TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Monthly Report on Investments for April and May
BRIEFING ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving the Monthly Report on Investments for the months of April and May, 2025.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The Monthly Report on Investments 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 April 30, 2025, the District had the following investments:
|
Principal Public Deposit Sweep Account (Collateralized 110%) |
$ 21.58 Million |
|
Money Market Accounts (7 small banks ‐ FDIC Insured) |
$ 1.82 Million |
|
Treasury Bills and Notes |
$ 205.52 Million Million |
|
LAIF |
$ 0.05 Million |
As of May 31, 2025, the District had the following investments:
|
Principal Public Deposit Sweep Account (Collateralized 110%) |
$ 24.51 Million |
|
Money Market Accounts (7 small banks ‐ FDIC Insured) |
$ 1.82 Million |
|
Treasury Bills and Notes |
$ 205.79 Million |
|
LAIF |
$ 0.05 Million |
In compliance with Section 15.0 of Board Policy 349, Investment Policy, the Monthly Report on investments for April, and May is forwarded to the Board of Directors for review.
The portfolio detailed in the report complies with Board Policy 349, and the District is well-positioned to meet its expenditure obligations over the next six months. Investment returns have aligned with the federal funds rate, as the District’s funds are primarily invested in Treasury bills and money market accounts. So far in 2025, the Federal Reserve has refrained from cutting interest rates. Moving forward, inflation trends, economic growth, and labor market conditions will influence future decisions by the Fed. District staff will continue to closely monitor updates from the Federal Reserve, economic indicators, and expert financial analysis to support sound 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 April 2025
2. Monthly Investment Report for May 2025
Prepared by:
Sue Lee, Director of Revenue Management
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer