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Home My WebLink About2/1/2012 - STAFF REPORTS - 2E �OF P ALM sO9 C c V N I004<1F0 Cg41FOst City Council Staff Report DATE: February 1, 2012 CONSENT CALENDAR SUBJECT: TREASURER'S INVESTMENT REPORT AS OF DECEMBER 31, 2011 FROM: Geoffrey S. Kiehl, Director of Finance and Treasurer BY: Department of Finance and Treasury SUMMARY Attached is the Treasurer's Investment Report as of December 31, 2011. The report includes the face value and coupon rate (if applicable) of the investments and the source for the market value estimate. The City's total invested cash is $82,626,408 plus $14,966,938 in bond issue capital projects, reserve and debt service funds. The market value of the invested cash is $83,064,573. RECOMMENDATION: Receive and File Treasurer's Investment Report as of December 31, 2011. STAFF ANALYSIS: The attached report includes the face value and coupon rate (if applicable) of the investments and the source for the market value estimate. Also included is information on the investments of bond issue reserve, debt service and related funds. The investments, in type, maturity and as a percentage of the total portfolio, are in compliance with the existing City Council-approved investment policy with one exception: the FICO notes ($500,000, 4/16/18, 9.8%) exceed the 5 year limitation on maturities (Detail of Investments, Long Term Investments, U.S. Govt. Agency Securities). The investment in question was purchased prior to the adoption of the 5-year limitation. Since it appears to represent no additional risk either because of credit-worthiness or liquidity, earlier councils decided to allow it to be retained in the investment pool because the yield is higher than attainable ITEM N0. City Council Staff Report February 1, 2012 — Page 2 Treasurer's Investment Report as of December 31, 2011 under current market conditions. We recommend that this exception to the policy be continued. The weighted average maturity (WAM) of the portfolio is 78 days. The maximum WAM allowed by the Investment Policy is 1095 days. The current portfolio and expected revenue cash flow will be sufficient to meet budgeted expenditure requirements for the next six months and the foreseeable future thereafter. FISCAL IMPACT: None &0� / -u- Geoffrey S. Kiehl, Director of Finance and Treasurer Attachments: Treasurer's Investment Report 02 treasrep CITY OF PALM SPRINGS 1/23/2012 TREASURER'S MONTHLY REPORT SUMMARY OF INVESTMENTS DECEMBER 31, 2011 On Call Deposits Adjusted Basis Category Total Percentage Checking Account $ 2,627,814 State Pool 37,500,000 $ 40,127,814 48.57% Short Term Investments (1 year or less) U.S.Gov't Agencies 41,000,000 41,000,000 49.620% Medium Term Investments (1 yearto 3 years) U.S.Gov't Agencies 1,000,000 1,000,000 1.21% Long Term Investments (3 year to 5 years) U.S.Gov't Agencies 498,594 498,594 0.60% $ 82,626,408 100.00% *Some investments made prior to the implementation of the current Investment Policy exceed the 5 yew limit 03 neasrev TREASURER'S MONTHLY REPORT 123/2012 DETAIL OF INVESTMENTS DECEMBER 31,2011 Coupon Maturity or Yield Adjusted (memo only) Prior Ql,. Par Value Rate Rating Call Date to Maturity Cost Basis Category Total Marker Value Market Value On Call Deposits Checking-Bank