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Home My WebLink About11/16/2011 - STAFF REPORTS - 2I v �QALM SpP iy a U N x x ro s x CObRR'R� C'Q<rFORlN�p City Council Staff Report DATE: November 16, 2011 CONSENT CALENDAR SUBJECT: TREASURER'S INVESTMENT REPORT AS OF AUGUST 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 August 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 $91,104,099 plus $17,321,637 in bond issue capital projects, reserve and debt service funds. The market value of the invested cash is $92,125,218. RECOMMENDATION: Receive and File Treasurer's Investment Report as of August 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 NO. City Council Staff Report November 16, 2011 — Page 2 Treasurer's Investment Report as of August 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 93 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 2L4� Geoffr�ey�. Diehl, Director of Finance and Treasurer Attachments: Treasurer's Investment Report 02 treasrep CITY OF PALM SPRINGS 1 012 6/20 11 TREASURER'S MONTHLY REPORT SUMMARY OF INVESTMENTS AUGUST 31, 2011 On Call Deposits Adjusted Basis Category Total Percentage Checking Account $ 3,942,505 State Pool 40,700,000 $ 44,542,505 48.89% Short Term Investments (I eaz or less) U.S.Gov't Agencies 43,063,000 43,063,000 47.27% Medium Term Investments (1 ear to 3 ears) U.S.Gov't Agencies 3,000,000 3,000,000 3.29% Long Term Investments (3 year to 5 years) U.S.Gov't Agencies 498,594 498,594 0.55% $ 91,104,099 100.00% 03 tmasrep TREASURER'S MONTHLY REPORT 10/26/2011 DETAIL OF INVESTMENTS AUGUST 31, 2011 Coupon Maturity or Yield Adjusted (memo mdy) Prior Qtr. Par Value Rate Rating Call Dale to Maturity Cost Basis Category Told Market Value Market Value On Call Deposits Checking-Bank of America $ N/A variable AAA open OA5% $ 3,842,5D5 $ 3,842,505 3.777,362 Local Agency Invest Fund(LAIF)r 40,700,000 variable N/A open 0,381% W,7W,000 56,916,027 57.790,962 44,542,505 S1wrt Term InvesMeots (1 ear or less) U.S.Gov't Agency Securities Federal Farm Credit Bank 1,000,00D 1,77% N/A MAts/11 L77% 0 0 I,",260 Federal National Mortgage Association I.00D,000 205% N/A 01/13/11 2.05% 0 0 1(100,580 Federal Home Loan Mortgage Corporation I,0W,(1W 2,38% N/A 07/20/I1 2.38% 0 0 1,001,160 Federal Home Loan Mortgage Corporation 11000,000 L63% N/A 07/21/11 1.63% 0 0 1,000,700 Federal Home Loan Mortgage Coporalion 1,000,000 1,10% N/A 07/22/11 1.10% 0 0 10W.480 Federal National Mortgage Association I,000,000 2.25% N/A 07/22/11 2.30% 0 0 1,001,150 Federal National Mortgage Association 1,0OD,000 1.W% N/A 07/29/I1 I.W% 0 0 11000,980 Federal Home Loan Bank 2,000,(1W 2.W% N/A 08/01/11 2.W% 0 0 1,986,300 Federal Home Loan Mortgage Corporation 11000,000 1,57% N/A 08/01/11 1.57% 1,0001" 1,OW,040 990,910 Federal Home Loan Bank 1,000,000 1.75% N/A 09/03/11 1.75% 1,0001" 1.000,090 997.7W Federal Farm Credit Bank 1,000,000 L88% N/A 08/17/11 L88% 0 0 1,002,5g0 Federal Home loan Mortgage Corporation 1,000,0W 200% N/A 08/25/I1 2.W% 