AGENDA TITLE:
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Accept the Quarterly Investment Report as Required by the City of Lodi Investment Policy (FIN)
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MEETING DATE:
August 21, 2024
PREPARED BY:
Lisa Noffsinger, Budget Manager
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RECOMMENDED ACTION:
Accept the quarterly investment report as required by the City of Lodi Investment Policy.
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BACKGROUND INFORMATION:
Government Code Section 53646 prescribes suggested investment reporting requirements for California public agencies. The City Council adopted Resolution 2023-125 on June 7, 2023 approving FY 23/24 Investment Policy. The attached Treasurer's Report for the quarter, ending June 30, 2024, complies with the State's reporting recommendations and the City of Lodi's Investment Policy and Internal Control Guideline.
The City's current investments meet the primary objectives outlined in the City of Lodi Investment Policy as follows. In priority order, those objectives and brief analysis are:
1.) Safety. Of the total portfolio, 44.1% is invested in cash or cash equivalents. These investments have minimal principal risk. Remaining investments are purchased meeting minimum credit quality requirements outlined in the policy to provide for high probability of capital preservation in the portfolio.
2.) Liquidity. The portfolio allows for sufficient liquidity to meet projected cash flow needs to comply with City reserve policies, and effectively manage City operations. The 44.1% of investments held in cash or equivalents can be quickly converted to cash if necessary.
3.) Yield. The City will attempt to obtain the most reasonable yield possible when selecting an investment provided that the safety and liquidity objectives are met. For Fiscal Year 2023/24, the City earned $6,693,267 in interest on the portfolio. Note this does not include unrealized gains and losses from changes in investment market value.
To further limit market value erosion, it is the intent that all investments be purchased with the inte...
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