2016 08 05 IABP
Investment 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 STUDY SESSION ROOM
78-495 Calle Tampico, La Quinta
REGULAR MEETING ON WEDNESDAY, AUGUST 10, 2016 AT 4:00 P.M.
CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
APPOINTMENT OF OFFICERS
1. Appointment of Investment Advisory Board Chairperson
2. Appointment of Investment Advisory Board Vice -Chairperson
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.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. Approval of the Minutes of May 11, 2016
CONSENT CALENDAR
1. Receive and File the Fourth Quarter Fiscal Year 2015/2016 Treasury and Pooled
Money Reports for April and May 2016
INVESTMENT ADVISORY BOARD AGENDA 1 AUGUST 10, 2016
BUSINESS SESSION
1. Overview of Fiscal Year 2016/2017 Investment Policy and Work Plan Items
CORRESPONDENCE AND WRITTEN MATERIALS - None
BOARD MEMBER ITEMS
DIRECTORS ITEMS
1. Update on the Fiscal Year 2016/2017 Budget
2. Update on consideration to expand the Investment Advisory Board Duties
ADJOURNMENT
The next regular meeting of the Investment Advisory Board will be held on November
9, 2016 commencing at 4:00 p.m. at the La Quinta Caucus Room, 78-495 Calle
Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, Monika Radeva, Deputy City Clerk, 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 August 5, 2016.
DATED: August 5, 2016
MONIKA RADEVA, Deputy City Clerk
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 777-7123, 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 City Council, arrangements should be made in advance by
contacting the City Clerk's office at 777-7123. 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 Deputy City Clerk 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 AUGUST 10, 2016
INVESTMENT ADVISORY BOARD
MINUTES
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CALL TO ORDER
A regular meeting of the La Quinta Investment Advisory Board was called to order at
4:00 p.m. by Chairman Mortenson.
PRESENT: Board Members Park, Mortenson, Donais and Batavick
ABSENT: None
STAFF PRESENT: Finance Director Rita Conrad, Management Assistant, Vianka
Orrantia and Accounting Manager, Karla Campos
PUBLIC COMMENT - None
CONFIRMATION OF AGENDA - Confirmed
APPROVAL OF MINUTES
Motion - A motion was made and seconded by Board Members Batavick/Park to
approve the Minutes of February 10, 2016 as submitted. Motion passed unanimously.
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1. Receive and File the Third Quarter Fiscal Year 2015/2016 Treasury and Pooled
Money Reports for January, February, and March 2016
Motion - A motion was made and seconded by Board Members Park/Donais to receive
and File the Third Quarter Fiscal Year 2015-2016 Treasury and Pooled Money Reports
for January, February, and March 2016.
BUSINESS SESSION
1. Consideration of Fiscal Year 2016/2017 Investment Policy and Work Plan Items
Finance Director Conrad presented the red lined updated investment policy and work
plan items with the suggested revisions from the meeting on February 10, 2016.
Motion - It was moved and seconded by Board Members Batavick/Park to approve the
2016/2017 Investment Policy and Work Plan Items. Motion passed unanimously
INVESTMENT ADVISORY MINUTES 1 MAY 11, 2016
2. Consideration of Fiscal Year 2016/2017 Meeting Schedule
Finance Director Conrad presented the proposed meeting schedule for fiscal year
2016/2017. The Investment Advisory Board is scheduled to meet on August 10, 2016;
November 9, 2016; February 8, 2017 and May 10, 2017 for the upcoming fiscal year.
Motion - It moved and seconded by Board Members Donais/Park to approve the
2016/2017 Investment Policy and Work Plan Items. Motion passed unanimously.
CORRESPONDENCE AND WRITTEN MATERIAL - None
BOARD MEMBER ITEMS - None
DIRECTOR'S ITEMS
ADJOURNMENT
There being no further business, it was moved and seconded by Board Members
Park/Donais to adjourn this meeting at 4:20 p.m. Motion passed unanimously.
Respectfully submitted,
Karla Campos, Finance Director
City of La Quinta, California
INVESTMENT ADVISORY MINUTES 2 MAY 11, 2016
CONSENT CALENDAR ITEM NO. 1
City of La Quinta
INVESTMENT ADVISORY BOARD MEETING: August 10, 2016
STAFF REPORT
AGENDA TITLE: TRANSMITTAL OF 4th QUARTER FISCAL YEAR 2015/2016 TREASURY
AND POOLED MONEY REPORTS (APRIL AND MAY 2016).
RECOMMENDATION
Receive and File the 4th Quarter FY 2015-2016 Treasury and Pooled Money Reports
(April and May 2016).
BACKGROUND/ANALYSIS
Attached are the 4th Quarter FY 2015-16 (April and May 2016) Treasury Reports and
Pooled Money Investment Reports. Reports for period ending June 30, 2016 will be
presented after the full accrual period for the fiscal year has closed on August 30,
2016. Staff will present the final June 30, 2016 report at the November 9, 2016.
Treasurer's Commentary on 4th Quarter FY 2015-2016
For the 4th quarter period of FY 2015-2016 (April 1, 2016 through May 31, 2016) the
City's total portfolio increased by $8.2 million from $119.4 million to $127.6 million.
The larger receipts in the 4th Quarter of FY 2015-2016 by month were:
April 2016
• $653,600 of sales tax revenue
• $629,339 of property tax payment
May 2016
• $3.74 million property tax payment
• $2.09 million in Educational Revenue Augmentation Funds (ERAF)
• $1.66 million for insurance settlement from flood damages
The larger disbursements (not including monthly payroll costs) in the 4th Quarter of
FY 2015-2016 by month were:
April 2016
• $1.9 million to Riverside County Sheriff Department for police
$309,399 to LandMark for contract golf management at SilverRock
• $72,760 to Conserve Landcare for landscape services
May 2016
• $949,192 to Riverside County Sheriff Department for police services
• $320,363 to LandMark for contract golf management at SilverRock
Investment Activity
April 2016
$1 million was transferred from LAIF to the City's checking to cover operating
expenses
• 2 new US Government Sponsored Enterprises of $2,500,000 and $2,491,250
were purchased to replace one matured US Government Sponsored Enterprise
• Bank fees in April were $3,039 and the sweep account earned $11 in interest
income
Average investment maturity in April was 353 days as compared to 314 days in
March
May 2016
• $8 million was transferred to LAIF from the City's checking account
• One new Certificate of Deposit of $240,000 was purchased to replace one
matured Certificate of Deposit of $240,230
• Bank fees for the month of May were $2,800.54 and the sweep account earned
$21 in interest income
• Average investment maturity in May was 319 days as compared to 353 days in
April
Port folio Performance
April 2016 - Overall portfolio performance in April of .64% was in line with the .65%
performance in March. At April 30, 2015 the portfolio yielded was .15% with an
average maturity of 248 days.
May 2016- Overall portfolio performance in May was similar to April at .59%. In May
of last year the portfolio yielded was .14% with an average maturity of 174 days.
Looking Ahead
The Treasurer follows a "buy and hold" investment policy. In the short term the
Treasurer will invest in negotiable certificates of deposits, GSE securities, U.S.
Treasuries and LAIF as needed.
ALTERNATIVES, - None.
Prepared by: Karla Campos, Finance Director
Attachments: 1. Treasurer's Report for April 30, 2016
2. Treasurer's Report for May 31, 2016
tev 0a ig
GEM ofsee DESERT —
TO: La Quinta City Council
FROM: Karla Campos, Finance Director/Treasurer
SUBJECT: Treasurer's Report for April 30, 2016
DATE: May 26, 2016
Attached is the Treasurer's Report for the month ending April 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 03/31/16
Purchased
Notes
Sold/Matured
Ending
Chan e
LAIF
26,390,848
$ 30,520
$ (1,000,000)
$ 25,421,368
(969,480)
Interest bearing active bank deposit
-
Certificates of Deposit
10,931,756
10,931,756
0
US Treasuries
19,916,150
19,916,150
0
US Gov't Sponsored Enterprises
23,024,920
4,991,250
28,016,170
4,991,250
Commercial Paper
-
-
-
Corporate Notes
-
Mutual Funds
31,327,011
1 158
51,336
31,275.833
51,178
Subtotal
$ 111,590,685
$ 5.021,928
$ 1,051,338
$ 115,561.277
$ 3.970.592
Cash $ 7,707,457 1 & Qj $ 3.812,576 $ 3.894.881 $ 3,812,576
Total $ 119,298,142 $ 5,021.928 1 $ 4.863,912 $ 119,456,158 $ 158,016
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 and the Bank of New York
and First Empire monthly custodian reports to determine the fair market value of investments at month end.
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
April 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.
U.S. Government Sponsored Enterprises and Federal
Government Securities ( except any collateralized mortgage
obligation (CMO) or structured note which contains embedded
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
Medium Term Corporate Notes - 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)
85.00% 3.25 %-81.75%
60.00% 9.15 % -50.85 %
100.00%
16.67%
-83.33%
30.00%
23.46%
-6.54%
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)
15.00%
0.00%
-15.00%
5,000,000
5,000,000
(5,000,000)
(5,000,000)
20.00%
-20.00%
10,000,000
(10,000,000)
10,000,000
(10,000,000)
30.00%
21.28 %
-8.72 %
10.00%
0.00%
10.00
10.00%
0.00%
-10.00%
20.00%
26.18%
6.18%
Investment Agreements for bond proceeds and/or reserve funds. N/A 0.00% N/A
Total 100.00 %
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
0.823 %
0.020%
0.606 %
Surplus
Maximum
Surplus
%
Surplus
Over (Under)
Restrictions
Maximu
Maturitym
Credit Quality
Exceptions
85.00% 1.00%-84.00%
<=$250,000 per institution 3 years FDIC Insured None
60.00% 9.38%-50.62%
<=$250,000 per institution 5 years FDIC Insured None
100.00%
17.06%
-82.94%
Except no more than $8
million may be invested
over 2 years
10 years
None
30.00%
24.00%
-6.00%
Restricted to per -issuer
limits below:
3 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
$28,000,000
$ (67,000,000)
$95.0 million
15.00%
0.00%
-15.00%
15 %
days
Standard & Poors/Moody's
None
�90
A-1, P-1
10.00% 0.00% -10.00%
$10,000,000 per Issuer
3 years
at least Standard & Poors "AA"
None
30.00%
21.78 %
-8.22 %
$50,000,000 per account
Utilize DVP
3 years
Unrated
None
10.00%
0.00%
-10.00%
$30,000,000 per account
10 years
10.00%
0.00%
-10.00%
3years
20 %
26.79%
6.79 %
Maintain $1 per share
par value.
Utilize DVP
60 days
AAA by two of three rating
agencies or assets of $500 million
and investor SEC licensed > 5 yr:
None
N/A 0.00% N/A
None
100.00%
City of La Quinta
Summary of Holdings
City, Redevelopment Agency and Financing Authority
April 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
Checking
0.00%
$ 2,716,721
N/A
$ 2,716,721
$ 2,992,841
Petty 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
13,437
N/A
13,437
-
Washington St. Apts. - Demand
Yes
Operating
N/A
144,325
N/A
144,325
144,961
Washington St. Apts. - Demand
Yes
Taxes & Insurance Acct
0.00%
15,171
N/A
15,171
13,071
Washington St. Apts. - Demand
Yes
Security Deposit
0.05 %
27,576
N/A
27,576
27,576
Washington St. Apta. - Demand
Yes
Savings
0.05 %
256,862
N/A
256,862
256,862
Washington St. Apts. - Demand
Yes
Money Market
0.00%
N/A
-
Washington St. Apts. - Demand
Yes
Replacement Reserve CD
0.35 %
600,000
N/A
600,000
600,000
Washington St. Apts. Petty Cash - Demand
Yes
N/A
0.00%
200
N/A
200
200
Wells Fargo/Housing -Demand
Yes
Checking
0.00%
118,889
N/A
118,889
122,758
Total - Bank Accounts
$ 3,894,881
$ 3,894,881
$ 4,159,969
U. S. Government Sponsored Enterprises
Custodian - Availability
Surplus
Type/ Mood 's Rating
Discount/
Rate
Fair value a106/30/15
Ceent year addition
or g
Unrealized
Gain Loss
Fair
Value
Accrued
Interest
Days
to Maturit
Original
Purchase Price
Settlement
Date
First Call Date
Maturity
Date
Original Days
to Maturity
Yield to
Maturity
Market Value
Source
Bank of New York - Demand
Yes
FNMA AAA
0.750%
$ 13,165,492
$ (11,038)
$ 13,154,454
12,593
318
$ 13,000,000
06/17/13
03/14/14
03/14/17
1366
0.750%
Bank of New York
Bank of New York - Demand
Yes
FNMA AAA
0.750%
4,869,428
(4,082)
4,865,346
4,658
318
5,000,000
05/30/13
03/14/14
03/14/17
1384
0.750%
Bank of New York
First Empire Securities - Demand
Yes
FHLMC AAA
1.750%
4,990,000
55,600
5,045,600
29,410
1,521
5,000,000
06/29/15
06/29/17
06/29/20
1827
1.750%
First Empire Securites
First Empire Securities - Demand
Yes
FHLMC AAA
1.250%
2,500,000
(5,050)
2,494,950
174
1,824
2,500,000
04/28/16
10/28/16
04/28/21
1826
1.250%
First Empire Securites
First Empire Securities- Demand
Yes
FHLB AAA
1.423%
2,491,250
1,325
2,489,925
187
1,824
2,500,000
04/28/16
10/28/16
04/28/21
1826
1.423%
First Empire Securites
Total - U.S. Government Securities
$ 28,016,170
$ 34,105
$ 28,050,275
$ 47,022
$ 28,000,000
U. S. Treasury Notes
Custodian - Availabili
Surplus
Issuer/Type
Discount/
Rate
Fair Value an 06/30/15
or Want year addition
w
Unrealized
Gain Loss
Fair
Value
Accrued
Interest
Days
to MaturityPurchase
Original
Price
Settlement
Date
First Call Date
Maturity
Date
Original Days
to MaturityMaturitySource
Yield to
Market Value
First Empire Securities - Demand
Yes
T-Note
1.431 %
$ 4,890,650
$ 100,350
$ 4,991,000
$ 20,765
1,309
$ 5,000,000
06/03/15
N/A
11/30/19
1641
1.431 %
First Empire Securities
First Empire Securities - Demand
Yes
T-Note
0.362%
5,008,000
(5,950)
5,002,050
2,049
153
5,000,000
07/31/15
N/A
09/30/16
427
0.362 %
First Empire Securities
First Empire Securities- Demand
Yes
T-Note
0.487%
5,001,000
(2,150)
4,998,850
6,181
276
5,000,000
07/31/15
N/A
01/31/17
550
0.487%
First Empire Securities
First Empire Securities - Demand
Yes
T-Note
0.279%
5,016,500
13,300
5,003,200
9,100
76
5,000,000
07/31/15
N/A
07/15/16
350
0.279%
First Empire Securities
Total -U.S. Treasury
$ 19,916,150
$ 78,950
$ 19,995,100
$ 38,095
$ 20,000,000
Certicates of Deposit
Custodian - Availabili
Surplus
Issuer/Type
Yield
Price
Fair Velue of 16130/15
nentyeareddition
Unrealized
Gain Loss
Fair
Value
Accrued
Interest
Days
to Maturit
Original
Purchase Price
Settlement
Date
First Call Date
Maturity
Date
Original Days
to MaturityMatudl
Yield to
Market Value
Source
G.E. Cap Bank CTF Dep Prgrm
Yes
G.E. Capital Bank CD
1.100%
238,992
1,390
240,382
998
593
$ 240,000
12/14/12
N/A
12/14/17
1826
1.100%
G.E. Capital Bank
Goldman Sachs
Yes
Goldman Sachs CD
1.500%
239,230
1,324
240,554
1,006
598
240,000
12/14/12
N/A
12/19/17
1831
1.150%
Goldman Sachs
Amex Centurion
Yes
Amex Centurion Bank CD
1.000%
242,794
1,080
243,874
999
830
240,000
08/08/13
N/A
08/08/18
1826
1.900%
Amex Centurion Bank
CitiBank
Yes
Citibank CD
1.000%
242,832
1,104
243,936
949
836
240,000
08/14/13
N/A
08/14/18
1826
1.900%
CitiBank CD
Webster Bank
Yes
Webster Bank CD
1.800%
241,445
2,714
244,159
83
1,088
240,000
04/23/14
N/A
04/23/19
1826
1.800%
Webster Bank
BMW Bank
Yes
BMW Bank CD
1.900%
241,426
2,721
244,147
62
1,090
240,000
04/25/14
N/A
04/25/19
1826
1.900%
BMW Bank
Medallion Bank
Yes
Medallion Bank CD
1.350%
240,739
221
240,960
53
725
240,000
04/25/14
N/A
04/25/18
1461
1.350%
Medallion Bank
Barclays Bank
Yes
Barclays Bank CD
1.900%
241,390
2,750
244,140
12
1,094
240,000
04/29/14
N/A
04/29/19
1826
1.900%
Barclays Bank
Third Savings Bank & Loan
Yes
Third Savings Bank & Loan CD
1.250%
240,583
240
240,823
8
728
240,000
04/29/14
N/A
04/28/18
1460
1.250%
Third Savings Bank & Loan
Berkshire Bank
Yes
Berkshire Bank CD
1.350%
240,641
1,152
241,793
-
730
240,000
04/30/14
N/A
04/30/18
1461
1.350%
Berkshire Bank
Crescent Bank
Yes
Crescent Bank CD
1.300%
240,773
(67)
240,706
730
240,000
04/30/14
N/A
04/30/18
1461
1.300%
Crescent Bank
Cornerstone Commercial Bank
Yes
Cornerstone Commercial Bank CD
1.350%
240,641
300
240,941
730
240,000
04/30/14
N/A
04/30/18
1461
1.350%
Cornerstone Commercial Bank
First Merchants Bank
Yes
First Merchants Bank CD
1.500%
241,289
1,949
243,238
730
240,000
04/30/14
N/A
04/30/18
1461
1.500%
First Merchants Bank
Ephrata Bank
Yes
Ephrata Bank CD
1.650%
241,478
2,748
244,226
730
240,000
04/30/14
N/A
04/30/18
1461
1.650%
Ephrata Bank
Parkway Bank & Trust
Yes
Parkway Bank & Trust CD
0.450%
240,230
(223)
240,007
470
23
240,000
05/23/14
N/A
05/23/16
731
0.450%
Parkway Bank & Trust
Customers Bank
Yes
Customers Bank CD
1.000%
240,732
127
240,859
1,012
395
240,000
05/28/14
N/A
05/30/17
1098
1.000%
Customers Bank
Traverse City
Yes
Traverse City CD
1.100%
240,557
813
241,370
579
240,000
05/30114
N/A
11/30/17
1280
1.100%
Traverse City
Merrick Bank
Yes
Merrick Bank CD
1.350%
240,648
1,193
241,841
186
739
240,000
05/09/14
N/A
05/09/18
1461
1.350%
Merrick Bank
Regal Bank
Yes
Regal Bank CD
1.400%
240,799
1,486
242,285
129
807
240,000
05/16/14
N/A
07/16/18
1522
1.400%
Regal Bank
Synchrony G.E. Cap Retail Bank CD (Draper
Yes
Synchrony G.E. Capital Retail Bank
2.000%
241,274
2,789
244,063
2,354
1,097
240,000
05/02/14
N/A.
