FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
AGENDA ITEM #8
MEETING DATE November 6, 2024
PREPARED FOR Mayor and Town Council
PREPARED BY Janet Garvin, Treasurer
SUBJECT Treasurer’s Report for Quarter Ending September 30, 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 June 30, 2024. It was presented at the August 7, 2024 meeting.
Cash balances are:
As of September 30,2024 As of September 30, 2023
Bank of Marin checking $ 422,485 $ 85,243
LAIF account 2,693,610 4,480,691
Total cash $ 3,116,095 $ 4,565,934
State of California Local Agency Investment Fund (LAIF) earned 4.71% as the quarterly apportionment rate for the quarter ending September 30, 2024, up 0.16% from the rate earned for the quarter ending June 30, 2024.
Interest earned for the quarter ending September 30, 2024 (deposited in October 2024) was $46,648.
The Federal Reserve lowered its benchmark interest rate by 50 basis points in September, easing monetary policy for the first time in more than four years (since March 2020) and resulting in a target lending rate of 4.75%-
5.0%. The Federal Reserve has scheduled two more meetings before the end of 2024, which could result in further but perhaps more modest decreases in the benchmark interest rate. The impact of the Fed’s actions is resulting in lower yields for fixed income investments. Two-thirds of LAIF’s investment portfolio comprises fixed income vehicles, including 55.49% invested in U.S. Treasury vehicles such as Treasury Notes and Bills.
ATTACHMENT
The most recent LAIF performance report and the LAIF Monthly Statement as of September 30, 2024 are attached.
September 4.575
August 4.579
July 4.516
June 4.480
May 4.332
April 4.272
LAIF Apportionment Rate(2): 4.71
LAIF Earnings Ratio(2): 0.00012912073474208
LAIF Administrative Cost(1)*: TBD
PMIA Average Life(1): 231
LAIF Fair Value Factor(1): 1.002061084
PMIA Daily(1): 4.58
PMIA Quarter to Date(1): 4.56
Treasuries
55.49%
Agencies
25.71%
Certificates of
Deposit/Bank Notes
8.76%
Time
Deposits
3.19%
Commercial
Paper
6.08%
Corporate
Bonds
0.51%
Loans
0.26%
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 10/16/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 09/30/24
Chart does not include $1,343,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.
Pooled Money Investment Account
Monthly Portfolio Composition (1)
9/30/24
$161.6 billion