of America $ N/A variable AAA open 0.15% $ $2,627,814 $ 2,627,814 3777,362 Local Agency Invest Fund(IMF)' 39,500,W0 variable N/A open 0.37e% 37,500,000 37,561,950 37,268,730 40,129,814 Short Serra Investments 1 ear or less) U.S.Gott Agency Securities Federal Home Loan Mortgage Corporation I,OW,ow 265% N/A 10/14/11 265% 0 0 10W,730 Federal Home Loan Mortgage Corporation 2,00,O00 275% N/A 10/18/11 275% 0 0 2,002,040 Federal Farm Credit Bank 2,OW,OW 1,85% WA 11/15/11 185% 0 0 2,001,740 Federal Farm Credit Bank 2,00LOW 162% N/A 11/16/11 1.62% 0 0 2,003,780 Federal Farts Credit Bank 1001 125% N/A 11/I7/11 125% 0 0 1001,130 Federal National Mortgage Association 2,WO,00O 150°a N/A 11/23/11 L50°/ 0 0 1,009,480 Federal National Mortgage Association 2,00O,0O 1.50% N/A 11/23/11 150°u 0 0 1988,920 Federal Home Loan Bank 2,0(QW0 1.55% N/A 12/02/11 1,55% 2,000,000 2,O00,W0 1,984,660 Federal National Mortgage Association I,000,W0 225% N/A 12/08/11 225% 0 0 1,003,070 Federal Home Loser Bank 2,OOO,000 15J% N/A 12/23/11 L57% 2,000,000 2,000,060 2,000,120 Federal Home Loan Bank 2,000,000 152% WA IV28/11 1.52% 2,000,000 2,OW,060 1,992,300 Federal Home Loan Bank 2,000,000 2.02% N/A 1V29/11 202% 0 0 2,007,400 Federal National Mortgage Association 2,000,000 200% N/A 01/05/12 2.00% 2,000,000 2,000,180 2,007,360 Federal Farm Credit Bank 1,00000 1.60% N/A 01119J12 160% 1,000,000 1,000,610 0 Federal Home Loan Mortgage Corporation 2,050,000 1.50°n N/A 01/26/12 1.50% 2,000,000 2.001,400 0 Federal Farm Credit Bank 1,000,000 148% N/A 02114112 148% 1,OW,OW I,W1,340 1,004,180 Federal Home Loan Bank 2,WO,WO 1.501/ N/A OV22/12 150% 2,000,000 2,WI980 1,990,490 Federal Farm Credit Bank 2,000,000 1501% WA 02/2112 1.50% 2,000,OW 2,002,340 1,990,840 Federal Home Loan Bank 2,000,000 1.55% N/A 0V24/12 1.55% 2,000,000 2,00I840 1988,980 Federal Home Loan Mortgage Corporation 2,000,000 1.55% N/A 03/01/12 1.55% 2,000,001) 2,W2,760 1,999,600 Federal Farm Credit Bank 1000,000 2.54% N/A 03/30/12 2.54% 1,000,000 1,005,840 1,011,200 Foleral National Mortgage Association 1000,W0 2.55% N/A 04/20/12 2.55% 1,000,000 1,006,660 1,011,840 Federal Home Loan Mortgage Corporation 2,000,W0 175% N/A 05/09/12 195% 2,000,000 2,OO7,500 0 Federal Home Loan Mortgage Corporation 1,000,WO 1.80% N/A 05/09A2 1.80% 10W,000 1003,860 0 Federal National Mortgage Association 2,OW,W0 145% N/A 05/30/12 1.45% 2,000,000 2,08,980 2,012,860 Federal National Mortgage Association IOW,OW 1.30% N/A W/15/12 1.501% 1,OW,OW I,W1,3% 0 Federal Home Loan Mortgage Corporation 2,OW,000 2.30% N/A O6/13/12 2301. 2,08Q000 2,016,250 2,022,100 Federal Farm Credit Bank 2,000,00m 175% N/A O8/15/12 175% 2,W0,000 2,011,990 2,002,160 Federal Farm Credit Bank 2,000,OW 1.501' N/A O8/22/12 150°n 2,000,0(0 2,009,860 1994,540 Federal Fann Credit Bank 2,000,000 1501% N/A 09/06/12 1.SW/ 2,000,000 2,011,860 1,999,840 Federal National Mortgage Association 2,000,000 1375% N/A 10/19/12 1.375% 2,W0,000 1,997,320 0 Federal National Mortgage AssoGation 2,WO,000 130% N/A 10/24/12 IJnot, 2,000,000 2,011,860 0 Federal National Mortgage Association 1,00,000 1.50% N/A 11/23/12 1.50% 1,000000 1,008,320 1,988,920 41,OW,000 C? tremoct, TREASURER'S MONTHLY REPORT 1/23/2012 DETAIL OF INVESTMENTS DECEMBER 31,2011 Coupon Maturity or Yield Adjusted (memo only) Prior Qta f- Par Value Rate Rating Call Date to Maturity Cost Basis Category Total Market Value Market Value pv edlum]'etm: ments (1 year to 3 y1ear0Os)t U.S.Gov't Agency Securities Federal National Mortgage Association 100,000 2.50% N/A W/18/13 3.50% 1000,000 1,025,700 1,028,150 law'" Long Term Investment (3 ears o 5 ears U.S.Gov't Agency Securities Financing Corporation(FICO) 500,000 9.80% N/A 04/06/I8 9.80% 498,594 734,799 743,133 498,594 $ 82,626,408 $ 83,064,573 $ 8],83],645 Total Invested Cash *Includes the following deposits of non-City funds Principal Interest Total Palm Springs Historical Society 250,000 54,652 304,652 U1 TREASURER'S MONTHLY REPORT treasrep MISCELLANEOUS AND TRUST ACCOUNTS 1/23/2012 DECEMBER 31, 2011 Yield Adjusted Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total Total Invested Cash $ 82,626,408 $ 82,626,408 $ 82,626,408 Miscellaneous Accounts Petry Cash 3,750 N/A N/A open none 3,750 Revolving Fund-Bank of America 20,000 N/A N/A open none 20,000 Trust&Agency-Bank of America 1,048,845 N/A N/A open none 1,048,845 Do"payment Assistance(Housing Fund)-JP Morgan Chase 33,764 0.15% N/A open 0.15% 33,764 Workers Compensation-Bank of America 1,843 N/A N/A open none 1,843 General Liability-Bank of America 29,267 N/A N/A open none 29,267 1930's General Store Museum-Bank of America 5,902 N/A N/A open none 5,835 On-Line Credit Card Transportation Permits- 4,634 N/A N/A open none 4,634 1,147,939 Bank of America Total Cash Deposited $ 83,774,347 O TREASURER'S MONTHLY REPORT rreaanet, BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS 123/2012 DECEMBER 31,2011 Coupon Yield Adjusted (memo only) Prior Out, Par Value Rate Rating Maturity to Maturity Coat Basis Category Total Market Value Market Value 1991/97/01/04 Convention Center lovesco Goverment&Agency Private 20,363 variable AAA open 001% 20,363 - 20,363 126,145 Federal Home Loan Morgtgage Coporation 5,465,000 4.125% N/A 9/27/13 1.93% 5,867,848 5,815,Wg 5,865,748 5,888,211 1991/01 Senea B-Housing Inveaco Government&Agency Private 38,558 variable AAA up. 002% 38,558 38.558 28,943 Federal Home Loan Bank 420,000 4.625% N/A 10/10/12 1.38% 453,705 434,314 438,766 492.263 1994/04 Series A&B I..Govemmrnt&Agenry Private 34096 variable AAA open 0.02% 34,096 34,096 34,W5 Federal Home U.Mortgage Corporation 965,OW 4.125% N/A 9/27/13 193% 1,036,134 1,026,%3 1035,763 Federal Home Lon Mortgage Corporation 571,000 4,125% N/A 9/27/13 1.93% 613091 607,664 612,871 1,683,321 1998 Airport PFC Inveaeo Government&Agent'Private 612,571 variable AAA open 0.02% 612,571 612,571 401,345 O.S.Treasury Note 918,000 1,375% N/A 3/15/13 1.55% 913,374 931,091 933,061 1,525,945 2001 Amesame rt Matrim 157/158 Invesw Government&Agency Private 167.672 variable AM open 0.02% 167,672 167,672 167,660 167.672 2W2 Parking Structure Cash 3 3 3 4 Invesco Government&Agency Private 2.6% variable AAA open 0.01% 2,696 2,696 15 2,699 2004 Aseessment District 161 Inveaco Government&Agency Private 75,750 variable AAA 'an 0 02% 75,750 75,750 73,417 Key Bank National A ociaion,Ohio 10g,OW 4.30% N/A 12/20/12 1.80% 115,105 111,422 112,291 CrI Bank,Salt Lake City,Utah 205,000 3 05% N/A 1/29113 1 67% 211,607 20,294 210,501 402,462 0 TREASURER'S MONTHLY REPORT Mon., BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS