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Consent-General Government # 18.
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| Board of Supervisors |
Financial Services |
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| Subject |
| Receive and file the County Treasurer's Investment Report for the quarter ended March 31, 2018. (No general fund impact) (Newens) |
| Recommended Action |
Receive and file the Yolo County Treasurer's Report on Investments for the quarter ended March 31, 2018.
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| Strategic Plan Goal(s) |
| Operational Excellence |
| Reason for Recommended Action/Background |
INVESTMENT PORTFOLIO
The county treasury investment portfolio is summarized in Att. 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 $450 million as of March 31, 2018. The portfolio consisted of 5.6% ($25 million) in cash at bank; 37.7% ($170 million) in short term investments in government investment pools such as the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP); 56.7% ($255 million) in an investment pool that is actively managed by a 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 FNMA (Fannie Mae), FHLMC (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 Att. B. PFM Performance Report and the Nonpooled investment holdings are shown in Att. C. Nonpooled Holdings. In their quarterly investment review for the 1st quarter of calendar year 2018 (Att. B. PFM Investment Performance Report), PFM noted that economic themes carried over into 2018 still remain: healthy job production, consistent GDP growth, positive corporate guidance, and heightened consumer confidence. With municipal market issuance down significantly year-to-date, opportunities to add to the sector remain limited. The short-term credit curve (under one year) steepened noticeably heading into the March Fed meeting and remained elevated through quarter-end.
CASH BALANCES
The chart (Att. D. Cash Balances) depicts the cash balances of the three major operation funds of the County, and their combined balance. On March 31, 2018, this unaudited balance was $32.5 million; decreased ($7.8) million from the prior quarter due to normal operating revenues and expenditures.
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. |
| 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 Services' 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 |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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