HomeMy WebLinkAboutResolution 99-063 N.C.S. 03/15/1999 resolution No. 99-63 N.C.S.
of the City of Petaluma, California
1 A RESOLUTION OF THE CITY COUNCII. OF THE
2 CITY OF PETALUMA APPROVING THE
3 INVESTMENT POLICY FOR 1999
4
5 WHEREAS, the City Treasurer has annually rendered to the City Council a
6 Statement of Investment Policy, and;
7
8 WHEREAS, the City Treasurer has the responsibility to invest the pooled idle
9 cash of all of the City funds, and;
10
11 WHEREAS, the City Treasurer has developed a Statement of Investment Policy
12 and submitted said Policy to the City Council for review.
13
14 NOW, THEREFORE BE IT RESOLVEI9 that the City Council approves the
15 1999,Investment Policy as shown in Exhibit A attached.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the as•
Council of the City of Petaluma at a (Regular) ($~t1~1djC~($~E~s`2d)C meeting f
on the ..15.th day of ...........1~laECh.........-........................., 1x..9.9., by the
following vote:
Ci to e
AYES: Torliatt, Cader-Thompson, Hamilton, Maguire, Vice Mayor Keller, Mayor Thompson
NOES: Healy
ABSENT: None
ATTEST :
ity Clerk Mayor ~ ~~771omp~on
Council Filee..p
........q.........................
('..A IU~HS Rcs. No.....J..J-6..J........_. N.C.S.
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CiTY OF PETALUlVTA
1999 STATEMENT OF INVESTIv1ENT POLICY
DAVID W. SPII;MAN
FINANCE DIRECTOR/CITY TREASTJRER
City of Petaluma, California 1999 Statement'of Investment Policy
1 .
2 EX~IIBIT A to Resolution approving:Investment Policy
3
4 City of Petaluma, California
5 1999 Statement of Investment Policy
6
7 PURPOSE
8
9 This Statement is intended ;to provide guidelines for the• prudent investment of the temporary idle
10 cash under the City Treasurer's ,control. The primary goals .are to protect°the security of public
11 .funds, provide funds when needed for use and earn a reasonable rate of investment interest.
12 •
13 SCOPE
14
15 Linder the City Charter Section 24~ the City Treasurer s:appointed by the City Manager-with the
16 approval. of the City Council.. The City Treasurer is also the City Finance Director.
17
18 The daily cash management, investment-transactions and account reconciliation's are the primary.
19 . .responsibilities of the City Treasurer.
20.
21 This Investment. Policy shall.. apply to activities of the City with regard to the investment of
22 temporarily idle funds of all fund types, including the following:
23
24 General Fund
2s Special Revenue Funds
26 Debt'Service Funds
27 Capital Projects Funds
28 Enterprise Funds
29 Internal :Service Funds
30 Trust !and. Agency Funds. ~ •
31
32 This Policy shall also apply to funds of'the Petaluma Community Development Commission
33 (PCDC)~ Petaluma.PublcFinancing Authority, Petaluma Public Facility Financing Corporation
34 and any other. agency or trust funds under the control of the City'Treasurer.
35
36 In order to provide~:flexibility and efficiency in cash and investment management, the Ctyuses a
37 .general operating account and investment pool system. When the revenues are received from.
38 taxes; .fees acid other sources, it his recorded m the City's finance system to the appropriate fund
39 and. account. The checks and cash -from all funds are then deposited into an operating account..
4o The single operating account allows. for.more efficient management of daily transactions and
4.1 investments from the account. The investment earnings .from all •investments are allocated on a
42 quarterly`proportionallybsck to each fund that had cash invested during that quarter.
43
44 There are several restricted' fund sources: that are not 'included in the City's investment pool and
45 are invested separately. These invested funds -will receive the interest earnings on a periodic basis
46 from the -direct. investment source or separate investment. pool. Examples of these funds are debt
47 reserves, Tax and Revenue Anticipation Notes (TRANS) and certain special revenue and trust
48 funds, such as; Child Care fund and Prince Trust.
i
1
City of Petaluma, California 1999 Statement of Investment Policy
1
2 OBJECTIVE
3
4 The City's cash management system is designed to `monitor and forecast expenditures and
5 revenues; thus enabling the City to invest. funds to the fullest: extent possible. The City attempts
6 to obtain the highest .interest yield as long as investments meet the criteria established for safety
7 .and liquidity.
'g
9 The City strives to maintain, the level of investment of all. funds of 98% of available cash,. through
1o daily and projected: cash flow;deterrninations: The City also strives to maintain an average
11 investment earnings rate above the 90 day Treasury Bill rates.
