Agenda Report
Fullerton City Council
MEETING DATE: FEBRUARY 6, 2024
TO: CITY COUNCIL / CITY MANAGER
SUBMITTED BY: ELLIS CHANG, DIRECTOR OF ADMINISTRATIVE SERVICES PREPARED BY: ELLIS CHANG, DIRECTOR OF ADMINISTRATIVE SERVICES
DIANA AGUILERA, ADMINISTRATIVE ASSISTANT
SUBJECT: TREASURER’S REPORT FOR QUARTER ENDED DECEMBER 31, 2023
SUMMARY
Treasurer’s Report for second quarter of Fiscal Year 2023-24, October 1, 2023 - December 31, 2023.
PROPOSED MOTION
Receive and file.
ALTERNATIVE OPTIONS
Approve Proposed Motion
Do not receive and file report
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
This is the second Quarter Treasurer’s Report.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
Staff will use the information provided in this report to ensure continued oversight.
BACKGROUND AND DISCUSSION
The City’s operating portfolio ended the quarter with investments totaling $211.12 million. Investments including:
$95.77 million in the State Local Agency Investment Fund and a Local Government Investment Pool $88.23 million in U.S. Treasury Notes
$1.48 million in Federal Agency issues
$17.53 million in corporate notes
$6.31 million in money market funds
$1.75 million in municipal bonds
$0.05 million in cash.
The market yield equaled 4.343% on December 31, 2023. The accrued interest income for the quarter totaled $768,508.69.
Cash balances attributable to various City Funds comprise temporarily idle cash invested in these portfolios. The invested cash is restricted to support each Funds’ purpose and may not transfer between Funds. The invested cash is not discretionary. The City invests and draws upon these funds to support working capital as needed. The City bases its investment practices and policies on state law, prudent money management and the Statement of Investment Policy with the following primary goals:
To protect the principal monies entrusted to this office To assure compliance with all federal, state and local laws governing the investment of public funds under City Treasurer control To achieve a reasonable rate of return within the parameters of prudent risk management while minimizing the potential for capital losses arising from market changes or issuer default.
The City Treasurer controls all investable funds including, but not limited to, the General Fund, special revenue funds, debt service funds, capital project funds, enterprise funds and trust and successor agency funds accounted for in the Annual Comprehensive Financial Report. The City consolidates cash and reserve balances from all funds except cash in certain restricted and special funds to maximize investment earnings and increase efficiencies for investment pricing, safekeeping and administration. The City allocates investment income to various funds based on their respective participation and in accordance with generally accepted accounting principles.
Attachments:
Attachment 1 – Quarterly Investment Report for Quarter Ended December 31, 2023 cc: City Manager Eric J. Levitt
Treasurer’s Report – Quarter Ended December 31, 2023
February 6, 2023 - Page 2