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City Council Staff Report
DATE: December 1, 2010 CONSENT CALENDAR
SUBJECT: TREASURER'S INVESTMENT REPORT AS OF
OCTOBER 31, 2010
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, 2010. 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
$77,135,348 plus $24,560,584 in bond issue capital projects, reserve and debt
service funds. The market value of the invested cash is $77,666,404.
RECOMMENDATION:
Receive and File Treasurer's Investment Report as of October 31, 2010.
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
December 1, 2010 — Page 2
Treasurer's Investment Report as of October 31, 2010
under current market conditions. We recommend that this exception to the
policy be continued.
The weighted average maturity (WAM) of the portfolio is 463 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
Geoffr y S. Kiehl, Director of Finance and Treasurer
Attachments: Treasurer's Investment Report
treasM CITY OF PALM SPRINGS
11i17f2010 TREASURER'S MONTHLY REPORT
SUMMARY OF INVESTMENTS
OCTOBER 31, 2010
On Call Deposits Adjusted Basis Category Total Percentage
Checking Account $ 3,638,891.
State Pool 46,700,000 $ 50,338,891 65.26%
Short Term Investments
1 year or less
Corporate Notes 1,990,270
Mortgage Pass•Thrus 310,093 2,300,363 2.98%
Medium Term Investments
1 year to 3 ears
U.S.Govt Agencies 4,000,000 4,000,000 5.190/0
Long Term Investments
3 ears to S ears
U.S.Gov't Agencies 20,496,094 20,496,094 26.57%
$ 77,135,348 100.000/0
*Some investments made prior to the implementation of the
current Investment Policy exceed the 5 year limit.
t,easrel? TREASURER'S MONTHLY REPORT
11/17(2010 DETAIL,OF INVESTMENTS
OCTOBER 31,2010
Coupon Yield Adjusted (memo-only) Prior Qtr.
Per Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Source Market Value
On Call Deposits
Checking-Bank ofAmema 5 NIA variable AAA open 0.15'/a $ 3,638,891 S 3,638,891 S 1,045,640
Local Agency Invest Fund(i.AIF)a 46,700,000 variable X/A open 0.48'/a 46,700,000 46,799,424 LAIF 52,285,005
50,339,891
Short Term Investments
1 year or less
Corporate Notes
Wclls Fargo 8t Company 8001000 3.99% AA- 10129/10 4.20% 0 0 Bank ofNY Mellon 801,968
sac Communicabons,Inc. 1,00D,000 5.30% A 11/15/10 5.179e I,OD4,150 1,001,150 Bank ofNY MeDon 1,005,260
Goldman Sachs Group,Inc. 1,000,000 5.0001. A 01/15111 5.37% 996,120 1,008,610 Bank ofNY Mellon 1,01],SOD
1,990,270
Mortgage Pass-Thrus
Federal National Mortgage Association 5001000 4.00'1n NIA 1010VID 4.95% 0 0 Bank ofNY Mellon 2,747
Federal Hone Loan Bank 775,000 4.75% N/A 19125i10 4.88% 0 0 Bank a€NY Mellon 317,615
Federal Hone Loan Mortgage Corporation 1,015,552 4.50% N/A 02/011I1 5.24% 149,795 163,060 Bank ofNY Mellon 172,920
Federal Home Loan Mortgage Corporation 695,000 4.00% NIA 04/01/11 5.22% 123,504 I38,798 Bank ofNY Mellen 142,616
Federal Home Loan Mortgage Corporation 200,000 4.50a/a NIA 05101/11 5.37% 36,794 39,807 Bank of NY Mellon 42,123
310,093
Medium Term hrmstments
1 year to 3
U.S.Gott Agency Securities
Federal Home Loan Bards 2,000,0D0 1.75% NIA 10129/12 1.75% 0 0 Bank ofNY Mellon 2,001,975
Federal Home Loan Mortgage Corporation 1,0OO,ODD 2.W/o NIA 12/29/12 2.50°/. 1,000,000 1,013,990 Bank ofNY Mellon 1,015,070
Federal Form Credit Bank 2,000,000 2.00% NIA 01/14/13 2.00"/e 2,000 000 2,006,250 Bank ofNY Mellon 2,007,50D
Federal Hoare Loan Mortgage Corporation 1,000,000 1.10a/0 NIA 01/22tt3 1.101% 1,000,ODD 1,004,375 Bank ofNY Mellon 1,004,070
4,000,000
ti7
trea=P TREASURER'S MONTHLY REPORT
11/17/2010 DETAIL OF INVESTMENTS
OCTOBER 31,2010
Coupon Yield Adjusted {numo only} Prior Qtr.
