04-29-2024 - Agenda Packet
City of Rosemead
Investment Committee
Quarterly Meeting Agenda
April 29, 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 January 29, 2023, Regular Meeting Minutes
4. STATUS REPORTS
- Review of the Quarterly Cash and Investment Report ending on March 2024
5. ADJOURNMENT
Finance Investment Committee Minutes of January 29, 2024
Page 1 of 1
CITY OF ROSEMEAD
FINANCE INVESTMENT COMMITTEE
QUARTERLY MEETING MINUTES
JANUARY 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 10:30 a.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 October 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 December 2023
The treasurer’s reports were reviewed by Finance Director Chua.
5. ADJOURNMENT
The meeting was adjourned at 10:45 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: April 29, 2024
SUBJECT: QUARTERLY CASH AND INVESTMENT REPORT – MARCH 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 13, 2023, 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 second
quarter of FY 2023‐24 (March 31, 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 April 29, 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 – March 2023
April 29, 2024
Page 2 of 2
The invested portion of the portfolio amounted to $72,912,400 for the quarter ending March
2024, representing a $4.2 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
months of January and May. During the quarter, one Certificate of Deposit and one U.S.
Treasury reached its maturity date, and one U.S. Treasury security was redeemed. The
investments that were purchased include six Certificates of Deposits and three 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 $2.5 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. Between March 31, 2023 and
March 31, 2024, the City's investment balance in fixed income securities increased from $18.4
million to $26.45 million. The average return rate also increased from 3.88% to 4.26%, resulting
in a 0.38% increase or 38 basis points. As indicated in the 'Comparative Data' section, the amount
of cash invested has shown an upward trend in the past year. In March 2024, the total amount
of cash invested has increased by $229 thousand compared to March 2023. 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 March 31, 2024 is $77,844,572, 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 usually adjusted to ensure that they are sufficient to cover any outstanding
checks and upcoming expenses.
ATTACHMENT
Cash and Investment Report – Quarter Ending March 2024
Investment Type
Beginning
Balance
Deposits/
Purchases
Withdrawls/
Maturities Ending Balance
LAIF $ 43,495,350 3,451,394 1,000,000 $ 45,946,744
Certificates of Deposit 9,699,000 1,368,000 246,000 10,821,000
US Securities 8,445,000 1,500,000 1,000,000 8,945,000
Corporate Bonds 6,930,000 6,930,000
Money Market ‐ Cantella 127,016 142,640 269,656
$ 68,696,366 6,462,034 2,246,000 $ 72,912,400
Total Cash and Investments
Cash Deposits $ 4,932,172
Cash with Fiscal Agent ‐
Invested Cash 72,912,400
$ 77,844,572
Non‐Invested Cash Accounts
Bank
Statement
Amount Market Value
BANK OPERATING ACCOUNTS (1)
City ‐ BMO ‐ General Checking Account 4,269,810$ 4,269,810$
City ‐ BMO ‐ Payroll Account 486,166 486,166
SA ‐ BMO ‐ General Checking Account 10,000 10,000
RHDC ‐ Angelus Security Deposit ‐ City National Bank 9,641 9,641
RHDC ‐ Angelus Operating Account ‐ City National Bank 18,325 18,325
RHDC ‐ Garvey Security Deposit ‐ City National Bank 27,577 27,577
RHDC ‐ Garvey Operating Account 110,654 110,654
TOTAL OPERATING ACCOUNTS 4,932,172$ 4,932,172$
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 0varies 0
2016 Reserve Account ‐ U.S. Bank (Non‐cash Ins Policy)‐ ‐‐
TOTAL CASH WITH FISCAL AGENT ‐$‐$
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)45,946,744$ 45,946,744$ 4.12%45,946,744$
CERTIFICATES OF DEPOSIT
Morgan Stanley Pvt Bk CD 2/14/19 2/14/24 Matured Matured Matured Matured
Capital One Natl Assn VA CD 9/24/20 5/30/24 245,891 245,000 2.65% 243,836
Northern Bank & Trust 11/15/22 8/15/24 244,001 244,000 4.75% 243,480
Blupeak Credit Union 9/19/23 9/19/24 248,002 248,000 5.75% 248,335
Affinity Federal CU 11/1/23 10/31/24 248,002 248,000 5.80% 248,605
First Utd Bk &Tr Company 12/30/22 12/30/24 249,001 249,000 4.50% 247,733
Wells Fargo Bank Natl Assn CD 9/24/20 1/29/25 247,907 245,000 1.95% 238,608
Discover BK CD 6/1/22 6/2/25 245,002 245,000 3.10% 239,581
Goldman Sachs Bk USA CD 6/1/22 6/2/25 245,002 245,000 3.00% 239,304
BMO Bank 5/9/23 5/8/26 244,003 244,000 4.60% 242,904
Greenstate Credit Union 5/17/23 5/18/26 249,003 249,000 4.80% 248,930
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 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.
