CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 10 Section Name: CONSENT CALENDAR Account Number: 10-2021 File ID: 26-11139 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: May 18, 2026
SUBJECT:
Quarter ending March 31, 2026 — Investment Report
RECOMMENDATION:
Receive the quarterly investment report for the period ending March 31, 2026.
BACKGROUND:
In the past, City staff has provided a quarterly report on the City’s investments to the Investment Advisory Committee for review. Going forward, City staff plans to provide this quarterly report to the City Council to include the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and moneys held by the local agency for review as soon as feasible following the end of the quarter, as permitted by California Government Code Section 53646. The most recent quarterly investment report, including all investments held by the City of San Mateo, is provided as Attachment 1 for the Council's review. Chandler Asset Management (Chandler), the City's investment advisor, manages the long-term portion of the City's portfolio, while staff manages the liquid/short-term portion as outlined in the investment report.
The California Government Code requires investment objectives of safety, liquidity, and yield, in that order. As such, safety of principal is the foremost objective of the City's investment program. The portfolio must remain sufficiently liquid to enable the City to meet all cash requirements.
California Government Code also strictly governs which investments public agencies can hold. In some cases, state law also governs what percentage of the portfolio can be invested in certain security types, maximum maturities and minimum credit ratings by major rating agencies, such as Standard & Poor's and Moody's Investors Service. The City's investment policy reflects these parameters and therefore, the City primarily invests in highly rated securities such as U.S. Treasury, federal agencies, and government sponsored enterprise debt as well as high credit quality, non-governmental debt securities. The investment report provides information on the values (par, book and market), the type of investment, issuer, maturity date and yield of each investment.
As City staff looks ahead to upcoming needs, July is typically the month in which the City sees the largest outflows of cash.
Based on forecasts, the City will have enough cash in our liquid/short-term investments to support our needs until the next large in-flow of funds, which will occur in December with property tax revenues. Thus, the City should have sufficient cash available without having to draw any funds from investment accounts with Chandler. As of March 31, 2026, the City’s liquid/short-term investments, our Pool accounts, had the following balances:
CITY OF SAN MATEO
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Account 3/31/26 Balance
Local Agency Investment Fund (LAIF) $ 73,905,797.37
California Asset Management Program (CAMP) $69,794,954.54 San Mateo County Investment Pool Fund (County Pool) $41,963,470.77 Total Liquid Investments $185,664,222.68
In summary, the overall goal of the City’s investment portfolio is to keep funds safe, accessible, and earning a reasonable return. Chandler staff and City staff continue to keep a close watch on market trends and risks to make sure the portfolio stays strong.
BUDGET IMPACT:
Overall, the City’s investment income remained strong for the third quarter of fiscal year 2025-26, totaling $2,216,550.09.
ENVIRONMENTAL DETERMINATION:
The Investment Report for the quarter ending March 31, 2026, is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – City of San Mateo Investment Report for the quarter ending 3/31/26
STAFF CONTACT
Karley Toffey, Senior Management Analyst
[email protected]
(650) 522-7106