CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
3/10/2025
1 SUBJECT:
Quarterly Treasurer’s Reports for the quarters ending September 30 and December 31, 2024.
RECOMMENDED ACTION:
Review and accept the Quarterly Treasurer’s Reports for the quarters ending September 30 and December 31, 2024
STAFF CONTACT:
Marisol Gómez, Director of Finance and Administrative Services (650) 501-0257
[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 invesments 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 presented in the reports shows the current market value of the investment as of September 30 and December 31, 2024 accordingly. 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.
Pacifica City Council 2
March 10, 2025
Quarter 1 Treasurer’s Report
The City’s cash and investment portfolio, at fair market value, as of September 30, 2024, is $57,829,902, of which $6,937,609 is in the Tri Counties Bank operating accounts, and $3,445 in Petty Cash held by various departments. $14,652,362 is placed with the State Controller’s Local Agency Investment Fund (LAIF), $2,702,462 is in Roy Davies Trust, $395,727 is in the PARS Trust, $142,259 is placed in Bank of New York (BNY Mellon), and $32,996,039 is placed with US Bank. 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 decreased by $14,399,225, from $72,229,128, this reporting quarter ending September 30, 2024, compared to the last quarter ending June 30, 2024. The decrease is primarily attributable to major revenue receipts lagging in first quarter, year-end expenditures, and normal operating payments to vendors, payroll, and annual debt service payments.
Quarter 2 Treasurer’s Report
The City’s cash and investment portfolio, at fair market value, as of December 31, 2024, is $67,738,506, of which $9,124,868 is in the Tri Counties Bank operating accounts, and $3,445 in Petty Cash held by various departments. $27,856,265 is placed with the State Controller’s Local Agency Investment Fund (LAIF), $2,702,361 is in Roy Davies Trust, $389,276 is in the PARS Trust, $164,533 is placed in Bank of New York (BNY Mellon), and $27,497,758 is placed with US Bank.. 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 $9,908,605, from $57,829,902, this reporting quarter ending December 31, 2024, compared to the last quarter ending September 30, 2024.
The increase is primarily attributable to major revenue receipts such as property tax revenues and sewer service charges are remitted by County in December.
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 both quarters. 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. At the end of each reported quarter, the portfolio contained 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 and 2nd Quarter Treasurer’s Reports will not change the City’s cash position as of the end of each quarter.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item furthers the City’s efforts toward Enhance 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.
Pacifica City Council 3
March 10, 2025
ORIGINATED BY:
Finance Department
ATTACHMENT LIST:
Attachment 1 - Treasurer's Report 9-30-2024 (PDF)
Attachment 2 - Treasurer's Report 12-31-2024 (PDF)
Attachment 3 – City of Pacifica Glossary of Cash and Investment Terms (PDF)