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2012 City Treasurer - Investment Summary Report
Council/Agency Meeting Held: Z-- Deferred/Continued to: AAppro dO ❑ Conditionally Approved ❑ Denied e,J�Ci Jerk' Signa e Council Meeting Date: December 17, 2012 Departmen D Number: CT 12-018 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and file the City Treasurer's October 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for October 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable. Recommended Action: Motion to: Receive and file the Monthly Investment Report for October 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique monthly report. Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Improve long-term financial sustainability. Enhance economic development. Attachment(s): an III IN 18 P pMonthlyMInvestment Report for October 2012 Item 13. - 1 HB -40- ATTACHMENT # 1 r-r CD <<--��NTINGT02 o`ti00APORA7 B h _ ___: cn9� City of Huntington Beach s City of l l6 2000 Main St. Huntington Beach, 9- = Portfolio Management W 2cUNTV CP o� Portfolio Summary October 31, 2012 Par Market Book %.of Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 366 Equiv. Certificates of Deposit 250,000.00 250,000.00 250,000.00 0.16 296 266 0.600 0.608 Federal Agency issues-Coupon 130,000,000.00 130,562,530.00 130,163,541.48 82.65 1,486 1,266 1.020 1.034 Local Agency Investment Funds 18,133,250.95 18,133,250.95 18,133,250.95 11.51 1 1 0.343 0.348 Medium Tenn Notes 8,810,000.00 9,030,384.40 8,941,064.68 5.68 957 421 1.487 1.508 Investments 157,193,250.95 157,976,165.35 157,487,857.11 100.00% 1,283 1,071 0.968 0.981 Cash and Accrued Interest Accrued Interest at Purchase 12,129.17 12,129.17 Subtotal 12,129.17 12,129.17 Total Cash and Investments 157,193,250.95 157,988,294.52 157,499,986.28 1,283 1,071 0.968 0.981 Total Earnings October 31 Month Ending Fiscal Year To Date Fiscal Year Ending C�J Current Year 126,619.29 126,619.29 Current Budget 112,000.00 112,000.00 1,344,000.00 N Last Year Actual 156,250.00 156,250.00 1,875,000.00 Average Daily Balance 163,378,685.54 163,378,685.54 Effective Rate of Return 0.91% 0.91% 1 certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on November 5,2012. A copy of this policy is available at the office of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via Interactive Data Corporation. Alisa Cutchen,CITY TREASURER Reporting period 1010112012-10/3112012 Portfolio CITY AP Run Date:11/28/2012-09:20 PM(PRF_PM1)7.3.0 Report Ver.7.3.3b City of H13 Portfolio Management Page 1 Portfolio Details-Investments October 31, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Certificates of Deposit 06426GAA5 3946 Bank of the West 10/DZ/2D12 250,000.00 260,000.00 250,000.00 0.600 0.608 266 07/25/2013 Subtotal and Average 241,936.48 260,000.00 250,000.00 250,000.00 0.608 266 Federal Agency Issues-Coupon 14912L5D9 $936 Caterpillar Financial Corp. 08/03/2012 3,000,000.00 3,036,420.00 3,044,445.35 1.100 AA 0.520 939 05/29/2015 3133EAHZ4 3926 Federal Farm Credit Bank 03/20/2012 3,000,000.00 3,018,210.00 3,000,000.00 1.300 AA 1.300 1,600 03/20/2017 3133EAUES 3932 Federal Farm Credit Bank 06/14/2012 5,000,000.00 5,016,200.00 5,000,000.00 0.875 AA 0.875 1,321 06/14/2016 3133EAUE6 $933 Federal Farm Credit Bank 06/14/2012 5,000,000.00 5,016,200.00 5,000,000.00 0.875 AA 0.875 1,321 06/14/2016 3133EAJ33 3942 Federal Farm Credit Bank 08/15/2012 5,000,000.00 5,D14,450.00 4,997,631.94 0.730 AA 0.743 1,383 08/15/2016 3133EAP77 3944 Federal Farm Credit Bank 06/27/2012 5,000,000.00 5,008,85D.00 5,000,000.00 0.480 AA 0.480 1,029 08/27/2015 3133805K9 3941 Federal Home Loan Bank 08/08/2012 5,000,000.00 4,988,750.00 4,999,307.36 0.720 AA 0.724 1,376 08/08/2016 3134G361-3 391D Federal Home Loan Mort Corp 12/05/2011 5,000,000.00 5,004,850.00 5,000,000.00 1.000 AA 1.000 764 12/05/2014 3134G3CV0 3911 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,005,450.00 5,000,000.00 1.000 AA 1.000 778 12/19/2014 3134G3DY3 3912 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,007,750.00 5,000,000.00 0.875 AA 0.875 778 12/19/2014 3134G3FG0 3913 Federal Home Loan Mort Corp 12/27/2011 3,000,000.00 3,002,730.00 3,000,000.00 0.650 AA 0.650 603 06/27/2014 3134G3HV5 3919 Federal Home Loan Mort Corp 01/25/2012 5,000,000.00 5,016,400.00 5,000,000.00 1.125 AA 1.490 1,546 01/25/2017 3134G3FC9 3920 Federal Home Loan Mort Corp 01/09/2012 5,000,000.00 5,034,950.00 5,000,000.00 1.000 AA 1.000 1,063 09/30/2015 x 3134G3GN4 3921 Federal Home Loan Mort Corp 01/18/2012 7,000,000.00 7,023,800.00 7,000,000.00 1.500 AA 1.500 1,539 01/182017 3134G3KC3 $922 Federal Home Loan Mort Corp 01/27/2012 5,000,000.00 5,039,500.00 5,000,000.00 1.000 AA 1.000 1,182 01/27/2016 j� 3134G3LU2 3925 Federal Home Loan Mort Corp 02/14/2012 5,000,000.00 5,044,850.00 5,000,000.00 1.050 AA 1.316 1,566 02/14/2017 3134G31390 394D Federal Home Loan Mort Corp 08/152012 5,000,000.00 4,999,800.00 5,000,000.00 0.875 AA 0.875 1,748 08/15/2017 31398A3L4 3854 Fed.Nat'I Mort Assoc. 09/17/2010 3,000,000.00 3,024,030.00 3,000,000.00 1.125 AA 1.125 32D 09/17/2013 3136FTVF3 3916 Fed.Nat'I Mort.Assoc. 12/28/2011 5,000,000.00 5,010,35D.OD 5,000,000,00 1.000 AA 1.709 1,518 12/28/2016 3136FTXDS 3917 Fed.Nat]Mort Assoc. 12/28/2011 5,000,000.00 5,008,350.Oo 5,000,000.00 1.100 AA 1.100 1,152 12/28/2015 3136FTA58 3923 Fed:Natl Mort.Assoc. 01/30/2012 5,000,000.00 5,019,050.00 5,000,000.00 1.300 AA 1.300 1,551 01/30/2017 3136FTK73 3924 Fed.Nat'l Mort.Assoc. 02/22/2012 5,000,000.00 5,025,250.00 5,000,000.00 1.375 AA 1.375 1,574 02/22/2017 3136GOJL6 3929 Fed.Nat'l Mort.Assoc. 06/072012 5,000,000.00 5,022,700.00 5,000,000.00 1.000 AA 1.257 1,679 06/07/2017 3136GOMK4 3931 Fed.Nat'l Mort.Assoc. 06/21/2012 5,O00,000,DD 5,016,100.00 5,000,000.00 1.000 AA 1.246 1,693 06/21/2017 3136GDMV0 3934 Fed.Natl Mort Assoc- 06/21/2012 5,000,000,00 5,005,300.00 5,000,000.00 0.800 AA 0.800 1,236 03/21/2016 3136GONR8 3935 Fed.Nat'l Mort.Assoc. 06/282012 5,000,000.00 5,010,250.00 4,994,283.85 0.500 AA 0.966 1,335 06/28/2016 24422ERK7 3937 John Deere Capital 08/032012 3,000,000.00 3,047,070.00 3,048,792.62 1.250 A-1 0.465 761 12/02/2014 931142CX9 3943 Wal-Mart Stores 08/142012 3,000,000,00 3,094,920.00 3,079,080.36 1.500 AA 0.606 1,088 10252015 Subtotal and Average 134,198,325.64 130,000,000.00 130,562,630.00 130,163,641.48 1.034 1,266 M--I fD Portfolio CITY AP Run Date:11282012-09:20 PM(PRF PM2)7.3.0 w • Report Ver.7.3.3b CD w City of 1-113 t Portfolio Management Page 2 Portfolio Details-Investments October 31, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Local Agency Investment Funds SYS982 982 Laif City 18,133,250.95 18,133,250.95 18,133,250.95 0.348 0.348 1 Subtotal and Average 18,121,790.65 18,133,250.95 18,133,250.95 18,133,260.95 0.348 1 Medium Term Notes 084664AT8 3895 Berkshire Hathaway Fin 08/26/2011 1,310,000.00 1,437,384.40 1,407,307.27 4.850 AA 1.390 805 01/15/2015 149121-4Y4 3930 Caterpillar Financial Corp. 05/30/2012 2,000,000.00 2,026,440.00 2,008,950.91 1.125 A 0.911 774 12/15/2014 36962G4X9 3906 General Electric Capital Corp 09/29/2011 2,000,000.00 2,036,620.00 2,012,259.22 2.100 AA 1.570 432 01/07/2014 36982GZY3 3997 General Electric Capital Corp 09/16/2011 1,500,000.00 1,521,120.00 1,512,956.18 5.450 AA 1.200 75 01/15/2013 36186CBF9 3763 GMAC FDIC Insured 06/30/2009 2,000,000.00 2,008,820.00 1,999,591.10 2.200 AA 2.361 48 12/19/2012 Subtotal and Average 10,816,633.77 8,810,000.00 9,030,384.40 8,941,064.68 1.608 421 Total and Average 163,378,685.54 157,193,250.95 167,976,165.35 167,487,857.11 0.981 1,071 r� -P -P Portfolio CITY AP Run Date:1128I2012-09:20 PM(PRF PM2)T3.0 City of HB Portfolio Management Page 1 Activity By Type October 1, 2012 through October 31, 2012 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Certificates of Deposit 06426GAA5 3946 Bank of the West 0.600 10/02/2012 250,000.00 0.00 Subtotal 250,000.00 0.00 260,000.00 Federal Agency Issues-Coupon 3136FTFG9 3909 Fed.NaVI Mort Assoc. 1.260 10/26/2012 0.00 5,000,000.00 Subtotal 0.00 6,000,000.00 130,163,641.48 Local Agency Investment Funds (Monthly Summary) SYS982 982 Laif City 0.348 25,376.38 0.00 Subtotal 25,376.38 0.00 18,133,250.95 Medium Term Notes 36185JAA7 3804 GMAC FDIC Insured 1.750 10/30/2012 0.00 2,000,000.00 Subtotal 0.00 2,000,000.00 8,941,064.68 Total 275,376.38 7,000,000.00 167,487,857.11 .p I—I Portfolio CITY AP ~ Run Date:11/28/2012-09:20 (.J.i PM(PRF PM3)7.3.0 Report Ver.7.3.3b N w City of FIB Portfolio Management Page 1 Activity Summary October 2011 through October 2012 Yield to Maturity Managed Number Number Month Number of Average 360 365 Pool of Investments of investments Average Average End Year Securities Balance Equivalent Equivalent Rate Purchased Redeemed Term Days to Maturity October 2011 36 155,770,159.22 1.239 1.256 0.385 3 2 1,049 167 November 2011 34 148,389,001.57 1.265 1.283 0.401 0 2 1,075 156 December 2011 37 147,666,119.75 1.154 1.170 0.382 8 5 1,067 888 January 2012 40 161,736,755.70 1.143 1.159 0.385 5 2 1,138 963 February 2012 42 174,741,686.41 1.197 1.214 0.389 2 0 1,242 1,043 March 2012 38 174,394,254.80 1.158 1.174 0.383 1 5 1,186 993 April 2012 40 173,406,734.12 1.174 1.191 0.367 2 0 1,221 1,015 May 2012 40 181,650,062.55 1.168 1.184 0.363 1 1 1,218 994 June 2012 37 188,798,856.18 1.078 1.093 0.358 6 9 1,264 1,106 July 2012 33 178,453,606.72 1.011 1.025 0.363 0 4 1,133 964 August 2012 39 178,919,282.36 1.034 1.049 0.377 7 1 1,320 1,129 September 2012 37 169,501,918.57 1.000 1.014 0.348 0 2 1,299 1,099 October 2012 35 163,378,685.54 0.968 0.981 0.348 1 2 1,283 1,071 Average 38 168,946,695.08 1.122% 1.138% 0.373 3 3 1,192 891 CG Portfolio CITY AP Run Date:1 V28/2012-09:20 PM(PRF PM4)7.3,0 Report Ver,7.3.3b f City of HB Portfolio Management Page 1 Distribution of Investments By Type October 2011 through October 2012 October November December January February March April May June July August September October Average Security Type 2011 2011 2011 2012 2012 2012 2012 2012 2012 2012 2012 2012 2012 by Period Repurchase Agreements Certificates of Deposit 0.2 Commercial Paper-interest Bearing Federal Agency Issues-Coupon 61.9 61.1 65.8 69.1 74.8 70.9 72.5 72.1 76.1 67.2 82.2 82.3 82.7 72.2% Local Agency Investment Funds 22.1 21.6 19.0 17.2 11.5 17.5 16.5 16.4 16.7 25.5 10.4 11.0 11.5 16.7% Treasury Securities-Coupon Medium Term Notes 16.0 17.3 15.2 13.7 13.7 11.6 11.0 11.5 7.2 7.3 7.4 6.7 5.7 11.1% Negotiable CD's Certificates of Deposit-Bank Mortgage Backed Securities Bankers Acceptances-Amortizing Commercial Paper Disc.-Amortizing Federal Agency Disc.-Amortizing Treasury Discounts-Amortizing Miscellaneous Discounts-Amortizing Money Market Acct Rolling Repurchase Agreements -1� -.1 �p Portfolio CITY r AP Run Date:11128/2012-09:20 PM(PRF PMS)7.3.0 W Report Ver.7.3.3b 00 H r+ f'D w City of 1-113 Portfolio Management Page 1 Interest Earnings Summary October 31, 2012 October 31 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 57,625.00 57,625.00 Plus Accrued Interest at End of Period 434,219.38 434,219.38 Less Accrued Interest at Beginning of Period ( 355,348.37) ( 355,348.37) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 136,496.01 136,496.01 Adjusted by Premiums and Discounts -15,232.83 -15,232.83 Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 121,263.18 121,263.18 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) x Interest Earned during Period 0.00 0.00 Adjusted by Premiums and Discounts 0.00 0.00 Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected 25,376.38 25,376.38 Plus Accrued Interest at End of Period 7,537.40 7,537.40 Less Accrued Interest at Beginning of Period ( 27,557.67) ( 27,557.67) Interest Earned during Period 5,356.11 5,356.11 Total Interest Earned during Period 141,852.12 141,852.12 Total Adjustments from Premiums and Discounts -15,232.83 -15,232.83 Total Capital Gains or Losses 0.00 0.00 Total Earnings during Period 126,619.29 126,619.29 Portfolio CITY AP Run Date:1128/2012-09.20 PM(PRF PM6)7.3,0 Report Ver.7.3.3b State of California Pooled Money Investment Account Market Valuation 10/31/2012 United States Treasu Bills $ 19,065,944,630.43 $ 19,079,407,850.00 NA Notes $ 14,730,451,110.16 $ 14,771,132,000.00 $ 14,934,907.50 Federal Agency: SBA $ 532,731,669.92 $ 533,233,533.89 $ 550,366.39 MBS-REMICs $ 279,050,279.32 $ 302,583,309.20 $ 1,333,499.55 Debentures $ 750,426,660.88 $ 751,178,500.00 $ 1,484,166.00 Debentures FR $ - $ - $ Discount Notes $ 4,293,453,222.16 $ 4,297,190,000.00 NA GNMA $ 7,718.08 $ 7,776.60 $ 76.70 IBRD Debenture $ 399,951,803.28 $ 400,000,000.00 $ 750,000.00 IBRD Deb FR $ - $ - $ CDs and YCDs FR $ 400,000,000.00 $ 400,000,000.00 $ 553,345.83 Bank Notes $ - $ - $ - CDs and YCDs $ 3,400,085,240.48 $ 3,399,549,073.61 $ 2,041,236.12 Commercial Paper $ 2,959,584,311.07 $ 2,959,530,627.78 NA Corporate: Bonds FR $ - $ - $ - Bonds $ - $ - $ Repurchase Agreements $ - $ - $ Reverse Repurchase $ - $ - $ Time Deposits $ 4,367,640,000.00 $ 4,367,640,000.00 NA AB 55&GF Loans $ 11,779,840,040.72 $ 11,779,840,040.72 NA TOTAL $ 62,959,166,686.50 $ 63,041,292,711.80 $ 21.647.598.09 Fair Value Including Accrued Interest $ 63,062,940,309.89 Repurchase Agreements,Time Deposits,AB 55 &General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). xB -49- Item 13. - 10 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department October 2012 Cash Receipts and Disbursements September 2012 October 2012 Receipts Property Tax Receipts $1,283,151 $184,961 Utility Tax Receipts (UUT) 1,757,281 1,731,668 Sales Tax Receipts 3,286,178 1,672,800 112 Cent Safety Sales Tax Receipts 159,694 150,975 Highway Users Tax Receipts (HUT) - 375,494 Transient Occupancy Tax Receipts (TOT) 836,801 604,474 Government Funds 219,855 383,536 Capital Funds 18,662 6,632,834 Debt Service Funds - 1,000 Enterprise Funds 5,055,760 4,952,741 Fiduciary Funds 6,117,533 1,397,036 Special Revenue Funds 2,044,345 1,488,464 All Other Receipts 1,470,301 12,017,631 Total Receipts $22,249,562 $31,593,614 Disbursements Total Disbursements (36,433,521) (32,606,191) Net Change in Cash Flow ($14,183,958) ($1,012,577) Summary of Cash by Fund September 2012 October 2012 General Fund 54,111,629 56,356,016 Government Funds 1,228,185 1,366,096 Capital Funds 10,628,929 6,062,427 Debt Service Funds 16,263 13,673 Enterprise Funds 91,943,183 86,976,715 Fiduciary Funds 10,076,625 8,521,860 Special Revenue Funds 11,982,667 16,807,167 General Ledger Cash Balances 179,987,483 176,103,953 "Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Oct 2012 11/29/2012 Item 13. - 11 HB -50- Council/Agency Meeting Held:_,— —fin/� Deferred/Continued to: App ve ❑ Conditionally Approved ❑ Denied .ra �Ly C 1pfk's Si n ture Council Meeting Date: November 5, 2012 Department ID Number: CT 12-017 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Adopt Resolution No. 2012-74 approving the Fiscal Year 2012/2013 Investment Policy Statement of Issue: Pursuant to California Government Code, the Treasurer of the local agency may render an annual statement of investment policy to the legislative body for consideration and adoption. The City Treasurer, with the assistance of the Investment Advisory Board, has prepared an updated investment policy. Financial Impact: Not Applicable Recommended Action: Motion to: Adopt Resolution No. 2012-74, "A Resolution of the City Council of the City of Huntington Beach Approving the Statement of Investment Policy for 2012/2013" adopting the Fiscal Year 2012/2013 Investment Policy. Alternative Action(s): Do not approve attached Resolution adopting the Investment Policy and advise staff how to proceed. Item 3. - I xB -50- REQUEST FOR COUNCIL ACTION MEETING DATE: 11/5/2012 DEPARTMENT ID NUMBER: CT 12-017 Analysis: The purpose of the Investment Policy is to establish cash management and investment guidelines for the City Treasurer, who is responsible for the administration of the City of Huntington Beach's investments. Each investment transaction and the entire portfolio must comply with the California Government Code, Sections 53600 through 53683, and all other applicable laws and regulations. The City's Investment Policy may be rendered annually to the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity and return. The attached Investment Policy has been reviewed by the City's Investment Advisory Board and approved by the City Attorney to be in compliance with the Government Code Section 53601. Recommendations: There are two items proposed as follows: Section 10.0 Authorized & Suitable Investments: Proposed Clarification: For clarification, it is recommended that the reference to the Huntington Beach Redevelopment Agency (RDA) be removed from Section 10.0 Authorized & Suitable Investments, Section M. The Local Agency Investment Fund (LAIF), as the RDA is no longer in existence. Section 15.0 Maximum Maturities: Proposed Addition: It is recommended that the provision be added to Section 15.0 Maximum Maturities: A maximum of 50% of the book value of the total portfolio shall be in the 4-5 year maturity range. This would assist to ensure that the policy objective of liquidity maintenance is met. Currently, there is no provision on maximum maturities. Environmental Status: Not Applicable. Strategic Plan Goal: Improve long-term financial sustainability. Improve internal and external communication. Attachment(s): 1. Resolution No. 2012-74, "A Resolution of the City Council of the City of Huntington Beach Approving the Statement of Investment Policy for 2012/2013" 2. Fiscal Year 2012/2013 Investment Policy— Exhibit "A" xB -s 1- Item 3. - 2 ATTACHMENT # 1 Irein 1. - 3 iiii -. _ RESOLUTION NO. 2012-74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING THE STATEMENT OF INVESTMENT POLICY FOR 2012/2013 WHEREAS,the City Council of the City of Huntington Beach is required to approve an annual statement of investment policy; and The duly elected City Treasurer has recommended approval of the City of Huntington Beach Statement of Investment Policy, attached hereto as Exhibit"A" and incorporated herein by this reference; and The duly appointed Investment Advisory Board has reviewed the City Treasurer's recommended policy and also recommends approval thereof; and The policy is consistent with California Government Code §53600, et seq. NOW, THEREFORE,the City Council of the City of Huntington Beach does hereby resolve as follows: The City Council of the City of Huntington Beach hereby approves and adopts the attached City of Huntington Beach Statement of Investment Policy for Fiscal Year 2012/2013 so long as applied in a manner consistent with state and local law as amended from time to time. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 5th day of November , 2012 Mayor REVI AND APPROVED: APPROVED AS TO FORM: Ci` ager ty A orney b� INIT TED AND ROVED: City Treasurer 12-3510/85633.doc Exhibit"A" - Resolution No.2012-74 CITY OF HUNTINGTON BEACH STATEMENT OF INVESTMENT POLICY FISCAL YEAR 2012/2013 a • 0 • 1', t goy�4�• � b 1 xB -55- Item 3. - 6 Exhibit"A" - Resolution No. 2012-74 CITY OF HUNTINGTON BEACH STATEMENT OF INVESTMENT POLICY FISCAL YEAR 2012/2013 TABLE OF CONTENTS SECTION 1.0 Purpose.....................................................................................................................2 2.0 Policy........................................................................................................................2 3.0 Scope.........................................................................................................................2 4.0 Prudence..................................................................................................................3 5.0 Objective..................................................................................................................4 6.0 Investment Advisory Board...................................................................................4 7.0 Delegation of Authority..........................................................................................5 8.0 Ethics and Conflicts of Interest.............................................................................5 9.0 Authorized Financial Dealers &Institutions .......................................................5 10.0 Authorized & Suitable Investments......................................................................7 11.0 Portfolio Adjustment............................................................................................10 12.0 Collateralization....................................................................................................10 13.0 Safekeeping and Custody.....................................................................................11 14.0 Diversification.......................................................................................................11 15.0 Maximum Maturities............................................................................................12 16.0 Internal Control....................................................................................................12 17.0 Performance Standards........................................................................................13 18.0 Reporting...............................................................................................................14 19.0 Investment Policy Adoption................................................................. ....... 15 Glossary.................................................................................................................16 2 Item 3. - 7 HB -56- Exhibit"A" - Resolution No.2012-74 CITY OF IIUNTINGTON BEACH Statement of Investment Policy 1.0 Purpose: This policy is intended to provide guidelines for the prudent investment of the city's cash balances, and outline the policies to assist maximizing the efficiency of the city's cash management system while meeting the daily cash flow demands of the city. 2.0 Policy: The investment practices and policies of the City of Huntington Beach are based upon state law and prudent money management. The primary goals of these practices are: A. To assure compliance with all Federal, State, and local laws governing the investment of public funds under the control of the City Treasurer. i. Government Code Section 53646 previously mandated that annual investment policies and quarterly reports be rendered to the legislative body. AB2853 amended the Government Code to remove the requirements and the rendering of these documents is permissive rather than mandated. B. To protect the principal moneys entrusted to this office. C. Achieve a reasonable rate of return within the parameters of prudent risk management while minimizing the potential for capital losses arising from market changes or issuer default. 3.0 Scope: This investment policy applies to all financial assets as indicated in 3.1 below of the City of Huntington Beach. These funds are accounted for in the city's Comprehensive Annual Financial Report and include: 3.1 Funds: The City Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee's pension funds, which are invested separately by CALPERS, those funds which are invested separately by the City Treasurer under bond indenture agreements, and funds which are invested separately by the City Treasurer or trustees under other agreements approved by Council such as the Retiree Medical Trust 3 HB -57- Item 3. - 8 Exhibit"A" - Resolution No.2012-74 and the Supplemental Pension Trust. The City Treasurer will strive to maintain the level of investment of this cash as close as possible to 100%. These funds are described in the city's annual financial report and include: 3.1.1 General Fund 3.1.2 Special Revenue Funds 3.1.3 Capital Project Funds 3.1.4 Enterprise Funds 3.1.5 Trust and Agency Funds 3.1.6 Debt Service Funds 3.1.7 Infrastructure Funds 3.1.8 Capital Improvement Reserve Funds 3.1.9 Any new fund created by the legislative body, unless specifically exempted This investment policy applies to all transactions involving the financial assets and related activity of the foregoing funds. It is the City's policy to pool funds for investment purposes to provide efficiencies and economies of scale. Investing through a pooled account will provide for greater use of funds by allowing for a more efficient cash flow, a reduction in transaction costs and a greater access to the market. 4.0 Prudence: The standard of prudence to be used by the City Treasurer shall be the "prudent investor " standard. This shall be applied in the context of managing an overall portfolio. The "Prudent Investor Rule" provides, pursuant to California Government Code Section 53600.3, that investments shall be made with judgment and care—under circumstances then prevailing—which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. 4.1 The City Treasurer and the Deputy City Treasurer, as investment officers acting in accordance with written procedures and the investment policy and exercising due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported to the 4 Item 3. - 9 HB -58- Exhibit"A" - Resolution No.2012-74 City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective: Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 5.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Huntington Beach shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 5.2 Liquidity: The City of Huntington's Beach's investment portfolio will remain sufficiently liquid to enable the City of Huntington Beach to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. Furthermore, since all possible cash demands cannot be anticipated, the portfolio will invest primarily in securities with active secondary and resale markets. 5.3 Return on Investments: The City of Huntington Beach's investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles (market interest rates), within the City of Huntington Beach's investment policy's risk parameters and the cash flow needs of the City. See also Section 17.0. 6.0 Investment Advisory Board: By City Charter, the City Treasurer is the custodian of all public funds of the City of Huntington Beach. The City Council may appoint Huntington Beach residents, professional, and non professional people, to serve on an Investment Advisory Board for the purpose of advising the City Treasurer on the City's investment program and at least quarterly, review the investment portfolio for compliance with the adopted investment policy. 5 HB -59- Item 3. - 10 Exhibit"A" - Resolution No.2012-74 7.0 Delegation of Authority: In accordance with the State of California Government Code § 53607, the City Council delegates investment authority to the City Treasurer for a period of one year and such investment authority must be renewed annually. Adoption of this policy constitutes delegation of investment authority to the City Treasurer for the following year unless revoked in writing. Within the City Treasurer's office, the responsibility for the day to day investment of the City funds will be the City Treasurer and is delegated to the Deputy City Treasurer in the absence of the City Treasurer. The City Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. 8.0 Ethics and Conflicts of Interest: In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers are required to file annual disclosure statements as required for "public officials who manage public investments" (as defined and required by the Political Reform Act and related regulations, being Government Code Sections 81000 and the Fair Political Practices Commission(FFPC)). 9.0 Authorized Financial Dealers and Institutions: The City Treasurer will maintain a fist of the financial institutions;and broker/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City will utilize Moody's Securities, Sheshunoff bank and savings and loan ratings, or other such services to determine financially sound institutions with which to do business. The City shall annually send a copy of the current investment policy to all financial institutions and broker/dealers approved to do business with the City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings 6 Item 3. - 11 HB -60- Exhibit"A" - Resolution No.2012-74 associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City Treasurer that are qualified public depositories; or may be invested in the investments set forth in Section 10.