AGENDA
ITEM
9 AGENDA
ITEM
CALEXICO California 9
WHERE CALIFORNIA MEXICO MEET
CALEXICO FINANCING
AUTHORITY
DATE: July 17, 2024
TO: Chair and Agency Members of Calexico Financing Authority APPROVED BY: Juan A. Contreras, Executive Director JAC
PREPARED BY: Sandra L. Fonseca, Interim Finance Director/Treasure OF SUBJECT: Repeal and Replace Resolution No. 2024-40 - Amend Name and Title(s) Approval of Resolution of the Calexico Financing Authority Authorizing Investment of Funds in the State Treasurer's Local Agency Investment Fund =================== ===================================== Recommendation:
Staff recommends approval to repeal and replace Resolution No. 2024-40 - Amend Name and Title(s) - Resolution of the Calexico Financing Authority authorizing investment of funds in the State Treasurer's Local Agency Investment Fund (LAIF).
Background:
The City of Calexico holds and administers funds on behalf of its related agency, the Calexico Financing Authority. The Calexico Financing Authority holds cash balances related to debt service for its long-term bonds, including the 2020 Water/Wastewater Revenue Bonds and the 2014 Measure H Revenue Bonds.
The proposed resolution authorizes investment of Financing Authority cash balances with the State Treasurer to improve overall investment return performance.
Discussion and Analysis:
The City of Calexico currently invests its operating funds, along with Calexico Financing Authority funds, in the State Treasurer's Local Agency Investment Fund (LAIF). LAIF provides a professional investment vehicle with security, liquidity, and market rate investment income.
Chapter 730 of the Statutes of 1976, Section 16429.1 was added to the California Government Code to create a Local Agency Investment fund (LAIF) in the State Treasury for the deposit of a local agency for purposes of investment by the State Treasurer. An information sheet about LAIF is provided in Attachment A to this report. Over 2,300 local agencies invest in the LAIF program.
The State Treasurer caps LAIF investments at $75 million for each participating local government. The City's consolidated investment pool has reached this cap and now has the opportunity to improve its investment returns by opening a separate account to invest Calexico Financing Authority funds to ensure the full investment of all cash balances.
Fiscal Impact:
With the establishment of a separate LAIF account for the Financing Authority, the City investment pool Will have the opportunity to invest additional funds within the State Treasurer's LAIF investment cap and improve its annual investment income. Recent LAIF investment performance statistics are provided in Attachment B.
Attachments):
1. Repeal and Replace Resolution No. 2024-40 - Amend Name and Title(s) - Resolution of the City Council of the City of Calexico Financing Authority Authorizing Investment Monies in the Local Agency Investment Fund.
2. Attachment A - LAIF Information Sheet
3. Attachment B - LAIF Investment Performance
2 ATTACHMENT 1
RESOLUTION NO. 2024 - _
Repeal and Replace Resolution No. 2024-40 to Amend Name and Title(s) Resolution of the Calexico Financing Authority Authorizing Investment of Funds in the Local Agency Investment Fund Administered by the State Treasurer WHEREAS, The Local Agency Investment Fund is established in the State Treasury under Government Code section 16429.1 et. seq. for the deposit of money of a local agency for purposes of investment by the State Treasurer; and
WHEREAS, the Agency Members of the Calexico Financing Authority hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with Government Code section 16429.1 et. seq. for the purpose of investment as provided therein is in the best interests of the Calexico Financing Authority; NOW THEREFORE, BE IT RESOLVED, that the Agency Members of the Calexico Financing Authority hereby authorize the deposit and withdrawal of Calexico Financing Authority monies in the Local Agency Investment Fund in the State Treasury in accordance with Government Code section 16429.1 et. seq. for the purpose of investment as provided therein.
BE IT FURTHER RESOLVED, as follows:
Section 1. The following Calexico Financing Authority officers holding the title(s) specified hereinbelow or their successors in office are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby:
Juan A. Contreras Sandra L. Fonseca
Executive Director Interim Finance Director/Treasurer
(Signature) (Signature)
Section 2. This resolution shall remain in full force and effect until rescinded by Agency Members of the Calexico Financing Authority by resolution and copy of the resolution rescinding this resolution is filed with the State Treasurer's Office.
Resolution No. 2024 -
PASSED, ADOPTED, AND APPROVED by the Calexico Financing Authority on this 17" day of July 2024.
Camilo Garcia, Chair
ATTEST:
Veronica L. Alvarado, Clerk
APPROVED AS TO FORM:
Carlos Campos, General Counsel
State of California )
County of Imperial ) SS.
