Compton treasurer reports $312 million portfolio, $3.0 million in quarter earnings; audit status remains incomplete

City Treasurer Brandon Mims presented the fiscal year 2026 second-quarter investment report, saying the city's investment portfolio totaled about $312,000,000 as of the reporting date and earned $3,005,318.42 in interest for the quarter.

Mims described market conditions that shaped performance: a cooling economy, easing of the prior inverted yield curve, and Federal Reserve moves that reduced benchmark rates to the 3.5'3.75 percent range. He said shorter-term instruments have begun to yield less compared with longer-term securities, a shift from the inverted yield curve pattern the city had benefited from over the prior 18 months.

Portfolio specifics included an estimated $56,000,000 in operational cash accounts and an accounting that allocates $1,188,688.51 of the quarter's interest earnings to the general fund. Mims said the $11,000,000 change in portfolio value compared with the previous quarter reflects transactions and transfers in addition to interest.

When asked by Councilmember Bowers whether the city is now "in the black," Mims said the treasurer's office does not provide final accounting judgments and that the controller and the complete audits are the appropriate sources for that determination. He referenced the 2023 audit as showing an internal service fund debt of about $42,000,000 and said the 2024 audit had not yet been completed and was awaiting signature.

Councilmembers thanked the treasurer and his staff for the regular financial reporting and asked that the city continue to refine revenue projections in the uncertain economic environment. The treasurer said staff will support the controller and provide further analysis as audits are finalized.