FC - Item 4A - 2022-23 Qtrly Investment Report to Council - June 2023 - FinalCITY OF ROSEMEAD
Finance Department
MEMORANDUM
TO: Honorable Mayor and Members of the City Council
FROM: Bryan Chua, Finance Director/City Treasurer
DATE: July 27, 2023
SUBJECT: QUARTERLY CASH AND INVESTMENT REPORT – JUNE 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 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 fourth quarter of FY 2022‐23
(June 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 July 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 – June 2023
July 27, 2023
Page 2 of 3
For the quarter ending June 2023, the invested portion of the portfolio totaled $76,667,839, an
increase of $3.99 million from the prior quarter. During the quarter, two Certificates of Deposits
and one U.S. Treasury Note matured. Purchased investments include: twelve 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 increase of $1.36 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 June 30, 2022 through June 30, 2023,
the City’s managed fixed income securities investment balance increased from $7.40 million at
an average return rate of 2.16% to $21.04 million at an average return rate of 4.05%, an increase
of 1.89%. The weighted average maturity days also increased from 584 days to 1119 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 June 2023 to June 2022, total invested cash has
increased $8.57 million. This increase is the result of overall cash increases in nearly all operating
funds. Total cash‐in‐bank and investments on June 30, 2023 is $82,319,569 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.
At the end of the first quarter last fiscal year, the two accounts were combined with the City’s
Total Cash and Investments
Cash Deposits $ 4,528,082
Cash with Fiscal Agent 1,123,647
Invested Cash 76,667,839
$ 82,319,569
Investment Type
Beginning
Balance
Deposits/
Purchases
Withdrawls/
Maturities Ending Balance
LAIF $ 54,247,303 4,360,080 3,000,000 $ 55,607,383
Certificates of Deposit 4,436,000 2,795,000 495,000 6,736,000
US Securities 7,050,000 650,000 325,000 7,375,000
Corporate Bonds 6,930,000 6,930,000
Money Market ‐ Cantella 19,457 ‐ 19,457
$ 72,682,760 7,805,080 3,820,000 $ 76,667,839
Cash and Investment Report – June 2023
July 27, 2023
Page 3 of 3
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 June 2023
Non‐Invested Cash Accounts
Bank
Statement
Amount Market Value
BANK OPERATING ACCOUNTS (1)
City ‐ Bank of the West ‐ General Checking Account 3,697,848$ 3,697,848$
City ‐ Bank of the West ‐ Payroll Account 510,679 510,679
SA ‐ Bank of the West ‐ General Checking Account 10,000 10,000
RHDC ‐ Angelus Security Deposit ‐ City National Bank 17,416 17,416
RHDC ‐ Angelus Operating Account ‐ City National Bank 3,070 3,070
RHDC ‐ Garvey Security Deposit ‐ City National Bank 26,957 26,957
RHDC ‐ Garvey Operating Account 262,112 262,112
TOTAL OPERATING ACCOUNTS 4,528,082$ 4,528,082$
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 14 varies 14
2016 Subordinate Tax Allocation Refunding Bonds:
2016 Interest Account ‐ U.S. Bank 633 varies 633
2016 Reserve Account ‐ U.S. Bank (Non‐cash Ins Policy)‐ ‐ ‐
TOTAL CASH WITH FISCAL AGENT 1,123,647$ 1,123,647$
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) 55,607,383$ 55,607,383$ 2.07% 55,607,383$
CERTIFICATES OF DEPOSIT
BMW Bk North Amer Salt Lake CD 4/20/18 4/20/23 Matured Matured Matured Matured
UBS Bk USA Salt Lake City UT CD 6/13/18 6/13/23 Matured Matured Matured Matured
Morgan Stanley Pvt Bk CD 2/14/19 2/14/24 246,001 246,000 3.05% 242,590
Capital One Natl Assn VA CD 9/24/20 5/30/24 249,793 245,000 2.65% 238,907
Northern Bank & Trust 11/15/22 8/15/24 244,004 244,000 4.75% 242,075
First Utd Bk &Tr Company 12/30/22 12/30/24 249,003 249,000 4.50% 245,596
Wells Fargo Bank Natl Assn CD 9/24/20 1/29/25 250,485 245,000 1.95% 232,035
Discover BK CD 6/1/22 6/2/25 245,004 245,000 3.10% 234,686
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of June 30, 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.
