La Mesa treasurer reports record investment earnings, cautions on market uncertainty

City Treasurer Matt Trebone told the La Mesa City Council on Aug. 12 that the city earned $721,725 in investment income in the quarter ending June 30, and roughly $1.5 million in the first half of 2025 — the most the city has earned in a comparable period, he said. Trebone said the city’s investment approach remains “safety, liquidity, and earnings,” in that order, and that staff has maintained a buy‑and‑hold posture while leaving maturing funds in the California Local Agency Investment Fund (LAIF) when cash yields were favorable.

Why it matters: Higher investment returns increase available non‑tax revenues for the city budget. Trebone said a strong LAIF return — he reported LAIF at about 4.4% for the quarter — and a conservative posture have given the city “flexibility” to pursue opportunities without sacrificing liquidity.

Trebone said $3.5 million of assets matured during the quarter and the city did not buy new long‑term assets in Q2; instead, it retained cash in LAIF because “cash is king right now.” He projected that if the city continues at the quarter’s pace, pro forma annual investment earnings could approach $3 million. He emphasized that the portfolio complies with the City of La Mesa’s investment policy and “relevant sections of the California Government Code” governing public funds.

Council members thanked Trebone and asked about the reasons for improved results. Trebone said flexibility — waiting for opportunities instead of immediately reinvesting maturing assets — and coordination among treasury, finance and city management were factors. He also told the council he is monitoring market conditions and would look for opportunities to ladder investments if and when appropriate.

No council action was taken on the report; Trebone presented the quarterly update and answered questions.