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Home My WebLink About10/19/2011 - STAFF REPORTS - 2.N. � QeALMsp,P iy w Q Y N cq<IPORN% City Council Staff Report DATE: October 19, 2011 CONSENT CALENDAR SUBJECT: TREASURER'S INVESTMENT REPORT AS OF JULY 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 July 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 $97,513,592 plus $15,172,619 in bond issue capital projects, reserve and debt service funds. The market value of the invested cash is $98,109,301. RECOMMENDATION: Receive and File Treasurer's Investment Report as of July 31, 2011. STAFF ANALYSIS: The attached report includes the face value and coupon rate (f 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.__9►� -- City Council Staff Report October 19, 2011 — Page 2 Treasurer's Investment Report as of July 312011 under current market conditions. We recommend that this exception to the policy be continued. The weighted average maturity (WAM) of the portfolio is 72 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 Geoffrey S. KiehIrDirector of Finance and Treasurer Attachments: Treasurer's Investment Report 02 treasrep CITY OF PALM SPRINGS 10/4/2011 TREASURER'S MONTHLY REPORT SUMMARY OF INVESTMENTS JULY 31, 2011 On Call Deposits Adjusted Basis Category Total Percentage Checldng Account $ 2,251,998 State Pool 56,700,000 $ 58,951,998 60.46% Shore Term Investments (1 ear or less) U.S.Gov't Agencies 35,063,000 35,063,000 35.96% Medium Term Investments (1 year to 3 ears) U.S. Gov't Agencies 3,000,000 3,000,000 3.08% Long Term Investmetns (3 year to 5 ears) U.S. Gov't Agencies 498,594 498,594 0.51% $ 97,513,592 100.00% *Some investments made prior to the implementation of the current Investment Policy exceed the 5 year limit 03 treaarep TREASURER'S MONTHLY REPORT 10/4/2011 DETAIL OF INVESTMENTS JULY 31, 2011 Coupon Maturity or Yield Adjusted (memo only) Prior Qn, Par Value Rate Rating Call Date to Maturity Cost Basis Category Total Market Value Source Market Value On Call Deposits Checking-Bank of America $ N/A variable AAA two 0.15% $ 2,251.998 8 2,251,998 8 3,777,362 Local Agency Invest Fund(LAIF)a 56,700,000 variable N/A open 0.381% 56,700,000 56,916,027 LAIF 57,790,962 58,951,998 Short Tenn Investments (I yeaser or less) U.S.Gov't Agency Securities Federal Farm Credit Bank 11000,000 1.77% N/A 07/09/11 1,77% 0 0 Bank of NY Mellon 1,000,260 Federal National Mortgage Association I,OD0,000 2.05% N/A O//13/11 2.05% 0 0 Bank of NY Mellon 1,000,580 Federal Home loan Mortgage Corporation 11000,000 2.38% N/A 0//20/11 2.38% 0 0 Bank of NY Mellon 1,001,160 Federal Home luau Mortgage Corporation 11000,000 1.63% N/A W7 1/11 1,63% 0 0 Bank of NY Mellon 1,000,700 Federal Home loan Mortgage Corporation 11000,000 1.10% N/A 07/22/11 1.10% 0 0 Bank of NY Mellon 1,000,480 Federal National Mortgage Association 11"lo10 2.25% N/A 07/22/11 2.30% 0 0 Bank of NY Mellon 1,001,150 Federal National Mortgage Association 1,000,000 1.60% N/A 0/29/11 1.60% 0 0 Bank of NY Mellon 11000,980 Federal Home Loan Bank 2,000.000 2.00% N/A 08/01/I1 2.00% 2,000,000 2,(k30,180 Bank of