As of June 30, 2025 cash and investments were reported in the accompanying financial statements as follows:
| Governmental activities | $ 351,996,712 |
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| Business-type activities | 13,300,334 |
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| Component unit | 883,712 |
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| Fiduciary Funds | 42,866,009 |
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| Total cash and investments | $ 409,046,767 |
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Cash and investments at June 30, 2025 consisted of the following:
| Primary Government
Demand accounts | $ 3,397,457 |
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| Petty cash | 22,963 |
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| Investments | 361,876,626 |
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| Total cash and investments - Primary Government | $ 365,297,046 |
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| Component Unit
Demand accounts | $ 883,712 |
|---|
| Fiduciary Funds
Demand accounts | $ 9,292,006 |
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| Demand accounts pooled with primary government Investments | 1,919,494 |
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| 31,654,509 |
|---|
| Total cash and investments - Fiduciary Funds | $ 42,866,009 |
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The City of Palm Desert maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy, which authorizes it to invest in various investments.
At June 30, 2025, the carrying amount of the deposits was $13,573,175, and the bank balance was $6,357,188. The $7,215,987 difference represents outstanding checks, deposits in transit and other reconciling items.
The California Government Code requires California banks and savings and loan associations to secure an Entity's deposits by pledging government securities with a value of 110% of an Entity's deposits. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of total deposits. The City Treasurer may waive the collateral requirement for deposits that are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state-chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors.
Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an Agent of Depository has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.