05/02/19
1826
2.000%
Synchrony G.E. Cap (Draper)
First Business Bank
Yes
First Business Bank CD
1.750%
241,210
2,932
244,142
1,864
1,115
240,000
05/20/14
N/A
05/20/19
1826
1.750%
First Business Bank
Gulf Coast Bank
Yes
Gulf Coast Bank CD
1.750%
241,305
1,117
242,422
126
1,115
240,000
05/19/14
N/A
05/20/19
1827
1.750%
Gulf Coast Bank
Peapack -Goldstone Bank
Yes
Peapack -Goldstone Bank CD
1.800%
241,231
2,988
244,219
23
1,123
240,000
05/28/14
N/A
05/28/19
1826
1.800%
Peapack -Goldstone Bank
Washington Trust
Yes
Washington Trust CD
0.650%
240,667
(175)
240,492
611
254
240,000
06/09/14
N/A
01/09/17
945
0.650%
Washington Trust
TCF National Bank
Yes
TCF National Bank
0.700%
247,640
628
248,268
708
401
248,000
06/03/15
N/A
06/05/17
733
0.700%
TCF National Bank
Towne Bank
Yes
Towne Bank
0.900%
247,638
640
248,278
856
408
248,000
06/12/15
N/A
06/12/17
731
0.900%
Towne Bank
tat National -Mayfield
Yes
tat National -Mayfield
1.000%
247,167
1,356
248,523
129
590
248,000
06/11/15
N/A
12/11/17
914
1.000%
1st National -Mayfield
Independent Bank
Yes
Independent Bank
0.900%
246,983
1,505
248,488
110
622
248,000
06/12/15
N/A
01/12/18
945
0.900%
Independent Bank
Embassy National
Yes
Embassy National
1.000%
246,661
1,699
248,360
88
685
248,000
06/17/15
N/A
03/16/18
1003
1.000%
Embassy National
Carolina Alliance
Yes
Carolina Alliance
1.000%
246,698
1,696
248,394
75
688
248,000
06/19/15
N/A
03/19/18
1004
1.000%
Carolina Alliance
South Atlantic
Yes
South Atlantic
1.000%
246,584
813
247,397
142
704
248,000
06/09/15
N/A
04/04/18
1030
1.000%
South Atlantic
Compass Bank
Yes
Compass Bank
1.350%
246,289
2,016
248,305
1,348
766
248,000
06/05/15
N/A
06/05/18
1096
1.350%
Compass Bank
MB Financial Bank
Yes
MB Financial Bank
1.100%
246,348
2,009
248,357
187
766
248,000
06/05/15
N/A
06/05/18
1096
1.100%
MB Financial Bank
Mfr Trade & Trust
Yes
Mfr Trade & Trust
1.200%
246,234
1,902
248,136
1,158
772
248,000
06/10/15
N/A
06/11/18
1097
1.200%
Mfr Trade & Trust
Morton Community
Yes
Morton Community
1.250%
246,001
2,979
248,980
153
956
248,000
06/12/15
N/A
12/12/18
1279
1.250%
Morton Community
Farmers & March
Yes
Farmers & Merch
1.250%
246,001
3,202
249,203
212
1,011
248,000
06/05/15
N/A.
02/05/19
1341
1.250%
Farmers & March
Solomon State
Yes
Solomon State
1.400%
245,825
3,832
249,657
247
1,130
248,000
06/04/15
N/A
06/04/19
1461
1.400%
Solomon State
Connect One
Yes
Connect One
1.500%
245,817
3,835
249,652
254
1,131
248,000
06105/15
N/A
06/05/19
1461
1.500%
Connect One
Riverwood
Yes
Riverwood
1.400%
245,565
4,461
250,026
238
1,223
248,000
06/05/15
N/A
09/05/19
1553
1.400%
Riverwood
EverBank
Yes
EverBank
1.700%
244,798
6,490
251,288
1,698
1,497
248,000
06/05/15
N/A
06/05/20
1827
1.700%
EverBank
Capital One
Yes
Capital One
1.900%
241,790
6,434
248,224
1,811
1,502
245,000
06/10/15
N/A
06/10/20
1827
1.900%
Capital One
Bank MidWest
Yes
Bank Mid West
1.650%
244,811
6,577
251,388
202
1,504
248,000
06/12/15
N/A
06/12/20
1827
1,650%
Bank Mid West
Ally Bank Midvale
Yes
Ally Bank Midvale
1.700%
240,000
2,134
242,134
1,430
968
240,000
12/24/15
N/A
12/24/18
1096
1.700%
Ally Bank Midvale
Wells Fargo Bank
Yes
Wells Fargo Bank
1.200%
240,000
1,942
241,942
31
1,032
240,000
02/26/16
N/A
02/26/19
1096
1.200%
Wells Fargo Bank
Comeni Ca ital Bank
Yes
Comenit Ca i[al Bank
1.700 %
240,000
252
239,748
89
1,759
240,000
02/22/16
N/A
02/22/21
1827
1.700%
Comenit Capital Bank
Total -Certificates of Deposit
Average CD Yield
2.222%
$ 1Q931,756
$ 8$571
$ 11,020,327
$ 22,111
$ 10,941,000
City of La Quints
Summary of Holdings
City, Redevelopment Agency and Financing Authority
ADril 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
0.51%
$ 25,421,368
$ -
$ 25,421,368
$
N/A
1.75%-Q/E 03/31/16
5.00%
Total - State Pool
$ 25,421,368
1 $ -
I $ 25,421,368
Total City Investments
Total City Cash 8 Investments
Fiscal Agent Investments
$ 24,285,444 $ 201,626 $ 84,487,070 $ 107,228
$ 88,180,325 $ 201,626 $ 88,381,952 $ 107,223
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
1stAmerican
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
1stAmerican
0.020%
-
-
N/A
1
1998 SA U.S. Bank -PA 1Debt Svc
Yes
1st American
0.020%
-
N/A
1
1996 FA Series Bond
Yes
1st American
0.020%
-
-
-
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
1st American
0.020%
-
-
-
N/A
1
2011 PA 2 Tax Allocation Bond
Yes
1st American
0.020%
2,420,286
-
2,420,286
N/A
1
2011 PA 2 Tax Allocation Bond
Yes
1st American
0.020%
52
-
52
N/A
1
2011 Financing Authority Debt Service
Yes
1st American
0.020%
69
-
69
N/A
1
2011 PA 2 Tax Allocation Bond
Yes
1st American
0.020%
600,009
-
600,009
N/A
1
2011 Financing Authority Reserve
Yes
1st American
0.020%
2,694,421
-
2,694,421
N/A
1
2011 PA 2 Taxable Revenue Bond
Yes
1st American
0.020%
25,560,947
-
25,560,947
N/A
1
2011 SA 1 Debt Service Fund
Yes
1st American
0.020%
-
-
-
N/A
1
2011 SA 2 Bond Proceeds
Yes
1st American
0.020%
-
-
-
N/A
1
2013 Series A Refunding Bonds
Yes
1st American
0.020%
7
-
7
N/A
1
2013 Series B Refunding Bonds
Yes
1st American
0.020%
2
-
2
N/A
1
2014 Tax Allocation Refunding Bonds
Yes
1st American
0.020%
40
40
N/A
1
Subtotal - Mutual Fund
31,275,833
$
31,275,833
1 $
Total Fiscal Agent Investments
Grand Total
Average Maturity
$ 31,275,833 $ - $ 31,275,833 $
$ 119,456,1581 $ 201,6261 $ 119,657,7851 $ 107,228
353 Days 1 0.64%
City of La Quinta
Summary of Investment Activities
City, Successor Agency and Financing Authority
April 30, 2016
Investments Purchased
Name
Type
Principal
Date
Yield
to Maturity
First Empire Securities
(2) US Securities
4,991,250
LAIF
Quarterly Interest
30,520
US Bank
Mutual Fund Interest
158
Total Investments Purchased
5,021,928
Investments Sold/Matured
Name
Type
Principal
Date
Yield
to Maturity
LAIF-CITY
(1,000,000)
Debt Svc Pymt
(51,336)
Total Investments Sold/Matured
(1,051,336)
Checking & Savings -Net Change 1 (3,812,576)
Investment Change
Prior Month Ending Balance
$ 119,298,142
Plus : Investments Purchased
5,021,928
Less: Investments Sold
(1,051,336)
Checking & Savings - Net Change
3,812,576
Month Ending Balance
119,456,158
City of La Quints
Disbib,b,, of Cash & Investments & Balances
April 30, 2016
Distrlbutlon of Cash & Investments
City
Totals
General Fund
50,423.898
Gas Tax
(34731)
Quimby Fund
5,1471025
AB 939
731,918
InOastmcture Fund
23,460
Developer Impact fees
4,004045
Art in Public Places
612:235
Special Revenue
1,359,757
Interest Fund
43,968
Capital Project Fund
1,185,46]
Equipment Replacement Fund
2,679,451
Information Technology Fund
742528
Park Equipment & Facility
2'562:158
Landscape & Lighting Fund
(510,437)
SilverRock Resort
(699,369)
Trost & Agency Funds
274,859
Insurance Fund
2,412
Su laman[al Pension Plan
139,611
Subtotal
$ 68,688,335
Successor Agency
Totals
Project Area
1
Proj-A..
2
Capital Improvement Funds
$ 6,578,943
$ 4,685,429
$ 11,264,272
Debt Service Fund.
33-261
$ 3,346
Successor Agency
5,019:417
8
$ 5,019,425
Low & Moderate Inmme Funds
25,562741
664
$ 25563,404
Subtotal
$ 37,184:085
$ 4,688,362
E 41,850,.7
Housing Authority
Low & Moderate Inmme Funds
$ 2.559.216
$ 6,358160
$ 8,917,376
Subtotal
$ 2,559,218
1 is 61358,160
1 $ 0,917.375
Financing Authority
Project Fund,
Debt Service Funtl,
0
0
Subtotal
$
Total
E 119,458,1.8
Cash Balances
T e
Jul 15
Au ust
Se lember
October
November
December
Jenua 15
Februa
March
A N
Me
June
Cash & Inveatna-ts
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
0
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
0
Interest beating adi- bank deposit
0
0
0
0
0
0
0
0
0
0
0
U.S. Treasury BilislNotes
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
19,916,150
0
U.S. Govemment Sponsoretl Enlerpdses
28,022,920
28,022,920
28,022,920
28.022.920
28.022,920
26:022,920
28,022,920
28,022,920
23.024,920
28,016,170
0
Pnme Commercial Paper
0
0
0
0
0
0
0
0
0
0
0
Coporale Notes
0
0
0
0
0
0
0
0
0
0
0
Cenifimtes of Deposit
10,933,151
10,933,151
10,933,151
10,933,151
10,933,151
11,111,111
10,933,151
10,931,756
10,931,756
10,931,756
0
Mutual Funds
31,274,730
43,458,172
31,896,605
31,275,023
31275,183
31,275,331
3,.2751497
36,768,919
31,327,011
31,275,833
0
Total
$ 136,926,552
1121,712,175
$ 109,521,951
$ 106,754.747
$ t06,917,191
$104,817,022
$ 123,573,814
$ 125,095,541
$ t19,288,142
$ 119,456,158
$ -
$
T e
Jul 14
Au ust
Se lember
October
November
December
Jenua 15
Februa
March
A nl
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
10,975,972
4,945,233
State Pool
49,040,985
35,540,985
32.540,984
29,567.293
27.367.293
27,367,20
35,885,948
29,885,948
28.885,948
28,905,531
48,905.531
48,923,919
Interest beating active bank deposit
0
0
0
0
0
0
0
0
0
0
0
0
U.S. Treasury BilislNotes
0
0
0
0
0
0
0
0
0
0
0
4,890,650
U.S. Govemment Sponsored Enlerpdses
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
Corpordta 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
8,480,01.
6,410,1.0
6,480.000
6,480,000
6.480.000
10,933.151
Mutual Funds
3t,302,066
42,911,657
31,879,618
31,273,469
31,273,629
31,2]3,784
31,273,944
37,298,633
31,340,838
37,274,260
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
$ 106,512,906
$ 109,418,015
$ 115,607,973
$ 128,990,447
T e
July 13
August
September
October
November
December
J.n..W 14
Februa
March
A ril
May
June
Cash & Invesbnents
437,484
648,459
697,949
1,684,060
565,369
1,931,111
3,557,663
5,680,831
3,591,157
1,334084
3,630,962
8,993,908
State Pool
34424531
18,824,537
17.1.537
11,111,171
17,113,071
18,793,075
25,421,368
31,804,337
31,804,337
31,820,932
33,020,932
49,020,932
Interest bearing active bank deposit
39,962,564
39,964,504
39,966,844
0
0
0
0
0
0
0
0
0
U.B. Tmasury BillslNotes
40,194,271
40,196,750
40,199,752
40,200,518
40,199,481
30,200,805
15,201,841
11,999,484
19,918,150
0
0
0
U.S. Govemment Sponsored Enlerpdses
42,943,426
42,944,752
42,946,036
42,947,363
39,948,647
39,949,973
3.,911,301
31)952,498
39,953,825
39,955,108
39,956,435
37,957,719
Pd.. 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
Cenificates of Deposit
1,440,000
1.680,000
1,680,000
10,931,758
1,680,000
1,680,011
11,911,756
1,680,000
1,680,000
4,080,000
6,240.000
6,480.000
Mutual Funds
3,215,116
15,671,311
3,436,046
2,846,265
2,559,71
12,55%821
18,645,070
25,098,875
33.928.993
33,847,806
33,847,974
33,870,741
Total
$ 162,617,398
$ 159,930,313
$ 146,550,564
$ 114,603,035
$ 102,946,371
$105,116,229
$ 113,708,998
$ 116,216,006
$ 130,874,462
$ 111,037,931
$ 116,696,303
$ 136,323,300
Type
July 12
Au ust
September
Ocober
November
December
Janus 13
Feb..,March
A d
May
June
Cash & Invesbnents
(524,579)
787,300
347,529
(1,030,761)
10,988,854
(487,400)
11706,699
555,858
214:121
42,116
706,238
72,776
Stale Pool
37,144,005
17,769,005
26,519,005
21,646,825
26,246,825
37,946,825
46,871,689
31,771:689
37,971,689
39,501,132
35,801,132
36,801,132
Interest beading active bank deposit
39,975,73
39,941:367
39,955,737
39,972,429
39,987,001
39,898,494
31101111
39:019,093
M,128,379
39,938,373
39,947,649
39,955,556
U.S. Treasury BillslNotes
72,981,334
70,986,318
70,%::311
70,992.M
61,031,070
61,0s3'381
61,035:737
61,036,858
61,037:947
10,9 12 l
40,992,192
1111,71
U.S. Govemment Sponsored Enterprises
8,999,015
8,999,709
0
0
0
0
0
3,000,000
3,000,000
23,000,000
28,000,000
42:942,099
Pnme Commercial Paper
11998,605
4,999,025
4,999,721
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
724,000
480,000
480,000
480,000
480,000
1,200.000
1,200.000
1,680,000
1,680.000
1,680,000
1.680'000
1,440,000
Mutual Funds
16,025,086
15,464,803
2,540,266
2,497,187
2,503,903
2,462,175
2,462,208
9,029,319
2,490,259
2,409,320
2,412,269
3,215,081
Total
$ 187,323,201
$ 159,427,561
$ 145,828,569
$ 142,557,903
$ 141,237,659
$142,053,474
$ 153,185,943
$ 154,992,818
$ 146,322,795
$ 147,Sfi3,742
$ 149,539,480
$ 164,618,433
T e
Jul 11
August
Se lember
October
November
December
Jenua 12
Februa
March
April
May
June
Cash &Investments
281,578
9,976,528
249,778
13,795,085
-1,090,198
979,796
1,057,919
6,838,073
341,072
254,700
2,980,940
455,407
State Pool
21,378,745
17,978,745
17,278,745
15,200,984
26,650,984
39,150,985
39,975,653
31,975:653
36,675,653
35,510,862
39:110.112
38,111,12
Interest bearing active bank deposit
10,001,051
15,007,114
39,514,6t5
39,527,820
39,546,824
39,563,950
39,581,019
39,896,313
39,912,287
39,928,765
39,944,847
39,959,602
U.S. Treasury BillslNotes
58,942,159
58,947,722
72,949,195
60,955,235
60,962,430
43,967,696
43,970,933
58,371,968
58,369,811
73:368,195
72,968,698
792974,913
U.S. Govemment Sponsored Enterprises
19,994,459
19,997,371
14:995,325
14,996,096
14,998,842
14,997,613
23,997,920
23,998,996
23,906,161
8,996,956
8,997:610
8,998,321
Prime Commercial Paper
19,992,888
4.997,433
0
0
0
6,999,427
14,996,537
14,998,717
9.996.828
9,998,388
9,996,.2
11,997,202
Corporate Notes
10,034,373
10,024,534
5,015,752
6,008,776
5,002,025
0
0
0
0
0
0
0
Cenificates of Deposit
724,000
724,000
724,000
724,000
724,000
724;000
724,000
724,000
724,000
724,000
724,000
724,000
Mutual Funds
45,287,175
45,258,832
16,767,608
16,130,247
16,130:247
16,132,569
15,983,994
3,585,189
3,612,38
3,397,985
3,763,623
16,088,410
T0tal
$ 186,636,428
$ 182,912,279
$ 167,495,018
$ 166,338.243
$ 162.923.154
$162,516.036
$ 180.287.975
$ 180,388,909
$ 172,944,050
$ 172,179,851
$ 179,286.862
$ 189,208,717
City of La Quinta
Comparative Rates of Interest
April 30, 2016
of La Quinta
Year
Month
Annualized
Earnings
Average
Maturity (days)
Treasury Bills/Note
Three Month
Non -Financial
LAIF Rate
0.53%
Pooled Cash
Fiscal Agent
Overall
Three Month
ISix Month
One Year
Two Year
FY10/11
July 2010
0.50%
0.15%
0.47%
119
0.16%
0.20%
0.30%
0.63%
0.28%
Aug 2010
0.49%
0.15%
0.46%
108
0.15%
0.19%
0.26%
0.38%
0.25%
0.51%
Sept 2010
0.55%
0.15%
0.51%
107
0.16%
0.19%
0.27%
0.38%
0.24%
0.50%
Oct 2010
0.55%
0.15%
0.51%
88
0.13%
0.17%
0.23%
0.38%
0.23%
0.48%
Nov 2010
0.53%
0.15%
0.49%
84
0.18%
0.21%
0.28%
0.50%
0.23%
0.45%
Dec 2010
0.57%
0.14%
0.52%
265
0.15%
0.19%
0.30%
0.63%
0.23%
0.46%
Jan 2011
0.51%
0.14%
0.43%
206
0.16%
0.18%
0.28%
0.63%
0.24%
0.54%
Feb 2011
0.55%
0.17%
0.46%
210
0.15%
0.17%
0.31%
0.63%
0.23%
0.51%
Mar 2011
0.54%
0.17%
0.45%
218
0.05%
0.13%
0.26%
0.75%
0.23%
0.50%
Apr 2011
0.59 %
0.17%
0.48%
192
0.05%
0.10%
0.28%
0.63%
0.20%
0.59%
May 2011
0.48%
0.17%
0.41%
156
0.06%
0.12%
0.20%
0.50%
0.16%
0.41%
June 2011
0.53%
0.00%
0.35%
126
0.03%
0.10%
0.20%
0.38%
0.15%
0.45%
FY11/12
July 2011
0.53%
0.00%
0.35%
112
0.07%
0.12%
0.15%
0.20%
0.14%
0.38%
Aug 2011
0.60%
0.00%
0.38%
102
0.02%
0.05%
0.10%
0.13%
0.16%
0.41%
Sept 2011
0.58%
0.03%
0.39%
124
0.02%
0.06%
0.09%
0.13%
0.14%
0.38%
Oct 2011
0.53%
0.03%
0.35%
117
0.01 %
0.06%
0.12%
0.25%
0.15%
0.39%
Nov 2011
0.52%
0.03%
0.37%
94
0.03%
0.07%
0.10%
0.25%
0.14%
0.40%
Dec 2011
0.48%
0.03%
0.35%
86
0.02%
0.06%
0.11%
0.13%
0.14%
0.39%
Jan 2012
0.45%
0.03%
0.34%
74
0.05%
0.08%
0.11%
0.25%
0.14%
0.39%
Feb 2012
0.49%
0.05%
0.36%
72
0.12%
0.15%
0.17%
0.25%
0.17%
0.39%
Mar 2012
0.44%
0.05%
0.34%
74
0.08%
0.14%
0.19%
0.25%
0.18%
0.38%
Apr 2012
0.44%
0.09%
0.35%
61
0.10%
0.15%
0.19%
0.25%
0.20%
0.37%
May 2012
0.43%
0.09%
0.34%
62
0.09%
0.14%
0.19%
0.25%
0.19%
0.36%
June 2012
0.38%
0.08%
0.29%
47
0.10%
0.15%
0.21%
0.25%
0.21%
0.36%
FY12/13
July 2012
0.41%
0.08%
0.31%
112
0.11%
0.15%
0.18%
0.22%
0.22%
0.36%
Aug 2012
0.41%
0.08%
0.29%
31
0.11%
0.14%
0.20%
0.25%
0.20%
0.38%
Sept 2012
0.43%
0.09%
0.33%
34
0.11%
0.14%
0.18%
0.25%
0.20%
0.35%
Oct 2012
0.47%
0.10%
0.36%
22
0.13%
0.16%
0.18%
0.25%
0.19%
0.34%
Nov 2012
0.48%
0.10%
0.36%
161
0.10%
0.15%
0.18%
0.25%
0.20%
0.32%
Dec 2012
0.47%
0.10%
0.36%
137
0.08%
0.12%
0.16%
0.13%
0.20%
0.33%
Jan 2013
0.44%
0.10%
0.34%
111
0.08%
0.11%
0.14%
0.25%
0.16%
0.30%
Feb 2013
0.37%
0.10%
0.29%
105
0.13%
0.14%
0.15%
0.25%
0.17%
0.29%
Mar 2013
0.39%
0.09%
0.30%
123
0.08%
0.11%
0.15%
0.25%
0.15%
0.29%
Apr 2013
0.31%
0.08%
0.25%
186
0.05%
0.08%
0.14%
0.13%
0.12%
0.26%
May 2013
0.30%
0.06%
0.23%
175
0.05%
0.08%
0.14%
0.25%
0.10%
0.25%
June 2013
0.30%
0.07%
0.23%
212
0.05%
0.09%
0.16%
0.38%
0.10%
0.24%
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%
FY14/15
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%
026%
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%
FY15/16
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%
Sept2015
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
ADr 2016
0.82 %
0.02%
0.61 %
353
0.22%
0.40 %
0.62%
0.75%
0.48%
0.53%
City of La Quinta
Chart of Interest Rates
November 2015 through April 2016
1.00%
0.90%
0.80%
0.70%
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
NoV15 Dec'15 Jan'16 Feb'16 Marl Apr'16
Months
— — Annualized Earnings -Pooled Cash Investments Annualized Earnings -Fiscal Agent Invesmrents - Annualized Earnings -All m Month Treasury Bill Rate Year Treasury Note Rate
GEM ofthe DESERT —
TO: La Quinta City Council
FROM: Karla Campos, Finance Director/Treasurer
SUBJECT: Treasurer's Report for May 31, 2016
DATE: July 14, 2016
Attached is the Treasurer's Report for the month ending May 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 04/30/16
Purchased
Notes
Sold/Matured
Ending
Change
LAIF
25,421,368
$ 8,000,000
$ 33,421,368
8,000,000
Interest bearing active bank deposit
-
Certificates of Deposit
10,931,756
240,000
(240,230)
10,931,526
(230)
US Treasuries
19,916,150
19,916,150
0
US Gov't Sponsored Enterprises
28,016,170
28,016,170
0
Commercial Paper
-
-
Corporate Notes
-
-
-
Mutual Funds
31,275,833
157
1 31,275,990
1 157
Subtotal
$ 115561,277
$ 8,240,157
$ 240230
$ 123,561,204
$ 7.999,927
Cash $ 3,894,881 1 & 2 $ 185,525 1 $ 4,080.406 1 $ 185,525
Total $ 119,456,158 $ 8,240,157 1 1 $ 54,705 $ 127,641,610 1 $ 8,185,452
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 and the Bank of New York
and First Empire monthly custodian report to determine the fair market value of investments at month end.
