City of
Quarterly Treasurer Report
December 2024
ITEM 4.
This report presents a detailed discussion of the City' sfund balances and investment portfolio as of December 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 December 31, 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' 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 Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.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' 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 December 31, 2024 compared with the prior quarter:
Holding Party Fund Amounts (1)
of
Portfolio
Fund Amounts (i)
of
Portfolio
Investments/ Cash held by the City
Investments held by Trustees
206, 730, 344 61%
134, 675, 216 39%
213,3, 336
135, 002,55
61%
39%
TOTAL ! 341, 405, 560 00', 348, 235, 391
1) Small variances are due to the summation and rounding of multiple figures to the nearest whole dollar 00%
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 fourth quarter of 2024 was characterized by an increase in yields and volatility as investors digested the potential impact of the new administration' spolicy proposals. Areas of focus include taxes, tariffs, immigration, and deregulation, which the market generally expects could result in more growth, larger budget deficits and higher inflation. The Fed cut the overnight rate by 25 basis points (bps) (0. 25%) at both its November and December meetings to bring the new target range to 4. 25% - 4. 50%.
The Fed' supdated " dot plot" implied only 50 bps of rate cuts in 2025, down from previous projections indicating a full percentage point of rate cuts in 2025. This revision, plus some pointed commentary from Fed officials, has resulted in the market generally expecting the Fed to pause rate cuts for some time. While sentiment remained positive in Q4 and continued to support risk asset valuations, the Fed' s "higher for longer" narrative towards the end of the quarter caused Treasury yields beyond one year to rise while equity markets sold off from all- time highs. The U. S. Tabor market continued to show strength with 511, 000 jobs added in Q4 compared to 477, 000 in Q3. Additionally, the unemployment rate ended the quarter at 4.1%, which is 0.4% higher than the calendar year low of 3.7%, but still near historic lows. Layoff rates continue to remain near multi - year lows and jobless claims also remain below their long- term averages while the pace of wage growth has stabilized.
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 en J. Salvatore
City Manager
Cari James
Director of i ance
TABLE:
2 CITY
OF
LATHROP
Summary
of
All
Investments
As
of
December
31,
2024
City
Held
Investments
Recorded
Value
Current
Yield
Percent
of
Portfoli
o
Local
Agency
Investment
FundFargo Wells
Money
Market
Mutual
Funds
California
Asset Management
Program
000, 75 3, 210, 746 69, 142, 713
434%. 4. 350 % 4 .
730%
26 .
56% 1 .
14 %
24 .
49%
ToInv
tal
estments
Held
by
the
City (
1)
353, 49 147,
571% 4.
52 .
19%
Trustee
Held
Investments
Recorded
Value
Current
Yield
Percent
of
Portfolio
US
Bank UMB
Bank
Union
Bank Co
SJ
unty
Pooled
Funds
PFM
Asset Management +
Year
End
FMV
PNC
Bank
3, 588,61 1, 469 010 250, 303
129,7 650 514,32
4 .
430% 3 .
790 % 0 .
000% 0 .
260% 280% 4. 700% 4.
1 .
27% 0 .52 %
0 .
00% 09%. 45 .
75% 0 .
18%
Total
Investments
Held
by
Trustees (
2)
135, 00256
4 .
273%
81% 47.
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
282, 355 51 879,7 65
428%.
100 .
00%
Total
Cash
and
Investments
348,
235,
391
One
month
benchmark
for
U. S
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. 4.
50%
4. 39%
TABLE:
3 CITY
OF
LATHROP
Investments
Cash
Fl
Analysisow
As
of
December
31,
2024
Investments
Held
by
the
City
Prior
Month
Recorded
Value
Purchased
Redeemed
Buy) (
Sell)
Local
Agency
Investment
Fund (
1)
Wells
Fargo
Money
Market
Mutual
Funds (
2)
California
Asset Management
Program
75, 000 3, 198 774 68, 866 991
11, 972 275, 722
Total
Investments
Held
by
the
City
147, 065 74
287, 695
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 +
Year
End
FMV
512,57 181, 77
1, 464, 559 3, 287, 675 127, 051 802
1, 975 71,17 4,51 308, 411 259, 935
525) $ 7,088) $ 7, 132,
Total
Investments
Held
by
Trustees
132, 498 365 $
9, 646, 488 $ (
798) $, 142,
Total
Cash
inChecking
Accounts
Held
by
the
City (
2)
65, 278 612
16, 573, 465 (
200) $ 15, 972,
Total
Cash
and
Investments
Held
by
the
City
and
Trustees
344, 82 74 $
26, 507 648 $ (
998) $ 23, 114
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
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
O &
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
December
31,
2024
Broker) Agency (
Investment Description
Yield
Coupon
to
Purchase
Maturity
Rate
Maturity
Date
Date (
No
LoAgencal
cy
Investment
Fund FargoWells
Mutual
Funds
Money
Market
Fund
City
Acct
No.
