City of
Quarterly Treasurer Report
September 2025
ITEM 4.
This report presents a detailed discussion of the City' sfund balances and investment portfolio as of September 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 September 30, 2025, 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' 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 Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.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 September 30, 2025 compared with the prior quarter:
Stephen J. Salvatore
City Manager
Investments/ Cash held by the City
Investments held by Trustees
Fund Amounts (1)
243, 003, 586
139, 013, 399
016; x, ..
64%
36%
Fund Amounts ( 1)
226, 748, 452 62%
139, 970, 605
1) Small variances are due to the summation and rounding of multiple figures to the nearest whole dollar 38%
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 third quarter of 2025 saw a gradual easing of uncertainty as markets digested the lingering effects of a complex tariff rollout. While the effective tariff rate remains elevated, the avoidance of worst - case trade outcomes helped stabilize investor sentiment. Equity and bond markets rebounded, supported by steady consumer spending and business investment. In September, the Fed delivered its first rate cut of 2025, lowering the federal funds target range to 4. 00% to 4. 25%. Fed Chair Jerome Powell described it as a " risk management cut" reflecting growing concerns over the labor market. The labor market continued to cool, with new net job creation nearing zero and the unemployment rate ticked up to 4.3%.
Despite these signs of slowing, layoffs remained low, suggesting employers are adopting a " no hire, no fire" approach. The unemployment rate rose during the quarter but remained below its 30 -year average. U. S. real gross domestic product ( GDP) rebounded to 3.8% in the second quarter, driven by a reversal of the trade and inventory dynamics that weighed on Q1 growth. Despite labor market softness, consumer spending proved resilient. Rising goods prices and sticky services costs continued to keep core inflation well above the Federal Reserve' s (Fed) 2% target.
I certify that all of the investments reported herein are in accordance with the " City of Lathrop Investment Policy" adopted on October 13, 2025, 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 James
Director of nce
TABLE:
2 CITY
OF
LATHROP
Summary
of
All
Investmentsof
As
September
30,
2025
City
Held
Investments
orded
Rec
Value
Current
Yield
Percent
of
P
ortfli o
Local
Agency
Investment
Fund
Wells
Fargo
Money
Market
Mutual
Funds
California
Asset Management
Program
000, 75 3,12 950 96, 89540
4 .
212 %
4. 030 % 4 .
360%
23 .
80% 1 .
05%
30. 74 %
Total
Investments
Held
by
the
City (
1)
175, 208 790
4.290%
55.9%
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
3,87 503 1, 549, 368 200, 451
134, 30012 532, 971
3 .
750% 3.680% 0 .
000 %
0.260% 4 .
290% 4 .700%
1 .
07% 0 .49% 0 .00% 0 .06 %
42 .
61% 17% 0.
ToInv
tal
estments
Held
by
Trustees (
2)
139, 970 605
266% 4.
44.1 %
Total
City &
Trustee
Held
Investments &
Cash
Recorded
Value
Current
Yield
Percent
of
P
ortfli o
Investments
Held
by
the
City
and
Trustees
Cash
inChecking
Accounts -
Recorded
Value
315, 179 395 51,39 662
4 .
280%
100 .
00%
Total
Cash
and
Investments
366, 719 057
One
month
benchmark U. Sfor
Treasuries:
mo
Three
nth
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% 07% 4.
TABLE:
3 CITY
OF
LATHROP
Investments
Cash
Fl
Analysisow
As
ofSeptember
30,
2025
Investments
Held
by
the
City
Prior
onth
M
Recorded
Value
Purchased Buy)
Redeemed Sell)
Local
Agency
Investment
Fund (
1)
WellsFargo Money
Market
Mutual
Funds (
2)
California
Asset Management
Program
000 75, 000, 3,01 46 96, 549, 775
11, 544 346, 065
Total
Investments
Held
by
the
City
174, 851 18
357, 609
Investments
Held
by
Trustees
Month
Pri
or Recorded
Value
Purchased Buy)
Redeemed Sell)
PNC
Bank
SJCounty
Pooled
Funds
UMB
Bank
US
Bank (
3)
PFM
Asset Management +
Year
End
FMV
530, 852 271, 140
3, 068 686 240, 393 5132, 65845
2, 119 60, 917
1, 759 31 12, 520 895
690) $ 70, 235) $ 580, 1,241) $ 3, 612 228) $ 10, 879,
Total
Investments
Held
by
Trustees
141, 76916 $
14, 343, 28 $ (
394) $ 16,42,
Total
Cash
inChecking
Accounts
Held
by
the
City (
2)
59, 761, 137
040, 576 11,
051) $ 19, 262,
Total
Cash
and
Investments
Held
by
the
City
and
Trustees
376,82 035 $
25, 741 467 $ (
445) $ 35, 404
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
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
3.680%,
debt
service
payments.