12
13 The basic premise underlying the City's investment philosophy is to insure that City funds. are
14 always safe and available when needed.
15 '
16 POLICY
17
18 The City of Petaluma. operates its-temporary pooled idle cash investments under State
19 Governrnerit Code Section 53600, et seq., as amended.. The following sections of the. State
20 Government code require the following:
21
22 Section 53600.3 -Governing bodies of local agencies or persons authorized to make '
23 investment decisions on behalf ofthose local agencies investingpublic funds pursuant to
24 this chapter are trustees and therefore fiduciaries subject to the prudent investor standard.:
25 . When investing, reinvesting; purchasing, acquiring,. exchanging, selling, and managing
26 .public fund's,. a trustee `shall.act with care, skill, prudence,.and diligence under the
27 circumstances thenprevailing,.chat a prudent person acting in a like capacity and
28 familiarity with those matters would use in the conduct of funds of a like character .and
29 with like aims, to safeguard'the principal and maintain the liquidity needs of the agency.
30 Within the limitations of this section and considering~individual investments as part to an
31 .overall strategy, a trustee is, authorized to acquire investments as authorized by law.
32
33 Section .53600.5 -When investing; reinvesting, purchasing, acquiring, exchanging, selling
34 and managing public.funds,.the primary objective of a trustee shall be to safeguard .the
35 ;principal of the fiznds under its control. The secondary objective shall be to meet the
36 liquidity needs of the .depositor. The third objective shall be to achieve a return on the
37 funds under its control.
38
39 .PERMITTED INVESTMENTS
40
41; 'The City may invest in the following investments sources that are allowed by State Government
' 42' Code Section 53635':
43- '
44 - Local, AgencyInvestment Pools (.State LAIF or Sonoma County Investment Pool)
45 -Certificates of Deposits placed with commercial
46 banks and%or ..savings and loan companies
47 -Negotiable Certificates of Deposit
4s -Bankers Acceptances
49 -Securities of the U.S. Government or'°its Agencies
so -Repurchase Agreements (for overnight investment)
51 - Corrimercial Paper
52 -Money Market
53
54 'The _State Government Code also allows for additional types of investment securities that are not
55 commonly used by the City. Attached is a description of the above listed securities, Attachment
56 A, and a copy of the State Government Code, Attachment B.
2
City of Petaluma 1999 Statement of Investment Policy
G
1
2 This policy also provides that other investment- securities authorized by State Government Code
3 Section 53635, as amended, are also eligible for investment of City Funds.
4 '
5 Below is: a summary ofthe current statutory limits imposed by the State Government. Code on
6 authorized investments of public funds:
7
s
9 Investment Type :Maximum . Maximum % Quality
10 Maturity (2) of Portfolio Requirements
11
12
13 Local AgencyBonds 5 Years None None
14 US Treasury Obligations 5 Years None None
15 State of Galifornia;.Oblgations 5 Years None None
16 CA.Local Agency Obligations 5 Years None None '
17 US Agencies 5 Yeazs None None
18 Barilc.Aeceptances 270 Days 40% (3) Fed. Reserve,Elgible
19 ,Commercial<Eaper 180 Days 15% or 30%(a) Al/P1 Rating
20 Negotiable Certificates ofDeposit 5 Years 39% None
21 Repurchase Agreements 1 Year None None
22 Reverse Repurchase Agreements 92 Days 20% of Base None (6)
23 Medium=Te>=ni; Notes 5 Years 30% ' A Rating
24 Mutual'`Funds N/A 20%° (a) Multiple (7)
25 Money Market;Funds (i) N/A 20% Multiple (s)
26 ~ Collateralized BankDeposits 5 Years None None
27 Mortgage Pass-Thru Securities 5 Years 20% AA Rating
28 Time Deposits 5 Years None • None
29 County;Pooled>Investment Funds N/A None None
30
31
32 Source: California Government Code;Sections 53601 & 53635 (a-n)
33'.
34 (1) Tlis document r@fe~s to Moriey Market Mutual Funds as Money Market Funds. They must have an average weighted rnaturity of 90 days
35 or legs and aliide'tiy SEC regulations.,
36 (2) Section 33601 states any investment that at the time of purchase has over 5 years totnaturity must be authorized by the legislative bodynot
37 less than 3 months prior to the investment.
38 (3) No'moreahaq 30% ofthe surplus-funds may be inrBankers Acceptances of any one commercial bank. ,
3 9 (4) Lunit is30% if doll'az weighted average maturity of all commercial paper does not exceed 3 L days. Commercial paper issuer; must be US
4Q Corporations with $SOO:million-plus in assets. Purchases may not represent-.more than 10%ofthe outstanding paper of an issuing
41 corporation. ~ ~
42 (5) 'Nomore than 10% of an agency's surplus funds maybe invested in any one mutual fund.
