TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY

DATE: JULY 5, 2006

SUBJECT: MAY 2006 TREASURER’S REPORT

Staff Coordinator: Jane Lin, Accountant

RECOMMENDATION:

Receive and file the May 2006 Treasurer's Report for the City of Rancho Palos Verdes.

BACKGROUND:

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 May 2006.

ANALYSIS:

The overall cash balances of the City totaled $37,478,410 at May 31, 2006. This represents a $1,868,570 increase during the month. The overall increase 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 – The cash balance in this fund increased by more than $1,693,000 during the month. The increase was primarily the result of receipt of the May property tax revenue and the third quarter franchise fees from Waste Management. The May revenue was offset by normal operating expenditures.

Habitat Restoration Fund – The cash balance in this fund decreased by $25,000 during the month due to a disbursement to Palos Verdes Peninsula Land Conservancy for the Portuguese Bend nature preserve management fee.

CIP Fund – The cash balance in this fund decreased by more than $46,000 during the month primarily due to the disbursements to Hardy & Harper for the storm drain improvement project.

Employee Benefits Fund – The cash balance in this fund decreased by more than $52,000 during the month due to the monthly transfer was not processed. A monthly transfer from the General Fund to the Employee benefits fund is made for the cost of employee benefits for each respective department.

Respectfully submitted,

Dennis McLean
Director of Finance and Information Technology

Reviewed:

Les Evans
City Manager