CC SR 20251007 C - City August Treasury Report
CITY COUNCIL MEETING DATE: 10/07/2025
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration to receive the August 2025 Cash Balances/Monthly Treasurer’s Report.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file the August 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 August 2025 (page A-1)
BACKGROUND AND DISCUSSION:
This report summarizes the cash balance of all funds and investments for the month of
August 2025 as part of fiscal year 2025-26. A separate report is prepared monthly for the
Joint Powers Improvement Authority (Improvement Authority) and presented under
separate cover to the Authority Commission.
Summary of Cash and Investments
As of August 2025, the overall cash balance of the City is $76 million (Chart 1). This
amount includes:
• $23.3 million (31%) in the Local Agency Investment Fund (LAIF).
• $3.6 million (5%) with BMO, which includes more than $3.4 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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• $4.5 million (6%) is with Malaga Bank earning 3.92%.
• $44.6 million investments under the City’s brokerage firm Stifel:
o $17.5 (23%) Certificates of Deposit (CD);
o $11 million (14%) Treasury Bills;
o $16.9 million (22%) Agency Bonds;
o -$0.8 million money market account. The negative balance was
temporary due to the timing between the trade date on August 29,
2025 and the settlement date on September 3, 2025. The City holds
a money market account with Stifel for transactions related to buying
and selling investments as applicable. The securities are held by
Bank of America and are FDIC-insured. Additional balance details
for each investment instruments can be found in the attachments on
page A-1.
Chart 1: Cash and Investments $76M (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 prior years. Additionally, the increase is attributed to changes in the
$0.1
($0.8)
$4.5
$3.5
$11.0
$16.9
$17.5
$23.3
0.2%
-1.1%
5.9%
4.6%
14.4%
22.2%
23.0%
30.7%
($5.0)$0.0 $5.0 $10.0 $15.0 $20.0 $25.0
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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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 solely in LAIF. 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 at 0% interest earnings.
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 August 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 million, the City’s General Fund has $29.7 million
(39%), and the Capital Infrastructure Program (CIP) Fund has $16.2 million (21%). The
remaining cash balance of $30.1 million (40%) is a combination of Special Revenue
Funds and Permanent Funds.
CONTINUED ON THE NEXT PAGE
3.8%3.9%
3.3%
3.9%
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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Chart 4: Summary of Cash Balance by Fund $76 (in millions)
Compared to a year ago (August 2024), the City’s cash balance decreased by $11.6
million, primarily due to ongoing expenditures for emergency response and stabilization
efforts related to the Greater Portuguese Bend Landslide. When comparing the balance
to July 2025, the City’s cash balance slightly decreased by approximately $0.3 million,
primarily due to outstanding billing for general operational services for City-approved
projects.
The major disbursements for the month of August included Aleshire and Wynder for legal
services, Cotton & Shires for emergency landslide stabilization engineering services,
Iteris Incorporated for Western Avenue traffic flow improvement project, Kimley -Horn
Incorporated for the roundabout feasibility study, Malcolm Drilling for landslide
stabilization measure tasks, Stay Green for annual landscape and tree trimming project,
and Tyler Technologies for annual Munis SAAS support. 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 recommends that the City Council receive and file the Treasurer’s Report ending
August 2025.
ALTERNATIVES:
In addition to staff’s recommendation, the following alternative actions are available for
the City Council’s consideration:
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1. Do not receive the August 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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