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Home My WebLink About1/4/2012 - STAFF REPORTS - 2.B. o�pALM sp9 iy c Y N R �Oe `yM �ouno c4,(,Fog City Council Staff Report DATE: January 4, 2012 CONSENT CALENDAR SUBJECT: TREASURER'S INVESTMENT REPORT AS OF OCTOBER 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 October 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 $83,201,696 plus $18,462,889 in bond issue capital projects, reserve and debt service funds. The market value of the invested cash is $83,546,578. RECOMMENDATION: Receive and File Treasurer's Investment Report as of October 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 IITEM NM 2 City Council Staff Report January 4, 2012 — Page 2 Treasurer's Investment Report as of October 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 95 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 ;, /ar PLC Geoffrey S. Kiehl, Director of Finance and Treasurer Attachments: Treasurer's Investment Report 02 treasrep CITY OF PALM SPRINGS 12/12/2011 TREASURER'S MONTHLY REPORT SUMMARY OF INVESTMENTS OCTOBER 31, 2011 On Call Deposits Adjusted Basis Category Total Percentage Checking Account $ 2,005,102 State Pool 32,700,000 $ 34,705,102 41.71% Short Term Investments (1 ",I less) U.S.Gov't Agencies 45,998,000 45,998,000 55 28% Medium Term Investments (1 year to 3 ears) U.S.Gov't Agencies 2,000,000 2,000,000 2 40% Long Tenn Investments (3 ear to 5 ears) U.S.Gov't Agencies 498,594 498,594 0.60% $ 83,201,696 100.00% *Some investments made prior to the implementation of the current Investment Policy exceed the 5 year limit 03 treaarep TREASURER'S MONTHLY REPORT 12/12/2011 DETAIL OF INVESTMENTS OCTOBER 31,2011 Coupon Maturity or Yield Adjusted (memo only) Prior Qtr. Par Value Rate Rating Call Date to Maturity Cost Basis Category Total Markel Value Market Value On Call Deposits Checking-Bank of America S N/A variable AAA open 0.15% $ 2,005,102 8 2,005,102 3,777,362 Local Agency Invest Fund(LA1F)• 32,90Q000 variable N/A open 0 398% 32,700,000 32,760,416 34,705,102 Short Term Investments I year or less) U.S.Gov't Agency Securities Federal Home Loan Mortgage Corporation 1,000,000 265% N/A 10/14/11 265% 0 0 1,000,730 Federal Home Loan Mongage Corporation 2,000,000 2 75% N/A 10/18/11 2 75% 0 0 2,002,040 Federal Farm Credit Bank 2,000,000 185% N/A 11/I5/11 185% 2,000,000 2,001000 2,001,740 Federal Farm Credit Bank 2,000,000 1629/v N/A 11/I6/11 1.62% 2,000,000 2,001,320 2,003,780 Federal Farm Credit Bank I,000,000 125% N/A 11/I]/11 125% Lorm000 1000,380 1,001,130 Federal National Mortgage Association 2,000,000 1,50% N/A 11/23/11 150^/ 2,000,000 1,99 ,180 1,009,480 Federal National Mortgage Association 2000,000 1.50% N/A 11/23/11 1.50ts 2,000000 1990,480 1989,920 Federal Home Loan Bank 2,000,000 1.55% N/A IV02111 1.55% 2,000,000 1,984,880 1,984.660 Federal National Mongage Association 1000,000 225% N/A IV08/11 225% 1000,000 1,001,890 1,003070 Federal Home Loan Bank 2,000,0W 1.53% N/A 12/23/11 1.57% 2,000,000 2,000,560 2,000,120 Federal Home Loan Bank 2,000,000 1.52% N/A 12/28/11 1.52% 2,000,000 1992,800 1992,300 Federal Home Loan Bank 2,000,000 202% N/A IV29/11 202% 1,998000 2,W5,140 2,1103,400 Federal National Mortgage Association 2,000,000 2.OVI N/A 01/05/12 2.00% 2,000,000 2,005,240 2,007,360 Federal Farm Credit Bank 1000,000 160% N/A 01/19/12 I60% 1000,000 1002,050 0 Federal Home Loan Mortgage Corporation 2,OOQ000 1.509/ N/A 01/26/12 1.50% 2,000,000 1,993,438 0 Federal Farm Credit Bank 1,000,000 148% N/A 02/14/12 148% 1000,000 1003,300 1,004,190 Federal Home Loan Bank 2,000,000 I SO°/ N/A 02/212 1.50% 2000,000 1990,500 1,990,480 Federal Farm Credit