TO:
Honorable Mayor and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Bruce Moe, Finance Director
SUBJECT:Title
Financial Reports:
a) Ratification of Demands: February 12, 2013.
RATIFY
b) Payroll Register: February 14, 2013.
RATIFY
c) Investment Portfolio for the Month Ending January 31, 2013.
RECEIVE AND FILE
d) Financial Reports for the Month Ending January 31, 2013.
RECEIVE AND FILE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council ratify the attached schedules of demands, and receive and file these reports.
Body
FISCAL IMPLICATIONS:
The financial reports included herein are designed to communicate fiscal activity based upon adopted and approved budget appropriations. No further action of a fiscal nature is requested as part of this report.
The value of the warrant register for the February 12, 2013, check run is $1,694,967.69. The value of the payroll register, including payroll related disbursements, for the February 14, 2013, check run is $1,271,052.76.
BACKGROUND:
Finance staff prepares a variety of financial reports for City Council and Finance Subcommittee. A brief discussion of the enclosed reports follows.
DISCUSSION:
Ratification of Demands:
Every two weeks staff prepares a comprehensive listing of all disbursements (warrant and payroll registers) with staff certification that the expenditure transactions listed have been reviewed and are within budgeted appropriations. Staff recommends that the City Council ratify the attached schedules of demands.
Investment Portfolio:
Detailed investment reports are provided to the Finance Subcommittee with summary reporting to City Council. The month end portfolio includes a certification by the Finance Director that all investments comply with established Financial Policies (or with Finance Subcommittee approved exceptions) and provide sufficient liquidity to support projected expenditures.
The January 2013 month-end report indicates that the LAIF balance ($33,600,000) exceeds the City's policy that LAIF shall not exceed 50% of the total portfolio ($66,039,556). The LAIF balance exceeds policy by $580,222 or .88%. Last year, the Finance Subcommittee approved a temporary policy waiver until December 31, 2012, to the 50% limitation due to continuing interest rate yields which favored LAIF (which is liquid) over longer term investments that had similar or lower yields. This allows the City to maintain liquidity in anticipation of eventual return of higher interest rates. While the temporary authority to exceed the 50% limitation has expired, staff will revisit the issue with the Finance Subcommittee at their next meeting in March 2013, and recommend continuation of the waiver to the policy. This will allow the City Treasurer and staff the flexibility to make investments as appropriate.
Financial Reports:
This package includes summary level financial reports for the month ending January 31, 2013. These reports mark the seventh month of Fiscal Year 2012-2013 and reflect the annual budget adopted by City Council.
These reports provide monthly and year-to-date activity for all funds and departments presenting a snapshot of budget performance. A report highlighting the performance of key revenue sources is also included.
CONCLUSION:
Staff recommends that the City Council ratify the attached schedules of demands, and receive and file these reports.
Attachments:
1. Warrant Register for February 12, 2013
2. Payroll Register for February 14, 2013
3. Investment Portfolio for the Month Ending January 31, 2013
4. Financial Reports for the Month Ending January 31, 2013