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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. 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