FC - Agenda - 01-31-2023City of Rosemead
Investment Committee
Quarterly Meeting
January 31, 2023
At 10:00 A.M.
City Hall Conference Room
8838 E. Valley Boulevard, Rosemead, CA 91770
Ben Kim, City Manager
Mike Brucker, Assistant City Manager
Bryan Chua, Finance Director
Ericka Hernandez, City Clerk
1. CALL TO ORDER – 10:00 A.M.
2.ROLL CALL
City Manager Kim
Assistant City Manager Bruckner
Finance Director Chua
City Clerk Hernandez
3.FINANCE COMMITTEE MEETING MINUTES
-Approval of the October 26, 2022, Meeting Minutes
4.STATUS REPORTS
-Review of Quarterly Cash and Investment Report ending on December 31, 2022
5.NEW BUSINESS
6. ADJOURNMENT
Finance Investment Committee Minutes October 26, 2021
Page 1 of 1
CITY OF ROSEMEAD
FINANCE INVESTMENT COMMITTEE
QUARTERLY MEETING MINUTES
OCTOBER 26, 2021
1.CALL TO ORDER
The quarterly meeting of the Rosemead City Finance Investment Committee was called
to order by City Clerk Hernandez at 3:00 p.m. at Rosemead City Hall at 8838 E. Valley
Boulevard, Rosemead, California.
2.ROLL CALL
City Manager Kim, Assistant City Manager Bruckner, Finance Director Chua, and City
Clerk Hernandez
3.FINANCE COMMITTEE MEETING MINUTES
ACTION: Motion by City Manager Kim, seconded by Assistant City Manager Bruckner
to approve the July 27, 2022, regular meeting minutes. Motion was carried by the
following votes: AYES: Kim, Bruckner, and Chua.
4.STATUS REPORTS
TREASURER’S QUARTERLY CASH AND INVESTMENT REPORTS AS OF
SEPTEMBER 30, 2022, FOR THE CITY OF ROSEMEAD, CITY OF ROSEMEAD
SUCCESSOR AGENCY TO THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION, AND THE ROSEMEAD HOUSING DEVELOPMENT
CORPORATION
The treasurer’s reports were reviewed by Interim Finance Director Chua.
5.NEW BUSINESS
None.
6.ADJOURNMENT
The meeting was adjourned at 3:14 p.m.
Respectfully submitted: Approved:
__________________________ ____________________________
City Clerk City Manager
CITY OF ROSEMEAD
Finance Department
MEMORANDUM
TO: Honorable Mayor and Members of the City Council
FROM: Bryan Chua, Finance Director/City Treasurer
DATE: January 31, 2023
SUBJECT: QUARTERLY CASH AND INVESTMENT REPORT – December 2022
OVERVIEW
Both the Rosemead Municipal Code (§2.36.040) and the adopted Annual Investment Policy
require quarterly reporting of invested cash to the City Council. Section V (Reporting, Disclosure
and Program Evaluation) of the City of Rosemead Investment Policy, approved by the City Council
on June 22, 2022, stipulates that quarterly investment reports shall be submitted by the Finance
Director to the City Council within 31 days of the last day of the quarter. The report is to include
a cover page (this memo), graphical comparison of the portfolio composition and maturity
distribution, a listing of individual investment transactions during the quarter and certain details
of each security. The City of Rosemead Treasurer’s Report for the second quarter of FY 2022‐23
(December 31, 2022), presented herewith, fulfils the reporting requirement of the Investment
Policy and the RMC.
Section 2.36 of the City’s Municipal Code also requires the Investment Committee to meet
regularly to review the City’s Investments. To meet that requirement, the Investment Committee
met on January 31, 2023 to receive a status report regarding the City’s cash and investments.
The Committee approved the City of Rosemead Treasurer’s Report as presented.
ANALYSIS
The City maintains cash in various banks, deposits with the Local Agency Investment Fund (LAIF),
investments in Certificates of Deposits (CD), US Securities/Agencies, Corporate Bonds, and
money market accounts. All items are detailed in the attached report. The cash included in this
report represents cash in all funds within the City including the Successor Agency and the Housing
Development Corporation. The City operates on a ‘pooled cash’ basis whereby cash in all funds
is combined for banking and investment purposes while ownership of that cash remains
segregated by individual funds.
