizing the efficiency of the City’s cash management
system, while meeting the daily cash flow demands of the City.
III. POLICY
The investment practices and policies of the City of Chula Vista are based upon state law and prudent money
management.
IV. SCOPE
This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in IV.1 below. These
funds are accounted for in the City’s Comprehensive Annual Financial Report.
IV.1 FUNDS
The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds,
except for the employee’s retirement funds, which are administered separately, and those funds which are managed
separately by trustees appointed under indenture agreements. The Director of Finance/Treasurer will strive to maintain
the level of investment of this cash as close as possible to 100%. These funds are described in the City’s annual
financial report and include:
• General Fund
• Special Revenue Funds
• Capital Project Funds
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• Enterprise Funds
• Fiduciary Funds
• Any new fund created by the legislative body, unless specifically exempted
This Investment Policy applies to all transactions involving the financial assets and related activity of the forgoing
funds.
Bond proceeds shall be invested in the investments permitted by the applicable bond documents. If the bond
documents are silent as to the permitted investments, the bond proceeds will be invested in the securities
permitted by this Policy. Notwithstanding the other provisions of this Policy, the percentage limitations listed
elsewhere in this Policy do not apply to bond proceeds.
V. PRUDENCE
The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard”.
This shall be applied in the context of managing an overall portfolio.
The “prudent investor standard” is applied to local agencies, pursuant to California Government Code Section
53600.3 which provides, in pertinent part:
“ … 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…”
V.1 PERSONAL RESPONSIBILITY
The Director of Finance/Treasurer, Assistant Director of Finance, Treasury Manager and Finance Manager as
investment officers acting in accordance with written procedures and the Investment Policy and exercising due
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diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes,
provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is
taken to control adverse developments.
VI. OBJECTIVE
Consistent with this aim, investments are made under the terms and conditions of California Government Code
Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are:
VI.1 SAFETY
Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall
be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this
objective, diversification is required in order that potential losses on individual securities do not exceed the income
generated from the remainder of the portfolio.
VI.2 LIQUIDITY
The City of Chula Vista’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating
requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as
applicable. Liquidity is essential to the safety of principal.
VI.3 RETURN ON INVESTMENTS
The City of Chula Vista’s investment portfolio shall be designed with the objective of attaining a market-average rate
of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk
parameters and the City’s cash flow needs. See also Section XVII.
VII. DELEGATION OF AUTHORITY
The City Council delegates responsibility for the investment program to the Director of Finance/Treasurer for a period
of one year. Subject to review, the City Council may renew the delegation of authority each year. The Director of
Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and
written procedures to regulate the activities of subordinate officials. The responsibility for the day-to-day investment
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of City funds will be delegated to the Assistant Director of Finance or their designee. The Director of
Finance/Treasurer may delegate day-to-day investment decision making and execution authority to an investment
advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided.
VIII. ETHICS AND CONFLICTS OF INTEREST
In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process
shall refrain from personal business activity that could conflict with proper execution of the investment program, or
which could impair their ability to make impartial investment decisions. Employees and investment officers, including
investment advisors, are required to file annual disclosure statements as required for “public officials who manage
public investments” [as defined and required by the Political Reform Act and related regulations, including
Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair
Political Practices Commission (FPPC)].
IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
For any transactions executed by the City, the City’s Director of Finance/Treasurer will maintain a list of the financial
institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual
review of their financial condition. The City will utilize Moody’s Securities or other such services to determine
financially sound institutions with which to do business. The City shall annually send a copy of the current Investment
Policy to all financial institutions and brokers/dealers approved to do business with the City.
As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s
Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited
for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured
industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the
investments set forth in Section X. To be eligible to receive local agency money, a bank, savings association, federal
association, or federally insured industrial loan company shall have received an overall rating of not less than
“satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of its record of
meeting the credit needs of California’s communities, including low- and moderate-income neighborhoods.
To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage
competitive bidding on transactions. Any transactions not executed directly with the issuer shall be made with
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approved brokers/dealers. In order to be approved by the City, the broker/dealer must meet the following criteria: (i)
the broker/dealer must be a “primary” dealer or regional broker/dealer that qualifies under Securities and Exchange
Commission Rule 15C3-1 (Uniform Net Capital Rule); (ii) the broker/dealer must be experienced in institutional
trading practices and familiar with the California Government Code as related to investments appropriate for the City;
and (iii) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and
financial institutions who desire to become qualified bidders for investment transactions must submit documents
relative to eligibility including U4 form for the broker, proof of Financial Industry Regulatory Authority (FINRA)
certification and a certification of having read and understood the City’s Investment Policy and agreeing to comply
with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized
(i.e. minimum capital requirements of $10,000,000 and five years of operation).
If the City has an investment advisor, the investment advisor may use its own list of authorized issuers and
broker/dealers to conduct transactions on behalf of the City.
X. AUTHORIZED AND SUITABLE INVESTMENTS
The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities.
Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on
the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased.
If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of
Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment.
Investments not specifically listed below are deemed inappropriate and prohibited:
A. BANKERS’ ACCEPTANCES. A maximum of 40% of the total portfolio may be invested in bankers’
acceptances. The maximum maturity is 180 days. No more than 30% of the agency’s moneys may be invested
in the bankers’ acceptances of any one commercial bank. See Government Code Section 53601(g).
B. NEGOTIABLE CERTIFICATES OF DEPOSIT. A maximum of 30% of the total portfolio may be invested in
negotiable certificates of deposit (NCD’s). The maximum maturity of a NCD issue shall be 5 years. These are
issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn
specified or variable rates of interest. Negotiable certificates of deposit (NCD’s) differ from other certificates of
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deposit by their liquidity. NCD’s are traded actively in secondary markets. See Government Code Section
53601(i).
C. COMMERCIAL PAPER. A maximum of 40% of the total portfolio may be invested in commercial paper. No
more than 10% of the City’s total investment assets may be invested in the commercial paper and the medium-
term notes of any single issuer. The maximum maturity is 397 days. Commercial paper of prime quality of the
highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the
commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (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 higher, or the
equivalent, by 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, over collateralization, letters of
credit, or surety bond.
c. Has commercial paper that is rated in a rating category of “A-1” or higher, or equivalent, by a NRSRO.
See Government Code Section 53601(h).
D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA.
There is no limit on the percentage of the portfolio that can be invested in this category. See Government Code
Section 53601(a) and 53601(e).
E. OBLIGATIONS OF THE UNITED STATES TREASURY. United States Treasury Notes, bonds, bills or
certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment
of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category.
See Government Code Section 53601(b).
F. FEDERAL AGENCIES. Federal agency or United States government-sponsored enterprise obligations,
participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by
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federal agencies or United States government-sponsored enterprises. There is no limit on the percentage of the
portfolio that can be invested in this category. See Government Code Section 53601(f).
G. REPURCHASE AGREEMENT, maximum term 1 year. Investments in repurchase agreements may be made,
on any investment authorized in this section, when the term of the agreement does not exceed 1 year. A Master
Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City.
There is no limit on the percentage of the total portfolio that can be invested in this category. See Government
Code Section 53601(j).
H. REVERSE-REPURCHASE AGREEMENTS (Requires Council approval for each transaction). Per
Government Code Section 53601(j), reverse repurchase agreements or securities lending agreements may be
utilized only when all of the following conditions are met:
a) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned
and fully paid for by the local agency for a minimum of 30 days prior to sale.
b) The total of all reverse repurchase agreements and securities lending agreements on investments owned by
the local agency does not exceed 20% of the base value of the total portfolio.
c) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil
guaranteeing a minimum earning or spread for the entire period between the sale of a security using a
reverse repurchase agreement or securities lending agreement and the final maturity date of the same
security.
d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a
counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to
purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse
repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities
lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period
between the sale of a security using a reverse repurchase agreement or securities lending agreement and the
final maturity date of the same security.
e) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in
which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the
security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a
nationally or state-chartered bank that has or has had a significant banking relationship with a local agency.
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f) For purposes of this policy, “significant banking relationship” means any of the following activities of a
bank:
i. Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes,
or other evidence of indebtedness.
ii. Financing of a local agency’s activities.
iii. Acceptance of a local agency’s securities or funds as deposits.
I. MEDIUM-TERM CORPORATE NOTES. A maximum of 30% of the total portfolio may be invested in
medium-term corporate notes, with a maximum remaining maturity of five years or less. Notes eligible for
investment shall be rated in a rating category of “A,” its equivalent or better by a NRSRO. See Government
Code Section 53601(k). No more than 10% of the City’s total investment assets may be invested in the
commercial paper and the medium-term notes of any single issuer.
J. NON-NEGOTIABLE CERTIFICATES OF DEPOSIT. The maximum maturity is 5 years. Certificates of
deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at
its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit
Insurance Corporation (FDIC) insurance. There is no limit on the percentage of the portfolio that can be
invested in this category.
K. OBLIGATIONS OF THE STATE OF CALIFORNIA. Including bonds payable solely out of revenues from a
revenue producing property owned, controlled or operated by the state, or by a department, board, agency or
authority of the state. The maximum maturity is 5 years. There is no limit on the percentage of the portfolio that
can be invested in this category. See Government Code Section 53601(d).
L. OBLIGATIONS OF THE OTHER 49 STATES. Including bonds payable solely out of revenues from a
revenue producing property owned, controlled or operated by any of these states, or by a department, board,
agency or authority of the state. The maximum maturity is 5 years. There is no limit on the percentage of the
portfolio that can be invested in this category. See Government Code Section 53601(d).
M. MONEY MARKET FUNDS. A maximum of 20% of the total portfolio may be invested in money market
funds. No more than 10% of the agency’s funds may be invested in shares of beneficial interest of any one
mutual fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management
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companies which invest in the securities and obligations as authorized by California Government Code Section
53601, subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive. They must have the highest
rating from two NRSRO’s or have retained an investment advisor registered or exempt from registration with
the Securities and Exchange Commission with not less than five years of experience managing money market
mutual funds and with assets under management in excess of $500,000,000. The purchase price of the shares
may not include commission. See Government Code Section 53601(l).
N. SAN DIEGO COUNTY TREASURER’S POOLED MONEY FUND. Also known as the San Diego County
Investment Pool, the pool is a local government money fund created to invest the assets of the County of San
Diego and other public agencies located within the County. The three primary objectives of the County Pool are
to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the
funds within the guidelines of prudent risk management. Investment in the County Pool is highly liquid and the
City may invest with no portfolio percentage limit. See Government Code Section 27133.
O. THE LOCAL AGENCY INVESTMENT FUND (LAIF). LAIF is a special fund of the California State
Treasury through which any local government may pool investments. The City may invest up to the maximum
amount permitted by LAIF. Investments in LAIF are highly liquid and may be converted to cash within 24
hours. See Government Code Section 16429.1.
P. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (Local
Government Investment Pools [LGIP]). Per Government Code Section 53601(p), there is no limit on
the percentage of the portfolio that can be invested in this category. LGIP’s organized pursuant to
Government Code Section 6509.7 that invests in the securities and obligations authorized in
subdivisions (a) to (q) of California Government Code Section 53601, inclusive. Each share will
represent an equal proportional interest in the underlying pool of securities owned by the joint powers
authority. To be eligible under this section the joint powers authority issuing the shares will have
retained an investment adviser that meets all of the following criteria:
• The adviser is registered or exempt from registration with the Securities and Exchange
Commission.
• The adviser has not less than five years of experience investing in the securities and
obligations authorized in subdivisions (a) to (q) Government Code Section 53601, inclusive.
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• The adviser has assets under management in excess of five hundred million dollars
($500,000,000).
Q. ASSET BACKED SECURITIES (ABS). A maximum of 20% of the total portfolio may be invested in ABS.
The maximum maturity is five years. Securities eligible for investment under this subdivision not issued or
guaranteed by issuers identified in subdivision E and F, shall be rated in a rating category of “AA” or its
equivalent or better by an NRSRO. ABS constitutes a mortgage pass-through security, collateralized mortgage
obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer
receivable pass-through certificate, or consumer receivable-backed bond. See Government Code Section
53601(o).
R. SUPRANATIONALS. A maximum of 30% of the portfolio may be invested in supranationals. The maximum
maturity is five years. Securities eligible for purchase under this subdivision shall be United States 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 that are eligible for purchase and sale within the United States. Investments under this
subdivision shall be rated in a rating category of “AA,” its equivalent or better by an NRSRO. See Government
Code Section 53601(q).
S. PLACEMENT SERVICE DEPOSITS. A maximum of 30% of the total portfolio may be invested in placement
service deposits. The maximum maturity is 5 years. Deposits placed through a deposit placement service shall
meet the requirements under Government Code Section 53601.8 and 53635.8. The full amount of the principal
and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be
insured by federal deposit insurance.
T. COLLATERALIZED BANK DEPOSITS. Notes, bonds, or other obligations that are at all times
secured by a valid first priority security interest in securities of the types listed by California
Government Code Section 53651 as eligible securities for the purpose of securing local agency
deposits having a market value at least equal to that required by California Government Code Section
53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be
placed by delivery or book entry into the custody of a trust company or the trust department of a bank
that is not affiliated with the issuer of the secured obligation. The maximum maturity is 5 years. There
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is no limit on the percentage of the portfolio that can be invested in this category. See Government
Code Section 53601(n) and 53630 et seq.
X.1 INVESTMENT POOLS
The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government
investment pools and money market mutual funds prior to investing and performing at least a quarterly review
thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in
Section 16429.1 of the California Government Code as an allowable investment for local agencies even though
some of the individual investments of the pool are not allowed as a direct investment by a local agency.
XI. PORTFOLIO ADJUSTMENTS
Should any investment listed in section X exceed a percentage-of-portfolio limitation due to an incident such as
fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated,
the Director of Finance/Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected
length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified.
XII. COLLATERALIZATION
Under provisions of the California Government Code, California banks, and savings and loan associations are required
to secure the City’s deposits by pledging letters of credit issued by the Federal Home Loan Bank of San Francisco
with a value of 105% of the principal and accrued interest, government securities with a value of 110% of principal
and accrued interest or first trust deed mortgage notes having a value of 150% of the City’s total deposits. Collateral
will be handled as required by the California Government Code. The Director of Finance/Treasurer, at his or her
discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal
Deposit Insurance Corporation.
The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds
borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the
underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in
compliance if the value of the underlying securities is brought back up to 102% no later than the next business day.
Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping
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receipt) must be supplied to the City and retained. The right of collateral substitution is granted.
XIII. SAFEKEEPING AND CUSTODY
All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal
payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with
the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and
statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the
City has a financial institution hold the securities, a separate custodial agreement shall be required. All deliverable
securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis. For Repurchase
Agreements, the purchase may be delivered by book entry, physical delivery or by third-party custodial agreement
consistent with the Government Code. The transfer of securities to the counter party bank’s customer book entry
account may be used for book entry delivery.
XIV. DIVERSIFICATION
The City’s investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with
concentrating investments in specific security types, maturity segment, or in individual financial institutions. No more
than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S. Government
Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, Joint Power
Authorities (JPA’s), and local government investment pools (LGIP’s).
