AGENDA TITLE:
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Accept the Quarterly Investment Report for the Quarter Ending September 30, 2025 (IS - FIN)
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MEETING DATE:
February 18, 2026
PREPARED BY:
Chia Lor, Accounting Manager
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RECOMMENDED ACTION:
Accept the Quarterly Investment Report for the quarter ending September 30, 2025.
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BACKGROUND INFORMATION:
Government Code Section 53646 establishes recommended investment reporting requirements for California public agencies. The City Council's adopted Investment Policy aligns with the requirements of Section 53646. Attachment 1 includes the Investment Report for the quarter ending September 30, 2025. This report follows the State's recommended reporting requirement and complies 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 September 30, 2025, 59.05% of the portfolio is held 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 59.05% of investments held in cash or equivalents can be quickly converted to cash if needed.
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. For the quarter ending September 30, 2025, the portfolio earned $1,813,727 in interest and dividends.
Note: this figure excludes unrealized gains and losses resulting from changes in market value.
To minimize market value erosion, the City's st...
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