[{"_1":2,"_97":-5,"_98":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,73,85],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":44,"_46":47,"_48":49,"_50":51,"_52":53,"_54":55,"_56":57,"_58":59,"_60":61,"_62":63,"_64":65,"_66":67,"_68":69,"_70":67,"_71":55,"_72":55},"mediaId",6641292,"mediaKeyId","2545665-64c11d033a0b73d4211c92f4fd23c4b1","parentId",2545665,"title","Finance Committee Keeps Current Model for Allocating Investment Interest to Operating Funds","audioSeconds",0,"startMs",3960000,"endMs","viewUrl","/Search/View?dp=1&key=2545665-64c11d033a0b73d4211c92f4fd23c4b1&start=3960&end=3960","thumbnailUrl","https://assets.pipeline.soar.com/2545665-64c11d033a0b73d4211c92f4fd23c4b1/thumbnail_3960000.jpg","articleUrl","/articles/6641292/Tracy/San-Joaquin-County/California/Finance-Committee-Keeps-Current-Model-for-Allocating-Investment-Interest-to-Operating-Funds","mediaUrl","https://secure.pipeline.soar.com/6641292-87e166acb3a4c1a1c5221be26c624658/orig.mp4?Expires=1776424443&Signature=dO46AZNhNFhUR0-6uzO~Tz0xXi9BLC7L4-gOqaJQ0d~croiqR3aeRpHBRTYyv6iv1HJIU0xwCI6b9OLKegKTN-kp5zAJ0eaMzlOo71VmIPCLM7a3Zb9dTpkc5V3nRbVl6eO5DxTGniBxuuHgG-5yrxkyFXbiwwVpNMu5WsCmy8cW5v33TpWwGWBUJBbtJ5DrZUPLFJO0pr7yjVO0eDSFYWJ-dvchHh-bl6hb8ipQoHW8fOE2DpcRffBzkrJH5NVTresnQc0d-dszEmDovBS8vRcQ7VDFSxP86RnHOf00oEjRTZ0~sYhH~2DUwEk1vP78irMaMupJNH47YXsM0R4Mzw__&Key-Pair-Id=KUT5TJCACFTXG","author","","date","2025-03-11T13:28:01Z","article","The Tracy finance committee on Oct. 22 heard an informational presentation on how interest earned on city cash and investments is allocated and voted to maintain the city’s current allocation model, which assigns interest to operating funds rather than directly to capital funds.

Finance staff told the committee the allocation approach follows accounting and industry practices, including Governmental Accounting Standards Board (GASB) requirements to report investments at fair market value. Staff emphasized the rationale: allocating interest to capital funds exposes capital projects to investment‑value volatility and could show negative revenue in a capital project if the market value fell.

The presentation explained that operating funds — principally the general fund — absorb market risk so that interest earnings (or losses) are reported consistently and capital projects receive transferred cash when their budgets and cash needs are established. Staff also noted their external auditor recommended maintaining a consistent allocation method rather than changing approaches in response to short‑term market movement.

A member of the public asked whether special funds (Measure B) receive interest income attributable to their balances. Staff and the treasurer explained that all city money is invested as a pooled portfolio and that a capital account that will be drawn down (for example, a large Measure B allocation that will fund an aquatic center) must be managed with liquidity in mind; allocating interest directly to capital funds can increase risk to projects if the portfolio must be liquidated to pay contractors.

