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6.1.C. - Page 1 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />September 24, 2018 <br />SUBJECT <br />Quarterly Investment Report for Period Ending June 30, 2018 <br />RECOMMENDATION <br />By motion, approve the City's Quarterly Investment Report for Period Ending June 30, <br />2018 <br />BACKGROUND <br />The City has an investment portfolio that consists of reserves and fund balances held by <br />the City for general operations, capital projects, utilities, and various other special <br />purpose funds. <br />In June 2016, the City Council adopted a new investment policy that requires staff to <br />provide a quarterly Investment Report to Council at a public meeting. Additionally, the <br />City hired an investment manager, PFM Asset Management LLC (PFM), to manage the <br />City's funds pursuant to the newly adopted policy. The City's primary investment <br />objectives continue to be safety, liquidity, and return on investment (yield), in that order. <br />The attached report represents all areas in which City invests funds, excluding trust <br />funds and bond proceeds held with a trustee. <br />ANALYSIS <br />The attached investment report indicates that as of June 30, 2018, funds (excluding <br />cash with fiscal agents) from all sources were producing an annual earnings rate of <br />1.65%. The market value of the portfolio as of June 30 was $245,206,690. This includes <br />the funds held in the San Mateo County Treasurer's investment pool and with the State <br />Treasurer's investment pool. All of these investments comply with the City's investment <br />policy as of June 30, 2018. The City has sufficient liquid resources available to meet <br />expenditure requirements for the next six months. <br />The portion of the City's portfolio that is managed by PFM has a total market value at <br />quarter end of $139,771,877. As of June 30, the portfolio was earning an annual yield at <br />