City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 05/09/2023
Subject: Quarterly Investment Report Review
RECOMMENDED ACTION:
Accept the City’s quarterly investment report for the period ending March 31, 2023.
BACKGROUND:
The following report is the City’s quarterly investment report for the period ending March 31, 2023. 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 period. 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.
Section 115 Trust
In October 2022, $1,135,396.65 was deposited into the City’s Section 115 Trust with PARS.
Below is a table showing the return on investment of these funds:
Initial Deposit –
10/2022
Current Balance –
03/2023
Earnings Rate of
Return
$1,135,396.65 $1,170,229.49 $34,832.84 3.09%
Attachments:
1. Investment report for Council 03.2023