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CC 2015-10-27_ 08b Statement of Investment DepositsTO: FROM: BY: MEMORANDUM CITY COUNCIL DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES~ RYAN CORNELL, ACCOUNTING MANAGER ~ SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS DATE: OCTOBER 27, 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 September 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 interest rate of the investments. No or minimal future staff time is projected. BACKGROUND: This report represents the City's investments as of September 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 September 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, 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 OCTOBER 27, 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, October 22, 2015. The Agenda and report were posted on the City's website on Friday, October 23, 2015. No public comments were received. Attachments: 1. Portfolio Summary: September 30, 2015 Item 8.b. - Page 2 Investments Local Agency Investment Fund Certificates of Deposit Rabobank Heritage Oaks Bank Cathay Bank Silvergate Bank Redding Bank of Commerce Compass Bank Mission Community Bank BMW Bank Total Certificates of Deposit Agency Bonds FICO Strip Principal Federal National Mortgage Assn Federal National Mortgage Assn FICO Strip Coupon Federal National Mortgage Assn Federal Home Loan Mtg Corp Total Agency Bonds $ Book Value 3,925,613.54 256,988.64 100,493.30 248,000.00 249,000.00 250,000.00 245,000.00 1,000,000.00 245,000.00 2,594,481.94 2,496,606.72 2,423,035.90 1,965,062.00 954,201.94 2,497,680.00 1,998,324.00 12,334,910.56 TOTAL INVESTMENTS $ 18,855,006.04 ================= * Effective Interest Rate CITY OF ARROYO GRANDE Portfolio Management Portfolio Summary September 30, 2015 Interest Interest Rate Rate PY Date of Purchase 0.337% 0.246% 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 1.150% May 6, 2015 0.800% July 3, 2015 2.000% August30,2013 0 840% * January 15, 2015 1.060% September 17, 2014 1.250% February 14, 2014 1.480% * May 6, 2015 1.550% January 15, 2015 1.600% September 18, 2015 Term 36 mos 13 mos 30 mos 54mos 36mos 36 mos 36 mos 60 mos 360 mos 66 mos 60 mos 360 mos 84mos 84 mos ATTACHMENT 1 City of Arroyo Grande 300 E. Branch St Arroyo Grande, CA 93420 Phone· (805) 473-5400 Maturity Date September 28, 2015 December 21, 2015 February 29, 2016 May 15, 2017 March 22, 2018 May 7, 2018 July 3, 2018 August 30, 2018 November 30, 2017 April 30, 2018 January 30, 2019 September 26, 2019 October 4, 2019 January 9, 2020 % of Portfolio 20 820% 1.363% 0.533% 1.315% 1.321% 1.326% 1.299% 5.304% 1.299% 13.760% 13.241% 12.851% 10.422% 5.061% 13.247% 10.598% 65.420% 100.000% Item 8.b. - Page 3 THIS PAGE INTENTIONALLY LEFT BLANK Item 8.b. - Page 4