City sr of L 1 l
1. 4
Quarterly Treasurer Report
March 2024
ITEM 4.
This report presents a detailed discussion of the City' s fund balances and investment portfolio as of March 31, 2024. It includes all investments managed by the City on its own behalf as well as the City' s Trustees. The report provides information on cash flows, broken down by both investment manager (City or Trustee) and by percentage allocation within the portfolio.
As of March 31, 2024, the investment portfolio was in compliance with all state laws and the City' s Investment Policy.
Current Portfolio Summary
As directed by the Investment Policy adopted by City Council, City staff strives to attain three primary goals with the City' sinvestments as follows (in order of priority):
1. Safety — Preservation of the principal of invested funds
2. Liquidity — Ability to liquidate one or more of the City' sinvestments if unexpected expenditures arise
3. Return — Attainment of a market rate of return
The majority of the portfolio is invested in the Local Agency Investment Fund ( LAIF), which is administered by the California State Treasurer' s office. LAIF provides the City with an investment vehicle with yields that are slightly greater than U. S. Treasuries ( T -bills) with a 2 -year maturity or less. LAIF is a high quality investment in terms of safety, liquidity, and yield. Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.
In addition to LAIF, the City holds investments in Money Market Mutual Funds, Nonnegotiable Certificates of Deposit, and State and Local Government Securities ( SLGS). These investments are prudent investment choices and are included in the City' s Investment Policy as allowable investments.
Each investment mentioned above has a specific maturity date. However, much of the portfolio is On Demand.
The short weighted average maturity provides the City with a great deal of liquidity during this period of heightened economic uncertainty and period of moderate investment yields. This liquidity places the City in a position to invest in longer term maturity investments once interest rates begin to stabilize toward their historical norms; overall macroeconomic indicators signal solid and consistent growth in future years.
The following table ( Table: 1) provides a summary of the City' scash and investments, by holding party, based on recorded value as of March 31, 2024 compared with the prior quarter:
Holding Party Fund Amounts ( 1)
of
Portfolio
Fund Amounts ( 1)
of
Portfolio
Investments/ Cash held by the City
Investments held by Trustees
215, 84, 532 73% 185, 425, 201 59%
79, 468, 861 27% 129, 784, 229 41%
295, L5
1) Small variances are due to the summation and rounding of multiple figures to the nearest whole dollar Please see the following pages ( Tables: 2 through 5) for a more detailed analysis of transactional additions and reductions due to cash flow needs, debt service payments, and maturities/ rollovers of certain investments.
Revenues arrived during the quarter, per City staff expectations, are as follows: utility payments, property tax, franchise fees, sales tax ( including Measure C), developer billing fees, grant reimbursements, building permit fees, plan check fees, and Transient Occupancy Tax ( TOT).
Significant payables paid out during the quarter include:
Nonrecurring Expenditure Debt Service Payments, Capital Improvement Projects — General Government, Parks, Streets, Water, and Wastewater
II. Recurring Expenditures
a. Contractual — Park & Street Landscaping, and Wastewater Treatment Services b. Intergovernmental payments — South San Joaquin Irrigation District ( Surface Water Contract), Lathrop Manteca Fire District, City of Manteca ( Wastewater Contract) Quarterly Economic Update
According to the latest projections from PFM Asset Management; The first quarter of 2024 was characterized by continued economic resilience led by strong consumer spending, inflation that continues to slowly grind lower, and a robust labor market. The Federal Reserve ( Fed) kept the overnight rate at its current target range of 5. 25% to 5.0% at its March 20 meeting, as expected, marking the fifth consecutive pause following the last rate hike in July 2023. The Fed' s updated " dot plot" implies three 0. 25% rate cuts through 2024 while the number of cuts implied for 2025 was reduced from three to two. Markets entered the year pricing in over six cuts in 2024 but since have now converged to Fed projections. The Fed chair has said they need more confidence that inflation is moving toward its 2% target before the first rate cut. Yields moved higher in the first quarter with the return of the Fed' s "higher -for -longer" stance. Although January and February inflation readings came in above expectations, CPI actually trended lower in the first quarter and continued to decline from its mid- 2022 peak. The U. S. labor market showed little signs of softening, adding over 800, 00 jobs in the first quarter after 637, 000 were added in the fourth quarter. In the latest reading, 303, 000 jobs were created in March, which is the highest level since May of 2023. The unemployment rate also ticked down to 3.8% and has been below 4% for over two years.
