TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Garrett Smith, City Treasurer
1. Subject
title
Investment Portfolio Update for July, August, and September of 2025.
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2. Summary
These reports provide a compilation of three-monthly Treasurer’s Reports to the City Council for the first quarter of Fiscal Year 2025-2026. Included in the reports are an economic update and detail of the City’s portfolio holdings, monthly transactions, and consolidated information on all cash and investments.
3. Recommended Action
recommendation
Receive and file.
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4. Fiscal Impact
None.
5. Strategic Plan Goals
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.
6. Discussion and Background
On August 12, 2025, the Orange City Council adopted Resolution No. 25-0474, approving the City’s Fiscal Year 2025-26 Statement of Investment Policy (Investment Policy) in accordance with California Government Code Sections 53600 et seq. Per the Investment Policy, three monthly investment reports are to be submitted to the City Council within 45 days following the end of the quarter.
As required by the City’s present Investment Policy, the City Treasurer’s report delineates all investments made by the City Treasurer for the City, its special funds, and the Successor Agency funds, by investment type and by broker.
The monthly Compliance Report certifying compliance of all investments with both the Government Code and the City’s Investment Policy is included.
The Investment Portfolio Statement accurately reflects all investments held by the City and its agents as of the end of the month. The accompanying reports and investment strategies were reviewed by the Investment Committee on October 22, 2025. A summary of Treasurer’s cash and investments is also included.
Summary of Cash and Investments:
The cash and investment report provides a summary of the cash and investment accounts held by the City as quarter ending September 30, 2025. As of September 30, 2025, the book value of the City’s total investment portfolio was $144.4 million, of which $106.5 million, or 73.8%, was managed by Chandler Asset Management (Chandler), the City’s investment manager. The remaining balance $37.9 million of the portfolio was managed by City staff of which $25.8 million was invested in the Local Agency Investment Fund (LAIF) and $12.1 million held in the City’s operating checking account.
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Cash & Investments Balance₁ |
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Chandler Investments: |
$106,498,016 |
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LAIF, City: |
$20,218,598 |
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LAIF, Successor Agency: |
$5,585,932 |
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Wells Fargo Bank: |
$12,090,873 |
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Balance at 3/31/2025 |
$144,393,418 |
(1)Represents the bank balance. Includes operating cash and investments (valued at cost). Does not include deposits with administrator, imprest cash, fiscal agent cash and investments, and deferred compensation.
Pursuant to California Government Code Section 53646(b)(3), the City certifies that the reported cash and investment balances are sufficient to meet anticipated expenditures for the next six months.
In summary, cash and investments as of September 30, 2025, totaled $144.4 million. The City’s balances by fund are presented in the Cash and Investment by Fund attachment.
The City invests a large portion of its portfolio in Federal Agency Securities and U.S. Treasury Notes due to safety and preservation of capital to prevent loss. The City also invests a portion of its funds in LAIF which offers same day liquidity. Additionally, the City invests in high quality corporate notes, asset backed securities, and supranational agency bonds to obtain higher yields and add diversity to the portfolio. As of September 30, 2025, the City investments consisted of the following and are compliant with the Investment Policy:
Significant Cash Transactions:
The City’s total cash decreased by about $23.1 million from the last quarter’s total of $167.5 million. Total cash fluctuates over the course of the fiscal year due to cyclical events. All cash disbursements are within the FY 2024-25 and FY 2025-26 budget and all check registers are presented to the City Council monthly.
Treasurers’ Comments:
Q1 FY26 showed slight upside from a benchmark perspective with 1.27% return vs 1.14% benchmark. We did not have much movement between sectors this quarter as majority of that took place last quarter with a greater shift into the US Treasury.
The investment portfolio as a whole, is in a healthy state and in full compliance with City and state regulations.
In addition to the investment portfolio being in good standing, we also saw dividends on our Wells Fargo side. The interest rates do fluctuate on a monthly basis, ranging from 3.97% to 4.17%, the values are below for reference:
July 2025 = $47,004
August 2025 = $49,296
September 2025 = $29,951
TOTAL = $126,251
7. ATTACHMENTS
• Chandler Monthly Investment Report July 2025
• Chandler Monthly Investment Report August 2025
• Chandler Monthly Investment Report September 2025
• Chandler Investment Report for the Period Ending September 30, 2025