CC SR 20250603 C - City Treasurer Report
CITY COUNCIL MEETING DATE: 06/03/2025
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to receive the April 2025 Cash Balances/Monthly
Treasurer’s Report.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file the April 2025 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: Vina Ramos, Director of Finance VR
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Monthly Treasurer’s Report for April 2025 (page A-1)
BACKGROUND AND DISCUSSION:
This report summarizes the cash balance of all funds and investments for the month of
April 2025. A separate report is prepared monthly for the Improvement Authority and
presented under separate cover before the Authority Commission .
Summary of Cash and Investments
As of April 2025, the overall cash balances of the City totaled $80.4 million (Chart 1) with
approximately $17 million (21%) of the total cash balance in the Local Agency Investment
Fund (LAIF). The City has approximately $9 million (11%) of the total cash balance with
BMO, which includes $5 million in checking for operational needs. In April 2024, the City
opened a new money market account with BMO with a starting balance of $0.5 million of
idle funds to maximize interest earnings instead of leaving the amount in the BMO
checking account. As shown in Attachment A, BMO’s money market yield is 3.8%.
Additionally, over $4.4 million (6%) is with Malaga Bank with a yield of 3.92%. Additional
balance details can be found in the attachments on page A-1.
1
Chart 1: Cash and Investments $80.4M (in millions)
Investments under the City’s brokerage firm Stifel, include Certificates of Deposit (CD)
investments of $19.7 million (25%), Treasury Bills and Agency Bonds $29.9 million (37%)
of the total cash balance, and a money market account has a zero balance. The City drew
the balance from the money market account to make the fund liquid for the use of
landslide-related expenses. The City holds a money market account with Stifel for
transactions related to the selling and purchasing of investments, as applicable. The
securities are held by Bank of America and are FDIC -insured. Additional balance details
for each investment instrument can be found in the attachments on page A-1.
As included in this report, the City’s total interest earnings from all investments are
approximately $2.85 million (July 2024 – March 2025) as summarized below in Chart 2.
Chart 3 summarizes the average yields. This represents an increase of approximately
$401,794 (+16%) compared to the same quarters last year of $2.45 million.
The increase is mainly due to the higher rates available this year compared to the prior
years. Additionally, the increase is attributed to changes in the City’s investment policy
adopted by the City Council in 2024. This policy raised the short-term investments cap of
50% to 70% and allowed for low-risk short-term investments such as Treasuries, instead
of investing funds in LAIF only. Staff also added a money market/sweep account with the
City’s existing financial institution, BMO, to maximize interest earnings, ranging from
approximately 3.8% to 4.5% (depending on current market rates), instead of leaving the
amount in the BMO checking account for 0% interest earning. Since the policy change,
along with favorable market interest rates, the City has realized approximately $1.4 million
more in interest earnings in FY 2023-24, ending the year at $3.4 million, which is up from
$2 million FY 2022-23. Due to a lower balance in FY 2024-25, Staff projects interest
earnings to reach approximately $2.9 million. While this is lower than the previous year,
this amount is still nearly $1 million higher than the earnings prior to the policy c hange in
FY 2022-23.
Interest earnings are recorded quarterly, and the next interest earnings report will be
updated in the July report.
$29.9
$19.7
$17.1
$5.1
$4.5
$4.1
37%
25%
21%
6%
6%
5%
$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0
Investments - Treasury Bonds (Stifel)
Investments - CD (Stifel)
Investmetns - LAIF
Checking Accounts (BMO)
Investments - CD (Malaga)
Money Market (BMO and Stifel)
2
Chart 2: Interest Earnings $2.85M (July 2024 – March 2025) (in millions)
Chart 3: Investments - Average Yield
Summary of Cash Balance by Fund
In summary, as illustrated in Chart 4, the City’s General Fund has over $32.2 million
(40%), and the Capital Infrastructure Program (CIP) Fund has over $18.1 million (23%).
The remaining cash balances are in the Equipment Replacement Fund with over $3.3
$82,643 $130,596
$1,745,016
$896,397
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
BMO - Money Market Malaga Bank - CD Stifel - CD, Treasury, Agency
Bonds
State of California - LAIF
3.8%3.9%
3.3%
4.2%4.3%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
BMO - Money Market Malaga Bank - CD Stifel - CD Stifel - Treasury,
Agency Bonds
State of California -
LAIF
3
million (4%), over $3.3 million (4%) in the 1911 Act Fund, over $63,000 (<1%) in the
Quimby Fund, and over $23.4 million (29%) in Other Restricted Funds.
Chart 4: Summary of Cash Balance by Fund (in millions)
Compared to a year ago (April 2024), the City’s cash balance decreased by $18 million,
primarily due to ongoing expenditures for emergency response and mitigation efforts
related to the Portuguese Bend Landslide. When comparing the balance in March 2025,
the City’s cash balance increased by $1.3 million, primarily because revenues received
exceeded outstanding billings for general operational services and disbursements for
City-approved projects. The major disbursements for the month of April included Aleshire
and Wynder for legal services, Cotton, Shires and Associates for the Portuguese Bend
landslide geology review, Geosyntec Consultant for storm water monitoring services,
Hardy and Harper for emergency roadway repairs, Klondike Canyon Landslide
Abatement District (KCLAD) for the loan disbursements as part of the financial assistance
approved by the City Council on July 2, 2024 City Council , Los Angeles County Sheriff’s
Department for law enforcement services, Malcolm Drilling for emergency landslide
services related to the deep dewatering wells task orders, and Ocean Blue Environmental
Services for landslide sewage services at the residential areas. All expenditures were
disbursed in accordance with the Fiscal Year 2024-25 budget and the City Council’s
approved expenditures related to the landslide .
GENERAL FUND
$32.2
40%
CIP FUND
$18.1
23%
OTHER RESTRICTED
FUNDS
$30.1
37%
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