NY Mellon 1,986,300 Federal Home Loan Mortgage Corporation 11000,000 1,57% N/A O8101/11 1.57% 110001" l'",090 Bank of NY Mellon 990,910 Federal Home Loan Bank 1,000,000 1.75% N/A 08/03/11 1.73% 1,000,000 1,000,100 Bank of NY Mellon 997,760 Federal Fans Credit Bank 1,000,00D 1.88% N/A O8/17/11 1.88% 1,000,000 1,000,850 Bank of NY Mellon 1,002,580 Federal Home Loan Mortgage Corporation 11000,000 2.00% N/A 08/25/11 2.0D% 1,000,000 1,001,130 Bank of NY Mellon 998.320 Federal National Mortgage Association 21000,000 1.63% N/A 09/2l/ll 1.63% 2,000,000 2,002,813 Bank of NY Mellon 2.005,240 Federal National Mortgage Association 2,OOO,000 1.60% N/A 09/28/11 1,60% 2,000,000 2,003,020 Bata of NY Mellon 2,005,420 Federal Farm Credit Bank 2,000,000 1.99% N/A 09/30/l1 1.99% 2,000,000 2,OD5,960 Barak of NY Mellon 2,ODO.300 Federal Home Loan Bank 2,000,000 2.20% N/A 09/30/11 2,20% 2,065,000 2,068,676 Bank of NY Mellon 2,046,911 Federal Home loan Mortgage Corporation 11000,000 2.65% N/A 10/14/11 2.65% I,00D,000 1,004,620 Bank of NY Mellon 1,006,510 Federal Home Loan Mortgage Corporation 2,000,000 2.75% N/A 10/18/11 2.73% 2,000.000 2.OD9,960 Back of NY Mellon 2,014,080 Federal Farm Credit Bank 2,000,OD0 1.62% N/A 11/16/11 1.62% 2,000,000 2,008,060 Bank of NY Mellon 1,987,500 Federal Farm Credit Bank 1,000,OD0 1.25% N/A 11/17/11 1,25% I,000,000 1,002,390 Bank of NY Mellon 1,000,010 Federal National Mortgage Association 1,000,ODO 1.50% N/A l l/23/11 1.50% I.00D,000 999,090 Bank of NY Mellon 982,700 Federal National Mortgage Association 2,000,000 1.50% N/A 11/23111 1.50% 2,OOO," 2,001,540 Bank of NY Mellon 1.969,520 Federal National Mortgage Association 11000,000 2.25% N/A 12/08/I l 2.25% 1,000,000 1,005,340 Bank of NY Mellon 997,000 Federal Home loan Bank 2,000,000 2.02% N/A 12/29/11 2,02% 1,998,000 2,011,320 Bank of NY Mellon 1,987.090 Federal National Mortgage Association 2,000,000 2,00% N/A 01/OS/12 2.00% 2,000,000 2,OD8,840 Bank of NY Mellon 0 Federal Farm Credit Bank 1,000,OD0 1.49% N/A 02/14/12 1.48% 1,000,000 1,005,180 Bank of NY Mellon 1,006,980 Federal Fart Credit Bank 11000,000 2.M% N/A 03/30/12 2,54% 11000,000 I,014,680 Bank of NY Mellon 1,013,940 Federal National Mortgage Association 110001000 2.55% N/A 04/20/12 2.55% 1,000,000 1.014,720 Bank of NY Mellon 1,013,M Federal National Mortgage Association 21000,000 1,45% N/A 05/30I12 1.45% 2,000," 1,998,600 Bank of NY Mellon 1,966,180 Federal Home Loan Mortgage Corporation 2,000,OD0 2.30% N/A 06/13/12 2.30% 2,OOD,000 2,020,840 Bank of NY Mellon 2,0D0,160 35,063,000 XI tree:rep TREASURER'S MONTHLY REPORT 10/4/2011 DETAIL OF INVESTMENTS JULY 31, 2011 Medium Term Investments (1 year to 3 years) U.S.Gov't Agency Securities Federal National Mortgage As naion 2,",000 1.50% N/A 11/23/12 1.50% 2,000.