Agenda Item
City Council
Item #: 3.26. 5/10/2022 File #: 22-0285
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Richard A. Rohm, City Treasurer
Will Kolbow, Assistant City Manager/Administrative Services Director
1. SUBJECT
Monthly Treasurer’s Reports for January, February, and March 2022.
2. SUMMARY
Presentation of three monthly Treasurer’sReports to the City Council, after the end of the quarter covered by the reports.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.
6. DISCUSSION AND BACKGROUND
The City’scurrent Statement of Investment Policy has been adopted by the City Council of the City of Orange as Resolution 11340 and is in accordance with the California Government Code Sections 53600 et seq. Per the Investment Policy, three monthly investment reports are to be submitted to the City Council within 45 days following the end of the quarter.
As required by the City’s present Investment Policy, the City Treasurer’s report delineates all investments made by the City Treasurer for the City, its special funds, and the Successor Agency funds, by investment type and by broker.
The monthly Compliance Report certifying compliance of all investments with both the Government Code and the City’s Investment Policy is included.
The Investment Portfolio Statement accurately reflects all investments held by the City and its agents as of the end of the month. A reconciliation between total cash and investments and total cash per the General Ledger is also included.
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Item #: 3.26. 5/10/2022 File #: 22-0285
Summary of changes in Treasurer’s cash and investments:
Operating Cash & Investments (1)
Balance @ 12/31/2021 $137,748,672
Monthly Activity:
Cash Received 61,941,235
Cash Disbursed (54,202,377)
Balance @ 3/31/2022 $145,487,530
(1)Includes operating cash and investments (valued at cost). Does not include deposits with administrator, imprest cash, fiscal agent cash and investments, and deferred compensation.
Significant Monthly Cash Transactions:
January February March
Cash Receipts:
Sales Tax Revenue 4,447,739$ 5,702,121 4,116,648
Property Taxes 1,687,480 43,265 2,221,150
Cash Disbursements:
PERS Employee Benefits 674,424 660,027 665,786 Municipal Water District Purchase Water 1,335,357 574,487 475,545 RC Construction ServicesFire Headquarters 1,188,458 1,295,031 - South Coast Fire Equip. Fire Engine/Truck 921,291 - - City of Anaheim Street Widening - - 1,833,768 Ticor Title Company Affordable Housing - - 2,850,000 Excess Cash Receipts 2,424,975 - 4,263,688 Excess Cash Disbursements - 157,238 - LAIF Balance Beginning 48,200,000 55,677,000 53,200,000 Ending 55,677,000 53,200,000 56,900,000
Credit rating on investments
The HSBC medium term note in the portfolio has been downgraded by Standard and Poor’s(S&P) from “A”to “A-“,which is one level below the minimum “A”rating permitted in the investment policy. It should be noted S&P is the only credit rating agency that issued the downgrade. The other two major national rating companies of Moody’s and Fitch have maintained the same bond credit rating.
If a security is downgraded one notch below the quality required in the investment policy, it is considered acceptable to retain such downgraded security in the portfolio. If a security is rated two grades below the required minimum rating, it will trigger an automatic sale of such downgraded security. Staff will continue to monitor the downgraded HSBC investment.
7. ATTACHMENTS
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Item #: 3.26. 5/10/2022 File #: 22-0285
· Investment Report for January 2022
· Investment Report for February 2022
· Investment Report for March 2022
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