46�
Karla Campos
Finance Director/Treasurer
Footnote
(1) The amount reported represents the net increase (decrease) of deposits and withdrawals from
the previous month.
I -y-•ZO U
Date
(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
May 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.
U.S. Government Sponsored Enterprises and Federal
Government Securities ( except any collateralized mortgage
obligation (CMO) or structured note which contains embedded
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
Medium Term Corporate Notes - 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)
85.00% 3.20 %-81.80%
60.00% 8.56 % -51.44 %
100.00%
15.60%
-84.40%
30.00%
21.95%
-8.05%
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)
15.00%
0.00%
-15.00%
5,000,000
5,000,000
(5,000,000)
(5,000,000)
20.00%
-20.00%
10,000,000
(10,000,000)
10,000,000
(10,000,000)
30.00%
26.18 %
-3.82 %
10.00%
0.00%
10.00
10.00%
0.00%
-10.00%
20.00%
24.50%
4.50%
Investment Agreements for bond proceeds and/or reserve funds. N/A 0.00% N/A
Total 100.00 %
Annualized Earnings of Pooled Cash Investments
Annualized Earnings of Fiscal Agent Investments
Annualized Earnings of All Investments
0.798 %
0.020%
0.601 %
Surplus
Maximum
Surplus
%
Surplus
Over (Under)
Restrictions
Maximu
Maturitym
Credit Quality
Exceptions
85.00% 0.96%-84.04%
<=$250,000 per institution 3 years FDIC Insured None
60.00% 8.78%-51.22%
<=$250,000 per institution 5 years FDIC Insured None
100.00%
15.96%
-84.04%
Except no more than $8
million may be invested
over 2 years
10 years
None
30.00%
22.46%
-7.54%
Restricted to per -issuer
limits below:
3 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
$28,000,000
$ (67,000,000)
$95.0 million
15.00%
0.00%
-15.00%
15 %
days
Standard & Poors/Moody's
None
�90
A-1, P-1
10.00% 0.00% -10.00%
$10,000,000 per Issuer
3 years
at least Standard & Poors "AA"
None
30.00%
26.78 %
-3.22 %
$50,000,000 per account
Utilize DVP
3 years
Unrated
None
10.00%
0.00%
-10.00%
$30,000,000 per account
10 years
10.00%
0.00%
-10.00%
3years
20 %
25.07%
5.07 %
Maintain $1 per share
par value.
Utilize DVP
60 days
AAA by two of three rating
agencies or assets of $500 million
and investor SEC licensed > 5 yr:
None
N/A 0.00% N/A
None
100.00%
City of La Quinta
Summary of Holdings
City, Redevelopment Agency and Financing Authority
May 31, 2016
City Cash & Investments
Bank Accounts
Name-Availabili
Surplus
Type
Interest
Rate
Book
Value
Unrealized
Gain Loss
Fair
Value
Bank
Wells Fargo -Demand
Yes
Checking
0.00%
$ 2,827,861
N/A
$ 2,827,861
$ 3,101,545
Petty 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
55,511
N/A
55,511
55,511
Washington St. Apts. - Demand
Yes
Operating
N/A
154,953
N/A
154,953
156,772
Washington St. Apts. - Demand
Yes
Taxes & Insurance Acct
0.00%
17,271
N/A
17,271
17,271
Washington St. Apts. - Demand
Yes
Security Deposit
0.05 %
27,576
N/A
27,576
27,576
Washington St. Apta. - Demand
Yes
Savings
0.05 %
262,304
N/A
262,304
262,304
Washington St. Apts. - Demand
Yes
Money Market
0.00%
N/A
-
Washington St. Apts. - Demand
Yes
Replacement Reserve CD
0.35 %
600,000
N/A
600,000
600,000
Washington St. Apts. Petty Cash - Demand
Yes
N/A
0.00%
200
N/A
200
200
Wells Fargo/Housing -Demand
Yes
Checking
0.00%
133,030
N/A
133,030
136,250
Total - Bank Accounts
$ 4,080,406
$ 4,080,406
$ 4,359,129
U. S. Government Sponsored Enterprises
Custodian - Availability
Surplus
Type/ Mood 's Rating
Discount/
Rate
Fair Vawe at 06/30/15
cu nantyear addition
Unrealized
Gain Loss
Fair
Value
Accrued
Interest
Days
to Maturit
Original
Purchase Price
Settlement
Date
First Call Date
Maturity
Date
Original Days
to MaturityMaturitySource
Yield to
Market Value
Bank of New York - Demand
Yes
FNMA AAA
0.750%
$ 13,165,492
$ (23,390)
$ 13,142,102
21,079
287
$ 13,000,000
06/17/13
03/14/14
03/14/17
1366
0.750%
Bank of New York
Bank of New York - Demand
Yes
FNMA AAA
0.750%
4,869,428
(8,650)
4,860,778
7,796
287
5,000,000
05/30/13
03/14/14
03/14/17
1384
0.750%
Bank of New York
First Empire Securities - Demand
Yes
FHLMC AAA
1.750%
4,990,000
48,100
5,038,100
36,944
1,490
5,000,000
06/29/15
06/29/17
06/29/20
1827
1.750%
First Empire Securites
First Empire Securities - Demand
Yes
FHLMC AAA
1.250%
2,500,000
(8,725)
2,491,275
2,865
1,793
2,500,000
04/28/16
10/28/16
04/28/21
1826
1.250%
First Empire Securites
First Empire Securities - Demand
Yes
FHLB AAA
1.423%
2,491,250
10,825
2,480,425
3,094
1,793
2,500,000
04/28/16
10/28/16
04/28/21
1826
1.423%
First Empire Securites
Total - U.S. Government Securities
$ 28,016,170
$ (3,490)
$ 28,012,680
$ 71,778
$ 28,000,000
U. S. Treasury Notes
Custodian - Availabili
Surplus
Issuer/Type
Discount/
Rate
Fair Value an 06/30/15
or pant year addition
w
Unrealized
Gain Loss
Fair
Value
Accrued
Interest
Days
to MaturityPurchase
Original
Price
Settlement
Date
First Call Date
Maturity
Date
Original Days
to MaturityMaturitySource
Yield to
Market Value
First Empire Securities - Demand
Yes
T-Note
1.431 %
$ 4,890,650
$ 87,500
$ 4,978,150
$
1,278
$ 5,000,000
06/03/15
N/A
11/30/19
1641
1.431 %
First Empire Securities
First Empire Securities - Demand
Yes
T-Note
0.362%
5,008,000
(7,350)
5,000,650
4,167
122
5,000,000
07/31/15
N/A
09/30/16
427
0.362%
First Empire Securities
First Empire Securities - Demand
Yes
T-Note
0.487%
5,001,000
(5,150)
4,995,850
8,310
245
5,000,000
07/31/15
N/A
01/31/17
550
0.487%
First Empire Securities
First Empire Securities - Demand
Yes
T-Note
0.279%
5,016,500
14,250
5,002,250
11,762
45
5,000,000
07/31/15
N/A
07/15/16
350
0.279%
First Empire Securities
Total -U.S. Treasury
$ 19,916,150
$ 60,750
$ 19,976,900
$ 24,239
$ 20,000,000
Certicates of Deposit
Custodian - Availabili
Surplus
Issuer/Type
Yield
Price
Fair Value of O6130/15
Went year addition
Unrealized
Gain Loss
Fair
Value
Accrued
Interest
Days
to Maturit
Original
Purchase Price
Settlement
Date
First Call Date
Maturity
Date
Original Days
to MaturityMaturity
Yield to
Market Value
Source
G.E. Cap Bank CTF Dep Prgrm
Yes
G.E. Capital Bank CD
1.100%
238,992
1,694
240,686
1,222
562
$ 240,000
12/14/12
N/A
12/14/17
1826
1.100%
G.E. Capital Bank
Goldman Sachs
Yes
Goldman Sachs CD
1.500%
239,230
1,629
240,859
1,240
567
240,000
12/14/12
N/A
12/19/17
1831
1.150%
Goldman Sachs
Amex Centurion
Yes
Amex Centurion Bank CD
1.000%
242,794
1,612
244,406
1,387
799
240,000
08/08/13
N/A
08/08/18
1826
1.900%
Amex Centurion Bank
CitiBank
Yes
Citibank CD
1.000%
242,832
1,646
244,478
1,337
805
240,000
08/14/13
N/A
08/14/18
1826
1.900%
CitiBank CD
Webster Bank
Yes
Webster Bank CD
1.800%
241,445
4,056
245,501
450
1,057
240,000
04/23/14
N/A
04/23/19
1826
1.800%
Webster Bank
BMW Bank
Yes
BMW Bank CD
1.900%
241,426
4,070
245,496
450
1,059
240,000
04/25/14
N/A
04/25/19
1826
1.900%
BMW Bank
Medallion Bank
Yes
Medallion Bank CD
1.350%
240,739
747
241,486
53
694
240,000
04/25/14
N/A
04/25/18
1461
1.350%
Medallion Bank
Barclays Bank
Yes
Barclays Bank CD
1.900%
241,390
4,115
245,505
400
1,063
240,000
04/29/14
N/A
04/29/19
1826
1.900%
Barclays Bank
Third Savings Bank & Loan
Yes
Third Savings Bank & Loan CD
1.250%
240,583
600
241,183
263
697
240,000
04/29/14
N/A
04/28/18
1460
1.250%
Third Savings Bank & Loan
Berkshire Bank
Yes
Berkshire Bank CD
1.350%
240,641
1,656
242,297
9
699
240,000
04/30/14
N/A
04/30/18
1461
1.350%
Berkshire Bank
Crescent Bank
Yes
Crescent Bank CD
1.300%
240,773
477
241,250
9
699
240,000
04/30/14
N/A
04/30/18
1461
1.300%
Crescent Bank
Cornerstone Commercial Bank
Yes
Cornerstone Commercial Bank CD
1.350%
240,641
835
241,476
9
699
240,000
04/30/14
N/A
04/30/18
1461
1.350%
Cornerstone Commercial Bank
First Merchants Bank
Yes
First Merchants Bank CD
1.500%
241,289
2,664.
243,953
306
699
240,000
04/30/14
N/A
04/30/18
1461
1.500%
First Merchants Bank
Ephrata Bank
Yes
Ephrata Bank CD
1.650%
241,478
4,121
245,599
336
699
240,000
04/30/14
N/A
04/30/18
1461
1.650%
Ephrata Bank
Customers Bank
Yes
Customers Bank CD
1.000%
240,732
151
240,883
20
364
240,000
05/28/14
N/A
05/30/17
1098
1.000%
Customers Bank
Traverse City
Yes
Traverse City CD
1.100%
240,557
1,044
241,601
548
240,000
05/30/14
N/A.
