HomeMy WebLinkAboutFin Investment Report 2012.06CITY OF M
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Agenda Item No: 3.d
Meeting Date: August 6, 2012
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Van Bach
Accounting Supervisor
City Manager Approval: ,4
SUBJECT: INVESTMENT REPORT FOR THE SECOND QUARTER 2012
RECOMMENDATION: ACCEPT INVESTMENT REPORT FOR THE QUARTER ENDING
JUNE 30, 2012, AS PRESENTED
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Pursuant to the State of California Government Code Section 53601, the City's investment policy, last
reviewed and approved by Council on June 4, 2012, required staff to provide the governing body a
report on the City's investment activities. The report outlines the investment activity for the preceding
quarter. Included on the report are the cost of each investment, the interest rates (yield), maturity
dates, and market value. Separate schedules are prepared for both the City and San Rafael as
Successor Agency to San Rafael Redevelopment Agency.
Presently, the City's funds that are not used for current operations are invested exclusively in the Local
Agency Investment Fund (LAIF), a State-run investment pool. As long as funds are invested in LAIF, a
quarterly report will be submitted to Council with balances and investment earnings. In addition, staff
will report any changes of more than 15% of the City's investment portfolio with 30 days of such
change.
During the upcoming fiscal year, the City does not anticipate using short-term borrowing in order to
accommodate fluctuations in its revenue stream. The City has traditionally employed tax and revenue
anticipation notes (TRANs), in order to compensate the irregular timing of property tax revenues. In
the current market for financing and investments, the fixed cost of this financing (estimated $80,000) is
not justified, given the other available funds that the City can use to assure adequate liquidity.
Staff will evaluate the City' cash requirements for FY12-13, and determine whether investments outside
of LAIF will be pursued. One of the considerations is that the cost of administering such transactions
must be offset by our expected additional return without compromising safety of liquidity.
Exhibit A is the monthly report provided by LAIF and details the most recent transactions. Interest is
posted quarterly in the month that follows the quarter -end.
ANALYSIS:
FOR CITY CLERK ONLY
File No.:
Council Meeting: te e b 1-2 C, r
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Disposition: �- �(.� c
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
For June, our LAIF account has a balance of $41,831,78. Portfolio returns on LAIF dollars should be
about 0.36 percent for June 2012. The City's West America account has a balance of $3,662,410 at
month end.
FISCAL IMPACT:
No financial impact occurs by adopting the report. The City continues to meet the priority principles of
investing - safety, liquidity and yield in respective order. The portfolio remains conservatively invested.
Sufficient liquidity exists to meet daily operating and capital project requirements for the next six
months. Operating funds, as defined for this report, exclude cash held with fiscal agents for the
payment of bond principal and interest.
OPTIONS/ACTION REQUIRED:
The City Council should adopt the report as presented in order to satisfy current State Investment
Code requirements and City policy.
WAManagement Services- WorkFile\Finance- WorkFile\Council MateriakStaff Reports12012\City\cityinvrpt32012.doc
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
TREASURER'S CERTIFICATION
I CERTIFY THAT ALL INVESTMENTS MADE ARE IN CONFORMANCE WITH THE CITY'S
APPROVED INVESTMENT POLICY AND STATE INVESTMENT REGULATIONS. THE CITY HAS
SUFFICIENT LIQUIDITY TO MEET ALL OF THE OBLIGATIONS REQUIRED DURING THE NEXT
SIX-MONTH PERIOD.
MARK MOSES
INTERIM FINANCE DIRECTOR
LAIF Regular Monthly Stater -ant
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(916) 653-3001
CITY OF SAN RAFAEL
CITY TREASURER
P.O. BOX 151560
SAN RAFAEL, CA 94915-1560
Effective Transaction Tran Confirm
Date Date Type Number
6/12/2012 6/5/2012 RW 1361821
Account Summary
Total Deposit:
Total Withdrawal:
PN,HA Average Month1v Yields
Account Number:
98-21-827
Tran Type Definitions
Authorized Caller
JIM SCHUTZ
0.00 Beginning Balance:
-1,500,000,00 Ending Balance:
Amount
-1,500,000.00
EXHIBIT A
www.treasurer.S.a.gov/pynia
_Iaif
July 10, 2012
June 2012 Statement
43,331,077.54
41,831,077.54
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