HomeMy WebLinkAboutStaff Report 3.B 04/06/2015AGENDA ITEM # 3.B.
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DATE: April 6, 2015
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: William Mushallo, Finance Director
Corey Garberolio, Principal Financial Analyst
SUBJECT: Resolution to Receive and File the City Treasurer's Report for the Periods Ending
September 30, 2014 and December 31, 2014.
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution to receive and file the City
Treasurer's Reports for the periods ending September 30, 2014 and December 31, 2014.
BACKGROUND
Pursuant to the City's Investment Policy and Government Code, the City Council annually
delegates authority to the City Treasurer to invest or reinvest City funds. The City Council
approved the City of Petaluma Investment Policy on July 7, 2014 which delegated investment
authority to the City Treasurer for the Fiscal Year 2014-15. The City Treasurer is required to
provide a quarterly investment report to the Council that includes the status of the investment
portfolio. The attached reports outline the current investments, the weighted average and yields
of pooled investments, investments managed by Public Financial Management (PFM), and
earnings received by investments in the Local Agency Investment Fund (LAIF). The reports
also include the Treasurer's certification of adequate cash flow. These are the first and second
quarterly reports for Fiscal Year 2014-2015.
DISCUSSION
It is the policy of the City of Petaluma to manage public finds in a manner consistent with the
laws of the State of California pertaining to the investment of public funds. Three primary goals
of the City are to safeguard the principal of funds under its control; meet the City's daily cash
flow requirements; and achieve a reasonable rate of return with the maximum amount of security
possible. The attached quarterly Treasurer's Reports contain information on the City's cash
activity and ending balances in all City accounts. Each report also:
• Sunmiarizes total beginning balances of all cash and investments, and total quarterly
activity and ending balances.
• Provides quarterly activity and ending balances in the City's cash equivalent accounts
and information about trustee account activities and ending balances.
® Provides infomiation on investment portfolio activity, security type, maturity and value,
and book and fair value.
® Compares the City's quarterly investment earnings with the City's benchmark.
The City's benclmmark for investment earnings is the Merrill Lynch 1-3 year US Treasury index
as provided by Bloomberg Financial Markets. That rate was .21% for the last six months. The
City's annualized return outperformed the Index by .02% coming in at .23% for the last six
months.
The Treasurer's report also calls for the listing of all inter -fund loans currently in place. They
are listed below:
Pursuant to Resolution No. 2013-013 N.C.S. the City Council approved an inter -fund loan
not -to -exceed amount of $544,000 from Community Facilities Impact Fee to fund the energy
efficiency improvements at the Swim Center, Cavanaugh Center, Airport, Senior Center,
Corporation Yard and Fire Stations 1, 2 and 3. The loan will be paid back upon receipt of
reimbursement from PG&E, through the On -Bill Financing Program. The loan balance at
December 31, 2014 was $521,743.
Pursuant to Resolution No. 2011-091 N.C.S. the City Council approved an inter -favid loan
not -to -exceed amount of $600,000 from the Risk Management Ftmd to the Payran UST Site
Remediation Project. The loan is to be paid back in full within 5 years of the initial transfer.
The loan balance at December 31, 2014 was $38,559.
Pursuant to Resolution No. 2012-105 N.C.S. the City Council approved an inter -fund loan
from Storm Drainage Impact Fee to Storm Water Utility not -to -exceed amount of $800,000.
This loan is to be paid back in full within 12 years. The loan balance at December 31, 2014
was $690,230.
FINANCIAL IMPACTS
The balance of cash and investments as of September 30, 2014 was $124.3 million. This is down
$3.1 million from the balance at the end of June. The decrease is due mainly to several large
debt service payments during the quarter. The net investment earnings during the quarter ending
September 30, 2014 were $88,644.
The balance of cash and investments as of December 31, 2014 was $120.9 million. This is down
$3.4 million from the balance at the end of September. The decrease is due mainly to several
large debt service payments during the quarter. The net investment earnings during the quarter
ending December 31, 2014 were $75,005.
The required action is to receive and file the Treasurer's Reports
ATTACHMENTS
1. Resolution to Receive and Pile the City Treasurer's Reports dated September 30, 2014
and December 31, 2014.