11/30/17
1280
1.100%
Traverse City
Merrick Bank
Yes
Merrick Bank CD
1.350%
240,648
1,692
242,340
195
708
240,000
05/09/14
N/A
05/09/18
1461
1.350%
Merrick Bank
Regal Bank
Yes
Regal Bank CD
1.400%
240,799
2,035
242,834
138
776
240,000
05/16/14
N/A
07/16/18
1522
1.400%
Regal Bank
Synchrony G.E. Cap Retail Bank CD (Draper
Yes
Synchrony G.E. Capital Retail Bank
2.000%
241,274
4,162
245,436
368
1,066
240,000
05/02/14
N/A
05/02/19
1826
2.000%
Synchrony G.E. Cap (Draper)
First Business Bank
Yes
First Business Bank CD
1.750%
241,210
4,358
245,568
127
1,084
240,000
05/20/14
N/A
05/20/19
1826
1.750%
First Business Bank
Gulf Coast Bank
Yes
Gulf Coast Bank CD
1.750%
241,305
2,571
243,876
138
1,084
240,000
05/19/14
N/A
05/20/19
1827
1.750%
Gulf Coast Bank
Peapack -Goldstone Bank
Yes
Peapack -Goldstone Bank CD
1.800%
241,231
4,426
245,657
35
1,092
240,000
05/28/14
N/A
05/28/19
1826
1.800%
Peapack -Goldstone Bank
Washington Trust
Yes
Washington Trust CD
0.650%
240,667
(129)
240,538
744
223
240,000
06/09/14
N/A
01/09/17
945
0.650%
Washington Trust
TCF National Bank
Yes
TCF National Bank
0.700%
247,640
700
248,340
856
370
248,000
06/03/15
N/A
06/05/17
733
0.700%
TCF National Bank
Towne Bank
Yes
Towne Bank
0.900%
247,638
717
248,355
1,046
377
248,000
06/12/15
N/A
06/12/17
731
0.900%
Towne Bank
list National -Mayfield
Yes
1st National -Mayfield
1.000%
247,167
1,661
248,828
136
559
248,000
06/11/15
N/A
12/11/17
914
1.000%
1st National -Mayfield
Independent Bank
Yes
Independent Bank
0.900%
246,983
1,868
248,851
116
591
248,000
06/12/15
N/A
01/12/18
945
0.900%
Independent Bank
Embassy National
Yes
Embassy National
1.000%
246,661
2,185
248,846
95
654
248,000
06/17/15
N/A
03/16/18
1003
1.000%
Embassy National
Carolina Alliance
Yes
Carolina Alliance
1.000%
246,698
2,188
248,886
82
657
248,000
06/19/15
N/A
03/19/18
1004
1.000%
Carolina Alliance
South Atlantic
Yes
South Atlantic
1.000%
246,584
1,384
247,968
149
673
248,000
06/09/15
N/A
04/04/18
1030
1.000%
South Atlantic
Compass Bank
Yes
Compass Bank
1.350%
246,289
2,584
248,873
1,633
735
248,000
06/05/15
N/A
06/05/18
1096
1.350%
Compass Bank
MB Financial Bank
Yes
MB Financial Bank
1.100%
246,348
2,579
248,927
194
735
248,000
06/05/15
N/A
06/05/18
1096
1.100%
MB Financial Bank
Mfr Trade & Trust
Yes
Mfr Trade & Trust
1.200%
246,234
2,488
248,722
1,411
741
248,000
06/10/15
N/A
06/11/18
1097
1.200%
Mfr Trade & Trust
Morton Community
Yes
Morton Community
1.250%
246,001
3,946
249,947
161
925
248,000
06/12/15
N/A
12/12/18
1279
1.250%
Morton Community
Farmers & March
Yes
Farmers & March
1.250%
246,001
4,360
250,361
221
980
248,000
06/05/15
N/A
02/05/19
1341
1.250%
Farmers & Merch
Solomon State
Yes
Solomon State
1.400%
245,825
5,392
251,217
257
1,099
248,000
06/04/15
N/A
06/04/19
1461
1.400%
Solomon State
Conned One
Yes
Connect One
1.500%
245,817
5,392
251,209
265
1,100
248,000
06/05/15
N/A
06/05/19
1461
1.500%
Connect One
Riverwood
Yes
Riverwood
1.400%
245,565
6,150
251,715
247
1,192
248,000
06/05/15
N/A
09/05/19
1553
1.400%
Riverwood
EverBank
Yes
EverBank
1.700%
244,798
8,494
253,292
2,056
1,466
248,000
06/05/15
N/A
06/05/20
1827
1.700%
EverBank
Capital One
Yes
Capital One
1.900%
241,790
8,399
250,189
2,206
1,471
245,000
06/10/15
N/A
06/10/20
1827
1.900%
Capital One
Bank Midwest
Yes
Bank Mid West
1.650%
244,811
8,573
253,384
213
1,473
248,000
06/12/15
N/A
06/12/20
1827
1.650%
Bank MidWest
Ally Bank Midvale
Yes
Ally Bank Midvale
1.700%
240,000
3,072
243,072
1,777
937
240,000
12/24/15
N/A
12/24/18
1096
1.700%
Ally Bank Midvale
Wells Fargo Bank
Yes
Walls Fargo Bank
1.200%
240,000
3,122
243,122
39
1,001
240,000
02/26/16
N/A
02/26/19
1096
1.200%
Wells Fargo Bank
Comenity Capital Bank
Yes
Comenity Capital Bank
1.700%
240,000
1,279
241,279
101
1,728
240,000
02/22/16
N/A
02/22/21
1827
1.700%
Comenity Capital Bank
PrivateBank &Trust
Yes
PrivateBank & Trust
1.5001
240,000
533
239,467
49
1,821
240,000
05/26/16
N/A
05/26/21
1826
1.500%
PrivateBank & Trust
Total - Certificates of Deposit
Average CD Yield
2.261%
$ 10,931,526
$ 126,232
$ 11,057,758
$ 22,546
$ 10,941,000
City of La Quints
Summary of Holdings
City, Redevelopment Agency and Financing Authority
Mav 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
0.51%
$ 33,421,368
$ -
$ 33,421,368
$
N/A
1.75%-Q/E 03/31/16
5.00%
Total - State Pool
$ 33,421,368
1 $ -
I $ 33,421,368
Total City Investments
Total City Cash & Investments
Fiscal Agent Investments
$ 92,285,214 $ 183,492 $ 92%8,706 $ 118,563
$ 96,365,620 $ 183,492 $ 96,549,113 1 $ 113,563
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
1stAmerican
0.020%
$ -
$ -
$
N/A
1
.40% of Average Daily
Civic Center U.S.Bank - Debt Svc
Yes
1stAmerican
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
1stAmerican
0.020%
-
-
N/A
1
1998 SA U.S. Bank -PA 1Debt Svc
Yes
1st American
0.020%
-
N/A
1
1996 FA Series Bond
Yes
istAmerican
0.020%
-
-
-
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
1st American
0.020%
-
-
-
N/A
1
2011 PA 2 Tax Allocation Bond
Yes
1st American
0.020%
2,420,286
-
2,420,286
N/A
1
2011 PA 2 Tax Allocation Bond
Yes
1st American
0.020%
64
-
64
N/A
1
2011 Financing Authority Debt Service
Yes
1stAmerican
0.020%
69
-
69
N/A
1
2011 PA 2 Tax Allocation Bond
Yes
1st American
0.020%
600,012
-
600,012
N/A
1
2011 Financing Authority Reserve
Yes
1st American
0.020%
2,694,436
-
2,694,436
N/A
1
2011 PA 2 Taxable Revenue Bond
Yes
1st American
0.020%
25,561,074
-
25,561,074
N/A
1
2011 SA 1 Debt Service Fund
Yes
1stAmerican
0.020%
-
-
-
N/A
1
2011 SA 2 Bond Proceeds
Yes
1st American
0.020%
-
-
-
N/A
1
2013 Series A Refunding Bonds
Yes
istAmerican
0.020%
7
-
7
N/A
1
2013 Series B Refunding Bonds
Yes
istAmerican
0.020%
2
-
2
N/A
1
2014 Tax Allocation Refunding Bonds
Yes
1st American
0.020%
40
40
N/A
1
Subtotal - Mutual Fund
31,275,990
$
31,275,990
$
Total Fiscal Agent Investments
Grand Total
Average Maturity
$ 31,275,990 1 $ - 1 $ 31,275,990 $
$ 127,641,6101 $ 183,4921 $ 127,825,1031 $ 118,563
319 Days 1 0.59
City of La Quinta
Summary of Investment Activities
City, Successor Agency and Financing Authority
May 31, 2016
Investments Purchased
Name
Type
Principal
Date
Yield
to Maturity
First Empire Securities
CD
240,000
LAIF
8,000,000
US Bank
Mutual Fund Interest
157
Total Investments Purchased
8,240,157
Investments Sold/Matured
Name
Type
Principal
Date
Yield
to Maturity
First Empire Securities
CD
(240,230)
Total Investments Sold/Matured
1
(240,230)
Checking & Savings -Net Change 1 1 $ 185,525
Investment Change
Prior Month Ending Balance
$ 119,456,158
Plus : Investments Purchased
8,240,157
Less: Investments Sold
(240,230)
Checking & Savings - Net Change
185,525
Month Ending Balance
127,641,610
City of La Quints
Dishibu8on of Cash & Investments & Balances
May 31, 2016
Distribution of Cash & Investments
City
Totals
General Fund
56.714,172
Gas Tax
(76208)
Quimby Fund
5,1471025
AB 939
731,2fi8
In0astmdure Fund
23,460
Developer Impact fees
4,064754
Art in Public Places
613:531
Special Revenue
1,427,688
Interest Fund
85,833
Capital Project Fund
1T427033
Equipment Replacement Fund
2,718:585
Information Technology Fund
752125
Park Equipment & Facility
2'6071766
Landscape & Lighting Fund
(215,075)
SilverRock Resort
400,512
Trost & Agency Funds
302,449
Insurance Funtl
49,184
Su lemen[al Pension Plan
139,611
subtotal
$ 76,911,713
Suece.... Agency
Totals
Project Area
1
PmjectArea
2
Capital Improvement Funds
$ 6,578,943
$ 4,633,527
$ 11,212,370
Debt Service Fund.
33-261
$ 3,US
Successor Agency
5,013:594
8
$ 5,013,fi02
Low & Moderate In- Funds
25,562,866
664
$ 25,563,530
subtotal
$ 37,158,388
$ 4,634,460
$ 41,792,848
Housing Authority
Low & Moderate Inmme Funds
$ 2.560,S421
$ 6,376,207
$ 8,937,049
Subtotal
$ 2,560,842
1 is 5,376,207
$ 8,93],049
Financing Authority
Project Funtls
Debt Service Funtls
0
0
subtotal
$
Total
$ 127,641,610
Cash Belanw
T e
Jul 15
Au ust
Se tember
October
November
December
nu Jea 15
Februa
March
Aril
May
June
Cash & Invesbnents
12,827,791
1,62%972
3.401.315
1.230'-a
2,393,262
2,292,938
2,035248
2,064,948
7,707,457
3,894,881
4,080,406
0
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
0
Interest bearing adi- bank deposit
0
0
0
0
0
0
0
0
0
0
0
0
U.S. Treasury BillslNotes
19,916,t50
19,916,150
19,916,150
19,916,150
19,916,150
19,916,150
19,'16, 1"
19.916,150
19,916.150
19,916,150
19,916,150
0
U.S. Govemment Sponsoetl Enterpdses
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
28,016,170
28,016,1]0
0
Prime Commercial Paper
0
0
0
0
0
0
0
0
0
0
0
0
Coporate Notes
0
0
0
0
0
0
0
0
0
0
0
0
Certificates af Deposit
10,933,151
10,933,151
10,933,151
10,933,151
10,933,151
10,933,151
11,131,111
10.931,756
10,931.756
10,931,756
10,931,526
0
Mutual Funds
31,274,730
43,458,172
31,896,605
31,275,023
31,2]5,183
31,275,338
3, 215,497
36,768,919
31,327,011
31,275,833
31 2]5,990
0
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
$ 119,4%158
$ 127,641,610
$
T e
Jul 14
August
September
October
November
Demmber
Jenua 15
Februa
March
Aril
May
a
June
Cash & Imsstments
7.148,056
2,012131
3, 135,406
1,490,701
2,497,575
4,025,819
4,805,279
1,200,665
1,836,675
4,78T,495
10,975,972
4,945,233
State Pool
49,040,985
35,540,985
32,540,9
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 BillslNotes
0
0
0
0
0
0
0
0
0
0
0
4,890,650
U.S. Go rn.rd Sponsored Enterpdses
37,959,046
37,960,372
37,%1,656
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 d Deposit
6,"0,000
6.480.000
6,480,000
6,480,000
6,480,000
6,480,000
8,480,000
6,480,000
6,480.000
6,480,000
6:4841:10
10,933.151
Mutual Funds
31,302,066
42,911,657
31,879,618
31,273,469
31,273,629
31,213:784
31,273,044
37:298,633
31,340,838
31,274,260
31,277 415
31:274,574
Total
$ 131,930,153
$ 124,905,145
$ 111,997,664
$ 106,774,446
$ 106,682.764
$ 107,112,489
$ 116,412,091
$ 112,833,364
$ 106,612.906
$ 109,418,015
$ 116,607,973
$ 128,990,447
T e
Jul 13
August
September
Ocober
November
December
Jenua 14
Februa
March
Aril
Ma
June
Cash & Invesbn-ts
437,484
648,459
697,949
1,684,060
665,369
1,931,555
3,557,663
5,680,831
3,591,157
1,334,084
3,630,962
8,993,908
State Pool
34,424,537
18,824,537
17,624.537
15,993,075
17,993,075
18,793,075
33,421,368
31,804,337
31,804,337
31,820,932
33,020,932
49,020,932
Interest beadng active bank deposit
39:12,564
39,964,504
39,966,844
0
0
0
0
0
0
0
0
0
U.S. Tmasury BillslNotes
40,194,2]i
40,196,]50
40,199, 152
40,200,516
40,199,4at
30,200,805
15,201,841
11,999,484
19,916,150
0
0
0
U.S. Govemment Sponsored Enterpdses
42,943,426
42,944,752
42,946,036
42,947,363
39,948,647
39,949,973
39,951,300
39,952,498
39,953,825
39,955,109
39,956,435
37,967,719
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
1,440,000
1.680,000
1,680,000
10,931,528
1,680,000
1,880,000
10,931,526
1,680,000
1,880,000
4,080,000
6,240.000
6,480,000
Mutual Funds
3,215,116
15,671,311
3,436,046
2,846,265
2,559,799
12,559,821
18,645,070
25,098,875
33,928,993
33,847,806
33,847,974
33,870,741
Total
$ 162.617,398
$ 159,930,313
$ 146,550,564
$ 114,602,805
$ 102,946,371
$105,116,229
$ 121.708.768
$ 116,216,005
$ 730,874,462
$ 111,037,931
$ 116,696,303
$ 136,323,300
T e
Jul 12
Au ust
Se tember
Ocober
November
December
Jenua 13
Feb..,March
Aril
May
June
Cash & Investments
(524,579)
787,300
347,529
(1,030,761)
10,988,8S
(487;400)
1,706,699
555,858
214,521
42,116
706,238
72,776
Stale Pool
37:144,005
17,]69,111
26:111,111
21,146,121
26,246,825
37,946,825
46,871,689
3%771,689
37,971,689
39,501,132
35,801,132
36,801,132
Interest besting active bank deposit
39,975,73
39,941,367
39,955,737
39,972,429
39:117,007
39,898,494
31109,510
39,919,093
39,928,379
39,938,373
39,947:141
19,955,556
U.S. Treasury BillslNotes
72,981,334
70,986,318
70,986,311
70,992,223
61,031,070
61,033,380
61,035,]37
61,036:81
11,117,947
40,992,801
40,992,192
40,191,789
U.S. Govemment Sponsored Enterpdses
8,999,015
8,999,709
0
0
0
0
0
3,000,000
3,000,000
23,000,000
28,000,000
42,942,099
Pd.. Commercial Paper
11,998,605
4,999,025
4,999,721
0
0
0
0
0
0
0
0
0
Corporte Notes
0
0
0
0
0
0
0
0
0
0
0
0
Certificates of Deposit
724,000
480,000
480,000
480,000
480,000
1,200.000
1:201.110
1,680,000
1:680,000
1,680,000
1.680'000
1,440,000
Mutual Funds
16,025,086
15,464,803
2,540,266
2,497,187
2,503,903
2,462,175
2,462,208
9,029,319
2,490,259
2,409,320
2,412,269
3,215,081
Total
$ 187,323,201
$ 159,427,561
$ 145,828,569
$ 142,557,903
$ 141,237,659
$142,053,474
$ 153,185,943
$ 154,992,818
$ 146,322,795
$ 147,563,742
$ 149,539,480
$ 164,618,433
T e
Jul 11
August
September
Ocober
November
December
Jenua 12
Februa
March
Aril
May
June
Cash &Investments
281,578
9,976,528
249,778
13,795,085
-1,090,198
979,796
1,057,919
6,838,073
343,072
254,700
2,980,940
415.407
State Pool
2t,378,745
17.978,745
17:278,745
15,200,984
26,650,984
39,150,985
39,975,653
31,975,653
36,675,653
35,510,862
39,910,862
38,010,862
Interest bearing active bank deposit
11:11,051
15,007,114
39,514,615
39,527,820
39,546,824
39,%3,950
39,581,019
39,896,313
39,912,287
39,928,765
39,944,847
39,959,602
U.S. Treasury BillslNotes
58,942,159
58,94],]22
72,949,32
60,955,235
60,962,430
43,967,696
43,910,933
58,371,.13
58,369,810
73,368,195
]2,968,698
72,974,913
U.S. Govemment Sponsored Enterprises
19,994,459
19,997,371
14:995,325
14,996,096
14,998,842
14,997,613
23,997,920
23,998,99'
23,996,161
1996,956
8,997,650
8,998,321
Pdme Commercial Paper
19,992,888
4.997:431
0
0
0
6,999,427
14,996,537
14,998,717
9,996,828
9,998,388
9,996,342
11,997,202
Corporate Notes
10,034,373
10,024,534
5,015,752
5,008:776
5.002,025
0
0
0
0
0
0
0
Cedificates of Deposit
724,000
724,000
724:000
724,000
724,000
724,000
724,000
724,000
724,000
724,000
724,000
724,000
Mutual Funds
45,287,175
45,258,832
16,767,608
16,130,247
16,130,247
16,132,569
15,983,994
3,585,189
3,612,38
3,397,985
3,763.623
16,088,410
Total
$ 186,636,428
$ 182,912,279
$ 167,495,018
$ 166,338.243
$ 162.923.154
$162,516.036
$ 180.287.975
$ lflu 8,909
$ 172,944,050
$ 172,17B,851
$ 179,286,862
$ 189,208,717
City of La Quinta
Comparative Rates of Interest
May 31, 2016
of La Quints
Year
Month
Annualized
Earnings
Average
Maturity (days)
Treasury Bills/Note
Three Month
Non -Financial
LAIF Rate
0.53%
Pooled Cash
Fiscal Agent
Overall
Three Month
ISix Month
One Year
Two Year
FY10/11
July 2010
0.50%
0.15%
0.47%
119
0.16%
0.20%
0.30%
0.63%
0.28%
Aug 2010
0.49%
0.15%
0.46%
108
0.15%
0.19%
0.26%
0.38%
0.25%
0.51%
Sept 2010
0.55%
0.15%
0.51%
107
0.16%
0.19%
0.27%
0.38%
0.24%
0.50%
Oct 2010
0.55%
0.15%
0.51%
88
0.13%
0.17%
0.23%
0.38%
0.23%
0.48%
Nov 2010
0.53%
0.15%
0.49%
84
0.18%
0.21%
0.28%
0.50%
0.23%
0.45%
Dec 2010
0.57%
0.14%
0.52%
265
0.15%
0.19%
0.30%
0.63%
0.23%
0.46%
Jan 2011
0.51%
0.14%
0.43%
206
0.16%
0.18%
0.28%
0.63%
0.24%
0.54%
Feb 2011
0.55%
0.17%
0.46%
210
0.15%
0.17%
0.31%
0.63%
0.23%
0.51%
Mar 2011
0.54%
0.17%
0.45%
218
0.05%
0.13%
0.26%
0.75%
0.23%
0.50%
Apr 2011
0.59 %
0.17%
0.48%
192
0.05%
0.10%
0.28%
0.63%
0.20%
0.59%
May 2011
0.48%
0.17%
0.41%
156
0.06%
0.12%
0.20%
0.50%
0.16%
0.41%
June 2011
0.53%
0.00%
0.35%
126
0.03%
0.10%
0.20%
0.38%
0.15%
0.45%
FY11/12
July 2011
0.53%
0.00%
0.35%
112
0.07%
0.12%
0.15%
0.20%
0.14%
0.38%
Aug 2011
0.60%
0.00%
0.38%
102
0.02%
0.05%
0.10%
0.13%
0.16%
0.41%
Sept 2011
0.58%
0.03%
0.39%
124
0.02%
0.06%
0.09%
0.13%
0.14%
0.38%
Oct 2011
0.53%
0.03%
0.35%
117
0.01 %
0.06%
0.12%
0.25%
0.15%
0.39%
Nov 2011
0.52%
0.03%
0.37%
94
0.03%
0.07%
0.10%
0.25%
0.14%
0.40%
Dec 2011
0.48%
0.03%
0.35%
86
0.02%
0.06%
0.11%
0.13%
0.14%
0.39%
Jan 2012
0.45%
0.03%
0.34%
74
0.05%
0.08%
0.11%
0.25%
0.14%
0.39%
Feb 2012
0.49%
0.05%
0.36%
72
0.12%
0.15%
0.17%
0.25%
0.17%
0.39%
Mar 2012
0.44%
0.05%
0.34%
74
0.08%
0.14%
0.19%
0.25%
0.18%
0.38%
Apr 2012
0.44%
0.09%
0.35%
61
0.10%
0.15%
0.19%
0.25%
0.20%
0.37%
May 2012
0.43%
0.09%
0.34%
62
0.09%
0.14%
0.19%
0.25%
0.19%
0.36%
June 2012
0.38%
0.08%
0.29%
47
0.10%
0.15%
0.21%
0.25%
0.21%
0.36%
FY12/13
July 2012
0.41%
0.08%
0.31%
112
0.11%
0.15%
0.18%
0.22%
0.22%
0.36%
Aug 2012
0.41%
0.08%
0.29%
31
0.11%
0.14%
0.20%
0.25%
0.20%
0.38%
Sept 2012
0.43%
0.09%
0.33%
34
0.11%
0.14%
0.18%
0.25%
0.20%
0.35%
Oct 2012
0.47%
0.10%
0.36%
22
0.13%
0.16%
0.18%
0.25%
0.19%
0.34%
Nov 2012
0.48%
0.10%
0.36%
161
0.10%
0.15%
0.18%
0.25%
0.20%
0.32%
Dec 2012
0.47%
0.10%
0.36%
137
0.08%
0.12%
0.16%
0.13%
0.20%
0.33%
Jan 2013
0.44%
0.10%
0.34%
111
0.08%
0.11%
0.14%
0.25%
0.16%
0.30%
Feb 2013
0.37%
0.10%
0.29%
105
0.13%
0.14%
0.15%
0.25%
0.17%
0.29%
Mar 2013
0.39%
0.09%
0.30%
123
0.08%
0.11%
0.15%
0.25%
0.15%
0.29%
Apr 2013
0.31%
0.08%
0.25%
186
0.05%
0.08%
0.14%
0.13%
0.12%
0.26%
May 2013
0.30%
0.06%
0.23%
175
0.05%
0.08%
0.14%
0.25%
0.10%
0.25%
June 2013
0.30%
0.07%
0.23%
212
0.05%
0.09%
0.16%
0.38%
0.10%
0.24%
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%
FY14/15
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%
026%
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%
FY15/16
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%
Sept2015
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%
Mav, 2016
0.80 %
0.02%
0.60 %
319
0.29%
0.44%
0.70 /
0.88%
0.48%
0.55
City of La Quinta
Chart of Interest Rates
December 2015 through May 2016
1.00%
0.90%
0.80%
0.70%
0.60%
0.50%
0.40%
0.30%
0.20%
0.10%
0.00%
Dec'15 Jan'16 Feb'16 Mar % Apr'16 May'16
— 0 — Annualized Earnings of Pooled Cash Investments � Annualized Earnings of Fiscal Agent Investments
Months
Annualized Earnings of All Investments — Six Month Treasury Bill Rate — Two Year Treasury Note Rate
BUSINESS SESSION ITEM NO. 1
City of La Quinta
INVESTMENT ADVISORY BOARD MEETING: August 10, 2016
STAFF REPORT
AGENDA TITLE: OVERVIEW OF INVESTMENT ADVISORY BOARD INVESTMENT POLICY AND
WORK PLAN FOR FISCAL YEAR 2016/2017
RECOMMENDATION
Review the Investment Advisory Board Investment Policy and Work Plan for Fiscal Year
2016/2017.
