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Home My WebLink About11/3/2010 - STAFF REPORTS - 2.G. u ,n w RbGY� �41/FOB City Council Staff Report DATE: November 3, 2010 CONSENT CALENDAR SUBJECT: TREASURER'S INVESTMENT REPORT AS OF SEPTEMBER 30, 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 September 30, 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 $82,167,760 plus $21,308,207 in bond issue capital projects, reserve and debt service funds. The market value of the invested cash is $82,707,844. RECOMMENDATION: Receive and File Treasurer's Investment Report as of September 30, 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 November 3, 2010— Page 2 Treasurer's Investment Report as of September 30, 2010 under current market conditions. We recommend that this exception to the policy be continued. The weighted average maturity (WAM) of the portfolio is 436 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 Geoffre S. Kiehl, Director of Finance and Treasurer Attachments: Treasurer's Investment Report trees CITY OF PALM SPRINGS 10/19/2010 TREASURER'S MONTHLY REPORT SUMMARY OF INVESTMENTS SEPTEMBER 30, 2010 On Call Deposits I Adjusted Basis Category Total Percentage Checking Account S 1,045,640 State Pool 52,200,000 S 53,245,640 64.800/c Short Term Investments 1 year or less) Corporate Notes 2,785,430 Mortgage Pass-Thrus 640,596 Time Deposits 0 3,426,026 4.17% Medium Term Investments l year to 3 eats U.S.Gov't Agencies 6,000,000 6,000,000 7.30% Long Term Investments (3 years to 5 ears) U.S.Gov't Agencies 19,496,094 19,496,094 23.73% S 82,167,760 100.00% *Some investments made prior to the implementation of the current Investment Policy exceed the 5 year limit. Mattel) TREASURER'S MONTHLY REPORT 1011912010 DETAIL OF INVESTMENTS SEPTEMBER 30,2010 Coupon Yield Adjusted (memo only) Prior Qtr. Par Value Rate Rating Maturity to Manaity Cost Basis Category Total Market Value Source Market Value On Call Deposits Checking•Bank of America S NIA variable AAA open 0.15% S 1.045,640 S 1,045,640 S 1,W,573 Local Agency Invest Fund(LAIF)• 52,200,000 variable NIA open 0.51% 52,20%000 52,285,805 LAIF 79,794,292 53,245,640 Short Term Investments 1 year or less Corporate Notes Wells Fargo&Company 800,000 3.98% AA- 10/29/10 420% 795,160 901,969 Bank of NY Mellon 806,560 SBC Communications,Inc. 1,000,000 5.30"/a A 11/15/10 5.17'/0 1,004,150 1,DD5,260 Bank of NY Mellon 1,015,860 Goldman Sachs Group,Inc. 1,000,000 5.00% A 01/15/11 5.371K 986,120 1,011,800 Bank of NY Mellon 1,015,220 2,785,430 Mortgage Pass-Thrus Federal Home Loan Mortgage Corporation 1,370,000 5.0D% NIA 09/01/10 5.35% 0 0 Bank of NY Mellon 127,190 Federal National Mortgage Association 500,000 4.0D% NIA ]0/01110 4.95°/a 0 2,747 Bank of NY Mellon 79,962 Federal Home Loan Bank 775,000 4.75% NIA 10/25/10 4.89% 314,980 317,615 Bank of NY Mellon 347,767 Federal Home Loan Mortgage Corporation 1,015,552 4.501% NIA 02'01111 5.24"/u 159,333 172,920 Bank of NY Mellon 193,696 Federal Home Loan Mortgage Corporation 695,000 4.00°A NIA 0"1111 