CC 2024-06-11_09b Investment Deposits
MEMORANDUM
TO: City Council
FROM: Nicole Valentine, Administrative Services Director
BY: Lynda Horejsi, Accounting Manager
SUBJECT: Consideration of Statement of Investment Deposits
DATE: June 11, 2024
RECOMMENDATION:
Receive and file the attached report listing investment deposits of the City of Arroyo
Grande as of April 30, 2024, as required by Government Code Section 53646(b).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no funding impact to the City related to these reports. However, the City does
receive interest revenue based on the interest rate of the investments. Little to no future
staff time is projected
BACKGROUND:
The Administrative Services department has historically submitted to the City Council a
monthly report, providing the following information:
1. Type of investment.
2. Financial institution (bank, savings and loan, broker, etc).
3. Date of maturity.
4. Principal amount.
5. Rate of interest.
6. Current market value for all securities having a maturity of more than 12 months.
7. Relationship of the monthly report to the annual statement of investment policy.
ANALYSIS OF ISSUES:
April 30, 2024, and includes all
investments managed by the City. As of April 30, 2024, the investment portfolio was in
Item 9.b.
City Council
Consideration of Statement of Investment Deposits
June 11, 2024
Page 2
ALTERNATIVES:
1.
investment deposits;
2. ; or
3. Provide other direction to staff.
ADVANTAGES:
Safety of principal is the foremost objective of the City. Investments are undertaken in a
manner that seeks to ensure the preservation of capital in the overall portfolio.
DISADVANTAGES:
Some level of risk is present in any investment transaction. Losses could be incurred due
to market price changes, technical cash flow complications such as the need to withdraw
a non-negotiable Time Certificate of Deposit early, or even the default of an issuer. To
minimize such risks, diversifications of the investment portfolio by institution and by
investment instruments are being used as much as is practical and prudent.
ENVIRONMENTAL REVIEW:
The Statement of Investment Deposits is not a project subject to the California
or reasonably foreseeable indirect, physical change in the environment. (State CEQA
Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda
Government Code Section 54954.2.
ATTACHMENTS:
1. Portfolio Summary: April 30, 2024
Item 9.b.