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Consent-General Government # 13.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Receive and file Yolo County Treasurer's Report on Investments for quarter ended March 31, 2013. (No general fund impact) (Newens) |
| Recommended Action |
| Receive and file Yolo County Treasurer's Report on Investments for the quarter ended March 31 , 2013. |
| Strategic Plan Goal(s) |
| Provide fiscally sound, dynamic and responsive services |
| Reason for Recommended Action/Background |
The County Treasurer-Tax Collector submits a quarterly report on investments to the Board of Supervisors in accordance with Board policy and Government Code section 53646.
INVESTMENT PORTFOLIO
The county treasury investment portfolio is summarized in Att. A- Investment Summary. It includes county funds and deposits from special districts and school districts totalling $360 million as of March 31 , 2013. The portfolio consists of 2% ($9 million) in cash at bank; 51% ($183 million) in short-term investments in government investment pools such as the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP); 47% ($168 million) in an investment pool that is actively managed by a professional investment advisor, PFM Asset Management, LLP (PFM). These investments consist mostly of securities issued by federal agencies such as FNMA (Fannie Mae), FHLMC (Freddie Mac) and Federal Home Loan Bank, corporate notes, commercial papers and U.S. Treasuries. The detail of investments is shown in Att. B - PFM Statements.
In their report for the first quarter of 2013 (Att. C- Investment Performance 1Q13), PFM indicates that the national unemployment rate has continued its downward slide to 7.6% by the end of March. Home sales continue to trend up and home builders are showing increased confidence. The Fed and economists are expecting generally a 3% GDP growth through 2014, but the Fed is likely to maintain its zero interest rate policy until 2015. During the quarter PFM engaged in strategic swaps of securities which netted over $28,500 gain for the County. The porfolio outperformed the benchmark (0.18% versus 0.07%) during the quarter. PFM confirmed that the portfolio is of high credit quality, is well diversified and complies with the Government Code and County policy.
CASH BALANCES
The chart (Att. D - Cash Chart) depicts the cash balances of the five major operating funds of the County. Their combined balance on 4/30/2013 was $50 million; up by $12.3 million from the March balance, due to normal property tax apportionment. Three of the five funds are maintaining a positive balance, with the Health fund and the Public Safety funds posting negative balances which are not unusual at this time of the year. General Fund balance includes short-term cash borrowing through a reverse repurchase agreement of $15 million to fulfill short-term cash needs through the middle of June 2013.
CERTIFICATION
The Yolo County investment pool is in compliance with the Yolo County Investment Policy. Our analysis indicates that the investment holdings in the Yolo County Investment Pool are of proper amount and duration to meet the estimated cash flow requirements of the county and all pool participants for the next six months, barring substantial cash payment deferrals from the State government or other unforeseen cash needs. |
| Other Agency Involvement |
| Other agencies having deposits in the pool include: school districts, special districts, cities, Sacramento-Yolo Mosquito District and YCPARMIA. A copy of this report is available on the Auditor-Controller and Treasurer-Tax Collector's website. The Board of Supervisors Investment Committee reviews investment activity and strategy monthly; the Treasury Oversight Committee reviews investment performance quarterly. All reports from PFM Asset Management LLC are available in the County Treasurer's office |
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