Agenda

Back to Calendar Return

Consent-General Government # 16.

Board of Supervisors

Financial Services

Meeting Date:	11/07/2017
Brief Title: Treasurers Investment Report for Quarter Ended September 30, 2017
From:	Howard Newens, Chief Financial Officer, Department of Financial
Staff Contact:	Edward Burnham, Accounting Manager, Department of Financial Services, x8212

Subject

Receive and file the County Treasurer's Investment Report for the quarter ended September 30, 2017. (No general fund impact) (Newens)

Recommended Action

Receive and file the Yolo County Treasurer's Report on Investments for the quarter ended September 30, 2017.

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 and deposits from special districts and school districts totaling $372 million as of September 30, 2017. The portfolio consisted of 6.3% ($23.6 million) in cash at bank; 21.6% ($80.5 million) in short term investments in government investment pools such as the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP); 72.0% ($268 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 3rd quarter of calendar year 2017 (Att. B. PFM Investment Performance Report), PFM noted Shorter-term Treasury yields (five years and under) rose in the third quarter on the expectation of further monetary policy tightening. Long-term Treasury yields (10 years and longer) rose just a couple basis points. This continued the trend of modest flattening of the Treasury yield curve since the beginning of the year. The County’s portfolio has completed transitioning to the new 0-5 year benchmark strategy (the process of which began at June month-end). PFM reported that the portfolio complies with government code and County investment policy and is well diversified.

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 September 30, 2017, this unaudited balance was $31.8 million; down $2.9 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.

Fiscal Impact

Fiscal Impact (Expenditure)
No Fiscal Impact
Total cost of recommended action:		$ 0
Amount budgeted for expenditure:		$ 0
Additional expenditure authority needed:		$ 0
On-going commitment (annual cost):	$ 0

Source of Funds for this Expenditure

Attachments
Att. A. Investment Summary
Att. B. PFM Performance Report
Att. C. Non-pooled Investment Holdings
Att. D. Cash Balances

Form Review

Inbox	Reviewed By	Date
County Counsel	Hope Welton	10/26/2017 10:01 AM
Form Started By: crinde		Started On: 08/02/2017 07:30 AM
Final Approval Date: 10/26/2017