Finance committee receives semiannual investment report; staff recommends no changes to CalTrust allocation

The Belvedere Finance Committee received its semiannual report on city investments and was told staff recommends no change to the city's CalTrust allocation.

Helga Kotter, director of administrative services, summarized the returns: “The CalTrust liquidity fund earned over 115,000 in interest from January to March 2025, totaling 330,000 in earnings for the fiscal year to date,” and noted staff moved $153,000 from the short-term fund into the liquidity fund in January to capture a slightly higher yield while maintaining a stable net asset value. Kotter said the liquidity fund is currently the most stable option during volatile markets and that committee and staff review allocations quarterly.

Committee member Will Lyon framed the trade-off between yield and price, using the city's holdings as an example: “I took the current market value of what we have invested, which is close to $10,000,000, and said, if we picked up, you know, an extra 0.04 percent or 4 basis points, what would that benefit us? And that would benefit us ballpark like $4,000. Whereas if the price of the fund moved by a penny, that would impact us by close to $10,000.” He concluded price stability and a stable net asset value are the dominant considerations given near-term budget draws.

Staff confirmed no committee action was required on the item; the report was provided for receipt and questions. Several members asked for clearer memo language around terms such as "locking in" rates and requested staff correct wording to avoid implying commingled funds can lock rates as a laddered portfolio can.