0 0 998,520 Federal National Mortgage Association 2,000,000 1.63% N/A W/21/11 L63% 2,"," 2,001,220 2,005,240 Federal National Mortgage Association 2,000,000 1.60% N/A 09/28111 L60% 2,0W.0W 2.W1,580 2,005.4W Federal Faun Credit Bank 2,000,ODO 1,99% N/A 09130/11 1.99% 2,0p,00D 2,W2,660 2,000,3W Federal Home Loan Bank 2,000,000 2.20% N/A 09/30/11 2,20% 2,065,000 2,067,602 2,046,911 Federal Home Loan Mortgage Corporation 1,000,00t) 2.65% N/A ]0/14/11 2.65% 1,OW,00D 1,002,850 1,006,510 Federal Home Loan Mortgage Corporation 2,000,000 2.75% N/A 10/18111 2.75% 2,W0,000 2,006,3W 2,014.080 Federal Faun Credit Bank 2,000,000 1,85% N/A 11/15/11 1.85% 2,000,000 2,003,640 0 Federal Farm Credit Bank 2,000,000 1.62% N/A 11/16/II 1.62% 2,000,ODO 2,005,500 1,987,500 Federal Farm Credit Bank 1,000,(100 1.25% N/A 11/17/11 1.25% 1,Wg000 1,001,790 1,000,010 Federal National Mortgage Association 1,000,000 LSO% N/A 11/23111 L50% 1,000,OOD 1,011,110 982,70) Federal National Mortgage Association 2,000,000 L50% N/A 11/23/11 1.50% 2.000,0OD 2,005,680 1,%9,520 Federal National Mortgage Association I,OW,000 2,25% N/A 12/08/11 2.25% 1,000,000 1,004,500 997,000 Federal Home Loan Bank 2,000,000 2,02% N/A 12/29/11 2.02% 1,998,000 2,010,3)3 1,997,080 Federal National Mortgage Association 2,000,000 2.00% N/A 01/05/12 2.00% 2,000,000 2,009,160 0 Federal Farm Credit Bank I,000.000 L48% N/A 02/14/12 1,48% 1,",000 1.004,920 1,006,980 Federal Home town Bank 2,"." 1,50% N/A 02/22/12 1,50% 2,000,000 1,997,020 0 Federal Farm Credit Bank 2,OD%" 1,50% N/A 02/24/12 1.50% 2,000,000 2,001,520 0 Federal Home Loan Bank 2,000,000 1,55% N/A 02/24/12 1.55% 2,000.000 1,995,625 0 Federal Farm Credit Book 1,000,000 2.54% N/A 03/W/12 2.54% 1,000,000 1,013,370 1,013.840 Federal National Mortgage Association I,WO.WD 155% N/A 04/20/12 2.55% 1,000,01)) 1,013,750 1,013,ODO Federal National Mortgage Association 2,000,(1W L45% N/A 05/30/12 1.45% 2,000,000 2,015,460 1,966,180 Federal Home Loan Mortgage Corporation 2,000,OW 2.30% N/A 06/13/12 2,30% 2,ODO,000 21025,880 2,000,160 Federal Farm Credit Bank 2,000.OW L75% N/A W/15/12 1,75% 2,0110,00D 2,012,380 0 Federal Farm Credit Bank 2,000," 1.50% N/A 08/22/12 1.50% 2,000,OW 2,005,340 0 43,063,W0 Alli, treasrep TREASURER'S MONTHLY REPORT 10/26/2011 DETAIL OF INVESTMENTS AUGUST 31, 2011 Coupon Maturity or Yield Adjusted (memo only) Prior Ql, Par Value Rare Rating Call Dale to Maturity Cost Basis Category Total Market Value Markel Value Medium Term Investments (1 year to 3 years) U.S.Gov't Agency Securities Federal National Mortgage Association 2,"," 1,50% N/A 11/23/12 1.50% 2,000,000 2,015,680 1,969.520 Federal National Mortgage Association 1,010,010 2.50% N/A 04/18/13 2,50% 1,00Q000 1,030,0110 1,0151040 3.000A00 Long Term Investment (3 eare to 5 ears) U.S.Gov't Agency Securities Financing Corporation(FICO) 500,000 9.80% N/A 04/06/18 9.80% 498,594 738,585 714,170 498,594 $ 91,101,099 $107,752,156 $105,250,865 Total Invested Cash 'Includes the following deposits of