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6.1 B - Attachment No. 4
<br /> Cash Management
<br /> The City treasurer invests temporarily idle funds in accordance with the state government code and the investment
<br /> policy adopted by the City Council. During the year, funds were invested in certificates of deposits of banks, U.S.
<br /> agency securities, corporate debt securities, U.S. government securities, the Local Agency Investment Fund of the
<br /> State of California, and the County of San Mateo investment pool. Total investment earnings during the fiscal year
<br /> amounted to$5,584,581. The primary difference between this figure and the entity-wide investment earnings is the
<br /> reclassification of certain investment earnings to their respective program revenues. At the end of FY 2008/09,the
<br /> total investments,including cash with fiscal agents,cash at banks,and petty cash, stood at$180,759,606.
<br /> Redwood City's investment objectives are to maintain liquidity and to minimize credit and market risks while
<br /> maintaining a market yield on its portfolio.
<br /> Risk Management and Self-Insurance Fund
<br /> In July 1990,the City joined the Bay Cities Joint Powers Insurance Authority to meet its general liability insurance
<br /> needs. Bay Cities is a general liability insurance pool consisting of 18 San Francisco Bay Area public agencies.
<br /> The pool provides, through self-insurance, $1,000,000 of coverage in excess of the City's $350,000 self-insurance
<br /> retention. Claims administration and loss control support to member agencies are also provided by the insurance
<br /> pool. Bay Cities belongs to the California Affiliated Risk Management Authority (CARMA) which is an excess
<br /> liability pool comprised of Bay Area cities and five other local government insurance pools. CARMA provides
<br /> coverage from $1,000,001 to $29,000,000. The layer from $1,000,001 to $3,000,000 is self-insured by CARMA,
<br /> while the layer from$3,000,001 to$29,000,000 is insured by commercial insurers.
<br /> Appropriation Limit
<br /> Article XIIIB of the California State Constitution,which became effective in FY 1979/80, and which was modified
<br /> (by Proposition 111) in November 1989, establishes, by formula, an appropriation limit for governmental agencies.
<br /> Using the appropriations of FY 1978/79 as the base year, the limit is modified by the change in the composite
<br /> consumer price index, population, and the value of commercial property development within the City limits during
<br /> each fiscal year. Article XIIIB also sets the guidelines as to what is to be included in the appropriation limits.
<br /> The appropriation limit for Redwood City for the FY 2008/09 is at $306,426,663 while the actual appropriations
<br /> subject to the limit amounted to $60,486,432. The following graph indicates the trend in appropriations subject to
<br /> limitation:
<br /> Appropriation Limit
<br /> All Funds Subject to Appropriation
<br /> r`____._.___�...�.�a.�__a__._.__._._�..._�...._..�_.__..__....___.....__..a_._____�e.__a__..._
<br /> 350,000,000
<br /> 300,000,000 � ........ . .r...., _. ,.. .. . _
<br /> 250,000,000
<br /> 200,000,000 - t--
<br /> 150,000,000 ,k..�-n--.V.
<br /> 100,000,000
<br /> � _
<br /> 50,000,000 �; �*�� �
<br /> �,�_
<br /> : }�__ � �:_ f�
<br /> �_�.� �.�.� �
<br /> FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09
<br /> Excluding Generallmprovement and Proprietary Funds ■Limit = Sub.to Limit
<br /> OTHER INFORMATION
<br /> Annual Independent Audit
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