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HomeMy WebLinkAboutFin Investment Report 2012.02CITY OF �%�� • ` Agenda Item No: 3 9. Meeting Date: March 19, 2012 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Van Bach 47 Accounting Supervisor City Manager Approva . SUBJECT: INVESTMENT REPORT FOR FEBRUARY 2012 RECOMMENDATION: ACCEPT INVESTMENT REPORT FOR THE MONTH ENDING FEBRUARY 29, 2012, AS PRESENTED BACKGROUND: Pursuant to the State of California Government Code Section 53601, staff is required to provide the governing body a report on the City's investment activities. Each month the Finance Department prepares a report outlining the major investments for the preceding month. 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 Redevelopment Agency. Beginning in January 2005, the City established a contract with MBIA to administer cash management services to a portion of our portfolio. In February 2010, MBIA restructured its fixed-income asset management subsidiary and changed their name to Cutwater Asset Management (Cutwater). Services provided by Cutwater include updating our investment policy annually, cash flow administration, and procurement of various instruments using Cutwater's market expertise (aligned with our needs). In addition, Cutwater prepares a comprehensive monthly investment report that meets not only required reporting information required by State law, but can be used as an asset management tool. The contract with Cutwater was temporary suspended as of December 31, 2011. All of our operating cash funds are currently in the Local Agency Investment Fund (LAIF) and West America checking account. ANALYSIS: For February, our LAIF account has a balance of $35,998,587. Portfolio returns on LAIF dollars should be about 0.39 percent for February 2012. The City's West America account has a balance of $2,822,763 at month end. FOR CITY CLERK ONLY Council Meeting: Disposition: SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 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 Reports1201 Mity\cityinvrpt22201 1,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