CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 3 of 5 near term. As securities mature and funds are reinvested, the City will be able to achieve higher investment returns. As of March 31, 2024, the entire portfolio, exclusive of money market accounts and LAIF was held in third party safekeeping for the benefit of the City of Pleasanton at Bank of New York Mellon. Bank of New York Mellon is a contractual agent for the City of Pleasanton. As of March 31, 2024, all investments in the portfolio are authorized by State of California Government Section 53600 et. Seq. and the City's investment policy. Securities rated below "AA-/AA3" Please note that the medium term note with 3M Company is rated at A by Moody's and rated at BBB+ by S&P. A rating of A indicates the investment grade is very high and a rating of BBB+ indicates the investment grade is good. When this investment was purchased in 2019, it met the A rating category required by the City's investment policy. This investment is scheduled to mature in February 2025. Staff has been monitoring this investment and will take action such as selling the security before maturity if warranted. The effective fiscal year rate of return on the portfolio was 1.54 percent, an increase of 0.05 percent from 1.49 percent from last quarter and an increase of 0.25 percent from 1.29 percent reported at the same time last year. Maturities No securities were purchased during the quarter, and one matured in January. Staff continued to be conservative on investment. Staff will continue to monitor cash inflows and outflows, taking into consideration anticipated construction costs for large capital projects and unexpected events. Section 115 Trust Fund In June 2018, the City Council approved the investment of $28.0 million of various reserves into a Section 115 Trust Fund to help smooth the pension liabilities which are expected to Page 210 of 720