CC 2015-11-10_09b Statement of Investment DepositsMEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
BY: RYAN CORNELL, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
DATE: NOVEMBER 10, 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 October 31, 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 October 31, 2015. 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, 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 9.b. - Page 1
CITY COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
NOVEMBER 10, 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 Agenpa was posted in front of City Hall on Thursday, November 5, 2015. The Agenda and
report were posted on the City's website on Friday, November 6, 2015. No public comments
were received.
Attachments:
1. Portfolio Summary: October 31, 2015
Item 9.b. - Page 2
CITY OF
Investments
Local Agency Investment Fund
Certificates of Deposit
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
FICO Strip Coupon
Federal National Mortgage Assn
Federal Home Loan Mtg Corp
Federal Farm Credit
Total Agency Bonds
$
Book Value
3,925,613.54
100,493.30
248,000.00
249,000.00
250,000.00
245,000.00
1,000,000.00
245,000.00
2,337,493.30
2,496,606.72
2,423,035.90
954,201.94
2,497,680.00
1,998,324.00
2,000,094.44
12,369,943.00
TOTAL INVESTMENTS $ 18,633,049.84 =================
* Effective Interest Rate
CITY OF ARROYO GRANDE
Portfolio Management
Portfolio Summary
October 31, 2015
Interest
Interest Rate Rate PY Date of Purchase
0.337% 0.246%
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% August 30, 2013
0.840% * January 15, 2015
1.060% September 17, 2014
1.480% * May 6, 2015
1.550% January 15, 2015
1.600% September 18, 2015
1.700% October 9, 2015
Term
13 mos
30 mos
54 mos
36 mos
36 mos
36 mos
60 mos
360 mos
66 mos
360 mos
84 mos
84 mos
84 mos
AlTACHMENT 1
City of Arroyo Grande
300 E Branch St.
Arroyo Grande, CA 93420
Phone: (805) 473-5400
Maturity Date
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
Septen:iber 26, 2019
October 4, 2019
January 9, 2020
October 8, 2020
% of Portfolio
21.068%
0.539%
1.331%
1.336%
1.342%
1.315%
5.367%
1.315%
12.545%
13.399%
13.004%
5.121%
13.405%
10.725%
10.734%
66.387%
100.000%
Item 9.b. - Page 3
THIS PAGE INTENTIONALLY LEFT BLANK
Item 9.b. - Page 4