Par Value Rate Rating Maturity to Maturity Cost Bass Category Total Market Value Source Market Value
Long Term Investment
3 years to 5
U.S-Gov't Agency Securities
Federal Home Loan Bank 2,000,000 2.08% NIA 12123/13 2.08% 2,ODD,000 2,005,000 Bank ofNY Melton 2,008,125
Federal Home Loan Mortgage Corporation I,000,0W 1.63% NIA 01/21,114 1.63% 1,000,000 1,W8,610 BankofNYMeDon 1,008,580
Federal National Mortgage Association 1,000,000 1.60% N/A OU29114 1.60% I,0D0,00D 1,008,750 Bank ofNY Mellon 1,009,432
Federal Hoare Loan Bank 2,000,006 2.3M/6 NIA 03117/14 235% 2,OOD,000 2,015,625 Bank ofNY Mellon 2,017,5w
Federal Farm Credit Bank 1,000,000 1.77% NIA 0710&114 1.77% 1,000,ODD 1,009,375 Bank of NY Mellon 1,007,500
Federal National Mortgage Association 1,000,000 2.00% NIA 07/22/14 2.001% 0 0 Bank of NY Mellon 1,000,938
Federal Home Low Mortgage Corporation 110001000 3.W1a N/A 11/05/14 3.D0'1a 1,00D,000 1,W0,320 Bank of NY Melton 1,002,570
Federal National Mortgage Association 1,000,000 2.05% NIA 01/13/15 2.05% 1,00D,D00 1,012,813 Bank of NY Melton 1,012,188
Federal Home Loan Mortgage Corporation 1,000,000 2.38% NIA 07120/15 2.38% 1,00D,000 1,004,040 Bank of NY Mellow 1,005,200
Federal Home Loan Bank 1,000,ODO 2.35% NIA 07/21/15 235% 1,00D,000 ],0D4,063 Bank of NY Mellon 1,005,313
Federal National Mortgage Association I,000,000 2.25% NIA 0712Z'15 2301% 997,500 1,010,000 Bank ofNY Mallon 1,007,500
Federal Farm Credit Bank 1,000,000 1.88% NIA 09/17/15 1.88% 1,000,000 t,OD4,688 Bank ofNY Mellon 1,005,625
Federal Home Loan Mortgage Corporation 1,000,000 2.00'/c NIA 08/25/15 2.00% 1,000,000 1,0D4,330 Bank ofNY Mellon 1,003,750
Federal Farm Credit Bank 2,000.000 1.99% NIA 09/30!15 1.99% 71000,000 2,011,875 Bank of NY Mellon 2,008,125
Federal National Mortgage Association 2,000,OD0 2.OD% NIA 09r301i5 2.001% 2,000,00D 2,006,125 Bank of NY Mellon I M,750
Federal Homo Loan Bank 21000,000 2.Dm N/A IOIM15 2.00% 2,000,000 2,001,875 Bank of NY Mellon 0
Financing Corporation(FICO) 500,000 9.80% N/A 04/06/18 9.80% 499,594 752,362 Bank efAmenca 750,734
20,496,i194
Total Invested Cash $ 77,135,349 S 77,666,404 S 82,707,944
'Includes the following deposits ofnon-City fimds:
Principal interest Total
SMG(Convention Center) 100,000 96,025 196,025
Palm Springs Hmmeal Society 250,000 53,071 303,071
TREASURER'S MONTHLY REPORT
treasrep MISCELLANEOUS AND TRUST ACCOUNTS
11/17/2010 OCTOBER 31, 2010
Yield Adjusted
Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total
Total Invested Cash $ 77,135,348 $ 77.135,348
$ 77.135,348
Miscellaneous Accounts
Petty Cash 3,900 NIA NIA open none 3,900
Revolving Fund-Bank of America 20,000 N/A N/A open none 20,000
Trust&Agency-Bank of America 1,426,605 N/A N/A open none 1,426,605
Downpayment Assistance(Housing
Fund)-JP Morgan Chase 33,705 0.15`7o NIA open 0.15% 33,705
Workers Compensation-Bank of America 12,296 NIA NIA open none 12,296
General Liability-Bank of America 19,942 NIA NIA open none 19,942
1930's General Store Museum-Bank of America 2,564 NIA NIA open none 2,564 1,519,012
De sits Held In Trust
Time Deposits
(FDIC Insured)
BBVA Compass(Coyote Springs Apt) 20,777 1.09% NIA 6/24111 1.09% 20,777 20,777
Total Cash Deposited $ 78,675,137
7
TREASURER`S MONTHLY REPORT
treasm BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS
11/17/10 OCTOBER 31,2010
Coupon Yield Adjusted {memo only) Prior Qtr.
