title
City Treasurer’s Informational Report of Investments for the Quarter Ending September 30, 2026
memo
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
Prepared By: Chris Rhoades, Financial Analyst
EXECUTIVE SUMMARY:
summary
The City Council will receive an informational report of the City’s investments through the quarter ending September 30, 2026, including a monthly transaction ledger. The City’s investment portfolio for this period totaled $513,664,192 (market value) with an average market yield of 4.62 percent. As required by the City’s Investment Policy, the City Treasurer (Finance Director) affirms that the City is able to meet its expenditure requirements for the next six months.
recommendation header
STAFF RECOMMENDATION:
end
recommendation text
Receive the report.
body
FINANCIAL IMPACT:
There is no financial impact resulting from this report. Investments are made in accordance with the City’s Investment Policy and state law. Interest earned is apportioned between funds (e.g., General Fund, Gas Tax Fund, etc.) based upon their proportionate share of the total cash balance. The quarterly cash balance can vary from quarter to quarter based on the financial needs of the City, including the timing of revenues and expenditures.
DESCRIPTION:
The total investment portfolio (market value) consists of $319,335,684 managed by Chandler Asset Management, and $194,328,508 invested by the City in local government pools, the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP). The average market yields of the Chandler portfolio and the local pools were 5.07 percent and 3.88 percent, respectively.
The total investment portfolio balance fluctuates throughout the year due to normal cash flow needs and includes both discretionary and restricted funds.
Economic Update Highlights
The following are some highlights from the Economic Update included in the Investment Report prepared by Chandler (Attachment 1).
Economic conditions during the period continued to be influenced by energy prices, inflation, and geopolitical uncertainty. The ongoing conflict involving the United States, Israel, and Iran continued to disrupt global energy markets, contributing to higher gasoline prices and persistent inflationary pressures. Despite these challenges, consumer spending and manufacturing activity have remained relatively stable.
The U.S. economy continued to demonstrate resilience, with second-quarter economic growth revised upward. However, the labor market has shown signs of slowing, with fewer jobs added in recent months and unemployment increasing slightly. Inflation has also remained above the Federal Reserve’s 2.00 percent target, driven in part by higher energy costs.
In response to continued inflationary pressures, the Federal Reserve increased its benchmark interest rate by 0.25 percentage points in September. The City’s investment advisor, Chandler Asset Management, anticipates that the Federal Reserve will remain focused on controlling inflation, with at least one additional interest rate increase possible before the end of the year.
City of Dublin Portfolio
The City’s aggregate portfolio has maintained a healthy balance of investment types, with minimal changes from the prior quarter. Attachment 3 provides additional information on the investment types shown in Tables 1 and 2.
The market value of the City’s portfolio decreased by $22.66 million compared to the quarter ending June 30, 2026, primarily due to the timing of several significant expenditures during the quarter. These expenditures included multiple payments for police and fire services, property tax pass-through payments for garbage services, liability insurance premiums, the payment toward the City’s CalPERS unfunded accrued liability, and expenditures associated with Capital Improvement Program projects. The City’s portfolio increased by $22.12 million from the same quarter the prior year (Table 1). Overall average market yields increased from 4.10 percent to 4.62 percent (Table 2). For detailed monthly transactions, refer to Attachment 2.
Table 1. Portfolio Values and Yield to Maturity (YTM)
Table 2. Quarterly Holdings (Market Value) by Type and YTM, Six Quarters
Funds Managed by the City
The City participates in two local agency investment pools managed by government finance professionals and treasurers: the LAIF and the CAMP. Table 3 shows the yields of the pools and of the assets managed by Chandler over the most recent eight quarters.
Table 3. Quarterly Portfolio Yields, Recent Eight Quarters
|
Market Yield |
LAIF |
CAMP |
Chandler |
|
12/31/24 |
4.43% |
4.65% |
4.49% |
|
3/31/25 |
4.31% |
4.47% |
4.16% |
|
6/30/25 |
4.27% |
4.43% |
3.97% |
|
9/30/25 |
4.20% |
4.27% |
3.84% |
|
12/31/25 |
3.98% |
3.90% |
3.76% |
|
3/31/26 |
3.82% |
3.80% |
4.04% |
|
6/30/26 |
3.82% |
3.77% |
4.31% |
|
9/30/26 |
3.94% |
3.87% |
5.07% |
Finance and Investment Committee (FIC) Review
On November 3, 2026, the FIC reviewed the quarterly report consistent with its role in providing policy guidance on financial matters, including the investing of City funds.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
1) City of Dublin Investment Report for Period Ending September 30, 2026
2) Transaction Ledger - July through September 2026
3) Glossary of Investment Categories