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CC 2014-02-25_08.b. Statement of Investment DepositsMEMORANDUM TO: CITY COUNCIL FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICE~ BY: RYAN CORNELL, ACCOUNTING SUPERVISOR~ SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS DATE: FEBRUARY 25, 2014 RECOMMENDATION: It is recommended the City Council receive and file the attached report listing of investment deposits of the City of Arroyo Grande, as of January 31, 2014, as required by Government Code Section 53646(b). IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no funding impact to the City related to these reports. 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 January 31, 2014. It includes all investments managed by the City, the investment institution, investment type, book value, maturity date, and rate of interest. As of January 31, 2014, the investment portfolio was in complianee 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. •.) _!, •' ... .,• -. .. I . :·" -" : ' ~. • • <' ' ' ·-:l-· > .· . -.~-.: . ' •.' \ ' .· :· ':• . ·. '.• ·',. ··-!: . . . . \ ~:: .. =· ·' ~ i_ ,:,.·: . '' Item 8.b. - Page 1 CITY COUNCIL CONSIDERATION OF INVESTMENT DEPOSITS FEBRUARY 25, 2014 PAGE2 ALTERNATIVES: The following alternatives are provided for the Council's consideration: Recommended Alternative -Approve staffs recommendation to receive and file the attached report listing the investment deposits. Do not approve staffs 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, February 20, 2014. The Agenda and report were posted on the City's website on Friday, February 21, 2014. No public comments were received. Attachments: 1. Portfolio Summary: January 31, 2014 Item 8.b. - Page 2 CITY OF Investments Local Agency Investment Fund Certicates of Deposit Redding Bank of Commerce Mission Community Bank Rabobank Silvergate Bank BMW Bank Cathay Bank Heritage Oaks Bank Mutual Securities Total Certificates of Deposit Agency Bonds $ Book Value 9,950,446.86 250,000.00 1,000,000.00 253,153.41 249,000.00 245,000.00 248,000.00 100,000.00 250,000.00 2,595,153.41 Federal Home Loan Bank (Freddie Mac) 1,865,718.75 Federal Home Loan Bank (Fannie Mae) 2,000,000.00 Federal Home Loan Bank (Fannie Mae) ____ 9_9_5..._, 1_0_9_.o ___ o_ Total Agency Bonds 4,860,827.75 TOTAL INVESTMENTS $ 17,406,428.02 ========::::::::::===== CITY OF ARROYO GRANDE Portfolio Management Portfolio Summary January 31, 2014 Interest Interest Rate Rate PY 0.244% 0.300% 1.410% 1.040% 0.990% 0.900% 2.000% 0.750% 0.500% 0.750%* 1.954% 1.000% 0.921% Date of Purchase March 22, 2012 July 1, 2012 September 28, 2012 November 14, 2012 August 30, 2013 August30,2013 October 21, 2013 March 9, 2012 August 28, 2013 August 28, 2013 August28,2013 * -Interest rate increases by .25% per year if certificate is not called. Term 36 mos 36 mos 36mos 54 mos 60mos 30mos 13 mos Callable@ 3/9/2014 60mos 36mos 35mos ATIACHMENT City of Arroyo Grande 300 E. Branch St. Arroyo Grande, CA 93420 Phone: (805)473-5400 Maturity Date March 22, 2015 June 30, 2015 September 28, 2015 May 15, 2017 August 30, 2018 February 29, 2016 November 21, 2014 March 9, 2017 % of Portfollo 57.165% 1.436% 5.745% 1.454% 1.431% 1.408% 1.425% 0.575% 1.436% 14.909% August 21, 2018 10.719% August 26, 2016 11.490% July 26, 2016 ___ ___,..5;;..... 7..,....1,_,7,.,,.0 /c.,...o 27.925% 100.000% Item 8.b. - Page 3 1 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.b. - Page 4