43 (6) 'Reverse' Repurohase Agreements must be made with primary dealers ofthe Federal Reserve Bank of New York and the securities used for
44• ~ ~tfie aggeement mustihavebeen'held by the issuer-for at least 30 days.
45 (7) Mutual'funds musttecerve the highesDrankrrtg by 2 ofthe 3.largest nationally recognized rating agencies',or retain an investment advisor
46 who. is:registered, or exemptfrom registration, with the~SEC and has at least 5 years' experience investing in securities and obligations
47 authorised in Section 53601 and 53635 (a-j, m or_n) ofthe GovemmenYCode with assets imexcess of$500 million.
48 (s) Money market~fundsmusf receive the`highestranking by 2 of the 3 lazgest nationally-recognised rating agencies;or retain an investment
49 advisor, who is registered, or: exempt-from registration, with the SEC and has at least 5 years' experience managing money marketfunds in
50 excess of $SOO million.
51
52
53 PRIMARY OBJECTIVES FOR SELECTING INVESTMENTS IN ORDER OF PRIORITY
54
- 55 1. Safety: It is the primary duty and responsibility
56 ofthe Treasurer to protect, preserve and maintain
57 cash and investments on behalf ofthe citizens of
ss the City:
59
3
City of Petaluma, California 1999 Statement of Investment Policy
1
2 2: Liquidity: An adequate percentage ofthe portfolio
3 is maintained in liquid short-term .securities.
4 which .can be converted. to cash if.necessary to :.meet
s disbursement requirements. Since all cash
6 requirements cannot be anticipated,.inVestmerits'in
7
8 securities with active secondary or resale markets
9 is preferred and emphasis;on marketable securities with
10 low sensitivity to market interest:rate risk.
11
12 3. Yield:. Yield is a consideration gnly after the basic
13 requirements of.safety and liquidity have been met.
14
15 SAFEKEEPING OF INVESTMENTS.
16
17 All investment securities purchased-:directly by the City shall be held in..safekeepng by an
1s institution designated as .safekeeping agent or at the City in registered book or physical forma The
19 primary agent shall. issue a safekeeping receipt to the City listing she specific instrument, rate,
' 20 maturity and other pertinent information.
21
22 ETHICS AND CONFLICT OF INTEREST
23
24 OfFicers and employees involved in the. investment process shall refrain from personal business
25 activities that could conflict -with proper execution of the investment program or which could
26 impair their ,ability to make impartial decisions. Officers and employees involved. in the investment.
27 process shall abide by the Coriflrct of Interest. Code, (California Government Code Section 1090
28 et seq.). and the California Political Reform Act (California Government Code Section 81000 et
29 seq.).
30
31 COLLATERALIZATION
32
33 Deposit-type securities (i.e. Certificates: ofDeposit) shall be collateralized at the minimum State of
- 34 California collateral pool requirements for any amount exceeding FDIC or FSLIC coverage:.
35
36 BROKERS '
37 '
38 In selecting securities brokers, the City Treasurer shall conduct, credit and capitalization analysis
39 to determine that firms are adequately financed to conduct public business.
40
4'1. LOCAL. INVESTMENT POOL POLICIES AND REPORTS.
42'
43 To the extent there are investments in the State or Sonoma County investment pools, the City
44 Treasurer shall review and maintain' current copies of the adopted investment. policies of-the State
45 and Sonoma County. The policies shall be reviewed for concurrence with the investment policy
46 of the City. ~ .
47
4s Thee City Treasurer shall submit the State required quarterly reports of the; investment transactions
49 of the investment pool to fhe City Council as part of the monthly City Treasurer reports.
50
4
City of Petaluma, California 1999 Statement of Investment Policy
1
2 INVESTMENT OF DEBTPRO.CEEDS
3
g The City deposits selected debt proceeds, reserves and other debt related funds with the California
5 Arbitrage:. Management Program (CAMP). Thi's is ari investment program authorized `by City
. 5 Council Resolution 91-169. It was created by other cities,as a 7omt Powers Authgrity (JPA) for
7 the investment of local agency funds whi'ch.may be subject to Federal arbitrage regulations. 'The
8 investment portfolio is managed by a broker, on contract with the 7PA. The investment type
9 securities are regulated by the State Government Code; and further limited by the specific debt
1o issuance:resolutions and federal restrictions:
11 '
12 CITY INVESTMENT MONITORING AND REPORTING
13
14 The City Treasurer shall routinely monitor.the entire investment portfolio and shall.file:with the
~5 City Council a monthly Treasurer's Report. In addition, the City Treasurer will formally submit a
15 quarterly Treasurer's Report to the City Council whichshall include a Statement of Investments
17 and other information as required by the City Council .and State Law.
