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  Consent-General Government   # 11.       
Board of Supervisors Financial Services  
Meeting Date: 01/28/2020  
Brief Title:    Treasurer's Report on Investments - December 31, 2019
From: Chad Rinde, Chief Financial Officer, Department of Financial Services
Staff Contact: Edward Burnham, Accounting Manager, Department of Financial Services, x8212
Supervisorial District Impact:

Subject
Receive and file the County Treasurer's Investment Report for the quarter ended December 31, 2019. (No general fund impact) (Rinde)
Recommended Action
Receive and file the Yolo County Treasurer's Report on Investments for the quarter ended December 31, 2019.
Strategic Plan Goal(s)
Operational Excellence
Reason for Recommended Action/Background
The county treasury investment portfolio is summarized in Attachment A (Investment Summary), and includes the Treasurer's Investment Pool and the investment accounts managed by the Treasury that are not pooled together for investment returns. The pooled portfolio includes county funds, deposits from special districts, and school districts totaling $590.5 million as of December 31, 2019.

The portfolio consisted of 3.5% ($20.4 million) in cash at bank, 49.8% ($294.08 million) in short-term investments in government investment pools, such as the Local Agency Investment Find (LAIF) and the California Asset Management Program (CAMP), and 46.7% ($275.6 million) in an investment pool that is actively managed by professional investment advisor PFM Asset Management, LLP (PFM). These investments consist mostly of fixed income securities as authorized by government code, such as: U.S. Treasuries; securities issued by federal agencies, such as Fannie Mae, Freddie Mac and Federal Home Loan Bank; corporate notes; commercial papers; and certificates of deposit.

The detail of investments in the Pooled Portfolio is shown in Attachment B (PFM Performance Report). The non-pooled portfolio of $73.7 million consist of specific investments for various entities and programs. These include $25.08 million in government medium-term funds (LAIF and CAMP) for various districts and the 2017 Lease Revenue Bonds, $26.1 million in investments managed by PFM for various county programs (Landfill Closure, Cache Creek, etc.), $22.3 million in section 115 trusts held by PARS for County OPEB (Other Post Employment Benefits) and pension funding, and $240 thousand in cash in money market accounts. The non-pooled investment holdings are shown in Attachment C (Non-pooled Holdings).

In their quarterly investment review for the 3rd quarter of calendar year 2019, PFM intends to maintain a well-diversified portfolio and seek to balance the portfolio earnings potential with profit-taking in sectors that appear overly expensive. Bond issuance selection has become increasingly important, regardless of sector, as market cross-currents have created both risks and opportunities.

CASH BALANCES

Attachment D (Cash Balances) depicts the cash balances of the three major operation funds of the County, and their combined balance. On December 31, 2019, this unaudited balance was $20.3 million, which decrease by ($1.5) million from the prior quarter due to normal operating revenues and expenditures.
Collaborations (including Board advisory groups and external partner agencies)
Other agencies having deposits in the pool include: school districts, special districts and cities. A copy of the report is posted and available on the Department of Financial Service's website. The Board of Supervisors Investment Committee reviews the investment activity and strategy monthly; the Financial Oversight Committee reviews investment performance quarterly. All reports from the County's investment advisor PFM Asset Management LLC are available in the County Treasurer's office.
Competitive Bid Process
N/A
Attachments
Att. A. Investment Summary
Att. B. PFM Performance Report
Att. C. Nonpooled Holdings
Att. D. Cash Balances

Form Review
Inbox Reviewed By Date
Financial Services crinde 01/19/2020 04:16 PM
County Counsel Hope Welton 01/21/2020 09:07 AM
Casey Liebler Casey Liebler 01/21/2020 09:59 AM
Form Started By: eburnham Started On: 10/14/2019 01:43 PM
Final Approval Date: 01/21/2020

    

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