City of
Quarterly Treasurer Report
September 2024
ITEM 4. 3
This report presents a detailed discussion of the City' sfund balances and investment portfolio as of September 30, 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 September 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' 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 Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.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' 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 September 30, 2024 compared with the prior quarter:
Table: 1
Holding Party Fund Amounts (1)
of
Portfolio
Fund Amounts (1)
of
Portfolio
Investments/ Cash held by the City
Investments held by Trustees
TOTAL
206, 934, 462 61% 206, 730, 344 61%
132,05, 358 39% 134, 675, 216 39%
339, 039, 820 100% 341, 405, 560 100%
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; Economic performance in the third quarter of 2024 continued to support a soft -landing outlook for the U. S. economy, underpinned by historically low unemployment, resilient consumer spending, record household wealth and a supportive Federal Reserve ( Fed).
Inflation continued to make progress towards the Fed' s2% target, while the labor market cooled from it formerly overheated state. This prompted the Fed to acknowledge that the risks on both sides of its dual mandate — stable prices and full employment — were now " roughly in balance." The Fed cut the overnight policy rate by 50 bps
0. 50%) to a new target range of 4. 75% to 5. 00% at its September 18 meeting, marking the first rate cut in over four years. Furthermore, the Fed' s updated " dot plot" implied an additional 50 bps of rate cuts through the balance of 2024 and 100 bps of cuts in 2025. The Fed expects to reach the longer run " neutral" policy rate of
2. 875% by the end of 2026. The U. S. labor market added an average of 186, 000 jobs per month in Q3, which was a rebound from Q2' s relatively weak reading of 147, 000 per month. Additionally, the unemployment rate ended the quarter at 4.1%, flat for the quarter but up from 3.7% at the beginning of the year. While the pace of expected hirings has gradually slowed, layoff rates have remained near multi -year lows and weekly jobless claims are firmly below their long- term averages indicating the labor market remains healthy.
I certify that all of the investments reported herein are in accordance with the " City of Lathrop Investment Policy" adopted on October 14, 2024, 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.
Step alvatore Cari Jam
City Manager Director if Finance
TABLE:
2 CITY
OF
LATHROP
Summary
of
All
Investments
As
ofSeptember
30,
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, 172 943 68, 302, 021
4.575% 4.990% 290% 5.
26. 64% 13%. 30% 24.
Total
Investments
Held
by
the
City (
1)
146, 35 966
4. 918 %
08% 52.
Trustee
Held
Investments
Recorded
Value
Current
Yield
Percent
of
P
ortfolio
US
Bank UMB
Bank
Union
Bank
SJCounty
Pooled
Funds
PFM
Asset Management +
Year
End
FMV
PNC
Bank
3, 257 928 454, 523 1
183, 054
129, 271 145 508,66
430%. 430%. 0 .
000% 0 .260% 820% 4. 4. 700 %
1 .
16% 0 .
52%
0.0% 0.7% 00% 46. 0 .
18 %
Total
Investments
Held
by
Trustees (
2)
134, 675 216
4.800%
92% 47.
Total
City &
Trustee
Held
Investments &
Cash
Recorded
Value
Current
Yield
Percent
of
Portfolio
Investments
Held
by
the
City
and
Trustees
Cash
inChecking
Accounts - Reco
rded
Value
281, 02 182 60, 38478
4 .
861%
100 .
00%
Total
Cash
and
Investments
341, 405, 561
mo
One
nth
benchmark U. Sfor
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.
06% 5.
