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HomeMy WebLinkAboutAgenda Bill 2B 07/19/2010.~ ,4 ~~.v~.dcv It~wv #2.3 DATE: July 19, 2010 TO: ~ Honorable Mayor and Members of the City Council through City Manager i FROiM: Sandra Sato; Interim Finance Director/City Treasurer SUBIJECT: Adopt Resolutions: 1) Resolution to Review and File the City Treasurer's Report Dated December 31, 2009 and; 2) Resolution to Amend the Interfund Loan Policy It is~recommended that the City Council adopt a Resolution to Review and File the City Treasurer's Report dated. December 31, 2009 and a Resolution to amend the Interfund Loan Policy. 1 BACKGROUND: In c I mpliance with. the City Investment Policy the Finance- Director/City Treasurer provides quarterly reports to the Council that include the detail of the City's cash,. investments and investment earnings. The Council is also required to review the investments for compliance with the adopted City Investment Policy. Preparation of these reports was delayed in fiscal year .2009.-10 due to employee turnover, vacancies in .critical positions and a corresponding backlog of work in the Finance Department. A report for the quarter ending September 30, 20:09 was provided to Council on June 21, 20.10. As stated at that :meeting, the reports for the rest of the 2009 10 fiscal year should be completed in the next few rrionths and will. be completed thereafter on a timely basis. In addition to review of'the Treasurer's Report, it is also recommended that the Interfund Loan Policy be amended retroactively to July 1, 2009. DISCUSSION: Quarterly City Treasurer's -Reports contain information on the City's cash activity and ending balances in alI City checking accounts. The report summarizes total beginning balances of all cash and investments,, total. quarterly activity and total ending balances. The report also provides quarterly activity and ;ending.. balances in the City's cash equivalent accounts and' information about, trustee accounts" activities and ending balances. Investment portfolio activity, security type, maturity 'and value, both book and fair value are also included. Finally, a comparison of the City's quarterly investment earnings with the City's benchmark. is also presented as part of the report. Agenda;;Revew: Dept. Drector_~~.City Attorney Finance Director" City Manager As discussed at he meeting of June 21, 2010, the Finance Department has a backlog of work which made it necessary to prioritize the workload to prepare Treasurers' .Reports. Accordingly, it was not. possible for the Interfund Loan Report to be done on a quarterly basis for this year, nor are the resources available to prepare this report on a quarterly basis for the current fiscal year. In terms of the Interfund Loan Policy and practice, it is important to note that all cash is pooled for investment purposes and on any •given day the cash could be overdrawn. However, the way the current policy was implemented in the past is that all overdrawn cash balances at the end of the period are reported. as Interfund loans, regardless of whether they are "Short-Term" or "Long Term" as defined by the Interfund Loan Policy. Staff then determines which funds are loaning money to the funds which have an overdrawn cash balance on the last day of each quarter. These loans are then reversed. on the first day of the view quarter. Interest allocation must also be completed before the Interfund Loan Report can be completed. This extra work delays the completion of the Treasurer's Report. Overdrawn or negative cash balances on all. other days are not reported in this manner and it would not be feasible for staff to indentify these funds on a daily basis. Due 'to the fact that the General. Fund will be operating with a $5;000 reserve during FY 2010-11, it is expected that cash flow into the General Fund during several months of the fiscal year, will not be sufficient to fully cover. cash outflows. This situation. occurs because property tax revenues are received twice a year in. December and April and'the cash. inflows do not match the outflows. In the past, a 15% reserve amply covered the .cash .:flow needs of the General Fund. The General Fund will not have enough cash to meet its needs at various times during the fiscal year, nor is the General Fund Reserve sufficient to cover the cash shortages in other funds, as it has in the past. The amount of the overdrafts could easily exceed the $200,000 which is defined as "Long Term Loans" in the current policy and requires formalization. The ~ current reporting requirements add little to aid the Public's understanding of City accounting, nor does such support the City's effort to account for these loans. Current requirements demand a considerable commitment of time, however, from a Finance Department that is already impacted by layoffs, turnover and furloughs. By amending the attached policy, interfund loans can be handled differently and within the existing resources, without sacrificing accountability for interfund