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Home My WebLink About05 QUARTERLY INVESTMENT REPORTAgenda Item 5 Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: MAY 6, 2014 TO: JEFFREY C. PARKER, CITY MANAGER FROM: PAMELA ARENDS -KING, FINANCE DIRECTOR /CITY TREASURER SUBJECT: QUARTERLY INVESTMENT REPORT FOR THE CITY OF TUSTIN AND THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY SUMMARY: Government Code Section 53646 requires that the Treasurer make an Investment Report to the City Council at least quarterly showing balances by authorized investment and certifying its compliance with the adopted Investment Policy. RECOMMENDATION: Receive and file. DISCUSSION: In compliance with Government Code Section 53646, the attached Investment Report reporting cash and investments for the City of Tustin and the Successor Agency for the Tustin Community Redevelopment Agency for the quarter ending March 31, 2014 is rendered. Pamela Arends -King Finance Director /City Treasurer Attachment: March 31, 2014 Quarterly Investment Report CITY OF TUSTIN and THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY PORTFOLIO WEIGHTED AVERAGE March 31, 2014 500 450 400 350 300 250 200 150 100 50 0 oti WEIGHTED AVERAGE PORTFOLIO LIFE (DAYS) oN�, oti� 'N�" o'y, o'y o'y, oti� oti� QX)T °e Ce titi� �� C� Weighted Average Portfolio Life (Days) c3�Y �GST�� WEIGHTED AVERAGE PORTFOLIO YIELD ( %) vs. BENCHMARKS 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% +---L- Nell, O�l" (,O\ °\ titi� r5\ �3\ °\ Tustin Weighted Average Portfolio Yield (%) Treasury Yield (12 -month Daily) (%) LAIF Yield ( %) CITY OF TUSTIN and THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY DISTRIBUTION OF CASH AND INVESTMENTS, COMPARISON OF CURRENT YEAR TO PRIOR YEAR March 31, 2014 DISTRIBUTION OF CASH AND INVESTMENTS Total Investments as of 0313112014: $154,888,422 US Treasury, $19,903,905 Corporate Bonds, $9,013,228 L Municipal Bonds, Negotiable $1,000,660 Certificate of Deposit, $5,701,290 tTX Q DISTRIBUTION OF CASH AND INVESTMENTS Total Investments as of 0313112013: $131,089,411 US Treasury, 12,980,822 Bonds, $1,002,540 k-uk-ral Agencies, $15,008,585 CITY OF TUSTIN and THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY DISTRIBUTION OF INVESTMENT LIQUIDITY March 31, 2014 60.0% z 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Liquidity Distribution Up to 1 year 12 years 3 years 1 4 years 15 years ■ >5years U p to 1 2 years 3 years 4 years 5 years > 5 year years Compliance with Investment Limitations Total % Invested Complies? Commercial Notes: <_ 10% of total portfolio 5.82% Yes <_ 5 years remaining maturity n/a Yes Municipal securities: <_ 10% of total portfolio 0.65% Yes <_ 5% in one issuer 0.65% Yes <_ 10% of State of California issuances 0.65% Yes Federal agency bonds or notes: :575% of total portfolio 26.11% Yes <_ 5 years remaining maturity n/a Yes U.S. Treasury securities: <_ 5 years remaining maturity n/a Yes Maturity limitations: <_ 5 years maturity n/a Yes 25% of portfolio matures one year or less 57.50% Yes CITY OF TUSTIN and THE SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY INVESTMENT REPORT INVESTMENT SCHEDULE AS OF MARCH 31, 2014 (4) (5) 16) YIELD ORIGINAL CURRENT CURRENT 111 (2) COUPON/ TO (3) PURCHASE MATURITY BOOK BOOK MARKET DESCRIPTION - LIMITS CUSIP PAR VALUE Dollar Price MATURITY RATING DATE DATE PRICE VALUE VALUE US TREASURY BILLS /NOTES -No Limit: U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note U.S. Treasury Note FEDERAL AGENCIES .75% Limit: Fanner Mac Fannie Mae Global Bond Federal Farm Credit Bank Fannie Mae Fannie Mae Federal Home Loan Bank Federal Home Loan Global Bond Freddie Mac Freddie Mac Federal Home Loan Bank Federal Home Loan Bank MUNICIPAL BONDS - 15% Limit- California St Txabl- General Obligation UNLTD 912828RG7 $5,000,000 $99 0.35% Discover Bank 09122/11 09/15/14 4,985,397 4,985,397 5,004,100 912828VD9 10,000,000 $99 0.25% GE Capital Bank 06119/13 05131/15 10,000,907 10,000,907 10,010,550 91282SA67 3,000,000 $99 0.42% First General Bank 01108114 12/31/15 2,990,165 2,990,165 2,996,016 912828TG5 5,000,000 $99 0.58% American Express Centurion Bank 07131/12 07131117 4,979,333 4,979,333 4904295 GE Capital Retail Bank $23,000,000 Goldman Sachs Bank 38147JLA8 Wells Fargo Bank 94986TNE3 Sallie Mae Bank/Salt Lake City $22,955,802 $22,955,802 $22,914,961 31315PGTO 5,000,000 $103 0.54% AAA 07 /10/13 09115115 5,205,041 5,205,041 5,129,295 3135GOXH1 5,000,000 $99 0.50% AAA 05/20/13 05/20116 5,000,000 5,000,000 4,987,205 3133ED3J9 5,000,000 $99 0.83% AAA 10/03113 10/03116 4,999,500 4,999,500 5,006,810 3135GOPD9 5,000,000 $99 1.09% AAA 02/10114 09127117 5,015,765 5,015,765 4,956,740 3136G1MF3 5,000,000 $99 0.85% AAA 12/12113 11120117 4,942,597 4,942,597 4,926,665 3130AOWL0 1,000,000 $100 1.20% AAA OV28114 11/28117 1,000,000 1,000,000 992,028 313382A94 1,500,000 $98 1.25% AAA 12/19113 OV28118 1,496,781 1,496,781 1,485,726 3134G35Y2 2,000,000 $99 1.17% AAA 03113114 03112/18 1,986,065 1,986,065 1,974,296 3134G4NV6 5,000,000 $100 1.80% AAA 12/27/13 12/27118 5,000,000 5,000,000 5,017,380 3130AOMO0 4,000,000 $100 2.10% AAA 01108/14 01130119 4,000,000 4,000,000 3,967,196 3130AOXG0 2,000,000 $99 0.50% AAA 03106/14 03106119 2,000,000 2,000,000 1,994,992 248,000 $40,500,000 248,000 $100 1.00% 261 03/17/14 $40,645,749 $40,645,749 $40,438,333 13063SN65 91,000,000 $100 0.85% Al OW27113 02101115 $1003800 $1003800 91004390 NEGOTIABLE CERTIFICATES OF DEPOSITS - 30 %Limit- FDIC Insured Synovus Bank GA 87164DDG2 Discover Bank 254671RA0 Fifth Third Bank 316777ON4 Plains Capital Bank/TX 726630YS2 TCF National Bank 872278AJ5 Sara National Bank 78658AJD1 GE Capital Bank 36160YV51 Sterling Savings Bank 859531703 Comenity Capital Bank 20033ABL9 Merrick Bank 59012Y3T2 Farmers 8 Merchant Bank TN 30246ACK2 First General Bank 320337AP3 Fox Chase Bank 35137OAP9 Lake Forest Bank 6 Trust 509685ED2 North Shore Community Bank 6623268VB Tradition Capital Bank 89269FBK0 American Express Centurion Bank 02587DSL3 BMW Bank North America 05568p6w2 Ally Bank 02006LDP5 GE Capital Retail Bank 3616NUU 1 Goldman Sachs Bank 38147JLA8 Wells Fargo Bank 94986TNE3 Sallie Mae Bank/Salt Lake City 79USORA5 248,000 $100 0.30% 300 OW21113 06120114 248,000 248,000 247,925 