CC 2016-10-25_09b Statement of Investment Deposits
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
DATE: OCTOBER 25, 2016
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 August 31, 2016 and September 30, 2016, 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 investments.
No or minimal future staff time is projected.
BACKGROUND:
This report represents the City’s investments as of August 31, 2016 and September 30, 2016. It
includes all investments managed by the City, the investment institution, investment type, book
value, maturity date, and rate of interest. As of September 30, 2016, 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 9.b. - Page 1
CITY COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
OCTOBER 25, 2016
PAGE 2
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 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 at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. Portfolio Summary: August 31, 2016
2. Portfolio Summary: September 30, 2016
Item 9.b. - Page 2
ATTACHMENT 1
City of Arroyo Grande
300 E. Branch St.
Arroyo Grande, CA 93420
Phone: (805) 473-5400
CITY OF ARROYO GRANDE
Portfolio Management
Portfolio Summary
August 31, 2016
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio
Local Agency Investment Fund 6,153,547.37$ 6,153,547.37$ 0.614%33.125%
Certificates of Deposit
Heritage Oaks Bank 100,996.91 100,996.91 0.500%December 21, 2015 12 mos December 21, 2016 0.544%
Redding Bank of Commerce 250,000.00 250,000.00 1.300%March 22, 2015 36 mos March 22, 2018 1.346%
Compass Bank 245,000.00 245,000.00 1.150%May 6, 2015 36 mos May 7, 2018 1.319%
Silvergate Bank 249,000.00 249,000.00 1.050%June 17, 2016 36 mos June 18, 2018 1.340%
Mission Community Bank 1,000,000.00 1,000,000.00 0.800%July 3, 2015 36 mos July 3, 2018 5.383%
BMW Bank 245,000.00 245,000.00 2.000%August 30, 2013 60 mos August 30, 2018 1.319%
Ally Bank 248,000.00 248,000.00 1.050%July 7, 2016 36 mos July 8, 2019 1.335%
Capital One Bank USA 248,000.00 248,000.00 1.000%July 7, 2016 36 mos July 8, 2019 1.335%
Discover Bank 248,000.00 248,000.00 1.100%July 7, 2016 36 mos July 8, 2019 1.335%
JP Morgan Chase Bank 248,000.00 248,000.00 1.100%July 15, 2016 36 mos July 15, 2019 1.335%
Total Certificates of Deposit 3,081,996.91 3,081,996.91 11.251%
Agency Bonds
FICO Strip Principal 2,496,606.72 2,528,468.48 0.840%January 15, 2015 360 mos November 30, 2017 13.439%
Federal National Mortgage Assn 2,423,035.90 2,455,486.09 1.060%September 17, 2014 66 mos April 30, 2018 13.043%
Federal National Mortgage Assn 1,965,062.00 1,993,808.00 1.250%February 14, 2014 60 mos January 30, 2019 10.578%
FICO Strip Coupon 954,201.94 983,792.15 1.480%May 6, 2015 360 mos September 26, 2019 5.137%
Federal Home Loan Bank 1,502,338.50 1,486,041.00 1.200%July 13, 2016 48 mos July 13, 2020 8.087%
Total Agency Bonds 9,341,245.06 9,447,595.72 50.284%
TOTAL INVESTMENTS 18,576,789.34$ 18,683,140.00$ 100.000%
* Effective Interest Rate
Item 9.b. - Page 3
ATTACHMENT 2
City of Arroyo Grande
300 E. Branch St.
Arroyo Grande, CA 93420
Phone: (805) 473-5400
CITY OF ARROYO GRANDE
Portfolio Management
Portfolio Summary
September 30, 2016
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio
Local Agency Investment Fund 6,153,547.37$ 6,153,547.37$ 0.634%33.125%
Certificates of Deposit
Heritage Oaks Bank 100,996.91 100,996.91 0.500%December 21, 2015 12 mos December 21, 2016 0.544%
Redding Bank of Commerce 250,000.00 250,000.00 1.300%March 22, 2015 36 mos March 22, 2018 1.346%
Compass Bank 245,000.00 245,000.00 1.150%May 6, 2015 36 mos May 7, 2018 1.319%
Silvergate Bank 249,000.00 249,000.00 1.050%June 17, 2016 36 mos June 18, 2018 1.340%
Mission Community Bank 1,000,000.00 1,000,000.00 0.800%July 3, 2015 36 mos July 3, 2018 5.383%
BMW Bank 245,000.00 245,000.00 2.000%August 30, 2013 60 mos August 30, 2018 1.319%
Ally Bank 248,000.00 248,000.00 1.050%July 7, 2016 36 mos July 8, 2019 1.335%
Capital One Bank USA 248,000.00 248,000.00 1.000%July 7, 2016 36 mos July 8, 2019 1.335%
Discover Bank 248,000.00 248,000.00 1.100%July 7, 2016 36 mos July 8, 2019 1.335%
JP Morgan Chase Bank 248,000.00 248,000.00 1.100%July 15, 2016 36 mos July 15, 2019 1.335%
Total Certificates of Deposit 3,081,996.91 3,081,996.91 11.251%
Agency Bonds
FICO Strip Principal 2,496,606.72 2,532,454.40 0.840%January 15, 2015 360 mos November 30, 2017 13.439%
Federal National Mortgage Assn 2,423,035.90 2,455,044.19 1.060%September 17, 2014 66 mos April 30, 2018 13.043%
Federal National Mortgage Assn 1,965,062.00 1,997,700.00 1.250%February 14, 2014 60 mos January 30, 2019 10.578%
FICO Strip Coupon 954,201.94 987,236.04 1.480%May 6, 2015 360 mos September 26, 2019 5.137%
Federal Home Loan Bank 1,502,338.50 1,491,762.00 1.200%July 13, 2016 48 mos July 13, 2020 8.087%
Total Agency Bonds 9,341,245.06 9,464,196.63 50.284%
TOTAL INVESTMENTS 18,576,789.34$ 18,699,740.91$ 100.000%
* Effective Interest Rate
Item 9.b. - Page 4