TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. Subject
title
Monthly Treasurer’s Reports for April, May, and June 2024.
body
2. Summary
These reports provide a compilation of three-monthly Treasurer’s Reports to the City Council for the fourth quarter of Fiscal Year 2023-2024. 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.
end
4. Fiscal Impact
None.
5. Strategic Plan Goals
Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.
6. Discussion and Background
The City’s Fiscal Year 2023-24 (FY24) Statement of Investment Policy has been adopted by the City Council of the City of Orange as Resolution 11469 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 staff cannot gather the required information prior to the deadline for the regular City Council meeting, staff provided the report through a special Council weekly report on August 15, 2024 to meet the 45-day limit.
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 each 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 at quarter ending June 30, 2024. As of June 30, 2024, the book value of the City’s total investment portfolio was $175.3 million, of which $102.8 million, or 58.6%, was managed by Chandler Asset Management (Chandler), the City’s investment manager. The remaining balance $72.5 million of the portfolio was managed by City staff of which $43.7 million was invested in the Local Agency Investment Fund (LAIF) and $28.8 million held in the City’s operating checking account.
|
|
Cash & Investments Balance₁ |
|
Chandler Investments: |
$102,308,639 |
|
Chandler Custodial Cash 2 |
474,192 |
|
LAIF, City: |
33,648,559 |
|
LAIF, Successor Agency: |
10,051,318 |
|
Wells Fargo Bank: |
28,776,381 |
|
Balance at 6/30/2024 |
$175,259,089 |
(1)Represents the bank balance. Includes operating cash and investments (valued at cost). Does not include deposits with administrator, imprest cash, fiscal agent cash and investments, and deferred compensation.
(2)Represents custodial cash account that Chandler holds with US Bank.
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 June 30, 2024, totaled $175,259,089. This is an increase of $6.2 million over the June 30, 2023 total of $163,039,828. The total cash and investments amount of $175.3 million is comprised of:
|
Fund |
Amount (in millions) |
% of Total |
|
General Fund |
$29.8 |
17% |
|
Special Revenue Fund |
30.3 |
17% |
|
Enterprise Fund |
39.5 |
23% |
|
Capital Project Fund |
35.0 |
20% |
|
Internal Service Fund |
28.2 |
16% |
|
Other Funds |
12.5 |
7% |
|
Total |
$175.3 |
100% |
Significant Cash Transactions:
The City’s total cash increased by $12.1 million from the last quarter. Total cash fluctuates over the course of the fiscal year due to regular cyclical events. The City received large property tax allocations totaling $25.8 million and sales tax allocations totaling $14.4 million. Significant cash transactions in the fourth quarter of FY24 were payroll, operational payments to vendors, and a $14.4 million debt service payment for the Pension Obligation Bonds. All cash disbursements are within the FY24 budget and all check registers are presented to the City Council monthly.
7. ATTACHMENTS
• Investment Report for the Period Ending June 30, 2024
• Monthly Statement for April 2024
• Monthly Statement for May 2024
• Monthly Statement for June 2024