2. City Treasurer's Reports dated September 30, 2014 and December 31, 2014.
ATTACHMENT 1
RESOLUTION TO RECEIVE AND FILE THE CITY TREASURER'S REPORTS DATED
SEPTEMBER 30, 2014 AND DECEMBER 31, 2014
WHEREAS, the City Investment policy requires the City Treasurer to provide a quarterly
investment report to the Council for compliance with the adopted City Investment Policy.
NOW, THEREFORE BE IT RESOLVED that the City Council has received the reports
dated September 30, 2014 and December 31, 2014 and directs the City Clerk to file them.
ATTACHMENT
City of Petaluma
Quarterly Investment Report
July 1 to September 30, 2014
-70
IMLE4011-tiq N4 fths 6
ON
This report is presented in accordance with the City's investment policy and the California
Govermnent Code. The policy and Government Code requires the Treasurer to certify
that sufficient cash flow is available for the next six months to meet the expected demand
or provide an explanation as to why sufficient cash may not be available. The attached
report outlines the current investments, weighted average and yields of pooled investments.
The month end account statement of assets managed by Public Financial Management, LLC
(PFM), the Local Agency Investment Funds (LAIF) quarterly statement, and the City's
performance summary of portfolio investments as compared to applicable benchmarks
are included. The report also includes the Treasurer's certification of adequate cash flow.
We respectfully submit the quarterly investment report for the quarter ending September 30, 2014
CITY OF PETALUMA, CALIFORNIA
CITY TREASURER'S QUARTERLY REPORT
For the quarter ending September 30, 2014
Cash activity for the fiscal year:
Cash and Investments, Beginning of the quarter, 6/30/2014
Cash Receipts
Cash Disbursements
Cash and Investments, End of the Quarter, 09/30/2014
Cash and Investment Portfolio at
Investments Managed by City Treasurer:
Assessment Districts Bonds
Local Agency Investment Fonds (LAID)
CAMP Pool (CA Asset Management Prog)
PFM Investments Securities **
Certificate of Deposits
Checking Accounts
Subtotal
Investments Managed by Fiscal Agents:
CAMP Debt Issue Accounts
Trustee Money Market Accounts
Subtotal
Total Cash and Investments
September 30, 2014
S 127,407,716
43,693,092
(46,8441216)
S 124,256,592
Percent
Fair Market Par Value of
Value* (Cost) Portfolio
494,652
494,652
0.40%
44,554,039
44,574,059
35.87%
27,190,274
27,190,274
21.88%
23,822,426
24,067,879
19.37%
250,000
250,000
0.20%
3,488,765 3,488,765 2.81%
99,800,156 100,065,628 80.53%
9,925,670 9,925,670 7.99%
14,265,294 14,265,294 11.48%
24,190,964 24,190,964 19AT%6
123,991,119 1.24,256,592 100.00"/o
I certify that this report contains the total amounts of cash and investments at September 30, 2014
The investments are in conformity with the Investment Policy. A copy of the Investment Policy is
available for review in the Finance Department. The City Treasurer's cash management program provides
sufficient liquidity to meet expenditure requirements for the next six months.
We respectfully submit the quarterly investmentreport for he qu ing Se to or
30, 2014
W. lam Mushallo, rice Director
*Fair market values are furnished by the State of California, Local Agency Investment Fund and California Asset
Management Program.
