August 19, 2025
Finance Department
DATE: August 19, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Emily Combs, 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, Documentary Transfer Tax Report, and Other
Post-Employment Benefits (OPEB) and Pension Report
for the Month of June 2025
FINANCIAL IMPACT: There is no fiscal impact for receiving this item.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
City staff is requesting that the City Council receive the City’s Investment and Cash Balance Report, Monthly
Overtime Reports, Documentary Transfer Tax Report,
and Other Post-Employment Benefits (OPEB) and
Pension Report for the month of June 2025.
RECOMMENDED ACTION:
RECEIVE the City’s Investment and Cash Balance
Report, Monthly Overtime Reports, Documentary
Transfer Tax Report, and Other Post-Employment
Benefits (OPEB) and Pension Report for the month of
June 2025 – Finance Department (Emily Combs 510-
620-6740).
AGENDA
REPORT
August 19, 2025
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 City and conforming to all state and local statutes governing the investment of public funds. In accordance with California Government Code Section 53646 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 quarterly on other investments.
The Investment and Cash Balance Report is a monthly report of the City’s pooled cash balance which includes 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 (Attachment 1).
The Portfolio Management Report details the monthly bank and market balances of permitted investments under the City’s Investment Policy. Allowable Investments include the Local Agency Investment Fund (LAIF), CalTrust, money market, agency bonds, certificates of deposits, and corporate notes, as per California Government Code Section 53601.
This report incorporates the restrictions added by the City Council at their Special Meeting held on April 30, 2024. The City Council adopted recommendations for socially responsible investments on December 3, 2024 (Resolution #145-24) to avoid funding industries associated with violence, war, oppression, and apartheid. An update was provided on April 15, 2025, and further updates will be given if there are significant investment changes.
The Federal Reserve’s (Fed) target range for the federal funds rate is currently 4.25 percent to 4.50 percent. The Fed has maintained this rate range since December 2024. The Federal Open Market Committee (FOMC) voted to hold the federal funds rate steady at its meeting on June 17-18, 2025. The Fed is closely monitoring economic data, including inflation and the potential impact of tariffs, before making any further adjustments to monetary policy. While the Fed is currently maintaining a wait-and-see approach, investors are anticipating potential rate cuts later in the year. The next FOMC meeting is scheduled for July 29-30, 2025, where policymakers will evaluate the latest economic data and decide on the appropriate monetary policy stance.
Overtime Reports
The overtime reports for the month of June 2025 provides a comparative summary of budgeted overtime to actual overtime usage by department for miscellaneous and sworn staff. Year-over-year and month-over-month totals are included for sworn staff (Attachment 2 and 3).
August 19, 2025
Documentary Transfer Tax
On June 24, 2024, City Council requested monthly updates of the Transfer Tax received by the City of Richmond from Contra Costa County for the sale of properties in Richmond. This revenue stream is volatile and can vary significantly month-to-month, ranging from a low of $300,000 to upwards of $3 million, depending on the number and size of property sale transactions.
In July 2025, the City received the documentary transfer tax data report from the County which identified that the tax revenue for June 2025 would total $538,589 (Attachment 4).
Other Post-Employment Benefits (OPEB) & Pension Report
The City is permitted to pre-fund its future Pension and Other Post-Employment Benefits (OPEB) costs in accordance with the OPEB policies. These funds are invested following the policies’ funding objectives and guidelines. The City manages a Section 115 Combination Trust for City-OPEB and Pension administered 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 contains a diversified portfolio of investments consistent with the objectives and liquidity requirements of the Trust.
On April 22, 2025, the City Manager requested monthly updates to the City Council on the returns of the OPEB and Pension accounts. The City operates two OPEB plans: the Richmond Police Officers’ Association (RPOA) Plan administered by CalPERS in a California Employers’ Retiree Benefit Trust (CERBT), and the City Plan administered by Public Agency Retirement Services (PARS). In May 2024, PARS was also assigned to administer the Pension account. The City receives monthly account statements for the PARS accounts, while the CalPERS account statement is received quarterly. As these statements are received after the period closes, the amounts are reported on a delayed timeframe.
In May 2025, the PARS OPEB account reported a gain of $1,493,044.56 for a rate of
2.81 percent. The 3 month return rate is 0.21 percent, and the annualized return rate for FY 2024-25 is 7.10 percent based on 11 months of activity. The PARS Pension account reported a gain of $46,711.32, for a rate of 1.13 percent. The 3 month return rate is 0.29 percent, and the annualized return rate for FY 2024-25 is 5.15 percent based on 11 months of activity.
CalPERS CERBT statements are reported quarterly; the next statement will be available in August 2025. As of March 2025, the CalPERS CERBT account reported quarterly earnings of $170,517.48, for a 3-month return rate of 1.37 percent, and the annualized return rate for FY 2024-25 is 4.99 percent based on 3 quarters of activity. (Attachment 5).
August 19, 2025
DOCUMENTS ATTACHED:
Attachment 1 – Investment and Cash Balance Report for June 2025 Attachment 2 – Overtime Report for June 2025
Attachment 3 – Overtime Public Safety Report for June 2025 Attachment 4 – Documentary Transfer Tax Report for June 2025 Attachment 5 – Other Post-Employment Benefits and Pension Report for June 2025