AGENDA TITLE:
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Accept the Quarterly Investment Report For the Last Three Quarters of Fiscal Year 2024-25 (IS-FIN)
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MEETING DATE:
December 17, 2025
PREPARED BY:
Chia Lor, Accounting Manager
recommendation
RECOMMENDED ACTION:
Accept the quarterly investment report.
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BACKGROUND INFORMATION:
Government Code Section 53646 prescribes suggested investment reporting requirements for California public agencies. The City Council adopted Investment Policy aligns with the requirements of Section 53646. Since the last acceptance of the Investment Report on November 20, 2024 for the quarter ended September 30, 2024 of FY 2025, no additional Investment Report has been presented to Council for FY 2025.
The investment report has been condensed into a new format that groups each investment instruments into categories, in accordance with the City’s Investment Policy. This format is intended to provide a high-level overview. It was presented to the Finance Committee and formally approved at the November 19, 2025 committee meeting. To maintain transparency and detail, the Committee will continue to receive and review the full comprehensive version of the report.
The attached Investment Report includes the following quarters:
• Quarter ended December 31, 2024 (Q2 of FY 2025) - Attachment 1
• Quarter ended March 31, 2025 (Q3 of FY 2025) - Attachment 2
• Quarter ended June 30, 2025 (Q4 of FY 2025) - Attachment 3
These reports follow the State’s recommended reporting requirement and comply with the City of Lodi’s Investment Policy and Internal Control Guidelines.
The City’s current investments meet the primary objectives outlined in the City of Lodi’s Investment Policy as follows. In priority order, those objectives and brief analysis are:
1. Safety. As of June 30, 2025, 57.47% of the portfolio is invested in cash or cash equivalents, which carry minimal risk to principal. The remaining investments are purchased meeting minimum credit quality requirements outlined in the policy to provide for high probability of capital preservation in the portfolio.
2. Liquidity. The portfolio allows for sufficient liquidity to meet projected cash flow needs to comply with City reserve policies, and effectively manage City operations. The 57.47% of investments held in cash or equivalents can be quickly converted to cash if necessary.
3. Yield. The City will attempt to obtain the most reasonable yield possible when selecting an investment provided that the safety and liquidity objectives are met. From October 1, 2024 through June 30, 2025, the City earned a cumulative $6,152,947 in interest on the portfolio across the following quarters:
o Quarter ended December 31, 2024: $1,777,663
o Quarter ended March 31, 2025: $ 2,132,525
o Quarter ended June 30, 2025: $2,242,759
Note this does not include unrealized gains and losses from changes in investment market value.
To minimize market value erosion, the City’s strategy is to purchase investments with the intent to hold them until maturity. This approach promotes long-term stability and avoids reactive decision-making based on short-term market fluctuations.
The City Council has authorized the Treasurer to make investments on behalf of the City. Investments are made using the Prudent Investment Standard, in compliance with State law and the City of Lodi’s Investment Policy.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
As per attached reports.