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2021-05-05 City Council Item No. 12.1 Treasurer's Report Presentation Regular MEETING - Additional Meeting MaterialsTreasurer’s Report, March 2021 Updated Format Presented by: Rochelle Clayton, Deputy City Manager Wendy Preece, Deputy Finance Director City Council Discussion Item 12.1 1 •Monthly the City Treasurer presents City Council with a summary of the City’s cash and investments. •The City Treasurer and the Finance staff have reviewed the City’s portfolio to diversify the City’s investments to safely increase the return on investments in a fiscally responsible manner. Background -2- •The City Treasurer and Finance staff met with Piper Sandler, a leader in government investing, and came up with an investment strategy to ensure safety, liquidity and return on investment, while meeting the City’s cash-flow needs. •There are no fees associated with the services the City will receive from Piper Sandler. Background -3- •The Piper Sandler strategy was presented to the Finance Committee on April 8, 2021. •The Finance Committee then asked staff to bring the strategy forward to City Council to provide an update on how this new strategy will improve the City’s return on investments. Background -4- -5- -6- Current Cash & Investments -5- CITY CASH BEGINNING +(-)ENDING ACCOUNT INSTITUTION BALANCE DEPOSITS WITHDRAWALS BALANCE RATE GENERAL-CHECKING UNION BANK OF CA $10,837,282.48 $6,431,267.98 $(9,056,972.01) $8,211,578.45 0.00% GENERAL-SAVINGS UNION BANK OF CA 35,015,983.13 1,604.86 0.00 35,017,587.99 0.05% ASSET FORFEITURE UNION BANK OF CA 6,156.64 0.26 0.00 6,156.90 0.05% TOTAL $45,859,422.25 $6,432,873.10 $(9,056,972.01) $43,235,323.34 CITY INVESTMENT PERCENT OF STATED ISSUER COST BASIS MARKET VALUE PORTFOLIO RATE LOCAL AGENCY INVESTMENT FUND 62,974,228.86$ 62,974,228.86$ 94.52%0.407% UNION BANK-CHANDLER ASSET MGMT AGENCY FUNDS 1,617,700.38$ 1,654,665.55$ 2.43%1.657%(Avg.) US CORPORATE 1,033,268.07$ 1,057,408.33$ 1.55%1.834%(Avg.) MONEY MARKET 7,422.96$ 7,422.96$ 0.01%1.000%(Avg.) US TREASURY 994,029.82$ 1,021,479.65$ 1.49%1.624%(Avg.) TOTAL UNION BANK-CHANDLER ASSET 3,652,421.23$ 3,740,976.49$ TOTAL CITY INVESTMENTS 66,626,650.09$ 66,715,205.35$ 100.00% - TOTAL CASH AND INVESTMENT $109,861,973.43 *-7- Current Investments -8- Diversified Investments -9- CITY INVESTMENT *TRANSFER $35,000,000 from Union Bank Savings - 0.05% Rate PERCENT OF STATED ISSUER COST BASIS MARKET VALUE PORTFOLIO RATE LOCAL AGENCY INVESTMENT FUND 30,000,000.00$ 30,000,000.00$ 29.52%0.407% US BANK-PIPER SANDLER AGENCY FUNDS 55,974,228.86$ 55,974,228.86$ 55.08%0.780%(Avg.) US TREASURY 12,000,000.00$ 12,000,000.00$ 11.81%2.125%(Avg.) US CORPORATE -$ -$ 0.00%(Avg.) MONEY MARKET -$ -$ 0.00%(Avg.) TOTAL US BANK-PIPER SANDLER 67,974,228.86$ 67,974,228.86$ UNION BANK-CHANDLER ASSET MGMT AGENCY FUNDS 1,617,700.38$ 1,654,665.55$ 1.59%1.657%(Avg.) US CORPORATE 1,033,268.07$ 1,057,408.33$ 1.02%1.834%(Avg.) MONEY MARKET 7,422.96$ 7,422.96$ 0.01%1.000%(Avg.) US TREASURY 994,029.82$ 1,021,479.65$ 0.98%1.624%(Avg.) TOTAL UNION BANK-CHANDLER ASSET 3,652,421.23$ 3,740,976.49$ TOTAL CITY INVESTMENTS 101,626,650.09$ 101,715,205.35$ 100.00% Diversified Investment Spread -10- PERCENT OF CUSTODIAN TYPE COST BASIS PORTFOLIO LAIF MONEY MARKET LOCAL AGENCY INVESTMENT FUND 30,000,000.00$ 29.52% US BANK TREASURY US TREASURY 12,000,000.00$ 11.81% US BANK AGENCY AGENCY FUNDS 55,974,228.86$ 55.08% UNION BANK CHANDLER CHANDLER ASSET 3,652,421.23$ 3.59% TOTAL CITY INVESTMENTS 101,626,650.09$ CITY INVESTMENT SPREAD Increased Return on Investment -11- INVESTMENT AGENCY INVESTMENT RATE EARNINGS Maturity Union Bank Savings 35,000,000$ 0.05%17,500.00$ N/A Local Agency Investment Fund 62,974,229$ 0.407%256,305.11$ N/A 97,974,229$ 273,805.11$ Local Agency Investment Fund 30,000,000$ 0.407%122,100.00$ N/A US Treasury - 3.58 Years 3,000,000$ 1.500%45,000.00$ 10/31/2024 US Treasury - 4.42 Years 3,000,000$ 2.000%60,000.00$ 8/15/2025 US Treasury - 4.67 Years 2,000,000$ 2.250%45,000.00$ 11/15/2025 US Treasury - 5.00 Years 4,000,000$ 2.750%110,000.00$ 3/31/2026 Agency - .33 Years 2,000,000$ 0.50%10,000.00$ 07/22/2024 Agency - 1.50 Years 4,000,000$ 0.40%16,000.00$ 09/16/2024 Agency - 1.00 Years 2,500,000$ 0.51%12,750.00$ 09/30/2024 Agency - 1.08 Years 5,000,000$ 0.58%29,000.00$ 10/21/2024 Agency - .25 Years 3,000,000$ 0.58%17,400.00$ 12/13/2024 Agency - .50 Years 3,000,000$ 0.65%19,500.00$ 03/17/2025 Agency - .50 Years 3,000,000$ 0.75%22,500.00$ 06/30/2025 Agency - .33 Years 3,000,000$ 0.70%21,000.00$ 07/30/2025 Agency - .67 Years 2,000,000$ 0.65%13,000.00$ 11/26/2025 Agency - .33 Years 2,500,000$ 1.00%25,000.00$ 01/15/2026 Agency - .42 Years 3,474,529$ 0.75%26,058.97$ 02/24/2026 Agency - 5.00 Years 4,000,000$ 1.00%40,000.00$ 03/30/2026 Agency - 5.00 Years 3,500,000$ 1.03%36,050.00$ 03/30/2026 Agency - 1.00 Years 5,000,000$ 1.04%52,000.00$ 04/14/2026 Agency - 5.00 Years 5,000,000$ 1.00%50,000.00$ 04/21/2026 Agency - 5.00 Years 5,000,000$ 1.00%50,000.00$ 04/21/2026 97,974,529$ 822,358.97$ RETURN ON INVESTMENT CURRENT RETURN ON INVESTMENT INCREASE •Approve the Treasurer’s Report for March 2021 Recommended Action -12- Questions? -13-