01-29-2024 - Agenda Packet
City of Rosemead
Investment Committee
Quarterly Meeting Agenda
January 29, 2024
At 10:30 A.M.
8838 E. Valley Boulevard, Rosemead, CA 91770
Ben Kim, City Manager
Bryan Chua, Finance Director
Ericka Hernandez, City Clerk
1. CALL TO ORDER – 10:30 A.M.
2. ROLL CALL
City Manager Kim
Finance Director Chua
City Clerk Hernandez
3. FINANCE COMMITTEE MEETING MINUTES
- Approval of the October 27, 2023, Regular Meeting Minutes
4. STATUS REPORTS
- Review of the Quarterly Cash and Investment Report ending on December 2023
5. ADJOURNMENT
Finance Investment Committee Minutes of October 27, 2023
Page 1 of 1
CITY OF ROSEMEAD
FINANCE INVESTMENT COMMITTEE
QUARTERLY MEETING MINUTES
OCTOBER 27, 2023
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, 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 July 27, 2023, regular meeting minutes. Motion was carried by the following votes:
AYES: Kim and Chua.
4. STATUS REPORTS
Review of Quarterly Cash and Investment Report ending on September 2023
The treasurer’s reports were reviewed by Finance Director Chua.
5. NEW BUSINESS
None.
6. ADJOURNMENT
The meeting was adjourned at 3:36 p.m.
Respectfully submitted: Approved:
__________________________ ____________________________
City Clerk City Manager
CITY OF ROSEMEAD
Finance Department
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Honorable Mayor and Members of the City Council
Bryan Chua, Finance Director/City Treasurer
January 29, 2024
QUARTERLY CASH AND INVESTMENT REPORT – DECEMBER 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 second quarter of FY 2023‐24
(December 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 January 29, 2024 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 2023
January 29, 2024
Page 2 of 2
For the quarter ending December 2023, the invested portion of the portfolio totaled
$68,696,366, a decrease of $627 thousand from the prior quarter. 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: four 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 $1.5 million in LAIF balances. The investment activity
is a continued rebalancing effort to take advantage of increased investment rates in the broader
fixed income securities market. From December 31, 2022 through December 31, 2023, the City’s
managed fixed income securities investment balance increased from $15.23 million at an average
return rate of 3.55% to $25.07 million at an average return rate of 4.24%, an increase of 69 basis
points or 0.69%. As reflected in the ‘Comparative Data’ section, invested cash has increased over
the past year. Comparing December 2023 to December 2022, total invested cash has increased
$3.45 million. This increase is the result of overall cash increases in nearly all operating funds.
Total cash‐in‐bank and investments on December 31, 2023 is $73,397,261 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.
ATTACHMENT
Cash and Investment Report – Quarter Ending December 2023
Investment Type
Beginning
Balance
Deposits/
Purchases
Withdrawls/
