FC - Agenda - 04-24-23
City of Rosemead
Investment Committee
Quarterly Meeting Agenda
April 27, 2023
At 9:00 A.M.
8838 E. Valley Boulevard, Rosemead, CA 91770
Ben Kim, City Manager
Mike Bruckner, Assistant City Manager
Bryan Chua, Finance Director
Ericka Hernandez, City Clerk
1. CALL TO ORDER – 9:00 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 January 31, 2023, Regular Meeting Minutes
4. STATUS REPORTS
- Review of the Quarterly Cash and Investment Report ending on March 2023
5. ADJOURNMENT
Finance Investment Committee Minutes of January 31,2023
Page 1 of 1
CITY OF ROSEMEAD
FINANCE INVESTMENT COMMITTEE
QUARTERLY MEETING MINUTES
JANUARY 31, 2023
1. CALL TO ORDER
The quarterly meeting of the Rosemead City Finance Investment Committee was called
to order by City Clerk Hernandez at 10:00 a.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 October 26, 2022, regular meeting minutes. Motion was carried by the
following votes: AYES: Kim, Bruckner, and Chua.
4. STATUS REPORTS
Review of Quarterly Cash and Investment Report ending on December 31, 2022
The treasurer’s reports were reviewed by Finance Director Chua.
5. NEW BUSINESS
None.
6. ADJOURNMENT
The meeting was adjourned at 10:20 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: April 27, 2023
SUBJECT: QUARTERLY CASH AND INVESTMENT REPORT – March 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 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 third quarter of FY 2022‐23
(March 31, 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 April 27, 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 – March 2023
April 27, 2023
Page 2 of 3
For the quarter ending March 2023, the invested portion of the portfolio totaled $72,682,760, an
increase of $7.44 million from the prior quarter. During the quarter, three Certificates of Deposits
and two Corporate Bonds matured. Purchased investments include: six Certificates of Deposits,
six new U.S. Treasury Notes, and 2 Corporate Bonds were purchased. There were also numerous
deposits and withdrawals to LAIF funds, resulting in a net increase of $4.3 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 March 31, 2023, the City’s managed fixed income securities investment balance
increased from $7.4 million at an average return rate of 2.16% to $18.4 million at an average
return rate of 3.88%, an increase of 1.72%. The weighted average maturity days also increased
from 584 days to 1099 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 significantly over the past year. Comparing March 2023 to
March 2022, total invested cash has increased $17.2 million. This increase is the result of the
receipt of American Rescue Plan funding and overall cash increases in nearly all operating funds.
Total cash‐in‐bank and investments on March 31, 2023 is $78,271,943 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
funds separately and City Council to approve three separate resolutions for warrant approvals.
Cash
Deposits
5%
Cash with
Fiscal Agent
2%
Invested
Cash
93%
Total Cash and Investments
Cash Deposits $ 4,082,775
Cash with Fiscal Agent 1,506,408
Invested Cash 72,682,760
$ 78,271,943
Cash and Investment Report – March 2023
April 27, 2023
Page 3 of 3
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 March 2023
Non‐Invested Cash Accounts
Bank
Statement
Amount Market Value
BANK OPERATING ACCOUNTS (1)
City ‐ Bank of the West ‐ General Checking Account 3,260,212$ 3,260,212$
City ‐ Bank of the West ‐ Payroll Account 502,915 502,915
SA ‐ Bank of the West ‐ General Checking Account 10,000 10,000
RHDC ‐ Angelus Security Deposit ‐ City National Bank 17,362 17,362
RHDC ‐ Angelus Operating Account ‐ City National Bank 905 905
RHDC ‐ Garvey Security Deposit ‐ City National Bank 26,166 26,166
RHDC ‐ Garvey Operating Account 265,216 265,216
TOTAL OPERATING ACCOUNTS 4,082,775$ 4,082,775$
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 27 varies 27
2016 Subordinate Tax Allocation Refunding Bonds:
2016 Interest Account ‐ U.S. Bank 383,382 varies 383,382
2016 Reserve Account ‐ U.S. Bank (Non‐cash Ins Policy)‐ ‐ ‐
TOTAL CASH WITH FISCAL AGENT 1,506,408$ 1,506,408$
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) 54,247,303$ 54,247,303$ 2.07% 54,247,303$
CERTIFICATES OF DEPOSIT
Wells Fargo Natl Bk West Las V CD 1/17/20 1/17/23 Matured Matured Matured Matured
Live Oak Bkg Co NC CD 1/25/20 1/25/23 Matured Matured Matured Matured
Morgan Stanley Bk N A Utah CD 2/22/18 2/22/23 Matured Matured Matured Matured
BMW Bk North Amer Salt Lake CD 4/20/18 4/20/23 246,000 246,000 3.00% 245,732
UBS Bk USA Salt Lake City UT CD 6/13/18 6/13/23 249,000 249,000 3.25% 248,126
Morgan Stanley Pvt Bk CD 2/14/19 2/14/24 246,001 246,000 3.05% 241,656
Capital One Natl Assn VA CD 9/24/20 5/30/24 250,941 245,000 2.65% 238,275
LIQUID
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 2023
(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.