Bank 2,000,000 1.50% N/A 02/24/12 1,50% 2,000,000 1,996,100 1,990,840 Federal Home loan Bank 2,000,000 1.55% N/A 0V24/12 1.55% 2,000,000 1989,040 1,988,980 Federal Home Loan Mortgage Corporation 2,000,000 1.55% NIA 03/01/12 1.55% 2,000,000 2,002,260 1,999,600 Federal Farm Credit Bank 1000,000 2.54% N/A 03/30/12 2,54% 1,000,000 1,009,890 1,011200 Federal National Mortgage Association 1000,000 2.55% N/A 04/20/12 2.55% 1000,000 1010,640 1,011940 Federal National Mortgage Association 2,000,000 145% N/A 05/30/12 145% 2,000,000 2,011590 2,012,860 Federal Home Loan Mortgage Corporation 2,000,000 230% N/A 06/13/12 230% 2,000,000 2,021,000 2,0221W Federal Farm Credit Bank 2,000,000 1.75% N/A O8115/12 175% 2,000,000 2,007,080 2,902,160 Federal I.Credit Bank 2,000,000 1.50% N/A O8/22/12 1.50% 2,000,000 1,999,780 1,994,540 Federal Farm Credit Bank 2,000,000 1.50% N/A 09/06/12 1.50% 2,000,000 2,W5,360 1999.840 Federal National Mortgage Association 2,000,000 1375% N/A 10/19/12 1.395% 2.000,000 1,994,520 0 45,998,000 Q nor aarep TREASURER'S MONTHLY REPORT 1 211 2/20 1 1 DETAIL OF INVESTMENTS OCTOBER 31,2011 Coupon Maturity or Yield Adjusted (memo only) Prior Qtr. Par Value Rate Rating Call Date to Maturity Cost Basis Category Total Market Value Market Value Medium Term Investments (I year to 3 years) US Gov-,Agency Securities Federal National Mortgage Association 1,000,000 1 50% N/A 11/23/12 1.50% 1,000,000 1,009,063 1,988,920 Federal National Mortgage Association 1000,000 2.50°n N/A 04/18/13 2.50% 1,0tio'No 1.027,740 1,028,150 2,000,000 Long Term Investment 3 ears to 5 ears U.S.Gov't Agency Securities Financing Corporation(FICO) 500,000 980% N/A 04/06/18 980(C 498,594 733,549 743,133 498,594 $ 83.201,696 $ 83,546,578 S 50,568,915 Total Invested Cash *Includes the following deposits ornon-City funds: Principal Interest Trial Palm Springs Historical Society 250,000 54,453 304,453 TREASURER'S MONTHLY REPORT treasrep MISCELLANEOUS AND TRUST ACCOUNTS 12/12/2011 OCTOBER 31, 2011 Yield Adjusted Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total Total Invested Cash $ 83 201,696 $ 83,201,696 $ 83,201 696 Miscellaneous Accounts Petty 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 918,870 N/A N/A open none 918,870 Downpayment Assistance(Housing Fund)-JP Morgan Chase 33,756 0.15% N/A open 0.15% 33,756 Workers Compensation-Bank of America 1,723 N/A N/A open none 1,723 General Liability-Bank of America 30,000 N/A N/A open none 30,000 1930's General Store Museum-Bank of America 2,662 N/A N/A open none 2,662 On-Line Credit Card Transportation Permits- 4,079 N/A N/A open none 4,079 1,014,840 Bank of America Total Cash Deposited $ 84,216,536 O U� TREASURER'S MONTHLY REPORT Ireasrap BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS IVIV201I OCTOBER 31,2011 Coupon Yield Adjusted (memo only) Prior Qo Par Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Market Value 1991/97/01/04 Convention Center Invesco Govemman[&Agency Private 3,756,455 variable AAA open 0.01% 3,756,455 3,756,455 126,145 Federal Home Loan Morgtgage Corporation 5,465,000 4.125% N/A 9/27/13 193% 5,867,848 5,850,884 5,865,748 1991/01 Series B-Housing 9,624,304 Ingo.Government&Agency Private 38,556 variable AAA open 0.02% 38,556 38,556 28,943 Federal Home Loan Bank 420,000 4625% N/A 10/10/12 138% 453705 437,245 438,766 1994/04 Series A&B 492,261 Irrvas..Government&Agency Private 34,095 variable AAA ope. 002% 34,095 34,095 34,095 Federal Home Loan Mortgage Corporation 965,000 4.125% N/A %27/13 193% 1,036,134 1,033,139 1,035,763 Federal Home Loan Mortgage Corporation 591,000 4125% N/A 9/2V13 1,93% 613,091 611,318 612,971 1998 Airport PLC 1,683,320 lovesco