CC 2013-09-24_08.b. Statement of Investment DepositsMEMORANDUM
TO: CITY COUNCIL
FROM:
BY:
SUBJECT:
DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICE~
RYAN CORNELL, ACCOUNTING SUPERVISOR~
CONSIDERATION OF STATEMENT OF INVESTMEN"?6~SITS
DATE: SEPTEMBER 24, 2013
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 August 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 August 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 August 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.
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Item 8.b. - Page 1
CITY COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
SEPTEMBER 24, 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 iri front of City Hall on Thursday, September 19, 2013. The Agenda
and report were posted on the City's website on Friday, September 20, 2013. No public
comments were received.
Attachments:
1. Portfolio Summary: August 31, 2013
Item 8.b. - Page 2
ATTACHMENT 1
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Arroyo Grande,CA 93420
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Portfolio Summary
August 31, 2013
Interest
Investments Book Value Interest Rate Rate PY Date of Purchase Term Maturity Date %of Portfolio
Local Agency Investment Fund $ 10,085,006.12 0.271% 0.377% 57.493%
Certicates of Deposit
Redding Bank of Commerce 250,000.00 1.410% March 22,2012 36 mos March 22,2015 1.425%
Mission Community Bank 1,000,000.00 1.040% July 1,2012 36 mos June 30,2015 5.701%
Beal Bank 100,000.00 1.250% September 28,2011 24 mos September 28,2013 0.570%
Rabobank 251,883.15 0.990% September 28,2012 36 mos September 28,2015 1.436%
Silvergate Bank 249,000.00 0.900% November 14,2012 54 mos May 15,2017 1.420%
BMW Bank 245,000.00 2.000% August 30,2013 60 mos August 30,2018 1.397%
Cathay Bank 248,000.00 0.750% August 30,2013 30 mos February 29,2016 1.414%
Callable @
Mutual Securities 250,000.00 0.750%* March 9,2012 9/9/2013 March 9,2017 1.425%
Total Certificates of Deposit 2,593,883.15 14.787%
Agency Bonds
Federal Home Loan Bank(Freddie Mac) 1,866,393.23 1.954% August 28,2013 60 mos August 21,2018 10.640%
Federal Home Loan Bank(Fannie Mae) 2,000,111.11 1.000% August 28,2013 36 mos August 26,2016 11.402%
Federal Home Loan Bank(Fannie Mae) 995,775.67 0.921% August 28,2013 35 mos July 26,2016 5.677%
Total Agency Bonds 4,862,280.01 27.719%
TOTAL INVESTMENTS $ 17,541,169.28 100.000%
*-Interest rate increases by.25%per year if certificate is not called.
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Item 8.b. - Page 4