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TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: FINANCE DIRECTOR
DATE: AUGUST 6, 2002
SUBJECT: JUNE 2002 TREASURER’S REPORTStaff Coordinator: Kathryn Downs, Accounting Manager
Receive and file the June 2002 Treasurer's Report for the City of Rancho Palos Verdes.
Government Code Section 53646 requires the City Treasurer to submit an investment report to the City Council on at least a quarterly basis. The City has elected to submit a treasurer’s report to the Council for review each month. This report summarizes the cash activity associated with all funds of the City. A separate treasurer’s report is prepared monthly for both the Redevelopment Agency and Improvement Authority and is presented under separate cover before their respective governing bodies. The attached treasurer's report includes the cash activities of the City for the month of June 2002.
The overall cash balances of the City totaled $26,588,326 at June 30, 2002. This represents a $639,355 decrease during the month. The overall decrease is a result of various factors in several individual funds of the City. These factors are discussed in detail below for each fund experiencing a noteworthy cash event.
General Fund – Cash in the General fund decreased by more than $600,000 during June due to the following:
Employee Benefits Fund – The cash balance in the Employee Benefits fund decreased by more than $54,000 primarily due to prepayment of the FY 2002-2003 workers compensation insurance premium in the amount of $46,079.
In light of the State’s FY 2002-2003 budget impasse, Staff temporarily moved $2,000,000 from the Local Agency Investment Fund (“LAIF”) account to the Bank of America savings account in June. This step was taken to ensure the City has adequate liquidity in the event the State places a temporary hold on LAIF transactions. The Bank of America savings account earns interest of 1%. The LAIF account currently earns 2.687%. The current two-year U.S. Treasury yield is 2.35%. Upon the adoption of a FY 2002-2003 State budget, staff will transfer the $2,000,000 back into the LAIF account.