After public comment and committee discussion, a member moved to accept the informational report and staff’s recommendation to maintain the current allocation model. The motion passed on a roll call.","mediaType","Video","parentTitle","March 10, 2025 - City of Tracy Finance Committee Meeting","oneSentenceSummary","Staff explained the city’s method of allocating interest earnings to operating funds (not capital), citing GASB reporting and liquidity risk; committee voted to accept staff’s recommendation to maintain the current allocation model.","taxTitle","Tracy, San Joaquin County, California","taxId",3940,"location","headline","shortSummary",{"_33":74,"_35":36,"_37":38,"_39":75,"_41":76,"_43":77,"_45":78,"_46":79,"_48":80,"_50":81,"_52":82,"_54":55,"_56":57,"_58":83,"_60":61,"_62":63,"_64":84,"_66":67,"_68":69,"_70":67,"_71":55,"_72":55},6641295,"Tracy Finance Committee Reviews Five‑Year Forecast; Staff Recommends $17.5M in One‑Time Fiscal Sustainability Payments",2154,1904000,4058000,"/Search/View?dp=1&key=2545665-64c11d033a0b73d4211c92f4fd23c4b1&start=1904&end=4058","https://assets.pipeline.soar.com/2545665-64c11d033a0b73d4211c92f4fd23c4b1/thumbnail_1904000.jpg","/articles/6641295/Tracy/San-Joaquin-County/California/Tracy-Finance-Committee-Reviews-FiveYear-Forecast-Staff-Recommends-175M-in-OneTime-Fiscal-Sustainability-Payments","https://secure.pipeline.soar.com/6641295-5aa72db919170a45933ce7567ed3544e/orig.mp4?Expires=1776424443&Signature=RgAmZd3BNrsEH0SbSHNTqoyrIEPSqm7HlEpTvWLEQn7eABvG5jujJAIZjmoXZjC1DiVT-xH~Az9wdoI1PmHMsL1Om0bttS1sQn2oAQVTLhhNEcQqZpiPyXkU2~jSItWzu~amBHo-yLpy0v1rlrHHS6t-IN-zjFPa6tHnK-G06WSJ09F0FDsJt7wCApDFvxNtbDf-Zsoib5JRJ4Iyp5fUhZ~m2GWcB1p1Yb0Fu4dq4PDN7F2Z-D-mjRqm~z5haemWflp4l44t8sDF~tLoh3-~xrVqJPfwDe97hJRKM8YRhtyn2Iho4camVV9p4LZ2k49HGUIN9XtGCibMw-TSHGLPRw__&Key-Pair-Id=KUT5TJCACFTXG","The Tracy finance committee on Oct. 22 reviewed a five‑year forecast for the general fund and heard staff recommend about $17.5 million in one‑time fiscal sustainability actions for FY25‑26, including prefunding CalPERS liabilities, prefunding retiree medical, and funding deferred maintenance for streets and parks.

Finance Director Sarah Castro told the committee the forecast covers fiscal years 2025 through 2030 and incorporates recent strategic priorities, local economic indicators and assumptions about revenue growth. “In Tracy, we are seeing that the local economy is remaining stable,” Castro said, citing a December 2024 median home price of $652,500 and a local unemployment rate of 4.6 percent.

Castro said the forecast projects short‑term growth for property tax and sales tax (2–3 percent on property tax in the short term; about 2.5 percent sales tax growth in the coming fiscal year). She warned of a potential sales‑tax revenue decline beginning in fiscal year 2029 tied to a possible change in state allocation methodology for e‑commerce sales tax; staff modeled a $5 million reduction in the first year of the phase‑in, growing to about $10 million later in the forecast.

Castro described the city’s “fiscal sustainability strategies,” which were adopted earlier and allocate percentages of revenue to prefund liabilities and maintenance: 2 percent for CalPERS prepayment, 2 percent for retiree medical, 3 percent for streets deferred maintenance, 2 percent for parks deferred maintenance and 3 percent for program increases (the presentation noted staff adjusted some percentages from the original ad hoc proposal). Castro said the FY25‑26 plan would begin with roughly $17.5 million to fund those prepayments and program increases.

Assistant City Manager Karen Schneider, who participated in the earlier ad hoc process, said the percentages were chosen as a practical, repeatable approach and that council direction had refined the final mix. She said the categories were selected to address the city’s largest long‑term liabilities and deferred maintenance obligations.

On CalPERS and retiree medical, staff said the city has established a CalPERS Section 115 trust and has placed roughly $4 million into that trust to date, with about $500,000 earned in interest. Staff reported an additional $4 million has been placed into the retiree medical reserve. Officials said the funds reduce the city’s unfunded liability and provide a resource to make future CalPERS payments if revenues decline.

Castro and Schneider also explained deferred maintenance: staff have been funding the pavement management plan and parks projects annually, and past budget adjustments placed roughly $3 million into those efforts last year. Committee members asked for estimates of total deferred maintenance; staff said past pavement management planning estimated roughly $100 million over five years (about $20 million per year) to fully catch up, and that the city has been funding a portion annually.

Members of the public and committee members discussed priorities and tradeoffs. Several committee members asked staff to return with budget options showing potential reallocation scenarios (for example, modestly reducing prefunding percentages to increase funds for streets and parks) and comparisons with peer cities. Finance staff agreed to bring options to the next budget meeting.

