ITEM 4. 6
Quarterly Treasurer Report
June 2025
This report presents a detailed discussion of the City' sfund balances and investment portfolio as ofJune 30, 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 June 30, 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' 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' 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 Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.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' s cash and investments, by holding party, based on recorded value as of June 30, 2025 compared with the prior quarter:
Stephen J. Salvatore
City Manager
Investments/ Cash held by the City 243, 003, 586
Investments held by Trustees
Fund Amounts (1)
224, 306, 210
136, 99, 008
of
Portfolio
62%
38% 139, 013, 399
64%
36%
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 second quarter of 2025 was characterized by growing uncertainty as markets reacted to the volatile rollout of tariffs that were larger than expected. Markets reacted negatively during the first two weeks of the quarter and experienced the largest declines since the onset of the COVID pandemic. The rest of the quarter was marked by equity and bond markets recovering to pre -tariff levels on constructive trade negotiations and stable economic data. Inflation remained relatively benign but is expected to increase in the second half of the year as tariff -related cost pressures begin to emerge. The timing, extent, and duration of these pressures are unknown. The Federal Reserve ( Fed) left the overnight policy rate unchanged at 4. 25% - 4. 50%. The Federal Open Market Committee' s (FOMC) "dot plot" continues to suggest 50 basis points ( bps) in rate cuts by the end of 2025, although there is a divergence of views as eight members are calling for two rate cuts in 2025 and seven are calling for none. The Tabor market remained healthy though early signs of cooling are emerging, such as rising initial jobless claims. Continuing claims have also increased, and a slower hiring rate may mean any acceleration in layoffs could result in unemployed workers remaining without a job for longer. Federal job cuts are beginning to flow through the data, but severance packages and deferred resignations have delayed the impact on claims data.
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.
Cari Jam
Directo Finance
TABLE:
2 CITY
OF
LATHROP
Summary
of
All
Investmentsof
As
June
30,
2025
City
Held
Investments
Recorded
Value
Current
Yield
Percent
of
Portfolio
Local
Agency
Investment
Fund
Wells
Fargo
Money
Market
Mutual
Funds
California
Asset Management
Program
000, 75 3, 278 78 95, 830, 946
269% 4. 150% 4. 4.00 %
23 .
95% 1 .
05 %60 % 3.
Total
Investments
Held
by
the
City (
1)
734 17,09
339 % 4.
55. 60%
Trustee
Held
Investments
Rec
orded
Value
Current
Yield
Percent
of
Portf
oli o
US
Bank UMB
Bank
Union
Bank
SJCounty
Pooled
Funds
PFM
Asset Management +
Year
End
FMV
PNC
Bank
Total
Investments
Held
byTrustees (
2)
3, 648 920 923 1, 714, 312, 687
132, 810 162 526, 707
139, 013 399
4 .
290% 3 .680% 0 .
000 % 0 .
260% 4 .290% 700% 4. 275% 4.
1 .
17%
0. 55 %0 .
00% 0 .
10 %
42 .
41% 0 .
17%
44 .
40%
Total
City &
Trustee
Held
Investments &
Cash Recorded
Value
Current
Yield
Percent
of
P
ortflio
Investments
Held
by
the
City
and
Trustees
Cash
inChecking
Accounts -
Recorded
Value
313, 123 68, 8935
4 .
310 %
00% 100.
Total
Cash
and
Investments
382, 016 985
One
month
benchmark U. for
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.
24%
4. 42%
TABLE:
3 CITY
OF
LATHROP
Investments
Cash
Flow
Analysis
As
of
June
30,
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
75, 000, 3, 26732 485, 234 95,
11, 456 345, 712
Total
Investments
Held
by
the
City
752, 565 173,
357, 169
Investments
Held
by
Trustees
Month
Pri
or Recorded
Value
PurchasedBuy)
Red
eemed
Sell)
PNC
Bank
SJCounty
Pooled
Funds
UMB
Bank
US
Bank (
3)
PFM
Asset Management +
Year
End
FMV
524, 613 312, 863
1, 710, 153 3,40, 88 130, 479 72
2, 094 4, 770 308, 041
11, 217 098
176) $ 665) $ 886,
Total
Investments
Held
by
Trustees
368, 237 $ 16,
532, 003 $ 11,
841) $, 886,
Total
Cash
inChecking
Accounts
Held
by
the
City (
2)
71, 263, 619
11, 521 148 (
914) $ 13, 890,
Total
Cash
and
Investments
Held
by
the
City
and
Trustees
384, 421 $ 38,
23, 410 32 $ (
755) $ 22, 777
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 froearnings
mBlackRock
Liquidity
Funds
T -
Funds
30 Day
Yield
290%, 4.
debt
service
payments.