TABLE:
4 CITY
OF
LATHROP
Investments
Held
by
City -
Detailof
As
September
30,
2025
Broker) Agency (
Investme nt
Descriptio
n
Yield
Co
toupon
Purchas e
Maturity
Rate
Maturity
Date
Date (
No
Local
Agency
Investment
Fund
Money
Market
Fund
City
Acct
No .
98- 39 437 WeFargolls
Mutual
Funds
N/ A
4 .
212 %
Varies
On
Demand
75,
75,
Money
Market
Mutual
Fund
City
Acct
No .
12641627
N/ A
4 .
030 %
Varies
On
Demand
3,
Califorina
Asset Management
Program Liquidity
Account
No.
6084- 001
3,
N/ A
360% 4.
Varies
On
Demand
96,96,
T
OTAL
INVESTMENTS
HELD
BY
CITY $
175,
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Truste
e -
Detail
As
ofSeptember
30,
2025
InvestmentDescription 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.
N
03- 1
Serieso. 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 -
enue
Account
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
Market -
Reserve
Account
LAIF -
Interest
Account
CDPH/WR -
Loan
SRF
Agreement
Account
Agreement
Account -
Reserve
Fund
2015
Crossroads
Series
B
2015
Crossroads
Series
B - Cro
2015
ssroads
Series
B -
2015
Crossroads
Series
B -
2015
Crossroads
Series
B - Cro
2015
ssroads
Series
B -
LOIB
RDP
LOIB
Reserve
Cost
of
Issuance Improvements COI
Custodian
Agreement
Investments
Held
by
PNC
Bank
Acco
by
unt
Wa
2012
Loan ( Refun
ter
din of
g
Wa
2000
COter
Ps)
Certificate
Depoof
sit -
Reserve
Fund
6712138601 6712138602 6712138604 278276000 278276003 278276004 278276006 278276008 6711720001 6711712200 6711720002 6711908800 6711908801 6712138801 6712138803 6712138804 6712138805 6712198801 3 .
750% 3 .750% 3. 750 % 3. 750 % 3. 750 % 3. 750% 3. 750 % 3. 750% 3. 750% 3 .750% 4.212% 10/8 05 10/8 05 10/8 05 7/ 1 23 7/ 23 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
3. 750%
12/ 20
On
Demand $
3 .
750%
12/ 20
On
Demand $
3. 750 % 3 .
750% 3 .750% 3. 750 % 3.750%
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 $
4.700%
5/ 22/ 19 $
Total
Investments
Held
by
Trustee -
PNC
Bank $
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
ofSeptember
30,
2025
Investment Description
Acct
umber N
Current
Purchase
Maturity
CUSIP
Yield
Date
Investments
Held
by
UMB
Bank
by
Account Cen
2018- 1
traLathrol
p
CFD
Improvement
Area
1 -
Admin
Expense
Reserve
Fund ImprovOther
ement
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
A
rea
2 -
Principal
Account Improvement
Area
2 -
Redemption
Account
Improvement
Area
2 -
Interest
Account Improvement
Area
2 -
Admin
Acco
Expense
unt Improvement
Area
2 -
Reserve
Fund Improvement
Area
2 -
Surplus
Fund Improvement
Area
3 -
Principal
Account Improvement
Area Redemptio3 -
nAccount 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 Redemptio4 -
nAccount Are
Improvement
a
4 -
Interest
Account Improvement
Area
4 -
Admin
Expense
Account Are
Improvement
a
4 -
Reserve
Fund Are
Improvement
a
4 -
Surplus
Fund Are
Improvement
a
5 -
Principal
Account Are
Improvement
a
5 -
Redemption
Account
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. 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
680% 3.
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
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/ 1902
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 -
Detail
As
ofSeptember
30,
2025
InvestmentDescription Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Improvement
Area
5 -
Reserve
Fund Improvement
Area
5 -
Surplus
Fund Cen
2018-
tral
Lathrop
CFD
Special
Tax
Fund
Surplus
Fund
Investments
Held
by
San
Co
Joaquin
unty
by
Account Sanitary
Sewer
Assessment
District #
1 Pooled
Funds -
Redemption
Account
Investments
Held
by
PFM
Asset Management
by
Account
PFM
Man
Asset Moagement
ney
Market
Fund
USTreasury
No
Bond /
te
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
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
149269. 5 149269 .
6 149261 .
