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CC SR 20151006 E - CC Cash Balances JulyCITY OF MEMORANDUM k1q'P\ANCHO PALOS VERDES TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DEBORAH CULLEN, FINANCE DIRECTOR DATE: OCTOBER 6, 2015 SUBJECT: JULY 2015 MONTHLY REPORT OF CASH BALANCES REVIEWED: DOUGLAS WILLMORE, CITY MANAGER.., Staff Coordinator: Jane Lin, Accountant RECOMMENDATION Receive and file the July 2015 Monthly Report of Cash Balances for the City of Rancho Palos Verdes. BACKGROUND This report summarizes the cash activity associated with all funds of the City for the month of July 2015. A separate report is prepared monthly for the Improvement Authority and is presented under separate cover before the Authority Commission. ANALYSIS The overall cash balances of the City totaled $57,862,072 at July 31, 2015. Cash decreased by $2,850,079 during the month. Compared to the same period last year, the cash balance decreased by $692,838. The variance to last year is due to the following reasons: total disbursements of $1.3 million to American Asphalt for the City's Residential Street Rehabilitation Project, a disbursement of $343,422 to CalPERS for the FY15-16 prepayment of employer contribution on unfunded liability, disbursements of $373,821 to Industrial Coating & Fireproofing for the McCarrell Canyon Pipeline Project, disbursements of $50,000 to various vendors for the annual software support, and an additional pay period comparing to last year. The overall cash balance decrease is described below. These factors are discussed in detail below for each fund experiencing a noteworthy cash 1 July 2015 Monthly Report of Cash Balances October 6, 2015 Page 2 event (defined as more than $50,000 and 5% of the cash balance in a particular fund). Beautification Fund, Street Maintenance Fund, 1972 Act Fund, 1911 Act Fund, Proposition C Fund, and Public Safety Fund — There were significant changes in the cash balances for each of these funds during July due to the year-end closing process. The accounting for street maintenance projects is centralized in the Street Maintenance Fund. These projects are funded with a variety of sources, including operating transfers from other funds. Once the final actual project costs are identified for the fiscal year, funding transfers are processed. The large decrease in the Beautification Fund, 1972 Act Fund, 1911 Act Fund, and Proposition C Fund was as result of this reason. All year-end transfers are processed in accordance with the FY14-15 budget including the transfer from Public Safety Fund to General Fund. CIP Fund — The cash balance in this fund decreased nearly $700,000 during the month. The decrease was mainly due to disbursements of $1,375,404 to All American Asphalt for the City's Residential Street Rehabilitation project. Employee Benefits Fund — The cash balance in this fund decreased by more than $476,000 during the month, primarily due to the FY15-16 prepayment of $343,422 to CalPers for the City's employer contribution on the unfunded liability. The other factor of decrease was the disbursements for the City's share of employee insurance premiums totaling $77,095. Proposition A Fund — The cash balance in this fund increased by $51,658 during the month due to receipt of the July Proposition an apportionment. The Proposition A fund pays for the Palos Verdes Peninsula Transit Authority contribution. Disbursements for that contribution are made twice annually. Water Quality Flood Protection Fund — The cash balance in this fund decreased by more than $434,000 during the month mainly due to disbursements of $373,821 to Industrial Coating & Flreroofing for the McCarrell Canyon Pipeline Project. Special Trusts Fund — The cash balance in this fund decreased by more than $80,000 during the month. The decrease was mainly due to a disbursement of $55,740 to Hardy & Harper on behalf of a trust depositor (Southern California Edison) for the services rendered. 2 CITY OF RANCHO PALOS VERDES MONTHLY REPORT OF CASH BALANCES JULY 2015 (1) All LAIF interest is paid quarterly. (2) Electronic Disbursements: Payroll CalPers ICMA&HSA Retirement Health Savings Withholdings Annual Calpers Payment Sales Taxes Flexible Spending Accounts Postage Bank and Merchant Fees BOA BOW 608,587.24 112,141.86 35,464.08 15,140.48 343,422.00 2,618.00 572.33 5,000.00 3,424.90 231.14 3,424.90 1,123,177.13 (3) The net adjustment was due to voided checks and other adjustment. Change of Change In Cash Balance BALANCE Ending Cash from Previous CASH BALANCES BY FUND FORWARD DEBIT CREDIT CASH Balance Month -End Unrestricted Bank. Bank Malaga YTD INT 21,788,429.32 of America of the West Bank (978,589.23) INVESTMENT Restricted by Council Action OPERATING OPERATING OPERATING PETTY CASH LAIF-CITY CDARS TOTAL CASH RECEIVED BEGINNING BALANCE 3,114,222.38 5,379,948.37 100,158.90 3,000.00 49,914,822.06 0.00 2,200,000.00 60,712,151.71 1,678,777.72 PLUS: DEPOSITS 98,962.28 1,701,541.25 EQUIPMENT REPLACEMENT 3,092,234.47 2,984.09 1,800,503.53 2,998,275.94 PLUS: INTERESTEARNINGS(1) 3% BUILDING REPLACEMENT 2,177.16 35,284.21 0.00 37,461.37 37,461.37 LESS: CHECK DISBURSEMENTS EMPLOYEE BENEFITS (3,569,373.10) 716,567.63 1,193,383.91 (494,100.04) (3,569,373.10) 100% LESS: ELECTRONIC DISBURSEMENTS(2) (3,424.90) (1,123,177.13) 3,193,104.25 16,917,438.05 (1,490,312.53) (1,126,602.03) Restricted by Law or External Agencies ADJUSTMENTS(3) 7,930.89 7,930.89 921,572.75 PLUS: TRANSFERS IN 180, 518.90 1,932,646.82 1,011,074.07 100% 1972 ACT 0.00 3,031.87 LESS: TRANSFERS OUT 47,778.98 (196,968.13) 80% ELPRADO 22,748.68 0.00 0.00 ENDING BALANCE 3,209,759.76 2,396,870.28 102,336.06 3,000.00 49,950,106.27 0.00 2,200,000.00 57,862,072.37 37,461.37 (1) All LAIF interest is paid quarterly. (2) Electronic Disbursements: Payroll CalPers ICMA&HSA Retirement Health Savings Withholdings Annual Calpers Payment Sales Taxes Flexible Spending Accounts Postage Bank and Merchant Fees BOA BOW 608,587.24 112,141.86 35,464.08 15,140.48 343,422.00 2,618.00 572.33 5,000.00 3,424.90 231.14 3,424.90 1,123,177.13 (3) The net adjustment was due to voided checks and other adjustment. Change of Change In Cash Balance BALANCE Ending Cash from Previous CASH BALANCES BY FUND FORWARD DEBIT CREDIT CASH Balance Month -End Unrestricted GENERAL FUND 21,788,429.32 1,630,633.97 2,609,223.20 20,809;840.09 (978,589.23) 4% Restricted by Council Action BEAUTIFICATION FUND 795,344.73 511.00 224,000.00 571,855.73 (223,489.00) 28% CIP 13,593,220.12 982,123.00 1,678,777.72 12,896,565.40 (696,654.72) 5% EQUIPMENT REPLACEMENT 3,092,234.47 2,984.09 96,942.62 2,998,275.94 (93,958.53) 3% BUILDING REPLACEMENT 944,235.02 606.00 0.00 944,841.02 606.00 0% EMPLOYEE BENEFITS (17,283.76) 716,567.63 1,193,383.91 (494,100.04) (476,816.28) 100% Subtotal 18,407,750.58 1,702,791.72 3,193,104.25 16,917,438.05 (1,490,312.53) 8% Restricted by Law or External Agencies STREET MAINTENANCE 921,572.75 1,191, 592.97 180, 518.90 1,932,646.82 1,011,074.07 100% 1972 ACT 244,747.11 3,031.87 200,000.00 47,778.98 (196,968.13) 80% ELPRADO 22,748.68 41.14 0.00 22,789.82 41.14 0% CDBG 19,085.66 8,785.00 240.00 27,630.66 8,545.00 45% CDBG-R 0.00 0.00 0.00 0.00 0.00 0% 1911 ACT 1,934,278.95 8,512.38 153,148.16 1,789,643.17 (144,635.78) 7% SOLID WASTE 532,232.32 10,838.10 57,453.55 485,616.87 (46,615.45) 9% AIR QUALITY MANAGEMENT 88,757.68 54.00 0.00 88,811.68 54.00 0% PROPOSITION C 1,939,265.93 44,109.34 518,749.00 1,464,626.27 (474,639.66) 24% PROPOSITION A 547,041.59 52,059.65 401.45 598,699.79 51,658.20 9% PUBLIC SAFETY GRANTS 