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FC - Item 4A - 2025-26 Qtrly Investment Report to Council - September 2025 - FinalCITY OF ROSEMEAD Finance Department MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Bryan Chua, Assistant City Manager/Finance Director/City Treasurer DATE: October 29, 2025 SUBJECT: QUARTERLY CASH AND INVESTMENT REPORT – SEPTEMBER 2025 OVERVIEW Both the Rosemead Municipal Code (§2.36.040) and the officially adopted Annual Investment Policy mandate the submission of quarterly reports on invested cash to the City Council. According to Section V of the City of Rosemead Investment Policy, which the City Council approved on June 10, 2025, the Assistant City Manager/Finance Director is required to submit quarterly investment reports to the City Council within 31 days after the end of each quarter. The report should consist of a cover page (this memo), a graphical representation comparing the portfolio's composition and maturity distribution, a list of individual investment transactions made during the quarter, and specific details about each security. The City of Rosemead Treasurer's Report for the first quarter of FY 2025-26 (September 30, 2025), which is included here, satisfies the reporting obligation of the Investment Policy and the RMC. According to Section 2.36 of the City's Municipal Code, the Investment Committee is required to convene on a regular basis to assess the City's Investments. To fulfill this stipulation, the Investment Committee convened on October 29, 2025, to receive a report on the current condition of the City's cash and investments. The Committee endorsed the City of Rosemead Treasurer's Report in its original form. ANALYSIS The City holds funds in multiple banks, maintains deposits in the Local Agency Investment Fund (LAIF), and invests in Certificates of Deposit (CDs), U.S. securities/Agencies, Corporate Bonds, and money market accounts. The attached report provides a comprehensive description of all items. The cash stated in this report encompasses all funds within the City, including the Successor Agency and the Housing Development Corporation. The City operates using a 'pooled cash' system, where all funds are combined for banking and investment purposes, while still maintaining separate ownership of the cash for each individual fund. Cash and Investment Report – September 2025 October 29, 2025 Page 2 of 2 The invested portion of the portfolio totaled $82,001,021 for the quarter ending September 2025, reflecting a $6.1 million decrease from the prior quarter. The decline is primarily attributable to the planned drawdown of funds from major revenue collections received earlier in the year, most notably in January and May, to meet operating and capital funding requirements. During the quarter, three Agency Securities matured, while two Certificates of Deposit, two Agency Securities, and one Corporate Bond were redeemed, contributing to normal portfolio turnover. The investments that were made included the purchase of eight Certificates of Deposit and four Agency Securities. The investment activity is an ongoing process of readjusting the portfolio in order to capitalize on the higher investment returns available in the wider market for fixed income securities. The City's investment balance in actively managed fixed income securities increased by 13%, or $3.7 