City of
Quarterly Treasurer Report
June 2024
ITEM 4. 8
This report presents a detailed discussion of the City' sfund balances and investment portfolio as of June 30, 2024.
It includes all investments managed by the City on its own behalf as well as the City' sTrustees. 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 June 30, 2024, the investment portfolio was in compliance with all state laws and the City' sInvestment 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' s investments 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' s investments 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' soffice. 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 Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.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' sInvestment 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 June 30, 2024 compared with the prior quarter:
Stephen J. Salvatore
City Manager
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:
I. 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 second quarter of 2024 was characterized by moderating economic growth, inflation resuming its slowing trend as it inches closer to the Fed' s 2% target, signs of consumer activity beginning to taper, and a labor market that continues to come into better balance. As expected, the Fed kept the overnight rate at its current target range of 5. 25% to 5.0% at its June 12 meeting, marking the seventh consecutive meeting since July 2023 keeping rates at this level. Furthermore, the Fed' s updated " dot plot" showed just one rate cut in 2024, a notable drop from the March projections of three cuts.
This more closely aligned with market expectations, which generally assumed one or two cuts in the back half of this year. U. S. inflation readings continued to make subtle progress toward the Fed' s2% target through most of Q2. The Fed' spreferred measure of inflation, the Personal Consumption Expenditures Index (PCE), tracked lower in May after the April and March readings showed no change. The U. S. labor market continued to soften as the pace of job growth slowed in Q2. The unemployment rate hit 4.1% in June, ending a 28 -month streak of unemployment at or below 4.0%. Overall, the labor market is expected to remain supportive of personal consumption as wage growth continues to outpace inflation. However, some signs of cooling in the labor market, including increasing jobless claims, underscore the moderation in economic expectations over the near -term.
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.
Cari Jame
Director • ; inance
Inv
4 1
24 28
935
52 3
7 Trustee
Held
Investments
Recorded
Value
Current PercenYield
t
of
Portfolio
Market
Value
US
Bank UMB
Bank
Union
Bank
Si
County
Pooled
Funds
PFM
Asset
Management +
Year
End
FMV
PNC
Bank
3,
525, 243
1,
356, 484 221, 844
126, 499, 182 502,4. 604
430%
4. 0..
260% 000% 430%
4. 820%
4. 700%
0. 18 %59%
45 .
08%
0 .
00%
0 .0 .
49 %27% 1.
221, 844
126, 499, 182 502, 604
3,
525, 243
1,
356, 484
Total
Investments
Held
by
Trustees (
2)
132, 105, 358
4. 797 %
47. 61%
132, 105, 358
Total
City &
Trustee
Held
Investments &
Cash
Recorded
Value
Current
Yield
Percent
ofortfolio P
Market
Value
Investments
Held
by
the
City
and
Trustees
Cash
in
Checking
Accounts -
Recorded
Value
277, 495, 137 61, 544, 684
4. 870%
100 .
00%
277, 495, 137
Total
Cash
and
Investments
339, 039, 821
One
month
benchmark
for
U.
S.
Treasuries:
Three
month
benchmark
for
U.
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. 46%
5. 51 %
To
Investments
Held
by
Trustees
Prior
Month
Reco
rded
Value
Purchased Buy)
Redeemed Sell)
Current
Month
Recorded
Value
PNC
Bank
Si
County
Pooled
Funds
UMB
Bank
US
Bank (
3)
PFM
Asset
Management +
Year
End
FMV
500, 612 221, 844
1,
351, 611
3,
215, 394
123, 494, 544
1,
993
4,
874
309, 849
11, 297, 478
502, 604 221, 844
1,
356, 484
3,
525, 243
126, 499, 182
Total
Investments
Held
by
Trustees
128, 784, 004 $
11, 614, 194 $
8,
292, 840) $
132, 105, 358
Total
Cash
in
Checking
Accounts
Held
by
the
City (
2)
56, 628, 272
13, 716, 623
8,
800, 211) $
61, 544, 684
Total
Cash
and
Investments
Held
by
the
City
and
Trustees
330, 489, 771 $
25, 643, 100 $ (
17, 093, 051) $
339, 039, 820
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
revenue,
TOT,
Developer
payments,
and
Utility
payments;
nonrecurring
expenses
paid
during
the
month:
General
government, Parks,
Streets,
Wastewater,
and
Water
CIPs;
also,
recurring
expenses:
Park &
street
landscape
maintenance,
and
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 .
