FINANCE DEPARTMENT
DATE: July 21, 2026
TO: Honorable Mayor and City Council
VIA: Damien O’Bid, City Manager
FROM: Angela Courter, Administrative Services Director
SUBJECT: INVESTMENT REPORT FOR THE QUARTER ENDED
JUNE 30, 2026
Attached for your information is the quarterly report of investments as of June 30, 2026.
The total cash and investment portfolio book value (cost) held by the City as of JUNE 30, 2026 was $16,241,077.
The cash and investments held by the City include the following components:
Managed Investment Portfolio ($5,447,696), State of CA Local Agency Investment Fund ($9,658,755), California Asset Management Program (CAMP) Pooled Investment Fund ($20,796), Sonoma County Investment Pool ($302,685), Cash/Time Deposits ($778,456), and accrued interest on investments ($32,689). (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.
During the quarter, four Certificates of Deposit totaling $984,000 matured.
Council Information
FY 2025-26 Q4 Quarterly Investment Report
JUNE 30, 2026
Two-year Treasuries were yielding 3.79% at the beginning of the quarter and ended the quarter at 4.14%, which was an increase of 35 basis points for the quarter.
As of JUNE 30, 2026, the Weighted Yield to Maturity on the Managed Investment Portfolio was 4.03%.
At the end of this quarter, the Weighted Average Maturity of the Managed Investment Portfolio was 1.99 years.
The Federal Open Market Committee (FOMC) meets approximately every six weeks and determines the level of the Federal Funds Rate. At the June 17th meeting, the FOMC voted to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent.
Summary from the June 17th meeting:
“The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve’s dual mandate. The Committee reaffirmed its policy of maintaining ample reserves in the banking system.
Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.” 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 Administrative Services Director.
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.
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 $ 265,000 $ 265,000 $ 265,000 1.63% U.S. Treasury Bill/ Note 3,285,000 3,196,572 3,203,701 19.77% Federal Agency Bond 800,000 796,792 747,994 4.61%
Certificate of Deposit 1,231,000 1,237,733 1,231,000 7.59% Managed Investments Subtotal $ 5,581,000 $ 5,496,096 $5,447,696 33.61% Pooled Investments
State of CA Local Agency Investment Fund $ 9,658,755 $ 9,658,755 $ 9,658,755 59.59% CAMP 20,796 20,796 20,796 0.13%
Sonoma County Investment Pool 302,685 302,685 302,685 1.87% Pooled Investments Subtotal $ 9,982,236 $ 9,982,236 $9,982,236 61.59% Investment Portfolio Subtotal $ 15,563,236 $ 15,478,332 $15,429,932 95.20% Cash/Time Deposits $ 778,456 $ 778,456 $ 778,456 4.80%
Funds Available for Investment $ 16,341,692 $ 16,256,788 $16,208,387 100.00% Accrued Interest $ 32,689 $ 32,689 $ 32,689
Total Cash & Investments Held by City $ 16,374,381 $ 16,289,477 $16,241,077 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.
Summary of Cash and Investments for the Quarter Ended June 30, 2026 City of Cotati
Portfolio Assets % of Portfolio
1.99 4.03%
*Note: Cash/time deposits not included in WYTM and WAM
Excludes Pooled Investments and U.S. Bank Custodial Cash Account Under 1 Year
Maturity Jun 2026 Mar 2026 Change 1 - 2 Years
3-Month 3.87% 3.70% 0.17% 2 - 3 Years
1-Year 3.98% 3.68% 0.30% 3 - 4 Years
2-Year 4.14% 3.79% 0.35% 4 - 5 Years
3-Year 4.15% 3.81% 0.34% Total
5-Year 4.19% 3.92% 0.27%
10-Year 4.44% 4.30% 0.14%
Apr
May
Jun 2026 Jun 2025 Jun 2024 Jun 2023 Jun
4.14% 3.72% 4.71% 4.87% Total for Quarter
Note: Interest Earnings figures do not include capital gains or losses $ 171,606 $ 143,025 $ (28,581)
$ 48,592 $ (4,512)
$ 59,962 $ 45,436 $ (14,526)
2-Year U.S. Treasury Yield - Historical Data $ 48,997 $ (9,543) $ 800,000 15%
$ 5,316,000 100%
Interest Earnings FY 24-25 FY 25-26 Change
$ 53,104
$ 58,540
$ 1,048,000 20%
$ 870,000 16%
$ 815,000 15%
U.S. Treasury Yields - Quarterly Comparison $ 1,783,000 34% Book Value (COST) $ 15,429,932
Market Value $ 15,478,332
Weighted Average Maturity (in years)
Weighted Yield to Maturity*
Portfolio Maturity PAR Maturing % Maturing
City of Cotati
Investment Portfolio Summary and Key Statistics
Portfolio Key Statistics
PAR Value $ 15,563,236
Investment Report for the Quarter Ended June 30, 2026
19.66% 59.41%
7.61%
4.90%
4.79%
1.86%
1.63%
0.13%
LOCAL AGENCY INVESTMENT FUND 59.41%
U.S. TREASURY BILL/NOTE 19.66%
CERTIFICATE OF DEPOSIT 7.61%
FEDERAL AGENCY BOND/NOTE 4.90%
CASH/TIME DEPOSITS 4.79%
SONOMA COUNTY INVESTMENT POOL 1.86%
INVESTMENT CASH ACCOUNT 1.63%
CAMP 0.13%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Under 1 Year 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 34%
20%
16% 15% 15%
Portfolio Maturity Distribution