PREPARED BY: J. KELLY SESSIONS DATE OF MEETING: 1/19/21
SUBJECT:
TITLE
INVESTMENT REPORT/TREASURER’S REPORT FOR MONTH OF DECEMBER 2020
Label
CITY MANAGER RECOMMENDATION
Recommendation
Receive and file
Body
Compliance statements
Council Priority Workplan Compliance Statement:
This item is not directly related to a specific policy priority within the FY 2019-21 City Council Priority Workplan adopted March 1, 2019 and most recently amended November 2, 2020 but is provided to increase local government operational transparency.
CEQA Compliance Statement
This is not a project as defined by CEQA.
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).
City Holdings as of December 31, 2020:
• Cash in the City’s Mechanics Bank accounts: $ 8,358,713
• Investments in LAIF and other cash equivalents: $ 37,045,725
• Investments managed by Insight in Government Agencies,
Corporate and Government Bonds, and cash equivalents: $ 28,669,897
Total Holdings: $ 74,074,336
The Administrative Services Director (Director) reports that investments within the portfolio fully comply with the City’s adopted Investment Policy. The Director further finds that there are sufficient resources and liquidity to meet all pooled expenditure requirements for the next six months. However, given the COVID-19 pandemic and shelter-in-place orders, these funds could erode quickly. For each month the Casino is fully closed, the City loses approximately $2.3 million in gross gaming revenue plus an additional $1.3 million from other sources due to any shelter-in-place shutdowns. Now that the Casino has reopened but has implemented social distancing protocols, fewer patrons are being served; thus, gross gaming revenue coming to the City has decreased proportionally. Immediate measures have been put into place as well as new budget balancing measures to reduce expenditures, thus ensuring the City can meet its financial obligations. 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.
Attachment: Insight Investment Report - December 2020