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City Treasurer Overview
• The City Treasurer is an elected position and, by charter, is the custodian of all public funds belonging to, or under the control of, the City or any office, department, or agency thereof. As custodian of all public funds, the City Treasurer, with the cooperation and assistance of the Finance Department, receives all monies coming into local financial institutions.
• In order to maintain a good investment program, the City Treasurer must have a good cash flow analysis of funds coming into the City, as well as funds being paid out. The Treasurer can then place the funds in various legal investments that will yield the highest return to the City over the terms of the investments.
• The Treasurer independently reviews all banking and investment accounts, after which is provided a monthly report to the City Council that summarizes all cash and investment balances, investment transactions, and a reconciliation of all bank accounts
2024 Goals & Objectives
• Goal #1: Ensure that cash and investments are secure
Follow City's Investment Policy Calif. GC Sections 53600 through 53610 Report any sustained or repetitive non-compliance to City Council Advise and develop corrective action plans in collaboration with Director of Finance • Goal #2: Maintain liquidity for immediate cash flow needs Monitor cash flow needs as to avoid premature investment liquidation Maintain $3-5 million in city's checking account for payables and operations Transfer excess funds into money market/investment pools for higher yield • Goal #3: Achieve market returns and grow capital
Investment review calls with investment advisor to spotlight opportunities Build out a laddered portfolio to achieve higher yields and durations Monitor cash flow needs to avoid liquidating investments at a loss 3 What are Public Agency Investment Requirements?
1/Investment of Surplus :Government agencies must comply with California Government Code (GC) Section 53600 ✓Monthly (or quarterly) reports to the governing body outlining cash assets invested, investment types, purchases, sales, market conditions, and affirming agency projection of sufficient cash availability to meet operating needs. (GC Section 53607) ✓Annual Investment Policy update (GC Section 53646)
✓Compliance with GC Section 53600.3
❖ Prudent Investor Standard — Safeguarding of principal and liquidity ✓Compliance with GC Section 53600.5
❖ Safety of Principal
❖ Liquidity
❖ Yield
*Requirements include but are not limited to other governmental compliance and regulatory provisions.
0 0
0 Permitted Investments under GC Section 53601
Bonds issued by the local agency
US Treasury Notes, Bonds, BiII
State Treasury Notes & Bonds
Registered Treasury Notes & Bonds of other 49 states
Bonds of other local agencies within the state
Federal or US GSE's or "Agencies"
Banker's Acceptance (180 days, 40%, 30%)
Commercial Paper (270 days, A-1, 40%)
0 Trustee Held Funds (bond covenants)
0 Collateralized Securities
Li Mortgage -Backed Securities (20%, AA)
0 F Supranationals (30%, AA)
0 Public Bank Securities
0 0
Shares of Beneficial Interest with JPA (30%)
County Pool — Government Code Section 27133
- Government Code Section 16429.1.(Limited)
Li smertiticate of Deposits (:3U"/o)
0 Repurchase Agreements (92 days, 20%)
0 Medium Term Notes (5 years, A, 30%)
0 Shares of Beneficial Interest (20%)
0 lent insured commercial banks and money markets
0 Ither investments as approved by board/council of
agency allowable under Calif. Government Code
Section 53600
Investment Policy Compliance
INVESTMENT POLICY COMPLIANCE MATRIX
Authorized Investment Category
LIS Treasury Bills, Notes and Bonds
Federal Agency Obligations
Negotiable CDs/Time Deposits
Non -Negotiable CDs/Time Deposits
Money Market Funds
PassbookSavings/Demand Deposits
Commerical Paper
Bankers Acceptances
Local Agency Investment Fund (LAIF)
Orange County Investment Pool
CalTrust (IPA)
Calif. Asset Mgmt Program (CAMP)
Repurchase Agreements (Repos)
City's Investment Policy Compliance Requirement
Maximum
Maturity
5 years
5 years
5 years
5 years
N/A
N/A
270 days
180 banker days
N/A
N/A
N/A
N/A
1 year
Max Percentage
0f Portfolio
N/A
30%
30%
40%
20%
N/A
25%
30%
N/A
N/A
N/A
N/A
30%
Max Investment
in One Issuer
N/A
1596
$ 250,000
$ 250,000
10%
N/A
10%
3096
N/A
N/A
N/A
N/A
N/A
Positions Held
Yes
Yes
No
Yes
Yes
No
No
No
Yes
No
No
Yes
No
City's current investment status...