OF
of
Coup
Descripti
Inv
No
A
9 3
4 4
74, 871, 002 $
74, 871, 002
Wells
FargoMutual
Funds
Money
Market
Mutual
Fund
City No.Acct
12641627
N/ 5. A 160%
Varies
On
Demand
3,
132, 154
3,
132, 154
3,
132, 154 $
3,
132, 154
Califorina
Asset
Management
Program Liquidity
No. Account
6084- 001
N/ 5. A
430%
Varies
On
Demand
67, 386, 624
67, 386, 624
67, 386, 624 $
67, 386, 624
TOTAL
INVESTMENTS
HELD
BY
CITY $
145, 389, 779 $
145, 389, 779
Tr
Villa
Asse
ssmen
Dist
No
Dist
LTHRP
FINAUTHREVENUE
BONDS
2023
SERIES A
Money
Market -
Revenue
Account
Money
Market -
Special
Tax
Fund
Money
Market -
CFD
Reserve
Account
Money
Market -
ReAD
Reserve
Account
Money
Market -
Acquired
Obligations
Fund
2003- 2A
Lathrop
CFD
Money
MarketInterest
Account
Money
Market -
Reserve
Account
LAIF -
Interest
Account
CDPH/ CDWR -
SRF
Loan
Agreement
Account
Agreement
Account -
Reserve
Fund
2015
Crossroads
Series B
2015
Crossroads
Series B -
2015
Crossroads
Series B -
2015
Crossro
ads
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
Account
2012
Water
Loan (
Refunding
of
2000
Water
COPs)
Certificate of
Deposit -
Reserve
Fund
6712198801 6712138805 6712138804 6712138803 6712138801 6711908801 6711908800 6711720002 6711712200 6711720001 278276008 278276006 278276004 278276003 278276000 4 430
4 4.
430%
4. 430%
4. 430%
4. 430%
4. 430%
4. 4.. 480%430% 430%
7/ 1/ 237/ 2/ 237/ 1/ 237/ 1/ 237/ 2/ 23 12/ 12/ 03 12/ 12/ 03 03/ 19/ 03 On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
12,
833 $ 338 $ 209, 258 $ 600,
34 $154 $ 13, 346 $ 703, 254 $
12,
833 338 209, 258 600,34 154 13, 346 703, 254
4. 430 %
12/ 22/ 10
On
Demand $
299, 494 $
299, 494
4 .
430 %
12/ 22/ 10
On
Demand $
629, 432 $
629, 432
4 .
430 %
4. 430%
4. 430%
4. 430%
4. 430%
09/ 01/ 15 09/ 01/ 15 09/ 01/ 15 09/ 01/ 15 09/ 01/ 15
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
126 $
806,
431 $ 637 $
126
806,
431 637
Total
Inv
Held
estme nts
by
Trustee -
US
Bank $
3,
525, 243 $
3,
525, 243
0. 090%
5/ 22/ 19 $
Total
Investments
Held
byustee - Tr
Pacific
Premier
Bank $
502, 604 $ 502, 604 $
502, 604 502, 604
Trus
Inv estmen
Acco
Centra
Impro
vement
Area
1 Redemptio
n
Account
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 Improv
ement
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
3 -
Redemption
Acco
unt
Improvement
Area
3 -
Interest
Account
Improvement
Area
3 -
Admin
Expense
Account
Improvement
Area
3 -
Reserve
Fund
Improvement
Area
3 -
Surplus
Fund
Improvement
Area
4 -
Principal
Account
Improvement
Area
4 -
Redemption
Acco
unt
Improvement
Area
4 -
Interest
Account Improv
ement
Area
4 -
Admin
Expense
Account
Improvement
Area
4 -
Reserve
Fund
Improvement
Area
4 -
Surplus
Fund Improv
ement
Area
5 -
Principal
Account
Improvement
Area
5 -
Redemption
Account Improv
ement
Area
5-
Interest
Account
Improvement
Area
5 -
Admin
Expense
Account
149232
149232. 149232. 149232. 149232. 149265. 149265. 149265. 149267. 149267. 149267. 149267. 149268. 1 7 6 149267. 5
32 149267. 1 6 149265. 5
4 3 149265. 2 149265. 1 8
76 5
4 149268. 2 149268. 6149268. 5 149268. 4 149268. 3 149269 . 1 149269. 2 149269 . 3 149269 . 4
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
430% 4.
