CITY OF MENIFEE
SUBJECT: City of Menifee Annual Cash & Investment Overview MEETING DATE: September 9, 2025
TO: Finance Committee
PREPARED BY: Ann-Marie Etienne, Finance Manager
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Receive and file presentation on City of Menifee’s Annual Cash & Investment Overview for the July 1, 2024 to June 30, 2025 period.
DISCUSSION
The City of Menifee’s Investment Policy, CC-11, was created in 2008 and is reviewed/updated annually with the purpose to establish guidelines for investment operations of the City. Pursuant to the policy, the City of Menifee will foster a prudent and systematic investment program designed to seek the City of Menifee’s objectives of safety, liquidity, and return through a diversified investment portfolio. The treasury responsibilities of the City are managed by the Finance Department, under direction and oversight of the CFO/City Treasurer, and within the Accounting and Treasury unit. In its treasury operations, the City maintains its cash assets within three main categories:
1.General Checking/Savings Accounts: (Most Liquid/Accessible, no investment returns). The General Checking is not an interest-bearing account. At the end of Fiscal year 2025, Deposits averaged $16.8 million while withdrawals averaged $16.04 million. The City’s savings account received an annual percentage yield of 0.09% monthly and at June 30, 2025 was at a balance of $47,891.79. The City also maintains a separate asset forfeiture account established in 2020 to deposit and manage any funds taken into custody under asset forfeiture by the police department. The balance in this account at June 30, 2025, was $74,880.98.
2.Short-Term Investment Pools (LAIF/CAMP) (Second most liquid, accessible within 24 hour turnaround. Provide opportunity for investment returns and more accessibility to funds than longer term investments, but interest rates can quickly change with economic changes). Over Fiscal Year 2024/25 the monthly average balance of short-
City of Menifee Staff Report
City of Menifee Annual Cash & Investment Overview
September 9, 2025
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term investments represented approximately $98 million, with investment returns of just over $4.8 million for the FY2024/25 period.
3.Longer-Term Investment Portfolio (Managed by Chandler Asset Management) (Least Liquid/Accessible, generally covering investment periods of 2-5 years, but provide the opportunity to lock in favorable interest rates/earnings). Over Fiscal Year 2024/25 the monthly average balance of long-term investments represented approximately $131 million with investment returns of just over $5 million for the FY2024/25 period.
Additionally, the City has other funds and associated investments held by Wilmington Trust.
These are related to the various bonded Community Facility Districts (“CFD”s), as well as debt service payments of the TRIP and Streetlight Retrofit projects. The bonded CFDs which hold larger balance particularly at the initial bond issuance(s) have designated investment options selected at the establishment of the various accounts held by Wilmington Trust.
Overall, the City’s cash management and investment strategy is to ensure that it has immediate access to the necessary cash it needs to support its on-going operational and capital program costs throughout the year, but that it also is able to safely and proactively invest some its cash holdings, providing interest earnings that can ultimately be redirected into providing city services and capital projects.
FY2024/25 Investment Portfolio Performance Summary:
Monthly reporting in the form of a Treasurer’s Report is presented at the City Council meetings throughout the year. Additionally, every three months a more comprehensive Quarterly Report with detailed transactions is included as a regular City Council agenda item.
The purpose of this report is to provide a year long (12-month) lookback at the City’s investment portfolio for Fiscal Year 2024/25. In summary, the City’s investment portfolio maintained compliance with the requirements of the Investment Policy, and investment earnings performed strongly through the past 12 months. This is attributable to important factors such as the consolidation of the City’s Longer-Term Investment Portfolio under one investment advisor beginning with the spring of 2024, additional contributions to increase both short-term investment balances throughout the year, and an overall favorable interest rate environment in both short- term and longer-term investments over this period. Of note is that in this time period the short- term investment return rates were strong, but the agency recognizes these rates are more susceptible to quicker changes resulting from economic uncertainties and changes.
City of Menifee Staff Report
City of Menifee Annual Cash & Investment Overview
September 9, 2025
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TABLE 1: FY 2025 OVERALL INVESTMENT PORTFOLIO PERFORMANCE SUMMARY:
SHORT-TERM
Investment
Portfolio
Investment
Type/
Investment
Category
Beginning
Market Value
07/01/2024
Ending Market
Value
06/30/2025
Investment
Returns
(Cash
Dividends/
Interest)
Monthly Interest
Earnings Rate (%)
Range
CAMP Pool/
Short-Term $77,125,117.40 $87,788,589.54 $3,914,194.76 4.40 – 5.43% LAIF Pool/
Short-Term 11,250,317.08 35,871,155.71 887,571.62 4.269 – 4.579% Total Short-Term
Investments $88,375,434.48 $123,659,745.25 $4,801,766.38 TABLE 2: FY 2025 OVERALL INVESTMENT PORTFOLIO PERFORMANCE SUMMARY:
LONGER-TERM
Investment
Portfolio
Investment
Type/
Investment
Category
Beginning
Market Value
07/01/2024
Ending Market
Value
06/30/2025
Investment
Returns
Average Market
Yields
Chandler
Asset
Management
Longer-Term $127,474,840 $135,360,677 $5,002,245.64 3.91% - 4.47% The City’s long-term investment portfolio is organized into a single portfolio and is managed with the support of Chandler Asset Management. Chandler supports the long-term investment goals of the City while effectively ensuring the portfolio remains in compliance with the City’s Investment Policy, CA Government Code and any other applicable investment rules/laws.
A presentation on the City’s longer-term investment performance for FY 2025 has been prepared by Chandler Asset Management and is presented to the Finance Committee for receipt and file.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Chandler Asset Management Investment Portfolio Review