TABLE:
4 CITY
OF
LATHROP
Investments
Held
by
City -
Detailof
As
June
30,
2025
Broker) Agency (
Investment Descripti
on
Yield
Coupon to
Purchase
Maturity
Rate
Maturity
Date
Date (
No
Local
Agency
Investment
Fund
Money
Market
Fund
City
Acct
No .
98- 39 437
N/ A
4.269%
Varies
On
Demand
75,
75,
FargoWells
Mutual
Funds
Money
Market
Mutual Fund
City
Acct
No .
12641627
N/ A
150% 4.
Varies
On
Demand
3,
Califorina
Asset Management
Program Liquidity
Account
No.
6084- 001
3,
N/ A
4 .
400%
Varies
On
Demand
95,95,
TOTAL
INVESTMENTS
HELD
BY
CITY $
174,
TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Trustee -
Detail
As
of
June
30,
2025
InvestmentDescription NumberAcct CUSIP
Current
Purchase
Maturity
Yield
Date
Investments
Held
by
US
Bank
03- 1
Series
2015 -
Mossdale
Villag
e
Assessment
District
Mossdale
Village
Assessment
Dist.
No.
03- 1
Series
2015 -
Redemption
Fund
Mossdale
Village
Assessment
Dist.
No.
03- 1
Series
2005/1 -
Reserve
Fund
M
ossdale
Village
Assessment
Dist.
No.
03- 1
Series
2015 -
Prepayment
Fund
LTHRP
AUTH
FIN
BON
REVENUE
DS
2023
SERIES
A
M
oney
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 MoCFD
ney
MarketAcco
Interest
unt
Money
Market -
Reserve
Account
LAIF -
Interest
Account
CDPH/WR -
SRF
Loan
Agreement
Account
Agreement
Account -
Reserve
Fund Crossro
2015
ads
Series
B Crossro
2015
ads
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
Ban
PNC
k
by
Account
2012
Loan (
Water
Refun din of
g
Wa
2000
ter
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. 290% 4. 290 % 4. 290% 4. 4 .
290% 290% 4. 290% 4. 4 .
290% 4 .290% 4. 269 %
10/8 05 10/8 05 10/8 05 7/ 1 23 7/ 2/3 7/ 1/ 23 7/ 1/ 23 7/ 2/3 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
4.290%
12/ 20
On
Demand $
290% 4.
12/ 20
On
Demand $
290% 4.290% 4. 4.290% 290% 4. 290 % 4.
09/1 15 01/ 159 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 $
4. 700 %
5/ 22/ 19 $
Total
Investments
Held
by
Trustee -
PNC
Bank $
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detailof
As
June
30,
2025
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Investments
Held
by
UMB
Bank
by
Acc
ount Cen
2018- 1
tral
Lathrop
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
Reserv2 -
e
Fund
Improvement
Area
2 -
Surplus
Fund
Improvement
Area
3 -
Principal
Account Improvement
Area
3 -
Redemption
Account Impro vement
Area
3 -
Acco
Interest
unt
Improvement
Area
3 -
Ex
Admin
Accou
pense
nt 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 -
Ex
Admin
pense
Account
Improvement
Area
4 -
Reserve
Fund
Improvement
Area
4 -
Surplus
Fund
Improvement
Area
5 -
Principal
Account
Improvement
Area
5 -
Redemption
Account
Improvement
Area
Intere5-
stAccount
Improvement
Area
5 -
A
dmin
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
680 % 3.
02/1 19
On
Demand
3.680%
02/1/ 19
On
Demand
680% 3.
02/1 19
On
Demand
3.680%
01/ 192/
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%
01/ 192
On
Demand
3 .
680%
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
3. 680%
01/ 192
On
Demand
3. 680%
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
680% 3.
02/1 19
On
Demand
3. 680%
01/ 192
On
Demand
3. 680%
02/1 19
On
Demand
680% 3.
02/1 19
On
Demand
3. 680%
02/1 19
On
Demand
3. 680%
02/1 19
On
Demand
680% 3.
02/1 19
On
Demand
3. 680%
01/ 192
On
Demand
3. 680%
02/1 19
On
Demand
3. 680%
02/1 19
On
Demand
680% 3.
