City of Santa Rosa
Investments Overview
LONG TERM FINANCIAL POLICY AUDIT
SUBCOMMIT TEE
FEBRUARY 13, 2025
VERONICA CONNER
BUDGET & FINANCIAL ANALYSIS MANAGER
City of Santa
Rosa
Investments
Overview
2 Investment Overview
Investment Policy & Objectives
Monthly Investment Report
Questions
3 Investments Overview
• City cash, in excess of operational / short-term need, is held in investments managed by PFM (Public Financial Management) to earn interest and benefit the City
• Cash includes any bond proceeds, cash-funded capital projects, and reserves for all funds (General Fund, Enterprise, Special Revenue Funds, and Housing Authority)
• City staff balances immediate cash needs between the City’s operating bank account and investments
• Invest PFM when experiencing a surplus
• Liquidate when large bills are due (debt service, annual CalPERS payment) 4 Investment Policy
• The City’s Investment Policy was adopted in January 1985 and has been updated and amended at Council fifteen times, most recently July 2023. • The Investment Policy ensures that public funds are made in a safe and responsible manner.
• The City invests in permitted securities consistent with California Government Code, and within l sector allocation and maturity restrictions that reflect the City’s risk tolerances.
• Investment policy can be found here: https://www.srcity.org/176/Investments Investment Objectives
The City’s Investment objectives in order of priority are:
• Safety - Safety of principal is the foremost objective of the investment program.
Investments for the City will be made in a manner that seeks to ensure the preservation of capital in the overall portfolio.
• Liquidity - The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. • Yield - The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints, liquidity needs, and cash flow characteristics of the portfolio. 5 6
Monthly Investment Report
• Investment accounts are reconciled monthly and a report is drafted to be shared with Council and the public, posted online:
www.srcity.org/176/Investments
• Overnight investment vehicles (savings accounts, money market funds, and CA state investment pool)
• Portfolio of individual fixed income securities (operating and bond proceeds)
7 Portfolio
Summary
displays the level of
diversification by
investment type and
credit quality
8 Maturity
Summary
demonstrates the
level of diversification
by maturity date
ensuring the City has
funds to meet its cash
flow needs
9 Portfolio Yield
Summary
a historical record of
the City’s overall
fund balance and
earning rates.
10 Questions?