Cash and Investment Report – December 2022
January 31, 2023
Page 2 of 3
For the quarter ending December 2022, the invested portion of the portfolio totaled
$65,246,521, an decrease of $1.00 million from the prior quarter. During the quarter, three
Certificates of Deposits matured. Purchased investments include: five Certificates of Deposits,
seven new U.S. Treasury Notes, and eight corporate bonds were purchased. There were also
numerous deposits and withdrawals to LAIF funds, resulting in a net decrease of $8.8 million in
LAIF balances. The increase in investment activity is part of a rebalancing effort to shift funds
from LAIF and take advantage of increased investment rates in the broader securities market.
From June 30, 2022 through December 31, 2022, the City’s securities investment balance
doubled from $7.5 million at an average return of 2.33% to $15.2 million at an average return
rate of 3.55%, an increase in investment yield of 1.22%. The weighted average maturity days also
increased from 584 days to 972 days during the same period. The changes results in an increased
investment yield over a longer period of time. As reflected in the ‘Comparative Data’ section,
invested cash has increased significantly over the past year. Comparing December 2022 to
December 2021, total invested cash has increased $13.3 million. This increase is the result of the
receipt of American Rescue Plan funding, the consolidation of Successor Agency and Housing
Development Corporation cash to the City’s pooled cash account, and overall cash increases in
nearly all operating funds. Total cash‐in‐bank and investments on December 31, 2022 is
$72,885,597 distributed as shown below.
The following chart provides a summary of the Invested Cash portfolio:
Non‐invested cash accounts represent cash‐in‐bank funds used to pay weekly accounts payable
and bi‐weekly payroll checks as well as receive City revenue. The balances in these accounts are
typically set to cover all outstanding checks and near‐term expenses. Prior to this fiscal year, City
controlled Successor Agency and Rosemead Housing Corporation funds were maintained in
individual bank accounts, not pooled with the City’s checking account, nor invested. Having these
separate accounts required that the City process accounts payable for expenses within these
Total Cash and Investments
Cash Deposits $ 6,513,887
Cash with Fiscal Agent 1,125,189
Invested Cash 65,246,521
$ 72,885,597
Investment Type
Beginning
Balance
Deposits/
Purchases
Withdrawls/
Maturities Ending Balance
LAIF $ 58,769,640 203,677 9,000,000 $ 49,973,317
Certificates of Deposit 3,205,000 1,239,000 740,000 3,704,000
US Securities 1,920,000 3,275,000 5,195,000
Corporate Bonds 2,330,000 4,000,000 6,330,000
Money Market ‐ Cantella 22,476 21,728 44,204
$ 66,247,116 8,739,405 9,740,000 $ 65,246,521
Cash and Investment Report – December 2022
January 31, 2023
Page 3 of 3
funds separately and City Council to approve three separate resolutions for warrant approvals.
At the end of the first quarter last fiscal year, the two accounts were combined with the City’s
operating checking account, thereby improving investment earnings for the two funds and
eliminating the necessity for the City Council to approve separate resolutions for the three
entities.