A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by
investing in those securities with an “A” or above rating and approved in the Investment Policy and by
diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s
cash flow.
B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of
interest rates, shall be mitigated by implementing a long-term investment strategy. It is explicitly recognized
herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be
considered within the context of overall investment return. The City’s investment portfolio will remain
sufficiently liquid to enable the City to meet all operating requirements which might be reasonably
anticipated.
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XV. MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. The
City will not directly invest in securities maturing more than five (5) years from the settlement date, unless, the
legislative body has granted express authority to make that investment either specifically, or as a part of an investment
program approved by the City Council at least three (3) months prior to the investment.
XVI. INTERNAL CONTROL
The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds
due to fraud, employee error, or misrepresentation by third parties. No investment personnel, including an investment
advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and
the procedure established by the Director of Finance/Treasurer.
The external auditors shall annually review the investments with respect to the Investment Policy. This review will
provide internal control by assuring compliance with policies and procedures for the investments that are selected for
testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or
maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department
and approved by the Director of Finance/Treasurer. To provide further protection of City funds, written procedures
prohibit the wiring of any City funds without the authorization of at least two of the following six designated City
staff:
1. Director of Finance/Treasurer
2. Assistant Director of Finance
3. Treasury Manager
4. Finance Manager
5. Revenue Manager
6. Budget and Analysis Manager
XVII. PERFORMANCE STANDARDS
The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and
economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes
a consideration only after the basic requirements of investment safety and liquidity have been met. In evaluating the
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performance of the City’s portfolio in complying with this policy, the City shall establish an appropriate performance
benchmark and compare the return of its portfolio to the return of the benchmark.
XVIII. REPORTING
The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council and City Manager
within 45 days following the end of each quarter. This report will include the following elements:
• Type of investment
• Institutional issuer
• Purchase date
• Date of maturity
• Amount of deposit or cost of the investment
• Face value of the investment
• Current market value of securities and source of valuation
• Rate of interest
• Interest earnings
• Statement relating the report to its compliance with the Statement of Investment Policy or the manner in
which the portfolio is not in compliance
• Statement on availability of funds to meet the next six month’s obligations
• Monthly and year-to-date budget amounts for interest income
• Percentage of portfolio by investment type
• Days to maturity for all investments
• Comparative report on interest yields
• Monthly transactions
• Compare portfolio total return to market benchmark return
In addition, a commentary on capital markets and economic conditions may be included with the report.
XIX. INVESTMENT POLICY REVIEW AND ADOPTION
This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its
consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current
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law and financial and economic trends. Each fiscal year, the Finance Director shall provide a copy of the City’s current
Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of
Chula Vista, the Council shall acknowledge the receipt of the Policy for the respective fiscal year.
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INVESTMENT GLOSSARY
AGENCIES: Federal agency securities.
ASSET BACKED SECURITIES: Securities supported by pools of installment loans or leases or by pools of
revolving lines of credit.
ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.)
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. The drafts are drawn on a bank by an
exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high-grade negotiable
instrument.
BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %).
BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.)
BROKER: A broker brings buyers and sellers together for a commission. He does not take a position.
CALLABLE: A callable security gives the issuer the option to call it from the investor prior to its maturity. The
main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current
securities and reissue them at a lower rate of interest.
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.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO): Classes of bonds that redistribute the cash
flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk,
as compared to the underlying mortgage securities.
COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to raise working
capital. These negotiable instruments are purchased at a discount to par value or at par value with interest
bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM,
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Bank of America, etc.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own
account.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment
and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the
securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
FEDERAL AGENCIES: Agencies of the Federal government set up to supply credit to various classes of
institutions (e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters).
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits,
currently up to $250,000 per deposit.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of
a seven-member Board of Governors in Washington, D.C.; 12 regional banks and about 5,700 commercial banks
are members of the system.
FIDUCIARY: A person or organization that acts on behalf of another person(s) or organization that puts their
clients’ interest ahead of their own as they are bound both legally and ethically to act in the other’s best interests.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss
of value. 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 AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that
are placed in the custody of the State Treasurer for investment and reinvestment.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): An investment pool offered by a state or local
agency to public entities for the investment of public funds.
MARKET VALUE: The price at which a security is trading and could presumable be purchased or sold.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. The
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investment’s term or remaining maturity is measured from the settlement date to final maturity.
MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and principal cash
flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed
through to the holder of the security.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS (NRSROs): Credit rating
agencies that issue credit ratings that the Securities and Exchange Commission (SEC) permits other financial
firms to use for certain regulatory purposes.
NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or
savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They
are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit.
OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer).
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and
positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its
informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities
broker/dealers, banks and a few unregulated firms.
PRUDENT INVESTOR STANDARD: 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 that 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 yield obtainable on a security based on its purchase price or its current market price.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all
types and descriptions are held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial
distribution.
SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in
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securities transactions by administering securities legislation.
SEC RULE 15C3-1: See “Uniform Net Capital Rule”.
TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national
debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years.
TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of one year to
ten 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.
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HISTORY
DATE ACTION RESOLUTION NO.
% of
Investment Type Par Value Market Value Book Value Portfolio
Managed Investment Portfolio
Asset Back Securities - - - 0.00%
Federal Agency 91,566,000 92,418,877 91,466,407 11.76%
Commercial Paper - - - 0.00%
Corporate Note 151,204,000 152,576,563 150,913,319 19.40%
BNY Custodial Cash Account 3,540,322 3,540,322 3,540,322 0.46%
Municipal Bond 27,910,000 27,784,814 27,606,931 3.55%
Negotiable Certificate of Deposit 249,000 255,198 249,000 0.03%
Supranationals 23,000,000 23,136,076 22,915,123 2.95%
U.S. Treasury Bond/Note 308,000,000 308,852,315 306,063,304 39.35%
Placement Service Deposits (CDARS) 4,232,975 4,232,975 4,232,975 0.54%
Cash
Purchase in Transit (Payable)- - - 0.00%
Interest in Transit (Receivable)82,938 82,938 82,938 0.01%
Cash 6,825 6,825 6,825 0.00%
Cash Subtotal 89,763 89,763 89,763 0.01%
Managed Investment Portfolio Subtotal 609,792,059 612,886,901 607,077,143 77.51%
Pooled Investments
State of CA Local Agency Investment Fund 16,325,663 16,325,663 16,325,663 2.10%
County of San Diego Pooled Investment Fund 26,978 26,978 26,978 0.00%
Pooled Investments Subtotal 16,352,642 16,352,642 16,352,642 2.10%
Investments Held by the City 626,144,701 629,239,543 623,429,784 79.61%
Cash/Time Deposits 32,140,635 32,140,635 32,140,635 4.13%
Total Cash & Investments Held by the City $658,285,336 $661,380,178 $655,570,419 84.29%
Held by Bank Trustee/Fiduciary Funds
Cash with Fiscal Agents 960,272 960,272 960,272 0.12%
Mutual Funds 70,389,335 70,389,335 70,389,335 9.05%
San Diego County Investment Pool 5,994,017 5,994,017 5,994,017 0.77%
Local Agency Investment Fund 5,963,179 5,974,685 5,963,179 0.77%
Section 115 Trust 30,588,991 30,588,991 30,588,991 3.93%
Treasury Bills 8,331,535 8,331,535 8,331,535 1.07%
Total Held by Bank Trustee/Fiduciary Funds $122,227,329 $122,238,835 $122,227,329 15.71%
Total Portfolio $780,512,665 $783,619,013 $777,797,748 100.00%
Notes:
1. Reflects bond proceeds and tax levy revenues held by trustee in accordance with bond covenants.
2. Par value is the principal amount of the investment on maturity.
3. Market values contained herein are received from sources we believe are reliable, however we do not guarantee their accuracy.
4. Market values do not include accrued interest.
5. Book value is the value at which an asset is carried on the balance sheet and does not include accrued interest.
Summary of Cash and Investments as of December 31, 2025
City of Chula Vista
City of Chula Vista | As of December 31, 2025
PORTFOLIO SUMMARY
Portfolio Characteristics
Sector Allocation
Account Summary
Maturity Distribution
Top Issuers
Credit Quality*
Average Modified Duration 1.70
Average Coupon 3.69%
Average Purchase YTM 4.17%
Average Market YTM 3.68%
Average Credit Quality*AA
Average Final Maturity 1.88
Average Life 1.84
End Values as of
11/30/2025
End Values as of
12/31/2025
Market Value 612,706,356.62 629,239,542.84
Accrued Interest 5,214,342.91 5,462,141.63
Total Market Value 617,920,699.53 634,701,684.47
Income Earned 1,500,697.43 2,716,854.80
Cont/WD (14,985,809.71)15,000,000.00
Par 609,455,836.37 626,144,701.16
Book Value 606,529,951.12 623,429,784.36
Cost Value 601,927,400.01 618,648,598.47
United States 49.08%
Farm Credit System 10.75%
Federal Home Loan Banks 3.94%
LAIF 2.59%
International Bank for Recon and Dev 1.62%
State of California 1.48%
Morgan Stanley 1.45%
Inter-American Development Bank 1.43%
*The average credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch.
