City of
ITEM 4.
Quarterly Treasurer Report
December 2025
This report presents a detailed discussion of the City' sfund balances and investment portfolio as of December 31, 2025. It includes all investments managed by the City on its own behalf as well as the City' sTrustees. 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, 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 Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.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' 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 December 31, 2025 compared with the prior quarter:
Table: i.
2025x,,,
Holding Party Fund Amounts ( 1)
of
Portfolio
Fund Amounts (1)
of
Portfolio
Investments/ Cash held by the City
Investments held by Trustees
226, 748, 452 62% 225,38, 600 61%
139, 970, 605 38% 141, 794, 419 39%
TOTAL 366, 719, 057 100% 367, 033,19 100%
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; The U. S. government shutdown halted the collection of key economic indicators, requiring the Federal Reserve ( Fed) and the market to rely on survey -based anecdotal evidence and private data reports. The labor market continued to soften and the unemployment rate edged higher. Core inflation moved lower but remained above the Fed' s2% target. Gaps in data collection due to the government shutdown likely distorted the official data, though other available private sector data pointed to a slowdown in economic momentum. The Fed delivered two additional 25 basis point ( bps) rate cuts in the quarter, lowering the federal funds target range to 3. 50% to 3. 75%. The median forecast from the Fed' s December dot plot" showed an additional 25 bps rate cut in both 2026 and 2027, but the wide dispersion in underlying projections underscores growing differences of opinion. Policymakers have acknowledged ongoing challenges to achieving their dual mandate of maximum employment and stable prices. The U. S. Treasury yield curve steepened further in Q4, led by a decline in short term yields. Maturities Tess than six months fell 30- 50 basis points as a result of Fed policy.
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.
Stephen J. Salvatore
City Manager
Cari Jame
Director ance
TABLE:
2 CITY
OF
LATHROP of
Summary
All
Investments
As
of
December
31,
2025
City
Held
Investments
Recorded
Value
Current
Yield of Percent
P
ortflio
Local
Agency
Investment
Fund
Wells
Market
FargoMoney Mutual
Funds
California
Asset Management
Program
000, 75 3,4576 97,0012
025% 4. 680% 3. 3. 950%
23 .
58%05% 1. 30 .78%
Total
Investments
Held
by
the
City (
1)
176, 2488
3.977%
42 % 55.
Trustee
Held
Investments
Recorded
Value
Current
Yield
Percent
of
P
ortfoli o
US
Bank UMB
Bank
Union
Bank
SJ
Poo
County
led
Funds
PFM
Asset Management +
Year
End
FMV
PNC
Bank
3, 72066 1, 561, 478 200, 674
135, 772 260 539, 241
3.150% 3 .
140% 000%. 260% 0. 4 .
290%
4.700%
1 .
17%
0. 49%00%. 0 .
06%
42 .
69%
0. 17 %
Total
Investments
Held
by
Trustees (
2)
141, 794 419
4. 243 %
44 .
58 %
Total
City &
Trustee
Held
Investments &
Cash
RecordedValue
Current
Yield
Percent
of
Portfolio
Investments
Held
by
the
City
and
Trustees
Cash
inChecking
Accounts -
Recorded
Value
318, 040 707 48, 992 311
4 .
096%
100 .
00%
Total
Cash
and
Investments
367, 03319
One
month
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. 3.
77%
3. 68%
TABLE:
3 CITY
OF
LATHROP
In
vestments Cash
Flow
Analysis
As
of
December
31,
2025
Investments
Held
by
the
City
Prior
onth
M
Recorded
Value
Purchased
Redeemed
Buy) (
Sell)
Local
Agency
Investment
Fund (
1)
Wells
Fargo
Money
Market
Mutual
Funds (
2)
California
Asset Management
Program
000, 75 3,34 955 97, 573, 920
10, 421 326, 993
Total
Investments
Held
by
the
City
908, 874 15,
337, 414
Investments
Held
by
Trustees
Prior
onth
M
Rec
orded Value
Purchased Buy)
Redeemed Sell)
PNC
Bank Co
SJ
unty
Pooled
Funds
UMB
Bank
US
Bank (
3)
PFM
Asset Management +
Year
End
FMV
537, 166 200, 674
1, 557, 64 3, 413 579 133, 959 832
2, 075 3, 825 307, 18
7, 094 33
Total
Investments
Held
by
Trustees
139, 668 905 $
7, 40780 $ (
966) $ 5, 281
Total
Cash
inChecking
Accounts
Held
by
the
City (
2)
446, 999 47,
8, 214 508
195) $ 6,69
Total
Cash
and
Investments
Held
by
the
City
and
Trustees
363, 024 778 $
15, 959, 403 $ (
161) $ 11, 951
Notes: 1)
LAIF
interest
income
is
paid
quarterly (
M
ar/ 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
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 froearnings
mBlackRock
Liquidity
Funds
T -
Funds
30 Day
Yield
3.150%,
debt
service
payments .