LIQUID
March 2024 ‐ Investment Report Page 1
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 2024
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% 249,096
Austin Telco Federal Credit Union 11/28/22 11/27/26 248,004 248,000 5.05% 250,140
Celtic Bank 12/19/22 12/21/26 249,004 249,000 4.20% 245,875
M&T Bank Corporation 1/20/23 1/20/27 244,003 244,000 4.00% 239,674
Texas Exchange Bank 2/24/23 2/24/27 248,003 248,000 4.10% 244,278
Global Federal Credit Union 5/12/23 5/12/27 249,003 249,000 4.60% 249,007
Chartway Federal CU 9/8/23 9/8/27 248,006 248,000 5.00% 251,916
Connexus Credit Union 9/26/23 9/27/27 248,003 248,000 5.05% 252,526
Ideal Cr Un Woodbury 12/29/22 12/29/27 249,003 249,000 4.50% 249,754
First Tech Federal Credit Union 2/3/23 2/3/28 248,003 248,000 4.35% 248,117
Liberty First 2/3/23 2/3/28 249,003 249,000 5.00% 248,704
Synchrony Bank 3/24/23 3/24/28 243,003 243,000 5.00% 248,667
American Express National Bank 3/29/23 3/29/28 244,004 244,000 4.75% 247,570
City National Bank 3/14/24 3/31/28 247,136 240,000 4.19% 251,131
Pitney Bowes Bank 8/31/23 4/13/28 243,460 245,000 4.50% 245,083
Morgan Stanley Bank NA 4/20/23 4/20/28 244,003 244,000 4.65% 243,946
HSBC Bank USA 8/31/23 4/21/28 239,616 249,000 4.50% 242,138
Univest National Bank 5/12/23 5/12/28 249,003 249,000 4.35% 249,112
CIBC Bank USA 5/16/23 5/16/28 244,003 244,000 4.35% 244,073
Medallion Bank 5/18/23 5/24/28 248,003 248,000 5.00% 248,226
First County Bank 5/26/23 5/26/28 123,003 123,000 5.00% 123,112
Numerica Credit Union 5/30/23 5/30/28 200,003 200,000 4.70% 205,540
Thread Bank 6/16/23 6/16/28 249,003 249,000 4.40% 256,903
Jefferson Credit Union 6/20/23 6/20/28 248,004 248,000 5.37% 250,272
Bank of the Sierra 8/31/23 8/18/28 244,003 244,000 4.50% 245,654
Freedom Northwest CU 9/19/23 9/19/28 248,003 248,000 5.65% 252,685
Empower Credit Union 9/29/23 9/29/28 248,003 248,000 5.10% 255,914
Dort Financial CU 10/10/23 10/10/28 246,003 246,000 5.00% 252,937
Utah First Federal CU 10/30/23 10/30/28 248,003 248,000 5.10% 256,117
Townebank 11/15/23 11/15/28 243,003 243,000 5.70% 243,352
Neighbors FCU 1/19/24 1/19/29 142,003 142,000 5.30% 141,033
MS Private Bank 2/16/24 2/16/29 244,004 244,000 4.65% 238,708
UBS Bank USA 2/28/24 2/28/29 249,003 249,000 4.20% 247,947
Spur Security Bank 3/27/24 3/12/29 244,004 244,000 4.20% 242,865
Morgantown B & T 3/22/24 3/22/29 249,004 249,000 4.15% 247,379
Sub‐Total 10,821,129$ 10,821,000$ 10,850,767$
March 2024 ‐ Investment Report Page 2
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 2024
