FC - 07-24-2024 - Agenda Packet
City of Rosemead
Investment Committee
Quarterly Meeting Agenda
July 24, 2024
At 10:00 A.M.
8838 E. Valley Boulevard, Rosemead, CA 91770
Ben Kim, City Manager
Richard Rojas, 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 Rojas
Finance Director Chua
City Clerk Hernandez
3. FINANCE COMMITTEE MEETING MINUTES
- Approval of the April 29, 2024, Regular Meeting Minutes
4. STATUS REPORTS
- Review of the Quarterly Cash and Investment Report ending on June 2024
5. ADJOURNMENT
Finance Investment Committee Minutes of April 29, 2024
Page 1 of 1
CITY OF ROSEMEAD
FINANCE INVESTMENT COMMITTEE
QUARTERLY MEETING MINUTES
APRIL 29, 2024
1. CALL TO ORDER
The quarterly meeting of the Rosemead City Finance Investment Committee was called
to order by City Clerk Hernandez at 10:01 a.m. at Rosemead City Hall at 8838 E. Valley
Boulevard, Rosemead, California.
2. ROLL CALL
City Manager Kim, Assistant City Manager Rojas, Finance Director Chua, and City
Clerk Hernandez
3. FINANCE COMMITTEE MEETING MINUTES
ACTION: Motion by City Manager Kim, seconded by Finance Director Chua to approve
the January 29, 2023, regular meeting minutes. Motion was carried by the following
votes: AYES: Chua, Kim and Rojas.
4. STATUS REPORTS
Review of Quarterly Cash and Investment Report ending on March 2024.
The treasurer’s reports were reviewed by Finance Director Chua. This is a receive and
file report.
5. ADJOURNMENT
The meeting was adjourned at 10:15 a.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: July 24, 2024
SUBJECT: QUARTERLY CASH AND INVESTMENT REPORT – JUNE 2024
OVERVIEW
Both the Rosemead Municipal Code (§2.36.040) and the officially adopted Annual Investment
Policy mandate the submission of quarterly reports on invested cash to the City Council.
According to Section V of the City of Rosemead Investment Policy, which was approved by the
City Council on June 27, 2024, the Finance Director is required to submit quarterly investment
reports to the City Council within 31 days after the end of each quarter. The report should consist
of a cover page (this memo), a graphical representation comparing the portfolio's composition
and maturity distribution, a list of individual investment transactions made during the quarter,
and specific details about each security. The City of Rosemead Treasurer's Report for the fourth
quarter of FY 2023‐24 (June 30, 2024), which is included here, satisfies the reporting obligation
of the Investment Policy and the RMC.
According to Section 2.36 of the City's Municipal Code, the Investment Committee is obligated to
convene on a regular basis in order to assess the City's Investments. In order to fulfill that
stipulation, the Investment Committee convened on July 24, 2024 to obtain a report on the
current condition of the City's cash and investments. The Committee endorsed the City of
Rosemead Treasurer's Report in its original form.
ANALYSIS
The City holds funds in multiple banks, maintains deposits in the Local Agency Investment Fund
(LAIF), invests in Certificates of Deposits (CD), US Securities/Agencies, Corporate Bonds, and
money market accounts. The attached report provides a comprehensive description of all items.
The cash stated in this report encompasses all funds within the City, including the Successor
Agency and the Housing Development Corporation. The City operates using a 'pooled cash'
system, where all funds are combined for banking and investment purposes, while still
maintaining separate ownership of the cash for each individual fund.
Cash and Investment Report – June 2024
July 24, 2024
Page 2 of 2
The invested portion of the portfolio amounted to $72,912,400 for the quarter ending June 2024,
representing a $9.7 million increase compared to the previous quarter. Furthermore, this rise
can be attributed primarily to a significant portion of City revenues that are collected in the
month of May with the collection of property taxes. During the quarter, one Certificate of
Deposit reached its maturity date, and one Certificate of Deposit was redeemed. The investments
that were purchased include six Certificates of Deposits and two U.S. Treasury Notes.
