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FC - Item 4A - 2023-24 Qtrly Investment Report to Council - Sept 2023CITY OF ROSEMEAD Finance Department MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Bryan Chua, Finance Director/City Treasurer DATE: October 23, 2023 SUBJECT: QUARTERLY CASH AND INVESTMENT REPORT—SEPTEMBER 2023 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 bythe City Council on June 13, 2023, 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 first quarter of FY 2023-24 (September 30, 2023), 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 October 23, 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—September 2023 October 23, 2023 Page 2 of 3 For the quarter ending September 2023, the invested portion of the portfolio totaled $69,320,852, a decrease of $7.3 million from the prior quarter. The decrease is related to both the increased payment activity relating to capital projects and ongoing operational cost. Additionally, it is worth noting that a large part of City revenues are collected in January and May. During the quarter one U.S. Treasury Note matured. Purchased investments include: eight Certificates of Deposits and two new U.S. Treasury Notes were purchased. There were also numerous deposits and withdrawals to LAIF funds, resulting in a net decrease of $10.6 million in LAIF balances. The increase in investment activity is a continued rebalancing effort to take advantage of increased investment rates in the broader securities market. From September 30, 2022 through September 30, 2023, the City's managed fixed income securities investment balance increased from $7.45 million at an average return rate of 2.33% to $23.70 million at an average return rate of 4.16%, an increase of 1.83%. The weighted average maturity also increased from 584 days to 1058 days during the same period, which simply means that the City is earning more in investment income over a longer period of time. As reflected in the 'Comparative Data' section, invested cash has increased over the past year. Comparing September 2023 to September 2022,total invested cash has increased $3.1 million. This increase is the result of overall cash increases in nearly all operating funds. Total cash -in -bank and investments on September 30, 2023 is $79,099,113 distributed as shown below. Total Cash and Investments Cash Deposits $ 8,271,855 Cash with Fiscal Agent 1,506,406 Invested Cash 69,320,852 $ 79,099,113 The following chart provides a summary of the Invested Cash portfolio: Beginning Investment Type Balance LAIF $55,607,383 Certificates of Deposit 6,736,000 US Securities 7,375,000 Corporate Bonds 6,930,000 Deposits/ Withdrawls/ Purchases Maturities Ending Balance 417,178 11,000,000 $45,024,561 1,978,000 8,714,000 935,000 250,000 8,060,000 6,930,000 Money Market- Cantella 19,457 572,835 592,292 $ 76,667,839 3,903,013 11,250,000 $ 69,320,852 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. ATTACHMENT Cash and Investment Report—Quarter Ending September 2023 CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2023 TOTAL OPERATING ACCOUNTS $ 8,271,855 $ 8,271,855 �'� 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. Cash with Fiscal Agent Statement Interest