Maturities Ending Balance
LAIF $ 45,024,561 470,790 2,000,000 $ 43,495,350
Certificates of Deposit 8,714,000 985,000 9,699,000
US Securities 8,060,000 635,000 250,000 8,445,000
Corporate Bonds 6,930,000 6,930,000
Money Market ‐ Cantella 592,292 465,276 127,016
$ 69,320,852 2,090,790 2,715,276 $ 68,696,366
Total Cash and Investments
Cash Deposits $ 3,572,477
Cash with Fiscal Agent 1,128,418
Invested Cash 68,696,366
$ 73,397,261
Non‐Invested Cash Accounts
Bank
Statement
Amount Market Value
BANK OPERATING ACCOUNTS (1)
City ‐ BMO ‐ General Checking Account 3,034,767$ 3,034,767$
City ‐ BMO ‐ Payroll Account 286,822 286,822
SA ‐ BMO ‐ General Checking Account 10,000 10,000
RHDC ‐ Angelus Security Deposit ‐ City National Bank 18,320 18,320
RHDC ‐ Angelus Operating Account ‐ City National Bank 2,277 2,277
RHDC ‐ Garvey Security Deposit ‐ City National Bank 26,970 26,970
RHDC ‐ Garvey Operating Account 193,321 193,321
TOTAL OPERATING ACCOUNTS 3,572,477$ 3,572,477$
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 5,404 varies 5,404
2016 Reserve Account ‐ U.S. Bank (Non‐cash Ins Policy)‐ ‐‐
TOTAL CASH WITH FISCAL AGENT 1,128,418$ 1,128,418$
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)43,495,350$ 43,495,350$ 2.07% 43,495,350$
CERTIFICATES OF DEPOSIT
Morgan Stanley Pvt Bk CD 2/14/19 2/14/24 246,000 246,000 3.05% 245,250
Capital One Natl Assn VA CD 9/24/20 5/30/24 247,184 245,000 2.65% 242,457
Northern Bank & Trust 11/15/22 8/15/24 244,003 244,000 4.75% 243,510
Blupeak Credit Union 9/19/23 9/19/24 248,003 248,000 5.75% 249,004
Affinity Federal CU 11/1/23 10/31/24 248,003 248,000 5.80% 249,282
First Utd Bk &Tr Company 12/30/22 12/30/24 249,002 249,000 4.50% 247,426
Wells Fargo Bank Natl Assn CD 9/24/20 1/29/25 248,768 245,000 1.95% 236,842
Discover BK CD 6/1/22 6/2/25 245,003 245,000 3.10% 238,650
Goldman Sachs Bk USA CD 6/1/22 6/2/25 245,003 245,000 3.00% 238,316
BMO Bank 5/9/23 5/8/26 244,003 244,000 4.60% 242,785
Greenstate Credit Union 5/17/23 5/18/26 249,003 249,000 4.80% 248,871
LIQUID
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of December 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.
December 2023 ‐ Investment Report Page 1
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of December 31, 2023
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
Alabama Credit Union 6/20/23 6/22/26 248,003 248,000 5.00% 248,965
Austin Telco Federal Credit Union 11/28/22 11/27/26 248,005 248,000 5.05% 249,049
Celtic Bank 12/19/22 12/21/26 249,005 249,000 4.20% 244,164
M&T Bank Corporation 1/20/23 1/20/27 244,003 244,000 4.00% 237,798
Texas Exchange Bank 2/24/23 2/24/27 248,003 248,000 4.10% 242,410
Global Federal Credit Union 5/12/23 5/12/27 249,003 249,000 4.60% 247,220
Chartway Federal CU 9/8/23 9/8/27 248,007 248,000 5.00% 249,972
Connexus Credit Union 9/26/23 9/27/27 248,003 248,000 5.05% 250,540
Ideal Cr Un Woodbury 12/29/22 12/29/27 249,003 249,000 4.50% 247,187
First Tech Federal Credit Union 2/3/23 2/3/28 248,003 248,000 4.35% 248,047
