TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Tanner Benson, Financial Analyst
SUBJECT:
title
Monthly Investment Transaction Report for March 2026
end
ABSTRACT
The March 2026 Monthly Investment Transaction Report is submitted to the City Council in compliance with California Government Code Section 53607, which requires monthly disclosure of investment activity. The report summarizes the City’s long-term investment activity managed by Chandler Asset Management, short-term investments held with the Local Agency Investment Fund, and earnings from the Wells Fargo Cash Sweep Program and JPMorgan Chase Demand Deposit Account.
As of March 31, 2026, the City’s total ending book value for investment accounts held with Chandler Asset Management and Local Agency Investment Fund was $218,266,370.90. Additionally, the Cash Sweep and Demand Deposit Account Programs generated $175,058.07 in earnings for March.
RECOMMENDATION
recommendation
Receive and file the Monthly Investment Transaction Report for March 2026.
body
PRIOR ACTION/VOTE
None.
STRATEGIC ALIGNMENT
This item aligns with the City Council to maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency relating to an administrative priority.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
CEQA AND REGULATORY OVERVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly.
DISCUSSION
This report is filed with the City Council in compliance with Government Code Section 53607, which states that a monthly report of transactions related to the purchase, sale, or exchange of securities is made monthly to the legislative body. The City of Murrieta (City) has both long-term and short-term investments. The City’s managed investment portfolio is for longer-term investments, managed by Chandler Asset Management. The Local Agency Investment Fund (LAIF), managed by the California State Treasurer, is used for short-term investments and functions more like a savings account to facilitate cash flow.
This report includes funds under management from Chandler Asset Management, funds deposited with LAIF, and short-term investment earnings received from the Wells Fargo Cash Sweep Program and JPMorgan Chase Demand Deposit Account. Bond funds held by the City’s Trustee, US Bank, are not included in this report but are on file and available upon request.
The transactions in the long-term investment portfolio for March 2026 include dispositions of $7,706,229.50 in cash, payables, receivables, maturities, and sales, which also includes a withdrawal for bank fees. Subsequently, these proceeds, together with the dispositions and monthly interest earnings, were reinvested in security and money market fund purchases totaling $8,282,125.60.
The California State Treasurer allocates and reinvests LAIF interest earnings on a quarterly basis. Quarterly interest earnings are reflected in the statement one month following the end of the quarter. The account received the last interest earnings deposit in January 2026 for the previous quarter. The balance in LAIF, as of March 31, 2026, was $62,164,285.61. The monthly yield on the LAIF portfolio was 3.826%, down 0.045% from the 3.871% earned at the end of February 2026.
As of March 31, 2026, the City’s Total Ending Book Value (or what the City actually paid for the investments) for both investment accounts (long and short-term accounts) is $218,266,370.90. Both accounts combined had an overall increase of $757,360.18, or 0.35%, which includes any deposits, dispositions, applicable interest earnings, and any realized gain/losses, less monthly fees charged to the account.
The City is also earning monthly interest in the General Checking account. The Wells Fargo “Cash Sweep Program” allows the City to earn a return on uninvested cash balances in our General Checking Account by automatically "sweeping" cash balances into a Sweep investment vehicle until such balances are otherwise needed to satisfy obligations arising in the account.
The total earnings from the Cash Sweep Program for the month of March were $167,537.91.
The City is also earning monthly interest in the General Checking account with JPMorgan. This account allows the City to earn a return on uninvested cash balances in our General Checking Demand Deposit Account. The City has begun earning interest on the funds transferred in January 2026. In February, the account earned $7,520.16 in interest.
Attached are the investment portfolio accounts for Chandler Asset Management for the month of March (Attachment 1) and the regular monthly statement for LAIF (Attachment 2), which lists all transactions associated with the respective accounts. Attachment 3 provides a summary of daily transactions for the Wells Fargo Cash Sweep Program. Lastly, Attachment 4 provides a summary of daily transactions for the new JPMorgan Demand Deposit Account.
This report also includes a statement of compliance with state law and the City’s investment policy for the various investment categories.
FISCAL IMPACT
The recommended action has no fiscal impact. Interest earnings projections are included in the Fiscal Year 2025/26 Operating Budget.
ATTACHMENTS
ATT 1 - Chandler Asset Management Monthly Account Statement for March 2026
ATT 2 - Local Agency Investment Fund (LAIF) Monthly Statement for March 2026
ATT 3 - Wells Fargo Cash Sweep Program March 2026 Statement
ATT 4 - JP Morgan Account Monthly Statement for March 2026