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Cash Flow Forecasting

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									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?


								
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