Treasurer’s Quarterly
Administrative Report
City Treasurer
August 13, 2026
Quarter Ended June 30, 2026
Contents
1 • Investment Objectives
• Investment Reporting Guidelines
• California Government Code
• Investment Policy Compliance
• Historical Portfolio Performance
• Portfolio Characteristics
• Fiscal Impact
Required Objectives for
Investing Public Funds
2 Safety: Protect Principal
The City Treasurer maintains
the City’s cash flows while
earning a competitive rate of return
on the investments within the
constraints of the City’s Investment
Policy and California Government
Code.
Liquidity: Ability to meet
spending needs
Yield: Maximize earnings
after prioritizing safety
and liquidity
Code Reference: California Government Code Section 53600.5 3 Investment Reporting Guidelines • Always remember whose money it is (it’s the community’s, not yours) – and act accordingly in a responsible stewardship capacity. • An investment manager’s objective is to earn a reasonable rate of return on the City’s investments,
while preserving capital in the overall portfolio. It
should never be an investment manager’s goal to
earn maximum returns on the City’s portfolio as this
would expose the City to an unacceptable level of risk • Failures in public investing occur when either: • Policies were not clear. • Policies were inappropriate. • Policies were not followed. • Oversight was inadequate.
Questions to Ask
Do you review the investment policy?
Do you understand the City’s investment
program?
Do you receive and review periodic
investment reports?
Are they clear, concise, readable?
Do you fully understand them? • If you can’t, this is more likely to be because they’ve been presented poorly, and may in
fact reflect problems, than any “technical”
problems with your ability to understand
them because it’s too “complex.” • It’s the job of your staff to make them readable and understandable; • and if the City’s portfolio is genuinely that complex, perhaps it shouldn’t be.
California Government Code in Perspective
*CGC Section 53601.1 permits financial futures and options contracts in any of the investment types permitted by 53601. However, the City of Redondo Beach does not permit the use per Policy.
Source: California Government Code Section 53601
Securities 1 Day 180 Days 270 Days 1 Year 5 Years Over 5 Years Requires Approval
U.S. Treasuries Permitted
Federal Agencies Permitted
Municipal Securities Permitted
Negotiable Certificates of Deposit Permitted
Commercial Paper Permitted X Prohibited
Bankers’ Acceptances Permitted X Prohibited
X Prohibited
Medium-Term Corporate Notes Permitted
Asset-Backed Securities (ABS) Permitted
Supranationals Permitted
Public Bank Debt Permitted Requires Approval
Repurchase Agreements Permitted X Prohibited
X Prohibited Money Market Funds/Bond Mutual Funds Permitted Local Government Investment Pools Permitted
X Prohibited
Foreign Sovereign
Fixed-Income ETFs
High-Yield Bonds
Private Placements
Convertibles
Non-U.S. Dollar Investment Grade
Emerging Markets Debt
Bank Loans
Domestic Equities (Large, Mid, Small Cap)
Int’l Equities (Large, Mid, Small Cap)
Emerging Markets
Preferred Stock
Equity Mutual Funds and ETFs
Commodities
Real Estate
Hedge Funds
Private Equity
Venture Capital
Tangible Assets
Complex Derivatives, Futures* and Options
4 Investment Policy Compliance
5 Compliance Overview
Source: Meeder investment report as of June 30, 2026
Historical Portfolio Characteristics
6 $60
$70
$80
$90
$100
$110
$120
Balances
0%
20%
40%
60%
80%
100% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Sector Allocation
Negotiable CD Corporate Federal Agency
U.S. Treasury LAIF CAMP
Money Market
7 Portfolio Characteristics
Money Market Fund
0.5%
LGIP
46.4%
U.S. Treasury
17.4%
Federal Agency
27.8%
Corporate
7.9%
Sector Allocation
46.9%
37.9%
11.8%
2.2%
0.0% 1.1%
0%
10%
20%
30%
40%
50%
60%
1 Day 0-1 Years 1-2 Years 2-3 Years 3-4 Years 4-5 Years Maturity Distribution
8 Fiscal Impact
• Interest earned for the Fiscal Year 2025-2026 was
$2,381,298. • The General Fund constitutes approximately 60% of the portfolio. The approximate apportionment to the General Fund was $1,428,779. • The budgeted contribution of interest to the General Fund for the fiscal year was $1,500,000.