5.22% 127,212 142,616 Bank of NY Mellon 171,000 Federal Hoare Loan Mortgage Corporation 200,000 4.50% N1A 05101,111 5.37°/u 39,072 42,123 Bank ofNY Mellon 50,787 640,596 Time Deposits CD Account Registry Service(CDARS) 940,000 1.60% AAA 07/15/10 1.61% 0 0 Palm Desert Nat.Bank 940,000 0 treasrep TREASURER'S MONTHLY REPORT 10/19/2010 DETAIL OF INVESTMENTS SEPTEMBER 30,2010 Coupon Yield Adjusted (steno only) Prior Qtn Par Value Rate Rating Maturity to Maturity Cost Basis Category Total Market Value Source Market Value Medium Term Investments t to 3 U.S.Gov4 Agency Securities Federal Home Loan Bank 2,000,0DO 1.75% NIA 10/29/12 1.75% 2,Oo0,000 2,001,875 Bank of NY Melton 2,008,125 Federal Home Loan Mortgage Corporation 1,000,000 2.50% NIA 12/28/12 2.50% 1,000,000 1,015,070 Bank of NY Mellon 1,018,570 Federal Farm Credit Bank 2,000,000 2.00°/ NIA 01/14/13 2.00% 2,0o0,000 2,907,500 Bank of NY Mellon 2,013,750 Federal Home Loan Mortgage Corporation 1,000,000 1.10% NIA 01/22113 1.101/e 1,000,000 1,0D4,070 Bank of NY Melton 0 Federal Home Loan Mortgage Corporation 1,000,000 2.25% NIA 01/30/13 2.251% 0 0 Bank of NY Mellon 1,001,230 Federal Home Loan Bank 2,000,000 2.W/. NIA 06/24/13 2.oD% 0 0 Bank of NY Melton 2,006,875 Federal Home Loan Bank 1,000,000 2.85% N/A 08/19/13 2.850/c 0 0 Bank of NY Mellon 1,003,125 6,000,000 Long Term Investment 3 to 5 U.S.Gov't Agency Securities Federal Boma Loan Bank 2,000,000 2.08% NIA 12/23/13 2.08% 2,000,000 2,008,125 Bank of NY Mellon 2,016,875 Federal Home Loan Mortgage Corporation 1,000,000 1.63% NIA 01.r21114 1.63% 1,000,000 1,008,580 Bank of NY Mellon 0 Federal National Mortgage Association 1,000,000 1.60% NIA 01/29/14 1.60% I,0D0,000 1,008,438 Bank of NY Mellon 0 Federal Home Loan Bank 2,000,000 2.35% NIA 03/17/14 2.35% 2,000,000 2,017,500 Bank of NY Mellon 2,025,625 Federal Farm Credit Bank 1,000,000 1.77% NIA 07/08/I4 1.77% 1,000,000 1,007,500 Bank of NY Mellon 0 Federal National Mortgage Association 1,000,D00 2.00% NIA 07r2V14 2.0D% 1,000,000 1,000,938 Bank of NY Mellon 0 Federal National Mortgage Association 1,000,000 3.50% N/A 005114 3.50% 0 0 Bank of NY Mellon 1,004,375 Federal Home Loan Mortgage Corporation 1,000,000 3.00% NIA 11/05/14 3.OD% I pw wo 1,002,570 Bank of NY Mellon 1,009,240 Federal National Mortgage Association 1,000,DDO 2.05% NIA 01/13/15 2.05% 1,000,000 1,012,188 Bank of NY Mellon 0 Federal Home Loan Mortgage Corporation 1,000,000 2.38% NIA 0712M 5 2.38% 1,000,000 1,005,200 Bank of NY Mellon 0 Federal Home Loan Bank 1,Ot70,000 2.35% NIA 07/21/15 2.35% l,000,0D0 1,005,313 Bank of NY Mellon 0 Federal National Mortgage Association 1,000,000 2.25% NIA 071221I5 2.30% 997,500 1,007,500 Bank of NY Melon 0 Federal Form Credit Bank 1,000,OOo 1.88% NIA 08/17/15 1.98% 1,000,000 1,005,625 Bank of NY Mellon 0. Federal Home Loan Mortgage Corporation 1,000,000 2.00% NIA 08/25/15 2.00% 1,000,000 1,003,750 Bank of NY Mellon 0 Federal Farm Credit Bank 2,000,000 1.99% NIA 09/30/15 I.991. 