The City of Carlsbad city treasurer briefed the Investment Review Board on the Treasury Department’s role, allowable investments, portfolio strategy and the annual investment report for fiscal year 2024–25. Staff reported an ending portfolio balance near $950 million, a year‑end portfolio yield of about 3.4 percent and approximately $25 million generated in interest income for the fiscal year.

The treasurer told the board that the treasury department’s primary public investment objectives are safety, liquidity and yield (in that order). The city’s investment policy—approved annually by the City Council—permits fixed‑maturity instruments (no equities), employs a buy‑and‑hold strategy, and maintains a laddered portfolio. The policy requires that no less than roughly two‑thirds of the approved operating budget (noted in the presentation at about $305,000,000) mature within one year and that no maturities extend beyond five years.

Staff presented the portfolio allocation and source‑of‑funds breakdown: capital projects comprised the largest share of funds at 43 percent, followed by enterprise funds (23 percent), the general fund (20 percent), fiduciary/internal (10 percent) and special/other (4 percent). Allocation by instrument showed federal agencies as the largest holding, corporate notes at 17 percent, municipal bonds 11 percent, mortgage‑backed securities 11 percent, U.S. Treasuries 8 percent, certificates of deposit 2 percent and cash/pooled investments 14 percent.

Quarterly and annual reports are provided to the City Council; the Investment Review Board will review quarterly reports beginning in November. The treasurer noted the board’s role is advisory—providing oversight of principal protection, liquidity and policy compliance—but the board does not execute trades.

A board member complimented the presentation and its organization. No public speakers addressed the item.