million, from $27.9 million to $31.6 million between September 30, 2024, and September 30, 2025. The average return rate increased from 4.18% to 4.25%, resulting in a 0.07% increase or 7 basis points. The aggregate amount of cash and investments held by the banks on September 30, 2025, is $86,898,551, which is allocated as follows: The following chart provides a summary of the Invested Cash portfolio: Non-invested cash accounts refer to the funds held in bank accounts that are used for paying weekly accounts payable, bi-weekly payroll checks, and receiving City revenue. The balances in these accounts are adjusted to ensure that they are sufficient to cover any outstanding checks and upcoming expenses. ATTACHMENT Cash and Investment Report – Quarter Ending September 2025 Investment Type Beginning Balance Deposits/ Purchases Withdrawls/ Maturities Ending Balance LAIF $ 56,676,046 574,178 7,000,000 $ 50,250,224 Certificates of Deposit 15,476,000 1,971,000 492,000 16,955,000 US Securities 7,860,000 1,765,000 1,625,000 8,000,000 Corporate Bonds 7,725,000 1,050,000 6,675,000 Money Market - Cantella 338,316 120,797 $ 88,075,363 4,310,178 10,167,000 $ 82,001,021 Total Cash and Investments Cash Deposits $ 4,574,903 Cash with Fiscal Agent 322,628 Invested Cash 82,001,021 $ 86,898,551 Non-Invested Cash Accounts Bank Statement Amount Market Value BANK OPERATING ACCOUNTS (1) City - BMO - General Checking Account 3,688,883$ 3,688,883 City - BMO - Payroll Account 671,685 671,685 RHDC - Citizens - Angelus Operating 78,422 78,422 RHDC - Citizens - Angelus Deposit 17,008 17,008 RHDC - Citizens - Garvey Operating 83,242 83,242 RHDC - Citizens - Garvey Deposit 25,662 25,662 SA - BMO - General Checking Account 10,000 10,000 TOTAL OPERATING ACCOUNTS 4,574,903$ 4,574,903 Cash with Fiscal Agent Statement Amount Interest Rate Market Value 2016 Subordinate Tax Allocation Refunding Bonds: 2016 Interest Account - U.S. Bank 322,628 varies 322,628 2016 Reserve Account - U.S. Bank (Non-cash Ins Policy)- -- TOTAL CASH WITH FISCAL AGENT 322,628$ 322,628 Investments Purchase Date Maturity Date Original Cost Par Value Interest Rate Estimated Market Value LOCAL AGENCY INVESTMENT FUND L. A. I. F. (State of California)50,250,224 50,250,224$ 4.24%50,250,224 CERTIFICATES OF DEPOSIT BMO Bank 05/09/2023 05/08/2026 244,004 244,000 4.60%244,976 Greenstate Credit Union 05/17/2023 05/18/2026 249,004 249,000 4.80%250,489 Alabama Credit Union 06/20/2023 06/22/2026 248,004 248,000 5.00%250,108 Austin Telco Federal Credit Union 11/28/2022 11/27/2026 248,006 248,000 5.05%251,623 Celtic Bank 12/19/2022 12/21/2026 249,006 249,000 4.20%250,340 M&T Bank Corporation 01/20/2023 01/20/2027 244,004 244,000 4.00%244,686 Texas Exchange Bank 02/24/2023 02/24/2027 248,004 248,000 4.10%249,257 Global Federal Credit Union 05/12/2023 05/12/2027 249,004 249,000 4.60%252,511 Capital One National Assoc VA 12/11/2024 08/03/2027 242,242 245,000 3.55%244,370 Chartway Federal CU 09/08/2023 09/08/2027 248,007 248,000 5.00%254,220 Connexus Credit Union 09/26/2023 09/27/2027 248,004 248,000 5.05%254,686 Ideal Cr Un Woodbury 12/29/2022 12/29/2027 249,004 249,000 4.50%253,582 Liberty First 02/03/2023 02/03/2028 249,004 249,000 4.35%252,932 Synchrony Bank 03/24/2023 03/24/2028 243,004 243,000 5.00%250,693 American Express National Bank 03/29/2023 03/29/2028 244,004 244,000 4.75%250,324 City National