ATTACHMENT
Cash and Investment Report – Quarter Ending December 2022
Non-Invested Cash Accounts Bank
Statement
Amount Market Value
BANK OPERATING ACCOUNTS (1)
City - Bank of the West - General Checking Account 5,696,034$ 5,696,034$
City - Bank of the West - Payroll Account 499,217 499,217
SA - Bank of the West - General Checking Account 10,000 10,000
RHDC - Angelus Security Deposit - City National Bank 17,068 17,068
RHDC - Angelus Operating Account - City National Bank 3,190 3,190
RHDC - Garvey Security Deposit - City National Bank 26,163 26,163
RHDC - Garvey Operating Account 262,216 262,216
TOTAL OPERATING ACCOUNTS 6,513,887$ 6,513,887$
Cash with Fiscal Agent Statement
Amount
Interest
Rate Market Value
2010A Tax Allocation Bonds:
2010A Reserve Account - U.S. Bank 1,123,000$ varies 1,123,000$
2010A Debt Service - U.S. Bank 13 varies 13
2016 Subordinate Tax Allocation Refunding Bonds:
2016 Interest Account - U.S. Bank 2,176 varies 2,176
2016 Reserve Account - U.S. Bank (Non-cash Ins Policy)- --
TOTAL CASH WITH FISCAL AGENT 1,125,189$ 1,125,189$
Investments Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
LOCAL AGENCY INVESTMENT FUND
L.A. I. F. (State of California)49,973,317$ 49,973,317$ 2.07%49,973,317$
CERTIFICATES OF DEPOSIT
Barclay's Bk Del CD 11/8/17 11/8/22 Matured Matured Matured Matured
Capital One Bk, Nat'l Assn 11/22/17 11/22/22 Matured Matured Matured Matured
American Express Natl Bk Brok CD 12/5/17 12/5/22 Matured Matured Matured Matured
Wells Fargo Natl Bk West Las V CD 1/17/20 1/17/23 249,006 249,000 1.90%248,739
Live Oak Bkg Co NC CD 1/25/20 1/25/23 249,006 249,000 1.70%248,587
Morgan Stanley Bk N A Utah CD 2/22/18 2/22/23 246,006 246,000 2.75%245,510
BMW Bk North Amer Salt Lake CD 4/20/18 4/20/23 246,006 246,000 3.00%245,129
UBS Bk USA Salt Lake City UT CD 6/13/18 6/13/23 249,006 249,000 3.25%247,887
Morgan Stanley Pvt Bk CD 2/14/19 2/14/24 246,006 246,000 3.05%241,764
Capital One Natl Assn VA CD 9/24/20 5/30/24 264,199 245,000 2.65%238,395
LIQUID
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of December 31, 2022
(1)These are the actual bank account balances as of the end of the month. The amount reflects only checks that have cleared the bank
and deposits received by the bank. The balance does not reflect amounts required for outstanding checks or deposits in transit.
December 2022 - Investment Report Page 1
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of December 31, 2022
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
Wells Fargo Bank Natl Assn CD 9/24/20 1/29/25 260,019 245,000 1.95%232,135
Discover BK CD 6/1/22 6/2/25 245,006 245,000 3.10%236,699
Goldman Sachs Bk USA CD 6/1/22 6/2/25 245,006 245,000 3.00%236,143
Northern Bank & Trust 11/15/22 8/15/24 244,006 244,000 4.75%244,522
Austin Telco Federal Credit Union 11/28/22 11/27/26 248,006 248,000 5.05%252,114
Celtic Bank 12/19/22 12/21/26 249,006 249,000 4.20%245,504
First Utd Bk &Tr Company 12/30/22 12/30/24 249,004 249,000 4.50%248,524
Ideal Cr Un Woodbury 12/29/22 12/29/27 249,004 249,000 4.50%247,889
Sub-Total 3,738,287$ 3,704,000$ 3,659,543$
U.S. TREASURY/AGENCY SECURITIES
Federal Home Ln Mtg Corp Note 11/9/18 6/19/23 320,833$ 325,000$ 2.75%322,257$
Federal Home Loan Bank 11/8/18 9/8/23 253,623 250,000 3.38%247,483
Federal Farm Cr Bks Bond 11/8/18 10/2/23 249,993 250,000 3.05%246,675
US Treasury Note - Series J 3/24/22 3/31/24 250,006 250,000 2.13%242,188
Federal Farm Cr Bks Bond 6/9/22 5/23/25 315,006 315,000 2.85%302,939
Federal Home Ln Mtg Corp Mtn 8/16/22 8/25/25 280,006 280,000 3.50%273,669
Federal Home Loan Bank 8/23/23 8/25/25 250,006 250,000 4.06%245,925
Federal Home Ln Mtg Corp Note 11/9/22 3/13/25 376,921 385,000 4.70%377,924
