Item #04
Date: February 15, 2022
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Quarterly Investment Report for the Quarter Ended December 31, 2021 Recommendation:
Receive and file the Quarterly Investment Report for the quarter ended December 31, 2021, per the City of Marysville’s Investment Policy.
Rationale for Recommendation:
Per the Section 9 of the City of Marysville Investment Policy, the Finance Director shall submit a quarterly investment report containing detailed information on all securities and investments of the City to the City Council within 60 days following the end of the quarter covered by the report.
Background:
The purpose of the treasurer’s report is to update the City Council and the public on the status of the City’s cash balances and investments and highlight material changes from one period to another. The scope of this report covers the second quarter of fiscal year 2021-2022, ending December 31, 2021.
The City’s investment objectives are established by the City Council’s approved Investment Policy. The Investment Policy is guided and constrained by the California Government Code. City staff will periodically review and recommend adjustments to the Investment Policy to ensure ongoing compliance with the Government Code and to maximize investment flexibility as permitted. The current Investment Policy includes the following portfolio objectives:
1. Safety
2. Liquidity
3. Yield
Discussion and Analysis:
Attached is the quarterly Treasurer’s Report for the six months ended December 31, 2021.
As of September 30, 2021, the end of the previous quarter, the value of the City’s total portfolio was $10.34 million. Since that time, the value of the City’s portfolio has increased by $217,557.71 for an ending balance of $10.55 million as of December 31, 2021 for all funds. Included in the ending cash balance continues to be a misallocation of sales tax collected from a retailer outside of the City. We are expecting this error to be reversed by the California Department of Tax and Fee Administration (CDTFA) and for the City to pay these funds back. The current overpayment as this time is $704,028. In addition, Item #04
the City has moved most of current fund into our LAIF account to maximize potential interest income.
City staff continues to remain very conscience of costs and closely maintaining the approved budget.
The funds are currently held as follows:
Cash in Banking Institutions $928,373.86
Local Agency Investment Pool (LAIF) $8,660,150.56
Yuba County Treasurer’s Investment Pool $966,455.52
Notable transactions during the quarter that affected cash flows included:
Expenditures
• Salaries and benefits, $1.69 million
• SB1 Resurfacing Project, $400,308
• Interest payment for 2019 POB Bond, $299,128
Receipts
• Sales tax receipts, $1.38 million
• Cannabis business tax, $229,197
• Sewer service fees, $951,934
• Property Taxes & Special Assessments, $723,469
Fiscal Analysis:
None. All investments held on December 31, 2021, conform to the California Government Code and the City’s Investment Policy.
Attachment:
1) Treasurer’s Report, Ending December 31, 2021