That the City Council receive and file the Cash and Investments Report for the month of July 2026, in accordance with California Government Code Section 53646.
The City prepares a monthly Cash and Investments Report to provide the City Council with information regarding the City's cash balances, investments, restricted funds, and investment activity. This report presents the City’s cash and investment position for July 2026, with comparative figures for June 2026.
The attached report presents the City’s unrestricted and restricted cash and investments, including funds held in the California Local Agency Investment Fund (LAIF) and the City’s investment custody account maintained with U.S. Bank.
As of July 31, 2026, the City’s total cash and investments amounted to $60,180,090.04. This amount does not include the PERMA trust balances because PERMA has not yet released its July 2026 quarterly trust schedules. Staff will update these balances in subsequent reports as the schedules become available.
The principal components of the City's unrestricted cash and investments on July 31, 2026, were:
Category June 30, 2026 July 31, 2026
Cash and Investments – Unrestricted $53,783,484.83 $53,473,894.26
Cash and Investments - Restricted $ 7,876,025.61* $ 6,706,195.78
Total Cash and Investments $61,659,510.44 $60,180,090.44
*The Cash and Investments - Restricted balance reflected on the August 25, 2026, agenda report did not include the two PERMA Trust Accounts for Workers' Compensation and General Liability because they were not available when that report was prepared. Those reports are now available, so the balances have been updated.
The City's unrestricted cash and investments decreased by $ 309,590.57 during the reporting period. Significant activity included:
• $ 82,198.29 in interest earned from LAIF.
• A $ 63,979.00 net increase in the U.S. Bank account managed by Chandler Asset Management.
• A net disbursement of $ 459,249.48 in the Wells Fargo General Account.
As of July 31, 2026, the City’s unrestricted investment holdings consisted of approximately $8.502 million in LAIF and $22.74 million (par value) in the U.S. Bank custody account managed by Chandler Asset Management. LAIF represented approximately 27% of the City’s total investment portfolio.
The Chandler Asset Management account had a total market value of $22,628,271.67, comprised of $22,558,140.64 in market value and $70,131.03 in accrued interest. The portfolio maintained an average credit rating of AAA, a modified duration of 0.30, and a market yield to maturity of 3.84%. The average credit quality is a weighted average calculation of the highest of S&P, Moody’s, and Fitch.
For the period reported, the City’s portfolio achieved a 1 year total rate of return of 3.96%, exceeding the benchmark return of 3.91% for the ICE Bank of America 0–1 Year U.S. Treasury Notes & Bonds Index. The portfolio’s 3 year annualized return was 4.86%, compared to the benchmark’s 4.61%.
Chandler Asset Management’s July 31, 2026 compliance review confirmed full adherence to the City’s investment policy requirements. For example, U.S. Treasury securities accounted for 82.51% of market value (policy maximum: 100%), Federal Agencies represented 13.18% (policy maximum: 100%), and all other investment categories were also reported as compliant.
LAIF / PMIA PERFORMANCE
The City's LAIF balance was $8,502,643.81 as of July 31, 2026. The accompanying State of California PMIA/LAIF performance information reports a June 2026 PMIA effective yield of 3.840% compared to 3.816% on June 30, 2026.
The State's July 31, 2026 PMIA market valuation reported a total amortized cost of approximately $180.57 billion, a fair value of approximately $180.18 billion, and a fair value including accrued interest of approximately $181.07 billion. The LAIF fair-value factor was reported as 0.997853260. This equates to the City’s LAIF participation of $8,484,390.84.
INVESTMENT POLICY COMPLIANCE
Based on the July 31, 2026 Chandler Asset Management report, the City's investment portfolio remained within the applicable investment-policy parameters. The portfolio's average credit quality was AAA, and the report confirms compliance report with each applicable investment categories (Attachment 2).
The attached City Monthly Cash and Investment Report also includes the City's certification that investment activity conforms with the investment policy adopted by the City Council and California Government Code § 53646 and that adequate pooled cash is available to meet the City's anticipated disbursement requirements for the upcoming six months.
There is no fiscal impact associated with receiving this report