CITY OF MENIFEE
SUBJECT: City of Menifee Annual Cash & Investment Overview MEETING DATE: September 14, 2026
TO: Finance Committee
PREPARED BY: Amir Zaki, 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, 2025 to June 30, 2026 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 Chief Financial Officer (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, however, the bank calculates an “earnings credit” based on average daily balances. The earning credit is applied to charges for banking services. At the end of Fiscal year (FY) 2026, the balance was $9,804,240,54 and deposits averaged $14.2 million/month while withdrawals averaged $14.4 million/month. The City’s savings account received an annual percentage yield of 0.09% monthly and at June 30, 2026 had a balance of $47,934.87. The City also maintains a separate asset forfeiture account to deposit and manage any funds taken into custody under asset forfeiture by the Police Department.
The balance in this account at June 30, 2026, was $76,202.23. The final bank account is used for the Flexible Spending Account, the funding of which is by employees through an annual election during open enrollment. As eligible medical purchases are
City of Menifee Staff Report
City of Menifee Annual Cash & Investment Overview
September 14, 2026
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made, these funds are utilized to reimburse employees. The balance in this account at June 30, 2026 was $324,379.33.
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 FY2025/26 the monthly average balance of short-term investments represented approximately $127.3 million, with investment returns of just over $5.1 million for the FY2025/26 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 FY2025/26 the monthly average market value of long-term investments represented approximately $137 million with investment returns of just under $5.4 million for the FY2025/26 period.
Additionally, the City has other funds and associated investments held by Wilmington Trust and Public Agency Retirement Services (PARS), as designated trustees. The Wilmington Trust accounts are related to the various bonded CFDs, as well as debt service payments of the TRIP and Streetlight Retrofit projects. The bonded CFDs which hold larger balances, particularly at the initial bond issuance(s), have designated investment option selected at the establishment of the various accounts held by Wilmington Trust. The PARS funds relate to the Section 115 Trust accounts set up for pension and other post-employment benefits (OPEB) costs. The balance of these others funds at June 30, 2026 were $24,549,475.52.
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.
FY2025/26 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 FY2025/26. 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 and longer-term investment balances throughout the year, and an overall favorable interest rate environment in both short-term and long-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. We did see a weakening of rates during FY2025/26 as compared to FY2024/25, but rates have continued to hold steady as compared to the past 15 years or more.
City of Menifee Staff Report
City of Menifee Annual Cash & Investment Overview
September 14, 2026
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Table 1: FY 2026 Overall Investment Portfolio Performance Summary: Short-Term Investment
Portfolio
Investment
Type/
Investment
Category
Beginning
Market Value
07/01/2025
Ending Market
Value
06/30/2026
Investment
Returns
(Cash
Dividends/
Interest)
Monthly Interest
Earnings Rate (%)
Range
CAMP
Pool/
Short-Term $87,788,589.54 $109,874,986.62 $3,586,397 3.76 – 4.41% LAIF
Pool/
Short-Term 35,871,155.71 37,411,279,74 1,540,123 3.81 – 4.258% Total Short-Term
Investments $123,659,745.25 $147,286,266.36 $5,126,520
Table 2: FY 2025 Overall Investment Portfolio Performance Summary: Longer-Term Investment
Portfolio
Investment
Type/
Investment
Category
Beginning
Market Value
07/01/2025
Ending Market
Value
06/30/2026
Investment
Returns
Average Market
Yields
Chandler
Asset
Management Longer-Term $134,245,629.99 $138,231,391.11 $5,387,702 3.61% - 4.00% The City’s long-term investment portfolio is managed with the support of Chandler Asset Management as the day-to-day investment advisor. 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 long-term investment performance for FY 2026 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 Report as of June 30, 2026
2. Chandler Asset Management Cash Flow Analysis