2,00D,000 2,008,125 Bank of NY Mellon 0 Federal National Mortgage Association 2,000,000 2.00% N/A 0913OA5 2.00% 2,000.000 1,998,750 Bank of NY Mellon 0 Financing Corporation(FICO) 500,000 9.80°/ NIA 04/06/18 9.80% 498,594 750,734 Bank of America 715,000 19,496,094 [TotalInvested C S 82,167,760 S 82,707,844 S 102,237,698 'Includes the following deposits ofnon-City funds: Principal Interest Trial SMG(Conversion Center) I DD,000 95,945 195,945 Palm Springs Historical Society 250,000 52,948 302,949 TREASURER'S MONTHLY REPORT treasrep MISCELLANEOUS AND TRUST ACCOUNTS 10/19/2010 SEPTEMBER 30, 2010 Yield Adjusted Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total Total Invested Cash $ 82,167,760 $ 82,167,760 $ 82,167,760 Miscellaneous Accounts Petry Cash 3,900 NIA NIA open none 3,900 Revolving Fund-Bank of America 20,000 N/A NIA open none 20,000 Trust&Agency-Bank of America 1,438,952 NIA NIA open none 1,438,952 Downpayment Assistance(Housing Fund)-1P Morgan Chase 33,701 0.15% NIA open 0.15% 33,701 Workers Compensation-Bank of America 4,404 NIA N/A open none 4,404 General Liability-Bank of America 23,766 NIA N/A open none 23,766 1930's General Store Museum-Bank of America 3,338 NIA N/A open none 3,338 1,528,061 IDeposits Held In Trust Time Deposits (FDIC Insured) BBVA Compass(Coyote Springs Apt) 20,777 1.090/0 NIA 6/24/11 1.09% 20,777 20,777 Total Cash Deposited —� S 83,716,598 M TREASURER'S MONTHLY REPORT prep BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS 10/19/10 SEPTEMBER 30,2010 Coupon Yield Ad)-ad } (memo only) Prior Qtr. Paz Value Rate Rating Maturity to Manm Cost Basis Category Total Market Value Source Market Value 1991/97/01104 Convention Center Invesco Government&Agency Private 113,557 variable AAA open 0.02°/a 113,557 113,557 Bank of NY Mellon 941 Federal Home Loan MmI tgege Corporation 5,465,000 4.13% NIA 9/27/13 1.93% 5,867,848 5,994,422 Bank of NY Mellon 5,938,558 5,981,405 199MI series B-Housing Invesco Government&Agency Private 14,9i0 variable AAA open 0.01% 14,910 14,910 Bank of NY Mellon 14,909 Federal Home Loan Bank 420,000 4.63%a NIA 10/10/12 1.38a/u 453,705 454,781 Bank of NY Mellon 455,963 469,615 19941D4 Series A&B Invesco Government&Agency Private 32,360 variable AAA open 0.02% 32,360 32,360 Bank of NY Mellon 1,610 Federal Home Loan Mortgage Corporation 965,000 4.13% NIA 9127/13 1.93% 1,036,134 1,058,484 Bank of NY Mellon 1,032,152 Federal Home Loan Mortgage Corporation 571,000 4.13% NIA 9127/13 1.93% 613,091 626,316 Bank of NY Mellon 622,568 1,681,585 1998 Airport PFC Invesoa Government&Agency Private 398,794 variable AAA open O.02a/a 388,794 389,794 Bank of NY Mellon 1,042,199 U.S.Treasury Note 918,000 1.38a/ NIA 3/15/13 1.55% 913,374 936,965 Bank of NY Mellon 929,905 I,302,168 1999 Assessment District 155 A&B Invesco Gove¢n wen&Agency Private 147,300 variable AAA open 0.02% 147,300 147,300 Bank of.N Y Mellon 147,293 147,300 2001 Assessmem District 137/138 Invesoo Government&Agency Private 176,388 variable AAA open 0.02% 176,388 176,398 Bank of NY Mellon 187,094 176,388 2002 Parking Structure cash 3 3 3 Bank of NY Mellon 3 lnvesce