03.04 Treasurers Reports April-June 20191. SUBJECT
Monthly Treasurer's Reports for April, May, and June 2019.
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
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 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 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.
ITEM3. 1 08/13/2019
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:
Balance @ 3/31/2019
Monthly Activity:
Cash Received
Cash Disbursed
Balance @ 6/30/2019
Treasurer's Operating
Cash & lnvestments'!'
$127,283,771
62,123,633
(39,543,679)
$149,863,725
(1llncludes operating cash and investments (valued at cost). Does not include deposits
with administrator, imprest cash, fiscal agent cash and investments, and defefred
compensation.
For the month of April 2019
The April cash receipts exceeded cash disbursements by $15,530,913. The City
received $9,882,540 in property tax revenue, $4,219, 135 in development impact fees,
$1, 132,358 in annual franchise fees for gas and electricity, and $612,678 in sales tax
revenue. During the month, large disbursements included payments totaling $1,620,281
to PERS for employee benefits and $279,386 to Big Ben Engineering for pipeline
renewal.
In the month of April, no investments were purchased, matured or were called. The
City's balance in L.A.I.F. on April 30 was $45,600,000 or an increase of $16, 100,000
due to cash receipts exceeding cash disbursements during the month.
The City invested $84, 148,202 (including L.A.I.F.) or held 59% or of its portfolio in
securities at time of purchase with maturities equal to or less than 365 days, which was
above the 50% limit allowed in the Investment Policy by $13,706,218. This maturity
category was out of compliance based on anticipated cash flow needs in the summer
months including the annual lump sum prepayment of unfunded liability for retirement
and other large disbursements.
For the month of May 2019
The May cash receipts exceeded cash disbursements by $7,057,800. The City
received $6, 794,203 in property tax in lieu of vehicle license fees, $4,642,466 in
property tax revenue ($2,642,421 for the City and $2,000,045 as property tax increment
collected for the Successor Agency), and $3,955,328 in sales tax revenue. During the
month, large disbursements included payments totaling $2, 136,920 to PERS for
employee benefits, $1,679,913 to South Coast Fire Equipment for fire engines, and
$210, 110 to Bibliotheca for an automated materials handling system for the library.
ITEM 2 08/13/2019
In the month of May, a medium term note matured. The City's balance in L.A.I.F. on
May 30 was $55,900,000 or an increase of $10,300,000 due to a matured investment
and cash receipts exceeding cash disbursements during the month.
The L.A.I.F. balance was $2,443, 114 or 2% more than the maximum 35% of the
portfolio value permitted in the Investment Policy. The City invested $94, 738,032
(including L.A.I.F.) or held 61 % of its portfolio in securities at time of purchase with
maturities equal to or less than 365 days, which was above the 50% maturity limit by
$18,371,052. The maturity category of less than 365 days was not in compliance due to
projected cash flow needs in the summer months including the annual lump sum
prepayment of unfunded liability for retirement and other large disbursements.
For the month of June 2019
The June cash disbursements slightly exceeded cash receipts by $8, 758. The City
received $3,571,465 in sales tax revenue and $179,352 in property tax revenue. Large
disbursements included payments totaling $1,668, 170 to PERS for employee benefits,
$404,456 to Sequel Contractors for street rehabilitation, $225,468 to Municipal Water
District of Orange County for purchased water, and $189,052 to All Cities Engineering
for annual concrete replacement.
In the month of June, no investments were purchased, matured or were called. The
City's balance in L.A.I.F. on June 30 was $57,200,000, or an increase of $1,300,000
due to surplus funds received by the end of May was transferred to L.A.I.F. on June 3,
the first business day of the month.
The L.A.I.F. balance was $4,066,346 or 3% above the 35% limit allowed in the
Investment Policy. The City invested $95,814,879 (including L.A.I.F.) or held 63% of its
portfolio in securities _at time of purchase with maturities equal to or less than 365 days,
which was above the 50% maturity limit by $19,909,659. The maturity category of less
than 365 days was out of compliance due to anticipated cash flow needs in the summer
months including the annual lump sum prepayment of unfunded liability for retirement
and other large disbursements.
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 August 7, 2019 while the next quarterly Committee
meeting is to be scheduled for November 2019.
7. ATTACHMENTS
1. Investment Report for April 2019
2. Investment Report for May 2019
3. Investment Report for June 2019
ITEM 3 08/13/2019