Cash Flow Analysis

Portfolio Management Investing Idle Cash

Roseville, CA

Incorporated in 1909 – Placer County Located 15 miles north of Sacramento Full Service City

Electric Water Wastewater Garbage

Population: 115,781 http://www.roseville.ca.us

Cash Flow Concepts

Cash Flow is the flow of money (cash, checks, electronic debits/credits) in and out of your agency.

Management / Analysis Process of monitoring, analyzing, and adjusting

your agencies cash flows Forecasting

Knowing when, where, and how your cash needs will occur

Communication is Key to Success Consult with finance staff, project managers,

financial advisors, etc

California Govt. Code

California Government Code 53600.5 The secondary objective shall be to meet the

liquidity needs of the depositor.

California Government Code 53646 The quarterly report shall include a statement

denoting the ability of the local agency to meet its pool's expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

Where to Start?

Cash Flow Worksheet Excel Spreadsheet

Revenues Taxes: Sales & Property Investments: Coupons & Maturities Other (utility payments, fees, etc)

Expenses Debt Service Payroll CIP Projects

Sample 12-month Cash Flow Sheet

Cash Flow Analysis

Cash Flow Analysis – CIP / Rehab Projects

Numerous budgeted projects

Several project managers

High dollar projects

Uncertainty of cash flow

CIP Cash Flow Analysis

Where to Begin?

CIP Cash Flow Analysis

CIP/Rehab Projects Quarterly meetings with Project

Managers

Review each project

Run reports to match estimates

Make adjustments as necessary

Tie into a Master Cash Flow Report

Cash Flow Analysis

Continue to fine tune Cash flow is an ongoing process Continue to analyze, monitor, adjust,

modify and communicate with all parties Cultivate relationships

Maximize interest income while preserving the safety, liquidity, and yield of principal

Cash Flow Analysis

So how can I structure the portfolio to maximize the

earnings potential?