CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
5/11/2026
1 SUBJECT:
Quarterly Treasurer’s Report for the quarter ending March 31, 2026 RECOMMENDED ACTION:
Review and accept the Quarterly Treasurer’s Report for the quarter ending March 31, 2026.
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 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 presented in the report shows the current market value of the investment as of March 31, 2026, 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 is equal to the book and par value.
Pacifica City Council 2
May 11, 2026
The City’s cash and investment portfolio, at fair market value, as of March 31, 2026, is $54,383,241, of which $4,549,708 is in the Tri Counties Bank various accounts, and $2,250 in Petty Cash held by various departments. $44,199,658 is placed with the State Controller’s Local Agency Investment Fund (LAIF), $2,501,880 is in Roy Davies Trust, $836,970 is in the PARS Trust, $133,802 is placed in Bank of New York (BNY Mellon), and $2,158,974 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 $1,286,741, from $55,669,982 reported in the last quarter ending December 31, 2025 to this reporting quarter ending March 31, 2026. The $1.2 million decrease of cash and investment position is a combination of factors: receiving $15.6 million in cash receipts from various revenue sources, and the expending of $16.8 million in expenditures broken down as follows: $9.0 million in employee payroll and benefits, $7.2 million in vendor payments by check, and $0.6 million in wire payments to vendors and purchase card services.
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 the quarter, the portfolio contained sufficient liquidity to meet the next six months of expected expenditures.
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, 2026.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of the 3rd Quarter Treasurer’s Report is consistent with the following Council adopted Goals:
• Enhance organizational and fiscal stability: Preparation and presentation of the Quarterly Treasurer’s Report support prudent cash management, financial oversight, and adherence to the City’s adopted Investment Policy and fiscal controls. • Broaden public communications and collaboration: Filing of the Quarterly Treasurer’s Report promotes transparency and accountability by providing the City Council and community with timely information regarding the City’s cash position and investment activity.
FISCAL IMPACT:
There is no fiscal impact associated with this report, as it is retrospective in nature and reflects prior-period activity; however, the Quarterly Treasurer’s Report outlines fiscal transactions that directly affect the City’s financial standing.
ORIGINATED BY:
Pacifica City Council 3
May 11, 2026
Finance Department
ATTACHMENT LIST:
Attachment 1 - Treasurer's Report 3-31-2026 (PDF)
Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (PDF)