|
Back to Calendar
Return
|
| |
Consent-General Government # 13.
|
| Board of Supervisors |
Financial Services |
|
|
|
| Subject |
| Receive and file the updated Yolo County Treasurer's Report on Investments for the quarter ended June 30, 2020. (No general fund impact) (Rinde) |
| Recommended Action |
| Receive and file the updated Yolo County Treasurer's Report on Investments for the quarter ended June 30, 2020. |
| Strategic Plan Goal(s) |
 |
In Support of All Goals |
|
| Reason for Recommended Action/Background |
The below and attached Attachment A (Investment Summary Revised) have been updated to correct the pooled CAMP account balance from $266M to $226M (due to a typographical error) and additional earnings apportioned from LAIF based on final year end results.
The county treasury investment portfolio is summarized in Attachment A (Investment Summary Revised), 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 $605.8 million as of June 30, 2020.
The portfolio consisted of 3.8% ($23.1 million) in cash at bank, 46.6% ($282.4 million) in short-term investments in government investment pools, such as the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP), and 49.5% ($300.2 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 $90.3 million consists of specific investments for various entities and programs. These include $40.5 million in government medium-term funds (LAIF and CAMP) for various districts and capital project accounts, $25.5 million in investments managed by PFM for various county programs (Landfill Closure, Cache Creek, etc.), $23.4 million in section 115 trusts held by PARS for County OPEB (Other Post Employment Benefits) and pension funding, and approximately $934,000 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 1st quarter of calendar year 2020, PFM expects U.S. economic fundamentals to deteriorate significantly in the second quarter as the full effect of COVID-19 materializes. The real question is the duration of the economic shutdown and the speed and trajectory of the eventual recovery. As a result of this uncertainty, they plan to maintain neutral portfolio durations relative to their respective benchmarks into April as we monitor guidance from index vendors regarding future rebalancing.
CASH BALANCES
Attachment D (Cash Balances) depicts the cash balances of the three major operation funds of the County, and their combined balance. On June 30, 2020, this unaudited balance was $36.4 million, which increased by $8.6 million from the prior quarter due to receipt of property taxes, tribal funds, and net operating activities. |
| 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 |
|
| Fiscal Impact |
|
|
| Source of Funds for this Expenditure |
|
|
|
|
|
|
|