Investment Report for the Quarter Ended December 31, 2025
City of Chula Vista
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City of Chula Vista | As of December 31, 2025
STATEMENT OF COMPLIANCE
Rules Name Limit Actual Compliance
Status Notes
AGENCY MORTGAGE SECURITIES
Max % (MV)100.0 0.0 Compliant
Max Maturity (Years)5.0 0.0 Compliant
Min Rating (AA- by 1)0.0 0.0 Compliant
ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS)20.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5 0.0 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
CERTIFICATE OF DEPOSIT PLACEMENT SERVICE (CDARS)
Max % (MV)30.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5.0 0.0 Compliant
COLLATERALIZED BANK DEPOSITS
Max % (MV)100.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV)100.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)3.0 0.0 Compliant
COMMERCIAL PAPER
Max % (MV)40.0 0.0 Compliant
Max % Issuer (Corporate & Commercial Paper; MV)10.0 1.4 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 24.2 Compliant
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City of Chula Vista | As of December 31, 2025
STATEMENT OF COMPLIANCE
Rules Name Limit Actual Compliance
Status Notes
Max % Issuer (Corporate & Commercial Paper; MV)10.0 1.4 Compliant
Max % Issuer (MV)5.0 1.4 Compliant
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 % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)5 0.0 Compliant
FEDERAL AGENCIES
Max % (MV)100.0 14.7 Compliant
Max Maturity (Years)5 3 Compliant
LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV)75.0 16.3 Compliant
LOCAL GOVERNMENT INVESTMENT POOL (LGIP)
Max % (MV)100.0 0.0 Compliant
MONEY MARKET MUTUAL FUNDS
Max % (MV; Money Market Fund & Mutual Fund)20.0 0.6 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)100.0 3.9 Compliant
Max % Issuer (MV)5.0 1.5 Compliant
Max Maturity (Years)5 3 Compliant
MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV)100.0 0.5 Compliant
Max % Issuer (MV)5.0 0.5 Compliant
Max Maturity (Years)5 0.0 Compliant
MUTUAL FUNDS
Max % (MV; Money Market Fund & Mutual Fund)20.0 0.6 Compliant
Max % Issuer (MV)10.0 0.0 Compliant
3 of 25
City of Chula Vista | As of December 31, 2025
STATEMENT OF COMPLIANCE
Rules Name Limit Actual Compliance
Status Notes
Min Rating (AAA by 2)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 1 Compliant
REPURCHASE AGREEMENTS
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Years)1.0 0.0 Compliant
REVERSE REPURCHASE AGREEMENTS
Max % (MV)20.0 0.0 Compliant
Max % Issuer (MV)5.0 0.0 Compliant
Max Maturity (Days)92.0 0.0 Compliant
SUPRANATIONAL OBLIGATIONS
Max % (MV)30.0 3.7 Compliant
Max % Issuer (MV)5.0 1.6 Compliant
Max Maturity (Years)5 4 Compliant
Min Rating (AA- by 1)0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV)100.0 49.1 Compliant
Max Maturity (Years)5 4 Compliant
4 of 25
City of Chula Vista | As of December 31, 2025
HOLDINGS REPORT
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
AGENCY
3133ENMM9 FEDERAL FARM CREDIT BANKS
FUNDING CORP 1.44 01/27/2026 3,500,000.00 02/01/2022
1.55%
3,485,300.00
3,499,737.50
99.85
3.60%
3,494,704.50
21,560.00
0.56%
(5,033.00)
Aa1/AA+
AA+
0.07
0.07
3133ENRG7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 2.22 03/10/2026 3,500,000.00 03/08/2022
2.56%
3,498,250.00
3,499,918.66
99.72
3.67%
3,490,340.00
23,957.50
0.55%
(9,578.66)
Aa1/AA+
AA+
0.19
0.19
3133ERDZ1 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 05/08/2026 6,000,000.00 05/06/2024
4.85%
5,988,360.00
5,997,974.96
100.39
3.60%
6,023,412.00
41,958.33
0.96%
25,437.04
Aa1/AA+
AA+
0.35
0.35
3130AWGR5 FEDERAL HOME LOAN BANKS
4.375 06/12/2026 5,000,000.00 06/28/2023
4.45%
4,989,050.00
4,998,355.98
100.29
3.69%
5,014,690.00
11,545.14
0.80%
16,334.02
Aa1/AA+
AA+
0.45
0.44
3133ENV72 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 07/27/2026 3,000,000.00 10/24/2022
4.51%
2,998,950.00
2,999,841.58
100.48
3.64%
3,014,274.00
57,750.00
0.48%
14,432.42
Aa1/AA+
AA+
0.57
0.55
3133ENH45
FEDERAL FARM CREDIT
BANKS FUNDING CORP 3.125
08/24/2026
1,666,000.00 09/09/2022
3.58%
1,637,861.26
1,661,423.80
99.71
3.58%
1,661,150.27
18,366.49
0.26%
(273.53)
Aa1/AA+
AA+
0.65
0.63
3133EPUW3 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 09/01/2026 6,000,000.00 09/25/2023
4.96%
5,966,280.00
5,992,349.24
100.74
3.61%
6,044,190.00
95,000.00
0.96%
51,840.76
Aa1/AA+
AA+
0.67
0.64
3130AWTQ3 FEDERAL HOME LOAN BANKS
4.625 09/11/2026 5,250,000.00 08/30/2023
4.67%
5,243,332.50
5,248,476.17
100.69
3.60%
5,286,193.50
74,192.71
0.84%
37,717.33
Aa1/AA+
AA+
0.70
0.67
3133EJD55 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.3 09/28/2026 1,000,000.00 09/28/2022
4.14%
968,590.00
994,195.28
99.76
3.62%
997,642.00
8,525.00
0.16%
3,446.72
Aa1/AA+
AA+
0.74
0.72
3130ARHY0 FEDERAL HOME LOAN BANKS 3.0
10/21/2026 3,750,000.00 03/24/2022
3.00%
3,750,000.00
3,750,000.00
99.45
3.69%
3,729,453.75
21,875.00
0.59%
(20,546.25)
Aa1/AA+
AA+
0.80
0.78
3130APRK3 FEDERAL HOME LOAN BANKS
1.43 11/23/2026 2,600,000.00 02/28/2022
1.92%
2,541,500.00
2,588,969.92
98.12
3.59%
2,551,036.80
3,924.56
0.41%
(37,933.12)
Aa1/AA+
AA+
0.90
0.87
3130ATVE4 FEDERAL HOME LOAN BANKS 4.5
12/11/2026 1,650,000.00 11/30/2022
4.09%
1,675,007.40
1,655,844.12
100.90
3.51%
1,664,924.25
4,125.00
0.26%
9,080.13
Aa1/AA+
AA+
0.94
0.91
3130AYPN0 FEDERAL HOME LOAN BANKS
4.125 01/15/2027 6,500,000.00 01/26/2024
4.20%
6,486,090.00
6,495,127.64
100.64
3.49%
6,541,613.00
123,635.42
1.04%
46,485.36
Aa1/AA+
AA+
1.04
0.99
3133EP6K6 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 03/26/2027 7,000,000.00 04/18/2024
4.88%
6,928,250.00
6,969,919.93
101.18
3.51%
7,082,502.00
83,125.00
1.13%
112,582.07
Aa1/AA+
AA+
1.23
1.18
3133ERDS7 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.75 05/06/2027 5,500,000.00 06/27/2024
4.57%
5,525,630.00
5,512,052.50
101.63
3.49%
5,589,760.00
39,913.19
0.89%
77,707.50
Aa1/AA+
AA+
1.34
1.29
3133ENL99
FEDERAL FARM CREDIT
BANKS FUNDING CORP 3.375
09/15/2027
3,500,000.00 09/08/2022
3.85%
3,487,890.00
3,495,890.66
99.79
3.50%
3,492,688.50
34,781.25
0.56%
(3,202.16)
Aa1/AA+
AA+
1.71
1.63
5 of 25
City of Chula Vista | As of December 31, 2025
HOLDINGS REPORT
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
3133ENW63
FEDERAL FARM CREDIT
BANKS FUNDING CORP 4.375
10/27/2027
3,500,000.00 10/24/2022
4.92%
3,498,460.00
3,499,440.92
101.44
3.55%
3,550,533.00
27,222.22
0.56%
51,092.08
Aa1/AA+
AA+
1.82
1.73
3133ERGL9 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 06/07/2028 6,000,000.00 06/25/2024
4.44%
6,012,120.00
6,007,463.63
102.23
3.53%
6,133,728.00
18,000.00
0.97%
126,264.37
Aa1/AA+
AA+
2.44
2.28
3133EPUN3 FEDERAL FARM CREDIT BANKS
FUNDING CORP 4.5 08/28/2028 5,250,000.00 08/30/2023
4.35%
5,281,920.00
5,266,975.00
102.20
3.62%
5,365,536.75
80,718.75
0.85%
98,561.75
Aa1/AA+
AA+
2.66
2.45
3133EPC45
FEDERAL FARM CREDIT
BANKS FUNDING CORP 4.625
11/13/2028
6,400,000.00 11/10/2023
4.70%
6,379,648.00
6,388,336.87
102.66
3.64%
6,569,939.20
39,466.67
1.04%
181,602.33
Aa1/AA+
AA+
2.87
2.65
3133ERAK7
FEDERAL FARM CREDIT
BANKS FUNDING CORP 4.375
04/10/2029
5,000,000.00 04/25/2024
4.76%
4,915,350.00
4,944,112.29
102.41
3.59%
5,120,565.00
49,218.75
0.81%
176,452.71
Aa1/AA+
AA+
3.27
3.00
Total Agency 91,566,000.00 4.24%
91,257,839.16
91,466,406.67
100.94
3.58%
92,418,876.52
878,860.98
14.69%
952,469.86
1.34
1.26
CASH
PP3112$02 Neighborhood Bank CASH 4,232,974.73 --
4.10%
4,232,974.73
4,232,974.73
1.00
4.10%
4,232,974.73
0.00
0.67%
0.00
NA/NA
NA
0.00
0.00
CCYUSD Receivable 69,185.28 --69,185.28
69,185.28
1.00 69,185.28
0.00
0.01%
0.00
Aaa/AAA
AAA
0.00
0.00
CCYUSD Receivable 13,008.51 --13,008.51
13,008.51
1.00 13,008.51
0.00
0.00%
0.00
Aaa/AAA
AAA
0.00
0.00
CCYUSD Cash 6,824.89 --
0.00%
6,824.89
6,824.89
1.00
0.00%
6,824.89
0.00
0.00%
0.00
Aaa/AAA
AAA
0.00
0.00
CCYUSD Receivable 744.23 --744.23
744.23
1.00 744.23
0.00
0.00%
0.00
Aaa/AAA
AAA
0.00
0.00
Total Cash 4,322,737.64 4.09%
4,322,737.64
4,322,737.64
1.00
4.09%
4,322,737.64
0.00
0.69%
0.00
0.00
0.00
CORPORATE
713448DF2 PEPSICO INC 2.85 02/24/2026 1,872,000.00 10/04/2022
4.31%
1,785,214.08
1,868,217.56
99.85
3.88%
1,869,120.86
18,821.40
0.30%
903.30
A1/A+
NA
0.15
0.14
17275RBC5 CISCO SYSTEMS INC 2.95
02/28/2026 3,500,000.00 11/22/2022
4.31%
3,353,490.00
3,492,883.10
99.83
4.00%
3,494,078.00
35,277.08
0.56%
1,194.90
A1/AA-
NA
0.16
0.15
6 of 25
City of Chula Vista | As of December 31, 2025
HOLDINGS REPORT
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
87612EBE5 TARGET CORP 2.5 04/15/2026 3,751,000.00 --
4.26%
3,539,669.29
3,733,430.70
99.61
3.84%
3,736,536.14
19,796.94
0.59%
3,105.45
A2/A
A
0.29
0.28
69371RR32 PACCAR FINANCIAL CORP 1.1
05/11/2026 3,000,000.00 10/03/2022
4.39%
2,673,850.54
2,967,781.59
99.00
3.92%
2,969,994.00
4,583.33
0.47%
2,212.41
A1/A+
NA
0.36
0.35
931142EM1 WALMART INC 3.05 07/08/2026 1,900,000.00 09/23/2022
4.09%
1,829,939.40
1,890,483.10
99.66
3.71%
1,893,616.00
27,848.19
0.30%
3,132.90
Aa2/AA
AA
0.52
0.50
17275RBL5 CISCO SYSTEMS INC 2.5
09/20/2026 1,150,000.00 10/04/2022
4.04%
1,084,622.50
1,138,162.47
99.07
3.82%
1,139,348.70
8,065.97
0.18%
1,186.23
A1/AA-
NA
0.72
0.70
654106AF0 NIKE INC 2.375 11/01/2026 1,035,000.00 08/02/2022
3.13%
1,003,598.10
1,028,849.11
98.83
3.81%
1,022,928.80
4,096.88
0.16%
(5,920.32)
A2/A+
NA
0.84
0.81
438516BL9 HONEYWELL INTERNATIONAL
INC 2.5 11/01/2026 1,185,000.00 08/01/2022
3.02%
1,160,092.98
1,180,124.45
98.92
3.83%
1,172,206.74
4,937.50
0.19%
(7,917.71)
A2/A
A
0.84
0.81
452308AX7 ILLINOIS TOOL WORKS INC 2.65
11/15/2026 1,421,000.00 10/14/2022
4.82%
1,305,557.96
1,396,411.54
99.08
3.73%
1,407,925.38
4,811.66
0.22%
11,513.84
A1/A+
NA
0.87
0.85
002824BF6 ABBOTT LABORATORIES 3.75
11/30/2026 1,000,000.00 10/17/2022
4.69%
964,363.96
992,115.08
100.00
3.75%
999,968.00
3,229.17
0.16%
7,852.92
Aa3/AA-
NA
0.91
0.89
26442CAS3 DUKE ENERGY CAROLINAS LLC
2.95 12/01/2026 7,500,000.00 08/23/2024
4.29%
7,285,500.00
7,413,370.01
99.27
3.77%
7,445,332.50
18,437.50
1.18%
31,962.49
Aa3/A
NA
0.92
0.89
78016HZT0 ROYAL BANK OF CANADA 4.875
01/19/2027 6,500,000.00 01/26/2024
4.75%
6,521,645.00
6,507,640.59
101.03
3.86%
6,567,262.00
142,593.75
1.04%
59,621.41
A1/A
AA-
1.05
0.99
61746BEF9 MORGAN STANLEY 3.625
01/20/2027 2,500,000.00 09/20/2023
5.62%
2,350,375.00
2,452,750.00
99.74
3.88%
2,493,490.00
40,529.51
0.40%
40,740.00
A1/A-
A+
1.05
1.00
46647PBA3 JPMORGAN CHASE & CO 3.96
01/29/2027 2,500,000.00 09/20/2023
6.18%
2,396,750.00
2,496,638.37
99.98
5.12%
2,499,555.00
41,800.00
0.40%
2,916.63
A1/A
AA-
1.08
0.07
06048WS84 BANK OF AMERICA CORP 2.75
03/02/2027 4,000,000.00 02/28/2022
2.75%
4,000,000.00
4,000,000.00
98.81
3.80%
3,952,428.00
36,361.11
0.63%
(47,572.00)
A1/A-
AA-
1.17
1.12
808513BY0 CHARLES SCHWAB CORP 2.45
03/03/2027 2,205,000.00 08/01/2022
3.34%
2,121,115.19
2,183,665.72
98.42
3.84%
2,170,211.72
17,707.38
0.34%
(13,454.00)
A2/A-
A
1.17
1.13
713448ER5 PEPSICO INC 2.625 03/19/2027 1,935,000.00 08/02/2022
3.14%
1,892,043.00
1,923,765.09
98.76
3.67%
1,911,093.08
14,391.56
0.30%
(12,672.02)
A1/A+
NA
1.21
1.17
22160KAM7 COSTCO WHOLESALE CORP 3.0
05/18/2027 3,200,000.00 11/21/2022
4.29%
3,030,376.96
3,148,047.12
99.26
3.55%
3,176,464.00
11,466.67
0.50%
28,416.88
Aa3/AA
AA
1.38
1.33
58933YBC8 MERCK & CO INC 1.7 06/10/2027 3,200,000.00 08/02/2022
3.16%
2,988,096.00
3,137,253.47
97.38
3.59%
3,116,057.60
3,173.33
0.50%
(21,195.87)
Aa3/A+
NA
1.44
1.40
437076DB5 HOME DEPOT INC 4.875
06/25/2027 7,500,000.00 07/08/2024
4.76%
7,522,650.00
7,510,979.86
101.69
3.69%
7,626,825.00
6,093.75
1.21%
115,845.14
A2/A
A
1.48
1.34
7 of 25
City of Chula Vista | As of December 31, 2025
HOLDINGS REPORT
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
63743HFT4
NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP
4.12 09/16/2027
7,500,000.00 09/10/2024
4.04%
7,517,400.00
7,509,681.20
100.46
3.84%
7,534,537.50
90,125.00
1.20%
24,856.30
A2/A-
A
1.71
1.54
857477CP6 STATE STREET CORP 4.33
10/22/2027 7,500,000.00 11/08/2024
4.53%
7,458,525.00
7,474,551.19
101.01
3.74%
7,575,870.00
62,243.75
1.20%
101,318.81
Aa3/A
AA-
1.81
1.63
46647PEE2 JPMORGAN CHASE & CO 5.571
04/22/2028 6,000,000.00 05/15/2024
5.19%
6,061,500.00
6,027,358.88
101.99
4.27%
6,119,358.00
64,066.50
0.97%
91,999.12
A1/A
AA-
2.31
1.24
90331HPS6 US BANK NA 4.73 05/15/2028 6,500,000.00 05/22/2025
4.85%
6,504,550.00
6,503,590.97
101.01
4.24%
6,565,630.50
39,285.28
1.04%
62,039.53
A2/A+
A+
2.37
1.31
06406RCH8 BANK OF NEW YORK MELLON
CORP 4.441 06/09/2028 5,000,000.00 06/17/2025
4.41%
5,003,250.00
5,002,362.00
100.76
4.10%
5,037,750.00
13,569.72
0.80%
35,388.00
Aa3/A
AA-
2.44
1.38
532457DB1 ELI LILLY AND CO 4.0 10/15/2028 5,000,000.00 09/15/2025
3.82%
5,024,350.00
5,021,970.59
100.67
3.74%
5,033,670.00
