ITEM 4. 3
City of L Iii
Ire
Quarterly Treasurer Report
March 2026
This report presents a detailed discussion of the City' sfund balances and investment portfolio as of March 31, 2026. 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, 2026, 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 Additionally, LAIF is an " On Demand" account; meaning funds may be withdrawn upon with 1 day notice, representing maximum liquidity.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, 2026 compared with the prior quarter:
Stephen J. Salvatore
City Manager
Table*
6 Holding Party Fund Amounts (1)
of
Fund Amounts (1)
Portfolio
of
Portfolio
Investments/ Cash held by the City
Investments held by Trustees
225,38, 600 61% 225, 010,80 61%
141, 794, 419 39% 142,39, 018 39%
TOTAL 367, 033,19 100% 367, 149, 098 100%
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 first quarter of 2026 began with familiar themes: a data -dependent Federal Reserve ( Fed) and a constructive risk sentiment across asset classes. The backdrop shifted on February 28 when the conflict in Iran began, shifting investor sentiment and significantly repricing markets through the balance of the quarter. Market volatility indices jumped to 12 -month highs, equity markets sold off sharply, and interest rates increased as the implications of rising energy prices pushed up near term inflation expectations. Seemingly overshadowed by geopolitical headlines, the Federal Open Market Committee ( FOMC) met in March and held its target range unchanged at 3. 50% to 3. 75%, as expected. The FOMC maintained its " dot plot" projection for one 25 basis point rate cut in 2026. Labor market data remained steady with unemployment at 4.3% in March. Monthly payroll employment remained subdued and averaged 68, 000 new jobs per month over the quarter. Initial jobless claims held near historically low levels and continuing claims declined, reinforcing the persistence of a " low -hire, low -fire" environment.
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.
rotZ 5-) S
Cari Jame
Director of nance
TABLE:
2 CITY
OF
LATHROP
Summary
of
All
Investments
As
of
March
31,
2026
City
Held
Investments
Recorded
Value
Current
Yield
Percent
of
Portfoli
o
Local
Agency
Investment
Fund
Wells
Fargo
Money
Market
Mutual
Funds
California
Asset Management
Program
75, 000 3,76, 084 98, 827 085
3 .
826% 3 .210% 3 .800%
23 .
49% 1 .
06%
30 .
95%
ToInvestmen
tal
ts
Held
by
the
City (
1)
177, 203 169
3.800%
55. 49%
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, 454, 58 1, 740, 087 201, 746
136,97 08 545,14
3 .
150% 3 .
020% 0 .000% 0 .260% 3 .870% 4 .700 %
1 .
08 %
0 .
54 %
0 .
00%0 .06 %
42. 65% 0 .
17%
Total
Investments
Held
by
Trustees (
2)
142,39 018
3. 840 %
44 .
51%
Total
City &
Trustee
Held
Investments &
Cash
Recorded
Value
Current
Yield
Percent
of
P
ortfolio
Investments
Held
by
the
City
and
Trustees
Cash
inChecking
Accounts -
Recorded
Value
319,42 187 806, 912 47,
3 .
818%
100 .
00%
Total
Cash
and
Investments
367, 149 098
One
month
benchmark
for
S. U
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. 74% 3. 72%
TABLE:
3 CITY
OF
LATHROP
Investments
Cash
Fl
Analysisow
As
of
March
31,
2026
Investments
Held
by
the
City
Prior
Month orded
Rec
Value
Purchased Buy)
Redeemed Sell)
Local
Agency
Investment
Fund (
1)
Wells
Fargo
Money
Market
Mutual
Funds (
2)California
Asset Management
Program
000, 75 3,66 973 98, 50961
9, 111 317, 523
Total
Investments
Held
by
the
City
176, 8 535
326, 634
Investments
Held
by
Trustees
Prior
Month
Recorded
Value
Purchased Buy)
Redeemed Sell)
PNC
Bank
SJCounty
Pooled
Funds
UMB
Bank
US
Bank (
3)
PFM
Asset Management +
Year
End
FMV
543,55 92,42
2, 959, 407 482, 848 4134, 993 265
960 1, 117, 542 22, 482 604, 727
15,34 258
738) $ 8,802) $ 1, 241, 991) $ 632, 1436) $ 13, 930,
Total
Investments
Held
by
Trustees
143, 07216 $
15, 880 968
967) $ 16, 813
Total
Cash
inChecking
Accounts
Held
by
the
City (
2)
50, 980 178
10, 000 386
652) $ 13,73,
Total
Cash
and
Investments
Held
by
the
City
Tru
and
stees
370, 928 79 $
26,07, 988 $ (
619) $ 29, 987
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
150%, 3.
debt
serv
icepayments .
