SR - - MONTHLY REPORTS FOR JULY, AUGUST, SEPTEMBER 20161. SUBJECT
MONTHLY TREASURER'S REPORTS FOR JULY, AUGUST, AND SEPTEMBER 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.
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 10945 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. 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 @ 6/30/2016 $162,719,118
Monthly Activity:
Cash Received 36,336,462
Cash Disbursed ( 68,000,016)
Balance @ 9/30/2016 j1n,055,564
( ' ) 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 2016
The July cash disbursements exceeded cash receipts by $23,629,367. During the month, large
disbursements included payments totaling $18,903,357 to PERS for prepayment of the City's
FY17 pension contributions, $3,059,515 to Orange County Water District for pumping
assessments, $1,798,192 to PERS for employee benefits, $895,212 to PERS for paying down the
unfunded liability, $554,410 to Cora Construction for well equipping, and $568,570 to Municipal
Water District of Orange County for annual connection charge and purchased water. In July, the
City received $7,587,356 in sales tax revenue including the final disbursement of the triple flip
and $209,063 in property tax revenue.
In the month of July, we purchased one Federal National Mortgage Association Note (1.55% for
5 years) and one Federal Home Loan Bank Note (1.50% for 5 years). One commercial paper
matured. One Federal Farm Credit Bank Note and one Federal National Mortgage Association
Note were called. The City's balance in L.A.I.F. on July 31 was $18,700,000 or a decrease of
$23,500,000 due to the cash disbursements exceeding cash receipts during the month.
For the month of August 2016
The August cash disbursements exceeded cash receipts by $6,763,001. During the month, large
disbursements included payments totaling $5,195,103 to U.S. Bank for debt service, $1,124,414
to CIPA (California Insurance Pool Authority) for insurance, $957,116 to PERS for employee
benefits, and $463,523 to Municipal Water District of Orange County for purchased water. In
August, the City received $3,747,200 in sales tax revenue.
In the month of August, there was no investment activity. The City's balance in L.A.I.F. on August
31 was $18,200,000 or a decrease of $500,000 due to cash disbursements exceeding cash receipts
during the month.
For the month of September 2016
The September cash disbursements exceeded cash receipts by $1,271,186. Large disbursements
included payments totaling $2,318,174 to U.S. Bank for debt service, $1,009,391 to R.J. Noble for
annual pavement maintenance, $966,119 to PERS for employee benefits, and $508,999 to
Municipal Water District of Orange County for purchased water. The City received $4,600,905 in
sales tax revenue and $588,941 in property tax revenue.
In the month of September, one Federal Home Loan Mortgage Corporation Note was called. The
City's balance in L.A.I.F. on September 30 was $15,700,000 or a decrease of $2,500,000 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 October 27, 2016 while the next quarterly Committee meeting
is to be scheduled for February 2017.
8. ATTACHMENTS
Attachment A - Investment Report for July 2016
Attachment B - Investment Report for August 2016
Attachment C - Investment Report for September 2016
CITY COUNCIL MINUTES NOVEMBER 9, 2016
1.4 PRESENTATIONS/ ANNOUNCEMENTS/ INTRODUCTIONS (Continued)
Presentation by the Sons of Italy to the Orange Public Library
Introduction of the contestants for the 2016 Miss Orange pageant
Presentation of a Proclamation for Pancreatic Cancer Month
2. PUBLIC COMMENTS
Annabell Liao, Chapman University Student Government Association President — invited
the community to the Student & Neighbor Get Together on November 12 from 11:00 a.m.
to 1:00 p.m.
Heidi Zimmerman — spoke regarding assisting the homeless in the riverbed.
Lou Noble — spoke regarding assisting the homeless in the riverbed.
Ruth Hull — spoke regarding assisting the homeless in the riverbed.
3. CONSENT CALENDAR
All items on the Consent Calendar are considered routine and are enacted by one motion
approving the recommended action listed on the Agenda. Any member of the City Council,
staff or the public may request an item be removed from the Consent Calendar for
discussion or separate action. Unless otherwise specified in the request to remove an item
from the Consent Calendar, all items removed shall be considered immediately following
action on the remaining items on the Consent Calendar.
3.1 Confirmation of warrant registers dated October 6, 13, 20, and 27, 2016. (C2500.J.1.7)
ACTION: Approved.
3.2 City Council Minutes, Regular Meeting of October 11, 2016. (C2500.D.4)
ACTION: Approved.
3.3 Waive reading in full of all ordinances on the Agenda.
ACTION: Approved.
3.4 Monthly Treasurer's Reports for July, August, and September 2016. (C2500.F)
ACTION: Received and filed.
3.5 Investment Oversight Committee Report for the period ending October 30, 2016.
(OR1800.0.27.16)
ACTION: Received and filed.
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