loans. Al!1 interfund loans, including those interfund loans defined in the current policy as "Short-Term Interfund, Loans''are reported as part of the CAFR (Comprehensive Annual Financial Report). Providing.: this information on an annual -basis is consistent with the practice in many other governmental -agencies where ,overdrawn cash is accounted for by simply averaging the cash balances. for the quarter and °allocating a "negative .interest" or interest earnings to each fund based on the averag"e cash balance over the quarter. This provides full and complete accountability without the necessity of reporting formal loans for one day per quarter. Borrowing from the pooled. cash and repaying based upon- the earnings in the pooled cash is the most feasible alternative. Under this method all funds will be fairly accounted for either by being allocated an interest charge based upon the negative cash balance or being allocated interest based upon the positive cash balance. In the event a formal loan needs to be made for a specific projector purpose this would be done on an as needed basis and Council approval would be obtained for the re-payment plan. Therefore, it is recommended that the amended Policy read as follows: Short-Term Interfund Loans From time to time cash balances in the pooled cash will be overdrawn due to timing differences. The Treasurer is authorized to allow these overdrafts as long as they represent short term cash flow issues which can reasonably be expected to be covered from revenues or other resources in the fscal year in which the overdraft occurs. AlI overdrawn cash balances at June 30th will be reported and accounted 'for in the. CAFR (Comprehensive Annual Financial Report) in accordance with GAAP (Generally Accepted Accounting Principles)... The quarterly interest on the pool will be allocated as .interest earnings or charged as interest expense m the event of overdrawn. balances on all funds based upon the average cash balance for each~fund over the quarter. Long-Term Interfund Loans 1 In rare instances when it becomes necessary to create a long term interfund loan for a specific purpose or project, the Council will approve a formal loan agreement between the two funds which will contains terms for repaying the .loan with interest. If for some .reason the payments cannot. be made on schedule this shall. be reported to the Council on a timely basis. Otherwise these loans will be reported on annually in the CAFR. Gen I ral Parameters The ;second paragraph: "The City Council will review all nterfund loans that exceed $200,000. A status report will be included with the Quarterly Treasurer's Report". The only change proposed. to this .section is the deletion of the second paragraph as all long term loans will be approved by the Council and reported on once a .year. If "the payments cannot be paid, as per the payment schedule approved by the City Council, the City Council will be notified. FINANCIAL IMPACTS: None 3 ATTACHMENTS 1. Resolution to Review and File the City Treasurer's Report dated December 31, 2009 2. Resolution ao Amend the Interfund Loan Policy 3. City Treasurer's Report Dated December3l, 2009 4'. Current Interfund Loan Policy y. ATTACHMENT 1 RESOLUTION TO REVIEW AND FILE. THE CITY'S TREASURER' S REPORT DATED DECEMBER 31,.2009 WHEREAS, the City Investment Policy .requires that the City Council review the City's Treasurer's Report on a quarterly basis for compliance with the adopted City Investment Policy. NOW, THEREFORE BE IT RESOLVED that the City Council has reviewed the report dated December 31, 2009 and directs the City Clerk to file it. .~ ATTACHMENT 2 RESOLUTION ~TO AMEND THE. INTERFUND LOAN POLICY WHEREAS, the Interfund loans can be handled in a more efficient manner without reducing accountability, and WHEREAS, the City pools cash for investment purposes, and WHEREAS, at various tinges of the year due to timing in cash receipts and reimbursements from granfs various funds will need to overdraw their cash balance and this overdraft or interfund loan can be covered by the pool, and WHEREAS, efficiency can be improved without impacting accountability by modifying the Interfund Loan Policy reporting requirements to eliminate quarterly reports of interfund loans and requiring the reporting of interfund loans to be included in the' CAFR (Comprehensive Annual Financial Report) as required by GAAP (Generally Accepted Accounting Principles). NOW, THEREFORE BE IT RESOLVED that the City Council has reviewed the Interfund Loan Policy hereby amends the Interfund Loan Policy as follows: 1. Short-Term Interfund Loans From time to time cash balances in the pooled cash will be overdrawn due to timing differences. The Treasurer is authorized. to allow these overdrafts as long as they represent short term cash flow issues which can. reasonably be expected to be covered from revenues or other resources in the fiscal year in which the overdraft occurs. All overdrawn cash balances at June 30th will be reported and ,accounted for in the CAFR (Comprehensive Annual Financial Report) in accordance with GAAP (Generally Accepted Accounting Principles). The quarterly interest on the pool will be allocated as interest earnings or charged as interest expense in the, event of overdrawn balances on all funds based upon the average cash balance for each fund over the quarter. 