FINANCE DEPARTMENT
DATE: October 21, 2025
TO: Honorable Mayor and City Council
VIA: Damien O’Bid, City Manager
FROM: Angela Courter, Administrator Services Director
SUBJECT: INVESTMENT REPORT FOR THE QUARTER ENDED
SEPTEMBER 30, 2025
Attached for your information is the quarterly report of investments as of September 30, 2025.
The total cash and investment portfolio book value (cost) held by the City as of September 30, 2025 was $14,921,727.
The cash and investments held by the City include the following components:
Managed Investment Portfolio ($6,220,368), State of CA Local Agency Investment Fund ($6,579), California Asset Management Program (CAMP) Pooled Investment Fund ($8,236,721), Sonoma County Investment Pool ($84,676), Cash/Time Deposits ($358,321), and accrued interest on investments ($15,062). (Earned interest is the interest earned on investments over a specific time period, accrued interest is the interest that an investment has earned, but hasn’t yet been received, and paid interest is the interest that has already been received as payment).
Cash and investments held by the City and the trustees continue to be invested in accordance with the Government Code and the Council Investment Policy as adopted on May 9, 2023.
Council Information
FY 2025-26 Q1 Quarter Investment Report
September 30, 2025
During the quarter, one Federal Agency Bond matured in the amount of $800,000. One new U.S. Treasury Note was purchased in the amount of $800,176.
Two-year Treasuries yielding 3.72% at the beginning of the quarter ended lower at the end of the quarter at 3.60%, which was a decrease of 12 basis points for the quarter.
As of September 30, 2025, the Weighted Yield to Maturity on the Managed Investment Portfolio was 4.13%.
At the end of this quarter, the Weighted Average Maturity of the Managed Investment Portfolio was 2.41 years.
The Federal Open Market Committee (FOMC) meets approximately every six weeks and determines the level of the Federal Funds Rate. At the September 17th meeting, the FOMC voted to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4-1/4 percent.
Summary from the September 17th meeting:
"Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.
In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4-1/4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary Council Information
FY 2025-26 Q1 Quarter Investment Report
September 30, 2025
policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments."
Finance staff hired Optimized Investment Partners in May 2023 to help improve the investment returns for the city and to ensure compliance with California Government Code by ensuring safety of principal and sufficient liquidity for operations. Ongoing portfolio management activity will continue to be performed in partnership with Optimized Investment Partners, the City Manager, and the Administrator Services Director.
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.
If you have any questions, please feel free to contact me at 707-665-4236.
Par Value (1) Market Value (2) Book Value (3)
Cash & Investments Held by City
Investment Portfolio
Managed Investments
U.S. Bank Custodial Cash Account $ 53,673 $ 53,673 $ 53,673 0.36% U.S. Treasury Bill/ Note 3,285,000 3,224,369 3,203,701 21.49% Federal Agency Bond 800,000 786,352 747,994 5.02%
Certificate of Deposit 2,215,000 2,243,147 2,215,000 14.86% Managed Investments Subtotal $ 6,353,673 $ 6,307,541 $ 6,220,368 41.73% Pooled Investments
State of CA Local Agency Investment Fund $ 6,579 $ 6,579 $ 6,579 0.04% CAMP 8,236,721 8,236,721 8,236,721 55.26%
Sonoma County Investment Pool 84,676 84,676 84,676 0.57% Pooled Investments Subtotal $ 8,327,976 $ 8,327,976 $ 8,327,976 55.87% Investment Portfolio Subtotal $ 14,681,648 $ 14,635,517 $ 14,548,344 97.60% Cash/Time Deposits $ 358,321 $ 358,321 $ 358,321 2.40%
Funds Available for Investment $ 15,039,969 $ 14,993,837 $ 14,906,665 100.00% Accrued Interest $ 15,062 $ 15,062 $ 15,062
Total Cash & Investments Held by City $ 15,055,032 $ 15,008,900 $ 14,921,727 Notes:
1. Par value is the principal amount of the investment on maturity.
2. Market values contained herein are received from sources we believe are reliable; however, we do not guarantee their accuracy.
3. Book value is par value of the security plus or minus any premium or discount on the security.
City of Cotati
Summary of Cash and Investments for the Quarter Ended September 30, 2025 Portfolio Assets % of Portfolio
*Note: Cash/time deposits not included in WYTM
Excludes Pooled Investments and U.S. Bank Custodial Cash Account Under 1 Year
Maturity Sep 2025 Jun 2025 Change 1 - 2 Years
3-Month 4.02% 4.41% -0.39% 2 - 3 Years
1-Year 3.68% 3.96% -0.28% 3 - 4 Years
2-Year 3.60% 3.72% -0.12% 4 - 5 Years
3-Year 3.61% 3.68% -0.07% Total
5-Year 3.74% 3.79% -0.05%
10-Year 4.16% 4.24% -0.08%
Jul
Aug
Sep 2025 Sep 2024 Sep 2023 Sep 2022 Sep
3.60% 3.66% 5.03% 4.22% Total for Quarter
Note: Interest Earnings figures do not include capital gains or losses $ 165,865 183,679 $ (17,814) $
$ (8,625) 60,612 $
$ 54,359 $ (4,513) 49,846 $
2-Year U.S. Treasury Yield - Historical Data 55,407 $ (4,676) $ $ 26% 1,615,000
$ 100% 6,300,000
Interest Earnings FY 24-25 FY 25-26 Change
$ 69,237
$ 60,083
$ 28% 1,783,000
$ 4% 248,000
$ 14% 870,000
U.S. Treasury Yields - Quarterly Comparison $ 28% 1,784,000 Book Value (COST) 14,548,344 $
Market Value 14,635,517 $
Weighted Average Maturity (in years) 2.41
Weighted Yield to Maturity* 4.13%
Portfolio Maturity PAR Maturing % Maturing
City of Cotati
Investment Report for the Quarter Ended September 30, 2025 Investment Portfolio Summary and Key Statistics
Portfolio Key Statistics
PAR Value 14,681,648 $
55.26%
21.49%
14.86%
5.02%
2.40%
0.57% 0.36%
0.04% CAMP 55.26%
U.S. TREASURY BILL/NOTE 21.49%
CERTIFICATE OF DEPOSIT 14.86%
FEDERAL AGENCY BOND 5.02%
CASH/TIME DEPOSITS 2.40%
Sonoma County Investment Pool 0.57%
INVESTMENT CASH ACCOUNT 0.36%
LOCAL AGENCY INVESTMENT FUND 0.04%
0%
5%
10%
15%
20%
25%
30%
Under 1
Year
1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years
28% 28%
4%
14%
26%
Portfolio Maturity Distribution