CC 2017-11-28_09b Statement of Investment Deposits
MEMORANDUM
TO: CITY COUNCIL
FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES
BY: NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
DATE: NOVEMBER 28, 2017
SUMMARY OF ACTION:
Presentation of investment deposits.
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.
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, 2017 as required by
Government Code Section 53646(b).
BACKGROUND:
This report represents the City’s investments as of October 31, 2017. 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, 2017, 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).
Item 9.b. - Page 1
CITY COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
NOVEMBER 28, 2017
PAGE 2
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.
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 at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1. Portfolio Summary: October 31, 2017
Item 9.b. - Page 2
ATTACHMENT 1
City of Arroyo Grande
300 E. Branch St.
Arroyo Grande, CA 93420
Phone: (805) 473-5400
CITY OF ARROYO GRANDE
Portfolio Management
Portfolio Summary
October 31, 2017
Investments Principal Value Current Market Value Interest Rate Date of Purchase Term Maturity Date % of Portfolio
Local Agency Investment Fund 5,710,528.15$ 5,710,528.15$ 0.634%30.255%
Certificates of Deposit
Pacific Premier Bank 100,996.91 100,996.91 0.500%December 21, 2016 12 mos December 21, 2017 0.535%
Redding Bank of Commerce 250,000.00 250,000.00 1.300%March 22, 2015 36 mos March 22, 2018 1.325%
Compass Bank 245,000.00 245,000.00 1.150%May 6, 2015 36 mos May 7, 2018 1.298%
Mission Community Bank 1,000,000.00 1,000,000.00 0.800%July 3, 2015 36 mos July 3, 2018 5.298%
BMW Bank 245,000.00 245,000.00 2.000%August 30, 2013 60 mos August 30, 2018 1.298%
Ally Bank 248,000.00 248,000.00 1.050%July 7, 2016 36 mos July 8, 2019 1.314%
Capital One Bank USA 248,000.00 248,000.00 1.000%July 7, 2016 36 mos July 8, 2019 1.314%
Discover Bank 248,000.00 248,000.00 1.100%July 7, 2016 36 mos July 8, 2019 1.314%
JP Morgan Chase Bank 248,000.00 248,000.00 1.100%July 15, 2016 36 mos July 15, 2019 1.314%
Capital One Bank USA 247,000.00 247,000.00 2.000%October 18, 2017 36 mos October 19, 2020 1.309%
Goldman Sachs Bank USA 247,000.00 247,000.00 1.700%October 18, 2017 24 mos October 18, 2019 1.309%
Wex Bank 247,000.00 247,000.00 1.700%October 18, 2017 24 mos October 18, 2019 1.309%
Comenity Capital Bank 249,000.00 249,000.00 1.950%October 23, 2017 36 mos October 23, 2020 1.319%
Total Certificates of Deposit 3,822,996.91 3,822,996.91 20.255%
Agency Bonds
FICO Strip Principal 2,496,606.72 2,557,665.28 0.840%January 15, 2015 360 mos November 30, 2017 13.227%
Federal National Mortgage Assn 2,423,035.90 2,451,486.90 1.060%September 17, 2014 66 mos April 30, 2018 12.837%
Federal National Mortgage Assn 1,965,062.00 1,990,452.00 1.250%February 14, 2014 60 mos January 30, 2019 10.411%
FICO Strip Coupon 954,201.94 983,280.09 1.480%May 6, 2015 360 mos September 26, 2019 5.055%
Federal Home Loan Bank 1,502,338.50 1,474,777.50 1.200%July 13, 2016 48 mos July 13, 2020 7.960%
Total Agency Bonds 9,341,245.06 9,457,661.77 49.490%
TOTAL INVESTMENTS 18,874,770.12$ 18,991,186.83$ 100.000%
* Effective Interest Rate
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