2. Long-Term Interfund Loans In rare instances when it becomes necessary to create a long term interfund loan for a specific purpose or project,. the Council will approve a formal .loan agreement between the> two funds which w~ll contains terms for repaying the loan with interest. If for some .reason the payments cannot be made on schedule this shall be reported to the Council on ~a timely basis. Otherwise these loans'will be reported on annually in the CAFR. 3. General Parameters Delete the second paragraph: "The City Council. will review all interfund loans that exceed $200,000. A status report will be included with the Quarterly Treasurer's Report". 4. EffectiV,e .Date: The amendments to the Interfund Loan Policy shall take effective retroactive to July 1, 2009. pity Of ~etalu~a. Quarterly ~nvestr~e~t ~Zep~~rt ~cto~er 1, 2009 - I~ecem.ber 31, 2009 ~~, ATTACHMENT3 This report, is presented in accordance with the .City's.investment policy anal fhe California Government ,Code. The polic}~ and Govenunent Code requires the. Treasurer to certify that sufficient cash flow is.available for the next sib months to meet the expected demand or provide ail explanatoi7 as to why sufficient cash may not be available, Thee attached re~~ort outlines. the current investments,. weighted average and yields of pooled nvestn7cnts. The month end account statement of assets managed by Public Financial .Management, LLC. (PF1VI), the Local Agency Investment Funds (LA1F) quarterly statement, and the.Cty's performance summary of portfolio investments as compared to applicable benchmarks are included. The report also includes the Treasurer's certification of adeduate cash flow. We respectfully submit the quai~erly investment report for the quarter ending December, 2009. I F~~L ,,~ k»~\~ ', a "*L,.d' C~'g'Y ®~' P~TA><,LTIVIA, CA ~~TX 'I'~~ASgJ)f2E)E2'S Q><JAI2T'~RI.Y RESORT Eor the quarter e~diing Decein~er, 2®09 Cash activity for the fiscal year: Cash and Investments, Beginning of the Fiscal Year, 10/1 /09 Cash Receipts Cash Disbursements Cash and Investments, End of the)E+'iscal Year, 12/31/09 $ 100,488,495 74,018,918 (64,930,487) $ 109,576,926 Cash and Investment Portfolio at December 31, 2009 Percent Fair Par Value of Value* (C'ost) Portfolio Investments Managed by City Treasurer: Assessment Districts Bonds Local Agency Investment Funds (LAIF) CAMP Pool (CA Asset Management:Prog) PFIYI Investments Securities ** Subtotal Investments 1Vlanaged by 1F'iscal Agents: CAMP Debt Issue Accounts Trustee Money Market Accounts Subtotal Checking Accounts Total Cash and Investments 741,602 741.,602 0.68% 22,272,587 22,251,509 20.31% 31.,011,800 31.,011,800 28.30% 24,744,239 24,742,908 22.58% 78,770,228 78;747,818 71.87% 28,200,51 S 28,200,515 25.74% 20,266 20,266 0.02% 28,220,781 28,220,781 25.75% 2,608,327 2,608,327 2.38% 109,599,336 109;576,926 100.00% I certify that .this report. contains the total amow~ts of cash and investments at December 31, 2009 The investments are inconformity-with the Investment Policy. A copy of the "Investment Policy is available for review in the Fnance::Department. The City Treasurer's cash management program provides sufficient liquidity to meet expenditure requirements for the nest six months. sue, ~,,. ~. S~ Sandra Sato, interim Finance Director *Fair values :furnished by the State of California, Local Agency Investments and California Asset Management Program, and are adjusted annually. ** See detail on pages 8-14. Page 2 of 18 9 City of Petaluma, California -- --- C'as°h/Investment:by=~'ype-December,-2009 - - - - 'Total Cashiinvestents $109,576,926 Cash $2,608,327 2.3 8% ~_ '~~ --~ CAMP POOL ~, $31,Oll,800 28.30% ,, ;. ,. $24;742,908 22.58% ~, ~,\ Fscal Agents ~- ° $28,220,781 25.75% Other $741,6. .6$% LAIF $22,251,SOR ~`` 20.31% d ~, _ PFM Managed Invest~nents~,, Page 3 of 18 ~. Q CITY OFPETALUMA, CA CITS' TREASURER'S QUARTERLY IEEORT For the quarter entlingDecember, 2009 Beginning. End of hrvestments) Financial Institute of Quarter Increase*^ Decrease Month InvestmentsManaged by City Treasurer: Assessment District Bond (AD)'2000-O1 Sub-Total~Assessment Districts Bond (AD) Accounts LAIF LA1F accrued' interest i Sub-Total iLA1F i CAMP Pool-Treasurer's Investment Money;6larket CAMP Pool Managed Account Sub-Total I~ederal Agency Bonds/IYotas Fed Agency accrued interest US Treasury Bonds/Notes_ US Treasury accrued interest US 'Treasury Bill US Gov. Support Corp Debt US Gov. Support Corp Debt interest Corporate Notes Corporate Notes accrued interest PFM Securities Managed Account Sub-Total ** Subtotal Investments MManaged by'i'rustees Fiscal Agents: I CAMP-AD23, 24, 25 Accounts Money Market CAMP-PFA 2002 ARR Accounts CAMP-2001 B Water Rev, 2003 COP, 2007 TAB CAMP-Detitlssne Accounts Sub-Total ** US Batik-ARR Accounts US Bank First American Treas Wells Fargo Govem MM Union Bank Blackrock Sub-Total'Crustees Money Market Account Subtotal Checking Accounts: Exchange-General' Qperati ng Exchange-Payroll Thomas Lee Police Tntst . .Subtotal Total Cash and Im~estments I ^ includes gain/Inss nn maturity/disposal * accrual basis 741;602.43 - 741,602.43 741;602:43 - - 741,602.43 22,167,51790 50,130.37 22,217,648.27 130.37 33.560:3.1 (50.130.3 21,489,10.14_ 22,756,654;19 (13,234,36421). 