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HomeMy WebLinkAboutFin SA Investment Report 2012.04Agenda Item No: 9 C SAN RAFAEL AS SUCCESSOR AGENCY TO Meeting Date: May 21, 2012 SAN RAFAEL REDEVELOPMENT AGENCY SAN RAFAEL AS SUCCESSOR AGENCY TO SAN RAFAEL REDEVELOPMENT AGENCY AGENDA REPORT Department: FINANCE 41 Prepared by: Van Bach, Executive Director Approva)OI/t, Accounting Supervisor SUBJECT: INVESTMENT REPORT FOR APRIL 2012 RECOMMENDATION: ACCEPT INVESTMENT REPORT FOR THE MONTH ENDING APRIL 30, 2012, AS PRESENTED BACKGROUND: Pursuant to the State of California Government Code Section 53601, staff is required to provide the governing body a report on 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 investment, the interest rates (yield), maturity dates, and market value. ANALYSIS: The refunding of 1992 and 1995 Redevelopment Agency bonds in November 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) for future projects or administrative costs. The ending cash balance of this investment account at month end was $1,132,390. The other LAIF account $1,400,800 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. The LAIF 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 progress, not yet under way, or require final retention payments. Examples include the FOR AGENCY SECRETARY ONLY File No.: fq - 1") 3 Agency Meeting: Disposition: SAN RAFAEL AS SUCCESSOR AGENCY REPORT / Page: Fourth Street Decorative Light Installations, Fourth Street Environmental Clean-up and the Corporation Yard Clean-up. No draws were made in April 2012. 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. 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 City of San Rafael Successor Agency for San Rafael Redevelopment Agency checking account, which is used for the weekly disbursements, had a balance of $25,149 at month end. Rates of return on the LAIF pools are intended to be liquid, and could produce about a .37% investment returns for the second quarter of 2012. A graph is presented showing the monthly balance of cash for the current (fiscal year 2011-2012) as well as preceding three years. 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. OPTIONS: The Agency Board should adopt the report as presented in order to satisfy current State Investment Code requirements. ACTION REQUIRED: The Board should accept and file the investment report as presented. SAN RAFAEL AS SUCCESSOR 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. MARK MOSES INTERIM FINANCE DIRECTOR