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CC 2012-10-23_08.b.Statement of Investment DepositsMEMORANDUM TO: CITY COUNCIL FROM: ANGELA KRAETSCH, DIRECTOR OF ADMINISTRATIVE SERVICES BY: MICHELLE MAYFIELD, TREASURER 4 SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS DATE: OCTOBER 23,2012 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 September 30, 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 September 30, 2012. 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, 2012 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 8.b. - Page 1 CITY COLlNClL CONSIDERATION OF INVESTMENT DEPOSITS OCTOBER 23,2012 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 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 NO'TIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, October 18, 2012. The Agenda and report were posted on the City's website on Friday, October 19, 2012. No public comments were received. Attachments: 1. Portfolio Summary: September 30, 2012 Item 8.b. - Page 2 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 September 30, 201 2 Interest Investments Book Value Interest Rate Rate PY Date of Purchase Term Maturity Date % of Portfolio Local Agency Investment Funds $ 12,169,248.89 0.348% 0.378% 80.997% Certicates of Deposit - Banks Redding Bank of Commerce 250,000.00 1.410% March 22,2012 36 mos March 22, 2015 1.664% First Republic Bank 250,000.00 3.000% November 9,2009 36 mos November 9,2012 1.664% Mission Community Bank 1,000,000.00 1.040% July 1,2012 36 mos June 30,2015 6.656% Beal Bank 100,000.00 1.250% September 28,201 1 24 mos September 28,2013 0.666% Rabobank 250,000.00 0.990% September 28,2012 36 mos September 28,2015 1.664% Callable @ Mutual Securities 250,000.00 0.500% March 9, 201 2 3191201 2* March 9,2017 1.664% Total Certificates of Deposit $ 2,100,000.00 Money Market Account Rabobank Total Investments $ 15,024,332.83 May 9,201 1 nla ' - Interest rate increases by .25% per year if certificate is not called. It e m 8 . b . - P a g e 3 THIS PAGE INTENTIO NALLY LEFT BLANK Item 8.b. - Page 4