TABLE: 4
CITY
OF
LATHROP
Investments
Held
by
City -
Detail
As
of
December
31,
2025
Agency (
Broker)
Investment Description
Yield
Coupo
n
to
Purchase
Maturity
Val
Rate
Maturity
Date
Date ( N
o
Local
Agency
Investment
Fund
Money
Market
Fund
City
Acct
No .
98- 39 437
N/ A
4 .
025%
Varies
On
Demand
75,
75,
Wells
Fargo
Fun
Mutual
ds
Money
Market
Mutual
Fund
City
Acct
No .
12641627
N/ A
3 .
680%
Varies
On
Demand
3,
3,
Califorina
Asset Management
Program Liquidity
Account
No. 6084- 001
N/ A
3.950%
Varies
On
Demand
97,97,
TOTAL
INVESTMENTS
HELD
BY
CITY $
176,
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detailof
As
December
31,
2025
Investment
D
escription
Acct
Number
CUSIP
Current
Purchase
Maturity
Yield
Date
Investments
Held
by
Bank
US
03- 1
Series
2015 -
Mossdale
Village
Assessme
Districtnt
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
Dist.
Assessment
No.
03- 1
Series
2015-
Prepayment
Fund FIN
LTHRP
AU
REVEN
TH
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
2003-A
Lathrop
CFD
Money
MarketInterest
Account
Money
Market -
Acco
Reserve
unt
LAIF -
Acco
Interest
unt CDCDPH/
WR -
Loan
SRF
Agreement
Account
Agreement
Account -
Reserve
Fund
2015
Serie
Crossroads
s
B
2015
Crossroads
Series
B - Crossro
2015
ads
Series
B -
2015
Crossroads
Series
B -
2015
Crossroads
Series
B -
2015
Crossroads
Series
B -
LOIB
RDP Reserv
LOIB
e
Cost
of
Issuance Improvements COI
Custodian
Agreement
Investments
Held
by
PNC
Bank
Accou
by
nt
2012
Water
Refu
Loan (
nding
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
3. 150 % 3. 150% 3.150% 3.150% 3. 150 % 3.150% 3 .
150% 3. 150 % 3. 150 % 3.150% 4 .
025%
10/8 05 10/8 05 18/ 050 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
3.150%
12/ 20
On
Demand $
3 .
150%
12/ 20
On
Demand $
3. 150 % 3 .
150% 3 .150% 3. 150 % 3 .150%
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
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
of
December
31,
2025
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Investments
Held
by
UMB
Bank
by
Acco
unt Cen
2018- 1
tral
Lathrop
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
Reserv1 -
e
Fund Improvement
Area
1 -
Surplus
Fund
Improvement
Area
2 -
Principal
Account
Improvement
Area
2 -
Redemption
Account Improvement
Area
2 - Acco
Interest
unt
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 Improvement
Area
3 -
Acco
Interest
unt
Improvement
Area
3 -
Admin
Expense
Account
Improvement
Area
Reserv3 -
e
Fund Improvement
Area
3 -
Surplus
Fund
Improvement
Area
4 -
Acco
Principal
unt
Improvement
Area
4 -
Redemption
Account
Improvement
Area
4 -
Acco
Interest
unt
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
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 2149265. 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. 3149268. 4
149268. 5 149268. 6
149269.
1 149269. 2 149269. 3
149269.
4 3 .
140%
02/1 19
On
Demand
140% 3.
02/1 19
On
Demand
3 .
140%
02/1 19
On
Demand
3 .
140 %
02/1 19
On
Demand
3 .
140%
01/ 192
On
Demand
3. 140%
02/1 19
On
Demand
140% 3.
02/1 19
On
Demand
3. 140%
02/1 19
On
Demand
3. 140 %
02/1 19
On
Demand
140% 3.
02/1 19
On
Demand
3.140%
02/1 19
On
Demand
3. 140 %
02/1 19
On
Demand
140% 3.
