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Page 1 of 5 Item #8 CITY COUNCIL AGENDA REPORT February 20, 2024 Finance TITLE: ACCEPT THE MONTHLY DISBURSEMENTS AND INVESTMENT REPORT FOR DECEMBER 2023 SUMMARY Attached is the City of Pleasanton monthly disbursements and investment report for December 2023. RECOMMENDATION Accept claim disbursements in the amount of $19,311,621 and the investment report for the month of December 2023. BACKGROUND The City's Investment Policy requires the Director of Finance to submit a monthly transaction report to the City Council within 60 days of the end of the reporting period in accordance with California Government Code Section 53607. The Investment Policy also requires the Director of Finance to submit a quarterly report to the City Council on the status of the City's investment portfolio no later than 45 days after the end of each month. This report shall include the types of investments, the amount of money invested with various institutions, purchase and maturity dates, and yield on investments. The Director of Finance certifies that the investment portfolio is in compliance with the investment policy and that it will meet cash flow needs for the next six months. This report also includes check and electronic payment information for December 2023. DISCUSSION The book value of the City's primary investment portfolio increased by $32.0 million from $218.5 million to $250.5 million during the last quarter ending December 31, 2023. This increase was primarily due to a large property tax payment from the county and sales tax payments from the state. The fiscal year-to-date effective rate of return on the portfolio was 1.49 percent. The average days to maturity (ADM) decreased from 761 days on September 30, 2023, to 594 days on December 31, 2023. The City's investment in the Local Agency Investment Fund (LAIF) increased to $59.0 million from $27.0 million last quarter ending December 31, 2023. The quarterly LAIF apportionment interest rate was 4.00 percent with ADM of 230 days. The average monthly effective yield was 3.93 percent in December, 3.84 percent in November, and 3.67 percent in October. During the quarter, no security was matured. As of December 31, 2023, approximately 63.3 percent of the total portfolio consisted of federal agency securities, while the LAIF investment was 24.8 percent of the portfolio. Corporate notes accounted for 11.3 percent of the portfolio. As of December 31, 2023, the effective rate of return on the portfolio was 1.49 percent, a Page 157 of 228