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AGENDA ITEM NO. 10.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 05/12/2026 Originating Department: Finance |
City Manager:
Department Head:
SUBJECT:
City of Hawthorne’s Investment Report for the quarter ended March 31, 2026.
RECOMMENDED MOTION:
Staff recommends that the City Council receive, approve and file the City of Hawthorne’s Investment Report for the quarter ended March 31, 2026 of FY 25-26.
DISCUSSION:
The investment Report for the quarter ended March 31, 2026, is attached. This report outlines the cash and investments held by the reporting entity, as well as the rate of return on these investments.
Because of the seasonal nature of the city’s revenues (thus making short-term availability and liquidity of funds extremely important), the city has for many years invested its funds with the State of CA-administered Local Agency Investment Fund (LAIF). Multi Bank Securities (MBS) are invested in CD’s using a ladder strategy. The City Treasurer shall continue this strategy, reinvesting funds that come due into new 3-5 year CD’s and US Treasury Securities. Cash held by the fiscal agents is for future debt service on bonds, and these funds are invested pursuant to investment agreements entered into when the bonds were originally issued.
Investment report summary March 31, 2026
• Funds held at LAIF $55 million with a rate of return @ 3.98%
• Funds held at BMO $28.4 million with rate of return @ 2.35%
• Funds held at MBS totaled $45.7 million with yields of 0.86% - 5.05%
• Funds held by the fiscal agents totaled $30.5 million
• Funds held in Trust totaled $15.9 million
Investment report summary December 31, 2025
• Funds held at LAIF $75 million with a rate of return @ 4.20%
• Funds held at BMO $18.4 million with rate of return @ 2.35%
• Funds held at MBS totaled $25.7 million with yields of 0.62% - 4.86%
• Funds held by the fiscal agents totaled $30.5 million
• Funds held in Trust totaled $11.5 million
Investment report summary September 30, 2025
• Funds held at LAIF $75 million with a rate of return @ 4.34%
• Funds held at BMO $26.6 million with rate of return @ 2.79%
• Funds held at MBS totaled $25.8 million with yields of 0.63% - 4.84%
• Funds held by the fiscal agents totaled $34.1 million
• Funds held in Trust totaled $11.2 million
Investment report summary June 30, 2025
• Funds held at LAIF $75 million with a rate of return @ 4.40%
• Funds held at BMO $45.6 million with rate of return @ 3.02%
• Funds held at MBS totaled $25.4 million with yields of 0.63% - 4.99%
• Funds held by the fiscal agents totaled $33.1 million
• Funds held in Trust totaled $10.8 million
Investment report summary March 31, 2025
• Funds held at LAIF $75 million with a rate of return @ 4.48%
• Funds held at BMO $37.3 million with rate of return @ 3.02%
• Funds held at MBS totaled $25.3 million with yields of 0.64% - 4.99%
• Funds held by the fiscal agents totaled $32 million
• Funds held in Trust totaled $10.1 million
Investment report summary December 31, 2024
• Funds held at LAIF $75 million with a rate of return @ 4.62%
• Funds held at BMO $42.6 million with rate of return @ 3.02%
• Funds held at MBS totaled $15.2 million with yields of 0.64% - 5.02%
• Funds held by the fiscal agents totaled $32.1 million
• Funds held in Trust totaled $5.4 million
Investment report summary September 30, 2024
• Funds held at LAIF $75 million with a rate of return @ 4.71%
• Funds held at BMO $42.6 million with rate of return @ 3.21%
• Funds held at MBS totaled $15.2 million with yields of 0.65% - 4.79%
• Funds held by the fiscal agents totaled $5.5 million
• Funds held in Trust totaled $5.5 million
Investment report summary June 30, 2024
• Funds held at LAIF $74.2 million with a rate of return @ 4.55%