Total
Investment
18,936,676
5,396,504
Data as of February 29, 2024
3,598,420
158,510
Maximum
Maturity
In -Compliance
Max Percentage
of Portfolio
Non -Compliance
Max Investment
in One Issuer
5 years
60.1%
$ 6,748,048
5 years
17.1%
4.995
N/A
N/A
N/A
5 years
11.4%
$ 249,000
1 month
0.595
0.595
N/A
N/A
N/A
16,572 I 1 month
3,409,094
N/A
N/A
N/A
0.1%
N/A
N/A
N/A
0.1%
N/A
N/A
N/A
N/A
N/A
N/A
1 month 18.8%
10.895
N/A
N/A
N/A
Treasury Note
Activity
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Matured
Sold 5/23
Investment Activity (since Jan 2023)
Invest Type TIssuing Institution
Treasury Note
Fed Agency
Fed Agency
Bank CD
Bank CD
Bank CD
Bank CD
Bank CD
Treasury Note
Treasury Note
Treasury Note
Bank CD
Treasury Note
US Treasury
Fed Home Loan
Fed Nat'l Mrtg
BMO Harris Bk
CIBC Bank USA
Greenstate CU
Cross River Bank
Dort Financial
US Treasury
US Treasury
US Treasury
US Treasury
First Bank Berne
US Treasury
Treasury Note US Treasury
Annual Yield
3.90%
3.85%
4.25%
4.60%
4.60%
4.80%
4.65%
4.60%
4.00%
4.00%
3.99%
3.99%
4.15%
Face Value
1,118,000
1,520,000
1,635,000
244,000
244,000
249,000
244,000
247,000
1,500,000
1,500,000
1,000,000
$ 1,000,000
$ 244,000
Cost Basis
1,000,034
1,497,746
1,499,935
244,000
244,000
249,000
244,000
247,000
1,486,021
1,504,121
1,041,581
$ 1,049,509
$ 244,000
Duration
3.5 years
4.7 years
2.4 years
3.0 years
3.0 years
3.0 years
3.0 years
3.0 years
4.4 years
4.4 years
4.7 years
4.8 years
3.5 years
2.05% $ 10,274,000 $ 9,999,930 1.5 years
3.90%
$ 1,118,339
$ 1,000,034
3.5 years
Purchase Date
Maturity Date
2/6/2023
2/6/2023
2/7/2023
5/16/2023
5/16/2023
5/17/2023
5/19/2023
5/24/2023
1/24/2024
1/24/2024
1/24/2024
1/24/2024
2/1/2024
3/29/2022
2/6/2023
7/31/2026
10/1/2027
6/17/2025
5/15/2026
5/15/2026
5/18/2026
5/19/2026
5/26/2026
5/31/2028
6/30/2028
9/30/2028
10/31/2028
8/9/2027
8/31/2023
7/31/2026
Performance Trends (Feb -2020 to Fib -2024)
Cash in Bank
LAIF & CAMP
Other Investments
Total Cash & Invests
# of Investments
CAMP Yield
LAIF Yield
Other Invests Yield
Weighted Avg Yield
Trig 12 mos earnings
Feb -2020
Feb -2021
$ 4,400,420 $ 11,876,446
$ 17,424,907 $ 10,093,324
$ 493,614 $ 1,498,923
$ 22,318,941 $ 23,468,694
4 N/A
1.91%
2.00%
1.92%
$ 249,664
5 N/A
0.41%
2.25%
0.75%
$ 178,534
Feb -2022
Feb -2023
Feb -2024
$ 12,046,164 $ 7,892,084 $ 2,891,066
$ 22,647,767 $ 3,560,243 $ 3,425,666
$ 1,934,657 $ 32,167,673 $ 28,090,110
$ 36,628,587 $ 43,620,001 $ 34,406,842
8 N/A
0.28%
0.84%
0.32%
$ 66,858
25 4.73%
2.62%
2.31%
2.80%
$ 704,125
33 5.50%
4.12%
2.73%
3.35%
$ 985,535
Cash & Investment Trends (2020 to 2024)
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
Cash & Investment Trends
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
9 2020
2021
2022
f 2023
• 2024
Projected Cash Balances 2023 - 2028
Projected Cash Balances
50,000,000
45,000,000
40,000,000
35,000,000
30,000,000
25,000, 000
20,000,000
15,000,000
10,000,000
5,000,008
5 -Year Cash Flow
1 osmint
..
Jul -23 Sep -23 Nov- Jan -24 Mar- May- Jul -24 Sep -24 Nov- Jan -25 Mar- May- Jul -25 Sep -25 Nov- Jan -26 Mar- May- Jul -26 Sep -26 Nov- Jarr27 r- May- Jut -27 Sep -27 Nov- Jan -28 Mar- May - 23 24 24 24 25 25 25 26 26 26 1 27 27 28 2S
Cash by Fund Types (Feb -2022 to Feb -2024)
Available Cash by Fund Type (excl. Fiscal Agent)
.. .... .....
" • aN
...............
..............
