CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
11/13/2023
1 SUBJECT:
Quarterly Treasurer’s Reports for the quarter ending September 30, 2023.
RECOMMENDED ACTION:
Review and accept the Quarterly Treasurer’s Reports for the quarter ending September 30, 2023.
STAFF CONTACT:
Lucy Xie, Deputy Finance Director
(650) 501-6014
[email protected]
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 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 holds various investments in external investment pools and fiscal agent accounts and they are listed at par value, cost, as well as their fair value. Par value represents the original issue amount for securities or investments purchased. There were no securities or investments that are held by the City where they were purchased at a discount or premium so the par value is equal to the book value. The fair market value is the current market value of the investment as of September 30, 2023. In accordance with GASB 31, the State provides a factor that can be multiplied by the City’s share of the LAIF pool to determine the market value each quarter. Other than LAIF, the fair market value of all other investments are equal to the book and par value.
The City’s cash and investment portfolio, at fair market value, as of September 30, 2023, is Pacifica City Council 2
November 13, 2023
$62,046,081, of which $5,271,996 is placed with the State Controller’s Local Agency Investment Fund (LAIF), $134,631 is placed in Bank of New York (BNY Mellon), $32,680,379 is placed with US Bank, $724,607 is in the PARS Trusts, $2,702,594 is in Roy Davies Trust, $20,528,429 in the Tri Counties Bank, and $3,445 is in Petty Cash held by various departments.
The City’s investment portfolio decreased by $16,298,306, from the adjusted balance of $78,344,387 in the last quarter ended on June 30, 2023 to $62,046,081 in this reporting quarter ending September 30, 2023. 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 ending September 30, 2023. 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 September 30, 2023, 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 1st Quarter Treasurer’s Report will not change the City’s cash position as of the end of the quarter ending September 30, 2023.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item meets the City Council’s goal of Enhancing Organizational and 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:
Finance Department
ATTACHMENT LIST:
Attachment 1 – Treasurer's Report 09-30-23(PDF)
Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (PDF)