Title
INVESTMENT REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2013
Recommended Action
RECOMMENDED ACTION: Council accept the report.
Body
SUMMARY
Transmitted herewith is the City’s investment report for the quarter ended September 30, 2013. A separate information memo was distributed to the City Council in October to meet the reporting requirements set forth in the California Government Code Sections 53600 et seq. and the City of Chula Vista Investment Policy.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 (b)(4) of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not Applicable
DISCUSSION
The total cash and investment portfolio held by the City as of September 30, 2013 was $209,747,129. This is a decrease of approximately $18M from June 30, 2013. This is primarily due to the fact that only a small portion of the City’s major revenues such as property or sales tax are received during this quarter compared to the other quarters. For the quarter ended September 30, 2013, the earned interest yield was 0.66%, a slight increase from the 0.62% reported for the quarter ended June 30, 2013. The weighted average maturity as of September 30, 2013 remained the same from the previous quarter’s 2.18 years which is within the Council Policy of less than 3.0 years. The weighted average maturity remains sufficiently liquid to enable the City to meet all operating requirements that might be reasonably anticipated.
DECISION-MAKER CONFLICT
Staff has determined that the action contemplated by this item is ministerial in nature and does not require the City Council members to make or participate in making a governmental decision, pursuant to California Code of Regulations section 18702.4(a). Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, nor has staff been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The investment portfolio supports the Operational Excellence goal as it seeks to maintain the safety and liquidity of the City’s cash while contributing investment earnings to the bottom line.
CURRENT YEAR FISCAL IMPACT
Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six months. There is no direct fiscal impact by this action.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact by this action.