248,000 $100 0.35% 300 06126113 06126/14 248,000 248,000 247,942 248.000 $100 0.60% 2M O6126113 06126114 248,000 248,000 247,971 248,000 $100 0.30% 296 06126/13 06/26114 248,000 248,000 247,919 248,000 $100 0.25% 186 06/26113 06126114 248,000 248,000 247,920 248,000 $100 0.35% 236 OW28113 07128114 248,000 248,000 247,921 248,000 $100 0.35% 300 OW21/13 12/22114 248,000 248,000 247,658 248,000 $100 0.35% 300 OW26113 12/26114 248,000 248,000 247,935 248,000 $100 0.40% 300 06128113 01/28115 248,000 248,000 247,780 248,000 $100 0.50% 300 06/21113 OW22/15 248,000 248,000 247,743 248,000 $100 0.40% 190 06127113 06/26/15 248,000 248,000 247,734 248,000 $100 0.40% 296 06/26113 06126115 248,000 248,000 247,764 248,000 $100 0.40% 209 06/27113 06/26/15 248,000 248,000 247,734 248,000 $100 0.45% 283 06128113 06/29/15 248,000 248,000 247,727 248,000 $100 0.45% 217 06/28/13 06/29/15 248,000 248,000 247,758 248,000 $100 0.40% 203 07103113 07/02/15 248,000 248,000 247,751 248,000 $100 0.70% 300 08/29113 08/31/15 248,000 248,000 247,952 248,000 $100 1.00% 281 03/14/14 03/14117 248,000 248,000 248,557 248,000 $100 1.00% 261 03/17/14 110119M 248,000 248,000 248,588 248,000 $100 0.90% 300 08123113 02/23116 248,000 248,000 246,821 248,000 $100 1.10% 263 09105113 09/06/16 248,000 248,000 246,647 248,000 $100 1.83% 262 08130113 08129/18 248,000 248,000 249,140 248,000 $100 2.15% 300 10130113 10/30118 248,000 243,000 248,403 $5,704,000 $5,704,000 $5,704,000 $5,701,290 Barclays Bank PLC Dom. Sr. Unsecured 0673SKL90 Berkshire Hathaway Finance Global Sr Unsecured 0846648 %8 JPMorgan Chase 8 Co Global Sr Unsecured 46625HJG6 DAILY -No Limit: Reconciled General Checking Account Ending Balance Deposits in Orange Co. Investment Pool Local Agency Investment Fund 5,000,000 999 2.00% A2 02/15/12 08/15114 5,000,000 5,000,000 5,000,070 2,000,000 $100 0.60% AA 03119114 08115116 2,018,458 2,018,458 2,010,300 2,000,000 $100 1.75% A 02/10114 01/25118 2,005,360 2 005 360 2,002,858 $9,000,000 - Current Totals: $9,023,818 $9,023,818 $9,013,228 0.24% N/A (7) 0.29% (8) 0.23% NIA Current Daily -No Limit Total: Total: CITY OF TUSTIN CASH AND INVESTMENTS Unrestricted General Fund cash balance as of 03131114 (unaudited) Semi- restricted cash balance as of 03/31114 (unaudited) ( Capital Projects, Proceeds from Land Sales, Backbone Infrastructure) Restricted Cash balances as of 03131/14 ( unaudited) (Water, Special Revenue Funds, Community Facility Districts) CITY OF TUSTIN CASH AND INVESTMENTS TOTAL: SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY CASH AND INVESTMENTS TOTAL INVESTMENT SUMMARY March 31, 2014 $12,823,656 $12,823,656 10,383,368 10,383,368 52,609,196 52,609 196 $75,816,220 $75,816,220 $155,149,389 $154,888,422 $19,814,916 36,046,390 65,650,169 $121,511,475 $33,637,914 (4) (5) (6) (6) YIELD ORIGINAL CURRENT CURRENT 111 (2) COUPONI TO (3) PURCHASE MATURITY BOOK BOOK MARKET DESCRIPTION- LIMITS CUSIP PARVALUE Dollar Price MATURITY RATING DATE DATE PRICE VALUE VALUE CORPORATE BONDS- 10 %Limit: PRICE VALUE VALUE Restricted Deposits with Fiscal Agents: Barclays Bank PLC Dom. Sr. Unsecured 0673SKL90 Berkshire Hathaway