l/23/2012 DECEMBER 31,2011 Coupon Yield Adjusted (memo only) Prior Qtr. Par Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Market Value 20M Assessment District 162 Invesco Government&Agency Private 68,124 Variable AAA open 0.01% 68,124 68,124 68,120 Capital One Bank USA National Association 88,0W 4,15% N/A 3/5/13 180"b 93,846 91,215 91,W5 161,9'!0 2W5 Assessment District IM - lovesco Government&Agency Private 99,342 variable AAA open 0 02% 97.342 97,342 96,205 Citizens Bank,Flint,Michigan 245,OW 1,85% N/A 3/4/13 1 8090 245,347 M5,000 245,OW Capital One Bonk USA National Assacation 25,OW 4.15% N/A 3/5/13 180% 26,661 25,913 26,135 369,350 2006 Airport PFC Inveecr,Government&Agency Private 847,471 variable AAA open 0 02% 947,471 847,471 473,692 U.S.Treasury Note 855000 1375% N/A 3/15/U 1.55% 850,692 861,192 869,027 1,698,163 2W7 Merged Project kl At n Invesco Government&Agency Private 1,028,57/ variable AAA open 001% 1,028,577 1,028,577 1,225,290 1,028,5]l 2W7 Refunding Lease Revenue Balls Inveaw Government&Agency Pmate 1 varisble AAA open 0,01% 1 1 358,950 1 2W8 Airport PFC Refueling Investor,Government&Agency Private 12,437 variable AAA open 002% 12,433 12,437 12,437 Federal Home Loan Mortgage Corporation 603,0W 4.125% N/A 9/27/13 193% 647,450 641,719 647,218 659,887 Funds With Century Golf 986,416 986,416 886,416 1028,247 886.416 Totals S 14,966,938 $ 14,899,703 115,182,842 IO TREASURER'S MONTHLY REPORT CALCULATION OF INVESTMENT LIMITATIONS DECEMBER 31, 2011 treasrep O1/23/12 Allowable Percentages By Maturity: Minimum Maximum Current Mo. 1 day to 365 days $8,000,000 N/A $81,127,814 1 year to 3 years 0.00% 50.00% l.21% 3 years to 5 years 0.00% 30.00% 0.00% over 5 years N/A N/A 0.60% By Type of Investment: Bankers Acceptance - in total N/A 40.00% 0.00% Bankers Acceptance - single bank N/A 20.00% 0.00% Commercial Paper N/A 15.00% 0.00% Certificates of Deposit N/A 30.00% 0.00% Corporate Notes N/A 20.00% 0.00% Money Market Mutual Funds N/A 10.00% 0.00% Mortgage Pass Thrus N/A 10.00% 0.00% U.S. Government Agencies N/A 60.00% 51.43% U.S. Treasury Notes/Bonds N/A N/A 0.00% 0 Calculation of Weighted Avg Maturity Mature Current No.of Days X Cost Date Date Days 40,908 40,909 40,908 1 2,627,814 40,909 40,908 I 37,500,000 40,830 40,908 -78 0 40,834 40,908 -74 0 40,862 40,908 46 0 40,863 40,908 45 0 40,864 40,908 44 0 40,870 40,908 -38 0 40,870 40,908 -38 0 40,879 40,908 -29 -58,000,000 40,885 40,908 .23 0 40,900 40,908 -8 -16,000,000 40,905 40,908 -3 6,000,000 40,906 40,908 -2 0 40,913 40,908 5 10,000,000 40,927 40,908 19 19,000,000 40,934 40,908 26 52,000,000 40,953 40,908 45 45,000,000 40,961 40,908 53 106,000,000 40,963 40,908 55 110,000,000 40,963 40,908 55 110,000,000 40,969 40,908 61 122,000,000 40,998 40,908 90 90,000,000 41,019 40,908 111 111,000,000 41,038 40,908 130 260,000,000 41,038 40,908 130 130,000,000 41,059 40,908 151 302,000,000 41,075 40,908 167 167,000,000 41,073 40,908 165 330,000,000 41,136 40,908 228 456,000,000 41,143 40,908 235 470,000,000 41,158 40,908 250 500,000,000 41,201 40,908 293 586,000,000 41,206 40,908 298 596,000,000 41,236 40,908 328 328,000,000 41,382 40,908 474 474,000,000 43,196 40,908 2,288 1,140,783,072 Total Investments at Cost 6,474,910,886 WAM in Days 82,626,408 78,36 10