(100 2,001,540 Bank of NY Mellon 1,969,520 Federal National Mortgage Asmciation 1,000,000 2.50% N/A 04/18/13 2.50% 1,000,000 1,027,t10 Bank of NY Mellon 1,015,040 3,000,000 Long Term lnvesunent 3 yearn to 5yew) U.S.Gov't Agency Securities Financing Corporation(FICO) 500,000 9.80% N/A 04/06/18 9.80% 498,594 724,628 Bank of America 714,170 498,594 $ 9/,513,592 E 91,109.301 $105,250,865 Total Invested Cash *Includes the following deposits of non-City funds: Principal Interest Total Palm Springs Historical Society 250,M 54,150 304,150 C TREASURER'S MONTHLY REPORT treasrep MISCELLANEOUS AND TRUST ACCOUNTS 10/4/2011 JULY 31, 2011 Yield Adjusted Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total Total Invested Cash $ 97,513,592 $ 97,513,592 $ 97,513,592 Miscellaneous Accounts Petty Cash 4,050 N/A N/A open none 4,050 Revolving Fund-Bank of America 25,000 N/A N/A open none 251000 Trust&Agency-Bank of America 913,828 N/A N/A open none 913,828 Downpayment Assistance(Housing Fund)-JP Morgan Chase 33,743 0.15% N/A open 0,15% 33,743 Workers Compensation-Bank of America 1,676 N/A N/A open none 1,676 General Liability-Bank of America 29,241 N/A N/A open none 29,241 1930's General Store Museum-Bank of America 4,457 N/A N/A open none 4,457 On-Line Credit Card Transportation Permits- 2,135 N/A N/A open none 2,135 1,014,130 Bank of America De osits Held In Trust Time Deposits (FDIC Insured) BBVA Compass(Coyote Springs Apt) 2.0,780 1.09% N/A 6/24/12 1.09% 20,790 20,780 Total Cash Deposited $ 98,548,501 O CT) bastsup BOND ISSUE RESERVE, DEBT SERVICE&RELATED FUNDS 10/4/2011 JULY 31, 2011 Coupon Yield Adjusted (memo only) Prior Qtr. Par Value Raze Rating Maturity to Maturity Cost Basis Category Total Market Value Source Market Value 1991/97/01IN Convention Center Invesco Government&Agency Private 13,429 variable AAA open 0.01% 13,429 13,429 Bank of NY Mellon 13,430 Federal Home Loan Morgtgage Corporation 5,465,000 3.82% N/A 9/27/13 1.93% 5,867,848 5,884,712 Bank of NY Mellon 5,881,259 5,881,2n 1991/01 Series B-Housing Invesco Government&Agency Private 28,842 - variable AAA open 0.02% 28,842 28,842 Bank of NY Mellon 28,841 Federal Home Loan Bank 420,000 4.38% N/A 10/10/12 1.38% 453,705 441,546 Bank of NY Mellon 443,012 482,547 1994/04 Series A&B Invesce Government&Agency Private 34,323 variable AAA open 0.02% 34,323 34,323 Bank of NY Mellon 34,319 Federal Home Loan Mortgage Corporation 965,000 3.82% N/A 9/27/13 L93% 1,036,134 1,039,112 Bank of NY Mellon 1,040,251 Federal Home Loan Mortgage Corporation 571,000 3.82% N/A 9/27/13 1.93% 613,091 614,853 Bank of NY Mellon 615,527 1,683,548 1998 Airport PFC Invesco Government&Agency Private 254,230 variable AAA open 0.02% 254,230 254,230 Bank of NY Mellon 435,047 U.S.Treasury Note 918,000 L35% N/A 3/15/13 1.55% 913,374 _ 933,523 Bank of NY Mellon 933,061 1,167,604 2001 Assessment District 157/158 Invesco Government&Agency Private 172,035 vanable AAA open 0.02% 172,035 172,035 Bank of NY Mellon 172,032 172,035 2002 Parking Structure Cash 18 18 18 Bank of NY Mellon 18 Invesco Goverment&Agency Private 0 variable AAA open 0.01% 0 0 Bank of NY Mellon 0 18 2004 Assessment District 161 hatesco Government&Agency Private 73,414 variable AAA open 0.02% 73,414 73,414 Bank of NY Mellon 70,313 Key Bank National Association,Ohio 108,0D0 4.08% N/A 12/20/12 1.80% 115,105 113,590 Bank of NY Mellon I13,774 CIT Bank,Salt lake City,Utah 205,000 2.94% N/A 1/28/13 L87% 2I1,6D 212,549 Bank