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Tracy Treasurer Reports $623 million Portfolio, Urges Annual Investment Policy Review
Summary
City treasurer presented the quarter‑end (Dec. 31, 2024) portfolio review showing roughly $623 million in city assets, a combined portfolio yield above 4%, and recommended continuing annual policy review; finance committee received the report and approved it as informational.
The Tracy finance committee on Oct. 22 received an informational treasurer's report showing the city’s pooled investments and trustee accounts totaled about $623,000,000 as of Dec. 31, 2024, and a combined portfolio yield near 4.27 percent.
The report, delivered by Treasurer McCray, opened with the office’s objectives: “safety, liquidity, and return on investment,” and explained the city’s mix of demand deposits and institutionally managed portfolios, including accounts with Chandler Asset Management, JPMorgan, Invesco and the Local Agency Investment Fund.
McCray said the portfolio’s book and market values are kept close, and identified the treasurer’s investments at roughly $537 million (book) and $539 million (market) on the report’s date. He noted the city’s broader portfolio — including trustee and bond‑related monies — aggregated near $623 million.
The treasurer told the committee the portfolio’s weighted yield was “4.266,” and pointed to strong recent interest earnings compared with years when yields were below 1 percent. He described the portfolio duration as roughly 1.9 years (about 709 days) and said the city’s policy limits holdings to maturities under five years.
McCray outlined liquidity and allocation: a Wells Fargo checking sweep with an interest rate of about 0.71 percent for demand deposits, and institutional managers used for longer durations and higher returns. He explained differences among managers: JPMorgan has taken a more opportunistic corporate‑bond posture (higher yields now), Invesco holds relatively longer duration positions, and Chandler is a long‑standing municipal manager. He also described the Local Agency Investment Fund (LAIF) and a CAMP account as short‑duration options with program limits.
On credit concentration, McCray said corporate exposure is capped by policy and that the five largest corporate issuers in the portfolio are familiar financial institutions; the policy permits up to 5 percent exposure per issuer but the treasurer seeks lower weights in practice.
Committee members thanked the treasurer for the briefing. No substantive amendments were requested. The committee approved a motion to receive the treasurer’s informational report.
The treasurer also noted that investment policy review is conducted annually, and that an investment committee will review and present any recommended changes to the full city council for approval in a public meeting.
The finance committee voted to accept the report as informational.
