Title
Recommendation to Accept the Treasury Report for the Quarter Ending December 31, 2015. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Accept the Treasury Report for the Quarter Ending December 31, 2015
BACKGROUND
Each quarter of the fiscal year, a Treasury Report is provided to the City Council for review, per the Investment Policy. Attached is the Treasury Report for the fiscal quarter ending December 31, 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 eight categories listed below as of December 31, 2015. The City utilizes U.S. Bank as its third-party custodian for safekeeping of all investments with the exception of investments held by Bond Trustees. The City also utilizes the Local Agency Investment Fund (LAIF) 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.
As of December 31, 2015, the investment portfolio average yield (before adjustments for changes in market value) was 0.95%, which is slightly higher than the rate for two-year U.S. Treasury bills at 0.83% and significantly more than the average monthly rate offered with LAIF at 0.40%.
The investments in Federal/Agency Issues and Medium Term Notes/Commercial Paper 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 38% of the Total Inv...
Click here for full text