TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Monthly Report on Investments for October 2021
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the Monthly Report on Investments for October 2021.
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 October 31, 2021, the District had the following investments:
|
Public Inst. Bank Deposit Account (Collateralized 110%) |
$26.62 Million |
|
Money Market Accounts (7 small banks - FDIC Insured) |
$1.73 Million |
|
Treasury Bills |
$47.99 Million |
|
LAIF |
$10.00 Million |
|
Agency Bonds |
$5.00 Million |
In compliance with Section 15.0 of Board Policy 349, Investment Policy, the Monthly Report on Investments for October 2021 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. Since March of 2020, as part of the federal government’s relief measures against the economic impact of the COVID-19, the federal reserve lowered the federal funds rate to near zero and has maintained it near zero. As a result, return on the District’s investments in the near term is expected to remain low.
ADVANTAGES/DISADVANTAGES:
This report does not recommend a course of action with notable advantages or disadvantages.
ALTERNATIVES ANALYSIS:
This report is being provided to inform the Board of activities of the Treasury Department.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 349, Investment Policy
ATTACHMENTS:
1. Monthly Report on Investments for October 2021
Prepared by:
Beverly Abad-Fitzgerald, Treasury Administrator
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer
Sue Lee, Director of Revenue Management