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low- and moderate-income neighborhoods. To provide for the optimum yield in the investment of city funds, the city's investment procedures shall encourage competitive bidding on transactions from approved brokers/dealers. In order to be approved by the city, the dealer must be a "primary" dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 150-1 (Uniform Net Capitol Rule). The institution must have an office in California. The dealer must be experienced in institutional trading practices and familiar with the California Government Code as related to investments appropriate for the city; and, other criteria as may be established in the investment procedures. All broker/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a "Broker/Dealer Application" and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration, proof of National Association of Securities Dealers certification and a certification of having read and understood the City's investment policy and agreeing to comply with the policy. The City Treasurer shall determine if they are adequately capitalized (i.e. minimum capital requirements of $10,000,000 and five years of operation). 7 HB -61- Item 3. - 12 Exhibit"A" - Resolution No.2012-74 10.0 Authorized & Suitable Investments: The City is authorized by California Government Code Section 53600, et. seq. to invest in specific types of securities. Investments not specifically listed below are deemed inappropriate and prohibited: A. BANKERS ACCEPTANCES, maximum 25% of portfolio (up to 40%with Council approval). Maximum term 180 days. Banks must have a short term rating of at least Al/PI and a long-term rating of A or higher as provided by Moody's Investors Service or Standard and Poor's Corp. No more than 30 percent of the agency's money may be invested in the bankers acceptances of any one commercial bank pursuant to this section. B. NEGOTIABLE CERTIFICATES OF DEPOSIT, maximum 30% of portfolio. Maximum term three(3)years, (Up to five(5)years with Council approval). Banks must have a short term rating of A1/P1 and a long term rating of at least a single A from a nationally recognized authority on ratings. C. COMMERCIAL PAPER, maximum 25% of portfolio. Maximum term 270 days. Commercial paper of"prime" quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical-rating organization(NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph(1)or paragraph(2): (1)The entity meets the following criteria: (A)Is organized and operating in the United States as a general corporation. (B)Has total assets in excess of five hundred million dollars($500,000,000). (C)Has debt other than commercial paper, if any, that is rated "A" or higher by a nationally recognized statistical-rating organization(NRSRO). (2)The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (B) Has programwide credit enhancements including, but not limited to, overcollateralization,letters of credit,or surety bond. (C) Has commercial paper that is rated "A-1" or higher, or the equivalent, by a nationally recognized statistical-rating organization(NRSRO). Split ratings (i.e. A2/Pl) are not allowable. No more than 10 percent of the outstanding commercial paper of any single corporate issue may be purchased. D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA OR ANY OF THE OTHER 49 UNITED STATES. Bonds must have an"A"rating or better. 8 Item 3. - 13 1413 -62- Exhibit"A" - Resolution No.2012-74 E. OBLIGATIONS OF THE UNITED STATES TREASURY United States Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category. F. FEDERAL AGENCIES Debt instruments issued by agencies of the Federal government. Though not general obligations of the U.S.Treasury,such securities are sponsored by the government or related to the government and,therefore,have high safety ratings. The following are authorized Federal Intermediate Credit Bank (FICB's), Federal Land Bank (FLB's), Federal Home Loan Bank (FHLB's), Federal National Mortgage Association (FNMA's), Federal Home Loan Mortgage Corporation (FHLMC's), Government National Mortgage Association (GNMA's), Tennessee Valley Authorities (TVA's), Student Loan Association Notes (SLMA's) and Small Business Administration(SBA's). There is no limit on the percentage of the portfolio that can be invested in this category. G. REPURCHASE AGREEMENT,maximum term 3 months. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 3 months. A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City. H. REVERSE-REPURCHASE AGREEMENTS (Requires City Council approval for each transaction) Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: (A)The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. (B) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20 percent of the base value of the portfolio. (C) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. (D) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty by way of a reverse repurchase agreement or securities lending agreement,shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, 9 HB -63- Item 3. - 14 Exhibit"A" - Resolution No.2012-74 unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. (A)For purposes of this chapter, "significant banking relationship" means any of the following activities of a bank: (i)Involvement in the creation, sale,purchase, or retirement of a local agency's bonds,warrants, notes,or other evidence of indebtedness. (ii)Financing of a local agency's activities. (iii)Acceptance of a local agency's securities or funds as deposits. I. MEDIUM-TERM CORPORATE NOTES, maximum 20% of portfolio (30% with Council approval), with a maximum remaining maturity of five years or less. Notes eligible for investment shall be "A" rated or its equivalent or better as determined by a nationally recognized rating service. J. TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit) (Maximum of 3 years) Deposits must be made with banks or savings & loan that have a short term rating of Al/P1 or a long term rating of at least a single A from a generally recognized authority on ratings. K. OBLIGATIONS OF THE STATE OF CALIFORNIA Obligations must be"A"rated or better from a nationally recognized authority on ratings. L. MONEY MARKET FUNDS, maximum 15% of portfolio. No more than 10 percent of the agency's surplus funds may be invested in shares of beneficial interest of any one Money Market fund. Local agencies may invest in "shares of beneficial interest" issued by diversified management companies which invest only in direct obligations in US Treasury bills,notes and bonds,U. S.Government Agencies and repurchase agreements with a weighted average of 60 days or less. They must have the highest rating from at least two nationally recognized statistical-rating organizations (NRSRO), must maintain a daily principal per share value of$1.00 per share and distribute interest monthly, and must have a minimum of $500 million in assets under management. The purchase price of the shares may not include commission. 10 Item 3. - 15 HB -64- Exhibit"A" - Resolution No.2012-74 M. THE LOCAL AGENCY INVESTMENT FUND(LAIF) Is a special fund of the California State Treasury through which any local government may pool investments. The city may invest up to$60,000,000 in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. 10.1 Investment Pools/Money Market funds: The City Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. 11.0 Portfolio Adjustments: Should any investment listed in section 10.0 exceed a percentage-of-portfolio limitation due to an incident such as fluctuation in portfolio size,the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Treasurer shall consider reconstructing the portfolio basing his/her decision on the expected length of time the portfolio will be unbalanced. If this occurs,the City Council shall be notified. 12.0 Collateralization: Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the city's deposits by pledging government securities with a value of 110 % of principal and accrued interest. California law also allows financial institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of city's total deposits. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the city and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102 percent no later than the next business 11 xB -65- Item 3. - 16 Exhibit"A" - Resolution No.2012-74 day. The City Treasurer, at his/her discretion, may waive the collateral requirement for deposits that are fully insured (current limit is $250,000) by the Federal Deposit Insurance Corporation. The right of collateral substitution is granted. The City Treasurer or designee shall ensure that all demand deposits that exceed the FDIC limit (currently $250,000) shall be fully collateralized with securities authorized under state law and this Investment Policy. 13.0 Safekeeping and Custody: All city investments shall have the City of Huntington Beach as its registered owner, and all interest and principal payments and withdrawals shall indicate the City of Huntington Beach as the payee. All securities will be held with a qualified financial institution, contracted by the city as a third party custodian with a separate custodial agreement(does not apply to insured Certificates of Deposit, money market funds, or the Local Agency Investment Fund). All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. All securities shall be acquired by the safekeeping institution on a "Delivery-Vs-Payment" (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third- party custodial agreement consistent with the Government Code. The transfer of securities to the counterparty bank's customer book entry account may be used for book entry delivery. The City Treasurer or designee shall require a Broker Trade confirmation for all trades. 14.0 Diversification: The city's investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. With the exception of U.S. Treasury securities, Government Sponsored Agencies and authorized pools no more than 50% of the investment portfolio will be invested in a single security type or with a single financial institution. In addition, no more than 10% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries and US Government Agency issues. Investments may be further limited by specific language relating to each type as state in Section 10.0 of the Policy. 12 Item 3. - 17 HB -66- Exhibit"A" - Resolution No.2012-74 A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an "A" or above rating and approved in the investment policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the city's cash flow. B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by structuring the portfolio so that securities mature at the same time that major cash outflows occur, thus eliminating the need to sell securities prior to their maturity. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The city's investment portfolio will remain sufficiently liquid to enable the city to meet all operating requirements which might be reasonably anticipated. 15.0 Maximum Maturities: To the extent possible, the City of Huntington Beach will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the city will not directly invest in securities maturing more than five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council. The City of Huntington Beach shall not permit more than 50% of its investment portfolio to be invested in securities with maturities over four years. 16.0 Internal Control: The City Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, misrepresentation by third parties, or unanticipated market changes. No investment personnel may engage in an investment transaction except as provided for under the terms of this policy and the procedure established by the City Treasurer. The external auditors shall annually review the investments with respect to the investment policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of interest on investments to fund 13 HB -67- Item 3. - 18 Exhibit"A" - Resolution No.2012-74 balances shall be performed by the Finance Department and approved by the City Treasurer. To provide further protection of city funds, written procedures prohibit the wiring of any city funds without the authorization of at least two of the four designated city officials: 1. City Treasurer 2. Deputy City Treasurer 3. Director of Finance 4. Budget Manager 17.0 Performance Standards: This investment policy shall be reviewed at least annually by the Investment Advisory Board and the City Council to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. All financial assets of all other funds shall be administered in accordance with the provisions of this policy. The moneys entrusted to the City Treasurer will be a passively managed portfolio. However, the City Treasurer will make best efforts to observe, review, and react to changing conditions that affect the portfolio. 17.1 Market Yield (Benchmark): The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the city's investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. Because the investment portfolio is designed to operate on a `hold-to-maturity' premise (or passive investment style) and because of the safety, liquidity, and yield priorities, the performance benchmark that will be used by the Treasurer to determine whether market yields are being achieved shall be the average of the monthly LAIF rate and the 12-month rolling average 2-Year Constant Maturity Treasury (CMT) rate. However, since return on investment is the least important objective of the Investment Portfolio, the benchmark will be used only as a reference tool. The reporting of a benchmark does not imply that the City Treasurer will add additional risk to the Investment Portfolio in order to attain or exceed the benchmark. While the city will not make investments for the purpose of 14 Item 3. - 19 1413 -68- Exhibit"A" - Resolution No.2012-74 trading or speculation as the dominant criterion, the City Treasurer shall seek to enhance total portfolio return by means of ongoing portfolio and cash management. The prohibition of highly speculative investments precludes pursuit of gain or profit through unusual risk and precludes investments primarily directed at gains or profits from conjectural fluctuations in market prices. The City Treasurer will not directly pursue any investments that are leveraged or deemed derivative in nature. However, as long as the original investments can be justified by their ordinary earning power, trading in response to changes in market value can be used as part of ongoing portfolio management. 18.0 Reporting: The City Treasurer shall submit a quarterly report to the City. Council, City Administrator, and Director of Finance and the Investment Advisory Board within 30 days following the end of the quarter. The City Treasurer intends to submit reports monthly. This report will include the following elements pursuant to State law and Government Accounting Standard Board(GASB)#40: 18.1 Type of investment 18.2. Institution/Issuer 18.3 Purchase Date 18.4 Date of maturity 18.5 Amount of deposit or cost of the investment 18.6 Face value of the investment 18.7 Current market value of securities and source of valuation 18.8 Rate of interest 18.9 Interest earnings 18.10 Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance 18.11 Statement on availability of funds to meet the next six month's obligations 18.12 Monthly and Year to date City Treasurer Budget Amounts for Interest Income 18.13 Percentage of Portfolio by Investment Type 18.14 Days to Maturity for all Investments 18.15 Comparative report on Monthly Investment Balances &Interest Yields 18.16 Monthly transactions 15 HB -69- Item 3. - 20 Exhibit"A" - Resolution No.2012-74 This quarterly report shall be placed on the City Council Agenda for Council and public review. In addition, a commentary on capital markets and economic conditions may be included with the report. 19.0 Investment Policy Adoption: By virtue of a resolution of the City Council of the City of Huntington Beach, the Council shall acknowledge the receipt and filing of this annual statement of investment policy for the respective fiscal year. 16 Item 3. - 21 HB -70- Exhibit"A" - Resolution No.2012-74 GLOSSARY AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.) BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high grade negotiable instrument. BASIS POINT: One one-hundredth of a percent(i.e. 0.011/o) BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the porfolio's investments. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) BROKER: A broker brings buyers and sellers together for a commission. He does not take a position. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. 17 HB -71- Item 3. - 22 Exhibit"A" - Resolution No. 2012-74 COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation (including limited liability companies) to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation,IBM, Bank of America,etc. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City. It includes combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material and a detailed Statistical section. COUPON: a). The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DERIVATIVES: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (intrest rates, foreign exchange rates, equities or commodities). 18 Item 3. - 23 xB -72- Exhibit"A" - Resolution No.2012-74 DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value(e.g. US Treasury Bills). DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g. S&L's, Small business firms, students, farmers, farm cooperatives,and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve though open-market operations. FEDERAL HOME LOAN BANDS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): Created to promote the development of a nationwide secondary market in mortgages. It does this by purchasing residential mortgages from financial institutions insured by an agency of the federal government and selling its interest in them through mortgage backed securities. The interest and principal payments from the mortgages pass through to the investors either monthly, semiannually or annually. 19 HB -73- Item 3. - 24 Exhibit"A" - Resolution No.2012-74 FEDERAL INTERMEDIATE CREDIT BANK(FICB): Loans to lending institutions used to finance the short term and intermediate needs of farmers, such as seasonal production. FEDERAL LAND BANK (FLB): Long term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a Federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other presidents serve on a rotating basis. The committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by congress and consisting of a seven-member Board of Governors in Washington,D.C.; 12 regional banks and about 5700 commercial banks are member of the system. 20 Item 3. - 25 1413 -74- Exhibit"A" - Resolution No.2012-74 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIE MAE): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan association's and other institutions. Security holder is protected by full faith and credit of the US Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term"pass-through"is often used to describe Ginnie Maes. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL(LGIP): the aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumable be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse agreements that establish each parry's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper,bankers' acceptances,etc.) are issued and traded. 21 HB -75- Item 3. - 26 Exhibit"A" - Resolution No.2012-74 NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments,paying a higher interest rate than regular certificates of deposit. OFFER: The price asked by a seller of securities. (When you are buying securities,you ask for an offer.) See "Asked" and"Bid". OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states, the law requires that a fiduciary, such as a trustee,may invest money only in a list of securities selected by the custody state—the so-called "legal list". In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under 22 Item 3. - 27 HB -76- Exhibit"A" -Resolution No.2012-74 the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity; on a bond, the current income return. REPURCHASE AGREEMENT (RP OR REP®): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their position. Exception: When the Fed is said to be doing RP, it is lending money that is, increasing bank reserves. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, FHLMC, etc.) and Corporations, which have imbedded option (e.g. call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates,the volatility of the imbedded options and shifts in the shape of the yield curve. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. 23 HB -77- Item 3. - 28 Exhibit"A" - Resolution No.2012-74 SEC RULE 15C3-1: See"Uniform Net Capital Rule". SMALL BUSINESS ADMINISTRATION (SBA): The portion of these securities which are guaranteed by Federal government to provide financial assistance through direct loans and loan guarantees to small businesses. Cash flows from these instruments may not be in equal installments because of prepayments. STUDENT LOAN ASSOCIATION NOTES (SALLIE MAE): A US Corporation and instrumentality of the US Government. Through its borrowings, funds are targeted for loans to students in higher education institutions. SLMA's securities are highly liquid and are widely accepted. TENNESSEE VALLEY AUTHORITIES (TVA): A US Corporation created in the 1930's to electrify the Tennessee Valley area; currently a major utility headquartered in Knoxville,Tennessee. TVA's securities are highly liquid and are widely accepted. TREASURY BILLS: A non-interest bearing discount security issued by the US Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term US Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: Intermediate-term coupon bearing US Treasury having initial maturities of from one year to ten years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firths as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, 24 Item 3. - 29 1113 -78- Exhibit"A" - Resolution No.2012-74 including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the.current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 25 xB -79- Item 3. - 30 Res. No. 2012-74 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on November 5, 2012 by the following vote: AYES: Shaw, Harper, Dwyer, Hansen, Carchio, Bohr, Boardman NOES: None ABSENT: None ABSTAIN: None k CW Clerk and ex-officicVlerk of the City Council of the City of Huntington Beach, California Council/Agency Meeting Held: —t3 Deferred/Continued to: )&Appro d ❑ Conditionally Approved ❑ Denied Cit Jerk's ignat Council Meeting Date: November 5, 2012 Department ID Number: CT 12-016 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and File the City Treasurer's September 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for September 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable. Recommended Action: Motion to: Receive and File the Monthly Investment Report for September 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique monthly report. Item 1. - 1 HB -10- REQUEST FOR COUNCIL ACTION MEETING DATE: 11/5/2012 DEPARTMENT ID NUMBER: CT 12-016 Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Improve long-term financial sustainability. Enhance economic development. Attachment(s): 1. Cit of Huntington Beach Investment Review Period Ending 9-30-12 2. September 2012 Portfolio Details 3. PowerPoint Presentation Investment Report September 2012 HB -11- Item 1. - 2 ATTACHMENT # 1 City of Huntington Beach Investment Review Period Ending: September 30, 2012 Prepared by. Alisa Cutchen, City Treasurer 1 Page xB -13- Item 1. - 4 Economic and Market Overview: During the third quarter of 2012, the U.S. economy included both positive and negative components. On the positive side, consumer confidence was up. Retail sales were up 1.1% in September and real consumer spending likely rose at a 2% annual rate in Q3. Housing continued to maintain its slow but steady improvement. Additionally, in September the unemployment rate dropped to 7.8% from 8.1%, the first time the unemployment rate has fallen below 8.0% since January of 2009. However, energy prices increased sharply over the August/September period. Fuel costs surged 6.4% in August, after five straight declines. Gasoline prices rose 13.6% in August and continued to rise during September. On the international front, the European debt crisis and slowing growth projections out of China continue to add to the stalled global economic outlook. For the third quarter of 2012, all three major equity market indices traded higher. The Dow Jones Industrial Average increased by 4.3%, the S&P 500 rose by 5.8%, and the NASDAQ rose by 6.2%. The Federal Reserve announced it will pursue another round of long-term asset purchases (mortgages) in order to maintain low interest rates, at least through 2014. The result is that we will continue to see returns on investments at historically low rates. MARKETS AT A-GLANCE Target Rate Treasury-Yield, Last Week (9/28/12 close) 0.00-0.25% 1.64% 1,440.67 13,437,13 Prior Week(9/21112 close) 0.00-0,25% 1.76% 1,460.15 13,578.47 Last Month End(8/31/12 dose) 0.00-0,25% 1,56% 1,406.68 13,090.84 2011 Year End(12/30/11) 0.00-0.25% 1,87% 1,267.60 12,217.66 Uata Sodw Fadset Source:US Bank,Institutional Trust and Custody Market and Economic Update of October 1,2012 Portfolio Overview: Of YTM Investment Type Market Value Book Value Portfolio 365-day Policy Limit Federal Agency Issues 135,566,530 135,168,939 82% 1.06 None Local Agency Investment Fund (LAIF) 18,107,875 18,107,875 11% 0.348 $60 million Medium Term Notes - Corporate 11,032,844 10,950,900 7% 1.558 20% Totals $164,707,249 $164,227,714 100% 1.014 As of September 30, 2012, the market value of the investment portfolio was $164,707,249, with a book value of $164,227,714. Additionally, there was a balance of approximately $16 million on September 30, 2012 in the City's operating bank account for operational availability. Those funds not necessary for current operations will be invested in the near future. The portfolio is invested in only those investments allowable by State regulations and the City's Investment Policy. Such investments are purchased to meet the portfolio objectives of preservation of 2 1 P a g e Item 1. - 5 HB -14- principal, maintenance of sufficient operating liquidity, and to attain a market rate of-return throughout budgetary and economic cycles, in that order of absolute priority. Book Value History $ in Millions $200 175.1 182.1 183.1 180.1 177.1 $180 175.117-2.1 163.7 162.3 164.2 $160 158.1 139.1 $140 $120 $100 $80 $60 $40 $20 $0 ^PJAo 49 ^^ �mF �'�� c°�� 0°��• ��cJa F��� ��`c� ^tiP�� ti��� ti�Jc� ^ti�J`� PJAo mQ��` o^ ti �o do �o^ �o^ ,yo do ti ti ti ti �o^ Currently, City funds are invested in Federal Agency Securities, Medium Term Corporate Notes and the State of California's Local Agency Investment Fund (LAIF). The four federal government sponsored entities that the City purchases the securities of are Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corporation (FHLMC/Freddie Mac), Federal National Mortgage Association (FNMA/Fannie Mae) and Federal Farm Credit Bank (FFCB/Farm Credit). All corporate notes are "A" rated or its equivalent or better, per the City's Investment Policy. LAIF offers local agencies the opportunity to participate in a major portfolio with immediate liquidity managed by the State Treasurer's Office (please see http://www.treasurer.ca.goWpmia-laif for more information). In June of 2012, Moody's downgraded 15 global banks. As of September 30, 2012, the City of Huntington Beach did not hold any bonds of any banks. 