INVESTMENT REPORT
FOR THE QUARTER
ENDING
DECEMBER 31, 2025
CITY OF HERCULES, CALIFORNIA
2025-2026
FISCAL YEAR
CITY OF HERCULES
FINANCE DEPARTMENT
111 CIVIC DRIVE
HERCULES, CALIFORNIA 94547-1771
PHONE: 510-799-8200
February 10, 2026
Honorable Mayor and Members of the City Council:
I hereby affirm that the investment portfolio, as of December 31, 2025, complies with all relevant state laws and conforms to the City’s investment policy. The anticipated revenues from ongoing City operations, coupled with the available liquidity from cash deposits, sufficiently cover the City’s expenditure requirements for the upcoming months.
As of December 31, 2025, the City possesses adequate financial resources to meet its expenditure obligations for the next six months.
Sincerely,
Edwin Gato
Finance Director/City Treasurer
City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended December 31, 2025
Book % of Average Market
Value Total Yield Value
Cash on Hand $2,005 $2,005
Cash on Deposit 6,223,212 6,223,212
Total Cash on Hand 6,225,217 8.51% 0.00% 6,225,217 Local Agency Investment Fund (LAIF) 58,648,394 80.18% 4.20% 58,776,334 Irrevocable Trust (Pension) 2,768,543 3.78% 10.57% 2,768,543 Irrevocable Trust (OPEB) 3,269,626 4.47% 10.57% 3,269,626 Investments with Bond Trustees 2,235,784 3.06% 3.61% 2,235,784 Total Portfolio $73,147,564 100.00% 6.13% $73,275,504
Amount over (under) Market Value vs. Book Value $127,940 % of Portfolio 0.17%
Investments by TypeCash on HandLAIFIrrevocable Trust(Pension)Irrevocable Trust(OPEB)Investments withTrustees City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended December 31, 2025
(DAYS)
BOOK MARKET PURCHASE MATURITY LIFE TO REMAINING PAR MARKET
DESCRIPTION VALUE YIELD DATE DATE MATURITY LIFE VALUE VALUE
CASH ON HAND
PETTY CASH 2,005.00 0.00% 2,005.00 $2,005.00
CASH IN BANK
MECHANICS BANK - GENERAL CHECKING 4,920,179.83 0.00% 4,920,179.83 4,920,179.83 MECHANICS BANK - HERCULES RDA 1,106,903.29 0.00% 1,106,903.29 1,106,903.29 MECHANICS BANK - PD ASSET SEIZURE 196,128.40 0.00% 196,128.40 196,128.40 TOTAL AND AVERAGES 6,223,211.52 6,223,211.52 6,223,211.52
LOCAL AGENCY INVESTMENT FUND (LAIF)
LAIF 58,648,393.78 4.20% 10/1/2025 12/31/2025 91 - 58,648,393.78 58,776,334.25
IRREVOCABLE TRUST (PENSION/OPEB)
US BANK MUTUAL (PARS-OPEB) 3,269,626.38 10.57% 10/1/2025 12/31/2025 91 - 3,269,626.38 3,269,626.38 US BANK MUTUAL (PARS-PENSION) 2,768,543.39 10.57% 10/1/2025 12/31/2025 91 - 2,768,543.39 2,768,543.39 TOTAL AND AVERAGES 6,038,169.77 10.57% 91 - 6,038,169.77 6,038,169.77
INVESTMENTS WITH BOND TRUSTEES
THE BANK OF NEW YORK (BNY) JM 05 1 RESERVE
FUND 55,797.47 0.00% 10/1/2025 12/31/2025 91 - 55,797.47 55,797.47
THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW INTEREST ACCT 21 A 2,887.50 0.00% 10/1/2025 12/31/2025 91 - 2,887.50 2,887.50
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 REVENUE FUND) 788,239.25 3.61% 10/1/2025 12/31/2025 91 - 788,239.25 788,239.25
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV PRIN ACCT)169,341.23 3.61% 10/1/2025 12/31/2025 91 - 169,341.23 169,341.23
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV INT ACCT) 299,303.54 3.61% 10/1/2025 12/31/2025 91 - 299,303.54 299,303.54
THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 RESERVE FD) 920,215.00 3.61% 10/1/2025 12/31/2025 91 - 920,215.00 920,215.00 TOTAL AND AVERAGES 2,235,783.99 3.61% 91 - 2,235,783.99 2,235,783.99 TOTAL INVESTMENT REPORT $73,147,564.06 6.13% 91 - $73,147,564.06$73,275,504.53 City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended December 31, 2025
% of
Cash Description Book Value Total
Bond Trustee $2,235,784 3%
Irrevocable Trust 6,038,170 8%
Restricted 44,997,602 62%
General Fund 19,410,805 27%
Internal Service Funds 465,203 1%
Total, Book Value $73,147,564 100%
Restricted:
Wastewater 19,891,353
Successor Housing 6,421,197
Development Impact Fees 4,627,213
Capital Projects 4,881,473
Landscape & Lighting 2,385,585
SB1 RMRA 1,997,955
Gas Tax & Measure J "Street" 1,293,483
Successor Agency 1,106,903
Solid Waste 974,737
Agency Fund 830,527
Asset Seizure 355,562
COPS Program 231,614
44,997,602
Bond Trustee 3%Irrevocable Trust 8%Restricted 61%General Fund 27%Internal Service Funds 1%Cash by Fund December 4.025
November 4.096
October 4.150
September 4.212
August 4.251
July 4.258
LAIF Apportionment Rate(2): 4.20
LAIF Earnings Ratio(2): 0.00011512010685708
LAIF Administrative Cost(1)*: 0.27
PMIA Average Life(1): 244
LAIF Fair Value Factor(1): 1.002181483
PMIA Daily(1): 3.97
PMIA Quarter to Date(1): 4.09
Treasuries
56.48%
Agencies
24.93%
Certificates of
Deposit/Bank Notes
9.22%
Time
Deposits
3.25%
Commercial
Paper
5.38%
Corporate
Bonds
0.58%
Loans
0.16%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) .
*The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.
Source:
(1) State of California, Office of the Treasurer
(2) State of California, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 12/31/25
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 12/31/25
Chart does not include $910,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Pooled Money Investment Account
Monthly Portfolio Composition (1)
12/31/25
$162.6 billion