Title
Recommendation to Accept the Investment Transactions Report for the Period Ending March 31, 2023. [City Council and SACIC] (Finance 10024051)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
This report presents the City of Alameda’s (City’s) Investment Transactions Report for the Quarter Ending March 31, 2023.
The report has been prepared to comply with regulations contained in the California Government Code Section 53646 and the City’s Investment Policy.
The City’s Investment Portfolio is in compliance with its Statement of Investment Policy. The City has sufficient funds to meet its pool’s expenditure requirements for the next six months. This report has been reviewed and approved by the City Treasurer, Kevin Kennedy.
BACKGROUND
In accordance with the Investment Policy, an Investment Transactions Report is provided to the City Council for review each Quarter of the Fiscal Year. Attached is the Investment Transactions Report for the Quarter Ending March 31, 2023.
DISCUSSION
The City utilizes U.S. Bank as its third-party custodian for safekeeping of all investments.
The investments are managed by PFM Asset Management (PFM) and Chandler Asset Management (Chandler), the City’s two registered investment managers. Both PFM and Chandler are responsible for managing investments of up to five years maturity, all of which have been made in accordance with the City’s Investment Policy.
Staff wishes to point out during the time period covered by the Transactions Report that there were securities managed by Chandler and PFM that were sold at a loss for the quarter ending March 31, 2023 totaling $195,914. However, these securities were replaced by higher yielding securities offering a greater interest return. While the market value of the securities sold has decreased, the portfolio will benefit from the higher yielding securities that were being replaced.
Also, with the recent banking situation, the City’s investment managers, PFM and Chandler, are monitoring the situation and have not identified any immediate concerns with our holdings, and will continue to monitor the ongoing situation closely. The City has two CD investments with Bank of Marin and Beacon Business Bank. Both CD amounts are under $100,000. Furthermore, both CDs are insured by the FDIC which has a standard insurance amount of up to $250,000.
A detailed listing of all the individual transactions including acquisitions, dispositions, interests and dividends transactions carried out by both PFM and Chandler over the past quarter are shown in the Investments Transactions Report for the Quarter Ending March 31, 2023 (Exhibit 1).
ALTERNATIVES
Accept the report due to no further action being requested.
FINANCIAL IMPACT
There is no financial impact from accepting the Investment Transactions Report.
The City’s expenditure requirements for the next six months are covered by anticipated revenues from City operations and liquidity from cash on deposit and maturing investments.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
All investments were made in accordance with the provisions of the City’s approved Investment Policy. The policy emphasizes safety, liquidity and diversification.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Accept the Investment Transactions Report for the Quarter Ending March 31, 2023.
Respectfully submitted,
Margaret O’Brien, Finance Director
By,
Krista Gan, Accountant II
Exhibit:
1. Quarterly Investment Transactions Report
cc: Kevin Kennedy, City Treasurer