CITY COUNCIL AGENDA PACKET - Laserfiche WebLink

Page 3 of 7 As reported previously, the Federal Reserve (the Fed) has been raising interest rates since March 2022 but halted rate increases in July 2023. In 2022, the Fed raised rates seven times for a total of 425 basis points, and in 2023 the Fed raised another 100 basis points in total, with federal funds rate in a range of 5.25 percent to 5.50 percent, the highest levels in 25 years, resulting in even higher comparative market rates. As previously reported, most of the securities in the City’s investment portfolio were purchased before the rate hikes resulting in a lower expected rate of return. The purchases and sales during the quarter have rebalanced the portfolio resulting in more favorable rates to achieve a higher investment returns. As of June 30, 2025, the entire portfolio, exclusive of CDs 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. As of June 30, 2025, 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" Purchases, Maturities, and Sells During the quarter, the City's investment manager, Chandler Asset Management, purchased a number of securities on behalf of the City. Several securities were also sold/matured as presented in the tables below. Certain securities were sold at a loss with the intent of reinvesting the funds with higher yields, as these securities were purchased before COVID with much lower yields. Staff will continue to monitor cash inflows and outflows, taking into consideration anticipated construction costs for large capital projects and unexpected events. Below is a list of all the trades that occurred during the quarter ending June 30, 2025. Page 160 of 674