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SR - - MONTHLY TREASURERS REPORTS JULY AUGUST SEPTEMBER 20171. SUBJECT MONTHLY TREASURER'S REPORTS FOR JULY, AUGUST, AND SEPTEMBER 2017. 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. G. 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 11005 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 @ 6/30/2017 $164,795,540 Monthly Activity: Cash Received 31,603,599 Cash Disbursed ( 66,286,855) Balance @ 9/30/2017 $130,112,284 ( ' ) 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 2017 The July cash disbursements exceeded cash receipts by $21,722,604. During the month, large disbursements included payments totaling $12,490,309 to PERS for annual lump sum prepayment of unfunded liability, $4,356,997 to Orange County Water District for pumping assessments, $1,605,723 to PERS for employee benefits, $1,352,288 to CIPA (California Insurance Pool Authority) for insurance, $579,742 to Braun Industries for purchase of an ambulance, $393,355 to Municipal Water District of Orange County for annual water connection charge, and $364,456 to Big Ben for annual pipeline renewal. In July, the City received $3,058,200 in sales tax revenue and $368,186 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 $33,200,000 or a decrease of $19,900,000 due to cash disbursements exceeding cash receipts during the month. ITEM 11/14/17 Printed on Recycled Paper For the month of August 2017 The August cash disbursements exceeded cash receipts by $7,869,262. During the month, large disbursements included payments totaling $5,159,231 to U.S. Bank for debt service, $1,594,486 to PERS for employee benefits, $1,169,639 to Orange County Water District for pumping assessments, $762,119 to Pierce Manufacturing and $329,000 to HME Model for purchase of fire engines, as well as $314,549 to Municipal Water District of Orange County for purchased water. In August, the City received $4,077,700 in sales tax revenue. In the month of August, one Federal National Mortgage Association Note was called. We purchased one Federal Home Loan Bank Note (2.125% for 4.99 years). The City's balance in L.A.I.F. on August 31 was $24,200,000 or a decrease of $9,000,000 due to cash disbursements exceeding cash receipts during the month. For the month of September 2017 The September cash disbursements exceeded cash receipts by $5,091,390. Large disbursements included payments totaling $2,451,193 to U.S. Bank for debt service, $1,617,467 to PERS for employee benefits, $856,446 to the County of Orange for the City's share of the Countywide Coordinated Communication System (CCCS) for public safety use, $681,856 to Big Ben for annual pipeline renewal, $692,631 to Municipal Water District of Orange County for purchased water, and $324,531 to R.J. Noble for annual pavement maintenance. The City received $3,031,104 in sales tax revenue and $561,654 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 $19,300,000 or a decrease of $4,900,000 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 1, 2017 while the next quarterly Committee meeting is to be scheduled for February 2018. 8. ATTACHMENTS Attachment A - Investment Report for July 2017 Attachment B - Investment Report for August 2017 Attachment C - Investment Report for September 2017