72,777.78
0.80%
11,699.41
Aa3/A+
NA
2.79
2.51
61690DK72 MORGAN STANLEY BANK NA
5.016 01/12/2029 6,500,000.00 02/04/2025
4.89%
6,522,100.00
6,515,290.48
101.84
4.25%
6,619,496.00
153,057.67
1.05%
104,205.52
Aa3/A+
AA-
3.03
1.87
24422EXH7 JOHN DEERE CAPITAL CORP 4.5
01/16/2029 6,250,000.00 01/11/2024
4.56%
6,234,375.00
6,240,498.43
101.60
3.94%
6,349,825.00
128,906.25
1.01%
109,326.57
A1/A
A+
3.04
2.76
74340XBL4 PROLOGIS LP 4.375 02/01/2029 5,000,000.00 11/06/2025
4.06%
5,044,250.00
5,042,017.20
100.96
4.04%
5,047,785.00
91,145.83
0.80%
5,767.80
A2/A
NA
3.09
2.59
14913UAJ9 CATERPILLAR FINANCIAL
SERVICES CORP 4.85 02/27/2029 7,000,000.00 06/04/2024
4.77%
7,024,150.00
7,016,113.98
102.75
3.91%
7,192,570.00
116,938.89
1.14%
176,456.02
A2/A
A+
3.16
2.86
09290DAA9 BLACKROCK INC 4.7 03/14/2029 6,800,000.00 03/08/2024
4.56%
6,843,180.00
6,827,377.75
102.22
3.95%
6,951,109.60
94,992.22
1.10%
123,731.85
Aa3/AA-
NA
3.20
2.84
89115A2Y7 TORONTO-DOMINION BANK
4.994 04/05/2029 6,800,000.00 03/28/2024
4.98%
6,804,148.00
6,802,703.24
102.52
4.16%
6,971,122.00
81,124.76
1.11%
168,418.76
A2/A-
AA-
3.26
2.96
58989V2H6 MET TOWER GLOBAL FUNDING
5.25 04/12/2029 7,000,000.00 04/18/2024
5.49%
6,928,250.00
6,952,706.64
103.31
4.16%
7,231,665.00
80,645.83
1.15%
278,958.36
Aa3/AA-
AA-
3.28
2.96
91324PFG2 UNITEDHEALTH GROUP INC 4.8
01/15/2030 7,500,000.00 03/13/2025
4.74%
7,517,475.00
7,514,527.29
102.42
4.14%
7,681,732.50
166,000.00
1.22%
167,205.21
A2/A+
A
4.04
3.50
Total Corporate 151,204,000.00 4.51%
149,296,452.96
150,913,318.75
100.93
3.96%
152,576,562.61
1,718,902.17
24.25%
1,663,243.86
2.08
1.73
LAIF
90LAIF$00 Local Agency Investment Fund
State Pool 16,325,663.48 --
3.98%
16,325,663.48
16,325,663.48
1.00
3.98%
16,325,663.48
0.00
2.59%
0.00
NA/NA
NA
0.00
0.00
8 of 25
City of Chula Vista | As of December 31, 2025
HOLDINGS REPORT
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
Total LAIF 16,325,663.48 3.98%
16,325,663.48
16,325,663.48
1.00
3.98%
16,325,663.48
0.00
2.59%
0.00
0.00
0.00
LOCAL GOV
INVESTMENT
POOL
90SDCP$00 County of San Diego Investment
Pool 26,978.36 --
3.83%
26,978.36
26,978.36
1.00
3.83%
26,978.36
0.00
0.00%
0.00
NA/NA
AAA
0.00
0.00
Total Local Gov
Investment Pool 26,978.36 3.83%
26,978.36
26,978.36
1.00
3.83%
26,978.36
0.00
0.00%
0.00
0.00
0.00
MONEY MARKET
FUND
X9USDJPMR JPMORGAN:US GVT MM INST 3,478,587.36 --
3.62%
3,478,587.36
3,478,587.36
1.00
3.62%
3,478,587.36
0.00
0.55%
0.00
Aaa/
AAAm
AAA
0.00
0.00
X9USDJPMR JPMORGAN:US GVT MM INST 61,734.32 --
3.62%
61,734.32
61,734.32
1.00
3.62%
61,734.32
0.00
0.01%
0.00
Aaa/
AAAm
AAA
0.00
0.00
Total Money
Market Fund 3,540,321.68 3.62%
3,540,321.68
3,540,321.68
1.00
3.62%
3,540,321.68
0.00
0.56%
0.00
0.00
0.00
MUNICIPAL
BONDS
13063DMA3 CALIFORNIA ST 2.65 04/01/2026 3,200,000.00 05/05/2022
3.26%
3,127,936.00
3,195,454.97
99.74
3.69%
3,191,641.60
21,200.00
0.51%
(3,813.37)
Aa2/AA-
AA
0.25
0.24
817409N43 SEQUOIA CALIF UN HIGH SCH
DIST 1.831 07/01/2026 2,050,000.00 10/26/2022
4.66%
1,856,131.50
2,023,891.22
99.13
3.61%
2,032,171.15
18,767.75
0.32%
8,279.93
Aaa/NA
NA
0.50
0.49
446222US8
HUNTINGTON BEACH CALIF
UN HIGH SCH DIST 1.208
08/01/2026
3,510,000.00 08/01/2022
3.23%
3,241,765.80
3,471,077.58
98.57
3.71%
3,459,964.95
17,667.00
0.55%
(11,112.63)
NA/AA-
NA
0.58
0.57
544351MS5 LOS ANGELES CALIF 3.5
09/01/2026 1,085,000.00 09/23/2022
4.30%
1,053,144.40
1,079,620.63
99.92
3.61%
1,084,176.49
12,658.33
0.17%
4,555.85
Aa2/AA-
NA
0.67
0.64
20772KEX3 CONNECTICUT ST 3.8
09/15/2026 3,000,000.00 09/14/2022
3.91%
2,987,880.00
2,997,869.47
100.07
3.69%
3,002,133.00
33,566.67
0.48%
4,263.53
Aa2/AA-
AA
0.71
0.68
9 of 25
City of Chula Vista | As of December 31, 2025
HOLDINGS REPORT
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
91412HGF4 UNIVERSITY CALIF REVS 1.316
05/15/2027 1,340,000.00 08/30/2022
3.81%
1,194,878.00
1,297,873.25
96.78
3.75%
1,296,917.66
2,253.28
0.21%
(955.59)
Aa2/AA
AA
1.37
1.33
769036BP8 RIVERSIDE CALIF PENSION OBLIG
2.64 06/01/2027 1,500,000.00 11/03/2022
5.27%
1,341,120.00
1,450,938.31
98.42
3.80%
1,476,298.50
3,300.00
0.23%
25,360.19
NA/AA
AA
1.42
1.37
817409N50 SEQUOIA CALIF UN HIGH SCH
DIST 1.951 07/01/2027 2,150,000.00 08/30/2022
3.83%
1,969,658.00
2,094,243.07
97.70
3.54%
2,100,597.30
20,973.25
0.33%
6,354.23
Aaa/NA
NA
1.50
1.46
786318LF0 SADDLEBACK VY UNI SCH DIST
CALIF 2.4 08/01/2027 1,805,000.00 08/10/2022
3.34%
1,726,681.05
1,780,129.31
98.12
3.63%
1,771,076.83
18,050.00
0.28%
(9,052.48)
Aa1/NA
NA
1.58
1.52
797272QS3 SAN DIEGO CALIF CMNTY
COLLEGE DIST 2.407 08/01/2027 1,300,000.00 08/04/2022
3.25%
1,249,326.00
1,283,961.11
98.28
3.53%
1,277,663.40
13,037.92
0.20%
(6,297.71)
Aa1/AAA
NA
1.58
1.52
62451FKL3
MOUNTAIN VIEW-WHISMAN
CALIF SCH DIST 1.912
09/01/2027
970,000.00 10/13/2022
4.91%
844,928.20
927,374.63
97.32
3.59%
943,972.96
6,182.13
0.15%
16,598.33
Aaa/AAA
NA
1.67
1.61
13063EGT7 CALIFORNIA STATE 4.5
08/01/2029 6,000,000.00 11/22/2024
4.48%
6,005,880.00
6,004,497.68
102.47
3.76%
6,148,200.00
112,500.00
0.98%
143,702.32
Aa2/AA-
AA
3.58
3.23
Total Municipal
Bonds 27,910,000.00 3.97%
26,599,328.95
27,606,931.25
99.58
3.68%
27,784,813.84
280,156.33
4.42%
177,882.59
1.52
1.41
NEGOTIABLE CD
01882MAC6 Alliant Credit Union 5.0
12/30/2027 249,000.00 12/21/2022
5.00%
249,000.00
249,000.00
102.49
3.70%
255,198.11
68.22
0.04%
6,198.11
NA/NA
NA
2.00
1.89
Total Negotiable
CD 249,000.00 5.00%
249,000.00
249,000.00
102.49
3.70%
255,198.11
68.22
0.04%
6,198.11
2.00
1.89
SUPRANATIONAL
4581X0CU0
INTER-AMERICAN
DEVELOPMENT BANK 2.0
06/02/2026
3,000,000.00 08/03/2022
3.09%
2,881,139.04
2,987,085.87
99.26
3.79%
2,977,896.00
4,833.33
0.47%
(9,189.87)
Aaa/AAA
AAA
0.42
0.41
45950KCX6 INTERNATIONAL FINANCE CORP
0.75 10/08/2026 4,000,000.00 01/20/2022
1.61%
3,842,373.68
3,974,369.70
97.79
3.70%
3,911,632.00
6,916.67
0.62%
(62,737.70)
Aaa/AAA
NA
0.77
0.75
4581X0EM6
INTER-AMERICAN
DEVELOPMENT BANK 4.375
02/01/2027
6,000,000.00 12/06/2023
4.40%
5,996,640.00
5,998,839.97
100.76
3.65%
6,045,438.00
109,375.00
0.96%
46,598.03
Aaa/AAA
NA
1.09
1.03
459058KW2
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPM 4.625 08/01/2028
5,000,000.00 10/04/2023
4.88%
4,945,600.00
4,970,869.28
102.53
3.59%
5,126,705.00
96,354.17
0.81%
155,835.72
Aaa/AAA
NA
2.59
2.38
10 of 25
City of Chula Vista | As of December 31, 2025
HOLDINGS REPORT
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
459058LR2
INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPM 4.125 03/20/2030
5,000,000.00 03/27/2025
4.21%
4,981,050.00
4,983,958.17
101.49
3.74%
5,074,405.00
57,864.58
0.81%
90,446.83
Aaa/AAA
NA
4.22
3.80
Total
Supranational 23,000,000.00 3.82%
22,646,802.72
22,915,122.99
100.62
3.68%
23,136,076.00
275,343.75
3.68%
220,953.01
1.97
1.81
US TREASURY
912797RJ8 UNITED STATES TREASURY
01/15/2026 4,000,000.00 08/14/2025
4.07%
3,932,845.75
3,993,855.17
99.87
3.59%
3,994,888.00
0.00
0.63%
1,032.83
P-1/A-1+
F1+
0.04
0.04
91282CJV4 UNITED STATES TREASURY 4.25
01/31/2026 8,000,000.00 09/04/2024
4.00%
8,026,875.00
8,001,571.64
100.04
3.68%
8,003,200.00
142,282.61
1.27%
1,628.36
Aa1/AA+
AA+
0.08
0.08
912797RT6 UNITED STATES TREASURY
02/12/2026 5,800,000.00 09/23/2025
3.83%
5,715,408.81
5,774,802.62
99.59
3.65%
5,776,289.60
0.00
0.92%
1,486.98
P-1/A-1+
F1+
0.12
0.11
9128286F2 UNITED STATES TREASURY 2.5
02/28/2026 5,000,000.00 10/09/2024
4.13%
4,891,210.94
4,987,530.11
99.81
3.71%
4,990,250.00
42,472.38
0.79%
2,719.89
Aa1/AA+
AA+
0.16
0.16
912797RV1 UNITED STATES TREASURY
03/05/2026 6,500,000.00 10/24/2025
3.77%
6,414,426.42
6,458,208.25
99.39
3.61%
6,460,434.50
0.00
1.03%
2,226.25
P-1/A-1+
F1+
0.18
0.17
91282CGR6 UNITED STATES TREASURY 4.625
03/15/2026 5,000,000.00 11/03/2023
4.73%
4,987,695.31
4,998,955.53
100.19
3.63%
5,009,370.00
68,991.71
0.80%
10,414.47
Aa1/AA+
AA+
0.20
0.20
912797SZ1 UNITED STATES TREASURY
03/17/2026 5,000,000.00 11/19/2025
3.85%
4,939,054.38
4,960,932.29
99.28
3.57%
4,964,035.00
0.00
0.79%
3,102.71
P-1/A-1+
F1+
0.21
0.20
912797TG2 UNITED STATES TREASURY
04/07/2026 4,200,000.00 12/09/2025
3.71%
4,150,199.08
4,159,484.00
99.07
3.61%
4,160,940.00
0.00
0.66%
1,456.00
P-1/A-1+
F1+
0.27
0.26
91282CGV7 UNITED STATES TREASURY 3.75
04/15/2026 2,400,000.00 09/11/2024
3.77%
2,399,250.00
2,399,865.52
100.05
3.55%
2,401,132.80
19,285.71
0.38%
1,267.28
Aa1/AA+
AA+
0.29
0.28
91282CHB0 UNITED STATES TREASURY 3.625
05/15/2026 5,000,000.00 11/28/2023
4.69%
4,877,148.44
4,981,668.03
100.03
3.53%
5,001,355.00
23,532.46
0.79%
19,686.97
Aa1/AA+
AA+
0.37
0.36
91282CHH7 UNITED STATES TREASURY 4.125
06/15/2026 5,000,000.00 11/28/2023
4.69%
4,933,398.44
4,988,170.87
100.28
3.49%
5,013,910.00
9,632.55
0.80%
25,739.13
Aa1/AA+
AA+
0.45
0.44
912810EX2 UNITED STATES TREASURY 6.75
08/15/2026 3,500,000.00 11/22/2022
4.11%
3,821,152.34
3,553,289.59
101.93
3.57%
3,567,403.00
89,235.73
0.57%
14,113.41
Aa1/AA+
AA+
0.62
0.59
912828U24 UNITED STATES TREASURY 2.0
11/15/2026 5,000,000.00 09/15/2025
3.68%
4,905,078.13
4,928,976.11
98.68
3.56%
4,933,935.00
12,983.43
0.78%
4,958.89
Aa1/AA+
AA+
0.87
0.85
91282CJP7 UNITED STATES TREASURY 4.375
12/15/2026 6,500,000.00 02/13/2024
4.44%
6,489,082.03
6,496,329.03
100.78
3.53%
6,550,986.00
13,281.25
1.04%
54,656.97
Aa1/AA+
AA+
0.96
0.92
11 of 25
City of Chula Vista | As of December 31, 2025
HOLDINGS REPORT
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
912828V98 UNITED STATES TREASURY 2.25
02/15/2027 3,200,000.00 09/20/2023
4.67%
2,959,125.00
3,120,548.07
98.62
3.52%
3,155,750.40
27,195.65
0.50%
35,202.33
Aa1/AA+
AA+
1.13
1.08
91282CMV0 UNITED STATES TREASURY 3.875
03/31/2027 8,000,000.00 11/06/2025
3.61%
8,028,437.50
8,025,364.69
100.43
3.51%
8,034,688.00
79,203.30
1.28%
9,323.31
Aa1/AA+
AA+
1.25
1.19
91282CKJ9 UNITED STATES TREASURY 4.5
04/15/2027 9,000,000.00 12/15/2025
3.53%
9,112,500.00
9,108,788.66
101.23
3.51%
9,110,745.00
86,785.71
1.45%
1,956.34
Aa1/AA+
AA+
1.29
1.23
91282CEN7 UNITED STATES TREASURY 2.75
04/30/2027 10,500,000.00 --
4.65%
9,882,773.44
10,257,820.31
99.03
3.50%
10,398,286.50
49,454.42
1.65%
140,466.19
Aa1/AA+
AA+
1.33
1.28
91282CKZ3 UNITED STATES TREASURY 4.375
07/15/2027 6,000,000.00 02/04/2025
4.23%
6,020,156.25
6,012,682.58
101.33
3.48%
6,079,686.00
121,263.59
0.97%
67,003.42
Aa1/AA+
AA+
1.54
1.45
91282CNP2 UNITED STATES TREASURY 3.875
07/31/2027 8,000,000.00 11/06/2025
3.58%
8,039,375.00
8,035,942.95
100.58
3.49%
8,046,560.00
129,728.26
1.28%
10,617.05
Aa1/AA+
AA+
1.58
1.50
91282CLG4 UNITED STATES TREASURY 3.75
08/15/2027 8,000,000.00 08/07/2024
3.85%
7,978,437.50
7,988,362.16
100.41
3.48%
8,033,128.00
113,315.22
1.28%
44,765.84
Aa1/AA+
AA+
1.62
1.54
91282CPB1 UNITED STATES TREASURY 3.5
09/30/2027 10,000,000.00 10/15/2025
3.50%
9,999,609.38
9,999,651.51
100.02
3.49%
10,001,950.00
89,423.08
1.59%
2,298.49
Aa1/AA+
AA+
1.75
1.66
91282CLQ2 UNITED STATES TREASURY 3.875
10/15/2027 10,000,000.00 10/17/2025
3.46%
10,079,296.88
10,071,312.51
100.67
3.48%
10,066,800.00
83,035.71
1.60%
(4,512.51)
Aa1/AA+
AA+
1.79
1.70
91282CFZ9 UNITED STATES TREASURY 3.875
11/30/2027 6,000,000.00 10/23/2023
4.86%
5,782,500.00
5,898,654.87
100.71
3.49%
6,042,654.00
20,439.56
0.96%
143,999.13
Aa1/AA+
AA+
1.91
1.82
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 6,000,000.00 12/06/2023
4.20%
5,927,812.50
5,964,562.50
100.75
3.48%
6,044,766.00
642.27
0.96%
80,203.50
Aa1/AA+
AA+
2.00
1.91
91282CGH8 UNITED STATES TREASURY 3.5
01/31/2028 6,000,000.00 12/06/2023
4.20%
5,840,859.38
5,920,219.74
100.02
3.49%
6,001,170.00
87,880.43
0.95%
80,950.26
Aa1/AA+
AA+
2.08
1.96
9128283W8 UNITED STATES TREASURY 2.75
02/15/2028 6,400,000.00 11/10/2023
4.67%
5,931,250.00
6,166,378.62
98.49
3.49%
6,303,500.80
66,478.26
1.00%
137,122.18
Aa1/AA+
AA+
2.13
2.02
91282CMS7 UNITED STATES TREASURY 3.875
03/15/2028 6,000,000.00 08/14/2025
3.68%
6,028,359.38
6,024,179.15
100.80
3.49%
6,048,282.00
69,364.64
0.96%
24,102.85
Aa1/AA+
AA+
2.21
2.07
91282CGT2 UNITED STATES TREASURY 3.625
03/31/2028 6,500,000.00 02/04/2025
4.26%
6,379,902.34
6,414,365.15
100.27
3.50%
6,517,264.00
60,200.89
1.04%
102,898.85
Aa1/AA+
AA+
2.25
2.12
91282CMW8 UNITED STATES TREASURY 3.75
04/15/2028 8,000,000.00 04/15/2025
3.84%
7,979,687.50
7,984,510.56
100.52
3.51%
8,041,560.00
64,285.71
1.28%
57,049.44
Aa1/AA+
AA+
2.29
2.16
9128284N7 UNITED STATES TREASURY 2.875
05/15/2028 6,500,000.00 02/04/2025
4.27%
6,225,019.53
6,300,955.56
98.57
3.51%
6,407,323.00
24,262.78
1.02%
106,367.44
Aa1/AA+
AA+
2.37
2.26
91282CCR0 UNITED STATES TREASURY 1.0
07/31/2028 8,000,000.00 09/24/2024
3.50%
7,284,687.50
7,520,409.70
93.83
3.52%
7,506,248.00
33,478.26
1.19%
(14,161.70)
Aa1/AA+
AA+
2.58
2.50
12 of 25
City of Chula Vista | As of December 31, 2025
HOLDINGS REPORT
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
91282CNU1 UNITED STATES TREASURY 3.625
08/15/2028 6,000,000.00 08/14/2025
