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SR - - REPORTS JANUARY FEBRUARY MARCH 2016OF. OR,g ��' OM1PoRAT' c�VIVTY CP AGENDA ITEM Date: May 10, 2016 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto City Manager FROM: Richard A. Rohm —� City Treasurer — ` William M. Kolbow Finance Director RevkewedNerified By: City Manage /- 11- z2 2 --- Finance Dir �7✓t'� To Be Presented By: X Cons Calendar City Mgr Rpts _ Council Reports Legal Affairs Boards /Cmtes Public Hrgs Admin Reports Plan/Environ 1. SUBJECT MONTHLY TREASURER'S REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2016. 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. 16. 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 10866 and is in accordance with the California Government Code ITEM -b.q 5/10/16 O Printed on Recycled Paper 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. SUMMARY OF CHANGES IN TREASURER'S CASH AND INVESTMENTS Treasurer's Operating Cash & Investments Balance @ 12/31/2015 $142,974,494 Monthly Activity: Cash Received 43,006,562 Cash Disbursed ( 41,976,655) Balance @ 3/31/2016 $144,004,401 ( ' ) 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 January 2016 The January cash receipts exceeded cash disbursements by $6,658,131. The City received $5,947,379 in motor vehicle license fees, $4,172,593 in sales tax revenue, and $3,188,992 in property tax revenue ($2,243,825 as property tax increment collected for the Successor Agency and $945,167 for the City). During the month, large disbursements included payments totaling $2,535,525 to Orange County Water District for pumping assessments, $1,532,004 to PERS for employee benefits, and $384,129 to Municipal Water District of Orange County for purchased water. In the month of January, no investments were purchased, matured or were called. The City's balance in L.A.I.F. on January 31 was $35,700,000 or an increase of $12,300,000 related to cash receipts exceeding cash disbursements. ITEM 5/10/16 O Printed on Recycled Paper For the month of February 2016 The February cash disbursements exceeded cash receipts by $2,461,857. During the month, large disbursements included payments totaling $3,146,767 to PERS for employee benefits, $1,393,681 to U.S. Bank for debt service, $373,980 to Sidepath for storage area network, and $325,601 to JTL Electric for traffic signal modifications. In February, the City received $3,051,300 in sales tax revenue. In the month of February, we purchased one Federal Farm Credit Bank Note (1.62% for 5 years). The ending balance in L.A.I.F. on February 28 was $29,200,000 or a decrease of $6,500,000 due to cash disbursements exceeding cash receipts and the investment activity during the month. For the month of March 2016 The March cash disbursements exceeded cash receipts by $3,166,367. Large disbursements included payments totaling $2,270,825 to PERS for employee benefits, $1,056,483 to U.S. Bank for debt service, $506,064 to R.J. Noble for annual pavement maintenance, $494,949 to Ford of Orange for purchase of police vehicles, and $472,728 to Cora Construction for well construction. The City received $2,860,705 in sales tax revenue and $1,553,576 in property tax revenue. In the month of March, no investments matured or were called. The City's balance in L.A.I.F. on March 31 was $21,500,000 or a decrease of $7,700,000. The drop in the LAIF balance was due to cash disbursements exceeding cash receipts and funds withdrawn for an investment purchase that was scheduled to settle on March 30 but ended up with an April 1 settle because the broker delivered the security to our old account. 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 May 4, 2016 while the next quarterly Committee meeting is to be scheduled for August 2016. 8. ATTACHMENTS Attachment A - Investment Report for January 2016 Attachment B - Investment Report for February 2016 Attachment C - Investment Report for March 2016 ITEM 5/10/16 O Printed on Recycled Paper