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HomeMy WebLinkAboutFin CC Investment Report 2015.09Agenda Item No: 3.f Meeting Date: November 2, 2015 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Van Bach City Manager Approval: _ Accounting Manager SUBJECT: QUARTERLY INVESTMENT REPORT RECOMMENDATION: ACCEPT INVESTMENT REPORT FOR THE QUARTER ENDING SEPTEMBER 30, 2015, AS PRESENTED BACKGROUND: Pursuant to the State of California Government Code Section 53601 and the City's investment policy, last reviewed and approved by Council on June 15, 2015, staff provides the governing body a report on the City's investment activities. The report outlines the investment activity for the preceding quarter. Included on the report are the cost of each investment, the interest rates (yield), maturity dates, and market value. Separate schedules are prepared for both the City and the Successor Agency to San Rafael Redevelopment Agency. Since December 2011, the City's pooled funds not used for current operations have been invested almost exclusively in the Local Agency Investment Fund (LAIF), a State-run investment pool. The one exception to this was a $1,750,000 investment in assessment district bonds. Beginning in March 2014, the City returned to an investment strategy that included purchases of securities outside of LAIF with the assistance of its investment advisor, Cutwater Asset Management. ANALYSIS: As of September 30, 2015, the primary LAIF account had a balance of $28,627,353. The other LAIF account containing housing funds for future administrative expenses contained $143,711. Portfolio returns on LAIF deposits were approximately .34% at quarter end. The remaining investment assets included the $1,582,700 balance of Pt. San Pedro Assessment District bonds, and $18,885,620 in government agency securities and corporate bonds (including T -Note, FHLB, GE, FHLML, FFCB, FNMA, Toyota, John Deere Capital and IBM Corp). The overall portfolio return for September 30, 2015 was .49%. The City's Westamerica account had a balance of $1,585,095 at quarter end. Exhibit A is composed of the three monthly reports summarizing the City's investments for the quarter ended September 30, 2015. FOR CITY CLERK ONLY File No.: Sr -/e �k S Council Meeting: 1113,12-C,15 Disposition:L- SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 FISCAL IMPACT: No financial impact occurs by adopting the report. The City continues to meet the priority principles of investing - safety, liquidity and yield in respective order. The portfolio remains conservatively invested. Sufficient liquidity exists to meet daily operating and capital project requirements for the next six months. Operating funds, as defined for this report, exclude cash held with fiscal agents for the payment of bond principal and interest. OPTIONS/ACTION REQUIRED: The City Council should adopt the report as presented in order to satisfy current State Investment Code requirements and City policy. Attachment WACouncil Material\Staff Repo rts\201 5\C ity\cityinv rp09301 5. doc SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 TREASURER'S CERTIFICATION I CERTIFY THAT ALL INVESTMENTS MADE ARE IN CONFORMANCE WITH THE CITY'S APPROVED INVESTMENT POLICY AND STATE INVESTMENT REGULATIONS. THE CITY HAS SUFFICIENT LIQUIDITY TO MEET ALL OF THE OBLIGATIONS REQUIRED DURING THE NEXT SIX-MONTH PERIOD. MARK MOSES FINANCE DIRECTOR CNN0co O O O T �CDNTO CVOrO N — 0 0 0 cm,co �000CD C (n U 0 0 Co—r -MM a) O O rr >MM NC 3 X aL�F-LL N T a.+ T 2 M Y M T U _r. 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Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) 4 CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: 11/2/2015 From: Mark Moses Department: Finance Date: 10/29/2015 Topic: QUARTERLY INVESTMENT REPORT Subject: QUARTERLY INVESTMENT REPORT Type: ❑ Resolution ❑ Ordinance ❑ Professional Services Agreement ❑ Other: APPROVALS ® Finance Director Remarks: ❑ City Attorney Remarks: N/A ❑ Author, review and accept City Attorney / Finance changes Remarks: ® City Manager Remarks: no changes