Additionally, there were multiple instances of money being added to and taken out from LAIF
funds, leading to a total gain of $8.5 million in LAIF balances. The investment activity is an
ongoing process of readjusting the portfolio in order to capitalize on the higher investment
returns available in the wider market for fixed income securities. The City's investment balance
in actively managed fixed income securities increased by 34%, or $7.1 million, from $21.0 million
to $28.1 million between June 30, 2023 and June 30, 2024. The average return rate also increased
from 4.05% to 4.32%, resulting in a 0.27% increase or 27 basis points. As indicated in the
'Comparative Data' section, the amount of cash invested has shown an upward trend in the past
year. This rise is due to overall cash increases in almost all operating funds. The aggregate
amount of cash and investments held by the banks on June 30, 2024 is $87,594,768, which is
allocated as follows:
The following chart provides a summary of the Invested Cash portfolio:
Non‐invested cash accounts refer to the funds held in bank accounts that are used for paying
weekly accounts payable, bi‐weekly payroll checks, and receiving City revenue. The balances in
these accounts are adjusted to ensure that they are sufficient to cover any outstanding checks
and upcoming expenses.
ATTACHMENT
Cash and Investment Report – Quarter Ending June 2024
Investment Type
Beginning
Balance
Deposits/
Purchases
Withdrawls/
Maturities Ending Balance
LAIF $ 45,946,744 9,492,112 1,000,000 $ 54,438,856
Certificates of Deposit 10,821,000 1,468,003 488,000 11,801,003
US Securities 8,945,000 720,000 250,000 9,415,000
Corporate Bonds 6,930,000 6,930,000
Money Market ‐ Cantella 269,656 208,761 60,895
$ 72,912,400 11,680,116 1,946,761 $ 82,645,755
Total Cash and Investments
Cash Deposits $ 4,947,734
Cash with Fiscal Agent 1,279
Invested Cash 82,645,755
$ 87,594,768
Non‐Invested Cash Accounts
Bank
Statement
Amount Market Value
BANK OPERATING ACCOUNTS (1)
City ‐ BMO ‐ General Checking Account 4,348,043$ 4,348,043$
City ‐ BMO ‐ Payroll Account 498,089 498,089
SA ‐ BMO ‐ General Checking Account 10,000 10,000
RHDC ‐ Angelus Security Deposit ‐ City National Bank 18,329 18,329
RHDC ‐ Angelus Operating Account ‐ City National Bank 4,369 4,369
RHDC ‐ Garvey Security Deposit ‐ City National Bank 27,684 27,684
RHDC ‐ Garvey Operating Account 41,220 41,220
TOTAL OPERATING ACCOUNTS 4,947,734$ 4,947,734$
Cash with Fiscal Agent Statement
Amount
Interest
Rate Market Value
2010A Tax Allocation Bonds:
2010A Reserve Account ‐ U.S. Bank ‐$ varies ‐$
2010A Debt Service ‐ U.S. Bank 0 varies 0
2016 Subordinate Tax Allocation Refunding Bonds:
2016 Interest Account ‐ U.S. Bank 1,279 varies 1,279
2016 Reserve Account ‐ U.S. Bank (Non‐cash Ins Policy)‐ ‐ ‐
TOTAL CASH WITH FISCAL AGENT 1,279$ 1,279$
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) 54,438,856$ 54,438,856$ 4.12% 54,438,856$
CERTIFICATES OF DEPOSIT
Capital One Natl Assn VA CD 9/24/20 5/30/24 Matured Matured Matured Matured
Northern Bank & Trust 11/15/22 8/15/24 244,000 244,000 4.75% 243,807
Blupeak Credit Union 9/19/23 9/19/24 248,001 248,000 5.75% 248,064
Affinity Federal CU 11/1/23 10/31/24 248,001 248,000 5.80% 248,179
First Utd Bk &Tr Company 12/30/22 12/30/24 249,001 249,000 4.50% 247,922
Wells Fargo Bank Natl Assn CD 9/24/20 1/29/25 247,027 245,000 1.95% 240,245
Discover BK CD 6/1/22 6/2/25 245,002 245,000 3.10% 240,298
Goldman Sachs Bk USA CD 6/1/22 6/2/25 245,002 245,000 3.00% 240,080
BMO Bank 5/9/23 5/8/26 244,002 244,000 4.60% 242,512
Greenstate Credit Union 5/17/23 5/18/26 249,002 249,000 4.80% 248,517
LIQUID
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of June 30, 2024
(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.
June 2024 ‐ Investment Report Page 1
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of June 30, 2024
Investments (continued)Date Date Original Cost Par Value Rate Market Value
Alabama Credit Union 6/20/23 6/22/26 248,002 248,000 5.00% 248,590
Austin Telco Federal Credit Union 11/28/22 11/27/26 248,004 248,000 5.05% 248,975
Celtic Bank 12/19/22 12/21/26 249,004 249,000 4.20% 245,068
M&T Bank Corporation 1/20/23 1/20/27 244,002 244,000 4.00% 238,842
Texas Exchange Bank 2/24/23 2/24/27 248,002 248,000 4.10% 243,201
Global Federal Credit Union 5/12/23 5/12/27 249,003 249,000 4.60% 247,140
Chartway Federal CU 9/8/23 9/8/27 248,006 248,000 5.00% 249,210
Connexus Credit Union 9/26/23 9/27/27 248,003 248,000 5.05% 249,721
Ideal Cr Un Woodbury 12/29/22 12/29/27 249,003 249,000 4.50% 246,908
First Tech Federal Credit Union 2/3/23 2/3/28 248,003 248,000 4.35% 248,062
Liberty First 2/3/23 2/3/28 249,003 249,000 5.00% 245,805
Synchrony Bank 3/24/23 3/24/28 243,003 243,000 5.00% 245,243
American Express National Bank 3/29/23 3/29/28 244,003 244,000 4.75% 244,215
City National Bank 3/14/24 3/31/28 246,720 240,000 4.19% 241,471
Pitney Bowes Bank 8/31/23 4/13/28 243,460 245,000 4.50% 242,043
Morgan Stanley Bank NA 4/20/23 4/20/28 244,003 244,000 4.65% 243,529
HSBC Bank USA 8/31/23 4/21/28 239,616 249,000 4.50% 239,521
Univest National Bank 5/12/23 5/12/28 249,003 249,000 4.35% 246,104
CIBC Bank USA 5/16/23 5/16/28 244,003 244,000 4.35% 241,067
Medallion Bank 5/18/23 5/24/28 248,003 248,000 5.00% 248,060
First County Bank 5/26/23 5/26/28 123,003 123,000 5.00% 123,079
Numerica Credit Union 5/30/23 5/30/28 200,003 200,000 4.70% 200,252
Thread Bank 6/16/23 6/16/28 249,003 249,000 4.40% 253,460
Jefferson Credit Union 6/20/23 6/20/28 248,003 248,000 5.37% 248,818
Bank of the Sierra 8/31/23 8/18/28 244,003 244,000 4.50% 242,734
Freedom Northwest CU 9/19/23 9/19/28 248,003 248,000 5.65% 251,038
Empower Credit Union 9/29/23 9/29/28 248,003 248,000 5.10% 252,630
Dort Financial CU 10/10/23 10/10/28 246,003 246,000 5.00% 249,717
Utah First Federal CU 10/30/23 10/30/28 248,003 248,000 5.10% 252,851
Townebank 11/15/23 11/15/28 Redeemed Redeemed Redeemed Redeemed
Neighbors FCU 1/19/24 1/19/29 142,003 142,000 5.30% 141,489
MS Private Bank 2/16/24 2/16/29 244,003 244,000 4.65% 237,078
UBS Bank USA 2/28/24 2/28/29 249,003 249,000 4.20% 245,235
Spur Security Bank 3/27/24 3/12/29 244,003 244,000 4.20% 240,225
Morgantown B & T 3/22/24 3/22/29 249,003 249,000 4.15% 244,742
First Foundation Bank 5/10/24 5/10/29 244,003 244,003 4.60% 244,556
Toyota Financial Savings Bank 5/14/24 5/14/29 245,577 244,000 4.45% 244,573
