14 - Laserfiche WebLink

decrease of 0.02 percent from 1.24 percent from last quarter and a decrease of 0.19 percent from 1.41 percent reported at the same time last year, because of the pandemic negative impact. During fiscal year 2021/22 third quarter, staff was unable to take advantage of the rising rate because (a) cash outflow was significantly higher than cash inflow from daily operation and (b) no investment were called due to the callable investments' interest rates are lower than the current market's interest rates. With recent economic data including the largest monthly increase in the Consumer Price Index (CPI) since September 2005 of 1.2 percent and the 8.5 percent year to year CPI increase over reported for March 2022; and the yield on the benchmark 10-year Treasury is approaching 3 percent for the first time since 2018; staff will continue monitoring closely to ensure cash is first available to meet all current obligations, and then investments. SECTION 115 TRUST FUND In June 2018, the City Council approved the investment of $28 million of various reserves into a Section 115 Trust Fund to help smooth the pension liabilities which are expected to grow in the long run. The investment is made into two separate portfolios, the first one for $6.7 million into a Conservative portfolio which is available to pay the annual unfunded liabilities if necessary, and the second one for $21.3 million into a long-term capital growth portfolio. In February 2020, City Council authorized Finance staff to deposit to and withdraw from the Conservative portfolio an additional amount up to the total annual required CalPERS payment. In March and June 2020, two additional $5 million contributions were deposited to the Conservative portfolio for a total of $16.7 million deposited into the Conservative portfolio. As described in the chart below, the Conservative portfolio's balance was $18.14 million, a slight decrease over the December 31, 2021 balance of $18.66 million. The Conservative portfolio's investment return for the quarter ending March 31, 2022 was (2.75)percent.