Agenda Item
Orange City Council
Item #: 8.6. 2/10/2026 File #: 25-0701
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 October, November, and December of 2025.
2. SUMMARY
These reports provide a compilation of three-monthly Treasurer’sReports to the City Council for the second quarter of Fiscal Year 2025-26. 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
The City’sFiscal Year 2025-26 Statement of Investment Policy was adopted by the Orange City Council on August 12, 2025, as Resolution 25-0474 and is in accordance with the 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 January 28, 2026. A summary of Treasurer’scash and investments is also included.
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Item #: 8.6. 2/10/2026 File #: 25-0701
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 December 31, 2025. As of December 31, 2025, the book value of the City’s total investment portfolio was $159,899,724 million, of which $92.8 million, or 58%, was managed by Chandler Asset Management (Chandler), the City’sinvestment manager. The remaining balance $67.1 million of the portfolio was managed by City staff of which $41.2 million was invested in the Local Agency Investment Fund (LAIF) and $25.9 million held in the City’soperating checking account.
Cash & Investments Balance₁
Chandler Investments: $92,776,109
LAIF, City: $35,538,464
LAIF, Successor Agency: $5,646,952
Wells Fargo Bank: $25,938,199
Balance at 12/31/2025 $159,899,724
(1) Represents the bank balance. Includes operating cash and investments (valued at cost). Does not include deposits with administrator, impress 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 December 31, 2025, totaled just under $160 million. The City’s balances by fund are presented on the table below.
Fund Categories Amount
General Fund 27,246,815 17%
Special Revenue Fund 33,134,960 21%
Enterprise Fund 41,540,847 26%
Capital Project Fund 27,686,554 17%
Internal Service Fund 19,579,700 12%
Other Funds 10,710,848 7%
159,899,724 100.0%
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Item #: 8.6. 2/10/2026 File #: 25-0701
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 December 31, 2025 the City investments consisted of the following and are compliant with the Investment Policy.
Investment Type
Book Value as of
December 31,
2025
Percentage of Portfolio
Investment by Type
Federal Agency Securities 15,575,046 58.02%
Corporate Notes 23,531,243
Commercial Paper 1,988,851
U.S. Treasury Notes 38,048,889
Asset Backed Securities 10,799,042
Supranational 2,601,719
Money Market Fund 228,110
Chandler Custodial Cash 3,211
Local Agency Investment Fund City (LAIF 604) 35,538,464 25.76% Local Agency Investment Fund Successor (LAIF 007) 5,646,952 Checking Account/Custodial Cash (WF14) 604,429 16.22% Checking Account/Custodial Cash (WF15) 25,280,495
Checking Account/Custodial Cash (WF12) 53,275
Total Investments 159,899,724 100%
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Item #: 8.6. 2/10/2026 File #: 25-0701
Investment Type
Book Value as of
December 31,
2025
Percentage of Portfolio
Investment by Type
Federal Agency Securities 15,575,046 58.02%
Corporate Notes 23,531,243
Commercial Paper 1,988,851
U.S. Treasury Notes 38,048,889
Asset Backed Securities 10,799,042
Supranational 2,601,719
Money Market Fund 228,110
Chandler Custodial Cash 3,211
Local Agency Investment Fund City (LAIF 604) 35,538,464 25.76% Local Agency Investment Fund Successor (LAIF 007) 5,646,952 Checking Account/Custodial Cash (WF14) 604,429 16.22% Checking Account/Custodial Cash (WF15) 25,280,495
Checking Account/Custodial Cash (WF12) 53,275
Total Investments 159,899,724 100%
Cash Transactions:
The City’s total cash increased by about $15.5 million from the last quarter’s total to just under $160 million largely from the annual property tax disbursement received in December. Total cash fluctuates over the course of the fiscal year due to cyclical events. All cash disbursements are within the FY 2025-26 budget and all check registers are presented to the City Council monthly.
Treasurers’ Comments:
Q2 FY26 was right in line with the Chandler benchmark. We saw some shift in Treasury notes rising to 41% from 35% and Corporate notes dropping to 25% from 27%. Additionally, Agency dropped from 19% to 14%.
The investment portfolio as a whole, is in a healthy state and in full compliance with city and state regulations. I will continue to look for options on maximizing our returns.
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 - the values are below for reference:
(average of 3.76%)
October 2025 = $37,369
November 2025 = $40,068
December 2025 = $60,779
TOTAL = $138,216
7. ATTACHMENTS
· Chandler Monthly Investment Report October 2025
· Chandler Monthly Investment Report November 2025
· Chandler Monthly Investment Report December 2025
· Chandler Investment Report for the Period Ending December 31, 2025 City of Orange Printed on 2/5/2026Page 4 of 4
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