Item Number: 14
City Council / Board of Directors
Consent Calendar
Meeting of: August 18, 2026
Submitted By:
Asdghik Keyvanian, Finance Director / City Treasurer
Subject:
Quarterly Investment Reports
Recommendation:
That the Honorable City Council/Board of Directors receive and file the attached Quarterly Investment Reports for the fourth quarter of Fiscal Year 2023-2024; the first through fourth quarters of Fiscal Year 2024-2025; and the first through fourth quarters of Fiscal Year 2025-2026.
Fiscal Impact:
There is no fiscal impact associated with this agenda item. The attached reports are informational and provide quarterly updates on the City's cash and investment holdings.
Strategic Plan Goal:
Goal A. Financial Sustainability - Foster fiscal health through disciplined long-term planning by adhering to our three (3) investment policy criteria: safety, liquidity, and yield.
Background:
The City of Victorville's Investment Policy (Policy No. CP-15-01) was adopted on January 20, 2015. The policy establishes guidelines for the prudent investment of public funds, with the primary objectives of preserving principal, maintaining sufficient liquidity to meet the City's operational needs, and maximizing investment yield while complying with all applicable laws governing public fund investments.
In accordance with the policy and California Government Code Section 53646, the City Treasurer shall prepare a Quarterly Investment Report, with interim reports as may be requested by the City Council/Board of Directors or deemed as appropriate by the City Treasurer. Each report shall include a management summary that provides a status of the current investment portfolios.
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Discussion:
Quarterly Investment Reports have been prepared for the fourth quarter of Fiscal Year 2023-2024, the first through fourth quarters of Fiscal Year 2024-2025, and the first through fourth quarters of Fiscal Year 2025-2026 (Attachments A-I). Due to changes in departmental staffing and evolving priorities during this period, the preparation and presentation of these reports were delayed. The outstanding reports have now been completed, and future Quarterly Investment Reports will be prepared and presented in accordance with the City's Investment Policy.
The following Tables 1 through 3 summarize the weighted average quarterly yields for the City's Local Agency Investment Fund (LAIF), Bank Accounts and Trustee Accounts for the reporting periods, along with the average annual yield for each fiscal year.
Although the first through third quarter reports for Fiscal Year 2023–2024 were previously presented to the Council/Board, they are included in Table 1 to provide a complete fiscal year summary.
Table 1: Average Quarterly Yield for Fiscal Year 2023-2024 – Quarters 1-4 Fiscal Year 2023-2024:
Investment Type:
Q1 Q2 Q3 Q4
FY24
Average
Rate
LAIF/Bank Accounts
(Cash) 4.52% 4.37% 4.94% 5.04% 4.72%
Trustee Accounts
(Bond Reserve Funds) 5.20% 5.23% 5.16% 5.18% 5.19%
Table 2: Average Quarterly Yield for Fiscal Year 2024-2025 – Quarters 1-4 Fiscal Year 2024-2025:Investment Type:
Q1 Q2 Q3 Q4
FY25
Average
Rate
LAIF/Bank Accounts
(Cash) 4.76% 4.48% 4.33% 4.30% 4.47%
Trustee Accounts
(Bond Reserve Funds) 4.85% 4.24% 4.10% 4.13% 4.33%
Table 3: Average Quarterly Yield for Fiscal Year 2025-2026 – Quarters 1-4 Fiscal Year 2025-2026:Investment Type:
Q1 Q2 Q3 Q4
FY26
Average
Rate
LAIF/Bank Accounts
(Cash) 4.15% 3.84% 3.69% 3.66% 3.84%
Trustee Accounts
(Bond Reserve Funds) 3.92% 3.31% 3.19% 3.18% 3.40%
As reflected in Table 4 below, investment yields increased beginning in Fiscal Year 2022- 23 as interest rates rose after several years of historically low rates. Yields gradually 4 8
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declined in Fiscal Years 2024-25 and 2025-26 as market interest rates decreased; however, the City’s investment portfolio continued to maintain safety, liquidity, and competitive returns consistent with the City’s Investment Policy.
Table 4: Average Annual Yield for Past 5 Fiscal Years, 5-Year Average Fiscal Year:Investment Type: 2021/22 2022/23 2023/24 2024/25 2025/26 5-Year
Avg
LAIF/Bank Accounts
(Cash) 0.34% 3.35% 4.72% 4.47% 3.84% 3.34%
Trustee Accounts
(Bond Reserve Funds) 0.48% 4.15% 5.19% 4.33% 3.40% 3.51% A significant portion of the City's operating funds is invested in the Local Agency Investment Fund (LAIF) and bank accounts, which are classified as cash because they are readily available to meet operational needs. Funds held in Trustee Accounts primarily consist of bond reserve funds that are required to remain with the bond trustee until the applicable debt obligations mature. Additional information regarding these investments is included in the attached Quarterly Investment Reports.
Staff is available to answer any questions the City Council/Board of Directors may have.
Prepared By:
Alex M. Garcia, Finance Analyst
Attachments: A. Quarterly Investment Report as of June 30, 2024 B. Quarterly Investment Report as of September 30, 2024 C. Quarterly Investment Report as of December 31, 2024
D. Quarterly Investment Report as of March 31, 2025
E. Quarterly Investment Report as of June 30, 2025
F. Quarterly Investment Report as of September 30, 2025 G. Quarterly Investment Report as of December 31, 2025
H. Quarterly Investment Report as of March 31, 2026
I. Quarterly Investment Report as of June 30, 2026