4. 92%
TABLE:
3 CITY
OF
LATHROP
In
vestments Cash
Flow
Analysis
As
ofSeptember
30,
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
002 74, 871 3, 159 206 68, 007, 234
13, 737 294, 788
Total
Investments
Held
by
the
City
146, 037 441
308, 525
Investments
Held
by
Trustees
Prior
Month
Recorded
Value
Purchased Buy)
Redeemed Sell)
PNC
Bank
SJCounty
Pooled
Funds
UMB
Bank
US
Bank (
3)
PFM
Asset Management +
Year
End
FMV
506,49 183, 054
2, 933 876 5, 371 412 126, 950 424
2, 017 5, 270
636, 207 1 10, 61740
623) 484, 1,691) 3, 749 919) 8, 296,
Total
Investments
Held
by
Trustees
135, 94 315 $
12, 261 133 $ (
232) 13, 531
Total
Cash
inChecking
Accounts
Held
by
the
City (
2)
63, 353 460
9, 08518
000) 12, 055
Total
Cash
and
Investments
Held
by
the
City
and
Trustees
345,36 21 $
21, 655, 576 $ (
232) $ 25, 586,
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,
Develo
per
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
In
vestments Held
by
City -
Detail
As
ofSeptember
30,
2024
Agency (
Broker)
Yield
Investment Coup
toon
Purchase
Maturity
Descripti
on Rate
Maturity
Date
Date (
No
Local
Agency
Investment Fund
Money
Market
Fund
City
Acct
No .
98- 39 437
N/ A
4 .
575 %
Varies
On
Demand
74,
74,
Fargo Mutu
Wells
al
Funds
Money
Market
Mutual
Fund
City
Acct
No .
12641627
N/ A
4 .
990%
Varies
On
Demand
3,
3,
Califorina
Asset Management
Program Liquidity
Account
No .
6084- 001
N/ A
5 .
290%
Varies
On
Demand
68,68,
TOTAL
INVESTMENTS
HELD
BY
CITY $
146,
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
ofSeptember
30,
2024
InvestmentDescription Acct
Number
CUSIP
Current
Purchase
Maturity
Yield
Date
Investments
Held
by
US
Bank
03- 1
Series
2015 -
Mossdale
Village
Assessment
District
Mossdale
Village
Assessment
Dist.
No .
03- 1
Series
2015 -
Redempti
Fund on
Mossdale
Village
Assessment
Dist.
No.
03- 1
Series
2005/1 -
Reserve
Fund
Mossdale
Village
Assessment
Dist.
No.
03- 1
Series
2015 -
Prepayment
Fund LTHRP
FIN
REVEN
AUTH
BON
UE
DS
2023
SERIES
A Money
Rev
Market -
Acco
enue
unt
Money
Market -
Special
Tax
Fund
Money
Market -
CFD
Reserve
Account Money
Market -
Reserv
ReAD
eAccount
Money
Market -
Acquired
Obligations
Fund
2003-A
Lathrop
CFD
Money
MarketInterest
Account
Money
M
arket -
Acco
Reserve
unt
LAIF -
Interest
Account
CDPH/WR -
Loan
SRF
Agreement
Account
Agreement
Account -
Reserve
Fund Cro
2015
ssroads
Series
B
2015
Crossroads
Series
B -
2015
Crossroads
Series
B - Cro
2015
ssroads
Series
B -
2015
Crossroads
Series
B -
2015
Crossroads
Series
B -
LOIB
RDP
LOIB
Reserve
Cost
of
Issuance Improvements COI
Custodian
Agreement
Investments
Held
by
Ban
PNC
k
by
Account
2012
Loan (
Water
Refun din of
g
2000
Water
COPs)
of
Certificate
Deposit -
Reserve
Fund
6712138601 6712138602 6712138604 278276000 278276003 278276004 278276006 278276008 6711720001 6711712200 6711720002 6711908800 6711908801 6712138801 6712138803 6712138804 6712138805 6712198801 4 .
430% 4 .430% 4 .430 % 430%. 4.30% 430%. 4.30% 4.30% 4.30% 4.30 %575% 4. 10/8 05 10/8 05 10/8 05 7/ 1/ 23 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
On
Demand
On
Demand
On
Demand
4 .
430 %
12/ 20
On
Demand $
430%.
