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Page 4 of 6 <br />Purchases and Maturities <br />Four securities were purchased during the quarter by Chandler Investment, and one security <br />matured in October and one certificate of deposit matured in December and was renewed. <br />Staff continued to be conservative on investment. Staff will continue to monitor cash inflows <br />and outflows, taking into consideration anticipated construction costs for large capital projects <br />and unexpected events. <br /> <br /> <br /> <br />Section 115 Trust Fund <br />In June 2018, the City Council approved the investment of $28.0 million of various reserves <br />into a Section 115 Trust Fund to help smooth the pension liabilities which are expected to <br />grow in the long run. The investment is made into two separate portfolios, the first for $6.7 <br />million into a Conservative portfolio which is available to pay the annual unfunded liabilities if <br />necessary, and the second for $21.3 million into a long-term Capital Growth portfolio. <br /> <br />In February 2020, the City Council authorized Finance staff to deposit to, and withdraw from, <br />the Conservative portfolio an additional amount up to the total annual required CalPERS <br />payment. In March and June 2020, two additional $5.0 million contributions were deposited <br />into the Conservative portfolio for a total of $16.7 million deposited into the Conservative <br />portfolio. <br /> <br />As presented in the chart below, the Conservative portfolio balance was $20.2 million at the <br />end of December 31, 2024, remaining steady from the prior quarter. The Conservative <br />portfolio investment return for the quarter ended December 31, 2024, was 0.08 percent, and <br />the five-year annualized return was 3.64 percent. <br /> <br />Page 172 of 749