Strong wage increases reflect a competitive labor market and further support consumer spending.
I certify that all of the investments reported herein are in accordance with the " City of Lathrop Investment Policy" adopted on November 13, 2023, with the Government Code, and other contractual agreements. I further certify the investments reported herein provide for the ability of the City to meet cash flow needs for the next six months.
Fe -2
Stephen J. Salvatore
City Manager
1 Carl Jam
Director finance
TABLE:
2 CITY
OF LATHROP of
Summary
All
Investments
As
of
March
31,
2024
City
Held
Investments
Recorded
Value
Current
Yield
Percent
of
Portfolio
Local
Agency
Investment
Fund
Wells
Fargo
Money
Market
Mutual
Funds
California
Asset Management
Program
74, 871 002 3, 102 239 36, 52884
232% 4. 5 .
120% 5 .
480%
30 .
65% 1. 27 %14 .95%
Total
Investments
Held
by
the
City (
1)
114, 501 825
4 .
654%
46. 87 %
Trustee
Held
Investments
Recorded
Value
Current
Yield
Percent
of
P
ortfolio
US
Bank UMB UnioBank n
Bank
Si
County
Pooled
Funds
PFM
Asset Management
PNC
Bank
3, 185, 28 1, 342 069 160, 486
124, 599 673 496, 713
4 .
430 %
4.30% 0 .
000% 0 .260% 3 .400 % 0 .090%
30% 1. 0 .
55%
0.0 %0 .
07 %
51 .
01 %
0 .
20%
Total
Investments
Held
by
Trustees (
2)
129, 784 229
3 .
419 %
53 .
13%
Total
City &
Trustee
Held
Investments &
CashRecorded
Value
Current
Yield
Percent
of
Portfoli
o
Investments
Held
by
the
City
and
Trustees
Cash
inChecking
Accounts -
Recorded
Value
244,86, 054 70, 923, 376
3. 998%
100 .
00%
Total
Cash
and
Investments
315, 209 430
One
month
benchmark
for S.
U.
Treasuries:
Three
month
benchmark U.
for
S. Treasuries:
Notes: 1)
See
Table:
4 for
detailed
investments
held
by
the
City.2)
See
Table:
5 for
detailed
investments
held
by
Trustees. 5.
51%
5. 47%
TABLE:
3 CITY
OF
LATHROP
Investments
Cash
Flow Analysis of
As
March
31,
2024
Investments Held
by
the
City
Prior
Month
Recorded
Value
Purchased Buy)
Redeemed Sell)
Local
Agency
Investment
Fund (
1)
Wells
Fargo
Money
Market
Mutual
Funds (
2)
California
Asset Management
Program
74, 871 002 3, 079 503 36,59 826
22, 736 168, 75
Total
Investments
Held
by
the
City
310,31 14
191, 44
Investments
Held
by
Trustees
Prior
Month
Rec
orded Value
Purchased Buy)
Redeemed Sell)
PNC
Bank
SJCounty
Pooled
Funds
UMB
Bank
US
Bank (
3)
PFM
Asset Management
494, 870 160, 486
2, 572 421 4,27,12 122, 73 10
1, 843 4, 270 712, 051
8, 20129
623) $ 1, 234, 175) $, 954, 659) $, 324
Total
Investments
Held
by
Trustees
130, 378 293 $
8, 919, 393 $ (
457) $ 9, 513,
Total
Cash
inChecking
Accounts
Held
by
the
City (
2)
64, 409 034
14, 443,71
129) $ 9, 7
Total
Cash
and
Investments
Held
by
the
City
and
Trustees
309, 097 65 $
23, 554 38 $ (
585) $ 17, 442,
Notes: 1)
LAIF
interest
income
is
paid
quarterly (
Mar/ Jun Sept/ Dec)
and
received
in
the
following
month (
Apr/ Jul Oct/ Jan) .
