CC SR 20250805 C - Treasurer's Report June 2025
CITY COUNCIL MEETING DATE: 08/05/2025
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration to receive the June 2025 Preliminary Cash Balances/Monthly Treasurer’s
Report.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file the June 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 June 2025 (page A-1)
BACKGROUND AND DISCUSSION:
This report summarizes the cash balance of all funds and investments for the month of
June 2025 as part of fiscal year 2024-25. 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 June 2025, the overall cash balance of the City is $80.2 million (Chart 1). This
amount includes $25.1 million (31%) in the Local Agency Investment Fund (LAIF) and
$4.3 million (5%) of the total cash balance with BMO, which includes approximately $1.2
million in checking for operational needs and $3.1 million in a Money Market account. The
Money Market account was opened in April 2024 to maximize interest earnings instead
of leaving the idle funds in the checking account. As shown in Attachment A, BMO’s
money market yield is 3.8%.
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Additionally, over $4.5 million (6%) is with Malaga Bank with a yield of 3.92%. Investments
under the City’s brokerage firm Stifel, include Certificates of Deposit (CD) investments of
$19 million (24%), Treasury Bills and Agency Bonds of $23.9 million (30%), and a money
market account with Stifel of over $3.3 million (4%). 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.
Chart 1: Cash and Investments $80.2M (in millions)
As included in this report, the City’s total interest earnings from all investments are
approximately $3.5 million in FY 2024-25 as summarized on the following page in Chart
2. Chart 3 summarizes the average yields. This represents an increase of approximately
$109,737 (+3%) compared to FY 2023-24.
2024 Investment Policy Update
The increase in interest earnings is mainly due to the higher market rates available this
year compared to the prior years. Additionally, the increase is attributed to changes in the
City’s investment policy. In 2024, the City Council adopted significant changes to the
Investment Policy based on recommendations from Staff and the Finance Advisory
Committee (FAC). One of the most impactful changes was increasing the allowable
investment of available cash (excluding operating needs) from 50% to 70%. Th is revised
policy allowed for low-risk short-term investments such as U.S. Treasuries and Agency
bonds, 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), instea d
of leaving the amount in the BMO checking account for 0% interest earning.
These adjustments have already led to a substantial increase in interest earnings. Over
the past two fiscal years, the City has earned approximately $2.3 million more in interest
compared to FY 2022–23 largely due to the ability to invest more in higher-yielding
$23.9
$19.0
$25.1
$1.2
$4.5
$6.5
30%
24%
31%
1%
6%
8%
$0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0
Investments - Treasury & Agency Bonds (Stifel)
Investments - CD (Stifel)
Investments - LAIF
Checking Accounts (BMO)
Investments - CD (Malaga)
Money Market (BMO and Stifel)
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instruments such as U.S. Treasuries and Agency bonds, rather than keeping idle funds
in the City’s checking account or LAIF.
It should be noted, however, that interest earnings are expected to decline in FY 2025 –
26 as the City is estimated to have a lower cash balance compared to the last two fiscal
years, primarily due to increased expenditures related to the landslide emergency
response.
Interest Earnings
Interest earnings are recorded quarterly. Total interest earned in FY2024-25 is $3.5
million from all funds, which is an increase of $109,737 (3%) compared to FY2023-24.
Chart 2: FY2024-25 Interest Earnings $3.5M
Chart 3: Investments - Average Yield
$118,713 $174,337
$2,084,216
$1,098,177
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
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
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Summary of Cash Balance by Fund
As shown in Chart 4 below, of the $80.2 million, the City’s General Fund has
approximately $33 million (41%), and the Capital Infrastructure Program (CIP) Fund has
approximately $17.3 million (22%). The remaining cash balance of $29.4 million or 37%
is a combination of Special Revenue Funds and Permanent Funds.
Chart 4: Summary of Cash Balance by Fund 80.2 (in millions)
Compared to a year ago (June 2024), the City’s cash balance decreased by $18.2 million,
primarily due to ongoing expenditures for emergency response and stabilization efforts
related to the Greater Portuguese Bend Landslide. When comparing the balance in May
2025, the City’s cash balance decreased by $0.4 million, primarily from revenues received
exceeding outstanding billing for general operational services and disbursements for City-
approved projects.
The major disbursements for the month of June included Abalone Cove Landslide
Abatement District for annual maintenance and operating assessment , Chapman Coast
Roof for the Hesse Park roof replacement, California Joint Power Insurance Authority for
annual liability and worker’s compensation contribution, Fire Grazers for the fuel
modification goat grazing services, and Malcolm Drilling for emergency landslide services
related to the deep dewatering wells task orders. All expenditures were disbursed in
accordance with the Fiscal Year 2024-25 budget and the City Council’s approved
expenditures related to the landslide.
It is important to note that the June report is preliminary. The final report will be submitted
upon completion of the year-end closing process.
$33.0
41%
$17.3
22%
$29.4
37%
GENERAL FUND
CIP FUND
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CONCLUSION:
Staff recommend that the City Council receive and file the Treasurer’s Report ending June
2025.
ALTERNATIVES:
In addition to Staff recommendation, the following alternative action s are available for the
City Council’s consideration:
1. Do not receive the June 2025 Cash Balances/Monthly Treasurer’s Report and
request additional information at a future meeting.
2. Take other action, as deemed appropriate.
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