EXECUTIVE SUMMARY
Each year, the City's Boards and Commissions review their current work plans in
order to provide an opportunity for potential modifications to the existing plans.
The current work plan for the Investment Advisory Board (IAB) reflects the five
principal functions of the Board as set forth in the City's Municipal Code.
Two years ago the IAB spent significant time revamping the City's Investment Policy. The
changes adopted at this time are minor. The changes suggested by the IAB consisted of
the following:
PAGE 8: Column of Permissible Deposits and Investments
Delete "Negotiable Certificate of Deposit"
Decrease "Certificate of Deposit" from 60% to 30%
PAGE 10: Delete, under Money Market Mutual Funds; and maintain a par value of
$1 per share
PAGE 11: Delete Negotiable Certificates of Deposit definition
PAGE 12: Delete, listed under Money Market Mutual Funds; "that are money
market funds maintaining a par value of $1 per share."
FISCAL IMPACT - None.
BACKGROUND/ANALYSIS
On May 11, 2016 the IAB approved the draft FY 2016/2017 Investment Policy and Work
Plan as presented and some were subsequently approved City Council on June 7, 2016.
The five principal functions of the IAB are as follows:
• Review at least annually the City's investment policy and recommend appropriate
changes.
• Review monthly treasury report and note compliance with the investment policy
and adequacy of cash and investments for anticipated obligations.
• Receive and consider other reports provided by the City Treasurer.
• Meet with the independent auditor after completion of the annual audit of the
City's financial statements, and receive and consider the auditor's comments on
auditing procedures, internal controls, and findings for cash and investment
activities.
• Serve as a resource for the City Treasurer on matters such as proposed
investments, internal controls, use of change of financial institutions, custodians,
brokers and dealers.
ALTERNATIVES - None.
Prepared by: Karla Campos, Finance Director
Attachments: 1. Investment Advisory Board Investment Policy
2. Investment Advisory Board Work Plan for FY 2016/2017
INVESTMENT POLICY
zoie/zov
�- GEM of the DESERT
CITY OF LA QUINTA
Investment Policy
Fiscal Year 2016/2017
Table of Contents
Section
Topic
Page
Executive Summary
2
1
General Purpose
4
11
Investment Policy
4
III
Scope
4
IV
Objectives
4
► Safety of Principal
► Provide Liquidity
► Yield A Risk -Based Market Rate Of Return
V
Maximum Maturities
6
VI
Prudence
6
VII
Authority
6
VIII
Ethics and Conflicts of Interest
7
IX
Authorized Financial Dealers and Institutions
7
► Broker/Dealers
► Financial Institutions
X
Permissible Deposits and Investments
8
XI
Investment Pools
12
XII
Payment and Custody
13
X111
Interest Earning Distribution Policy
13
XIV
Internal Controls and Independent Auditors
13
XV
Reporting Standards
14
XVI
Financial Assets and Investment Activity Not Subject to this Policy
15
XV11
Investment of Bond Proceeds
15
XIII
Investment Advisory Board - City of La Quinta
15
XIX
Investment Policy Adoption
16
Appendices TopIC Page
A Summary of Permissible Deposits and Investments 17
B City of La Quinta Municipal Code Ordinance 2.70 - Investment Advisory Board 19
C City of La Quinta Municipal Code Ordinance 3.08 - Investment of Moneys and Funds 20
D Segregation of Major Investment Responsibilities 22
E Listing of Approved Financial Institutions 23
F Broker/Dealer Questionnaire and Certification 24
G Request for Proposal for Professional Portfolio Management Firm 28
H Permissible Investment Chart — Professional Portfolio Management Firm 34
1 Investment Management Process and Risk 35
J Glossary 36
CITY OF LA QUINTA
Investment Policy
Fiscal Year 2016/2017
Executive Summary
The general purpose of this Investment Policy is to provide the rules and standards that must be
followed in administering the City of La Quinta's deposits and investments.
The City's Investment Policy conforms to all state and local statutes and applies to all deposits and
investments of the City of La Quinta (the"City").
It is the City's policy to deposit and invest public funds in a manner that shall provide:
► Safety of principal;
► Liquidity to meet all of the City's obligations and requirements that may be reasonably
anticipated; and
► A risk -based market rate of return.
It is the City's policy to hold securities and other investments until maturity. This buy -and -hold policy
shall not prevent the sale of a security to minimize loss of principal when an issuer or backer suffers
declining credit worthiness or when the liquidity needs of the portfolio require that a security be sold.
Authority to manage the City's investment portfolio is derived from the City Municipal Code.
Management responsibility for the investment program is delegated to the City Treasurer, who shall
establish and implement written procedures for the operation of the City's investment program
consistent with the Investment Policy. The Treasurer shall establish and implement a system of
internal controls to accomplish the following objectives:
► Safeguard assets;
► Orderly and efficiently conduct its business, including adherence to all City management
policies;
► Prevent or detect errors and fraud;
► Accurately complete all accounting records; and
► Timely prepare all reliable financial information.
The System of Internal Controls developed by the City Treasurer shall be reviewed annually by the
independent auditors in connection with the annual audit of the City's financial statements.
The City Manager, City Treasurer and city employees involved in the City's banking and investment
process shall conduct the City's business in an ethical manner and refrain from any activity or
relationship that may be, or have the appearance of, a conflict of interest.
The City Treasurer maintains a listing of financial institutions which are approved for investment
purposes. All Broker/Dealers and financial institutions that provide investment services will be subject
to City Council approval.
The Treasurer will be permitted to invest only in the permissible deposits and investments described in
Section X and Appendix A up to the specified maximum allowable percentages
and/or dollar limitations and, where applicable, through the bid process requirements. Permissible
deposits and investments include, in general:
► FDIC -Insured Checking, Savings, and Sweep Accounts;
► Collateralized Bank Deposits;
► Certificates of Deposit;
0
► Certificates of Deposit (Negotiable and Non -Negotiable)
► U.S. Government Agency Securities and Federal Government Securities;
► Prime Commercial Paper;
► Local Agency Investment Fund (LAIF);
► Money Market Mutual Funds;
► Corporate Notes; and
► Professionally Managed Accounts.
The City's deposits and investments are generally limited to three years' maximum maturity. However,
the projected amount of funds not expected to be disbursed within five years may be invested in notes
and bonds maturing between three and five years. Additionally, funds may be invested for up to ten
(10) years as further discussed in Section V.
The City's Investment Policy does not specify a single benchmark as a goal or target yield for a rate
of return on its investment portfolio. As a basis for comparison only, the Treasurer's monthly report
will display the rates of return on the three-month Bill, six-month Bill, and the one and two-year U.S.
Treasury Note, comparable -period rates for commercial paper, and the yield for the State Treasurer's
Local Agency Investment Fund (LAIF).
The Investment Policy shall be adopted by resolution of the La Quinta City Council on an annual basis.
The Investment Policy will be adopted before the end of June of each year.
This Executive Summary is only an overview of the City's Investment Policy. Reading this summary
does not constitute a complete review, which can only be accomplished by reviewing all of the pages
herein.
3
City of La Quinta
Statement of Investment Policy
July 1, 2016 through June 30, 2017
Adopted by the City Council on June 7, 2016
GENERALPURPOSE
The general purpose of this document is to provide the rules and standards that must be followed in
administering the City of La Quinta's deposits and investments.
INVESTMENT POLICY
It is the policy of the City of La Quinta to deposit and invest public funds in a manner that shall provide:
► Safety of principal;
► Liquidity to meet all of the City's obligations and requirements that may be reasonably
anticipated; and
► A risk -based market rate of return.
The Investment Policy conforms to all State and local statutes governing the investment of public funds
and sets forth the permissible deposits and investments of the City's funds and the limitations thereon.
III SCOPE
Except as further detailed in Section XVII, this Investment Policy applies to all deposits and
investments of the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment
Agency and the City of La Quinta Financing and Housing Authorities (hereafter referred to in this
document as the "City"). These funds are reported in the City's Comprehensive Annual Financial
Report (CAFR) and include all funds within the following fund types:
► General
► Special Revenue
► Capital Projects
► Debt Service
► Enterprise
► Internal Service
► Trust and Agency
► Any new fund types and fund(s) that may be created.
IV OBJECTIVES
The objectives of the City's investment activity, in order of priority and importance, are:
Safety of Principal
Safety of principal is the foremost objective of the City's investment program. Investments
shall be undertaken in a manner that seeks to ensure the preservation of principal of the
overall portfolio in accordance with the permissible deposits and investments.
The City shall endeavor to preserve its investment principal by making only permissible
deposits and investments, undertaken in a controlled manner to minimize the possibility of loss
or misappropriation through malfeasance or otherwise. Investments not backed by the full faith
and credit of the United States Government shall be diversified by allocating assets between
12
different types of permissible investments, maturities, and issuers as a means to mitigate credit
risk and interest rate risk.
a. Credit Risk is the risk of loss from the failure of the security issuer or backer. Credit
risk may be mitigated by:
► Limiting investments to investment grade securities as permitted in Section
X; and
► Diversifying the issuers of the securities in the investment portfolio so that
potential losses due to issuer failure or individual securities downgrades may
be minimized.
b. Interest Rate Risk is the risk that market values of securities in the portfolio will decline
due to changes in general interest rates. Interest rate risk may be mitigated by:
► Structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity; and
► Investing operating funds primarily in shorter -term securities.
C. Liquidity Risk is the risk that a security cannot be liquidated because of its unique
features or structure or because it is thinly traded. Liquidity risk is not a material issue
for the City's portfolio because of the permissible deposits and investments (see
Section X) and because the City maintains a buy -and -hold policy and holds securities
and other investments to maturity. A discussion of the City's investment process and
risk is presented in Appendix I.
2. Provide Liquidity
The investment portfolio shall remain sufficiently liquid to meet all of the City's cash needs that
may be reasonably anticipated. This is accomplished by structuring the portfolio so that
sufficient liquid funds are available to meet anticipated demands. Furthermore, since all
possible cash needs cannot be anticipated the portfolio should be diversified and consist of
securities with active secondary or resale markets.
The City's policy is to hold securities and other investments to maturity. Accordingly, securities
shall not be sold prior to maturity with the following exceptions:
No. A security with declining credit quality can be sold early to minimize loss of principal;
and
► Unanticipated liquidity needs of the portfolio require that one or more securities be sold.
3. Yield a Risk -Based Market Rate of Return
The City's investment portfolio shall be structured with the objective of yielding a risk -based
market rate of return throughout budgetary and economic cycles. Return on investment is less
important than the safety and liquidity objectives described above.
The City's Investment Policy does not specify a single benchmark as a goal or target yield for a
rate of return on its investment portfolio. The portfolio's rates of return will be influenced by
several factors, including actions by the Federal Reserve Board, the marketplace, and overall
economic perceptions and conditions. These factors will not affect yield during the securities'
holding period because the City's buy -and -hold policy fixes the securities' yield at the time of
purchase.
As a basis for comparison only, the Treasurer's monthly reports will display the rates of return
on the three-month Bill, six-month Bill, and one and two-year U.S. Treasury Note, comparable -
period rates for commercial paper, and the yield for the State Treasurer's Local Agency
0
Investment Fund (LAIF). The Treasurer may use these or any other published rates of return
that the Treasurer deems appropriate for comparison to the return on the City's investment
portfolio.
V MAXIMUM MATURITIES
It is the City's policy to hold securities and other investments until maturity, thus avoiding the risk of
market value fluctuations with overall market interest rates. This buy -and -hold policy shall not prevent
the sale of a security to minimize loss of principal when an issuer or backer suffers declining credit
worthiness or when the liquidity needs of the City require that a security be sold.
The buy -and -hold policy requires that the City's investment portfolio be structured so that sufficient
liquid funds are available from maturing investments and other sources to meet all reasonably -
anticipated cash needs. To meet anticipated cash needs, it is essential that the Treasurer have
reliable, diligently prepared cash flow projections.
Annually, the Treasurer shall project the amount of funds not expected to be disbursed within ten
years. For FY2015/2016, the amount of such funds is projected to be $20 million. Funds up to that
amount may be invested in U.S.Treasury notes and bonds, Local Agency Obligations, and California
Local Agency Obligations maturing between 3 and 10 years. For all other funds, investments are
limited to five years maximum maturity.
VI PRUDENCE
The City shall follow the Uniform Prudent Investor Act as adopted by the State of California in Probate
Code Sections 16045 through 16054.
Section 16053 sets forth the terms of a prudent person which are as follows: "Investments shall be
made with judgment and care - under circumstances then prevailing - which persons of prudence,
discretion, and intelligence exercise in the professional management of their own affairs, not for
speculation, but for investment, considering the probable safety of their capital as well as the probable
income to be derived."
VII AUTHORITY
Authority to manage the City's investment portfolio is derived from section 3.08 of the City's Municipal
Code. Management responsibility for the investment program is delegated to the City Treasurer for a
period of one year pursuant to the City Council's annual adoption of the Investment Policy.
The City Treasurer shall establish written procedures for the operation of the investment program
consistent with the Investment Policy. Procedures should include reference to safekeeping, wire
transfer agreements, banking service contracts, and collateral/depository agreements. Such
procedures shall include explicit delegation of authority to persons responsible for investment
transactions. No person may engage in an investment transaction except as provided under the terms
of this Investment Policy and the procedures established by the City Treasurer. The City Treasurer
shall be responsible for all transactions undertaken and shall establish a system of controls to regulate
the activities of subordinate officials. The City Manager or his/her designee shall acknowledge in
writing all purchases and sales of investments prior to their execution by the City Treasurer.
VIII ETHICS AND CONFLICTS OF INTEREST
The City Manager, City Treasurer and city employees involved in the City's banking and investment
n
process shall conduct the City's business in an ethical manner and refrain from any activity or
relationship that may be, or have the appearance of, a conflict of interest. Any questionable activity or
relationship shall be reported immediately and in compliance with the procedures set forth in Section
1.40 — Conflicts of Interest and Acceptance of Gifts and other Gratuities of the City of La Quinta
Personnel Manual. Reporting must be made in accordance with the personnel policies of the City and,
until resolved, the officer or employee shall refrain from participating in the City's business related to
the matter.
The City Manager, City Treasurer and City employees may conduct personal business with banks,
brokers, and other financial institutions that are authorized to conduct business with the City provided
that the terms of the activity to the accountholder with the City are the same as those that are available
to the public in general.
IX AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer maintains a listing of financial institutions which are approved for direct investment
purposes. In addition a list will also be maintained of approved broker/dealers selected by credit
worthiness.
1. Broker/Dealers who desire to become bidders for direct investment transactions must supply
the City with the following:
► Current audited financial statements;
► Proof of Financial Industry Regulatory Authority (FINRA) Certification;
► Trading resolution;
► Resume of Financial broker; and
► Completion of the City of La Quinta Broker/Dealer questionnaire (see Appendix F)
which contains a certification of having read the City's Investment Policy.
The City Treasurer shall evaluate the documentation submitted by the broker/dealer and
independently verify existing reports on file for any firm and individual conducting investment
related business.
The City Treasurer will also contact the following agencies during the verification process:
No. Financial Industry Regulatory Authority (FINRA) Public Disclosure Report File (1-800-
289-9999).
No. State of California Department of Corporations (1-916-445-3062).
The City Treasurer maintains a listing of financial institutions which are approved for
investment purposes. All Broker/Dealers and financial institutions that provide investment
services will be subject to City Council approval.
Each securities dealer shall provide monthly and quarterly reports filed pursuant to U.S.
Treasury Department regulations. Each mutual fund shall provide a prospectus and statement
of additional information.
2. Financial Institutions will be required to meet the following criteria in order to receive City
funds for deposit or investment (see Appendix E, "Listing of Approved Financial Institutions"):
a. Insurance - Public Funds shall be deposited only in financial institutions having
accounts insured by the Federal Deposit Insurance Corporation (FDIC).
b. Collateral - The amount of the City's deposits or investments not insured by the FDIC
shall be collateralized by securities with market values of 110%, or by mortgages with
7
market values 150%, of the amount of invested funds plus unpaid interest earnings.
C. Disclosure - Each financial institution maintaining invested funds in excess of the FDIC
insured amount shall furnish the City a copy of the most recent Call Report.
The City shall not invest in excess of the FDIC insured amount in banking institutions
which do not disclose to the city a current listing of securities pledged for
collateral ization in public monies.
X PERMISSIBLE DEPOSITS AND INVESTMENTS
Permissible deposits and investments are summarized below. A more comprehensive list is included
in Appendix A.
City
city
Maximum
City
Permissible Deposits and Investments
Maximum
Allocation
Restrictions
Maturity
(Footnote 1)
Checking & Savings Accounts (FDIC Insured) & Sweep
85% Portfolio
Sweep Account: U.S. Treasuries and/or
Current/On Demand
Accounts
GSE's
Interest bearing active bank deposits — non FDIC insured
collateralized by 110% of eligible securities
60% Portfolio
$40,000,000 per bank
Current /on Demand
Certificate of Deposit (negotiable and non-negotiable)
30 %Portfolio
<= $250,000 including interest per
5 years
institution
U.S. Treasury Bills, Notes and Bonds, and Government
100% Portfolio
<=$30,0000,000 maturing 3-5 Yrs.
3 years
National Mortgage Association (GNMA) securities
U.S. Government Agency Securities and Federal
Government Securities (except collateralized mortgage
30% of Portfolio combined
$10 million per purchase
obligations (CMO's) or structured notes which contain
embedded rate options):
Federal National Mortgage Association (FNMA)
$20,000,000 per issuer
5 years
Federal Home Loan Bank Notes & Bonds (FHLB)
$25,000,000 per issuer
5 years
Federal Farm Credit Bank (FFCB)
$30,000,000 per issuer
5 years
Federal Home Loan Mortgage Corporation (FHLMC)
$20,000,000 per issuer
5 years
Prime Commercial Paper including Temporary Liquidity
15% Portfolio
$5,000,000 per issuer maximum
90 days
Guarantee Program (TLGP)
Local Agency Investment Fund (LAIF)
$50,000,000
$50,000,000
per account
Current/On Demand
Money market mutual funds regulated by the SEC that
20% Portfolio
Mutual fund must have in excess of
$500 million in assets under
Current /
consist only of US Treasury Securities or GSE's
management.
On Demand
Corporate Notes
10% Portfolio
$5,000,000 max per issuer
3 years
Corporate Notes - Temporary Liquidity Guarantee
20%Portfolio
$10,000,000 max per issuer
3 years
Program (TLGP)
Professionally Managed Account
10% Portfolio
Requires Approved RFP
3 years
Local Agency Bonds/California Agency Obligations
100%
<=1$30,000,0000
10 years
Long -Term Scale
S&P Al AAA, AA+, AA, AA-, A+, A
Moody's P1 Aaa, Aal, Aa2, Aa3, Al, A2
Fitch AAA, AA+, AA, AA-, A+, A
Checking, Savings, and Sweep Accounts — The City will only maintain checking, savings,
and sweep accounts with FDIC insured financial institutions. As authorized by the City
Council, a U.S. Treasury and/or U.S. Agency Securities Money Market Sweep Account with a
$50,000 target balance may be maintained in conjunction with the checking account.
