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HomeMy WebLinkAbout04 TREASURER'S REPORTAgenda Item 4 Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: AUGUST 5, 2014 TO: JEFFREY C. PARKER, CITY MANAGER FROM: PAMELA ARENDS -KING, FINANCE DIRECTOR /CITY TREASURER SUBJECT: QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY SUMMARY: Government Code Section 53646 requires that the Treasurer make an Investment Report to the City Council at least quarterly showing balances by authorized investment and certifying its compliance with the adopted Investment Policy. RECOMMENDATION: Receive and file. DISCUSSION: In compliance with Government Code Section 53646, the attached Investment Report reporting cash and investments for the City of Tustin and the Successor Agency for the Tustin Community Redevelopment Agency for the quarter ending June 30, 2014 is rendered. The City's total cash and investments as of 6/30/14 was $161.8 million, down $19.3 million from 6/30/13's total cash and investments of $181.2 million. The primary reason for the decrease in cash and .investments is due to spending water bond proceeds on major projects such as the rehabilitation of Rawlings Reservoir. The average cash balance for fiscal year 2013/14 was $161.5 million with an average weighted portfolio yield of 0.56% and the average weighted days to maturity was 450 days. The average cash balance for fiscal year 2012/13 was $150.4 million with an average weighted portfolio yield of 0.33% and the average weighted days to maturity was 167 days. Interest earnings on a cash basis for fiscal year 2013/14 was $914.8 thousand, a $454 thousand increase in interest earnings from prior fiscal year. Fiscal year 2012/13 interest earnings on a QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY August 5, 2014 Page 2 of 2 cash basis was $460.4 thousand. Reasons for the increase in interest earnings are due to careful monitoring of the City's cash flow needs so funds could be invested for a longer term; diversification of investments from primarily treasury notes, JP Morgan Money Market Fund and the State of California's Local Agency Investment Fund to other investments allowed by the City's Investment Policy such as negotiable certificates of deposit, corporate bonds, federal agency bonds and commercial paper; and a change to the Investment Policy for 2014 from 65% of total cash and investments shall have maturities less than one year to 25% of total cash and investment portfolio have maturities less than one year. As of 6/30/13, 82% of total cash and investments had maturities less than one year and as of 6/30/14, 45.8% of total cash and investments had maturities less than one year. (lG/ti/ ,41J t Pamela Arends -King Finance Director /City Treasurer Attachment: June 30, 2014 Quarterly Investment Report ♦T V ui C� Q W z Q O W W Q W >. waaft Z W O� V ZW Cf) Q � 0 � ~ W � Ui C4 = O Cl) W W O LLft 30. Z �. 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