Loading...
09. MARCH 31, 2017CITY OF EASTVALE CITY COUNCIL STAFF REPORT Return to Agenda ITEM 6.8 DATE: MAY 24, 2017 TO: HONORABLE MAYOR AND COUNCIL MEMBERS FROM: JAMES R. RILEY, INTERIM FINANCE DIRECTOR SUBJECT: TREASURER’S REPORT – QUARTER ENDED MARCH 31, 2017 RECOMMENDATION: RECEIVE AND FILE THE CITY TREASURER’S REPORT BACKGROUND In accordance with the City of Eastvale’s Investment Policy, adopted May 11, 2016, the City Treasurer is required to submit a quarterly treasurer’s report to the City Council. The report shall include types of investments, credit ratings, institutions involved, dates of purchases, dates of maturity, amount of deposits or cost of the security, current market value of the securities, interest rates, investment fund balances and a statement as to whether investments are in compliance with the Investment Policy and whether there are sufficient funds to meet the City’s cash obligations for the next six months. DISCUSSION The Schedule of Investments, includes a breakdown of the City’s investments by “Active” or “Inactive” Deposits. “Active Deposits” are those accounts which receive revenues, whereas “Inactive Deposits” are available for use but are not earning revenues. Detail reports for the PFM Managed Investment Portfolio, with all supplemental information required by the City’s investment policy, are included in the report. The Dash Board Report Card, consists of two sections: I. Portfolio Diversification – This section reflects the diversification of the City of Eastvale’s portfolio by both type of instrument and length of maturity. II. Portfolio Performance Measures – This section compares budget to actuals in the area of interest earned. Also included is a cash breakdown report per the City’s fund balance reserve policy showing funds restricted, committed, designated and unassigned as of March 31, 2017 and the investment income received at March 31, 2017, broken down by fund. CITY OF EASTVALE CITY COUNCIL STAFF REPORT Return to Agenda ITEM 6.8 The City of Eastvale’s Schedule of Investments is in compliance with the City’s Investment Policy. The City has sufficient funds to meet its expenditure requirements for the next six months. Total cash and investments at March 31, 2017 is $57,463,637 (book value). Net investment income received through March 31, 2017 is $267,641, which is 298.373% of the 2016-17 budgeted amount for interest of $89,700. The net yield on investments is 1.107%. FISCAL IMPACT Not Applicable. STRATEGIC PLAN IMPACT Goal 1: Establish a solid fiscal foundation for the City ATTACHMENTS 1. Schedule of Investments – March 31, 2017 2. Dash Board Report Card – March 31, 2017 3. Cash Breakdown per the Fund Balance Reserve Policy – March 31, 2017 4. PFM Managed Investment Portfolio – March 31, 2017 Prepared by: James R. Riley, Interim Finance Director Reviewed by: Michele Nissen, City Manager Reviewed by: John Cavanaugh, City Attorney Book Value (Fair Value) Par Price @ Market Institution Value Cost Value Yield ACTIVE DEPOSITS Money Market Accounts: Citizens Business Bank - Money Market 1,178,321.88$ 1,178,321.88$ 1,178,321.88$ 0.350% First American Govt Oblig Fund CI Y 299,215.72 299,215.72 299,215.72 0.260% Total Money Market 1,477,537.60$ 1,477,537.60$ 1,477,537.60$ 0.332% Pooled Investment Accounts: Local Agency Investment Fund 12,880,728.66$ 12,880,728.66$ 12,870,114.31$ 0.821% Total Pooled Investment 12,880,728.66$ 12,880,728.66$ 12,870,114.31$ 0.821% PFM Managed Investment Portfolio: U.S. Treasury Bond/ Note 10,780,000.00$ 10,933,774.03$ 10,825,579.30$ 1.440% Asset-Back Security/ Collateralized 145,000.00$ 144,980.48$ 143,912.05$ 1.300% Certificate of Deposit-FDIC