U.S. TREASURY/AGENCY SECURITIES
Investments (continued)Purchase
Date
Maturity
Date Original Cost Par Value
Interest
Rate
Estimated
Market Value
Federal Home Loan Bank 12/23/22 3/8/24 Matured Matured Matured Matured
US Treasury Note ‐ Series J 3/24/22 3/31/24 250,000 250,000 2.13% 250,000
Federal Agriculture Mortgage Corp 12/22/22 12/5/24 500,901 500,000 4.81% 498,680
Federal Home Ln Mtg Corp Note 11/9/22 3/13/25 376,921 385,000 4.70% 380,195
Federal Natl Mtg Assn Note 9/28/23 5/22/25 499,004 500,000 5.25% 499,715
Federal Farm Cr Bks Bond 6/9/22 5/23/25 315,002 315,000 2.85% 307,947
Federal Home Loan Bank 4/19/23 7/18/25 271,456 275,000 4.21% 270,551
Federal Home Loan Mtg Corp Mtn 8/16/22 8/25/25 280,003 280,000 3.50% 274,274
Federal Home Loan Bank 8/23/22 8/25/25 250,003 250,000 4.06% 247,535
Federal Natl Mtg Assn Note 2/10/23 8/28/25 292,157 295,000 4.00% 290,731
Federal Home Loan Bank 11/16/22 4/29/26 480,006 500,000 4.26% 482,380
Federal Agriculture Mortgage Corp 6/22/23 6/12/26 375,003 375,000 5.28% 373,384
Federal Home Ln Mtg Corp 3/6/23 6/29/26 265,003 265,000 5.05% 263,662
Federal Home Loan Bank 11/29/22 9/21/26 498,756 500,000 4.57% 494,015
Federal Home Loan Bank 3/22/23 3/22/27 277,105 275,000 5.29% 275,028
Federal Home Ln Mtg Corp Note 2/22/23 6/17/27 220,003 220,000 5.13% 218,319
Federal Home Ln Mtg Corp Note 11/30/22 8/25/27 388,336 390,000 4.50% 384,154
Federal Home Loan Bank 11/15/22 9/14/27 491,361 500,000 4.40% 487,455
Federal Home Loan Bank 3/20/23 9/20/27 303,400 300,000 5.14% 299,514
Federal Home Ln Mtg Corp Note 2/21/23 2/7/28 Redeemed Redeemed Redeemed Redeemed
Federal Home Ln Mtg Corp Note 10/18/23 7/18/28 384,041 385,000 5.06% 386,990
Federal Home Ln Mtg Corp Note 9/19/23 9/19/28 434,351 435,000 5.25% 433,621
Federal Home Ln Mtg Corp Note 10/16/23 10/16/28 249,379 250,000 5.31% 249,723
Federal Agriculture Mortgage Corp 1/24/24 11/28/28 506,141 500,000 4.93% 501,620
Federal Agriculture Mortgage Corp 2/8/24 1/22/29 499,214 500,000 4.08% 494,875
Federal Home Ln Mtg Corp Note 3/15/24 1/30/29 497,504 500,000 4.36% 493,995
Sub‐Total 8,905,045$ 8,945,000$ 8,858,362$
CORPORATE BONDS
Wells Fargo Co Mtn Be 10/17/19 9/9/24 251,319 250,000 3.30% 247,620
Barclays Bank Plc Ser A Mtn 8/6/20 1/20/25 554,466 550,000 1.50% 530,640
Citigroup Global Mkts Hldgs In Ser N 7/31/20 7/31/25 800,002 800,000 1.10% 740,712
Capital Impact Partners Invt Mtn 9/24/20 9/15/25 250,002 250,000 1.00% 229,205
Morgan Stanley 11/23/22 1/27/26 489,376 500,000 4.60% 488,375
