CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
10/14/2024
1 SUBJECT:
Quarterly Treasurer’s Reports for the quarter ending June 30, 2024 RECOMMENDED ACTION:
Review and accept the Quarterly Treasurer’s Reports for the quarter ending June 30, 2024.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 738-7402
[email protected]
Lucy Xie, Deputy Finance Director
(650) 501-6014
[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. The par value represents the original issue amount for securities or investments purchased. There were no securities or investments held by the City that 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 June 30, 2024. 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 is equal to the book and par value.
Pacifica City Council 2
October 14, 2024
The City’s cash and investment portfolio, at fair market value, as of June 30, 2024, is $72,229,128, of which $16,483,677 is placed with the State Controller’s Local Agency Investment Fund (LAIF), $29,872,384 is placed with US Bank, $375,291 is in the PARS Trust, $248,887 is placed in Bank of New York (BNY Mellon), $2,702,353 is in Roy Davies Trust, $22,542,716 in the Tri Counties Bank operating accounts, and $3,445 in Petty Cash held by various departments. Although operating checking accounts are not typical investment accounts, the City includes those balances as part of this report to show the total cash on hand for the quarter.
The City's investment portfolio increased by $5,300,446, from $66,928,681 in the quarter ending March 31, 2024, to $72,229,127 by June 30, 2024. This increase is due to a combination of factors, including a second allocation of the property tax revenues received in the last quarter of the year, additional interest revenue accrued on CDARS accounts, better-than-anticipated revenue receipts, and lower-than-budgeted expenditures. Additionally, there were some payment delays due to the implementation of the new financial system and payment approval workflow, leading to lower-than-budgeted cash outflows, which further contributed to the positive cash flow and portfolio increase. Additional adjustments will occur in the next few weeks as part of the fiscal year-end process.
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, 2024.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item furthers the City’s efforts toward Organizational and Fiscal Stability.
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 06-30-2024 (PDF)
Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (PDF)