18
19 Attachment C is an example of the quarterlymonthly report for December, 1998. The. City
20 Treasurer believes this report exceeds the recommended minimum requirements of the amended
21 State Code and provides the City Council with additional information regarding bank accounts.
22 and reconciliation with the City's 'General Ledger.
23
5
J
City of Petaluma, California .1999 .Statement of Investment Policy
1
2 ATT`ACFIlVIENT A
3'
4 CITY OF PETALUIVIA
5 1999 Statement' of Irvestment Policy
6
7 SUNIMARY OF TYPES OF INVESTMENTS
8 AVAILABLE TO LOCAL- GOVERNMENTS
9
1o LOCAL AGENCY INVESTMENT POOLS
11
12 State Investment Pool (LATE)
13 .
14 The Local Agency Investment fund (LATE) was' created.by the State in 1976 to provide local
15 governments with access to a large'investmerit• pool that can, generate higher interest yields and
16 provide a high ,degree of Liquidity:: The deposits and withdrawals are done by electronic transfers
17 of:funds (wire transfers) and begin. earning interest, on a daily basis.
18
19 Over 2,541 local agencies participate'in the LAIF investment pool. These agencies invest
20 approximately $1'4.6 billion :which. is added to $ T9.7 billion in ;State funds fora $34.3 billion
21 investment.portfolio. The investment portfolio is widely distributed over many types of
22 investment instruments and is not adversely impacted by sudden- shifts in the investment market...
23 In :addition, •the large portfolio and wide distribution provides for greater flexibility investments to
24 take, advantage of changing :interest rates.
23
26 There is a limitation of $20 million per Agency subject to a maximum of 10 transactions per
27 month.
28' .
2s 'The security of LAIF investments is in wo parts. The State Treasurer's and Controller's offices
30 are responsible .for, the accounting, .processing, and. safe keeping of the City's funds through the
31 State Treasurer's investment procedure -and policies. The- State maintains insurance and bonds
32 covering .employee honesty and 'errors. The City funds are able to be withdrawn at any tune and
33 are protected by State law from seizure or impoundment by -any State Officer. _
34
35 Once the<funds are. pooled, with other local agencies, and invested, the security for the fund's
36' becomes .the :investment. Each'investment is secured, by Federal Insurance, the US~ Government
• 37 or Federal Agency, collateral ofmajor banks, or major corporation collateral. Thee security
3g depend's on the~type of investment.
6
City of Retaluma; California 1999 Statement of Investment .Policy
~1
2 'Sonoma.County Investment Pool
3
4. The Sonoma. County Treasurer maintains an;investment pool which the County; Schools; Special
5 Districts and Cities can participate. The°investment portfolio is approximately $851;08`1;000,
6 This investment -pool operates in the same manner as the State .pool. The County Treasurer is
7. subject.to the same State Government Code regarding .investments as-the City. As with the State
s investment fund;. the-City funds can be withdrawn at `any time and' are protected by State Law
9 from. seizure or impoundment by any County Officer. `
10
11 Certificates of Deposits CD2
12
13 :Certificates of Deposits, sometimes known as "Jumbo Accounts" or "Fixed CD's"~ are savings
14 accounts. with Banks or Savings and;Loans. These accounts are for a specific amount, a set
.
15 interest rate, and set maturity date. There is a substantial interest penalty if the CD is withdrawn
16 prior to the maturity date.
17
1s The State:.law_requires Public Fund CD's~to be collateralized by, the financial institution at 1.10%
19 with US Government notes/bonds or°at:1'50% with quality First Trust Deeds. This collateral can
20 be waived if Federal Insurance (FDIC for banks or FSLIC for savings and loans) is available.
21 These federal agencies will insure each account up to $100,000. .
22 ,
23 The City generally-waives the collateralization requirements for the FDIC or FSLIC insurance:
24 The waiver of collateral. is.a wide spread practice and will generally generate higher interest. rates
25 and provide the greatest.. security for the funds from the-Federal Insurance Agencies: For deposits
26 in excess of $1.00,000, -the collateralization requirements are not waived.