Amount Rate Market Value 2010A Tax Allocation Bonds: 2010A Reserve Account - U.S. Bank 2010A Debt Service - U.S. Bank 2016 Subordinate Tax Allocation Refunding Bonds: 2016 Interest Account - U.S. Bank 2016 Reserve Account - U.S. Bank (Non-cash Ins Policy) $ 1,123,000 varies $ 1,123,000 28 varies 28 383,378 varies 383,378 TOTAL CASH WITH FISCAL AGENT $ 1,506,406 $ 1,506,406 Purchase Maturity Interest Estimated Investments Date Date Original Cost Par Value Rate Market Value LOCAL AGENCY INVESTMENT FUND L. A. I. F. (State of California) LIQUID $ 45,024,560 $ 45,024,560 2.07% $ 45,024,560 CERTIFICATES OF DEPOSIT Morgan Stanley Pvt Bk CD Bank 2/14/24 Non -Invested Cash Accounts Statement 3.05% 243,764 Amount Market Value BANK OPERATING ACCOUNTS I'I 248,489 245,000 City - BMO - General Checking Account $ 7,488,293 $ 7,488,293 City - BMO - Payroll Account 504,532 504,532 SA - BMO - General Checking Account 10,000 10,000 RHDC - Angelus Security Deposit - City National Bank 17,376 17,376 RHDC - Angelus Operating Account - City National Bank 2,043 2,043 RHDC - Garvey Security Deposit - City National Bank 26,963 26,963 RHDC - Garvey Operating Account 222,649 222,649 TOTAL OPERATING ACCOUNTS $ 8,271,855 $ 8,271,855 �'� 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. Cash with Fiscal Agent Statement Interest Amount Rate Market Value 2010A Tax Allocation Bonds: 2010A Reserve Account - U.S. Bank 2010A Debt Service - U.S. Bank 2016 Subordinate Tax Allocation Refunding Bonds: 2016 Interest Account - U.S. Bank 2016 Reserve Account - U.S. Bank (Non-cash Ins Policy) $ 1,123,000 varies $ 1,123,000 28 varies 28 383,378 varies 383,378 TOTAL CASH WITH FISCAL AGENT $ 1,506,406 $ 1,506,406 Purchase Maturity Interest Estimated Investments Date Date Original Cost Par Value Rate Market Value LOCAL AGENCY INVESTMENT FUND L. A. I. F. (State of California) LIQUID $ 45,024,560 $ 45,024,560 2.07% $ 45,024,560 CERTIFICATES OF DEPOSIT Morgan Stanley Pvt Bk CD 2/14/19 2/14/24 246,000 246,000 3.05% 243,764 Capital One Natl Assn VA CD 9/24/20 5/30/24 248,489 245,000 2.65% 240,355 Northern Bank & Trust 11/15/22 8/15/24 244,003 244,000 4.75% 242,124 Blupeak Credit Union 9/19/23 9/19/24 248,003 248,000 5.75% 248,141 First Utd Bk &Tr Company 12/30/22 12/30/24 249,002 249,000 4.50% 245,487 Wells Fargo Bank Natl Assn CD 9/24/20 1/29/25 249,627 245,000 1.95% 233,353 Discover BK CD 6/1/22 6/2/25 245,003 245,000 3.10% 235,237 Goldman Sachs Bk USA CD 6/1/22 6/2/25 245,003 245,000 3.00% 234,850 BMO Bank 5/9/23 5/8/26 244,003 244,000 4.60% 238,905 Greenstate Credit Union 5/17/23 5/18/26 249,003 249,000 4.80% 244,971 Alabama Credit Union 6/20/23 6/22/26 248,003 248,000 5.00% 245,222 September 2023 - Investment Report Page 1 CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2023 September 2023 - Investment Report Page 2 Purchase Maturity Interest Estimated Investments (continued) Date Date Original Cost Par Value Rate Market Value Austin Telco Federal Credit Union 11/28/22 11/27/26 248,005 248,000 5.05% 245,711 Celtic Bank 12/19/22 12/21/26 249,005 249,000 4.20% 240,464 M&T Bank Corporation 1/20/23 1/20/27 244,003 244,000 4.00% 234,120 Texas Exchange Bank 2/24/23 2/24/27 248,003 248,000 4.10% 238,497 Global Federal