November 19, 2024
Finance Department
DATE: November 19, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
Antonio Banuelos, Accounting Manager
Subject:
Investment and Cash Balance Report, Monthly Overtime
Reports, and Documentary Transfer Tax Report for the
Month of September 2024
FINANCIAL IMPACT: There is no fiscal impact due to this agenda item.
PREVIOUS COUNCIL
ACTION:
N/A
STATEMENT OF THE
ISSUE:
City staff is requesting that the City Council receive the City’s Investment and Cash Balance Report, Monthly
Overtime Reports, and Documentary Transfer Tax
Report for the month of September 2024.
RECOMMENDED ACTION:
RECEIVE the City’s Investment and Cash Balance
Report, Monthly Overtime Reports, and Documentary
Transfer Tax Report for the month of September 2024 –
Finance Department (Andrea Miller 510-620-6740).
DISCUSSION:
Investment and Cash Balance Report
It is the policy of the City of Richmond (City) to invest public funds in a manner which prioritizes safety and liquidity over yield while meeting the daily cash flow demands of the AGENDA
REPORT
November 19, 2024
City and conforming to all state and local statutes governing the investme nt of public funds. In accordance with California Government Code Section 53 646 and the City’s Investment Policy, the Director of Finance shall report monthly on the City's pooled and Bond funds to the City Manager and City Council and shall report quarter ly on other investments.
The Investment and Cash Balance Report is a monthly report of the City’s pooled cash balance which include General Fund, Special Revenue, Debt Service, Capital Projects, Enterprise, Internal service, Trust & Agency, Redevelopment/Successor Agency, and any other Funds investment activities under the direction of the City.
The Portfolio Management Report represents the monthly bank balances, along with market balances of permitted investments according to the City’s Investment Poli cy.
Investment in the Local Agency Investment Fund (LAIF), CalTrust, money market, agency bonds, certificates of deposits, and corporate notes are all allowable by California Government Code Section 536 01 and permitted according to the City of Richmond’s Investment Policy updated October 17, 2023.
This investment report was prepared after the April 30, 2024, special City Council meeting to add additional restrictions to the City of Richmond’s Investment Policy and reflects the portfolio as of September 30, 2024. Based on the policy direction received during the special City Council meeting, Council directed City staff to review and modify the City of Richmond’s Investment Policy to add additional restrictions eliminating the investment of City funds in industries that facilitate violence, war, oppression, and apartheid. City staff has been directed to present Investment Policy modifications and recommendations for socially responsible investments to Council for consideration which will occur at the December 3, 2024, City Council meeting.
The City is allowed to prefund future Pension and OPEB costs in accordanc e with the City’s Pension and Other Post-Employment Benefits (OPEB) policies. These funds are invested according to the polic ies funding objectives and funding guidelines. The City maintains a Section 115 C ombination Trust for City -OPEB & Pension administe red by Public Agency Retirement Services (PARS) and a California Employers’ Retiree Benefit Trust (CERBT) administered by California Public Employees’ Retirement System (CalPERS) for RPOA -OPEB. Each Trust is comprised of a diversified portfolio of investments consistent with the Trust’s objectives and liquidity requirements.
Overtime Reports
The overtime reports for the month of September 2024 provides a summary of budget - to-actual overtime usage by department for miscellaneous and sworn staff. Year-over- year and month-over-month totals are included for sworn staff.
Documentary Transfer Tax
At the June 2 4, 2024, City Council Budget Hearing, City Council requested monthly updates of the Transfer Tax received by the City of Richmond from the County for the sale of properties in Richmond. As this being the most volatile revenue stream for the
November 19, 2024
City, the amounts received month-to-month can vary from a low of $300,000 to a high of $3 million – a few large sales can widely swing the revenues.
In October, the City received data from the County for the September 2024 Transfer Tax which will total $424,251.
DOCUMENTS ATTACHED:
Attachment 1 – Investment and Cash Balance Report for September 2024 Attachment 2 – Overtime Report for September 2024
Attachment 3 – Overtime Public Safety Report for September 2024 Attachment 4 – Documentary Transfer Tax Report for September 2024