Title
Recommendation to Accept the Treasury Report for the Quarter Ending June 30, 2015. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Interim City Manager
Re: Recommendation to Accept the Treasury Report for the Quarter Ending June 30, 2015
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 June 30, 2015, 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 June 30, 2015. The City utilizes U.S. Bank as its third-party safekeeping custodian for safekeeping of all investments with the exception of the Local Agency Investment Fund (LAIF) and investments held by Bond Trustees. As a money market fund administered by the State Treasurer. LAIF has many governmental agency participants and holds securities through its own administrator. Investments held by Bond Trustees are administered in accordance with individual bond indentures.
The investment portfolio average yield of 0.79% (before adjustments for changes in market value) is slightly over the two-year rate for U.S. Treasury bills, which was 0.69% as of June 30, 2015.
The investments in Federal/Agency Issues and Medium Term Notes/Commercial Pager are managed by PFM Asset Management (PFM) and Chandler Asset Management (Chandler), 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 61% of the portfolios' investments in U.S. treasuries and agency notes and 39% in Corporate Notes and Commercial Paper. Most of thes...
Click here for full text