March 2023 ‐ Investment Report Page 1
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 2023
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
Northern Bank & Trust 11/15/22 8/15/24 244,004 244,000 4.75% 243,041
First Utd Bk &Tr Company 12/30/22 12/30/24 249,003 249,000 4.50% 246,961
Wells Fargo Bank Natl Assn CD 9/24/20 1/29/25 251,245 245,000 1.95% 232,049
Discover BK CD 6/1/22 6/2/25 245,004 245,000 3.10% 235,793
Goldman Sachs Bk USA CD 6/1/22 6/2/25 245,004 245,000 3.00% 235,293
Austin Telco Federal Credit Union 11/28/22 11/27/26 248,005 248,000 5.05% 249,151
Celtic Bank 12/19/22 12/21/26 249,005 249,000 4.20% 242,974
M&T Bank Corporation 1/20/23 1/20/27 244,003 244,000 4.00% 236,326
Texas Exchange Bank 2/24/23 2/24/27 248,003 248,000 4.10% 240,838
Ideal Cr Un Woodbury 12/29/22 12/29/27 249,003 249,000 4.50% 245,165
Liberty First 2/3/23 2/3/28 249,003 249,000 5.00% 243,564
First Tech Federal Credit Union 2/3/23 2/3/28 248,003 248,000 4.35% 248,112
Synchrony Bank 3/24/23 3/24/28 243,003 243,000 5.00% 244,623
American Express National Bank 3/29/23 3/29/28 244,003 244,000 4.75% 242,963
Sub‐Total 4,448,238$ 4,436,000$ 4,360,642$
U.S. TREASURY/AGENCY SECURITIES
Federal Home Ln Mtg Corp Note 11/9/18 6/19/23 320,833$ 325,000$ 2.75% 323,557$
Federal Home Loan Bank 11/8/18 9/8/23 250,324 250,000 3.38% 248,435
Federal Farm Cr Bks Bond 11/8/18 10/2/23 249,993 250,000 3.05% 247,860
Federal Home Loan Bank 12/23/22 3/8/24 501,757 500,000 4.35% 499,650
US Treasury Note ‐ Series J 3/24/22 3/31/24 250,003 250,000 2.13% 243,985
Federal Home Ln Mtg Corp Note 11/9/22 3/13/25 376,921 385,000 4.70% 380,214
Federal Farm Cr Bks Bond 6/9/22 5/23/25 315,004 315,000 2.85% 305,771
Federal Home Ln Mtg Corp Mtn 8/16/22 8/25/25 280,005 280,000 3.50% 274,058
Federal Home Loan Bank 8/23/22 8/25/25 250,005 250,000 4.06% 246,175
Federal Natl Mtg Assn Note 2/10/23 8/28/25 292,157 295,000 4.00% 290,808
Federal Home Loan Bank 11/16/22 4/29/26 480,006 500,000 4.26% 481,480
Federal Home Ln Mtg Corp 3/6/23 6/29/26 265,003 265,000 5.05% 263,641
Federal Home Loan Bank 11/29/22 9/21/26 498,756 500,000 4.57% 493,175
Federal Home Loan Bank 3/22/23 3/22/27 277,719 275,000 5.29% 276,147
Federal Home Ln Mtg Corp Note 2/22/23 6/17/27 220,003 220,000 5.13% 218,398
Federal Agriculture Mortgage Corp 12/22/22 12/5/24 502,125 500,000 4.81% 499,200
Federal Home Ln Mtg Corp Note 11/30/22 8/25/27 388,336 390,000 4.50% 383,218
Federal Home Loan Bank 11/15/22 9/14/27 491,361 500,000 4.40% 487,750
Federal Home Loan Bank 3/20/23 9/20/27 304,241 300,000 5.14% 301,488
Federal Home Ln Mtg Corp Note 2/21/23 2/7/28 499,979 500,000 5.00% 496,090
Sub‐Total 7,014,529$ 7,050,000$ 6,961,100$
March 2023 ‐ Investment Report Page 2
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 2023
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
