Item #05
Date: November 21, 2023
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Quarterly Investment Report for the Quarter September 30, 2023 Recommendation:
Receive and file the Quarterly Investment Report for the quarter ended September 30, 2023, 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 first quarter of fiscal year 2023-2024, ending September 30, 2023.
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 twelve months ended September 30, 2023.
As of June 30, 2023, the end of the previous quarter, the value of the City’s total portfolio was $16.65 million. Since that time, the value of the City’s portfolio has decreased by $1.13 million for an ending balance of $15.53 million as of September 30, 2023 for all funds. Per our Investment Policy, US Treasury Item #05
Securities are an approved investment for City funds. We are in a unique situation where interest rates for securities have increased significantly and are outpacing LAIF. We have invested $5 million in a laddered portfolio to capture increased interest earnings that will be evaluated on a quarterly basis to ensure the City has sufficient cash flow and liquidity needs are met. In addition, the City will continue to invest the remaining majority of funds into our LAIF account to maximize potential interest income. City staff continue to remain very conscience of costs and closely maintain the approved budget.
The funds are currently held as follows:
Cash in Banking Institutions $1,550,179.35
Local Agency Investment Pool (LAIF) $7,863,325.95
Yuba County Treasurer’s Investment Pool $985,160.33
Treasury Securities – Zion Bank $5,127,003.07
Notable transactions during the quarter that affected cash flows included:
Expenditures
• Salaries and benefits, $2.04 million
• 2021 Sewer Bond payment, $0.77 million
• Gateway Pacific Contractor, decommissioning sewer ponds, $0.78 million (to be reimbursed) Receipts
• SWRCB Grant reimbursement for sewer ponds, $.95 million • Sales tax receipts, $1.63 million
• Sewer service fees, $.96 million
Fiscal Analysis:
None. All investments held on September 30, 2023, conform to the California Government Code and the City’s Investment Policy.
Attachment:
1) Treasurer’s Report, Ending September 30, 2023