Agenda Item
Orange City Council
Item #: 10.5. 12/9/2025 File #: 25-0640
TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Garrett Smith, City Treasurer
1. SUBJECT
Investment Portfolio Update for July, August, and September of 2025.
2. SUMMARY
These reports provide a compilation of three-monthly Treasurer’sReports to the City Council for the first quarter of Fiscal Year 2025-2026. Included in the reports are an economic update and detail of the City’s portfolio holdings, monthly transactions, and consolidated information on all cash and investments.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.
6. DISCUSSION AND BACKGROUND
On August 12, 2025, the Orange City Council adopted Resolution No. 25-0474, approving the City’s Fiscal Year 2025-26 Statement of Investment Policy (Investment Policy) in accordance with California Government Code Sections 53600 et seq. Per the Investment Policy, three monthly investment reports are to be submitted to the City Council within 45 days following the end of the quarter.
As required by the City’s present Investment Policy, the City Treasurer’s report delineates all investments made by the City Treasurer for the City, its special funds, and the Successor Agency funds, by investment type and by broker.
The monthly Compliance Report certifying compliance of all investments with both the Government Code and the City’s Investment Policy is included.
The Investment Portfolio Statement accurately reflects all investments held by the City and its agents as of the end of the month. The accompanying reports and investment strategies were reviewed by the Investment Committee on October 22, 2025. A summary of Treasurer’scash and investments is also included.
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Item #: 10.5. 12/9/2025 File #: 25-0640
Summary of Cash and Investments:
The cash and investment report provides a summary of the cash and investment accounts held by the City as quarter ending September 30, 2025. As of September 30, 2025, the book value of the City’stotal investment portfolio was $144.4 million, of which $106.5 million, or 73.8%, was managed by Chandler Asset Management (Chandler), the City’sinvestment manager. The remaining balance $37.9 million of the portfolio was managed by City staff of which $25.8 million was invested in the Local Agency Investment Fund (LAIF) and $12.1 million held in the City’s operating checking account.
Cash & Investments Balance₁
Chandler Investments: $106,498,016
LAIF, City: $20,218,598
LAIF, Successor Agency: $5,585,932
Wells Fargo Bank: $12,090,873
Balance at 3/31/2025 $144,393,418
(1)Represents the bank balance. Includes operating cash and investments (valued at cost). Does not include deposits with administrator, imprest cash, fiscal agent cash and investments, and deferred compensation.
Pursuant to California Government Code Section 53646(b)(3), the City certifies that the reported cash and investment balances are sufficient to meet anticipated expenditures for the next six months.
In summary, cash and investments as of September 30, 2025, totaled $144.4 million. The City’s balances by fund are presented in the Cash and Investment by Fund attachment.
Fund Categories Amount
General Fund 24,604,550 17%
Special Revenue Fund 29,921,691 21%
Enterprise Fund 37,512,416 26%
Capital Project Fund 25,001,645 17%
Internal Service Fund 17,680,955 12%
Other Funds 9,672,162 7%
144,393,418 100.0%
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Item #: 10.5. 12/9/2025 File #: 25-0640
The City invests a large portion of its portfolio in Federal Agency Securities and U.S. Treasury Notes due to safety and preservation of capital to prevent loss. The City also invests a portion of its funds in LAIF which offers same day liquidity. Additionally, the City invests in high quality corporate notes, asset backed securities, and supranational agency bonds to obtain higher yields and add diversity to the portfolio. As of September 30, 2025, the City investments consisted of the following and are compliant with the Investment Policy:
Investment Type
Book Value as of
September 30,
2025
Percentage of Portfolio
Investment by Type
Federal Agency Securities 23,615,052 73.76%
Corporate Notes 29,017,024
Commercial Paper 1,967,026
U.S. Treasury Notes 38,045,163
Asset Backed Securities 10,994,170
Supranational 2,598,477
Money Market Fund 259,978
Chandler Custodial Cash 1,125
Local Agency Investment Fund City (LAIF 604) 20,218,598 17.87% Local Agency Investment Fund Successor (LAIF 007) 5,585,932 Checking Account/Custodial Cash (WF14) 581,083 8.37% Checking Account/Custodial Cash (WF15) 11,037,499
Checking Account/Custodial Cash (WF12) 472,291
Total Investments 144,393,418 100%
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Item #: 10.5. 12/9/2025 File #: 25-0640
Investment Type
Book Value as of
September 30,
2025
Percentage of Portfolio
Investment by Type
Federal Agency Securities 23,615,052 73.76%
Corporate Notes 29,017,024
Commercial Paper 1,967,026
U.S. Treasury Notes 38,045,163
Asset Backed Securities 10,994,170
Supranational 2,598,477
Money Market Fund 259,978
Chandler Custodial Cash 1,125
Local Agency Investment Fund City (LAIF 604) 20,218,598 17.87% Local Agency Investment Fund Successor (LAIF 007) 5,585,932 Checking Account/Custodial Cash (WF14) 581,083 8.37% Checking Account/Custodial Cash (WF15) 11,037,499
Checking Account/Custodial Cash (WF12) 472,291
Total Investments 144,393,418 100%
Significant Cash Transactions:
The City’s total cash decreased by about $23.1 million from the last quarter’s total of $167.5 million.
Total cash fluctuates over the course of the fiscal year due to cyclical events. All cash disbursements are within the FY 2024-25 and FY 2025-26 budget and all check registers are presented to the City Council monthly.
Treasurers’ Comments:
Q1 FY26 showed slight upside from a benchmark perspective with 1.27% return vs 1.14% benchmark. We did not have much movement between sectors this quarter as majority of that took place last quarter with a greater shift into the US Treasury.
The investment portfolio as a whole, is in a healthy state and in full compliance with City and state regulations.
In addition to the investment portfolio being in good standing, we also saw dividends on our Wells Fargo side. The interest rates do fluctuate on a monthly basis, ranging from 3.97% to 4.17%, the values are below for reference:
July 2025 = $47,004
August 2025 = $49,296
September 2025 = $29,951
TOTAL = $126,251
7. ATTACHMENTS
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Item #: 10.5. 12/9/2025 File #: 25-0640
· Chandler Monthly Investment Report July 2025
· Chandler Monthly Investment Report August 2025
· Chandler Monthly Investment Report September 2025
· Chandler Investment Report for the Period Ending September 30, 2025 City of Orange Printed on 12/3/2025Page 5 of 5
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