Government&Agency Private 471,149 variable AAA open 0,02% 471,749 471?49 401345 U.S_Treasury Note 918,000 1375% N/A 3/IS/13 1 55% 913,374 932,774 933,061 2001 A6%66mEnt District1$2/I58 ,385,123 Invest.Government&Agency Private 167,663 variable AAA .,an 0.02% 167663 167,663 167,660 2002 Parking Structure 167,663 Cash I 4 Inv..Government&Agency Private 2,261 variable AAA open 0 01°0 2,261 2,261 15 2,262 0 TREASURER'S MONTHLY REPORT treasrep BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS 12/12/2011 OCTOBER 31,2011 Coupon Yield Adjusted (memo only) Prior Orr Par Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Market Value 2004 Assessment District 161 Invesco Government&AM,Private 73,419 variable AAA open 0 02% 73,418 73,418 ]3,41] Key Bank National Association,Ohio 108,000 430% N/A 12/20/12 L80% 115,105 112,418 112291 CIT Bank,Salt Lake City,Utah 205,000 3.05% N/A 1/28/13 1.87% 211,607 210,997 210,501 2004 Assessment District 162 400,130 Invesco Government&Agency Private 68,121 variable AAA open 0.01% 68,121 68,121 68,120 Capital One Bank USA National Association 88,000 4.15% N/A 3/5/13 1,80% 93846 92,129 91,995 2005 Assessment District 164 61,967 Invesco Government&Agency Private 96,580 variable AAA open 0.02% 96,580 96,580 96,205 Citizens Bank,Flint,Michigan 245,000 1.85% N/A 3/4/13 1.80% 245,347 245,000 245,000 Capital One Bank USA National Association 25,000 415% WA 3/5/13 1.80% 26,661 26,193 26,135 369,588 2006 Airport PFC Invesco Government&Agency Private 598,278 variable AAA open 0021% 598,278 598,278 473,692 U.S.Treasury Note 855,000 1.375% N/A 3/15/13 155% 850692 868,760 869,027 2007 Merged Project ql&#2 ,448,970 Iuvcsco Government&Agency Private 1,040,1 W variable AAA open 0.01% 1,040,167 1,040,167 1,225,290 2007 Refnding Lae Revenue Bonds ,040,167 Invesco Government&Agency Private I variable AAA open 0 01% 1 1 358,950 1 2008 Airport PFC Refunding lavesco Government&Agency Private 12,437 variable AAA open 002% 12,437 12,437 12,437 Federal Home Loan Mortgage Corporation 603,000 4.125% N/A 9/27113 1.93% 647450 645,578 647,218 659,88] Funds With Century Golf 1028,247 1,028,247 - 1,028,247 1,028,247 1,02824] Totals $ 18,462,989 $ 18,454,444 $15,182,842 0 TREASURER'S MONTHLY REPORT CALCULATION OF INVESTMENT LIMITATIONS OCTOBER 31, 2011 treasrep 12/12/11 Allowable Percentages By Maturity: Minimum Maximum Current Mo. 1 day to 365 days $8,000,000 N/A $80,703,102 1 year to 3 years 0.00% 50.00% 2.40% 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% 58.29% U.S. TreasuryNotes/Bonds N/A N/A 0.00% 0 ca Calculation of Weighted Avg Matunty Mature Curtent No.of Days X Cost Date Date Days 40,847 40,848 40,847 1 2,005,102 40,848 40,847 1 32,700,000 40,830 40,847 -17 0 - 40,834 40,847 -13 0 40,862 40,847 15 30,000,000 40,863 40,847 16 32,000,000 40,864 40,847 17 17,000,000 40,870 40,847 23 46,000,000 40,870 40,847 23 46,000,000 40,879 40,847 32 64,000,000 40,885 40,847 38 38,000,000 40,900 40,847 53 106,000,000 40,905 40,847 58 116,000,000 40,906 40,847 59 117,882,000 40,913 40,847 66 132,000,000 40,927 40,847 80 80,000,000 40,934 40,847 87 174,000,000 40,953 40,847 106 106,000,000 40,961 40,847 114 228,000,000 40,963 40,847 116 232,000,000 40,963 40,847 116 232,000,000 40,969 40,847 122 244,000,000 40,998 40,847 151 151,000,000 41,019 40,847 172 172,000,000 41,059 40,847 212 424,000,000 41,073 40,847 226 452,000,000 41,136 40,847 289 578,000,000 41,143 40,847 296 592,000,000 41,158 40,847 311 622,000,000 41,201 40,847 354 708,000,000 41,236 40,847 389 389,000,000 41,382 40,847 535 535,000,000 43,196 40,847 2,349 1,171,197,306 Total Investments at Cost 7,869,784,408 WAM in Days 83,201,696 1 94.59