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CC 2016-02-23_09b Statement of Investment Deposits MEMORANDUM TO: CITY COUNCIL FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES BY: RYAN CORNELL, ACCOUNTING MANAGER SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS DATE: FEBRUARY 23, 2016 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 January 31, 2016, 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 January 31, 2016. It includes all investments managed by the City, the investment institution, investment type, book value, maturity date, and rate of interest. As of January 31, 2016, 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 FEBRUARY 23, 2016 PAGE 2 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, February 18, 2016. The Agenda and report were posted on the City’s website on Friday, February 19, 2016. No public comments were received. Attachments: 1. Portfolio Summary: January 31, 2016 Item 9.b. - Page 2 ATTACHMENT 1 City of Arroyo Grande 300 E. Branch St.Arroyo Grande, CA 93420 Phone: (805) 473-5400 CI T Y O F A R R O Y O G R A N D E Po r t f o l i o M a n a g e m e n t Po r t f o l i o S u m m a r y Ja n u a r y 3 1 , 2 0 1 6 In v e s t m e n t s Bo o k V a l u e In t e r e s t R a t e In t e r e s t Ra t e P Y D a t e o f P u r c h a s e Te r m Ma t u r i t y D a t e % of Portfolio Lo c a l A g e n c y I n v e s t m e n t F u n d 4, 9 0 8 , 8 5 5 . 9 9 $ 0 . 4 4 6 % 0 . 2 6 2 % 25.067% Ce r t i f i c a t e s o f D e p o s i t He r i t a g e O a k s B a n k 10 0 , 4 9 3 . 3 0 0. 5 0 0 % No v e m b e r 2 1 , 2 0 1 4 1 3 m o s D e c e m b e r 2 1 , 2 0 1 5 0.513% Ca t h a y B a n k 24 8 , 0 0 0 . 0 0 0. 7 5 0 % Au g u s t 3 0 , 2 0 1 3 3 0 m o s F e b r u a r y 2 9 , 2 0 1 6 1.266% Si l v e r g a t e B a n k 24 9 , 0 0 0 . 0 0 0. 9 0 0 % No v e m b e r 1 4 , 2 0 1 2 5 4 m o s May 15, 20171.272% Re d d i n g B a n k o f C o m m e r c e 25 0 , 0 0 0 . 0 0 1. 3 0 0 % Ma r c h 2 2 , 2 0 1 5 3 6 m o s M a r c h 2 2 , 2 0 1 8 1.277% Co m p a s s B a n k 24 5 , 0 0 0 . 0 0 1. 1 5 0 % Ma y 6 , 2 0 1 5 3 6 m o s May 7, 20181.251% Mi s s i o n C o m m u n i t y B a n k 1, 0 0 0 , 0 0 0 . 0 0 0. 8 0 0 % Ju l y 3 , 2 0 1 5 3 6 m o s July 3, 20185.106% BM W B a n k 24 5 , 0 0 0 . 0 0 2. 0 0 0 % Au g u s t 3 0 , 2 0 1 3 6 0 m o s A u g u s t 3 0 , 2 0 1 8 1.251% To t a l C e r t i f i c a t e s o f D e p o s i t 2, 3 3 7 , 4 9 3 . 3 0 11.936% Ag e n c y B o n d s Ag e n c y Bo n d s FI C O S t r i p P r i n c i p a l 2, 4 9 6 , 6 0 6 . 7 2 0 . 8 4 0 % * J a n u a r y 1 5 , 2 0 1 5 3 6 0 m o s N o v e m b e r 3 0 , 2 0 1 7 1 2 . 7 4 9 % Fe d e r a l N a t i o n a l M o r t g a g e A s s n 2, 4 2 3 , 0 3 5 . 9 0 1. 0 6 0 % Se p t e m b e r 1 7 , 2 0 1 4 6 6 m o s April 30, 201812.373% Fe d e r a l N a t i o n a l M o r t g a g e A s s n 1, 9 6 5 , 0 6 2 . 0 0 1. 2 5 0 % Fe b r u a r y 1 4 , 2 0 1 4 6 0 m o s J a n u a r y 3 0 , 2 0 1 9 10.035% FI C O S t r i p C o u p o n 95 4 , 2 0 1 . 9 4 1. 4 8 0 % * Ma y 6 , 2 0 1 5 3 6 0 m o s S e p t e m b e r 2 6 , 2 0 1 9 4.873% Fe d e r a l N a t i o n a l M o r t g a g e A s s n 2, 4 9 7 , 6 8 0 . 0 0 1. 5 5 0 % Ja n u a r y 1 5 , 2 0 1 5 8 4 m o s O c t o b e r 4 , 2 0 1 9 12.754% Fe d e r a l F a r m C r e d i t 2, 0 0 0 , 0 0 0 . 0 0 1. 7 0 0 % Oc t o b e r 9 , 2 0 1 5 8 4 m o s O c t o b e r 8 , 2 0 2 0 10.213% To t a l A g e n c y B o n d s 12 , 3 3 6 , 5 8 6 . 5 6 62.997% TO T A L I N V E S T M E N T S 19 , 5 8 2 , 9 3 5 . 8 5 $ 100.000% * E f f e c t i v e I n t e r e s t R a t e Item 9.b. - Page 3 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.b. - Page 4