LIQUID
June 2023 ‐ Investment Report Page 1
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of June 30, 2023
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
Goldman Sachs Bk USA CD 6/1/22 6/2/25 245,004 245,000 3.00% 234,242
BMO Bank 5/9/23 5/8/26 244,003 244,000 4.60% 238,844
Greenstate Credit Union 5/17/23 5/18/26 249,003 249,000 4.80% 245,004
Alabama Credit Union 6/20/23 6/22/26 248,003 248,000 5.00% 245,274
Austin Telco Federal Credit Union 11/28/22 11/27/26 249,005 248,000 5.05% 245,555
Celtic Bank 12/19/22 12/21/26 249,005 249,000 4.20% 239,847
M&T Bank Corporation 1/20/23 1/20/27 244,003 244,000 4.00% 233,415
Texas Exchange Bank 2/24/23 2/24/27 248,003 248,000 4.10% 237,760
Global Federal Credit Union 5/12/23 5/12/27 249,003 249,000 4.60% 242,655
Ideal Cr Un Woodbury 12/29/22 12/29/27 249,003 249,000 4.50% 241,094
First Tech Federal Credit Union 2/3/23 2/3/28 248,003 248,000 4.35% 245,093
Liberty First 2/3/23 2/3/28 249,003 249,000 5.00% 239,476
Synchrony Bank 3/24/23 3/24/28 243,003 243,000 5.00% 240,125
American Express National Bank 3/29/23 3/29/28 244,003 244,000 4.75% 238,578
Morgan Stanley Bank NA 4/20/23 4/20/28 244,003 244,000 4.65% 237,563
Univest National Bank 5/12/23 5/12/28 249,003 249,000 4.35% 239,115
CIBC Bank USA 5/16/23 5/16/28 244,003 244,000 4.35% 234,364
Medallion Bank 5/18/23 5/24/28 248,003 248,000 5.00% 245,155
First County Bank 5/26/23 5/26/28 123,003 123,000 5.00% 121,542
Numerica Credit Union 5/30/23 5/30/28 200,003 200,000 4.70% 197,612
Thread Bank 6/16/23 6/16/28 249,003 249,000 4.40% 247,103
Jefferson Credit Union 6/20/23 6/20/28 248,003 248,000 5.37% 246,661
Sub‐Total 6,747,366$ 6,736,000$ 6,571,968$
U.S. TREASURY/AGENCY SECURITIES
Federal Home Ln Mtg Corp Note 11/9/18 6/19/23 Matured Matured Matured Matured
Federal Home Loan Bank 11/8/18 9/8/23 250,149 250,000 3.38% 249,043
Federal Farm Cr Bks Bond 11/8/18 10/2/23 249,993 250,000 3.05% 248,478
Federal Home Loan Bank 12/23/22 3/8/24 501,336 500,000 4.35% 497,565
US Treasury Note ‐ Series J 3/24/22 3/31/24 250,002 250,000 2.13% 244,023
Federal Agriculture Mortgage Corp 12/22/22 12/5/24 501,852 500,000 4.81% 495,285
Federal Home Ln Mtg Corp Note 11/9/22 3/13/25 376,921 385,000 4.70% 375,394
Federal Farm Cr Bks Bond 6/9/22 5/23/25 315,004 315,000 2.85% 302,482
Federal Home Loan Bank 4/19/23 7/18/25 271,456 275,000 4.21% 267,594
Federal Home Loan Mtg Corp Mtn 8/16/22 8/25/25 280,004 280,000 3.50% 270,928
Federal Home Loan Bank 8/23/22 8/25/25 250,004 250,000 4.06% 244,470
Federal Natl Mtg Assn Note 2/10/23 8/28/25 292,157 295,000 4.00% 287,752
Federal Home Loan Bank 11/16/22 4/29/26 480,006 500,000 4.26% 475,890
Federal Agriculture Mortgage Corp 6/22/23 6/12/26 375,003 375,000 5.28% 372,019
Federal Home Ln Mtg Corp 3/6/23 6/29/26 265,003 265,000 5.05% 261,926
June 2023 ‐ Investment Report Page 2
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of June 30, 2023
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
Federal Home Loan Bank 11/29/22 9/21/26 498,756 500,000 4.57% 489,030
Federal Home Loan Bank 3/22/23 3/22/27 277,581 275,000 5.29% 272,902
