HomeMy WebLinkAbout2020 Q3 Cash and Investment Report
Memorandum
To: Erika Storlie, Interim City Manager
From: Hitesh Desai, CFO/ Treasurer
Subject: 3rd Quarter 2020 - Cash and Investment Report
Date: November 6, 2020
Attached please find the Cash and Investment report as of September 30, 2020.
A comparison between the 3rd quarter 2020 and 2nd quarter 2020 investment reports
indicate an increase in combined cash & investments of $27,468,576 from $59,582,619 to
$87,051,195. The increase was mainly attributable to issuance of 2020 Bonds and Property
Tax receipts.
The adverse impact on revenues from COVID 19 has also affected cash and investments
including investment strategies. During the 3rd quarter, we continued to focus on
maintaining the liquidity of our position while striving for the maximum returns on Cash and
Investments. We will continue to monitor the interest rate environment and overall
economy.
Cash and investments with individual financial institution are summarized below:
As of September 30, 2020, ledger balances showing the highest percentage of total
deposit was held by Byline Bank at $69.9M or 80.3% of the total . IMET was at $8.6M or
9.9%, Illinois Funds held $4M or 4.6% while Fifth Third Bank was at $3.1M or 3.6%.
Wintrust and PMA held a combined total of $1.5M or 1.6%. The 3rd quarter has
presented a difficult investment strategy due to the decline of interest rates. In this low
interest rate environment, we took advantage of the opportunity presented by moving
money from one bank to the other to achieve higher investment earnings. This, however,
created a deviation from our investment policy in pursuit of better earnings. Staff
continues to look for other investment opportunities and will continue to monitor the
allocation of Cash and Investments to comply with the City’s investment policy.
If you have any questions on this report or would like to discuss in greater detail, please
contact me by phone at (847) 448.8082 or by e-mail at hdesai@cityofevanston.org.
9/30/2020 6/30/2020 Change
Cash 69,863,849 27,161,382 42,702,467
Investments 17,187,346 32,421,237 (15,233,891)
TOTAL 87,051,195 59,582,619 27,468,576