CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
8/8/2022
1 SUBJECT:
Quarterly Treasurer’s Reports for the quarter ending March 31, 2022.
RECOMMENDED ACTION:
Review and accept the Quarterly Treasurer’s Reports for the quarter ending March 31, 2022.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 738-7402
[email protected]
BACKGROUND/DISCUSSION:
The City Council adopted Administrative Policy 39 - Investment Policy to reflect current law and best practices in accordance with Government Code Section 53600 et seq. The policy provides guidelines for prudent investments and efficient cash management and requires the City to provide the governing body a report regarding the City’s investment activities on a quarterly basis to ensure “compliance” with the statement of investment policy.
The investment policies and practices of the City of Pacifica are strictly based on state law and prudent money management. The investment of funds for the City is directed to the goals of safety, liquidity, and yield, while meeting the cash flow needs of the City through a prudent investment of unexpended cash.
All funds are invested in accordance with the City’s Investment Policy and the authority governing investments set forth in the California Government Code, Sections 53601 through 53659. The investment policy for bond proceeds is contained in the relevant bond documents approved by the City Council at the time of the issuance of the debt.
As shown in the Treasurer’s Report (Attachment 1) the City’s investments are in external investment pools listed at cost, as well as its fair value, not amortized cost, in compliance with Governmental Accounting Standard Statement 31. The City’s cash and investment portfolio, at fair market value, as of March 31, 2022 is $49,114,592 of which $17,665,481 is placed with the State Controller’s Local Agency Investment Fund (LAIF), $7,972,615 is placed with US Bank, $387,273 is in the PARS Trust, $129,862 is placed in Bank of New York (BNY Mellon), $3,001,080 is in Roy Davies Trust, $19,941,420 in the Tri Counties Bank operating accounts, and $3,445 in Petty Cash held by various departments. The City included the checking account balances as part of the total investment report. Although checking accounts are not typical investment accounts, including those balances show the total cash on hand for the quarter.
The City’s investment portfolio decreased by $1,911,167, from $51,025,759, this reporting quarter ending March 31, 2022, compared to last quarter ending December 31, 2021. The slight decrease is primarily attributable to normal operating payments to vendors, payroll and annual debt service payments net of sales tax and other normal revenue receipts. The second Pacifica City Council 2
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installment of the Property Tax, the City’s largest revenue source will be remitted in the following quarter.
The Treasurer’s Report includes details of cash and investments which are held by institutions.
The report also summarizes the City’s cash position and distribution across funds for the quarter ending March 31, 2022. Historical cash flow trends are compared to current cash flow requirements on an ongoing basis to ensure the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all reasonable anticipated operating requirements.
As of March 31, 2022, the portfolio contains sufficient liquidity to meet at the next six months of expected expenditures by the City.
ALTERNATIVE ACTION:
There is no reasonable alternative to this informational item, as not accepting the 3rd Quarter Treasurer’s Report will not change the City’s cash position as of the end of the quarter ending March 31, 2022.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item furthers the City’s efforts toward Fiscal Sustainability.
FISCAL IMPACT:
There is no fiscal impact associated with this report, but Quarterly Treasurer’s Reports detail some of the fiscal activities that directly affect the City’s financial standing.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Attachment 1 – Treasurer's Report 03-31-22(PDF)
Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (PDF)