Title
Recommendation to Accept the Treasury Report for the Quarter Ending December 31, 2014. [City Council] (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: John A. Russo, City Manager
Re: Recommendation to Accept the Treasury Report for the Quarter Ending December 31, 2014
BACKGROUND
Each fiscal quarter, a Treasury Report is provided to the City Council for review, per council policy. Attached is the Treasury Report for the fiscal quarter ending December 31, 2014, which includes detailed information on the City's cash and investments.
DISCUSSION
The investment report includes all cash and investments as summarized in the six categories listed below as of December 31, 2014. The investment portfolio's average yield of .79% (before adjustments for changes in market value) is slightly over the two-year rate for U.S. Treasury bills, which was .51% as of December 31, 2014.
The investments in Federal/Agency Issues and Medium Term Notes/Commercial Pager are managed by PFM Asset Management and Chandler Asset Management, the City's two registered investment advisors. PFM is responsible for managing investments ranging from one to three years, and Chandler manages investments ranging from one to five years, all of which have been made in accordance with the City's investment policy. These advisors invested approximately 66% of the portfolios' investments in U.S. treasuries and agency notes and 34% in Corporate Notes and Commercial Paper. Most of these investments were rated either AA or AAA by independent rating firms, with none having a rating below an A-.
As of December 31, 2014, approximately 54% of the State's Local Agency Investment Fund (LAIF) investments were in U.S. treasuries and agency notes, 17% in CDs, and 29% in other types of investments. Additional economic summaries and specific information related to each of the investment advisors and LAIF are included in the Quarterly Investment...
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