• Funds held at BMO $61.1 million with rate of return @ 3.67%
• Funds held at MBS totaled $14.9 million with yields of 0.66% - 4.95%
• Funds held by the fiscal agents totaled $4.9 million
• Funds held in Trust totaled $5.2 million
Investment report summary March 31, 2024
• Funds held at LAIF $73.4 million with a rate of return @ 4.30%
• Funds held at BOW $55.6 million with rate of return @ .14% - 3.67%
• Funds held at MBS totaled $14.9 million with yields of 0.67% - 4.88%
• Funds held by the fiscal agents totaled $3.7 million
• Funds held in Trust totaled $4.1 million
Investment report summary December 31, 2023
• Funds held at LAIF $72.7 million with a rate of return @ 4.00%
• Funds held at BOW $46.6 million with rate of return @ .14% - 3.67%
• Funds held at MBS totaled $9.3 million with yields of 0.65% - 4.92%
• Funds held by the fiscal agents totaled $3.2 million
• Funds held in Trust totaled $3.9 million
Investment report summary September 30, 2023
• Funds held at LAIF $72 million with a rate of return @ 3.59%
• Funds held at BOW $47.5 million with rate of return @ .14% - 3.67%
• Funds held at MBS totaled $9.2 million with yields of 0.60% - 5.05%
• Funds held by the fiscal agents totaled $4.7 million
• Funds held in Trust totaled $3.6 million
Investment report summary June 30, 2023
• Funds held at LAIF $71.5 million with a rate of return @ 3.15%
• Funds held at BOW $59.6 million with rate of return @ 3.56% - 5.02%
• Funds held at MBS totaled $9.1 million with yields of 0.30% - 5.05%
• Funds held by the fiscal agents totaled $3.7 million
Investment report summary March 31, 2023
• Funds held at LAIF $71 million with a rate of return @ 2.74%
• Funds held at BOW $50.1 million with rate of return @ 2.62% - 4.57%
• Funds held at MBS totaled $9.1 million with yields of 0.30% - 4.96%
• Funds held by the fiscal agents totaled $3 million
Investment report summary December 31, 2022
• Funds held at LAIF $70.6 million with a rate of return @ 2.07%
• Funds held at BOW $28.5 million with rate of return @ 2.35% -3.90%
• Funds held at MBS totaled $9.1 million with yields of 0.30% - 4.73%
• Funds held by the fiscal agents totaled $2.3 million
Because of the seasonal nature of the city’s revenues (thus making short-term availability and liquidity of funds extremely important), the city has for many years invested its funds with the State of CA-administered Local Agency Investment Fund (LAIF). Multi Bank Securities (MBS) are invested in CD’s using a ladder strategy. The City Treasurer shall continue this strategy, reinvesting funds that come due into new 3-5 year CD’s and US Treasury Securities. Cash held by the fiscal agents is for future debt service on bonds, and these funds are invested pursuant to investment agreements entered into when the bonds were originally issued.
Investment report summary March 31, 2026
• Funds held at LAIF $55 million with a rate of return @ 3.98%
• Funds held at BMO $28.4 million with rate of return @ 2.35%
• Funds held at MBS totaled $45.7 million with yields of 0.86% - 5.05%
• Funds held by the fiscal agents totaled $30.5 million
• Funds held in Trust totaled $15.9 million
Investment report summary December 31, 2025
• Funds held at LAIF $75 million with a rate of return @ 4.20%
• Funds held at BMO $18.4 million with rate of return @ 2.35%
• Funds held at MBS totaled $25.7 million with yields of 0.62% - 4.86%
• Funds held by the fiscal agents totaled $30.5 million
• Funds held in Trust totaled $11.5 million
Investment report summary September 30, 2025
• Funds held at LAIF $75 million with a rate of return @ 4.34%
• Funds held at BMO $26.6 million with rate of return @ 2.79%
• Funds held at MBS totaled $25.8 million with yields of 0.63% - 4.84%
• Funds held by the fiscal agents totaled $34.1 million
• Funds held in Trust totaled $11.2 million