02/ 01/ 19
On
Demand
430 % 4.
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4 .
430%
02/ 01/ 19
On
Demand
4 .
430%
02/ 01/ 19
On
Demand
4. 430 %
02/ 01/ 19
On
Demand
4 .
430%
02/ 01/ 19
On
Demand
4 .
430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4. 430 %
02/ 01/ 19
On
Demand
4. 430 %
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
4 .
430 %
02/ 01/ 19
On
Demand
4. 430%
02/ 01/ 19
On
Demand
45 12, 296 232, 207 22,
28 770 14, 101 174, 112 43,
56 010 12, 419 385, 303 15, 000 14, 233 96, 646 10,
14 19 101 11, 522
45 12, 296 232, 207 22,
28 770 14, 101 174, 112 43,56 010 12, 419 385, 303 15, 000 14, 233 96, 646 10, 14 19 101 11, 522
14926
430
4 430430
InveTotal
stments
Held
by
Trustee -
UMB
Bank $
1,
356, 484 $
1,
356, 484
Investments
Held
by
San
Joaquin
County
Accoby San ita
unt
ry
Sewer
AssessmentD
istrict #
1 Pooled
Funds -
Redemption
Account
Si
CO
FUND #
57961 0.
260%
10/ 1/ 87
On
Demand $
InTotal
vestments
Held
by
Trustee -
San
Joaquin
County $
Investments
Held
by
PFM
Asset
Management
by
Account
PFM
Asset
Management
Money
Market
Fund
US
Treasury
Bond /
Note
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
No
tes
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
No
tes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
221, 844 $ 221, 844 $
221, 844 221, 844
20260109
PFM
Funds -
Govt
Select
AAAm $
509, 565 $
509, 565
91282CHL8
4. 625%
06/ 30/ 23
06/ 30/ 25 $
9,
951, 562 $
9,
951, 562
91282CEY3
3. 000%
07/ 15/ 22
07/ 15/ 25 $
660, 762 $
660, 762
91282CEY3
3. 000%
07/ 15/ 22
07/ 15/ 25 $
709, 707 $
709, 707
91282CEY3
3. 000%
07/ 15/ 22
07/ 15/ 25 $
1,
810, 976 $
1,
810, 976
91282CFE6
3. 125%
08/ 15/ 22
08/ 15/ 25 $
48, 945 $
48, 945
91282CFE6
3. 125 %
08/ 15/ 22
08/ 15/ 25 $
709, 707 $
709, 707
91282CFK2
3. 500%
09/ 15/ 22
09/ 15/ 25 $
785, 500 $
785, 500
91282CFK2
3. 500%
09/ 15/ 22
09/ 15/ 25 $
1,
055, 516 $
1,
055, 516
91282CJB8
5 .
000%
09/ 30/ 23
09/ 30/ 25 $
5,
297, 515 $
5,
297, 515
91282CFP1
4. 250%
10/ 15/ 22
10/ 15/ 25 $
718, 090 $
718, 090
91282CFP1
4. 250%
10/ 15/ 22
10/ 15/ 25 $
1,
039, 992 $
1,
039, 992
91282CFW6
4. 500 %
11/ 15/ 22
11/ 15/ 25 $
745, 313 $
745, 313
91282CFW6
4. 500%
11/ 15/ 22
11/ 15/ 25 $
1,
391, 250 $
1,
391, 250
91282CGA3
4. 000%
12/ 15/ 22
12/ 15/ 25 $
987, 031 $
987, 031
91282CGA3
4 .
000 %
12/ 15/ 22
12/ 15/ 25 $
2,
467, 578 $
2,
467, 578
91282CJS1
4 .
250%
12/ 31/ 23
12/ 31/ 25 $
11, 388, 594 $
11, 388, 594
91282CGE5
3. 875%
01/ 15/ 23
01/ 15/ 26 $
689, 500 $
689, 500
91282CGE5
3 .
875%
01/ 15/ 23
01/ 15/ 26 $
763, 375 $
763, 375
91282CGE5
3 .
875%
01/ 15/ 23
01/ 15/ 26 $
788, 000 $
788, 000
91282CGL9
4. 000%
02/ 15/ 23
02/ 15/ 26 $
937, 086 $
937, 086
91282CGL9
4 .