3.69%
5,988,750.00
5,990,176.78
100.25
3.52%
6,015,234.00
82,153.53
0.96%
25,057.22
Aa1/AA+
AA+
2.62
2.45
91282CJA0 UNITED STATES TREASURY 4.625
09/30/2028 6,000,000.00 10/23/2023
4.82%
5,949,375.00
5,971,837.56
102.83
3.53%
6,169,686.00
70,899.73
0.98%
197,848.44
Aa1/AA+
AA+
2.75
2.54
91282CJF9 UNITED STATES TREASURY 4.875
10/31/2028 6,500,000.00 01/26/2024
4.02%
6,737,148.44
6,641,169.54
103.54
3.54%
6,730,295.00
54,271.41
1.07%
89,125.46
Aa1/AA+
AA+
2.84
2.61
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 5,000,000.00 02/04/2025
4.31%
4,901,171.88
4,924,058.39
100.57
3.55%
5,028,320.00
517.96
0.80%
104,261.61
Aa1/AA+
AA+
3.00
2.81
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 7,000,000.00 04/18/2024
4.68%
6,830,195.31
6,888,644.96
101.66
3.58%
7,115,941.00
73,774.04
1.13%
227,296.04
Aa1/AA+
AA+
3.25
2.99
91282CKT7 UNITED STATES TREASURY 4.5
05/31/2029 7,000,000.00 06/02/2025
3.98%
7,134,257.81
7,114,736.10
102.88
3.60%
7,201,250.00
27,692.31
1.14%
86,513.90
Aa1/AA+
AA+
3.41
3.13
91282CEV9 UNITED STATES TREASURY 3.25
06/30/2029 7,500,000.00 07/29/2024
4.09%
7,222,558.59
7,302,886.84
98.86
3.60%
7,414,455.00
673.34
1.18%
111,568.16
Aa1/AA+
AA+
3.50
3.27
91282CLC3 UNITED STATES TREASURY 4.0
07/31/2029 9,000,000.00 09/12/2025
3.60%
9,129,726.56
9,119,825.17
101.29
3.61%
9,116,370.00
150,652.17
1.45%
(3,455.17)
Aa1/AA+
AA+
3.58
3.26
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 7,500,000.00 10/28/2024
4.08%
7,307,812.50
7,353,693.66
99.54
3.63%
7,465,140.00
67,067.31
1.19%
111,446.34
Aa1/AA+
AA+
3.75
3.45
91282CFT3 UNITED STATES TREASURY 4.0
10/31/2029 9,500,000.00 01/07/2025
4.46%
9,311,113.28
9,349,600.16
101.31
3.63%
9,624,317.00
65,082.87
1.53%
274,716.84
Aa1/AA+
AA+
3.83
3.50
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 7,000,000.00 12/04/2024
4.09%
7,011,757.81
7,009,226.75
101.73
3.65%
7,120,862.00
25,384.62
1.13%
111,635.25
Aa1/AA+
AA+
3.91
3.58
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 8,000,000.00 12/30/2024
4.37%
8,000,312.50
8,000,249.86
102.67
3.65%
8,213,752.00
966.85
1.31%
213,502.14
Aa1/AA+
AA+
4.00
3.65
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 7,000,000.00 06/02/2025
4.02%
6,993,710.94
6,994,442.31
101.27
3.68%
7,089,138.00
24,615.38
1.13%
94,695.69
Aa1/AA+
AA+
4.41
4.00
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 12,000,000.00 12/04/2025
3.68%
11,902,968.75
11,904,407.43
98.99
3.73%
11,879,064.00
36,923.08
1.89%
(25,343.43)
Aa1/AA+
AA+
4.91
4.45
Total US Treasury 308,000,000.00 4.05%
304,383,473.52
306,063,303.55
100.30
3.56%
308,852,314.60
2,308,810.17
49.08%
2,789,011.05
2.11
1.97
Total Portfolio 626,144,701.16 4.17%
618,648,598.47
623,429,784.36
96.71
3.68%
629,239,542.84
5,462,141.63
100.00%
5,809,758.48
1.88
1.70
Total Market Value
+ Accrued 634,701,684.47
13 of 25
Maturity Dec 2025 Sept 2025 Change Dec 2024 Dec 2023 Dec 2022 Dec 2021
3-Month 3.67%4.02%-0.35%4.25%4.23%4.41%0.73%
1-Year 3.48%3.68%-0.20%
2-Year 3.47%3.60%-0.13%
3-Year 3.55%3.61%-0.06%Jan-25 4.22 Jul-25 3.94
5-Year 3.73%3.74%-0.01%Feb-25 3.99 Aug-25 3.59
10-Year 4.18%4.16%0.02%Mar-25 3.89 Sep-25 3.60
Apr-25 3.60 Oct-25 3.60
May-25 3.89 Nov-25 3.47
Jun-25 3.72 Dec-25 3.47
12 Month Average 3.75
Change20242025
December
November
October
262,419.61$
544,994.30$
534,162.92$
2,108,591.16$
Investment Report for the Quarter Ended December 31, 2025
U.S. Treasury Yields and Interest Earnings
2-Year U.S. Treasury Yield - 12 Month Average
Total for Quarter 1,341,576.83$ 5,269,650.89$ 6,611,227.72$
U.S. Treasury Yields - Quarterly Comparison 2-Year U.S. Treasury Yield - Historical Data
Interest Earnings - Quarter Ending 12/31/2024 & 12/31/2025
1,058,840.08$
2,102,219.65$
2,371,010.77$
1,603,834.38$
2,636,382.57$
14 of 25
City of Chula Vista|10/01/2025 Through 12/31/2025|
Buy
Settlement
Date CUSIP Quantity Security Description Acq/Disp Yield Book Value S&P Rating Security Type
10/16/2025 91282CPB1 10,000,000.00 UNITED STATES TREASURY 3.5 09/30/2027 3.5014 (10,014,994.00) AA+ US Treasury
10/20/2025 91282CLQ2 10,000,000.00 UNITED STATES TREASURY 3.875 10/15/2027 3.4582 (10,084,619.68) AA+ US Treasury
10/27/2025 912797RV1 6,500,000.00 UNITED STATES TREASURY 03/05/2026 3.7747 (6,414,426.42) A-1+ US Treasury
11/07/2025 74340XBL4 5,000,000.00 PROLOGIS LP 4.375 02/01/2029 4.0568 (5,102,583.33) A Corporate
11/07/2025 91282CMV0 8,000,000.00 UNITED STATES TREASURY 3.875 03/31/2027 3.6094 (8,060,800.14) AA+ US Treasury
11/07/2025 91282CNP2 8,000,000.00 UNITED STATES TREASURY 3.875 07/31/2027 3.5767 (8,122,771.74) AA+ US Treasury
11/20/2025 912797SZ1 5,000,000.00 UNITED STATES TREASURY 03/17/2026 3.8495 (4,939,054.38) A-1+ US Treasury
12/05/2025 91282CPN5 12,000,000.00 UNITED STATES TREASURY 3.5 11/30/2030 3.6789 (11,908,737.98) AA+ US Treasury
12/10/2025 912797TG2 4,200,000.00 UNITED STATES TREASURY 04/07/2026 3.7118 (4,150,199.08) A-1+ US Treasury
12/16/2025 91282CKJ9 9,000,000.00 UNITED STATES TREASURY 4.5 04/15/2027 3.5260 (9,181,483.52) AA+ US Treasury
77,700,000.00
15 of 25
City of Chula Vista|10/01/2025 Through 12/31/2025|
Maturity
Settlement
Date CUSIP Quantity Security Description Acq/Disp Yield Book Value S&P Rating Security Type
10/01/2025 419792ZL3 (2,290,000.00) HAWAII ST 0.852 10/01/2025 2.6985 2,290,000.00 AA+ Municipal Bonds
10/14/2025 3130ARGJ4 (3,500,000.00) FEDERAL HOME LOAN BANKS 2.5 10/14/2025 2.4991 3,500,000.00 AA+ Agency
10/14/2025 912797RC3 (10,000,000.00) UNITED STATES TREASURY 10/14/2025 4.3306 10,000,000.00 A-1+ US Treasury
10/15/2025 91282CFP1 (6,750,000.00) UNITED STATES TREASURY 4.25 10/15/2025 4.3116 6,750,000.00 AA+ US Treasury
10/16/2025 89236THP3 (3,000,000.00) TOYOTA MOTOR CREDIT CORP 0.8 10/16/2025 1.4074 3,000,000.00 A+ Corporate
10/20/2025 3133ENUZ1 (3,200,000.00) FEDERAL FARM CREDIT BANKS FUNDING CORP 3.09 10/20/2025 3.2407 3,200,000.00 AA+ Agency
10/23/2025 912797QG5 (6,000,000.00) UNITED STATES TREASURY 10/23/2025 4.2081 6,000,000.00 A-1+ US Treasury
10/29/2025 3130ARLT6 (3,500,000.00) FEDERAL HOME LOAN BANKS 3.1 10/29/2025 3.0986 3,500,000.00 AA+ Agency
11/01/2025 13077DML3 (775,000.00) CALIFORNIA ST UNIV REV 0.885 11/01/2025 1.2757 775,000.00 AA- Municipal Bonds
11/01/2025 13077DQD7 (2,500,000.00) CALIFORNIA ST UNIV REV 0.862 11/01/2025 3.3724 2,500,000.00 AA- Municipal Bonds
11/06/2025 912797QP5 (11,000,000.00) UNITED STATES TREASURY 11/06/2025 4.1768 11,000,000.00 A-1+ US Treasury
11/07/2025 3135G06G3 (3,500,000.00) FEDERAL NATIONAL MORTGAGE ASSOCIATION 0.5 11/07/2025 1.1786 3,500,000.00 AA+ Agency
11/12/2025 912797RN9 (10,000,000.00) UNITED STATES TREASURY 11/12/2025 4.2685 10,000,000.00 A-1+ US Treasury
11/17/2025 3133ENEG1 (2,030,000.00) FEDERAL FARM CREDIT BANKS FUNDING CORP 1.05 11/17/2025 1.0648 2,030,000.00 AA+ Agency
11/18/2025 912797RP4 (5,000,000.00) UNITED STATES TREASURY 11/18/2025 4.3417 5,000,000.00 A-1+ US Treasury
12/04/2025 912797QS9 (5,500,000.00) UNITED STATES TREASURY 12/04/2025 3.9436 5,500,000.00 A-1+ US Treasury
12/09/2025 912797RW9 (4,000,000.00) UNITED STATES TREASURY 12/09/2025 4.2310 4,000,000.00 A-1+ US Treasury
12/14/2025 92826CAD4 (2,500,000.00) VISA INC 3.15 12/14/2025 2.7212 2,500,000.00 AA- Corporate
12/15/2025 91282CGA3 (6,000,000.00) UNITED STATES TREASURY 4.0 12/15/2025 4.1436 6,000,000.00 AA+ US Treasury
(91,045,000.00)
Called
Settlement
Date CUSIP Quantity Security Description Acq/Disp Yield Book Value S&P Rating Security Type
11/25/2025 3130ASUB3 (3,500,000.00) FEDERAL HOME LOAN BANKS 4.0 08/25/2026 3.9992 3,500,000.00 AA+ Agency
(3,500,000.00)
16 of 25
City of Chula Vista Reporting Date:12/31/2025
Portfolio Maturity Distribution 0 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 Days
Issuer Original Par Maturity Date Days to Maturity Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years
Farm Credit System 3,500,000.00 1/27/2026 27 3,500,000.00$ -$ -$ -$ -$ -$
Farm Credit System 3,500,000.00 3/10/2026 69 3,500,000.00$ -$ -$ -$ -$ -$
Farm Credit System 6,000,000.00 5/8/2026 128 6,000,000.00$ -$ -$ -$ -$ -$
Federal Home Loan Banks 5,000,000.00 6/12/2026 163 5,000,000.00$ -$ -$ -$ -$ -$
Farm Credit System 3,000,000.00 7/27/2026 208 -$ 3,000,000.00$ -$ -$ -$ -$
Farm Credit System 1,666,000.00 8/24/2026 236 -$ 1,666,000.00$ -$ -$ -$ -$
Farm Credit System 6,000,000.00 9/1/2026 244 -$ 6,000,000.00$ -$ -$ -$ -$
Federal Home Loan Banks 5,250,000.00 9/11/2026 254 -$ 5,250,000.00$ -$ -$ -$ -$
Farm Credit System 1,000,000.00 9/28/2026 271 -$ 1,000,000.00$ -$ -$ -$ -$
Federal Home Loan Banks 3,750,000.00 10/21/2026 294 -$ 3,750,000.00$ -$ -$ -$ -$
Federal Home Loan Banks 2,600,000.00 11/23/2026 327 -$ 2,600,000.00$ -$ -$ -$ -$
Federal Home Loan Banks 1,650,000.00 12/11/2026 345 -$ 1,650,000.00$ -$ -$ -$ -$
Federal Home Loan Banks 6,500,000.00 1/15/2027 380 -$ -$ 6,500,000.00$ -$ -$ -$
Farm Credit System 7,000,000.00 3/26/2027 450 -$ -$ 7,000,000.00$ -$ -$ -$
Farm Credit System 5,500,000.00 5/6/2027 491 -$ -$ 5,500,000.00$ -$ -$ -$
Farm Credit System 3,500,000.00 9/15/2027 623 -$ -$ 3,500,000.00$ -$ -$ -$
Farm Credit System 3,500,000.00 10/27/2027 665 -$ -$ 3,500,000.00$ -$ -$ -$
Farm Credit System 6,000,000.00 6/7/2028 889 -$ -$ -$ 6,000,000.00$ -$ -$
Farm Credit System 5,250,000.00 8/28/2028 971 -$ -$ -$ 5,250,000.00$ -$ -$
Farm Credit System 6,400,000.00 11/13/2028 1048 -$ -$ -$ 6,400,000.00$ -$ -$
Farm Credit System 5,000,000.00 4/10/2029 1196 -$ -$ -$ -$ 5,000,000.00$ -$
Agency 18,000,000.00$ 24,916,000.00$ 26,000,000.00$ 17,650,000.00$ 5,000,000.00$ -$
Commercial Paper -$ -$ -$ -$ -$ -$
PepsiCo, Inc.1,872,000.00 2/24/2026 55 1,872,000.00$ -$ -$ -$ -$ -$
Cisco Systems, Inc.3,500,000.00 2/28/2026 59 3,500,000.00$ -$ -$ -$ -$ -$
Target Corporation 1,850,000.00 4/15/2026 105 1,850,000.00$ -$ -$ -$ -$ -$
Target Corporation 1,901,000.00 4/15/2026 105 1,901,000.00$ -$ -$ -$ -$ -$
PACCAR Inc 3,000,000.00 5/11/2026 131 3,000,000.00$ -$ -$ -$ -$ -$
Walmart Inc.1,900,000.00 7/8/2026 189 -$ 1,900,000.00$ -$ -$ -$ -$
Cisco Systems, Inc.1,150,000.00 9/20/2026 263 -$ 1,150,000.00$ -$ -$ -$ -$
NIKE, Inc.1,035,000.00 11/1/2026 305 -$ 1,035,000.00$ -$ -$ -$ -$
Honeywell International Inc.1,185,000.00 11/1/2026 305 -$ 1,185,000.00$ -$ -$ -$ -$
Illinois Tool Works Inc.1,421,000.00 11/15/2026 319 -$ 1,421,000.00$ -$ -$ -$ -$
Abbott Laboratories 1,000,000.00 11/30/2026 334 -$ 1,000,000.00$ -$ -$ -$ -$
Duke Energy Corporation 7,500,000.00 12/1/2026 335 -$ 7,500,000.00$ -$ -$ -$ -$
Royal Bank of Canada 6,500,000.00 1/19/2027 384 -$ -$ 6,500,000.00$ -$ -$ -$
Morgan Stanley 2,500,000.00 1/20/2027 385 -$ -$ 2,500,000.00$ -$ -$ -$
JPMorgan Chase & Co.2,500,000.00 1/29/2027 394 -$ -$ 2,500,000.00$ -$ -$ -$
Bank of America Corporation 4,000,000.00 3/2/2027 426 -$ -$ 4,000,000.00$ -$ -$ -$
The Charles Schwab Corporation 2,205,000.00 3/3/2027 427 -$ -$ 2,205,000.00$ -$ -$ -$
PepsiCo, Inc.1,935,000.00 3/19/2027 443 -$ -$ 1,935,000.00$ -$ -$ -$
Costco Wholesale Corporation 3,200,000.00 5/18/2027 503 -$ -$ 3,200,000.00$ -$ -$ -$
Merck & Co., Inc.3,200,000.00 6/10/2027 526 -$ -$ 3,200,000.00$ -$ -$ -$
The Home Depot, Inc.7,500,000.00 6/25/2027 541 -$ -$ 7,500,000.00$ -$ -$ -$
National Rural Utilities Cooperative 7,500,000.00 9/16/2027 624 -$ -$ 7,500,000.00$ -$ -$ -$
State Street Corporation 7,500,000.00 10/22/2027 660 -$ -$ 7,500,000.00$ -$ -$ -$
17 of 25
City of Chula Vista Reporting Date:12/31/2025
Portfolio Maturity Distribution 0 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 Days
Issuer Original Par Maturity Date Days to Maturity Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years
JPMorgan Chase & Co.6,000,000.00 4/22/2028 843 -$ -$ -$ 6,000,000.00$ -$ -$
U.S. Bancorp 6,500,000.00 5/15/2028 866 -$ -$ -$ 6,500,000.00$ -$ -$
BNY Mellon Corp 5,000,000.00 6/9/2028 891 -$ -$ -$ 5,000,000.00$ -$ -$
Eli Lilly and Company 5,000,000.00 10/15/2028 1019 -$ -$ -$ 5,000,000.00$ -$ -$
Morgan Stanley 6,500,000.00 1/12/2029 1108 -$ -$ -$ -$ 6,500,000.00$ -$
Deere & Company 6,250,000.00 1/16/2029 1112 -$ -$ -$ -$ 6,250,000.00$ -$
Prologis, Inc.5,000,000.00 2/1/2029 1128 -$ -$ -$ -$ 5,000,000.00$ -$
Caterpillar Inc.7,000,000.00 2/27/2029 1154 -$ -$ -$ -$ 7,000,000.00$ -$
BlackRock, Inc.6,800,000.00 3/14/2029 1169 -$ -$ -$ -$ 6,800,000.00$ -$
The Toronto-Dominion Bank 6,800,000.00 4/5/2029 1191 -$ -$ -$ -$ 6,800,000.00$ -$
Met Tower Global Funding 7,000,000.00 4/12/2029 1198 -$ -$ -$ -$ 7,000,000.00$ -$
UnitedHealth Group Incorporated 7,500,000.00 1/15/2030 1476 -$ -$ -$ -$ -$ 7,500,000.00$
Corporate 12,123,000.00$ 15,191,000.00$ 48,540,000.00$ 22,500,000.00$ 45,350,000.00$ 7,500,000.00$
State of California 3,200,000.00 4/1/2026 91 3,200,000.00$ -$ -$ -$ -$ -$
Sequoia Union High School District 2,050,000.00 7/1/2026 182 2,050,000.00$ -$ -$ -$ -$ -$