126,929.81 82.00 100,000.00 27,011.81 (99,918.00) 79% MEASURE R 1,716,160.95 33,202.03 0.00 1,749,362.98 33,202.03 2% HABITAT RESTORATION 1,506,842.97 959.00 0.00 1,507,801.97 959.00 0% SUBREGION 1 MAINTENANCE 823,197.83 531.00 5,581.47 818,147.36 (5,050.47) 1% MEASURE A MAINTENANCE 253,776.63 163.00 0.00 253,939.63 163.00 0% ABALONE COVE SEWER DISTRICT 52,033.82 7,039.12 1,195.58 57,877.36 5,843.54 11% RPVTV 0.00 0.00 0.00 0.00 0.00 0% GINSBURG CULTURE ARTS BUILDING 101,354.31 65.00 0.00 101,419.31 65.00 0% DONOR RESTRICTED CONTRIBUTIONS 880,598.48 2,068.00 10,233.64 872,432.84 (8,165.64) 1% QUIMBY 1,336,651.62 858.00 0.00 1,337,509.62 858.00 0% LOW -MODERATE INCOME HOUSING 45,914.46 27.00 0.06 45,941.46 27.00 0% AFFORDABLE HSNG IN LIEU 584,223.08 399.05 0.00 584,622.13 399.05 0% EET 433,920.09 7,633.00 0.00 441,553.09 7,633.00 2% MEASURE A CAPITAL 7,440.11 0.00 0.00 7,440.11 0.00 0% BIKEWAYS 96.52 0.00 0.00 96.52 0.00 0% UNDERGROUND UTILITIES 0.00 0.00 0.00 0.00 0.00 0% ROADWAY BEAUTIFICATION 0.00 0.00 0.00 0.00 0.00 0% WATER QUALITY FLOOD PROTECTION 5,456,748.27 20,123.34 454,635.24 5,022,236.37 (434,511.90) 8% REDEVELOPMENT OBLIGATION RETIRE 477,010.60 4,469.00 15,349.12 466,130.48 (10,880.12) 2% IMPROVEMENT DISTRICT 9 0.00 0.00 0.00 0.00 0.00 0% SPECIAL TRUSTS 463,341.59 7,386.03 87,700.49 383,027.13 (80,314.46) 17% Subtotal 20,515,971.81 1,404,029.02 1,785,206.60 20,134,794.23 (381,177.58) 2% GRAND TOTAL 60,712,151.71 4,737,454.71 7,587,534,05 57,862,072.37 (2,850,079.34) 5% Total Investment: 57,862, 072.37 3 CITY OF RANCHO PALOS VERDES SUMMARY MONTHLY REPORT OF CASH BALANCES JULY 2015 Issuer of Acquisition Maturity Market Par Book Investment Investment Date Term Date Value Value Value Yield Checking Accounts Bank of America N/A N/A On Demand $ 3,209,760 N/A $ 3,209,760 0.00% Bank of the Checking Accounts West NIA N/A On Demand $ 2,396,870 N/A $ 2,396,870 0.00% Checking Accounts Malaga Bank N/A N/A On Demand $ 102,336 N/A $ 102,336 0.30% Petty Cash N/A NIA NIA On Demand $ 3,000 N/A $ 3,000 0.00% State of Local Agency Investment Fund (LAIF-CITY) California N/A N/A On Demand $ 49,950,106 N/A $ 49,950,106 0.32% CDARS - Malaga Bank Malaga Bank 6/25/2015 26 weeks 12/23/2015 250,000 $ 250,000 0.35% Banco Popular de Puerto Rico - IBC 6/25/2015 26 weeks 12/24/2015 244,500 $ 244,500 0.25% Iberiabank 6/25/2015 26 weeks 12/24/2015 216,500 $ 216,500 0.25% Univest Bank and Trust Co. 6/25/2015 26 weeks 12/24/2015 244,500 $ 244,500 0.25% Western Alliance Bank 6/25/2015 26 weeks 12/24/2015 $ 244,500 $ 244,500 0.25% Citizens National Bank 3/26/2015 52 weeks 3/24/2016 $ 243,500 $ 243,500 0.35 Ever Bank 3/26/2015 52 weeks 3/2 412 01 6 $ 230,633 $ 230,633 0.35% Flagstar Bank, FSB 3/26/2015 52 weeks 3/24/2016 $ 243,500 $ 243,500 0.35% Parke Bank 3/26/2015 52 weeks 3/24/2016 $ 243,500 $ 243,500 0.35% Porsperity Bank 3/26/2015 52 weeks 3/24/2016 11,867 $ 11,867 0.35% The Park National Bank 3/26/2015 52 weeks 3/24/2016 $ 27,000 $ 27,000 0.35% Total Investment: $ 57,862,072 Total Investment Weighted Average Return 0.3% NOTE: (1) See footnote on the summary page (2) LAIF market values will be reported to vary from book value if the City calculated share of total LAIF assets is less than the City book value. To the best of my knowledge, there are no misstatements of material amounts within this report; or omissions of material amounts to cause the report to be misleading. I certify that this report accurately reflects all City investments and complies with the investment policy of the City of Rancho Palos Verdes as approved by the City Council. Furthermore, I certify that sufficient investment liquidity and anticipated revenues are available to meet the City's expenditure requirements for the next six months. Respectfully submitted, Treasurer