Finance Global Sr Unsecured 0846648 %8 JPMorgan Chase 8 Co Global Sr Unsecured 46625HJG6 DAILY -No Limit: Reconciled General Checking Account Ending Balance Deposits in Orange Co. Investment Pool Local Agency Investment Fund 5,000,000 999 2.00% A2 02/15/12 08/15114 5,000,000 5,000,000 5,000,070 2,000,000 $100 0.60% AA 03119114 08115116 2,018,458 2,018,458 2,010,300 2,000,000 $100 1.75% A 02/10114 01/25118 2,005,360 2 005 360 2,002,858 $9,000,000 - Current Totals: $9,023,818 $9,023,818 $9,013,228 0.24% N/A (7) 0.29% (8) 0.23% NIA Current Daily -No Limit Total: Total: CITY OF TUSTIN CASH AND INVESTMENTS Unrestricted General Fund cash balance as of 03131114 (unaudited) Semi- restricted cash balance as of 03/31114 (unaudited) ( Capital Projects, Proceeds from Land Sales, Backbone Infrastructure) Restricted Cash balances as of 03131/14 ( unaudited) (Water, Special Revenue Funds, Community Facility Districts) CITY OF TUSTIN CASH AND INVESTMENTS TOTAL: SUCCESSOR AGENCY FOR THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY CASH AND INVESTMENTS TOTAL INVESTMENT SUMMARY March 31, 2014 $12,823,656 $12,823,656 10,383,368 10,383,368 52,609,196 52,609 196 $75,816,220 $75,816,220 $155,149,389 $154,888,422 $19,814,916 36,046,390 65,650,169 $121,511,475 $33,637,914 .PERFORMANCE MEASUREMENT: Weighted Average Days to Maturity: 459 Weighted Average Portfolio Yield: 0.57% Current 12 me Treasury Equivalent: 013% (4) (5) (6) YIELD ORIGINAL CURRENT CURRENT (1) (2) COUPON/ TO (3) PURCHASE MATURITY BOOK BOOK MARKET DESCRIPTION - LIMITS CUSIP PAR VALUE Dollar Price MATURITY RATING DATE DATE PRICE VALUE VALUE Restricted Deposits with Fiscal Agents: (9) - 1998 RDA Tax Allocation Refunding Bonds N/A $1,689,837 $1,689,837 2010 RDA Housing Tax Allocation Bonds N/A 1,872,594 $1,872,594 2010 RDA Tax Allocation Bonds N/A 2,827,688 2,827,688 2011 Water Revenue Bonds N/A 2,306,438 2,306,438 2012 Refunding Water Revenue Bonds N/A 853,188 853,188 2013 Water Revenue Bonds NIA 304,826 304,826 CFD 044 - N/A 682,518 682,518 CFD 06 -1 NIA 10,756,940 10,756,940 CFD 07 -1 NIA - 1,460,228 1,460,228 Total Restricted Deposits with Fiscal Agents: $22,754,257 $22,754,257 .PERFORMANCE MEASUREMENT: Weighted Average Days to Maturity: 459 Weighted Average Portfolio Yield: 0.57% Current 12 me Treasury Equivalent: 013% FOOTNOTES: (1) DESCRIPTION - LIMITS reflects the various authorized investments as documented in the most current adopted investment policy and the allowable percentage of total portfolio per investment type. (2) PAR VALUE is the full value of the security before any discount or premium is paid at purchase. (3) Highest ratings from Standards & Poor's, Moody's or IDC Publishing Inc for bank ratings. IDC ratings are 1 (lowest) to 300 (highest). (4) Original Purchase Price is the amount paid for securities less any discount plus any premium. (5) Current Book Value is original cost of securities less receipt of principal payments, net of amortized premiums /discounts. (6) Current Market Value is the price at which similar securities are currently trading. Current market values are provided by Bank of America and