of NY Mellon 212,667 400,126 2004 Assessment Dandet 162 Invesco Government&Agency Private 611770 variable AAA open 0.01% 61,770 61,770 Bank of NY Mellon 61,769 Capital One Bank USA National Association 88,000 4.15% N/A 3/5/13 1.80% 98,353 97,430 Bank of NY Mellon W,643 0 treastep BOND ISSUE RESERVE, DEBT SERVICE&RELATED FUNDS 10/4/2011 JULY 31, 2011 160,123 2005 Assessment District IM Invesco Govemtrtent&Agency Private 94,909 variable AAA open 0,02% 94,909 941909 Bank of NY Mellon 94,535 Citizens Bank,Flint,Michigan 245,000 L85% N/A 3/4/13 1.80% 245,347 245.000 Bank of NY Mellon 245,000 Capital One Bank USA National Amaiation 25,000 4.15% N/A 3/5/13 1.80% 26,661 26,427 Bank of NY Mellon 26,459 366,917 2006 Airport PFC Invesco Govemrent&Agency Private 218,649 variable AAA open 0.02% 218,649 218,649 Bank of NY Mellon 1,167,1W U.S.Treasury Note 855,000 1.38% N/A 3/15/13 1.55% 850,692 869,458 Bahr of NY Mellon 869.027 1,069,340 20B7 Merged Projmt pl&p2 Invesco Govemtent&Agency Private 1,305,132 variable AAA open 0,01% 1,305,132 1,305,132 Bank of NY Mellon 1,305,106 1.305,132 2007 Refunding Lease Revenue Bonds Invesco Government&Agency Private 3 variable AAA open 0.01% 3 3 Bank of NY Mellon 3 3 2008 Airport PFC Refunding Invewo Government&Agency Private 0 variable AAA open 0.02% 0 0 Bank of NY Mellon 12,437 Federal Home Loan Mortgage Corporation 603,000 4.13% N/A 9/27/13 1.93% 647,450 649,310 Bank of NY Mellon 650,022 647,450 Funds With Century Golf 1,836,500 1,836,500 1,836,500 Century Golf 2,020,406 1,836,500 Totals $ 15,172,619 1 15,220,764 $ 16,543,155 O i70 TREASURER'S MONTHLY REPORT CALCULATION OF INVESTMENT LIMITATIONS JULY 31, 2011 treasrep 10/04/11 Allowable Percentages By Maturity: Minimum Maximum Current Mo. 1 day to 365 days $8,000,000 N/A $94,014,998 1 year to 3 years 0.00% 50.00% 3.08% 3 years to 5 years 0.00% 30.00% 0.00% over 5 years N/A N/A 0.51% 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% 39.54% U.S. Treasury Notes/Bonds N/A N/A 0.00% 0 Q0 Calculation of Weighted Avg Maturity Mature Current No. of Days X Cost Date Date Days 40,755 40,756 40,755 1 2,251,998 40,756 40,755 1 56,700,000 40,732 40,755 -23 0 40,737 40,755 -18 0 40,744 40,755 -11 0 40,745 40,755 -10 0 40,746 40,755 -9 0 40,746 40,755 -9 0 40,753 40,755 -2 0 40,756 40,755 1 1,000,000 40,756 40,755 1 2,000,000 40,758 40,755 3 3,000,000 40,772 40,755 17 17,000,000 40,780 40,755 25 25,000,000 40,807 40,755 52 104,000,000 40,814 40,755 59 118,000,000 40,816 40,755 61 122,000,000 40,816 40,755 61 125,965,000 40,830 40,755 75 75,000,000 40,834 40,755 79 158,000,000 40,863 40,755 108 216,000,000 40,864 40,755 109 109,000,000 40,870 40,755 115 115,000,000 40,870 40,755 115 230,000,000 40,885 40,755 130 130,000,000 40,906 40,755 151 301,698,000 40,913 40,755 158 316,000,000 40,953 40,755 198 198,000,000 40,998 40,755 243 243,000,000 41,019 40,755 264 264,000,000 41,059 40,755 304 608,000,000 41,073 40,755 318 636,000,000 10 41,236 40,755 481 962,000,000 41,382 40,755 627 627,000,000 43,196 40,755 2,441 1,217,067,954 Total Investments at Cost 6,982,682,952 WAM in Days 97,513,592 71.61 lI