31,011,800.'12 21,489;510:14. ~ 22,756,654.19 (13,234;364.21) 31,011,800.12 9,803,058.43 4,753,487.00 (4,774;515.60) 9,782,029.33 96,324.20 6;046.85. (49,389.98) 52,981.07 6;660,394.53 3,990;546.88 (2,028,710:94) S;622,230.47 38;161.23 1,250:26 (20,034.66) 19,376.83 1;498,913.54 820:9'3 (1,499,734.47) - 1,702,560.40 21,680.00 (521,370.00) 1;202,870.40 16,52:22 4,340.6'3 .(18,664.58) 2;22827 4;986,561.50. 46,199:67 35,625.00 (7,18Z~0) 4,986,561.50 74,629.17 24,848,717:72 8,813,797:55 (8,919,607.73) 24,942,907.54 69,297;478.56 31,6.54;442.42 (22,204,102.31) 78;747;81.8.67 424,763:95 292.77 425,056.72 =166,307.38 321.39 466,628`77 27;290,020.65 18;808.76 - 27,30S,S29'4 t ,28,181,091.98 19,422.92 - 28,200,514:90 17,020.39 17,020.39 3;238.19 1;644,060.02 (1,644,060.03) 3,238.13 2:73 154;184:57 (154,186.88) 0.42 2.73 456;758.46 (468,214.53) 6:66 6.02 2,947,811.70 34,67;929;33 {35;796;719.30). 1;809;021.73 7,998.87 5;432,112.00 (4,663;203;83) 776,907:04. 2,067.38. 2,067.35 20,322.58 '832 - 20;330.90 2,978,200.53 40,090,049:65 (40;459,923.13) 2,603;327.05 1(10;488,495.}1 74,018,918.04 (04,930;486:88) 109,576;926.29 Page 4 of T$ ~ f CITY ®1+ PETA[,UMA, CA C9'I'Y TREASURER'S QUAE2TEQ2LYI2EPORT For the quarter ending December, 2009 Costvs. Fair Market Value Cosy FV Gain/(Loss) US Treasury BondMote 8,622,230.47 8,612,451.87 (9,77$.60) w/o acc int US Treasury Biill - - - w/o acc int Ii Federal Agency 13ond/Note 9,782;029.83 9,787,314.08 5,284.25 w/o acc int ' US Gov Support Copp Debt ~ 1,202,870.40 1,230,312.21 27,441.81 w/o acc int ~ Corporate Note 4,986,561.50 5,114,161.10 127,599.60 w/o acc int Sub-'Total PFNI Treasurer's, nvest. Securities 24,593;692'.20 24,744,239.2b 150,547.06 CA1V1P Pool Money Market Fund 31,011,800.12 31,011,800.12 Sub-Total CAMP Treasurer's Investments 55;605,x92.32 55,75b,039.38 150,547.Ob Accrued 'Interest 149,215.34 CAlV1P Totaf Investment 1Vlanaged Securities held ~ 55,905,2'54.72 i CAMP Debt Issue Managed Accounts 28,181.,091.98 28,200,514.90 19,422.92 PF1VI CAMP Total Treasurer's :Investments ** 83;786,584.30 83,95b,554.28 1699b9.98 w/o Accrued Interest LAIF LA1F amortized cost rate ** See detail on pages 7 - 14. 22,251,508.58 22,272,587.10 21,078.52 1..00094728500 Page s ot~ ~ s ~~ Consolidated-Sumrv~ary-Statement -- --- CITY' OF PETA.LUNIA Cash Dividends Closing Current Portfolio Holdings and Income' Market Value Yield CAMP Pool 10,882.28 59,212,315.02 0.23 CAMP Managed Account 60,399:45 .24,744,239.26 * N/A Total $71,281.73 $83,956,554.28 Not Applicable Account statement - -For-.the-Month Ending December 31;.2009 ~y _ :.~i ''' _i~~'ti~Ts't~f~.r~Yr .~I. ~,~ ~ ~? ' ~ T~}) 4 -._.,t` ~_ ~--Pt L~" ~Y ~ Investment Type Closing. Market Value Percent Corporate Note 5,114,161.10 6:09 Federal Agency Bond /Note 9,787,314.08 SIs66 Money Market Fund 59;212,315.02 70:52 U.S. Government Supported. Corporate Debt 1,230,312.21 1.47 U,S. Treasury Bond /Note 8,612,451.87 10.26 Total $83,956,554.28 100.00% .-~.- f ^'~ --r T ti ; -. i ~._ ~c .tic-~,Jt r-Z. 1~%.- ~i??r..il -,-~*3s ..-~~ ~3a~c-•.~-5r f - ~ _ -a't"~~_ ~~_ '. Ytr~-~__ .1 . X19" ~~ o~~~ '.6 .~~ - 1k,:.r' `.1" _ _ ~ . _ ~T' r -. ~ .:,r ~_ ~ ~7i f• ~ ~. - _ *_. - c r -'1-~-~ t7 rl'~F~ :'t - .~ ~~ - ~~ ~' _Y ' f'ti' c. ~~ - ~~``~- [~ Jf t al ~ ~. "S S~ Jar. ~ : }. 2'~~ ~ - ~?--- - - .v J ~',, s f Y C - ?. ,..L; Irt ~t`F/p4~'411f- -]~« .. !~-; A: ] ,I'~r~..41.«>`~''~,.'~"~.f'4"s~.~"`"~'{t~ R Y_ .i dh~'.,'~`~rt''.+, Portfiolio Holdings Closing Market Value Percent Under 30 days 60,213,186.02 71.71 31 to 60 days 802,909.60 0.96 61 to 90 days :0.00 0.00 91 to 1'80 days ;1,013;670.00 1.21 181 days to 1-year 1;020,918.00 1.22 1 to 2 years 10,207,131.46 12.16 '2 to 3 years 10,698,739.20 12.74 3 to 4 years 0.00 0.00 4 to 5 years 0.00 0.00 Over 5 years 0.00 0.00 Corporate Note. US TSY Bontl /Note 6:09% 10.26%~ -- Fed Agy'Bond / US Govt Supported ~~_ ~~ Note Corp Debt ~ 11.66°~0 1.49% ~~' '~` (~ir~ ,~ Total $83,956,554.28 100.00% Weighted Average Days to Maturity 197 Mny Mkt Fund 9oaz°r° Summary Page 1 `~ ~ :;;~ I~~: b~~ t~~~,~;ct ~~~tr~~~~;z~tac~r~t ~~1..C c+~ 01 -` ~ ~N 00 ~-ccount Statement -=` ---' COnSOllflat~(I ~tlntotl~6'y-St~teni~nt-- ---.For..the Month Ending ,December 31,.2009 CITY OF PETALUf~~ik Account Opening Market Purchases % Redemptions /Sales/ Unsettled Change in• Closing Market Cash Dividends Number Account Name Value Deposits Maturities Trades Value: Value and`Income 19-100 2003 COP RESERVE- 457,933.93 - 98.59 0,00 0.00 0.00 458;082.52'> 9dS9 ] 1~_ 2003 COP CAPITALIZ~_! 