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HomeMy WebLinkAboutFin SA Investment Report 2011.092 Agenda Item No: Meeting Date: October 17, 2011 SAN RAFAEL REDEVELOPMENT AGENCY SAN RAFAEL REDEVELOPMENT AGENCY AGENDA REPORT Department: FINANCE Prepared by: Van Bach, Executive Director Approval-yi" Accounting Supervisor SUBJECT: INVESTMENT REPORT FOR Sli-:PT. 2011 RECOMMENDATION: ACCEPT INVESTMENT REPORT FOR THE MONTH ENDING SEPTEMBER 30, 2011, AS PRESENTED BACKGROUND: Pursuant to the State of California Government Code Section 53601, staff is required to provide the governing body a report regarding the City's investment activities. Each month the Finance Department prepares a report outlining the major investments for the preceding month. Included on the report are the cost of each instrument, the interest rates (yield), maturity dates, and market value. ANALYSIS: The refunding of 1992 and 1995 Redevelopment Agency bonds in October of 2002 produced $3,050,000 of new proceeds. These dollars are invested in the "Refunding Bonds" account with the Local Agency Investment Fund (LAIF). $2,327,000 was set aside in January 2002 as part of an agreement to reimburse the San Rafael High School District. The remainder ($723,000) was transferred to the LAIF account noted in the next paragraph and is held for future projects or administrative costs. The ending cash balance of this investment account at month end was $1,129,847. No draws were made from this account in September 2011. The other State Pool account ($3,141,107 held at LAIF) contains funds for future administrative expenses and funds from the refunding of the 1999 bonds for project use. These resources are intended to provide sufficient operating capital in order to finance the Agency from now through July 2012. The State Pool contains housing funds, set aside as required by law for affordable housing uses. The remaining unspent portion of 1999 bond proceeds are held an account with U. S. Bank ($1,340,615) allowing easy liquidity for approved Agency's projects which are in FOR AGENCY SECRETARY ONLY File No.: e- a3� �- I -� Agency Meeting: llt- 1;1 i , �1 j�� �- f , j Disposition: SAN RAFAEL REDEVELOPMENT AGENCY REPORT / Paze: 2, progress, not yet under way, or require final retention payments. Examples include the Fourth Street Decorative Light Installations, Fourth Street Environmental Clean-up and the Corporation Yard Clean-up. No draws were made in September 2011. The balance of the 2003 Lease Revenue Bonds committed to the construction of the Third @ C Street parking structure is presented. The San Rafael Joint Powers Financing Authority issued the bonds in April 2003. At that time, $6,560,528 was transferred from the Authority to the Agency in order to fully fund construction, management and equipment needs of the project. As of the reporting month, $267 remains for this project. No draws were made on the Lease Revenue Bonds in September 2011. The refunding of the callable portion of the 1999 Project Tax Allocation Bonds in December 2009 produced additional proceeds of $829,000 (held in the LAIF account). The additional proceeds will be used to make street and parking improvements and other projects to benefit the Project Area. The proceeds were also used to pay for the issuance costs associated with the Series 2009 Bonds. The expense account for issuance costs is held at US Bank ($8,753). This balance will be held for 180 days from issuance. Any balance after June 30, 2010 can be transferred to the project account for project use. The Agency's West America checking account, which is used for the weekly disbursements, had a balance of $1,982 at month end. Rates of return on the LAIF pools are intended to be liquid, and could produce about a 0.41% investment returns (for the third quarter of 2011). A graph is presented showing the monthly balance of cash for the current (fiscal year 2011-2012) as well as preceding three years. Balances are compared on a monthly basis. Since the majority of resources are used to meet project needs, the graph reflects a continued decline in overall available cash to meet future Agency obligations (project, housing and administrative). FISCAL IMPACT: No financial impact occurs by adopting the report. The Agency continues to meet the priority principles of investing - safety, liquidity and yield in this respective order. The portfolio remains conservatively invested. Sufficient liquidity exists to meet daily capital project requirements for the next six months. The Agency Board should adopt the report as presented in order to satisfy current State Investment Code requirements. The Board should accept and file the investment report as presented. ATTACHMENTS WAManagement Services- WorkFile\Finance- WorkFilekCouncil MateriakStaff Reports1201 I /Agency\rainvrpt9201 tdoc SAN RAFAEL REDEVELOPMENT AGENCY REPORT / Page: 3, TREASURER'S CERTIFICATION I CERTIFY THAT ALL INVESTMENTS MADE ARE IN CONFORMANCE WITH THE CITY OF SAN RAFAEL'S APPROVED INVESTMENT POLICY AND STATE INVESTMENT REGULATIONS. THE AGENCY HAS SUFFICIENT LIQUIDITY TO MEET ALL OF THE OBLIGATIONS REQUIRED DURING THE NEXT SIX-MONTH PERIOD. JANET PENDOLEY INTERIM FINANCE DIRECTOR SAN RAFAEL REDEVELOPMENT CASH and INVESTMENTS 9130111 puno*AeE MATURITY .neLo« pumoVAos PAR MARKET Days to n,oF |oeusn TYPE DATE DATE PRICE VALUE VALUE' mummv TOTAL - GOVERNMENT AGENCY ISSUES: - - - 0�0096 Total Custodial Investments MANAGED POOL ACCOUNTS: U G BANK 1999 PROJECT SERIES OPEN OPEN 0.00 $ 1.340.614.74 $ 1.340.614.74 $ 1.340.61474 2UU2TAX ALLOCATION REFUNDING BONDS SP OPEN OPEN 0.41 $ 1.129.847.34 $ 1.129.84734 $ 1.128.847.34 1 STATE POOL SP OPEN Opsw oA1 $ 3.141.106J1 $ 3.1*1.100J1 $ 3.141.106.71 1 UNION BANK -JPA oouaA |MpROvEMEwTpUwD OPEN OPEN 0D1 $ 26&61 $ 266.01 $ 288.81 1 U. S. BANK 2009 PROJECT TAX REFUNDING EXPENSE OPEN OPEN 0.00 $ 8.752.65 $ 8.752�65 $ 8.752.55 1 *$ 5.620.588.05 $5.62O.58R.O5 m5.62U.5Wn5 99.96Y6 TOTAL INVESTMENTS 3 6.6e0.588.05 6.620.688.06 6.620.588.06 CASH ACCOUNTS: VvESTAMER|CA Do wv\ N/4 $ 1.982.02 $ 1.882.02 $ 1.982.02 1 0.04% TOTAL CASH &INVESTMENTS _ $ 6,622.570.07 $6.*22.s7V.Vr ms,622.5?O.V7 1$0.0096 Y6Portfolio held 1year or|aso | 100% | 1year % years 3 years 4 years nveamormore o 5,e22570 o m - $ n 'Source ~ safekeeping agent TYPE: ^ Weighted average days mmaturity a^~Bankers Acceptance ^Annualized yield wMarket oo~Demand Deposit (0000xmm "based vnPAR Value ox~Government Agency Market Yield wr= Medium Term Note TIN ~ooTreasury Note GIC Guaranteed Investment Contract Market Value $7 000,000 00 $6,000,00000 Ye $5 000,000 00 $4.000 000 00 $3,000 000 00 $2,000,00000 $1,000,000 00 July August September October 0 Fiscal Year 08/09