STAFF REPORT
Meeting Date:
September 22, 2026
CONSENT
CALENDAR
8 SUBJECT: MONTHLY TREASURER’S AND INVESTMENT REPORT (JULY 2026) RECOMMENDATION: It is recommended that the City Council:
1. It is recommended that the City Council receive and file the July 2026 report.
SUMMARY OF THE MATTER
A monthly report from the elected City Treasurer is required by Government Code. It included the cash and investments by fund and the reports from the City’s banks. It was modified to comply with the Laguna Beach Investment Policy. Additionally, a report of the surplus investments and some of the funds managed by the City Treasurer was prepared by Meeder (consultant). The consultant managed surplus investments for a fee and was directed by the City Manager.
DISCUSSION
The City Treasurer and the consultant’s reports are attached. The total cash and investments was $146.6 million, $16.1 million lower than the prior month. Cash outflows were anticipated and the City Treasurer has certified that there is adequate liquidity for the next six months when a period of positive cash flows will occur.
Liquid City funds are held in fully collateralized accounts at commercial banks and the California investment pooled account. A custodian holds marketable investments, and the City holds Special Investment Accounts which were approved by the City Council and are long-term investments. • Cash and investments managed by the City Treasurer totaled $61 million and included the funds required for adequate liquidity during the next six months, restricted cash for assessment districts, bond funds and Special Investment Accounts. The report listed the receipts and disbursements by fund, reported fund balances, and a discussion of the monthly activity. • Investments managed by the consultant totaled $85 million and were held by the custodial bank who provided a fair value that was different than reported by the consultant. The City Manager directed consultant to invest $13 million in long-term investments. The consultant report included a discussion of surplus investments and the general economy. • Rising interest rates cause an unrealized loss in the fixed income portfolio. Unrealized losses are not budgeted and will not impact operations unless securities are sold prior to maturity. The City has the practice of holding investments until maturity. • The month-end portfolio includes US treasury securities (36%), government agency instruments (20%), the Local Agency Investment Fund (13%), medium-term corporate notes (17%), and highyield, fully collateralized bank accounts (14%).
MONTHLY TREASURER’S AND INVESTMENT REPORT (JULY 2026)
September 22, 2026
FINANCIAL ANALYSIS
The recommended action has no financial impact to the budget.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
Compliance with state and local regulations and the Investment Policy.
ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.
ATTACHMENTS
1. Report from City Treasurer Parisi
2. Report from Consultant Meeder
Submitted By: . Approved: .David A Kiff
Laura Parisi, CPA, CCMT, City
Treasurer
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Laura Parisi, CPA, CCMT, City Treasurer Greg Balls, CFA, Meeder Investments