** See detail attached
H
CITY OF PETALUMA, CALIFORNIA
CITY TREASURER'S QUARTERLY REPORT
For the quarter calling September 30, 2014
hn•esnnents dianaged by Ci(v Treasurer
Assessment District Bond (AD) 2000-01
Sub -Toted Assessment Districts Broad (AD) Accounts
LAID
LAID accrued interest
Sul. -Total LAW
CAMP Pool-Trcasmin's Investment Money Market
Sub -Total CAMP Poul Managed Account
Federal Agency Bonds/Discount Notes
Fed Agency accrued interest
US Treasury Bonds/Notes
US Trensury accrued interest
Corporate Nates
Corporate Notes accrued interest
Certificate of Deposit
Cerflio n e, of Deposit accrued interest
Sub -Total PFbI Securities Mamurged Account ^*
Certificnte of Darius its:
Circle Bank
Sub=Fohrl Certificate or Deposits
Checking Accounts:
Exchange-Cenern l Optioning
ESChame-Payroll
Thomas Lec Charity Trust
Police Trust
Sub -Ionil Checking Accounts
Total Cash and 11"r latents Managed try the City Treasurer
Investments 3hrmrged by Trustees Fiscal. lgentr
CAMP -AD 23, 24, 25 Accounts Money Market
CAMP- 2003 COP, 2007 TAB, 2011 TAB
Sub -Total C NIP -Dept Issue Accounts *^
Bank of Nea fork
US Bank First American Treas
Sub -Total Trustees Bloncy Market Account
Total Cush and Investments Managed by Fiscal Agents
TOTAL CASH AND INVESTMENTS
^ Sec deign matched
550,046.98 (55,395.24) 494,65174
5511,046.98 (55,395.24) 494,651.74
47,519,163.24 26,799.84 (3,000,000,00) 44,545,963.08
26,799.84 28,095.87 (26,799,84) 28,095.87
47,545,963.08 54,895.71 (3,026,799.84) 44,574,058.95
28,114,259.00 6,574,429.35 (7,498,414.39) 27,190,273.96
28,114,259.00 6,574,429.35 (7,498,414.39) 27,190,273.96
2,741,710.34
009,047.18
(608.89)
4,750,148.63
3400,355.24
4,919.D2
7,880.63
(9,568.96)
3,230.69
17,255,334.78
2,455,704.09
(4,494,541.57)
15 ,216,497.30
-
37,301.30
63,194.79
(52_47.92)
49,248.17
1477
2,942 243.60
78,296.22
2,942,24160
3,515,256.24
7,516.69
6,54427
(8263.52)
5,797.44
1,100,000.00
1,100,000.00
795.00
1,585,97
(668.19)
1712.78
24,089,820.73
4,543,956.93
(4,565,899.05)
24,067,878.61
Subtotal 100,300,089.79
11,173,281.99
(15,146,508.52)
969326,863.26
250,000.00 74.33 (74.33) 250,000.00
250,000.00 74.33 (74.33) 250,000.00
3,387,640,20
27,117,65475
(27,104939.71)
3400,355.24
6,634.76
.1,553,152.00
(4,551,740.43)
8,046.33
2,06738
-
-
2,067.38
118,913.90
1477
(40,632,45)
78,296.22
3,515,256.24
31,6711,821.52
(31,697,312.59)
3,488,765.17
114,065,346.03
42,844,177.84
(46,843,895.44)
1011,1165,628.43
428,16253 58.37 - 429,220.90
9,496,475.93 L29420 (320.74) 9,497,449.39
9,924,638.46 1,35257 (320.74) 9,925,670.ZY
2,246,500,00 2,246,500.00
11,171 _31.85 847,561.71 12,018,793.56
13,417,731.85 847,561,71 - 14,265,293.56
23,342,370.31 848,914.28 (320.74) 24,190,963.85
127,407,716.34 43,693,092.12 (46,844,216.18) 124,256,592.28
Accrued interest (87,08495)
General Ledger 124,169,507.33
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CITY OF PETALUMA, CALIFORNIA
CITY TREASURER'S QUARTERLY REPORT
For the quarter ending September 30, 2014
Cost vs. Fair Market Value
Sub -Total CAMP Treasurer's Investments 51,199,163.49
51,012,700.14 (186,463.35)
Accrued Interest
Unrealized
CAMP Total Investment Managed Securities Held
Cost
FV
Gain/(Loss)
CAMP Debt Issue Managed Accounts 9,925,670 29
9,925,670.29
US Treasury Bond/Note
15,216,497.30
15,032,262.92
(184,234.38)
Federal Agency Bond/Discount Note
4,750,148.63
4,742,798.59
(7,350.04)
Corporate Note
2,942,243.60
2,946,468.17
4,224.57
Certificate of Deposit
1,100,000.00
1,100,896.50
896.50
Sub -Total PFM Treasurer's Invest. Securities
24,008,889.53
23,822,426.18
(186,463.35)
CAMP Pool Money Market Fund
27,190,273.96
27,190,273.96
Sub -Total CAMP Treasurer's Investments 51,199,163.49
51,012,700.14 (186,463.35)
Accrued Interest
58,989.08
CAMP Total Investment Managed Securities Held
51,071,689.22
CAMP Debt Issue Managed Accounts 9,925,670 29
9,925,670.29
PFM CAMP Total Treasurer's Investments ** 61,124,833.78
60,938,370.43 (186,463.35)
LAIF 44,545,963.08 44,554,038.57 8,075.49
LAIF amortized cost rate 1.00018128435
** See detail attached
ATTACHMENT
City of Petaluma
Quarterly Investment Report
October 1 to December 31, 2014
This report is presented in accordance with the City's investment policy and the California
Govenunent Code. The policy and Government Code requires the Treasurer to certify
that sufficient cash flow is available for the next six months to meet the expected demand
or provide an explanation as to why sufficient cash may not be available. The attached
report outlines the current investments, weighted average and yields of pooled investments.