TABLE:
4 CITY
OF
LATHROP
Investments
Held
by
City -
Detail
As
of
March
31,
2026
Agency (
Broker)
Investment Descripti
on
Yield
Coupon
to
Purchase
Maturity
Rate
Maturity
Date
Date (
No
Local
Agency
Investment
Fund
Wells
Fargo
Mutual
Funds
Money
Market
Fund
City
Acct
No.
98- 39 437
Money
Market
Mutual
Fund
City
Acct
No.
N/ A
3.826%
Varies
On
Demand
75,
75,
12641627
N/ A
3 .
210 %
Varies
On
Demand
3,
Califorina
Asset Management
Program Liquidity
Account
No .
6084- 001
3,
N/ A
3.800%
Varies
On
Demand
98,98,
TOTAL
INVESTMENTS
HELD
BY
CITY $
177,
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
of
March
31,
2026
Investment Description
Acct
Number
CUSIP
Current
Purchase
Maturity
Yield
Date
Investments
Held
by
US
Bank
03- 1
Series
Mossdale
2015 -
Vill
Assessme
nt ageDistrict
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
LTHRP
FIN
AUTH
BOND
REVENUE
S
2023
SERIES
A Money
Market -
Revenue
Account
Money
Market -
Special
Tax
Fund
Money
Market -
CFD
Reserve
Account
M
oney
Market -
ReAD
Reserve
Account
Money
Market -
Acquired
Obligations
Fund
2003-A
Lathrop
CFD
Money
MarketInterest
Account
Money
Market -
Reserve
Account
LAIF -
Interest
Account
CDPH/WR -
Loa
SRF
n
Agreement
Account
Agreement
Account -
Reserve
Fund
2015
Crossroads
Series
B Cro
2015
ssroads
Series
B - Cro
2015
ssroads
Series
B - Cro
2015
ssroads
Series
B - Cro
2015
ssroads
Series
B - Cro
2015
ssroads
Series
B -
LOIB
RDP
LOIB
Reserve
Cost
of
Issuance Improvements COI
Custodian
Agreement
Investments
Held
by
PNC
Bank
by
Account
Wate
2012
r
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
3. 150 % 3. 150 % 3 .
150% 3. 150 %3 .150 % 3 .150 % 3. 150 % 3. 150 % 3 .150% 3 . 150% 3. 826 %
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
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
Total
Investments
Held
by
Trustee -
US
Bank $
4. 700 %
5/ 22/ 19 $
Total
Investments
Held
by
Trust
ee -
PNC
Bank $
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
of
March
31,
2026
InvestmentDescription Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
Investments
Held
by
UMB
Bank
by
Account
2018- 1
Central
Lathrop
CFD Improv ement
Area
1 -
Admin
Expense
Reserve
Fund
Other Improvement
Areas -
Admin
Expense
Reserve
Fund
Improvement
Area
1 -
Principal
Account Improv ement
Area
1 -
Redemption
Account
Improvement
Area
1 -
Interest
Account
Improvement
Area
1 -
Admin
Expense
Account Improve ment
Area
Reserv1 -
e
Fund
Improvement
Area
1 -
Surplus
Fund
Improvement
Area
2 - Acco
Principal
unt
Improvement
Area Redemptio2 -
nAccount
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 Redemptio3 -
nAccount
Improvement
Area
3 -
Interest
Account Improvement
A
rea
3 -
Admin
Expense
Account
Improvement
Area
Reserve3 -
Fund
Improvement
Area
3 -
Surplus
Fund Improvement
Area
Prin4 -
cipal
Account
Improvement
Area Redemptio4 -
n
A
ccount
Improvement
Area
4 -
Interest
Account Improve ment
Area
4 -
Admin
Expense
Account
Improvement
Area
4 -
Reserve
Fund
Improvement
Area
4 -
Surplus
Fund Improvement
A
rea
5 -
Principal
Account
Improvement
Area
Redemptio5 -
nAccount
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 .
020 %
02/1 19
On
Demand
3 .
020%
02/1 19
On
Demand
3. 020 %
02/1/ 19
On
Demand
3 .
020%
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3 .
020%
02/1 19
On
Demand
3 .
020%
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3 .
020%
02/1 19
On
Demand
3. 020%
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020%
02/1 19
On
Demand
3 .
020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3 .
020%
02/1 19
On
Demand
3. 020 %
02/1/ 19
On
Demand
3 .