02/1 19
On
Demand
3 .
680%
02/1 19
On
Demand
3.680%
02/1 19
On
Demand
680% 3.
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 -
Detail
As
of
June
30,
2025
DeInvestmentscription Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Improvement
Area
5 -
Reserve
Fund
Improvement
Area
5 -
Surplus
Fund Cen
2018-
Lathro
tral
p
CFD
Special
Tax
Fund
Surplus
Fund Investments
Held
by
San
Joaquin
County
by
Account Sanitary
Sewer
Assessment
District #
1 Pooled RedemptioFunds -
nAccount Investments
Held
by
PFM
Asset Management
by
Account Asse
PFM
Ma nat
gement
Money
Market
Fund
USTreasury
Bond /
Note
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
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
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
149269. 5
3.680%
02/1 19
On
Demand $
149269. 6 149261. 1 149261. 2
SJ
CO
FUND #
57961
680% 3.
02/1 19
On
Demand $
3.680%
02/1 19
On
Demand $
3 .
680%
02/1 19
On
Demand $
Total
Investments
Held
by
Trustee -
UMB
Bank $
0 .
260%
10/ 87
On
Demand $
Total
Investments
Held
by
Trustee -
San
Joaquin
C
ounty
20260109
PFM
Funds -
Govt
Select
AAAm
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
375% 4.
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
750% 3.
09/3 24
08/ 31 26 $
91282CHY0
625% 4.
15/ 2309
09/ 15 26 $
91282CJC6
4 .
625%
10/5 23
10/5 26 $
91282CJK8
4 .
625%
11/5 23
11/5 26 $
91282CJK8
625% 4.
15/ 231
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
125% 4.
31/ 250
01/ 3 27 $
91282CKA8
125% 4.
02/ 15 24
02/ 15 27 $
91282CKE0
250% 4.
03/ 15 24
03/ 15 27 $
91282CKJ9
500% 4.
15/ 240
04/ 15 27 $
91282CKR1
4. 500%
05/ 1 24
05/ 1 27 $
91282CKR1
500% 4.
05/ 1 24
05/ 1 27 $
91282CKR1
500% 4.
05/ 1 24
05/ 1 27 $
91282CNE7
3. 875%
06/2 25
05/ 31 27 $
91282CKV2
625% 4.
06/ 17 24
06/ 15 27 $
91282CKZ3
375% 4.
07/ 15 24
07/ 15 2 $
TABLE: 5
CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
of
June
30,
2025
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Subtotal:
91282CKZ3 91282CLG4 91282CLL3 91282CLQ2 91282CLX7 91282CMB4 91282CMF5 91282CMN8 91282CMS7 91282CMW8 91282CND9 91282CND9 91282CND9 375% 4. 3. 750 % 375%. 3 .
875 % 4 .
125% 000% 4. 250% 4. 4 .250% 3 .
875 %3. 750% 3 .
750% 3 .750 % 750% 3.
07/ 15 24 08/ 15 24 09/ 16 24 10/5 24 11/5 24 12/6 24 01/ 15 2 02/ 18 25 03/ 17 25 15/ 20405/ 1 2 05/ 1 2 05/ 1 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 03/ 15 28 04/ 15 28 05/ 1 28 05/ 1 28 05/ 1 28 TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Trustee -
Detailof
As
June
30,
2025
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
natio
Supra -Agency nal
Bond / Note
Intl
Reco
BK
n &
Develop
Notes
Intl
Finance
Corp
Notes
Inter -
American
Devel
Co
BK
rporate
Notes
Intl
Reco
BK
n &
Develop
Notes
Supra -
National
Agency
Subtotal
Federal
A
Bo
gency
nd/ Note
Fannie
Mac
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
FFCB
Bonds
Fannie
No
Mae
tes (
Callable)
Federal
Home
Loan
Bank
Federal
Home
Loan
Bank
Federal
Agency
Subtotal:
Interest Total
Accrued
Interest
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
459058LT8
3.625%
05/6 2
05/ 28
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 .
110%
07/ 30 21
27/60
3133EPSW6
4.500%
08/ 14 23
08/ 14 26
3135G06L2
0 .
875%
12/8 20
12/8 26
3130B5K64
4 .
000%
03/ 14 25
10/ 2703
3130B6R24
3. 875%
06/ 13 25
06/4 27
Total
Inv
estments
Held
by
Trust
ee -
PFM
Asset Management $
T
otal
In
vestments
Held
by
Trustees $