CC 01-17-2024 Item No's. 15-18 Treasurer's Reports_Supplemental Report1
CITY COUNCIL STAFF REPORT
DESK ITEM
Meeting: January 17, 2024
Agenda Items #15‐18
Subject
Receive the Monthly Treasurerʹs Investment Report for November 2023
Receive the Monthly Treasurerʹs Report for November 2023
Receive the Monthly Treasurerʹs Investment Report for December 2023
Receive the Monthly Treasurerʹs Report for December 2023
Recommended Action
Receive the Monthly Treasurerʹs Investment Report for November 2023
Receive the Monthly Treasurerʹs Report for November 2023
Receive the Monthly Treasurerʹs Investment Report for December 2023
Receive the Monthly Treasurerʹs Report for December 2023
Background:
Staff’s responses to questions received from councilmember are shown in italics.
Q1: The city has stopped paying Apple (BAZ INDUSTRIES) its 35% sales tax portion
from the start of the 2023 sales tax period. This amount adds up to MILLIONS of dollars
by now. Months ago, when this payment to Apple (BAZ) was stopped, staff said that
they were setting aside Apple’s share (35%) in a fund. Where is this Apple money being
stored i.e. what fund is it being kept in? (Councilmember Chao and Mayor Mohan)
Staff response:
Funds yet to be remitted to Apple are currently accounted for in a liability account within the
General Fund.
Q2: Why is this not showing up on the Monthly Treasurer’s Reports? (Councilmember
Chao and Mayor Mohan)
Staff response:
The liability is recorded as an accounting transaction, which would not be reflected in the Monthly
Treasurer’s Report.
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Q3: Council had been receiving what had been a complete list of investments as you can
see from the June 27, 2022 Audit Committee report, however at the start of 2023 Council
removed the Audit Committee’s authority to review the Monthly Investment reports and
instead they go directly to Council and are put under Informational Items, and what has
been provided was abbreviated and no longer following the requirements.
To make prudent financial decisions, the Council needs to be informed of our
financial condition, please provide the fund balances and transactions for all of the
accounts per Ca Gov Code 53607 and CMC 2.24.050.
See the change below:
2022 provided documents included balances for ALL
accounts:
2022 provided documents to Council only include ONE
account, see 15 and 17 below:
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As stated above, in order to make prudent financial decisions, the Council needs to be
informed of our financial condition, please provide the fund balances and transactions for
all of the accounts per Ca Gov Code 53607 and CMC 2.24.050.
“On May 19, 2022, the City Council approved the City Investment Policy. Per the
City’s Investment Policy, the Treasurer shall submit monthly transaction reports to
the City Council within 30 days of the end of the reporting period per California
Government Code Section 53607. In addition to the monthly transaction reports,
quarterly investment reports are submitted to the City Council approximately 45
days following the end of the quarter. The quarterly investment report offers a more
extensive discussion of the City’s economy, cash flow, and investments. The City’s
Municipal Code Section 2.24.050 Investment Authority states that the Treasurer shall
make a monthly report of all investment transactions to the City Council.” (see
attached June 27, 2022 Staff Report).
Additionally, here is the Cupertino Municipal Code requirement for the monthly reports:
2.24.050 Investment Authority.
Pursuant to authority granted by state statutes, there is hereby delegated to
the Treasurer the authority to invest or to reinvest funds of the City, or to sell
or exchange securities so purchased, and who shall thereafter assume full
responsibility for such transactions until such time as the delegation of
authority is revoked. The Treasurer shall make a monthly report of all such
transactions to the members of the City Council, the City Manager and also
make it available for review by such other persons who may so request.
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(Councilmember Moore)
Staff response: The City is in compliance with both GC 53607 and CMC 2.24.050. Fund balances for
all funds are included monthly with the Monthly Treasurer’s Reports (see items 16 and 18 of the
January 17, 2024, City Council Meeting Agenda). Transaction reports are included in the Treasurer’s
Monthly Investment Report (see items 15 and 17 of the January 17, 2024, City Council Meeting
Agenda).
Attachments Provided with Original Staff Report:
A – Chandler Investment Report November 2023
A – Report of City‐wide Receipts, Disbursements, and Cash Balances November 2023
B – Report of City‐wide Fund Balances/Net Position November 2023
A – Chandler Investment Report December 2023
A – Report of City‐wide Receipts, Disbursements, and Cash Balances December 2023
B – Report of City‐wide Fund Balances/Net Position December 2023