Long Beach, CA
File #: 17-0995    Version: 1 Name: FM - Investment Report for Qtr-Ending Sept. 30, 2017
Type: Agenda Item Status: Approved
File created: 10/16/2017 In control: City Council
On agenda: 11/7/2017 Final action: 11/7/2017
Title: Recommendation to receive and file the Investment Report for Quarter Ending September 30, 2017. (Citywide)
Sponsors: Financial Management
Attachments: 1. 110717-C-13sr&att
Related files: 07-1313

TITLE

Recommendation to receive and file the Investment Report for Quarter Ending September 30, 2017.  (Citywide)

 

DISCUSSION

The Department of Financial Management, City Treasurer's Office, invests the City’s funds in compliance with the California Government Code, Section 53600 et. seq., and the City’s Investment Policy. As of September 30, 2017, these funds had a book value of approximately $1.564 billion. 

 

Statutory Compliance

All investment transactions have been executed in conformance with the City's Investment Policy and the California Government Code. The Investment Advisory Committee, composed of the Assistant City Auditor, Deputy City Attorney, City Treasurer, City Controller, Budget Management Bureau staff, and designated representatives from the Harbor and Water Departments, meets quarterly, or as needed, to review investment policies, strategies and performance. All portfolio transactions as of September 30, 2017 are listed in Attachment A.

 

Investment Strategies

The City's Investment Policy divides the investment portfolio into short-term, intermediate-term, and long-term portfolios. Their respective benchmarks are the Three-Month Treasury Bill, the One-Year Constant Maturity Treasury (CMT) and the BOA Merrill Lynch One-to-Five Year Treasury/Agency.

 

The short-term portfolio maintains a weighted average maturity of three to six months and provides sufficient liquidity to satisfy the City’s short-term cash needs. The intermediate-term portfolio maintains a weighted average maturity of approximately one year and provides for the cash needs with maturities greater than six months.  The long-term portfolio maintains a weighted average maturity of one to five years to satisfy the City’s longer-term cash needs.

The City's cash management goals are to maintain and preserve the safety of funds in custody and provide adequate liquidity for anticipated expenditure needs.  Approximately $572.8 million of the total investment pool, or approximately 36.7 percent of funds, will mature in the next six months, ensuring that sufficient funds are available to meet the City’s liquidity needs.

Investment Position and Performance

The following table summarizes the City's investment pool position and performance for the quarter ending September 30, 2017:

 

 

Investment portfolio holdings as of September 30, 2017, are included in Attachment B.

 

This matter was reviewed by Deputy City Attorney Amy R. Webber on October 23, 2017 and by Assistant Finance Director Lea Eriksen on October 13, 2017.

 

TIMING CONSIDERATIONS

City Council action on this item is not time critical.

 

FISCAL IMPACT

There is no fiscal or local job impact associated with this recommendation. 

 

SUGGESTED ACTION

Approve recommendation.

 

Respectfully Submitted,

JOHN GROSS

DIRECTOR OF FINANCIAL MANAGEMENT

 

 

 

APPROVED:

 

PATRICK H. WEST

CITY MANAGER