City investment portfolio reports
At a glance
Based on auto-generated captions; names and numbers may be misheard.
- What: quarterly reports on the city's invested cash, reviewed by the Finance and Audit Commission before going to the city council.
- Where it stands: on October 15, 2026 the commission voted to recommend that the council receive the June 30 and September 30, 2026 reports. Staff are extending average maturity toward a three-year goal and reinvesting maturing securities at higher rates.
- Next: benchmark framing to be clarified in future reports; the policy update allows a 5 to 7 year window from about November 11.
Main points
- June 30: about 23 million dollars in the state local agency investment fund (about 3.82%) and about 28 million in the managed portfolio (about 4.10%).
- September 30: managed portfolio yield 4.24%, average maturity 2.59 years, slightly lower market value (an unrealized paper loss as rates rose; the city holds securities to maturity). About 10 million dollars matures by year end.
- Staff said the Federal Reserve raised rates a quarter point in September and cited inflation of 3.7%; the next Fed meeting is October 27 to 28.
- A commissioner asked staff to compare like maturities when benchmarking against Treasuries; staff agreed.
- Liquidity: staff said operating cash and the investment fund keep the city well positioned; a possible large lawsuit cost was raised, with staff noting litigation would likely take years.
- Presented by Patino; Chair Milan ran the item.
Sources
- 2026-10-15 - Finance and Audit Commission (recording, 10/15/2026)
- 2026-10-15 - Finance and Audit Commission
- https://www.menlopark.gov/files/sharedassets/public/v/1/agendas-and-minutes/finance-and-audit-committee/2026-meetings/agendas/20261015-fac-special-meeting-agenda-packet.pdf
Discussion time
About 15 minutes across 1 meeting (from transcript timestamps; approximate).
| Meeting | Minutes |
|---|---|
| 2026-10-15 - Finance and Audit Commission | 15 |
Log
2026-08-25 - City Council
Commissioner Velagapudi presented the Finance and Audit Commission's annual report; council discussed the commission's investment policy feedback. No action.
- 2026-10-15 - Finance and Audit Commission — Reviewed the June 30 and September 30, 2026 portfolio reports; both recommended for council receipt.
2026-11-10 - City Council Special
The June 30 and September 30, 2026 quarterly reports are on the council consent calendar (items I2 and I3, Staff Reports 26-181-CC and 26-182-CC).