Federal Home Loan Bank 11/15/22 9/14/27 491,361 500,000 4.40%486,195
Federal Home Loan Bank 11/16/22 4/29/26 480,006 500,000 4.26%474,945
Federal Home Loan Bank 11/29/22 9/21/26 498,756 500,000 4.57%492,260
Federal Home Ln Mtg Corp Note 11/30/22 8/25/27 388,336 390,000 4.50%382,941
FAMCA 12/22/22 8/22/27 502,504 500,000 4.81%499,655
Federal Home Loan Bank 12/23/22 3/8/24 502,334 500,000 4.35%499,090
Sub-Total 5,159,687$ 5,195,000$ 5,094,145$
CORPORATE BONDS
JP Morgan Chase & Co Note 4/11/18 1/25/23 249,993 250,000 3.20%249,808
BNP Paribas/ BNP Paribas Us Mtn 3/8/18 3/3/23 231,057 230,000 3.25%229,404
Wells Fargo Co Mtn Be 10/17/19 9/9/24 263,886 250,000 3.30%242,618
Barclays Bank Plc Ser A Mtn 8/6/20 1/20/25 554,466 550,000 1.50%497,085
Citigroup Global Mkts Hldgs In Ser N 7/31/20 7/31/25 800,006 800,000 1.10%716,792
Capital Impact Partners Invt Mtn 9/24/20 9/15/25 250,006 250,000 1.00%217,193
Bank of NY 11/14/22 1/26/27 446,456 500,000 4.90%448,965
US Bancorp 11/14/22 4/27/26 470,206 500,000 5.00%472,260
International Bank R & D 11/14/22 9/30/27 493,526 500,000 4.80%494,930
Toyota Motor Credit Corporation 11/22/22 9/20/27 498,901 500,000 4.55%493,110
Morgan Stanley 11/23/22 1/27/26 489,376 500,000 4.60%484,010
Apple Inc 11/30/22 11/13/27 477,731 500,000 4.00%466,650
Amazon Inc 12/22/22 8/22/27 477,929 500,000 3.15%469,835
December 2022 - Investment Report Page 2
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of December 31, 2022
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
Berkshire Hathaway 12/23/22 3/15/26 486,454 500,000 4.03%479,130
Sub-Total 6,189,989$ 6,330,000$ 5,961,788$
CAMBRIDGE
CASH HELD FOR INVESTMENTS 44,204$ 44,204$ Varies 44,204$
TOTAL INVESTMENTS 65,105,485$ 65,246,521$ 64,732,996$
Market values are provided by statements from issuers
Cash and Investments by Type Par Value
% of Invested
Cash
BANK ACCOUNTS - non-invested & FISCAL AGENT 7,639,076$
LAIF 49,973,317$ 77%Not restricted
CERTIFICATES OF DEPOSIT 3,704,000 6%No more than 30% of Portfolio
U.S. TREASURY/AGENCY SECURITIES 5,195,000 8%No more than 70% of Portfolio
CORPORATE BONDS 6,330,000 10%No more than 25% of Portfolio
CANTELLA & CO., INC.44,204 0%
Total Investments 65,246,521$ 100%
Total - Cash and Investments 72,885,597$
Cash and Investments by Agency Accts Par Value
% of Total
Cash
CITY 71,441,772$ 98%
Successor Agency 1,135,189 2%
Housing Development Corporation 308,637 0%
Total Investments 72,885,597$ 100%
Pie Charts Reflecting Data
Policy Restrictions by Investment Type
LAIF
76%
CERTIFICATES OF
DEPOSIT6%
U.S. TREASURY/AGENCY SECURITIES8%
CORPORATE BONDS10%
CAMBRIDGE0%
LAIF
86%
1 Yr4%2 Yr4%3 Yr6%
Investments by Category Investments by Maturity
December 2022 - Investment Report Page 3
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of December 31, 2022
Comparative Data
1.98%
1.29%
0.69%
0.29%
0.21%
0.22%
0.31%
0.41%
Policy Compliance
Bryan Chua, Finance Director/City Treasurer
Quarter End
Invested Cash
(excl non-invested)
Average Quarterly LAIF
Effective Yields
Dec 2022 65,246,521
Sep 2022 66,247,116
Jun 2022 68,101,330
Mar 2022 55,528,974
Mar 2021 31,970,198
This is to certify that the above report accurately reflects all City investments and is in conformity with the City's 2022-23 Investment
Policy as approved by the City Council on June 14, 2022.A copy of the Policy may be found on the City's webpage at
www.cityofrosemead.org or at the City Clerks Office.The cash and investments shown,along with anticipated revenues,provide
sufficient cash flow liquidity to meet the next six month's estimated expenditures pending any unforeseen catastrophic events.
Dec 2021 51,976,131
Sep 2021 49,512,983
Jun 2021 51,754,478
December 2022 - Investment Report Page 4