Redondo Beach City Treasurer Eugene Solomon presented the commission with the city's quarterly investment report, saying the portfolio totaled roughly $73,000,000 at the end of the first quarter and produced an effective rate of return of 3.23 percent.

Solomon and finance staff said interest earned year-to-date was $575,653; roughly 60 percent of that amount (about $345,000) was being contributed to the general fund so far, while the budgeted annual contribution to the general fund from investment interest is $1,500,000.

During the presentation, staff noted one policy-compliance exception shown by the city's reporting system (Clearwater): a corporate-issuer concentration reported at 5.5 percent where the city's policy limit is 5 percent. Finance staff explained the system flags the current concentration but does not always reflect the compliance view "at the time of purchase." They cited a Caterpillar corporate bond purchase of $4,000,000 made in August 2024; staff said that purchase complied with policy at the purchase date and that a swap analysis to reduce concentration was performed but not executed because it would not have been in the city's best interest.

Commissioners asked whether the investment policy requires scheduled rebalancing. Staff replied rebalancing is only required when holdings exceed policy thresholds; otherwise the treasurer manages safety, liquidity and yield within the policy. Commissioners also pressed staff to explain why portfolio assets under management were lower than prior years. Staff attributed the year-over-year reduction to the spending of one-time funds (including ARPA and lease-revenue proceeds), completion of capital improvement projects, timing differences for reimbursements, and other operational cash-flow events. Staff said they are preparing a more detailed cash-flow analysis and will report back.

Staff presented sector and maturity breakdowns: roughly a third of the portfolio in U.S. agencies, about 21 percent in treasuries, a portion in local government investment funds, and the remainder across corporate bonds and money market funds. The weighted average maturity reported was about 0.75 years; staff said maturities have been shortened to preserve liquidity.

The treasurer concluded the presentation by saying the office will continue to monitor concentrations and cash flows and will return with updated analysis in the next quarter.