0,1 �b'L aL'L'1 �1.� 1`L �`1� �•y1 q'b3' 4l� �•L'b.�'� �'L' qL''� qb�'�'L I, dL'� �•UA a,�4�
'b t L 1 b fi b ti s scefi C�'L tti `L fi .S s i`1
Cash & Inv (GL) General Fund * Other Funds*
Trend Line (Total Cash & Inv) Trend Line (General Fund) $50,000,000
$47,500,000
$45,000,000
$42,500,000
$40,D33,33D
$37,500,000
$35,000,000
$32,500,000
$30,000,000
$27,500,000
$25,033,303
$22,533,330
$20,000,000
$17,500,000
$15,000,330
$12,533,330
$10,033,000
$7,503,000
$5,000,000
$2,500,000
Investment Earnings (Feb -2022 to Feb -2024)
$1,650,966
$1,966,969
$950,960
$ 966,6W
$859,660
$869,969
$ 750,966
$790,900
$ 659,969
$ 669,969
$ 550,900
$569,969
$450,969
$466,966
$ 350,966
$360,966
$ 250966
$290,966
$150,966
$190,966
$50,000
$-
Cumulative Earned Income (TTM)
Feb -22 Mar -22 Apr -22 May -22 Jun 22 Jul -22 Aug -22 Sep -22 Oct -22 Nov -22 Dec -22 Ja n-23 Fed -23 Mar -23 Apr -23 May -23 Jun -23 Jul -23 Aug -23 Sep 23 Dc[ -23 No,r23 Dee- 23 Ja n-24 Feb -24 LAIF 554,442 $64x442 $59,279 559,279 $59,279 $45,437 $45,437 $45,437 $29,586 $29,586 $29,586 516,026 $16,026 516,626 5271 5271 5271 $372 5372 5372 $465 5465 $465 $546 $546 CAMP 5- 5- 5- 5- 5- 5- 5- $- 5- 5- 5- 522,400 $44,217 $58,659 $65,826 $68,306 $92,511 $110,922 $115,140 $133,469 5155,160 $162,285 $169,644 $168}62 $166544 t OTHER 512,388 513,173 $58,776 5104,379 5149,983 5195586 5241439 5300,318 5357,22 $414,345 $471,167 5527,999 $599,113 $679,236 $696,201 $729,103 $75E,194 $183284 $310,375 $806,328 $804253 $8012,138 $800,013 $791,888 5798,955 I -4 -TOTAL 566,858 567,618 5118,059 5163,670 $204,294 5241,79 5286,718 5358,638 5413,734 $487573 $645,066 5610,872 $794,125 5794,379 $868524 $844,743 $395,125 $941,933 5973,455 $935,633 $992,659 $981,368 $987,707 $987,810 5985535
Investment Yields (Feb -2022 to Feb -2024)
f 0036
37336
35036
5.2936
5.0036
4.7336
4.50%
4.2336
4.00%
3.7596
35036
3.2596
10036
27596
25036
22596
20036
L7596
L5036
L2596
10036
0.7596
O 5036
O 2936
0.0036
I Lf IF
I CAMP
OTHER
I+ WAY
Investments Performance Yield
-
•
Feb -22 Mar -22 Apr -22 May -22 Jun -22 Jul -22 Aug -22 Sep -22 Oct -22 Nov -22 Dec -22 Jan -23 Feb -23 Mar -23 .Apr -23 May -23 Jun -23 Jul -23 Aug -23 Sep -23 Oct -23 Nov -23 Dec -23 Jan -24 Feb -24
0.28% 037%. 0.52% 0.68% 0.86% 1.09% 1.28% 1.51% 1.77%. 2.01% 2.17% 2.43% 2.62% 2.83% 2.87% 2.99%. 3.17% 3.31% 3A3% 3.53% 3.67% 3.84% 3.93%. 4.01% 4.12%
0.06% 0.00% 0.00% 0.0096 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.53% 4.7396 4.80% 4.97% 516% 5.24% 531% 5.52% 55596 556% 5.5856 5.55% 5.54% 5.50%
0.0696 189% 1.89% 189% L89% 1.8936 13596 1.9496 1.94% 2.3736 2.3736 137% 2.51% 231% 2.52% 25736 2.2536 234% 195% 2.09% 2.64% 2.5456 26436 2.55% 27336
0.32% 1.89% 1.89% 1.89% 1.89% 1.8996 1.88% 2.4096 2.43% 238% 2.38% 2.92% 2.8096 2.8196 2.63% 2.66% 2.97% 2.88% 153% 15996 3.0696 3.06% 3.06% 3.48% 335%
2024 Next Steps
• Continue investment consultation with advisor Kosmont Services Monitor cash and investment balance to maintain adequate available cash of $3 million to $5 million
Seek opportunities for new investments at highest available yield as existing investments mature or cash balances increase —Update 2024 Investment Policy in the July timeframe
Questions?