the State Treasurer's Office on all securities or deposits held in safekeeping for the City and the Successor Agency for the Tustin Community Redevelopment Agency. Market value differences are only booked at year end. (7) Earnings allowance on compensating bank balances to offset bank activity charges. Allowance is included in the Average yield calculation. The cash balances include amounts "swept" from account for overnight investments. (6) Orange County Treasury Money Market Fund rating is AAAm. Orange County Treasury Extended Fund is not rated by sponsor's choice. (9) Investments and earnings on monies held by fiscal agents generally are limited as to type and yield by the bond documents or current IRS codes. CERTIFICATION: Wei certify that this report reflects all City of Tustin and the Successor Agency for the Tustin Community Redevelopment Agency (SATCRA) pooled investments. Excluding the Barclays Bank PLC Domestic Sr. Unsecured bond, the investments represented in this report are in conformity with the current adopted investment policy of the City of Tustin. The market values represented in this report are provided by Custodians and Trustees currently holding securities for the City of Tustin and SATCRA. The investment program herein shown provides sufficient cash flow liquidity to meet the next six (6) months estimated expenditures. This statement is prepared in conformance with Section 53646 of the Government Code. Signed: Lt- I��it- [.�I•tCJ"r+L- Robert Ammann, Chair, City of Tustin Audit Commission Pamela Arends -King, Finance Director/ City Treasurer CITY OF TUSTIN and THE SUCCESSOR AGENCY TO THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY INVESTMENT REPORT INVESTMENT SUMMARY MARCH 31, 2014 PERFORMANCE MEASUREMENT: Weighted Average Portfolio Life (Days): 459 Weighted Average Portfolio Yield: 0.57% Current 12 me Treasury Equivalent: 0.13% Cash with Fiscal Agents are the Reserve and Construction funds held by Trustees for various City and RDA bond issues. Investment options are limited to those specifically permitted by bond documents. Allowable Total Original Current Current Maaimum Portion of Percentage Purchase Book Market DESCRIPTION PAR VALUE Maturity Portfolio of Portfolio Total Value Value U. S. Treasuries $23,000,000 5 yrs No Limit 14.8% $22,955,802 $22,955,802 $22,914,961 Federal Agencies $40,500,000 5 yrs 75% 26.2% 40 ,645,749 $40,645,749 540,438,333 Municipal Bonds $1,000,000 5 yrs 15% 0.6% 1,003,800 $1,003,800 $1,004,390 Negotiable Certificates of Deposits $5,704,000 N/A 30% 3.7% 5,704,000 $5,704,000 $5,701,290 Corporate Bonds $9,000,000 5 yrs 10% 5.8% 9,023,818 $9,023,818 $9,013,228 Cash NIA N/A N/A 8.3% 12,823,656 12,823,656 12,823,656 Deposits in Orange County Commingled Pool NIA NIA NIA 6.7% 10,383,368 10,383,368 10,383,368 Local Agency Investment Fund NIA N/A N/A 33.9% 52,609,196 52,609,196 52,609196 100.0% $155,149,389 $155,149,389 5154,888,422 Restricted Cash with Fiscal Agents NIA NIA NIA 22,754,257 22,7U,257 22 75d 257 $177,903,646 $177,903,646 $177,642,679 PERFORMANCE MEASUREMENT: Weighted Average Portfolio Life (Days): 459 Weighted