CC SR 20250902 C - City Treasurer's Report July 2025CITY COUNCIL
AGENDA REPORT
MEETING DATE: 09/02/2025
AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration to receive the July 2025 Preliminary Cash Balances/Monthly Treasurer’s
Report.
RECOMMENDED COUNCIL ACTION:
(1)Receive and file the July 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 July 2025 (page A-1)
BACKGROUND AND DISCUSSION:
This report summarizes the cash balance of all funds and investments for the month of
July 2025 as part of fiscal year 2025-26. A separate report is prepared monthly for the
Joint Power’s Improvement Authority (Improvement Authority) and presented under
separate cover before the Authority Commission.
Summary of Cash and Investments
As of July 2025, the overall cash balance of the City is $76.3 million (Chart 1). This amount
includes $18.3 million (24%) in the Local Agency Investment Fund (LAIF) and $7.2 million
(9%) of the total cash balance with BMO, which includes approximately $7 million in
checking for operational needs and less than $0.2 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 Chart 3, 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
$18 million (24%), Treasury Bills of $11 million (14%), and Agency Bonds of $16.9 million
(22%), and a money market account with Stifel approximately at $0.4 million (less than
1%). 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 $76.3M (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
$0.1
$0.4
$4.5
$7.0
$11.0
$16.9
$18.0
$18.3
0.2%
0.5%
5.9%
9.2%
14.4%
22.2%
23.6%
24.1%
$0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0
BMO - Money Market
Stifel - Money Market
Malaga Bank - CD
BMO - Checking
Stifel - Treasury
Stifel - Agency Bonds
Stifel - CD
State of California - LAIF
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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
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
There are no new interest earnings to report for July since the earnings are recorded on
a quarterly basis.
Overall, the 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
$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
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Chart 3: Investments - Average Yield
Summary of Cash Balance by Fund
As shown in Chart 4 below, of the $76.3 million, the City’s General Fund has
approximately $29.5 million (39%), and the Capital Infrastructure Program (CIP) Fund
has approximately $16.6 million (22%). The remaining cash balance of $30.2 million or
39% is a combination of Special Revenue Funds and Permanent Funds.
Chart 4: Summary of Cash Balance by Fund $76.3 (in millions)
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
$29.5
39%
$16.6
22%
$30.2
39%
GENERAL FUND
CIP FUND
OTHER RESTRICTED
FUNDS
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Compared to a year ago (July 2024), the City’s cash balance decreased by $19.5 million,
primarily due to ongoing expenditures for emergency response and stabilization efforts
related to the Greater Portuguese Bend Landslide. When comparing the balance in June
2025, the City’s cash balance decreased by approximately $4 million, primarily due to
outstanding billing for general operational services for City-approved projects.
The major disbursements for the month of July included Aleshire and Wynder for legal
services, California Joint Power Insurance Authority for the annual property insurance
premium, John Hunter for the canyon flow study monitoring services, Klondike Canyon
Geological Hazard Abatement District for the annual maintenance and operating
assessment, Los Angeles County Sheriff’s Department for law enforcement services,
Malcolm Drilling for the landslide stabilization measure tasks and retention release from
previous jobs, Sky Element for the 4 th of July drone light show performance, Stay Green
for the landscape and tree trimming project, and West Coast Arborist for the tree trimming
and general maintenance throughout the City. All expenditures were disbursed in
accordance with the Fiscal Year 2024-25 and Fiscal Year 2025-26 budgets and the City
Council’s approved expenditures related to the landslide.
CONCLUSION:
Staff recommend that the City Council receive and file the Treasurer’s Report ending July
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 July 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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