pan City fulMs: Principal Imerest Total Palm Springs Historical Society 250,000 54,259 304.259 0 CA TREASURER'S MONTHLY REPORT treasrep MISCELLANEOUS AND TRUST ACCOUNTS 10/26/2011 AUGUST 31, 2011 Yield Adjusted Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total Total Invested Cash $ 91,104,099 $ 91,104,099 $ 91,104,099 Miscellaneous Accounts Petty Cash 3,750 N/A N/A open none 3,750 Revolving Fund-Bank of America 25,000 N/A N/A open none 25,000 Trust&Agency-Bank of America 926,733 N/A N/A open none 926,733 Downpayment Assistance(Housing Fund)-1P Morgan Chase 33,748 0.15% N/A open 0.15% 33,748 Workers Compensation-Bank of America* (25,404) N/A N/A open none (25,404) General Liability-Bank of America 30,000 N/A N/A open none 30,000 1930's General Store Museum-Bank of America 4,149 N/A N/A open none 4,149 On-Line Credit Card Transportation Permits- 2,364 N/A N/A open none 2,364 1,000,340 Bank of America De osits Held In Trust Time Deposits (FDIC Insured) BBVA Compass(Coyote Springs Apt) 20,780 1.09% N/A 6124/12 1.09% 20,780 20,780 Total Cash Deposited $ 92,125,218 *Timing due to replenishment of funds O C" TREASURER'S MONTHLY REPORT trererep BOND ISSUE RESERVE, DEBT SERVICE&RELATED FUNDS 18rz6/2011 AUGUST 31, 2011 Coupon Yield Adjusted (memo only) Prior Qt,. Par Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Market Value 1991/97/01/04 Convention Center Inveseo Government&Agency Private 13,430 variable AAA open 0.01% 13,430 13,430 13,430 Federal Home Loan Morgtgage Cooperation 5,465,000 4.125% N/A 9/27/13 1,93% 5,861,848 5,887,445 5,881,259 5,881,278 1991/01 Series B-Housing Invesco Government&Agency Private 28,842 variable AAA open 0.02% 28,842 28,842 28,841 Federal Home Loan Bank 420,000 4.625% N/A 10/10/12 1.38% 453,705 40,521 443,012 482,547 1994/04 Series A&B Inveseo Government&Agency Private 1,822,725 variable AAA open OA2% 1,822,725 1,822.725 34,319 Federal Home Loan Mortgage Corporation %5,000 4.125% N/A 9/27/13 L93% 1,036,134 1,039,595 1,040,251 Federal Home Loan Mortgage Corporation 571,000 4.125% N/A 9/27/13 1.93% 613,091 615,138 615,527 3.471,950 19M Airport PFC Inveseo Governownt&Agency Private 324,631 variable AAA open 0.02% 324,631 324.631 435,047 U.S.Treasury Nw, 918,000 1.3/5% N/A 3/15/13 1,55% 913,374 934,782 933,061 1,238,005 2001 Assessment District 157/158 lnvesco Government&Agency Private 172,038 variable AAA open 0.02% 172,038 172,038 172,032 172,038 2002 Parking Stmcture Cash 18 18 18 18 Invesco Govemmart&Agency Private 2,382 variable AAA open 0.01% 2,382 2,382 0 2,400 2004 Assessment District 161 Invesco Government&Agency Private 304,022 variable AAA open 0.02% 304,022 304,022 70,313 Key Bank National Association,Ohio 108,000 4.30% N/A 12/20/12 1,80% 115,105 113,333 113,774 CIT Bank,Salt Lake City,Utah 205.000 3,05% N/A 1/28/13 1.87% 211,607 212,312 212.667 630,734 0 TREASURER'S MONTHLY REPORT treasrep BOND ISSUE RESERVE, DEBT SERVICE&RELATED FUNDS 10/26n013 AUGUST 31, 2011 Coupon Yield Adjusted (menw only) Prior