1 McKay, Ann Marie CC
Subject: Consent 7 Monthly Treasurer's and Investment Report (September 2025) From: Parisi, Laura CT <[email protected]>
Sent: Monday, November 17, 2025 4:58 PM
To: Kiff, Dave CM <[email protected]>
Cc: McKay, Ann Marie CC <[email protected]>
Subject: Consent 7 Monthly Treasurer's and Investment Report (September 2025) VIA BCC: City Council
This StaƯ Report was supposed to be a Treasurer’s Report which is required by state law. As City Treasurer, I think that the City Manager’s opinion within the body of the Agenda Report blurs the public information in two ways. First, it does not clearly state that no additional cash is generated by an investment by using a diƯerent, but higher, yield calculation and second, the 2025 Investment Policy stated that the treasurer selected which yield calculation would be utilized. I think that it is misleading to change the method of calculating yield without restating the prior periods. For this reason, the topic of which yield calculation method would be the one used by Laguna Beach was covered approximately 10 years ago by the Investment Status Committee. The treasurer and the committee opted to report the Current Yield calculated by the custodial bank. The average of the Current Yield has been published.
The 2025 Investment Policy has defined yield but the outside consultant chose to use a diƯerent method. The definition is; YIELD: The rate of annual income return on an investment, expressed as a percentage. There are nine methods of calculating yield identified by the California Debt and Investment Advisory Commission. The Treasurer shall select the method he or she thinks would be most informative to the reader of the report.
I have not had a member of the pubic, an auditor, CMTA, CDIAC or APT US&C question the decision to use Current Yield for the City of Laguna Beach. I think that it is still the most informative and consistent method of presenting yield to the reader of the treasurer’s report for the following reasons. a. It is commonly used and understood by cities and banks including the custodial bank. b. Current Yield more accurately reflects the cash the city will receive in the current budget year. c. Maintaining the same calculation made the investment income comparable on a year-over-year basis. d. Using the same yield calculation as the custodial bank allows for the use of more of the software features without additional consultant expenses.
Thank you,
Laura Parisi, CPA, CCMT
City Treasurer
City of Laguna Beach
[email protected]
Work (949)497-0327