Federal Home Ln Mtg Corp Note 2/22/23 6/17/27 220,003 220,000 5.13% 216,940
Federal Home Ln Mtg Corp Note 11/30/22 8/25/27 388,336 390,000 4.50% 379,661
Federal Home Loan Bank 11/15/22 9/14/27 491,361 500,000 4.40% 482,505
Federal Home Loan Bank 3/20/23 9/20/27 304,052 300,000 5.14% 298,398
Federal Home Ln Mtg Corp Note 2/21/23 2/7/28 499,979 500,000 5.00% 491,905
Sub‐Total 7,338,957$ 7,375,000$ 7,224,188$
CORPORATE BONDS
Wells Fargo Co Mtn Be 10/17/19 9/9/24 253,503 250,000 3.30% 243,540
Barclays Bank Plc Ser A Mtn 8/6/20 1/20/25 554,466 550,000 1.50% 512,452
Citigroup Global Mkts Hldgs In Ser N 7/31/20 7/31/25 800,002 800,000 1.10% 725,016
Capital Impact Partners Invt Mtn 9/24/20 9/15/25 250,003 250,000 1.00% 213,695
Morgan Stanley 11/23/22 1/27/26 489,376 500,000 4.60% 482,655
Berkshire Hathaway 12/23/22 3/15/26 486,454 500,000 4.03% 481,635
JP Morgan Chase 1/27/23 4/1/26 487,449 500,000 4.15% 476,340
US Bancorp 11/14/22 4/27/26 470,206 500,000 5.00% 467,265
Bank of NY 11/14/22 1/26/27 446,456 500,000 4.90% 449,955
Amazon Inc 12/22/22 8/22/27 477,929 500,000 3.15% 470,430
Toyota Motor Credit Corporation 11/22/22 9/20/27 498,901 500,000 4.55% 493,015
International Bank R & D 11/14/22 9/30/27 493,526 500,000 4.80% 492,065
Apple Inc 11/30/22 11/13/27 477,731 500,000 4.00% 471,080
Inter‐American Development Bank 2/24/23 2/24/28 579,914 580,000 4.38% 580,323
Sub‐Total 6,765,912$ 6,930,000$ 6,559,465$
CAMBRIDGE
CASH HELD FOR INVESTMENTS 19,457$ 19,457$ Varies 19,457$
TOTAL INVESTMENTS 76,479,075$ 76,667,839$ 75,982,461$
Market values are provided by statements from issuers
Cash and Investments by Type Par Value
% of Invested
Cash
BANK ACCOUNTS ‐ non‐invested & FISCAL AGENT 5,651,729$
LAIF 55,607,383$ 73% Not restricted
CERTIFICATES OF DEPOSIT 6,736,000 9% No more than 30% of Portfolio
U.S. TREASURY/AGENCY SECURITIES 7,375,000 10% No more than 70% of Portfolio
CORPORATE BONDS 6,930,000 9% No more than 25% of Portfolio
CANTELLA & CO., INC.19,457 0%
Total Investments 76,667,839$ 100%
Total ‐ Cash and Investments 82,319,569$
Policy Restrictions by Investment Type
June 2023 ‐ Investment Report Page 3
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of June 30, 2023
Cash and Investments by Agency Accts Par Value
% of Total
Cash
CITY 80,876,366$ 98%
Successor Agency 1,133,647 1%
Housing Development Corporation 309,555 0%
Total Investments 82,319,569$ 100%
Pie Charts Reflecting Data
Comparative Data
3.01%
2.63%
1.98%
1.29%
0.69%
0.29%
0.21%
0.22%
Policy Compliance
Bryan Chua, Finance Director/City Treasurer
Sep 2021 49,512,983
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 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.
Jun 2022 68,101,330
Mar 2022 55,528,974
Dec 2021 51,976,131
Mar 2023 72,682,760
Dec 2022 65,246,521
Sep 2022 66,247,116
Quarter End
Invested Cash
(excl non‐invested)
Average Quarterly LAIF
Effective Yields
Jun 2023 76,667,839
LAIF
72%
CERTIFICATES OF
DEPOSIT
9%
U.S. TREASURY/AGENCY SECURITIES
10%
CORPORATE BONDS
9%
CAMBRIDGE
0%
LAIF
83%
1 Yr
3%
2 Yr
5%
3 Yr
9%
Investments by Category Investments by Maturity
June 2023 ‐ Investment Report Page 4