Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance Investments topic
No spam. Unsubscribe anytime.
Upland reports $142 million in cash and investments; sales tax projection to fall $1.7 million
Summary
Assistant City Manager Steven Parker told the finance committee that Upland's pooled investments grew from about $125 million in September 2024 to about $142 million in March 2025 and that staff expects a $1.7 million drop in next year's sales-tax projection, a consideration for the May 19 budget workshop.
Assistant City Manager Steven Parker told the Upland Finance Committee on April 30 that the city's cash and investments increased from about $125,000,000 in September 2024 to about $142,000,000 in March 2025.
Parker said the city's blended investment yield has risen to 3.15% from 3.02% in September. "We have dollars 125,000,000 in September of 24, up to 142,000,000 in March of 25," Parker said, adding that a seasonal rise in property-tax receipts in April typically produces another increase in the portfolio between April and June.
Why it matters: The portfolio growth and higher yields provide an additional line of revenue staff plans to use in balancing next year's budget after receiving a sales-tax projection cut. "At Monday's city council meeting, we identified that our sales tax projection for next fiscal year is gonna go down rather significantly, dollars 1,700,000.0," Parker told the committee.
Parker described how the city has been allocating excess funds to pooled investment accounts and longer-term securities to lock in higher yields. He said the city currently holds excess funds in the California Asset Management Program (CAMP) and uses the Local Agency Investment Fund (LAIF) and other vehicles when yields and liquidity conditions change. He explained the difference in how some pools reset yields: "Camp resets every 7 days and LAIF resets every 90," and that if interest rates fall the city may shift funds between those pools.
Parker and Finance Manager Stacy Sullivan also reviewed recent category changes in sales-tax receipts. Sullivan said autos and transportation are Upland's largest sales-tax category and building and construction the second-largest. She told the committee that building-construction receipts are the most volatile. "If there is economic uncertainty, it will be felt in that category," Sullivan said.
Numbers and context taken from the presentation and committee discussion include: - Cash and investments: about $125 million (Sept. 2024) to about $142 million (March 2025). - Blended investment yield: 3.15% (current) vs. 3.02% (Sept. 2024). - Projected decline in next fiscal year sales-tax revenue: $1,700,000 (as presented by staff).
The committee heard that the portfolio growth and higher yields will be one of several revenue adjustments staff will present at the May 19 budget workshop. Parker closed his presentation with a reminder: "That's your sneak preview for the May 19 budget workshop."