In addition, the Treasurer may invest in an interest bearing active deposit account as approved
in Government Code Section 53632. The deposit account must be collateralized with securities
that are in accordance with Government Code Sections 53632.5(c). In addition, the market
value of the collateralized securities must be maintained in accordance with 53652 (a), and be
held by a custodian in accordance with the requirements of Government Code Section 53656.
The proposition of the City's share of the deposit account shall be determined in accordance
with Government Code Section 53658.
Certificates of Deposit (Negotiable and Non-negotiable) - As authorized in Government
Code Section 53601, local governments may invest up to 30% of their portfolios in
Certificates of Deposits and 30% in Negotiable Certificates of deposits. The City's policy is to
limit combined Non -Negotiable and Negotiable Certificates of Deposits to 30% of the overall
portfolio. Each CD is limited to the FDIC limit of $250,000. (
U.S. Treasury Bills, Notes, and Bonds and Government National Mortgage Associations
(GNMA) securities — The City may invest in U.S. Treasury bills, notes, and bonds and GNMA
securities directly issued and backed by the full faith and credit of the U.S. Government. The
City's Investment Policy provides for investments in U.S. Treasury issues and GNMA's of
100% of the portfolio.
► The City's Investment Policy does not allow investments in state indebtedness.
Local Agency Bonds and California Local Agency Obligations — The City may invest in
California local agency obligations pursuant to 56301(a) and 53301(e). 53601(a) pertains to
investing in bonds issued by a local agency, department, board, agency or authority of the
local agency. 53601(e) pertains to investing in bonds and other defined indebtedness of a
local agency or department, board, agency or authority of the local agency within the State of
California.
The City's Investment Policy limits investments in Local Agency Bonds and California Local
Agency obligations to 30% of the portfolio with up to a ten year maximum maturity. In addition,
the Agency obligations must be invested in the long term rating of A, A2, A or better by S&P,
Moody's or Fitch.
In the case of an initial public offering, including refinancings, the Treasurer may purchase
directly from the Bond Underwriter. In the case of secondary issues, the Treasurer will rely on
the approved Broker/Dealers.
U.S. Government Agency Securities and Federal Government Securities — The City may
invest in securities issued by U.S. Government instrumentalities and agencies (commonly
referred to as government sponsored enterprises or GSE's). These securities are not backed
by the full faith and credit of the U.S. Government. Publicly owned LSE's include Federal
National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC)
and Student Loan Marketing Association (SLMA). Non -publicly owned GSE's include the
Federal Home Loan Bank (FHLB), Federal Farm Credit Bank (FFCB), Federal Land Bank
(FLB) and Federal Intermediate Credit Bank (FICB).
The City's Investment Policy allows investment only in securities of FNMA, FHLMC, FHLB and
FFCB. For Fiscal Year 2015/2016, the maximum face amount per issuer is $20 million for
FNMA and FHLMC, $25 million for FHLB and $30 million for FFCB. In addition, no more than
30% of the portfolio surplus may be invested in all GSE's combined with a maximum $10
million face amount per purchase.
Prime Commercial Paper - As authorized in Government Code Section 53601(g), a portion of
the City's portfolio may be invested in commercial paper of the highest rating (Al or P1) as
rated by Moody's or Standard and Poor's. There are a number of other qualifications regarding
investments in commercial paper based on the financial strength of the corporation and the
size of the investment. The City's Investment Policy permits investments in commercial paper
with the following limitations:
No. Maximum 15% of the portfolio;
► Maximum maturity of 90 days; and
► Maximum of $5 million per issuer.
These limitations are more restrictive than the State code which allows amounts of 25% of the
total portfolio with maturities up to 270 days with no per -issuer limitations.
Local Agency Investment Fund (LAIF) - As authorized in Government Code Section 16429.1
and by LAIF procedures, local government agencies are each authorized to invest a maximum
of $50 million per account in this investment program administered by the California State
Treasurer. The City Treasurer may not invest more than $50 million per account in LAIF. The
City's investment in LAIF is allowable as long as the average maturity of its investment portfolio
does not exceed two years, unless specific approval is authorized by the City Council.
Money Market Mutual Funds - As authorized in Government Code Section 53601(k), local
agencies are authorized to invest in shares of beneficial interest issued by diversified
management companies (mutual funds) in an amount not to exceed 20% of the agency's
portfolio. There are a number of other qualifications and restrictions regarding allowable
investments in corporate notes and shares of beneficial interest issued by mutual funds which
include (1) attaining the highest ranking or the highest letter and numerical rating provided by
not less than two of the three largest nationally recognized rating services, or (2) having an
investment advisor registered with the Securities and Exchange Commission with not less than
five years' experience investing in the securities and obligations and with assets under
management in excess of five hundred million dollars ($500,000,000).
The City's Investment Policy only allows investments in mutual funds that invest in direct
issues of the U.S. Treasury and/or US Agency Securities with an average maturity of their
portfolio not exceeding 90 days and the City limits such investments to 20% of the portfolio.
Corporate Notes - As authorized in Government Code Section 536010), local agencies may
invest in corporate notes. The notes must be issued by corporations organized and operating
in the United States or by depository institutions licensed by the United States or any other
state and operating in the United States. The City's Investment Policy allows investment in
corporate notes authorized by the Government Code with the following limitations:
No. Maturities shall not exceed three years from date of purchase;
► Eligible notes shall be regularly quoted and traded in the marketplace;
► Eligible notes shall be rated "AX or better; and
No. The maximum aggregate investment shall not exceed $5 million face amount for each
issuer.
This is more restrictive than the State code allowed amounts of 30% of the total portfolio with
maturities up to five years with no per -issuer limitations.
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Professionally Managed Account(s) - The City Treasurer may place up to 10% of the
portfolio with a professional portfolio management firm ("PPMF"). The PPMF will be approved
by the City Council based upon the City Treasurer's recommendation pursuant to completion of
a request for proposal (RFP) as outlined in Appendix G. The PPMF shall have:
► An established professional reputation for asset or investment management;
► Knowledge and working familiarity with State and Federal laws governing and
restricting the investment of public funds;
► Substantial experience providing investment management services to local public
agencies whose investment policies and portfolio size are similar to those of the City;
► Professional liability (errors and omissions) insurance and fidelity bonding in such
amounts as are required by the City; and
ON. Registration with the Securities and Exchange Commission under the Investment
Advisers Act of 1940.
Before engagement by the City and except as may be specifically waived or revised, the PPMF
shall commit to adhere to the provisions of the City's Investment Policy with the following
exceptions:
No. The PPMF may be granted the discretion to purchase and sell investment securities in
accordance with Appendix I of this Investment Policy;
► The PPMF is not required to adhere to the buy -and -hold policy of the City's Investment
Policy; and
► The PPMF does not need City Manager or City Treasurer approval to make permissible
investments as detailed in column 8 of Appendix H of this Investment Policy.
XI INVESTMENT POOLS
There are three (3) types of investment pools:
► State -run pools (e.g., LAIF);
No. Pools that are operated by a political subdivision where allowed by law and the political
subdivision is the trustee (e.g., County Pools); and
No. Pools that are operated for profit by third parties.
The City's Investment Policy permits investment only in pools authorized in Section X.
XII PAYMENT AND CUSTODY
The City shall engage qualified third party custodians to act in a fiduciary capacity to maintain
appropriate evidence of the City's ownership of securities and other eligible investments. Such
custodians shall disburse funds, received from the City for a purchase, to the broker, dealer or seller
only after receiving evidence that the City has legal, record ownership of the securities.
Even though ownership is evidenced in book -entry form rather than by actual certificates, this
procedure is commonly accepted as the delivery versus payment (DVP) method for the transfer of
securities.
XIII INTEREST EARNING DISTRIBUTION POLICY
Interest earnings are generated from pooled investments and specific investments. The following
provisions apply to the calculation and distribution of interest earnings.
11
Pooled Investments - It is the general policy of the City to pool all available operating cash of
the City of La Quinta, Successor Agency to the City of La Quinta Redevelopment Agency, La
Quinta Financing Authority, and La Quinta Housing Authority, and to allocate interest earnings
in the following order, as follows:
a. Payment to the General Fund of an amount equal to the total annual bank service
charges as incurred by the general fund for all operating funds as included in the
annual operating budget.
b. Payment to the General Fund of a management fee equal to 5% of the annual pooled
cash fund investment earnings.
C. Payment to each fund of an amount based on the average computed daily cash
balance included in the common portfolio for the earning period.
2. Specific Investments - Specific investments purchased by a fund shall incur all earnings and
expenses to that particular fund.
XIV INTERNAL CONTROLS AND INDEPENDENT AUDITOR
The City Treasurer shall establish a system of internal controls to accomplish the following objectives:
► Safeguard assets;
► The orderly and efficient conduct of its business, including adherence to management policies;
► Prevention or detection of errors and fraud;
► The accuracy and completeness of accounting records; and
► Timely preparation of reliable financial information.
While no internal control system, however elaborate, can guarantee absolute assurance that the City's
assets are safeguarded, it is the intent of the City's internal control to provide a reasonable assurance
that management of the investment function meets the City's objectives.
The internal controls shall address the following:
► Control of collusion. Collusion is a situation where two or more employees are working in
conjunction to defraud their employer.
► Separation of transaction authority from accounting and record keeping. By separating the
person who authorizes or performs the transaction from the people who record or otherwise
account for the transaction, a separation of duties is achieved.
► Custodial safekeeping. Securities purchased from any bank or dealer including appropriate
collateral (as defined by State Law) shall be placed with an independent third party for
custodial safekeeping.
► Avoidance of physical delivery securities. Book entry securities are much easier to transfer
and account for since actual delivery of a document never takes place. Delivered securities
must be properly safeguarded against loss or destruction. The potential for fraud and loss
increases with physically delivered securities.
► Clear delegation of authority to subordinate staff members. Subordinate staff members must
have a clear understanding of their authority and responsibilities to avoid improper actions.
Clear delegation of authority also preserves the internal control structure that is contingent on
12
the various staff positions and their respective responsibilities as outlined in the Segregation of
Major Investment Responsibilities appendices.
► Written confirmation or telephone transactions for investments and wire transfers. Due to the
potential for error and improprieties arising from telephone transactions, all telephone
transactions shall be supported by written communications or electronic confirmations and
approved by the appropriate person. Written communications may be via fax if on letterhead
and the safekeeping institution has a list of authorized signatures. Fax correspondence must
be supported by evidence of verbal or written follow-up.
► Development of a wire transfer agreement with the City's bank and third party custodian. This
agreement should outline the various controls, security provisions, and delineate
responsibilities of each party making and receiving wire transfers.
The system of internal controls developed by the City, shall be reviewed annually by the independent
auditor in connection with the annual audit of the City's Financial Statements. The independent
auditor's letter on internal control over financial reporting and compliance as it pertains to cash and
investments, if any, shall be directed to the City Manager who will direct the City Treasurer to provide a
written response to the independent auditor's letter. The auditor's letter, as it pertains, to cash and
investment activities and the City Treasurer's response shall be provided to the City's Investment
Advisory Board for their consideration. Following the completion of each annual audit, the
independent auditor shall meet with the Investment Advisory Board and discuss the auditing
procedures performed and the review of internal controls for cash and investment activities. See
Appendix D, "Segregation of Major Investment Responsibilities."
XV REPORTING STANDARDS
The City Treasurer shall submit a monthly Treasurers Report to the City Council and the Investment
Advisory Board that includes all cash and investments under the authority of the Treasurer. The
Treasurer's Report shall summarize cash and investment activity and changes in balances and include
the following:
► A certification by the City Treasurer;
► A listing of purchases and sales/maturities of investments;
► Cash and Investments categorized by authorized investments, except for LAIF which
will be provided quarterly and show yield and maturity;
► Comparison of month end actual holdings to Investment Policy limitations;
► Current year and prior year monthly history of cash and investments for trend analysis;
► Balance Sheet;
► Distribution of cash and investment balances by fund;
► A year to date historical cash flow analysis and projection for the next six months; and
► A two-year list of historical interest rates.
XVI FINANCIAL ASSETS AND INVESTMENT ACTIVITY NOT SUBJECT TO THIS POLICY
The City's Investment Policy does not apply to the following:
► Cash and Investments raised from Conduit Debt Financing;
► Funds held in trust in the City's name in pension or other post -retirement benefit
programs;
► Cash and Investments held in lieu of retention by banks or other financial
institutions for construction projects; and
► Short or long term loans made to other entities by the City or Agency,
13
Short term (Due to/from) or long term (Advances from/to) obligations made either
between the City and its funds or between the City and Agency.
XVII INVESTMENT OF BOND PROCEEDS
The City's Investment Policy shall govern bond proceeds and bond reserve fund investments.
California Code Section 5922 (d) governs the investment of bond proceeds and reserve funds in
accordance with bond indenture provisions which shall be structured in accordance with the City's
Investment Policy.
Arbitrage Requirement - The US Tax Reform Act of 1986 requires the City to perform arbitrage
calculations as required and return excess earnings to the US Treasury from investments of proceeds
of bond issues sold after the effective date of this law. These arbitrage calculations may be contracted
with an outside source to provide the necessary technical assistance to comply with this regulation.
Investable funds subject to the 1986 Tax Reform Act will be kept segregated from other funds and
records will be kept in a fashion to facilitate the calculations.
The City's investment position relative to the new arbitrage restrictions is to continue pursuing the
maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is the
City's position to continue maximization of yield and to rebate excess earnings, if necessary.
XVIII INVESTMENT ADVISORY BOARD - CITY OF LA QUINTA
The Investment Advisory Board (IAB) is a standing board composed of five members from the public
that are appointed by the City Council. Background information will be requested and potential
candidates must agree to a background check and verification. On an annual basis, in conjunction
with the Political Reform Act disclosure statutes, or at any time if a change in circumstances warrants,
each board member will provide the City Council with a disclosure statement which identifies any
matters that have a bearing on the appropriateness of that member's service on the board. All board
members shall report annually to the City Clerk on Form 700, Statement of Economic Interests, any
activities, interests, or relationships that may be, or have the appearance of, a conflict of interest.
The IAB must meet at least quarterly, but usually meets monthly, to:
► Review at least annually the City's Investment Policy and recommend appropriate changes;
► Review monthly treasury report and note compliance with the Investment Policy and adequacy
of cash and investments for anticipated obligations;
► Receive and consider other reports provided by the City Treasurer;
► Meet with the independent auditor after completion of the annual audit of the City's financial
statements, and receive and consider the auditor's comments on auditing procedures, internal
controls and findings for cash and investment activities; and
► Serve as a resource for the City Treasurer on matters such as proposed investments, internal
controls, use or change of financial institutions, custodians, brokers and dealers.
The IAB will report to the City Council after each meeting either in person or through correspondence
at a regular City Council meeting. See Appendix B: "Investment Advisory Board Provisions."
XIX INVESTMENT POLICY ADOPTION
The City's Investment Policy will be reviewed annually by the City's Investment Advisory Board and the
City Treasurer. The Investment Advisory Board will forward the Investment Policy with any revisions to
the City Manager and City Attorney for their review and comment. Ajoint meeting will be held with the
Investment Advisory Board, City Manager, City Attorney, and City Treasurer to review the Investment
14
Policy and any comments prior to submission to the City Council for their consideration. The
Investment Policy shall be adopted by resolution of the City Council annually before the end of June of
each year.
15
CITY OF LA QUINTA
SUMMARY OF PERMISSIBLE DEPOSITS AND INVESTMENTS
Appendix A
The City Treasurer will be permitted to invest in the following types of investments subject to the maximum percentage allocation limits and bid process requirements. All maturities
must be less than or equal to the maximum maturity allowed.
City
State Maximum
Maximum
Allocation
City
Bid
City
Credit
Permissible Deposits and Investments
Allocation
Maximum
Process
Surplus
P
Restrictions
Quality
(Footnote
Maturity
1)
Funds
1
Checking & Savings Accounts (FDIC Insured) & Sweep Accounts
85% Portfolio
100% Portfolio
Sweep Account: U.S. Treasuries and/or GSE's
Current/On Demand
FDIC Insured
Interest bearing active bank deposits — non FDIC insured collateralized
Non -FDIC Insured
2
by 110% of eligible securities
60% Portfolio
100% Portfolio
$40,000,000 per bank
Current /on Demand
2
Certificate of Deposit (Negotiable and Non -Negotiable)
30% Portfolio
60 % Portfolio
<_ $250,000 including interest per institution
5 years
FDIC Insured
3
U.S. Treasury Bills, Notes and Bonds, and Government National
100% Portfolio
100% Portfolio
<=$30,0000,000 maturing 3-5 Yrs.
3 years
Mortgage Association (GNMA) securities
U.S. Government Agency Securities and Federal Government
3
Securities (except collateralized mortgage obligations (CMO's) or
Per issuer:
30% Portfolio
$10,000,000 per purchase
structured notes which contain embedded rate options):
Federal National Mortgage Association (FNMA)
$20,000,000
5 years
Federal Home Loan Bank Notes & Bonds (FHLB)
$25,000,000
5 years
Federal Farm Credit Bank (FFCB)
$30,000,000
5 years
Federal Home Loan Mortgage Corporation (FHLMC)
$20,000,000
5 years
3
Prime Commercial Paper including Temporary Liquidity Guarantee
15% Portfolio
25% Portfolio
$5,000,000 per issuer maximum
90 days
S&P (A-1)
Program (TLGP)
270 Days
Moody's (P-1)
4
Local Agency Investment Fund (LAIF)
$50,000,000
$50,000,000
per account
Current/On Demand
Rated AAA by 2 of 3
Money market mutual funds regulated by the SEC that consist only of
Current /
agencies;
5
US Treasury Securities or GSE's and maintain a par value of $1 per
20% Portfolio
20% Portfolio
Mutual fund must have in excess of $500 million in
On Demand
assets>=$500
share
assets under management
million; SEC reg'd
>5 Yrs.
6
Corporate Notes
10% Portfolio
30% Portfolio
$5,000,000 max per issuer
3 years
S & P rated AA or
better
6
Corporate Notes - Temporary Liquidity Guarantee Program (TLGP)
20% Portfolio
30% Portfolio
$10,000,000 max per issuer
3 years
S&P rated AA or
better.
Professionally Managed Account
10% Portfolio
100% Portfolio
Requires Approved RFP
3 years
SEC Reg'd; E&O,
7
Fidelity Insured
8
Local Agency Bonds/California Agency Obligations
100%
30%
<=A$30,000,0000
10 years
At least long term
"A, A2, A" rating
16
Appendix A (continued)
Bid
Prnr_pss
Periodically conduct a bid process at least every four (4) years or sooner if considered necessary for banking and/or
1 custodian services. Since banking services and custodian services are so closely related it is anticipated that the bid
process would include the scope of both services.
2 The financial institutions can be either state or federally chartered and must be insured by the Federal Deposit
Insurance Corporation (FDIC).
3 At least two bids from broker/dealers that qualify under Securities and Exchange Commission Rule 15C3-1 listed on
the "Listing of Approved Financial Institutions" in the appendices.
4 City Council Approval.
5 Money Market mutual funds must comply with Government Code Section 53601(k). The fund must be registered by
the SEC and must include marking the portfolio to market daily.
6 At least two bids from broker/dealers that qualify under Securities and Exchange Commission Rule 15C3-1 listed on
the "Listing of Approved Financial Institutions" in the appendices.
The professional portfolio management firm (PPMF) will be approved by the City Council based upon the City
7 Treasurer's recommendation pursuant to completion of a request for proposal (RFP) as outlined in the appendices.
See also Footnote 2.
8 Initial offerings the Treasurer may purchase directly from Bond Underwriter, secondary issues follow bid process
3.