The month end account statement of assets managed by Public Financial Management, LLC
(PPM), the Local Agency Investment Funds (LAIF) quarterly statement, and the City's
performance summary of portfolio investments as compared to applicable benchmarks
are included. The report also includes the Treasurer's certification of adequate cash flow.
We respectfully submit the quarterly investment report for the quarter ending December 31, 2014
U
CITY OF PETALUMA, CALIFORNIA
CITY TREASURER'S QUARTERLY REPORT
For the quarter ending December 31, 2014
Cash activity for the fiscal year:
Cash and Investments, Beginning of the quarter, 9/30/2014
Cash Receipts
Cash Disbursements
Cash and Investments, End of the Quarter, 12/31/2014
Cash and Investment Portfolio at
Investments Managed by City Treasurer:
Assessment Districts Bonds
Local Agency Investment Funds (LAIF)
CAMP Pool (CA Asset Management Prog)
PFM Investments Securities **
Certificate of Deposits
Checking Accounts
Subtotal
Investments Managed by Fiscal Agents:
CAMP Debt Issue Accounts
Trustee Money Market Accounts
Subtotal
Total Cash and Investments
December 31, 2014
S 124,256,592
65,003,038
(68,401,870)
$ 120,857,760
Percent
Fair Market Par Value of
Value* (Cost) Portfolio
494,652
494,652
0.41%
44,573,184
44,602,620
36.91%
27,262,018
27.262,018
22.56%
23.811,458
24.036,157
19.89%
250,000
250,000
0.21%
9,703,964
9,703,964
8.03%
106,095,276 106,349,411 88.00%
1,090,471 1,090,471 0.90%
13,417, 878 13,417, 878 11.10%
14,508,349 14,508,349 12.00%
120,603,626 120,857,760 100.00%
I certify that this report contains the total amounts of cash and investments at December 31, 2014
The investments are in conformity with the Investment Policy. A copy of the Investment Policy is
available for review in the Finance Department. The City Treasurer's cash management program provides
sufficient liquidity to meet expenditure requirements for the next six months.
We respectfully submit the quarterly investment report for the qua end; g De r ber 31. 2014
William Mushallo, Finai erector _
*Fair market values are furnished by the State of California, Local Agency Investment Fund and California Asset
Management Program.
** See detail attached
CITY OF PETALUMA, CALIFORNIA
CITY TREASURER'S QUARTERLY REPORT
For the quarter ending December 31, 2014
Lmesrmnor, Managed by City 7reasdrer:
Assessment District Bond (AD) 2000-01
SulrTutnl Assessment Districts Bald (AD) Accounts
)-AIF
LAID accrued interest
Sub -Total LAIF
CAMP fool=l-reasurer's Investment Money Market
Sub -Todd CAMP fool Managed Account
Federal Agency Bonds/Discount Notes
Fed Agency accrued interest
US Treasury Bands/Nates
US Treasury accrued interest
Corporate Notes
Corporate Notes accrued interest
Certificate ofDeposil
Certificate ofDeposil accrued interest
Sub -Todd PFNI Securities Alam loot Account **
Certificate of Deposits:
Circle Bank
Sub -Todd Certificate of Deposits
Checking Accounts:
Exchange -General Operating
Exchange-Pnymll
Thomas Lee Charity Trust
Police Trust
Sub -Todd Checking Accounts
Towl Cash and Investments Managed Iry lire City Treasurer
Invesonenrs Afennged by Tnlsrees Fiscal, lgents
CAMP -AD 23, 24, 25 Accounts Money Market
CAMP- 2003 COP, 2007 TAD, 2011 TAB
SulrTohrl CAMP -Debt Issue Accounts *°
Bank of Nov York
US Bank First American Treas
Sab=rwai Trustees Money Market Account
Total Cash and Investments 01anaged by Fiscal Agents
TOTAL CASA AND INVESTMENTS