1'JTER-: i 1,638.51 0.35 0.00 0.00 0.00 ] • ,' 0.35' 19-104 CRRD 2004 AD24 AND AD25 220;484.70 0.00 O.Oi; 0.00 0.00 220,484.70 47.46 19-106 CRRD 2004 AD2• '." ',S'25 40,609.00 56.20 0.0~ 0.00 0.00 40,665.20 8.Z4 19-108 PLDL 2007 TA6 26;183;528:70 > 5,636.4- 0.00 0.00 0.00" > 26,189,165.17 ' 5,636.47 19=80 2001 AD#23'REGWOOD $USINESS 130;954OU O;OU O:OG ;0:00 0.00 130,954:00. 28.19 PARK - 19-81 2001 AD#23REDWOOD BUSINESS 32;917:5w 35.2; ~ ~~~C -.1~~ `..D~:' -?,952.82' x7.09 PARK 19-q2 WTR REV BND O1 S~~,L00.83 142.03 O,n~'~ b.Up ,;.cG 659,942.86 i;_ 03 1 -''_ PFA 2002 REV'RFD ENDS ...466,528.3-} 100,43 i ~i_ 0.00 ' 0.00 966,628J7 1~'i,43 531-00 TREASURER'S INVESTMENTS 44;693,443.u3 21,273,961.92 (10,026,089.85) 0,00 (185;275.72) 55,756,039.38 b5,212.38 Total $72,887,888.58 $21,280,031.27 ($10,026,089.85) $0.00 ($185,275.72) $83,956,554.28 $71,281.73 __ _ AGC®iAi1~ S$d~~C9'1e19$~- TI'~19SaC~lO1S-56A11'1i99~P'y-- -- --For. the_Month Ending December 31, 2009 CITI' ~~F PETALUNiA - -~~'.E,~SURER'S IIV~IES i P~~iEf~~TS - 5?1-00 _. _ _ Opening. Market Value 19,691,254.01 Purchases 16,553,024.42 Redemptions (5,232,478.31) Unsettled Trades 0.00 Change ih Value 0.00 Closing Mlarket Value - $31,011,800.12 Cash Dividends and Income 4;812,93 Opening Market Value 25,002,189.02 Purchases ,4,720,937:50 Redemptions (4,793,611.54) Unsettled Trades 0.00 Change in Value (1;85,275.72) Closing Market Value Cash Dividends and Income $24,744,239.26 60,399.45 ~~ ~ .. December 31, 2009 November,30,'2004 CAMP Pool 31,011,800,1.2 19,691,254.01 CAMP Managed Account 24,744,239.26 25,002189.02 Total $55,256,039.38' $44;693,443.03 CAMP Managed Account ~.~ 44.38% ~ ~ w ~.~ =~'F y f<-- JY y / 1- ~di ~_, ,~ ~_ , ~` ~r. ~ 2 - ~~~~ ~ rte. - -~ _ ',;ter •S . - CAMP'Pool 55.62% ` -- Managed-Account Slumrv9ary-Statement - -For-the-Month-Ending December-31,•2009 CITY OF Pf=Try! I-_If~~1A - T~-E,~S R~R'S INVFST~~~IEh!TS - 531-00 - (1~51~5~5) U ~~ ~ll~ _ ~1 , a r Lei-~[_ '~r-~~. -~~i~ •~ 1_ ~; ~- ~ ~ 1s-1- _:'~„~.~._,T~~° ~_,,.~`P~ __:s~: .7r _ • L ~ iF~T~ _J u~Ti~7T~ ~C«q` ~ ~Xr,~'- .-5 ~~'`~d'~4 ~^7'~'~'±~I ~i7jjlcx~~`'' a•;3,ti~j'I Vdt .. ~- t~ L.+-, ~ ~ _'~l ~ w. ~i,+kr - yy~r~-;~y_. ~' :~*~,`,~?~''~ ~}.i~"; 3 A~i-.. . ,~-. A_~. ti" _ L?3 ~~f-tiT±~+h'~-.,`y- --~-y - Opening Market Val~re $19,691,254.01 Opening Market Value $25,002,189.02 Opening Market Value $44,693;443:03 Purchases 16,553,024.42 Maturities/Calls 0.00 Redemptions (5,232,478.31) Principal Dispositions (4,793,611.54) Principal Acquisitions 4,720,937.50 Unsettled Trades 0.00 Change in Current Value (185,275.72) Closing Market Value $31,011,800.12 Closing MarketValue $24,744,239.26 Closing Market Value $55,756,039.38 Dividend 4;812.93 _ o~ _ ~.~~~- ~ .,.mot ~ryr~- ~`1- r. ,, ~ Y~~, ~ ~ ~~ ~ ..~.~' A' :rI~ .~' ~ L"'F-~L. ~'!r--~~-~,'v~~ ITT - ,~~' , * a~, =}C ~~ ~ ~~~~^~ _ _ ai. `.'~ Xi~k~.7.~~ 1-'^ .s.~~` ~i.~.'f l..-: ~ ~.~ Interest/Coupons Received 48,281.63 Closing Cash Balance $0.00 Less Purchased Interest Related to InterestJCoupons ~ (3,186.56) Plus Net Realized Gains/Losses 15;304.38 Total Cash Basis Earnings $60,399.45 T-, ~21 I ~ I~r 1~~- ~~~~S~i ~Z 1+~-• .~"K ~ ~~- ~ I'w.r,y ~Yl .~~ ~ ~~:1 • f Y -. ~ ~.. ~~ Y1~ ["'j(%'_# ~y,• ~~ Ending Amortized Value of Securities 24,560,342.56 55;572,142.68 Ending Accrued Interest 149,215.34 149;215.34 Plus: Proceeds from Sales 4,816,087.33 10,048,565.64 Plus Proceeds of Maturities/Calls/Principal Payments 0.00 0:00 Plus Coupons Received 25;805.84 25,805.84 Less Cost of New Purchases (4,724,124.06) (21,277,148.48) Less Beginning Amortized Value of Securities (24,601,891.54} (44,293,145.55) Less Beginning Accrued Interest (139,298.44) (139,298.44) Dividends 0.00 4,812.93 Total Accrual Basis Earnings $86,137.03 $90,949.96 :.- - .-~ _ . ~ - Ii1 r. ~:~Y~~ r - - - - ~.... - ~~r _~.ii~Y--.3 _ ,ar, - - - .-.mil Maturities/Calls 0.00 Sale Proceeds 4,816,087.33 Coupon/Interest Income 25,805.84. Principal Payments 0.00 Security Purchases (4,724,124.06) Net Cash Contribution (117,769.11) Reconciling Transactions 0.00 ~ ..~= ~ =~ ~ ~ ;~ o fv N 00 Account 531-00 Page 2 - - - ' - POt$f®Ii0-SilliStl9~i'y~di9t1-S$~$1St9CS :For the Month. Ending-December 31,-2009 CITY OF PE~~r~~.LUP~~IA -TREASURER'S I~~IVE STME(~J I S - 531-G0 - (12511500 -_f„~~ ~_- 'M. .~ ]~~ ~-~ ""'- _L F `.~'r t"'`~ .~ 4.rF.~ Z- ~ Li T.-~~ A'. ~.-K L: ~ ~ ~'-, -- •is#~'A.. a-.. :. je ~. - - r ~ ~~3 ~~ V ~_ry~~yJ. ~: .~_ 1. fi- YN ~~. i..51 ~~ ti~- f 1`I ~.'.! ri_w ~}. ev. - A ~i'.•~7' ~.-+t~` h-: ' x `•~V i~1'~a+ ~q _!w ~~- _ - -._F 7T'~L-. ~! ~h~ yy~~~I k•:;. Description - Par Value MarkefValue Percent U:S. Treasury Bond /Note 8,600,000.00 8,612,451.87 15.45 U.S. Government Supported Corporate 1,190,000.00 1,230,312.21 2.21. Debt Federal. Agency Bond /Note 9,585;000.00 9,787,314.0$ 17:55 Corporate Note 5,050;000:00 5,114,161:10 9.17 Managed Account,5ub-Total 24,425;000:00 24;744,239.26 44.38% Accrued Interest - 149,215.34 Total Portfolio 24,425;000.00 24,893;454.60 CAMP Pool 31,011;800:12 _31,011,800.12 55.62. Totallnvestments 55,436;800.12 55,905;254.72 100.00°Jo Unsettled Trades 0.00 0.00 ~.. ..y~... Ar -.. ~ i ~"t._t~"~! j~_~ft~~~ t L- ._.Jt - 1f~,' "r .