The committee approved a motion to receive the five‑year forecast and provide direction on the preliminary FY25‑26 operating and capital budget; staff will present the forecast to the full city council on April 1 and return to the finance committee in May for a special budget meeting prior to June budget adoption.","Finance director presented a five‑year general fund forecast (FY25–30) showing short‑term surpluses, potential sales‑tax declines in FY29–30 tied to e‑commerce allocation changes, and staff recommended continuing one‑time prepayments (~$17.5M) for CalPERS, retiree medical, and deferred maintenance; committee approved the report.",{"_33":86,"_35":36,"_37":38,"_39":87,"_41":88,"_43":89,"_45":90,"_46":91,"_48":92,"_50":93,"_52":94,"_54":55,"_56":57,"_58":95,"_60":61,"_62":63,"_64":96,"_66":67,"_68":69,"_70":67,"_71":55,"_72":55},6641300,"Tracy Treasurer Reports $623 million Portfolio, Urges Annual Investment Policy Review",1277,572000,1849000,"/Search/View?dp=1&key=2545665-64c11d033a0b73d4211c92f4fd23c4b1&start=572&end=1849","https://assets.pipeline.soar.com/2545665-64c11d033a0b73d4211c92f4fd23c4b1/thumbnail_572000.jpg","/articles/6641300/Tracy/San-Joaquin-County/California/Tracy-Treasurer-Reports-623-million-Portfolio-Urges-Annual-Investment-Policy-Review","https://secure.pipeline.soar.com/6641300-d1ba478d4dcb713eed0bf32d8f9a273b/orig.mp4?Expires=1776424443&Signature=NHAFMXr6cEQnqmX-NTK3qnFpEgqF8DsGhRqiXM~4w~FIx6PMBbInbYTQ-v1Rzni95~QM6a65sU0CrbRN-ZjreteOIdRF2uviRdG0VEv-jj19BpXHrpO2qO6clcpFMqCMpq~eJ8~3k-iqjU1IzbFkd7mF4JLSD24OA286wUB8GT3kg5~Bmthnrs70cQ7Z5J7qY11C~gQbflVGb-Ub2Quyv~2rxV9swUZWgYbpBPzYYzC7uKf33lgpNq~Xx-D3soFZVWRccpLf5I0-vIYmQ4ihMqIUTpdoIHlCyGolEbLYyB-1Bniyo78PLulm-ZMz-1EQNjDAI0JG3nRlmki8m-8Kdw__&Key-Pair-Id=KUT5TJCACFTXG","The Tracy finance committee on Oct. 22 received an informational treasurer's report showing the city’s pooled investments and trustee accounts totaled about $623,000,000 as of Dec. 31, 2024, and a combined portfolio yield near 4.27 percent.

The report, delivered by Treasurer McCray, opened with the office’s objectives: “safety, liquidity, and return on investment,” and explained the city’s mix of demand deposits and institutionally managed portfolios, including accounts with Chandler Asset Management, JPMorgan, Invesco and the Local Agency Investment Fund.

McCray said the portfolio’s book and market values are kept close, and identified the treasurer’s investments at roughly $537 million (book) and $539 million (market) on the report’s date. He noted the city’s broader portfolio — including trustee and bond‑related monies — aggregated near $623 million.

The treasurer told the committee the portfolio’s weighted yield was “4.266,” and pointed to strong recent interest earnings compared with years when yields were below 1 percent. He described the portfolio duration as roughly 1.9 years (about 709 days) and said the city’s policy limits holdings to maturities under five years.

McCray outlined liquidity and allocation: a Wells Fargo checking sweep with an interest rate of about 0.71 percent for demand deposits, and institutional managers used for longer durations and higher returns. He explained differences among managers: JPMorgan has taken a more opportunistic corporate‑bond posture (higher yields now), Invesco holds relatively longer duration positions, and Chandler is a long‑standing municipal manager. He also described the Local Agency Investment Fund (LAIF) and a CAMP account as short‑duration options with program limits.

On credit concentration, McCray said corporate exposure is capped by policy and that the five largest corporate issuers in the portfolio are familiar financial institutions; the policy permits up to 5 percent exposure per issuer but the treasurer seeks lower weights in practice.

Committee members thanked the treasurer for the briefing. No substantive amendments were requested. The committee approved a motion to receive the treasurer’s informational report.

The treasurer also noted that investment policy review is conducted annually, and that an investment committee will review and present any recommended changes to the full city council for approval in a public meeting.

The finance committee voted to accept the report as informational.","City treasurer presented the quarter‑end (Dec. 31, 2024) portfolio review showing roughly $623 million in city assets, a combined portfolio yield above 4%, and recommended continuing annual policy review; finance committee received the report and approved it as informational.","actionData","errors"]

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Finance Committee Keeps Current Model for Allocating Investment Interest to Operating Funds

Tracy Finance Committee Reviews Five‑Year Forecast; Staff Recommends $17.5M in One‑Time Fiscal Sustainability Payments

Tracy Treasurer Reports $623 million Portfolio, Urges Annual Investment Policy Review