Cross River Bank 5/15/24 5/15/29 244,528 244,000 4.45% 243,522
Farmers & Merchants Bank 5/21/24 5/21/29 248,003 248,000 4.50% 247,668
Merchants Commercial Bank 5/21/24 5/21/29 248,003 248,000 4.50% 247,668
Beal Bank 6/5/24 5/30/29 240,003 240,000 4.70% 241,764
Sub‐Total 11,801,047$ 11,801,003$ 11,755,498$
June 2024 ‐ Investment Report Page 2
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of June 30, 2024
U.S. TREASURY/AGENCY SECURITIES
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
US Treasury Note ‐ Series J 3/24/22 3/31/24 Matured Matured Matured Matured
Federal Agriculture Mortgage Corp 12/22/22 12/5/24 500,575 500,000 4.81% 498,725
Federal Home Ln Mtg Corp Note 11/9/22 3/13/25 376,921 385,000 4.70% 381,077
Federal Natl Mtg Assn Note 9/28/23 5/22/25 499,004 500,000 5.25% 498,090
Federal Farm Cr Bks Bond 6/9/22 5/23/25 315,002 315,000 2.85% 308,615
Federal Home Loan Bank 4/19/23 7/18/25 271,456 275,000 4.21% 271,535
Federal Home Loan Mtg Corp Mtn 8/16/22 8/25/25 280,002 280,000 3.50% 275,198
Federal Home Loan Bank 8/23/22 8/25/25 250,002 250,000 4.06% 249,538
Federal Natl Mtg Assn Note 2/10/23 8/28/25 292,157 295,000 4.00% 291,569
Federal Home Loan Bank 11/16/22 4/29/26 480,006 500,000 4.26% 483,580
Federal Agriculture Mortgage Corp 6/22/23 6/12/26 375,002 375,000 5.28% 373,155
Federal Home Ln Mtg Corp 3/6/23 6/29/26 265,002 265,000 5.05% 264,160
Federal Home Loan Bank 11/29/22 9/21/26 498,756 500,000 4.57% 493,030
Federal Home Loan Bank 3/22/23 3/22/27 276,940 275,000 5.29% 274,728
Federal Home Ln Mtg Corp Note 2/22/23 6/17/27 220,002 220,000 5.13% 219,188
Federal Home Ln Mtg Corp Note 11/30/22 8/25/27 388,336 390,000 4.50% 385,113
Federal Home Loan Bank 11/15/22 9/14/27 491,361 500,000 4.40% 487,595
Federal Home Loan Bank 3/20/23 9/20/27 303,173 300,000 5.14% 299,595
Federal Home Ln Mtg Corp Note 10/18/23 7/18/28 384,041 385,000 5.06% 383,903
Federal Home Ln Mtg Corp Note 9/19/23 9/19/28 434,351 435,000 5.25% 432,708
Federal Home Ln Mtg Corp Note 10/16/23 10/16/28 249,379 250,000 5.31% 249,735
Federal Agriculture Mortgage Corp 1/24/24 11/28/28 505,845 500,000 4.93% 499,770
Federal Agriculture Mortgage Corp 2/8/24 1/22/29 499,214 500,000 4.08% 493,030
Federal Home Ln Mtg Corp Note 3/15/24 1/30/29 497,504 500,000 4.36% 492,975
Federal Home Loan Bank 4/5/24 3/22/29 562,899 560,000 4.63% 556,136
Federal Home Loan Bank 5/31/24 5/22/29 160,368 160,000 5.07% 159,805
Sub‐Total 9,377,296$ 9,415,000$ 9,322,552$
CORPORATE BONDS
Wells Fargo Co Mtn Be 10/17/19 9/9/24 250,577 250,000 3.30% 248,823
Barclays Bank Plc Ser A Mtn 8/6/20 1/20/25 554,466 550,000 1.50% 536,932
Citigroup Global Mkts Hldgs In Ser N 7/31/20 7/31/25 800,001 800,000 1.10% 754,280