3 1 P a g e HB -1 s- Item 1. - 6 Portfolio Earnings and Performance: Monthly Earnings $132,910 Interest:. $148,549 Adt! Prerx�eums/® scounts 15699 Capital GO ins: $0 Monthly Budgeted Interest Income $112,000 Monthly Effective Rate of Return 0 95% Fiscal YTD Earnings $1,785,372 Fiscal YTD Budget $1,344,000 Fiscal YTD Effective Rate of Return 1.09•1 Benchmark(1) 0.31% Bank Cash Balance at 9/30/12 $16MM (I)Benchmark: The average of the monthly LAIF rate and the 12-month rolling average 2-year Constant Maturity Treasury(CMT)rate. Monthly investment earnings as of September 30, 2012, were $132,910. The monthly effective rate of return of 0.95% decreased slightly from 1.04% for the month of June, 2012. For the fiscal year 2011-12, as of September 30, 2012, the effective rate of return was 1.05%, down slightly from 1.09% for the previous fiscal quarter. The portfolio yield overall continues to decline as expected, due to the historically low interest rates. Higher yielding bonds that mature or are "called" are causing retired funds to be invested in the current low interest rate environment. Certain securities have "call" options, which means the issuer may return the funds to the buyer at a specified time. It is anticipated that the portfolio yield will remain at these low levels and that it will take some time for portfolio yields to increase, even as interest rates begin to move upward, as existing securities will continue to remain in the portfolio until maturity, unless they are sold. Portfolio Activity: Quarterly Activity: For the quarter ending September 30, 2012, federal agency redemptions totaled $31MM and corporate note redemptions totaled $21VIM. Total purchases for the quarter included $20MM in federal agency securities and $9MM in corporate notes. Due to the seasonal nature of cash flows within the city, additional funds were drawn from LAW during this quarter to be utilized for operational activities. As the city receives additional income from taxes in December, the balance within the portfolio will rise. 41Page Item 1. - 7 HB -16- Monthly Activity: For the month of September 2012, a total of $8MM in federal agency securities matured or were called and $2MM of corporate notes matured. The agency securities were called due to the current low interest environment, hence allowing the issuer to re-issue at lower rates. The corporate notes were part of an FDIC-backed program, which concludes during 2012. Hence, all of the City's FDIC-backed bonds will mature over the calendar year 2012. These bonds had yields around 2%. Unfortunately, with their expiration, we will see a decrease in the return of the portfolio overall. Quarter-to-Quarter Comparison Book Value 6 30 2012 9 30 2012 % c an e Federal Agency Issues $136,991,622 $135,168,939 -1% Local Agency Investment Fund (LAIF) $30,081,155 $18,107,875 -40% Medium Term Notes - Corporate $12,981,715 $10,950,900 -15.6% Totals $180,054,492 $164,227,714 -8.8% Compliance: The portfolio is in conformity with all State laws and the Investment Policy statement filed with the City Council on December 19, 2011. A copy of this policy is available at the office of the City Clerk. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. 5 1 P a g e HB -17- Item 1. - 8 Additional Information: Retirement Plan Information as of June 30, 2012: (Due to the delay in statement receipt, information is from previous quarter.) City of Huntington Beach -Pensionrrrust Plans -Market Value Summary Deferred Compensation Plan Summary Information _ as of June 30,2012 Beginning Contributions Distributions/ Earnings Other Fees/ Ending Balance Transfers (change in ,Adjustments; Balance Reporting is Quarterly (4-1-12) value) (6-30-12) �ICMA Retirement Corporation(467Plan) $32,194,573 $508,109 ($442,399)! ($669,011) ($2,997) $31,588,275 Nationwide Retirement Solutions(457 Plan) $59,328,870 - $809,597 ($651,047)j— ($719,073) ($875) $58,767,472 - - Total Deferred Compensation Plan Balances $91,523,443 $1,317,706 ($1,093,446) ($1,388,084) ($3,872). $90,355,747 - City of Huntington Beach Retiree Medical Trust Summary Information as of June 30, 2012 Beginning Contributions Distributions/ Earnings Other Fees/ Ending Balance Transfers (change in Adjustments Balance Reporft fs Quarterly (4-1-12) value) (6-30-12) CaIPERS Retiree Medical Trust Account $10,565,918 $0 $0 ($265,406)� ($3,053) $10,297,459 City of Huntington Beach Supplemental Pension Trust Summary Information as of June 30,2012 Beginning Interest/ Change in Earnings Other Fees/, Ending Balance Dividends Unrealized (change in Adjustments Balance Reporting is Monthly (6-1-12) Gains/Losses value) (6-30-12) Supplemental Pension Trust Account : $30,538 706 $30 550 $798 839 $28 962 ($4 572) $31 392 485 6 1 P a g e Item 1. - 9 HB -18- Bond Reserve Accounts - Balances as of September 30, 2012: jSummary of Investments by Bond_ Issue �As of September 30,2012 Value as of Bond Issue September 30,2012 Cit of Huntington Beach-2004Jud ment Obligation Bonds(Property Tax Refunds) 1,159 Huntington Beach PFA-2001 Series A(South Beach Improvements&Central Park Sports Complex) 1384 Huntington Beach PFA-20015eries B(1993 Civic Center&Police Administration Bldg.Refinance) 39 Huntington Beach Public Financing Authority Lease Refunding Bonds 2010Series A 1,242,621 i Huntington Beach Public Financing Authority Lease Revenue Refunding Bonds 2011Series A 3,075,556 Redevelopment Agency of Huntington Beach-1999Tax Allocation Refunding Bonds(1/3 of 1992) 753,775 Redevelopment Agency of Huntington Beach-2002Tax Allocation Refunding Bonds(2/3 of 1992) 1,028,836 I Huntington Beach Community Facilities District No.1990-1(Goldenwest-Ellis) 172,715 Huntington Beach Community Facilities District No.2000-1(Grand Coast-Hyatt) 1,250,972 FHuntington Beach Community Facilities District No.2002-1(McDonnell Centre Business Park) 499,610 I Huntington Beach Community Facilities District No.2003-1(Huntington Center-Bella Terra) 1,814,522 9,841,189 7 Page HB -19- Item 1. - 10 ATTAC H M E N T #2 O����,nvon,rEo yd City of Huntington Beach 2000 Main St. City of I IB Huntington Beach, 9 - Q Portfolio Management 92G`��oururi cP�\�oQ Portfolio Summary September 30, 2012 Par Market Book %of Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 366 Equiv. Federal Agency Issues-Coupon 135,000,000.00 135,566,530.00 135,168,938.77 82.31 1,498 1,304 1.045 1.060 Local Agency Investment Funds 18,107,874.57 18,107,874.57 18,107,874.57 11.03 1 1 0.343 0.348 Medium Tenn Notes 10,810,000.00 11,032,844.40 10,950,900.22 6.67 981 375 1.537 1.558 163,917,874.57 164,707,248.97 164,227,713.56 100.00% 1,299 1,099 1.000 1.014 Investments Cash and Accrued Interest Accrued Interest at Purchase 25,754.17 25,754.17 Subtotal 25,754.17 25,754.17 Total Cash and Investments 163,917,874.57 164,733,003.14 164,253,467.73 1,299 1,099 1.000 1.014 Total Earnings September 30 Month Ending Fiscal Year To Date Fiscal Year Ending Current Year 132,910.20 1,785,371.59 1,785,371.59 Current Budget 112,000.00 1,344,000.00 1,344,000.00 t�j Last Year Actual 156,250.00 1,875,000.00 1,875,000.00 Average Daily Balance 169,501,918.57 169,417,217.74 Effective Rate of Return 0.950/0 1.05°A I certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on December 19,2011. A copy of this policy is available at the office of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank 'a teractive to rporation. to l8A Aksa Cutchen,CITY TREASURE i--i D Reporting period 0910112012-091=2012 AP rCC Portfolio CITY Run Date:1 011012012-1 0:33 PM a Report Ver7. N CD City of I-1113 Portfolio Management Page 2 w Portfolio Details -Investments September 30, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 366 Maturity Date Medium Term Notes 084664AT8 3895 Berkshire Hathaway Fin 08/26/2011 1,310,000.00 1,437,384.40 1,410,983.87 4.850 AA 1.390 836 01/15/2015 149121-4Y4 3930 Caterp0lar Financial Corp. 05/30/2012 2,000,000.00 2,026,440.00 2,009,302.38 1.125 A 0.911 805 12/15/2014 36962G4X9 3906 General Electric Capital Corp 09/29/2011 2,000,000.00 2,036,620.00 2,013,122.54 2.100 AA 1.570 463 01/07/2014 36962GZY3 3997 General Electric Capital Corp 09/16/2011 1,500,000.00 1,521,120.00 1,518,208.68 5.450 AA 1.200 106 01/15/2013 36186CBF9 3763 GMAC FDIC Insured 06/30/2009 2,000,000.00 2,008,820.00 1,999,335.53 2.200 AA 2.361 79 12/19/2012 36185JAA7 3804 GMAC FDIC Insured 11/03/2009 2,000,000.00 2,002,460.00 1,999,947.22 1.750 AA 1.784 29 10/30/2012 Subtotal and Average 12,756,829.89 10,810,000.00 11,032,844A0 10,960,900.22 1.558 376 Total and Average 169,601,918.57 163,917,874.67 164,707,248.97 164,227,713.66 1.014 1,099 Cd tJ N Portfolio CITY AP Run Date;10/10/2012-1033 PM(PRF_PM2)7.3.0 City of HB Portfolio Management Page 1 Activity By Type September 1, 2012 through September 30, 2012 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues-Coupon 3136FRV59 3894 Fed.Nat1 Mort Assoc. 1.050 09/14/2012 0.00 8,000,000.00 Subtotal 0.00 8,000,000.00 136,168,939.77 Local Agency Investment Funds (Monthly Summary) Subtotal 18,107,874.57 Medium Term Notes 36967HBB2 3805 GE Capital FDIC Insured 2.000 09/28/2012 0.00 2,000,000.00 Subtotal 0.00 2,000,000.00 10,960,900.22 Total 0.00 10,000,000.00 164,227,713.56 N W F--I e--r Portfolio CITY AP Run Data 10/10/2012-10:33 PM(PRF_PM3)7.3.0 r Report Ver.7.3.3b Y-� -P N City of H13 Portfolio Management Pagel Distribution of Investments By Type September 2011 through September 2012 September October November December January February March April May June July August September Average Security Type 2011 2011 2011 2011 2012 2012 2012 2012 2012 2012 2012 2012 2012 by Period Repurchase Agreements Certificates of Deposit Commercial Paper-Interest Bearing Federal Agency Issues-Coupon 54.8 61.9 61.1 65.8 69.1 74.8 70.9 72.5 72.1 76.1 67.2 82.2 82.3 70.1% Local Agency Investment Funds 30.3 22.1 21.6 19.0 17.2 11.5 17.5 16.5 16.4 16.7 25.5 10.4 11.0 18.1% Treasury Securities-Coupon Medium Term Notes 14.9 16.0 17.3 15.2 13.7 13.7 11.6 11.0 11.5 7.2 7.3 7.4 6.7 11.8% Negotiable CD's Certificates of Deposit-Bank Mortgage Backed Securities Bankers Acceptances-Amortizing Commercial Paper Disc.-Amortizing Federal Agency Disc.-Amortizing Treasury Discounts-Amortizing Miscellaneous Discounts-Amortizing Money Market Acct Rolling Repurchase Agreements N Portfolio CITY AP Run Dates 10/10/2012-10:33 PM(PRF PM5)7.3.0 Report Ver.7.3.3b O`__�0G11POAAPFn ^� V City of Huntington Beach 9Y City of HB 2000 Main St. 9 . < Activity Repoli Huntington Beach, z Sorted By Issuer 9yG��GUNTV C \�oe .July 1, 2012 a September 30, 2012 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer:Berkshire Hathaway Fin Medium Term Notes Subtotal and Balance 1,310,000.00 1,310,000.00 Issuer Subtotal 0.799% 1,310,000.00 0.00 0.00 1,310,000.00 Issuer:Caterpillar Financial Corp. Federal Agency Issues-Coupon 14912L5D9 3936 Caterpillar Financial Corp. 1.100 08/03/2012 3,000,000.00 0.00 Subtotal and Balance 0.00 3,000,000.00 0.00 3,000,000.00 Medium Term Notes Subtotal and Balance 2,000,000.00 2,000,000.00 Issuer Subtotal 3.050% 2,000,000.00 3,000,000.00 0.00 6,000,000.00 C�7 Issuer:Federal Farm Credit Bank cNii Federal Agency Issues-Coupon 3133EAJ33 3942 Federal Fame Credit Bank 0.730 08/15/2012 5,000,000.00 0.00 3133EAP77 3944 Federal Fame Credit Bank 0.480 08/27/2012 5,000,000.00 0.00 Subtotal and Balance 13,000,000.00 10,000,000.00 0.00 23,000,000.00 Issuer Subtotal 14.031% 13,000,000.00 10,000,000.00 0.00 23,000,000.00 Issuer: Federal Home Loan Bank Federal Agency Issues-Coupon 313378YC9 3927 Federal Home Loan Bank 1.000 07/27/2012 0.00 5,000,000.00 313378XES 3928 Federal Home Loan Bank 1.050 07/27/2012 0.00 5,000,000.00 31338051C9 3941 Federal Home Loan Bank 0.720 08/08/2012 5,000,0moo 0.00 Subtotal and Balance 10,000,000.00 5,000,000.00 10,000,000.00 5,000,000.00 1-� e-i � Portfolio CITY AP Run Date:1 0/10/2012-1 0:45 DA(PRF_DA)7.20 Report Ver.7.3.3b CD City of HB Activity Report Page 2 July 1,2012-September 30,2012 J Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer Subtotal 3.050% 10,000,000.00 5,000,000.00 10,000,000.00 6,000,000.00 Issuer: Federal Home Loan Mort Corp Federal Agency Issues-Coupon 3134G3B90 3940 Federal Home Loan Mort Corp 0.875 08/15/2012 5,000,000.00 0.00 Subtotal and Balance 45,000,000.00 5,000,000.00 0.00 50,000,000.00 Issuer Subtotal 30.503% 45,000,000.00 5,000,000.00 0.00 50,000,000.00 Issuer:Fed.Nat'l Mort Assoc. Federal Agency Issues-Coupon 3136FRV59 3894 Fed.Nat'l Mort Assoc. 1.050 09/14/2012 0.00 8,000,000.00 3135GODT7 3904 Fed.Nafl Mort Assoc. 0.700 07/17/2012 0.00 5,000,000.00 3135GODT7 3905 Fed.Nafl Mort Assoc. 0.700 07/17/2012 0.00 3,000,000.00 3136FTWGO 3915 Fed.Nat'l Mort Assoc. 1.125 08/10/2012 0.00 5,000,000.00 Subtotal and Balance 69,000,000.00 0.00 21,000,000.00 48,000,000.00 Issuer Subtotal 29.283% 69,000,000.00 0.00 21,000,000.00 48,000,000.00 Issuer:General Electric Capital Corp Cb Medium Term Notes U� Subtotal and Balance 3,500,000.00 3,500,000.00 i Issuer Subtotal 2.136% 3,600,000.00 0.00 0.00 3,500,000.00 Issuer:GE Capital FDIC Insured Medium Term Notes 369671-1662 3805 GE Capital FDIC Insured 2.000 09/28/2012 0.00 2,000,000.00 Subtotal and Balance 2,000,000.00 0.00 2,000,000.00 0.00 Issuer Subtotal 0.000% 2,000,000.00 0.00 2,000,000.00 0.00 Issuer:GMAC FDIC Insured Medium Term Notes Subtotal and Balance 4,000,000.00 4,000,000.00 Portfolio CITY AP Run Date:10/10/2012-10:45 DA(PRF DA)720 Report Ver.7.3.3b City of HIS Activity Report Page 3 July 1,2012-September 30,2012 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer Subtotal 2A40°/. 4,000,000.00 0.00 0.00 4,000,000.00 Issuer:John Deere Capital Federal Agency Issues-Coupon 24422ERK7 3937 John Deere Capital 1.250 08/03/2012 3,000,000.00 0.00 Subtotal and Balance 0.00 3,000,000.00 0.00 3,000,000.00 Issuer Subtotal 1.830%. 0.00 3,000,000.00 0.00 3,000,000.00 Issuer:Laif City Local Agency Investment Funds SYS982 982 Lag City 0.348 15,026,719.36 27,000,000.00 Subtotal and Balance 30,081,165.21 15,026,719.36 27,000,000.00 18,107,874.57 Issuer Subtotal 11.047% 30,081,165.21 15,026,719.36 27,000,000.00 18,107,874.57 Issuer: LAIF-Redevelopment Agency Local Agency Investment Funds Subtotal and Balance 0.00 0.00 Issuer Subtotal 0.000%. 0.00 0.00 0.00 0.00 Issuer:Wal-Mart Stores ' Federal Agency Issues-Coupon 931142CXS 3943 1111a1-Mart Stores 1.500 08/14/2012 3,000,000.00 0.00 Subtotal and Balance 0.00 3,000,000.00 0.00 3,000,000.00 Issuer Subtotal 1.830% 0.00 3,000,000.00 0.00 3,000,000.00 Total 100.000%. 179,891,165.21 44o026,719.36 60,000,000.00 163,917,974.57 F---1 CD Portfolio CITY AP Run Date:10/10/2012-10:45 DA(PRF DA)72-0 i--� Report Ver.7.3.3b 00 State of California Pooled Money Investment Account Market Valuation 9/30/2012 United States Treasury: Bills $ 18,622,718,015.43 $ 18,633,178,830.48 $ 18,635,752,500.00 NA Notes $ 16,030,416,483.54 $ 16,030,283,286.84 $ 16,083,000,000.00 $ 25,090,146.00 Federal Agency: SBA $ 537,943,833.73 $ 537,943,833.73 $ 538,479,078.66 $ 556,597.69 MBS-REMICs $ 289,018,179.51 $ 289,018,179.51 $ 313,485,757.91 $ 1,380,307.69 Debentures $ 750,426,660.88 $ 750,426,660.88 $ 751,330,500.00 $ 1,246,665.50 Debentures FR $ - $ _ $ _ $ _ Discount Notes $ 4,493,107,222.16 $ 4,495,775,805.52 $ 4,496,997,000.00 NA GNMA $ 9,091.91 $ 9,091.91 $ 9,168.82 $ 90.18 IBRD Debenture $ 399,951,803.28 $ 399,951,803.28 $ 400,000,000.00 $ 583,332.00 IBRD Deb FR $ - $ _ $ _ $ _ CDs and YCDs FR $ 400,000 000.00 $ 400,000,000.00 $ 400,000,000.00 $ 345,585.56 Bank Notes $ _ $ _ $ _ $ _ CDs and YCDs $ 5,150,000,000.00 $ 5,150,000,000.00 $ 5,149,301,400.29 $ 1,963,819.45 Commercial Paper $ 824,860,041.65 $ 824,971,430.55 $ 824,932,222.22 NA Corporate: Bonds FR $ _ $ _ $ _ $ _ Bonds $ _ $ _ $ _ $ _ Repurchase Agreements $ - $ _ $ _ $ _ Reverse Repurchase $ - $ _ $ _ $ _ Time Deposits $ 4,402,640,000.00 $ 4,402,640,000.00 $ 4,402,640,000.00 NA AB 55&GF Loans $ 10,280,783,040.72 $ 10,280,783,040.72 $ 10,280,783,040.72 NA TOTAL $ 62,181,874,372.81 1 $ 62,194,981,963.42 $ 62,276,710,668.62 1 $ 31,166,544.07 Fair Value Including Accrued Interest $ 62,307,877,212.69 Repurchase Agreements,Time Deposits,AB 55&General Fund loans,and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). The value of each participating dollar equals the fair value divided by the amortized cost(1.001314072). As an example:if an agency has an account balance of$20,000,000.00,then the agency would report itE participation in the LAW valued at$20,026,281.45 or$20,000,000.00 x1.001314072. Item 1. - 19 xB -28- Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department September 2012 Cash Receipts and Disbursements August 2012 September 2012 Receipts Property Tax Receipts $113,339 $1,283,151 Utility Tax Receipts (UUT) 1,684,339 1,757,281 Sales Tax Receipts 2,147,000 3,286,178 1/2 Cent Safety Sales Tax Receipts 188,934 159,694 Highway Users Tax Receipts (HUT) 564,565 - Transient Occupancy Tax Receipts (TOT) 949,392 836,801 Government Funds 90,940 219,855 Capital Funds 297,236 18,662 Debt Service Funds 3,833,251 - Enterprise Funds 5,989,749 5,055,760 Fiduciary Funds 1,451,043 6,117,533 Special Revenue Funds 1,834,656 2,044,345 All Other Receipts 4,697,280 1,470,301 Total Receipts $23,841,724 $22,249,562 Disbursements Total Disbursements (39,020,706) (36,433,521) Net Change in Cash Flow ($15,178,981) ($14,183,958) Summary of Cash by Fund August 2012 September 2012 General Fund 56,247,222 54,111,629 Government Funds 1,084,111 1,228,185 Capital Funds 10,802,946 10,628,929 Debt Service Funds 3,762,714 16,263 Enterprise Funds 91,208,060 91,943,183 Fiduciary Funds 8,163,078 10,076,625 Special Revenue Funds 12,572,503 11,982,667 General Ledger Cash Balances 183,840,635 179,987,483 " "Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Sept 2012 10/18/2012 xB -29- Item 1. - 20 ATTACHMENT #3 ° Treasurer's Investment Report As of September 30, 2012 - Alisa Cutchen, CityTreasurer City of Huntington Beach w � Po rtfo l i o Ove rvi ew As of September 30, 2012 $ in Millions Of Investment Type Market Value Book Value Pololio Federal Agency Issues $ 135.6 $ 135.2 82% Local Agency Investment Fund (LAIF) 18.1 18.1 11% Medium Term Notes - Corporate 11 .0 11 .0 7% Totals $ 164,7 $ 164,3 100 % Investment byType As of September- 30, 2012 7% Corp 1 1 % LL.AlF Vs. , 1 � 1 1 ........... ..0 �'. ...�y , o. t Y y + k a Yyy .............. t.t 8270 k b Federal 1. _ Ys Agencies r`f N -P N Portfolio Earnings and Performance Monthly for September 2012: • Total Earnings: $ 1329910 • Monthly Effective Rate of Return: 0-.95% • Fiscal Year 2011 - 12: A • Total Earnings: $ 197859372 • Monthly Effective Rate of Return: 1 .09% • Versus Benchmark of: 0.3 1 % Portfolio Earnings and Performance • Benchmark: o Average of monthly LAIF rate and 2-year constant maturity treasury x o LAIF Rate September, 2012: 0348% o 2-year Treasury at 9/30/ 12: 0*23% • Per Investment Policy Statement CD T N Conclusion • Portfolio continues to meet objectives of: • Safety of Principal • Maintain Operating Liquidity • Market Rate of Return on Investments x m • IN COMPLIANCE / NO LOSSES QUESTIONS ? W N 00 Council/Agency Meeting Held:�f Deferred/Continued to: �&Appr ve ❑ Conditionally Approved ❑ Denied ity Cler Sig ure Council Meeting Date: November 5, 2012 Department ID Number: CT 12-015 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and file the City Treasurer's August 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for August 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach Financial Impact: Not Applicable. Recommended Action: Motion to: Receive and file the Monthly Investment Report for August 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique monthly report. Item 2. - 1 HB -38- REQUEST FOR COUNCIL ACTION MEETING DATE: 11/5/2012 DEPARTMENT ID NUMBER: CT 12-015 Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Improve long-term financial sustainability. Enhance economic development. Attachment(s): 1. 1 August 2012 Portfolio Details NB -39- Item 2. - 2 ATTACHMENT # 1 %TINGT a���eoaaon�rE O��F y City of Huntington Beach City Of HB 2000 Main St. Huntington Beach, 9 _ a Portfolio Management-161 NTV . Portfolio Summary August 31, 2012 Par Market Book %of Days Term Maturity to E YTTM oily. Investments Value Value Value Portfolio M 360 Y 4 365E 4 Federal Agency Issues-Coupon 143,000,000.00 143,649,520.00 143,174,336.03 82.17 1,516 1,342 1.070 1.085 Local Agency Investment Funds 18,107,874.57 18,107,874.57 18,107,874.57 10.39 1 1 0.372 0.377 Medium Tern Notes 12,810,000.00 13,051,849.90 12,961,141.70 7.44 993 347 1.561 1.583 Investments 173,917,874.57 174,809,244.47 174,243,352.30 100.00% 1,320 1,129 1.034 1.049 Cash and Accrued Interest Accrued Interest at Purchase 25,754.17 25,754.17 Subtotal 25,754.17 25,754.17 Total Cash and Investments 173,917,874.57 174,834,998.64 174,269,106A7 1,320 1,129 1.034 1.049 Total Earnings August 31 Month Ending Fiscal Year To Date Fiscal Year Ending Current Year 146,494.25 1,652,461.39 Current Budget 112,000.00 1,232,000.00 1,344,000.00 P Last Year Actual 156,250.00 1,718,750.00 1,875,000.00 Average Daily Balance 178,919,282.36 169,409,655.17 Effective Rate of Return 0.960/0 1.06% 1 certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on December 19,2011. A copy of this policy is available at the offi of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six months obligations. Market Values provided by Union Bank me cti a Data ra on. AM Cutchen,CITY TREASURER h--i N Reporting period 0810112012-0813112012 Portfolio CITY AP Run Date:0920/2012-14:50 N PM(PRF PM1)7.3.0 Report Ver.7.3.3b N City of 1.113 �^ Portfolio Management Page 1 Portfolio Details e Investments August 31, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Federal Agency Issues-Coupon 14912L5D9 3936 Caterpillar Financial Corp. 08/03/2012 3,000,000.00 3,042,780.00 3,047,318.98 1.100 AA 0.520 1,000 05/29/2015 3133EAHZ4 3926 Federal Farm Credit Bank 03/20/2012 3,000,000.00 3,020,160.00 3,000,000.00 1.300 AA 1.300 1,661 03/20/2017 3133EAUE6 3932 Federal Farm Credit Bank 06/14/2012 5,000,000.00 5,017,500.00 5,000,000.00 0.875 AA 0.875 1,382 06/14/2016 3133EAUE6 3933 Federal Farm Credit Bank 06/14/2012 5,000,000.00 5,017,500.00 5,000,000.00 0.875 AA 0.875 1,382 06/14/2016 3133EAJ33 3942 Federal Farm Credit Bank 08/15/2012 5,000,000.00 5,012,700.00 4,997,527.78 0.730 AA 0.743 1,444 08/15/2016 3133EAP77 3944 Federal Farm Credit Bank 08/27/2012 5,000,000.00 5,009,800.00 5,000,000.00 0.480 AA 0.480 1,090 08/Z7/2015 313380SKS 3941 Federal Home Loan Bank 08/08/2012 5,000,000.00 5,002,550.00 4,999,276.74 0.720 AA 0.724 1,437 08/08/2016 3134G3BL3 3910 Federal Home Loan Mort Corp 12/05/2011 5,000,000.00 5,006,600.00 5,000,000.00 1.000 AA 1.000 825 12/05/2014 3134G3CVO 3911 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,007,000.00 5,000,000.00 1.000 AA 1.000 839 12/19/2014 3134G3DY3 3912 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,007,200.00 5,000,000.00 0.875 AA 0.875 839 12/19/2014 3134G3FGO 3913 Federal Home Loan Mort Corp 12/27/2011 3,000,000.00 3,003,510.00 3,000,000.00 0.650 AA 0.650 664 06/27/2014 3134G3HV5 3919 Federal Home Loan Mort Corp 01/25/2012 5,000,000.00 5,021,100.00 5,000,000.00 1.125 AA 1.490 1,607 01/25/2017 3134G3FC9 3920 Federal Home Loan Mort Corp 01/09/2012 5,000,000.00 5,035,450.00 5,000,000.00 1.000 AA 1.000 1,124 09/30/2015 3134G3GN4 3921 Federal Home Loan Mort Corp 01/18/2012 7,000,000.00 7,031,710.00 7,000,000.00 1.500 AA 1.500 1,600 01/18/2017 3134G3KC3 3922 Federal Home Loan Mort Corp 01/27/2012 5,000,000.00 5,042,950.00 5,000,000.00 1.000 AA 1.000 1,243 01/27/2016 3134G3LU2 3925 Federal Home Loan Mort Corp 02/14/2012 6,000,000.00 5,054,000.00 5,000,000.00 1.060 AA 1.316 1,627 02/14/2017 31341331390 3940 Federal Home Loan Mort Corp 08/15/2012 5,000,000.00 5,009,700.00 5,000,000.00 0.875 AA 0.875 1,809 08/15/2017 31398A31_4 3854 Fed.Nat'l Mort.Assoc. 09/17/2010 3,000,000.00 3,025,770.00 3,000,000.00 1.125 AA 1.125 381 09/17/2013 3136FRV59 3894 Fed.Nat'l Mort.Assoc. 09/14/2011 8,000,000.00 8,002,160.00 8,000,000.00 1.050 AA 1.516 1,474 09/14/2016 N 3136FTFG9 3909 Fed.NaU Mort.Assoc. 10/26/2011 5,000,000.00 5,008,400.00 5,000,000.00 1.250 AA 1.722 1,516 10/26/2016 3136FTVF3 3916 Fed.NaU Mort.Assoc. 12/28/2011 5,000,000.OD 5,013,400.00 5,000,000.00 1.000 AA 1.709 1,579 12/28/2016 3136FTXD6 3917 Fed.Nat'l Mort Assoc. 12/28/2011 5,000,000.00 5,011,000.00 5,000,000.00 1.100 AA 1.100 1,213 12/28/2015 3136FTA58 3923 Fed.Nat'l Mort Assoc. 01/30/2012 5,000,000.00 5,023,150.00 5,000,000.00 1.300 AA 1.300 1,612 01/30/2017 3136FTK73 3924 Fed.Nat'l Mort Assoc. 02/22/2012 5,000,000.00 5,029,450.00 5,000,000.00 1.375 AA 1.375 1,635 02=2017 3136GOJL6 3929 Fed.Nat?Mort Assoc. 06/07/2012 5,000,000.00 5,024,850.00 5,000,000.00 1.000 AA 1.257 1,740 06/07/2017 3136GOMK4 3931 Fed.Nat'l Mort Assoc. 06/21/2012 5,000,000.00 5,017,950.00 5,000,000.00 1.000 AA 1.246 1,754 06/21/2017 3136GOMVO 3934 Fed.Nat'I Mort.Assoc. 06/21/2012 5,000,000.00 5,007,500.00 5,000,000.00 0.800 AA 0.800 1,297 03/21/2016 3136GONR8 3935 Fed.Nat'I Mort Assoc. 06/28/2012 5,000,000.00 5,011,650.00 4,994,023.44 0.500 AA 0.966 1,396 06/28/2016 24422ERK7 3937 John Deere Capital 08/03/2012 3,000,000.00 3,049,500.00 3,052,690.83 1.250 A-1 0.465 822 12/02/2014 931142CX9 3943 Wal-Mart Stores 08/14/2012 3,000,000.00 3,082,630.00 3,083,498.26 1.600 AA 0.606 1,149 10/25/2015 Subtotal and Average 133,103,519.12 143,000,000.00 143,649,520.00 143,174,336.03 1.085 1,342 Local Agency Investment Funds SYS982 982 LafCity 18,107,874.57 18,107,874.57 18,107,874.57 0.377 0.377 1 SYS2206 2206 LAIF-Redevelopment Agency 0.00 0.00 0.00 0.358 0.358 1 Portfolio CITY AP Run Date:09f20/2012-14.,50 PM(PRF PM2)7.3.0 Rt 7.3.3b City of 1-113 Portfolio Management Page 2 Portfolio Details- Investments August 31, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Subtotal and Average 32,849,810.06 18,107,874.57 18,107,874.67 18,107,874.67 0.377 1 Medium Term Notes 084664ATS 3895 Berkshire Hathaway Fin 08/26/2011 1,310,000.00 1,441,379.90 1,414,660.47 4.850 AA 1.390 866 01/15/2015 14912L4Y4 3930 Caterpillar Financial Corp. 05/30/2012 2,000,000.00 2,024,240.00 2,009,653.86 1.125 A 0,911 835 12/15/2014 36962G4X9 3906 General Electric Capital Corp 09/29/2011 2,000,000.00 2,039,640.00 2,013,985.87 2.100 AA 1.570 493 01/07/2014 36962GZY3 3997 General Electric Capital Corp 09/16/2011 1,500,000.00 1,527,210.00 1,523,461.19 5.450 AA 1200 136 01/15/2013 36967HBB2 3805 GE Capital FDIC Insured 11/03/2009 2,000,000.00 2,002,480.00 2,000,407.71 2.000 AA 1.720 27 09/28/2012 36186CBF9 3763 GMAC FDIC Insured 06/30/2009 2,000,000.00 2,011,960.00 1,999,079.97 2.200 AA 2.361 109 12/19/2012 36185JAA7 3804 GMAC FDIC Insured 11/03/2009 2,000,000.00 2,004,940.00 1,999,892.63 1.750 AA 1.784 59 10/30/2012 Subtotal and Average 12,966,953.18 12,810,000.00 13,061,849.90 12,961,141.70 1.683 347 Total and Average 178,919,282.36 173,917,874.57 174,809,244A7 174,243,352.30 1.049 1,129 �d -P W � Portfolio CITY AP Run Date.09/20/2012-14:50 PM(PRF PM2)7.3.0 N CIS CD N City of 1-1I3 Portfolio Management Page 3 Portfolio Details - Cash August 31, 2012 Average Purchase Stated YTM Days to CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Average Balance 0.00 Accrued Interest at Purchase 25,754.17 25,754.17 0 Subtotal 25,754.17 25,754.17 Total Cash and Investments 178,919,282.36 173,917,87457 174,834,998.64 174,269,106A7 1.049 1,129 Cd -P -P Portfolio CITY Run Date:0 92 012012-1 4:50 AP PM(PRF PM2)7.3.0 City of l-lB Portfolio Management Activity By Type Page 1 August 1, 2012 through August 31, 2012 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer' Rate Date or Deposits or Withdrawals Balance Federal Agency Issues-Coupon 14912L5D9 3936 Caterpillar Financial Corp. 1.100 08/03/2012 3,048,660.00 0.00 3133EAJ33 3942 Federal Farm Credit Bank 0.730 08/15/2012 4,997,500.00 0.00 3133EAP77 39" Federal Farm Credit Bank 0.480 08/27/2012 5,000,000.00 0.00 3133805K9 3941 Federal Home Loan Bank 0.720 08/08/2012 4,999,265.00 0.00 3134G31390 3940 Federal Home Loan Mort Corp 0.875 08/15/2012 5,000,000.00 0.00 3136FTWGO 3915 Fed.Nat1 Mort.Assoc. 