Qtr. Par Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Market Value 2004 Assessment District 162 Invesco Government&Agency Private 134,417 variable AAA open oml% 134,417 134,417 61,269 Capital One Bank USA National Association 88,000 4.15% N/A 3/5/13 1.80% 93,846 92,851 W.,v$3 228,262 2005 Assessment District 164 Invesco Government&Agency Private 282,687 variable AAA open 0.02% 282.687 282,687 94,535 Citizens Bank,Flint,Michigan 245,000 1.85% N/A 3/4/13 L80% 245.347 245,000 245,000 Capital One Bank USA National Association 25,000 4.15% N/A 3/5/13 1.80% 26,661 26,378 26,459 554,695 2006 Airport PFC Investo Government&Agency Private 343,230 variable AAA open 0.02% 343,230 343,230 1,167,199 U.S.Treasury Note 855,000 1.3/5% N/A 3/15/13 1.55% 850,692 870,630 869,027 1,193,922 2000 Merged Project pl&#2 love..Government&Agency Private 1.225,269 variable AAA open 0.01% 1,225.269 1,225,269 1,305,106 1,225,269 200/Refunding Lease Revenue Bonds Invesco Government&Agency Private 3 variable AAA open 0.01% 3 3 3 3 2008 Airport PFC Refunding lavesco Government&Agency Private 0 variable AAA Open 0.02% 0 0 12,437 Federal Home Loan Mortgage Corporation 603,000 C125% N/A 9/27/13 1.93% 647,450 649,612 650.022 6,17,450 Funds With Century Golf 1,593,086 1,593,086 1,593,086 2,020,406 1,593,086 Torsi, $ 17,321,637 $ 17,374,375 16,543,155 0 00 TREASURER'S MONTHLY REPORT CALCULATION OF INVESTMENT LIMITATIONS AUGUST 31, 2011 treasrep 10/26/11 Allowable Percentages By Maturity: Minimum Maximum Current Mo. 1 day to 365 days $8,000,000 N/A $87,605,505 1 year to 3 years 0.00% 50.00% 3.29% 3 years to 5 years 0.00% 30.00% 0.00% over 5 years N/A N/A 0.55% 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% 51.11% U.S. Treasury Notes/Bonds N/A N/A 0.00% 0 ca Calculation of Weighted Avg Maturity Mature Current No. of Days X Cost Date Date Days 40,786 40,787 40,786 1 3,842,505 40,787 40,786 1 40,700,000 40,732 40,786 0 0 40,737 40,786 0 0 40,744 40,786 0 0 40,745 40,786 0 0 40,746 40,786 0 0 40,746 40,786 0 0 40,753 40,786 0 0 40,756 40,786 0 0 40,756 40,786 0 0 40,758 40,786 -28 -28,000,000 40,772 40,786 0 0 40,780 40,786 0 0 40,807 40,786 21 42,000,000 40,814 40,786 28 56,000,000 40,816 40,786 30 60,000,000 40,816 40,786 30 61,950,000 40,830 40,786 44 44,000,000 40,834 40,786 48 96,000,000 40,862 40,786 76 152,000,000 40,863 40,786 77 154,000,000 40,864 40,786 78 78,000,000 40,870 40,786 84 94,000,000 40,870 40,786 84 168,000,000 40,885 40,786 99 99,000,000 40,906 40,786 120 239,760,000' 40,913 40,786 127 254,000,000 40,953 40,786 167 167,000,000 40,961 40,786 175 350,000,000 40,963 40,786 177 354,000,000 40,963 40,786 177 354,000,000 40,998 40,786 212 212,000,000 41,019 40,786 233 233,000,000 41,059 40,786 273 546,000,000 41,073 40,786 287 574,000,000 41,136 40,786 350 700,000,000 1 O 41,143 40,786 357 714,000,000 41,236 40,786 450 900,000,000 41,382 40,786 596 596,000,000 43,196 40,786 2,410 1,201,611,540 Total Investments at Cost 8,506,864,045 WAM in Days 91,104,099 93.38 11