98- 39 437
N/ A
4.34%
Varies
On
Demand
75,
Money
Market
Mutual
Fund
City
Acct
No .
75,
12641627
N/ A
4 .
350%
Varies
On
Demand
3,
Califorina
Asset Management
Program Liquidity
Account
No .
6084- 001
3,
N/ A
730 % 4.
Varies
On
Demand
69,
69,
TOTAL
INVESTMENTS
HELD
BY
CITY $
147,
TABLE:
5 CITY
OF
LATHROP
Investments
eld H
by
Trustee -
Detail
As
of
December
31,
2024
Investment Description
Acct
Number
CUSIP
Current
Purchase
Maturity
Yield
Date
Investments
Held
by
US
Bank
03- 1
Series
2015 -
Mossdale
Vill
Assessme
nt age District
M
ossdale
Village
Assessment
Dist.
No.
03- 1
Series
2015 -
Redemption
Fund Mossdale
Village
Assessment
Dist.
N
03- 1
Serieso. 2005/1 -
Reserve
Fund
Mossdale
Village
Assessment
Dist. No.
03- 1
Series
2015 -
Prepayment
Fund FIN
LTHRP
REVEN
AUTH
BOND
UE
S
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 La
2003-A
throp
CFD
Money
MarketAcco
Interest
unt
Money
Market -
Reserve
Account
LAIF -
Interest
Account
CDPH/WR -
Loan
SRF
Agreement
Account
Agreement
Account -
Reserve
Fund
2015
Crossroads
Series
B Cro
2015
ssroads
Series
B -
2015
Crossroads
Series
B -
2015
Crossroads
Series
B - Cro
2015
ssroads
Series
B -
2015
Crossroads
Series
B -
LOIB
RDP
LOIB CoReserve st
of
Issuance Improvements COI
Custodian
Agreement
Investments
Held
by
PNC
Bank
by
Account
2012
Water
Refu
Loan (
of
nding
2000
Water
COPs)
Certificate
of
Deposit -
Reserve
Fund
6712138601 6712138602 6712138604 278276000 278276003 278276004 278276006 278276008 6711720001 6711712200 6711720002 6711908800 6711908801 6712138801 6712138803 6712138804 6712138805 6712198801
4.30% 4.30% 4.30% 430%. 4.30% 4.30% 430%.430%. 430%.430%. 4.34% 10/8/ 05 10/8 05 10/8/ 05 7/ 1 23 7/ 23 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 $
4 .
430 %
12/ 2/0
On
Demand $
4.30 % 4 .
430% 4 .430% 4 .430 % 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
T
otal
Investm
ents
Held
by
Trustee -
US
Bank $
4.700%
5/ 22/ 19
Total
Investm ents
Held
by
Tr
ustee -
PNC
Bank $
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detailof
As
December
31,
2024
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Investments
Held
by
UMB
Bank
by
Acco
unt Cen
2018- 1
tralLathrop
CFD
Improvement
Area
1 -
Admin
Expense
Reserve
Fund
Other Improvement
Areas -
Admin
Expense
Reserve
Fund
Improvement
Area
1 -
Principal
Account
Improvement
Area
1 -
Redemption
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
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
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 -
Principal
Account
Improvement
Area
4 -
Redemption
Account
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
Acco
unt
Improvement
Area
Admin5 -
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
3.790%
02/1 19
On
Demand
3.790%
02/1 19
On
Demand
3. 790 %
02/1 19
On
Demand
3 .
790%
02/1 19
On
Demand
3.790%
02/1 19
On
Demand
3.790%
02/1 19
On
Demand
3.790%
02/1/ 19
On
Demand
3 .
790%
02/1 19
On
Demand
3 .
790 %
02/1 19
On
Demand
3.790%
02/1/ 19
On
Demand
3 .
790%
02/1 19
On
Demand
3 .
790 %
02/1 19
On
Demand
3.790%
02/1 19
On
Demand
3 .
790%
02/1 19
On
Demand
3 .
790 %
02/1 19
On
Demand
3 .
790%
02/1 19
On
Demand
3.790%
02/1 19
On
Demand
3 .
790%
02/1 19
On
Demand
3. 790 %
02/1 19
On
Demand
3.790%
02/1 19
On
Demand
3. 790 %
02/1 19
On
Demand
3.790%
02/1 19
On
Demand
3.790%
02/1 19
On
Demand
3. 790 %
02/1 19
On
Demand
3.790%
02/1 19
On
Demand
3. 790 %
02/1 19
On
Demand
3 .
790%
02/1 19
On
Demand
3 .
790%
02/1 19
On
Demand
3. 790 %
02/1 19
On
Demand
3. 790%
02/1/ 19
On
Demand
TABLE:
5 CITY
OF
LATHR
OP
Investments Held
by
Trustee -
Detail
As
of
December
31,
2024
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Dat
e
Improvement
Area
5 -
Reserve
Fund Improvement
Area
5 -
Surplus
Fund Cen
2018-
Lathro
tral
CFDp
Special
Tax
Fund
Surplus
Fund
Investments
Held
by
Jo
San
aquin
County
by
Account San itary Assessmen
Sewer
tDistrict #
1 Pooled
Funds -
Redemption
Account Investments
Held
by
PFM
Asset Management
Acco
by
unt
PFM ManagemenAsset
t
Money
Market
Fund
USTreasury
No
Bond /
te
US
No
Treasury
tes
USTreasury
Notes
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
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
149269. 5 149269. 6 149261. 1 149261 .
2 3 .
790%
02/1 19
3.790%
02/1 19
On
Demand $
On
Demand $
3. 790%
02/1 19
On
Demand $
3. 790%
02/1 19
On
Demand $
otal T
Investments
Held
by
Trustee -
UMB
Bank $
SJ
CO
FUND #
57961
0 .
260%
10/ 87
On
Demand $
Total
Investments
Held
by
Trustee -
San
J
oaquin
C
nty
ou
20260109
PF
M
Funds -
Govt
Select
AAAm
91282CJS1
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
91282CGL9
4.000%
02/ 15 23
02/ 15 26
91282CG
L9
000 % 4.
02/ 15 23
02/ 15 26
91282CGL9
4 .
000%
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
91282CK59
4 .
875%
05/ 31 24
05/ 31 26
91282CHH7
4. 125 %
06/ 15 23
06/ 15 2
91282CHH7
4.125%
06/ 15 23
06/ 15 2
91282CKY6
625% 4.
07/1 24
06/ 30 2
91282CHM6
4.500%
07/ 15 23
07/ 15 26
91282CLB5
4.375%
07/ 31 24
07/ 31 26
91282CHU8
4.375%
08/ 15 23
08/ 15 26
91282CHU8
4. 375%
08/ 15 23
08/ 15 26
91282CLH2
3. 750%
09/3 24
08/ 31 26
91282CHY0
4.625%
09/ 15 23
09/ 15 26
91282CJC6
4.625%
10/5 23
10/5 26
91282CJK8
4.625%
11/5 23
11/5 26
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
of
December
31,
2024
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
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
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Subtotal:
91282CJK8 91282CJP7 91282CJP7 91282CJT9 91282CKA8 91282CKE0 91282CKJ9 91282CKR1 91282CKR1 91282CKR1 91282CKV2 91282CKZ3 91282CKZ3 91282CLG4 91282CLL3 91282CLQ2 91282CLX7 4 .
625% 4 .
375% 4 .375% 4.000% 4 .
125 % 4 .
250% 4.500% 500% 4. 4 .
500% 4.500% 4 .
625% 4.375% 4 .
375% 3 .750% 3.75% 3 .875% 4 .
125 %
11/5 23 12/5 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 09/ 16 24 10/5 24 11/5 24 11/5 26 12/5 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 09/ 15 27 10/5 27 11/5 27 TABLE: 5
CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
of
December
31,
2024
InvestmentDescription Acct
Number
Currenturchase P
Maturity
CUSIP
Yield
Date
natio
Supra -
nal
Agency
Bond /
Note
Intl
BK
Recon &
Develop
Notes
Intl
Finance
No
Corp
tes
Inter -
American
Devel
BKCorporate
Notes
Supra -
National
Agency
Subtotal
Federal
Bo
Agency
nd/ Note
Fannie
Mac
Notes (
Callable)
Federal
Lo
Home
an No
Banks
tes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
FFCB FanBonds nie
Mae
Notes (
Callable)
Fannie
Mae
Notes (
Callable)
Federal
Agency
Subtotal:
ToInterest tal
Accrued
Interest +
Year
End
FMV
459058LE1
4 .
750 %
04/ 10 2
04/ 10 26
45950KDF4
375% 4.
12/ 06 23
01/ 15 27
4581X0EM6
4.375%
12/ 23
02/1 27
3134GXM35
3.600%
08/5 22
08/1 25
3130AN3T5
1 .
000%
03/ 21
03/ 26
3130ALGJ7
000% 1.
03/ 21
03/ 26
3130ANCD0
1.10%
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
Investments
Held
by
Trustee -
PFM
Asset Management $
Total
I
nvestments
Held
by
Trustees $