Huntington Beach Union High School D 3,510,000.00 8/1/2026 213 -$ 3,510,000.00$ -$ -$ -$ -$
City of Los Angeles 1,085,000.00 9/1/2026 244 -$ 1,085,000.00$ -$ -$ -$ -$
State of Connecticut 3,000,000.00 9/15/2026 258 -$ 3,000,000.00$ -$ -$ -$ -$
University of California 1,340,000.00 5/15/2027 500 -$ -$ 1,340,000.00$ -$ -$ -$
City of Riverside, California 1,500,000.00 6/1/2027 517 -$ -$ 1,500,000.00$ -$ -$ -$
Sequoia Union High School District 2,150,000.00 7/1/2027 547 -$ -$ 2,150,000.00$ -$ -$ -$
Saddleback Valley Unified School Dis 1,805,000.00 8/1/2027 578 -$ -$ 1,805,000.00$ -$ -$ -$
San Diego Community College District 1,300,000.00 8/1/2027 578 -$ -$ 1,300,000.00$ -$ -$ -$
Mountain View Whisman School Distric 970,000.00 9/1/2027 609 -$ -$ 970,000.00$ -$ -$ -$
State of California 6,000,000.00 8/1/2029 1309 -$ -$ -$ -$ 6,000,000.00$ -$
Municipal Bonds 5,250,000.00$ 7,595,000.00$ 9,065,000.00$ -$ 6,000,000.00$ -$
Alliant Credit Union 249,000.00 12/30/2027 729 -$ -$ 249,000.00$ -$ -$ -$
Negotiable CD -$ -$ 249,000.00$ -$ -$ -$
Inter-American Development Bank 3,000,000.00 6/2/2026 153 3,000,000.00$ -$ -$ -$ -$ -$
International Finance Corporation 4,000,000.00 10/8/2026 281 -$ 4,000,000.00$ -$ -$ -$ -$
Inter-American Development Bank 6,000,000.00 2/1/2027 397 -$ -$ 6,000,000.00$ -$ -$ -$
International Bank for Recon and Dev 5,000,000.00 8/1/2028 944 -$ -$ -$ 5,000,000.00$ -$ -$
International Bank for Recon and Dev 5,000,000.00 3/20/2030 1540 -$ -$ -$ -$ -$ 5,000,000.00$
Supranational 3,000,000.00$ 4,000,000.00$ 6,000,000.00$ 5,000,000.00$ -$ 5,000,000.00$
Government of The United States 4,000,000.00 1/15/2026 15 4,000,000.00$ -$ -$ -$ -$ -$
Government of The United States 8,000,000.00 1/31/2026 31 8,000,000.00$ -$ -$ -$ -$ -$
Government of The United States 5,800,000.00 2/12/2026 43 5,800,000.00$ -$ -$ -$ -$ -$
Government of The United States 5,000,000.00 2/28/2026 59 5,000,000.00$ -$ -$ -$ -$ -$
Government of The United States 6,500,000.00 3/5/2026 64 6,500,000.00$ -$ -$ -$ -$ -$
Government of The United States 5,000,000.00 3/15/2026 74 5,000,000.00$ -$ -$ -$ -$ -$
Government of The United States 5,000,000.00 3/17/2026 76 5,000,000.00$ -$ -$ -$ -$ -$
Government of The United States 4,200,000.00 4/7/2026 97 4,200,000.00$ -$ -$ -$ -$ -$
Government of The United States 2,400,000.00 4/15/2026 105 2,400,000.00$ -$ -$ -$ -$ -$
Government of The United States 5,000,000.00 5/15/2026 135 5,000,000.00$ -$ -$ -$ -$ -$
Government of The United States 5,000,000.00 6/15/2026 166 5,000,000.00$ -$ -$ -$ -$ -$
Government of The United States 3,500,000.00 8/15/2026 227 -$ 3,500,000.00$ -$ -$ -$ -$
18 of 25
City of Chula Vista Reporting Date:12/31/2025
Portfolio Maturity Distribution 0 - 182 Days 183 - 365 Days 366 - 730 Days 731 - 1095 Days 1096 - 1460 Days 1461 - 1825 Days
Issuer Original Par Maturity Date Days to Maturity Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years
Government of The United States 5,000,000.00 11/15/2026 319 -$ 5,000,000.00$ -$ -$ -$ -$
Government of The United States 6,500,000.00 12/15/2026 349 -$ 6,500,000.00$ -$ -$ -$ -$
Government of The United States 3,200,000.00 2/15/2027 411 -$ -$ 3,200,000.00$ -$ -$ -$
Government of The United States 8,000,000.00 3/31/2027 455 -$ -$ 8,000,000.00$ -$ -$ -$
Government of The United States 9,000,000.00 4/15/2027 470 -$ -$ 9,000,000.00$ -$ -$ -$
Government of The United States 5,000,000.00 4/30/2027 485 -$ -$ 5,000,000.00$ -$ -$ -$
Government of The United States 5,500,000.00 4/30/2027 485 -$ -$ 5,500,000.00$ -$ -$ -$
Government of The United States 6,000,000.00 7/15/2027 561 -$ -$ 6,000,000.00$ -$ -$ -$
Government of The United States 8,000,000.00 7/31/2027 577 -$ -$ 8,000,000.00$ -$ -$ -$
Government of The United States 8,000,000.00 8/15/2027 592 -$ -$ 8,000,000.00$ -$ -$ -$
Government of The United States 10,000,000.00 9/30/2027 638 -$ -$ 10,000,000.00$ -$ -$ -$
Government of The United States 10,000,000.00 10/15/2027 653 -$ -$ 10,000,000.00$ -$ -$ -$
Government of The United States 6,000,000.00 11/30/2027 699 -$ -$ 6,000,000.00$ -$ -$ -$
Government of The United States 6,000,000.00 12/31/2027 730 -$ -$ 6,000,000.00$ -$ -$ -$
Government of The United States 6,000,000.00 1/31/2028 761 -$ -$ -$ 6,000,000.00$ -$ -$
Government of The United States 6,400,000.00 2/15/2028 776 -$ -$ -$ 6,400,000.00$ -$ -$
Government of The United States 6,000,000.00 3/15/2028 805 -$ -$ -$ 6,000,000.00$ -$ -$
Government of The United States 6,500,000.00 3/31/2028 821 -$ -$ -$ 6,500,000.00$ -$ -$
Government of The United States 8,000,000.00 4/15/2028 836 -$ -$ -$ 8,000,000.00$ -$ -$
Government of The United States 6,500,000.00 5/15/2028 866 -$ -$ -$ 6,500,000.00$ -$ -$
Government of The United States 8,000,000.00 7/31/2028 943 -$ -$ -$ 8,000,000.00$ -$ -$
Government of The United States 6,000,000.00 8/15/2028 958 -$ -$ -$ 6,000,000.00$ -$ -$
Government of The United States 6,000,000.00 9/30/2028 1004 -$ -$ -$ 6,000,000.00$ -$ -$
Government of The United States 6,500,000.00 10/31/2028 1035 -$ -$ -$ 6,500,000.00$ -$ -$
Government of The United States 5,000,000.00 12/31/2028 1096 -$ -$ -$ -$ 5,000,000.00$ -$
Government of The United States 7,000,000.00 3/31/2029 1186 -$ -$ -$ -$ 7,000,000.00$ -$
Government of The United States 7,000,000.00 5/31/2029 1247 -$ -$ -$ -$ 7,000,000.00$ -$
Government of The United States 7,500,000.00 6/30/2029 1277 -$ -$ -$ -$ 7,500,000.00$ -$
Government of The United States 9,000,000.00 7/31/2029 1308 -$ -$ -$ -$ 9,000,000.00$ -$
Government of The United States 7,500,000.00 9/30/2029 1369 -$ -$ -$ -$ 7,500,000.00$ -$
Government of The United States 9,500,000.00 10/31/2029 1400 -$ -$ -$ -$ 9,500,000.00$ -$
Government of The United States 7,000,000.00 11/30/2029 1430 -$ -$ -$ -$ 7,000,000.00$ -$
Government of The United States 8,000,000.00 12/31/2029 1461 -$ -$ -$ -$ -$ 8,000,000.00$
Government of The United States 7,000,000.00 5/31/2030 1612 -$ -$ -$ -$ -$ 7,000,000.00$
Government of The United States 12,000,000.00 11/30/2030 1795 -$ -$ -$ -$ -$ 12,000,000.00$
US Treasury 55,900,000.00$ 15,000,000.00$ 84,700,000.00$ 65,900,000.00$ 59,500,000.00$ 27,000,000.00$
Neighborhood National Bank 4,232,974.73 8/13/2026 225 -$ 4,232,974.73$ -$ -$ -$ -$
Placement Service Deposits
Total Maturity 94,273,000.00$ 66,702,000.00$ 174,554,000.00$ 111,050,000.00$ 115,850,000.00$ 39,500,000.00$
601,929,000.00$
1.95 Weighted Average Maturity (in years)
4.19%Weighted Yield to Maturity
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City of Chula Vista
Corporate Bonds - Sector Distribution
Issuer Maturity Date CUSIP Purchase YTM Original Par GICS Sector
PepsiCo, Inc.2/24/2026 713448DF2 4.31 1,872,000.00 Consumer Staples
Cisco Systems, Inc.2/28/2026 17275RBC5 4.31 3,500,000.00 Information Technology
Target Corporation 4/15/2026 87612EBE5 4.26 1,850,000.00 Consumer Discretionary
Target Corporation 4/15/2026 87612EBE5 4.26 1,901,000.00 Consumer Discretionary
PACCAR Inc 5/11/2026 69371RR32 4.39 3,000,000.00 Financials
Walmart Inc.7/8/2026 931142EM1 4.09 1,900,000.00 Consumer Discretionary
Cisco Systems, Inc.9/20/2026 17275RBL5 4.04 1,150,000.00 Information Technology
NIKE, Inc.11/1/2026 654106AF0 3.13 1,035,000.00 Consumer Discretionary
Honeywell International Inc.11/1/2026 438516BL9 3.02 1,185,000.00 Industrials
Illinois Tool Works Inc.11/15/2026 452308AX7 4.82 1,421,000.00 Industrials
Abbott Laboratories 11/30/2026 002824BF6 4.69 1,000,000.00 Health Care
Duke Energy Corporation 12/1/2026 26442CAS3 4.29 7,500,000.00 Energy
Royal Bank of Canada 1/19/2027 78016HZT0 4.75 6,500,000.00 Financials
Morgan Stanley 1/20/2027 61746BEF9 5.62 2,500,000.00 Financials
JPMorgan Chase & Co.1/29/2027 46647PBA3 6.18 2,500,000.00 Financials
Bank of America Corporation 3/2/2027 06048WS84 2.75 4,000,000.00 Financials
The Charles Schwab Corporation 3/3/2027 808513BY0 3.34 2,205,000.00 Financials
PepsiCo, Inc.3/19/2027 713448ER5 3.14 1,935,000.00 Consumer Staples
Costco Wholesale Corporation 5/18/2027 22160KAM7 4.29 3,200,000.00 Consumer Discretionary
Merck & Co., Inc.6/10/2027 58933YBC8 3.16 3,200,000.00 Health Care
The Home Depot, Inc.6/25/2027 437076DB5 4.76 7,500,000.00 Consumer Discretionary
National Rural Utilities Cooperative 9/16/2027 63743HFT4 4.04 7,500,000.00 Utilities
State Street Corporation 10/22/2027 857477CP6 4.53 7,500,000.00 Financials
JPMorgan Chase & Co.4/22/2028 46647PEE2 5.19 6,000,000.00 Financials
U.S. Bancorp 5/15/2028 90331HPS6 4.85 6,500,000.00 Financials
BNY Mellon Corp 6/9/2028 06406RCH8 4.41 5,000,000.00 Financials
Eli Lilly and Company 10/15/2028 532457DB1 3.82 5,000,000.00 Health Care
Morgan Stanley 1/12/2029 61690DK72 4.89 6,500,000.00 Financials
Deere & Company 1/16/2029 24422EXH7 4.56 6,250,000.00 Industrials
Prologis, Inc.2/1/2029 74340XBL4 4.06 5,000,000.00 Real Estate
Caterpillar Inc.2/27/2029 14913UAJ9 4.77 7,000,000.00 Financials
BlackRock, Inc.3/14/2029 09290DAA9 4.56 6,800,000.00 Financials
The Toronto-Dominion Bank 4/5/2029 89115A2Y7 4.98 6,800,000.00 Financials
Met Tower Global Funding 4/12/2029 58989V2H6 5.49 7,000,000.00 Financials
UnitedHealth Group Incorporated 1/15/2030 91324PFG2 4.74 7,500,000.00 Health Care
151,204,000.00
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GICS Sector Amount Percent
Communication Services - 0.00%
Consumer Discretionary 17,386,000.00 11.50%
Consumer Staples 3,807,000.00 2.52%
Energy 7,500,000.00 4.96%
Financials 79,805,000.00 52.78%
Health Care 16,700,000.00 11.04%
Industrials 8,856,000.00 5.86%
Information Technology 4,650,000.00 3.08%
Materials - 0.00%
Real Estate 5,000,000.00 3.31%
Utilities 7,500,000.00 4.96%
Total 151,204,000.00 100.00%
Consumer Discretionary
11%
Consumer Staples
3%
Energy
5%
Financials
53%
Health Care
11%
Industrials
6%
Information Technology
3%
Real Estate
3%
Utilities
5%
CORPORATE BONDS - SECTOR DISTRIBUTION
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Investment Glossary
AGENCIES: Federal agency securities.
ASSET BACKED SECURITIES: Securities supported by pools of installment loans or leases
or by pools of revolving lines of credit.
ASKED: The price at which securities are offered. (The price at which a irm will sell a
security to an investor.)
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. The
drafts are drawn on a bank by an exporter or importer to obtain funds to pay for speci ic
merchandise. An acceptance is a high-grade negotiable instrument.
BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %).
BID: The price offered by a buyer of securities. (When you are selling securities, you ask for
a bid.)
BROKER: A broker brings buyers and sellers together for a commission. He does not take a
position.
CALLABLE: A callable security gives the issuer the option to call it from the investor prior to
its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the
issuer will likely call its current securities and reissue them at a lower rate of interest.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a speci ic maturity evidenced by a
certi icate. 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.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO): Classes of bonds that redistribute
the cash lows of mortgage securities (and whole loans) to create securities that have
different levels of prepayment risk, as compared to the underlying mortgage securities.
COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to
raise working capital. These negotiable instruments are purchased at a discount to par
value or at par value with interest bearing. Commercial paper is issued by corporations
such as General Motors Acceptance Corporation, IBM, Bank of America, etc.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and
selling for his own account.
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DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery
versus payment and delivery versus receipt. Delivery versus payment is delivery of
securities with an exchange of money for the securities. Delivery versus receipt is delivery
of securities with an exchange of a signed receipt for the securities.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering
independent returns.
FEDERAL AGENCIES: Agencies of the Federal government set up to supply credit to various
classes of institutions (e.g., S&L’s, small business irms, students, farmers, farm cooperatives,
and exporters).
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures
bank deposits, currently up to $250,000 per deposit.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and
consisting of a seven-member Board of Governors in Washington, D.C.; 12 regional banks and
about 5,700 commercial banks are members of the system.
