CC SR 20260804 D - June 2026 Treasury Report - CityCITY COUNCIL MEETING DATE: 08/04/2026
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consider the June 2026 Cash Balances/Monthly Treasurer’s Report.
RECOMMENDED COUNCIL ACTION:
(1)Receive and file the June 2026 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 2026 (page A-1)
BACKGROUND:
This report summarizes the cash balance of all funds and investments for the month of
June 2026 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.
DISCUSSION:
Summary of Cash and Investments
As of June 30, 2026, the City’s overall cash balance was $85.9 million (Chart 1), an
increase of $5.7 million from the prior fiscal year. While landslide-related expenditures
remained significant, they were lower compared to the prior year, contributing to the
increase in the City’s cash balance.
The $85.9 million balance includes:
•$36.8 million (43%) in the Local Agency Investment Fund (LAIF).
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• $3.2 million (4%) with BMO, which includes $3 million in checking for
operational needs and $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 3.1%.
• $4.7 million (6%) is with Malaga Bank earning 3.9%.
• $41.2 million investments under the City’s brokerage firm Stifel:
o $13.2 million (15%) Certificates of Deposit (CD),
o $14 million (16%) Treasury Bills,
o $14 million (16%) Agency Bonds,
o $10,361 (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 $85.9M (in millions)
Interest Earnings
The interest earnings are recorded on a quarterly basis. At the end of June, the fourth
quarter interest earnings are $700,219. Compared to the same quarter as last year, the
interest earnings were $634,500. This is an increase of $65,719 or 10% increase, mainly
due to better rates of return and slightly higher balance. In comparison with prior year
interest earnings, the total interest earnings for fiscal year 2025-26 were $3,087,511,
which was a $443,848 or 12.5% decrease from prior year. The decrease was mainly due
to lower rates in the first three quarters of the year.
Chart 2: FY2025-26 Interest Earnings $3,087,544
$66,349 $179,799
$1,487,340 $1,354,023
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
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 $85.9 million, the City’s General Fund has $33.8 million
(42%), and the Capital Infrastructure Program (CIP) Fund has $20.3 million (22%). The
remaining cash balance of $31.8 million (36%) is a combination of Special Revenue
Funds and Permanent Funds.
Chart 4: Summary of Cash Balance by Fund $85.9M (in millions)
Compared to a year ago (June 2025), the City’s cash balance increased approximately
at $5.7 million, primarily due to lower expenditures for emergency response and
3.1%
3.9%
3.4%3.8%3.8%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
BMO - Money
Market
Malaga Bank - CD Stifel - CD Stifel - Treasury,
Agency Bonds
State of California -
LAIF
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stabilization efforts related to the Greater Portuguese Bend Landslide. When comparing
the balance to May 2026, the City’s cash balance decreased by $0.7 million, primarily due
to timing of outstanding billing for general operational services for City-approved projects.
The major disbursements for the month of June included Aleshire and Wynder for legal
services, Fire Grazers for the fuel modification goat grazing services, Klondike Canyon
Geological Hazard Abatement District for annual maintenance and operating
assessment, Los Angeles County Sheriff’s Department for law enforcement services,
Motorola Solutions for Peninsula cities automated license plate reader (ALPR) camera
upgrade, Pipe Tec for the citywide storm drain closed circuit television, South Bay Toyota
for purchase of two vehicles, and Williams Pipeline for Abalone Cove sewer rehabilitation
project. All expenditures were disbursed in accordance with FY 2025-26 budgets and the
City Council’s approved expenditures related to the landslide.
As part of the year-end closing process, Staff is in the process of reviewing any
outstanding invoices and processing applicable year-end adjustments. Staff will present
the final Treasury Report when the year end is closed.
ADDITIONAL INFORMATION:
FY 2026-27 Investment Policy Update
As part of the annual review process, Staff reviewed the City’s Investment Policy against
the 2026 Local Agency Investment Guidelines (LAIG). No statutory changes were
identified that require revisions to the City’s allowable investment instruments. However,
Staff identified an opportunity to clarify the policy language governing cash maintained
with the City’s operating financial institution.
The current policy combines demand deposits in the operating checking account and
money market savings accounts under the same $5 million limit. The revision clarifies that
the $5 million limit applies to the operating checking account only, while money market
and sweep account balances are maintained separately, subject to applicable State law
and the City’s Investment Policy. This clarification is consistent with the City’s current
cash management practices and allows excess operating cash to earn interest while
preserving sufficient liquidity for City operations. On June 11, 2026, the Finance Advisory
Committee reviewed the proposed update and recommended that it be presented to the
City Council for approval. On July 7, 2026, the City Council approved the updated
Investment Policy.
The revision builds on the significant policy changes approved in 2024, which increased
the amount of available cash that may be invested in low-risk instruments from 50% to
70% and supported the use of U.S. Treasuries, Agency bonds, and money market/sweep
accounts. Over the past two fiscal years, these changes have contributed to
approximately $2.3 million in additional interest earnings compared with FY 2022-23.
Interest earnings were beginning to decline in FY 2025-26 due to lower available cash
balances and slightly lower market rates, including the use of cash for landslide
emergency response and stabilization efforts.
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CONCLUSION:
Staff recommend that the City Council receive and file the Treasurer’s Report ending June
2026.
ALTERNATIVES:
In addition to staff’s recommendations, the following alternative actions are available for
the City Council’s consideration:
1.Do not receive the June 2026 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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