CC 2013-08-27_08.b. Statement of Investment DepositsMEMORANDUM
TO: CITY COUNCIL
FROM:
BY:
SUBJECT:
DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES~
RYAN CORNELL, ACCOUNTING SUPERVISOR~
CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
AUGUST 27, 2013 DATE:
RECOMMENDATION:
It is recommended the City Council receive and file the attached report listing the current
investment deposits of the City of Arroyo Grande, as of July 31, 2013, as required by
Government Code Section 53646(b).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There is no funding impact to the City related to this report. However, the City does receive
interest revenue based on the interest rate of the investment(s).
No or minimal future staff time is projected.
BACKGROUND:
This report represents the City's investments as of July 31, 2013. It includes all investments
managed by the City, the investment institution, investment type, book value, maturity date, and
rate of -interest. As of July 31, 2013 the investment portfolio was in compliance with all State
laws and the City's investment policy.
ANALYSIS OF ISSUES:
The Director of Administrative Services has historically submitted to the City Council a monthly
report, providing the following information:
1. Type of investment.
2. Financial institution (bank, savings and loan, broker, etc).
3. Date of maturity.
4. Principal amount.
5. Rate of interest.
6. Current market value for all securities having a maturity of more than 12 months.
7. Relationship of the monthly report to the annual statement of investment policy.
Item 8.b. - Page 1
CITY COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
AUGUST 27, 2013
PAGE2
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
Recommended Alternative -Approve staff's recommendation to receive and file the
attached report listing the current investment deposits.
Do not approve staff's recommendation
Provide direction to staff
ADVANTAGES:
Safety of principal is the foremost objective of the City. Investments are undertaken in a
manner that seeks to ensure the preservation of capital in the overall portfolio.
DISADVANTAGES:
Some level of risk is present in any investment transaction. Losses could be incurred due to
market price changes, technical cash flow complications such as the need to withdraw a non-
negotiable Time Certificate of Deposit early, or even the default of an issuer. To minimize such
risks, diversifications of the investment portfolio by institution and by investment instruments are
being used as much as is practical and prudent.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted in front of City Hall on Thursday, August 22, 2013. The Agenda and
report were posted on the City's website on Friday, August 23, 2013. No public comments were
received.
Attachments:
1. Portfolio Summary: July 31, 2013
Item 8.b. - Page 2
CITY OF
Investments Book Value
Local Agency Investment Funds $ 15,585,006.12
Certlcates of Deposit -Banks
Redding Bank of Commerce 250,000.00
Mission Community Bank 1,000,000.00
Beal Bank 100,000.00
Rabobank 251,883.15
Silvergate Bank 249,000.00
Mutual Securities 250,000.00
Total Certificates of Deposit $ 2, 100,883.15
Total Investments $ 17,685,889.27
CITY OF ARROYO GRANDE
Portfolio Management
Portfolio Summary
July 31, 2013
Interest
Interest Rate Rate PY Date of Purchase
0.267% 0.363%
1.410% March 22, 2012
1.040% July 1, 2012
1.250% September 28, 2011
0.990% September 28, 2012
0.900% November 14, 2012
0.750%* March 9, 2012
* -Interest rate increases by .25% per year if certificate is not called.
Tenn
36mos
36mos
24mos
36mos
54mos
Callable@
9/9/2013
ATTACHMENT 1
City of Arroyo Grande
300 E. Branch St.
Arroyo Grande, CA 93420
Phone: (805)473-5400
Maturity Date % of Portfolio
88.121%
March 22, 2015 1.414%
June 30, 2015 5.654%
September 28, 2013 0.565%
September 28, 2015 1.424%
May 15, 2017 1.408%
March 9, 2017 1.414%
100.000%
Item 8.b. - Page 3
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