~~. ~~r~°~-r'~: f''.~4 j . .~ 60.67% 18.31% 1.83% 0 - 6 Months 6 - 12 Months 1 - 2 Years 19.19°i 0.00% 0.00% 0.00% 2- 3 Years 3- 4 Years 4- 5 Years Over 5 Years Corporate Note US TSY Bond /Note 9.17% 15.45%~ ,: Fed Agy Bond / US Govt Supported Note Corp. Debt. ~ F f 17.55% 2.21% ~ i fy1 ~' ~i Mny'Mkt Fund 55.62% Yield'to Maturity at Cost 2.31% Yield to Maturity at Market 1,38% Duration to Worst 1.74 Weighted Ayerage'Days to Maturity 669 ~ ~ Account 531-00 Page 3 ~ ~~_ ~ 3 F-• o ~. ' .. o ,~ 00 ----Nianaget6-ACG~uo'o$ ~SSUer-51111'011'i~l'y -----.For_the_Month_Ending..,December,31,,2009 CITY OF PE r ALU~1A - TR.EASU~tER'S Ili\/EST4~1ENT5 - 531-00 - (12511505 ~_ _~~w ~~~~. ~ J ~_~ Y ~ J(!1'.. J. :~~~~ M ~~ •II aY11F~~~~` ~'^$ ~ 1 J-a Market Value Issuer of Holdings Percent BANK OF AMERICA CORP 2,034,588.00 3.65 CAMP Pool 31,011,800.12 55.61 CITIGROUP INC 1,410;609.01 2.53 FANNIE MAE 3,504,203.13 6.28 FEDERAL FARM CREDIT BANKS 833;837.50 1.50 FEDERAL HOME LOAN.BANKS 4,741,189:07 8.50 FREDDIE MAC 708;084.38 1:27 GENERAL ELECTRIC CO 1,275,792:50 2:29 REGIONS BANK 622;612.80 1.12 UNITED STATES TREASURY 8,612;451.87 15.45 WELLS FARGO & COMPANY 1,000,871.00 1.80 Total $55,756,039.38 100.00% ~5~~~y~ , .~:,. "'mss,...'' ~ ~ ~ ,,° .~~' ~~4-:~~j`~ :~ ~*.. 1 +l.r~ } _ ~ A W TSY 5.09% 15.45% AA+ ~ 2.29% r' ! ., \ IAA- k 1.80% AAA z ~~ ~1 19.76% -, ~_ ~. f 55.61% Account 531-00 Pa e 4 ~ ~, t 9 fD ~-- ~ x. ~, _ N~ ~.- 0 N 00 -~ - ~a118Jet0`-A000tili'~ D@~10 Of ~eClli'I~i~B-Held -------- ----For_the_Month_Ending_December_31,_2009 CI~~Y Of= PETf~LiJ~-i . - i ~:i=~~,SURE?'S I~~~VEST~~IENTS - 5~1-00 - (1511505) Security Type%f7escription S8cP Moody's Trade .Settle Original YTM Accrued Amortized Market Dafed Date/GouponJiNaturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value US>TP.EASUF.i fJ~~ ~'_ DTDO]/31/20090.8, ~ Ot/31/20~'. US TREASURY NOTE'_~ DTD 05/31/2006 4.8,= il'~ US TREASURY NOTE= DTD;11/30/2009 OJ ~ '~vll L - ~ r L,5 JRY NOTES DTD 03/15/2009 1.375% 03/1S/20L US TREASURY NOTES DTD 03/15/2009 1.375°/u , ~01~ U5 TREASURY NOTES. DTD OS/15/2009 1.375% 05/15/2012 US TREASURY NOTES DTD',12/15/2009 1.125%,12/15/2012 ~,~~,"7 ~,.,;S,ODD:00 TSY TSY OS/~O;o_ ...., _;U9 1,:;1.',.;2tr:76 ri,~ _-~h.;~f 1naF „~1~ t,0~8,265.~ 9128~~~:rr.-~ 880,000.00 TSY TSY 05/29/08 05/30/08 928,365.62 2.95 3;771r?~ ~ '~ 266.;; 929,740.24 1,^. ~-1f1~_'' T,.., T`~Y . ~;~;a 1.,,,,.,~~ .75 P;318.5~3 1 ~ _..-~ `_,9Si.00 9128: F:,~~ ~~ '.~~~~ ISi TSY i 11'~~~-~~ 03/16/09 ; +- ~:~00.00 1.50 3,281.ii 797,783.79 ~-,812.80 9128: F~~~ ..-~ ~i ~,~_ TS'r --, ~_ 1;;11 ~~; ~ 1 ',_,_ 13 L-_ 912828KP4 675,OOD.00 TSY TSY 05/29/09 06/04/09 673,022.46, 1.48 912828M83 2,000,DOC '~ ~_ T;- 12/~-'('~? 1='!30/OE 1 ~?+~1'~.'~~ ~_,57 9. ~_. ~ 1,20-},228.12 1,202,719.20' 1,205.02 673;403.67 675,000.00 ~ .:~.i+~? „974,265.? ,i,, Security-Type Sub-Total 8,600,0.00.00 8,622,230:47 1.39 19,376.83 8;596,363.49 8;613;451.87 till- - _ - - '.ice. .~_.~ La 'y ~ - _ ~'F .• ~~ ~ a rF~~.. -:.f. -4,~,L4..~~~ ~ s, .•:fyF_ _~ - 1r+~Y-X ~'y~ ,M.. .~ ~y. _ ...~~1.~~'4•~ _~ ~.T~ Ll f ~~' .x C:«- -. `~.. ~,.. _ _ _Q~ •y f~~~ ~ 'R'+,~ ~ ~ «~}` ~ J~ CI•TIGROUP INC (FDIC) GCOBAC;NOTE 17313UAA9 590,000.00 .AAA Aaa 03/24/09 03/25/09 603;92840 2.01 1,036.60 599702:64 607 x),41' .DTD 12/09/2008 2.85% 12/09/201-1„ REGIGiv~ 6AWr: ~rvi~}uwoALNOTE, '~^'E ~ - `~0 _ AAA Aaa 12/~SiUo llilliUo - ~.~Ci _,_, 1 i 1.5' S'Z.O°_, 622 ~ _, DTD1ZJ11/2008 3.250'/0 12/09/2011 ~ _ _ Security Type Sub-Total 1.190.000.00 1,202,870.40 2.65 2,228.27 1,199,334.67 1,23Q312:21 -F, iii-; '~- ~.i : tr',r~r" ~ ~'`'-~I,_~. -L9 ~_~ ~'' - ~ , ±4 ,i ,t h ~.. +; '~,C v .,t{y~y(_:ytitf~?~~;~~{~~~'*- ~~^~'•. ~ a*~ [ ~ - ~ _. , ~-''. 'r k~ - ~ - - '.t ',~i~*~-"'.yF :+~` ^i v ~ ~~~ ~..~-~{'f`.~i,~.• ~". - r .'~. 7;. "~1 r~~ a;.,.ti-"~'.,- _ _ t '•1 r,. t- ^ - .~.. t • - ~-• 1 ~ ? +1.~ #L ~ rV- ti z' "_" ~} - 1~?T-C.. q~~-. J 3[ X - +' . rl' . ; *, " -ter t +3. Y - -',..r '1 - t"_ti'i FNMA GLOBAL BENCHMARK NOTES. 31359MM26 500,000.00 AAA Aaa 04/03/08 04/08/08 532,003.50 2.90 5,409.72 .513;993.76 52.8,125.00 DTD 04/21/2006 5.125% 04/15/2011 FHLB NOTES 3133XTXH ~ 1,000,00( .~ AAA Aaa 08/20/09 08/21/09 1,006,620.00 1.28 6,95L39 1,005,397,:'-~ 1,009,687.50 DTD;06/]2/2009 11625%:07/27/20' ', ~:~~"-- Account 531-00 Page 5 n~ O --~, h-' Do ,: "` .For. the Month Ending Decemt-er 31,.2U09 _ _ M~In~get!-Accourot Detai9-of-Secur-6ties-H~Id-- - CITY OF PEI,a.LU~~i;°~ - TfZtASUREfZ'S 1"'VcSTi~~fvTS - 531-DO - (1?511505) Security TypeJ•Description S&P Moody's Trade .Settle Original: YTM Accrued Amortized Market Dated DateJGouponJ,Matur;ity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value FNMA NOTES CALLABLE) 3136FJCc2 1;22S;GUU:uU AAA Aaa Ll/09/u9 11/10/09 1;214,87`/.60 1.26 4,'21u:94 1r2G4~888.17 ir219i2S1.81 DTD'09/22/2009 1.250% 09/22/2011 FNMA-GLOBAL BENCHf~IARKNOTES 31359ML50 1,375,000.00 AAA ~ Aaa 12/09/08 12!12/08 1,-178,525.13 2,68 9,-143.58 1,442,187:-1! 