STAFF REPORT
City of Lancaster
CC 4
5/28/2024
JC
Date:May 28, 2024
To: Mayor Parris and City Council Members
From: George N. Harris II, Finance Director
Subject:Monthly Reports of Investments – April 2024.
Recommendation:
Accept and approve the April 2024 Monthly Report of Investments as submitted.
Fiscal Impact:
None
Background:
Each month, the Finance Department prepares a report listing the investments for all separate entities under the jurisdiction of the City as identified in the City’s Comprehensive Annual Financial Report.
Portfolio Recap
April April 2024 March 2024
Total Portfolio 3.49% 3.53%
Cal Class 5.40% 5.42%
Cal Class-Enhanced 5.41% 0.00%
Local Agency Investment Fund 4.30% 4.12%
Total Pooled Portfolio Balance: $123,737,461 $120,534,632 The portfolio balance increased from March to April by $3,202,829 or 2.66%. Significant Revenues for April include $1,914,314 in Sales & Use Tax, $1,477,331in Measure LC Sales Tax, and $ 11,556,751 i n P r o p e r t y T a x e s . Expenses include $ 17,870,318 f o r O p e r a t i n g & Miscellaneous, $760,040 for Debt Services, and $4,512,289 for Payroll & Benefits.
The City’s temporary idle cash, those funds not immediately needed to pay current bills and not governed by bond indentures or bond resolutions, is invested by the City’s adopted 1 6
4 5
Investment Policy. The City Council reviewed this policy regularly, with the latest policy adopted on February 13, 2018, by Resolution No. 18-06.
The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible within the guidelines of this Investment Policy. The City attempts to achieve the highest yield obtainable through a diversified portfolio only after meeting the criteria established for safety and liquidity in that order. The principal investment objectives of the City are:
1. Preservation of capital and protection of investment principal;
2. Maintenance of sufficient liquidity to meet anticipated cash flows;
3. Attainment of a market rate of return;
4. Diversification to avoid incurring unreasonable market risks and;
5. Compliance with the City’s Municipal Code and with all applicable City resolutions, California statutes, and Federal regulations.
The City’s portfolio is a short-term and intermediate-term fixed-income portfolio. The maximum maturity of any investment is 5 years, with consideration of anticipated cash flow requirements and known future liabilities. The City contracts with an investment advisory service (Insight Investment) to assist in the effort to maximize the returns of the City portfolio. The City’s investments include publicly traded Treasury notes, Treasury Bills, Federal Agency Investments, Time Deposits, and Local Agency Investment Fund (LAIF) under the auspices of the State Treasurer for investment. Funds invested in LAIF are available within 24 hours, and other investments are available upon maturity at full face value. These investments enable the City to meet its expenditure requirements for the next six months, as required by state law.
The City’s investment procedures are governed by Sections 53600 et seq. of the California Government Code. The Investment Policy (a copy of which is available in the Finance Department or from the City Clerk) has placed additional requirements on the City's authorized investments, and all investments listed on the attached report adhere to these requirements.
Attachment:
A. Monthly Report of Investments – April 2024