Beaumont receives third-quarter investment report; portfolio complies with government code

The Beaumont Finance and Audit Committee received and filed the city's fiscal year 2024–25 third-quarter investment report, covering January through March 2025. Jennifer Stachian, finance staff, presented the report and said it is required by Government Code section 53646 and by the city's investment policy.

Stachian summarized quarterly highlights: Public Trust portfolio net income of $724,490.93; Wells Fargo sweep-account interest of $234,132; HCN interest across accounts of $77,151; California Class interest of $433,779; and a PARS trust investment gain of $2,702. She reported key portfolio balances as of March 31: Wells Fargo general and sweep accounts totaling $25,900,000; payroll/gas tax/construction and HCN accounts totaling $9,700,000; the U.S. Bank investment portfolio at $75,800,000; LEAF at $51,800,000; California Class at $40,200,000; and PARS trust at $3,600,000. Stachian noted an upcoming BMO maturity on May 2, 2025, which staff will evaluate for reinvestment.

Council Member David Fenn asked for percentage breakdowns and whether returns could be presented as a grand-total percentage; Stachian directed committee members to the pooled-investments holdings attachment that shows the current yield per pool (the packet's "current yield" column). Committee members also discussed how interest earnings are treated: pooled-investment earnings remain in the investment accounts and sweep-account interest is used for operating purposes; investment earnings are typically budgeted as one-time revenues in the operating budget.

Stachian said the portfolio complies with the Government Code and the city's investment policy. After questions, the committee voted to receive and file the third-quarter investment report.