2)
Property
Tax,
Sales
Tax,
Building
permit
rev
enue,
TOT,
Developer
payments,
and
Utility
payments;
nonrecurring
expenses
month:
General
government,
Parks,
Streets,
Wastewater,
and
Water
CIPs;
also,
recurring
expenses:
Park &
street
landscape
water
treatment
services;
lastly, intergovernmental
payments
and
transfers:
SSJID
SCSWSP
0 &
M
expenses .
3)
Interest
earnings
from
BlackRock
Liquidity
Funds
T -
Funds
30 Day
Yield
4. 430%,
debt
service
payments.
TABLE: 4
CITY
OF
LATHROP
Investments
Held
by
City -
Detail
As
of
March
31,
2024
Agency (
Broker)
Yield
Investment
Coupon
to
Purchase
Maturity
Description
Rate
Maturity
Date
Date (
No
Local
Agency
Investment
Fund
Money
Market
Fund
City
Acct
No .
98- 39 437
N/ A
4 .
232 %
Varies
On
Demand
74,
74,
Wells
Fargo
Mutual
Funds
Money
Market
Mutual
Fund
City
Acct
No .
12641627
N/ A
5 .
120 %
Varies
On
Demand
3,
Califorina
Asset Management
Program Liquidity
Account
No. 6084- 001
3,
N/ A
5 .
480 %
Varies
On
Demand
36,
36,
TOTAL
INVESTMENTS
HELD
BY
CITY $
114,
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detailof
As
March
31,
2024
Investment Description
Acct
Number
CUSIP
Current
Purchase
Maturity
Yield
Date
Investments
Held
by
US
Bank
03- 1
Series
2015 -
Mossdale
Village
Ass
Districtnt essme
Mossdale
Village
Assessment
Dist .
N
03- 1
Serieso. 2015 -
Redemption
Fund
Mossdale
Village
Assessment
Dist.
No.
03- 1
Series
2005/1 -
Reserve
Fund
LTHRP
FIN
REVEN
AUTH
BON
UE
DS
2023
SERIES
A
Money
Market -
Revenue
Account
Money
Market -
Special
Tax
Fund
M
oney
Market -
CFD
Reserve
Account
Money
Market -
ReAD
Reserve
Account
Money
Market -
Acquired
Obligations
Fund
2003-A
Lathrop
CFD
Money
MarketInterest
Account
Money
Market -
Reserve
Account
LAIF -
Interest
Account
CDPH/WR -
Loan
SRF
Agreement
Account
Agreement
Account -
Reserve
Fund
2015
Crossroads
Series
B
2015
Crossroads
Series
B - Crossro
2015
ads
Series
B -
2015
Crossroads
Series
B -
2015
Crossroads
Series
B -
2015
Crossroads
Series
B -
LOIB
RDP
LOIB
Reserve
Cost
of
Issuance Improvements COI
Custodian
Agreement
Investments
Held
by
PNC
Bank
by
A
ccount
2012
Loan (Water
Refun of
ding
Wa
2000
te
r
COPs)
of
Certificate
Deposit -
Reserve
Fund
6712138601 6712138602 278276000 278276003 278276004 278276006 278276008 6711720001 6711712200 6711720002 6711908800 6711908801 6712138801 6712138803 6712138804 6712138805 6712198801
4.30%
10/8 05
On
Demand $
4 .
430%
10/8 05
On
Demand $
4 .
430% 4.30 % 430 %. 430%. 4.30 % 4.30% 4.30% 232% 4.
1/ 237/7/ 2/3 7/ 1 23 7/ 1/ 23 7/ 23 12/ 03 12/ 03 03/ 19 On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
430%.
12/ 20
On
Demand $
4.30%
12/ 20
On
Demand $
4.30% 4 .
430% 4.30% 4.30% 4 .430%
09/1 15 09/1 15 09/1 15 09/1 15 09/1 15
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
Total
Investm
ents
Held
by
Trustee -
US
Bank $
0 .
