TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Monthly Report on Investments for June 2023
BRIEFING ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving the Monthly Report on Investments for June 2023.
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 June 30, 2023, the District had the following investments:
|
Public Inst. Bank Deposit Account (Collateralized 110%) |
$ 27.50 Million |
|
Money Market Accounts (7 small banks - FDIC Insured) |
$ 1.77 Million |
|
Treasury Bills |
$ 152.44 Million |
|
LAIF |
$ 0.04 Million |
|
Agency Bonds |
$ 5.00 Million |
In compliance with Section 15.0 of Board Policy 349, Investment Policy, the Monthly Report on Investments for June 30, 2023, 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. Due to the changing US economic outlook, the federal reserve has been increasing the funds rate since March 2022. As a result, the District’s investment return has been improving since March 2022.
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 Report on Investments for June 2023
Prepared by:
Beverly Abad-Fitzgerald, Treasury Administrator
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer