TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Monthly Report on Investments for February, March, and April
BRIEFING ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving the Monthly Report on Investments for the months of February, March and April.
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 February 28, 2026, the District had the following investments ($ millions):
|
Money Market (General Fund - Principal) |
$40.976 |
|
Money Market (General Fund - Small banks) |
$1.832 |
|
Money Market (Other - Principal) |
$13.763 |
|
Treasury Bills and Notes |
$140.157 |
|
Local Agency Investment Fund (LAIF) |
$15.346 |
As of March 31, 2026, the District had the following investments ($ millions):
|
Money Market (General Fund - Principal) |
$8.633 |
|
Money Market (General Fund - Small banks) |
$1.833 |
|
Money Market (Other - Principal) |
$13.782 |
|
Treasury Bills and Notes |
$173.031 |
|
LAIF |
$15.394 |
As of April 30, 2026, the District had the following investments ($ millions):
|
Money Market (General Fund - Principal) |
$9.016 |
|
Money Market (General Fund - Small banks) |
$1.833 |
|
Money Market (Other - Principal) |
$13.803 |
|
Treasury Bills and Notes |
$175.158 |
|
LAIF |
$15.443 |
In compliance with Section 15.0 of Board Policy 349, Investment Policy, the Monthly Report on Investments for February, March, and April 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. Treasury yields remained stable, with 6-month T-bill trading in a range consistent with expectations for a “higher for longer” rate environment. These conditions continue to favor short-term Treasury bills. The District maintained a conservative duration posture, allowing flexibility to reinvest as rates evolve.
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 February
2. Monthly Investment Report for March
3. Monthly Investment Report for April
Prepared by:
Sue Lee, Director of Revenue Management
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer