A report on the city’s investment activity and interest revenue will be heard at today’s meeting of the Santa Barbara City Council.
The report was prepared by Finance and Treasury Manager Jennifer Tomaszewski.
According to the report, the city in July purchased or deposited $6 million, $4 million from the State Local Agency Investment Fund and $2 million from the government-sponsored home loan mortgage corporation Freddie Mac.
On the other end of the balance sheet, the city recorded $28 million in sales or withdrawals in July, including two Local Agency Investment Fund transactions worth $24 million and a $2 million Freddie Mac transaction.
The city earned $432,266 in interest on investments in July and another $4,844 in amortization, or when the value of an asset is accounted for as income over the period of its useful life.
The city ended July with $187,563,897 in total cash and investments. More than 55 percent of that portfolio is made up of federal agency bonds and securities with a total value of $104,001,136. Those assets will reach maturity in 780 days with 2.029 percent yield every 365 days.
Local Agency Investment Fund assets make up another $41 million of the city’s portfolio, followed by $15,090,093 in a Mitsubishi UFJ Financial Group Union Bank checking account.
The city also holds a $3,856,213 promissory note from Santa Barbara Municipal Airport.
Every year, the city adopts a Statement of Investment Policy that defines the types of investments that are authorized. City investments are also regulated by California Government Code.
The city’s investment policy is revised every year. While the proposed investment policy does not include any statutory or administrative changes since it was last updated in September 2018, city staff says it contains “sufficiently broad language,” to allow for changes on an administrative basis.
City staff also recommended the council adopt a resolution that would create an economic development manager position in the City Administrator’s Office.
The manager will “work with businesses, developers, commercial brokers and internal and external agencies to achieve the objectives of the City through a comprehensive and focused commitment to business retention, expansion and attraction,” reads an agenda report on the position.
The salary will range from $147,457.70 to $179,235.94 annually.
The council will meet at 2 p.m. today in council chambers at City Hall, 735 Anacapa St.