FIDUCIARY: A person or organization that acts on behalf of another person(s) or
organization that puts their clients’ interest ahead of their own as they are bound both legally
and ethically to act in the other’s best interests.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without
a substantial loss of value. 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 AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political
subdivisions that are placed in the custody of the State Treasurer for investment and
reinvestment.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): An investment pool offered by a state
or local agency to public entities for the investment of public funds.
MARKET VALUE: The price at which a security is trading and could presumable be
purchased or sold.
MATURITY: The date upon which the principal or stated value of an investment becomes
due and payable. The investment’s term or remaining maturity is measured from the
settlement date to inal maturity.
MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and
principal cash lows from a speci ied pool of mortgages. Principal and interest payments
made on the mortgages are passed through to the holder of the security.
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NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS (NRSROs): Credit
rating agencies that issue credit ratings that the Securities and Exchange Commission (SEC)
permits other inancial irms to use for certain regulatory purposes.
NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the inancial
institution, bank or savings and loan, bought at par value with the promise to pay face value
plus accrued interest at maturity. They are high-grade negotiable instruments, paying a
higher interest rate than regular certi icates of deposit.
OFFER: The price asked by a seller of securities. (When you are buying securities, you ask
for an offer).
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of
market activity and positions and monthly inancial statements to the Federal Reserve Bank
of New York and are subject to its informal oversight. Primary dealers include Securities and
Exchange Commission (SEC)-registered securities broker/dealers, banks and a few
unregulated irms.
PRUDENT INVESTOR STANDARD: An investment standard. In some states, the law
requires that a iduciary, 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 that 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 yield obtainable on a security based on its purchase price or its
current market price.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and
valuables of all types and descriptions are held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues
following the initial distribution.
SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by Congress to protect
investors in securities transactions by administering securities legislation.
SEC RULE 15C3-1: See “Uniform Net Capital Rule”.
TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to
inance the national debt. Most bills are issued to mature in three months, six months, or one
year.
TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than
10 years.
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TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial
maturities of one year to ten years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that
member irms 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 irm, 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.
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CITY COUNCIL POLICIES
POLICY NAME:POLICY NUMBER:
Effective Date: Last Revised Date:
Status:Page:
I. BACKGROUND
City Council’s “Investment Policy and Guidelines” (the “Investment Policy”) Policy 220-01 was first adopted on July
26, 1994 and last updated on February 11, 2025. The Investment Policy provides guidelines, rules, and strategies for
managing the city’s public funds. Its primary goals are to ensure safety of principal, maintain liquidity for operational
needs, and obtain a market rate of return. The investment practices and policies of the City of Chula Vista are based
upon state law and prudent money management.
II. PURPOSE
This Investment Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista’s (the
“City”) cash balances, and outline policies to assist in maximizing the efficiency of the City’s cash management
system, while meeting the daily cash flow demands of the City.
III. POLICY
The investment practices and policies of the City of Chula Vista are based upon state law and prudent money
management.
IV. SCOPE
This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in IV.1 below. These
funds are accounted for in the City’s Comprehensive Annual Financial Report.
IV.1 FUNDS
The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds,
except for the employee’s retirement funds, which are administered separately, and those funds which are managed
separately by trustees appointed under indenture agreements. The Director of Finance/Treasurer will strive to maintain
the level of investment of this cash as close as possible to 100%. These funds are described in the City’s annual
financial report and include:
• General Fund
• Special Revenue Funds
• Capital Project Funds
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• Enterprise Funds
• Fiduciary Funds
• Any new fund created by the legislative body, unless specifically exempted
This Investment Policy applies to all transactions involving the financial assets and related activity of the forgoing
funds.
Bond proceeds shall be invested in the investments permitted by the applicable bond documents. If the bond
documents are silent as to the permitted investments, the bond proceeds will be invested in the securities
permitted by this Policy. Notwithstanding the other provisions of this Policy, the percentage limitations listed
elsewhere in this Policy do not apply to bond proceeds.
V. PRUDENCE
The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard”.
This shall be applied in the context of managing an overall portfolio.
The “prudent investor standard” is applied to local agencies, pursuant to California Government Code Section
53600.3 which provides, in pertinent part:
“ … 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…”
V.1 PERSONAL RESPONSIBILITY
The Director of Finance/Treasurer, Assistant Director of Finance, Treasury Manager and Finance Manager as
investment officers acting in accordance with written procedures and the Investment Policy and exercising due
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POLICY NAME:POLICY NUMBER:
Effective Date: Last Revised Date:
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diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes,
provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is
taken to control adverse developments.
VI. OBJECTIVE
Consistent with this aim, investments are made under the terms and conditions of California Government Code
Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are:
VI.1 SAFETY
Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall
be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this
objective, diversification is required in order that potential losses on individual securities do not exceed the income
generated from the remainder of the portfolio.
VI.2 LIQUIDITY
The City of Chula Vista’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating
requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as
applicable. Liquidity is essential to the safety of principal.
VI.3 RETURN ON INVESTMENTS
The City of Chula Vista’s investment portfolio shall be designed with the objective of attaining a market-average rate
of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk
parameters and the City’s cash flow needs. See also Section XVII.
VII. DELEGATION OF AUTHORITY
The City Council delegates responsibility for the investment program to the Director of Finance/Treasurer for a period
of one year. Subject to review, the City Council may renew the delegation of authority each year. The Director of
Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and
written procedures to regulate the activities of subordinate officials. The responsibility for the day-to-day investment
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of City funds will be delegated to the Assistant Director of Finance or their designee. The Director of
Finance/Treasurer may delegate day-to-day investment decision making and execution authority to an investment
advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided.
VIII. ETHICS AND CONFLICTS OF INTEREST
In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process
shall refrain from personal business activity that could conflict with proper execution of the investment program, or
which could impair their ability to make impartial investment decisions. Employees and investment officers, including
investment advisors, are required to file annual disclosure statements as required for “public officials who manage
public investments” [as defined and required by the Political Reform Act and related regulations, including
Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair
Political Practices Commission (FPPC)].
IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
For any transactions executed by the City, the City’s Director of Finance/Treasurer will maintain a list of the financial
institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual
review of their financial condition. The City will utilize Moody’s Securities or other such services to determine
financially sound institutions with which to do business. The City shall annually send a copy of the current Investment
Policy to all financial institutions and brokers/dealers approved to do business with the City.
As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s
Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited
for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured
industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the
investments set forth in Section X. To be eligible to receive local agency money, a bank, savings association, federal
association, or federally insured industrial loan company shall have received an overall rating of not less than
“satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of its record of
meeting the credit needs of California’s communities, including low- and moderate-income neighborhoods.
To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage
competitive bidding on transactions. Any transactions not executed directly with the issuer shall be made with
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Effective Date: Last Revised Date:
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approved brokers/dealers. In order to be approved by the City, the broker/dealer must meet the following criteria: (i)
the broker/dealer must be a “primary” dealer or regional broker/dealer that qualifies under Securities and Exchange
Commission Rule 15C3-1 (Uniform Net Capital Rule); (ii) the broker/dealer must be experienced in institutional
trading practices and familiar with the California Government Code as related to investments appropriate for the City;
and (iii) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and
financial institutions who desire to become qualified bidders for investment transactions must submit documents
relative to eligibility including U4 form for the broker, proof of Financial Industry Regulatory Authority (FINRA)
certification and a certification of having read and understood the City’s Investment Policy and agreeing to comply
with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized
(i.e. minimum capital requirements of $10,000,000 and five years of operation).
If the City has an investment advisor, the investment advisor may use its own list of authorized issuers and
broker/dealers to conduct transactions on behalf of the City.
X. AUTHORIZED AND SUITABLE INVESTMENTS
The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities.
Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on
the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased.
If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of
Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment.
Investments not specifically listed below are deemed inappropriate and prohibited:
A. BANKERS’ ACCEPTANCES. A maximum of 40% of the total portfolio may be invested in bankers’
acceptances. The maximum maturity is 180 days. No more than 30% of the agency’s moneys may be invested
in the bankers’ acceptances of any one commercial bank. See Government Code Section 53601(g).
