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HomeMy WebLinkAboutInvestment Advisory Agenda 11/13/18AGENDA ITEM Date: November 13, 2018 Reviewed/Verified By: City Manager Administrative Services Director 1041 To Be Presented By: X Cons Calendar City Mgr Rpts Council Reports Legal Affairs Boards/Cmtes Public Hrgs Admin Reports Plan/Environ William M. Kolbow Administrative Services Director 1. SUBJECT Monthly Treasurer's Reports for July, August, and September 2018. 2. SUMMARY Presentation of three monthly Treasurer's Reports to the City Council after the end of the quarter covered by the reports. 3. RECOMMENDED ACTION Receive and file. 4. FISCAL IMPACT No fiscal impact as a result of this action. 5. STRATEGIC PLAN GOAL(S) 2d. Be a Fiscally Healthy Community - Effectively manage and develop City assets. 6. GENERAL PLAN IMPLEMENTATION N/A 7. DISCUSSION and BACKGROUND The City's current Statement of Investment Policy has been adopted by the City Council of the City of Orange as Resolution 11080 and is in accordance with the California Government Code DATE OF ITEM NO. PAGE, / MEETING //7'' TO: Honorable Mayor and Members of the City Council THRU: Rick Otto City Manager FROM: Richard A. RAM — City Treasurer 9-P 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. This investment data is also presented in other summary and graphic form. A reconciliation between total cash and investments and total cash per the General Ledger is also included. All of the three monthly Treasurer's Reports have been reviewed by the Investment Advisory Committee (IAC). SUMMARY OF CHANGES IN TREASURER'S CASH AND INVESTMENTS Treasurer's Operating Cash & Investments(') Balance @ 6/30/2018 $149,722,612 Monthly Activity: Cash Received 34,522,565 Cash Disbursed (71,106,825) Balance @ 9/30/2018 $113,138,352 "Includes operating cash and investments (valued at cost). Does not include deposits with administrators, imprest cash, fiscal agent cash and investments, and deferred compensation. For the month of July 2018 The July cash disbursements exceeded cash receipts by $30,848,141. During the month, large disbursements included payments totaling $14,890,062 to PERS for annual lump sum prepayment of unfunded liability, $5,182,495 to U.S. Bank for debt service, $4,453,649 to Orange County Water District for pumping assessments, $2,345,089 to Morillo Construction for Shaffer Park renovation, $1,634,104 to PERS for employee benefits, $1,550,848 to CIPA (California Insurance Pool Authority) for insurance, $753,578 to Municipal Water District of Orange County for annual water connection charge and purchased water, and $402,219 to R.J. Noble for annual pavement maintenance. In July, the City received $3,604,029 in sales tax revenue and $269,557 in property tax revenue. In the month of July, no investments were purchased, matured or were called. The City's balance in L.A.I.F. on July 31 was $21,000,000 or a decrease of $30,700,000 due to cash disbursements exceeding cash receipts during the month. DATE OF ITEM NO. PAGE 2 MEETING For the month of August 2018 The August cash receipts exceeded cash disbursements by $22,022. During the month, large disbursements included payments totaling $1,643,347 to PERS for employee benefits, $1,181,180 to Orange County Transportation Authority for the Metrolink Parking Structure, and $367,455 to Municipal Water District of Orange County for purchased water. In August, the City received $3,155,301 in sales tax revenue. In the month of August, no investments were purchased, matured or were called. The City's balance in L.A.I.F. on August 31 was $21,300,000 or an increase of $300,000 related to cash receipts exceeding cash disbursements during the month. For the month of September 2018 The September cash disbursements exceeded cash receipts by $5,758,141. Large disbursements included payments totaling $2,534,974 to U.S. Bank for debt service, $1,644,343 to PERS for employee benefits, $976,325 to R.J. Noble for Street maintenance and rehabilitation, $666,281 to Morillo Construction for Shaffer Park renovation, $631,927 to Municipal Water District of Orange County for purchased water, $405,630 to Ticor Title Company for purchase of right-of-way, and $375,512 Big Ben Engineering for annual pipeline renewal. The City received $3,798,901 in sales tax revenue and $487,639 in property tax revenue. In the month of September, no investments were purchased, matured or were called. The City's balance in L.A.I.F. on September 30 was $16,100,000 or a decrease of $5,200,000 due to cash disbursements exceeding cash receipts during the month. CREDIT RATING ON INVESTMENTS During this period, there was no change to the credit rating on the investments in the investment portfolio. INVESTMENT ADVISORY COMMITTEE (IAC) The most recent IAC meeting was November 7, 2018 while the next quarterly Committee meeting is to be scheduled for February 2019. 8. ATTACHMENTS Attachment A - Investment Report for July 2018 Attachment B - Investment Report for August 2018 Attachment C - Investment Report for September 2018 ov DATE OF ITEM NO. 5 PAGE 3 MEE7ING2/'J.