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Page 1 of 6 Item #5 CITY COUNCIL AGENDA REPORT May 6, 2025 Finance TITLE: ACCEPT THE MONTHLY DISBURSEMENT AND INVESTMENT REPORT FOR MARCH 2025 SUMMARY Attached is the monthly disbursement and investment report for March 2025. RECOMMENDATION Accept claim disbursements in the amount of $17,837,431 and the investment report for the month of March 2025. BACKGROUND The City's Investment Policy requires the Director of Finance to submit a monthly transaction report to the City Council within 60 days of the end of the reporting period in accordance with California Government Code Section 53607. The Investment Policy also requires the Director of Finance to submit a quarterly report to the City Council on the status of the City's investment portfolio no later than 45 days after the end of each month. This report shall include the types of investments, the amount of money invested with various institutions, purchase and maturity dates, and yield on investments. The Director of Finance certifies that the investment portfolio complies with the investment policy and will meet cash flow needs for the next six months. This report also includes check and electronic payment information for March 2025. DISCUSSION The book value of the City's primary investment portfolio increased by $1.3 million from $240.8 million to $242.1 million during the quarter ending March 31, 2025. The fiscal year-to- date effective rate of return on the portfolio was 1.62 percent. The average days to maturity (ADM) decreased from 345 days on December 31, 2024, to 325 days on March 31, 2025. The City's investment in the Local Agency Investment Fund (LAIF) increased to $53.3 million from $52.9 million last quarter ending December 31, 2024. The quarterly LAIF apportionment interest rate was 4.48 percent with an ADM of 244 days. The average monthly effective yield was 4.31 percent in March, 4.33 percent in February, and 4.37 percent in January. During the quarter, the medium-term notes with Apple Inc., 3M Company, Exxon Mobil Corporation and Truist Bank matured for approximately $10.4 million, including interest. The certificate of deposit with Fremont Bank matured and was renewed. As of March 31, 2025, approximately 66.2 percent of the total portfolio consisted of federal agency securities, while the LAIF investment was 22.5 percent of the portfolio. Corporate notes accounted for 7.3 percent of the portfolio, Treasury Securities 1.2 percent, Government Money Market 2.2 percent, supranationals 0.4 percent, and certificates of deposit 0.2 percent. Page 34 of 249