FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
AGENDA ITEM #9
MEETING DATE: May 1, 2024
PREPARED FOR: Mayor and Town Council
PREPARED BY: Janet Garvin, Town Treasurer
SUBJECT: Receive Treasurer’s Report for Quarter Ending March 31, 2024
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 December 31, 2023, and was presented at the February 7, 2024, meeting.
Cash balances are:
As of Mar. 31, 2024 As of Mar. 31, 2023
Bank of Marin checking $ 334,995 $ 99,733
LAIF account 4,319,495 6,074,580
Total cash $ 4,654,490 $ 6,174,313
State of California Local Agency Investment Fund (LAIF) earned 4.30% as the quarterly apportionment rate for the quarter ending March 31, 2024, up 0.30% from the interest rate for the quarter ended December 31, 2023. Interest earned for the quarter ending March 31, 2024 (deposited in April 2024) was $53,409. The 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. With data showing that inflation rose slightly in March 2024, analysts predict that the Federal Reserve is unlikely to cut its benchmark interest rate in the near future. The Federal Reserve has indicated it will not consider cutting its rate until inflation declines and approaches the Fed’s 2% goal. As of March 2024, the Federal Reserve was being maintained at the 5.25%-5.50% rate it established in July 2023.
FISCAL IMPACT
There is no fiscal impact associated with accepting this report.
ATTACHMENTS
The most recent LAIF performance report and the LAIF Monthly Statement as of March 31, 2024 March 4.232
February 4.122
January 4.012
December 3.929
November 3.843
October 3.670
LAIF Apportionment Rate(2): 4.30
LAIF Earnings Ratio(2): 0.00011755619077389
LAIF Administrative Cost(1)*: 0.27
PMIA Average Life(1): 226
LAIF Fair Value Factor(1): 0.994191267
PMIA Daily(1): 4.22
PMIA Quarter to Date(1): 4.12
Treasuries
58.24%
Agencies
22.16%
Certificates of
Deposit/Bank Notes
9.23%
Time
Deposits
3.25%
Commercial
Paper
6.47%
Corporate
Bonds
0.43%
Loans
0.22%
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.
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 4/17/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 03/31/24
Chart does not include $2,005,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Pooled Money Investment Account
Monthly Portfolio Composition (1)
3/31/24
$156.5 billion