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2017 02 15 IAB Special MeetingInvestment Advisory Board agendas and staff reports are now available on the City's web page: www.la-quinta.org INVESTMENT ADVISORY BOARD AGENDA CITY HALL CAUCUS ROOM 78-495 Calle Tampico, La Quinta SPECIAL MEETING ON WEDNESDAY, February 15, 2017 AT 4:00 P.M. CALL TO ORDER Roll Call: Board Members Johnson, Mills, Rosen, Turbow, and Chairperson Batavick PLEDGE OF ALLEGIANCE PUBLIC COMMENT At this time members of the public may address the Board on any matter not listed on the agenda. Please complete a "Request to Speak" form and limit your comments to three minutes. I z I a I:7u►_11I to]P [o] y_TC14►117_1 APPROVAL OF MINUTES 1. Approve Minutes of November 9, 2016 CONSENT CALENDAR 1. Receive and File the 2nd Quarter Fiscal Year 2016/2017 Treasury and Pooled Money Reports for October, November and December 2016 BUSINESS SESSION - None CORRESPONDENCE AND WRITTEN MATERIALS - None INVESTMENT ADVISORY BOARD AGENDA 1 February 15, 2017 BOARD MEMBER ITEMS — None DIRECTORS ITEMS — 1. Request for proposal of auditing services verbal update including timeline and process. ADJOURNMENT The next regular meeting of the Investment Advisory Board will be held on May 10, 2017 commencing at 4:00 p.m. at the La Quinta Study Session Room, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Jessica Delgado, Management Assistant, of the City of La Quinta, do hereby declare that the foregoing Agenda for the La Quinta Investment Advisory Board meeting was posted on the City's website, near the entrance to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on February 10, 2017. DATED: February 10, 2017 Jessica Delgado, Management Assistant City of La Quinta, California Public Notices The La Quinta Study Session Room is handicapped accessible. If special equipment is needed for the hearing impaired, please call the City Clerk's office at 777-7103, twenty-four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the IAB, arrangements should be made in advance by contacting the City Clerk's office at 777-7103. A one (1) week notice is required. If background material is to be presented to the Investment Advisory Board during an Investment Advisory Board meeting, please be advised that five (5) copies of all documents, exhibits, etc., must be supplied to the Management Assistant for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the Investment Advisory Board regarding any item(s) on this agenda will be made available for public inspection at the City Clerk's counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. INVESTMENT ADVISORY BOARD AGENDA 2 February 15, 2017 INVESTMENT ADVISORY BOARD MINUTES WEDNESDAY, NOVEMBER 9, 2016 CALL TO ORDER A regular meeting of the La Quinta Investment Advisory Board was called to order at 4:00 p.m. by Chairperson Batavick. PRESENT: Board Members Johnson, Turbow, and Chairperson Batavick ABSENT: None STAFF PRESENT: Finance Director Karla Campos, Accounting Manager Tara Robinson, Financial Services Analyst Rosemary Hallick, Management Assistant Jessica Delgado, and Deputy City Clerk Monika Radeva PLEDGE OF ALLEGIANCE Board Member Turbow led the audience in the pledge of allegiance. PUBLIC COMMENT - None At this time Finance Director Campos introduced Financial Services Analyst Rosemary Hallick and Management Assistant Jessica Delgado who joined the La Quinta team in October 2016. CONFIRMATION OF AGENDA - Confirmed APPROVAL OF MINUTES Motion - A motion was made and seconded by Board Members Johnson/Turbow to approve the Minutes of August 10, 2016 as submitted. Motion passed unanimously. CONSENT CALENDAR ITEMS 1. Receive and File the 4th Quarter Fiscal Year 2015/16 Treasury and Pooled Money Report (June 2016) Finance Director Campos presented the staff report, which is on file in the Finance Department. INVESTMENT ADVISORY MINUTES 1 NOVEMBER 9, 2016 Motion - A motion was made and seconded by Board Members Johnson/Turbow to receive and file the Fourth Quarter Fiscal Year 2015/16 Treasury and Pooled Money Reports for June 2016. Motion passed unanimously. 2. Receive and File the 1st Quarter Fiscal Year 2016/17 Treasury and Pooled Money Reports (July, August and September 2016) Finance Director Campos presented the staff report, which is on file in the Finance Department. Motion - A motion was made and seconded by Board Members Batavick/Turbow to receive and file the Fourth Quarter Fiscal Year 2015/16 Treasury and Pooled Money Reports for July, August and September 2016. BUSINESS SESSION - None. CORRESPONDENCE AND WRITTEN MATERIAL - None. BOARD MEMBERS' ITEMS 1. Board member stipends 2. Investment Advisory Board duties update DIRECTOR'S ITEMS 1. Citizen's Guide: City of La Quinta Budget Fiscal Year 2016/17 2. Request for Proposals for city-wide auditing services 3. Finance Director Campos said that based on the preliminary election results from the Registrar of Voters staff anticipates that Measure G will pass. She explained the 1% sales tax increase will go into effect on April 1 and any generated revenues will not show until June 2016. She noted that the State Board of Equalization will notify all La Quinta businesses, between March 1-31, 2016, to ensure they comply with the new tax rate. ADJOURNMENT There being no further business, it was moved and seconded by Board Members Turbow/Johnson to adjourn this meeting at 4:55 p.m. Motion passed unanimously. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California INVESTMENT ADVISORY MINUTES 2 NOVEMBER 9, 2016 CONSENT CALENDAR ITEM NO. 1 City of La Quinta INVESTMENT ADVISORY BOARD MEETING. February 15, 2017 STAFF REPORT AGENDA TITLE: TRANSMITTAL OF 2nd QUARTER FISCAL YEAR 2016/17 TREASURY AND POOLED MONEY REPORTS (OCTOBER, NOVEMBER and DECEMBER 2016) RECOMMENDATION Receive and file the 2nd quarter fiscal year (FY) 2016/17 Treasury and Pooled Money Reports (October, November, and December 2016). BACKGROUND/ANALYSIS Attached are the 2nd Quarter FY 2016/17 (October, November, and December 2016) Treasury Reports and Pooled Money Investment Reports. Treasurer's Commentary on 2nd Quarter FY 2016/17 For the 2nd quarter period of FY 2016/17 (October 1, 2016 through December 31, 2016) the City's total portfolio increased by $976,233 from $120.42 million to $121.39 million. The increase reflects revenue, expenditure, and investment activities during the second quarter of 2016/17. The laraer receipts in the 2nd Quarter of FY 2016/17 by month were: October 2016 General Fund $138,667 - Cable television franchise fees $442,200 - Sales Tax $570,651 - Transient Occupancy (Hotel) Tax Non -General Fund $480,500 - Supplemental street maintenance transfer $488,500 - Lighting and Landscape maintenance transfer $646,567 - Riverside County Library revenue November 2016 General Fund $79,716 - Communications franchise fees $589,700 - Sales Tax $873,608 - Transient Occupancy (Hotel) Tax November 2016, con't Non -General Fund $144,749 -Housing Authority federal rental assistance $163,028 - Housing Authority second trust deed repayments $273,371 - SilverRock golf green fees December 2016 General Fund $788,403 - Transient Occupancy (Hotel) Tax $832,392 - Sales Tax $1,929,410 - Property Tax Non -General Fund $212,200 - Information Technology internal service departmental charges $300,019 - SilverRock golf green fees $1,292,468 - Capital Improvement project funding from multiple funds The larger disbursements (not including monthly City payroll costs) in the 2nd Quarter of FY 2016/17 by month were: October 2016 General Fund $47,750 - Greater Palm Springs Convention Visitors Bureau membership $1,372,300 Transfers out for street, lighting & landscape maintenance, and quarterly CIP projects $1,406,934 - Riverside Sheriff police services Non -General Fund $59,691 - Property insurance premium $136,933 - Landmark - SilverRock management $387,193 - Construction costs relating to capital projects (traffic signal and pavement maintenance improvements; Madison Street median landscaping) November 2016 General Fund $22,509 - Marketing and tourism promotions $24,058 - Vacant land PM 10- dust control services $28,575 - Park Maintenance and landscaping Non -General Fund $102,265 - Design services for capital improvement projects $283,212 - Landmark - SilverRock management $301,232 - Construction costs relating to capital projects (turf conversions and parkway improvements, Eisenhower Drive pavement stabilization, and La Quinta park restrooms) December 2016 General Fund $113,724 - Legal fees $893,980 - Transfers out for capital improvement projects $1,178,394 - Riverside Sheriff police services Non -General Fund $89,350 - Quimby funds transferred out for capital improvement projects $111,272 - Landmark - SilverRock management $333,002 - Construction costs relating to capital projects (turf conversions and parkway improvements, pavement repairs, and park playground equipment) Investment Activity October 2016 A $5 million US Treasury, which matured on September 30, 2016 was reinvested as follows: o One new four year US Treasury Note was purchased at $2.5 million. o One new two year US Government Sponsored security was purchased at $2.5 million LAIF was increased by a $1 million transfer in and $55K in earned interest Bank fees in October were $1,816 and the sweep account earned $15 in interest income Average investment maturity in October was 384 days as compared to 370 days in September. November 2016 $500,000 was transferred from LAIF to the City's checking to cover operating expenses There were no new investments purchased in November. Bank fees for the month of November were $4,061 and the sweep account earned $25 in interest income Average investment maturity in November was 370 days. December 2016 A net $500,000 was transferred into LAIF from the City's checking account There were no new investments purchased in December. Bank fees for the month of December were $1,807 and the sweep account earned $10 in interest income. Average Investment maturity in December was 353 days. Portfolio Performance Overall during the second quarter of FY 2016/17 we have seen decreasing fair market values due in part to rising interest rates on securities. October 2016 - Overall portfolio market value decreased 0.13% in October. In addition, both the US Government Sponsored Enterprise Securities and US Treasuries markets are seeing decreases in fair market value due to rising rates. Accrued interest for October was $118,324. For year -over -year comparison, in October of 2015 the portfolio market value change was 0.07% with an average maturity of 458 days. November 2016 - The overall portfolio fair value in November decreased by 0.48%, again due to rising interest rates in the government securities markets. Accrued interest for November was $131,276. For year -over -year comparison, in November of 2015 the portfolio market value change was also negative 0.03% with an average maturity of 448 days. December 2016 - The overall portfolio fair value in December decreased by 0.57%. Accrued interest for December was $91,512. For year -over -year comparison, in December of 2015 the portfolio market value change was (0.13%) with an average maturity of 419 days. Other Notes The "Permissible Deposits and Investments" report shows the City to be over the allowable percentage of funds to be invested in mutual funds. However, these funds are bond proceeds with the fiscal agent and are subject to bond indentures, not the City's investment policy. Additionally, Successor Agency (SA) funds cannot be invested in long-term investments. Therefore, SA funds are only invested in LAIF. Looking Ahead The Treasurer follows a "buy and hold" investment policy. In the short term the Treasurer will invest in negotiable certificates of deposits and LAIF as needed. Longer term investments may include Government Sponsored Enterprise securities and U.S. Treasuries. All investments recognize the City's immediate and long-term cash flow needs. ALTERNATIVES - None Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Campos, Finance Director/City Treasurer Attachments: 1. Treasurer's Report for October 31, 2016 2. Treasurer's Report for November 30, 2016 3. Treasurer's Report for December 31, 2016 ta QWkr(V GEM ofthe DESERT — TO: La Quinta City Council FROM: Karla Campos, Finance Director/Treasurer SUBJECT: Treasurer's Report for October 31, 2016 DATE: February 10, 2017 Attached is the Treasurer's Report for the month ending October 31, 2016. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. The following table summarizes the changes in investment types for the month: Investment Balance 9/30/16 Purchased Notes Sold/Matured Ending 10/31/16 Change LAI F 26.975,128 1,055,307 28,030,435 1,055, 307 Interest bearing active bank deposit - - Certificates of Deposit 11,067,969 11,067,969 - US Treasuries 15,034,250 2,502,791 17,537,041 2,502,791 US Gov't Sponsored Enterprises 28,068,855 2,500,000 30,568,855 2,500,000 Commercial Paper - Corporate Notes Mutual Funds 31,276,511 156 31.276,667 156 Subtotal 112,422,713 6.058,254 L 118,480.967 6,058:254 Cash 7.9977053 1) & 2) (5,751,169)1 2,245,884 5,751,169 Total 120.419,766 1 6.058.254L_� (5.751,169j 120,726.850 1 307,085 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement, Bank of New York, and First Empire Monthly Custodian Report to determine the fair market value of investments at month end. 10 `Ozer T' Karla Campos Date Finance Director/Treasurer Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The cash account may reflect a negative balance. This negative balance will be offset with transfers from other investments before warrants are presented for payment by the payee at the bank. CITY OF LA QUINTA PERMISSIBLE DEPOSITS AND INVESTMENTS October 31, 2016 The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage compliance limits and bid process requirements: All maturities must be less than the maximum allowed. Type of Investments Checking/Savings and other time accounts Certificate of Deposits U.S. Treasury Bills, Strips, Notes and Bonds. Government Securities ( except any collateralized mortgage obligation (CMO) or structured note which contains embedded rate options): - Government National Mortgage Association (GNMA) - Federal Farm Credit (FFCB) - Federal Home Loan Bank Notes & Bonds (FHLB) - Federal National Mortgage Association (FNMA) - Federal Home Loan Mortgage Corporation FHLMC Prime Commercial Paper including Temporary Liquidity Guarantee Program TLGP Commerical Notes - Temporary Liquidity Guarantee Program TLGP Local Agency Investment Fund (LAIF) Local Agency Bonds/CA Local Agency Bond Obligations Professionally Managed Account Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolio consists only of US Agency Securities maintaining a par value per share of $1. * All Funds Maximum All Funds Actual % All Funds Over (Under) 85% 6.58%-78.42% 30% 9.11%-20.89% 100% 12.38% -87.62% 30% 23.11 % -6.89% 30,000,000 25,000,000 20,000,000 20,000,000 - 5,000,000 18,000,000 7,500,000 (30,000,000) (20,000,000) (2,000,000) 12,500,000 95,000,000 $ 30,500,000 64,500,000 15% 0.00% -15.00% 5,000,000 5:000:000 (5,000,000) 5,000,000 20% -20.00 % 10,000,000 10,000,000 10,000,000 10,000,000 50,000,000 28,030.435 23.08 (21,969,565) 30% 0.00% -30.00 % 10% 0.00% -10.00% 20% 25,75% 5.75% Investment A reements for bond proceeds and/or reserve funds. N/A 0.00% N/A Total 100.00% Surplus Maximum Surplus % Surplus Over (Under) Restrictions Maximum Maturity Credit Quality Exceptions 85% 0.97%-84.03% N/A FDIC Insured None 30% 9.56%-20.44% —$250,000 perinstitution 5 years FDIC Insured None 100% 13.12% -86.88% —$30,000,ars000 maturing in 3-5 e 3-5 years None 30% 24.49% -5.51 % Restricted to per -issuer limits below: 5 years None 30,000,000 25,000,000 20,000,000 20,000,000 - 5,000,000 18,000,000 7,500,000 (30,000,000) (20,000,000) (2,000,000) 12,500,000 $30.0 million $25.0 million $20.0 million $20.0 million 95,000,000 $ 30,500,000 $ 64,500,000 $95.0 million 15% 0.00% -15.00 % $5,000,000 per issuer 90 days Standard & Poors/Mood 's None A-1, P-1 20% 0.00% -20.00 % $5,000,000 per Issuer 3 ears at least Standard & Poors "AA" None 50,000,000 28,030,435 24.49% (21,969,565) $50,000,000 per account Current/ On Demand Unrated None 30% 0.00% -30.00 % $30,000,OOO per account 10 years 10 % 0.00% -10.00 % Requires approved RFP 3 years 20% 27.29 % 7.29 % Current/ On Demand Regulated by the SEC that consist only of US Treasury or GSE's Fiscal Agent/ Trust & Custody N/A 0.00% N/A None 100.00 NOTE: * Money Markets - trust and custody (fiscal agent) agency holdings are excluded from money market account limits of 20% of portfolio. City of La Quinta Summary of Investment Activities City, Successor Agency and Financing Authority October 31, 2016 Investments Purchased Name Type Principal Date Yield to Maturity US Treasury FHLB Bonds 2,500,000 10/26/2016 1.37% US Treasury Treasury Notes 2,502,791 10/24/2016 0.87% LAIF 1,000,000 10/24/2016 LAIF Interest 55,307 10/31 /2016 US Bank Mutual Fund Interest 156 Total Investments Purchased i 6,058,254 Investments Sold/Matured Name Type Principal Date Yield to Maturity LAIF US Treasury US Bank Total Investments Sold/Matured - Checking & Savings - Net Change 1 1 (5,751,169) Investment Change Prior Month Ending Balance 120,419,766 Plus : Investments Purchased 6,058,254 Less: Investments Sold Checking & Savings - Net Change 5,751,169 Month Ending Balance 120,726,850 120,726,850 City of La Quints Summary of Holdings City, Redevelopment Agency and Financing Authority October 31, 2016 City Cash & Investments Bank Accounts Name-Availabili Su Ius T e Interest Rate Book Value Unrealized Gain Loss Fair Value Bank Wells Fargo -Demand Yes Checking 0.00% 1,083,654 N/A $ 1,083,654 $ 1,307,958 Petry Cash- Demand No N/A N/A 1,700 N/A 1,700 1,700 First Empire Securities Yes Savings Accl CD Interest Earnings WA 47,775 N/A 47,775 47,775 Washington SL Apts.-Demand Yen Operating N/A 149,737 N/A 149,737 155,460 Washington SL Apts. - Demand Yes Taxes & Insurance Acd 0.00% 15,758 N/A 15,756 15.756 Washington S. Apts.- Demand Yes Security Deposit 0.25% 28.033 N/A 28,033 28,033 Washington SL Apts.- Demantl Yes Savings 0.07% 276,186 N/A 276,186 276,186 Washington Sl. Apts. - Demand Yes Money Market 0.00% - N/A - - Washin gtoo SLAnts. -Demand Y. Replacement Reserve CD 0.40% 600,000 N/A 600,000 600.284 Washington St. Apts. Petty Cash - Demand Yes N/A 0.00% 200 N/A 200 200 Wells Fargo/Housing - Demand Yes Checking 0.00% 42,843 N/A 42,843 47,793 Total - Bank Amounts 2,245,684 $ 2,245,884 $ 2,481,144 U. S. Government Sponsored Enterprises Custodian -Availabili Surplus T e/ Mood s Rating Dismuntl Rate Far value,, oslspna re,r,4anion mm13,159,184 Unrealized Gain Lass Fair Value Accrued Interest Days to Maturit Original Purchase Price Settlement Data First Call Date Maturity Data Original Days to MaturityMaturity Yield to Bankof New York- Demand Yes FNMA AAA 0.750% $ (5,124) $ 13,154,Ofi0 12,866 134 $ 13,000,000 06/17/13 03/14/14 03/14/17 1366 0.750% Bank of New York - Demand Yes FNMA AAA 0.750% 4.867,096 (1,896) 4,865,200 4,759 134 5,000,000 0S/30/13 03/14/14 03/14/17 1384 0.750% First Empire Securities - Demand Yes FHLMC AAA Sec. Identifier"""'SL 1.750% 5,053,250 (50,700) 5,002,550 29,653 1,337 5,000,000 06/29/15 06/29/17 O6/29/20 1827 1.740% Frsl Empire Securities - Demand Y. FHLB AAA Sec Identifier""^UQ 1.375% 2,500,000 (1,250) 2:498,7" 477 1,456 2:500:000 10/26/16 0416117 10/26/20 1461 1.370% First Empire Securities -Demand Yes FHLB AAA Sec ldentifer"""OZ 1.350% 2.487,925 (16,200) 2,471,725 281 1,640 2,500,000 04/28/16 01/28117 04/28/21 1826 1.360% First EmpireSecurities-Demand Yes FHLMC AAA Sec. Identifier '^"'V 1.250% 2.501,400 3,625 2,497,775 260 1,640 2'500,000 04/28/16 01/28/17 04/28/21 1826 1.250% Total - U.S. Government Securities 30,568,855 $ (78,795) $ 30,490,060 $ 48,297 $ 30,500,000 U. S. Treasury Notes Discount) ar as Unrealized Fair Accrued Days Original Settlement First Call Data Maturity Original Days Yield to Custodian -Availabili Surplus IssuertT a Rate n15,001tl,650 Gain Loss Value Interest to MaturityPurchase Price Date Date to MaturityMalufi First Empire Securities-Demantl Vas T-Note Security ltlentifier"""H78 0.500% 950 5,002,600 6,250 92 5,000,000 07/31/15 N/A 01/31/17 550 0.490% First Empire Securities - Demand Yes T-Note Security ldentifer^""L81 0.875% 2,502,791 (2,991) 2:499,800 421 714 2,500,000 10/24/16 N/A 10/15/18 721 0.870% Fill Empire Se curilies-Demand Yes T-Note Security Identifier"""UB4 1.000% 5,032.600 $ (36, 500) $ 4,996,100 $ 20,902 1,125 $ 5,000.000 06/03/15 N/A 11/30/19 1641 1.000% First Empire Securities -Demand Yes T-Note SecurityIdentifier"""S2] 1.125% 5,000,000 42,200 4,957.800 18,8012 1,703 5,000,000 07/18/16 N/A O6/30/21 1808 1.130% Total -U.S. Treasury 17,537,041 $ (80,741) $ 17,456,300 $ 46,373 $ 17,500,000 Cedicates of Deposit Custodian-Availabili Surplus Issuer/T a Yield Price ar osrsale rmdni,n a240,482 Unrealized Gain Loss Fair Value Accrued Interest Days to Maturit Original Purchase Price Settlement Date First Call Date Maturity Date Original Days to MaturityMaturit Yield to Washington Trust Ves Washington Trust CD 0.650% (406) 240,077 615 70 240,000 06/09/14 N/A 01/09/17 945 0.650% Customers Bank Ves Customers Bank CD 1.000% 240,910 (151) 240,758 1,02fi 211 240,000 05/28/14 N/A 05/30/17 1098 1.000% TCF National Bank Yes TCF National Bank 0.700% 248,412 50 248,481 713 217 248,000 O6/03/15 N/A 06/05/17 733 0.700% Towne Bank Yes Towne Bank 0.900% 248,414 69 248,484 862 224 248,000 06/12/15 N/A 06/12/17 731 0.900% Treverse City Yes Traverse City CO 1.100% 241,589 (89) 241,500 - 395 240,000 05/30/14 N/A 11/30/17 1280 1.100% lat National -Mayfield Yes 1st Notional -Mayfield 1.000% 248,86fi 112 248,977 136 406 248,000 06/11/15 N/A 12/11/17 914 1.000% G.E. Cap Bank CTF Dep Prgrm Yes G.E. Capital Bank CD 1.100% 240,730 134 240,864 1.005 409 240,000 12/14/12 WA 12/14/17 1826 1.100% Goldman Sachs Ves Goldman Sachs CD 1.150% 240,895 108. 241,003 1,013 414 240,000 12/14/12 N/A 12/19/17 1831 1.150% Independent Bank Yes Independent Bank 0.900% 248,908 154 249,061 116 438 248,000 06/12/15 N/A 01/12/18 945 0.900% Third Savings Bank & Loan Yes Third Savings Bank & Loan CD 1.250% 241,243 86 241,330 16 455 240,000 04/29/14 11 01/29/18 1111 1.250% Embassy National Yes Embassy National 1.000% 248,990 206 249,195 95 501 248,000 06/17/15 N/A 03/16/18 1003 1.000% Carolina Alliance Yes Carolina Alliance 1.000% 249,034 (444) 248,590 82 504 248,000 O6/19/15 N/A 03/19/18 1004 1.000% South Atlantic Yes South Atlantic 1,000% 248,196 377 248,573 149 525 248,000 O6/09/15 N/A 04/09/18 1035 1.000% Medallion Bank Yes Medallion Bank CD 1.350% 241,656 118 .1,774 53 541 240,000 04/25/14 N/A 04/26/18 1461 1.350% Berkshire Bank Yes Berkshire Bank CD 1.350% 242,438 (14) 242,424 9 546 240,000 04/30/14 N/A 04/30/18 1461 1.350% Cornerstone Commercial Bank Vas Cornerstone Commercial Bank CD 1.350% 241,656 125 241,781 9 546 240,000 04/30/14 WA 04/30/18 1461 1.350% Crescent Bank Yes Crescent Bank CD 1.300% 241,440 163 241,603 9 546 240,000 04/30/14 N/A 04/30/18 1461 1,300% Merrick Bank Yes Menick Bank CD 1.350% 242,496 (12) 242,484 195 555 240,000 05/09/14 N/A 05/09/18 1461 7.350% Compass Bank Ves Compass Bank 1.350% 249,143 734 249,877 1,358 582 248:000 06/05/15 N/A O6/05/18 1096 1.350% MB Financial Bank Vas MB Financial Bank 1.100% 249,195 258 249,453 194 582 248.000 06/05/15 N/A O6/05/18 1096 1.100% Mfr Tmde B Trust Yes Mfr Trade &Trust 1.200% 248,997 295 249,292 1,166 588 248,000 06/10/15 N/A O6/11118 1097 1.200% Regal Bank Ye s Regal Bank CD 1.400% 243,000 243,000 138 623 240.000 05/16/14 IN 07/16/18 1522 1.400% Amex Centurion Yes Amex Centurion Bank CD 1.900% 244,502 (197) 244,306 1,024 646 240,000 08/08/13 N/A 08/08/18 1826 1.900% Ci iBank Yes Citibank CD 1.900% 244,570 (367) 244,202 974 652 240:000 08/14/13 N/A 0B114118 1826 1.900% First Merchants Bank Yes First Merchants Bank CD 1.500% 244,037 (10) 244,027 10 729 240,000 04/30/14 N/A 10/30/18 1644 1.500% Morton Community Ye s Morton Community 1.250% 250,088 335 250,423 161 772 248,000 06/12/15 N/A 12/12/18 1279 1.250% Ally Bank Midvale Ves Ally Bank Midvale 1.700°0 243,163 182 243:346 1,442 784 240,000 12/24/15 N/A 12/24/18 1096 1.700% Fanners & March Yes Farmers & March 1.2010% 250,532 (1,166) 249,366 221 827 248.000 06/05/15 N/A 02/05/19 1341 1.250% Wells Fargo Bank Yes Wells Fargo Bank 1.200% 243,288 161 243,449 39 848 240,000 02/26/16 N/A 02/26/19 1096 1.200% Webster Bank Yes Webster Bank CD 1.800% 245,678 (151) 245,527 95 904 240:000 04/23/14 N/A 04/23/19 1826 1.800% BMW Bank Yes BMW Bank CD 1.900% 245,676 (151) 245:525 75 906 240,000 04/25/14 N/A 04/25/19 1826 1.900% Barclays Bank Yes Barclays Bank CD 1.900% 245,690 (154) 245,537 25 910 240:000 04/29/14 WA 04/29/19 1826 1.900% Ephrata Bank Yes Ephrata Bank CD 1.650% 245,786 (166) 245,621 11 911 240,000 04/30/14 N/A 04/30/19 1826 1.650% Synchrony G.E. Cap Retail Bank CD (Draper) Yes Synchreny G.E. Capital Retail Bank C 2.000% 245,630 (154) 245,477 2,380 113 240,000 05/02/14 N/A 05/02/19 1826 2.000% First Business Bank Yes First Business Bank CD 1.750% 245,786 (1,606) 244, 181 1,887 931 240,000 05/20/14 N/A 05/20/19 1826 1.750% Gulf Coast Bank Yes Gulf Coast Bank CD 1.750% 244,145 46 2 "go 138 931 240,000 05/19/14 N!A 0520/19 1827 1.750% Peapack -Goldstone Bank Y. Peapack -Goldstone Bank CD 1.800% 245,885 (137) 245,748 36 939 240,000 05/28/14 N/A 0528/19 1826 1.800% Solomon State Ves Solomon State 1.400% 251,544 1417 251685 257 946 248,000 06/04/15 N/A 06/04/19 1461 1.400% Connect One Yes Connect One 1.500% 251,541 141 251,683 265 947 248,000 06/05/15 N/A 06/05/19 1461 t.500% Riverwo0' Ves Rivenvood 1.400% 252,132 293 252,424 247 1,039 248,000 06/05/15 N/A 091 5/19 1553 1.400% EverBank Vas EverBank 1.700% 253,821 (1,647) 252,174 1,710 1.313 248,000 06/05/15 WA 0B/05/20 1827 1.700% Capital One Ves Capital One 1.900% 250,718 556 251,274 1,824 1,318 245,000 O6/10/15 N/A O6/10/20 1827 7.900% Bank Midwest Yes Bank Mid West 1.650% 253,922 (2,185) 251,737 213 1,320 248,000 06/12/16 N/A 06/12/20 1827 t.650% Comenity Capital Bank Yes Comenity Capital Bank 1.700% 242'362 1,022 243,384 101 1,575 240,000 02/22/16 N/A 02/22/21 1827 t.700% PrivaleBank&Trust Yes PrivateBank&Trust 1.500% 211,782 1,195 241,978 1,558 1,668 240,000 O12116 N/A O112612 1826 t.500% Total - Certificates of Deposit Average CD Yield 1.389% 1,,067,969 $ (2,t42) $ 11,065,827 $ 23,654 $ 1fi,941,000 City of La Quinta Summary of Holdings City, Redevelopment Agency and Financing Authority October 31, 2016 Local Agency Investment Fund Name - Availability Surplus Type Interest Rate Book Value Unrealizable Gain/(Loss Fair Value Accrued Interest Days to Maturity Actual Management Fees Charged Statutory Mgmt Fees Allowed LAIF - City -Demand Yes State Pool 0.65% 28,030,435 $ $ 28,030,435 N/A 1.31 % - Q/E 09/30/16 5.00% Total - State Pool 28,030,435 $ $ 28,030,435 Total City Investments Total City Cash & Investments Fiscal Agent Investments 87,204,300 1 $ (161,678)1 $ 87,042,621 1 $ 118,324 89,450,183 1 $ (161,678)1 $ 89,288,506 1 $ 118,324 Portfolio - Money Mrkt Mutual Funds Money Market Interest Book Unrealizable Market Accrued Days to Management Trustee - Availability Surplus Mutual Fund Rate Value Gain/(Loss Value Interest Maturity Fees Civic Center U.S.Bank - Project Yes 1st American 0.020% $ $ N/A 1 .40 % of Average Daily Civic Center U.S.Bank - Debt Svc Yes 1st American 0.020% N/A 1 1994 SA U.S. Bank -Debt Svc Yes 1st American 0.020% N/A 1 1998 SA U.S. Bank -PA 2 Debt Svc Yes 1 st American 0.020% N/A 1 1998 SA U.S. Bank -PA 1 Debt Svc Yes 1 st American 0.020% N/A 1 1996 FA Series Bond (310-10275) Yes 1st American 0.020% 2 2 N/A 1 2001 SA U.S. Bank -Debt Service Yes 1st American 0.020% - N/A 1 2004 Fin Auth Revenue Bonds Yes 1st American 0.020% N/A 1 2004 Fin Auth Housing Project Yes 1st American 0.020% N/A 1 2002 SA U.S. Bank - CIP Yes 1st American 0.020% N/A 1 2002 SA U.S. Bank - Debt Svc Yes 1 st American 0.020% N/A 1 2011 PA 2 Tax Allocation Bond (417-10273) Yes 1 st American 0.020% 2,420,287 2,420,287 N/A 1 2011 PA 2 Tax Allocation Bond (231-10283) Yes 1st American 0.020% 55 55 N/A 1 11 Financing Authority Debt Service (231-102 Yes 1 st American 0.020% 83 83 N/A 1 2011 PA 2 Tax Allocation Bond (231-10279) Yes 1 st American 0.020% 600,009 600,009 N/A 1 2011 Financing Authority Reserve (231-10281 Yes 1st American 0.020% 2,694,422 2,694,422 N/A 1 t011 PA 2 Taxable Revenue Bond (249-10272 Yes 1st American 0.020% 25,561,719 25,561,719 N/A 1 2011 SA 1 Debt Service Fund Yes 1 st American 0.020% - - N/A 1 2011 SA 2 Bond Proceeds Yes 1st American 0.020% - N/A 1 2013 Series A Refunding Bonds (231-10287) Yes 1st American 0.020% 7 7 N/A 1 2013 Series B Refunding Bonds (231-10288) Yes 1 st American 0.020% 2 2 N/A 1 114 Tax Allocation RefundingBonds 231-102 Yes 1 st American 0.020% 82 82 N/A 1 Subtotal - Mutual Fund 31,276,667 $ 31,276,667 1 $ Total Fiscal Agent Investments $ $ 31,276,667 1 $ 31,276,667 Grand Total Average Maturity 120,726,850 1 $ (161,678)1 $ 120,565,173 $ 118,324 384 Days I0.13% City of La Quinta Distribution of Cash & Investments & Balances October 31, 2016 Distribution of Cash & Investments city Totals General Fund 48,709,756 Gas Tax 611,280 Quimby Fund 5,231,458 AB 939 735,506 Infrastructure Fund 23,612 Developer Impact fees 4,053,305 Art in Public Places 582,443 Special Revenue 1,129,934 Interest Fund 166,075 Capital Project Fund 783,741 Equipment Replacement Fund 2,779,321 Information Technology Fund 632,344 Park Equipment & Facility 2,764,427 Landscape & Lighting Fund 281,529 SilverRock Resort (20,406) Trust & Agency Funds 174,670 Insurance Fund (207,205) Supplemental Pension Plan 127,651 Subtotal 68,559,441 Successor Agency Totals Project Area 1 Project Area 2 Capital Improvement Funds 6,597,378 4,519,082 11,116,460 Debt Service Funds - - - Successor Agency 3,699,941 3,699,941 25,561,719 25,561,719 Low & Moderate Income Funds Subtotal 1,5,859,037 4,519,082 40,378,119 Housing Authority Low & Moderate Income Funds 2,638,141 9,151,149 11,789,290 Subtotal 2,638,141 9,151,149 1 11,789,290 Financin Authority Project Funds 2 Debt Service Funds 01 Subtotal $ 2 Total $ 120,726,851 Cash Balances T e Jul 16 August September October November December January17 FebruaryMarch Aril May June Cash & Investments 2,979,402 2,648,142 7,997,053 2,245,884 State Pool 43,975,128 27,975,128 26,975,128 28,030,435 Interest bearing active bank deposit 0 0 0 - U.S. Treasury Bills/Notes 20,036.100 20,036,100 15,034,250 17,537,041 U.S. Government Sponsored Enterprises 28,068,855 28,068,855 28,068,855 30,568,855 Prime Commercial Paper 0 0 0 - Corporate Notes 0 0 0 - Certificates of Deposit 11,067,969 11,067,969 11,067,969 11,067,969 Mutual Funds 31 276 4 43,989 690 31,276,511 31,276,667 Tofal $ 137,403,758 $ 133,785,884 $ 120,419, 6 $ 120,726,850 T e Jul 15 August Se tember October November December January16 FebruaryMarch Aril Ma June Cash&Investments 12,827,791 1,629,972 3,401,315 1,230,978 2,393,262 2,292,938 2,035,248 2,064,948 7,707,457 3,894,881 4,080,406 2,714,180 State Pool 33,951'610 17,751,810 15,351,810 15,376,525 14,376,525 17,376,525 31,390,848 27,390,848 26,390,648 25,421,368 33,421,368 44,402,980 Interest bearing active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 17,537,041 19,916,150 19,916,150 U.S. Government Sponsored Enterprises 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 23,024,920 30,568,855 28,016,170 28,016,170 Prime Commercial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,931,756 10,931,756 10,931,756 10,931,526 10,931,526 Mutual Funds 31,274,730 43,458,172 31,896,605 31,275,023 31,275,183 31,275,338 31,275,497 36,768,919 31,327,011 31,275,833 31,275,990 31,276,150 Total $ 136,926,552 $ 121,712,175 $ 109,521,951 $ 106,754,747 $ 106,917,191 $ 109,817,022 $ 123,573,814 $ 125,095,541 $ 119,298,142 $ 119,629,734 $ 127,641,610 $ 137,257,156 T e Jul 14 August September October November December January15 FebruaryMarch Aril May June Cash & Investments 7,148,056 2,012,131 3,135,406 1,490,701 2,497,575 4,025,819 4,805,279 1,200,665 1,836,675 4,787,495 10,975,972 4,945,233 State Pool 49,040,985 35,540,985 32,540,984 29,567,293 27,367,293 27,367,293 35,885,948 29,885,948 28,885,948 28,905,531 48,905,531 48,923,919 Interest bearing active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 0 0 0 0 0 0 0 0 0 0 0 4,890,650 U.S. Government Sponsored Enterprises 37,959,046 37,960,372 37,961,656 37,962,983 37,964,267 37,965,593 37,966,920 37,968,118 37,969,445 37,970,729 17,972,055 28,022,920 Prime Commercial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6:480,000 6,480,000 6,480,000 10,933,151 Mutual Funds 31,302,066 42,911,657 31:879,618 31,273,469 31:273:629 31:273:784 31,273,944 37,298,633 31,340,838 31,274,260 31,274, 415 31,274,574 Total $ 131,930,153 $ 124,905,145 $ 111,997,664 $ 106,774,446 $ 105,582,764 $ 107,112,489 $ 116,412,091 $ 112,833,364 $ 106,612,906 $ 109,418,015 $ 115,607,973 $ 128,990,447 Comparative Rates of Interest October 31, 2016 of La Quinta Year Month Annualized Earnings Average Maturity (days) Treasury Bills/Note Commercial Paper Three Month Non -Financial LAIF Rate Pooled Cash Fiscal A ent Overall Three Month ISix Month One Year Two Year FY 13114 July 2013 0.28% 0.07% 0.21% 336 0.03% 0.07% 0.12% 0.25% 0.11% 0.27% Aug 2013 0.28% 0.06% 0.21% 303 0.03% 0.06% 0.07% 0.14% 0.09% 0.27% Sept 2013 0.30% 0.07% 0.23% 321 0.01% 0.04% 0.01% 0.25% 0.08% 0.26% Oct 2013 0.48% 0.06% 0.31% 427 0.05% 0.08% 0.16% 0.25% 0.11% 0.27% Nov 2013 0.49% 0.06% 0.31% 444 0.05% 0.08% 0.16% 0.25% 0.09% 0.26% Dec 2013 0.49% 0.05% 0.31% 396 0.07% 0.09% 0.14% 0.25% 0.09% 0.26% Jan 2014 0.44% 0.05% 0.32% 381 0.04% 0.06% 0.13% 0.38% 0.09% 0.24% Feb 2014 0.44% 0.03% 0.30% 357 0.05% 0.08% 0.12% 0.25% 0.10% 0.24% Mar 2014 0.44% 0.02% 0.30% 352 0.05% 0.07% 0.12% 0.38% 0.10% 0.24% Apr 2014 0.47% 0.02% 0.33% 368 0.02% 0.05% 0.11% 0.45% 0.10% 0.23% May 2014 0.49% 0.02% 0.35% 373 0.04% 0.06% 0.10% 0.39% 0.10% 0.23% June 2014 0.44% 0.02% 0.33% 310 0.04% 0.07% 0.11% 0.50% 0.10% 0.23% FY 14/15 July 2014 0.45% 0.02% 0.34% 305 0.03% 0.06% 0.11% 0.50% 0.10% 0.24% Aug 2014 0.49% 0.02% 0.36% 313 0.03% 0.05% 0.11% 0.50% 0.11% 0.26% Sept 2014 0.51% 0.02% 0.36% 325 0.02% 0.04% 0.12% 0.50% 0.10% 0.25% Oct 2014 0.50% 0.02% 0.36% 323 0.02% 0.06% 0.10% 0.38% 0.10% 0.26% Nov 2014 0.52% 0.02% 0.37% 317 0.03% 0.08% 0.14% 0.50% 0.10% 0.26% Dec 2014 0.52% 0.02% 0.37% 304 0.02% 0.07% 0.18% 0.50% 0.13% 0.27% Jan 2015 0.49% 0.02% 0.36% 268 0.02% 0.07% 0.21% 0.50% 0.12% 0.26% Feb 2015 0.51% 0.02% 0.36% 269 0.02% 0.08% 0.21% 0.50% 0.12% 0.27% Mar 2015 0.52% 0.02% 0.37% 261 0.04% 0.14% 0.27% 0.50% 0.11% 0.28% Apr 2015 0.52% 0.02% 0.37% 248 0.02% 0.07% 0.25% 0.50% 0.10% 0.28% May 2015 0.50% 0.02% 0.35% 388 0.01% 0.07% 0.26% 0.63% 0.12% 0.29% June 2015 0.70% 0.02% 0.53% 378 0.02% 0.09% 0.30% 0.63% 0.14% 0.30% FY 15/16 July 2015 0.79% 0.02% 0.57% 417 0.08% 0.17% 0.34% 0.63% 0.13% 0.32% Aug 2015 0.91% 0.02% 0.60% 467 0.10% 0.28% 0.42% 0.63% 0.18% 0.33% Sept 2015 0.94% 0.02% 0.62% 470 0.02% 0.11% 0.45% 0.63% 0.22% 0.34% Oct 2015 0.94% 0.02% 0.62% 458 0.11% 0.29% 0.21% 0.63% 0.18% 0.36% Nov 2015 0.95% 0.02% 0.62% 448 0.22% 0.42% 0.51% 0.88% 0.20% 0.37% Dec 2015 0.92% 0.02% 0.61% 419 0.22% 0.51% 0.69% 0.88% 0.36% 0.40% Jan 2016 0.81 % 0.02% 0.57% 351 0.36% 0.47% 0.69% 0.75% 0.47% 0.45% Feb 2016 0.90% 0.02% 0.62% 358 0.33% 0.49% 0.67% 0.75% 0.47% 0.47% Mar 2016 0.88% 0.02% 0.60% 314 0.24% 0.39% 0.67% 0.88% 0.47% 0.51% Apr 2016 0.82% 0.02% 0.61% 353 0.22% 0.40% 0.62% 0.75% 0.48% 0.53% May 2016 0.80% 0.02% 0.60% 319 0.29% 0.44% 0.70% 0.88% 0.48% 0.55% June 2016 0.77% 0.02% 0.59% 266 0.27% 0.35% 0.57% 0.63% 0.49% 0.58% FY16/17 July 2016 0.81% 0.02% 0.63% 323 0.28% 0.38% 0.50% 0.67% 0.46% 0.59% Aug 2016 0.87% 0.02% 0.64% 347 0.33% 0.47% 0.61% 0.80% 0.50% 0.61% Sept 2016 0.90% 0.02% 0.66% 355 0.29% 0.45% 0.59% 0.77% 0.53% 0.63% Oct 2016 0.93% 0.02% 0.69% 384 0.34% 0.51% 0.66% 0.86% 0.58% 0.65% City of La Quinta Chart of Interest Rates May 2016 through October 2016 1.00% 0.90% 0.80% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% May'16 Jun'16 Jul'16 Aug'16 Sept'16 Oct'16 Months -7—A... d edE—,— d Pooled Cash lnvesl... ts (Annualized Ea 1—of Fl—i .Agent lrveslme Ms - A111di-E—ln dA111mes—ts . Elx Month TI-1, Bill Rafe —TWO Y—Trea 1NN Rafe tev 0914(ra — GE;M oftba DESERT — TO: La Quinta City Council FROM: Karla Campos, Finance Director/Treasurer SUBJECT: Treasurer's Report for November 30, 2016 DATE: February 10, 2017 Attached is the Treasurer's Report for the month ending November 30, 2016. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. The following table summarizes the changes in investment types for the month: Investment Balance 10/31/16 Purchased Notes Sold/Matured Ending 11/30/16 Change LAIF 28,030,435 (500,000) 27,530,435 (500,000) Interest bearing active bank deposit - - Certificates of Deposit 11,067,969 11,067,969 - US Treasuries 17,537,041 17,537,041 US Gov't Sponsored Enterprises 30,568,855 30,568,855 - Commercial Paper - - Corporate Notes Mutual Funds 31,276,667 160 1 31,276,827 160 Subtotal 118,480,967 500,000 117,981,127 499,840 Cash 2,245,884 1 & 2) 1,105,769 3,351,652 1.105,769 Total 120.726,850 605.769 121,332.779 605,929 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement, Bank of New York, and First Empire Monthly Custodian Report to determine the fair market value of investments at month end. *aa�� cp -1D -4= 7- Karla Campos Date Finance Director/Treasurer Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The cash account may reflect a negative balance. This negative balance will be offset with transfers from other investments before warrants are presented for payment by the payee at the bank. CITY OF LA QUINTA PERMISSIBLE DEPOSITS AND INVESTMENTS November 30, 2016 The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage compliance limits and bid process requirements: All maturities must be less than the maximum allowed. Type of Investments Checking/Savings and other time accounts Certificate of Deposits U.S. Treasury Bills, Strips, Notes and Bonds. Government Securities ( except any collateralized mortgage obligation (CMO) or structured note which contains embedded rate o bons : - Government National Mortgage Association (GNMA) - Federal Farm Credit (FFCB) - Federal Home Loan Bank Notes & Bonds (FHLB) - Federal National Mortgage Association (FNMA) - Federal Home Loan Mort a e Co oration FHLMC Prime Commercial Paper including Temporary Liquidity Guarantee Pro ram TLGP Commerical Notes - Temporary Liquidity Guarantee Program TLGP Local Agency Investment Fund (LAIF) Local Agency Bonds/CA Local Agency Bond Obligations Professionally Managed Account Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolio consists only of US Agency Securities maintaining a par value per share of $1.' All Funds All Funds All Funds Maximum Actual % Over Under 85% 2,76%-82.24% 30% 9.12%-20.88% 100% 14.45%-85.55% 30% 25.19% 4.81% 30,000,000 25,000,000 20,000,000 20 000,000 - 2,500,000 18,000,000 7,500,000 (30,000,000) (22,500,000) (2,000,000) 12,500,000 95,000,000 $ 28,000,000 67,000,000 15% 0.00%EEi,ioi 5,000,000 5,000,000 20 % 0.00% 1 -20.00 % 10,000,"00 10,000,000 10,000,00 10,000,000 50,000,000 27,530,435 (22,469,565) 22.69% 30% 0.00%-30.00% 10% 0.00%-10.00% 20 % 25.78 % 5.78% Investment Agreements for bond proceeds and/or reserve funds. N/A 0.00% N/A Total 100.00 % Surplus Surplus Surplus Maximum % Over Under Maximum Restrictions Maturity Credit Quality Exceptions 85% 1.01%-83.99% N/A FDIC Insured None 30% 9.81%-20.19% <-$250,000 per institution 5 years FDIC Insured None 100 % 11.21 % -88.79 % —$30,000,000 maturing in 3-5 years 3-5 years None 30% 25.16% 4.84% Restricted to per -issuer limits below: 5 years None 30,000,000 25,000,000 20,000,000 20,000,000 - 2,500,000 18,000,000 7,500,000 (30,000,000) (22,500,000) (2,000,000) 12,500,000 $30.0 million $25.0 million $20.0 million $20.0 million 95,000,000 1 $ 28,000 000 $ 67,000,000 $95.0 million 15 % 0.00% -15.00% $5 000,000 per issuer 90 da s Standard & Poom/Mood 's None A-1, P-1 20 % 0.00% -20.00 % $5,000,000 per Issuer 3 years at least Standard & Poors "AA" None 50,000,000 27,530,435 (22,469,565) 24.70 % $50,000,000 per account Current/ Unrated None On Demand 30% 0.00% -30.00 % $30,000,000 per account I 10 years 10 % 0,00%-10.00% Requires approved RFP 3 years 20% 28.03% 8.03 % Current/ On Demand Regulated by the SEC that consist only of US Treasury or GSE's Fiscal Agent/ Trust & Custody N/A 0.00% N/A None 100.00 % NOTE:' Money Markets - trust and custody (fiscal agent) agency holdings are excluded from money market account limits of 20 % of portfolio. City of La Quinta Summary of Investment Activities City, Successor Agency and Financing Authority November 30, 2016 Investments Purchased Name Type Principal Date Yield to Maturity US Treasury FHLB Bonds US Treasury Treasury Notes LAIF LAIF Interest US Bank Mutual Fund Interest 160 Total Investments Purchased 160 Investments Sold/Matured Name Type Principal Date Yield to Maturity LAIF (500,000) 11/16/2016 US Treasury US Bank Total Investments Sold/Matured (500,000) Checking & Savings - Net Change 1 1 1,105,769 Investment Change Prior Month Ending Balance 120,726,850 Plus : Investments Purchased 160 Less: Investments Sold (500,000) Checking & Savings - Net Change 1,105,769 Month Ending Balance 121,332,779 City of La Quint, Summary of Holdings City, Redevelopment Agency and Financing Authority November 30, 2016 City Cash & Investments Bank Accounts Name - Availabili Surplus Type Interest Rate Book Value Unrealized Gain Loss Fair Value Bank Wells Fargo -Demand Yes Clacking 0,00% 2,223,046 N/A $ 2223,046 $ 2,280.460 Petty Cash - Demand No N/A WA 1,700 WA 1.700 1,700 First Empire Securities Yes Savings Acci CD Interest Earnings N/A 0 N/A 0 0 Washington St. Apts. - Demand Yes Operating N/A 156,356 N/A 156,35' 160,832 Washington St. Apt Demand Yes Texas &Insurance Acct 0.00% 1 7, 856 N/A 17,856 17,856 Washington St. Apts.-Demand Yes Security Deposit 0.25% 28,134 NIA 28.134 28.134 Washington St. Apts.-Demand Yes Savings 0.07% 261,599 N/A 281,599 281,599 Washington St.Apts.- Demand Yes Money Market 0.00% - N/A - - WashingtonSt.Ants.