City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 08/09/2022
Subject: Annual Investment Report Review
RECOMMENDED ACTION:
Accept the City’s annual investment report for the period ending June 30, 2022.
BACKGROUND:
The following report is the City’s annual investment report for the period ending June 30, 2022.
This report summarizes the City’s investment policy that was adopted by the Council in 1996 and amended in 2003, shows the average interest rate for the last 12 months, and lists individual investments with their balances and interest rates as of the end of the year. The interest rates that are shown on the report are for the 12 month period or quarter then ended.
The City maintains money in both shorter-term daily liquidity investments, such as LAIF, and longer-term investments held at the Bank of New York. The LAIF investment allows the City to earn interest, which is normally lower than the interest from longer-term investments, while the funds remain liquid and can quickly be transferred from time to time to cover operational costs of the City throughout the year. The investments held at The Bank of New York have longer durations, as such, our goal is to not access the funds for liquidity purposes. It is not uncommon during federal tightening cycles for money market funds and pools similar to LAIF to have yields that surpass longer duration portfolios such as the investments held at the Bank of New York. Nevertheless, this occurrence is typically transitory in nature and although market dependent, we expect the longer-term investments to eventually pass the LAIF yield in the near future.
Each year, the City analyzes the amount of funds needed short term to cover operating costs and projected capital costs. If there is any excess, these funds are transferred to Bank of New York for a longer-term investment. On August 8, 2022, $5,000,000 was transferred from the shortterm LAIF account to the longer-term Bank of New York account.
Attachments:
1. Investment report for Council 06.2022