Par value hate hating Maturity to Maturity Cost Basis Category Total Market Value Source Market Value
2991197101104 Convention Center
Invesco Government&Agency Private 3,706,996 variable AAA open 0.02% 3,706,B96 3,706,996 Bank of NY Mellon 113,557
Federal Home Loan Morgtpp Corporation 5,465,fl00 4.11% NIA 9MI13 1.931% 5,867,949 6,016,623 Bank of NY Mellon 5,994,422
9,574,744
I991101 Series B-Housing
Invesw Government At Agency Private 24,623 variable AAA open 0.01% 24,623 24,623 Bank of NY Mellon 14,910
Federal Hoare Loan Bank 420,000 4.63% NIA 10/10112 1.38% 453,705 454,781 Bank of NY Mellon 454,781
479,328
1994/04 Series A&B
Invesco Government&Agency Private 32,360 variable AAA open 0.02°/. 32,360 32,360 Bank ofNY Mellon 32,360
Federal Home Loan Mortgage Corporation 965,000 4.13% NIA 9/27/13 1.934/. 1,036,134 1,062,405 Bank ofNY Mellon 1,058,484
Federal Home Loan Mortgage Corporation 571,000 4.13°/. NIA 9127113 1.93% 613,091 629,635 Bank ofNY Mellon 626,316
1,681,585
1998 Airport PFC
Inve"Government&Agency Private 459,533 variable AAA open 0.02°/. 459,513 459,533 Bank ofNY Mellon 388,794
U.S.TreamryNota 918,000 1.3W. NIA 3l15113 1.55% 913,374 939,798 Bank ofNY Mellon 936,965
1,372,907
1998 Asses District 155 A&B
Invesco Goverment&Agency Private 147,302 variable AAA open 0.02% 147,302 147,
302 Bank of NY Mellon 147,300
147,302
2001 Assessment District 157/158
Invesco Government&Agency Private 176,391 variable AAA open 0.02Y, 176,391 176,391 Bank ofNY Mellon 176,388
176,391
2002 Parking Structure
Cash 3 3 3 Bank of NY Mellon 3
InVeSCD Govemment&Agency Private 3,582 variable AAA open 0.01% 3,582 3,582 Bank ofNY Mellon 3,680
3,585
2004 Amssment District 161
Imesco Government&Agency Private 62,624 variable AAA open 0.01% 62,624 62,624 Bank ofNY Mellon 62,623
Key Bank National Association,Ohio 108,000 4.30% NIA 12J20112 1.80% 115,105 116,734 Bank of NY Mellon 116,740
CIT Bank,Salt Lake City,Utah 205,000 3.051% NIA 1/28113 1.87% 211,607 216,496 Bank ofNY Mellon 216,273
389,337
2004 Assessrnot District 162
TREASURER'S MONTHLY REPORT
treasrep BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS
11A7110 OCTOBER 31,2010
Coupon Yield Adjusted (memo only) Prior Qtr.
Par Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Source Market Value
Invesco Government&Agency Private 64,577 variable AAA open 0.01% 64,577 64,577 Bank of NY Mellon 64,577
Capital One Bank USA National Association 89,000 4.15% N/A 36/13 Lw/. 93,846 95,352 Bank o€NY Mellan 95,301
158,423
2005 Assessment District 164
Invest,Government&Agency Private 93,289 variable AAA open 0.01% 93,289 93,289 Bank o€NY Mellon 92,916
Citizens Beak,FhM Michigan 245,000 1.85% NIA 3/4113 LW/6 245,347 245,000 Bank of NY Mellon 245,000
Capital One Bank USA National Association 25,000 4.15% NIA 3/5113 1.801% 26,661 27,089 Bank of NY Mellon 27,074
365,297
2006 Airport PFC
Invesco Government&Agency Private 677,232 variable AAA open 0.02% 677,232 677,232 Same of NY Mellon 547,245
U.S.Treasury Note 855,000 139% NIA 3115113 1.55% 850,692 874,371 Bank of NY Mellon M570
1,527,923
2007 Merged Project 01
Invesco Goverment&Agency Private 6,941,842 variable AAA open 0.02% 6,941,842 6,841,842 Bank of NY Mellon 6,941,729
6,841,842
2007 Refimding Lease Revenue Bonds
Invesco Govenrment&Agency Private I variable AAA open 0.01% 1 1 Bank of NY Mellon 379,850
l
20N Airport PFC Reftmdmg
Invesco Government&Agency Private I2,853 variable AAA open 0.01% 12,853 12,933 Bank of NY Mellon 12,854
Federal Home Loan Mortgage Corporation 603,000 4.13% N/A 9127113 1.93% 647,450 663,865 Bank of NY Mellon 661,4I6
660,303
Funds With Century Golf 1,355,563 1,182,616 1,355,563 Century Golf 1,355,563
1,182,616
Totals S 24,560,584 $ 24,998,822 S 21,538,591
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treasrep TREASURER'S MONTHLY REPORT
11/17/10 CALCULATION OF INVESTMENT LIMITATIONS
OCTOBER 31, 2010
Allowable Percentages
By Maturity: Minimum Maximum Current Mo.
1 day to 365 days $8,000,000 NIA $52,639,254
1 year to 3 years 0.000/0 50.00% 5.190/a
3 years to 5 years 0.00% 30.00% 2592%
over 5 years NIA N/A 0.65%
By Type of Investment:
Bankers Acceptance-in total N/A 40.04% 0,000/0
Bankers Acceptance-single bank NIA 20.00% 0.00%
Commercial Paper NIA 15.00% 0.000/0
Certificates of Deposit NIA 30.00% 0.00°I4
Corporate Notes NIA 20.000/a 2.58%
Money Market Mutual Funds NIA 10.000/0 0.0U°/a
Mortgage Pass Thrus N/A 10.000/0 0.40%
U.S. Government Agencies N/A 50.00% 31.75%
U.S. Treasury Notes/Bonds N/A NIA 0.000/0