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Council re-adopts investment policy; portfolio report shows $43.5 million holdings and solid returns
Summary
Lakewood re-adopted its annual investment policy (aligning corporate-paper maturities to new state law) and received a quarterly portfolio report showing $43.5 million in holdings, a cost yield of 4.24%, market yield of 3.75% and $2.5 million in income/price appreciation for a 6.2% total return for the year.
The Lakewood City Council re‑adopted the city's annual investment policy and received the quarterly investment performance report for the period ending Dec. 31, 2025.
Director of Finance and Administrative Services Jose Gomez said the policy guides investments for all available city funds and noted one substantive change: the policy language was updated to align with state law that allows certain commercial‑paper investments to mature up to 397 days (previously 270 days). Gomez said other changes were largely technical or date updates.
PFM Asset Management senior relationship manager Tiffany Tint presented fourth‑quarter market context and the portfolio report. Tint summarized national market themes, including easing inflation and a cooling labor market, and reported the city's portfolio closed the year at $43,500,000. "This reflects a $2,500,000 increase from last year," she said. PFM cited an expected earnings (cost yield) of 4.24% and a market yield of 3.75%. For the year the portfolio generated about $2.5 million in income and price appreciation producing a reported 6.2% total return.
Tint said the portfolio remains high quality (approximately 80% rated AA or above), within policy limits, and that staff and the investment advisor plan to continue participating in new issuance opportunities to improve diversification and capture yields. The presentation included a certificate of compliance confirming the portfolio met policy and California code limits.
Vice Mayor Jeff Wood moved to adopt the staff recommendation to re‑adopt the investment policy and receive and file the quarterly report; the council approved the motion on a unanimous roll call.
Next steps: staff will implement the technical policy change on corporate‑paper maturities and continue reporting portfolio performance to the council.
