03.04 Treasurer Report Jan-March 2018
1. SUBJECT
MONTHLY TREASURER'S REPORTS FOR JANUARY, FEBRUARY, AND MARCH
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.
1 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 @ 12/31/2017 $131,424,184
Monthly Activity:
Cash Received 47,660,480
Cash Disbursed ( 43,172,024)
Balance @ 3/31/2018 $135,912,640
"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 2018
The January cash receipts exceeded cash disbursements by $4,588,818. The City received
$6,458,225 in property tax in lieu of motor vehicle license fees, $6,617,100 in property tax revenue
($4,528,691 for the City and $2,088,409 as property tax increment collected for the Successor
Agency), and $2,968,000 in sales tax revenue. During the month, large disbursements included
payments totaling $3,127,816 to Orange County Water District for pumping assessments,
$1,731,258 to PERS for employee benefits, $769,683 to Kasa Construction for Yorba Park
renovation, and $581,907 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 $24,700,000 or an increase of $3,700,000 due to cash
receipts exceeding cash disbursements.
ITEM 5/8/18
Printed on Recycled Paper
For the month of February 2018
The February cash disbursements exceeded cash receipts by $1,461,481. During the month, large
disbursements included payments totaling $1,255,857 to U.S. Bank for debt service, $1,614,433
to PERS for employee benefits, and $342,843 to Municipal Water District of Orange County for
purchased water. The City received $3,957,200 in sales tax revenue.
In the month of February, no investments were purchased, matured or were called. The ending
balance in L.A.I.F. on February 28 was $23,400,000 or a decrease of $1,300,000 due to cash
disbursements exceeding cash receipts.
For the month of March 2018
The March cash receipts exceeded cash disbursements by $1,361,119. The City received
$4,021,050 in sales tax revenue and $1,860,647 in property tax revenue. Large disbursements
included payments totaling $1,604,690 to PERS for employee benefits, $924,501 to U.S. Bank for
debt service, $235,813 to Big Ben Engineering for pipeline renewal, and $211,947 to West Coast
Arborist for street tree maintenance.
In the month of March, we purchased one Federal Home Loan Bank note (2.5% for 2.25 years)
The City's balance in L.A.I.F. on March 31 was $23,500,000 or an increase of $100,000 related to
cash receipts exceeding cash disbursements and the investment activity 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 May 2, 2018 while the next quarterly Committee meeting is to
be scheduled for August 2018.
8. ATTACHMENTS
Attachment A - Investment Report for January 2018
Attachment B - Investment Report for February 2018
Attachment C - Investment Report for March 2018
ITEM
5/8/18
Printed on Recycled Paper
CITY COUNCIL MINUTES MAY 8, 2018
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 April 5, April 13, April 19, and April 27,
2018. (C2500.J.1.7)
ACTION: Approved.
3.2 City Council Minutes, Adjourned Regular Meeting of March 27, 2018; and Regular
Meeting of April 10, 2018. (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 January, February, and March 2018. (C2500.F)
ACTION: Received and filed.
3.5 Agreement with Robertson Industries, Inc. for maintenance and repair of rubberized
play surface material for tot lots in four City parks. (A2100.0; AGR -6602)
ACTION: Approved agreement with Robertson Industries, Inc. in the amount not -to-
exceed $58,390; and authorized the Mayor and the City Clerk to execute on behalf of the
City.
3.6 First Amendment to Custodial Services for All City Buildings Agreement No. 6225;
with Ultimate Maintenance Services, Inc. (A2100.0; AGR- 6225.1)
ACTION: Approved First Amendment with a one -year extension to the Agreement with
Ultimate Maintenance Services, Inc. for an amount not -to- exceed $405,000; and
authorized the Mayor and City Clerk to execute on behalf of the City.
(ITEM REMOVED AND HEARD SEPARATELY)
3.7 First Amendment and rate adjustment to Street Sweeping Agreement No. 5963 with
CR &R Environmental Services Incorporated (CR &R). (A2100.0; AGR - 5963.1)
City Engineer Frank Sun clarified Councilmember Alvarez's question regarding the
contract amount. The current contract amount is $510,000 and the proposed increase of
$10,387 is included in the FY 2018 -19 budget.
MOTION — Alvarez
SECOND — Nichols
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
Moved to approve First Amendment to the agreement with CR &R for an amount not -to-
exceed $530,000, including a 2% rate adjustment; and authorize the Mayor and City Clerk
to execute on behalf of the City.
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