- Demand Yes Replacement Reserve CD 0.40% 600,000 N/A 600,000 600,545 Washington St. Apts. Petty Cash - Demand Yes N/A 0.00 % 200 N/A 200 200 W,11S o/Housin -Demand Yes Checking 0.00% 42,762 N/A 42,762 49,056 Total -Bank Accounts 3,351,652 $ 3,351,652 1 $ 3,420,362 U. S. Govemmenl Sp re Enterprises Custodian -Availabili Surplus T e/ Mood s RatingRate DisoountJ Fair Value atosl3als rea yaaraddmoa Unrealized Gain Loss Fair Value Accrued Interest Days to MaturityPurchase Original Price Settlement Data First Call Dale Maturity Date Original Days to MaturityYield Estimated Bank of New York - Demand Y. FNMA AAA 0.750% 13,159,184 $ (14,716) $ 13,144:46a 21,079 104 $ 13,000,000 06/17/13 03/14/14 03/14/17 1366 0.750% Bank of New York - Demand Ye s FNMA AAA a750% 4,867,096 (5,444) 4,861,652 7,799 t04 5,000.000 05/30/13 03/14/14 03/14/17 1384 0.750% First Empire Securities-Demantl Yes FHLMC AAA Sec. Identifier 1.750% 5,053,250 (130,450) 4,922,800 36,701 1,307 5,000,000 06/29/15 06/29/17 06/29/20 1627 1.770% First Empire Securities-Demantl Yes FHLB AAA Sec Identifier"""UQ 1,375% 2,500,000 (50,300) 2,449,]00 3,247 1,426 2,500,000 10/26/16 04/26/17 10/26120 1461 1.400% First Empire Securhies-Demand Is FHLB AAA Sec ltlentifer^^""OZ 1.350% 2,487,925 (70,675) 2,417,250 3,000 1,610 2,500,000 04/28/i6 01/28/17 04/28121 1826 1.390% First Empire Securities -Demand Yes FHLMC AAA Sec. Identifier """"V 1.250% 2,501,400 34,025 2,467,375 2,778 1,610 2,500,000 04/2tt_6 01/28/17 04/28/21 1826 1.260% Total- U.S. Government Severities 30,568,855 $ (305,610) $ 30,263.245 $ 74,601 $ 30500,000 U. S. Treasury Notes Discount) a,r aic&sons Unrealized Fair Accrued Days Original Settlement First Call DateL01Dat Original DaysL�AW% Custodian-Availabili) Sur lus Iasuer/T a Rate nt Gain Loss Value Interest to Maturi) Purchase Price Data to Maturi) First Empire Securities -Demand Y. T-Note Sewrityldenti8er"" 1178 0.500% 5,001,650 (51) 1001,150 8,288 62 5,000,000 07/31/15 N/A 550 First Empire Securities-Demand Ves T-Note Security Identifier"""""L81 0.875% 2,502,791 (13,241) 2,489,550 2.764 684 2:500,000 t0/24/16 NIA 721 O6/03/15 First Empire Securities -Demand Ves T-Note Security ldenlfer""""'UB4 1.000% 5,032,600 $ (90,600) $ 4,942,000 $ - 1,095 $ 5,000,000 N/A 1641 First Em ire Securtlies-Demantl Ves T-Note Securi ltlentifer"""527 1.125% 5,000,000 153,100 4,846,900 23,387 1,673 5:000,000 0]/18/16 N/A 1808 Total-U.S. Treasury 17,537,041 $ 257,441 $ 17,279,600 $ 34,439 $ 17,500,000 Certicates of Deposit Custodian - Availabili Sur lus Issuer/T a Yield Price Feirvelueaiowswis _r'r adrm Unrealized Gain Loss Fair Value Auruetl Interest Days to Maluri Original Purchase Price Settlement Data First Call Dale Maturity Data Original Days to MaturityYield Estimated Washington Trust Yes Washington fla CD 0.650% 240,482 (415) 240,097 744 40 240;000 0 109/14 N/A 01/09/17 945 0.640% Customers Bank Y. Customers Bank CD 1.000% 240,910 (312) 240,598 13 781 240,000 0S/28/14 WA OS/90/17 1098 0.990% TCF National Bank Ves TCF National Bank 0.700% 248,412 (77) 248,335 856 187 248,000 06/03/15 N/A 06/05/17 733 0.690% Towne Bank Yes Towne Bank 0.900% 248,414 (62) 248,352 1,046 194 246,000 O6/7Z15 N/A O6/iZi7 731 0.890% Treverse City Yes Traverse City CD 1.100% 241,589 (274) 241,3t5 - 365 240,000 OS/30/14 N/A 11/30/17 1280 1.090% tat National -Mayfield Yes 1st National -Mayfield 1.000% 2418 6 (47) 248,878 129 376 248,000 06/11/15 N/A i2/11/17 914 0.990% G.E. Cap Bank CTF Dep Prgnn Yes G.E. Capital Bank CD 1.100% 240:730 (12) 240,718 1,222 379 240,000 12/14/12 N/A 1Z14/17 1826 1.090% Goldman Sachs Ves Goldman Sachs CD 1.150% 240,895 (53) 240,842 1,240 384 240:000 12/14/12 N/A 12/19117 1831 1.140% Independent Bank Yes Independent Bank 0.900% 248,908 (27) 248.880 110 408 248,000 06/12/15 N/A 01/1Z18 945 0.890% Third Savings Bank & Loan Ye s Third Savings Bank & Loan CD 1.250% 241,243 If 06) 241.138 263 425 240,000 04/29/14 N/A 01/29/18 1371 1.240% Embassy National Ves Embassy National 1.000% 248,990 (20) 248,970 88 471 248,000 06/17/15 N/A 03/16/18 1003 0.990% Carolina Alliance Ves Carolina Alliance 1.000% 249,034 (640) 248,394 75 474 248,000 06/19/15 N/A 03/19/18 1004 0.990% South Atlantic Ye s South Atlantic 1.000% 248, 196 166 248,362 143 495 248,000 06/09/15 N/A 04/09/18 1035 0.990% Medallion Bank Y. Medallion Bank CD 1.350% 241,656 (163) 241,493 44 511 240,000 04/25/14 N/A 04/25/18 1461 1.340% Berkshire Bank Y. Berkshire Bank CD 1,360% 242,438 (334) 242,105 516 240:000 04/30/14 N/A 04130/18 1461 1.330% Cornerstone Commercial Bank Ye s Cornerstone Commercial Bank CD 1.350% 241,656 (161) 24t,495 - 516 240,000 04/30/14 N/A 04/30/18 1461 1.340% Crescent Bank Yes Crescent Bank CD 1.300% 241,440 (113) 241.327 - 516 240,000 04/30/14 N/A 0410/18 1461 1.290% Merrick Bank Yes Merrick Bank CD 1.350% 242:41 (341) 242, 155 86 525 240,000 05/09/14 WA 05/09/18 1461 1.330% Compass Bank Yes Compass Bank 1.350% 249143 409 249.562 1,633 552 248,000 06/05/15 WA 06/O5/18 1096 1.340% MB Financial Bank Yes MB Financial Bank 1.100% 249, 195 (47) 249.148 187 552 248,000 06/05/15 N/A O6/05/18 1096 1.090% Mfr Trade &Trust Yes Mfr Trade &Trust 1.200% 248,997 (5) 248,992 1,411 558 248,000 06/10/15 WA O6/11118 1097 1.190% Regal Bank Y. Regal Bank CD 1,400% 243:000 (406) 242,594 129 593 240:000 05/16/14 N/A 07/16/18 1522 1.380% Amex Centurion Ves Amex Centurion Bank CD 1.900% 244,502 (672) 243,830 1,399 616 240,000 08/08/13 N/A 081 8118 1826 1.870% CitiBank Ye s Citibank CD 1.900% 244,070 (842) 243,727 1,349 622 240000 08/14/13 N/A 08/14118 1826 1.870% First Merchants Bank Yes First Merchants Bank CD 1.500% 244,037 (550) 243,487 306 699 240,000 04/30/14 N/A 101 0118 1644 1 470% Morton Community Yes Morton Community 1.250% 250:088 (196) 249,892 153 742 246,000 06/12/15 N/A iZ1Z18 1279 1.240% Ally Bank Midvale Yes. Ally Bank Midvale 1.700% 243,163 (355) 242,808 1,777 754 240:000 12/24/15 N/A 12124118 1096 1.680% Farmers & March Ves Fanners & March 1.250% 250,532 (1,6, 7) 248,915 212 797 248,000 06/05/15 N/A 02/05119 1341 1.240% Wells Fargo Bank Yes Wells Fargo Bank 1.200% 243,288 (334) 242,954 32 818 240,000 02/26/16 N/A 021 6/19 1096 1.180% Webster Bank Yes Webster Bank CD 1.800% 245:678 (646) 245,,33 450 874 240,000 04/23/14 N/A 04/23/19 1826 1.760% BMW Bank Yes BMW Bank CD 1.900% 245,676 (643) 245.033 450 876 240:000 04/25/14 N/A 04/25/19 1826 1.8fi0% Barclays Bank Yes Barclays Bank CD 1.900% 245,690 (641) 245,050 400 880 240,000 0429114 N/A 04/29/19 1826 1.860% Ephrata Bank Ves Ephrata Bank CID 1.650% 145,716 (658) 245:111 336 881 240:000 04/30/14 N/A 04/30119 1826 1.610% Synchrony G.E. Cap Retail Bank CO (Draper) Ves Synchrony G.E. Capital Retail Bank C 2.000% 245,630 (636) 244,994 355 883 240,000 05/OZ14 N/A 05/02119 1826 1.950% First Business Bank Ves First Business Bank CD 1.750% 245,786 '2,1164) 243.722 115 901 240,000 0520/14 WA O5/20/19 1826 1.720% Gulf Coast Bank Yes Gulf Coast Bank CD 1.750% 244,145 (418) 243,727 127 901 240,000 05/19/14 N/A 05/20/19 1627 1.720% Peapack Goldstone Bank Yes Peapack Goldstone Bank CD 1.800% 245,885 (653) 245:232 24 909 240,000 05/28/14 N/A 05/281 9 1826 1.760% Soloman State Yes Solomon State 1.400% 251,544 (327) 251,217 247 916 248,000 06/04/15 N/A 06/04/19 1461 1.380% Connect One Ye s Connect One 1.500% 251,541 (327) 251.214 255 917 248.000 06/05/15 N/A 0615119 1461 1.480% Rivervood Yes Riverwood 1.400% 252,132 (255) 251,876 238 1,009 246,000 06/05/15 N/A 09/O5119 1553 1.370% EverBank Yes E-Sank 1.700% 253,821 (2,237) 251,584 2,056 1,283 248,000 06/05/15 N/A OW005120 1827 1.6]0% Capital One Y. Capital One 1.900% 250,718 (76) 250,fi42 2,206 1,288 245,000 06/10/15 N/A 06/10/20 1827 1.850% Bank Mid West Yes Bank Mid West 1.650% 253,922 (2,770) 251,152 202 1,290 2458,000 06/12/15 N/A O6/12120 1827 1.620% Comenity Capital Bank Yes Comenity Capital Bank 1.700% 242,362 442 242,803 69 1,545 240,000 O2/22/16 N/A O2J22121 1827 1,680% PH --,Bank & Tmsl Yes P . taS.nk & Trust 1.500% 240,782 677 241,459 39 1,638 240,000 05/26/16 N/A 05/26/21 1826 1:490% Total-CerBficates of Deposit Average CD Yield 1.389% 11,067;969 $ (18;835) $ 11,049,134 $ 22,236 $ 70,941,000 City of La Quinta Summary of Holdings City, Redevelopment Agency and Financing Authority November 30, 2016 Local Agency Investment Fund Name - Availability Surplus Type Interest Rate Book Value Unrealizable Gain/(Loss Fair Value Accrued Interest Days to Maturity Actual Management Fees Charged Statutory Mgmt Fees Allowed LAIF - City -Demand Yes State Pool 0.68% 27,530,435 $ $ 27,530,435 N/A 1.31% - Q/E 09/30/16 5.00% Total - State Pool 27,530,435 $ $ 27,530,435 Total City Investments Total City Cash & Investments Fiscal Agent Investments 86,704,300 1 $ (581,886)1 $ 86,122,413 1 $ 131,276 90,055,952 1 $ (581,886)1 $ 89,474,067 1 $ 131,276 Portfolio - Money Mrkt Mutual Funds Money Market Interest Book Unrealizable Market Accrued Days to Management Trustee - Availability Surplus Mutual Fund Rate Value Gain/(Loss Value Interest Maturity Fees Civic Center U.S.Bank - Project Yes 1 st American 0.020% $ $ N/A 1 .40% of Average Daily Civic Center U.S.Bank - Debt Svc Yes 1 st American 0.020% N/A 1 1994 SA U.S. Bank -Debt Svc Yes 1st American 0.020% N/A 1 1998 SA U.S. Bank -PA 2 Debt Svc Yes 1st American 0.020% N/A 1 1998 SA U.S. Bank -PA 1 Debt Svc Yes 1 st American 0.020% N/A 1 1996 FA Series Bond (310-10275) Yes 1 st American 0.020% 2 2 N/A 1 2001 SA U.S. Bank -Debt Service Yes 1 st American 0.020% - N/A 1 2004 Fin Auth Revenue Bonds Yes 1 st American 0.020% N/A 1 2004 Fin Auth Housing Project Yes 1 st American 0.020% N/A 1 2002 SA U.S. Bank - CIP Yes 1 st American 0.020% N/A 1 2002 SA U.S. Bank - Debt Svc Yes 1 st American 0.020% N/A 1 2011 PA 2 Tax Allocation Bond (417-10273) Yes 1st American 0.020% 2,420,287 2,420,287 N/A 1 2011 PA 2 Tax Allocation Bond (231-10283) Yes 1 st American 0.020% 68 68 N/A 1 11 Financing Authority Debt Service (231-1021 Yes 1st American 0.020% 83 83 N/A 1 2011 PA 2 Tax Allocation Bond (231-10279) Yes 1 st American 0.020% 600,012 600,012 N/A 1 2011 Financing Authority Reserve (231-10281 Yes 1 st American 0.020% 2,694,436 2,694,436 N/A 1 2011 PA 2 Taxable Revenue Bond (249-10273 Yes 1st American 0.020% 25,561,850 25,561,850 N/A 1 2011 SA 1 Debt Service Fund Yes 1 st American 0.020% - - N/A 1 2011 SA 2 Bond Proceeds Yes 1st American 0.020% - N/A 1 2013 Series A Refunding Bonds (231-10287) Yes 1 st American 0.020% 7 7 N/A 1 2013 Series B Refunding Bonds (231-10288) Yes 1st American 0.020% 2 2 N/A 1 114 Tax Allocation Refunding Bonds 231-102 Yes 1 st American 0.020% 82 82 N/A 1 Subtotal -Mutual Fund 31,276,827 $ 31,276,827 $ Total Fiscal Agent Investments 1 $ $ 31,276,827 $ 31,276,827 Grand Total Average Maturity 121,332,779 1 $ (581,886)1 $ 120,750,894 $ 131,276 370 Days I0.48% City of La Quinta Distribution of Cash & Investments & Balances November 30, 2016 Distribution of Cash & Investments City Totals General Fund 49,561,579 Gas Tax 634,981 Quimby Fund 5,231,458 AB 939 735,506 Infrastructure Fund 23,612 Developer Impact fees 4,146,486 Art in Public Places 584,592 Special Revenue 1,222,391 Interest Fund 204,896 Capital Project Fund 461,315 Equipment Replacement Fund 2,769,854 Information Technology Fund 603,470 Park Equipment & Facility 2,764,427 Landscape & Lighting Fund 192,500 SilverRock Resort (129,993) Trust & Agency Funds 174,670 Insurance Fund (204,486) Supplemental Pension Plan 127,651 Subtotal 69,104,909 Successor Agency Totals Project Area 1 Project Area 2 Capital Improvement Funds 6,597,378 4,485.610 11,082,987 Debt Service Funds - - Successor Agency 3,699,970 - 3,699,970 Low & Moderate Income Funds 25,561,850 25,561,850 Subtotal 35,859,197 4,485,610 40,344,806 Housing Authority Low & Moderate Income Funds 11,865,419 1 17,643 11,883,062 Subtotal 11,865,419 1 17,643 11,883,052 Financing Authority Project Funds Debt Service Funds 2 2 Subtotal 2 Total 121,332,780 Cash Balances T e Jul 16 August September October November December January17 FebruaryMarch April May June Cash & Investments 2,979,402 2,648,142 7,997,053 2245884 3,351,652 State Pool 43,975,128 27,975,128 26,975,128 28:030:435 27,530,435 Interest bearing active bank deposit 0 0 0 0 U.S. Treasury Bills/Notes 20,036,100 20,036,100 15,034,250 17,537,041 17,537,041 U.S. Government Sponsored Enterprises 28,068,855 28,068,855 28,068,855 30,568,855 30,568,855 Prime Commercial Paper 0 0 0 0 Corporate Notes 0 0 0 0 Certificates of Deposit 11,067,969 11,067,969 11,067,969 11,067,969 11,067,969 Mutual Funds 31,276,304 43,989,690 31,276 511 31,276,667 31,276,827 Total $ 137,403,758 $ 133,785,884 $ 120,419,766 120,726,850 $ 121,332,779 Jul 15 August September October November December January16 FebruaryMarch April May June ge sh&Investments 12,827,791 1,629,972 3,401,315 1,230,978 2,393,262 2,292,938 2,035,248 2,064,948 7,707,457 3,894,881 4,080,406 2,714,180 State Pool 33,951,810 17,751,810 15,351.810 15,376,525 14,376,525 17,376,525 31,390,848 27,390,848 26,390,848 25,421,368 33,421,368 44,402,980 Interest bearing active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 17,537,041 19,916,150 19,916,150 U.S. Government Sponsored Enterprises 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 23,024,920 30,568,855 28,016,170 28,016,170 Prime Commercial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,931,756 10,931,756 10,931,756 10,931,526 10,931,526 Mutual Funds 31,274,730 43,458,172 31,896,605 31,275,023 31,275,183 31,275,33" 31,275,497 36,768,919 31,327,011 31,275,833 31,275,990 31,276150 Total $ 136,926,552 $ 121,712,175 $ 109,521,951 $ 106,754,747 $ 106,917,191 $ 109,817,022 $ 123,573,814 $ 125,095,541 $ 119,298, 142 $ 119,629,734 $ 127,641,610 $ 137,257,156 T e Jul 14 August September October November December January15 FebruaryMarch A riI Ma June Cash&Investments 7,148,056 2,012,131 3,135,406 1,490,701 2,497,575 4,025,819 4,805,279 1,200,665 1,836,675 4,787,495 1Q975,972 4,945,233 State Pool 49,040,985 35,540,985 32,540,994 29,567,293 27,367,293 27,367,293 35,885,948 29,885,948 28,885,948 28,905,531 48,905,531 48,923,919 Interest bearing active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 0 0 0 0 0 0 0 0 0 0 0 4,890,650 U.S. Government Sponsored Enterprises 37,959,046 37,960,372 37,961,656 37,962,983 37,964,267 37,965,593 37,966,920 37,968,118 37,969,445 37,970,729 17,972,055 28,022,920 Prime Commemial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 6 480,0001 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 10,933,151 Mutual Funds 31,302,066 42,911,657 31,879,618 31,273,469 31,273,629 31,273,784 31,273,944 37:298:633 31,340,838 31,274,260 31:274,415 31,274,574 Total $ 131,930,153 $ 