Unauthorized Investments
The City Treasurer will not be permitted to invest in the following types of investments (see
Footnote 2 and "State Code Permitted Deposits And Investments Not Authorized By The City's
Investment Policy', below).
Repurchase Agreements
Bankers Acceptances
Mutual Funds other than money market mutual funds
Preferred and Common Stock
State Indebtedness
Asset Backed Securities
Reverse Repurchase Agreements
Derivatives
The above list of unauthorized deposits and investments is not meant to be all-inclusive. Only
those deposits and investments listed in the "Permissible Deposits and Investments' section of
the Policy are permissible.
Footnote 1 The City has imposed a maximum limitation based upon the total portfolio of investments. Total portfolio investments are all cash and investments, including bond proceeds. In addition, the State has adopted limits on the
investment of surplus funds.
Footnote 2 The City may engage the services of a professional portfolio management firm which may invest in Bankers Acceptances, Mutual Funds, and Asset Backed Securities not otherwise permissible under the City's Investment
Policy.
17
Appendix B
Sections:
2.70.010 General rules regarding the investment advisory board.
2.70.020 Number of members.
2.70.030 Qualifications of members.
2.70.040 Powers and duties.
2.70.010 General rules regarding the investment advisory board.
A. Except as set out below, see Chapter 2.06 for General Provisions. (Ord. 516 § 5, 2013)
B. The Investment Advisory Board ("IAB") shall consist of five members appointed by, and serving at
the will of the city council.
C. Applicants for the board should have a background in finance, preferably with knowledge and/or
experience in markets, controls and accounting for securities. Background information will be requested
and potential candidates must agree to a background check and verification.
D. On an annual basis, in conjunction with the Political Reform Act disclosure statutes, or at any time
if a change in circumstances warrants, each board member will provide the City Council with a
disclosure statement which identifies any matters that have a bearing on the appropriateness of that
member's service on the board. Such matters may include, but are not limited to, changes in
employment, changes in residence, or changes in clients.
E. To promote continuity, the expiration of the terms of the members of the board shall be
staggered. The term of service is three years, with one or two terms expiring each year.
2.70.020 Number of :;:embers.
The investment advisory board ("IAB") shall consist of five members appointed by, and serving at
the will of the city council. (Ord. 516 § 5, 2013)
2.70.030 Qualifications of -embers.
A. In addition to the qualification requirements set forth in Section 2.06.040, applicants
for the IAB should have a verifiable background in finance and/or securities, preferably
with knowledge and/or experience in markets, financial controls and accounting for
securities.
B. Background information will be requested and potential candidates must agree to a
background check and verification by the city manager or designee. (Ord. 516 § 5, 2013)
2.70.040 Powers and duties.
A. The principal functions of the IAB are:
1. Review at least annually the city's investment policy and recommend
appropriate changes;
2. Review monthly the treasury report and note compliance with the investment
policy and adequacy of cash and investments for anticipated obligations;
3. Receive and consider other reports provided by the city treasurer;
4. Meet with the independent auditor after completion of the annual audit of the
city's financial statements, and receive and consider the auditor's comments on
auditing procedures, internal controls, and findings for cash and investment
activities; and
5. Serve as a resource for the city treasurer on matters such as proposed
investments, internal controls, use of change or change of financial institutions,
custodians, brokers and dealers.
B. The IAB will report to the city council after each meeting either in person or through
correspondence at a regular city council meeting. (Ord. 516 § 5, 2013)
19
20
Appendix C
City of La Quinta Municipal Code
Chapter 3.08
INVESTMENT OF MONEYS AND FUNDS
Sections:
3.08.010 Investment of city moneys and deposit of securities.
3.08.020 Authorized investments.
3.08.030 Sales of securities.
3.08.040 City bonds.
3.08.050 Reports.
3.08.060 Deposits of securities.
3.08.070 Trust fund administration.
3.08.010 Investment of city moneys and deposit of securities.
Pursuant to, and in accordance with, and to the extent allowed by, Sections 53607 and
53608 of the Government Code, the authority to invest and reinvest moneys of the city, to
sell or exchange securities, and to deposit them and provide for their safekeeping, is
delegated to the city treasurer. (Ord. 2 § 1 (part), 1982)
3.08.020 Authorized investments.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized
to purchase, at their original sale or after they have been issued, securities which are
permissible investments under any provision of state law relating to the investing of general
city funds, including but not limited to Sections 53601 and 53635 of the Government Code, as
said sections now read or may hereafter be amended, from moneys in his custody which are
not required for the immediate necessities of the city and as he may deem wise and
expedient, and to sell or exchange for other eligible securities and reinvest the proceeds of the
securities so purchased. (Ord. 2 § 1 (part), 1982)
3.08.030 Sales of Securities.
From time to time the city treasurer shall sell the securities in which city moneys have
been invested pursuant to this chapter, so that the proceeds may, as appropriate, be applied
to the purchase for which the original purchase money may have been designated or placed
in the city treasury. (Ord.2 § I (part),
3.08.040 City bonds.
Bonds issued by the city and purchased pursuant to this chapter may be cancelled either
in satisfaction of sinking fund obligations or otherwise if proper and appropriate; provided,
however, that the bonds may be held uncancelled and while so held may be resold. (Ord. 2 §
1 (part), 1982)
3.08.050 Reports.
The city treasurer shall make a monthly report to the city council of all investments made
pursuant to the authority delegated in this chapter. (Ord. 2 § 1 (part), 1982)
21
3.08.060 Deposits of securities.
Pursuant to the delegation of authority in Section 3.08.010, the city treasurer is authorized
to deposit for safekeeping, the securities in which city moneys have been invested pursuant to
this chapter, in any institution or depository authorized by the terms of any state law, including
but not limited to Section 53608 of the Government Code as it now reads or may hereafter be
amended. In accordance with said section, the city treasurer shall take from the institution or
depository a receipt for the securities so deposited and shall not be responsible for the
securities delivered to and receipted for by the institution or depository until they are
withdrawn therefrom by the city treasurer. (Ord. 2 § 1 (part), 1982)
3.08.070 Trust fund administration.
Any departmental trust fund established by the city council pursuant to Section 36523 of
the Government Code shall be administered by the city treasurer in accordance with Section
36523 and 26524 of the Government code and any other applicable provisions of law. (Ord. 2
§ 1 (part), 1982)
22
Appendix D
SEGREGATION OF MAJOR INVESTMENT RESPONSIBILITIES
Function
Develop and Recommend Modifications
to City's Formal Investment Policy
Review City's Investment Policy
and Recommend City Council Action
Adopt Formal Investment Policy
Implement Formal Investment Policy
Review Financial Institutions & Select Investments
Acknowledge Investment Selections
Execute Investment transactions
Confirm Wires (if applicable)
Record Investment Transactions in City's
Accounting Records
Investment Verification (match broker confirmation
to City investment records)
Reconcile Investment Records
to Accounting Records and Bank Statements
Reconcile Investment Records
to Treasurers Report of Investments
Security of Investments at City
Security of Investments outside City
Review Internal Control Procedures
23
Responsible Parties
Investment Advisory Board
and City Treasurer
City Manager
and City Attorney
City Council
City Treasurer
City Treasurer
City Manager or his/her
designee
City Treasurer or City Manager
Accounting Manager or
Financial Services Assistant
Accounting Manager or
Financial Services Assistant
City Treasurer and Financial
Services Assistant
Financial Services Assistant
Accounting Manager
Accounting Manager or Senior
Secretary
Third Party Custodian
External Auditor
Appendix E
LISTING OF APPROVED FINANCIAL INSTITUTIONS
1. Banking Services - Wells Fargo Bank, Government Services,
Los Angeles, CA (Banking Services)
Rabobank N.A., Government Banking
Group, Roseville, CA (Collateralized Bank
Deposits)
2. Custodian Services - Bank of New York/Mellon
3. Deferred Compensation - International City/County Management
Association Retirement Corporation
4. Broker/Dealer Services - Banc of America Securities/Merrill Lynch
Morgan Stanley
CitiGroup
First Empire Securities
5. Government Pool - State of California Local Agency
Investment Fund
6. Bond Trustees - 1996 Lease Revenue Bonds — US Bank
1998 RDA Project Area 1 &2 — US Bank
2001 RDA Project Area 1 — US Bank
2002 RDA Project Area 1 — US Bank
2003 RDA Project Area 1 — US Bank
2004 Local Agency Rev — US Bank
2011 RDA Project Area 2 — US Bank
2011 Fin Auth Housing 1 &2 — US Bank
2013 Successor Agency — US Bank
Assessment Districts — US Bank
No Changes to this listing may be made without City Council approval
Appendix F
24
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name
Firm:
2.
Address:
3. Telephone: ()
4. Broker's Representative to the City (attach resume):
Name:
Title:
Telephone:
5. Manager/Partner-in-charge (attach resume):
Name:
Title:
Telephone:
of
6. List all personnel who will be trading with or quoting securities to City employees (attach
resume)
Name:
Title:
Telephone:
7. Which of the above personnel have read the City's Investment Policy?
8. Which instruments are offered regularly by your local office? (Must equal 100%)
% U.S. Treasuries
% BA's
% Commercial Paper
% CD's
% Mutual Funds
% Agencies (specify):
25
% Repos
% Reverse Repos
% CMO's
% Derivatives
% Stocks/Equities
% Other (specify):
9. References -- Please identify your most directly comparable public sector clients in our
geographical area.
Entity Entity
Contact Contact
Telephone ( ) Telephone ( )
Client Since Client Since
10. Have any of your clients ever sustained a loss on a securities transaction arising from a
misunderstanding or misrepresentation of the risk characteristics of the instrument? If so,
explain.
11. Has your firm or your local office ever been subject to a regulatory or state/ federal agency
investigation for alleged improper, fraudulent, disreputable or unfair activities related to the
sale of securities? Have any of your employees been so investigated? If so, explain.
12. Has a client ever claimed in writing that you were responsible for an investment loss?
Yes No If yes, please provide action
taken
Has a client ever claimed in writing that your firm was responsible for an investment loss?
Yes No If yes, please provide action
taken
26
Do ygu have any current or pending complaints that are unreported to FINRA?
Yes No If yes, please provide action
taken
Does your firm have any current, or pending complaints that are unreported to FINRA?
Yes No If yes, please provide action
taken
13. Explain your clearing and safekeeping procedures, custody and delivery process.
Who audits these fiduciary
responsibilities?
Latest Audit Report
Date
14. How many and what percentage of your transactions failed?
Last month? % $
Last year? % $
15. Describe the method your firm would use to establish capital trading limits for the City of La
Quinta.
16. Is your firm a member in the S.I.P.C. insurance program? Yes No
If yes, explain primary and excess coverage and
carriers.
27
17. What portfolio information, if any, do you require from your clients?
18. What reports and transaction confirmations or any other research publications will the City
receive?
19. Does your firm offer investment training to your clients? Yes
20. Does your firm have professional liability insurance? Yes
No
If yes, please provide the insurance carrier, limits and expiration date.
No
21. Please list your FINRA/NASD Registration
Number
22. Do you have any relatives who work at the City of La Quinta?
Yes No If yes, Name and
Department
23. Do you maintain an office in California? Yes No
24. Do you maintain an office in La Quinta or Riverside County? Yes No
25. Please enclose the following:
► Latest audited financial statements;
► Samples of reports, transaction confirmations and any other research/publications the City
will receive;
► Samples of research reports and/or publications that your firm regularly provides to clients;
and
► Complete schedule of fees and charges for various transactions.
'CERTIFICATION"
I hereby certify that I have personally read the Statement of Investment Policy of the City of La Quinta,
and have implemented reasonable procedures and a system of controls designed to preclude
imprudent investment activities arising out of transactions conducted between our firm and the City of
La Quinta. All sales personnel will be routinely informed of the City's investment objectives, horizons,
outlooks, strategies and risk constraints whenever we are so advised by the City. We pledge to
exercise due diligence in informing the City of La Quinta of all foreseeable risks associated with
financial transactions conducted with our firm.
By signing this document the City of La Quinta is authorized to conduct any and all background
checks.
Under penalties of perjury, the responses to this questionnaire are true and accurate to the best of my
knowledge.
Broker
Representative
Date
Title
Sales Manager and/or Managing
Partner*
Date
Title
29
Appendix G
Request for Proposals
Professional Portfolio Management Firm
City of La Quinta, CA
The City of La Quinta, CA is soliciting Requests for Proposals (RFP) from interested firms for the
provision of a discretionary investment management services for City of La Quinta, CA. The portfolio
to be managed of the invested assets is will be approximately 10% of the City's investment portfolio
and will be invested between 0 — 3 years.
The investment of City of La Quinta, CA's funds is guided by the applicable State statutes and the City
of La Quinta, CA's investment policy. A copy of the investment policy is attached for your information.
Questions regarding this RFP should be directed to:
Name:
Title:
City of:
Address:
City, State, Zip Code
Phone Number:
Rita Conrad
Finance Director/Treasurer
La Quinta, CA
78-495 Calle Tampico
La Quinta, CA 92253
(760)777-7150
I. CRITERIA FOR EVALUATION AND SELECTION
■ Experience of the firm in providing services to public sector entities of similar size and
with similar investment objectives;
■ Professional experience and qualifications of the individuals assigned to the account;
■ Portfolio management resources, investment philosophy and approach;
■ Responsiveness to the RFP, communicating an understanding of the overall program
and services required;
■ Reporting capabilities;
■ Fees.
II. SELECTION TIMETABLE
A. [Month, Day and Year] Proposals due by [Time] PST.
B. [Month, Day and Year] Proposals evaluated: to be determined
C. [Month, Day and Year] [City of La Quinta, CA] [Board/Council] approves selection
and awards contract.
III. FORMAT FOR PROPOSALS
Please format your response to this RFP in the following manner:
A. Organization
Describe your organization, date founded, ownership and other business affiliations.
Provide number and location of affiliated offices. Specify the number of years your
organization has provided investment management service.
30
2. Describe your firm's revenue sources (e.g., investment management, institutional
research, etc.) and comment on your firm's financial condition.
3. Within the past three years, have there been any significant developments in your
organization (e.g., changes in ownership, new business ventures)? Do you expect any
changes in the near future?
4. Describe any U.S. Securities and Exchange Commission (SEC) censures or litigation
involving your organization, any officer, or employee at any time in the last ten years.
5. Describe the firm's fiduciary liability and/or errors and omissions insurance coverage.
Include dollar amount of coverage.
B. Personnel
1. Identify the number of professionals employed by your firm by classification.
2. Provide an organization chart showing function, positions, and titles of all the
professionals in your organization.
3. Provide biographical information on investment professionals that will be involved in the
decision -making process for our portfolio, including number of years at your firm.
Identify the person who will be the primary portfolio manager assigned to the account.
4. Describe your firm's compensation policies for investment professionals and address
any incentive compensation programs.
C. Assets Under Management
1. Summarize your institutional investment management asset totals by category for your
latest reporting period in the following table:
Other Restrictive
Number Operating Funds Number of Funds
of Clients Clients
Governmental $ $
Governmental Pension
$
N/A
N/A
Non Governmental
$
Pension
N/A
N/A
Corporate
$
N/A
N/A
High Net Worth Client
N/A
N/A
$
31
Endowmental/Foun- N/A N/A
dation
2. Provide the number of separate accounts whose portfolios consist of operating
funds.
3. List in the following table the percentage by market value of aggregate assets under
all governmental accounts under management for your latest reporting period:
Type of Asset Percent by Market
Value
U.S. Treasury securities
Federal Agency obligations
Corporate securities rated AAA -AA
Corporate securities rated A
Corporate securities rated BBB or
lower
Other
(specify )
4. Describe the procedures that your firm has in place to address the potential or
actual credit downgrade of an issuer and to disclose and advise a client of the
situation.
5. Provide data on account/asset growth over the past five years. Indicate the number of
government accounts gained and the number of government accounts lost.
6. List your five governmental largest clients. Identify those that are exclusively operating
fund relationships and/or those that are other relationships (e.g., bond fund, retirement
fund).
7. Provide a copy of the firm's Form ADV, Parts I and II (including all schedules).
8. Provide proof of State of California Registration, if your firm is not eligible for SEC
registration.
9. Provide a sample contract for services.
D. Philosophy/Approach
1. Describe your firm's investment philosophy for public clients, including your firm's
philosophy regarding average duration, maturity, investment types, credit quality, and
yield.
2. Describe in detail your investment process, as you would apply it to City of La Quinta,
CA's portfolio.
3. What are the primary strategies for adding value to portfolios?
4. Describe the process you would recommend for establishing the investment objectives
and constraints for this account.
32
5. Describe in detail your process of credit risk management, including how you analyze
credit quality, monitor credits on an ongoing basis, and report credit to governmental
accounts.
6. Describe your firm's trading methodology.
7. Describe your firm's decision -making process in terms of structure, committees,
membership, meeting frequency, responsibilities, integration of research ideas, and
portfolio management.
8. Describe your research capabilities as they would pertain to governmental accounts.
What types of analysis do you use?
9. Describe the firm's approach to managing relationships with the broker -dealer
community.
E. Portfolio Management
1. Are portfolios managed by teams or by one individual?
2. What is the average number of accounts handled per manager?
3. Which professional staff member will be the primary client contact for City of La Quinta,
CA?
4. How frequently are you willing to meet with us?
5. Describe procedures used to ensure that portfolios comply with client investment
objectives, policies, and bond resolutions.
F. Fees Charged
1. Please include a copy of your firm's fee schedule applicable to this RFP.
2. Identify any expenses that would not be covered through this fee structure and
would be required in order to implement the firm's program.
3. Is there a minimum annual fee?
G. Performance Reporting
1. Please report on all accounts under $100 million.
2. Please provide performance history for governmental accounts for the last five
years.
3. Please provide risk measurements for governmental accounts for the last five years.
4. Indicate whether your returns are calculated and compiled in accordance with the
Association for Investment Management and Research (AIMR/CFA Institute)
standards.
33
5. Do your reports conform to the State of California reporting standards? Are you willing
to customize your reports to meet our specifications?
6. How will you notify us of investment transactions?
7. Are confirmations of investment transactions sent directly by the broker/dealer to the
client?
8. Do your reports include rating information on investments which is required by
GASB 40?
H. References
Provide a list of at least five (5) client references in California. References should be public
agencies with portfolio size and investment objectives similar to City of La Quinta, CA.
Include length of time managing the assets, contact name, and phone number.
Insurance Requirements
Exhibit A defines the insurance requirements that will need to be met prior to the
[Board/Council]'s approval of any agreement for services.
Submittal of proposals
Seven (7) copies of the proposal shall be submitted in a sealed envelope bearing
the caption RFP for (City of La Quinta, CA) and addressed to:
City of La Quinta, CA
78-495 Calle Tampico
La Quinta, CA 92253
Attention: Rita Conrad, Finance Director/Treasurer
2. Proposal must be received no later than [Time] PST on [Month, Day, and Year].
3. Proposals should be verified before submission. The City of La Quinta, CA shall not
be responsible for errors or omissions on the part of the respondent in preparation
of a proposal. The City of La Quinta, CA reserves the right to reject any and all
proposals, to wave any irregularities, or informalities in the proposals, and to
negotiate modifications to any proposal.
