CC 2020-10-27_08b Statement of Investment Deposits
MEMORANDUM
TO: CITY COUNCIL
FROM: MICHAEL STEVENS, ADMINISTRATIVE SERVICES DIRECTOR
BY: NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF STATEMENT OF INVESTMENT DEPOSITS
DATE: OCTOBER 27, 2020
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 September 30, 2020, as required
by Government Code Section 53646(b).
BACKGROUND:
This report represents the City’s investments as of September 30, 2020. 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, 2020, the investment portfolio
was in compliance with all State laws and the City’s investment policy.
ANALYSIS OF ISSUES:
The Administrative Services department 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).
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CITY COUNCIL
CONSIDERATION OF INVESTMENT DEPOSITS
OCTOBER 27, 2020
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:
1. Approve staff’s recommendation to receive and file the attached report listing the
investment deposits.
2. Do not approve staff’s recommendation; or
3. 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: September 30, 2020
Item 8.b. - Page 2
ATTACHMENT 1City of Arroyo Grande300 E. Branch St.Arroyo Grande, CA 93420Phone: (805) 473-5400CITY OF ARROYO GRANDEPortfolio ManagementPortfolio SummarySeptember 30, 2020InvestmentsPrincipal ValueCurrent Market Value Interest Rate Date of PurchaseTerm Maturity Date% of PortfolioLocal Agency Investment Fund10,026,619.80$ 10,026,619.80$ 1.363%51.099%Certificates of DepositPacific Premier Bank 106,005.52 106,005.52 2.260% February 21, 2020 12 mos February 21, 2021 0.540%Capital One Bank USA247,000.00 247,000.00 2.000% October 18, 2017 36 mos October 19, 2020 1.259%Comenity Capital Bank249,000.00 249,000.00 1.950% October 23, 2017 36 mos October 23, 2020 1.269%Bank Hapoalim New York247,000.00 247,000.00 2.100% July 19, 2019 24 mos July 19, 2021 1.259%Texas Exchange Bank248,000.00 248,000.00 1.000% March 25, 2020 24 mos March 25, 2022 1.264%CIT Bank NA248,000.00 248,000.00 1.050% March 28, 2020 24 mos March 28, 2022 1.264%Firstbank Puerto Rico249,000.00 249,000.00 1.700% October 25, 2019 30 mos April 25, 2022 1.269%Ally Bank247,000.00 247,000.00 2.150% July 22, 2019 36 mos July 22, 2022 1.259%TIAA FSB Jacksonville247,000.00 247,000.00 2.100% July 12, 2019 36 mos July 12, 2022 1.259%Sallie Mae Bank/Salt Lake247,000.00 247,000.00 1.900% October 3, 2019 36 mos October 3, 2022 1.259%Eaglebank Bethesda Maryland249,000.00 249,000.00 1.850% October 4, 2019 36 mos October 4, 2022 1.269%Goldman Sachs Bank USA247,000.00 247,000.00 1.850% October 24, 2019 36 mos October 24, 2022 1.259%1st Security Bank Washington249,000.00 249,000.00 1.700% October 4, 2019 42 mos April 4, 2023 1.269%Morgan Stanley Private Bank247,000.00 247,000.00 2.250% July 11, 2019 45 mos July 11, 2023 1.259%Merrick Bank249,000.00 249,000.00 1.800% October 16, 2019 48 mos October 16, 2023 1.269%Enerbank USA247,000.00 247,000.00 1.850% October 25, 2019 60 mos October 25, 2024 1.259%Flagstar Bank245,000.00 245,000.00 0.850% May 15, 2020 60 mos May 15, 2025 1.249%Total Certificates of Deposit4,068,005.52 4,068,005.52 20.732%Agency BondsFederal Farm Credit Bank2,500,000.00 2,605,730.00 1.600% November 1, 2019 48 mos November 1, 2023 12.741%Federal Farm Credit Bank2,025,000.00 2,030,431.05 1.830% December 26, 2019 64 mos June 3, 2024 10.320%Federal Farm Credit Bank1,002,184.00 1,002,117.00 1.125% March 17, 2020 60 mos March 17, 2025 5.108%Total Agency Bonds5,527,184.00 5,638,278.05 28.169%TOTAL INVESTMENTS19,621,809.32$ 19,732,903.37$ 100.000%* Effective Interest RateItem 8.b. - Page 3
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