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RPVCCA_SR_2010_03_02_06_Jan_2010_Cash_BalancesMEMORANDUM RANCHO PALOS VERDES TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNC~ DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY; MARCH 2,2010 JANUARY 2010 M~NllHLY REPORT OF CASH BALANCES CITY MANAGER ~ Staff Coordinator:Jane Lin,Accountant RECOMMENDATION: Receive and file the January 201 0 Monthly Report of Cash Balances for the City of Rancho Palos Verdes. BACKGROUND: With the adoption of the state budget for FY06-07,government agencies are no longer required to submit an investment report to their governing board.Notwithstanding the change of California law,staff has continued to submit a treasury report to the Council for review each month.This report summarizes the cash activity associated with all funds of the City. A separate report is prepared monthly for both the Redevelopment Agency and Improvement Authority and is presented under separate cover before their respective governing bodies.The attached report includes the cash activities of the City for the month of January 2010. ANALYSIS: The overall cash balances of the City totaled $39,748,811 at January 31,2010.This represents a $3,133,544 increase during the month.The overall increase is a result of various factors over several individual funds of the City.These factors are discussed in detail below for each fund experiencing a noteworthy cash event. General Fund -The cash balance in this fund increased by more than $2,705,000 during the month.The increase was primarily the result of receipt of the January property tax revenue of $2,437,431,third quarter franchise fees of $1 07,130 from Waste Management, and $396,977 as the first installment from sale of the Prop 1A property tax receivable. 6-1 January 2010 Monthly Report of Cash Balances March 3,2010 Page 2 The emergency suspension of Proposition 1A was passed by the Legislature and signed by the Governor on July 28,2009 as part of the FY09-10 budget package.On October 20, 2009,the City Council approved the agreements that enrolled the City into the Proposition 1A Securitization Program.The Program enables the City to receive bond proceeds (cash) for the entire balance of the 8%property tax loan that was borrowed by the State during FY09-10 totaling about $771,000.The City expects to receive the second and final installment on May 3,2010. Gas Tax Fund -The cash balance in this fund decreased by more than $69,000 during the month.The decrease was because the State suspended the Highway User Tax until April 30,2010 due to budget crisis and cash position shortfall,while normal operating expenditures were disbursed.The January revenue was offset by normal operating expend itu res. Measure R Fund -With its first receipt,a five-month apportionment totaling $124,000,the City established the Measure R fund.Measure R is a county-wide sales tax measure that was passed by voters on November 8,2008.Measure R increased the county sales tax from 8.25%to 8.75%to fund transportation projects.The additional tax will be in effect for 30 years and is expected to raise $40 billion for roadway and transit projects throughout the County.The City intends to use its apportionment to fund street re-surfacing projects and traffic control measures.The use of the City's Measure R apportionment is integrated into the budget. CIP Fund -The cash balance in this fund increased by more than $224,000 during the month.The increase was primarily due to a reimbursement of $220,000 from the State related to the closing of the purchase of the Upper Filiorum tract in the Portuguese Bend Nature Preserve. Special Trusts Fund -The cash balance in this fund decreased by more than $56,000 during the month.Cash fluctuations in the Special Trusts fund are caused by timing differences resulting from payments to and from the City for various services including engineering and inspections.The decrease was primarily due to the disbursements, including $20,812 to Rincon Consultants,Inc.and $8,318 to Linscott,Law &Greenspan, Engineers on behalf of