124,906,145 $ 111,997,664 $ 106,774,446 $ 105,582,764 $ 107,112,489 $ 116,412,091 1 $ 112,833,364 1 $ 106,612,906 1 $ 109,418,015 $ 115,607,973 1 $ 128,990,447 City of La Quinta Comparative Rates of Interest November 30, 2016 City of La Quinta Year Month Annualized Earnings Average Maturity Treasury Bills/Note Commercial Paper Three Month Non -Financial LAIF Rate Pooled Cash Fiscal Agent Overall Three Month ISix Month One Year Two Year FY13/14 July 2013 0.28% 0.07% 0.21% 336 0.03% 0.07% 0.12% 0.25% 0.11% 0.27% Aug 2013 0.28% 0.06% 0.21% 303 0.03% 0.06% 0.07% 0.14% 0.09% 0.27% Sept 2013 0.30% 0.07% 0.23% 321 0.01 % 0.04% 0.01 % 0.25% 0.08% 0.26% Oct 2013 0.48% 0.06% 0.31% 427 0.05% 0.08% 0.16% 0.25% 0.11% 0.27% Nov 2013 0.49% 0.06% 0.31% 444 0.05% 0.08% 0.16% 0.25% 0.09% 0.26% Dec 2013 0.49% 0.05% 0.31% 396 0.07% 0.09% 0.14% 0.25% 0.09% 0.26% Jan 2014 0.44% 0.05% 0.32% 381 0.04% 0.06% 0.13% 0.38% 0.09% 0.24% Feb 2014 0.44% 0.03% 0.30% 357 0.05% 0.08% 0.12% 0.25% 0.10% 0.24% Mar 2014 0.44% 0.02% 0.30% 352 0.05% 0.07% 0.12% 0.38% 0.10% 0.24% Apr 2014 0.47% 0.02% 0.33% 368 0.02% 0.05% 0.11% 0.45% 0.10% 0.23% May 2014 0.49% 0.02% 0.35% 373 0.04% 0.06% 0.10% 0.39% 0.10% 0.23% June 2014 0.44% 0.02% 0.33% 310 0.04% 0.07% 0.11% 0.50% 0.10% 0.23% FY 14/15 July 2014 0.45% 0.02% 0.34% 305 0.03% 0.06% 0.11% 0.50% 0.10% 0.24% Aug 2014 0.49% 0.02% 0.36% 313 0.03% 0.05% 0.11% 0.50% 0.11% 0.26% Sept 2014 0.51 % 0.02% 0.36% 325 0.02% 0.04% 0.12% 0.50% 0.10% 0.25% Oct 2014 0.50% 0.02% 0,36% 323 0.02% 0.06% 0.10% 0.38% 0.10% 0,26% Nov 2014 0.52% 0.02% 0.37% 317 0.03% 0.08% 0.14% 0.50% 0.10% 0.26% Dec 2014 0.52% 0.02% 0.37% 304 0.02% 0.07% 0.18% 0.50% 0.13% 0.27% Jan 2015 0.49% 0.02% 0.36% 268 0.02% 0.07% 0.21% 0.50% 0.12% 0.26% Feb 2015 0.51 % 0.02% 0.36% 269 0.02% 0.08% 0.21% 0.50% 0.12% 0.27% Mar 2015 0.52% 0.02% 0.37% 261 0.04% 0.14% 0.27% 0.50% 0.11% 0.28% Apr 2015 0.52% 0.02% 0.37% 248 0.02% 0.07% 0.25% 0.50% 0.10% 0.28% May 2015 0.50% 0.02% 0.35% 388 0.01 % 0.07% 0.26% 0.63% 0.12% 0.29% June 2015 0.70% 0.02% 0.53% 378 0.02% 0.09% 0.30% 0.63% 0.14% 0.30% FY 15/16 July 2015 0.79% 0.02% 0,57% 417 0.08% 0.17% 0.34% 0.63% 0.13% 0.32% Aug 2015 0.91 % 0.02% 0.60% 467 0.10% 0.28% 0.42% 0.63% 0.18% 0.33% Sept 2015 0.94% 0.02% 0.62% 470 0.02% 0.11% 0.45% 0.63% 0.22% 0.34% Oct 2015 0.94% 0.02% 0.62% 458 0.11% 0.29% 0.21% 0.63% 0.18% 0.36% Nov 2015 0.95% 0.02% 0.62% 448 0.22% 0.42% 0.51 % 0.88% 0.20% 0.37% Dec 2015 0.92% 0.02% 0.61 % 419 0.22% 0.51 % 0.69% 0.88% 0.36% 0.40% Jan 2016 0.81 % 0.02% 0.57% 351 0.36% 0.47% 0.69% 0.75% 0.47% 0.45% Feb 2016 0.90% 0.02% 0.62% 358 0.33% 0.49% 0.67% 0.75% 0.47% 0.47% Mar 2016 0.88% 0.02% 0.60% 314 0.24% 0.39% 0.67% 0.88% 0.47% 0.51 % Apr 2016 0.82% 0.02% 0.61% 353 0.22% 0.40% 0.62% 0.75% 0.48% 0.53% May 2016 0.80% 0.02% 0.60% 319 0.29% 0.44% 0.70% 0.88% 0.48% 0.55% June 2016 0.77% 0.02% 0.59% 266 0.27% 0.35% 0.57% 0.63% 0.49% 0.58% FY 16/17 July 2016 0.81 % 0.02% 0.63% 323 0.28% 0.38% 0.50% 0.67% 0.46% 0.59% Aug 2016 0.87% 0.02% 0.64% 347 0.33% 0.47% 0.61 % 0.80% 0.50% 0.61 % Sept 2016 0.90% 0.02% 0.66% 370 0.29% 0.45% 0.59% 0.77% 0.53% 0.63% Oct 2016 0.94% 0.02% 0.70% 384 0.34% 0.51 % 0.66% 0.86% 0.58% 0.65% Nov 2016 0.89% 0.02% 0.66% 370 0.480% 0.620 % 0.800% 1.110% 0.62% 0.68% City of La Quinta Chart of Interest Rates June 2016 through October 2016 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Jun'16 Jul'16 Aug'16 Sept'16 Oct'16 Nov'16 —0—AnmJizME MsDfPooledQ lme4—N—Rnm3lzME MsDflw P9s11me.—. • AnmAzME MsDfAlllm.—.—r51xMmN T�eavry Blll Rale —µ—Two Yea�T�eavry Nde Rale ta 0"trev — G17M oftbe DESERT — TO: La Quinta City Council FROM: Karla Campos, Finance Director/Treasurer SUBJECT: Treasurer's Report for December 31, 2016 DATE: February 10, 2017 Attached is the Treasurer's Report for the month ending December 31, 2016. The report is submitted to the City Council each month after a reconciliation of accounts is accomplished by the Finance Department. The following table summarizes the changes in investment types for the month: Investment Balance 12/31/16 Purchased Notes Sold/Matured Ending Change LAIF 27,530,435 1,000,000 (500,000) 28,030,435 500,000 Interest bearing active bank deposit - Certificates of Deposit 11,067,969 11,067,969 US Treasuries 17,537,041 17,537,041 US Gov't Sponsored Enterprises 30,568,855 30,568,855 Commercial Paper - - Corporate Notes - - Mutual Funds 31,276.827 31,276,827 Subtotal 117,981,127 500,000 118,481.127 500.000 Cash 3,351,652 (1) & (2) (436,780 2,914.872 436,780 Total 121,332,779 936.780 121,395,999 63,220 I certify that this report accurately reflects all pooled investments and is in compliance with the California Government Code; and is in conformity with the City Investment Policy. As Treasurer of the City of La Quinta, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the pools expenditure requirements for the next six months. The City of La Quinta used the Bureau of the Public Debt, U.S. Bank Monthly Statement, Bank of New York, and First Empire Monthly Custodian Report to determine the fair market value of investments at month end- 104 7 Karla Campos Date Finance Director/Treasurer Footnote (1) The amount reported represents the net increase (decrease) of deposits and withdrawals from the previous month. (2) The cash account may reflect a negative balance. This negative balance will be offset with transfers from other investments before warrants are presented for payment by the payee at the bank. CITY OF LA QUINTA PERMISSIBLE DEPOSITS AND INVESTMENTS December 31. 2016 The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage compliance limits and bid process requirements: All maturities must be less than the maximum allowed. Type of Investments Checking/Savings and other time accounts Certificate of Deposits U.S. Treasury Bills, Strips, Notes and Bonds. Government Securities ( except any collateralized mortgage obligation (CMO) or structured note which contains embedded rate options): - Government National Mortgage Association (GNMA) - Federal Farm Credit (FFCB) - Federal Home Loan Bank Notes & Bonds (FHLB) - Federal National Mortgage Association (FNMA) - Federal Home Loan Mortgage Corporation FHLMC Prime Commercial Paper including Temporary Liquidity Guarantee Program TLGP Commerical Notes - Temporary Liquidity Guarantee Program TLGP Local Agency Investment Fund (LAIF) Local Agency Bonds/CA Local Agency Bond Obligations Professionally Managed Account Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolio consists only of US Agency Securities maintaining a par value per share of $1. * All Funds Maximum All Funds Actual % All Funds Over Under 85% 2.40%-82.60% 30% 9.12% -20.88 % 100 % 14.45% -85.55 % 30% 25.18 % -4.82% 30,000,000 25,000,000 20,000,000 20,000,000 - 5,000,000 18,000,000 7,500,000 (30,000,000) (20:000:000) (2000,000) 12:500,000 95,000,000 $ 30,500,000 64,500,000 15% 0.00% -15.00% 5,000,000 5,000,000 (5,000,000) 5,000,000 20% 0.00% -20.00% 10,000,000 10,000,000 10,000,000 10,000,000 50,000,000 28,030,435 23.09 (21,969,565) 30% 0.00% -30.00 % 10 % 0.00% -10.00% 20% 25.76% 5.76% Investment A reements for bond proceeds and/or reserve funds. N/A 0.00% N/A Total 1 100.00 % Surplus Maximum Surplus % Surplus Over Under Restrictions Maximum Maturity Credit Quality Exce tions 85% 1.01%-83.99% N/A FDIC Insured None 30% 9.76%-20.24% <=$250,000 per institution 5 years FDIC Insured None 100% 11,16% -88.84% <=$30,000,000 maturing in 3-5 years 3-5 years None 30% 25.04% -4.96% Restricted to per -issuer limits below: 5 years None 30,000,000 25,000,000 20,000,000 20,000,000 - 5,000,000 18,000,000 7,500,000 (30,000,000) (20,000,000) (2,000,000) 12,500.000 $30.0 million $25.0 million $20.0 million $20.0 million 95,000,000 $ 30,500,000 $ 64,500,000 $95.0 million 15 % 0.00% -15.00 % $5,000,000 per issuer 90 days Standard & Poors/Mood 's None A-1, P-1 20% 0.00% -20.00 % $5,000,000 per Issuer 3 years at least Standard & Poors "AA" None 50,000,000 28,030,435 25.04% (21,969,565) $50,000,000 per account Current/ On Demand Unrated None 30% 0.00% -30.00% $30,000,000 per account 10 years 10 % 0.00% -10.00 % Requires approved RFP 3 years 20% 27.90 % 7.90 % Current/ On Demand Regulated by the SEC that consist only of US Treasury or GSE's Fiscal Agent/ Trust & Custody N/A 0.00% N/A None 100.00 % NOTE: * Money Markets - trust and custody (fiscal agent) agency holdings are excluded from money market account limits of 20% of portfolio. City of La Quinta Summary of Investment Activities City, Successor Agency and Financing Authority December 31, 2016 Investments Purchased Name Type Principal Date Yield to Maturity US Treasury FHLB Bonds US Treasury Treasury Notes LAIF Deposit 1,000,000 12/29/2016 US Bank Mutual Fund Interest Total Investments Purchased 1,000,000 Investments Sold/Matured Name Type Principal Date Yield to Maturity LAIF Withdrawal (500,000) 12/9/2016 US Treasury US Bank Total Investments Sold/Matured 1 (500,000) Checking & Savings - Net Change 1 1 (436,780) Investment Change Prior Month Ending Balance 121,332,779 Plus : Investments Purchased 1,000,000 Less: Investments Sold (500,000) Checking & Savings - Net Change (436,780) Month Ending Balance 121,395,999 Cross Reference to fund balance 121,395,999.97 Summary of Holdings City, Redevelopment Agency and Financing Authority December 31, 2016 City Cash & Invasiments Bank Accounts Name - Aveilabilil Surplus Type Interest Rate Book Value Unrealized Gain Loss Fair Value Bank Wells Fargo -Demand Yes Checking 0.00% 1,776,719 N/A $ 1,776,719 2.573,327 Petry Cash- Demand No N/A N/A 1,700 N/A 1,700 1,700 First Empire Securities Yes Savings Acct CD Interest Earnings N/A - N/A - Washington St.Apts.-Demand Yes Operating N/A 158,863 N/A 158,863 160,197 Washington St. Aptm. - Demantl Yes Taxes & Insurance Acot 0.00% 19,956 N/A 19,956 19,956 Washington St. Apts.-Demand Yes Security Deposit 0.25% 27,735 N/A 27.735 28,135 Washington SL Apls.-Demand Vea Savings 0.07% 287,469 N/A 287,469 287,469 Washington St. Apts. - Demand Yes Money Market 0,00% - N/A - - Washington St. Acts. - Demand Yes Replacement Reserve CD 0,40% 600,000 N/A 600,000 599,9fi9 Washington St. Apia. Petty Cash - Demantl Yes N/A 0.00% 200 N/A 200 200 Wells Fa olHousin -Demantl Yes Checking0.00% 42,230 N/A 42,230 47.918 Total - Bank Accounts 2,914,872 $ 2,914,872 3,718,872 U. S. Government Sponsored Enterprises Custodian -Availabili Surplus T e/ Mootl 's Rating Discount Rate air ovso/1e ear aaaroon en113.159, Unrealized Gain Loss Fair Value Accrued Interest Days to Maburi Original Purchase Price Settlement Date First Call Dale Maturity Date Original Days to MaturityYield Estimated Bankof New York-Demantl Yes FNMA AAA 0.750% 184 $ (16,6191 $ 13,142,365 29,291 73 $ 13,000,000 06/17/13 03/14/14 03/14/17 1366 0.750% Bank of New Yodc- Demand Ves FNMA AAA 0.750% 4,867,096 (6,221) 4,8fi0,875 10,834 73 5,000,000 0S/30/13 03/14114 03/14H7 1384 0.750% First Empire Se cunties- Demand Ves FHLMC AAA Sec. ltlentifier"""5L 1.750% 5,053,250 (144:100) 4,908,750 486 1,276 5,000,000 0B/29/15 06/29/17 06/29/20 1827 1.770% First Empire Securities -Demand Yes FHLB AAA Sec Identifier"""UO 1,375% 2,500,000 (56, 175) 2,443,825 6,207 1,395 2,500,000 10/26/16 04/26/17 10/26/20 1461 1.400% First Empire Securities - Demand Yes FHLB AAA Sec Identifier 1.350% 2,487,925 (76,950) 2,410,975 5,906 1,579 2,500,000 04/28/16 O7/28/17 04/28/21 182fi 1.390% First Em ire securities -Demand Yes FHLMC AAA Sec. Identifier"""V 1.250% 2,501,400 38,100 2,463,300 5,469 1,579 2,500,000 04/28/16 01/28/17 04/28/21 1826 1.280% Total- U.S. Govemment Securities 30,568,855 $ 338,765 $ 30,230.090 $ 58,193 $ 30,500,000 U. S. Treasury Notes Dlscounll salr vawe sr os/sals Unrealized Fair Accrued Days Original Settlement First Call Date Maturity Original Days Estimated Custodian - Availabili Su Ius IssueriT a Rate m ammao Gain Loss Value Interest to MaturityPurohase Price. Data Data to MaturityYield First Empire Securities -Demand Yes T-Note Security Identifier 0.500% 5,001,650 (1,100) 5,000,550 10,394 31 5,000,000 07/31/15 N/A 01/31/17 550 0.490% First Empire Securities - Demand Yes T-Note Security ltlentfier"""L81 0.875% 2,502,791 (14,691) 2,487,900 4,627 653 2,500,000 10/24/16 N/A 10/15/78 721 0.8]0% First Empire securities -Demand Yes T-Note Security Identifier---UB4 1.000% 5,032,600 $ (92,750) $ 4,939.850 $ 4,258 1,064 $ 5.000,000 06/03/15 N/A 11/30/19 1641 1.010% First Em ire Securities - Demantl Yes T-Note Securityltlentifier"""S27 1.125% 5,000,000 160,750 4,839,250 1,642 5,000,000 07/78/18 N/A OB/30/21 1808 1.180% Total -U.S. Treasury17,537,041 $ 269,491 $ 17,267.550 $ 19,280 $ 17.600,000 Certiwtes of Deposit Cuslodlan-Availablll Su lus IssuerlT a Yield Price sao- vawe ar oersale am year aaamon Unrealized Gain Loss Fair Value Accrued Interest Days to Maturl Original Purchase Price Settlement Date First Call Date Maturity Date Original Days to MaturityVleld Estimated Washington Trust Yes Washington Tmsi CD 0.650% 240,482 (478) 240,005 94 9 240,000 06/09/14 N/A 01/09/17 945 0.640% Customers Bank Yes Customers Bank CO 1.000% 240,910 (504) Zd0,406 217 150 240,000 05/28/14 N/A 05/30/17 1098 0.990% TCF National Bank Yes TCF National Bank 0.700% 248,412 (226) 248:186 133 156 248:000 06/03/15 N/A 06/05/17 733 0.690% Towne Bank Yes Towne Bank 0.900% 248,414 (218) 248, 196 116 763 248,000 0`12/15 N/A 06/12/17 731 0:890% Traverse City Yes Traverse City CO 1.100% 241,589 (794) 240,794 334 240,000 05/30/14 N/A 11/30/17 1280 1.090% let National -Mayfield Yes let National -Mayfield 1.000% 248,866 (568) 248,298 136 345 248,000 06/11/15 N/A 12/11/17 914 0.990% G.E. Cap Bank CTF Dap Prgrm Ves G.E. Capital Bank CD 1.100% 240,730 (578) 240,211 123 348 240,000 12/14/12 N/A 12/14/17 1826 1.090% Goldman Sachs Y. Goldman Sachs CO 1.150% .0,895 (583) 240,312 91 353 240,000 12/14/12 N/A 12/19/17 1831 1.140% Independent Bank Yes Independent Bank 0.900% 248,908 (632) 248,275 116 377 248.000 06/12/15 N/A 01/12/18 945 0.890% Third Savings Bank & Loan Yes Third Savings Bank & Loan CD 1.250% 241,243 (749) 240:494 518 394 240,000 0111 114 N/A W11118 1311 1..0% Embassy National Yes Embassy National 1.000% 248,990 (746) 248,243 95 440 24:,000 06/17/15 N/A 03/16/18 1003 0.990% Carolina Alliance Yes Carolina Alliance 1.000% 