CC 03-19-2024 Oral Communications_Late CommunicationsFrom:Kitty Moore
To:City Clerk; Kirsten Squarcia
Cc:Kitty Moore
Subject:Slides from Oral Comms March 19, 2024
Date:Friday, March 22, 2024 2:53:42 PM
Attachments:CCMoore Oral Comms March 19, 2024.pdf
Dear City Clerk,
Attached please find the slides I presented at the City Council meeting as a member of the public on
an Informational Item March 19, 2024 for Oral Communications records.
Thank you,
Kitty Moore
Representing myself only
Kitty Moore
Councilmember
City Council
KMoore@cupertino.gov
(408) 777-1389
Why is Councilmember Moore pulling a speaker
card on an Informational Item?
I am speaking for myself only
•INFORMATIONAL ITEMS
•Information items are intended to provide
background information and routine reports to
Councilmembers and the public, without
discussion by Council. Members of the public
wishing to comment on informational items
should do so during oral communications.
Fiduciary Duty
As of January 2024 the operating
checking account had grown to
$48 Million without bearing any interest
I would prefer to be speaking about this
as a Councilmember
What Does Our Investment Policy State?
SAFEKEEPING OF SECURITIES
To protect against fraud or embezzlement or losses caused by collapse of an individual
securities dealer, all securities owned by the City shall be held in safekeeping by a third party
custodian acting as agent for the City under the terms of a custody agreement. All trades
executed by a dealer will settle delivery versus payment (DVP) through the City’s safekeeping
agent. In order to verify investment holdings, an external auditor, on an annual basis, shall
independently verify securities held in custody for the City. Additionally, the City Treasurer
shall include a listing of holdings provided by the City’s custodian to the quarterly investment
report as verification between annual reviews by the external auditor. The only exceptions to the
foregoing shall be depository accounts and securities purchases made with: (i) local government
investment pools;(ii)time certificates of deposit,and,(iii)money mutual funds,since the
purchased securities are not deliverable. All other exceptions to this safekeeping policy must be
approved by the City Treasurer in written form and included in the quarterly report to City
Council.
Time Value of Money
•“The time value of money is a financial
principle that states the value of a dollar
today is worth more than the value of a
dollar in the future. This philosophy holds
true because money today can be invested
and potentially grow into a larger amount in
the future.”
What if $30M had been invested over the past
year?
•The 100% US Treasury Money Market yield is 4.94%
•Monte Sereno City Council was presented yields over 5% last July
•How much would $30M invested at 5% have earned over the past year
if in a Money Market or CD?
$30,000,000 x 0.05 = $1,500,000
More than ten times the cost of 4th of
July fireworks we canceled
•The Monthly Treasurer Investment Report and Monthly Treasurer
report of receipts, disbursements, and fund balances have not
been showing the actual account balances and basic information
about what the accounts are (non-interest-bearing checking)
•The Investment Policy does not address non-interest-bearing
accounts
•The Audit Committee no longer meets monthly, last meeting was
October 23, 2023. Duties reduced.
•The City’s important financial documents are now Informational
Items which means Council cannot discuss them
How to remedy?
•Please support agendizing this issue now
•Have Council review the City Financial Policy and Best Practices
•Address the reporting to Council format and contents – if we do
not have information, we cannot comment on it.
•Consider forming a subcommittee to work with staff prior to
coming to council regarding reporting format and contents.
•Time is of the essence. Interest rates are good!