Investment report summary June 30, 2025
• Funds held at LAIF $75 million with a rate of return @ 4.40%
• Funds held at BMO $45.6 million with rate of return @ 3.02%
• Funds held at MBS totaled $25.4 million with yields of 0.63% - 4.99%
• Funds held by the fiscal agents totaled $33.1 million
• Funds held in Trust totaled $10.8 million
Investment report summary March 31, 2025
• Funds held at LAIF $75 million with a rate of return @ 4.48%
• Funds held at BMO $37.3 million with rate of return @ 3.02%
• Funds held at MBS totaled $25.3 million with yields of 0.64% - 4.99%
• Funds held by the fiscal agents totaled $32 million
• Funds held in Trust totaled $10.1 million
Investment report summary December 31, 2024
• Funds held at LAIF $75 million with a rate of return @ 4.62%
• Funds held at BMO $42.6 million with rate of return @ 3.02%
• Funds held at MBS totaled $15.2 million with yields of 0.64% - 5.02%
• Funds held by the fiscal agents totaled $32.1 million
• Funds held in Trust totaled $5.4 million
Investment report summary September 30, 2024
• Funds held at LAIF $75 million with a rate of return @ 4.71%
• Funds held at BMO $42.6 million with rate of return @ 3.21%
• Funds held at MBS totaled $15.2 million with yields of 0.65% - 4.79%
• Funds held by the fiscal agents totaled $5.5 million
• Funds held in Trust totaled $5.5 million
Investment report summary June 30, 2024
• Funds held at LAIF $74.2 million with a rate of return @ 4.55%
• Funds held at BMO $61.1 million with rate of return @ 3.67%
• Funds held at MBS totaled $14.9 million with yields of 0.66% - 4.95%
• Funds held by the fiscal agents totaled $4.9 million
• Funds held in Trust totaled $5.2 million
Investment report summary March 31, 2024
• Funds held at LAIF $73.4 million with a rate of return @ 4.30%
• Funds held at BOW $55.6 million with rate of return @ .14% - 3.67%
• Funds held at MBS totaled $14.9 million with yields of 0.67% - 4.88%
• Funds held by the fiscal agents totaled $3.7 million
• Funds held in Trust totaled $4.1 million
Investment report summary December 31, 2023
• Funds held at LAIF $72.7 million with a rate of return @ 4.00%
• Funds held at BOW $46.6 million with rate of return @ .14% - 3.67%
• Funds held at MBS totaled $9.3 million with yields of 0.65% - 4.92%
• Funds held by the fiscal agents totaled $3.2 million
• Funds held in Trust totaled $3.9 million
Investment report summary September 30, 2023
• Funds held at LAIF $72 million with a rate of return @ 3.59%
• Funds held at BOW $47.5 million with rate of return @ .14% - 3.67%
• Funds held at MBS totaled $9.2 million with yields of 0.60% - 5.05%
• Funds held by the fiscal agents totaled $4.7 million
• Funds held in Trust totaled $3.6 million
Investment report summary June 30, 2023
• Funds held at LAIF $71.5 million with a rate of return @ 3.15%
• Funds held at BOW $59.6 million with rate of return @ 3.56% - 5.02%
• Funds held at MBS totaled $9.1 million with yields of 0.30% - 5.05%
• Funds held by the fiscal agents totaled $3.7 million
Investment report summary March 31, 2023
• Funds held at LAIF $71 million with a rate of return @ 2.74%
• Funds held at BOW $50.1 million with rate of return @ 2.62% - 4.57%
• Funds held at MBS totaled $9.1 million with yields of 0.30% - 4.96%
• Funds held by the fiscal agents totaled $3 million
Investment report summary December 31, 2022
• Funds held at LAIF $70.6 million with a rate of return @ 2.07%
• Funds held at BOW $28.5 million with rate of return @ 2.35% -3.90%
• Funds held at MBS totaled $9.1 million with yields of 0.30% - 4.73%
• Funds held by the fiscal agents totaled $2.3 million
FISCAL IMPACT:
None. The report describes the City’s investments and rate of return on these investments as of March 31, 2026.
NOTICING PROCEDURE:
72 Hours posted notice pursuant to the Ralph M. Brown Act.