1 149261. 2
SJ
CO
FUND #
57961
3.680% 3. 680%
02/1 19
On
Demand $
02/1 19
On
Demand $
3. 680%
02/1 19
On
Demand $
3. 680 %
01/ 192
On
Demand $
Total
Investments
Held
by
Trustee -
UMB
Bank $
0.260%
10/ 87
On
Demand $
Total
Investments
Held
by
Trustee -
San
Joaquin
County $
20260109
PFM
Funds -
Govt
Select
AAAm
91282CJC6
4 .
625 %
10/5 23
10/5 26
91282CJK8
4 .
625%
11/5 23
11/5/ 26
91282CJK8
4 .
625%
11/5 23
11/5 26
91282CJP7
4 .
375%
12/5 23
12/5 26
91282CJP7
4. 375 %
12/5 23
12/5 26
91282C
ME8
4 .
250%
12/ 31 24
12/ 31 26
91282CJT9
4 .
000 %
01/ 15 24
01/ 15 27
91282CM
H
1 4 .
125%
01/ 3 25
01/ 3 27
91282CKA8
125% 4.
02/ 15 24
02/ 15 27
91282CKE0
4 .
250 %
03/ 15 24
03/ 15 27
91282CKJ9
4 .
500%
04/ 15 2
04/ 15 27
91282CKR1
500% 4.
05/ 1 24
05/ 1 27
91282CKR1
4 .
500 %
05/ 1 24
05/ 1 27
91282CKR1
4.500%
05/ 1 24
05/ 1 27
91282CNE7
3. 875 %
06/2 25
05/ 31 27
91282CKV2
625 % 4.
06/ 17 24
06/ 15 27
91282CLN1
3.750%
06/ 30 25
06/ 30 27
91282CKZ3
4. 375 %
07/ 15 24
07/ 15 2
91282CKZ3
4.375%
07/ 15 24
07/ 15 2
91282CKZ3
4. 375%
07/ 15 24
07/ 15 2
91282CLG4
3. 750%
08/ 15 24
08/ 15 27
91282CLL3
3.75%
09/ 16 24
09/ 15 27
91282CLQ2
3. 875%
10/5 24
10/5 27
91282CLX7
4. 125%
11/5 24
11/5 27
91282CMB4
000% 4.
12/6/ 24
15/ 2712
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
ofSeptember
30,
2025
InvestmentDscription Acct
Number
Curr
ent
Purchase
Mat
urity
CUSIP
Yield
Date
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
USTreasury
Subtotal:
91282CMF5 91282CMN8 91282CMS7 91282C
MW8
91282CND9 91282CND9 91282CND9 91282CNH0 91282CNH0 91282CNM9 91282CNU1 91282CNY3 91282CNY3 4 .
250% 250% 4. 3 .
875 % 3. 750 % 3. 750% 3. 750% 3 .
750 % 3 .875% 3 .875% 3 .875 % 3.625% 3.75% 3.75 %
01/ 15 2 02/ 18 25 03/ 17 25 04/ 15 2 05/ 1 2 05/ 1 2 05/ 1 2 06/ 1 25 06/ 1 25 07/ 15 2 08/ 15 2 09/ 15 2 09/ 15 2 01/ 15 28 02/ 15 28 03/ 15 28 04/ 15 28 05/ 1 28 05/ 1 28 05/ 1 28 06/ 15 28 06/ 15 28 07/ 15 28 08/ 15 2 09/ 15 28 09/ 15 28 TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Truste
e -
Detailof
As
September
30,
2025
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Supra -
national
Agency
Bond /
Note
Intl
BK
Recon &
Develop
Notes
Intl
Finance
No
Corp
tes
Inter -
American
Devel
BKCorporate
Notes
Intl
BK
Recon &
Develop
Notes
Supra -
Nati
onal SubtotalAge ncy
Federal
Bo
Agency
nd/ Note
Federal
Lo
Home
an No
Banks
tes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
Banks
Notes (
Callable)
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
4.375%
12/ 06 23
01/ 15 27
4581X0EM6
4 .
375 %
12/ 23
02/1 27
459058LT8
3.625%
05/6 2
05/ 28
3130AN3T5
1 .
000%
03/ 21
03/ 26
3130ALGJ7
000 % 1.
03/ 21
03/ 26
3130ANCD0
1.10%
07/ 30 21
07/ 26
3135G06L2
0.875%
12/8 20
18/ 2612
3130B5K64
000 % 4.
03/ 14 25
03/ 10 27
313086R24
3.875%
06/ 13 25
06/4 27
Total
Inv
estments
Held
by
Truste
e -
PFM
Asset Management $
Total
Inv
estments
Held
by
Trustees $