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Report ID: 22-354   
Type: Consent
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 6/22/2022 Final action: 6/22/2022
Recommended Action: Consider receiving the Monthly Report on Investments for March 2022.
Attachments: 1. STAFF REPORT, 2. Att.1. Monthly Report on Investments for March 2022, 3. Master Minute Order

TO:                     AC Transit Board of Directors                                          

FROM:                                             Michael A. Hursh, General Manager

SUBJECT:                     Monthly Report on Investments for March 2022                     

 

BRIEFING ITEM


RECOMMENDED ACTION(S):

 

Title

Consider receiving the Monthly Report on Investments for March 2022.

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 March, 2022, the District had the following investments:

 

Public Inst. Bank Deposit Account (Collateralized 110%)

$31.74 Million

Money Market Accounts (7 small banks - FDIC Insured)

$1.73 Million

Treasury Bills

$47.69 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 February 2022 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.  The Federal Reserve just started raising rates in this month, March 2022, which may impact investment return in near future.

 

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 March 2022

 

Prepared by:

Beverly Abad-Fitzgerald, Treasury Administrator

 

Approved/Reviewed by:

Chris Andrichak, Chief Financial Officer

Sue Lee, Director of Revenue Management