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Report ID: 24-585   
Type: Consent
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 12/11/2024 Final action:
Recommended Action: Consider receiving the Monthly Report on Investments for September and October 2024. Staff Contact: Chris Andrichak, Chief Financial Officer
Attachments: 1. STAFF REPORT, 2. Att 1 Monthly Investment Report - September 2024, 3. Att 2 Monthly Investment Report - October 2024
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TO:                     AC Transit Board of Directors                                          

FROM:                                             Michael A. Hursh, General Manager/Chief Executive Officer

SUBJECT:                     Monthly Report on Investments for September and October 2024                     

 

BRIEFING ITEM

AGENDA PLANNING REQUEST:  


RECOMMENDED ACTION(S):

 

Title

Consider receiving the Monthly Report on Investments for September and October 2024.

 

Staff Contact:

Chris Andrichak, Chief Financial Officer

Body                                          

STRATEGIC IMPORTANCE:

 

Goal - Financial Stability and Resiliency

Initiative - Financial Efficiency and Revenue Maximization

 

This Monthly Investment Report is provided to the Board of Directors to demonstrate 1) the District’s compliance with Investment Policy Guidelines and 2) the District’s ability to meet its liquidity needs in the near term.

 

BUDGETARY/FISCAL IMPACT:

 

There are no budgetary or fiscal impacts associated with this report.

 

BACKGROUND/RATIONALE:

 

As of September 30, 2024, the District had the following investments:

 

Principal Public Deposit Sweep Account (Collateralized 110%)

$ 30.93 Million

Money Market Accounts (7 small banks ‐ FDIC Insured)

$    1.81 Million

Treasury Bills

$159.77 Million

LAIF

$    0.04 Million

 

As of October 31, 2024, the District had the following investments:

 

Principal Public Deposit Sweep Account (Collateralized 110%)

$ 31.72 Million

Money Market Accounts (7 small banks ‐ FDIC Insured)

$    1.81 Million

Treasury Bills

$160.42 Million

LAIF

$    0.04 Million

 

In compliance with Section 15.0 of Board Policy 349, Investment Policy, the Monthly Report on investments for September and October 2024 is forwarded to the Board of Directors for review.

The portfolio contained in the report is in compliance with Board Policy 349, and the District is able to meet its expenditure requirements for the next six months.  Return on the District’s investments has been in line with the federal funds rate, as the funds are invested mainly in Treasury bills and Money market funds. The federal reserve started cutting interest rates in September by 0.5 percentage points.  In October, the Federal Reserve cut interest rates by another 0.25 percentage points.  In the coming months, the Federal Reserve may further lower the interest rates, but it will depend on a variety of factors including economic data, inflation trends, employment figures, and global economic conditions. Staff continues to monitor updates from the Federal Reserve, economic reports, and analysis from financial experts in order to make good investment decisions.

 

ADVANTAGES/DISADVANTAGES:

 

This report does not recommend a course of action with notable advantages or disadvantages.

 

ALTERNATIVES ANALYSIS:

 

This report is required under state law.

 

PRIOR RELEVANT BOARD ACTION/POLICIES:

 

Board Policy, 349, Investment Policy

 

ATTACHMENTS:

 

1.                     Monthly Investment Report for September 2024

2.   Monthly Investment Report for October 2024

 

Prepared by:

Sue Lee, Director of Revenue Management

 

Approved/Reviewed by:

Chris Andrichak, Chief Financial Officer