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HomeMy WebLinkAbout2026-02-27; Investment Review Board; 03; Treasury Department ResourcesMeeting Date: Feb. 27, 2026 To: Investment Review Board From: Christian Peacox, City Treasurer Staff Contact: Katie Schroeder, Senior Accountant katie.schroeder@carlsbadca.gov, 442-339-5246 Subject: Treasury Department Resources District: All Recommended Action Receive informational report on Treasury Department resources. Executive Summary At the meeting of the Investment Review Board on Nov. 20, 2025, a motion was passed to bring forward a presentation of existing resources, as well as prospective options for additional resources. Explanation & Analysis The City Treasurer provides a direct voice of the people regarding the management of inactive cash and invested public funds within the city and its agencies. Activities of the City Treasurer’s Office are communicated through monthly reporting of the investment portfolio standings, activities and analyses; quarterly public meetings of the Investment Review Board; annual review and approval by City Council of the Investment Policy; and annual reporting of the portfolio performance with historical trends. The resources available to the City Treasurer’s Office are not stagnant. As the operating environment changes and market conditions fluctuate, the City Treasurer remains flexible in utilizing current resources. Consideration of additional resources is not a singular decision and is always evaluated for necessity while taking into consideration procurement requirements and budget availability to ensure net value aligns to the City Council’s strategic plan of fiscal health. Listed below is an overview of current resources and resources in consideration. Current resources Software: utilized for investment tracking, reporting and portfolio reconciliation. SymPro Excel INVESTMENT REVIEW BOARD Feb. 27, 2026 Item #3 Page 1 of 3 Custodial services: third-party custody and safekeeping services are contracted for investment securities. All city investments in custody are held in the name of the city and are segregated from securities owned by the firm.  Principal Custody Solutions Authorized financial institutions: Section 7.0 of the Investment Policy outlines the requirements that institutions must meet in order to provide the city with investment services. Approval to provide services does not oblige the city to do business with that institution. The following are currently approved brokerage firms of the city.  Mischler Financial Group Inc.  Multi-Bank Securities Inc.  Piper Sandler & Co.  Raymond James & Associates Inc  RBC Capital Markets LLC  Stifel Nicolaus & Co Inc.  U.S. Bancorp Advisors LLC Interdepartmental city support: all departments have an impact on the City Treasurer’s Office, some more directly than others, but acknowledging interdepartmental cooperation is essential city-wide to accomplish the central goals of the City Council. The following are examples of departments that have a direct line of support for the Treasury Department.  City Council  City Attorney  Communications  Finance  Information Technology Consideration of resources The resources listed below are potential options the city may consider to enhance levels of service. Ability to move forward with any one or more of these options would be subject to availability of appropriations and City Council approval.  Bloomberg terminal subscription  Alternate investment management software  Investment advisor Fiscal Analysis There is no fiscal impact from this action. Feb. 27, 2026 Item #3 Page 2 of 3 Next Steps The Treasury Department will continue to evaluate the needs of its operations to ensure the operational activities and decisions are in the best interest of the city and in line with City Council’s strategic goals. Environmental Evaluation The proposed action is not a “project” as defined by California Environmental Quality Act Section 21065 and CEQA Guidelines Section 15378(b)(5) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) and 15061(b)(3) because the proposed action to receive an informational report on Treasury Department resources is an organizational or administrative government activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Any subsequent action or direction stemming from the proposed action may require preparation of an environmental document in accordance with CEQA or the CEQA Guidelines. Exhibits None. Feb. 27, 2026 Item #3 Page 3 of 3 Treasury Department Resources Zach Korach, Finance Director February 27, 2026 TREASURY DEPARTMENT RESOURCES Current resources •Software •Custodial Services •Authorized financial institutions •Interdepartmental city support Consideration of resources SOFTWARE Primary uses: Investment detail tracking and reporting Primary uses: Report formatting and analysis CUSTODIAL SERVICES Asset servicing and safekeeping Reporting •Daily transactions •Market valuations •Monthly statements •GASB 40 statements (deposit and investment risk disclosure) Cash sweep AUTHORIZED FINANCIAL INSTITUTIONS INTERDEPARTMENTAL CITY SUPPORT CONSIDERATION OF RESOURCES •Investment advisor •Bloomberg terminal subscription •Alternate investment management software DISCUSSION & QUESTIONS