CORPORATE BONDS
JP Morgan Chase & Co Note 4/11/18 1/25/23 Matured Matured Matured Matured
BNP Paribas/ BNP Paribas Us Mtn 3/8/18 3/3/23 Matured Matured Matured Matured
Wells Fargo Co Mtn Be 10/17/19 9/9/24 254,141 250,000 3.30% 243,685
Barclays Bank Plc Ser A Mtn 8/6/20 1/20/25 554,466 550,000 1.50% 512,193
Citigroup Global Mkts Hldgs In Ser N 7/31/20 7/31/25 800,003 800,000 1.10% 709,112
Capital Impact Partners Invt Mtn 9/24/20 9/15/25 250,003 250,000 1.00% 225,250
Morgan Stanley 11/23/22 1/27/26 489,376 500,000 4.60% 487,930
Berkshire Hathaway 12/23/22 3/15/26 486,454 500,000 4.03% 486,940
JP Morgan Chase 1/27/23 4/1/26 487,449 500,000 4.15% 482,140
US Bancorp 11/14/22 4/27/26 470,206 500,000 5.00% 464,470
Bank of NY 11/14/22 1/26/27 446,456 500,000 4.90% 451,055
Amazon Inc 12/22/22 8/22/27 477,929 500,000 3.15% 481,730
Toyota Motor Credit Corporation 11/22/22 9/20/27 498,901 500,000 4.55% 502,670
International Bank R & D 11/14/22 9/30/27 493,526 500,000 4.80% 500,925
Apple Inc 11/30/22 11/13/27 477,731 500,000 4.00% 480,265
Inter‐American Development Bank 2/24/23 2/24/28 579,972 580,000 4.38% 585,450
Sub‐Total 6,766,608$ 6,930,000$ 6,613,815$
CAMBRIDGE
CASH HELD FOR INVESTMENTS 19,457$ 19,457$ Varies 19,457$
TOTAL INVESTMENTS 72,496,134$ 72,682,760$ 72,202,317$
Market values are provided by statements from issuers
Cash and Investments by Type Par Value
% of Invested
Cash
BANK ACCOUNTS ‐ non‐invested & FISCAL AGENT 5,589,183$
LAIF 54,247,303$ 75% Not restricted
CERTIFICATES OF DEPOSIT 4,436,000 6% No more than 30% of Portfolio
U.S. TREASURY/AGENCY SECURITIES 7,050,000 10% No more than 70% of Portfolio
CORPORATE BONDS 6,930,000 10% No more than 25% of Portfolio
CANTELLA & CO., INC.19,457 0%
Total Investments 72,682,760$ 100%
Total ‐ Cash and Investments 78,271,943$
Cash and Investments by Agency Accts Par Value
% of Total
Cash
CITY 76,445,886$ 98%
Successor Agency 1,516,408 2%
Housing Development Corporation 309,648 0%
Total Investments 78,271,943$ 100%
Policy Restrictions by Investment Type
March 2023 ‐ Investment Report Page 3
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 2023
Pie Charts Reflecting Data
Comparative Data
2.63%
1.98%
1.29%
0.69%
0.29%
0.21%
0.22%
0.31%
Policy Compliance
Bryan Chua, Finance Director/City Treasurer
Jun 2021 51,754,478
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.
Mar 2022 55,528,974
Dec 2021 51,976,131
Sep 2021 49,512,983
Dec 2022 65,246,521
Sep 2022 66,247,116
Jun 2022 68,101,330
Quarter End
Invested Cash
(excl non‐invested)
Average Quarterly LAIF
Effective Yields
Mar 2023 72,682,760
LAIF
75%
CERTIFICATES OF
DEPOSIT
6%
U.S. TREASURY/AGENCY SECURITIES
10%
CORPORATE BONDS
9%
CAMBRIDGE
0%
LAIF
85%
1 Yr
3%
2 Yr
5%
3 Yr
7%
Investments by Category Investments by Maturity
March 2023 ‐ Investment Report Page 4