Berkshire Hathaway 12/23/22 3/15/26 486,454 500,000 4.03% 484,105
JP Morgan Chase 1/27/23 4/1/26 487,449 500,000 4.15% 484,160
US Bancorp 11/14/22 4/27/26 470,206 500,000 5.00% 479,545
Bank of NY 11/14/22 1/26/27 446,456 500,000 4.90% 463,350
Amazon Inc 12/22/22 8/22/27 477,929 500,000 3.15% 476,545
March 2024 ‐ Investment Report Page 3
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 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% 495,145
International Bank R & D 11/14/22 9/30/27 493,526 500,000 4.80% 488,110
Apple Inc 11/30/22 11/13/27 477,731 500,000 4.00% 475,030
Inter‐American Development Bank 2/24/23 2/24/28 579,714 580,000 4.38% 574,174
Sub‐Total 6,763,527$ 6,930,000$ 6,656,716$
CAMBRIDGE
CASH HELD FOR INVESTMENTS 269,656$ 269,656$ Varies 269,656$
TOTAL INVESTMENTS 72,706,101$ 72,912,400$ 72,582,245$
Market values are provided by statements from issuers
March 2024 ‐ Investment Report Page 4
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 2024
Cash and Investments by Type Par Value
% of Invested
Cash
BANK ACCOUNTS ‐ non‐invested & FISCAL AGENT 4,932,172$
LAIF 45,946,744$ 63% Not restricted
CERTIFICATES OF DEPOSIT 10,821,000 15% No more than 30% of Portfolio
U.S. TREASURY/AGENCY SECURITIES 8,945,000 12% No more than 70% of Portfolio
CORPORATE BONDS 6,930,000 10% No more than 25% of Portfolio
CANTELLA & CO., INC.269,656 0%
Total Investments 72,912,400$ 100%
Total ‐ Cash and Investments 77,844,572$
Cash and Investments by Agency Accts Par Value
% of Total
Cash
CITY 77,668,376$ 100%
Successor Agency 10,000 0%
Housing Development Corporation 166,196 0%
Total Investments 77,844,572$ 100%
Pie Charts Reflecting Data
Policy Restrictions by Investment Type
LAIF
63%
CERTIFICATES OF
DEPOSIT
15%
U.S. TREASURY/AGENCY SECURITIES
12%
CORPORATE BONDS
10%
CAMBRIDGE
0%
LAIF
78%
1 Yr
6%
2 Yr
8%
3 Yr
8%
Investments by Category Investments by Maturity
March 2024 ‐ Investment Report Page 5
CITY OF ROSEMEAD
TREASURER'S QUARTERLY CASH and INVESTMENT REPORT
SCHEDULE OF CASH AND INVESTMENTS
As of March 31, 2024
Comparative Data
4.12%
3.81%
3.42%
3.01%
2.63%
1.98%
1.29%
0.69%
Policy Compliance
Bryan Chua, Finance Director/City Treasurer
Jun 2022 68,101,330
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.
Mar 2023 72,682,760
Dec 2022 65,246,521
Sep 2022 66,247,116
Dec 2023 68,696,366
Sep 2023 69,320,852
Jun 2023 76,667,839
Quarter End
Invested Cash
(excl non‐invested)
Average Quarterly LAIF
Effective Yields
Mar 2024 72,912,400
0%
March 2024 ‐ Investment Report Page 6