249,034 (1,334) 247,700 82 443 248,000 O6119/15 N/A 03/19/18 1004 0.990% South Atlantic Ves South Atlantic 1.000% 248, 196 (568) 247,628 149 464 248,000 06/09/15 N/A 04/09/18 1035 0.990% Medallion Bank Yes Medallion Bank CD 1.350% 241,656 (982) 240,674 53 480 240:000 04/25/14 N!A 04/25/18 1461 1.340% Berkshire Bank Ves Berkshire Bank CD 1.350% 242,438 (1,202) 241,236 9 485 240,000 04/30/14 N/A 04/30/18 1461 1.330% Cornerstone Commercial Bank Ves Cornerstone Commercial Bank CD 1.350% 241,656 (989) 240,667 9 485 240,000 04/30/14 N/A 04/30/18 1461 1.340% Crescent Bank Yes Crescent Bank CD 1.300% 241,440 (931) 240.509 9 485 240:000 04/30/14 N/A 04/30/18 1461 1.290°0 Merrick Bank Yes Merrick Bank CD 1.350% 242,496 (1,229) 241,267 t95 494 240,000 05/09/14 N/A 05/09/18 1461 1.330% Compass Bank Yes Compass Bank 1.350% 249,143 (578) 248,625 238 521 248:000 06/05/15 N/A 06/05/18 1096 1.340% MIS Financial Bank Yes MIS Financial Bank 1.100% 249,195 (952) 248,243 194 527 248,000 06/05/15 N/A O61O5178 7096 1.090% Mir Trade&Trust Yes Mir Trade &Trust 1.200% 248,997 (913) 248'084 171 527 248,000 06/10/15 N/A 06/11/18 1097 1.190% Regal Bank Yes Regel Bank CD 1.400% 243,000 (1,454) 241,546 138 562 240,000 05/16/14 N/A 07/16/18 1522 1.380% Amex Centurion Ves Amex Centurion Bank CD 1.900% 244,502 (1,841) 242,662 1,787 585 240,000 O8/O8113 N/A O8/O8/78 1826 1.870% CiliBank Vas Citibank CD 1.900% 244,570 (2,018) 242:551 1,737 591 240,000 08/14/13 N/A 08/14/18 1826 1.870% First Merchants Bank Vea First Merchants Bank CD 1.500% 244,037 (1,684) 242, 153 612 668 240:000 04/30/14 N/A 10/30/18 1644 1.470% Morton Community Yes Morton Community 1.250% 250,088 (1,617) 248,471 161 711 248,000 0 /12/15 N/A 12/12/18 1279 1.240% Ally Bank Midvale Yes Ally Bank Midvale 1.700% 243, 163 (1,619) 241,344 78 723 240,000 1224/15 N/A 12/24/18 1096 1.680% Farmers & March Yes Farmers & Merch 1.250% 250:532 (3.194) 247.348 221 766 248,000 0 /05/15 N/A 02/05/19 1341 1.240% Wells Fargo Bank Yes WeIIs Fargo Bank 1.200% 243,288 (2,011) 241,277 39 787 240,000 0226/16 N/A 02/26/19 1096 1.180% Webster Bank Yes Webster Bank CD 1,800% 245,678 (2,587) 243,091 817 843 240,000 04/23/14 N/A 04/23/19 1826 1.760% BMW Bank Yes BMW Bank CD 1.900% 245,676 (2,587) 243:089 837 845 240,000 04/25/14 N/A 04/25/19 1826 1.860% Barclays Bank Yes Barclays Bank CD 1.900% 245,690 (2,599) 243,091 787 849 240,000 04/29/14 N/A 0429/19 1826 1.860% Ephrata Bank Ves Ephrata Bank CD 1.650% 245:781 (2,:26) 243:158 673 850 240,000 04/30/14 N/A 04/30/19 1826 1.610% Synchrony G.E. Cap Retail Bank CD (Draper) Yes Synchrony G.E. Capital Retail Bank C 2.000% 245,63. (2,599) 243,.31 763 852 240,000 05/02/14 N/A 05/02/19 1826 1.950% First Business Bank Ves First Business Bank CD 1.750% 245,786 (4,034) 247,752 472 870 240,000 0520/14 N/A 05/20/19 1826 1.720% Gulf Coast Bank Yes Gulf Coast Bank CD 1.750% 244,145 (2,386) 241,759 138 870 240,090 05/19/14 N/A 05/20/19 1827 1.720% Peapack -Goldstone Bank Yes Peapack -Goldstone Bank CD 1.800% 245,885 (2,712) 243,173 36 878 240,000 OS/28/14 N/A OS/28/79 t826 1.760% Solomon State Yes Solomon Stale 1.400% 251,544 (2,391) 249,153 257 885 248,000 0104/15 N/A O6/04119 1461 1.380% Connect One Yes Connect One 1,500% 251,541 (2,393) 249,148 265 886 248,000 06/05/15 N/A O6/05/79 1461 1.480% Riverwo0d Yes Rlverwood 1.400% 252,132 (2,681) 249,451 247 978 248,000 06/05/15 N/A 09/05/19 1553 1.370% EverBank Yes EverBank 1.700% 253,821 (5:642) 248:179 300 1,252 248,000 0B/05/15 N/A 0B/05/20 1827 1.670% Capital One Yes Capital One 1.900% 250,718 (3,530) 247,188 2638 1,257 245,000 06/10/16 N/A 06/10/20 1827 1.850% Bank Mk West Yes Bank MidWesl 1.650% 2:3,922 (6,197) 247,72: 26 1,259 248,000 06/12/15 N/A O6/12/20 1827 1.620% Comenity Capital Bank Yes Comenity, Capital Bank 1.700% 242,362 (3,972) 238,390 101 1,514 240:000 0222116 N/A 02/22/21 1827 1.680% PrivateBank&Trost Yes PrivateBankBTmst 1.500% 240,782 4,171 236,611 345 1,607 240,000 05/26/16 N/A OS/26121 182fi 1.490% Total- CeNfcates of Deposit Average CD Yield 1.389% 11,067,969 $ (64,575) $ 10,983,394 $ 14,639 $ 10,941,000 City of La Quinta Summary of Holdings City, Redevelopment Agency and Financing Authority December 31, 2016 Local Agency Investment Fund Name - Availability Surplus Type Interest Rate Book Value Unrealizable Gain/(Loss Fair Value Accrued Interest Days to Maturity Actual Management Fees Charged Statutory Mgmt Fees Allowed LAIF - City -Demand Yes State Pool 0.72 % 28,030,435 $ $ 28,030,435 N/A 1.21 % - Q/E 12/31/16 5.00 % Total - State Pool 28,030,435 $ $ 28,030,435 Total City Investments Total City Cash & Investments Fiscal Agent Investments 87,204,300 1 $ (692,831)1 $ 86,511,469 1 $ 91,512 90,119,172 1 $ (692,831)1 $ 89,426,342 1 $ 91,512 Portfolio - Money Mrkt Mutual Funds Trustee - Availability Surplus Money Market Mutual Fund Interest Rate Book Value Unrealizable Gain/(Loss Market Value Accrued Interest Days to Maturity Management Fees Civic Center U.S.Bank - Project Yes 1st American 0.020% $ $ N/A 1 .40% of Average Daily Civic Center U.S.Bank - Debt Svc Yes 1 st American 0.020% N/A 1 1994 SA U.S. Bank -Debt Svc Yes 1 st American 0.020% N/A 1 1998 SA U.S. Bank -PA 2 Debt Svc Yes 1 st American 0.020% N/A 1 1998 SA U.S. Bank -PA 1 Debt Svc Yes 1 st American 0.020% N/A 1 1996 FA Series Bond (310-10275) Yes 1 st American 0.020% 2 2 N/A 1 2001 SA U.S. Bank -Debt Service Yes 1st American 0.020% - N/A 1 2004 Fin Auth Revenue Bonds Yes 1st American 0.020% N/A 1 2004 Fin Auth Housing Project Yes 1 st American 0.020% N/A 1 2002 SA U.S. Bank - CIP Yes 1st American 0.020% N/A 1 2002 SA U.S. Bank - Debt Svc Yes 1 st American 0.020% N/A 1 2011 PA 2 Tax Allocation Bond (417-10273) Yes 1 st American 0.020% N/A 1 2011 PA 2 Tax Allocation Bond (231-10283) Yes 1 st American 0.020% 12 12 N/A 1 2011 Financing Authority Debt Service (231-10282 Yes 1st American 0.020% - - N/A 1 2011 PA 2 Tax Allocation Bond (231-10279) Yes 1st American 0.020% 3 3 N/A 1 2011 Financing Authority Reserve (231-10281) Yes 1 st American 0.020% 13 13 N/A 1 2011 PA 2 Taxable Revenue Bond (249-10273) Yes 1st American 0.020% 25,561,978 25,561,978 N/A 1 2011 SA 1 Debt Service Fund (231-0000-10273) Yes 1st American 0.020% 3,664,817 3,664,817 N/A 1 2011 SA 2 Bond Proceeds (231-0000-10276) Yes 1st American 0.020% 2,049,912 2,049,912 N/A 1 2013 Series A Refunding Bonds (231-10287) Yes 1st American 0.020% 7 7 N/A 1 2013 Series B Refunding Bonds (231-10288) Yes 1st American 0.020% 2 2 N/A 1 014Tax AllocationRefunding Bonds 231-10289 Yes 1st American 0.020% 82 82 N/A 1 Subtotal - Mutual Fund 31,276,829 $ 33,326,741 $ Total Fiscal Agent Investments Grand Total Average Maturity 31,276,829 $ $ 33,326,741 $ 121,396,001 $ (692,831)1 $ 122,753,083 $ 91,512 347 Days 1 -0.57% City of La Quints Distribution of Cash & Investments & Balances December 31, 2016 Distribution of Cash & Investments City Totals General Fund 48,728,127 Gas Tax 617,307 Quimby Fund 5,160,607 AB 939 738,122 Infrastructure Fund 23,696 Developer Impact fees 4,220,269 Art in Public Places 593,080 Special Revenue 1,071,768 Interest Fund - Capital Project Fund 1,364,987 Equipment Replacement Fund 2,839,713 Information Technology Fund 754,269 Park Equipment & Facility 2,898,736 Landscape & Lighting Fund 73,020 SilverRock Resort (51,468) Trust& Agency Funds 174,773 Insurance Fund (54,325) Supplemental Pension Plan 128,105 Subtotal 69,280,785 Successor Agency Totals Project Area 1 Project Area 2 6,542,824 4,446,125 Capital Improvement Funds 10,988,949 Debt Service Funds - - Successor Agency 3,664,817 - 3,664,817 Low & Moderate Income Funds 25,561,978 25,561,978 Subtotal 35,769,619 4,446,125 40,215,744 Housing Authority Low & Moderate Income Funds 11,883,509 17,643 11,901,152 Subtotal 11,883,509 17,643 11,901,152 Financing Authority Project Funds Debt Service Funds (1,681) (1,681) Subtotal (1,681) Total 121,396,000 Cash Balances Type July 16 August September October November December Janus 17 FebruaryMarch Aril May June Cash & Investments 2,979,402 2,648,142 7,997,053 2,245,884 3,351,652 2,914,872 State Pool 43,975,128 27,975,128 26,975,128 28,030,435 27,530,435 28,030,435 Interest bearing active bank deposit 0 0 0 0 0 U.S. Treasury Bills/Notes 20,036,100 20,036,100 15,034,250 17,537,041 17,537,041 17,537,041 U.S. Government Sponsored Enterprises 28,068,855 28,068,855 28,068,855 30,568,855 30,568,855 30,568,855 Prime Commercial Paper 0 0 0 0 0 Corporate Notes 0 0 0 0 0 Certificates of Deposit 11,067,969 11,067,969 11,067,969 11,067,969 11,067,969 11,067,969 Mutual Funds 31,276,304 43989,690 31,276,511 31,276667 31276,827 31276827 Total $ 137,403,758 $ 133,785,884 $ 120,419,766 120,726,850 $ 121,332,779 $ 121,395,999 T e Jul 15 Au ust September October November December Janus 16 Februa March Aril May June Cash & Investments 121827,791 1,629,972 3,401,315 1,230,978 2,393,262 2,292,938 2,035,248 2,064,948 7,707,457 3,894,881 4,080,406 2,714,180 State Pool 33,951,810 17,751,810 15,351,810 15,376,525 14,376,525 17,376,525 31,390,848 27,390,848 26,390,848 25,421,368 33,421,368 44,402,980 Interest bearing active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 19,916,150 17,537,041 19,916,150 19,916,150 U.S. Government Sponsored Enterprises 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 28,022,920 23,024,920 30,568,855 28,016,170 28,016,170 Prime Commercial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,933,151 10,931.756 10,931,756 10,931,756 10,931,526 10,931,526 Mutual Funds 31,274,730 43 458:172 31,896,605 31,275 023 31:275:183 31 275,338 31,275,497 36,768,919 31,327,011 31,275,833 31,275,990 31,276,150 Total $ 136,926,552 $ 121,712,175 $ 109,521,951 $ 106,754,747 $ 106,917,191 $ 109,817,022 $ 123,573,814 $ 125,095,541 $ 119,298,142 1 $ 119,629,734 1 $ 127,641,610 1 $ 137,257,156 T e July 14 August September October November December Janus 15 FebruaryMarch Aril May June Cash & Investments 7,148,056 2,012,131 3,135,406 1,490,701 2,497,575 4,025,819 4,805,279 1,200,665 1,836,675 4,787,495 10,975,972 4,945,233 State Pool 49,040,985 35,540,985 32,540,984 29,567,293 27,367,293 27,367,293 35,885,948 29,885,948 28,885,948 28,905,531 48,905,531 48,923,919 Interest bearing active bank deposit 0 0 0 0 0 0 0 0 0 0 0 0 U.S. Treasury Bills/Notes 0 0 0 0 0 0 0 0 0 0 0 4,890,650 U.S. Government Sponsored Enterprises 37,959,046 37,960,372 37,961,656 37,962,983 37,964,267 37,965,593 37,966,920 37,968,118 37,969,445 37,970,729 17,972,055 28,022,920 Prime Commercial Paper 0 0 0 0 0 0 0 0 0 0 0 0 Corporate Notes 0 0 0 0 0 0 0 0 0 0 0 0 Certificates of Deposit 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 6,480,000 10,933,151 Mutual Funds 311,302, 066 42,911,657 31,879,618 31, 273,469 31,273, 629 31,273,784 31,2173,944 37,298,633 31,340,838 31,274,260 31,§4, 415 31,274,574 Total $ 131,93Q153 $ 124,905,145 $ 111,997,664 $ 106,774,446 $ 105,582,764 $ 107,112,489 $ 116,412,091 $ 112,833,364 $ 106,512,906 $ 109,418,015 $ 115,607,973 $ 128,990,447 City of La Quinta Comparative Rates of Interest December 31, 2016 City of La Quinta Year Month Annualized Earnings Average Maturity (days) Treasury Bills/Note Commercial Paper Three Month Non -Financial LAIF Rate Pooled Cash Fiscal Agent Overall Three Month Six Month One Year Two Year FY 13/14 July 2013 0.28% 0.07% 0.21 % 336 0.03% 0.07% 0.12% 0.25% 0.11% 0.27% Aug 2013 0.28% 0.06% 0.21 % 303 0.03% 0.06% 0.07% 0.14% 0.09% 0.27% Sept 2013 0.30% 0.07% 0.23% 321 0.01 % 0.04% 0.01 % 0.25% 0.08% 0.26% Oct 2013 0.48% 0.06% 0.31 % 427 0.05% 0.08% 0.16% 0.25% 0.11% 0.27% Nov 2013 0.49% 0.06% 0.31 % 444 0.05% 0.08% 0.16% 0.25% 0.09% 0.26% Dec 2013 0.49% 0.05% 0.31 % 396 0.07% 0.09% 0.14% 0.25% 0.09% 0.26% Jan 2014 0.44% 0.05% 0.32% 381 0.04% 0.06% 0.13% 0.38% 0.09% 0.24% Feb 2014 0.44% 0.03% 0.30% 357 0.05% 0.08% 0.12% 0.25% 0.10% 0.24% Mar 2014 0.44% 0.02% 0.30% 352 0.05% 0.07% 0.12% 0.38% 0.10% 0.24% Apr 2014 0.47% 0.02% 0.33% 368 0.02% 0.05% 0.11% 0.45% 0.10% 0.23% May 2014 0.49% 0.02% 0.35% 373 0.04% 0.06% 0.10% 0.39% 0.10% 0.23% June 2014 0.44% 0.02% 0.33% 310 0.04% 0.07% 0.11% 0.50% 0.10% 0.23% FY 14/15 July 2014 0.45% 0.02% 0.34% 305 0.03% 0.06% 0.11% 0.50% 0.10% 0.24% Aug 2014 0.49% 0.02% 0.36% 313 0.03% 0.05% 0.11% 0.50% 0.11% 0.26% Sept 2014 0.51 % 0.02% 0.36% 325 0.02% 0.04% 0.12% 0.50% 0.10% 0.25% Oct 2014 0.50% 0.02% 0.36% 323 0.02% 0.06% 0.10% 0.38% 0.10% 0.26% Nov 2014 0.52% 0.02% 0.37% 317 0.03% 0.08% 0.14% 0.50% 0.10% 0.26% Dec 2014 0.52% 0.02% 0.37% 304 0.02% 0.07% 0.18% 0.50% 0.13% 0.27% Jan 2015 0.49% 0.02% 0.36% 268 0.02% 0.07% 0.21 % 0.50% 0.12% 0.26% Feb 2015 0.51 % 0.02% 0.36% 269 0.02% 0.08% 0.21 % 0.50% 0.12% 0.27% Mar 2015 0.52% 0.02% 0.37% 261 0.04% 0.14% 0.27% 0.50% 0.11% 0.28% Apr 2015 0.52% 0.02% 0.37% 248 0.02% 0.07% 0.25% 0.50% 0.10% 0.28% May 2015 0.50% 0.02% 0.35% 388 0.01 % 0.07% 0.26% 0.63% 0.12% 0.29% June 2015 0.70% 0.02% 0.53% 378 0.02% 0.09% 0.30% 0.63% 0.14% 0.30% FY 15/16 July 2015 0.79% 0.02% 0.57% 417 0.08% 0.17% 0.34% 0.63% 0.13% 0.32% Aug 2015 0.91 % 0.02% 0.60% 467 0.10% 0.28% 0.42% 0.63% 0.18% 0.33% Sept 2015 0.94% 0.02% 0.62% 470 0.02% 0.11% 0.45% 0.63% 0.22% 0.34% Oct 2015 0.94% 0.02% 0.62% 458 0.11% 0.29% 0.21 % 0.63% 0.18% 0.36% Nov 2015 0.95% 0.02% 0.62% 448 0.22% 0.42% 0.51 % 0.88% 0.20% 0.37% Dec 2015 0.92% 0.02% 0.61 % 419 0.22% 0.51 % 0.69% 0.88% 0.36% 0.40% Jan 2016 0.81% 0.02% 0.57% 351 0.36% 0.47% 0.69% 0.75% 0.47% 0.45% Feb 2016 0.90% 0.02% 0.62% 358 0.33% 0.49% 0.67% 0.75% 0.47% 0.47% Mar 2016 0.88% 0.02% 0.60% 314 0.24% 0.39% 0.67% 0.88% 0.47% 0.51 % Apr 2016 0.82% 0.02% 0.61 % 353 0.22% 0.40% 0.62% 0.75% 0.48% 0.53% May 2016 0.80% 0.02% 0.60% 319 0.29% 0.44% 0.70% 0.88% 0.48% 0.55% June 2016 0.77% 0.02% 0.59% 266 0.27% 0.35% 0.57% 0.63% 0.49% 0.58% FY16/17 July 2016 0.81% 0.02% 0.63% 323 0.28% 0.38% 0.50% 0.67% 0.46% 0.59% Aug 2016 0.87% 0.02% 0.64% 347 0.33% 0.47% 0.61 % 0.80% 0.50% 0.61 % Sept 2016 0.90% 0.02% 0.66% 370 0.29% 0.45% 0.59% 0.77% 0.53% 0.63% Oct 2016 0.96% 0.02% 0.70% 384 0.34% 0.51 % 0.66% 0.86% 0.58% 0.65% Nov 2016 0.89% 0.02% 0.66% 370 0.480% 0.620% 0.800% 1.110% 0.62% 0.68% Dec 2016 0.96% 0.02% 0.71 % 353 0.51 % 0.62% 0.85% 1.20% 0.74% 0.72% City of La Quinta Chart of Interest Rates July 2016 through December 2016 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Jul'16 Aug'16 Sept'16 Oct'16 Nov'16 Dec'16 - 0 — Annualized Earnings of Pooled Cash lnvesoments — Annualized Earnings of Igoal Agent l m.