PREPARED BY: CECILIA NGUYEN DATE OF MEETING: 02/05/2024
SUBJECT:
TITLE
TREASURER’S REPORT FOR THE QUARTER ENDED DECEMBER 31, 2023
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Receive and file the Treasurer’s Report for the quarter ended December 31, 2023.
Body
Council Priority Workplan Compliance Statement:
This item is not directly related to a specific policy within the FY 2023-25 City Council Priority Workplan adopted May 1, 2023 but is provided to increase local government operational transparency.
BACKGROUND
Government Code Section 53607 allows the City Council to delegate authority to an appropriate City officer to invest or reinvest funds of the City, or to sell or exchange the securities so purchased. In doing so, the officer thereafter assumes full responsibility for those transactions until the delegation of authority is revoked or expires. The officer is responsible to report those transactions monthly to the legislative body. Additionally, Government Code Section 53646 states that the treasurer or chief fiscal officer may render a quarterly report to the City Council that includes the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and moneys held by the local agency, as well as market value of the investments as of the date of the report.
This report addresses both the monthly and quarterly reporting requirements and brings the City into compliance with each Government Code Section (53607 and 53646).
The City’s cash and investment portfolio, at fair market value, as of December 31, 2023 is $107,411,721, of which $61,080,184 is placed with the State Controller’s Local Agency Investment Fund (LAIF), $29,836,474 is placed with Insight Investment, and $16,495,063 in the City’s Mechanics Bank Operating Account. The City included the checking account balance as part of the total investment report. Although a checking account is not a typical investment account, including this balance shows the total cash on hand for the quarter.
Summary of Securities Held with Insight Investment:
The Director of Finance (Director) adheres to the principal of good financial management that public money is to be safeguarded at all times and used appropriately, economically, efficiently and effectively. The City’s investments are in compliance with its current investment policy, which emphasizes the safety, liquidity, and return of its investments, allowing the City to meet its expenditures for the next six months.
The Director will continue to monitor and analyze financial conditions and continue to implement measures to ensure that financial obligations are met. The Director will keep the City Council, Budget, Fiscal & Legislative Standing Committee, and City Manager informed of changes with necessary periodic updates on the City’s financial status.
FISCAL IMPACT
This item is for informational purposes only. There is no fiscal impact associated with this reporting.
ATTACHMENTS:
Att A - Insight Investment Statement
Att B - Local Agency Investment Fund Statement
Att C - Local Agency Investment Fund Performance Report