|
Back to Calendar
Return
|
| |
Consent-General Government # 17.
|
| Board of Supervisors Meeting |
Financial Services |
|
|
|
| Subject |
| Receive and file the County Treasurer's Investment Report for the quarter ended June 30, 2015. (No general fund impact) (Newens) |
| Recommended Action |
| Receive and file the Yolo County Treasurer's Report on Investments for the quarter ended June 30, 2015. |
| Strategic Plan Goal(s) |
| Provide fiscally sound, dynamic and responsive services |
| Reason for Recommended Action/Background |
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 totaling $421.8 million as of June 30, 2015. The portfolio consisted of 1.9% ($7.8 million) in cash at bank; 27.7% ($116.9 million) in short term investments in government investment pools such as the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP); 70.4% ($297.0 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 is shown in Att. B - PFM Statements.
In their quarterly investment review for the 2nd Quarter (Att. C - Investment Performance 2Q15), PFM noted that interest rates have continued to trend slightly upward during the quarter, the Fed is not yet ready to raise rates, and investors sought high-quality government bonds as uncertain financial conditions in Greece continued to worsen. In the meantime, the labor market continues to strengthen by adding jobs to the economy after a slow start to the year (with unemployment rate at 5.3%) however the drop from the previous quarter (unemployment rate of 5.5%) was mainly due to a decline in labor force participation. According to the approved strategy, PFM continues moving assets to the long-term to achieve the new 30% short -term and 70% long-term target. PFM reported that the portfolio complies with codes and investment policy, and is well diversified. In the second quarter of 2015, the portfolio achieved an annualized return of 0.49%, versus benchmark of 0.42%.
CASH BALANCES
The chart (Att. D - Cash Chart) depicts the cash balances of the three major operation funds of the County, and their combined balance. On June 30, 2015, this balance was $48.2 million; down $4.0 million from the prior quarter due to normal operating revenues and expenditures. We maintained a Reverse Repurchase Agreement (Reverse Repo) borrowing transaction that was repaid 4/24/2015; we are monitoring cash balances and will likely renew the borrowing in the fall of 2015. The combination of the County's proactive budgetary management and the economic recovery is evidenced by the growth in balances subsequent to prior years.
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 an 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, cities, Sacramento-Yolo Mosquito District and YCPARMIA. A copy of the report is 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 PFM Asset Management LLC are available in the County Treasurer's office. |
|
| Fiscal Impact |
|
|
| Source of Funds for this Expenditure |
|
|
|
|
|
|
|