City of Calexico
I, Veronica L. Alvarado, Clerk of the Calexico Financing Authority do hereby certify the above Resolution No. 2024 - was approved at a regular Calexico Financing Authority meeting held on the 17" day of July 2024, by the following roll-call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Veronica L. Alvarado, Clerk
ATTACHMENT 2
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THE STATE California State Treasurer
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Home ->> LAIF
Local Agency Investment Fund (LAIF)
This program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the State Treasurer's Office investment staff at no additional cost to the taxpayer.
Contact LAIF at 916) 306-8260 or [email protected]
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for LAIF Forms Members
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Sign Up to Receive LAIE LAIF Participants may begin the process for LAIF Online registration by emailing Information [email protected] and requesting their unique Authorized User ID. Once you have your Authorized User ID, you may register here and immediately begin using LAIF Online.
LAIF office hours will remain the same, Monday - Friday, 7:30 am to 4:00 pm. LAIF Online Highlights continues to be available Monday - Friday, 7:00 am - 7:00 pm. 2024 LAIF Conference Transactions completed by 10:00 am will be processed the same day. Transactions completed after 10:00 a.m. will be processed the next business day. Transactions may be scheduled as far Your Money is Safe in LAIE
as 10 days in advance.
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related to PMIA/LAIE
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Documents
• 2024 Calendar
Contact Information • Information Digest • PMIA/LAIF Performance Fiona Ma, CPA • How to Read Your Statement • PMIA Daily Effective Yield State Treasurer and Chair • LAIF Monthly Balances
• How to Calculate Quarterly Earnings &
Apportionment
Jeff Wurm • PMIA Average Monthly Effective Yields
Director of Investments • Audit Process • PMIA Average Annual Yields (916) 653-3147
• LAIF Money Protected by Statute • Online Statements
Kim McCorstin • Jarvis v. Connell Court of Appeal Decision • Interest Statement
Assistant Director of Investments
(916) 653-3147 • LAIF Participation Chart Link to State Controller's Office Quarterly Interest Earnings Statement
• PMIA Stalutes
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(916) 653-3001 Historical Rates
• LAIF Quarterly Apportionment Rates Emergency LAIF Accounts Office Hours 7:30 AM to 4:00 PM
Phone: (916) 653-3001 • FY 2022-2023 PMIA Daily Effective Yield Emergency LAIF accounts are open to any local Fax: (916) 589-2840 agency meeting LAIF Participant requirements and individual Emergency Account program requirements.
State Treasurer's Office
Local Agency Investment Fund
901 P Street, Room 213B
Sacramento, CA 95814 LAIF STATISTICS AS OF 04/30/24
2,346 Agencies
P.O. Box 942809
Sacramento, CA 94209-0001
42 Bonds 54 Counties
146 Trustees
lease Note 1.79%
6.22% 2.30% 475 Cities
f you are unable to reach LAIF 191 School
Districts 20.25%
during regular business hours,
please use the emergency phone 8.14%
numbers.
Emergency lines will be activated
ONLY in case of emergency and
1,438 Special
regula LA mes are operational Districts
61.30%
LAIF Emergency Numbers
(916) 539-0273 (916) 539-0276
(916) 539-0275 (916) 708-2649
LAIF Balance by Type as of 04/30/2024
Additional Investment
Total $21.58 billion
Information (chart dollers in millions)
Pooled Money Investment $575 $104
$1,003
$594
Account (PMIA)
Program $10,274
Description
PMIA
Contact
Information
Program $9,036
Documents
Time Deposit Program
• COUNTIES •I CITIES •SPECIAL DISTRICTS SCHOOL DISTRICTS • TRUSTEES BONDS Program
Description Percentages may not total 100% due to rounding.
Contact
Information
Percentages may not total 100% due to rounding.
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ATTACHMENT 3
PMIA/LAIF Performance Report
as of 5/15/24
Quarterly Performance PMIA Average Monthly
Quarter Ended 03/31/24 Effective Yields(1)
_AIF Apportionment Rate 4.30 April 4.272
LAIF Earnings Ratio(2) 0.00011755619077389 March 4.232
LAIF Administrative Cost)* 0.27 February 4.122
0.994191267 January 4.012
4.22 December 3.929
PMIA Quarter to Date(a). 4.12 November 3.843
PMIA Average Life: 226
Pooled Money Investment Account
Monthly Portfolio Composition (1)
4/30/24
$171.5 billion
Corporate
Commercial Bonds
0.41%
Loans
0.20%
Certificates of
Deposit/Bank Notes.
8.84%
Treasuries
58.43%
Agencies /
22.59%
Chart does not include $1,969,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Daily rates are now available here. View PMIA Daily Rates tes: The apportionment rate includes interest earned on the CaPERS Supplemental Pension Payment pursuant to Government Code 208. )(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 ( he percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides th ministrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.
Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller