CC 2014-05-27_08.b. Investment DepositsMEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES~
BY: RYAN CORNELL, ACCOUNTING SUPERVISOR~
SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
DATE: MAY 27, 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 April 30, 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 April 30, 2014. It includes all investments
managed by the City, the investment institution, investment type, book value, maturity date, and
rate of interest. As of April 30, 2014, 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 COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
MAY 27,2014
PAGE2
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 in front of City Hall on Thursday, May 22, 2014. The Agenda and report
were posted on the City's website on Friday, May 23, 2014. No public comments were received.
Attachments:
1. Portfolio Summary: April 30, 2014
Item 8.b. - Page 2
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ATIACHMENT 1 City of Arroyo Grande 300 E. Branch St. Arroyo Grande, CA 93420 Phone: (805) 473-5400
Ma
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Date
Ma
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22, 2015
Ju
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30, 2015
Se
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t
e
m
b
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28, 2015
Ma
y
15, 2017
Au
g
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s
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30, 2018
Fe
b
r
u
a
r
y
29, 2016
No
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m
b
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r
21, 2014 % of Portfolio 59.604% 1.236% 4.944% 1.252% 1.231% 1.211% 1.226% 0.494% 11.594%
Au
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u
s
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21, 2018 9.224%
Ja
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u
a
r
y
30, 2019 9.715%
Ma
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27, 2019 9.864% 28.803% 100.000% Item 8.b. - Page 3
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Item 8.b. - Page 4