City Treasurer seeks reauthorization to invest $1.96B pool; council approves updated investment policy

The City Council unanimously reauthorized the City Treasurer's delegated authority to invest the City's pooled investment fund for calendar year 2026 and adopted a set of minor clarifications to the city's investment policy.

Chief Investment Officer Emmanuel Abrinos and Senior Investment Officer Stanley Martinez reported the pooled fund's market value as $1.96 billion as of Sept. 30 and said the fund earned $104.8 million in income for the 12 months ended June 30 (a roughly 4.43% annual yield). Martinez said the fund's liquidity component is typically about 35% and the longer-term portion about 65%, and presented comparisons showing San Diego's earned yield above peer funds in FY25.

Proposed policy edits included explicit language emphasizing principal safety and liquidity over return generation, clarifications about electronic dealer eligibility, extending a sunset date for the maximum commercial paper allocation to align with state law changes (SB 585), and stricter collateral rules and monthly revaluation requirements for repurchase agreements.

Public commenters welcomed the financial overview and suggested broader public education on investment mechanics; others raised budget-deficit context concerns. Council asked technical questions about the commercial paper allocation, seasonal usage, and revaluation for repurchase agreements; staff explained the reasons for staying in alignment with state code and ensuring flexibility for short-term liquidity needs.

Council moved and approved the policy changes and delegation 9-0.