CC SR 20251104 C - City September Treasury Report
CITY COUNCIL MEETING DATE: 11/04/2025
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consider the September 2025 Cash Balances/Monthly Treasurer’s Report.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file the September 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 September 2025 (page A-1)
BACKGROUND AND DISCUSSION:
This report summarizes the cash balance of all funds and investments for the month of
September 2025 as part of Fiscal Year (FY) 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 September 2025, the overall cash balance of the City is $76 million (Chart 1). This
amount includes:
• $25.3 million (33%) in the Local Agency Investment Fund (LAIF).
• $4.7 million (6%) with BMO, which includes $2.6 million in checking for
operational needs and more than $2.1 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 Chart 3, BMO’s money market yield is 3.56%.
• $4.5 million (6%) is with Malaga Bank earning 3.92%.
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• $41.6 million investments under the City’s brokerage firm Stifel:
o $16.7 (22%) Certificates of Deposit (CD).
o $9 million (12%) Treasury Bills;
o $15.4 million (20%) Agency Bonds;
o $0.5 million (less than 1%) money market account. 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. The additional balance
details for each investment instrument can be found in the
attachments on page A-1.
Chart 1: Cash and Investments $76M (in millions)
Interest Earnings
The interest 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.
(Continued on the Next Page)
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Chart 2: FY2025-26 First Quarter - Interest Earnings $869,406
Chart 3: Investments - Average Yield
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Summary of Cash Balance by Fund
As shown in Chart 4 below, of the $76 million, the City’s General Fund has $27.9 million
(37%), and the Capital Infrastructure Program (CIP) Fund has $17.8 million (23%). The
remaining cash balance of $30.6 million (40%) is a combination of Special Revenue
Funds and Permanent Funds.
Chart 4: Summary of Cash Balance by Fund $76M (in millions)
Compared to a year ago (September 2024), the City’s cash balance decreased by $21.2
million, primarily due to ongoing expenditures for emergency response and stabilization
efforts related to the Greater Portuguese Bend Landslide. When comparing the balance
to August 2025, the City’s cash balance slightly increased by approximately $0.3 million,
primarily due to the timing of outstanding billing for general operational services for City-
approved projects.
The major disbursements for the month of September included Aleshire and Wynder for
legal services, Built Rite Fence for the bluff trail fence repairs, EDCO Disposal for the
annual street cleaning and sweeping project, Harris & Associates for ramp design at
Palos Verdes Drive South and Palos Verdes Drive West, J&H Drilling for the emergency
landslide stabilization project, Los Angeles County Sheriff’s Department for law
enforcement services, and Superion for City’s permitting software upgrade to the Cloud.
All expenditures were disbursed in accordance with FY 2025-26 budgets and the City
Council’s approved expenditures related to the landslide.
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ADDITIONAL INFORMATION:
2024 Investment Policy Update
The City’s total interest earnings from all investments are approximately $3.5 million in
FY 2024-25. This represents an increase of approximately $109,737 (+3%) compared to
FY 2023-24.
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%. This revi sed
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 interes t 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.
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.
CONCLUSION:
Staff recommends that the City Council receive and file the Treasurer’s Report ending
September 2025.
ALTERNATIVES:
In addition to staff’s recommendation, the following alternative actions are available for
the City Council’s consideration:
1. Do not receive the September 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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