CC SR 20260602 C - Treasury Report - City March 2026
CITY COUNCIL MEETING DATE: 06/02/2026
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consider the March 2026 Cash Balances/Monthly Treasurer’s Report.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file the March 2026 Cash Balances/Monthly Treasurer’s Report.
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Jane Lin, Senior Accountant
REVIEWED BY: Vina Ramos, Director of Finance VR
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Monthly Treasurer’s Report for March 2026 (page A-1)
BACKGROUND:
This report summarizes the cash balance of all funds and investments for the month of
March 2026 as part of Fiscal Year (FY) 2025-26. A separate report is prepared monthly
for the Joint Powers Improvement Authority (Improvement Authority) and presented under
separate cover to the Authority Commission.
DISCUSSION:
Summary of Cash and Investments
As of March 31, 2026, the overall cash balance of the City is $84 million (Chart 1). This
amount includes:
• $38.9 million (46%) in the Local Agency Investment Fund (LAIF).
• $4.8 million (7%) with BMO, which includes $3.6 million in checking for
operational needs and $1.2 million in a Money Market account. The Money
Market account was opened in April 2024 to maximize interest earnings
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instead of leaving the idle funds in the checking account. As shown in Chart
3, BMO’s money market yield is 3.1%.
• $4.6 million (5%) is with Malaga Bank earning 3.9%.
• $35.9 million investments under the City’s brokerage firm Stifel:
o $12.7 million (15%) Certificates of Deposit (CD),
o $11 million (13%) Treasury Bills,
o $12 million (14%) Agency Bonds,
o $250,836 (less than 1%) money market account. The City holds a
money market account with Stifel for transactions related to buying
and selling investments as applicable. The securities are held by
Bank of America and are FDIC-insured. The additional balance
details for each investment instrument can be found in the
attachments on page A-1.
Chart 1: Cash and Investments $84M (in millions)
Interest Earnings
The interest earnings are recorded on a quarterly basis. At the end of December, the
second quarter interest earnings are at $610,522. Compared to the same quarter as last
year, the interest earnings were $784,014. This is a -$173,492 or -22% decrease, mainly
due to the lower overall balance invested and the slightly lower rates. The third quarter
interest earnings will be included in the April Treasury Report.
$1.2
$0.3
$4.6
$3.7
$11.0
$12.0
$12.7
$38.9
1.4%
0.3%
5.4%
4.3%
13.0%
14.2%
15.1%
46.1%
$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0
BMO - Money Market
Stifel - Money Market
Malaga Bank - CD
BMO - Checking
Stifel - Treasury
Stifel - Agency Bonds
Stifel - CD
State of California - LAIF
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Chart 2: FY2025-26 First Two Quarters - Interest Earnings $1,479,928
Chart 3: Investments - Average Yield
$37,010
$89,757
$783,723
$569,438
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
BMO - Money
Market
Malaga Bank - CD Stifel - CD,
Treasury, Agency
Bonds
State of California -
LAIF
3.1%
3.9%
3.4%
3.7%
3.8%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
BMO - Money Market Malaga Bank - CD Stifel - CD Stifel - Treasury,
Agency Bonds
State of California -
LAIF
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Summary of Cash Balance by Fund
As shown in Chart 4 below, of the $84 million, the City’s General Fund has $32.2 million
(38%), and the Capital Infrastructure Program (CIP) Fund has $20.9 million (25%). The
remaining cash balance of $30.9 million (37%) is a combination of Special Revenue
Funds and Permanent Funds.
Chart 4: Summary of Cash Balance by Fund $84M (in millions)
Compared to a year ago (March 2025), the City’s cash balance increased approximately
at $5.3 million, primarily due to less expenditures for emergency response and
stabilization efforts related to the Greater Portuguese Bend Landslide. When comparing
the balance to February 2026, the City’s cash balance decreased by $0.3 million, primarily
due to timing of outstanding billing for general operational services for City-approved
projects.
The major disbursements for the month of March included Aleshire and Wynder for legal
services, EDCO for the annual street sweeping project, Geologic Associates for the
engineering design at Portuguese Bend Landslide area, Hardy and Harper for the
roadway maintenance, Herc Rentals for emergency landslide generator rentals, J&H
Drilling for the emergency landslide stabilization project, LSA Associates for emergency
landslide environmental monitoring, and Pump System for deep dewater well
maintenance. All expenditures were disbursed in accordance with FY 2025-26 budgets
and the City Council’s approved expenditures related to the landslide .
$30.8
37%
$22.1
26%
$31.4
37%
GENERAL FUND
CIP FUND
OTHER RESTRICTED
FUNDS
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ADDITIONAL INFORMATION:
2024 Investment Policy Update
The increase in the City’s overall interest earnings is mainly due to the higher market
rates available this year compared to the prior years. Additionally, the increase is
attributed to changes in the City’s investment policy. In 2024, the City Council adopted
significant changes to the Investment Policy based on recommendations from Staff and
the Finance Advisory Committee (FAC). One of the most impactful changes was
increasing the allowable investment of available cash (excluding operating needs) from
50% to 70%. This revised policy allowed for low-risk, short-term investments such as U.S.
Treasuries and Agency bonds, instead of investing funds in LAIF only. Staff also added
a money market/sweep account with the City’s existing financial institution, BMO, to
maximize interest earnings, ranging from approximately 3.8% to 4.5% (depending on
current market rates), instead of leaving the amount in the BMO checking account for 0%
interest earning.
These adjustments have already led to a substantial increase in interest earnings. Over
the past two fiscal years, the City has earned approximately $2.3 million more in interest
compared to FY 2022–23 largely due to the ability to invest more in higher-yielding
instruments such as U.S. Treasuries and Agency bonds, rather than keeping idle funds
in the City’s checking account or LAIF.
It should be noted, however, that interest earnings are starting to decline in FY 2025–26
as the City is estimated to have a lower cash balance compared to the last two fiscal
years, primarily due to increased expenditures related to the landslide emergency
response.
CONCLUSION:
Staff recommend that the City Council receive and file the Treasurer’s Report ending
March 2026.
ALTERNATIVES:
In addition to staff’s recommendations, the following alternative actions are available for
the City Council’s consideration:
1. Do not receive the March 2026 Cash Balances/Monthly Treasurer’s Report and
request additional information at a future meeting.
2. Take other action, as deemed appropriate.
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