Bank 03/14/2024 03/31/2028 247,204 240,000 5.00%247,097 Pitney Bowes Bank 08/31/2023 04/13/2028 243,460 245,000 4.35%249,106 LIQUID CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2025 (1) These are the actual bank account balances as of the end of the month. September 2025 - Investment Report Page 1 CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2025 Investments (continued)Purchase Date Maturity Date Original Cost Par Value Interest Rate Estimated Market Value Morgan Stanley Bank NA 04/20/2023 04/20/2028 244,004 244,000 4.65%245,230 HSBC Bank USA 08/31/2023 04/21/2028 239,616 249,000 3.60%248,696 Univest National Bank 05/12/2023 05/12/2028 249,004 249,000 4.35%253,343 CIBC Bank USA 05/16/2023 05/16/2028 244,004 244,000 4.35%248,121 Numerica Credit Union 05/30/2023 05/30/2028 200,004 200,000 4.70%205,346 Thread Bank 06/16/2023 06/16/2028 249,004 249,000 4.40%258,694 Jefferson Credit Union 06/20/2023 06/20/2028 248,004 248,000 5.00%248,568 Bank of the Sierra 08/31/2023 08/18/2028 244,004 244,000 4.50%249,512 Freedom Northwest CU 09/19/2023 09/19/2028 Redeemed Redeemed Redeem Redeemed Empower Credit Union 09/29/2023 09/29/2028 248,004 248,000 5.10%258,195 Dort Financial CU 10/10/2023 10/10/2028 246,004 246,000 5.00%255,454 Customers Bank 10/18/2024 10/18/2028 220,004 220,000 3.85%221,153 Utah First Federal CU 10/30/2023 10/30/2028 248,004 248,000 5.10%258,431 BMW Bank NA 11/08/2024 11/08/2028 245,004 245,000 4.00%247,303 San Francisco FCU 11/27/2024 11/27/2028 249,004 249,000 4.25%253,330 MS Private Bank 02/16/2024 02/16/2029 Redeemed Redeemed Redeem Redeemed UBS Bank USA 02/28/2024 02/28/2029 249,004 249,000 4.20%253,051 Spur Security Bank 03/27/2024 03/12/2029 244,004 244,000 4.20%247,928 Morgantown B & T 03/22/2024 03/22/2029 249,004 249,000 4.15%252,670 First Foundation Bank 05/10/2024 05/10/2029 244,004 244,000 4.60%251,139 Toyota Financial Savings Bank 05/14/2024 05/14/2029 245,614 244,000 4.60%251,149 Cross River Bank 05/15/2024 05/15/2029 244,540 244,000 4.50%250,334 Farmers & Merchants Bank 05/21/2024 05/21/2029 248,004 248,000 4.50%254,629 Merchants Commercial Bank 05/21/2024 05/21/2029 248,004 248,000 4.50%254,629 Covantage CR UN Antigo 05/27/2025 05/29/2029 186,004 186,000 4.05%189,147 Beal Bank 06/05/2024 05/30/2029 240,004 240,000 4.70%247,970 Consumers FCU 08/27/2024 08/09/2029 248,004 248,000 3.80%248,575 Enterprise Bank 08/28/2024 08/28/2029 249,004 249,000 3.80%249,533 Merrick Bank 08/29/2024 08/29/2029 245,004 245,000 3.75%245,076 Altaone FCU 09/13/2024 09/13/2029 248,004 248,000 3.85%248,950 Bank of Hapoalim NY 09/18/2024 09/18/2029 245,004 245,000 3.80%245,446 Amerant Bank NA 09/20/2024 09/19/2029 247,209 245,000 3.75%244,280 United Community Bank 09/20/2024 09/20/2029 240,004 240,000 3.60%238,694 State Bank of IN 09/25/2024 09/25/2029 245,004 245,000 3.75%244,983 First Premier Bank 09/26/2024 09/26/2029 240,004 240,000 3.65%239,100 BNY Mellon Bank 09/27/2024 09/27/2029 245,004 245,000 3.45%242,278 First Business Bank WI 09/30/2024 09/28/2029 245,004 245,000 3.45%242,381 Sunwest Bank 09/28/2024 09/28/2029 245,004 245,000 3.45%242,298 Parkside Financial B&T 10/08/2024 10/09/2029 249,004 249,000 3.45%246,214 Malaga Bank FSB 10/16/2024 10/16/2029 249,004 249,000 3.50%246,667 EagleBank 10/25/2024 10/25/2029 220,004 220,000 3.75%220,000 September 2025 - Investment Report Page 2 CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2025 Investments (continued)Purchase Date Maturity Date Original Cost Par Value Interest Rate Estimated Market Value Third Federal S&L Bank 12/18/2024 12/18/2029 245,004 245,000 4.00%247,276 Sallie Mae Bank 12/19/2024 12/19/2029 134,004 134,000 4.10%135,763 First Bank of the Lake 02/18/2025 02/18/2030 249,004 249,000 4.20%253,522 Medallion BK Utah 06/17/2025 06/17/2030 249,004 249,000 4.15%253,320 Nicolet Natl Bk Green Bay WI 06/17/2025 06/17/2030 240,004 240,000 4.00%242,590 Poppy BK Santa Rosa Calif 06/17/2025 06/17/2030 240,004 240,000 4.00%242,482 Security First Bk Lincoln Neb 07/30/2025 07/30/2030 245,004 245,000 3.90%246,497 American Natl Bk Baxter Minn 07/31/2025 07/31/2030 249,004 249,000 3.85%250,098 Goldman Sachs Bk USA 08/05/2025 08/05/2030 240,004 240,000 3.85%240,946 Morgan Stanley Private Bk Natl 09/03/2025 09/03/2030 245,004 245,000 3.85%246,061 Optum Bk Draper Utah 09/15/2025 09/16/2030 245,004 245,000 3.70%244,505 First Natl Bk Amer East Lans 09/19/2025 09/16/2030 249,004 249,000 3.60%247,309 Institution For SGVS In Newbur 09/25/2025 09/25/2030 249,004 249,000 3.60%247,304 Access Bk Omaha Neb 09/30/2025 09/30/2030 249,004 249,000 3.50%246,164 Sub-Total 16,953,113 16,955,000$ 17,143,334 U.S. TREASURY/AGENCY SECURITIES Federal Home Loan Bank 04/19/2023 07/18/2025 Matured Matured Matured Matured Federal Home Loan Mtg Corp Mtn 08/16/2022 08/25/2025 Matured Matured Matured Matured Federal Natl Mtg Assn Note 02/10/2023 08/28/2025 Matured Matured Matured Matured Federal Home Loan Bank 11/16/2022 04/29/2026 480,006 500,000 3.00%497,530 Federal Home Ln Mtg Corp Note 11/30/2022 08/25/2027 Redeemed Redeemed Redeemed Redeemed Federal Home Loan Bank 11/15/2022 09/14/2027 491,361 500,000 4.00%498,655 Federal Natl Mtg Assn Note 10/30/2024 04/17/2028 525,204 500,000 5.63%523,130 Federal Home Ln Mtg Corp Note 10/18/2023 07/18/2028 Redeemed Redeemed 5.00%Redeemed Federal Agriculture Mortgage Corp 01/24/2024 11/28/2028 506,354 500,000 5.23%499,915 Federal Agriculture Mortgage Corp 02/08/2024 01/22/2029 499,214 500,000 4.04%504,755 Federal Home Loan Bank 04/05/2024 03/22/2029 563,028 560,000 4.75%566,905 Federal Home Loan Bank 05/31/2024 05/22/2029 160,373 160,000 5.13%160,845 Federal Agriculture Mortgage Corp 10/29/2024 06/12/2029 526,295 525,000 4.11%531,132 Federal, Home Loan BA SER El-9029 01/07/2025 12/10/2029 498,879 500,000 4.38%504,375 Federal, Home Loan BA SER RL-2029 01/14/2025 12/14/2029 485,004 485,000 4.50%498,032 Federal Farm Cr Bks Bond 03/24/2025 01/24/2030 450,004 450,000 4.00%452,732 Federal Home Loan Banks Bond 06/03/2025 03/08/2030 509,774 500,000 4.38%512,825 Federal Farm Cr Bks Bond 03/25/2025 03/18/2030 554,626 555,000 4.00%558,580 Federal Agriculture Mortgage Corp 07/08/2025 07/29/2030 344,614 345,000 3.85%346,991 Federal Agriculture Mortgage Corp 07/31/2025 07/29/2030 419,500 420,000 3.88%421,840 Tennesee Valley Auth Fed BE Bond 09/03/2025 08/01/2030 503,889 500,000 3.88%501,175 Federal Agriculture Mortgage Corp 09/03/2025 09/03/2030 502,264 500,000 3.80%495,650 Sub-Total 8,020,383 8,000,000 8,075,065 September 2025 - Investment Report Page 3 CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2025 Investments (continued)Purchase Date Maturity Date Original Cost Par Value Interest Rate Estimated Market Value CORPORATE BONDS Citigroup Global Mkts Hldgs In Ser N 