1.125 08/10/2012 0.00 5,000,000.00 24422ERK7 3937 John Deere Capital 1.250 08/03/2012 3,054,510.00 0.00 931142CX9 3943 Wal-Mart Stores 1.500 08/14/2012 3,084,750.00 0.00 Subtotal 29,184,685.00 5,000,000.00 143,174,336.03 Local Agency Investment Funds (Monthly Summary) SYS982 982 Laif City 0.377 0.00 27,000,000.00 Subtotal 0.00 27,000,000.00 18,107,874.S7 Medium Term Notes Subtotal 12,961,141.70 Total 29,184,685.00 32,000,000.00 174,243,352.30 H r♦ CD Portfolio CITY AP N Run Date:09l20/2012-1*50 PM(PRF_PM3)7.3.0 Report Ver.7.3.3b 00 N City of HB INC Portfolio Management Page 1 Activity Summary August 2011 through August 2012 Yield to Maturity Managed Number Number Month Number of Average 360 366 Pool of Investments of Investments Average Average End Year Securities Balance Equivalent Equivalent Rate Purchased Redeemed Tenn Days to Maturity August 2011 39 169,814,312.73 1263 1.281 0.408 1 5 936 761 September 2011 37 152,819,771.51 1.189 1.205 0.378 6 8 932 776 October 2011 36 155,770,159.22 1.239 1.266 0.385 3 2 1,049 167 November 2011 34 148,389,001.57 1.265 1.283 0.401 0 2 1,075 156 December 2011 37 147,666,119.75 1.154 1.170 0.382 8 5 1,067 888 January 2012 40 161,736,755.70 1.143 1.159 0.385 5 2 1,138 963 February 2012 42 174,741,686.41 1.197 1214 0.389 2 0 1,242 1,043 March 2012 38 174,394,254.80 1.158 1.174 0.383 1 5 1,186 993 April 2012 40 173,406,734.12 1.174 1.191 0.367 2 0 1,221 1,015 May 2012 40 181,650,062.55 1.168 1.184 0.363 1 1 1,218 994 June 2012 37 188,798,856.18 1.078 1.093 0.358 6 9 1,264 1,106 July 2012 33 178,453,606.72 1.011 1.025 0.363 0 4 1,133 964 August 2012 39 178,919,282.36 1.034 1.049 0.377 7 1 1,320 1,129 Average 38 168,187,609.51 1.160% 1.176% 0.380 3 3 1,137 843 b7 41 Portfolio CITY AP Rim Date:OW=012-14:50 PM(PRF PM4)7.3.0 I Ver.7.3.3b City of 1-I13 Portfolio Management Page 1 Interest Earnings Summary August 31, 2012 August 31 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 67,187.50 1,708,566.43 Plus Accrued Interest at End of Period 320,353.78 320,353.78 Less Accrued Interest at Beginning of Period ( 246,036.33) ( 345,146.88) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 141,504.95 1,683,773.33 Adjusted by Premiums and Discounts -14,528.94 -152,739.14 Adjusted by Capital Gains or Losses 9,000.00 16,361.97 Earnings during Periods 135,976.01 1,547,396.16 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) x Interest Earned during Period 0.00 0.00 CO Adjusted by Premiums and Discounts 0.00 0.00 J Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected 0.00 134,485.50 Plus Accrued Interest at End of Period 24,053.39 24,053.39 Less Accrued Interest at Beginning of Period ( 13,535.15) ( 53,473.66) Interest Earned during Period 10,518.24 105,065.23 Total Interest Earned during Period 152,023.19 1,788,838.56 Total Adjustments from Premiums and Discounts -14,528.94 -152,739.14 Total Capital Gains or Losses 9,000.00 16,361.97 Total Earnings during Period 146,494.25 1,652,461.39 CD Portfolio CITY S AP N Run Date:09/202012-14:50 PM(PRF PM6)7.3.0 Report Ver.7.3.3b 0 State of California Pooled Money Investment Account Market Valuation 8/31/2012 United States Treasury: Bills $ 17,026,408,343.72 $ 17,038,319,500.00 NA Notes $ 16,028,028,208.86 $ 16,089,397,500.00 $ 27,099,662.50 Federal Agency: SBA $ 542,388,451.48 $ 542,883,950.55 $ 560,957.70 MBS-REMICs $ 303,434,069.01 $ 330,404,877.88 $ 1,448,460.35 Debentures $ 750,514,278.80 $ 751,427,000.00 $ 1,009,168.50 Debentures FR $ - $ - $ - Discount Notes $ 4,493,107,222.16 $ 4,495,549,000.00 NA GNMA $ 10,452.74 $ 10,537.10 $ 103.53 IBRD Debenture $ 399,941,748.64 $ 400,000,000.00 $ 416,668.00 IBRD Deb FR $ - $ - $ - CDs and YCDs FR $ 400,000,000.00 $ 400,000,000.00 $ 144,527.22 Bank Notes $ - $ - $ CDs and YCDs $ 4,850,003,400.50 $ 4,848,440,995.62 $ 2,053,736.10 Commercial Paper $ 1,824,741,722.21 $ 1,824,592,250.00 NA Corporate: Bonds FR $ - $ - $ Bonds $ - $ - $ - Repurchase A reements $ - $ - $ - Reverse Repurchase $ - $ - $ - Time Deposits $ 4,364,640,000.00 $ 4,364,640,000.00 NA AB 55&GF Loans $ 9,335,159,385.90 $ 9,335,159,385.90 NA TOTAL $ 60,318,377,284.02 1 $ 60,420,824,997.0fl $ 32,733,283.90 Fair Value Including Accrued Interest $ 60,453,558,280.95 Repurchase Agreements, Time Deposits,AB 55&General Fund loans,and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). Item 2. - 11 FIB -48- Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department September 2012 Cash Receipts and Disbursements August 2012 September 2012 Receipts Property Tax Receipts $113,339 $1,283,151 Utility Tax Receipts (UUT) 1,684,339 1,757,281 Sales Tax Receipts 2,147,000 3,286,178 1/2 Cent Safety Sales Tax Receipts 188,934 159,694 Highway Users Tax Receipts (HUT) 564,565 - Transient Occupancy Tax Receipts (TOT) 949,392 836,801 Government Funds 90,940 219,855 Capital Funds 297,236 18,662 Debt Service Funds 3,833,251 - Enterprise Funds 5,989,749 5,055,760 Fiduciary Funds 1,451,043 6,117,533 Special Revenue Funds 1,834,656 2,044,345 All Other Receipts 4,697,280 1,470,301 Total Receipts $23,841,724 $22,249,562 i Disbursements Total Disbursements (39,020,706) (36,433,521) Net Change in Cash Flow ($15,178,981) ($14,183,958) Summary of Cash by Fund August 2012 September 2012 General Fund 56,247,222 54,111,629 Government Funds 1,084,111 1,228,185 Capital Funds 10,802,946 10,628,929 Debt Service Funds 3,762,714 16,263 Enterprise Funds 91,208,060 91,943,183 Fiduciary Funds 8,163,078 10,076,625 Special Revenue Funds 12,572,503 11,982,667 .General Ledger Cash Balances 183,840,635 179,987,483 *Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Sept 2012 10/18/2012 xB -49- Item 2. - 12 Council/Agency Meeting Held: Deferred/Continued to: ApDrc)ved, ❑ Conditionally Approved ❑ DeniedOtJ it Cie s Si tune Council Meeting Date: September 17, 2012 Departm ID Number: CT 12-013 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and File the City Treasurer's July 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for July 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach Financial Impact: Not Applicable. Recommended Action: Motion to: Receive and File the Monthly Investment Report for July 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique monthly report. Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Improve long-term financial sustainability. Improve internal and external communication. Attachment(s): o ® - o 0 1. Monthly Investment Report for July 2012 Item 3. - I xB -70- ATTACHMENT # 1 . r+ �X\11TINGrO W ;F�ycoewRA �4 ti y City of Huntington Beach = City of HB 00 Main St. G' 9 Hunt n" a Portfolio Management AuNTv cP�`�`�e Poll�tff®iio Summary July 31, 2012 Investments Value Market Book %of Days to YTM YTM Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv. Federal Agency Issues-Coupon 119,000,000.00 119,456,920.00 118,993,89323 6720 1,578 1,393 1.198 1.215 Local Agency Investment Funds 45,107,874.57 45,107,874.57 45,107,874.57 25.47 1 1 0.358 0.363 Medium Tenn Notes 12,810,000.00 13,068,738.90 12,971,428.44 7.33 993 378 1.561 1.583 Investments 176,917,874.57 177,633,533.47 177,073,196.24 100.00% 1,133 964 1.011 1.025 Total Earnings July 31 Month Ending Fiscal Year To Date Fiscal Year Ending Current Year 143,393.76 1,505,967.14 Current Budget 112,000.00 1,120,000.00 1,344,000.00 Last Year Actual 156,250.00 1,562,500.00 1,875,000.00 Average Daily Balance 178,453,606.72 168,443,102.90 Effective Rate of Return 0.95% 1.07% 1 certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on December 19,2011. A copy of this policy is available at the office of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via In ctive Data Corpora f2. N Alisa Cutchen,CITY TREASURER Reporting period 07/0112012-07/31/2012 Portfolio CITY AP Run Date:08/21/2012-12:33 PM(PRF PM1)7.3.0 Report Ver.7.3.3b City of HB Portfolio (Management Page 1 Portfollo Details-Investments July 31, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Federal Agency Issues-Coupon 3133EAHZ4 3926 Federal Farm Credit Bank 03/20/2012 3,000,000.00 3,020,820.00 3,000,000.00 1.300 AA 1.300 1,692 03/20/2017 3133EAUE6 3932 Federal Farm Credit Bank 06/14/2012 S,000,000.00 S,01S,300.00 S,000,000.00 0.87S AA 0.87S 1,413 06/14/2016 3133EAUE6 3933 Federal Farm Credit Bank 06/14/2012 5,000,000.00 S,015,300.00 5,000,000.00 0.875 AA 0.87S 1,413 06114/2016 3134G3BL3 3910 Federal Home Loan Mort Corp 12/0S/2011 5,000,000.00 5,007,900.00 5,000,000.00 1.000 AA 1.000 856 12/05/2014 3134G3CVO 3911 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 S,007,900.00 S,000,000.00 1.000 AA 1.000 870 12/19/2014 3134G3DY3 3912 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,008,150.00 5,000,000.00 0.87S AA 0.87S 870 12/19/2014 3134G3FGO 3913 Federal Home Loan Mort Corp 12/27/2011 3,000,000.00 3,003,810.00 3,000,000.00 OASO AA 0.650 695 06/27/2014 3134G3HV5 3919 Federal Home Loan Mort Corp D125/2012 5,000,000.00 S,023,850.00 5,000,000.00 1.125 AA 1.490 1,638 01/25/2017 3134G3FC9 3920 Federal Home Loan Mort Corp 01/09/2012 5,000,000.00 5,033,500.00 5,000,000.00 1.000 AA 1.000 1,155 09/30/2015 3134G3GN4 3921 Federal Home Loan Mort Corp 01/18/2012 7,000,000.00 7,035,840.00 7,000,000.00 1.500 AA 1.500 1,631 01/18/2017 3134G3KC3 3922 Federal Home Loan Mort Corp 01/27/2012 5,000,000.00 5,042,000.00 5,000,000.00 1.000 AA 1.000 1,274 01/27/2016 3134G3LU2 392S Federal Home Loan Mort Corp 02/14/2012 S,000,000.00 S,048,4SO.00 5,000,000.00 1.080 AA 1.316 1,658 02/14/2017 31398A3L4 3854 Fed.Nall Mort Assoc. 09/17/2010 3,000,000.00 3,027,150.00 3,000,000.00 1.125 AA 1.125 412 09/17/2013 3136FRVS9 3894 Fed.Nat'l Mort Assoc. 09/14/2011 8,000,000.00 8,008,400.00 8,000,000.00 1.050 AA 1.516 1,SO5 09/14/2016 3136FTFG9 3909 Fed.Nat'l Mort Assoc. 10/26/2011 5,000,000.00 5,012,350.00 5,000,000.00 1.250 AA 1.722 1,547 10/26/2016 3136FTWGD 3915 Fed.Nat'l Mort Assoc. 12/28/2011 5,000,000.00 5,014,050.00 5,000,000.00 1.125 AA 1.641 1,610 12/28/2016 3136FTVF3 3916 Fed.Nat?Mort Assoc. 12/282011 S,000,000.00 5,014,650.00 5,000,000.00 1.000 AA 1.709 1,610 12/28/2016 r� 3136FTXD6 3917 Fed.Nat'l Mort Assoc. 12/282011 5,000,000.00 5,013,450.00 5,000,000.00 1.100 AA 1.100 1,244 1228/2015 3136FTASS 3923 Fed.Nat'I Mort Assoc. 01/30/2012 5,000,000.00 S,024,300.00 5,000,000.00 1.300 AA 1.300 1,643 01/30/2017 1 3136FTK73 3924 Fed.Nett Mort Assoc. 02/22/2012 5,000,000.00 5,031,400.00 5,000,000.00 1.375 AA 1.375 1,666 02/22/2017 W 3136GDJLS 3929 Fed.Nat1 Mort Assoc. 06/072012 5,000,000.00 5,021,000.00 5,000,000.00 1.000 AA 1.257 1,771 06/07/2017 3136GOMK4 3931 Fed.Nat'l Mort Assoc. 06/212012 5,000,000.00 5,013,150.00 5,000,000.00 1.000 AA 1.246 1,785 06/21/2017 3136GOMVD 3934 Fed.Nat'l Mort Assoc. 06212012 5,000,000.00 5,007,450.00 5,000,000.00 0.800 AA 0.800 1,328 0321/2016 3136GONR8 3935 Fed.Nat?Mort Assoc. 06/28/2012 5,000,000.00 5,006,750.00 4,993,893.23 0.500 AA 0.966 1,427 06282016 Subtotal and Average 131,508,867AS 119,000,000.00 119,466,920.00 118,993,893.23 1.215 1,393 Local Agency Investment Funds SYS982 982 Laif City 45,107,874.57 45,107,874.57 45,107,874.57 0.363 0.363 1 SYS2206 2206 LAIF-Redevelopment Agency 0.00 0.00 0.00 0.358 0.358 1 Subtotal and Average 33,968,499.33 45,107,974.67 46,107,874-67 45,107,874.67 0.363 1 Medlum Term(dotes 084664ATS 389S Berkshire Hathaway Fin 08/262011 1,310,000.00 1,444,S23.90 1,418,337.06 4.850 AA 1.390 897 01/15/2015 14912L4Y4 3930 Caterpillar Financial Corp. 05/302012 2,000,000.00 2,026,580.00 2,010,005.33 1.125 A 0.911 866 12/1S/2014 36962G4X9 3906 General Electric Capital Corp 0929/2011 2,000,000.00 2,034,560.00 2,014,849.19 2.100 AA 1.S70 524 01/07/2014 36962GZY3 3997 General Electric Capital Corp 09/16/2011 1,500,000.00 1,534,335.00 1,528,713.70 5.450 AA 1.200 167 01/152013 1-- �--r P01'IfOliO CITY CD AP Run Date:06/21/2012-12:33 PM(PRF PM2)7.3.0 W Report Ver.7.3.3b -P w City of H13 (� Portfolio Management Page 2 Portfolio Details - Investments July 31, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# issuer Balance Data Par Value Market Value Book Value Rate S&P 365 Maturity Date Medium Tenn Notes 369671-1662 3805 GE Capital FDIC Insured 11/03/2009 2,000,000.00 2,005,640.00 2,000,860.73 2.000 AA 1.720 58 09/28/2012 36186CBF9 3763 GMAC FDIC Insured O6/30/2009 2,000,000.00 2,015,360.00 1,998,824.40 2.200 AA 2.361 140 12/19/2012 36185JAA7 3804 GMAC FDIC Insured 11/03/2009 2,000,000.00 2,007,740.00 1,999,838.03 1.750 AA 1.784 90 10/30/2012 Subtotal and Average 12,976,239.94 12,810,000.00 13,068,738.90 12,971,428.44 1.683 378 Total and Average 178,453,606.72 176,917,874.57 177,633,533A7 177,073,196.24 1.025 9" -p Portfolio CITY Run Date:08/21/2012-12:33 AP PM(PRF PM2)7.3.0 City of FIB Portfolio Management Page 1 Activity By Type g July 1, 2012 through July 31, 2012 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues-Coupon 313378YCS 3927 Federal Home Loan Bank 1.000 07/27/2012 0.00 5,000,000.00 313378XE6 3928 Federal Home Loan Bank 1.060 07/27/2012 0.00 5,000,000.00 3135GODT7 3904 Fed.Nat?Mort Assoc. 0.700 07/17/2012 0.00 4,998,687.50 3135GODT7 3906 Fed.Nat?Mort Assoc. 0.700 07/17/2012 0.00 2,999,212.60 Subtotal 0.00 17,997,900.00 118,993,893.23 Local Agency Investment Funds (Monthly Summary) SYS982 982 Laif City 0.363 15,026,719.36 0.00 Subtotal 15,026,719.36 OAO 46,107,874.57 Medium Term Notes Subtotal 12,971,428A4 Total 16,026,719.36 17,997,900.00 177,073,196.24 i s Portfolio CITY AP W Run Date:0621/2012-12:33 PM(PRF PM3)7.3.0 Report Ver.7.3.3b r+ CD W City Of FIB Portfolio Management Page 1 Activity Summary July 2011 through July 2012 Yield to Maturity Managed Number Number Month Number of Average 360 366 Pool of Investments of Investments Average Average End Year Securities Balance Equivalent Equivalent Rate Purchased Redeemed Tern Days to Maturity July 2011 43 183,784,185.57 1.269 1.286 0.381 3 5 940 784 August 2011 39 169,814,312.73 1.263 1.281 0.408 1 5 936 761 September 2011 37 152,819,771.51 1.189 1.205 0.378 6 8 932 776 October 2011 36 155,770,159.22 1.239 1.256 0.385 3 2 1,049 167 November 2011 34 148,389,001.57 1265 1.283 0.401 0 2 1,075 156 December 2011 37 147,666,119.75 1.154 1.170 0.382 8 5 1,067 888 January 2012 40 161,736,755.70 1.143 1.159 0.385 5 2 1,138 963 February 2012 42 174,741,686A1 1.197 1214 0.389 2 0 1,242 1,043 March 2012 38 174,394,254.80 1.158 1.174 0.383 1 5 1,186 993 April 2012 40 173,406,734.12 1.174 1.191 0.367 2 0 1,221 1,015 May 2012 40 181,650,062.55 1.168 1.184 0.363 1 1 1,218 994 June 2012 37 188,798,856.18 1.078 1.093 0.358 6 9 1,264 1,106 July 2012 33 178,453,606.72 1.011 1.025 0.363 0 4 1,133 964 Average 38 168,567,488.60 1.1780/6 1.194% 0.380 3 4 1,108 816 CA 1711 `.l Portfolio CITY AP Run Date:03/2U2012-1233 PM(PRF PM4)7.3.0 Report Ver.7.3.3b City of liB Portfolio Management Page 1 Interest Earnings Summary July 31, 2012 July 31 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 295,142.50 1,641,378.93 Plus Accrued Interest at End of Period 246,036.33 246,036.33 Less Accrued Interest at Beginning of Period ( 400,242.53) ( 345,146.88) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 140,936.30 1,542,268.38 Adjusted by Premiums and Discounts -10,115.07 -138,21020 Adjusted by Capital Gains or Losses 2,100.00 7,361.97 Earnings during Periods 132,921.23 1,411,420.15 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) x Interest Earned during Period 0.00 0.00 Adjusted by Premiums and Discounts 0.00 0.00 a Adjusted by Capital Gains or Losses 0.00 0.00 �.a Earnings during Periods 0.00 0.00 Cash/Checldng Accounts: Interest Collected 26,719.36 134,485.50 Plus Accrued Interest at End of Period 13,535.15 13,535.15 Less Accrued Interest at Beginning of Period ( 29,781.98) ( 53,473.66) Interest Earned during Period 10,472.53 94,546.99 Total Interest Earned during Period 151,408.83 1,636,815.37 Total Adjustments from Premiums and Discounts -10,115.07 -138,210.20 Total Capital Gains or Losses 2,100.00 7,361.97 Total Earnings during Period 143,393.76 1,505,967.14 Portfolio CITY N AP Run Date:M 2012-12:33 PM(PRF PM6)7.3.0 W Report Ver.7.3.3b State of California Pooled Money Investment Account Market Valuation 7/31/2012 United State"_y: Bells $ 15,030,429,656.18 $ 15,039,812,000.00 NA Notes $ 16,428,032,885.44 $ 16,494,695,500.00 $ 23,274,153.50 Federal Agency: SBA $ 546,909,183.33 $ 547,486,843.39 $ 565,753.05 MBS-REMICs $ 311,842,002.63 $ 339,152,134.07 $ 1,488,217.37 Debentures $ 750,514,278.80 $ 751,297,500.00 $ 771,666.00 Debentures FR $ - $ - $ Discount Notes $ 2,296,401,499.92 $ 2,298,468,000.00 NA GNMA $ 11,790.01 $ 11,888.32 $ 116.64 IBRD Debenture $ 399,941,748.64 $ 400,000,000.00 $ 250,000.00 IBRD Deb FR $ - $ - $ CDs and YCDs FR $ 800,000,000.00 $ 800,000,000.00 $ 1,115,545.00 Bank Notes $ - $ - $ - CDs and YCDs $ 2,875,003,400.50 $ 2,874,889,220.45 $ 2,168,868.06 Commercial Paper $ 1,603,683,985.56 $ 1,603,748,069.45 NA Corporate: Bonds FR $ - $ - $ - Bonds $ - $ - $ _ Repurchase Agreements $ - $ - $ Reverse Repurchase $ - $ - $ Time Deposits $ 4,429,140,000.00 $ 4,429,140,000.00 NA AB 55&GF Loans $ 16,078,301,385.90 $ 16,078,301,385.90 NA TOTAL 1 $ 61,550,211,816.91 $ 61,657,002,541.58 $ 29,634,319.62 Fair Value Including Accrued Interest $ 61,686,636,861.20 Repurchase Agreements,Time Deposits,AB 55&General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). Item 3. - 9 HB -78- Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department July 2012 Cash Receipts and Disbursements June 2012 July 2012 Receipts Property Tax Receipts $3,922,382 $881,628 Utility Tax Receipts (UUT) 1,613,311 1,631,122 Sales Tax Receipts 2,500,705 1,610,900 1/2 Cent Safety Sales Tax Receipts 182,488 146,818 Highway Users Tax Receipts (HUT) 474,791 - Transient Occupancy Tax Receipts (TOT) 608,828 716,722 Government Funds 46,947 22,785 Capital Funds 38,253 50,224 Enterprise Funds 4,732,680 5,358,086 Fiduciary Funds 4,656,287 1,155,052 Special Revenue Funds 2,828,786 1,859,090 All Other Receipts 3,110,370 5,789,872 Total Receipts $24,715,827 $19,222,299. Disbursements Total Disbursements (23,562,806) (25,237,349) Net Change in Cash Flow $1,153,021 ($6,015,042) Summary of Cash by_FundJune 2012 July 2012 General Fund 77,126,143 64,939,813 Government Funds 1,287,938 1,256,416 Capital Funds 5,968,268 5,970,118 Debt Service Funds 17,982 17,982 Enterprise Funds 90,011,434 90,728,540 Fiduciary Funds 6,682,584 15,368,353 Special Revenue Funds 17,951,782 18,853,172 General Ledger Cash Balances 199,046,131 197,134,394 *Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Jul 2012.xisx 8/29/2012 HB -79- Item 3. - 10 Council/Agency Meeting Held: Y Ul.;L, Deferred/Continued to: *A rov d Z ❑ nd'ti Wally AP r v d Denied C' y ler ' Sign e Council Meeting Date: August 6, 2012 Departme Number: CT 12-012 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and File the City Treasurer's June 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for June 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable. Recommended Action: Motion to: Receive and File the Monthly Investment Report for June 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique monthly report. Analysis: Not Applicable. Environmental Status: Not Applicable Strategic Plan Goal: Maintain long-term financial viability and city's reserves. Improve internal and external communication. Attachment(s): MiMilonthlyInvestment Report for June 2012 2. PowerPoint Presentation Investment Report June 2012 3. 1 City of Huntington Beach Investment Review Period Ending 6-30-12 Item 1 - 1 xB -50- ATTACHMENT # 1 �pNTINGT�2 OtC_-�OORDXq TES �� � y City of Huntington Beach City of 1-113 2000 Main St. Huntington Beach, w 9 == = Portfolio Management � o1JN � Q Portfolio Summary June 30, 2012 Investments Par Market Book %of Days to YTM YTM Value Value Value Portfolio Tenn Maturity 360 Equiv. 365 Equiv. Federal Agency Issues-Coupon 137,000,000.00 137,366,250.00 136,991,621.53 76.08 1,568 1,414 1.192 1.208 Local Agency Investment Funds 30,081,155.21 30,081,155.21 30,081,155.21 16.71 1 1 0.353 0.358 Medium Tenn Notes 12,810,000.00 13,064,854.40 12,981,715.21 7.21 993 409 1.561 1.582 Investments 179,891,155.21 180,512,259.61 180,054,491.95 100.00% 1,264 1,106 1.078 1.093 Cash and Accrued Interest Accrued Interest at Purchase 1,250.00 1,250.00 Subtotal 1,250.00 1,250.00 Total Cash and Investments 179,891,155.21 180,613,509.61 180,055,741.95 1,264 1,106 1.078 1.093 Total Earnings June 30 Month Ending Fiscal Year To Date Fiscal Year Ending x Current Year 160,620.86 1,363,050.27 Current Budget 112,000.00 1,008,000.00 1,344,000.00 Last Year Actual 156,250.00 1,406,250.00 1,875,000.00 Average Daily Balance 188,798,856.18 167,310,527.65 ' Effective Rate of Return 1.04% 1.09% 1 certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on December 19,2011. A copy of this policy is available at the office of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via Interactive Data Corporation. Alisa Cutchen,CITY TREASURER Reporting period 06/0112012-0613012012 Portfolio CITY AP Run Date:07/122012-1 5:17 PM(PRF PM7)7.3.0 Report Ver.7.3.3b City of 1-II3 Portfolio Management Page 1 Portfolio Details -Investments June 30, 2012 Average Purchase Stated YIM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Federal Agency Issues-Coupon 3133EAHZ4 3926 Federal Farm Credit Bank 03/20/2012 3,000,000.00 3,018,390.00 3,000,000.00 1.300 AA 1.300 1,723 03/20/2017 3133EAUE6 3932 Federal Farm Credit Bank 06/14/2012 5,000,000.00 4,997,550.00 5,000,ODO.00 0.875 AA 0.875 1,444 D6/14/2016 3133EAUE6 3933 Federal Farm Credit Bank 06/14/2012 5,000,000.00 4,997,550.00 5,000,000.00 0.875 AA 0,875 1,444 06/14/2016 313378YC9 3927 Federal Home Loan Bank 04/27/2012 5,000,000.00 5,002,350.00 5,000,000.00 1.000 AA 1.590 1,761 D4/27/2017 313378XE6 3928 Federal Home Loan Bank 04/27/2012 5,000,000.00 5,002,650.00 5,000,000.00 1.050 AA 1.456 1,761 D4/27/2017 3134G3BL3 3910 _ Federal Home Loan Mort Corp 12/05/2011 5,000,000.00 5,008,550.00 5,000,000.00 1.000 AA 1.000 887 12/05/2014 3134G3CVO 3911 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,007,900.00 5,000,000.00 1.000 AA 1.000 901 12h9/2014 3134G3DY3 3912 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,008,300.00 5,000,000.00 0.875 AA 0.875 901 12/19/2014 3134G3FGO 3913 Federal Home Loan Mort Corp 12/27/2011 3,000,000.00 3,003,570.00 3,000,000.00 0.650 AA 0.650 726 06/27/2014 3134G3HV5 3919 Federal Home Loan Mort Corp 01/25/2012 5,000,000.00 5,022,900.00 5,000,000.00 1.125 AA 1.490 1,669 01/25/2017 3134G3FC9 3920 Federal Home Loan Mort Corp 01/09/2012 5,000,000.00 5,026,550.00 5,000,000.00 1.000 AA 1.000 1,186 09/30/2015 3134G3GN4 3921 Federal Home Loan Mort Corp 01/18/2012 7,000,000.00 7,033,320.00 7,000,000.00 1.500 AA 1.500 1,662 01/18/2017 3134G3KC3 3922 Federal Home Loan Mort Corp 01/27/2012 5,000.000.00 5,032,900.00 5,000,000.00 1.000 AA 1.000 1,305 01/27/2016 3134G3LU2 3925 Federal Home Loan Mort Corp 02/14/2012 5,000,000.00 5,034,850.00 5,000,000.00 1.050 AA 1.316 1,689 02/14/2017 31398A31-4 3854 Fed.Nat'l Mort Assoc. 09/17/2010 3,000,000.00 3,027,060.00 3,000,000.00 1.126 AA 1.125 443 09/17/2D13 3136FRV59 3894 Fed.Nafl Mort Assoc. 09/14/2011 8,000,000.00 8,014,320.00 8,000,000.00 1.050 AA 1.516 1,536 09/14/2016 3135GODT7 39D4 Fed.Nafl Mort Assoc. 10/17/2011 5,000,000.00 5,000,650.00 4,998,661.57 0.700 AA 0.712 838 10/17/2014 3135GODT7 39D5 Fed.Nat'l Mort Assoc. 10/17/2011 3,000,000.00 3,000,390.00 2,999,196.94 0.700 AA 0.712 838 10/17/2014 W 3136FTFG9 3909 Fed.Nat'I Mort Assoc. 1D/26/2011 5.000,000.00 5,016,650.00 5,000,000.00 1.250 AA 1.722 1,578 10/26/2016 3136FTWGD 3915 Fed.Nafl Mort Assoc. 12/28/2011 5,000,000.00 5,014,800.00 5,000,000.00 1.125 AA 1.641 1,641 12/28/2016 3136FTVF3 3916 Fed.Nat'l Mort Assoc. 12/28/2011 5,()00,000.00 5,016,450.00 5,000,000.00 1.000 AA 1.709 1,641 12/28/2016 3136FTXD6 3917 Fed.Nat'l Mort Assoc. 12/28/2011 5,000,000.00 5,012,050.00 5,00o,ODD.00 1.100 AA 1.100 1,275 12/28/2015 3136FTA58 3923 Fed.Nat'l Mort Assoc. 01/30/2012 5,000,000.00 5,022,150.00 5,000,000.00 1.300 AA 1.300 1,674 01/30/2017 3136FTK73 3924 Fed.Nat'l Mort Assoc. 02/22/2012 5,000,000.00 6,030,050.00 5,000,000.00 1.375 AA 1.375 1,697 02/22/2017 3136GDJL6 3929 Fed.Natl Mort Assoc. 06/07/2012 5,000,000.00 5,014,300.00 5,000.000.00 1.000 AA 1.257 1,802 06/07/2017 3136GOMK4 3931 Fed.NaVI Mort Assoc. 06/21/2012 5,000,00D.00 5,004,600.00 5,000,000.00 1.000 AA 1.246 1,816 06/21/2D17 3136GOMVO 3934 Fed.Nat'l Mort Assoc. 06/21/2012 5,000,000.00 4,994,750.00 5,000,000.00 0.800 AA 0.800 1,359 03/21/2016 3136GONRS 3935 Fed.Nat'l Mort Assoc. 06/28/2012 5,000,000.00 5,000,700.00 4,993,763.02 0.500 AA 0.966 1,458 06/28/2016 Subtotal and Average 141,997,196.79 137,000,000.00 137,366,250.00 136,991,621.53 1.208 1,414 Local Agency Investment Funds SYS982 982 Law City 30,081,155.21 30,081,155.21 30,081,155.21 0.358 0.358 1 SYS2206 2206 LAIF-Redevelopment Agency 0.00 0.00 0.00 0.358 0.358 1 Subtotal and Average 30,081,155.21 30,081,155.21 30,081,155.21 30,081,155.21 0.358 1 Portfolio CITY CD AP Run Data:07112/2012-15:17 PM(PRF PM2)7.3.0 Report Ver.7.3.3b -P a--a City of HB Portfolio Management Page Portfolio Details -Investments June 30, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Medium Tenn Notes 084664AT8 3895 Berkshire Hathaway Fin 08/26/2011 1,310,000.00 1,441,314.40 1,422,013.66 4.850 AA 1.390 928 01/15/2015 149121-4Y4 3930 Caterpillar Financial Corp. 05/30/2012 2,000,000.00 2,017,360.00 2,010,356.81 1.125 A 0.911 897 12/15/2014 36962G4X9 3906 General Electric Capital Corp 09/29/2011 2,000,000.00 2,031,100.00 2,015,712.52 2.100 AA 1.570 565 01/07/2014 36962GZY3 3997 General Electric Capital Corp 09/16/2011 1,500,000.00 1,538,760.00 1,533,966.20 5.450 AA 1.200 198 01/15/2013 36967HBB2 3805 GE Capital FDIC Insured 11/03/2009 2,000,000.00 2,008,200.00 2,001,313.74 2.000 AA 1.720 89 09/28/2012 36186CBF9 3763 GMAC FDIC Insured 06/30/2009 2,000,000.00 2,018,360.00 1,998,568.84 2.200 AA 2.361 171 12/19/2012 36185JAA7 3804 GMAC FDIC Insured 11/03/2009 2,000,000.00 2,009,760.00 1,999,783.44 1.750 AA 1.784 121 10/30/2012 Subtotal and Average 16,720,604.17 12,810,000.00 13,064,864.40 12,981,716.21 1.582 409 Total and Average 188,798,866.18 179,891,165.21 180,612,269.61 180,064,491.95 1.093 1,106 rTr -P Portfolio CITY AP Run Date:07N2/2012-15:17 PM(PRF PM2)7.3.0 City of HB Portfolio Management Page 3 Portfolio Details -Cash June 30, 2012 Average Purchase Stated YTM Days to CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Average Balance 0.00 Accrued Interest at Purchase 1,250.00 1,250.00 0 Subtotal 1,250.00 1,250.00 Total Cash and Investments 188,798,856.18 179,891,155.21 180,513,609.61 180,065,741.95 1.093 1,106 v, to Portfolio CITY CD AP Run Date:07/12/2012-15:17 PM(PRF PM2)7.3.0 r+ •� City of FIB Portfolio Management Activity By Type Page 1 June 1, 2012 through June 30, 2012 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues-Coupon 3133EAUES 3932 Federal Farm Credit Bank 0.875 06/14/2012 5,000,000.00 0.00 3133EAUES 3933 Federal Farm Credit Bank 0.875 06/14/2012 5,000,000.00 0.00 3133747F1 3885 Federal Home Loan Bank 0.700 06/27/2012 0.00 5,000,000.00 3134G2LY6 3892 Federal Home Loan Mort Corp 2.000 06/29/2012 0.00 5,000,000.00 3136FRQJ5 3884 Fed.Nat?Mort Assoc. 1.170 06/20/2012 0.00 5,000,000.00 3136FRVH3 3889 Fed.Nat'l Mort Assoc. 1.750 06/29/2012 0.00 5,000,000.00 3135GOGN7 3914 Fed.Nat'l Mort Assoc. 0.900 06/29/2012 0.00 5,000,000.00 3136GOJLG 3929 Fed.Nat'l Mort Assoc. 1.000 06/07/2012 5,000,000.00 0.00 3136GOMK4 3931 Fed.Natl Mort Assoc. 1.000 06/21/2012 5,000,000.00 0.00 3136GOMVO 3934 Fed.Nat'l Mort Assoc. 0.800 06/21/2012 5,000,000.00 0.00 3136GONRB 3935 Fed.Nafl Mort Assoc. 