—. Annualized Earnings of All Investments • Six M ant, Treasury Bill Rate -µ- led Year Treasury hate to HAND OUTS MEETING FEBRUARY 15, 2017 REQUEST FOR PROPOSAL OF AUDITING SERVICES GEM ote DESERT Issued January 24, 2017 REQUEST FOR PROPOSAL OF AUDITING SERVICES 1. INTRODUCTION The City of La Quinta (hereinafter referred to as the "City") is soliciting proposals for auditing services for the next five fiscal years, which began July 1, 2016 and ends June 30, 2021. The enclosed "Request for Proposal" outlines the scope of the engagement, information required, evaluation criteria, and other relevant information. If your firm would like to consider this engagement, we invite your response due no later than 5 p.m. on March 1, 2017. A selection committee of Investment Advisory Board members and two finance staff members will evaluate, select and recommend proposals to the City Council. The City Council will make the final decision on award of the Contract. Additional information may be obtained by contacting: Karla Campos Finance Director/Treasurer City of La Quinta kcampos@la-quinta.org (760)777-7073 (760)777-7105 Fax Proposers must submit five copies of their proposals in two sealed envelopes, with one envelope containing proposed costs of audit services and the other technical data, by no later than 5:00 p.m. March 1, 2017 to the following address: City of La Quinta Finance Department - Audit Proposal 78495 Calle Tampico La Quinta, CA 92253 Date of issuance December 1, 2016 Proposed Deadline March 1, 2017 at S:OOp.m. The City reserves the right without prejudice to reject any or all proposals submitted. During the evaluation process, the City reserves the right, where it may serve the City's best interest, to request additional information or clarifications from proposers, and to allow corrections of errors or omissions. The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals and the professional services agreement (Exhibit A), unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City and the firm selected. 1 There is no expressed or implied obligation for the City to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. A copy of this request for proposal and the City's most recent Comprehensive Annual Financial Report (CAFR) can be found on the City's website www.lo-quinta.org. 2. AUDITING STANDARDS The City annually issues a Comprehensive Annual Financial Report (CAFR). The City may receive Community Development Block Grant money and/or other financial assistance from the Federal Government and as such may issue a Single Audit Report. In addition, the activities of the La Quinta Financing Authority are included in the CAFR, but no Component Unit Financial Report (CUFR) is issued. The City, Housing Authority, Finance Authority, and Successor Agency expect an audit opinion for each of their financial reports to fairly represent their financial position and to conform with generally accepted accounting principles. The City and its Agencies expect the audit of each of their financial reports to be conducted in accordance with generally accepted auditing standards. The City expects the Single Audit, if required, to be conducted in accordance with U.S. Office of Management and Budget (OMB) Circular A-133 and related correspondence. The City requests a full scope audit of all fund types and account groups in accordance with generally accepted auditing standards. Audit services are desired for the City, Housing Authority, Successor Agency and Financing Authority on an annual basis as set forth above. Proposals shall include separate quotes for the City and its component units. The City's accounting personnel will provide assistance to the audit firm during the course of the audit. Cooperation may be expected in answering questions, preparing schedules for working papers, and preparing confirmations. The City would expect only reasonable requests of assistance from the auditing firm. City staff currently produces schedules and other backup for most balance sheet accounts at year end (accounts receivable listing, accounts payable listing, compensated absences listing, bank reconciliations, schedule of fixed assets etc.). The auditor is expected to produce any other necessary schedules. City staff will help obtain any necessary information. The City will provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided with access to an internet connection, photocopying facilities and fax/scanning machines to be used for the audit. V 3. SCOPE OF WORK TO BE PERFORMED a) City of Lo Quinto CAR - The City expects the auditor to express an opinion on the fair presentation of its basic financial statements. The auditor is not required to express an opinion on the combining and individual non -major fund financial statements and schedules. However, the auditor is to provide an "in -relation -to" report based on the auditing procedures applied during the audit of the basic financial statements. Certain limited procedures should be applied to the supplementary information, management's discussion and analysis, and budgetary comparison information, but an expression of an opinion is not required. The auditor is not required to express an opinion on the introductory and statistical sections. b) Single Audit Act Report - The City receives federal funds which come under the provision of the Single Audit Act. The auditor is not required to audit the schedule of federal financial assistance. However, the auditor is to provide an "in -relation - to" report on that schedule based on the auditing procedures applied during the audit of the financial statements. This report must satisfy all requirements of the Federal Single Audit Act of 1996. c) GANN Limit - The auditor shall perform agreed -upon auditing procedures pertaining to the City's GANN Limit (Appropriations Limit) and render a letter to the City regarding compliance. d) Management Report - The auditor shall issue a separate management letter that includes recommendations and disclosures of material and non -material weakness for improvements on internal controls, accounting procedures, disclosure violations of finance related legal and contracted provisions, and other significant observations that are considered to be non -reportable conditions such as recommendations for financial and program management improvements. e) Presentation - The independent audit firm is expected to meet at least once each year with City Council to present and discuss the financial statements, management letter, and other relevant subjects. The independent audit firm is expected to meet at least once each year with the Investment Advisory Board to present and discuss the City financial statements as they relate to cash and investments and discuss any internal control weaknesses with the Board. fl Updates - The independent audit firm is expected to keep the City, Housing Authority, Finance Authority, and Successor Agency staff abreast of new developments affecting municipal finance and reporting, impact on accounting and reporting should the State of California impose state -mandated procedures, impacts of Government Accounting Standards Board disclosure requirements, required changes in grant procedures, and the like. 9 g) Additional Consulting Hours - Included in the fee proposal shall be an additional 40 hours of partner/manager time budgeted for research and assistance to City staff concerning accounting and other technical matters each year. The topic areas might include tax questions, the review of bond documents, cost allocation programs, employee benefit programs, financial policies, and cash flow projections. It must be understood that these hours are above and beyond the professional times associated with the audit. h) State Controller's Report - The City requests that the annual State Controller's Report be completed with verification and confirmation by the City. 4. REPORTS TO BE ISSUED The auditor shall issue: a) A report of the fair presentation of the financial statements in conformity with generally accepted accounting principles, basic financial statements, including government -wide financial statements and fund financial statements, for all funds, and accompanying notes to the basic financial statements. b) A report on internal controls over financial reporting and on compliance and other matters based on an audit of the financial statements performed in accordance with Government Auditing Standards. c) A report on compliance with requirements applicable to each major program and internal control over compliance in accordance with OMB Circular A-133. The independent audit firm shall print and bind the following financial reports by no later than December 10th of each year: City CAFR - 20 copies Single Report Audit -10 copies Management Report -10 copies 5. INTERNAL CONTROL AND COMPLIANCE REPORTS In the required reports on internal control, the auditor shall communicate in a letter to management any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions 4 of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non -reportable conditions discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the report on internal controls. Auditors shall be required to make an immediate, written report of all irregularities and illegal acts of which they become aware to the Finance Director, the City Manager, and the City Attorney. Auditors shall ensure that the City is informed of each of the following: The auditor's responsibility under generally accepted auditing standards Significant accounting policies and regulations Management judgments and accounting estimates Significant audit adjustments Other information in documents containing audited financial statements Disagreements with management Management consultation with other accountants Major issues discussed with management prior to retention Difficulties encountered in performing the audit 6. AWARDS The City has obtained the "Certificate of Achievement for Excellence in Financial Reporting" from the GFOA for fiscal year ended June 30, 2015 and expects to receive the award for the fiscal year ended June 30, 2016. It is the City's intention to continue to receive the award annually and will expect the CAFR to meet the requirements of those programs. 7. PROPOSAL REQUIREMENTS a) Requirement to Meet All Provisions - Each individual or firm submitting a proposal (proposer) shall meet all of the terms and conditions of this Request for Proposals (RFP) specifications package. By virtue of its proposal submittal, the proposer acknowledges agreement with and acceptance of all provisions of the RFP specifications. b) Proposal Submittal - Each proposal must be submitted in the format described in the RFP specifications and accompanied by any other required submittals for 5 supplemental materials. Proposal documents shall be submitted in person or by mail to City of La Quinta, Finance Department, 78495 Calle Tampico, La Quinta, CA 92253 by 5:00 p.m. on March 1, 2017. c) Proposal Quotes - The prices quoted by the proposer must be entered in figures as described in Section 9G of the General Proposal Requirements. d) Proposal Withdrawal - A proposer may withdraw its proposal, without prejudice prior to the deadline submission, by submitting a written request to the Finance Director for its withdrawal. e) Proposal Retention and Award - The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non -substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. f) Competency and Responsibility of Proposer - The City reserves full discretion to determine the competence and responsibleness, both professionally and financially, of proposers. Proposers will provide, in a timely manner, all information that the City deems necessary to make such a decision. g) Contract Requirement - The proposer to whom the award is made (Contractor) shall execute a written contract with the City within ten calendar days after notice of the award has been sent by mail to the address given in its proposal. The contract shall conform with the form adopted by the City and incorporated in these specifications as Exhibit A. h) Insurance Requirements - The Contractor shall provide proof of insurance in the form specified in Exhibit A within ten (10) calendar days after notice of contract award as a precondition to the contract execution. i) Business License- The Contractor must have a valid City of La Quinta business license before execution of the contract. Additional information regarding the City's Business License program may be obtained through the City's website or by calling (760) 777-7000. 8. CONTRACT PERFORMANCE a) Ability to perform - The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city and special district laws, ordinances, and regulations. A The City expects that the professional staff provided by the independent audit firm will be fully qualified with the appropriate experience, and that answers and guidance given will be provided by partner/manager (supervisor and above) not seniors and juniors. b) Safety Provisions - The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. c) Contractor non -Discrimination - In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ to engage in, discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, religion, or any characteristic covered by prevailing California anti -discrimination laws, of such persons. d) Work Delays - Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any of Act of God, or by the inability to obtain materials, equipment, or labor due to Federal Government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. e) Manner of Payment - Progress payments will be made on the basis of hours of work completed during the course of the engagement in accordance with the firm's dollar cost bid proposal. Interim billings shall cover a period of not less than a calendar month. Final payment will be made upon delivery of the firm's final reports. f) Working Papers - All working papers and reports must be retained, at the auditor's expense, for a minimum of seven (7) years after the conclusion of the engagement, unless the firm is notified in writing by the City of La Quinta Finance Director of the need to extend the retention period. The auditor will be required to make working papers available, upon request by the City. