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  Consent-General Government   # 12.       
Financial Services  
Meeting Date: 11/09/2021  
Brief Title:    Treasurer's Investment Report - September 30, 2021
From: Tom Haynes, Interim Chief Financial Officer, Department of Financial Services
Staff Contact: Sou Xiong, Treasury and Revenues Manager, Department of Financial Services, x8212

Subject
Receive and file the Yolo County Treasurer's Report on Investments for the quarter ended September 30, 2021. (No general fund impact) (Haynes)
Recommended Action
Receive and file the Yolo County Treasurer's Report on Investments for the quarter ended September 30, 2021.
Strategic Plan Goal(s)
In Support of All Goals (Internal Departments Only)
   
Reason for Recommended Action/Background
The County Treasury investment portfolio is summarized in Attachment A (Investment Summary), and includes the Treasurer's Investment Pool and the investment accounts managed by the Treasury that are not pooled together for investment returns. The pooled portfolio includes county funds, deposits from special districts, and school districts totaling $641.2 million as of September 30, 2021.
 
The portfolio consisted of 4.5% ($29.1 million) in cash at bank, 37.9% ($242.9 million) in short-term investments in government investment pools, such as the Local Agency Investment Fund (LAIF) and the California Asset Management Program (CAMP), and 57.6% ($369.2 million) in an investment pool that is actively managed by professional investment advisor PFM Asset Management, LLC (PFM). These investments consist mostly of fixed income securities as authorized by Government Code, such as: U.S. Treasuries; securities issued by federal agencies, such as Fannie Mae, Freddie Mac, and Federal Home Loan Bank; corporate notes; commercial paper; and certificates of deposit.

The details of investments in the pooled portfolio along with the investment performance are shown in Attachment B (PFM Performance Report) while the non-pooled holdings are shown in Attachment C (Non-pooled Holdings).  The non-pooled portfolio of $91.1 million consists of specific investments for various entities and programs. These include $27.9 million in government medium-term funds (LAIF and CAMP) for various districts and the 2017 Lease Revenue Bonds, $25.0 million in investments managed by PFM for various county programs (Landfill Closure, Cache Creek, etc.), $37.2 million in section 115 trusts held by PARS for County OPEB (Other Post Employment Benefits) and pension funding, and $1.0 million in cash in money market accounts.

In their quarterly investment review for the 3rd quarter of calendar year 2021, PFM continues to maintain broad diversification in the portfolio with focus on issuers and industries benefiting from the economic reopening.  Given the low level of short-term rates, funds held in CAMP not required for near-term liquidity were transferred into the longer-term portfolio during the quarter where opportunities for earnings growth are greater.  Transfer from CAMP will continue gradually through the end of the calendar year. 
 
CASH BALANCES
Attachment D (Cash Balances) depicts the cash balances of the three major operation funds of the County, and their combined balance. On September 30, 2021 this unaudited balance was $40.3 million, which decreased by $26.8 million from the prior quarter due primarily to operating activities.
Collaborations (including Board advisory groups and external partner agencies)
Other agencies having deposits in the pool include: school districts, special districts and cities. A copy of the report is posted and available on the Department of Financial Services' website. The Financial Oversight Committee reviews investment performance quarterly. All reports from the County's investment advisor PFM Asset Management LLC are available in the County Treasurer's office.
Competitive Bid Process
Not applicable.

Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   0
Amount budgeted for expenditure:    $   0
Additional expenditure authority needed:    $   0
One-time commitment     Yes
Source of Funds for this Expenditure
$0
Attachments
Att. A. Investment Summary
Att. B. PFM Investment Performance
Att. C. Non-pooled Holdings
Att. D. Cash Balances

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Form Review
Inbox Reviewed By Date
Financial Services Shelby Milliren 10/28/2021 07:47 AM
County Counsel Hope Welton 10/28/2021 08:47 AM
Joanne Vanhoosear Joanne Vanhoosear 10/28/2021 09:25 AM
Elisa Sabatini Elisa Sabatini 11/01/2021 04:42 PM
Form Started By: Sou Xiong Started On: 10/04/2021 02:10 PM
Final Approval Date: 11/01/2021

    

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