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.
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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%
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