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. g) Contract Term - The contract will have a five-year term. At the end of each year, the City reserves the right to terminate services for the subsequent year upon 30 days notification. h) Field Work - The City anticipates and expects the major field work for the City to begin on or near the last work week of September of each year. This does not include preliminary field work which may occur in April, May, or June. 7 i) Draft Reports - The auditor shall provide draft copies of the audit reports and management letter no later than November 20 of each year. j) Final Reports - The auditor shall provide final copies of the audit reports and management letter no later than December 10 of each year. k) Attendance at Meetings and Hearings - As part of the scope of work, and included in the contract price, is attendance by the Contractor at up to three public meetings to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing scope of work tasks. 9. GENERAL PROPOSAL REQUIREMENTS As stated in the evaluation process, the proposal will first be examined relative to technical qualifications and approach to the audit. The technical proposal should address all the points outlined in the request for proposals. The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer's capabilities to satisfy the requirements of the request for proposals. While additional data may be presented, each organization's proposal should include at a minimum, the following information as is deemed necessary: (please number each item as listed below) A. Independence The firm should provide an affirmative statement that it is independent of the City as defined by generally accepted auditing standards and the U.S. General Accounting Office's Government Auditing Standards (1994). The firm also should provide an affirmative statement that it is independent of all of the component units of the City, as defined by those same standards. The firm should also list and describe the firm's professional relationships involving the City or any of its agencies and component units for the past five years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. In addition, the firm shall give the City written notice of any such professional relationships entered into during the period of this agreement. B. License to Practice in California An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in California. C. Firm Qualifications and Experience The proposer should state the size of the firm, the size of the firms' governmental audit staff, the location of the office from which the work on this engagement is to be performed, the number and nature of the professional staff to be employed in this engagement on a full- time basis and the number and nature of the staff to be employed in this engagement on a part-time basis. If the proposer is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium should be separately identified and the firm that is to serve as the principal auditor should be noted, if applicable. The firm is also required to submit a copy of the report on its most recent external quality control review, with a statement as to whether that quality control review included a review of specific governmental engagements. The firm shall also provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three years with state regulatory bodies or professional organizations, as well as any pending or settled litigation within the past three years. D) Partner, Supervisory and Staff Qualifications and Experience Identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement. Indicate whether each such person is registered or licensed to practice as a certified public accountant in California. Provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit. Provide as much information as possible regarding the number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. Including the description of any specialized skills, training, or background in public finance that members of the engagement team possess. Indicate how the quality of staff over the term of the agreement will be assured. Include affirmative statement that engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. Consultants and firm specialists mentioned in response to this request for proposal can only be changed with the express prior written permission of the City which retains the right to approve or reject replacements. PJ Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. E. Similar Engagements with other Governmental Entities For the firm's office that will be assigned responsibility for the audit, list the most significant engagements performed in the last five years that are similar to the engagement described in this request for proposal. Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact. A list of all governmental audit clients in this section for the principal office should also be supplied. Include a description of the engagement team's experience in auditing and reviewing financial statements receiving GFOA and CSMFO awards. F. Specific Audit Approach The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in this request for proposal. Proposers will be required to provide the following information on their audit approach: Proposed segmentation of the engagement Sample size and the extent to which statistical sampling is to be used in the engagement Type and extent of analytical procedures to be used in the engagement Methods used to gain and document an understanding of the City of La Quinta's internal control structure. Determination of laws and regulations that will be subject to audit test. Selection of drawing audit samples for purposes of testing compliance Indicate the location of the office in which the audit team will be based. The municipal audit experience referenced in item E above must come from this office. Sample of type of management letter usually issued. G. Total Maximum Price It is the City's normal policy to solicit bids for audit services no less that once every five years, subject to annual review. Accordingly, your proposal should encompass the five-year time span. The City, Housing Authority, and its agencies request a statement of maximum cost be made for the annual audit as set forth in SCOPE OF WORK TO BE PERFORMED, REPORTS TO BE ISSUED AND CONTRACT PERFORMANCE to include, in addition to "normal audit requirements," up to 40 hours each year of partner/manager time answering accounting questions raised by the City. 10 The cost bid should contain all pricing information relative to performing the audit engagement as described in this request for proposal. The total maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses. Cost should be specified for each fiscal year. The City requests that the proposal also include a schedule of rates by professional staff classifications. The schedule should reflect rates for audit services and for consulting services. It should also reflect the anticipated distribution of hours per staff classification. Please itemize fees for the City, Housing Authority, Successor Agency, Financing Authority, and partner/manager hours. The maximum annual fee will remain fixed for the five years covered by the audit engagement agreement. The City will not be responsible for expenses incurred in preparing and submitting the technical proposal and cost bid. Such costs should not be included in the proposal. The cost bid must include the following information: Certification that the person signing the proposal is entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with the City of La Quinta. A total maximum price for the five-year engagement. H) Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated for Each The cost bid should include a schedule of professional fees and expenses, which supports the total maximum price. Separate form should be prepared for each of the fiscal years 2016- 17, 2017-2018, 2018-2019, 2019-2020, and 2020-2021. I) Out -of -Pocket Expenses in the Total Maximum Price and Reimbursement Rates All estimated out-of-pocket expenses to be reimbursed should be presented on the second page of the cost bid. All expense reimbursements will be charged against the total maximum price submitted by the firm. J) Rates for Additional Professional Services If it should become necessary for City to request the auditor to render any additional services to either supplement the services requested in this RFP or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only if set forth in an addendum to the contract between City and the firm. Any such additional work agreed to between City and 11 the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the cost bid. K) Insurance Certificate Each proposal must include a certificate of insurance showing: 1. The insurance carrier. 2. Scope of coverage and limits. 3. Deductibles and self -insured retention. The purpose of this submittal is to generally assess the adequacy of the proposer's insurance coverage during proposal evaluation; endorsements are not required until contract award. 10. EVALUATION AND SELECTION PROCESS Prior to submission deadline questions may be directed to: Karla Campos Finance Director/ Treasurer City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 (760)777-7073 Proposer must submit five copies of the audit proposal to the City of La Quinta Finance Department in two clearly labeled sealed envelopes, with one envelope containing costs of the proposed audit services and the other technical data. Deadline for submission is 5:00 p.m. March 1, 2017. The evaluation process consists of the following steps: 1. The proposals will be evaluated and rated by a selection committee consisting of the Investment Advisory Board, up to two Council members, and two Finance staff members based on the technical qualifications and approach of the proposer. Final proposals will be selected from those organizations and ranked based on their technical qualifications, approach, and price score. 2. The finalists will be required to make an oral presentation to the evaluation committee. Selection of the successful proposal will be at the sole discretion of the City Council. It is expected the City Council will conduct its review and make a selection before April 30, 2017. 12 THE CITY COUNCIL REQUESTS THAT ONCE PROPOSALS HAVE BEEN SUBMITTED, NO UNSOLICITED CONTACT OR DISCUSSIONS CONCERNING THESE PROPOSALS BE MADE PRIOR TO THE EVALUATION OF ALL PROPOSALS. 11. OTHER INFORMATION A. Name and Telephone Number of Principal Contact The auditor's principal contact with the City will be the Accounting Manager, who will coordinate the assistance to be provided by the City to the auditor. They can be contacted at 760-777-7150. B. Background Information The City of La Quinta encompasses approximately 31 square miles, has a residential population of slightly more than 38,394 and is located in the Coachella Valley approximately 25 miles east of Palm Springs, CA. Incorporated in 1982, governed by a Charter, the City is operated under a City Council/City Manager form of government. Four City Council members are elected at large to serve four- year terms. The Mayor is elected, serving a two-year term to be the City Council administrative head. The Mayor/City Council also serve as Housing Authority members. The City and its agencies have expanded the use of technology and reporting for much of the finance and budget activities. This department currently consists of seven staff members. The City contracts for some services to its residents and businesses including police, fire, water and refuse disposal. As of June 30, 2016, City employment totaled 78 full-time and 14 part-time employees. The City participates in the State of California Public Employees' Retirement System (PERS). Copies of the City's recent audited financial statements and budgets are located online at www.la-quinta.org. 13 The City of La Quinta uses the following fund types and account groups in its financial reporting: Fund Type/Account Group Number of Individual Funds Number of Funds on CAFR General Fund 1 1 Special Revenue Funds 18 18 Debt Service Funds 5 1 Capital Projects Funds 8 8 Enterprise Funds 2 1 Internal Service Funds 4 4 Agency Funds 7 4 Private Purpose Funds 1 1 The City of La Quinta prepares its budgets on a basis consistent with generally accepted accounting principles. The City currently uses Tyler Technologies (Incode 10) operating financial software. 14 Request for Proposals - Auditing Services PROJECT START RFP ANNOUNCED DRAFT RF REPAIRED 1 Nov 1 Dec 1 Jan 1 1 Feb DRAFT UPDATED PROJECT DETAILS 11 / 1 /2016 Project Start 11/15/2016 Draft RFP prepared 12/15/2016 Draft Updated 1/24/2017 RFP Announced 3/1/2017 RFP Deadline 3/3/2017 Distribute RFP's to Panel 3/20/2017 Comparing Ratings 3/20/2017 Select Top 3 or 4 Firms 4/3/2017 Audit Firm Interviews 4/3/2017 Combine RFP and Interview Scores 4/7/2017 Draft Staff Report 4/12/2017 Finalize Staff Report 4/ 18/2017 City Council Approval PROJECT DETAILS Draft shared with IAB City's Website, CSMFO, individual emails DRAFT STAFF REPORT DISTRIBUTE RFP'S TO PANEL COMBINED SCORING SELECT TOP 3 OR 4 FIRMS CITY COUNCIL s 1 Mar 1 Apr RFP DEADLINE COMPARING RATINGS FIRM INTERVIEWS FINALIZE STAFF REPORT Week of 3/20/17, Date based on availability of panel Week of 4/3/ 17, Date based on availability of panel Week of 4/3/ 17, Date based on availability of panel City Council may want panelist to attend for confirmatoin of selection DATE MILESTONE POSITION 11/l/2016 Project Start 25 11/15/2016 Draft RFP prepared 10 12/15/2016 Draft Updated -10 1/24/2017 RFP Announced 15 3/1/2017 RFP Deadline -10 3/3/2017 Distribute RFP's to Panel 25 3/20/2017 Comparing Ratings -15 3/20/2017 Select Top 3 or 4 Firms 15 4/3/2017 Firm Interviews -23 4/3/2017 Combined Scoring 25 4/7/2017 Draft Staff Report 35 4/ 12/2017 Finalize Staff Report -30 4/ 18/2017 City Council 15