090%
5/ 22 19
Total
Investments
Held
by
Trustee -
Pacific
Premier
Bank $
TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Trustee -
Detailof
As
March
31,
2024
Investment
Current
Purchase
Maturity
Description
Acct
Number
CUSIP
Yield
Date
Investments
Held
by
UMB
Bank
by
Account
2018- 1
La
Central
throp
CFD
Improvement
Area
1 -
Admin
Expense
Reserve
Fund
Other Improvement
Areas -
Admin
Expense
Reserve
Fund
Improvement
Area
1-
Principal
Account
Improvement
Area
1-
Account
Redemption
Improvement
Area
1-
Interest
Account
Improvement
Area
1 -
Admin
Expense
Account
Improvement
Area
1-
Reserve
Fund
Improvement
Area
1 -
Surplus
Fund
Improvement
Area
2 -
Principal
Account
Improvement
Area
2 -
Redemption
Account
Improvement
Area
2 -
Interest
Account
Improvement
Area
2 -
Admin
Expense
Account
Improvement
Area
2 -
Reserve
Fund
Improvement
Area
2 -
Surplus
Fund
Improvement
Area
3 -
Principal
Account
Improvement
Area Redemptio3 -
nAccount
Improvement
Area
3 -
Interest
Account
Improvement
Area
3 -
Admin
Expense
Account Are
Improvement
a
3 -
Reserve
Fund
Improvement
Area
3 -
Surplus
Fund
Improvement
Area
4 -
Principal
Account
Improvement
Area Redemptio4 -
nAccount
Improvement
Area
4 -
Interest
Account
Improvement
Area
4 -
Admin
Expense
Account
Improvement
Area
4 -
Reserve
Fund Improvement
Area
4 -
Surplus
Fund Improvement
Area
5 -
Principal
Account
Improvement
Area
5 -
Redemption
Account
Improvement
Area
5-
Interest
Account
Improvement
Area
5 -
Admin
Expense
Account
149232. 1 149232. 2 149232 .
3 149232. 4 149232 .
5 149232. 6 149232 .
7 149232. 8 149265. 1 149265. 2 149265. 3 149265 .
4 149265. 5 149265. 6 149267 .
1 149267 .
2 149267 .
3 149267. 5 149267 .
6 149267 .
7 149268. 1 149268. 2
149268. 3
149268. 4
149268.
5 149268.
6 149269. 1
149269.
2 149269. 3 149269. 4
4.30%
01/ 192
On
Demand
4 .
430%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
4 .
430 %
02/1 19
On
Demand
4 .
430 %
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
430%.
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
430%.
02/1 19
On
Demand
4 .
430 %
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
4.30 %
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
4.30 %
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
4 .
430 %
02/1 19
On
Demand
430 %.
02/1 19
On
Demand
TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Trustee -
Detail
As
of
March
31,
2024
InvestmentDescription Acct
umber N
Current
Purchase
Maturity
CUSIP
Yield
Date
Improvement
Area
5 -
Reser
Fund ve Improvement
Area
5 -
Surplus
Fund
1018- 2
Lathro
Central
p
CFD Special
Tax
Fund
Surplus
Fund
Investments
Held
by
Jo
San
aquin
County
by
Account San itary Assessmen
Sewer
District # t
1 Pooled
Funds -
Redemption
Account
Investments
Held
by
PFM
Asset Management
by
Account
PFM
Asset Management
Money
Market
Fund
USTreasury
No
Bond /
te
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
US
NoTreasury
tes
USTreasury
Notes
US NoTreasury
tes
149269 .
5 149269. 6 149261. 1 149261. 2
4 .
430%
02/1 19
On
Demand $
4 .
430%
02/1 19
On
Demand $
4 .
430%
02/1 19
On
Demand $
4.30%
02/1 19
On
Demand $
Total
Investments
Held
by
Trustee -
UMB
Bank $
SJ
CO
FUND #
57961
0.260%
10/ 87
On
Demand $
Total
Investments
Held
by
Trustee -
San
Joaquin
County $
20260109
PFM
Funds -
Govt
Select
AAAm $
91282CED9
1. 750 %
03/ 15 22
03/ 15 2 $
91282CGU9
3.875%
03/ 31 2
03/ 31 25 $
9128284M9
2.875%
04/ 30 18
04/ 30 25 $
91282CEQ0
2. 750 %
05/ 1 22
05/ 1 2 $
91282CEQ0
2.750%
05/ 1 22
05/ 1 2 $
91282CEQ0
2. 750%
05/ 1 22
05/ 1 2 $
91282CHL8
4.625%
06/ 30 23
06/ 30 25 $
91282CEY3
3 .