07/31/2020 07/31/2025 Matured Matured Matured Matured Capital Impact Partners Invt Mtn 09/24/2020 09/15/2025 Redeemed Redeemed Redeemed Redeemed Morgan Stanley 11/23/2022 01/27/2026 489,376 500,000 3.88%499,155 Berkshire Hathaway 12/23/2022 03/15/2026 486,454 500,000 3.13%498,050 JP Morgan Chase 01/27/2023 04/01/2026 487,449 500,000 3.30%498,145 US Bancorp 11/14/2022 04/27/2026 470,206 500,000 3.10%497,275 Bank of NY 11/14/2022 01/26/2027 446,456 500,000 2.05%488,235 Amazon Com Inc 12/22/2022 08/22/2027 477,929 500,000 3.15%494,555 Toyota Motor Credit Corporation 11/22/2022 09/20/2027 498,901 500,000 4.55%505,770 Apple Inc 11/30/2022 11/13/2027 477,731 500,000 3.00%493,415 Inter-American Development Bank 02/24/2023 02/24/2028 580,007 580,000 4.38%580,427 California St Taxable Var Purp Go 11/07/2024 08/01/2029 751,276 745,000 4.50%764,459 Prudential Financial A3 08/22/2024 08/15/2029 450,004 450,000 4.25%455,391 California St Taxable Var Purp Go 10/01/2024 10/01/2029 232,699 250,000 2.50%237,603 Inter-American Development Bank 10/30/2024 10/16/2029 495,004 500,000 3.88%502,150 Capital Impact Partners Invt Mtn 03/13/2025 03/15/2030 150,004 150,000 5.20%151,107 Sub-Total 6,493,491 6,675,000$ 6,665,737 CAMBRIDGE CASH HELD FOR INVESTMENTS 120,797 120,797$ Varies 120,797 TOTAL INVESTMENTS 81,838,007 82,001,021$ 82,255,157 Market values are provided by statements from issuers Cash and Investments by Type Par Value % of Invested Cash BANK ACCOUNTS - non-invested & FISCAL AGENT 4,897,531$ LAIF 50,250,224$ 61%Not restricted ($75,000,000 max) CERTIFICATES OF DEPOSIT 16,955,000 21%No more than 30% of Portfolio U.S. TREASURY/AGENCY SECURITIES 8,000,000 10%No more than 70% of Portfolio CORPORATE BONDS 6,675,000 8%No more than 25% of Portfolio CANTELLA & CO., INC.120,797 0% Total Investments 82,001,021$ 100% Total - Cash and Investments 86,898,551$ Cash and Investments by Agency Accts Par Value % of Total Cash CITY 86,361,589$ 99% Successor Agency 332,628 0% Housing Development Corporation*204,334 0% Total Investments 86,898,551$ 100% *unavailable at the time of reporting Policy Restrictions by Investment Type September 2025 - Investment Report Page 4 CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2025 Pie Charts Reflecting Data Comparative Data 4.24% 4.27% 4.34% 4.48% 4.56% 4.36% 4.12% 3.81% Policy Compliance Bryan Chua, Assistant City Manager/Finance Director/City Treasurer Dec 2023 69,320,852 This is to certify that the above report accurately reflects all City investments and is in conformity with the City's 2025-26 Investment Policy as approved by the City Council on June 10,2025.A copy of the Policy may be found on the City's webpage at www.cityofrosemead.org or at the City Clerks Office.The cash and investments shown,along with anticipated revenues,provide sufficient cash flow liquidity to meet the next six month's estimated expenditures pending any unforeseen catastrophic events. Sep 2024 77,080,471 Jun 2024 82,645,755 Mar 2024 72,912,400 Jun 2025 88,075,363 Mar 2025 80,273,287 Dec 2024 74,138,079 Quarter End Invested Cash (excl non-invested) Average Quarterly LAIF Effective Yields Sep 2025 82,001,021 LAIF 61%CERTIFICATES OF DEPOSIT 21% U.S. TREASURY/AGENCY SECURITIES… CORPORATE BONDS 8% CAMBRIDGE 0% LAIF 80% 1 Yr 5% 2 Yr 7% 3 Yr 8% Investments by Category Investments by Maturity September 2025 - Investment Report Page 5