CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
8/22/2022
1 SUBJECT:
Quarterly Treasurer’s Reports for the quarter ending June 30, 2022.
RECOMMENDED ACTION:
Review and accept the Quarterly Treasurer’s Reports for the quarter ending June 30, 2022.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 738-7402
[email protected] <mailto:[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 June 30, 2022 is $58,174,597 of which $17,451,787 is placed with the State Controller’s Local Agency Investment Fund (LAIF), $8,274,492 is placed with US Bank, $342,510 is in the PARS Trust, $232,074 is placed in Bank of New York (BNY Mellon), $3,001,260 is in Roy Davies Trust, $26,720,195 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 $9,258,918, from $48,915,918 this reporting quarter ending June 30, 2022, compared to last quarter ending March 31, 2022. The decrease is primarily attributable to normal operating payments to vendors, payroll and annual debt service payments net of normal revenue receipts in the last quarter of the year.
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 Pacifica City Council 2
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ending June 30, 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 June 30, 2022, the portfolio contains sufficient liquidity to meet 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 4th Quarter Treasurer’s Report will not change the City’s cash position as of the end of the quarter ending June 30, 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 06-30-22(PDF)
Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (PDF)