000 %
07/ 15 22
07/ 15 2 $
91282CEY3
3. 000%
07/ 15 22
07/ 15 2 $
91282CEY3
3. 000%
07/ 15 22
07/ 15 2 $
91282CFE6
3 .
125 %
08/ 15 22
08/ 15 2 $
91282CFE6
3.125%
08/ 15/ 22
08/ 15 2 $
91282CFK2
3.500%
09/ 15 22
09/ 15 2 $
91282CFK2
3.500%
09/ 15 22
09/ 15 2 $
91282088
5.000%
09/ 30 23
09/ 30 25 $
91282CFP1
250% 4.
10/5 22
10/5 2 $
91282CFP1
4.250%
10/5 22
10/5 2 $
91282CFW6
4.500 %
11/5 22
11/5 2 $
91282CFW6
500% 4.
11/5 22
11/5/ 2 $
91282CGA3
000% 4.
12/5 2
12/5 2 $
91282CGA3
000% 4.
12/5 2
12/5 2 $
91282051
4.250%
12/ 31 23
12/ 31 25 $
91282CGE5
3. 875%
01/ 15 23
01/ 15 26 $
91282CGE5
3. 875%
01/ 15 23
01/ 15 26 $
91282CGE5
3. 875%
01/ 15 23
01/ 15/ 26 $
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detailof
As
March
31,
2024
Investment
Current
Purchase
Maturity
Description
Acct
Number
CUSIP
Yield
Date
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Subtotal:
91282CGL9 91282CGL9 91282CGL9 9128286F2 91282CGR6 91282CGV7 91282CHB0 91282CHH7 91282CHH7 91282CHM6 91282CHU8 91282CHU8 91282CHY0 91282006 912820K8 912820 K8
912820
P7
912820T9 91282CKA8
000% 4. 4.000% 4 .
000 %2. 500% 4.625% 3. 750% 3. 625% 125% 4. 125% 4. 4. 500 % 4.375% 375% 4. 4 .625% 625% 4. 4 .625% 4 .625% 375% 4. 000% 4. 4.125% 02/ 15 23 02/ 15/ 23 02/ 15 23 02/ 28 19 03/ 15 2 04/ 15 23 05/ 1 23 06/ 15 23 06/ 15 23 07/ 15 23 08/ 15 23 08/ 15 23 09/ 15 23 10/5 23 11/5 23 11/5 23 12/5 23 01/ 15 24 02/ 15 24 02/ 15 26 02/ 15 26 02/ 15 26 02/ 286 03/ 15 26 04/ 15 26 05/ 1 26 06/ 15 2 06/ 15 2 07/ 15 26 08/ 15 26 08/ 15 26 09/ 15 26 10/5/ 26 11/5/ 26 11/5/ 26 12/5/ 26 01/ 15 27 02/ 15 27 TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detailof
As
March
31,
2024
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Supra -
national
Agency
Bond /
Note Finan
Intl
ce
Corp
Notes
Inter -
American
Devel
BKCorporate
Notes Supra -
National
Agency
Subtotal
Federal
Agency
Bond/ Note
Federal
Home
Loan
No
Banks
tes (
Callable)
Federal
Lo
Home
an No
Banks
tes
Fannie
Mac
Notes (
Callable)
Federal
Home
Loan
No
Banks
tes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
FFCB
Bonds
Fannie
Mae
Notes (
Callable)
Federal
Agency
Subtotal:
Interest
Total
Accrued
Interest
45950KDF4
4.375%
12/ 06 23
01/ 15 27 $
4581X0EM6
4 .
375%
12/ 23
02/1 27 $
3130AMVD1
0.420%
06/ 17 21
09/ 17 24 $
3130AWER7
625% 4.
0/ 9 23
06/ 25 $
3134GXM35
3 .
600%
08/5 22
08/1 25 $
3130AN3T5
000% 1.
03/ 21
03/ 26 $
3130ALGJ7
000% 1.
03/ 21
03/ 26 $
3130ANCD0
1 .
110%
07/ 30 21
07/ 26 $
3133EPSW6
500 % 4.
08/ 14 23
08/ 14 26 $
3135G06L2
0 .
875%
12/8 20
12/8 26 $
T
otal
I
nvestments
Held
by
Trustee -
PFM
Asset Management $
Total
Investments
Held
by
Trustees $