FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
MEETING DATE: February 7, 2024
PREPARED FOR: Mayor and Town Council
PREPARED BY: Janet Garvin, Town Treasurer
SUBJECT: Receive Treasurer’s Report for Quarter Ending December 31, 2023.
RECOMMENDATION
Accept and file Treasurer’s Report.
DISCUSSION
California Government Code requires that the Town Treasurer submit to the Town Clerk and the legislative body periodic written reports of fund balances. Town policy stipulates that the Treasurer may submit investment reports at least quarterly. The last Treasurer’s Report was for the period ending September 30, 2023, and was presented at the November 1, 2023 meeting.
Cash balances are:
As of Dec. 31, 2023 As of Dec. 31, 2022
Bank of Marin checking $ 1,189,276 $ 1,207,809
LAIF account 5,183,050 6,898,871
Total cash $ 6,372,326 $ 8,106,680
State of California Local Agency Investment Fund (LAIF) earned 4.00% as the quarterly apportionment rate for the quarter ending December 31, 2023, compared with a quarterly apportionment rate of 3.59% at September 30, 2023. Interest earned for the quarter ending December 31, 2023 (deposited in January 2024) was $36,445; total interest earned for Fiscal Year 2022-23 ending June 30, 2023 was $154,584.
As always, the interest earned in the Town’s LAIF account is affected by Federal Reserve rates. In Fourth Quarter 2023 the Federal Reserve again declined to raise its benchmark interest rate, following eleven rate hikes earlier in 2023. At its January 31, 2024 meeting, the Federal Reserve held to the 5.25%-5.50% rate it established in July 2023. The Federal Reserve also indicated it will not consider cutting its rate until inflation approaches its 2% goal.
ATTACHMENT
A. LAIF performance report as of December 2023
B. LAIF monthly statement as of Dec. 31, 2023
AGENDA ITEM #7
December 3.929
November 3.843
October 3.670
September 3.534
August 3.434
July 3.305**
PMIA Average Life(1): 230
LAIF Fair Value Factor(1): 0.993543131
PMIA Daily(1): 3.96
PMIA Quarter to Date(1): 3.81
LAIF Apportionment Rate(2): 4.00
LAIF Earnings Ratio(2): 0.00010932476863589
LAIF Administrative Cost(1)*: 0.29
Treasuries
61.22%
Agencies
21.44%
Certificates of
Deposit/Bank Notes
7.72%
Time
Deposits
3.34%
Commercial
Paper
5.71%
Corporate
Bonds
0.36%
Loans
0.21%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative 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 of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year. ** Revised
Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 1/17/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 12/31/23
Chart does not include $2,164,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Pooled Money Investment Account
Monthly Portfolio Composition (1)
12/31/23
$158.0 billion
ATTACHMENT A
ATTACHMENT B