Annenberg Foundation. W:\CASH$$\Treasurer's Report\FY2009-201 0\201 00302-Jan201 Oeity.doe 6-2 CITY OF RANCHO PALOS VERDES MONTHLY REPORT OF CASH BALANCES JANUARY 2010 TREASURIES BOA TREASURIES OPERATING BANKCARD PETTY CASH PAYROLL LAIF-CITY BOA ON DEMAND TREAS DIRECT TOTAL CASH BEGINNING BALANCE 2,763,776.52 0.00 2,500.00 10,065.46 27,181,802.19 6,656,778.63 344.52 0.00 36,615,267.32 PLUS:DEPOSITS 4,685,443.37 428,679.96 5,114,123.33 PLUS:INTEREST EARNINGS*40,484.42 40,484.42 LESS:CHECKS (1,163,111.82)(391,391.91 )(1,554,503.73) ADJUSTMENTS (37,930.39)50.00 (37,880.39) PLUS:TRANSFERS IN 3,000,000.00 3,000,000.00 LESS:TRANSFERS OUT (3,428,679.96)(3,428,679.96) ENDING BALANCE 2,819,497.72 0.00 2,500.00 47,403.51 30,222,286.61 6,656,778.63 344.52 0.00 39,748,810.99 *AII interest (LAIF &Savings)is paid quarterly.102,492.35 YTDINT RECEIVED 0.00 CASH BALANCES BY FUND BALANCE FORWARD DEBIT CREDIT CASH Change In Ending Cash Balance %Change of Cash Balance from Previous Month-End GENERAL FUND 10,676,771.10 3,972,593.50 1,267,452.58 13,381,912.02 2,705,140.92 25% GASTAX 186,589.48 6,970.19 76,323.30 117,236.37 (69,353.11 )-37% 1972 ACT 129,052.18 25,910.12 4,991.67 149,970.63 20,918.45 16% EL PRADO 11,773.86 196.26 0.00 11,970.12 196.26 2% CDBG 38,791.00 0.00 22,555.63 16,235.37 (22,555.63)-58% CDBG-R 0.00 0.00 0.00 0.00 0.00 0% 1911 ACT 1,674,688.38 49,747.60 34,701.11 1,689,734.87 15,046.49 1% RECYCLING 1,405,934.04 46,281.91 2,538.64 1,449,677.31 43,743.27 3% SOLID WASTE 205,208.79 39,021.40 12,337.31 231,892.88 26,684.09 13% AIR QUALITY MANAGEMENT 40,269.82 33.00 0.00 40,302.82 33.00 0% PROPOSITION C 2,794,818.79 38,105.85 0.00 2,832,924.64 38,105.85 1% PROPOSITION A 143,100.78 42,402.04 250.00 185,252.82 42,152.04 29% PUBLIC SAFETY GRANTS 74,247.95 48.00 0.00 74,295.95 48.00 0% MEASURE R 0.00 124,496.02 0.00 124,496.02 124,496.02 0% HABITAT RESTORATION 155,109.45 191.00 0.00 155,300.45 191.00 0% SUBREGION 1 MAINTENANCE 748,654.54 833.00 4,589.66 744,897.88 (3,756.66)-1% MEASURE A MAINTENANCE 77,366.42 49.00 0.00 77,415.42 49.00 0% ABALONE COVE SEWER DIST 85,612.63 4,592.90 10,244.44 79,961.09 (5,651.54)-7% RPVTV (44,262.99)0.00 8,264.41 (52,527.40)(8,264.41)19% GINSBURG CULTURE ART 195,833.68 381.00 0.00 196,214.68 381.00 0% RECREATION IMPRV DONATION 399,607.51 437.00 480.00 399,564.51 (43.00)0% CIP 5,940,686.18 239,931.14 15,537.50 6,165,079.82 224,393.64 4% QUIMBY 29,107.05 28.00 0.00 29,135.05 28.00 0% AFFORDABLE HSNG IN LIEU 1,771,804.01 1,956.00 774.00 1,772,986.01 1,182.00 0% EET 837,577.60 4,330.00 389.25 841,518.35 3,940.75 0% MEASURE A 7,440.11 0.00 0.00 7,440.11 0.00 0% BIKEWAYS 4,149.00 3.00 0.00 4,152.00 3.00 0% UNDERGROUND UTILITIES 274,191.50 303.00 0.00 274,494.50 303.00 0% ROADWAY BEAUTIFICATION 101,709.65 112.00 0.00 101,821.65 112.00 0% WQ FLOOD PROTECTION 2,842,950.11 125,681.18 23,622.01 2,945,009.28 102,059.17 4% EQUIPMENT REPLACEMENT 2,917,220.25 9,050.33 10,346.10 2,915,924.48 (1,295.77)0% EMPLOYEE BENEFITS 435,807.35 578,616.29 622,558.06 391,865.58 (43,941.77)-10% BUILDING REPLACEMENT 1,319,301.21 1,460.00 5,620.00 1,315,141.21 (4,160.00)0% IMPROVEMENT DISTRICT 9 0.00 0.00 0.00 0.00 0.00 0% SPECIAL TRUSTS 1,134,155.89 7,629.25 64,270.64 1,077,514.50 (56,641.39)-5% 36,615,267.32 5,321,389.98 2,187,846.31 39,748,810.99 3,133,543.67 9% Total Investment:39,748,810.99 6-3 Investment Checking Accounts Local Agency Investment Fund (LAIF) CITY OF RANCHO PALOS VERDES SUMMARY MONTHLY REPORT OF CASH BALANCES JANUARY 2010 Issuer of Acquisition Maturity Slated Market Par Book Investment Date Term Date Interest Rate Value Value Value Yield Bank of America N/A N/A On Demand N/A $2,869,401 N/A $2,869,401 0.00% State of California N/A N/A On Demand 0.56%$30,222,287 NOTE (1)N/A $30,222,287 0.56% Bank of America-MMC 344.52 $345 Bank of America 10/1/2009 180 days 3/25/2010 0.10%1,999,800 $1,999,000 0.10% 10/1/2009 270 days 6/17/2010 0.20%$4,662,034 $4,657,779 0.20% Total Investment:$39,748,811 Total Investment Weighted Average Return 0.4% NOTE: (1)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 nex1 six months. 6-4