HomeMy WebLinkAbout19E - INVESTMENT REPORTSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 5, 2019
TITLE:
RECEIVE AND FILE QUARTERLY
REPORT OF INVESTMENTS AS OF
DECEMBER 31, 2018
{STRATEGIC PLAN NO. 4, 1D}
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1" Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Receive and file the Quarterly Report of Investments for the period ending December 31, 2018.
DISCUSSION
In 1995, the State of California enacted legislation revising the reporting requirements relative to
investment of funds by governmental agencies. California Code Section 53646 (b) states that if
a quarterly report is rendered to the legislative body, the quarterly report shall be submitted within
30 days following the end of the quarter covered by the report. In an effort to meet the statutory
requirement, Finance & Management Services Agency submits the Report via email for review
and distribution to the City Council in advance. The report was emailed for distribution on January
28, 2019. The legislation specifies that this quarterly report contain the seven major elements
listed below:
1. Type of investments,
2. Date of maturity,
3. Par and dollar amounts invested in each security,
4. Weighted average maturity of the investments,
5. Market value as of the date of the report,
6. Source of the market value information, and
7. Any funds, investments or programs, including loans,
under the management of contracted parties.
These specifications include a statement outlining the ability of the City to meet the budgeted
expenditures for the subsequent six months be submitted to the City Council on a quarterly basis.
Staff performs an end -of -month expenditure analysis to comply with the expenditure requirement
and a statement confirming the ability to meet this requirement in the monthly and quarter -ending
Treasurer's Report. The information is in compliance with State law and the City's Investment
Policy.
19E-1
Quarterly Report of Investments
February 5, 2019
Page 2
The attached Treasurer's Report (Exhibit 1) accurately reflects all pooled investments held on
behalf of the City as of December 31, 2018.
The following two tables represent: (1) percentage limits set by the City's Investment Policy and
State Law and shows respective City investment portfolio investment types, amounts, and
percentages; and (2) the restricted cash balance as of December 31, 2018.
Type of Investment
Amount Invested $
Portfolio %
COSA Policy
Limits %
State Law
Limits %
Certificate of Deposit (CD)
$2,974,000.00
1.20%
30%
30%
Federal Farm Credit Bank (FFCB)
$41,972,660.00
17.00%
None
None
Federal Home Loan Bank (FHLB)
$57,676,216.33
23.36%
None
None
Federal Home Loan Mortgage Corp. (FHLMC)
$42,233,115.00
17.11%
None
None
Federal National Mortgage Association (FNMA)
$37,738,360.00
15.29%
None
None
Local Agency Investment Fund (LAIF)
$64,257,777.30
26.03%
None
None
sub -Total
$246,852,128.63
100%
Cash
1 $19,613,330.74
Total
1 $266,465,459.37
Restricted Cash
In $
Restricted Cash t, t2
$4,421,260.11
Total
$4,421,260.11
t Restricted cash is held by a Trustee, Bank of New York Mellon, and is segregated from cash used for daily operations.
t2 Please note during November 2018 Staff, with City Council concurrence, transferred approximately $5.8 million from its
Restricted Cash to complete the refinancing of the former 2003 and 2011 Successor Agency Debt (2018 Refinancing Debt).
The following City investment portfolio graph represents percentages within the respective
investment types as of December 31, 2018.
City of Santa Ana
Investment Portfolio Asset Allocation
CD December 31, 2018
• CMifiate of Deposit (CD)
• Federal Farm CredH Bank (FFCB)
• Fedwal Nome Loan Bank (FNIB)
■ Federal Home Loan Mortgage Corp.
(FHLMC)
• Federal National Wnpp
Association (FNMA)
• Local Agency Investment Fund (LAIF)
The following three tables represent, as of December 31, 2018: (1) the aggregate Effective Rate
of Return on the City's investment portfolio, both month to date (MTD) and year to date (YTD); (2)
19E-2
Quarterly Report of Investments
February 5, 2019
Page 3
the aggregate Average Market Yield To Date (AMTD); and (3) the breakdown of AMTD by
investment type.
Aggregate Effective Rate of Return
Month To Date (MTD) 1.72%
Year To Date (YTD) 1.63%
Aggregate Average Market Yield To Date
Average Month To Date (AMTD) 1.85%
AMTD Breakdown by
Type of Investment
Par Value
of Investments
Yield to
Maturity
% of
Portfolio
Average Market Yield
to Date
Certificate of Deposits
$2,974,000.00
1.850%
1.20%
0.022%
LAIF
$64,257,777.30
2.208%
26.03%
0.575%
Federal Agency securities
$179,620,351.33
1.722%
72.77%
1.253%
Total
$246,852,128.63
1.850%
1 100.00%
1.850%
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #4 - City Financial Stability, Objective #1
(Maintain a stable, efficient and transparent financial environment), Strategy D (Develop a fiscal
health analysis tool that informs a department of its financial position in order to assist in its
decision making process).
FISCAL IMPACT
There is no fiscal impact associated with this action.
/44�
Kathfyn Downs, CPA
Executive Director
Finance and Management Services Agency
Exhibit: 1. Treasurer's Report
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