0.500 06/28/2012 4,993,750.00 0.00 Subtotal 29,993,760.00 25,000,000.00 136,991,621.53 Local Agency Investment Funds (Monthly Summary) Subtotal 30,081,155.21 Medium Term Notes 06050BAJO 3734 Bank of America FDIC Insured 2.375 06/22/2012 0.00 2,000,000.00 36967HAHO 3735 General Electric Cap FDIC Insu 2.200 06/08/2012 0.00 2,000,000.00 481247AKO 3738 JP Morgan Chase FDIC Insured 2.200 06/15/2012 0.00 2,000,000.00 49328CAA3 3770 Key Bank FDIC Insured 3.200 06/15/2012 0.00 2,000,000.00 Subtotal 0.00 8,000,000.00 12,981,715.21 Total 29,993,750.00 33,000,000.00 180,054,491.95 Portfollo CITY Run Date:07/12/2012-15:17 AP PM(PRF PM3)7.3.0 ,rt Ver.7.3.3b �VtVT I NGT� City of Huntington Beach City of HB 2000 Main St. Activity Report Huntington Beach, Sorted By Issuer �7UNfl CPS\ April 1, 2012 -June 30, 2012 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer ofPortfollo Balance Rate Date Deposits Withdrawals Balance Issuer:Bank of America FDIC Insured Medium Term Notes 06050BAJO 3734 Bank of America FDIC Insured 2.375 06/22/2012 0.00 2,000,000.00 Subtotal and Balance 2,000,000.00 0.00 2,000,000.00 0.00 Issuer Subtotal 0.000% 2,000,000.00 0.00 2,000,000.00 0.00 Issuer: Berkshire Hathaway Fin Medium Tenn Notes Subtotal and Balance 1,310,000.00 1,310,000.00 Issuer Subtotal 0.728% 1,310,000.00 0.00 0.00 1,310,000.00 Issuer:Caterpillar Financial Corp. Medium Tenn Notes 14912L4Y4 3930 Caterpillar Financial Corp. 1.125 05/30/2012 2,000,000.00 0.00 v' Subtotal and Balance 0.00 2,000,000.00 0.00 2,000,000.00 J 1 Issuer Subtotal 1.112% 0.00 2,000,000.00 0.00 2,000,000.00 Issuer:Federal Farm Credit Bank Federal Agency Issues-Coupon 3133EAUE6 3932 Federal Farm Credit Bank 0.875 06/14/2012 5,000,000.00 0.00 3133EAUE6 3933 Federal Farm Credit Bank 0.875 06/14/2012 5,000,000.00 0.00 Subtotal and Balance 3,000,000.00 10,000,000.00 0.00 13,000,000.00 Issuer Subtotal 7.227% 3,000,000.00 10,000,000.00 0.00 13,000,000.00 Issuer:Federal Home Loan Bank Federal Agency Issues-Coupon 3133747F1 3886 Federal Home Loan Bank 0.700 06/27/2012 0.00 5,000,000.00 Portfolio CITY AP Run Date:07/172012-16:13 DA(PRF_DA)7.2.0 �, Report Ver.7.3.3b r+ CD i—+ City of HB Activity Report Page 2 ISO April 1„2012-June 30,2012 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer Of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer:Federal Home Loan Bank Federal Agency Issues-Coupon 313378YC9 3927 Federal Home Loan Bank 1.000 04/27/2012 5,000,000.00 0.00 313378XE6 3928 Federal Home Loan Bank 1.050 04/27/2012 5,000,000.00 0.00 Subtotal and Balance 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 Issuer Subtotal 5.659% 5,000,000.00 10,000,000.00 5,000,000.00 10,000,000.00 Issuer: Federal Home Loan Mort Corp Federal Agency Issues-Coupon 3134G2LY6 3892 Federal Home Loan Mort Corp 2.000 06/29/2012 0.00 5,000,000.00 Subtotal and Balance 50,000,000.00 0.00 6,000,000.00 45,000,000.00 Issuer Subtotal 25.015% 50,000,000.00 0.00 5,000,000.00 46,000,000.00 Issuer: Fed.Nat'l Mort.Assoc. Federal Agency Issues-Coupon 3136FRQJ5 3884 Fed.Nat?Mort Assoc. 1.170 06/20/2012 0.00 5,000,000.00 3136FRVH3 3889 Fed.Nat'l Mort Assoc. 1.750 06/29/2012 0.00 5,000,000.00 3135GOGN7 3914 Fed.Nat'l Mort Assoc. 0.900 06/29/2012 0.00 5,000,000.00 yr 3136GOJL6 3929 Fed.Nat'l Mort.Assoc. 1.000 06/07/2012 5,000,000.00 0.00 dJ 3136GOMK4 3931 Fed.Nat'l Mort Assoc. 1.000 06/21/2012 5,000,000.00 0.00 3136GOMVO 3934 Fed.Nat'l Mort Assoc. 0.800 06/21/2012 5,000,000.00 0.00 3136GONRS 3935 Fed.Nat'l Mort Assoc. 0.500 06/28/2012 5,000,000.00 0.00 Subtotal and Balance 64,000,000.00 20,000,000.00 15,000,000.00 69,000,000.00 Issuer Subtotal 38.357% 64,000,000.00 20,000,000.00 15,000,000.00 69,000,000.00 Issuer:General Electric Capital Corp Medium Term Notes Subtotal and Balance 3,500,000.00 3,500,000.00 Issuer Subtotal 1.946% 3,500,000.00 0.00 0.00 3,500,000.00 Issuer:GE Capital FDIC Insured Portfolio CITY AP Run Date:07/17/2012-15:13 DA(PRF DA)72.0 Report Ver.7.3.3b City of HB Activity Report Page 3 April 1,2012-June 30,2012 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer Of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer:GE Capital FDIC Insured Medium Term Notes Subtotal and Balance 2,000,000.00 2,000,000.00 Issuer Subtotal 1.112% 2,000,000.00 0.00 0.00 2,000,000.00 Issuer:General Electric Cap FDIC Insu Medium Term Notes 36967FIAHO 3735 General Electric Cap FDIC Insu 2.200 06/08/2012 0.00 2,000,000.00 Subtotal and Balance 2,000,000.00 0.00 2,000,000.00 0.00 Issuer Subtotal 0.000% 2,000,000.00 0.00 2,000,000.00 0.00 Issuer:GMAC FDIC Insured Medium Term Notes Subtotal and Balance 4,000,000.00 4,000,000.00 Issuer Subtotal 2.224°/a 4,000,000.00 0.00 0.00 4,000,000.00 Issuer.JP Morgan Chase FDIC Insured Medium Term Notes 481247AKO 3738 JP Morgan Chase FDIC Insured 2.200 06/15/2012 0.00 2,000,000.00 Subtotal and Balance 2,000,000.00 0.00 2,000,000.00 0.00 Issuer Subtotal 0.000% 2,000,000.00 0.00 2,000,000.00 0.00 Issuer:Key Bank FDIC Insured Medium Term Notes 49328CAA3 3770 Key Bank FDIC Insured 3.200 06/15/2012 0.00 2,000,000.00 Subtotal and Balance 2,000,000.00 0.00 2,000,000.00 0.00 Issuer Subtotal 0.000% 2,000,000.00 0.00 2,000,000.00 0.00 Issuer: Laif City r+ 0 Portfolio CITY E AP 1� Run Date:07/17/2012-15:13 DA(PRF DA)7.2.0 Report Ver.7.3.3b 1 F� r-r N �--� City of HB i Activity Report Page 4 April 1,2012-June 30,2012 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer. Laif City Local Agency Investment Funds SYS982 982 Laif City 0.358 23,914.48 0.00 Subtotal and Balance 30,057,240.73 23,914.48 0.00 30,081,166.21 Issuer Subtotal 16.722% 30,057,240.73 23,914.48 0.00 30,081,166.21 Issuer:LAIF-Redevelopment Agency Local Agency Investment Funds SYS2206 2206 LAIF-Redevelopment Agency 0.368 0.62 0.62 Subtotal and Balance 0.00 0.62 0.62 0.00 Issuer Subtotal 0.0000/0 0.00 0.62 0.62 0.00 Issuer: US Bank FDIC Insured Medium Term Notes 91160HAC1 3743 US Bank FDIC Insured 1.800 06/16/2012 0.00 1,000,000.00 ram. Subtotal and Balance 1,000,000.00 0.00 1,000,000.00 0.00 Issuer Subtotal 0.000% 1,000,000.00 0.00 1,000,000.00 0.00 O Total 100.0000% 171,867,240.73 42,023,915.10 34,000,000.62 179,891,155.21 Portfolio CITY Run Date:Date:07/17/2012-15:13 DA(PRF DA)72.0 Report Ver.7.3.3b City of HB Portfolio Management Page 1 Activity Summary June 2011 through June 2012 Yield to Maturity Managed Number Number Month Number of Average 360 365 Pool of investments of investments Average Average End Year Securities Balance Equivalent Equivalent Rate Purchased Redeemed Term Days to Maturity June 2011 45 166,927,847.24 1.278 1.296 0.448 9 10 901 745 July 2011 43 183,784,185.57 1.269 1.286 0.381 3 5 940 784 August 2011 39 169,814,312.73 1.263 1.281 0.408 1 5 936 761 September 2011 37 152,819,771.51 1.189 1.205 0.378 6 8 932 776 October 2011 36 155,770,159.22 1.239 1.256 0.385 3 2 1,049 167 November 2011 34 148,389,001.57 1.265 1.283 0.401 0 2 1,075 156 December 2011 37 147,666,119.75 1.154 1.170 0.382 8 5 1,067 888 January 2012 40 161,736,755.70 1.143 1.159 0.385 5 2 1,138 963 February 2012 42 174,741,686.41 1.197 1.214 0.389 2 0 1,242 1,043 March 2012 38 174,394,254.80 1.158 1.174 0.383 1 5 1,186 993 April 2012 40 173,406,734.12 1.174 1.191 0.367 2 0 1,221 1,015 May 2012 40 181,650,062.55 1.168 1.184 0.363 1 1 1,218 994 June 2012 37 188,798,856.18 1.078 1.093 0.358 6 9 1,264 1,106 Average 39 167,669,360.06 1.1980/0 1.215% 0.387 4 4 1,090 799 b7 i--d CD Portfolio CITY AP �-+ Run Date:0711212012-15:17 PM(PRF_PM4)7.3.0 • Report Ver.7.3.3b N CD City of HB Portfolio Management Page 1 Distribution of Investments By Type June 2011 through June 2012 June July August September October November December January February March April May June Average Security Type 2011 2011 2011 2011 2011 2011 2011 2012 2012 2012 2012 2012 2012 by Period Repurchase Agreements Certificates of Deposit Commercial Paper-interest Bearing Federal Agency issues-Coupon 54.6 57.7 56.2 54.8 61.9 61.1 65.8 69.1 74.8 70.9 72.5 72.1 76.1 65.2% Local Agency Investment Funds 32.8 30.7 30.1 30.3 22.1 21.6 19.0 17.2 11.5 17.5 16.5 16.4 16.7 21.7% Treasury Securities-Coupon Medium Tenn Notes 12.6 11.6 13.8 14.9 16.0 17.3 15.2 13.7 13.7 11.6 11.0 11.5 7.2 13.1% Negotiable CD's Certificates of Deposit-Bank Mortgage Backed Securities Bankers Acceptances-Amortizing Commercial Paper Disc.-Amortizing Federal Agency Disc.Amortizing Treasury Discounts-Amortizing Miscellaneous Discounts-Amortizing Money Market Acct Rolling Repurchase Agreements N Portfolio CITY Run Date:07/12/2012-15:17 AP PM(PRF PM5)7.3.0 Report Ver.7.3.3b City of 1-I13 Portfolio Management Page 1 Interest Earnings Summary June 30, 2012 June 30 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 441,687.50 1,346,236.43 Plus Accrued Interest at End of Period 400,242.53 400,242.53 Less Accrued Interest at Beginning of Period ( 677,992.40) ( 345,146.88) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 163,937.63 1,401,332.08 Adjusted by Premiums and Discounts -12,168.05 -128,095.13 Adjusted by Capital Gains or Losses 0.00 5,261.97 Earnings during Periods 151,769.58 1,278,498.92 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) x Interest Earned during Period 0.00 0.00 Adjusted by Premiums and Discounts 0.00 0.00 owe Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected 0.00 107,766.14 Plus Accrued Interest at End of Period 30,258.87 30,258.87 Less Accrued Interest at Beginning of Period ( 21,407.59) ( 53,473.66) Interest Eamed during Period 8,851.28 84,551.35 Total Interest Earned during Period 172,788.91 1,486,883.43 Total Adjustments from Premiums and Discounts -12,168.05 -128,095.13 Total Capital Gains or Losses 0.00 5,261.97 Total Earnings during Period 160,620.86 1,363,060.27 H CCD Portfolio CITY AP F--+ Run Date:07/1212012-1&17 PM(PRP PM6)7.3.0 Report Ver.7.3.3b .P State of California Pooled Money Investment Account Market Valuation 6/30/2012 _'n Cary Cost r�escn�#ian���Arxrue terest P'�tre A ort eci�Go t alu d pte,es_ United States Treasu : Bills $ 18,025,015,961.50 $ 18,035,875,027.58 $ 18,035,714,500.00 NA Notes $ 16,425,839,178.38 $ 16,425,695,679.44 $ 16,471,785,500.00 $ 18,029,444.00 Federal Agency: SBA $ 533,920,670.62 $ 533,920,670.62 $ 534,236,835.82 $ 556,704.58 MBS-REMICs $ 327,565,846.27 $ 327,565,846.27 $ 356,052,805.03 $ 1,561,392.94 Debentures $ 750,600,944.28 $ 750,600,944.28 $ 750,928,000.00 $ 734,165.50 Debentures FR $ - $ _ $ _ $ _ Discount Notes $ 2,296,401,499.92 $ 2,297,700,249.94 $ 2,297,777,000.00 NA GNMA $ 13,135.39 $ 13,135.39 $ 13,251.02 $ 129.87 IBRD Debenture $ 399,931,803.28 $ 399,931,803.28 $ 400,000,000.00 $ 83,332.00 ORD Deb FR $ - $ $ _ $ _ CDs and YCDs FR $ 800,000,000.00 $ 800,000,000.00 $ 800,000,000.00 $ 661,670.55 Bank Notes $ _ $ _ $ _ $ _ CDs and YCDs $ 6,365,071,488.20 $ 6,365,040,029.86 $ 6,364,102,818.42 $ 2,308,841.66 Commercial Paper $ 2,585,384,503.36 $ 2,585,672,778.39 $ 2,585,211,507.23 NA Corporate: Bonds FR $ $ _ $ _ $ _ Bonds $ $ _ $ _ $ Repurchase Agreements $ $ _ $ _ $ Reverse Repurchase $ $ $ _ $ Time Deposits $ 4,483,640,000.00 $ 4,483,640,000.00 $ 4,483,640,000.00 NA AB 55&GF Loans $ 7,508,801,385.90 1 $ 7,508,801,385.90 $ 7,508,801,385.90 NA TOTAL 1 $ 60,502,186,417.10 1 $ 60,514,457,550.95 1 $ 60,588,263,603.42 1 $ 23,935,681.10 Fair Value Including Accrued Interest $ 60,612,199,284.52 Repurchase Agreements,Time Deposits,AB 55&General Fund loans,and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). The value of each participating dollar equals the fair value divided by the amortized cost(1.001219643). As an example:if an agency has an account balance of$20,000,000.00,then the agency would report its participation in the LAW valued at$20,024,392.87 or$20,000,000.00 x1.001219643. Item 1. - 15 HB -64- Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department June 2012 Cash Receipts and Disbursements May 2012 June 2012 Receipts Property Tax Receipts $12,208,482 $3,922,382 Utility Tax Receipts (UUT) 1,638,101 1,613,311 Sales Tax Receipts 1,834,700 2,500,705 1/2 Cent Safety Sales Tax Receipts 138,728 182,488 Highway Users Tax Receipts (HUT) 839,867 474,791 Transient Occupancy Tax Receipts (TOT) 595,033 608,828 Government Funds 46,833 46,947 Capital Funds 592,989 38,253 Debt Service Funds 369,832 - Enterprise Funds 4,931,287 4,732,680 Fiduciary Funds 3,632,873 4,656,287 Special Revenue Funds 2,632,333 2,828,786 All Other Receipts 5,100,996 3,110,370 Total Receipts $34,562,054 $24,715,827 Disbursements Total Disbursements (25,090,782) (23,562,806) Net Change in Cash Flow $9,471,272 $1,153,021 Summary of Cash by Fund May 2012 June 2012 General Fund 81,447,216 77,126,143 Government Funds 1,306,052 1,287,938 Capital Funds 5,977,703 5,968,268 Debt Service Funds 17,982 17,982 Enterprise Funds 90,471,496 90,011,434 Fiduciary Funds 6,551,500 6,682,584 Special Revenue Funds 20,336,724 17,951,782 General Ledger Cash Balances 206,108,673 199,046,131 *Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's.accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Jun 2012.xlsx 7/23/2012 HB -65- Item 1. - 16 ATTACHMENT #2 Pr pr` T S U K I: K N V Em S T M E N 'T REPOMT As i f� of June 2 `11 'em v� 13 i r r l y nen E, Alisa Gutc city Treasurer "Ill� A , g", �n City ®f Hunting-ton Beach M�� W r-r- CD i PORTFOLIO SUMMARY As OF JUNE 30 ) 2012 : $ in millions % of �° Investment Type Market Value Book Value Portfolio Field Federal Agency Issues 137 .4 137 .0 76% 1 .2% , LAIF 30 . 1 30. 1 17% 0 .4% Corporate Notes/Bonds 13 . 1 13 .0 7% 1 .6% Totals $ 180.5 $ 180.1 100 % 1 .1 % j 9 a g r INVESTMENTS BY TYPE AS OF JUNE 30 012 : 9 , E � xy 7 /o o , E 17% Federal Agencies xia#w a, LAI F 'b 5, Corporate Notes CD TO N O CD I PRE',, Sry PORTFOLIO EARNINGS AND PERFORMANCE =1' o Monthly earnings for June, 2012: $160,621 yg 33, i o Monthly effective rate of return : 1 .04% o Fiscal YTD earnings at 6/30/12: $1 ,363,050 o Fiscal YTD effective rate of return : 1 . ° h F o Versus benchmark: 0.32 y r EARNINGS AND PERFORMANCE PORTFOLIO � \ Benchmark: 10 Average of month) LAIF rate and 2- ear g y Y �- constant maturity treasury x LAI F Rate June, 2012: 0.358% 2-year Treasury at 6/29/12: 0.33% � � z3 o y y I� Per Investment Policy Statement CD N N N R„ 10-YEAR U . -b . TREASURY \ o June, 2011 to June 2012: x %. v ;s N rr I' rryy � O v a o As of June 30, 2011 : 3. 18% o As of June 29, 2012: 1 .66°/® z CONCLUSION o Portfolio continues to meet objectives of: Safety p of Principal Maintain Operating Liquidity 1 Market Rate of Return on Investments 170 ' © IN COMPLIANCE / NO LOSSES , t N r3 g W .� 701•4_ 77 .� .....,.7. ,,, .,. 77 ....... .a ........ ., -. ";? "':a�...e^E.�a"';t'_....� fi;� ,r",,, ,..<F.�.,,, .::�EE`•tG3 .c.x.::a Se"tY»'k#>`�:. 3.Eh`;;` .. CO z v W Item 1. - 25 HB -74- ATTAC H M E N T #3 HP Item 1 _ zfi City of Huntington Beach Investment Review Period Ending: June 30, 2012 Prepared by: Alisa Cutchen, City Treasurer 1 1 P a g e Item 1. - 27 xs -76- Economic and Market Overview: Overall, economic and market conditions for the second quarter of 2012 showed a decrease in enthusiasm as compared to first quarter. According to well-known consumer surveys, U.S. consumer confidence data weakened in June, The U.S. also experienced a softer employment market, as compared to slight improvements earlier in the year, which added to dampened consumer spirits at quarter-end. The unemployment rate held steady at 8.2%. Some modest improvements have been seen in the housing sector over the second quarter of 2012, but it remains at a fairly low level. Global equity markets saw some positive gains for June. The Dow Jones Industrial Average (DJIA) closed up 5.3% for the first half of 2012, with the NASDAQ up 12.7% year-to-date. However, results now stand a bit below the 2012 highs established in April. Slowing growth in Japan and the continued European turmoil also contributed to a stall in economic and market improvement. 10-Yr Yields ist P* 331 y 4. R, M� F 2. ll Pig At- ' ;, .... 2007 2008 2009 2Q10 2rM111 2012 The Federal Reserve extended its "Operation Twist" program through the end of 2012, which aims to keep long-term interest rates low. Yields on many Treasury maturities fell to historic lows in June. The 30-year, 10-year, 7-year, and 5-year benchmark maturities hit all-time low yield levels, with the 10-year Treasury yield ending June 2012 at 1.66%, versus 1 .87% at year- _ .__ _.__... _ 2 1 P a g e xB-77- Item 1. 28 end December 2011. Rates of return on investments such as U.S. Treasuries, U.S. Agencies, CDs, money market funds and other savings accounts continue to remain at historical lows. Portfolio Overview: % of YTM Investment Type Market Value Book Value Portfolio 365-day Policy Limit Federal Agency Issues 137,366,250 136,991,622 76% 1.208 None Local Agency Investment Fund (LAIF) 30,081,155 30,081,155 17% 0.358 $60 million Medium Term Notes - Corporate 13,064,855 12,981,715 7% 1.582 20% Totals $180,512,260 $180,054,492 100% 1.093 As of June 30, 2012, the market value of the investment portfolio was $180,512,260, with a book value of $180,054,492. Additionally, there was a balance of approximately $21.7 million at June 30, 2012 in the City's operating bank account for operational availability. Those funds not necessary for current operations will be invested in the near future. The portfolio is invested in only those investments allowable by State regulations and the City's Investment Policy. Such investments are purchased to meet the portfolio objectives of preservation of principal, maintenance of sufficient operating liquidity, and to attain a market rate of return throughout budgetary and economic cycles, in that order of absolute priority. Book Value History $in 000's $200,000 $183,073 $182 964 $181,695 $175,079 $182,076 $1 s0,000 $180,054 $165 144 172,066 $163,65%162,330 158 $150 365 r: u $140,000 $139.093 $120,000 .. . $100,000 \ a $80,000 $60,000 $40,000 $20,000 CJ NN �o �0 3 Page Item 1. - 29 HB -78- Currently, City funds are invested in Federal Agency Securities, Medium Term Corporate Notes and the State of California's Local Agency Investment Fund (LAIF). The four federal government sponsored entities that the City purchases the securities of are Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corporation (FHLMC/Freddie Mac), Federal National Mortgage Association (FNMA/Fannie Mae) and Federal Farm Credit Bank (FFCB/Farm Credit). All corporate notes are "A" rated or its equivalent or better, per the City's Investment Policy. LAIF offers local agencies the opportunity to participate in a major portfolio with immediate liquidity managed by the State Treasurer's Office (please see http://www.treasurer.ca.gov/pmia-laif for more information). In August of 2011, Standard & Poor's rating agency downgraded the U.S. long-term rating one notch to "AA+". They then proceeded to address entities that have direct ties, or enjoy support, from the government. These included the GSEs; Fannie Mae, Freddie Mac, the FHLB system and the FFCB system, all of which were moved to the same long-term ratings as the U.S. government at AA+. S&P also downgraded the ratings of FDIC-backed bonds to AA+. Moody's and Fitch credit rating agencies affirmed their U.S. government and related entities' credit rating of AAA. Such investments are maintained within the City's portfolio, and have been downgraded accordingly. These investments will continue to be reviewed for creditworthiness, but no serious concerns are anticipated at this time. In June of 2012, Moody's downgraded 15 global banks. As of June 30, 2012, the City of Huntington Beach did not hold any bonds of any banks. Portfolio Earnings and Performance: Monthly Earnings $160,621 Interest: $172,789 Adj. Premiums/Discounts $12,168 Capital Gaens $o Monthly Budgeted Interest Income $112,000 Monthly Effective Rate of Return 1.04% Fiscal YTD Earnings $1,363,050 Fiscal YTD Budget $1,008,000 Fiscal YTD Effective Rate of Return 1.09°o Benchmark(1) a32% Bank Cash Balance at 6/30/12 $21,734,522 (1)Benchmark: The average of the monthly LAIF rate and the 12-month rollingaverage 2-year Constant Maturity Treasury(CMT)rate. _1....... _ _.. .. ......... 4 Page xB -79- Item 1. - 30 Monthly investment earnings as of June 30, 2012, were $160,621. The interest portion of the income was $172,789 with capital gains of $0. The monthly effective rate of return of 1.04% decreased slightly from 1.09% for the month of March, 2012. For the fiscal year-to-date as of June 30, 2012, the effective rate of return was 1.09%, down slightly from 1.11% for the previous fiscal quarter. The portfolio yield overall continues to decline as expected, due to the historically low interest rates. Higher yielding bonds that mature or are "called" are causing retired funds to be invested in the current low interest rate environment. Certain securities have "call" options, which means the issuer may return the funds to the buyer at a specified time. It is anticipated that the portfolio yield will remain at these low levels and that it will take some time for portfolio yields to increase, even as interest rates begin to move upward, as existing securities will continue to remain in the portfolio until maturity unless sold. Portfolio Activity: Quarterly Activity: For the quarter ending June 30, 2012, federal agency redemptions totaled $25MM and corporate note redemptions totaled $9MM. Total purchases for the quarter included $40MM in federal agency securities and $2MM in corporate notes. Funds not utilized for operations were invested primarily in federal agency securities, as shown by the 12% increase in federal agency issues in the chart below. Monthly Activity: For the month of June 2012, a total of $30MM of federal agency securities were purchased. $25MM in federal agency securities matured or were called and $8MM of corporate notes matured. The agency securities were called due to the current low interest environment, hence allowing the issuer to re-issue at lower rates. The corporate notes were part of an FDIC-backed program, which concludes during 2012. Hence, all of the City's FDIC- backed bonds will mature over the calendar year 2012. These bonds had yields around 2%; unfortunately, with their expiration, we will see a decrease in the return of the portfolio overall. Quarter-to-Quarter Comparison Book Value 3 31 12 6 30 12 % change Federal Agency Issues $121,997,625 $136,991,622 12% Local Agency Investment Fund (LAIF) $30,057,241 $30,081,155 0% Medium Term Notes - Corporate $20,011,439 $12,981,715 -35.1916 Totals $172,066,305 $180,054,492 4.6% .... ...... 5 Page Item 1. - 31 xB -80- Compliance: The portfolio is in conformity with all State laws and the Investment Policy statement filed with the City Council on December 19, 2011. A copy of this policy is available at the office of the City Clerk. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Additional Information: Retirement Plan Information as of March 31, 2012: (Due to the delay in statement receipt, information is from previous quarter.) City of Huntington Beach -Pension/Trust Plans -Market Value Summary i Deferred Compensation Plan Summary Information as of March 31,2012 Beginning Contributions Distributions/ Earnings Other Fees/ Ending Balance Transfers (change in Adjustments Balance Reporting is Quarterly (1-1-12) - value) (3-31-12) 1ICMARetirement Corporation(457 Plan) $29,918,281 $664,908 ($584,028), $2,197,799 ($2,387) $32,194,573 Nationwide Retirement Solutions(457 Plan) $56,209,521 $1,024,127 W($1,015,496) $3,111,469 ($750) $59,328,871 Total Deferred Compensation Plan Balances $86,127,802 $1,689,035 ($1,599,524) $5,309,268 ($3,137)' $91,523,444 i City of Huntington Beach Retiree Medical Trust Summary Information as of March 31,2012 Beginning Contributions Distributions/ Earnings Other Fees/ Ending Balance Transfers (change in Adjustments Balance •'Reporting isQuarterly (1-1-12) - value) 1 (3-31-12) CalPERS Retiree Medical Trust Account $9,693,301 $0 $0 $875,659 ($3,041) $10,565,919 1 Cityof Huntington Beach ... Supplemental Pension Trust Summary Information as of March 31,2012 i Beginning Interest/ Change in Earnings Other Fees/ Ending Balance Dividends Unrealized (change in Adjustments Balance Reporting is Monthly (3-1-12) Gains/Losses'.. value) i (3-31-12) Supplemental Pension Trust Account $31,866,552` $32,614 $411,885 $26,571 ($4,761), $32,332,861 i 6 1 P a g e xs -81- Item 1. - 32 Bond Reserve Accounts - Balances as of June 30, 2012: Summary of Bond Reserve Investments by Bond Issue As of June 30,2012 Value as of Bond Issue June 30 2012 >; City of Huntington Beach-2004Judgment Obligation Bonds(Property Tax Refunds) 1,159 Huntington Beach PFA-2001Series A(South Beach Improvements&Central Park Sports Complex) 1 1,384 Huntington Beach PFA-2001Series B(1993 Civic Center&Police Administration Bldg. Refinance) 39 Huntington Beach Public Financing Authority Lease Refunding Bonds 2010Series A 1,242,881 Huntington Beach Public Financing Authority Lease Revenue Refunding Bonds 2011Series A 3,084,272 Redevelopment Agency of Huntington Beach-1999 Tax Allocation Refunding Bonds(1/3 of 1992) 754,499 Redevelopment Agency of Huntington Beach-2002Tax Allocation Refunding Bonds(2/3 of 1992) 1,963,098 Huntington Beach Community Facilities District No.1990-1(Goldenwest-Ellis) 172,562 E Huntington Beach Community Facilities District No.2000-1(Grand Coast-Hyatt) 1,246,734 Huntington Beach Community Facilities District No.2002-1(McDonnell Centre Business Park) 497,104 Huntington Beach Community Facilities District No.2003-1(Huntington Center Bella Terra)..__ 2,212,476 11,176,207 7 1 P a g e Item 1. - 33 HB -82- .t7 Council/Agency Meeting Held: ' Deferred/Continued to: pr ed� o diti Hall Ap r v Denied y Jerk' Sign e Council Meeting Date: August 6, 2012 Departmen Number: CT 12-011 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and File the City Treasurer's May 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for May 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable. Recommended Action: Motion to: Receive and File the Monthly Investment Report for May 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique monthly report. Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Maintain long-term financial viability and City's reserves. Improve internal and external communication. Attachment(s): no 1. 1 Monthly Investment Report for May 2012 HB -83- Item 2. - I ATTACHMENT # 1 iOC`�CO�PORAlpO City of Huntington Beach i; , City of H13 200o Main St. - q Portfolio Management Huntington Beach, 9ycF�ouNry cP�\Foe Portfolio Summary May 31, 2012 Par Market Book %of Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv. Federal Agency Issues-Coupon 132,000,000.00 132,419,260.00 131,997,780.74 72.10 1,523 1,334 1.273 1.291 Local Agency Investment Funds 30,081,155.21 30,081,155.21 30,081,155.21 16A3 1 1 0.358 0.363 Medium Term Notes 20,810,000.00 21,075,943.70 20,993,974.05 11.47 1,044 277 1.666 1.689 182,891,155.21 183,576,358.91 183,072,910.00 100.000/9 1,218 994 1.168 1.184 Investments Cash and Accrued Interest Accrued Interest at Purchase 11,562.50 11,562.50 Subtotal 11,562.50 11,562.50 Total Cash and Investments 182,891,155.21 183,587,921.41 183,084,472.50 1,218 994 1.168 1.184 Total Earnings May 31 Month Ending Fiscal Year To Date Fiscal Year Ending x Current Year 160,132.17 1,202,429.41 tz7 Current Budget 112,000.00- 896,000.00 1,344,000.00 Last Year Actual 156,250.00 1,250,000.00 1,875,000.00 t" Average Daily Balance 181,650,062.55 164,668,520.04 Effective Rate of Return 1.040/6 1.090/0 1 certify that this report accurately reflects all City pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on December 19,2011. A copy of this policy.is available at the office of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank vifilrlteractive Data C ration. Ali ut en,CITY TREASURER Reporting period 05/0112012-0=112012 Portfolio CITY CD AP Run Date.,07/122012-14:19 PM(PRF PM1)7.3.0 Report Ver.7.3.3b N CD N City of 1-I13 -p Portfolio Management Page 1 Portfolio Details - Investments May 31, 2012 Average Purchase Slated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Federal Agency Issues-Coupon 3133EAHZ4 3926 Federal Farm Credit Bank 03/20/2012 3,000,000.00 3,021,900.00 3,000,000.00 1.300 AA 1.300 1,753 03/20/2017 3133747F1 3885 Federal Home Loan Bank 06/27/2011 5,000,000.00 5,001,450.00 5,000,000.00 0.700 AA 0.700 483 09/27/2013 313378YC9 3927 Federal Home Loan Bank 04/27/2012 5,000,000.00 5,005,100.00 5,000,000.00 1.000 AA 1.590 1,791 04/27/2017 313378XES 3928 Federal Home Loan Bank 04/27/2012 5,000,000.00 5,005,700.00 5,000,000.00 1.050 AA 1.456 1,791 04/27/2017 3134G2LY6 3892 Federal Home Loan Mort Corp 06/29/2011 5,000,000.00 5,007,150.00 5,000,000.00 2.000 AA 2.000 1,489 06/29/2016 3134G3BL3 3910 Federal Home Loan Mort Corp 12/05/2011 5,000,000.00 5,009,450.00 5,000,000.00 1.000 AA 1.000 917 12/05/2014 3134G3CVO 3911 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,008,450.00 5,000,000.00 1.000 AA 1.000 931 12/19/2014 3134G3DY3 3912 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,009,000.00 5,000,000.00 0.875 AA 0.875 931 12/19/2014 3134G3FGO 3913 Federal Home Loan Mort Corp 12/27/2011 3,000,000.00 3,004,470.00 3,000,000.00 0.650 AA 0.650 756 06/27/2014 3134G3HV5 3919 Federal Home Loan Mort Corp 01/25/2012 5,000,000.00 5,026,150.00 5,000,000.00 1.125 AA 1.490 1,699 01/25/2017 3134G3FC9 3920 Federal Home Loan Mort Corp 01/09/2012 5,000,000.00 5,026,200.00 5,000,000.00 1.000 AA 1.000 1,216 09/30/2015 3134G3GN4 3921 Federal Home Loan Mort Corp 01/18/2012 7,000,000.00 7,039,200.00 7,000,000.00 1.500 AA 1.500 1,692 01/18/2017 3134G3KC3 3922 Federal Horne Loan Mort Corp 01/27/2012 5,000,000.00 5,033,050.00 5,000,000.00 1.000 AA 1.000 1,335 01/27/2016 3134G3LU2 3925 Federal Home Loan Mort Corp 02/14/2012 5,000,000.00 5,036,350.00 5.000,000.00 1.050 AA 1.316 1,719 02/14/2017 31398A31-4 3854 Fed.Nat'l Mort Assoc. 09/17/2010 3,000,000.00 3,029,610.00 3,000,000.00 1.125 AA 1.125 473 09/17/2013 3136FRQJ5 3884 Fed.Nafl Mort Assoc. O6/20/2011 5,000,000.00 5,002,250.00 5,000,000.00 1.170 AA 1.170 749 06/20/2014 3136FRVH3 3889 Fed.Nat'l Mort Assoc, 06/29/2011 5,000,000.00 5,006,100.00 5,000,000.00 1.500 AA 2.229 1,489 06/29/2016 3136FRV59 3894 Fed.Nat'l Mort Assoc. 09/14/2011 8,000,000.00 8,019,680.00 8,000,000.00 1.050 AA 1.516 1,566 09/14/2016 3135GODT7 3904 Fed.NO Mort Assoc. 10/17/2011 5,000,000.00 5,001,750.00 4,998,612.96 0.700 AA 0.712 868 10/17/2014 3135GODT7 3905 Fed.Nafl Mort Assoc. 10/17/2011 3,000,000.00 3,001,050.00 2,999,167.78 0.700 AA 0.712 868 10/17/2014 3136FTFG9 3909 Fed.Nat?Mort Assoc. 10/26/2011 5,000,000.00 5,019,900.00 5,000,000.00 1250 AA 1.722 1,608 10/26/2016 3135GOGN7 3914 Fed.Nat?Mort Assoc. 12/29/2011 5,000,000.00 6,001,400.00 5,000,000.00 0.900 AA 0.900 941 12/29/2014 3136FTWGO 3915 Fed.Nat'l Mort Assoc. 12/28/2011 5,000,000.00 5,015,950.00 5,000,000.00 1.125 AA 1.641 1,671 12/28/2016 3136FTVF3 3916 Fed.Nat l Mort Assoc. 12/28/2011 5,000,000.00 5,017,850.00 5,000,000.00 1.000 AA 1.709 1,671 12/28/2016 3136FTXD6 3917 Fed.Nafl Mort Assoc. 12/28/2011 5,000,000.00 5,013,050.00 5,000,000.00 1.100 AA 1.100 1,305 12/28/2015 3136FTA58 3923 Fed.Nafl Mort Assoc. 01/30/2012 5,000,000.00 5,026,550.00 5,000,000.00 1.300 AA 1.300 1,704 01/30/2017 3136FTK73 3924 Fed.Nat'I Mort Assoc. 02/22/2012 5,000,000.00 5.032,500.00 5,000,000.00 1.375 AA 1.375 1,727 02/22/2017 Subtotal and Average 131,997,7".36 132,000,000.00 132,419,260.00 131,997,780.74 1.291 1,334 Local Agency Investment Funds SYS982 982 Laif City 30,081,155.21 30,081,155.21 30,081,155.21 0.363 0.363 1 SYS2206 2206 LAIF-Redevelopment Agency 0.00 0.00 0.00 0.382 0.382 1 Subtotal and Average 30,081,155.21 30,081,15521 30,081,15521 30,081,15521 0.363 1 Portfolio CITY Run Date:07/12/2012-14:19 AP PM(PRF PM2)7.3.0 Re 7.3.3b City of 1-113 Portfolio Management Page 2 Portfolio Details-Investments May 31,2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Data Par Value Market Value Book Value Rate S&P 365 Maturity Date Medium Term Notes 06050BAJO 3734 Bank of America FDIC Insured 04/30/2009 2,000,000.00 2,002,100.00 2,000,615.16 2.375 AA 1.830 21 06/22/2012 084664ATS 3895 Berkshire Hathaway Fin 08/26/2011 1,310,000.00 1,444,628.70 1,425,690.26 4.850 AA 1.390 958 01/15/2015 14912L4Y4 3930 Caterpillar Financial Corp. 05/30/2012 2,000,000.00 2,008,920.00 2,010,708-28 1.125 A 0.911 927 12/15/2014 36962G4X9 3906 General Electric Capital Corp 09/29/2011 2,000,000.00 2,027,420.00 2,016,575.84 2.100 AA 1.570 585 01/07/2014 36962GZY3 3997 General Electric Capital Corp 09/16/2011 1,500,000.00 1,644,415.00 1,539,218.71 5.450 AA 1.20D 228 01/15/2013 36967HBB2 3805 GE Capital FDIC Insured 11/03/2009 2,000,000.00 2,011,440.00 2,001,766.76 2.000 AA 1.720 119 09/28/2012 36967HAHO 3735 General Electric Cap FDIC Insu 04/30/2009 2,000,000.00 2,000,320.00 2,000,131.61 2.200 AA 1.850 7 06/08/2012 36186CBF9 3763 GMAC FDIC Insured 06/30/2009 2,OOD,000.00 2,021,940.00 1,998,313.27 2.200 AA 2.361 201 12/19/2012 36185JAA7 3804 GMAC FDIC Insured 11/03/2009 2,000,000.00 2,011,960.00 1,999,728.84 1.750 AA 1.784 151 10/30/2012 481247AKO 3738 JP Morgan Chase FDIC Insured 04/30/2009 2,000,000.00 2,001,100.00 2,000,323.80 2.200 AA 1.770 14 06/15/2012 49328CAA3 3770 Key Bank FDIC Insured 06/30/2009 2,000,000.00 2,001,700.00 2,000,901.52 3.200 AA 2.000 14 06/15/2012 Subtotal and Average 19,571,162.98 20,810,000.00 21,075,90.70 20,993,974.05 1.689 277 Total and Average 181,660,062.66 182,891,155.21 183,676,368.91 193,072,910.00 1.184 994 W �I ear Portfolio CITY CD AP Run Date:07/12/2012-14:19 PM(PRF PM2)7.3.0 N .I City of HB Portfolio Management Page 3 Portfolio Details-Cash May 31, 2012 Average Purchase Stated YTM Days to CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 366 Maturity Average Balance 0.00 Accrued Interest at Purchase 11,662.60 11,662.60 0 Subtotal 11,662.60 11,662.60 Total Cash and Investments 181,660,06256 182,891,166.21 183,667,921A1 183,084,472S0 1.184 994 x i DD DD Portfolio CITY Run Date:07/12/2012-14:18 AP PM(PRF PM2)7.3.0 City of IiB Portfolio Management Page 1 Activity By Type g May 1, 2012 through May 31, 2012 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues-Coupon Subtotal 131,997,780.74 Local Agency Investment Funds (Monthly Summary) Subtotal 30,081,166.21 Medium Tenn Notes 14912L4Y4 3930 Caterpillar Financial Corp. 1.125 06/30/2012 2,010,720.00 0.00 91160HAC1 3743 US Bank FDIC Insured 1.800 05/15/2012 0.00 1,000,000.00 Subtotal 2,010,720.00 1,000,000.00 20,993,974.06 Total 2,010,720.00 1,000,000.00 183,072,910.00 00 �Q F--I e—P �p Portfolio CITY AP N Run Date:07/1212012-14:19 PM(PRF PM3)7.3.0 Report Ver.7.3.3b J r+ N City of HB Portfolio Management Page 1 Activity Summary May 2011 through May 2012 Yield to Maturity Managed Number Number Month Number of Average 360 365 Pool of Investments of Investments Average Average End Year Securities Balance Equivalent Equivalent Rate Purchased Redeemed Term Days to Maturity May 2011 46 157,665,657.64 1.242 1.259 0.413 4 2 869 679 June 2011 45 166,927,847.24 1.278 1.296 0.448 9 10 901 745 July 2011 43 183,784,185.57 1.269 1286 0.381 3 5 940 784 August 2011 39 169,814,312.73 1.263 1.281 0.408 1 5 936 761 September 2011 37 152,819,771.51 1.189 1205 0.378 6 8 932 776 October 2011 36 155,770,159.22 1.239 1.256 0.385 3 2 1,049 167 November 2011 34 148,389,001.57 1265 1283 0.401 0 2 1,075 156 December 2011 37 147,666,119.75 1.154 1.170 0.382 8 5 1,067 888 January 2012 40 161,736,755.70 1.143 1.159 0.385 5 2 1,138 963 February 2012 42 174,741,686.41 1.197 1.214 0.389 2 0 1,242 1,043 March 2012 38 174,394,254.80 1.158 1.174 0.383 1 5 1,186 993 April 2012 40 173,406,734.12 1.174 1.191 0.367 2 0 1,221 1,015 May 2012 40 181,650,062.55 1.168 1.184 0.363 1 1 1,218 994 Average 40 166,291,627.17 1.211% 1.228% 0.391 3 4 1,060 766 �O O Portfolio CITY AP Run Date:07l12/2012-14:19 PM(PRF PM4)7.3.0 Report Ver.7.3.3b City of FIB Portfolio Management Page 1 Distribution of Investments By Type May 2011 through May 2012 May June July August September October November December January February March April May Average Security Type 2011 2011 2011 2011 2011 2011 2011 2011 2012 2012 2012 2012 2012 by Period Repurchase Agreements Certificates of Deposit Commercial Paper-Interest Bearing Federal.Agency Issues-Coupon 49.7 54.6 57.7 56.2 54.8 61.9 61.1 65.8 69.1 74.8 70.9 72.5 72.1 63.2% Local Agency Investment Funds 36.3 32.8 30.7 30.1 30.3 22.1 21.6 19.0 17.2 11.5 17.5 16.5 16.4 23.2% Treasury Securities-Coupon Medium Term Notes 14.0 12.6 11.6 13.8 14.9 16.0 17.3 15.2 13.7 13.7 11.6 11.0 11.5 13.6% Negotiable CD's Certificates of Deposit-Bank Mortgage Backed Securities Bankers Acceptances-Amortizing Commercial Paper Disc.-Amortizing Federal Agency Disc.-Amortizing Treasury Discounts-Amortizing Miscellaneous Discounts-Amortizing Money Market Acct Rolling Repurchase Agreements r~i Portfolio CITY AP Run Date:0711212012-14.19 PM(PRF_PM5)7.3.0 N Report Ver.7.3.3b CD N City of 1-103 Portfolio Management Page 1 Interest Earnings Summary May 31, 2012 May 31 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 9,000.00 904,548.93 Plus Accrued Interest at End of Period 677,992.40 677,992.40 Less Accrued Interest at Beginning of Period ( 522,143.70) ( 345,146.88) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 164,848.70 1,237,394.45 Adjusted by Premiums and Discounts -13,990.59 A 15,927.08 Adjusted by Capital Gains or Losses 0.00 5,261.97 Earnings during Periods 150,858.11 1,126,729.34 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) x Interest Earned during Period 0.00 0.00 Adjusted by Premiums and Discounts 0.00 0.00 N Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected 0.00 107,766.14 Pius Accrued Interest at End of Period 21,407.59 21,407.59 Less Accrued Interest at Beginning of Period ( 12,133.53) ( 53,473.66) Interest Earned during Period 9,274.06 75,700.07 Total Interest Earned during Period 174,122.76 1,313,094.62 Total Adjustments from Premiums and Discounts -13,990.69 -116,927.08 Total Capital Gains or Losses 0.00 6,261.97 Total Earnings during Period 160,132.17 1,202,429.41 Portfolio CITY AP Run Date:07/12/2012-14:19 PM(PRF_PM6)7.3.0 Report Ver.7.3.3b State of California Pooled Money Investment Account Market Valuation 5/31/2012 MCI 1""Winn United States Treasury: Bills $ 17,023,917,280.94 $ 17,038,454,000.00 NA Notes $ 13,977,570,543.76 $ 14,036,500,000.00 $ 17,752,543.00 Federal Agency: SBA $ 537,643,786.27 $ 537,920,691.88 $ 561,057.27 MBS-REMICs $ 341,326,441.71 $ 372,036,649.27 $ 1,627,671.62 Debentures $ 750,600,944.28 $ 751,188,000.00 $ 1,121,668.50 Debentures FR $ - $ - $ - Discount Notes $ 4,791,501,388.76 $ 4,799,289,000.00 NA GNMA $ 14,465.84 $ 14,592.59 $ 142.97 IBRD Debenture $ 399,931,803.28 $ 400,000,000.00 $ 922,224.00 IBRD Deb FR $ - $ - $ - CDs and YCDs FR $ 800,000,000.00 $ 800,000,000.00 $ 222,437.22 Bank Notes $ - $ - $ - CDsandYCDs $ 9,050,184,110.57 $ 9,049,348,212.86 $ 9,721,840.23 Commercial Paper $ 3,099,244,569.37 $ 3,099,221,874.99 NA Corporate: Bonds FR $ - $ - $ - Bonds $ - $ - $ - Repurchase Agreements $ - $ - $ - Reverse Repurchase $ - $ - $ Time Deposits $ 4,355,640,000.00 $ 4,355,640,000.00 NA AB 55&GF Loans $ 9,055,458,171.26 $ 9,055,458,171.26 NA TOTAL $ 64,183,033,506.04 $ 64,295,071,192.85 $ 31,929,584.81 Fair Value Including Accrued Interest $ 64,327,000,777.66 Repurchase Agreements,Time Deposits,AB 55&General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). HB -93- Item 2. - 11 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department June 2012 Cash Receipts and Disbursements May 2012 June 2012 Receipts Property Tax Receipts $12,208,482 $3,922,382 Utility Tax Receipts (UUT) 1,638,101 1,613,311 Sales Tax Receipts 1,834,700 2,500,705 1/2 Cent Safety Sales Tax Receipts 138,728 182,488 Highway Users Tax Receipts (HUT) 839,867 474,791 Transient Occupancy Tax Receipts (TOT) 595,033 608,828 Government Funds 46,833 46,947 Capital Funds 592,989 38,253 Debt Service Funds 369,832 - Enterprise Funds 4,931,287 4,732,680 Fiduciary Funds 3,632,873 4,656,287 Special Revenue Funds 2,632,333 2,828,786 All Other Receipts 5.100,996 3,110,370 Total Receipts $34,562,054 $24,715,827 Disbursements Total Disbursements (25,090,782) (23,562,806) Net Change in Cash Flow $9,471,272 $1,153,021 Summary of Cash by Fund May 2012 June 2012 General Fund 81,447,216 77,126,143 Government Funds 1,306,052 1,287,938 Capital Funds 5,977,703 5,968,268 Debt Service Funds 17,982 17,982 Enterprise Funds 90,471,496 90,011,434 Fiduciary Funds 6,551,500 6,682,584 Special Revenue Funds 20,336,724 17,951,782 General Ledger Cash Balances 206,108,673 199,046,131 *Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Jun 2012.xisx 7/23/2012 Item 2. - 12 xB -94- Council/Agency Meeting Held: Deferred/Continued to: L`(ef� Ap rovEe�d ❑ Conditionally Approved ❑ Denied ity Clerk's Signa e Council Meeting Date: June 18, 2012 Department ID Number: CT 12-010 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and File the City Treasurer's April 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for April 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable. Recommended Action: Motion to: Receive and File the Monthly Investment Report for April 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach Alternative Action(s): Deny or critique monthly report Analysis: Not Applicable Environmental Status: Not Applicable Strategic Plan Goal: Maintain long-term financial viability and city's reserves. Improve internal and external communication. Attachment(s): 1. Monthly Investment Report for April 2012 Item 3. - 1 HB -28- ATTACHMENT # 1 CD RA OTC OIIPOT,eG City of Huntington Beach City Of HB 2000 Main St. w 9 = Portfolio Management Huntington Beach, 92�F�":"°;;:•`���oQ Portfolio Sua! mary RUNTY CP April 30, 2012 Investments Par Market Book %of Days to YTM YTM Value Value Value Portfolio Term Maturity 360 Equiv. 366 Equiv. Federal Agency Issues-Coupon 132,000,000.00 132,472,340.00 131,997,702.96 72.50 1,523 1,365 1.273 1.291 Local Agency Investment Funds 30,081,155.21 30,081,156.21 30,081,155.21 16.62 1 1 0.362 0.367 Medium Term Notes 19,810,000.00 20,116,309.60 19,997,322.42 10.98 1,068 228 1.741 1.766 Investments 181,891,155.21 182,669,804.81 182,076,180.59 100.00% 1,221 1,015 1.174 1.191 Cash and Accrued Interest Accrued Interest at Purchase 1,250.00 1,250.00 Subtotal 1,250.00 1,250.00 Total Cash and Investments 181,891,155.21 182,671,054.81 182,077,430.59 1,221 1,015 1.174 1.191 Total Earnings April 30 Month Ending Fiscal Year To Date Fiscal Year Ending x Current Year 153,215.19 1,042,297.24 Current Budget 112,000.00 784,000.00 1,344,000.00 W Last Year Actual 156,250.00 1,093,750.00 1,875,000.00 Average Daily Balance 173,406,734.12 162,197,027.94 Effective Rate of Return 1.07% 1.10% I certify that this report accurately reflects all City and Redevelopment Agency pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on December 19,2011. A copy of this policy is available at the office of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided Union Bank via Interactive Data Corporation. Alisa Cutchen,CITY TREASURER Reporting period 04/0V2012-04/30/2012 Portfolio CITY AP Run Date:0529/2012-09:01 PM(PRF_PM1)7.3.0 Report Ver.7.3.3b City of H13 Portfolio Management Page 1 Portfolio Details -Investments April 30, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 366 Maturity Date Federal Agency Issues-Coupon 3133EAHZ4 3926 Federal Farm Credit Bank 03/20/2012 3,000,000.00 3,019,560.00 3,000,000.00 1.300 AA 1.300 1,784 03/20/2017 3133747F1 3885 Federal Home Loan Bank 06/27/2011 5,000,000.00 5,002,950.00 5,000,000.00 0.700 AA 0.700 514 09/27/2013 313378YC9 3927 Federal Home Loan Bank 04/27/2012 5,000,000.00 5,007,000.00 5,000,000.00 1.000 AA 1.590 1,822 04/27/2017 313378XE6 3928 Federal Home Loan Bank 04/27/2012 5,000,000.00 5,007,100.00 5,000,000.00 1.050 AA 1.456 1,822 04/27/2017 3134G2LY6 3892 Federal Home Loan Mort Corp 06/29/2011 5,000,000.00 5,015,500.00 5,000,000.00 2.000 AA 2.000 1,520 06/29/2016 3134G3BL3 3910 Federal Home Loan Mort Corp 12/05/2011 5,000,000.00 5,010,850.00 5,000,000.00 1.000 AA 1.000 948 12/05/2014 3134G3CVO 3911 Federal Home Loan Mort Corp 12/19/2011 6,000,000.00 5,009,800.00 5,000,000.00 1.000 AA 1.000 962 12M 9/2014 3134G3DY3 3912 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,010,400.00 5,000,000.00 0.875 AA 0.875 962 12/19/2014 3134G3FGO 3913 Federal Home Loan Mort Corp 12/27/2011 31000,000.00 3,004,380.00 3,000,000.00 0.650 AA 0.650 787 06/27/2014 3134G3HV5 3919 Federal Home Loan Mort Corp 01/25/2012 6,000,000.00 5,028,700.00 5,000,000.00 1.125 AA 1.490 1,730 01/25/2017 3134G3FC9 3920 Federal Home Loan Mort Corp 01/09/2012 5,000,000.00 5,032,050.00 5,000,000.00 1.000 AA 1.000 1,247 09/30/2015 3134G3GN4 3921 Federal Home Loan Mort Corp 01/18/2012 7,000,000.00 7,042,980.00 7,000,000.00 1.500 AA 1.500 1,723 01/18/2017 3134G3KC3 3922 Federal Home Loan Mort Corp 01/27/2012 5,000,000.00 5,036,600.00 5,000,000.00 1.000 AA 1.000 1,366 01/27/2016 3134G3LU2 3925 Federal Home Loan Mort Corp 02/14/2012 5,000,000.00 5,041,350.00 5,000,000.00 1.060 AA 1.316 1,750 02/14/2017 31398AX4 3854 Fed.Nat'l Mort Assoc. 09/17/2010 3,000,000.00 3,031,170.00 3,000,000.00 1.125 AA 1.125 504 09/17/2013 3136FRQJ5 3884 Fed.Nat'l Mort Assoc. 06/20/2011 6,000,000.00 5,005,650.00 5,000,000.00 1.170 AA 1.170 780 06/20/2014 3136FRVH3 3889 Fed.Nat'l Mort Assoc. 06/29/2011 5,000,000.00 5,011,200.00 5,000,000.00 1.500 AA 2.229 1,520 06/29/2016 x 3136FRV59 3894 Fed.Nafl Mort Assoc. 09/14/2011 81000,000.00 8,023,360.00 8,000,000.00 1.060 AA 1.516 1,597 09/14/2016 CS1 3135GODT7 3904 Fed.Nat'l Mort Assoc. 10/17/2011 61000,000.00 5,002,150.00 4,998,564.35 0.700 AA 0.712 899 10/17/2014 W 3135GODT7 3905 Fed.Nat'l Mort Assoc. 10/17/2011 3,000,000.00 3,001,290.00 2,999,138.61 0.700 AA 0.712 899 10/17/2014 3136FTFG9 3909 Fed.Nat'l Mort Assoc. 10/26/2011 6,000,000.00 5,023,450.00 5,000,000.00 1.260 AA 1.722 1,639 10/26/2016 3135GOGN7 3914 Fed.Nat'l Mort Assoc, 12/29/2011 5,000,000.00 5,003,050.00 5,000,000.00 0.900 AA 0.900 972 12/29/2014 3136FTWGO 3915 Fed.Nat'l Mort Assoc 12/28/2011 5,000,000.00 5,014,800.00 5,000,000.00 1.125 AA 1.641 1,702 12/28/2016 3136FTVF3 3916 Fed.Nat'l Mort Assoc, 12/28/2011 5,000,000.00 5,018,400.00 5,000,000.00 1.000 AA 1.709 1,702 12/28/2016 3136FTXD6 3917 Fed.Nat?Mark Assoc. 12/28/2011 5,000,000.00 5,015,400.00 5,000,000.00 1.100 AA 1.100 1,336 12/28/2015 3136FTA58 3923 Fed.Nat'l Mort Assoc. 01/30/2012 51000,000.00 5,022,200.00 5,000,000.00 1.300 AA 1.300 1,735 01/30/2017 3136FTK73 3924 Fed.Nat'l Mort Assoc. 02/22/2012 5,000,000.00 5,031,000.00 5,000,000.00 1.375 AA 1.375 1,758 02/22/2017 Subtotal and Average 123,330,998.70 132,000,000.00 132,472,340.00 131,997,702.96 1.291 1,366 Local Agency Investment Funds SYS982 982 Lail City 30,081,155.21 30,081,155.21 30,081,155.21 0.367 0.367 1 SYS2206 2206 LAIF-Redevelopment Agency 0.00 0.00 0.00 0.382 0.382 1 Subtotal and Average 30,071,589.77 30,081 pl 55.21 30,081,155.21 30,081,166.21 0.367 1 I� Portfolio CITY fD AP Run Date:05/29/2012-09:01 PM(PRF PM2)7.3.0 W • Report Ver.7.3.3b .P I—� fD City of l-IB Portfolio Management Page 2 Portfolio Details-Investments April 30, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Medium Term Notes 06050BAJO 3734 Bank of America FDIC Insured 04/30/2009 2,000,000.00 2,006,000.00 2,001,493.96 2.375 AA 1.830 52 06/22/2012 084664AT8 3895 Berkshire Hathaway Fin 08/26/2011 1,310,000.00 1,450,379.60 1,429,366.86 4.850 AA 1.390 989 01/15/2015 36962G4X9 3906 General Electric Capital Corp 09/29/2011 2,000,000.00 2,036,100.00 2,017,439.17 2.100 AA 1.570 616 01/07/2014 36962GZY3 3997 General Electric Capital Corp 09/16/2011 1,600,000.00 1,661,460.00 1,544,471.21 5.450 AA 1.200 259 01/15/2013 369671-1882 3805 GE Capital FDIC Insured 11/03/2009 2,000,000.00 2,014,700.00 2,002,219.77 2.000 AA 1.720 150 09/28/2012 36967HAHO 3735 General Electric Cap FDIC Insu 04/30/2009 2,000,000.00 2,004,240.00 2,000,695.65 2.200 AA 1.850 38 06/08/2012 36186CBF9 3763 GMAC FDIC Insured 06/30/2009 2,000,000.00 2,025,120.00 1,998,067.71 2.200 AA 2.361 232 12/19/2012 36185JAA7 3804 GMAC FDIC Insured 11/03/2009 2,000,000.00 2,015,740.00 1,999,674.24 1.750 AA 1.784 182 10/30/2012 481247AKO 3738 JP Morgan Chase FDIC Insured 04/30/2009 2,000,000.00 2,004,800.00 2,001,017.67 2.200 AA 1.770 45 06/16/2012 49328CAA3 3770 Key Bank FDIC Insured 06/30/2009 2,000,000.00 2,007,200.00 2,002,833.35 3.200 AA 2.000 45 06/15/2012 91160HAC1 3743 US Bank FDIC Insured 05/19/2009 1,000,000.00 1,000,580.00 1,000,052.83 1.800 AA 1.660 14 05/15/2012 Subtotal and Average 20,004,146.64 19,810,000.00 20,116,309.60 19,997,322.42 1.766 228 Total and Average 173,406,734.12 181,891,156.21 182,669,804.81 182,076,180.69 1.191 1,016 W N Portfolio CITY Run Date:05/29/2012-09:01 AP PM(PRF PM2)7.3.0 City of FHB Portfolio Management Page 1 Activity By Type g April 1, 2012 through April 30, 2012 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues-Coupon 313378YC9 3927 Federal Home Loan Bank 1.000 04/27/2012 5,000,000.00 0.00 313378XE6 3928 Federal Home Loan Bank 1.050 04/27/2012 5,000,000.00 0.00 Subtotal 10,000,000.00 0.00 131,997,702.96 Local Agency Investment Funds (Monthly Summary) SYS982 982 Laif City 0.367 23,914.48 0.00 SYS2206 2206 LAIF-Redevelopment Agency 0.382 0.62 0.62 Subtotal 23,915.10 0.62 30,081,155.21 Medium Term Notes Subtotal 19,997,322A2 Total 10,023,915.10 0.62 182,076,180.59 W W e—P CD Portfolio CITY AP w Run Date:0529/2012-09:01 PM(PRF PM3)7.3.0 Report Ver.7.3.3b CD City of HB Portfolio Management Page 1 Activity Summary April 2O11 through April 2012 Yield to Maturity Managed Number Number Month Number of Average 360 365 Pool of investments of Investments Average Average End Year Securities Balance Equivalent Equivalent Rate Purchased Redeemed Term Days to Maturity April 2011 44 157,507,665.91 1.292 1.309 0.588 0 3 845 647 May 2011 46 157,665,657.64 1.242 1.259 0.413 4 2 869 679 June 2011 45 166,927,847.24 1.278 1.296 0.448 9 10 901 745 July 2011 43 183,784,185.57 1.269 1.286 0.381 3 5 940 784 August 2011 39 169,814,312.73 1.263 1.281 0.408 1 5 936 761 September 2011 37 152,819,771.51 1.189 1.205 0.378 6 8 932 776 October 2011 36 155,770,159.22 1.239 1.256 0.385 3 2 1,049 167 November 2011 34 148,389,001.57 1.265 1.283 0.401 0 2 1,075 156 December 2011 37 147,666,119.75 1.154 1.170 0.382 8 5 1,067 888 January 2012 40 161,736,755.70 1.143 1.159 0.385 5 2 1,138 963 February 2012 42 174,741,686.41 1.197 1.214 0.389 2 0 1,242 1,043 March 2012 38 174,394,254.80 1.158 1.174 0.383 1 5 1,186 993 April 2012 40 173,406,734.12 1.174 1.191 0.367 2 0 1,221 1,015 Average 40 163,421,248.29 1.220% 1.237% 0.408 3 4 1,031 740 t� -P Portfolio CITY AP Run Date:05/29/2012-09:01 PM(PRF PM4)7.3.0 Report Ver.7.3.3b City of H13 Portfolio Management Page 1 Interest Earnings Summary April 30, 2012 April 30 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 76,750.00 895,548.93 Plus Accrued Interest at End of Period 522,143.70 522,143.70 Less Accrued Interest at Beginning of Period ( 440,710.18) ( 345,146.88) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 158,183.52 1,072,545.75 Adjusted by Premiums and Discounts -14,039.24 -101,936.49 Adjusted by Capital Gains or Losses 0.00 5,261.97 Earnings during Periods 144,144.28 975,871.23 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) x Interest Earned during Period 0.00 0.00 Adjusted by Premiums and Discounts 0.00 0.00 W Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected 23,915.10 107,766.14 Plus Accrued Interest at End of Period 12,133.53 12,133.53 Less Accrued Interest at Beginning of Period ( 26,977.72) ( 53,473.66) Interest Earned during Period 9,070.91 66,426.01 Total Interest Earned during Period 167,254.43 1,138,971.76 Total Adjustments from Premiums and Discounts -14,039.24 -101,936A9 Total Capital Gains or Losses 0.00 5,261.97 Total Earnings during Period 153,215.19 1,042,297.24 H Portfolio CITY CD AP Run Date:05129/2012.09:01 PM(PRF PM6)7.3.0 Report Ver.7.3.3b 00 CD w City of 1-113 Portfolio Management Page 1 Distribution of Investments By Type April 2011 through April 2O12 April May June July August September October November December January February March April Average Security Type 2011 2011 2011 2011 2011 2011 2011 2011 2011 2012 2012 2012 2012 by Period Repurchase Agreements Certificates of Deposit Commercial Paper-Interest Bearing Federal Agency Issues-Coupon 45.7 49.7 54.6 57.7 56.2 54.8 61.9 61.1 65.8 69.1 74.8 70.9 72.5 61.1% Local Agency Investment Funds 38.1 36.3 32.8 30.7 30.1 30.3 22.1 21.6 19.0 17.2 11.5 17.5 16.5 24.9% Treasury Securities-Coupon Medium Term Notes 16.1 14.0 12.6 11.6 13.8 14.9 16.0 17.3 15.2 13.7 13.7 11.6 11.0 14.0% Negotiable CD's Certificates of Deposit-Bank Mortgage Backed Securities Bankers Acceptances Amortizing Commercial Paper Disc.-Amortizing Federal Agency Disc.-Amortizing Treasury Discounts-Amortizing Miscellaneous Discounts-Amortizing Money Market Acct Rolling Repurchase Agreements W Portfolio CITY AP Run Date:05)M012-09.01 PM(PRF PM5)7.3.0 Report Ver.7.3.3b State of California Pooled Money Investment Account Market Valuation 4/30/2012 United States Treasury: Bills $ 18,122,178,399.08 $ 18,136,389,500.00 NA Notes $ 14,978,570,924.96 $ 15,038,913,500.00 $ 15,676,344.00 Federal Agency: SBA $ 541,493,475.27 $ 541,825,842.84 $ 565,444.90 MBS-REMICs $ 353,439,674.10 $ 387,908,058.10 $ 1,684,562.98 Debentures $ 750,601,777.62 $ 751,110,500.00 $ 1,034,166.00 Debentures FR $ - $ - $ - Discount Notes $ 4,791,501,388.76 $ 4,798,897,000.00 NA GNMA $ 21,707.39 $ 21,878.63 $ 212.72 IBRD Debenture $ 399,931,803.28 $ 400,000,000.00 $ 755,556.00 IBRD Deb FR $ - $ - $ - CDs and YCDs FR $ 400,000,000.00 $ 400,000,000.00 $ 529,746.67 Bank Notes $ - $ - $ - CDs and YCDs $ 11,075,012,247.86 $ 11,073,859,218.28 $ 8,539,236.11 Commercial Paper $ 2,449,335,763.86 $ 2,448,828,500.00 NA Corporate: Bonds FR $ - $ - $ - Bonds $ - $ - $ - Repurchase Agreements $ - $ - $ Reverse Repurchase $ - $ - $ - Time Deposits $ 4,320,640,000.00 $ 4,320,640,000.00 NA AB 55 &GF Loans $ 10,613,136,171.26 $ 10,613,136,171.26 NA TOTAL $ 68,795,863,333.44 $ 68,911,530,169.11 $ 28,785,269.38 Fair Value Including Accrued Interest $ 68,940,315,438.49 Repurchase Agreements,Time Deposits,AB 55 &General Fund loans,and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). HB -37- Item 3. - 10 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department April 2012 Cash Receipts and Disbursements March 2012 April 2012 Receipts Property Tax Receipts $2,287,604 $17,103,316 Utility Tax Receipts (UUT) . 1,758,537 1,726,064 Sales Tax Receipts 1,722,522, 1,376,000 1/2 Cent Safety Sales Tax Receipts 202,235 133,709 Highway Users Tax Receipts (HUT) 1,200,966 - Transient Occupancy Tax Receipts (TOT) 541,105 559,433 Government Funds 147,598 64,112 Capital Funds 354,740 474,201 Debt Service Funds 2,284,548 2,851,343 Enterprise Funds 4,770,116 5,559,682 Fiduciary Funds 681,831 741,880 Special Revenue Funds 2,958,814 1,131,057 All Other Receipts 2,844,823 4,622,635 Total Receipts $21,755,439 $36,343,433 Disbursements Total Disbursements (28,913,267) (20,105,741) Net Change in Cash Flow ($7,157,827) $16,237,692 Summary of Cash by Fund March 2012 April 2012 General Fund 62,754,265 74,938,448 Government Funds 953,827 975,904 Capital Funds 4,533,360 8,019,322 Debt Service Funds 1,536,811 2,710,813 Enterprise Funds 86,719,719 90,505,514 Fiduciary Funds 1,454,860 4,292,506 Internal Service Fund 1,288,714. - Special Revenue Funds 21,622,486 15,412,479 General Ledger Cash Balances 180,864,042 196,854,985 Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Apri12012.x1sx j1 6/4/2012 Item 3. - 11 HB -38- Council/Agency Meeting Held: Deferred/Continued to: )k.Appr ve ❑ Conditionally Approved ❑ Denied Clerl s Sig tune Council Meeting Date: May 7, 2012 Department ID Number: CT 12-009 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and File the City Treasurer's March 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for March 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach Financial Impact: Not Applicable. Recommended Action: Motion to: Receive and File the Monthly Investment Report for March 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique monthly report. Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Enhance economic development. Improve long-term financial sustainability. Attachment(s): 1. Monthly Investment Report and Summary of Investments for March 2012 2. PowerPoint Presentation Investment Report March 2012 xB -1 7- Item 1. - I ATTACHMENT # 1 ,rem 1 _ s Hd ,S City of Huntington Beach Investment Review Period Ending: March 31, 2012 Prepared by: Asa Cutchen, City Treasurer Book value by Investment Type 12% ❑ Federal Agency Issues - Coupon 0 Local Agency Investment ( Funds N Medium Term Notes l r` 71% 1 Page HB -1 9- Item 1. - 3 Economic and Market Overview: Economic growth in the United States, led by continued modest increases in consumer spending, capital expenditures, and investment spending, accelerated during the fourth quarter of 2011, reaching an estimated 3%. The overall CPI (consumer confidence index) rose 0.3% for the month of March, after rising 0.4% for the month of February. Retail sales in the U.S. rose more than forecast in March (+0.8% vs. +0.3% expected). Slower growth in March payrolls have set off new worries about recovery, but other data suggest growth in the first quarter is beating estimates with GDP on a 2'/z% to 3% track. The unemployment rate fell to 8.2%. However, Federal Reserve Chairman, Bernanke mentioned that a portion of this decrease was due to employment-seekers merely giving up their search. Overall it is anticipated that the job market will continue to improve slowly throughout 2012. U.S. inflation has remained moderate for the first quarter of 2012, with the equity markets showing strength. The S&P500 had its strongest first quarter since 1998. Much of the strength in the equity markets was seen in the financial and technology sectors, with Apple's release of the iPhone 4S and the updated iPad providing consumer and investor enthusiasm. Treasury yields have increased slightly over the first quarter of 2012. It is anticipated that U.S. economic growth is likely to remain in the 1-4% range for 2012, while Europe will most likely continue to struggle. Portfolio Overview: %of YTM Investment Type Market Value Book Value Portfolio 365-day Policy Limit Federal Agency Issues 122,158,510 121,997,625 71% 1.272 None Local Agency Investment Fund(LAIF) 30,057,241 30,057,241 17% 0.383 $60 million Medium Term Notes-Corporate 20,151,912 20,011,439 12% 1.765 20% Totals $172,367,663 $172,066,305 100'0 1.174 As of March 31, 2012, the market value of the investment portfolio was $172,367,663, with a book value of $172,066,305. Additionally, there was a balance of approximately $8.8 million in the City's operating bank account for operational availability. Those funds not necessary for current operations will be invested in the near future. The portfolio is invested in only those investments allowable by State regulations and the City's Investment Policy. Such investments are purchased to meet the portfolio objectives of preservation of principal, maintenance of sufficient operating liquidity, and to attain a market rate of return throughout budgetary and economic cycles, in that order of absolute priority. 2 1 P a g e Item 1. - 4 HB -20- Book Value History in Millions $200 $183 $182$180 $175 $175 $172 - — 64 $ $165 $164 $1 $158 157 $155 2 $150 $160 $139 A $140 15 $120 $100 $80 Rf $60 Z $40 A $20 JIE$0 ,A 06 e PNN P"' PNN PNN PNN .PNN 1P NN(bp IPN�l 10", 4`1 Currently, City funds are invested in Federal Agency Securities, Medium Term Corporate Notes and the State of California's Local Agency Investment Fund (LAIF). In August of 2011, Standard & Poor's rating agency downgraded the U.S. long-term rating one notch to "AA+". They then proceeded to address entities that have direct ties, or enjoy support, from the government. These included the GSEs; Fannie Mae, Freddie Mac, the FHLB system and the FFCB system, all of which were moved to the same long- term ratings as the U.S. government at AA+. S&P also downgraded the ratings of FDIC-backed bonds to AA+. Moody's and Fitch credit rating agencies affirmed their U.S. government and related entities' credit rating of AAA. Such investments are maintained within the City's portfolio, and have been downgraded accordingly. These investments will continue to be reviewed for creditworthiness, but no serious concerns are anticipated at this time. The four federal government sponsored entities that the City purchases the securities of are Federal Home Loan Bank (FHLB), Federal Home Loan Mortgage Corporation (FHLMC/Freddie Mac), Federal National Mortgage Association (FNMA/Fannie Mae) and Federal Farm Credit Bank (FFCB/Farm Credit). All corporate notes are "A" rated or its equivalent or better, per the City's Investment Policy. LAIF offers local agencies the opportunity to participate in a major portfolio with immediate liquidity managed by the State Treasurer's Office (please see http://www.treasurer.ca.gov/pmia-laif for more information). 3 1 P a g e HB -21- Item 1. - 5 Portfolio Earnings and Performance: Monthly Earnings $161,664 List: $ A, Monthly Budgeted Interest Income $112 000 Monthly Effective Rate of Return 1.0910 Fiscal YTD Earnings $889,631 Fiscal YTD Budget $672,000 Fiscal YTD Effective Rate of Return 1.11% Benchmark(1) 0.37°0 Bank Cash Balance $8,808,514 (1)Benchmark: The average of the monthly LAIF rate and the 12-month rolIingaverage 2-year Constant Maturity Treasury(CMT)rate. Monthly investment earnings as of March 31, 2012, were $161,664. The interest portion of the income was $174,512, with capital gains of $1,350, The monthly effective rate of return of 1.09% decreased slightly from the previous month. For the fiscal year-to-date as of March 31, 2012, the effective rate of return was 1.11%, down slightly from 1.13% for the previous fiscal quarter. The portfolio yield overall continues to decline as expected, due to the historically low interest rates. Higher yielding bonds that mature or are "called" are causing retired funds to be invested in the current low interest rate environment. Certain securities have "call' options, which means the issuer may return the funds to the buyer at a specified time. It is anticipated that the portfolio yield will remain at these low levels and that it will take some time for portfolio yields to increase, even as interest rates begin to move upward, as existing securities will continue to remain in the portfolio until maturity unless sold. Portfolio Activity: Quarterly Activity: For the quarter ending March 31, 2012, federal agency redemptions totaled $22MM and corporate note redemptions totaled $4MM. The $4MM redemption in corporate notes was due to the maturity of two securities, each for $2MM. Total purchases for the quarter included $40MM in federal agency securities and $OMM in corporate notes. Funds not utilized for operations were invested in federal agency securities, as shown by the 12% increase in federal agency issues in the chart below. Monthly Activity: For the month of March 2012, a total of $3MM of federal agency securities were purchased. $12MM in federal agency securities matured or were called and $4MM of corporate notes matured. The agency securities were called due to the current low interest environment, hence allowing the issuer to re-issue at lower rates. 4 1 P a g e Item 1. - 6 xs -22- Quarter-to-Quarter Comparison Book Value 12 31 11 3 31 12 change Federal Agency Issues $108,995,969 $121,997,625 12% Local Agency Investment Fund (LAIF) $30,028,426 $30,057,241 0% Medium Term Notes - Corporate $24,055,452 $20,011,439 -16.8% Totals $163,079,847 $172,066,305 5.5% Compliance: The portfolio is in conformity with all State laws and the Investment Policy statement filed with the City Council on December 19, 2011. A copy of this policy is available at the office of the City Clerk. The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. One item to note: General Electric Company's debt rating was cut by Moody's Investors Service in April 2012 because of "heightened risk" from its finance unit, whose own grade was cut below the parent' company's for the first time in two decades. Moody's lowered its rating on GE one level to AA3 and its ranking of GE Capital Corporation two steps, to Al. Previously both were rated Aa2 by Moody's. Standard & Poor's continues to rate both GE and GE Capital at AA+. The GE and GE Capital securities within the portfolio remain in compliance with the ratings guideline established in the Investment Policy. - 5 1 P a g e HB -23- Item 1. - 7 Retirement Plan Information as of December 31, 2011: City of Huntington Beach Deferred Compensation Plan Summary Information as of December 31,2011 Beginning Contributions Distributions/ Earnings Other Fees/ Ending Balance Transfers (change in Adjustments Balance (10-1-11) value) (12-31-11) ICMARetirement Corporation(457 Plan) $28,092,781 $704,280 ($430,314) $1,553,700• ($2,166) $29,918,281 Nationwide Retirement Solutions(457 Plan) $53,803,528 $1,015,047 ($971,377) $2,363,121 ($799) $56,209,521 Total Deferred Compensation Plan Balances $81,896,309 $1,719,326 ($1,401,690) $3,916,821 ($2,964) $86,127,802 City of Huntington Beach Retiree Medical Trust Information as of December 31,2011 Beginning Contributions Distributions/ Earnings Other Fees/ Ending Balance Transfers (change in Adjustments Balance (10-1-11) value) (12-31-11) CalPERS Retiree Medical Trust Account $9,050,744 $49,223 $596,225 ($2,891) $9,693,301 City of Huntington Beach Supplemental Pension Trust Information as of December 31,2011 Beginning Interest/ Realized Gains Earnings Other Fees/ Ending Balance Dividends /Losses (change in Adjustments Balance (12-1-11) value) (12-31-11) Supplemental Pension Trust Account $29,549,024 $231,403 $19,160 ($379,492) ($4,425) $29,415,670 - - - -- 6 1 Page Item 1. - 8 HB -24- I NGP City of Huntington Beach City of HB 2000 Main St. _ Portfolio Management Huntington Beach, Portfolio Summary ��UNTY CP March 31, 2012 Par Market Book %of Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv. FederdAgencyIssues-Coupon 122,000,000.00 122,158,510.00 121,997,625.18 70.90 1,499 1,358 1255 1272 Local Agency Investment Funds 30,057,240.73 30,057,240.73 30,057,240.73 17.47 1 1 0.378 0.383 Medium Term Notes 19,810,000.00 20,151,912.30 20,011,439.44 11.63 1,058 258 1.741 1.765 171,867,240.73 172,367,663.03 172,066,305.35 100.00% 1,186 993 1.158 1.174 Investments Cash and Accrued Interest Accrued Interest at Purchase 1,250.00 1,250.00 Subtotal 1.250.00 1,260.00 Total Cash and Investments 171,867,240.73 172,368,913.03 172,067,555.35 1,186 993 1.158 1.174 Total Earnings March 31 Month Ending Fiscal Year To Date Fiscal Year Ending Current Year 161,663.71 889,630.74 Current Budget 112,000.00 672,000.00 1,344,000.00 Last Year Actual 156,250.00 937,500.00 1,875,000.00 Average Daily Balance 174,394,254.80 160,359,371.18 Effective Rate of Return 1.09% 1.11% I certify that this report accurately reflects all City and Redevelopment Agency pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on December 19,2011. A copy of this policy is available at the office of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Marketl es prow de y Unlon Bank via Interactive Data Corporation. A--1 Co -220 t Z Alisa Cutchen,CITY TREASURER Reporting period 03/0112012-03/31/2012 Portfolio CITY C AP D Run Date:04116J2012-09:54 PM(PRF_PM1)7.3.0 Report Ver.7.3.3b 1 r+ CD City of 1-113 Portfolio Management Page 1 �. Portfolio Details - Investments March 31, 2012 CUSIP Investment# Issuer Average Purchase Stated YTM Days to Maturity Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Federal Agency Issues-Coupon 3133EAHZ4 3926 Federal Farm Credit Bank 03/20/2012 3,000,000.00 3,005,340.00 3,000,000.00 1.300 AA 1.300 1,814 03/20/2017 3133747F1 3885 Federal Home Loan Bank 06/27/2011 5,000,000.00 5,004,400.00 5,000,000.00 0.700 AA 0.700 544 09/27/2013 3134G2LY6 3892 Federal Home Loan Mort Corp 06/29/2011 5,000,000.00 5,023,050.00 5,000,000.00 2.000 AA 2.000 1,550 06/29/2016 3134G3BL3 3910 Federal Home Loan Mort Corp 12/05/2011 5,000,000.00 5,008,400.00 5,000,000.00 1.000 AA 1.000 978 12/05/2014 3134G3CVO 3911 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,003,200.00 5,000,000.00 1.000 AA 1.000 992 12/19/2014 3134G3DY3 3912 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,004,950.00 5,000,000.00 0,875 AA 0.875 992 12/19/2014 3134G3FGO 3913 Federal Home Loan Mort Corp 12/27/2011 3,000,000.00 3,001,710.00 3,000,000.00 0.650 AA 0.650 817 06/27/2014 3134G3HV5 3919 Federal Home Loan Mort Corp 01/25/2012 5,000,000.00 5,011,650.00 5,000,000.00 1.125 AA 1.490 1,760 01/25/2017 3134G3FC9 3920 Federal Home Loan Mort Corp 01/09/2012 5,000,000,00 4,998,850.00 5,000,000.00 1.000 AA 1.000 1,277 09/30/2015 3134G3GN4 3921 Federal Home Loan Mort Corp 01/18/2012 7,000,000.00 7,006,440.00 7,000,000.00 1.500 AA 1.500 1,753 01/18/2017 3134G3KC3 3922 Federal Home Loan Mort Corp 01/27/2012 5,000,000.00 4,998,200.00 5,000,000.00 1.000 AA 1.000 1,396 01/27/2016 3134G3LU2 3925 Federal Home Loan Mort Corp 02/14/2012 5,000,000.00 4,999,350.00 5,000,000.00 1.050 AA 1.316 1,780 02/14/2017 31398A31-4 3854 Fed.Nat'I Mort.Assoc. 09/17/2010 3,000,000.00 3,030,990.00 3,000,000.00 1.125 AA 1.125 534 09/17/2013 3136FRQJ5 3884 Fed.Nat'l MorL Assoc. 06/20/2011 5,000,000.00 5,009,100.00 5,000,000.00 1.170 AA 1.170 810 06/20/2014 3136FRVH3 3889 Fed.Nat'l Mort Assoc. 06/29/2011 5,000,000.00 5,017,250.00 5,000,000.00 1.500 AA 2.229 1,550 06/29/2016 3136FRV59 3894 Fed.Nat'l Mort Assoc 09/14/2011 8,000,000.00 8,021,920.00 8,000,000.00 1.050 AA 1.516 1,627 09/14/2016 3135GODT7 3904 Fed.Nat'l Mort.Assoc. 10/17/2011 5,000,000.00 4,991,100.00 4,998,515.74 0.700 AA 0.712 929 10/17/2014 x 035GODT7 3905 Fed.Nat'l Mort Assoc. 10/17/2011 3,000,000.00 2,994,660.00 2,999,109.44 0.700 AA 0,712 929 10/17/2014 (� H36FTFG9 3909 Fed.NaCl Mort Assoc. 10/26/2011 5,000,000.00 5,020,600.00 5,000,000.00 1.250 AA 1.722 1,689 10/26/2016 N H35GOGN7 3914 Fed.Nat'l Mort Assoc. 12/29/2011 5,000,000.00 4,997,750.00 5,000,000.00 0.900 AA 0.900 1,002 12/29/2014 H36FTWG0 3915 Fed.Nat'I Mort.Assoc. 12/28/2011 5,000,000.00 5,006,900.00 5,000,000.00 1.125 AA 1.641 1,732 12/28/2016 3136FTVF3 3916 Fed.Nat'I Mort.Assoc. 12/28/2011 5,000,000.00 5,012,000.00 5,000,000.00 1.000 AA 1.709 1,732 12/28/2016 3138FTXD8 3917 Fed.Nat'l Mort.Assoc. 12/28/2011 5,000,000.00 4,992,900.00 5,000,000.00 1.100 AA 1.100 1,366 12/28/2015 3136FTA58 3923 Fed.Nat'l Mort.Assoc. 01/30/2012 5,000,000.00 4,989,600.00 5,000,000.00 1.300 AA 1.300 1,765 01/30/2017 3136FTK73 3924 Fed.Nat'l Mort Assoc. 02/22/2012 5,000,000.00 5,008,200.00 5,000,000.00 1.375 AA 1.375 1,788 02/22/2017 Subtotal and Average 131,093,177.76 122,000,000.00 122,158,510.00 121,997,625.18 1.272 1$ 58 Local Agency Investment Funds SYS982 982 Laif City 30,057,240.73 30,057,240.73 30,057,240.73 0.383 0.383 1 SYS2206 2206 LAIF-Redevelopment Agency 0.00 0.00 0.00 0.382 0.382 1 Subtotal and Average 20,702,402.02 30,057,240.73 30,057,240.73 30,057,240.73 0.383 1 Medium Term Notes 06050BAJO 3734 Bank of America FDIC Insured 04/30/2009 2,000,000.00 2,009,520.00 2,002,372.76 2.375 AA 1.830 82 06/22/2012 084664AT8 3895 Berkshire Hathaway Fin 08/26/2011 1,310,000.00 1,451,912.30 1,433,043.45 4.850 AA 1.390 1,019 01/15/2015 36962G4X9 3906 General Electric Capital Corp 09/29/2011 2,000,000.00 2,041,480.00 2,018,302.49 2.100 AA 1.570 646 01/07/2014 Portfolio CITY Run Date:04/16/2012-09:54 AP PM(PRF_PM2)7.3.0 Report Ver.7.3.3b City of 1-113 Portfolio Management Page 2 Portfolio Details - Investments March 31, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Medium Term Notes 36962GZY3 3997 General Electric Capital Corp 09/16/2011 1,500,000.00 1,555,710.00 1,549,723.72 5.450 AA 1.200 289 01/15/2013 36967HB62 3805 GE Capital FDIC Insured 11/03/2009 2,000,000-00 2,017,7B0.00 2,002,672.78 2.000 AA 1.720 180 09/28/2012 36967HAHO 3735 General Electric Cap FDIC Insu 04/30/2009 2,000,000.00 2,007,540.00 2,001,259.70 2.200 AA 1.850 68 06/08/2012 36186CBF9 3763 GMAC FDIC Insured 06/30/2009 2,000,000.00 2,028,060.00 1,997,802.15 2.200 AA 2.361 262 12/19/2012 36185JAA7 3804 GMAC FDIC Insured 11/03/2009 2,000,000.00 2,017,720.00 1,999,619.66 1.750 AA 1.784 212 10/30/2012 481247AKO 3738 JP Morgan Chase FDIC Insured 04/30/2009 2,000,000.00 2,008,080.00 2,001,711.54 2.200 AA 1.770 75 06/16/2012 49328CAA3 3770 Key Bank FDIC Insured 06/30/2009 2,000,000.00 2,012,140.00 2,004,765.18 8.200 AA 2.000 75 06/15/2012 91160HAC1 3743 US Bank FDIC Insured 06/19/2009 1,000,000.00 1,001,970.00 1,000,166.02 1.800 AA 1.660 44 05/15/2012 Subtotal and Average 22,598,675.03 19,8102000.00 202151,912.30 20,011,439.44 1.765 258 Total and Average 174,394,254.80 171,867,240.73 172,367,663.03 172,066,305.35 1.174 993 Ct� N H N Portfolio CITY AP .un Date:04/16/2012-09:54 PM(PRF PM2)7.3.0 I fl) City of Fib Portfolio Management Page 1 Interest Earnings Summary tv March 31, 2012 March 31 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 173,875.00 818,798.93 Plus Accrued Interest at End of Period 440,710.18 440,710.18 Less Accrued Interest at Beginning of Period ( 446,807.27) ( 345,146.88) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 167,777.91 914,362.23 Adjusted by Premiums and Discounts -14,198.43 -87,897.25 Adjusted by Capital Gains or Losses 1,350.00 5,261.97 Earnings during Periods 154,929.48 831,726.95 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 0.00 0.00 Adjusted by Premiums and Discounts 0.00 0.00 p Adjusted by Capital Gains or Losses 0.00 0.00 a� 1 Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected 0.00 83,851.04 Plus Accrued Interest at End of Period 27,526.41 27,526.41 Less Accrued Interest at Beginning of Period ( 20,792.18) ( 53,473.66) Interest Earned during Period 6,734.23 57,903.79 Total Interest Earned during Period 174,512.14 972,266.02 Total Adjustments from Premiums and Discounts -14,198.43 -87,897.25 Total Capital Gains or Losses 1,350.00 5,261.97 Total Earnings during Period 161,663.71 889,630.74 Portfolio CITY AP Run Date:04/16/2012-09:54 PM(PRF_PM6)7.3.0 Report Ver.7.3.3b 1 1r11L i L7.Y 1Y.LV116111y L11VVl.1Y%, 1 1V1LLJ r Q�G 1 Vl i -72 ewv _i Califon iii State `If'L}LZsu rv'r '1 Pooled Money Investment Account PMIA Average Monthly Effective Yields Jan IFeb Mar Apr May Jun Jul jAug Sep Oct Nov IDec 1977 5.770 5.660 5.660 5.650 5.760 5.850 5.930 6.050 6.090 6.090 6.610 6.730 1978 6.920 7.050 7.140 7.270 7.386 7.569 7.652 7.821 7.871 8.110 8.286 8.769 1979 8.777 8.904 8.820 9.082 9.046 9.224 9.202 9.528 9.259 9.814 10.223 10.218 1980 10.980 11.251 11.490 11.480 12.017 11.798 10.206 9.870 9.945 110.056 10.426 10.961 1981 10.987 11.686 11.130 11.475 12.179 11.442 12.346 12.844 12.059 12.397 11.887 11.484 1982 11.683 12.044 11.835 11.773 12.270 11.994 12.235 11.909 11.151 11.111 10.704 10.401 1983 10.251 9.887 9.688 9.868 9.527 9.600 9.879 10.076 10.202 10.18210.164 10.227 1984 10.312 10.280 10.382 10.594 10.843 11.119 11.355 11.557 11.597 11.681 11.474 11.024 1985 10.579 10.289 10.118 10.025 10.180 9.743 9.656 9.417 9.572 1 9.482 9.488 9.371 1986 9.252 1 9.090 8.958 8.621 8.369 8.225 8.141 7.844 7.512 7.586 7.432 7.439 1987 7.365 7.157 7.205 7.044 7.294 7.289 7.464 7.562 7.712 7.825 8.121 8.071 1988 8.078 8.050 7.945 7.940 7.815 7.929 8.089 8.245 8.341 8.397 8.467 8.563 1989 8.698 8.770 8.870 8.992 9.227 9.204 9.056 8.833 8.801 8.771 8.685 8.645 1990 8.571 8.538 8.506 8.497 8.531 8.538 8.517 8.382 8.3331 8.321 8.269 8.279 1991 8.164 8.002 7.775 7.666 7.374 7.169 7.098 7.072 6.859 6.719 6.591 6.318 1992 6.122 5.863 5.6801 5.692 5.379 5.323 5.235 4.958 4.760 4.730 4.659 4.647 1993 4.678 4.649 4.624 4.605 4.427 4.554 4.438 4.472 4.430 4.380 4.365 4.384 1994 4.359 4.176 4.248 4.333 4.434 4.623 4.823 4.989 5.106 5.243 5.380 5.528 1995 5.612 5.779 5.934 5.960 6.008 5.997 5.972 5.910 5.832 15.784 5.805 5.748 1996 5.698 U 5.643 5.557 5.538 5.502 5.548 5.587 1 5.566 5.601 5.601 5.599 5.574 1997 5.583 5.575 5.580 5.612 5.634 5.667 5.679 5.690 5.707 5.705 5.715 5.744 1998 5.742 5.720 5.680 5.672 5.673 1 5.671 5.652 5.652 5.639 5.557 5.492 5.374 1999 5.265 5.210 5.136 5.119 5.086 5.095 5.178 5.225 5.274 5.391 5.484 5.639 2000 5.760 5.824 5.851 6.014 6.190 6.349 6.443 6.505 6,502 16.517 6.538 6.535 2001 6.372 6.169 5.976 5,760 5.328 4.958 4.635 1 4.502 4.288 13.785 3.526 3.261 2002 3.068 2.967 2.861 2.845 2.740 2.687 2.714 12.594 2.604 2.487 2.301. 2.201 2003 2.103 1.945 1.904 1.858 1.769 1.697 1.653 1.632 1.635 1.596 1.572 1.545 2004 1.528 1.440 1.474 1.445 1.426 1.469 1.604 1.672 1.771 1.890 2.003 2.134 2005 2.264 2.368 2.542 2.724 2.856 2.967 3.083 3.179 3.324 3.458 3.636 3.808 2006 3.965 1 4.043 4.142 14.305 4.563 4.700 4.849 4.946 5.023 1 5.098 5.125 5.129 2007 5.156 5.181 5.214 5.222 5.248 5.2501 5.255 5.253 5.231 5.137 4.962 4.801 2008 4.620 4.161 3.777 3.400 3.072 2.894 2.787 2.779 2.774 2.709 2.568 2.353 2009 2.046 1.869 1.822 1.607 1.530 1.377 1.035 0.925 0.750 0.646 0,611 0.569 2010 0.558 0.577 1 0.547 0.588 0.560 0.528 0.531 0.513 0.500 0.480 0.454 0.462, 2011 0.538 0.512 0.500 0.588 0.413 0.448 0.381 1 0.408 0.378 0.385 0.401 0.382 2012 0.385 10.389 0.383 h4://www.treasurer.ca.gov/pmia-laif/historical/av HB -29-lds.asp 4/16,Item 1. - 13 State of California Pooled Money Investment Account Market Valuation 3131/2012 United States Treasury: Federal Agency: Fair Value Including Accrued Interest * 64,483,713,831.28 Repurchase Agreements,Time Deposits,Aaa5&General Fund loans,and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). The value of each participating dollar equals the fair value divided by the amortized cost(1.001211113). As an exampfe: if an agency has an account balance of$20,000,000.00,then the agency would report its participation in the LAW valued ot$2V.024.222.26or*2U.UOO`UOO.00x1.uo1211113. ;frrn 1 1'1 | ^`=�^^ ^, - .-, l|8 -30- | Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department March 2012 Cash Receipts and Disbursements February 2012 March 2012 Receipts Property Tax Receipts $29,350 $2,287,604 Utility Tax Receipts (UUT) 1,749,323 1,758,537 Sales Tax Receipts 2,029,700 1,722,522 1/2 Cent Safety Sales Tax Receipts 121,259 202,235 Highway Users Tax Receipts (HUT) - 1,200,966 Transient Occupancy Tax Receipts (TOT) 437,875 541,105 Government Funds 111,510 147,598 Capital Funds 6,445 354,740 Debt Service Funds 149,029 2,284,548 Enterprise Funds 4,487,728 4,770,116 Fiduciary Funds 739,343 681,831 Special Revenue Funds 2,247,986 2,958,814 All Other Receipts 5,159,207 2,844,823 Total Receipts $17,268,757 $21,755,439 Disbursements Total Disbursements (22,443,177) (28,913,267) Net Change in Cash Flow ($5,174,420) ($7,157,827) Summary of Cash by Fund February 2012 March 2012 General Fund 60,648,895 62,754,265 Government Funds 898,757 953,827 Capital Funds 5,010,780 4,533,360 Debt Service Funds 2,576,938 1,536,811 Enterprise Funds 86,328,133 86,719,719 Fiduciary Funds 1,430,207 1,454,860 Internal Service Fund 1,288,714 1,288,714 Special Revenue Funds 27,466,379 21,622,486 General Ledger Cash Balances 185,648,803 180,864,042 *Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Mar 2012.)1sx If 4/17/2012 HB -31- Item 1. - 15 ATTACHMENT #2 Treasurer ' s Investment Rep o rt March , 2012 Prepared by.- Alisa Cutchen City Treasurer CD °° City Portfolio at March 31 , 2012 : of I nvestment Tvpe Market Value Book Value Portfolio Policy Limit Federal Agency Issues 122,158,510 121,997,625 71% None LAI F 30,057,241 30,057,241 17% $50 million W Corporate Notes 201151,912 20,011,439 12% 20% ` Totals $172,3671663 $1721066,305 100% Book Value by Investment Type 12% ■ Federal Agency Issues ■ LAIF 17% x ■ Medium Term Notes W 71% CD � Monthly Earnings : $ 1615664 � Monthly Effective Rate of Return : 1 . 09% � Benchmark : 0 . 37% (Average Monthly LAIF & 2 Yr . Treasury) � In Compliance / NO LOSSES Huntington Beach Portfolio Sector Heat Map 03130112 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% scre:e ?;s 1.50 SYrAgyBIt 4YrAgyBit(Intp) A,qy S&uciwrea A;gy Continuous Calls 4iio (0.25) 0.00 0.25 0. 00 2.25 2 50 2.75 3.003Yrj#&It 3=50 3.75 4.25 4,50 4.7 .Q( CashiMM Agy One-Time Calls SYrCH 0•SD°/A* 3YrCMr (a'YrA gyBlt O4YrCWntp} 40, jWM49WoAgyBvy " it 2YrCMr 6A4o CART 0.00 1 rCMr aft cur Effective Duration N , FDIC - Insured Corporate Bonds to Mature 2012 � May - December, 2012 � 7 Bonds � $ 13 Million par Value / 7 . 5 % of total portfolio � Coupons : 1 . 66% to 2 . 36% � LOWER portfolio YIELD will result Balance of Risk and Reward ► Investigate potential sources of higher return ► Continue to maintain portfolio objectives of: ➢ PRESERVATION OF PRINCIPAL ➢ MAINTAINANCE OF SUFFICIENT OPERATING LIQUIDITY );;;.ATTAIN MARKET RATE OF RETURN N w CD N -P QUESTIONS ? ■ loll -Mambo__ ------------------------------------ 0 Council/Agency Meeting Held: Deferred/Continued to: I *Appro e ❑ Conditionally Approved ❑ Denied qO,,w Ci Cferk/6 Sig tune _T Council Meeting Date: May 7, 2012 Department ID Number: CT 12-008 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and File the City Treasurer's February 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for February 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable. Recommended Action: Receive and File the Monthly Investment Report for February 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique monthly report. Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Enhance economic development. Improve long-term financial sustainability. Attachment: 1. Monthly Investment Report and Summary of Investments for February 2012 Item 3. - I HB -58- ATTACHMENT # 1 CD JAMST� W ��ti�COAgOgqlFp •�F City of Huntington Beach i " = City of 1-113 2000 Main St. Portfolio Management Huntington Beach, SNTV CP��F Portfolio Summary February 29, 2012 Investments Par Market Book %of Days to YTM YTM Value Value Value Portfolio Tern Maturity 360 Equiv. 366 Equly. Federal Agency Issues-Coupon 131,000,000.00 131,193,210.00 130,996,174.91 74.82 1,465 1,348 1.218 1.235 Local Agency Investment Funds 20,057,240.73 20,057,240.73 20,057,240.73 11.46 1 1 0.384 0.389 Medium Terre Notes 23,810,000.00 24,194,195.10 24,025,738.14 13.72 1,060 244 1.763 1.787 Investments 174,867,240.73 175,444,645.83 175,079,153.78 100.00% 1,242 1,043 1.197 1.214 Cash and Accrued Interest Accrued Interest at Purchase 1,250.00 1,250.00 Subtotal 1,250.00 1,250.00 Total Cash and Investments 174,867,240.73 175,445,895.83 175,080,403.78 1,242 1,043 1.197 1.214 Total Earnings February 29 Month Ending Fiscal Year To Date Fiscal Year Ending Current Year 156,871.56 727,967.03 Cn Current Budget 112,000.00 560,000.00 1,344,000.00 Last Year Actual 156,260.00 781,250.00 1,875,000.00 O Average Daily Balance 174,741,686.41 157,496,993.60 Effective Rate of Return 1.13% 1.11% I certify that this report accurately reflects all City and Redevelopment Agency pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on December 20,2010. A copy of this policy is available at the office of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values providedN Union ank via Interactive Data Corporation. C Aiga Cutchen,CITY TREASURER Reporting period 02/01/2012-02/29/2012 Portfolio CITY AP Run Date:03/13=12-13:16 PM(PRF PM1)7.3.0 Report Ver.7.3.3b City of HB Portfolio Management Page 1 Portfolio Details - Investments February 29, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Federal Agency Issues-Coupon 3133747F1 3885 Federal Home Loan Bank 06/27/2011 5,000,000.00 5,005,850.00 5,000,000.00 0.700 AA 0.700 575 09/27/2013 3134G2LY6 3892 Federal Home Loan Mort Corp 06/29/2011 5,000,000.00 5,030,800.00 5,000,000.00 2.000 AA 2.000 1,581 06/29/2016 3134G2H39 3896 Federal Home Loan Mort Corp 09/29/2011 5,000,000.00 5,002,250.00 5,000,000.00 0.800 AA 0.800 942 09/29/2014 3134G3BL3 3910 Federal Home Loan Mort Corp 12/05/2011 5,000,000.00 5,009,300.00 5,000,000.00 1,000 AA 1.000 1,009 12/05/2014 3134G3CVO 3911 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,004,550.00 5,000,000.00 1.000 AA 1.000 1,023 12/19/2014 3134G3DY3 3912 Federal Home Loan Mort Corp 12119/2011 5,000,000.00 5,006,350.00 5,000,000.00 0.875 AA 0.875 1,023 12/19/2014 3134G3FGO 3913 Federal Home Loan Mort Corp 12/27/2011 3,000,000.00 3,002,580.00 3,000,000.00 0.650 AA 0.650 848 06/27/2014 3134G3HV5 3919 Federal Home Loan Mort Corp 01/25/2012 5,000,000.00 5,008,350.00 5,000,000.00 1.125 AA 1.490 1,791 01/25/2017 3134G3FC9 3920 Federal Home Loan Mort Corp 01/09/2012 5,000,000.00 4,994,950.00 5,000,000.00 1.000 AA 1.000 1.308 09/30/2015 3134G3GN4 3921 Federal Home Loan Mort Corp 01/18/2012 7,000,000.00 7,006,370.00 7,000,000.00 1.500 AA 1.500 1,784 01/18/2017 3134G3KC3 3922 Federal Home Loan Mort Corp 01/27/2012 5,000,000.00 4,996,050.00 5,000,000.00 1.000 AA 1.000 1,427 01/27/2016 3134G3LU2 3925 Federal Home Loan Mort Corp 02/14/2012 5,000,000.00 4,998,950.00 5,000,000.00 1.050 AA 1.316 1,811 02/14/2017 31398A3L4 3854 Fed.Nat?Mort.Assoc. 