Liberty First 2/3/23 2/3/28 249,003 249,000 5.00% 246,077
Synchrony Bank 3/24/23 3/24/28 243,003 243,000 5.00% 246,465
American Express National Bank 3/29/23 3/29/28 244,003 244,000 4.75% 245,208
Pitney Bowes Bank 8/31/23 4/13/28 243,460 245,000 4.50% 242,631
Morgan Stanley Bank NA 4/20/23 4/20/28 244,003 244,000 4.65% 243,934
HSBC Bank USA 8/31/23 4/21/28 239,616 249,000 4.50% 239,346
Univest National Bank 5/12/23 5/12/28 249,003 249,000 4.35% 246,806
CIBC Bank USA 5/16/23 5/16/28 244,003 244,000 4.35% 241,860
Medallion Bank 5/18/23 5/24/28 248,003 248,000 5.00% 248,404
First County Bank 5/26/23 5/26/28 123,003 123,000 5.00% 123,202
Numerica Credit Union 5/30/23 5/30/28 200,003 200,000 4.70% 204,040
Thread Bank 6/16/23 6/16/28 249,003 249,000 4.40% 255,190
Jefferson Credit Union 6/20/23 6/20/28 248,003 248,000 5.37% 249,642
Bank of the Sierra 8/31/23 8/18/28 244,003 244,000 4.50% 244,112
Freedom Northwest CU 9/19/23 9/19/28 248,003 248,000 5.65% 252,915
Empower Credit Union 9/29/23 9/29/28 248,004 248,000 5.10% 255,016
Dort Financial CU 10/10/23 10/10/28 246,003 246,000 5.00% 252,128
Utah First Federal CU 10/30/23 10/30/28 248,003 248,000 5.10% 255,482
Townebank 11/15/23 11/15/28 243,003 243,000 5.70% 244,106
Sub‐Total 9,694,146$ 9,699,000$ 9,684,307$
U.S. TREASURY/AGENCY SECURITIES
Federal Farm Cr Bks Bond 11/8/18 10/2/23 Matured Matured Matured Matured
Federal Home Loan Bank 12/23/22 3/8/24 500,370 500,000 4.35% 499,430
US Treasury Note ‐ Series J 3/24/22 3/31/24 250,001 250,000 2.13% 248,008
Federal Agriculture Mortgage Corp 12/22/22 12/5/24 501,221 500,000 4.81% 498,585
Federal Home Ln Mtg Corp Note 11/9/22 3/13/25 376,921 385,000 4.70% 380,819
Federal Natl Mtg Assn Note 9/28/23 5/22/25 499,004 500,000 5.25% 500,595
Federal Farm Cr Bks Bond 6/9/22 5/23/25 315,003 315,000 2.85% 307,872
Federal Home Loan Bank 4/19/23 7/18/25 271,456 275,000 4.21% 271,585
December 2023 ‐ Investment Report Page 2
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of December 31, 2023
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
Federal Home Loan Mtg Corp Mtn 8/16/22 8/25/25 280,003 280,000 3.50% 275,834
Federal Home Loan Bank 8/23/22 8/25/25 250,003 250,000 4.06% 247,453
Federal Natl Mtg Assn Note 2/10/23 8/28/25 292,157 295,000 4.00% 292,897
Federal Home Loan Bank 11/16/22 4/29/26 480,006 500,000 4.26% 485,235
Federal Agriculture Mortgage Corp 6/22/23 6/12/26 375,003 375,000 5.28% 373,823
Federal Home Ln Mtg Corp 3/6/23 6/29/26 265,003 265,000 5.05% 263,961
Federal Home Loan Bank 11/29/22 9/21/26 498,756 500,000 4.57% 500,155
Federal Home Loan Bank 3/22/23 3/22/27 277,265 275,000 5.29% 274,049
Federal Home Ln Mtg Corp Note 2/22/23 6/17/27 220,003 220,000 5.13% 218,489
Federal Home Ln Mtg Corp Note 11/30/22 8/25/27 388,336 390,000 4.50% 383,690
Federal Home Loan Bank 11/15/22 9/14/27 491,361 500,000 4.40% 489,400
Federal Home Loan Bank 3/20/23 9/20/27 303,618 300,000 5.14% 299,877
Federal Home Ln Mtg Corp Note 2/21/23 2/7/28 499,979 500,000 5.00% 496,575
Federal Home Ln Mtg Corp Note 10/18/23 7/18/28 384,041 385,000 5.06% 390,128