000%
02/ 15/ 23
02/ 15/ 26 $
986, 406 $
986, 406
91282CGL9
4. 000%
02/ 15/ 23
02/ 15/ 26 $
1,
430, 289 $
1,
430, 289
9128286F2
2 .
500%
02/ 28/ 19
02/ 28/ 26 $
2,
165, 625 $
2,
165, 625
91282CGR6
4. 625%
03/ 15/ 23
03/ 15/ 26 $
5,
231, 953 $
5,
231, 953
91282CKH3
4. 500%
03/ 31/ 24
03/ 31/ 26 $
1,
243, 359 $
1,
243, 359
Tr
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Notes
US
Treasury
Subtotal:
91282CKR1 91282CKR1 91282CKR1 91282CKJ9391282CKE0 91282CKA8 91282CJT9 91282CJP7 91282CJK8 91282CJK8 91282CJC6 91282CHY0 91282CHU8 91282CHU8 91282CHM6 912 3 4
4 1
4. 4
375% 500% 375%4. 4.625%
4. 4. 625%625%
4. 625%
4. 375%
4. 000%
4.125% 4.
250%
4. 500%
4 .
500 %
4. 500 % 4.
500%
0 1
2 07/ 15/ 23 08/ 15/ 23 08/ 15/ 23 09/ 15/ 23 10/ 15/ 23 11/ 15/ 23 11/ 15/ 23 12/ 15/ 23 01/ 15/ 24 02/ 15/ 24 03/ 15/ 24 04/ 15/ 24 05/ 15/ 24 05/ 15/ 24 05/ 15/ 24 0 1
2 07/ 15/ 26 08/ 15/ 26 08/ 15/ 26 09/ 15/ 26 10/ 15/ 26 11/ 15/ 26 11/ 15/ 26 12/ 15/ 26 01/ 15/ 27 02/ 15/ 27 03/ 15/ 27 04/ 15/ 27 05/ 15/ 27 05/ 15/ 27 05/ 15/ 27 6 72
37 1,
841, 906 620, 898
2,
930, 641
2,
297, 484
2,
497, 656 799, 750
1,
999, 375
7,
930, 141
4,
089, 696
6,
574, 149 $
6,
574, 149
4,
265, 734 $
4,
265, 734
1,
248, 242 $
1,
248, 242
399, 500 $
399, 500
1,
348, 313 $
1,
348, 313
5,
692, 875 $
5,
692, 875
111, 082, 972 $
111, 082, 972
6 72
37 1,
841, 906 620, 898
2,
930, 641
2,
297, 484
2,
497, 656 799, 750
1 ,
999, 375
7,
930, 141
4,
089, 696
Inv
Bo
Federal
Bo
Agency
nd/ Note
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes
Fannie
M
ac
No
tes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
No
tes (
Callable)
FFCB
Bonds
Fannie
Mae
Notes (
Callable)
Fannie
Mae
Notes (
Callable)
Federal
SubtoAgency
tal:
Interest Total
Accrued
Interest +
Year
End
FMV
3 6
7 3
6 7
3130AM 0. VD1
420%
06/ 17/ 21
09/ 17/ 24
3130AWER7 625% 4.
0/ 9/ 23
06/ 06/ 25
3. 3134GXM35
600%
08/ 05/ 22
08/ 01/ 25
1. 3130AN3T5
000%
03/ 23/ 21
03/ 23/ 26
1. 3130ALGJ7
000%
03/ 23/ 21
03/ 23/ 26
1. 3130ANCD0
110%
07/ 30/ 21
07/ 27/ 26
4. 500% 3133EPSW6
08/ 14/ 23
08/ 14/ 26
3135G06L2
0. 875%
12/ 18/ 20
12/ 18/ 26
5. 3135GAS28
420%
04/ 30/ 24
04/ 23/ 27
742, 092 $
742, 092
885, 356 $
885, 356
712, 987 $
712, 987
704, 968 $
704, 968
1,
458, 358 $
1,
458, 358
1,
468, 273 $
1,
468, 273
1,
443, 688 $
1,
443, 688
751, 350 $
751, 350
1,
251, 353 $
1,
251, 353
9,
418, 424 $
9,
418, 424
1,
800, 488 $
1,
800, 488
ToIntal
vestments
Held
by
Trustee -
PFM
Asset
Management $
126, 499, 182 $
126, 499, 182
Total
Investments
Held
by
Trustees $
132, 105, 358 $
132, 105, 358