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CC 2015-06-09_08b Statement of Investment DepositsMEMORANDUM TO: CITY COUNCIL FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES~ BY: RYAN CORNELL, ACCOUNTING MANAGER ~ _ SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMEN~OSITS DATE: JUNE 9, 2015 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, 2015, 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 in1erest rate of the investments. No or minimal future staff time is projected. BACKGROUND: This report represents the City's investments as of April 30, 2015. 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, 2015, 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, proyiding 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 JUNE 9, 2015 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, June 4, 2015. The Agenda and report were posted on the City's website on Friday, June 5, 2015. No public comments were received. Attachments: 1. Portfolio Summary: April 30, 2015 Item 8.b. - Page 2 CITY OF Investments Local Agency Investment Fund Certificates of Deposit Mission Community Bank Rabobank Heritage Oaks Bank Cathay Bank Silvergate Bank Redding Bank of Commerce BMW Bank Total Certificates of Deposit Agency Bonds FICO Strip Prin Federal National Mortgage Assn Federal National Mortgage Assn Federal Farm Credit Bank Federal National Mortgage Assn Total Agency Bonds $ Book Value 7 ,320,419.37 1,000,000.00 255,706.16 100,493.30 248,000.00 249,000.00 250,000.00 245,000.00 2,348, 199.46 2,496,606. 72 2,423,035.90 1,965,062.00 1,995,290.00 2,497,680.00 11,377,674.62 TOTAL INVESTMENTS $ 21,046,293.45 ================= * Effective Interest Rate CITY OF ARROYO GRANDE Portfolio Management Portfolio Summary April 30, 2015 Interest Interest Rate Rate PY Date of Purchase 0.283% 0.233% 1.040% July 1, 2012 0.990% September 28, 2012 0.500% November 21, 2014 0.750% August 30, 2013 0.900% November 14, 2012 1.300% March 22, 2015 2.000% August 30, 2013 0.840% * January 15, 2015 1.060% September 17, 2014 1.250% February 14, 2014 1.690% April 14, 2014 1.550% January 15, 2015 Term 36 mos 36 mos 13 mos 30 mos 54 mos 36 mos 60 mos 360 mos 66 mos 60mos 60 mos 84 mos ATTACHMENT 1 City of Arroyo Grande 300 E. Branch St. Arroyo Grande, CA 93420 Phone: (805) 473-5400 Maturity Date June 30, 2015 September 28, 2015 December 21, 2015 February 29, 2016 May 15, 2017 March 22, 2018 August 30, 2018 November 30, 2017 April 30, 2018 January 30, 2019 March 27, 2019 October 4, 2019 % of Portfolio 34.782% 4.751% 1.215% 0.477% 1.178% 1.183% 1.188% 1.164% 11.157% 11.862% 11.513% 9.337% 9.480% 11.868% 54.060% 100.000% Item 8.b. - Page 3 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.b. - Page 4