Capital Impact Partners Invt Mtn 9/24/20 9/15/25 250,001 250,000 1.00% 232,045
Morgan Stanley 11/23/22 1/27/26 489,376 500,000 4.60% 488,770
Berkshire Hathaway 12/23/22 3/15/26 486,454 500,000 4.03% 483,965
JP Morgan Chase 1/27/23 4/1/26 487,449 500,000 4.15% 484,035
US Bancorp 11/14/22 4/27/26 470,206 500,000 5.00% 479,400
Bank of NY 11/14/22 1/26/27 446,456 500,000 4.90% 465,305
Amazon Inc 12/22/22 8/22/27 477,929 500,000 3.15% 474,770
June 2024 ‐ Investment Report Page 3
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of June 30, 2024
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
Toyota Motor Credit Corporation 11/22/22 9/20/27 498,901 500,000 4.55% 493,870
International Bank R & D 11/14/22 9/30/27 493,526 500,000 4.80% 488,315
Apple Inc 11/30/22 11/13/27 477,731 500,000 4.00% 473,725
Inter‐American Development Bank 2/24/23 2/24/28 579,645 580,000 4.38% 571,999
Sub‐Total 6,762,715$ 6,930,000$ 6,676,233$
CAMBRIDGE
CASH HELD FOR INVESTMENTS 60,895$ 60,895$ Varies 60,895$
TOTAL INVESTMENTS 82,440,810$ 82,645,755$ 82,254,034$
Market values are provided by statements from issuers
Cash and Investments by Type Par Value
% of Invested
Cash
BANK ACCOUNTS ‐ non‐invested & FISCAL AGENT 4,949,013$
LAIF 54,438,856$ 66% Not restricted ($75,000,000 max)
CERTIFICATES OF DEPOSIT 11,801,003 14% No more than 30% of Portfolio
U.S. TREASURY/AGENCY SECURITIES 9,415,000 11% No more than 70% of Portfolio
CORPORATE BONDS 6,930,000 8% No more than 25% of Portfolio
CANTELLA & CO., INC.60,895 0%
Total Investments 82,645,755$ 100%
Total ‐ Cash and Investments 87,594,768$
Cash and Investments by Agency Accts Par Value
% of Total
Cash
CITY 87,491,887$ 100%
Successor Agency 11,279 0%
Housing Development Corporation 91,602 0%
Total Investments 87,594,768$ 100%
Pie Charts Reflecting Data
Comparative Data
Policy Restrictions by Investment Type
LAIF
66%CERTIFICATES OF
DEPOSIT
14%
U.S. TREASURY/AGENCY SECURITIES
12%
CORPORATE BONDS
8%
CAMBRIDGE
0%
LAIF
81%
1 Yr
6%
2 Yr
9%
3 Yr
4%
Investments by Category Investments by Maturity
June 2024 ‐ Investment Report Page 4
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of June 30, 2024
4.36%
4.12%
3.81%
3.42%
3.01%
2.63%
1.98%
1.29%
Policy Compliance
Bryan Chua, Finance Director/City Treasurer
Sep 2022 66,247,116
y p y y y y
Policy as approved by the City Council on June 27, 2024. A copy of the Policy may be found on the City's webpage at
Jun 2023 76,667,839
Mar 2023 72,682,760
Dec 2022 65,246,521
Mar 2024 72,912,400
Dec 2023 68,696,366
Sep 2023 69,320,852
Quarter End (excl non‐invested)Effective Yields
Jun 2024 82,645,755
June 2024 ‐ Investment Report Page 5