12/ 20
On
Demand $
430%. 4.30% 430 %.430%. 4.30%
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
Investments
Held
by
Trustee -
US
Bank $
0.90%
5/ 22/ 19 $
Total
Investments
Held
by
Trustee -
PNC
Bank $
TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Trustee -
Detail
As
ofSeptember
30,
2024
Investment
Current
Purchase
Maturity
Description Acct
Number
CUSIP
Yield
Date
Investments
Held
by
UMB
Bank
by
Account
2018- 1
Central
Lathrop
CFD Improvement
Area
1 -
Admin
Expense
Reserve
Fund Improv eme
Other
nt
Areas -
Admin
Expense
Reserve
Fund Improvement
Area
1 -
Principal
Account Improve ment
Area
1 -
Redemption
Account
Improvement
Area
1 -
Interest
Account Impro vement
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 - Accou
Interest
nt Improvement
Area
2 -
Admin
Expense
Account Impro vement
Area
2 -
Reserve
Fund Improvement
Area
2 -
Surplus
Fund
Improvement
Area
3 -
Acco
Principal
unt Improvement
Area
3 -
Redemption
Account Improvement
Area
3 -
Interest
Account Improvement
Area
3 -
Admin
Expense
Account Improvement
Area
3 -
Reserve
Fund Improvement
Area
3 -
Surplus
Fund
Improvement
Area
4 -
Acco
Principal
unt Improvement
Area
4 -
Redemption
Account
Improvement
Area
Intere4 -
stAccount 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
Acco
unt
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
149268.4149268. 5
149268. 6
149269.
1 149269. 2 149269. 3
149269.
4 4.30%
02/1 19
On
Demand
430%.
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
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
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
430%.
02/1 19
On
Demand
4 .
430%
02/1 19
On
Demand
4.30 %
02/1 19
On
Demand
430%.
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
430%.
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
430%.
02/1 19
On
Demand
430%.
02/1 19
On
Demand
4.30%
02/1 19
On
Demand
430%.
02/1 19
On
Demand
4.30 %
02/1 19
On
Demand
4.30%
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
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
ofSeptember
30,
2024
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Improvement
Area
5 -
Reserve
Fund
Improvement
Area
5 -
Surplus
Fund
2018-
La
Central
CFD
throp
Special
Tax
Fund
Surplus
Fund
Investments
Held
by
San
Joaquin
County
by
Account
Sanitary
Assessmen
Sewer
tDistrict #
1 Pooled
Funds -
Redemption
Account
Investments
Held
by
PFM
Asset Management
Acco
by
unt
PFM
Man
Asset
agement
Money
Market
Fund
USTreasury
Note
Bond /
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
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
US
NoTreasury
tes
USTreasury
Notes
USTreasury
Notes
US NoTreasury
tes
USTreasury
Notes
149269 .
5 149269. 6 149261. 1 149261 .
2 4 .
430 %
02/1 19
On
Demand $
430%.
02/1 19
On
Demand $
430%.
02/1 19
On
Demand $
430%.
02/1 19
On
Demand $
Total
Investments
Held
by
Trustee -
UMB
Bank $
SJ
CO
FUND #
57961
0 .
260 %
10/ 87
On
Demand $
T
otal
Investments
Held
by
Trustee -
San
J
oaquin
County $
20260109
PFM
Funds -
Govt
Select
AA
Am $
912820B8
5 .
000%
09/ 30 23
30/ 25 $ 09/
91282CFP1
4 .
250%
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
4.000%
12/5 2
12/5 2 $
91282CGA3
4 .
000%
12/5/ 2
12/5 2 $
91282051
250 % 4.
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 $
91282CGL9
4 .
000 %
02/ 15 23
02/ 15 26 $
91282CGL9
4 .
000%
02/ 15 23
02/ 15 26 $
91282CGL9
000% 4.
02/ 15 23
02/ 15 26 $
9128286F2
2 .
500%
02/ 28 19
02/ 286 $
91282CGR6
4.625%
03/ 15 2
03/ 15 26 $
91282CKH3
4 .
