Agenda Report
Fullerton City Council
MEETING DATE: AUGUST 6, 2024
TO: CITY COUNCIL / CITY MANAGER
SUBMITTED BY: ELLIS CHANG, DIRECTOR OF ADMINISTRATIVE SERVICES PREPARED BY: TONI SMART, DEPUTY DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: TREASURER’S REPORT FOR QUARTER ENDED JUNE 30, 2024
SUMMARY
Treasurer’s Report for quarter ended June 30, 2024, fourth quarter of Fiscal Year 2023-24.
PROPOSED MOTION
Receive and file.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
Recommendation for Receive and file.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
Staff will use the information in this report to ensure continued oversight.
BACKGROUND AND DISCUSSION
The City’s operating portfolio ended the quarter with investments totaling $235.70 million. Investments include the following:
$125.30 million in the State’s Local Agency Investment Fund and a Local Government Investment Pool $94.74 million in U.S. Treasury Notes
$1.07 million in Federal Agency issues
$12.12 million in corporate notes
$0.72 million in money market funds
$1.73 million in municipal bonds
$0.02 million in cash.
The market yield equaled 4.889% on June 30, 2024 and the accrued interest income for the quarter totaled $940,026.35.
Cash balances attributable to various City Funds comprise the City’s temporarily idle cash invested in these portfolios. The invested cash is not discretionary and restricted to support each Funds’ purpose and thus not transferable between Funds. The City invests and draws upon these funds to support working capital as needed. The City of Fullerton bases its investment practices and policies on state law, prudent money management and the Statement of Investment Policy. The following lists the primary goals of these practices:
To protect the principal monies entrusted to this office To assure compliance with all federal, state and local laws governing 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. The Annual Comprehensive Financial Report accounts for these funds. The City will consolidate cash and reserve balances from all funds to maximize investment earnings and increase efficiencies for investment pricing, safekeeping and administration, except for cash in certain restricted and special funds. The City will allocate 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 June 30, 2024 cc: City Manager Eric J. Levitt
Treasurer’s Report – Quarter Ended June 30, 2024
August 6, 2024 - Page 2