CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 7 Section Name: CONSENT CALENDAR Account Number: 10-2021 File ID: 26-11582 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Finance Department
MEETING DATE: September 08, 2026
SUBJECT:
Investment Report — Quarter ending June 30, 2026
RECOMMENDATION:
Receive the quarterly investment report for the period ending June 30, 2026.
BACKGROUND:
Following the end of each quarter, the Finance team provides the City’s investment report, including all investments held by the City of San Mateo, to the City Council for review. The California Government Code requires investment objectives of safety, liquidity, and yield, in that order, for monies held by local government agencies. As such, safety of principal is the foremost objective of the City's investment program, and 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. Treasuries, federal agencies, and government sponsored enterprise debt as well as high credit quality, non- governmental debt securities.
4th Quarter Investment Report
The most recent quarterly investment report for the period ending June 30, 2026, is provided as Attachment 1. The report was compiled by Chandler Asset Management (Chandler), the City’s investment advisor, which manages the long-term portion of the City’s portfolio. City staff manages the liquid/short-term portion as outlined in the investment report. The investment report provides information on the values (par, book and market), the type of investment, issuer, maturity date, and yield of each investment.
The City’s portfolio represents the cash and investments for all funds. Finance staff track each fund separately within the portfolio and apply investment income proportionately at the end of the year. For the year ended June 30, 2026, the unaudited results show the following approximate make up of the portfolio including 49 % Enterprise Funds (Sewer/Storm), 16 % General Fund, 15 % Special Revenue Funds, 14 % Capital Funds, and 6 % Internal Service Funds.
City Managed Cash Balance
As City staff looks ahead, we focus on our forecasts through December. Based on current forecasts, the City will have enough cash 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 June 30, 2026, the City’s liquid/short-term investments, our Pool accounts, had the following balances:
CITY OF SAN MATEO
Account 6/30/26 Balance
Local Agency Investment Fund (LAIF) $ 72,630,787.99
California Asset Management Program (CAMP) $90,582,926.19 San Mateo County Investment Pool Fund (County Pool) $49,745,537.70 Total Liquid Investments $212,959,251.88
In summary, the overall goal of the City’s investment portfolio is to keep funds safe, accessible, and earning a reasonable return. For the 4th Quarter, the total market value of the City’s portfolio was $641,636,063.96 and the average market yield was 4.15 %. 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:
This is an informational item and does not impact the budget.
ENVIRONMENTAL DETERMINATION:
This quarterly investment report 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).)
STRATEGIC PLAN ALIGNMENT
This staff report supports the Organizational Health and Good Governance initiative.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – City of San Mateo Investment Report for the period ending June 30, 2026
STAFF CONTACT
Karley Toffey, Senior Management Analyst
[email protected]
(650) 522-7106