Government&Agency Private 3,680 variable AAA open 0.01% 3,680 3,680 Bank of NY Mellon 3,881 3,683 TREASURER'S MONTHLY REPORT treasrep BOND ISSUE RESERVE,DEBT SERVICE&RELATED FUNDS 10/19/10 SEPTEMBER 30,2010 Coupon Yield Adjusted (mcmo only) Prior Qtr. Paz Value Rau Rating Maturity to Maturity Cost Basis Category Total Market Value Source Market Value 2004 Assessment District 161 Invesco Government&Agency Private 62,623 variable AAA open 0.01% 62,623 62,623 Bank of NY Mellon 85,709 Key Bank National Association,Obio 108,000 4 301% N/A 12/20/12 1.80% 115,103 116,740 Bank of NY Mellon 116,402 CIT Bank,Salt Lake City,Utah 205,000 3.05% NIA 1R8113 1.87°/n 211,607 216,273 Bank o€NY Mellon 214,868 389,336 2004 Assessment District 162 Invesco Government&Agency Private 64,577 variable AAA open 0.01% 64,577 64,377 Bank of NY Mellon 66,895 Capital One Bank USA National Association 88,000 4.15% NIA 315/13 1.80% 93,846 95,301 Bank ofNY Mellon 94,927 158,422 2005 Assessmem District.164 Invesca Government&Agency Private 92,916 variable AAA open 0.01% 92,916 92,916 Bank ofNY Mellon 95,799 Citizens Be*Flint,Michigan 245,000 1.85"/u N/A 314/13 1.80% 245,347 245,000 Bank ofNY Mellon 245,000 Capital One Bank USA National Association 25,000 4.150/6 MA 315/13 1.800/. 26,661 27,074 Bank ofNY Mellon 26,940 364,923 2006 Airport PFC Inveseo Government&Agency Private 547,245 variable AAA open 0.02% 547,245 547,245 Bank ofNY Mellon 1,022,059 U.S.Treasury Note 855,000 1.38°/a N/A 3/15113 1.55% 850,692 972,570 Bank ofNY Mellon 866,089 1,397,937 2007 Merged Project 41&42 lmesco Government&Agency Private 6,841,729 variable AAA open 0.02% 6,941,729 6,941,729 Bank ofNY Mellon 7,245,209 6,941,729 2W7 Refunding Lease Revenue Bonds lovesco Government&Agency Private 378,850 variable AAA open 0.02% 378,850 378,950 Bank of NY Melton 9 378,850 2008 Airport PFC Refunding Inveseo Government&Agency Private 12,854 variable AAA open 0.01% 12,854 12,854 Bank of NY Mellon 416 Federal Home Loan Mortgage Corporation 603,000 4.131% NIA 9127113 1.93% 647,450 661,416 Bank of NY Mellon 657,458 660,304 ERICA Radio System Lease Financial Square Federal Fund Service 170,198 variable AAA open 0.01% 0 0 Deutscbe Bank 170,197 0 Funds With Century Golf 1,355,563 1,355,563 1,355,563 Century Golf 1,883,303 1,M5,563 Totals S 21,308,207 S 21,539,591 S 23,208,143 treasrep TREASURER'S MONTHLY REPORT 10/19/10 CALCULATION OF INVESTMENT LIMITATIONS SEPTEMBER 30, 2010 Allowable Percentages By Maturity: Minimum Maximum Current Mo. 1 day to 365 days $8,000,000 NIA $56,671,666 1 year to 3 years 0.00% 50.00% 7.30% 3 years to 5 years 0.00% 30.00% 23.12% over 5 years NIA N/A 0.61% By Type of Investment: Bankers Acceptance - in total NIA 40.00% 0.000/0 Bankers Acceptance - single bank NIA 20.00% 0.000/0 Commercial Paper NIA 15.00% 0.00% Certificates of Deposit NIA 30.00% 0.00% Corporate Notes NIA 20.00% 3.39% Money Market Mutual Funds NIA 10.00% 0.00% Mortgage Pass Thrus NIA 10.00% 7.78% U.S. Government Agencies NIA 50.00% 31.03% U.S. Treasury Notes/Bonds NIA NIA 0.000/0