The committee reviewed the fourth quarter financial report, a procurement audit, and an update on the fireworks ordinance work plan. Public testimony was dominated by calls for divestment from companies linked to Israel's military actions in Gaza.
It is 1 30. We're going to call the meeting to order. So today, before we begin, I want to remind the public safety, finance, and strategic support committee members, a member of the public to follow our code of conduct at meetings. This include commenting on specific agenda item only and addressing the full body. Public speaker will not engage in a conversation with the chair, council member, or staff, all members of the public safety finance and strategic support committee. Staff and the public are expected to refrain from abusive language. Repeated failure to comply with the code of conduct, which will disturb, disrupt, or impede the orderly conduct of this meeting, may result in removal from the meeting. This meeting of the public safety finance and strategic support committee will now come to order. Can the clerk office please roll call? Tordillos. Here Casey. You have a quorum. Thank you very much. So I just want to welcome Councilmember Tordia's on his first uh PISBIS meeting. And hopefully he'll he'll be here with us and then contribute to our committee. So we'll go straight down to the work plans. There's nothing there, nothing on the consent calendar. We do have a report from committee, item number one, fourth quarter financial report for fiscal year 2024 and 25. Maria Oberg and KNU Sun will be uh giving us a presentation. Good afternoon, Chair, members of the committee, members of the public. I am Maria Oberg. I am the director of finance, and before you today you have our quarterly report. We will, as always, only present the investment slides because that's the only ones that are required to be presented twice a year. So let me get to those. For those of you are very fairly new to this, it's important for you to keep in mind that the city can only invest in highly rated fixed income securities. So when you look at our yield, don't confuse it with the stock portfolio. We are not investing in stocks. The investment policy is reviewed annually, was last adopted by the council in March 11th, 2025. And it is also audited semi-annually for compliance purposes. The goals of our investments is to meet the objectives of safety, liquidity, and yield. Safety means that we don't invest in anything that can lose significant value. Liquidity means we have money available to meet our obligations, and yield is to earn a market rate of return. As of June 30, 2025, our portfolio was just shy of three billion dollars at 2.98 million or billion. We earned an interest yield over the year of 3.805%. So again, we're not stocks, so don't compare it to that. Weighted average maturity is 560 days, which is about a year and a half. We invest on the short end side of the curve up to five years, and the fiscal year to date net income recognized as significant, it's close to 96 million dollars. We had no exceptions to the policy this quarter. This graph shows you a very high-level overview of the type of investments we hold. As you can see, the majority are held in U.S. agencies and U.S. treasury securities. And by fund, most of the monies naturally are the general fund, but we also invest monies for the special revenue funds, such as airport, clean energy, housing, and others. General fund balances increased by 275 million as of June 30th. That's due to the receipt of property taxes. And you will see in the next couple of slides that we have a very spiky cash flow pattern with bulk of property taxes being received in June and January, and then in the summer months is when we mainly spend money due to retirement prefunding and debt service. We have to have a statement in our policy, assuring that the projected investment maturities, cash, and revenues are sufficient to cover anticipated expenditures for the next six months, and we do. That's a rolling two-year effective yield, and also the LAFE, which is the state of California's local agency investment pool. And those are a little shorter in maturities usually than us, which means that they take advantage of increasing interest yields in the shortened much faster than we do. And consequently, when yields go down, they also take those losses quicker than we do, or not losses, but the reduction in interest rate.