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CC SR 20230502 C - City Feb 2023 Treasury Report CITY COUNCIL MEETING DATE: 05/02/2023 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to receive the February 2023 Cash Balances/Monthly Treasurer’s Report. RECOMMENDED COUNCIL ACTION: (1) Receive and file the February 2023 Cash Balances/Monthly Treasurer’s Report. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Jane Lin, Senior Accountant REVIEWED BY: Trang Nguyen, Director of Finance APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Monthly Treasurer’s Report (page A-1) BACKGROUND AND DISCUSSION: This report summarizes the cash balance of all funds and investments for the month of February 2023. A separate report is prepared monthly for the Improvement Authority and presented under separate cover before the Authority Commission. The overall cash balances of the City totaled over $96 million with almost $55 million or 57% of the total cash balance in the Local Agency Investment Fund (LAIF). The City has over $5 million or 6% of the total cash balance with Bank of the West and over $4 million or 5% with Malaga Bank. Additionally, the investments under the City’s brokerage firm Stifel includes Certificates of Deposit (CD) investments at $22 million or 23%, Treasury Bills and Agency Bonds over $8.5 million or 9% of the total cash balance. Also, the City holds a money market account with Stifel for the transaction of selling and purchase purposes. The securities are held by Bank of America and are FDIC-insured. At the end of February, the money market account had a negative balance of $168,200 due to a CD purchased on February 22 with a settlement date on March 7. 1 In summary, the City’s General Fund has over $32 million or 34% in the cash balance, and the Capital Infrastructure Program (CIP) Fund has over $38 million or 39% in cash balance. The remaining cash balances are in the Equipment Replacement Fund with over $3 million or 3%, over $2 million or 2% in the 1911 Act Fund, approximately $0.2 million or less than 1% in the Habitat Restoration Fund, approximately $0.4 million or 1% in the Quimby Fund, and over $20 million or 21% in Other Restricted Funds. The City’s cash balance increased by over $18 million compared to the February 2022 balance. As reported in the prior month’s report, the significant overall increase in cash balance since the prior year includes the second payment of American Rescue Plan Act of $4.9 million received in July 2022, $8 million from Bank of the West for the partial funding of the Ladera Linda Community Park Project in April 2022, and the remaining $5 million is a combination of increased in revenues and timing of disbursements in General Fund and Other Special Revenue funds. Additionally, while comparing the balance in January 2023, the City’s cash balance increased by almost $1 million, mainly attributed to the timing of billing for general services and disbursements for City-approved projects. The major disbursements for this month included Aleshire and Wynder for legal services, Biggs Cardosa Associates for the Crest Road retaining wall project, Griffin Structure for construction of the Ladera Linda Community Park Project, Hardy and Harper for the guardrail maintenance at Palos Verdes Drive East, Hout Construction for the Portuguese Bend Landslide project management services, and LSA for the Portuguese Bend Landslide Remediation project environmental impact report. All expenditures were disbursed in accordance with the Fiscal Year 2022-23 budget. 2 A-1 A-2 A-3