020%
02/1 19
On
Demand
3 .
020 %
02/1 19
On
Demand
3 .
020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020%
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
3. 020 %
02/1 19
On
Demand
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
As
of
March
31,
2026
InvestmentDescription Acct
Number
Current
Purchase
Maturity
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
Accou
nt
Sanitary
Assessme
Sewer
nt District
lt1
Pooled
Funds -
Redemption
Account Investments
Held
by
PFM
Asset Management
by
Account
PFM
Mana
Asset gement
Money
Market
Fund
US
Bon
Treasury
d /
Note
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. 020 %3. 020 %
02/1 19
On
Demand $
02/1 19
On
Demand $
3. 020 %
02/1 19
On
Demand $
3. 020 %
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
County $
20260109
PFM
Funds -
Govt
Select
AAAm
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
4. 625 %
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/ 27
91282CKZ3
375% 4.
07/ 15 24
07/ 15/ 27
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
4. 125 %
11/5 24
11/5 27
91282CPL9
3.75%
12/ 01 25
11/ 30 27
91282CMB4
4 .
000 %
12/6 24
12/5 27
91282CPS4
3 .
375%
12/ 31 25
12/ 31 27
91282CMF5
250% 4.
01/ 15 2
01/ 15 28
91282CGH8
3.500 %
01/ 3 23
01/ 3 28
91282CMN8
4.250%
02/ 18 25
02/ 15/ 28
91282CMS7
3.875%
03/ 17 25
03/ 15/ 28
91282CMW8
3. 750%
04/ 15 2
04/ 15/ 28
91282CND9
3. 750%
05/ 1 2
05/ 1/ 28
91282CND9
3. 750%
05/ 1 2
05/ 1/ 28
91282CND9
3. 750%
05/ 1 2
05/ 1/ 28
91282CNH0
3. 875%
06/ 1 25
15/ 2806/
TABLE:
5 CITY
OF
LATHROP
Investments
Held
by
Trustee -
Detail
of
March
31, As 2026
Investment Description
Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
USTreasury
Notes
USTreasury
Notes
US
No
Treasury
tes
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
Subtotal:
91282CNH0 91282CN
M9
91282CNU1 91282CNY3 91282CNY3 91282CNY3 91282CPC9 91282CPC9 91282CPK1 91282CPK1 91282CPP0 91282CPT2 91282CQA2 91282CQE4 91282CQE4 3 .
875% 3 .
875 % 3 .625 % 3.75 % 3 .375 % 3.75 % 3.500% 3 .500% 3. 500% 3.500% 3.500% 3.500% 3 .500% 3.500% 3.500% 06/ 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 12/5 2 01/ 15/ 26 02/ 17 26 03/ 16 2 03/ 16 2 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 12/5 28 01/ 15 29 02/ 15 29 03/ 15 29 03/ 15 29 TABLE:
5 CITY
OF
LATHROP eld by
H
Tr
Investm
ents ust
ee -
Detail
As
of
March
31,
2026
InvestmentDescription Acct
Number
Current
Purchase
Maturity
CUSIP
Yield
Date
natio
Supra -
nal
Agency
Bond /
Note Finan
Intl
ce
Corp
Notes
Inter -
American
Devel
BKCorporate
Notes
Inter -
American
Devel
BKCorporate
Notes
Intl
BK
Recon &
Develop
Notes
Supra -
Nati
onal Agency
Subtotal
Federal
Bo
Agency
Notend/
Federal
Home
Loan
Banks
Notes (
Callable)
Fannie
Mae
Notes (
Callable)
Federal
Home
Loan
Bank
Federal
Home
Loan
Bank
Federal
Home
Loan
Bank
Federal
Agency
Subt
otal:
Interest Total
Accrued
Interest
FMV
Adj.
45950KDF4
375% 4.
12/ 06 23
01/ 15 27
4581X0EM6
4. 375 %
12// 23
02/1 27
45818WFN1
4. 850 %
04/ 25
07/ 19 2
459058LT8
3. 625 %
05/6 2
05/ 28
3130ANCD0
1 .
110 %
07/ 30 21
07/ 26
3135G06L2
0. 875 %
12/8 20
12/8 26
3130B5K64
4 .
000 %
03/ 14 25
03/ 10 27
3130B6R24
3. 875 %
13/ 2506/
04/ 276
3130B9RC6
3. 500%
03/5 26
03/ 28
Total
Investments
Held
by
Trustee -
PFM
Asset Management $
Total
Investments
Held
by
Trustees $