02/1 19
On
Demand
3.140%
02/1 19
On
Demand
3. 140 %
01/ 192
On
Demand
3.140%
02/1 19
On
Demand
3.140%
02/1 19
On
Demand
3. 140 %
02/1 19
On
Demand
3. 140%
02/1 19
On
Demand
3. 140%
02/1 19
On
Demand
3. 140 %
02/1 19
On
Demand
3. 140%
02/1 19
On
Demand
3. 140%
02/1 19
On
Demand
3. 140%
02/1 19
On
Demand
3.140%
02/1 19
On
Demand
3.140%
02/1 19
On
Demand
3. 140 %
02/1 19
On
Demand
3. 140 %
02/1 19
On
Demand
3. 140 %
01/ 192
On
Demand
3.140%
02/1 19
On
Demand
TABLE: 5
CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
of
December
31,
2025
Investment Description
Acct
Number
Current
Purchase
Mat
urity
CUSIP
Yield
Date
Improvement
Area
5 -
Reserve
Fund
Improvement
Area
5 -
Surplus
Fund
2018-
La
Central
throp
CFD
Special
Tax
Fund
Surplus
Fund
Investments
Held
by
San
Joaquin
County
by
Account Sanitary
Sewer
Assessment
District #
t1
Pooled
Funds -
Redemption
Account
Investments
Held
by
PFM
Asset Management
Accou
by
nt
PFM
Man agemenAsset
t
Money
Market
Fund
U5
Bo
Treasury
nd /
Note
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
US
No
Treasury
tes
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 .
140% 3.140%
02/1 19
On
Demand $
02/1 19
On
Demand $
3. 140%
02/1 19
On
Demand $
3. 140 %
02/1 19
On
Demand $
Total
Investments
Held
by
Trustee -
UMB
Bank $
0.260%
10/ 87
On
Demand $
T
otal
Investments
Held
by
Trustee -
San
J
oaquin
County $
20260109
PFM
Funds -
Govt
Select
AAAm
91282CJP7
4. 375 %
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
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 $
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. 375%
09/ 16 24
09/ 15 27 $
91282CLQ2
3. 875%
10/5 24
10/5 27 $
91282CPE5
3.500%
10/ 31 25
10/ 31 27 $
91282CLX7
125% 4.
11/5 24
11/5 27 $
91282CPL9
3. 375%
12/ 01 25
11/ 30 27 $
91282CMB4
4.000%
12/6 24
12/5 27 $
91282CMF5
4. 250%
01/ 15 2
01/ 15 28 $
TABLE: 5
CITY
OF
LATHROP
Investments Held
by
Trustee -
Detailof
As
December
31,
2025
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
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
Notes
USTreasury
Notes
USTreasury
Subtotal:
91282CMN8 91282CMS7 91282CMW8 91282CND9 91282CND9 91282CND9 91282CN HO
91282CN
HO
91282CNM9 91282CNU1 91282CNY3 91282CNY3 91282CNY3 91282CPC9 91282CPC9 91282CPK1 91282CPK1
4. 250 % 3. 875 % 3.750% 3.750% 3. 750 % 3.750% 3.875% 3.875% 3 . 875% 3 .
625% 3.75 % 3.75% 3.75% 3. 500 % 3. 500 % 3.500% 3. 500 % 02/ 18 25 17/ 2503 04/ 15 2 15/ 2015/ 20 05/ 1 2 16/ 25006/ 1 25 07/ 15 2 08/ 15 2 09/ 15 2 09/ 15 2 09/ 15 2 10/5/ 2 10/5/ 2 11/7/ 25 11/7/ 25 02/ 15 28 03/ 15 28 04/ 15 28 15/ 280 05/ 1 28 05/ 1 28 15/ 2806 06/ 15 28 07/ 15 28 08/ 15 2 09/ 15 28 09/ 15 28 09/ 15 28 10/5 28 10/5 28 11/5 28 11/5 28 TABLE:
5 CITY
OF
LATHROP
Investments Held
by
Trustee -
Detail
As
of
December
31,
2025
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
nation
Supra -
alBond /
Agency
Note
Intl
Finance
Corp
Notes
Inter -
American
Devel Corporate BK
Notes
Inter -
Dev
American
elCorporate BK
Notes
Intl
BK
Recon &
Develop
Notes
Supra -
National
Agency
Subtotal
Federal
Agency
Bond/ Note
Federal
Home
Loan
Banks
Notes (
Callable)
Federal
Home
Loan
No
Banks
tes (
Callable)
Fannie
Mae
Notes (
Callable)
Federal
Home
Loan
Bank
Federal
Home
Loan
Bank
Federal
Agency
Subtotal:
Interest Total
Accrued
Interest
45950KDF4
4. 375 %
12/ 06 23
01/ 15 27
4581X0EM6
4 .
375%
12// 23
02/1 27
45818WFN1
4 .
850%
04/ 25
07/ 19/ 27
459058LT8
3.625%
05/6 2
05/ 28
3130A
N
3T5
1. 000 %
03/ 21
03/ 26
3130ANCD0
1 .
110%
07/ 30 21
07/ 26
3135G06L2
0.875%
12/8 20
12/8 26
313065K64
4. 000 %
03/ 14 25
03/ 10 27
3130B6R24
3 .
875%
06/ 13 25
06/4 27
Total
Investments
Held
by
Trustee -
PFM
Asset Management $
Total
In
vestments
Held
by
Trustees $