Federal Home Ln Mtg Corp Note 9/19/23 9/19/28 434,351 435,000 5.25% 431,677
Federal Home Ln Mtg Corp Note 10/16/23 10/16/28 249,379 250,000 5.31% 250,375
Sub‐Total 8,403,237$ 8,445,000$ 8,380,508$
CORPORATE BONDS
Wells Fargo Co Mtn Be 10/17/19 9/9/24 252,047 250,000 3.30% 246,700
Barclays Bank Plc Ser A Mtn 8/6/20 1/20/25 554,466 550,000 1.50% 526,559
Citigroup Global Mkts Hldgs In Ser N 7/31/20 7/31/25 800,002 800,000 1.10% 736,600
Capital Impact Partners Invt Mtn 9/24/20 9/15/25 250,002 250,000 1.00% 221,835
Morgan Stanley 11/23/22 1/27/26 489,376 500,000 4.60% 489,705
Berkshire Hathaway 12/23/22 3/15/26 486,454 500,000 4.03% 486,185
JP Morgan Chase 1/27/23 4/1/26 487,449 500,000 4.15% 483,990
US Bancorp 11/14/22 4/27/26 470,206 500,000 5.00% 479,140
Bank of NY 11/14/22 1/26/27 446,456 500,000 4.90% 464,585
Amazon Inc 12/22/22 8/22/27 477,929 500,000 3.15% 479,885
Toyota Motor Credit Corporation 11/22/22 9/20/27 498,901 500,000 4.55% 503,875
International Bank R & D 11/14/22 9/30/27 493,526 500,000 4.80% 496,650
Apple Inc 11/30/22 11/13/27 477,731 500,000 4.00% 479,815
Inter‐American Development Bank 2/24/23 2/24/28 579,781 580,000 4.38% 582,461
Sub‐Total 6,764,323$ 6,930,000$ 6,677,985$
CAMBRIDGE
CASH HELD FOR INVESTMENTS 127,016$ 127,016$ Varies 127,016$
TOTAL INVESTMENTS 68,484,072$ 68,696,366$ 68,365,166$
Market values are provided by statements from issuers
December 2023 ‐ Investment Report Page 3
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of December 31, 2023
Cash and Investments by Type Par Value
% of Invested
Cash
BANK ACCOUNTS ‐ non‐invested & FISCAL AGENT 4,700,895$
LAIF 43,495,350$ 63% Not restricted
CERTIFICATES OF DEPOSIT 9,699,000 14% No more than 30% of Portfolio
U.S. TREASURY/AGENCY SECURITIES 8,445,000 12% No more than 70% of Portfolio
CORPORATE BONDS 6,930,000 10% No more than 25% of Portfolio
CANTELLA & CO., INC.127,016 0%
Total Investments 68,696,366$ 100%
Total ‐ Cash and Investments 73,397,261$
Cash and Investments by Agency Accts Par Value
% of Total
Cash
CITY 72,017,955$ 98%
Successor Agency 1,138,418 2%
Housing Development Corporation 240,888 0%
Total Investments 73,397,261$ 100%
Pie Charts Reflecting Data
Policy Restrictions by Investment Type
LAIF
64%
CERTIFICATES OF
DEPOSIT
14%
U.S. TREASURY/AGENCY SECURITIES
12%
CORPORATE BONDS
10%
CAMBRIDGE
0%
LAIF
78%
1 Yr
5%
2 Yr
8%
3 Yr
9%
Investments by Category Investments by Maturity
December 2023 ‐ Investment Report Page 4
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of December 31, 2023
Comparative Data
3.81%
3.42%
3.01%
2.63%
1.98%
1.29%
0.69%
0.29%
Policy Compliance
Bryan Chua, Finance Director/City Treasurer
Quarter End
Invested Cash
(excl non‐invested)
Average Quarterly LAIF
Effective Yields
Dec 2023 68,696,366
Sep 2023 69,320,852
Jun 2023 76,667,839
Mar 2023 72,682,760
Mar 2022 55,528,974
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.
Dec 2022 65,246,521
Sep 2022 66,247,116
Jun 2022 68,101,330
0%
December 2023 ‐ Investment Report Page 5