January 20, 2026
Finance Department
DATE: January 20, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
Antonio Banuelos, Accounting Manager
SUBJECT:
Investment and Cash Balance Report, Monthly Overtime
Reports, Documentary Transfer Tax Report, and Other
Post-Employment Benefits (OPEB) and Pension Report
for the Month of November 2025
FINANCIAL IMPACT: There is no fiscal impact for receiving this item.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
City staff is requesting that the City Council receive the City’s Investment and Cash Balance Report, Monthly
Overtime Reports, Documentary Transfer Tax Report,
and Other Post-Employment Benefits (OPEB) and
Pension Report for the month of November 2025.
RECOMMENDED ACTION:
RECEIVE the City’s Investment and Cash Balance
Report, Monthly Overtime Reports, Documentary
Transfer Tax Report, and Other Post-Employment
Benefits (OPEB) and Pension Report for the month of
November 2025 – Finance Department (Emily Combs
510-620-6740).
AGENDA
REPORT
January 20, 2026
DISCUSSION:
Investment and Cash Balance Report
It is the policy of the City of Richmond (City) to invest public funds in a manner that prioritizes safety and liquidity over yield while meeting the daily cash flow demands of the City and conforming to all state and local statutes governing the investment of public funds. In accordance with California Government Code Section 53646 and the City’s Investment Policy, the Director of Finance shall report monthly on the City's pooled and Bond funds to the City Manager and City Council and shall report quarterly on other investments.
The Investment and Cash Balance Report is a monthly report of the City’s pooled cash balance, which includes General Fund, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal Service, Trust & Agency, Redevelopment/Successor Agency, and any other Funds investment activities under the direction of the City (Attachment 1).
On June 24, 2025, the City officially awarded a contract to Meeder Public Funds, Inc. to provide investment management and advisory services. Meeder’s approach emphasizes diversification, asset allocation, and advanced risk mitigation techniques.
Meeder’s strategy focuses on the City’s cash flow needs to prioritize safety and liquidity.
These strategies are designed to safeguard the City’s principal investments, especially during periods of market volatility. Meeder’s approach ensures that our portfolio remains resilient and well-positioned to meet cash flow demands.
The Federal Reserve reduced the Fed Funds rate by .25 percent on Wednesday, December 10, 2025, marking the third 25 basis point cut of the year. Cumulatively, the Fed has lowered rates by 1.75 percent this cycle, with the first cut in September 2023 (50 basis points) being the largest (deepest) of the cycle. The Fed stated the weakness of the labor market was the primary driver of this latest policy move. After plunging to essentially zero in the previous two Fed cutting cycles (the Great Recession and COVID), Fed Fund futures are projecting a low of around 3 percent this cycle, which is welcome news to short-term investors after the challenging zero interest rate policy (ZIRP) environment experienced twice in the past sixteen years.
The primary drivers of intermediate and long-term interest rates are expectations for inflation, economic growth, and employment. Over the past three years, the 5-year U.S.
Treasury yield has generally traded within a range of 3.7 to 4.7 percent. In fact, approximately 80 percent of the occurrences have been in this 100-basis point range. A weaker labor market has been the recent driver for lower rates in the second half of 2025, but the 5-year T-note’s yield has climbed back within the range we have observed the past three years as inflation has remained sticky, and above the Fed’s 2 percent year-over-year target. Over the past 20 years, the 5-year’s yield has averaged only 2.3 percent, with the Great Recession’s and COVID’s low-yielding years dragging down the average. So even though the 5-year’s yield has declined about 120 basis points from January 20, 2026
the 2023 cycle high, many public fund investors generally see a yield in the upper 3s as a prudent investment.
Overtime Reports
The overtime reports for the month of November 2025 provides a comparative summary of budgeted overtime to actual overtime usage by department for miscellaneous and sworn staff. Year-over-year and month-over-month totals are included for sworn staff (Attachments 2 and 3).
Documentary Transfer Tax
On June 24, 2024, the City Council requested monthly updates of the Transfer Tax received by the City of Richmond from Contra Costa County for the sale of properties in Richmond. As this is the most volatile revenue stream for the City, the amounts received month-to-month can vary from as low as $300,000 to upwards of $7 million – a few large sales can widely swing the revenues.
In December 2025, the City received the documentary transfer tax data report from the County, which identified that the tax revenue for November 2025 would total $371,688 (Attachment 4).
Other Post-Employment Benefits (OPEB) & Pension Report
The City is permitted to pre-fund its future Pension and Other Post-Employment Benefits (OPEB) costs in accordance with the OPEB policies. These funds are invested following the policies’ funding objectives and guidelines. The City manages a Section 115 Combination Trust for City-OPEB & Pension administered by Public Agency Retirement Services (PARS) and a California Employers’ Retiree Benefit Trust (CERBT) administered by California Public Employees’ Retirement System (CalPERS) for Richmond Police Officers Association (RPOA)-OPEB. Each Trust contains a diversified portfolio of investments consistent with the objectives and liquidity requirements of the Trust.
On April 22, 2025, the City Manager requested monthly updates to the City Council on the returns of the OPEB and Pension accounts. The City operates two OPEB plans: the RPOA Plan administered by CalPERS in a California Employers’ Retiree Benefit Trust (CERBT), and the City Plan administered by Public Agency Retirement Services (PARS). In May 2024, PARS was also assigned to administer the Pension account. The City receives monthly account statements for the PARS accounts, while the CalPERS account statement is received quarterly. As these statements are received after the period closes, the amounts are reported on a delayed timeframe.
In October 2025, the PARS OPEB account reported a gain of $806,550.12 for a rate of
1.36 percent. The 3-month return rate is 5.61 percent, and the annualized return rate for FY 2025-26 will be calculated at 6 months of activity. The PARS Pension account January 20, 2026
reported a gain of $79,874.66, for a rate of 1.42 percent. The 3-month return rate is 6.69 percent, and the annualized return rate for FY 2025-26 will be calculated at 6 months of activity.
In September 2025, the CalPERS CERBT account reported quarterly earnings of $666,624.09, for a 3 month return rate of 4.82 percent, and the annualized return rate for FY 2025-26 will be calculated at 2 quarters of activity. (Attachment 5).
DOCUMENTS ATTACHED:
Attachment 1 – Investment and Cash Balance Report for November 2025 Attachment 2 – Overtime Report for November 2025
Attachment 3 – Overtime Public Safety Report for November 2025 Attachment 4 – Documentary Transfer Tax Report for November 2025 Attachment 5 – Other Post-Employment Benefits and Pension Report for November 2025