Enclosures: Investment Policy
Treasurers Report
34
Appendix H
City of La Quinta
Permissible Investment Chart — Professional Portfolio Management Firm
(1) (2) (3) (4) (5) (6) (7) (8)
California
Government
Code Section
Investment Category
Maximum
Maturity
Authorized Investment
Limits (% of Portfolio)
Credit
Rating
Limits
Comments
Allowed per
City Policy
Allowed per
Professional Portfolio
Management Firm
53601(a)
Local Agency Bonds
5 Years
None
None
No
No
53601(c)
State of California Obligations
5 Years
None
None
No
No
53601(d)
CA Local Agency Obligations
5 Years
None
Multiple
No
No
53601(i)
Repurchase Agreements
1 Year
None
None
No
No
53601(i)
Reverse Repurchase Agreements
92 Days
20% of the base value of the portfolio
None
No
No
53601(i)
Securities Lending Agreements
92 Days
20% of the base value of the portfolio
None
No
No
53684
County Pooled Investments
None
None
None
No
No
53632
Interest bearing active deposits
None
None
None
Collateralized 110%
Yes
Yes
53601(f)
Bankers Acceptances
180 Days
40%
None
"AX or better
No
Yes
53601(h)
Negotiable CD's
5 Years
30%
None
Yes
Yes
53601(k)
Mutual Funds
None
20%
Multiple
No
Yes
53601(n)
Asset Backed Securities
5 Years
20%
AA
No
Yes
Cash and Equivalents
None
None
None
Yes
Yes
16429.1
LAIF
None
None
None
Yes
No
53601(b)
US Treasuries
5 Years
None
None
Yes
Yes
53601(e)
US Agencies
5 Years
None
None
Yes
Yes
53601(g), 53635
Commercial Paper
270 Days
25% of portfolio
A-1 / P-1 / F-1
Yes
Yes
53601(k)
Medium Term Notes
5 Years
30%
A
Yes
Yes
Money Market Mutual Funds
None
20%
Multiple
Yes
Yes
53601(m)
Time Deposits
5 Years
None
None
Yes
Yes
Collateralized Bank Deposits
(including non-negotiable CD's)
5 Years
None
None
Yes
Yes
Source of Columns (1) through (5) - Investment: Investment Portfolio Reporting Practices CA Debt and Investment Advisory Commission.
Note: The Professional Portfolio management Firm (PPMF) is not required to adhere to the City's buy and hold policy and does not need City Manager or City Treasurer approval to make permissible
deposits and investments as detailed in column (8).
35
Appendix I
Investment Management Process and Risk
Except as provided for in Section 27000.3, Government Code Section 53600.3 declares as a trustee
each person, treasurer, or governing body authorized to make investment decisions on behalf of local
agencies. As trustees are subject to the prudent investor standard. These persons shall act with care,
skill, prudence, and diligence under the circumstances then prevailing when investing, reinvesting,
purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates
that the primary objective of any person investing public funds is to safeguard principal; secondly, to
meet liquidity needs of the depositor; and lastly, to achieve a return or yield on invested funds
(Government Code Section 27000.5 specifies the same objectives for county treasurers and board of
supervisors).
Risk is inherent throughout the investment process. There is investment risk associated with any
investment activity and opportunity risk related to inactivity. Market risk is derived from exposure to
overall changes in the general level of interest rates while credit risk is the risk of loss due to the failure
of the insurer of a security. The market value of a security varies inversely with the level of interest
rates. If an investor is required to sell an investment with a five percent yield in a comparable seven
percent rate environment, that security will be sold at a loss. The magnitude of that loss will depend on
the amount of time until maturity.
Purchasing certain allowable securities with a maturity of greater than five years requires approval of
the governing board (see Government Code Section 53601). Part of that approval process involves
assessing and disclosing the risk and possible volatility of longer -term investments
Another element of market risk is liquidity risk. Instruments with unique call features or special
structures, or those issued by little known companies, are examples of "story bonds" and are often
thinly traded. Their uniqueness often makes finding prospective buyers in a secondary market more
difficult and, consequently, the securities' marketability and price are discounted. However, under
certain market conditions, gains are also possible with these types of securities.
Default risk represents the possibility that the borrower may be unable to repay the obligation as
scheduled. Generally, securities issued by the federal government and its agencies are considered the
most secure, while securities issued by private corporations or negotiable certificates of deposit issued
by commercial banks have a greater degree of risk. Securities with additional credit enhancements,
such as bankers acceptances, collateralized repurchase agreements and collateralized bank deposits
are somewhere between the two on the risk spectrum.
The vast majority of portfolios are managed within a buy and hold policy. Investments are purchased
with the intent and capacity to hold that security until maturity. At times, market forces or operations
may dictate swapping one security for another or selling a security before maturity. Continuous
analysis and fine tuning of the investment portfolio are considered prudent investment management.
The Government Code contains specific provisions regarding the types of investments and practices
permitted after considering the broad requirement of preserving principal and maintaining liquidity
before seeking yield. These provisions are intended to promote the use of reliable, diverse, and safe
investment instruments to better ensure a prudently managed portfolio worthy of public trust.
Chapter II. Fund Management
Local Agency Investment Guidelines 2010 Issued by California Debt and Investment Advisory Commission
Appendix J
GLOSSARY
(Adopted from the Municipal Treasurers Association)
36
The purpose of this glossary is to provide the reader of the City of La Quinta investment policies
with a better understanding of financial terms used in municipal investing.
AGENCIES: Federal agency securities and/or
Government -sponsored enterprises.
ASKED: The price at which securities are offered.
BANKERS' ACCEPTANCE (BA): A draft or bill or
exchange accepted by a bank or trust company.
The accepting institution guarantees payment of the
bill, as well as the issuer.
BID: The price offered by a buyer of securities.
(When you are selling securities, you ask for a bid.)
See Offer.
BROKER: A broker brings buyers and sellers
together for a commission.
CERTIFICATE OF DEPOSIT (CD): A time deposit
with a specific maturity evidenced by a certificate.
Large -denomination CD's are typically negotiable.
COLLATERAL: Securities, evidence of deposit or
other property which a borrower pledges to secure
repayment of a loan. Also refers to securities
pledged by a bank to secure deposits of public
monies.
COMMERCIAL PAPER: Short-term unsecured
promissory notes issued by a corporation to raise
working capital. These negotiable instruments are
purchased at a discount to par value or at par value
with interest bearing. Commercial paper is issued
by corporations such as General Motors
Acceptance Corporation, IBM, Bank America, etc.
COMPREHENSIVE ANNUAL FINANCIAL
REPORT (CAFR): The official annual report for the
City of La Quinta. It includes five combined
statements
for each individual fund and account group
prepared in conformity with GAAP. It also includes
supporting schedules necessary to demonstrate
compliance with finance -related legal and
contractual provisions, extensive introductory
material, and a detailed Statistical Section.
CONDUIT FINANCING: A form of Financing in
which a government or a government agency lends
its name to a bond issue, although it is acting only
as a conduit between a specific project and bond
holders. The bond holders can look only to the
revenues from the project being financed for
repayment and not to the government or agency
whose name appears on the bond.
COUPON: (a) The annual rate of interest that a
bond's issuer promises to pay the bondholder on the
bond's face value. (b) A certificate attached to a
bond evidencing interest due on a payment date.
DEALER: A dealer, as opposed to a broker, acts as
a principal in all transactions, buying and selling for
his own account.
DEBENTURE: A bond secured only by the general
credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two
methods of delivery of securities: delivery versus
payment and delivery versus receipt. Delivery
versus payment is delivery of securities with an
exchange of money for the securities. Delivery
versus receipt is delivery of securities with an
exchange of a signed receipt for the securities.
DERIVATIVES: (1) Financial instruments whose
return profile is linked to, or derived from, the
movement of one or more underlying index or
security, and may include a leveraging factor, or (2)
financial contracts based upon notional amounts
whose value is derived from an underlying index or
security (interest rates, foreign exchange rates,
equities or commodities).
DISCOUNT: The difference between the cost price
of a security and its maturity when quoted at lower
than face value. A security selling below original
offering price shortly after sale also is considered to
be at a discount.
DISCOUNT SECURITIES: Non -interest bearing
money market instruments that are issued a discount
and redeemed at maturity for full face value, e.g.,
U.S. Treasury Bills.
DIVERSIFICATION: Dividing investment funds
among a variety of securities offering independent
returns.
FEDERAL CREDIT AGENCIES: Agencies of the
Federal government set up to supply credit to
various classes of institutions and individuals, e.g.,
37
S&L's, small business firms, students, farmers, farm
cooperatives, and exporters.
FNMAs (Federal National Mortgage
Association) - Like GNMA was chartered under
the Federal National Mortgage Association Act
in 1938. FNMA is a federal corporation working
under the auspices of the Department of
Housing and Urban Development (HUD). It is
the largest single provider of residential
mortgage funds in the United States. Fannie
Mae, as the corporation is called, is a private
stockholder -owned corporation. The
corporation's purchases include a variety of
adjustable mortgages and second loans, in
addition to fixed-rate mortgages. FNMA's
securities are also highly liquid and are widely
accepted. FNMA assumes and guarantees that
all security holders will receive timely payment
of principal and interest.
2. FHLBs (Federal Home Loan Bank Notes and
Bonds) - Issued by the Federal Home Loan
Bank System to help finance the housing
industry. The notes and bonds provide liquidity
and home mortgage credit to savings and loan
associations, mutual savings banks,
cooperative banks, insurance companies, and
mortgage -lending institutions. They are issued
irregularly for various maturities. The minimum
denomination is $5,000. The notes are issued
with maturities of less than one year and
interest is paid at maturity.
3. FLBs (Federal Land Bank Bonds) - Long-term
mortgage credit provided to farmers by Federal
Land Banks. These bonds are issued at
irregular times for various maturities ranging
from a few months to ten years. The minimum
denomination is $1,000. They carry semi-
annual coupons. Interest is calculated on a
360-day, 30 day month basis.
4. FFCBs (Federal Farm Credit Bank) - Debt
instruments used to finance the short and
intermediate term needs of farmers and the
national agricultural industry. They are issued
monthly with three- and six-month maturities.
The FFCB issues larger issues (one to ten year)
on a periodic basis. These issues are highly
liquid.
5. FICBs (Federal Intermediate Credit Bank
Debentures) - Loans to lending institutions used
to finance the short-term and intermediate needs
of farmers, such as seasonal production. They
are usually issued monthly in minimum
denominations of $3,000 with a nine -month
maturity. Interest is payable at maturity and is
calculated on a 360-day, 30-day month basis.
6. FHLMCs (Federal Home Loan Mortgage
Corporation) - a government sponsored entity
established in 1970 to provide a secondary
market for conventional home mortgages.
Mortgages are purchased solely from the Federal
Home Loan Bank System member lending
institutions whose deposits are insured by
agencies of the United States Government. They
are issued for various maturities and in minimum
denominations of $10,000. Principal and interest
is paid monthly. Other federal agency issues are
Small Business Administration notes (SBA's),
Government National Mortgage Association
notes (GNMA's), Tennessee Valley Authority
notes
(TVA's), and Student Loan Association notes
(SALLIE-MAE's).
FEDERAL DEPOSIT INSURANCE
CORPORATION (FDIC): A federal agency that
insures bank deposits, currently up to $250,000
per deposit through December 31, 2013.
FEDERAL FUNDS RATE: The rate of interest at
which Fed funds are traded. This rate is currently
pegged by the Federal Reserve through open -
market operations.
FEDERAL HOME LOAN BANKS (FHLB):
Government sponsored wholesale banks (currently
12 regional banks) which lend funds and provide
correspondent banking services to member
commercial banks, thrift institutions, credit unions
and insurance companies. The mission of the
FHLBs is to liquefy the housing related assets of its
members who must purchase stock in their district
Bank.
FEDERAL OPEN MARKET COMMITTEE (FOMC):
Consists of seven members of the Federal Reserve
Board and five of the twelve Federal Reserve Bank
Presidents. The President of the New York Federal
Reserve Bank is a permanent member, while the
other Presidents serve on a rotating basis. The
Committee periodically meets to set Federal Reserve
guidelines regarding purchases and sales of
Government Securities in the open market as a
means of influencing the volume of bank credit and
money.
FEDERAL RESERVE SYSTEM: The central bank
of the United States created by Congress and
consisting of a seven member Board of Governors
in Washington, D.C., 12 regional banks and about
5,700 commercial banks that are members of the
system.
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (GNMA or Ginnie Mae): Securities
influencing the volume of bank credit guaranteed by
GNMA and issued by mortgage bankers,
commercial banks, savings and loan associations,
and other institutions. Security holder is protected
by full faith and credit of the U.S. Government.
Ginnie Mae securities are backed by the FHA, VA
or FMHM mortgages. The term "pass-throughs" is
often used to describe Ginnie Maes.
LAIF (Local Agency Investment Fund) - A special
fund in the State Treasury which local agencies
may use to deposit funds for investment. There is
no minimum investment period and the minimum
transaction is $5,000, in multiples of $1,000 above
that, with a maximum balance of $50,000,000 for
any agency. The City is restricted to a maximum of
ten transactions per month. It offers high liquidity
because deposits can be converted to cash in 24
hours and no interest is lost. All interest is
distributed to those agencies participating on a
proportionate share basis determined by the
amounts deposited and the length of time they are
deposited. Interest is paid quarterly. The State
retains an amount for reasonable costs of making
the investments, not to exceed one-half of one
percent of the earnings.
LIQUIDITY: A liquid asset is one that can be
converted easily and rapidly into cash without a
substantial loss of value. In the money market, a
security is said to be liquid if the spread between
bid and asked prices is narrow and reasonable size
can be done at those quotes.
LOCAL GOVERNMENT INVESTMENT POOL
(LGIP): The aggregate of all funds from political
subdivisions that are placed in the custody of the
State Treasurer for investment and reinvestment
MARKET VALUE: The price at which a security is
trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written
contract covering all future transactions between the
parties to repurchase --reverse repurchase
agreements that establishes each party's rights in
the transactions. A master agreement will often
specify, among other things, the right of the buyer -
lender to liquidate the underlying securities in the
event of default by the seller -borrower.
MATURITY: The date upon which the principal or
stated value of an investment becomes due and
payable
MONEY MARKET: The market in which short-term
debt instruments (bills, commercial paper, bankers'
acceptances, etc.) are issued and traded.
OFFER: The price asked by a seller of securities.
(When you are buying securities, you ask for an
offer.) See Asked and Bid.
OPEN MARKET OPERATIONS: Purchases and
sales of government and certain other securities in
the open market by the New York Federal Reserve
Bank as directed by the FOMC in order to influence
the volume of money and credit in the economy.
Purchases inject reserves into the bank system and
stimulate growth of money and credit; sales have the
opposite effect. Open market operations are the
Federal Reserve's most important and most flexible
monetary policy tool.
PORTFOLIO: Collection of all cash and securities
under the direction of the City Treasurer, including
Bond Proceeds.
PRIMARY DEALER: A group of government
securities dealers who submit daily reports of market
activity and positions and monthly financial
statements to the Federal Reserve Bank of New
York and are subject to its informal oversight.
Primary dealers include Securities and Exchange
Commission (SEC) -registered securities broker -
dealers, banks and a few unregulated firms.
QUALIFIED PUBLIC DEPOSITORIES: A financial
institution which does not claim exemption from the
payment of any sales or compensating use or ad
valorem taxes under the laws of this state, which has
segregated for the benefit of the
commission eligible collateral having a value of not
less than its maximum liability and which has been
approved by the Public Deposit Protection
39
Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a
security based on its purchase price or its current
market price. This may be the amortized yield to
maturity on a bond the current income return.
REPURCHASE AGREEMENT (RP OR REPO): A
holder of securities sells these securities to an
investor with an agreement to repurchase them at a
fixed price on a fixed date. The security "buyer" in
effect lends the "seller" money for the period of the
agreement, and the terms of the agreement are
structured to compensate him for this. Dealers use
RP extensively to finance their positions.
Exception: When the Fed is said to be doing RP, it
is lending money that is increasing bank reserves.
REVERSE REPURCHASE AGREEMENTS(RRP
or RevRepo) - A holder of securities sells these
securities to an investor with an agreement to
repurchase them at a fixed price on a fixed date.
The security" buyer" in effect lends the"seller"
money for the period of the agreement, and the
terms of the agreement are structured to
compensate him for this. Dealers use RRP
extensively to finance their positions. Exception:
When the Fed is said to be doing RRP, it is lending
money that is increasing bank reserves.
SAFEKEEPING: A service to customers rendered
by banks for a fee whereby securities and valuables
of all types and descriptions are held in the bank's
vaults for protection.
SECONDARY MARKET: A market made for the
purchase and sale of outstanding issues following
the initial distribution.
SECURITIES & EXCHANGE COMMISSION:
Agency created by Congress to protect investors in
securities transactions by administering securities
legislation.
SEC RULE 15C3-1: See Uniform Net Capital Rule
STRUCTURED NOTES: Notes issued by
Government Sponsored Enterprises (FHLB, FNMA,
SLMA, etc.) and Corporations which have imbedded
options (e.g., call features, step-up coupons,
floating rate coupons, and derivative -based returns)
into their debt structure. Their market performance
is impacted by the fluctuation of interest rates, the
volatility of the imbedded options and shifts in the
shape of the yield curve.
SURPLUS FUNDS: Section 53601 of the California
Government Code defines surplus funds as any
money not required for immediate necessities of the
local agency. The City has defined immediate
necessities to be payment due within one week.
TREASURY BILLS: A non -interest bearing discount
security issued by the U.S. Treasury to finance the
national debt. Most bills are issued to mature in
three months, six months or one year.
TREASURY BONDS: Long-term coupon -bearing
U.S. Treasury securities issued as direct obligations
of the U.S. Government and having initial maturities
of more than 10 years.
TREASURY NOTES: Medium -term coupon -bearing
U.S. Treasury securities issued as direct obligations
of the U.S. Government and having initial maturities
from two to 10 years.
UNIFORM NET CAPITAL RULE: Securities and
Exchange Commission requirement that member
firms as well as nonmember broker -dealers in
securities maintain a maximum ratio of indebtedness
to liquid capital of 15 to 1; also called net capital rule
and net capital ratio. Indebtedness covers all money
owed to a firm, including margin loans and
commitments to purchase securities, one reason
new public issues are spread among members of
underwriting syndicates. Liquid capital includes cash
and assets easily converted into cash.
UNIFORM PRUDENT INVESTOR ACT: The State of
California has adopted this Act. The Act contains the
following sections: duty of care, diversification,
review of assets, costs, compliance determinations,
delegation of investments, terms of prudent investor
rule, and application.
YIELD: The rate of annual income return on an
investment, expressed as a percentage. (a)
INCOME YIELD is obtained by dividing the current
dollar income by the current market price for the
security. (b) NET YIELD or YIELD TO MATURITY is
the current income yield minus any premium above
par or plus any discount from par in purchase price,
with the adjustment spread over the period from the
date of purchase to the date of maturity of the bond.
.N
CONSENT CALENDAR ITEM NO.
City of La Quinta
CITY COUNCIL MEETING: June 7, 2016
STAFF REPORT
AGENDA TITLE: APPROVE 2016/17 INVESTMENT ADVISORY BOARD WORK PLAN
RECOMMENDATION
Approve the Investment Advisory Board Work Plan for 2016/17.
EXECUTIVE SUMMARY
Each year, the Investment Advisory Board (IAB) presents its work plan to the
Council in order to provide an opportunity for potential modifications to the
existing plans.
The Investment Advisory Board's (IAB) current work plan reflects five principal
functions as set forth in the City's Municipal Code.
FISCAL IMPACT - None.
BACKGROUND/ANALYSIS
The work plan adopted by the IAB does not differ from the previous year and is as
follows:
Review the City's investment policy annually and recommend changes.
Review monthly treasury report, noting compliance with the investment policy
and adequacy of cash and investments for anticipated obligations.
Receive and consider other reports provided by the City Treasurer.
Meet with the independent auditor after completion of the City's annual audit
and receive and consider the auditor's comments on procedures, internal
controls, and findings for cash and investment activities.
Serve as a resource for the City Treasurer on matters such as proposed
investments, internal controls, use or change of financial institutions,
custodians, brokers and dealers.
ALTERNATIVES - None.
Prepared by: Rita Conrad, Finance Director
Approved by: Frank J. Spevacek, City Manager