Credit Union 5/12/23 5/12/27 249,003 249,000 4.60% 243,238 Chartway Federal CU 9/8/23 9/8/27 248,007 248,000 5.00% 245,726 Connexus Credit Union 9/26/23 9/27/27 248,003 248,000 5.05% 246,209 Ideal Cr Un Woodbury 12/29/22 12/29/27 249,003 249,000 4.50% 241,784 First Tech Federal Credit Union 2/3/23 2/3/28 248,003 248,000 4.35% 245,456 Liberty First 2/3/23 2/3/28 249,003 249,000 5.00% 240,148 Synchrony Bank 3/24/23 3/24/28 243,003 243,000 5.00% 240,363 American Express National Bank 3/29/23 3/29/28 244,003 244,000 4.75% 238,922 Pitney Bowes Bank 8/31/23 4/13/28 243,460 245,000 4.50% 235,918 Morgan Stanley Bank NA 4/20/23 4/20/28 244,003 244,000 4.65% 237,885 HSBC Bank USA 8/31/23 4/21/28 239,616 249,000 4.50% 232,095 Univest National Bank 5/12/23 5/12/28 249,003 249,000 4.35% 239,516 CIBC Bank USA 5/16/23 5/16/28 244,003 244,000 4.35% 234,752 Medallion Bank 5/18/23 5/24/28 248,003 248,000 5.00% 245,198 First County Bank 5/26/23 5/26/28 123,003 123,000 5.00% 121,566 Numerica Credit Union 5/30/23 5/30/28 200,003 200,000 4.70% 197,644 Thread Bank 6/16/23 6/16/28 249,003 249,000 4.40% 247,043 Jefferson Credit Union 6/20/23 6/20/28 248,003 248,000 5.37% 246,135 Bank of the Sierra 8/31/23 8/18/28 244,003 244,000 4.50% 235,726 Freedom Northwest CU 9/19/23 9/19/28 248,003 248,000 5.65% 248,697 Empower Credit Union 9/29/23 9/29/28 248,004 248,000 5.10% 245,828 Sub -Total $ 8,711,298 $ 8,714,000 $ 8,521,050 U.S. TREASURY/AGENCY SECURITIES Federal Home Loan Bank 11/8/18 9/8/23 Matured Matured Matured Matured Federal Farm Cr Bks Bond 11/8/18 10/2/23 249,993 250,000 3.05% 250,000 Federal Home Loan Bank 12/23/22 3/8/24 500,860 500,000 4.35% 498,350 US Treasury Note - SeriesJ 3/24/22 3/31/24 250,001 250,000 2.13% 245,908 Federal Agriculture Mortgage Corp 12/22/22 12/5/24 501,539 500,000 4.81% 495,935 Federal Home Ln Mtg Corp Note 11/9/22 3/13/25 376,921 385,000 4.70% 375,779 Federal Natl MtgAssn Note 9/28/23 5/22/25 499,004 500,000 5.25% 495,420 Federal Farm Cr Bks Bond 6/9/22 5/23/25 315,003 315,000 2.85% 302,806 Federal Home Loan Bank 4/19/23 7/18/25 271,456 275,000 4.21% 267,190 Federal Home Loan Mtg Corp Mtn 8/16/22 8/25/25 280,004 280,000 3.50% 270,595 Federal Home Loan Bank 8/23/22 8/25/25 250,004 250,000 4.06% 244,755 FederaINatl Mtg Assn Note 2/10/23 8/28/25 292,157 295,000 4.00% 287,395 September 2023 - Investment Report Page 2 CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2023 TOTAL INVESTMENTS $ 69,114,276 $ 69,320,852 $ 68,525,427 Market values are provided by statements from issuers September 2023 - Investment Report Page 3 Purchase Maturity Interest Estimated Investments (continued) Date Date Original Cost Par Value Rate Market Value Federal Home Loan Bank 11/16/22 4/29/26 480,006 500,000 4.26% 473,640 Federal Agriculture Mortgage Corp 6/22/23 6/12/26 375,003 375,000 5.28% 370,140 Federal Home Ln Mtg Corp 3/6/23 6/29/26 265,003 265,000 5.05% 260,977 Federal Home Loan Bank 11/29/22 9/21/26 498,756 500,000 4.57% 486,590 Federal Home Loan Bank 3/22/23 3/22/27 277,426 275,000 5.29% 271,527 Federal Home Ln Mtg Corp Note 2/22/23 6/17/27 220,003 220,000 5.13% 215,321 Federal Home Ln Mtg Corp Note 11/30/22 8/25/27 388,336 390,000 4.50% 375,418 Federal Home Loan Bank 11/15/22 9/14/27 