CC 2018-09-25_09b Statement of Investment Deposits_August 2018
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
BY: NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
DATE: SEPTEMBER 25, 2018
SUMMARY OF ACTION:
Presentation of investment deposits.
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.
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, 2018 as required by
Government Code Section 53646(b).
BACKGROUND:
This report represents the City’s investments as of August 31, 2018. 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, 2018, 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).
Item 9.b. - Page 1
CITY COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
SEPTEMBER 25, 2018
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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.
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, 2018
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, 2018
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio
Local Agency Investment Fund 4,766,407.50$ 4,766,407.50$ 0.634%31.230%
Certificates of Deposit
Pacific Premier Bank 102,503.74 102,503.74 0.500%February 21, 2018 12 mos February 21, 2019 0.672%
Pacific Premier Bank 1,000,000.00 1,000,000.00 0.800%July 3, 2018 36 mos July 3, 2019 6.552%
Capital One Bank USA 248,000.00 248,000.00 1.000%July 7, 2016 36 mos July 8, 2019 1.625%
Ally Bank 248,000.00 248,000.00 1.050%July 7, 2016 36 mos July 8, 2019 1.625%
Discover Bank 248,000.00 248,000.00 1.100%July 7, 2016 36 mos July 8, 2019 1.625%
JP Morgan Chase Bank 248,000.00 248,000.00 1.100%July 15, 2016 36 mos July 15, 2019 1.625%
Goldman Sachs Bank USA 247,000.00 247,000.00 1.700%October 18, 2017 24 mos October 18, 2019 1.618%
Wex Bank 247,000.00 247,000.00 1.700%October 18, 2017 24 mos October 18, 2019 1.618%
Citibank 245,000.00 245,000.00 2.700%May 11, 2018 24 mos May 11, 2020 1.605%
Morgan Stanley 245,000.00 245,000.00 2.800%August 18, 2018 24 mos August 31, 2020 1.605%
Capital One Bank USA 247,000.00 247,000.00 2.000%October 18, 2017 36 mos October 19, 2020 1.618%
Comenity Capital Bank 249,000.00 249,000.00 1.950%October 23, 2017 36 mos October 23, 2020 1.631%
Total Certificates of Deposit 3,574,503.74 3,574,503.74 23.420%
Agency Bonds
Federal National Mortgage Assn 1,965,062.00 1,989,408.00 1.250%February 14, 2014 60 mos January 30, 2019 12.875%
FICO Strip Coupon 954,201.94 989,749.48 1.480%May 6, 2015 360 mos September 26, 2019 6.252%
Federal Home Loan Bank 1,502,338.50 1,460,241.00 1.200%July 13, 2016 48 mos July 13, 2020 9.843%
Federal Farm Credit Bank 2,500,000.00 2,423,985.00 2.090%November 15, 2017 48 mos November 15, 2021 16.380%
Total Agency Bonds 6,921,602.44 6,863,383.48 45.350%
TOTAL INVESTMENTS 15,262,513.68$ 15,204,294.72$ 100.000%
* Effective Interest Rate
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