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Legislation Details
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File #:
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24-285
Version:
1
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Type:
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Report
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Status:
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Passed
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On agenda:
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9/25/2024
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Final action:
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9/25/2024
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Title:
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The City Treasurer and staff recommend that the City Council accept the City Treasurer's Report for the quarter ended June 30, 2024.
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DATE: September 25, 2024
TO: Honorable Mayor and City Councilmembers
FROM: City Treasurer's Office
TITLE: CITY TREASURER'S REPORT - QUARTER ENDED JUNE 30, 2024
RECOMMENDATION
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The City Treasurer and staff recommend that the City Council accept the City Treasurer’s Report for the quarter ended June 30, 2024.
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BACKGROUND AND ANALYSIS
The City’s Investment Policy requires the City Treasurer to submit a quarterly investment report to the City Council which provides full disclosure of the City’s investment activities.
The goal of the City Treasurer’s Office is to make investments in conformity with the investment policy adopted by the City Council on June 26, 2024. The quarterly City Treasurer’s report is intended to provide an awareness of the activity and performance of the City's investment portfolio.
As of June 30, 2024, the City had $41,104,223 in its operating account, $1,000,000 in LAIF, and $37,257,817 in California Asset Management Program (CAMP). In June, the City worked with its Investment Strategist to close the Enhanced Cash account, as we will be managing liquidity needs with funds in our CAMP and LAIF accounts. The City has adequate funds to meet its cash flow requirements for the next six months.
The book value of the City’s investment portfolio at the quarter ended June 30, 2024, was $550,681,943 (book value is the cost of the security plus any amortization or accumulation of premiums or discounts). The June 30, 2024, portfolio book value increased by $39 million (or 7 percent) over the June 30, 2023, portfolio book value. As shown in the following table, the book value of the City’s primary investment portfolio has increased by $5.6 million from the prior quarter ended March 31, 2024. As of June 30, 2024, the average purchase yield to maturity was 3.30 percent for this account.
City of Oceanside
Rolling Quarterly Comparison
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June 30, 2024 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
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Book Value |
$550,681,943 |
$545,003,471 |
$519,540,057 |
$519,646,078 |
$510,926,341 |
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Market Value |
$539,726,525 |
$530,089,173 |
$509,317,249 |
$496,659,894 |
$485,790,904 |
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Unrealized Gain / (Loss) |
(10,955,418) |
(14,914,298) |
(10,222,808) |
(22,986,184) |
(25,135,437) |
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Unrealized Gain / (Loss) as a % of Book Value |
-1.99% |
-2.74% |
-1.97% |
-4.42% |
-4.92% |
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LAIF deposits |
$1,000,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
$1,000,000 |
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CAMP deposits |
$37,257,817 |
$34,746,111 |
$12,390,136 |
$5,309,176 |
$22,101,127 |
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Average Purchase YTM |
3.300% |
3.150% |
2.970% |
2.610% |
2.370% |
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Quarterly Earnings |
$4,002,989 |
$3,987,052 |
$3,667,601 |
$3,651,731 |
$2,732,990 |
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Fiscal YTD Earnings |
$15,309,373 |
$11,306,384 |
$7,319,332 |
$3,651,731 |
$9,428,081 |
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Operating Account (U.S. Bank) |
$41,104,223 |
$15,395,478 |
$19,235,077 |
$11,113,121 |
$37,985,990 |
The LAIF deposits ended the quarter with a yield of 4.480 percent, representing an increase of .25 percent from the prior quarter yield of 4.232 percent. LAIF is part of a Pooled Money Investment Account which gives local agencies the opportunity to participate in a major portfolio using the State Treasurer’s Office at no additional cost to the taxpayer.
The CAMP deposits ended the quarter with a yield of 5.43 percent, representing a decrease of 0.05 percent from the prior quarter yield of 5.48 percent. CAMP is a California Joint Powers Authority (“JPA”) established in 1989 to provide California public agencies with professional investment services. These investments are permitted for all local agencies under California Government Code Section 53601(p).
In accordance with our Investment Policy, the City receives a monthly report from the Bank of New York Mellon listing all securities with current market data. The City reconciles this report against a monthly ClearWater holdings report provided by Chandler Asset Management. A copy of our reconciliation is provided as attachment No. 3.
FISCAL IMPACT
No fiscal impact.
COMMISSION OR COMMITTEE REPORT
The members of the Citizen Investment Oversight Committee (CIOC) reviewed the quarterly report for the quarter ended June 30, 2024, at the August 13, 2024, CIOC meeting and accepted its contents. The members of the CIOC confirm that the investments are in compliance with California State Code and the City's adopted Investment Policy, and that the portfolio is managed in a satisfactory manner.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Silvia Twardy, Supervising Accountant
Reviewed by: Victor Roy, City Treasurer
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. Quarterly Report
3. Reconciliation
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