CC 2014-11-25 _08.b. Statement of Investment DepositsMEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES fp1f"
BY: RYAN CORNELL, ACCOUNTING SUPERVISOR~
SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
DATE: NOVEMBER 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 October 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 October 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 October 31, 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
NOVEMBER 25, 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, November 20, 2014. The Agenda and
report were posted on the City's website on Friday, November 21, 2014. No public comments
were received.
Attachments:
1. Portfolio Summary: October 31, 2014
Item 8.b. - Page 2
CITY OF
Investments
Local Agency Investment Fund
Certificates of Deposit
Redding Bank of Commerce
Mission Community Bank
Rabobank
Silvergate Bank
BMW Bank
Cathay Bank
Heritage Oaks Bank
Total Certificates of Deposit
Agency Bonds
Federal Home Loan Mtg Corp
Federal National Mortgage Assn
Federal National Mortgage Assn
Federal Farm Credit Bank
Total Agency Bonds
$
Book Value
9,409,941.84
250,000.00
1,000,000.00
254,423.09
249,000.00
245,000.00
248,000.00
100,000.00
2,346,423.09
1,499,007.00
2,423,035.90
1,965,062.00
1,995,290.00
7,882,394 90
TOTAL INVESTMENTS $ 19,638,759.83 ================
CITY OF ARROYO GRANDE
Portfolio Management
Portfolio Summary
October 31, 2014
Interest
Interest Rate Rate PY
0.261% 0.266%
1.410%
1.040%
0.990%
0.900%
2.000%
0.750%
0.500%
1.300%
1.060%
1.250%
1.690%
Date of Purchase
March 22, 2012
July 1, 2012
September 28, 2012
November 14, 2012
August 30, 2013
August 30, 2013
October 21, 2013
September 17, 2014
September 17, 2014
February 14, 2014
April 14, 2014
Term
36mos
36 mos
36 mos
54mos
60 mos
30 mos
13 mos
42 mos
66mos
60mos
60 mos
ATTACHMENT 1
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
% of Portfolio
47.915%
1.273%
5.092%
1.296%
1.268%
1.248%
1.263%
0.509%
11.948%
January 30, 2018 7.633%
April 30, 2018 12.338%
January 30, 2019 10.006%
March 27, 2019 10.160%
----4-0-.-13_7_%...,....o
100.000%
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