HomeMy WebLinkAboutFin Investment Report 2012.03C,ry OF
Agenda Item No: 3 g
Meeting Date: April 16, 2012
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Van Bach-., City Manager Approval:
Accounting Supervisor
SUBJECT: INVESTMENT REPORT FOR MARCH 2012
RECOMMENDATION: ACCEPT INVESTMENT REPORT FOR THE MONTH ENDING
MARCH 31, 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.
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.
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 March, our LAIF account has a balance of $34,498,587. Portfolio returns on LAIF dollars should
be about 0.39 percent for March 2012. The City's West America account has a balance of $2,727,389
at month end,
510 -)L 9 -,� FOR CITY CLERK ONLY
File No.:
Council Meeting: 14
Disposition:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
FISCAL IMPACT:
Nofinancial impact occurs bvadopting the report. The City continues tomeet the priority principlesof
investing - safety, liquidity and yield in respective order. The portfolio n2Dl8iOS conservatively invested.
Sufficient liquidity exists to meet daily operating and capital project requirements for the next six
months. Operating funde, as defined for this neport, exclude cash held with fiscal agents for the
payment ofbond 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.
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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 Statement
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
Exhibit A
www.treasurer.ca.gov/prma
-laif
April 03, 2012
EMI_A_ A,era Monthly Yields
Account Number: 98-21-827
Transactions March 2012 Statement
Tran Type Definitions
Effective Transaction Tran Confirm
Date Date Type Number Authorized Caller Amount
3/13/2012 3/12/2012 RW 1352431 JIM SCHUTZ -1,000,000.00
Account Summar
Total Deposit: 0,00 Beginning Balance:
Total Withdrawal: -1,000,000.00 Ending Balance:
35,498,587.42
34,498,587.42
httDs://Iaifms.treasurer.ca.2ov/Rei4ularStatement.asvx 4/3/2012
