08.b. Investment DepositsMEMORANDUM
TO:
FROM:
CITY COUNCIL
ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVIC
BY: MICHELLE MAYFIELD, TREASURER fld
SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
DATE: APRIL 24,2012
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 March 31, 2012, 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 March 31, 2012. It includes all investments
managed by the City, the investment institution, investment type, book value, maturity date, and
rate of interest. As of March 31, 2012 the investment portfolio was in compliance with all State
laws and the City's investment policy.
ANALYSIS OF ISSLIES:
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.
Agenda Item 8.b.
Page 1
CITY COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
APRIL 24,2012
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 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, April 19, 2012. The Agenda and
report were posted on the City's website on Friday, April 20, 2012. No public comments were
received.
Attachments:
1. Portfolio Summary: March 31, 201 2
Agenda Item 8.b.
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I CITY OF I City of Arroyo Grande
300 E. Branch St.
Arroyo Grande, CA 93420
Phone: (805)473-5400
ClTY OF ARROYO GRANDE
Portfolio Management
Portfolio Summary
March 31,201 2
Interest
Investments Book Value Interest Rate Rate PY Date of Purchase Term Maturity Date % of Portfolio
Local Agency Investment Funds $ 14,692,632.90 0.383% 0.500% 83.736%
Certicates of Deposit - Banks
Redding Bank of Commerce
First Republic Bank
CDARS
Beal Bank
Mutual Securities 250,000.00 0.500%
Total Certificates of Deposit $ 1,850,000.00
Money Market Account
Rabobank
Total Investments $ 17,546,370.39
September 21,2009 30 mos March 21,2012
November 9,2009 36 mos November 9,201 2
July 1,2010 24 mos June 28,2012
September 28,2011 24 mos September 28,2013
Callable @
March 9, 2012 3/9/2012' March 9,201 7
May 9,201 1
' - Interest rate increases by .25% per year if certificate is not called.
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Agenda Item 8.b.
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