09/17/2010 3,000,000.00 3,032,580.00 3,000,000.00 1.125 AA 1.125 565 09/17/2013 3136FRQJ5 3884 Fed.Nat'l Mort.Assoc. 06/20/2011 5,000,000.00 5,011,650.00 5,000,000.00 1.170 AA 1.170 841 06/20/2014 3136FRVH3 3889 Fed.Nafl Mort.Assoc. 06/29/2011 5,000,000.00 5,022,000.00 5,000,000.00 1.500 AA 2.229 1,581 06/29/2016 3136FRV59 3894 Fed.Nafl Mort.Assoc. 09/14/2011 8,000,000.00 8,024,000.00 8,000,000.00 1.050 AA 1.516 1,658 09/14/2016 3135GODT7 3904 Fed.Nafl Mort.Assoc. 10/17/2011 5,000,000.00 4,986,900.00 4,998,467.13 0.700 AA 0.712 960 10/17/2014 x 3135GODT7 3905 Fed.NaYI Mort.Assoc. 10/17/2011 3,000,000.00 2,992,140.00 2,999,080.28 0.700 AA 0.712 960 10/17/2014 3136FR4V2 3907 Fed.Nafl Mort Assoc. 09/28/2011 2,000,000.00 2,001,640.00 1,998,627.50 1.375 AA 1.391 1,672 09/28/2016 p� 3136FR5P4 3908 Fed.Nafl Mort.Assoc. 09/30/2011 5,000,000.00 4,987,450.00 5,000,000.00 0.750 AA 0.750 943 09/30/2014 3136FTFG9 3909 Fed.Nafl Mort Assoc. 10/26/2011 5,000,000.00 5,024,850.00 5,000,000.00 1.250 AA 1.722 1,700 10/26/2016 3135GOGN7 3914 Fed.Nat'l Mort Assoc, 12/29/2011 5,000,000.00 4,992,050.00 5,000,000.00 0.900 AA 0.900 1,033 12/29/2014 3136FTWGO 3915 Fed.Nat(Mort Assoc. 12/28/2011 5,000,000.00 5,010,500.00 5,000,000.00 1.125 AA 1.641 1,763 12/28/2016 3136FTVF3 3916 Fed.Nafl Mort Assoc. 12/28/2011 5,000,000.00 5,014,050.00 5,000,000.00 1.000 AA 1.709 1,763 12/28/2016 3136FTXD6 3917 Fed.Nat'I Mort Assoc. 12/28/2011 5,000,000.00 5,003,550.00 5,000,000.00 1.100 AA 1.100 1,397 12/28/2015 3136FTA58 3923 Fed.Natl Mort Assoc. 01/30/2012 5,000,000.00 5,002,400.00 5,000,000.00 1.300 AA 1.300 1,796 01/30/2017 3136FTK73 3924 Fed.Nat'l Mort Assoc. 02/22/2012 5,000,000.00 5,021,200.00 5,000,000.00 1.375 AA 1.375 1,819 02122/2017 Subtotal and Average 126,134,054.67 131,000,000.00 131,193,210.00 130,996,174.91 1.235 1,348 Local Agency Investment Funds SYS982 982 Laif City 20,057,240.73 20,057,240.73 20,057,240.73 0.389 0.389 1 SYS2206 2206 LAIF-Redevelopment Agency 0.00 0.00 0.00 0.382 0.382 1 Subtotal and Average 25,674,482.11 20,067,240.73 20,067,240.73 20,067,240.73 0.389 1 Portfolio CITY Q AP Run Date:OW31201 2-13:16 PM(PRF PM2)7.3.0 W r Report Ver.7.3.3b .p r+ CD W City of HB Portfolio Management Page 2 Portfolio Details - Investments February 29, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Medium Term Notes 06050BAJO 3734 Bank of America FDIC Insured 04/30/2009 2,000,000.00 2,013,620.00 2,003,251.55 2.375 AA 1.830 113 06/22/2012 084664AT8 3895 Berkshire Hathaway Fin 08/26/2011 1,310,000.00 1,456,995.10 1,436,720.05 4.850 AA 1.390 1,050 01/15/2015 17314AAF9 3723 Citigroup FDIC Insured 03/30/2009 2,000,000.00 2,002,620.00 1,999,855.54 2.000 AA 2.093 29 03/30/2012 36962G4X9 3906 General Electric Capital Corp 09/29/2011 2,000,000.00 2,039,940.00 2,019,165.82 2.100 AA 1.570 677 01/07/2014 36962GZY3 3997 General Electric Capital Corp 09/16/2011 1,500,000.00 1,563,210.00 1,554,976.22 5.450 AA 1.200 320 01/15/2013 36967HBB2 3805 GE Capital FDIC Insured 11/03/2009 2,000,000.00 2,021,140.00 2,003,125.80 2.000 AA 1.720 211 09/28/2012 36967HAN7 3733 General Electric Cap FDIC Insu 04/30/2009 2,000,000.00 2,000,840.00 2,000,326.16 2.250 AA 1.701 11 03/12/2012 36967HAHO 3735 General Electric Cap FDIC Insu 04/30/2009 2,000,000.00 2,010,460.00 2,001,823.74 2.200 AA 1.850 99 06/08/2012 36186CBF9 3763 GMAC FDIC Insured 06/30/2009 2,000,000.00 2,031,880.00 1,997,546.58 2.200 AA 2.361 293 12/19/2012 36185JAA7 3804 GMAC FDIC Insured 11/03/2009 2,000,000.00 2,020,880.00 1,999,565.05 1.750 AA 1.784 243 10/30/2012 481247AKO 3738 JP Morgan Chase FDIC Insured 04/30/2009 2,000,000.00 2,011,960.00 2,002,405.40 2.200 AA 1.770 106 06/15/2012 49328CAA3 3770 Key Bank FDIC Insured 06/30/2009 2,000,000.00 2,017,260.00 2,006,697.01 3.200 AA 2.000 106 06/15/2012 91160HAC1 3743 US Bank FDIC Insured 05/19/2009 1,000,000.00 1,003,390.00 1,000,279.22 1.800 AA 1.660 75 05/15/2012 Subtotal and Average 24,033,149.63 23,810,000.00 24,194,195.10 24,025,738.14 1.787 244 Total and Average 174,741,686.41 174,867,240.73 175,444,646.83 176,079,163.78 1.214 1,043 N Portfolio CITY AP Run Date:03/13/2012-13:16 PM(PRF PM2)7.3.0 City of HB Portfolio Management Page 3 Portfolio Details- Cash February 29, 2012 Average Purchase Stated YTM Days to CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Average Balance 0.00 Accrued Interest at Purchase 1,250.00 1,250.00 0 Subtotal 1,260.00 1,250.00 Total Cash and Investments 174,741,686.41 174,867,240.73 175,446,895.83 175,080,403.76 1.214 1,043 Cb n r~i Portfolio CITY AP Run Date:03/13/2012-13:16 PM(PRF_PM2)7.3.0 w I �-i City of HB Portfolio Management Page 1 Activity By`Type February 1, 2012 through February 29, 2012 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues-Coupon 3134G3LU2 3925 Federal Home Loan Mort Corp 1.050 02/14/2012 5,000,000.00 0.00 3136FTK73 3924 Fed.NafI Mort Assoc. 1.375 02/22/2012 5,000,000.00 0.00 Subtotal 10,000,000.00 0.00 130,996,174.91 Local Agency Investment Funds (Monthly Summary) SYS982 982 Laff City 0.389 0.00 10,000,000.00 Subtotal 0.00 10,000,000.00 20,057,240.73 Medlum Term Notes Subtotal 24,025,738.14 Total 10,000,000.00 10,000,000.00 175,079,163.78 U� -P Portfolio CITY AP Run Date:03/13/2012-13:16 PM(PRF PM3)7.3.0 Report Ver.7.3.3b City of HB Portfolio Management Page 1 Activity Summary February 2011 through February 2012 Yield to Maturity Managed Number Number Month Number of Average 360 365 Pool of Investments of Investments Average Average End Year Securities Balance Equivalent Equivalent Rate Purchased Redeemed Terre Days to Maturity February 2011 49 165,474,398.24 1.367 1.386 0.512 0 0 889 701 March 2011 47 160,698,872A9 1.353 1.372 0.500 0 2 890 677 April 2011 44 157,507,665.91 1.292 1.309 0.588 0 3 845 647 May 2011 46 157,665,657.64 1.242 1.259 0.413 4 2 869 679 June 2011 45 166,927,847.24 1.278 1.296 0.448 9 10 901 745 July 2011 43 183,784,185.57 1.269 1.286 0.381 3 5 940 784 August 2011 39 169,814,312.73 1.263 1.281 0.408 1 5 936 761 September 2011 37 152,819,771.51 1.189 1.205 0.378 6 8 932 776 October 2011 36 155,770,159.22 1.239 1.256 0.385 3 2 1,049 167 November 2011 34 148,389,001.57 1.265 1.283 0.401 0 2 1,075 156 December 2011 37 147,666,119.75 1.154 1.170 0.382 8 5 1,067 888 January 2012 40 161,736,755.70 1.143 1.159 0.385 5 2 1,138 963 February 2012 42 174,741,686.41 1.197 1.214 0.389 2 0 1,242 1,043 Average 41 161,729,285.79 1.250% 1.267% 0.428 3 4 983 691 CCJ r-i Portfolio CITY CD AP Run Date:03/1312012-13:16 PM(PRF PM4)7.3.0 W Report Ver,7.3.3b 00 W City Of HB Portfolio Management Page 1 Interest Earnings Summary February 29, 2012 February 29 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 0.00 644,923.93 Plus Accrued Interest at End of Period 446,807.27 446,807.27 Less Accrued Interest at Beginning of Period ( 283,085.64) ( 345,146.88) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 163,721.63 746,584.32 Adjusted by Premiums and Discounts -14,754.34 -73,698.82 Adjusted by Capital Gains or Losses 0.00 3,911.97 Earnings during Periods 148,967.29 676,797.47 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) x Interest Earned during Period 0.00 0.00 CD Adjusted by Premiums and Discounts 0.00 0.00 Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected 0.00 83,851.04 Plus Accrued Interest at End of Period 20,792.18 20,792.18 Less Accrued Interest at Beginning of Period ( 12,887.91) ( 53,473.66) Interest Earned during Period 7,904.27 51,169.56 Total Interest Earned during Period 171,625.90 797,753.88 Total Adjustments from Premiums and Discounts -14,764.34 .73,698.82 Total Capital Gains or Losses 0.00 3,911.97 Total Earnings during Period 156,871.56 727,967.03 Portfolio CITY AP Run Date:03/13/2012-13:16 PM(PRF_PM6)7.3.0 Report Ver,7.3.3b --.' Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department February 2012 Cash Receipts and Disbursements January 2012 February 2012 Receipts Property Tax Receipts $12,995,942 $29,350 Utility Tax Receipts (UUT) 1,669,131 1,749,323 Sales Tax Receipts 1,522,300 2,029,700 1/2 Cent Safety Sales Tax Receipts 159,208 121,259 Highway Users Tax Receipts (HUT) 840,214 - Transient Occupancy Tax Receipts (TOT) 347,078 437,875 Government Funds 34,162 111,510 Capital Funds 249,682 6,445 Debt Service Funds 962,664 149,029 Enterprise Funds 5,710,191 4,487,728 Fiduciary Funds 657,692 739,343 Special Revenue Funds 3,834,824 2,247,986 Internal Service Funds 3,518 - All Other Receipts 8,212,658 5,159,207 Total Receipts $37,199,262 17,268,757 Disbursements Total Disbursements (26,733,443) (22,443,177) Net Change in Cash Flow $10,465,819 ($5,174,420) Summary of Cash by Fund January 2012 February 2012 General Fund 65,338,374 60,648,895 Government Funds 871,796 898,757 Capital Funds 5,072,123 5,010,780 Debt Service Funds 3,208,561 2,576,938 Enterprise Funds 85,457,113 86,328,133 Fiduciary Funds 1,429,420 1,430,207 Internal Service Fund 1,293,432 1,288,714 Special Revenue Funds 27,955,927 27,466,379 General Ledger Cash Balances 190,626,746 185,648,803 ' "Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Feb 2012.xisx ji 3/13/2012 xB -67- Item 3. - 10 State of California Pooled Money Investment Account Market valuation /�! 2/2 yy, 9/2012 _r l� �.ti' _r3d�40-157A United States Treasury: Bills $ 18,717,263,072.98 $ 18,739,829,500.00 NA Notes $ 15,132,482,081.42 $ 15,186,274,500.00 $ 32,179,359.50 Federal Agency: SBA $ 538,205,313.38 $ 538,558,270.99 $ 564,816.31 MBS-REMICs $ 379,672,179.88 $ 413,895,233.66 $ 1,806,939.27 Debentures $ 976,090,670.91 $ 976,426,250.00 $ 1,463,334.75 Debentures FR $ - $ - $ - Discount Notes $ 4,791,501,388.76 $ 4,798,269,000.00 NA GNMA $ 25,667.79 $ 25,906.98 $ 251.81 IBRD Debenture $ 399,921,857.92 $ 400,000,000.00 $ 422,224.00 IBRD Deb FR $ 300,000,000.00 $ 300,198,000.00 $ 242,380.83 CDs and YCDs FR $ 400,000,000.00 $ 400,000,000.00 $ 47,440.00 Bank Notes $ - $ - $ - CDs and YCDs $ 4,200,010,947.96 $ 4,198,796,444.41 $ 6,721,986.10 Commercial Paper $ 1,609,430,836.16 $ 1,609,821,222.22 NA Corporate: Bonds FR $ - $ - $ - Bonds $ - $ - $ - Repurchase Agreements $ - $ - $ - Reverse Repurchase $ - $ - $ - Time Deposits $ 4,233,640,000.00 $ 4,233,640,000.00 NA AB 55&GF Loans $ 13,156,208,514.82 $ 13,156,208,514.82 NA TOTAL $ 64,834,452,531.98 $ 64,951,942,843.08 $ 43,448,732.57 Fair Value Including Accrued Interest $ 64,995,391,575.65 Repurchase Agreements,Time Deposits, AB 55&General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). Item 3. - 11 HB -68- C s t Council/Agency Meeting Held: q Deferred/Continued to: �ppr ve ❑ Conditionally Approved ❑ Denied City Clerk's Signature Council Meeting Date: March 19, 2012 Department ID Number: CT 12-007 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Alisa Cutchen, City Treasurer SUBJECT: Receive and file the City Treasurer's January 2012 Investment Summary Report Statement of Issue: Receive and File the Monthly Investment Report for January 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Financial Impact: Not Applicable. Recommended Action: Motion to: Receive and File the Monthly Investment Report for January 2012, pursuant to Section 17.0 of the Investment Policy of the City of Huntington Beach. Alternative Action(s): Deny or critique monthly report. Analysis: Not Applicable. Environmental Status: Not Applicable. Strategic Plan Goal: Enhance economic development. Improve long-term financial sustainability. Attachment(s): 1 Monthly Investment Report and Summary of Investments for January 2012 I Item 3. - I xB -26- ATTACHMENT # 1 %TINSTp�Y W ,o```�GOPYOflA)f0 BF City of Huntington Beach _ City of 1'113 2000 Main St. Huntington Beach, w 9 Portfolio Management 2c �o AUNTY�P oQ F� Portfolio Summary January 31, 2012 Investments Par Market Book %of Days to YTM YTM Value Value Value Portfolio Tenn Maturity 360 Equiv. 366 Equiv. Federal Agency Issues-Coupon 121,000,000.00 121,354,480.00 120,996,072.13 69.10 1,435 1,339 1.209 1.226 Local Agency Investment Funds 30,057,240.73 30,057,240.73 30,057,240.73 17.17 1 1 0.380 0.385 Medium Tenn Notes 23,81D,OD0.00 24,238,113.50 24,040,595.26 13.73 1,06D 274 1.762 1.787 Investments 174,867,240.73 175,649,834.23 175,093,908.12 100.00% 1,138 963 1.143 1.159 Cash and Accrued Interest Accrued Interest at Purchase 1,250.00 1,250.00 Subtotal 1,250.00 1,250.00 Total Cash and Investments 174,867,240.73 175,651,084.23 175,095,158.12 1,138 963 1.143 1.159 Total Earnings January 31 Month Ending Fiscal Year To Date Fiscal Year Ending Current Year 140,900.33 571,095.47 QJ Current Budget 112,000.00 448,000.00 1,344,000.00 t� Last Year Actual 156,250.00 625,000.00 1,875,000.00 Average Daily Balance 161,736,755.70 153,431,171.72 Effective Rate of Return 1.03% 1.10% I certify that this report accurately reflects all City and Redevelopment Agency pooled investments and is in conformity with all State laws and the investment policy statement filed with the City Council on December 20,2010. A copy of this policy is available at the office of the City Clerk.The investment program herein shown provides sufficient cash flow liquidity to meet the next six month's obligations. Market Values provided by Union Bank via Interactive Data Corporation. A CJU-E-�I- 3. 5, 2D kz Afrsa Cutchen,CITY TREASURER Reporting period 0110112012-0113112012 Portfolio CITY AP Run Date:03/05/2012-10:38 PM(PRF PM1)7.3.0 Report Ver.7.3.3b City of 1-113 Portfolio Management Page 1 Portfolio Details - Investments January 31, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 366 Maturity Date Federal Agency Issues-Coupon 3133747F1 3885 Federal Home Loan Bank 06/27/2011 5,000,000.00 5,006,450.00 5,000,000.00 0.700 AA 0.700 604 09/27/2013 3134G2LY6 3892 Federal Home Loan Mort Corp 06/29/2011 5,000,000.00 5,036,800.00 5,000,000.00 2.000 AA 2.000 1,610 06/29/2016 3134G21-139 3896 Federal Home Loan Mort Corp 09/29/2011 5,000,000.00 5,003,600.00 5,000,000.00 0.800 AA 0.800 971 09/29/2014 3134G3BL3 3910 Federal Home Loan Mort Corp 12/05/2011 51000,000.00 5,013,750.00 5,000,000.00 1.000 AA 1.000 1,038 12/05/2014 3134G3CVO 3911 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,011,700.00 5,000,000.00 1.000 AA 1.000 1,052 12/19/2014 3134G3DY3 3912 Federal Home Loan Mort Corp 12/19/2011 5,000,000.00 5,012,550.00 5,000,000.00 0.875 AA 0.875 1,052 12/19/2014 3134G3FGO 3913 Federal Home Loan Mort Corp 12/27/2011 3,000,000.00 3,005,550.00 3,000,000.00 0.650 AA 0.650 877 06/27/2014 3134G3HV5 3919 Federal Home Loan Mort Corp 01/25/2012 5,000,000.00 5,024,000.00 5,000,000.00 1.125 AA 1.490 1,820 01/25/2017 3134G3FC9 3920 Federal Home Loan Mort Corp 01/09/2012 5,000,000,00 5,014,950.00 5,000,000.00 1.000 AA 1.000 1,337 09/30/2015 3134G3GN4 3921 Federal Home Loan Mort Corp 01/18/2012 7,000,000.00 7,039,830.00 7,000,000.00 1.500 AA 1.500 1,813 01/18/2017 3134G3KC3 3922 Federal Home Loan Mort Corp 01/27/2012 5,000,000.00 5,023,850.00 5,000,000.00 1.000 AA 1.000 1,456 01/27/2016 31398A31-4 3854 Fed.NO Mort Assoc. 09/17/2010 3,000,000.00 3,034,950.00 3,000,000.00 1.125 AA 1.125 594 09/17/2013 3136FRQJ5 3884 Fed.Nat'l Mort Assoc. 06/20/2011 5,000,000.00 5,013,550.00 5,000,000.00 1.170 AA 1.170 870 06/20/2014 3136FRVH3 3889 Fed.Nat'l Mort.Assoc. 06/29/2011 5,000,000.00 5,025,460.00 5,000,000.00 1.500 AA 2.229 1,610 06/29/2016 3136FRV59 3894 Fed.Nat'l Mort.Assoc. 09/14/2011 8,000,000.00 8,029,120.00 8,000,000.00 1.050 AA 1.516 1,687 09/14/2016 3135GODT7 3904 Fed.Nat'l Mort Assoc. 10/17/2011 5,000,000.00 4,990,750.00 4,998,418.52 0.700 AA 0.712 989 10/17/2014 3135GODT7 3905 Fed.Nat'l Mort Assoc. 10/17/2011 3,000,000.00 2,994,460.00 2,999,051.11 0.700 AA 0.712 989 10/17/2014 3136FR4V2 3907 Fed.Natl Mort Assoc. 09/28/2011 2,000,000.00 2,002,880.00 1,998,602.50 1.375 AA 1.391 1,701 09/28/2016 3136FR5134 3908 Fed.Nat?Mort Assoc. 09/30/2011 5,000,000.00 4,990,460.00 5,000,000.00 0.750 AA 0.750 972 09/30/2014 t'j 3136FTFG9 3909 Fed.Nat?Mort Assoc, 10/26/2011 5,000,000.00 5,027,400.00 5,000,000.00 1.250 AA 1.722 1,729 10/26/2016 3135GOGN7 3914 Fed.Nat?Mort.Assoc. 12/29/2011 5,000,000.00 5,000,400.00 5,000,000.00 0.900 AA 0.900 1,062 12/29/2014 ' 3136FTWGO 3915 Fed.Nat'l Mort Assoc, 12/28/2011 5,000,000.00 5,011,300.00 5,000,000.00 1.125 AA 1.641 1,792 12/28/2016 3136FTVF3 3916 Fed.Nat'l Mort Assoc. 12/28/2011 5,000,000.00 5,013,800.00 5,000,000.00 1.000 AA 1.709 1,792 12/28/2016 3136FTXD6 3917 Fed,Nat'I Mort Assoc. 12/28/2011 5,000,000.00 5,015,600.00 5,000,000.00 1.100 AA 1.100 1,426 12/28/2015 3136FTA58 3923 Fed.NaVI Mort Assoc. 01/30/2012 5,000,000.00 5,011,350.00 5,000,000.00 1.300 AA 1.300 1,825 01/30/2017 Subtotal and Average 107,641,186.36 121,000,000.00 121,354,480.00 120,996,072.13 1.226 1,339 Local Agency Investment Funds SYS982 982 Laif City 30,057,240.73 30,057,240.73 30,057,240.73 0.385 0.385 1 SYS2206 2206 LAIF-Redevelopment Agency 0.00 0.00 0.00 0.382 0.382 1 Subtotal and Average 30,048,026.02 309057,240.73 309057,240.73 309057,240.73 0.386 1 Medium Term Notes 06050BAJO 3734 Bank of America FDIC Insured 04/30/2009 2,000,000.00 2,017,780.00 2,004,130.35 2.375 AA 1.830 142 06/22/2012 084664ATS 3895 Berkshire Hathaway Fin 08/26/2011 1,310,000.00 1,462,418.50 1,440,396.65 4.850 AA 1.390 1,079 01/15/2015 17314AAF9 3723 Citigroup FDIC Insured 03/30/2009 2,000,000.00 2,006,000.00 1,999,706.09 2.000 AA 2.093 58 03/30/2012 --1 Portfolio CITY N AP Run Date:03/MO12-10:38 PM(PRF PM2)7.3.0 W Report Ver.7.3.3b CD w City of HB Portfolio Management Page 2 Portfolio Details s Investments January 31, 2012 Average Purchase Stated YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P 365 Maturity Date Medium Term Notes 36962G4X9 3906 General Electric Capital Corp 09/29/2011 2,000,000.00 2,036,160.00 2,020,029.14 2.100 AA 1.570 706 01/07/2014 36962GZY3 3997 General Electric Capital Corp 09/16/2011 1,500,000.00 1,568,895.00 1,560,228.73 5.450 AA 1.200 349 01/15/2013 36967HBB2 3805 GE Capital FDIC Insured 11/03/2009 2,000,000.00 2,024,740.00 2,003,578.81 2.000 AA 1.720 240 09/28/2012 36967HAN7 3733 General Electric Cap FDIC Insu 04/30/2009 2,000,000.00 2,004,740.00 2,001,215.70 2.250 AA 1.701 40 03/12/2012 36967HAHO 3735 General Electric Cap FDIC Insu 04/30/2009 2,000,000.00 2,014,560.00 2,002,387.78 2.200 AA 1.850 128 06/08/2012 36186CBF9 3763 GMAC FDIC Insured 06/30/2009 2,000,000.00 2,035,560.00 1,997,291.02 2.200 AA 2.361 322 12/19/2012 36185JAA7 3804 GMAC FDIC Insured 11/03/2009 2,000,000.00 2,024,480.00 1,999,510.45 1.750 AA 1.784 272 10/30/2012 481247AKO 3738 JP Morgan Chase FDIC Insured 04/30/2009 2,000,000.00 2,015,400.00 2,003,099.27 2.200 AA 1.770 135 06/15/2012 49328CAA3 3770 Key Bank FDIC Insured 06/30/2009 2,000,000.00 2,022,520.00 2,008,628.05 3.200 AA 2.000 135 06/15/2012 91160HACI 3743 US Bank FDIC Insured 05/19/2009 1,000,000.00 1,004,860.00 1,000,392.42 1.800 AA 1.660 104 05/15/2012 Subtotal and Average 24,047,644.34 23,810,000.00 24,238,113.50 24,040,695.26 1.787 274 Total and Average 161,736,755.70 174,867,240.73 175,649,834.23 175,093,908.12 1.159 963 r� W Portfolio CITY AP Run Date:03/05/2012-10:38 PM(PRF PM2)7.3.0 City of HB Portfolio Management Page 1 Activity By Type January 1, 2012 through January 31, 2012 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Federal Agency Issues-Coupon 3134G3HV5 3919 Federal Home Loan Mort Corp 1.125 01/25/2012 5,000,000.00 0.00 3134G3FC9 3920 Federal Home Loan Mort Corp 1.000 01/09/2012 5,000,000.00 0.00 3134G3GN4 3921 Federal Home Loan Mort Corp 1.500 01/18/2012 7,000,000.00 0.00 3134G3KC3 3922 Federal Home Loan Mort Corp 1.000 01/27/2012 5,000,000.00 0.00 3136FRVX8 3891 Fed.Nat1 Mort.Assoc. 2.200 01/05/2012 0.00 5,000,000.00 3136FRD59 3893 Fed.Nat?Mort.Assoc. 1.125 01/25/2012 0.00 5,000,000.00 3136FTA58 3923 Fed.Nat?Mort.Assoc. 1.300 01/30/2012 5,000,000.00 0.00 Subtotal 27,000,000.00 10,000,000.00 120,996,072.13 Local Agency Investment Funds (Monthly Summary) SYS982 982 Laif City 0.385 28,815.04 0.00 SYS2206 2206 LAIF-Redevelopment Agency 0.382 4,624.96 4,624.96 Subtotal 33,440.00 4,624.96 30,057,240.73 Medium Term Notes Subtotal 24,040,695.26 Total 27,033,440.00 10,004,624.96 175,093,908.12 I---I �p Portfolio CITY AP w Run Date:03/05/2012-10:38 PM(PRF PM3)7.3.0 Report Ver.7.3.3b CD w Cagy of 1-113 -_j Portfolio Management Page 1 Activity Summary January 2011 through January 2012 Yield to Maturity Managed Number Number Month Number of Average 360 365 Pool of Investments of Investments Average Average End Year Securities Balance Equivalent Equivalent Rate Purchased Redeemed Term Days to Maturity January 2011 49 163,147,527.45 1.365 1.384 0.538 3 0 878 710 February 2011 49 165,474,398.24 1.367 1.386 0.512 0 0 889 701 March 2011 47 160,698,872.49 1.353 1.372 0.500 0 2 890 677 April 2011 44 157,507,665.91 1.292 1.309 0.588 0 3 845 647 May 2011 46 157,665,657.64 1242 1.259 0.413 4 2 869 679 June 2011 45 166,927,847.24 1.278 1.296 0.448 9 10 901 745 July 2011 43 183,784,185.57 1.269 1.286 0.381 3 5 940 784 August 2011 39 169,814,312.73 1.263 1.281 0.408 1 5 936 761 September 2011 37 152,819,771.51 1.189 1.205 0.378 6 8 932 776 October 2011 36 155,770,159.22 1.239 1.256 0.385 3 2 1,049 167 November 2011 34 148,389,001.57 1.265 1.283 0.401 0 2 1,075 156 December 2011 37 147,666,119.75 1.154 1.170 0.382 8 5 1,067 888 January 2012 40 161,736,755.70 1.143 1.159 0.385 5 2 1,138 963 Average 42 160,887,381.43 1.263% 1.281% 0.440 3 4 955 666 CO w fJ Portfolio CITY AP Run Date:03/05/2012-10:38 PM(PRF PMA)7.3.0 Report Ver.7.3.3b City of HB Portfolio Management Page 1 Interest Earnings Summary January 31, 2O12 January 31 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 146,112.82 644,923.93 Plus Accrued Interest at End of Period 283,085.64 283,085.64 Less Accrued Interest at Beginning of Period ( 283,369.10) ( 345,146.88) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 145,829.36 582,862.69 Adjusted by Premiums and Discounts -14,754.32 -58,944.48 Adjusted by Capital Gains or Losses 0.00 3,911.97 Earnings during Periods 131,075.04 527,830.18 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) x Interest Earned during Period 0.00 0.00 Adjusted by Premiums and Discounts 0.00 0.00 Adjusted by Capital Gains or Losses 0.00 0.00 w Earnings during Periods 0.00 0.00 Cash/Checking Accounts: Interest Collected 33,440.00 83,851.04 Plus Accrued Interest at End of Period 12,887.91 12,887.91 Less Accrued Interest at Beginning of Period ( 36,502.62) ( 53,473.66) Interest Earned during Period 9,825.29 43,265.29 Total Interest Earned during Period 155,654.65 626,127.98 Total Adjustments from Premiums and Discounts -14,754.32 -58,944.48 Total Capital Gains or Losses 0.00 3,911.97 Total Earnings during Period 140,900.33 571,095.47 Portfolio CITY CDAP Run Date:03/05/2012-10:33 PM(PRF PM6)3 0 W Report Ver.7.3.3b Oc CD w City of Huntington Beach Deferred Compensation Plan Summary Information as of December 31, 2011 Beginning Contributions Distributions/ Earnings Other Fees/ Ending Balance Transfers (change in Adjustments Balance (10-1-11) value) (12-31-11) ICMA Retirement Corporation (457 Plan) $28,092,781 $704,280 ($430,314) $1,553,700 ($2,166) $29,918,281 Nationwide Retirement Solutions(457 Plan) $53,803,528 $1,015,047 ($971,377) $2,363,121 ($799) $56,209,521 Total Deferred Compensation Plan Balances $81,896,309 $1,719,326 ($1,401,690) $3,916,821 ($2,964) $86,127,802 City of Huntington Beach Retiree Medical Trust Information as of December 31, 2011 Beginning Contributions Distributions/ Earnings Other Fees/ Ending Balance Transfers (change in Adjustments Balance (10-1-11) value) (12-31-11) z CalPERS Retiree Medical Trust Account $9,050,744 $49,223 $596,225 ($2,891) $9,693,301 w City of Huntington Beach Supplemental Pension Trust Information as of December 31, 2011 Beginning Interest/ Realized Gains/ Earnings Other Fees/ Ending Balance Dividends Losses (change in Adjustments Balance (12-1-11) value) (12-31-11) Supplemental Pension Trust Account $29,549,024 $231,403 $19,160 ($379,492) ($4,425) $29,415,670 State of California Pooled Money Investment Account Market Valuation 1/31/2012 g ��`a✓. ® � I 'S(I I I _ n�G.T;i+i,i��.312i�YI��i`��.;5�.�MS'C_S 3.TiS`��� ��1 United States Treasury: Bills $ 17,967,595,975.81 $ 17,993,956,500.00 NA Notes $ 15,132,482,081.42 $ 16,213,671,000.00 $ 25,755,404.00 Federal Agency: SBA $ 541,673,821.89 $ 541,902,227.27 $ 568,423.87 MBS-REMICs $ 388,518,712.44 $ 422,036,482.15 $ 1,848,494.21 Debentures $ 1,276,089,622.57 $ 1,276,820,750.00 $ 1,965,693.00 Debentures FR $ - $ - $ - Discount Notes $ 4,791,501,388.76 $ 4,798,620,000.00 NA GNMA $ 27,973.89 $ 28,260.80 $ 274.83 IBRD Debenture $ 399,921,857.92 $ 400,000,000.00 $ 255,556.00 IBRD Deb FR $ 300,000,000.00 $ 300,336,000.00 $ 52,406.67 CDs and YCDs FR $ 400,000,000.00 $ 400,000,000.00 $ 548,616.44 Bank Notes $ - $ - $ - CDs and YCDs $ 5,100,037,592.68 $ 5,097,479,004.83 $ 5,736,511.11 Commercial Paper $ 1,859,399,558.32 $ 1,859,823,727.77 NA Corporate: Bonds FR $ - $ - $ - Bonds $ - $ - $ - Repurchase Agreements $ - $ - $ - Reverse Repurchase $ - $ - $ - Time Deposits $ 4,173,640,000.00 $ 4,173,640,000.00 NA AB 55&GF Loans $ 13,812,964,514.82 $ 13,812,964,514,82 NA TOTAL $ 66,143,853,100.52 1 $ 66,291,278,467.64 $ 36,731,380.13 Fair Value Including Accrued Interest $ 66,328,009,847.77 Repurchase Agreements, Time Deposits,AB 55&General Fund loans,and Reverse Repurchase agreements are carried at portfolio book value(carrying cost). xB -35- Item 3. - 10 Statement of Cash Receipts and Disbursements and Summary of Cash by Fund Finance Department January 2012 Cash Receipts and Disbursements December 2011 January 2012 Receipts Property Tax Receipts $28,858,435 $29,350 Utility Tax Receipts (UUT) 1,655,123 1,669,131 Sales Tax Receipts 2,231,328 1,522,300 1/2 Cent Safety Sales Tax Receipts 171,765 159,208 Highway Users Tax Receipts (HUT) - 840,214 Transient Occupancy Tax Receipts (TOT) 385,337 347,078 Government Funds 49,633 34,162 Capital Funds 199,422 249,682 Debt Service Funds 2,012,753 1,245,699 Enterprise Funds 4,376,301 5,710,191 Fiduciary Funds 606,633 657,692 Special Revenue Funds 1,863,265 3,834,824 Internal Service Funds 10,792 3,518 All Other Receipts 2,630,411 20,896,215 Total Receipts $45,051,197 37,199,262 Disbursements Total Disbursements (20,320,982) (26,733,443) Net Change in Cash Flow $24,730,216 $10,465,819 Summary of Cash by Fund December 2011 January 2012 General Fund 58,063,320 65,338,374 Government Funds 859,395 871,796 Capital Funds 4,217,723 5,072,123 Debt Service Funds 9,015,974 3,208,561 Enterprise Funds 84,906,373 85,457,113 Fiduciary Funds 1,228,939 1,429,420 Internal Service Fund 1,367,749 1,293,432 Special Revenue Funds 20,401,869 27,955,927 General Ledger Cash Balances 180,061,342 190,626,746 *Total cash will differ from investment portfolio total due to outstanding checks and/or other timing differences. Note: Above information was obtained from the City's accounting system records. The above information includes receipts from maturing investments and payments for purchased investments in the city investment portfolio. This statement is prepared in compliance with the City's Charter. Statement of Cash Receipts&Disbursements Jan 2012.xlsx jl 2/15/2012 Item 3. - 11 HB -36-