HomeMy WebLinkAboutFin Investment Report 2012.04CITY OF i%�r'
Agenda Item No: 3 h.
Meeting Date: May 21, 2012
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Van Bach
Accounting Supervisor
City Manager Approval
SUBJECT: INVESTMENT REPORT FOR APRIL 2012
RECOMMENDATION: ACCEPT INVESTMENT REPORT FOR THE MONTH ENDING
APRIL 30, 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 April, our LAIF account has a balance of $39,331,078, including $32,490 quarterly interest.
Portfolio returns on LAIF dollars should be about 0.37 percent for April 2012. The City's West America
account has a balance of $2,085,715 at month end.
FOR CITY CLERK ONLY
File No. ' A -4
Council Meeting: Vie; i
Disposition: C' c
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 Material\Staff Reports\2012\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—nt
Local Agency Investment Fund
P.O. Box 942809
Sacramento, CA 94209-0001
(91 b) 653-3001
CITY OF SAN RAFAEL
CITY TREASURER
P.O. BOX 151560
SAN RAFAEL, CA 94915-1560
Transactions
Tran Type Definitions
Effective
Transaction Tran
Confirm
Date
Date
Type
Number
4/11/2012
4/10/2012
RW
1354696
4/13/2012
4/12/2012
QRD
1355400
4/17/2012
4/16/2012
RD
1357862
4/26/2012
4/25/2012
RW
1358648
Account Summary
Total Deposit:
Total Withdrawal:
Exhibit A
www.treasurer.ca.20V/DMia
-1aif
May 04, 2012
PMIA Averaec Monihlv Yields
Account Number: 98-21-827
April 2012 Statement
Authorized Caller
JIM SCHUTZ
SYSTEM
JIM SCHUTZ
JIM SCHUTZ
7,532,490.12 Beginning Balance:
-2,700,000.00 Ending Balance:
Amount
-1,500,000.00
32,490.12
7,500,000.00
-1,200,000.00
34,498,587.42
39,331,077.54
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