500%
03/ 31 24
03/ 31 26 $
91282CGV7
3.750%
04/ 15 23
04/ 15 26 $
91282CKK6
4.875%
04/ 30 2
04/ 30 26 $
91282CHB0
3.625%
05/ 1 23
05/ 1 26 $
91282CKS9
4. 875%
05/ 31 24
31/ 26 $ 05/
91282CHH7
4.125%
06/ 15 23
06/ 15 2 $
91282CHH7
4.125%
06/ 15 23
06/ 15 2 $
91282CKY6
4. 625%
07/1 24
06/ 30 2 $
91282CHM6
500% 4.
07/ 15 23
07/ 15 26 $
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
ofSeptember
30,
2024
InvestmentDescription Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
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
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury Subto
tal:
91282CLB5 91282CHU8 91282CHU8 91282CLH2 91282CHY0 91282CJC6 91282CJK8 91282CJK8 91282CJP7 91282CJT9 91282CKA8 91282CKE0 91282CKJ9 91282CKR1 91282CKR1 91282CKR1 91282CKV2 91282CKZ3 91282CKZ3 91282CLG4 4 .
375% 4.375% 4 .375% 3. 750 % 4.625% 4 .625% 4. 625 % 625% 4. 4 .375% 4. 000 % 125% 4. 250% 4. 4 .500 % 4 .500% 4 .500% 4 . 500% 625% 4. 4.375% 4 .375% 3.750%
07/ 31 24 08/ 15 23 08/ 15 23 09/3 24 09/ 15 23 10/5/ 23 11/5/ 23 11/5 23 12/5/ 23 01/ 15 24 02/ 15 24 03/ 15 24 04/ 15 2 05/ 1 24 05/ 1 24 05/ 1 24 06/ 17 24 07/ 15 24 07/ 15 24 08/ 15 24 07/ 31 26 08/ 15 26 08/ 15 26 08/ 31 26 09/ 15 26 10/5 26 11/5 26 11/5 26 12/5 26 01/ 15 27 02/ 15 27 03/ 15 27 04/ 15 27 05/ 1 27 05/ 1 27 05/ 1 27 06/ 15 27 07/ 15 2 07/ 15 2 08/ 15 27 TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Trustee -
Detail
As
ofSeptember
30,
2024
InvestmentDescription Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Supra -
national
A
gency
ond / B
Note
Intl
BK
Recon &
Develop
Notes
Intl
Finance
No
Corp
tes
Inter -
American
Devel
BKCorporate
Notes
Supra -
National
Agency
Subtotal AgeFederal
Bo
ncy
nd/ Note
Fannie
Mac
Notes (
Callable)
Federal
Lo
Home
an
Banks
Notes (
Callable) Ho
Federal
me
Loan
No
Banks
tes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
FFCB
Bonds
Fannie
Mae
Notes (
Callable)
Fannie
Mae
Notes (
Callable)
Federal
Agency
Subtotal:
Interest Total
Accrued
Interest +
Year
End
FMV
459058LE1
4 .
750 %
04/ 10 2
04/ 10 26
45950KDF4
4 .
375%
12/ 06/ 23
01/ 15 27
4581X0EM6
375% 4.
12/ 23
02/1 27
3134GXM35
3 .
600%
08/5 22
08/1 25
3130AN3T5
1. 000%
03/ 21
03/ 26
3130ALGJ7
1 .
000%
03/ 21
03/ 26
3130ANCD0
1 .
110%
07/ 30 21
07/ 26
3133EPSW6
4.500%
08/ 14 23
08/ 14 26
3135G06L2
0 .
875%
12/8/ 20
12/8 26
3135GAS28
5 .
420 %
04/ 30 2
04/ 237
Total
In
vestm ents
H
eld
by
Trustee -
PFM
Asset
Manageme
nt
T
otal
Investments
Held
by
Trustees $