TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Garrett Smith, City Treasurer
1. Subject
title
Monthly Treasurer’s Reports for October, November, and December 2024.
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2. Summary
These reports provide a compilation of three monthly Treasurer’s Reports to the City Council for the second quarter of Fiscal Year 2024-2025. Included in the reports are an economic update and detail of the City’s portfolio holdings, monthly transactions, and consolidated information on all cash and investments.
3. Recommended Action
recommendation
Receive and file.
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4. Fiscal Impact
None.
5. Strategic Plan Goals
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability
Objective 2.9: Create a fiscal sustainability plan
6. Discussion and Background
The City’s Fiscal Year 2024-25 Statement of Investment Policy has been adopted by the City Council of the City of Orange as Resolution 11563 and is in accordance with the California Government Code Sections 53600 et seq. Per the Investment Policy, three monthly investment reports are to be submitted to the City Council within 45 days following the end of the quarter.
As required by the City’s present Investment Policy, the City Treasurer’s report delineates all investments made by the City Treasurer for the City, its special funds, and the Successor Agency funds, by investment type and by broker.
The monthly Compliance Report certifying compliance of all investments with both the Government Code and the City’s Investment Policy is included.
The Investment Portfolio Statement accurately reflects all investments held by the City and its agents as of the end of the month. A summary of Treasurer’s cash and investments is also included.
Summary of Cash and Investments:
The cash and investment report provides a summary of the cash and investment accounts held by the City as of quarter ending December 31, 2024. As of December 31, 2024, the book value of the City’s total investment portfolio was $148.5 million, of which $103.7 million, or 69.8%, was managed by Chandler Asset Management (Chandler), the City’s investment manager. The remaining balance $44.7 million of the portfolio was managed by City staff of which $24.3 million was invested in the Local Agency Investment Fund (LAIF) and $15 million held in the City’s operating checking account.
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Cash & Investments Balance₁ |
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Chandler Investments: |
$103,746,382.33 |
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Chandler Custodial Cash 2 |
$85,725.78 |
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LAIF, City: |
$24,350,410.38 |
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LAIF, Successor Agency: |
$5,371,246.55 |
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Wells Fargo Bank: |
$15,036,086.31 |
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Balance at 12/31/2024 |
$148,504,125.57 |
(1)Represents the bank balance. Includes operating cash and investments (valued at cost). Does not include deposits with administrator, impress cash, fiscal agent cash and investments, and deferred compensation.
(2)Represents custodial cash account that Chandler holds with US Bank. (included in Chandler Investment total)
Pursuant to California Government Code Section 53646(b)(3), the City certifies that the reported cash and investment balances are sufficient to meet anticipated expenditures for the next six months.
In summary, cash and investments as of December 31, 2024, totaled $148,504,125,57. The City’s balances by fund is presented in the Cash and Investment by Fund attachment.
The City invests a large portion of its portfolio in Federal Agency Securities and U.S. Treasury Notes due to safety and preservation of capital to prevent loss. The City also invests a portion of its funds in LAIF which offers same day liquidity. Additionally, the City invests in high quality corporate notes, asset backed securities, and supranational agency bonds to obtain higher yields and add diversity to the portfolio. As of December 31, 2024, the City investments consisted of the following and are compliant with the Investment Policy:
Significant Cash Transactions:
The City’s total cash Increased by $4.5 million from the last quarter’s total of $143,908,157 million. Total cash fluctuates over the course of the fiscal year due to cyclical events. All cash disbursements are within the FY 2024-25 budget and all check registers are presented to the City Council monthly.
7. ATTACHMENTS
• Cash and Investments by Fund
• Investment Report for the Period Ending December 31, 2024
• Chandler Monthly Statements for October, November, and December 2024