1,482,421:88' DTD'11(23/2001 5.375"/0 l l/15/ZO' 1 FNh1A NOTES 31398AZN5 275;000.00 .AAA- Aaa 10/08/09 10/09/09 274,334:50 1.12 290.28 274,404.62 274,398.44 DTD 1'0/09/20D9 1.000%.11/23/2011 - FHLB fJOTES'' 3133XVR52 500,000.00 AAA = 18/0 11/23/04 500,115:OC 7.99 41.67 500,108;44 497,968.75' DTD' 11/ 16%2D09 1;000"/0 12/28/20ll FHLB NOTES (CALLABLE) 3133XUFA6 560',000.00 AAA Aaa 07/23/09 07/27/09 560,000:00 1.80 4,312.00 560:000.00 560,525.00 DTD 07/27/2009 1.800% 01/27/2012 FFC6 BONDS -31331GNQ8 820',000:00 AAA- -Aaa -02/19,09 02/24!09 B].9,983.60 `2.25' ;,433.75 819,983:60 833,837.50 DTD 02/24/2009 2 250°/ 04/24/2012 FHLB NOTES (CALLABLE) 3133XVJA0 750,000.00 AAA Aaa 12/23/09 12/29/09 750,000.00 1.62 2,166.67 750.000.!: = 746,489.38 DTD 10/27/2009 1.625% 04/27/2012. FHLMCGLOBALNOTES ?l~~i-~ C~ 705,000.00. AAA C== ~ nai2q/no '~o/~ninq 711$,]1F.10 1.5E. ~aR.33 707,838:'r? 7!?g,GB-}.3&'' DTD'05(21/2009 1'750% 06/15%2012 .FHLB NOTES ~ - >:!~ 1 ~~5,000.00 AAA Aaa 07/22/09 07/23/09 1,223,309.50 l.r•_ ~°.68 1,223,550.47 1,226,148.44 DTD 07/23/2009 1.75 __ _'!'1._ FHLB GLOBAL BONC_ ~~ ~3~r'1G5 = i .r~r~ ,,, _~ a_,a G9/22/09 :09/23/09 70;,1 ~~.~''0 1 ~~_', ~ TS 699,423.16 EGG ~ '-.00 DTD 10%05/20074.6_', ~'.;1~ Security Type Sub-Total 9,555,000.00 9,782,029.83 1.82 52,951.07 9,721,775.33 9,757,314.08 ~~, S 1-K _ WELLS FARGO & COMPANY GLOBAL 5R 949746771 1,000,000.00 AA- Ai 09/Y4/07 09/19/07 980;980.00' 5.08 19,366.67 999;667.83 3,000;8.71.00 NOTES DTD 12/06/2004 4.200% 01/15/2010 CITIGROUP INC GLOBAL SR NOTES 1T967CU. 800,000.00 A A; 05/03/07 'QS/08i07 780,784.00 5,06 1 . ~_ _!7 '298,969.98 802,90y.60; DTD02/2ZjZ0054.125%OZ/22/207.6 ~ ,~ ~ Account 531-00 Page 5 ~- 1~~~~Z ,~~~;~~ t ~~~~~~~~~~~;~~~~~t 13:1..(.: w~ .. 0 00 ' ` __.Eor_the Month .Ending .December 31,_2009 -- Managed-Account Detai6-of-Seculrities Held - . CITY ~~F ~''~TALUP~ia - TREASURER.'S Ii~~lESTME"~1T5 - 531-00 - (1~5115U5) Security Type/Description S8P Moody's Trade Settle Original YTM Accrued Amortized Market bated Date/coupon/Maturity CUSIP Par Rating Rating Date Date Cost at,Cost Interest Cost Value ~- s.~_ ~-~"-G"`^`~ ~~ ;.z-_~._ .,~_~-t~. ~r~c~~ ~.~t*~-.=~ '~~w~s:~-.r.- '.~~r~ :_.. -~ - ,1~ ,,_ -,:,~~~ _ .. r .~;-:;._ - ,-:w~..~z-~r~~ MBNA.GORP (BAC) SR MTN 55Z63EC~7 ..1,000,000.00 A A2 05/09/07 05/15/07 997,780.00 5.08 7,916.67 '999,730.68 1,013',670.00 DTD 05/09/2005 5:000% 05/04/2010 BANK OF AMERICA CORP GLOBAL'SR NOTES 060505BU% 1,000,000:00 ;, AZ 08/24/0 ' 08/29/07 977;E_~_.u~7 ` ','. 18,750.00 ' -5;313.60 1,020,918.00:. DTD 07/26/200 ~' ~; , 08/01/201 " GENERAL ELEC CAP COkP GLOBAL NOTES 36962G4E1 1,250;000.00 AA+ Aa2 08/12/09 08/17/09 1,249;187.50 3.52 16;770.83 :1;249,286.98 1,275,792.50 DTD 08/13/2009 3.500% 08/13/2012 Security Type Sub-Total .5,050,000.00 4,986;561'.50 4.74 74;629.17 5;042,969.07. 5,114,161.10 Managed•Account'Sub-Total 24;425,000.00 24,593,692.20 '2.31 149,215:34 24,560,342.56 24,744,239.26 CAMP'Pool ;1,011,800.12 AAAin NR 31,011,8D0.12 00 1,011,800. L' 31,011;800.12: Money Market Sub-Total 31,011,800.12 31,011,800.12 0.00 31,011,80Q12 31,011,8.00.12 Securities Sub-Total $55,436,800:12 $55;605,492.32 2.31% $149,215:34 , $55;756;039:38 .$55,572 142.68 Accrued Interest $149,215.:34 Total Investments . $55,905,254.72 _ ,, ~ `t v - A O ^~~ N ~ .. Account 531-00 Page 7 City off Petaluma Performance Summaries Hnnualize:l ~etrrrns as of Deeernr;er 3'1, 2G~9 City of Petaluma s'~~tt_ ~'-3 'l~;;~~ UST Index -~ - ' P7s ~ i!:~orth~ ~ . ~ . i , ~ as[ Y~~a~ ' ~~'~:• Fait ~_ ~~fe.ar -_';,, '; ,, '~ ~~ ~ -.,i 1~2~. Y~tEfrS ~~ .: ~:,o F~'~~'. ,_ Yc~ _ _4S ,_, =l i~3 _ i~~ce I~ ,_cr,~ti~r~ ~,~~~ ~ ~~,,_ ~~1~3~t}N(` l~Ur2t:4f1 ~l. ~ ~.c5~ r. ~ ~I 1 _E~C~ 31. ~~~ar~CP. ~_.r ~ ~ ~ e, ~.~$,o °Notes: ' l .,Merrill Lynch Indices provided by'Bloomberg Financial:Markets. • "2. CAMP Cash Reserve Pool holdings excluded from performance, yield and duration calculations. ' ;3. Performance. numbers are presented'on.an annualized basis. ~• 4 4. Inception date is l2/31/Ol. . i ~ ~~ Page 15 of 18 Untitled' Page . . _ _,, 4. -, - .;a, -,. ~, • .~ ;- t• <, Yj: •f' `,,, J~~1~1 ~~~~AN~ California State Controller LOCAL AGENCY INVEST1VIEhTT FUND REMITTANCE ADVICE Page 1 of 1~ Agency Name PETALUMA Account Number 98-49-650 - As of 01/15/2010, your Loca_ 1 Agency Investment Fund account has. been directly credited with the interest earned on your deposits for the quarter ending 12/3'1/2009. Earnings Ratio .00001657120783286 Interest Rate 0..60% Dollar Day Total $ 2,043,320,826.94 Quarter End Principal Balance ~ $ 22,217,637.52 Quarterly Interest Earned $ 33.,860.29 i http://laif.sco.ca. govLResult.aspY ~~ Page 16 of 18 4/21/2010 Agency Name PETALUMA CONIIVINTY DEVELOP COMMN Account Number 65-49-001 i As of Ol /15/2010, your. Local Agency Investment Fund account has been directly .credited with -the interest earned on your deposits for the quarter ending 12/31 /2009. Earnings Ratio .000016571.20783286 Interest Rate ~ 0.60% Dollar. Day Total $ 988.72 Quarter End .Principal. Balance $ 10.75 Quarterly Interest Earned. $ .02 T Page 17 of 18 http://lai£sco.ca.gov/Restlf.aspY 5/3/2010 (Revised) ~OO~t'~ ®~~:~/ ~B'~,V~S~91'8~93$ ACCCD~9B1~ Market Valua~io~ ~ ~13`'i'/20~'9 DescroPtion Carrying Cost Plus Accrued Interest Purc>h: ArTror"tined Cast Fair ~fafue Accnied lc~t~rest .. United States Treasu - Bills ~ $ 18;180,532,754:95 $ 18,202',021;798;70 $ 18;210;321.;950,00 NA Notes $ 6;963,540;150.24 $ 6;962,594;433:06 ~ $ 6,967,024,000:00 $' 8;938,953:83 Federal A enc SBA $ 555,758;748:19 $ 555,749,,180:58 ' $ 546;479,189:67 $ 594,632.84 MBS-REMICs $ 891;287;839:18 $ 891,287;839:18 $ 933;016,165:51' $ 4,235,617.00 Debentures $ 1,610,214,125.73 _$ 1,610,214;125:73 $ 1,622,739;980:00 $C 5;509,071.88 Debentures FR $ 1,939,9.48;015;82 $ 1,939,948,095:82 $ 1;940;239;500.00 $ 281.,822.80 Discorinf Notes $ 8;312,516,085:84 $ 8;319;293;088.71 $ 8,324,225;500.00 NA FHLMC PG $ - $ - $ - $ - GNMA~ $ 105,784.31 $ 105,784:31 $ 117;914.35 $ 1,042.17 IBRD Deb FR $ 300;000;000.00 $ 300,000,000.00 $ 300,456,000.00 $ 283,181.08 CDs and YCDs FR $ - $ - $ - $ - Bank'Notes $ - $ - $ - $ - CDs and YCDs ' $ 6,465,063;285:92 $ 6;465;053;952459 $ 6,465,264,691;25 $ 1,833;418;04 Commercial Fa er $ 5;046;651,763:39 $ 5;048,166,933:93 $ 5,048,376,783:63 NA Cor orate: Bonds~FR $ 188,887,715:04_ $' 188;887,715:04 :$ 188,680,551:28 $ 69,149:73 Bonds $ $ - $ - $ - Re urchase A reements $ - $ - $ - NA Reverse~Re urchase $ - $' - $ - $ - Time De osits $ 4,375,8Q0,000:00 $ 4,375;8001000:00• $ 4,375,800,000:00 NA NOWAccount $ - $ - $ - NA I AB^55 & GF Loans $ 12,346,812,173.81 $ 12,346,812,173:81 $ 12,346,812,173.81 NA TOTAL _ $ 67;1.77,11.8;442.42 $ 67;205,855;041;47 ~$ 67;269,554,399;50, $ 21,746;889.37 Fair Value Includirig Accrued .Interest $ 67,291,301,288.87 Repurchase Agreements; Time Deposits, AB 55 & General Fund loans; and Reverse Repurchase agreements are carried at portfolio booK value (carrying cost).. The. value of-each participating.dollar equals the fairvalue divided.by°the amortized.cosf (1.000947825). As 'an example: if an, ;agency has an account balance. of $20,OOO;OOO.QO, then the agency would report its participation in the LAIF valued at $20,018,956.49 or $20,000,000.00 x'1.000947825. as Page 18 of 18 CITY OF PETALUMA; CALIFORNIA ' ATTACHMENT 4 MEMORANDUM .Finance Department, II English Street, Petaluma, CA 94952 707-778-4352 Fax 707-778-4428 E-mail: , r~7~rnce~.),ci:petalurrt~r. ca us DATE: June 27, 2000. TO: ~ Frederick Stouder, City Manager FROM: Paula M: Cornyn, Interim Finance Director T: Interfund Loan Policy The revised policy for Interfund Loans is based'. upon the discussion at the June 2'6;2000 Council meeting. Short-'d'erma Interfund.Loans A shortterm is a period up"to ix months. These cash shortages would be;covered at the erd of each quarter(by borrov~iing from a similar:type of fund and the borrowing fund will pay~iriterestonthe amount borrowed, The interest would' lie ;paid :quarterly at. the rate that is earned .on fihe"City Treasurer's . ~ . .. 'Investment Portfolio: An example would be a cash,shortage in the~Cgmmunity Development Block C'rrayit (CDBG) Fund, which is .funded liy a reimbursement grant: The 'CDBG Fund' could :borrow temporarily from the HOIVIEBEGIN Urant Programs Fund and;repay as soon as.the CDBG grant money `has been received. The Finance Director•would be authorized to initiate' and repay these:loans up to-a ,;-'cap°of $200;000. I;ong=Tei-an ,Interfund Loans •A long'term,is a period of one year or more. These cash shortages would be covered at the end of.the :.,. . , ~~quarter`by borrowing from a similar type of fiand and repayment would include interest: A Promissory ~Note'.(Note) would be executed by the'City Treasurer and authorized by the City Manager. The Note ~.. would designate the lending. fund„ the interest:rate, the total amount to be borrowed, repayment terms. and any,other conditions that would. be .appropriate. Examples would be the cash shortages in the. Airport OperationsFund~:and~ the Marina Fund that 'have already existed for over one year: General Parameters, • - The process that is used'to .identifya lender fund will include an analysis of the cash needs of that. fund, - The,Adopted Budget and the five years Capital Improvement Plan will be used to identify future cash needs before an interfund.loan is inifiated. There willbe fixed terms for. repayment of long-term.;interfimd •, oars. The .Promissory Note: will disclose the. maximum time period for, repayment. It is the intent that interfundlo~ans will be repaid within five years to a maximum offifteen years. The shortest time period • possible will. be chosen. Interest will not be charges if any-law restricts the Borrowing fund frompaying it~ :~ ~. .. The City Council wii review all interfund loans in amounts that exceed $200,000. A status report on all iriterfund;loans will be included with the Quarterly Treasurer's Report. ,, >e4+ y ~ + There will no '1 ~" t be any loans from the Low and 1Vloderate Income Housing Fund: (,~ t1 J r O(