Insured 1,489,000.00$ 1,489,000.00$ 1,491,021.31$ 1.240% Certificate of Deposit 2,260,000.00$ 2,259,563.20$ 2,266,640.99$ 1.880% Federal Agency Bond/ Note 13,680,000.00$ 13,688,248.80$ 13,575,679.51$ 1.070% Corporate Note 5,930,000.00$ 6,075,511.60$ 6,003,260.90$ 1.950% Total PFM Managed Investments 34,284,000.00$ 34,591,078.11$ 34,306,094.06$ 1.080% ACTIVE DEPOSITS TOTAL 48,642,266.26$ 48,949,344.37$ 48,653,745.97$ 1.217% INACTIVE DEPOSITS Checking Account: Citizens Business Bank - Checking 8,514,292.95$ 8,514,292.95$ 0.000% Total 8,514,292.95$ 8,514,292.95$ 0.000% INACTIVE DEPOSITS TOTAL 8,514,292.95$ 8,514,292.95$ GRAND TOTAL CASH 57,463,637.32$ 57,168,038.92$ James R. Riley Interim Finance Director 5/15/2017 City of Eastvale Schedule of Investments As of March 31, 2017 Per Government Code requirements, the Investment Report is in compliance with the City of Eastvale's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. Attachment 1 I. PORTFOLIO DIVERSIFICATION DIVERSIFICATION BY INSTRUMENT Money Market 3.02% LAIF 26.31% Certificates of Deposit-FDIC Insured 3.04% Certificates of Deposit 4.62% U.S. Treasury Bond/ Note 22.34% Asset-Backed Security/ Collateralized 0.30% Federal Agency Bond/ Note 27.96% Corporate Note 12.41% 100.00% DIVERSIFICATION BY MATURITY Less Than 90 Days 30.35% Six Months (26 Weeks)0.51% One Year (52 Weeks)0.51% Two Years (104 Weeks)19.14% Three Years (156 Weeks)22.07% Four Years (208 Weeks)13.28% Five Years +14.14% 100.00% II. PORTFOLIO PERFORMANCE MEASURES Yield at Cost -March 31, 2017 1.217% Annual Investment Income Budget 89,700.00$ Investment Income Received: Money Market 3,132.80$ LAIF 66,051.71 Certificate of Deposits 36,673.53 U.S. Treasury Bond/ Note 51,405.86 Federal Agency Discount Note 2,077.51 Federal Agency Bond/ Note 62,748.42 Asset-Backed Security/ Collateralized 779.40 Corporate Note 71,810.69 Total Investment Income Received-YTD 3/31/2017 294,679.92 Less Investment Fees Paid: Trust Fees-U.S. Bank (2,994.76) Mgmt Fee-PFM (24,044.24) Total Investment Fees Paid-YTD 3/31/2017 (27,039.00) Net Investment Income Received-YTD 3/31/2017 267,640.92$ Over/(Under) Annual Budget 177,940.92$ % of Annual Budget 298.373% Net Yield at Cost - March 31, 2017 1.107% City of Eastvale Dash Board Report Card As of March 31, 2017 Attachment 2 City of Eastvale Cash Breakdown per Fund Balance Reserve Policy March 31, 2017 Schedule of Investments - March 31, 2017 Money Market Accounts 1,214,747.23$ Pooled Investment Accounts 12,851,416.81 PFM Managed Investments 34,418,744.51 Checking Account 8,783,542.13 Grand Total Cash - December 31, 2016 57,268,450.68$ Breakdown of Total Cash at December 31, 2016 Restricted Funds (Non-Discretionary Per Law)31,516,840.07$ Committed (Per Formal Action of City Council)1,402,174.43 Designated/ Assigned (Per City's Intent): Emergency Contingency 6,179,200.00 Reserve of Funds to meet City's cash obligations for the next six months 10,819,312.50 (Per Fund Balance Reserve Policy) County of Riverside-FY 2014-15 Invoices Due (Pending resolution of litigation)5,013,731.32 Total Designated/ Assigned 22,012,243.82 Unassigned 2,337,192.37 Grand Total Cash - December 31, 2016 57,268,450.68 Attachment 3 City of Eastvale Investment Income Breakdown-Acct 4600 March 31, 2017 Per 12/16 Allocation Fund Name Amount % 100 General 148,193$ 55.37% 110 Fire Structural 39,852 14.89% 200 Gas Tax 31,742 11.86% 210 Measure A 19,136 7.15% 220 AQMD 1,044 0.39% 300-440 Landscape Maint.5,380 2.01% 600 Dev. Impact Fee (DIF)22,294 8.33% 267,641$ 100.00% G:\Everyone\Finance\Treasurer's Report\16-17 Treas Report\3rd Quarter 3-31-17\3.17 Investment Report,5/15/2017,jrr, Attachment 4