491,361 500,000 4.40% 476,085 Federal Home Loan Bank 3/20/23 9/20/27 303,839 300,000 5.14% 295,812 Federal Home Ln Mtg Corp Note 2/21/23 2/7/28 499,979 500,000 5.00% 487,615 Federal Home Ln Mtg Corp Note 9/19/23 9/19/28 434,351 435,000 5.25% 429,915 Sub -Total $ 8,021,002 $ 8,060,000 $ 7,877,172 CORPORATE BONDS Wells Fargo Co Mtn Be 10/17/19 9/9/24 252,782 250,000 3.30% 243,730 Barclays Bank Plc Ser A Mtn 8/6/20 1/20/25 554,466 550,000 1.50% 516,439 Citigroup Global Mkts Hldgs In Ser N 7/31/20 7/31/25 800,002 800,000 1.10% 730,600 Capital Impact Partners Invt Mtn 9/24/20 9/15/25 250,002 250,000 1.00% 215,908 Morgan Stanley 11/23/22 1/27/26 489,376 500,000 4.60% 478,025 Berkshire Hathaway 12/23/22 3/15/26 486,454 500,000 4.03% 477,025 1P Morgan Chase 1/27/23 4/1/26 487,449 500,000 4.15% 472,075 US Bancorp 11/14/22 4/27/26 470,206 500,000 5.00% 464,630 Bank of NY 11/14/22 1/26/27 446,456 500,000 4.90% 446,805 Amazon Inc 12/22/22 8/22/27 477,929 500,000 3.15% 465,080 Toyota Motor Credit Corporation 11/22/22 9/20/27 498,901 500,000 4.55% 486,400 International Bank R & D 11/14/22 9/30/27 493,526 500,000 4.80% 483,685 Apple Inc 11/30/22 11/13/27 477,731 500,000 4.00% 462,055 Inter -American Development Bank 2/24/23 2/24/28 579,848 580,000 4.38% 567,897 Sub -Total $ 6,765,125 $ 6,930,000 $ 6,510,353 CAMBRIDGE CASH HELD FOR INVESTMENTS $ 592,292 $ 592,292 Varies $ 592,292 TOTAL INVESTMENTS $ 69,114,276 $ 69,320,852 $ 68,525,427 Market values are provided by statements from issuers September 2023 - Investment Report Page 3 CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2023 % of Invested Cash and Investments by Type Par Value Cash Policy Restrictions by Investment Type BANK ACCOUNTS - non -invested & FISCAL AGENT $ 9,778,261 LAIF $ 45,024,560 65% Not restricted CERTIFICATES OF DEPOSIT 8,714,000 13% No more than 30% of Portfolio U.S. TREASURY/AGENCY SECURITIES 8,060,000 12% No more than 70% of Portfolio CORPORATE BONDS 6,930,000 10% No more than 25% of Portfolio CANTELLA & CO., INC. 592,292 1% Total Investments $ 69,320,852 100% Total - Cash and Investments $ 79,099,113 % of Total Cash and Investments by Agency Accts Par Value Cash CITY $ 77,313,676 98% Successor Agency Housing Development Corporation Total Investments Pie Charts Reflecting Data 1,516,406 2% 269,031 0% $ 79,099,113 100% CAMBRIDGE 1%O Comparative Data CY SECUR IT I ES Investments by Maturity Invested Cash Average Quarterly LAIF Quarter End (excl non -invested) Effective Yields Sep 2023 69,320,852 — Jun 2023 76,667,839 — Mar 2023 72,682,760 — Dec 2022 65,246,521 — Sep 2022 66,247,116 — Jun 2022 68,101,330 — Mar 2022 55,528,974 — Dec 2021 51,976,131 — 3.42% 3.01% 2.63% — 1.98% _ 1.29% - 0.69% 0.29%1 0.21% September 2023 - Investment Report Page 4 CITY OF ROSEMEAD TREASURER'S QUARTERLY CASH and INVESTMENT REPORT SCHEDULE OF CASH AND INVESTMENTS As of September 30, 2023 Policy Compliance This is to certify that the above report accurately reflects all City investments and is in conformity with the City's 2023-24 Investment Policy as approved by the City Council on June 13, 2023. 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. Bryan Chua, Finance Director/City Treasurer September 2023 - Investment Report Page 5