Average Portfolio Yield: 0.57% Current 12 me Treasury Equivalent: 0.13% Cash with Fiscal Agents are the Reserve and Construction funds held by Trustees for various City and RDA bond issues. Investment options are limited to those specifically permitted by bond documents. City of Tustin and The Successor Agency for the Tustin Community Redevelopment Agency January 2014 through March 2014 Investment Transactions PURCHASES Purc ase Settlement - Accrued Y'leld to Description CUSIP# Date Date ParAmount Principal Interest Total Purchase Price Maturity Date Coupon Rate Maturity Federal Home Loan Bank US Domestic Bonds 3130AOMQO 01/08/14 01/30/14 $ 4,000,000 $ 4,000,000 $ - $ 4,000,000 01/30/19 11% 210.0% US Treasury Note 91282BA67 01/08/14 01/09/14 $ 3,000,000 $ 2,989,978 5 18G $ 2,990,165 01/30/19 0.25% 0.42% Fannie Mae US Domestic Unsecured 3135GOPD9 02/07/14 2/10/14 $ 5,000,000 $ 4,996,000 $ 19,765 $ 5,015,765 09/27/17 1.07% 1.09% Federal Home Loan Bank US Domestic Bonds 3130AWLO 02/05/14 02/28/14 $ 1,000,000 $ 1,000,000 $ - $ 1,000,000 11/28/17 1.20% 1.20% 1P Morgan Chase & Co Global Sr Unsecured 46625HJG6 02/05/14 02/10/14 $ 2,000,000 $ 2,006,860 $ 1,500 $ 2,005,360 01/25/18 1.80% 1.74% Federal Home Loan Bank - Step Up 3130AXGO 02/10/14 03/06/14 $ 2,000,000 $ 2,000,000 $ - $ 2,000,000 03/06/19 0.5 % -2.5% 0.5 % -2.5% Freddie Mac US Domestic Unsecured 3134G3Y2 03/11/14 03/13/14 $ 2,000,000 $ 1,986,000 $ 65 $ 1,986,065 03/12/18 1.17% 1.35% Berkshire Hathaway Finance Unsecured Bonds 084664BX84 03/19/14 03/24/14 S 2,000,000 $ 2,016,400 $ 2,058 $ 2,018,458 08/15/16 0.95% 0.60% Federal Home Loan Bank US Domestic Bonds 313OA1GQ$ 03/20/14 04/15/14 $ 1,000,000 $ 1,000,000 $ - $ 1,000,000 04/15119 2.07% 2.07% Federal Home Loan Bank US Domestic Bonds 3130A1GZ$ 03/21/14 04/17/14 $ 2,000,000 $ 2,000,000 $ - $ 2,000,000 10/17/17 1.35% 1.35% BMW Bank NA, Negotiable Cent. Deposit 05568P6W2 '03/14/14 03/14/17 $ 248,000 $ 248,000 S - $ 248,000 03/14/17 1.00% 1.00% Ally Bank Negotiable Cert. Deposit 02006LDP5 03/26/14 03/27/17 $ 248,000 $ 248,000 $ - $ 248,000 03/27/17 1.00% 1.00% SALES/MATURITIES/CALLS Purchase Principal Purchase Maturity Principal Sale /Maturity/Call Gain /Loss on Yield to Description CUSIP# Date Date Sales Date Par Amount Amount Amount Principal Coupon Rate Maturity Bank of America NA Certif, care of Deposit 337232049 08/18/13 02/04/14 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ - 0.35% 0.35% Fannie Mae US Domestic Bond Unsecured (CALLED) 3136G1DY2 07/11/13 08/27/15 02/10/14 $ 5,000,ODO $ 4,996,000 $ 5,000,000 $ 4,000 0.45% 0.48% BMW Bank NA, Negotiable Cert. Deposit 05568P4Z7 09/04/13 02/29/16 03/13/14 $ 248,000 $ 248,000 $ 248,520 $ (S20) 0.90% 0.90% (A) Ally Bank Negotiable Cent. Deposit _ 02005Q2A00 06/28/13 12/29/14 03/13/14 $ 248,000 $ 248,000 $ 248,074 $ (74) 0.55% 0.55% (A) (A) The BMW Bank NA Negotiable Certificate of Deposit and the Ally Bank Negotiable Certificate Deposit were sold and replaced with negotiable certificates of deposits from the both banks with a higher yield. The BMW Bank yield went from 0.90% to 1.0% and the Ally Bank went from 0.55 % to 1.0 %.