" See dnail mwhed
494,651.74 494651.74
494,651.74 494,651.74
44,545,963.08 28,095.87 - 44,574 058.95
28,095.87 28,560.91 (28,095.87) 28,560.91
44,574,058.95 56,656.78 (28,095.87) 44,602,619.86
27,190,273.96 9,692,428.38 (9,620,683.97) 27,262,018.37
27,190,273.96 9,692,428.38 (9,620,68} 97) 27,262,018.37
4,750,148 63
800,927.67
(799,434.35)
4,751,64195
3,230.69
9,313.05
(484.44)
12,059.30
15,216,497.30
2,778,192.31
(I 384,768,49)
16,609,921.12
48,248.17
55,18054
(80,065,40)
23,363.31
942 243.60
50,924,321.29
(310,000.00)
2,632 _43,60
5,797.44
9,951.62
(8,820.46)
6,927.60
1,100,000.00
64,333,122.33
(1,100,000.00)
1116,349,411.19
-
1,712.78
fi 047.22
(7,760.00)
24,067,878.61
3,659,611.41
(3,691,333.14)
24,036,156.88
Subtotal 96,326,863.26
13,408,696.57
(13,340,112.98)
96,395,446.85
250000.00 104.47 (104.47) 250,000,00
250,1100,00 104.47 (104.47) 250,000.00
3,400,355.24
45,708,731.33
(39,511,861.72)
9,597,224,85
8,046,33
5,215,58408
(5,197,260.40)
26,366.01
2067.38
-
-
2,067.38
78,296.22
9.88
78,306.10
3,488,765.17
50,924,321.29
(44,709,122.12)
9,703,964.34
1011,065,628.43
64,333,122.33
(58,149,339.57)
1116,349,411.19
428,22290 57.23 - 429,278.13
9,497,449.39 743.24 (8,836,000,00) 662,192.63
9,925,670.29 800.47 (8,836,000.00) 1,090,470.76
2,246,500.00 - - 2,246,500.00
12,018,793.56 669,115.57 (1,516,530.64) 11,171,37849
14,265,293.56 669,115.57 (1,516,530.64) 13,417,878.49
24,190,963.85 669,916.04 (111,352,530.64) 14,508,349.25
124,256,592.28 65,0113,1138.37 (68,401,8711.21) 120,817,71,11.44
Accrued interest (70,911.12)
General Ledger 120,796 849.32
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CITY OF PETALUMA, CALIFORNIA
CITY TREASURER'S QUARTERLY REPORT
For the quarter ending December 31, 2014
Cost vs. Fair Market Value
Unrealized
Cost FV
US Treasury Bond/Note
16,609,921.12
16,436,212.08
(173,709.04)
Federal Agency Bond/Discount Note
4,751,641.95
4,745,139.73
(6,502.22)
Corporate Note
2,632,243.60
2,630,105.83
(2,137.77)
Certificate of Deposit
Sub -Total PFM Treasurer's Invest. Securities 23,993,806.67 23,811,457.64 (182,349.03)
CAMP Pool Money Market Fund
27,262,018.37 27,262,018.37
Sub -Total CAMP Treasurer's Investments 51,255,825.04 51,073,476.01 (182,349.03)
Accrued Interest 42,350.21
CAMP Total Investment Managed Securities Held 51,115,826.22
CAMP Debt Issue Managed Accounts
1,090,470.76 1,090,470.76
PFM CAMP Total Treasurer's Investments ** 52,346,295.80 52,163,946.77 (182,349.03)
LAIF
LAIF amortized cost rate
** See detail attached
44,574,058.95 44,573,184.40
0.99998037982
(874.55)
of Petaluma Performance Summaries
Returns as of
December 31, 2014 City of Petaluma ML Treasury Index
Past Quarter 0.20% 0.17%
Past Months 0.23% 0.21%
Past Year
0.70%
0.62%
Past 3 Years
0.63%
0.48%
Past 5 Years
1.12%
0.93%
Effective Duration 1.73 years 1.82 years
Yield on Cost 0.66% 0.64%
Notes:
1. Merrill Lynch Indices provided by Bloomberg Financial Markets.
2. CAMP Cash Reserve Pool holdings excluded from performance, yield and duration calculations.
3. Performance numbers for periods greater than one year are presented on an annualized basis.
4. The City's Treasury benchmark was the Merrill Lynch 1-3 Year Index from inception to 6/30/12. Then
the benchmark switched to the Merrill Lynch 1 Year Treasury Index. On 6/30/11 the benchmark
returned to the Merrill Lynch 1-3 Year Treasury Index.
5. Inception date is 12/31/01.
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