TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Monthly Report on Investments for March 2023
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving the Monthly Report on Investments for March 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 March 31, 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 March 31 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.
In compliance with Section 15.0 of Board Policy 349, Investment Policy, the Monthly Report on Investments for March 31 is forwarded to the Board of Direc...
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