City of Lehr
Quarterly Treasurer Report
March 2025
ITEM 4.
This report presents a detailed discussion of the City' sfund balances and investment portfolio as of March 31, 2025. 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, 2025, 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 Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.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, 2025 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
213,3, 336 61% 224, 306, 210 62%
135, 002,55 39% 136, 99, 008 38%
9 361,
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 2025 was characterized by uncertainty and worsening consumer sentiment due to the volatile rollout of the new administration' s policies.
Pro -growth fiscal policies proposed on the campaign trail including tax cuts and deregulation have yet to be realized, leaving rapidly changing tariff policy to weigh on growth prospects. Escalating trade tensions from tariffs have increased the probability of a U. S. economic recession in 2025. Progress towards the Federal Reserve' s (Fed) 2% target remains stalled with goods inflation moving higher even before tariff policies were enacted. Fed Chair Powell noted economic data has not yet reflected tariffs and reiterated it will be difficult to directly project the impact of these policies on prices. Tariff concerns among consumers appear to be rising, as expectations for inflation over the next 12 months reached their highest levels since early 2023. U. S. Treasury yields moved lower in response to deteriorating growth expectations over the near term. While the Fed held rates steady over the quarter, futures markets are pricing in four 25 bps rate cuts for 2025. The labor market remains surprisingly resilient with both initial jobless claims and the unemployment rate at historically low levels. Additionally, monthly job gains continue to keep pace with labor force growth. With quits and hiring rates low, any acceleration in layoffs may result in job seekers remaining unemployed for longer. Federal job cuts and funding freezes could impact the hiring plans of sectors such as healthcare and higher education which rely on government funding.
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.
Stephen J. Salvatore
City Manager
Cari J
Direct. r o Finance
TABLE:
2 CITY
LATHROPF
Summary
of
All
Investmentsof
As
March
31,
2025
City
Held
In
vestme nts Recorded
Value
Current
Yield of Percent
P
ortfolio
Local
Agency
Investment
Fund
Wells
Fargo
Money
Market
Mutual
Funds
California
Asset Management
Program
000, 75 3, 244 833 69, 914, 577
4 .
313% 4 .
150 % 4 .
470%
26 .
30% 1 .
14 %
24 .
52%
Total
Investments
Held
by
the
City (
1)
148,59 40
384 % 4.
51. 96%
Trustee
Held
Investments
Recorded
Value
Current
Yield
Percent
of
Portfoli
o
US
Bank UMB
Bank
Union
Bank
SJCounty
Pooled
Funds
PFM
Asset Management +
Year
End
FMV
PNC
Bank
3,14 500 700, 556 1
248, 339
131,85 096 520,16
4 .
290% 3 .680% 0 .
000% 0 .
260% 4 .290 % 4 .700 %
1 .
16% 0 .
60%
0.0% 0 .
09 %
46 .
01 %
0 .
18%
In
Total
vestments
Held
by
Trustees (
2)
136, 969 008
277% 4.
48. 04%
Total
City &
Trustee
Held
Investments &
Cash
Recorded
Value
Current
Yield
Percent
of
Portfoli
o
Investments
Held
by
the
City
and
Trustees
Cash
inChecking
Accounts -
Recorded
Value
285, 128 41 76, 146, 800
4.332%
100 .
00%
Total
Cash
and
Investments
361, 27518
One
month
benchmark U. Sfor
Treasuries:
Three
month
benchmark U. Sfor
Treasuries:
Notes: 1)
See
Table:
4 for
detailed
investments
held
by
the
City.
2)
See
Table:
5 for
detailed
investments
held
by
Trustees. 4.
37%
4. 34%
TABLE:
3 CITY
OF
LATHROP
Investments Cash
Fl
Analysisow
As
of
March
31,
2025
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
000, 75 3, 234, 4 69,50 243
10, 399 264, 33
Total
Investments
Held
by
the
City
147, 884 677
274, 733
Investments
Held
by
Trustees
Prior
Month
Recorded
Value
Purchased Buy)
Redeemed Sell)
PNC
Bank
SJ
Po
County
oled
Funds
UMB
Bank
US
Bank (
3)
PFM
Asset Management +
Year
End
FMV
518, 646 249, 47
2, 926 05 3, 932, 553 128, 88167
1, 870 4, 004 442, 738
11, 680, 05
140) $,473) $ 229, 1791) $ 060, 1820) $ 9, 376
Total
Investments
Held
by
Trustees
136, 50869 $
12,28 662 $ (
223) $ 668, 11
Total
Cash
inChecking
Accounts
Held
the
by
City (
2)
72, 655, 246
9, 868, 972
418) $ 6, 377,
Total
Cash
and
Investments
Held
by
the
City
and
Trustees
357, 048 492 $
22,72 367 $ (
641) $ 18, 045
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 &
Mexpenses.
3)
Interest
earnings
from
BlackRock
Liquidity
Funds
T -
Funds
30 Day
Yield
4. 290%,
debt
service
payments.
TABLE:
4 CITY
OF
LATHROP
Investments
Held
by
City -
Detail
of
MarchAs 31,
2025
Broker) Agency (
Investment Description
Yield
Co
toupon
Purchase
Maturity
Rate
Maturity
Date
Date (
No
Local
Agency
Investment
Fund FargoWells
Mutual
Funds
Money
Market
Fund
City
Acct
No.
98- 39- 437
Money
Market
Mutual
Fund
City
Acct
No .
N/ A
4 .
313 %
Varies
On
Demand
75,
75,
12641627
N/ A
150% 4.
Varies
On
Demand
3,
Califorina
Asset Management
Program Liquidity
Account
No .
6084- 001
3,
N/ A
4.70%
Varies
On
Demand
69,
69,
TOTAL
INVESTMENTS
HELD
BY
CITY $
148,
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
of
March
31,
2025
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
Mossdale
Village
Assessment
Dist.
No .
03- 1
Series
2015 -
Redemption
Fund
Mossdale
Village
Assessment
Dist.
No.
03- 1
Series
2005/1 -
Reserve
Fund
Mossdale
Village
Assessment
Dist.
No.
03- 1
Series
2015 -
Prepayment
Fund FIN
LTHRP
REVEN
AUTH
UE
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 La
2003-A
throp
CFD
M
oney
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 -
2015
Crossroads
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
Account
2012
Loan (
Water
Refun ding
of
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 .
290% 290% 4. 4.290% 4. 290 % 4 .290% 4 .
290% 290 % 4. 4.290%
10/8 05 10/8 05 10/8 05 7/ 1 23 7/ 23 7/ 1 23 7/ 1 23 7/ 23
4.290%
12/ 03
4.290%
12/ 03
4. 313 %
03/ 19
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand
On
Demand $
On
Demand $
On
Demand $
290% 4.
12/ 20
On
Demand $
4 .
290%
12/ 2/0
On
Demand $
4.290% 290% 4.290% 4. 4.290% 4.290%
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 $
700% 4.
5/ 22/ 19 $
Total
In
vestments
Held
by
Trustee -
PNC
Bank $
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
of
March
31,
2025
InvestmentDescription Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Investments
Held
by
UMB
Bank
by
Account Cen
2018- 1
Lathro
tral
p
CFD
Improvement
Area
1 -
A
dmin
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
Reserve Fun1 -
d
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 Impro vement
Area
Reserv2 -
e
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
Re3 -
serve
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
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
3 .
680 %
02/1 19
On
Demand
3. 680%
02/1 19
On
Demand
3. 680 %
02/1 19
On
Demand
3. 680%
02/1 19
On
Demand
3. 680%
02/1 19
On
Demand
3. 680 %
02/1 19
On
Demand
3. 680%
02/1/ 19
On
Demand
3 .
680 %
02/1/ 19
On
Demand
3. 680%
02/1/ 19
On
Demand
3. 680 %
02/1 19
On
Demand
3. 680 %
02/1/ 19
On
Demand
3. 680 %
02/1 19
On
Demand
3. 680%
02/1 19
On
Demand
3. 680 %
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
3. 680 %
02/1/ 19
On
Demand
3. 680%
02/1 19
On
Demand
3 .
680%
02/1 19
On
Dema
nd3 .
680 %
02/1 19
On
Demand
3.680%
02/1 19
On
Demand
3.680%
02/1/ 19
On
Demand
3.680%
02/1 19
On
Demand
3.680%
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
3.680%
02/1/ 19
On
Demand
TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Trustee -
Detailof
As
March
31,
2025
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Improvement
Area
5 -
Reserve
Fund Improvement
Area
5 -
Surplus
Fund Cen
2018-
traLathrol
p
CFD
Special
Tax
Fund Fu
Surplus
nd
Investments
Held
by
Jo
San
aquin
County
by
Account San itary
Sewer
Assessment
District #
1 Pooled
Funds -
Redemption
Account Investments
Held
by
PFM
Asset Management
Acco
by
unt
PFM
Mana
Asset gement
M
oney
Market
Fund
USTreasury
No
Bond /
te
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
US
No
Treasury
tes
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
US
NoTreasury
tes
USTreasury
Notes
USTreasury
Notes
149269 .
5 149269. 6 149261. 1 149261 .
2 3. 680%
02/1 19
On
Demand $
3. 680%
02/1 19
On
Demand $
3. 680%
02/1 19
On
Demand $
3. 680 %
02/1 19
On
Demand $
Total
Investme ns
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
91282CGR6
4.625%
03/ 15 2
03/ 15 26 $
91282CKH3
500% 4.
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
05/ 31 26 $
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
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 $
91282CJK8
625% 4.
11/5 23
11/5 26 $
91282CJP7
375% 4.
12/5 23
12/5/ 26 $
91282CJP7
4.375%
12/5 23
12/5 26 $
91282CME8
4. 250%
12/ 31 24
12/ 31 26 $
91282CJT9
4. 000%
01/ 15 24
01/ 15 27 $
91282CMH1
4.125%
01/ 3 25
01/ 3 27 $
91282CKA8
4. 125%
02/ 15 24
02/ 15 27 $
91282CKE0
4. 250%
03/ 15 24
03/ 15 27 $
TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Trustee -
Detail
As
of
March
31,
2025
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
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
USTreasury
Subtotal:
91282CKJ9 91282CKR1 91282CKR1 91282CKR1 91282CKV2 91282CKZ3 91282CKZ3 91282CLG4 91282CLL3 91282CLQ2 91282CLX7 91282CMB4 91282CMF5 91282CMN8
4.500% 4 .
500 %4. 500% 500% 4. 4 .625% 375 % 4. 4. 375% 3.750% 3 .375% 3. 875% 4. 125 % 4 . 000% 4.250% 250 % 4.
04/ 15/ 24 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 12/6 24 01/ 15 2 02/ 18 25 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 12/5 27 01/ 15/ 28 02/ 15 28 TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detailof
As
March
31,
2025
InvestmentDescription Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
nation
Supra -
al
Agency
ond / B
Note
Intl
BK
Recon &
Develop
Notes
Intl
Finance
Corp
Notes
Inter -
Dev
American
elCorporate BK
Notes
Supra -
Nati
onal Agency
Subtotal
Federal
Agency
NoBond/
te
Fannie
Mac
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable) Ho
Federal
me
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
FFCB
Bonds
Fannie
Mae
Notes (
Callable)
Federal
Home
Loan
Bank
Fannie
Mae
Notes (
Callable)
Federal
Agency
S
ubtotal:
Interest Total
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/ 2/1
03/ 26
3130ALGJ7
1.000%
03/ 21
03/ 26
3130ANCD0
1.10 %
07/ 30 21
07/ 26
3133EPSW6
500% 4.
08/ 14 23
08/ 14 26
3135G06L2
0 .
875%
12/8 20
12/8 26
3130B5K64
000 % 4.
03/ 14 25
03/ 10 27
3135GAS28
5. 420%
04/ 30 2
04/ 237
Total
Investments
Held
by
Trustee -
PFM
Ass
et
Manag
ement
Total
Investments
Held
by
Trust
ees