B. NEGOTIABLE CERTIFICATES OF DEPOSIT. A maximum of 30% of the total portfolio may be invested in
negotiable certificates of deposit (NCD’s). The maximum maturity of a NCD issue shall be 5 years. These are
issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn
specified or variable rates of interest. Negotiable certificates of deposit (NCD’s) differ from other certificates of
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Effective Date: Last Revised Date:
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deposit by their liquidity. NCD’s are traded actively in secondary markets. See Government Code Section
53601(i).
C. COMMERCIAL PAPER. A maximum of 40% of the total portfolio may be invested in commercial paper. No
more than 10% of the City’s total investment assets may be invested in the commercial paper and the medium-
term notes of any single issuer. The maximum maturity is 270 397 days. Commercial paper of prime quality of
the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues
the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (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 higher, or the
equivalent, by 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, over collateralization, letters of
credit, or surety bond.
c. Has commercial paper that is rated in a rating category of “A-1” or higher, or equivalent, by a NRSRO.
See Government Code Section 53601(h).
D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA.
There is no limit on the percentage of the portfolio that can be invested in this category. See Government Code
Section 53601(a) and 53601(e).
E. OBLIGATIONS OF THE UNITED STATES TREASURY. United States Treasury Notes, bonds, bills or
certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment
of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category.
See Government Code Section 53601(b).
F. FEDERAL AGENCIES. Federal agency or United States government-sponsored enterprise obligations,
participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by
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federal agencies or United States government-sponsored enterprises. There is no limit on the percentage of the
portfolio that can be invested in this category. See Government Code Section 53601(f).
G. REPURCHASE AGREEMENT, maximum term 1 year. Investments in repurchase agreements may be made,
on any investment authorized in this section, when the term of the agreement does not exceed 1 year. A Master
Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City.
There is no limit on the percentage of the total portfolio that can be invested in this category. See Government
Code Section 53601(j).
H. REVERSE-REPURCHASE AGREEMENTS (Requires Council approval for each transaction). Per
Government Code Section 53601(j), reverse repurchase agreements or securities lending agreements may be
utilized only when all of the following conditions are met:
a) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned
and fully paid for by the local agency for a minimum of 30 days prior to sale.
b) The total of all reverse repurchase agreements and securities lending agreements on investments owned by
the local agency does not exceed 20% of the base value of the total portfolio.
c) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil
guaranteeing a minimum earning or spread for the entire period between the sale of a security using a
reverse repurchase agreement or securities lending agreement and the final maturity date of the same
security.
d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a
counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to
purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse
repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities
lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period
between the sale of a security using a reverse repurchase agreement or securities lending agreement and the
final maturity date of the same security.
e) Investments in reverse repurchase agreements, securities lending agreements, or similar investments in
which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the
security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a
nationally or state-chartered bank that has or has had a significant banking relationship with a local agency.
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f) For purposes of this policy, “significant banking relationship” means any of the following activities of a
bank:
i. Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes,
or other evidence of indebtedness.
ii. Financing of a local agency’s activities.
iii. Acceptance of a local agency’s securities or funds as deposits.
I. MEDIUM-TERM CORPORATE NOTES. A maximum of 30% of the total portfolio may be invested in
medium-term corporate notes, with a maximum remaining maturity of five years or less. Notes eligible for
investment shall be rated in a rating category of “A,” its equivalent or better by a NRSRO. See Government
Code Section 53601(k). No more than 10% of the City’s total investment assets may be invested in the
commercial paper and the medium-term notes of any single issuer.
J. NON-NEGOTIABLE CERTIFICATES OF DEPOSIT. The maximum maturity is 5 years. Certificates of
deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at
its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit
Insurance Corporation (FDIC) insurance. There is no limit on the percentage of the portfolio that can be
invested in this category.
K. OBLIGATIONS OF THE STATE OF CALIFORNIA. Including bonds payable solely out of revenues from a
revenue producing property owned, controlled or operated by the state, or by a department, board, agency or
authority of the state. The maximum maturity is 5 years. There is no limit on the percentage of the portfolio that
can be invested in this category. See Government Code Section 53601(d).
L. OBLIGATIONS OF THE OTHER 49 STATES. Including bonds payable solely out of revenues from a
revenue producing property owned, controlled or operated by any of these states, or by a department, board,
agency or authority of the state. The maximum maturity is 5 years. There is no limit on the percentage of the
portfolio that can be invested in this category. See Government Code Section 53601(d).
M. MONEY MARKET FUNDS. A maximum of 20% of the total portfolio may be invested in money market
funds. No more than 10% of the agency’s funds may be invested in shares of beneficial interest of any one
mutual fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management
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companies which invest in the securities and obligations as authorized by California Government Code Section
53601, subdivisions (a) to (k), inclusive, and subdivisions (m) to (q), inclusive. They must have the highest
rating from two NRSRO’s or have retained an investment advisor registered or exempt from registration with
the Securities and Exchange Commission with not less than five years of experience managing money market
mutual funds and with assets under management in excess of $500,000,000. The purchase price of the shares
may not include commission. See Government Code Section 53601(l).
N. SAN DIEGO COUNTY TREASURER’S POOLED MONEY FUND. Also known as the San Diego County
Investment Pool, the pool is a local government money fund created to invest the assets of the County of San
Diego and other public agencies located within the County. The three primary objectives of the County Pool are
to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the
funds within the guidelines of prudent risk management. Investment in the County Pool is highly liquid and the
City may invest with no portfolio percentage limit. See Government Code Section 27133.
O. THE LOCAL AGENCY INVESTMENT FUND (LAIF). LAIF is a special fund of the California State
Treasury through which any local government may pool investments. The City may invest up to the maximum
amount permitted by LAIF. $75 million in this fund. Investments in LAIF are highly liquid and may be
converted to cash within 24 hours. See Government Code Section 16429.1.
P. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (Local
Government Investment Pools [LGIP]). Per Government Code Section 53601(p), there is no limit on
the percentage of the portfolio that can be invested in this category. LGIP’s organized pursuant to
Government Code Section 6509.7 that invests in the securities and obligations authorized in
subdivisions (a) to (q) of California Government Code Section 53601, inclusive. Each share will
represent an equal proportional interest in the underlying pool of securities owned by the joint powers
authority. To be eligible under this section the joint powers authority issuing the shares will have
retained an investment adviser that meets all of the following criteria:
• The adviser is registered or exempt from registration with the Securities and Exchange
Commission.
• The adviser has not less than five years of experience investing in the securities and
obligations authorized in subdivisions (a) to (q) Government Code Section 53601, inclusive.
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• The adviser has assets under management in excess of five hundred million dollars
($500,000,000).
Q. ASSET BACKED SECURITIES (ABS). A maximum of 20% of the total portfolio may be invested in ABS.
The maximum maturity is five years. Securities eligible for investment under this subdivision not issued or
guaranteed by issuers identified in subdivision E and F, shall be rated in a rating category of “AA” or its
equivalent or better by an NRSRO. ABS constitutes a mortgage pass-through security, collateralized mortgage
obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer
receivable pass-through certificate, or consumer receivable-backed bond. See Government Code Section
53601(o).
R. SUPRANATIONALS. A maximum of 30% of the portfolio may be invested in supranationals. The maximum
maturity is five years. Securities eligible for purchase under this subdivision shall be United States 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 that are eligible for purchase and sale within the United States. Investments under this
subdivision shall be rated in a rating category of “AA,” its equivalent or better by an NRSRO. See Government
Code Section 53601(q).
S. PLACEMENT SERVICE DEPOSITS. A maximum of 30% of the total portfolio may be invested in placement
service deposits. The maximum maturity is 5 years. Deposits placed through a deposit placement service shall
meet the requirements under Government Code Section 53601.8 and 53635.8. The full amount of the principal
and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be
insured by federal deposit insurance.
T. COLLATERALIZED BANK DEPOSITS. Notes, bonds, or other obligations that are at all times
secured by a valid first priority security interest in securities of the types listed by California
Government Code Section 53651 as eligible securities for the purpose of securing local agency
deposits having a market value at least equal to that required by California Government Code Section
53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be
placed by delivery or book entry into the custody of a trust company or the trust department of a bank
that is not affiliated with the issuer of the secured obligation. The maximum maturity is 5 years. There
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is no limit on the percentage of the portfolio that can be invested in this category. See Government
Code Section 53601(n) and 53630 et seq.
X.1 INVESTMENT POOLS
The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government
investment pools and money market mutual funds prior to investing and performing at least a quarterly review
thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in
Section 16429.1 of the California Government Code as an allowable investment for local agencies even though
some of the individual investments of the pool are not allowed as a direct investment by a local agency.
XI. PORTFOLIO ADJUSTMENTS
Should any investment listed in section X exceed a percentage-of-portfolio limitation due to an incident such as
fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated,
the Director of Finance/Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected
length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified.
XII. COLLATERALIZATION
Under provisions of the California Government Code, California banks, and savings and loan associations are required
to secure the City’s deposits by pledging letters of credit issued by the Federal Home Loan Bank of San Francisco
with a value of 105% of the principal and accrued interest, government securities with a value of 110% of principal
and accrued interest or first trust deed mortgage notes having a value of 150% of the City’s total deposits. Collateral
will be handled as required by the California Government Code. The Director of Finance/Treasurer, at his or her
discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal
Deposit Insurance Corporation.
The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds
borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the
underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in
compliance if the value of the underlying securities is brought back up to 102% no later than the next business day.
Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping
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receipt) must be supplied to the City and retained. The right of collateral substitution is granted.
XIII. SAFEKEEPING AND CUSTODY
All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal
payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with
the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and
statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the
City has a financial institution hold the securities, a separate custodial agreement shall be required. All deliverable
securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis. For Repurchase
Agreements, the purchase may be delivered by book entry, physical delivery or by third-party custodial agreement
consistent with the Government Code. The transfer of securities to the counter party bank’s customer book entry
account may be used for book entry delivery.
XIV. DIVERSIFICATION
The City’s investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with
concentrating investments in specific security types, maturity segment, or in individual financial institutions. No more
than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S. Government
Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, Joint Power
Authorities (JPA’s), and local government investment pools (LGIP’s).
A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by
investing in those securities with an “A” or above rating and approved in the Investment Policy and by
diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s
cash flow.
B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of
interest rates, shall be mitigated by implementing a long-term investment strategy. It is explicitly recognized
herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be
considered within the context of overall investment return. The City’s investment portfolio will remain
sufficiently liquid to enable the City to meet all operating requirements which might be reasonably
anticipated.
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XV. MAXIMUM MATURITIES
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. The
City will not directly invest in securities maturing more than five (5) years from the date of purchasesettlement date,
unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an
investment program approved by the City Council at least three (3) months prior to the investment.
XVI. INTERNAL CONTROL
The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds
due to fraud, employee error, or misrepresentation by third parties. No investment personnel, including an investment
advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and
the procedure established by the Director of Finance/Treasurer.
The external auditors shall annually review the investments with respect to the Investment Policy. This review will
provide internal control by assuring compliance with policies and procedures for the investments that are selected for
testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or
maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department
and approved by the Director of Finance/Treasurer. To provide further protection of City funds, written procedures
prohibit the wiring of any City funds without the authorization of at least two of the following six designated City
staff:
1. Director of Finance/Treasurer
2. Assistant Director of Finance
3. Treasury Manager
4. Finance Manager
5. Revenue Manager
6. Budget and Analysis Manager
XVII. PERFORMANCE STANDARDS
The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and
economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes
a consideration only after the basic requirements of investment safety and liquidity have been met. In evaluating the
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performance of the City’s portfolio in complying with this policy, the City shall establish an appropriate performance
benchmark and compare the return of its portfolio to the return of the benchmark.
XVIII. REPORTING
The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council and City Manager
within 45 days following the end of each quarter. This report will include the following elements:
• Type of investment
• Institutional issuer
• Purchase date
• Date of maturity
• Amount of deposit or cost of the investment
• Face value of the investment
• Current market value of securities and source of valuation
• Rate of interest
• Interest earnings
• Statement relating the report to its compliance with the Statement of Investment Policy or the manner in
which the portfolio is not in compliance
• Statement on availability of funds to meet the next six month’s obligations
• Monthly and year-to-date budget amounts for interest income
• Percentage of portfolio by investment type
• Days to maturity for all investments
• Comparative report on interest yields
• Monthly transactions
• Compare portfolio total return to market benchmark return
In addition, a commentary on capital markets and economic conditions may be included with the report.
XIX. INVESTMENT POLICY REVIEW AND ADOPTION
This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its
consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current
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law and financial and economic trends. Each fiscal year, the Finance Director shall provide a copy of the City’s current
Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of
Chula Vista, the Council shall acknowledge the receipt of the Policy for the respective fiscal year.
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INVESTMENT GLOSSARY
AGENCIES: Federal agency securities.
ASSET BACKED SECURITIES: Securities supported by pools of installment loans or leases or by pools of
revolving lines of credit.
ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.)
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. The drafts are drawn on a bank by an
exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high-grade negotiable
instrument.
BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %).
BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.)
BROKER: A broker brings buyers and sellers together for a commission. He does not take a position.
CALLABLE: A callable security gives the issuer the option to call it from the investor prior to its maturity. The
main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current
securities and reissue them at a lower rate of interest.
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.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO): Classes of bonds that redistribute the cash
flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk,
as compared to the underlying mortgage securities.
COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to raise working
capital. These negotiable instruments are purchased at a discount to par value or at par value with interest
bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM,
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Bank of America, etc.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own
account.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment
and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the
securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
FEDERAL AGENCIES: Agencies of the Federal government set up to supply credit to various classes of
institutions (e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters).
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits,
currently up to $250,000 per deposit.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of
a seven-member Board of Governors in Washington, D.C.; 12 regional banks and about 5,700 commercial banks
are members of the system.
FIDUCIARY: A person or organization that acts on behalf of another person(s) or organization that puts their
clients’ interest ahead of their own as they are bound both legally and ethically to act in the other’s best interests.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss
of value. 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 AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that
are placed in the custody of the State Treasurer for investment and reinvestment.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP): An investment pool offered by a state or local
agency to public entities for the investment of public funds.
MARKET VALUE: The price at which a security is trading and could presumable be purchased or sold.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. The
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investment’s term or remaining maturity is measured from the settlement date to final maturity.
MORTGAGE PASS-THROUGH SECURITIES: A securitized participation in the interest and principal cash
flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed
through to the holder of the security.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS (NRSROs): Credit rating
agencies that issue credit ratings that the Securities and Exchange Commission (SEC) permits other financial
firms to use for certain regulatory purposes.
NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or
savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They
are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit.
OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer).
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and
positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its
informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities
broker/dealers, banks and a few unregulated firms.
PRUDENT INVESTOR STANDARD: 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 that 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 yield obtainable on a security based on its purchase price or its current market price.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all
types and descriptions are held in the bank’s vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial
distribution.
SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in
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securities transactions by administering securities legislation.
SEC RULE 15C3-1: See “Uniform Net Capital Rule”.
TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national
debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years.
TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of one year to
ten 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.
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HISTORY
DATE ACTION RESOLUTION NO.