27
2s Negotiable Certificate of Deposit CD1
29
3o This investment: is similar to the Fixed CD's above. However, the NCD sari be sold through a;
31 .broker on a, "secondary market" prior to the maturity date. Normally, NCD's are issued in
32 $500,000 and $1,000,000 amounts: The State Code limits NCD's, to not more than 30% of the-
33 local agency's portfolio and. 5 year' maximum term. The security is the credit worthiness of the
34 issuer; as these deposits are uninsured and uncollateralized promissory notes.
35
36 Banker's Acceptances BAl
37
38 A Banker's Acceptance is a time draft of invested funds which has been drawn on and accepted
39 for repayment by a bank. This financial instrument. is generally used for short term (30 and 1.8Q
4o days) financing of export, import, or storage of goods. By aecepfing~the draft-(investment of City
4:1 .funds),. the bank is liable for.the payment at maturity. This bank liability makes~the Banker's.
42 Acceptance amarketable investment. The. State Code limits BA's to not more than'270 days
43 maturity and 40% of he local.agency's portfolio. In addition, not.more than 30% of the local
44 agency's portfolio may be placed in any one bank.
45
46 US Treasury Bills: .
47
4s Commonly referred to as T=Bills, these are short-term marketable securities sold as obligations of
49 the US Government. They are offered in three month, six month, nine month and one-year
so maturities. T-Bills do not accrue. interest but are sold at a discount to pay face value at maturity.
7
'City of Petaluma, California 1999 Statement of Investment Policy
1
• 2 US Treasury Notes
3
4 These are:marketable, interest-bearing securities sold as~ obligations of the US Government with
5 original maturities of one to ten years. Interest is paid senu-annually.
6
~ US Treasury Bonds
8~
9 These are the same as IJS Treasury Notes except they have original maturities often years or
l0 longer.
11
12 Federal. A~ency Issues
13
14 Many Federal Government sponsored Agencies are authorized to issue short term and long, term
15 obligations that: are used to finance various programs such. as `home loans, business loans, .farm
16 loans, etc. These.Agencies were created by the Federal Government~in the 1930's and have since
1~ become. independent quasi-public agencies. The security for their issues.is the:-guarantee of the
1 g Agency to pay. The Federal, Government has only an implied liability to the extent that. the
19 Agency has an open credit line to borrow from the U: S. Treasury. "It is widely accepted that
20 Federal Agency issues are as secure as U. S. Government.. notes.
21
22 There is an active secondary market available to .sell; .these issues prior to maturity. The issues are
23 .fairly liquid depending on the. prevailing market interest rates'. at the time of sale.
' 24
25 Some of the more common agency notes, are issued. by the Federal National Mortgage Association
26 (Fannie Mae), Federal Home.Loan Banks, Federal Home Loan Mortgage Corporation (Freddie
27 Mac), and the Federal. Farm Credit Banks.
2s
29 Repurchase Agreements and Reverse Repurchase.. Agreements "(Repos)
.30
31 A Repurchase Agreement is a short ,term investment agreement to loan City funds for a fixed
32 period: in return for a fixed interest rate and secured collateral, such as U. S. Treasuries or Agency
33 Notes. This.type of investment is usually done for overnight or very short term {7 days)
34 investment of funds. left in the general. operating. account. Reverse.Repurchase agreements is a
35 short term investment which is-used to take advantage of market interest rate changes and
36 increase the size of the portfolio. State law has been amended in 1996 to limit the use of both
37 repurchase and reverse repurchase agreements. The City Council must approve .each reverse
3s repurchase agreement.
39 •
4o Commercial Paper (CP)
41 '
42 .Commercial Paper are unsecured. promissory notes. of industrial corporations, utilities: and -bank
43 holding companies.: The notes are in bearer form starting at $100,:000. State .law limits. the City
44 to invest_rnents'in United States corporations havingassets in excess of five hundred million
45 .dollars with a "A" or'higher rating. Cities may not invest more than 30% of the portfolio and not
46 exceed a term of 180 days.
8
City of:Petaluma, California 1999 Statement of Investment Policy
1
2 .ATTAC)=~vIENT B
3
4 GOVERNMENT COIDE. SECTION 53635
5 ~ AS AMENDED
6
7 53635. As far as possible, all money belonging to, or in the ,
8 custody of, a local agency; including money paid to the treasurer or
9 other of~'icial to pay the principal, interest, or penalties of bonds,
10 ~ shall be deposited for safekeeping in state or national banks,
11 savings associations or federal associations; credit unions, or
12 federally .insured industrial loan companies in'this state selected by
13 the treasurer or other official~having. the legal custody of the
14 money; or, unless otherwise, directed by the legislative body pursuant
15 to 'Section 53601, maybe invested in the investments set forth
16 below. A local agency purchasing or obtaining any securities
17 described in this section, in a:negotiable, bearer,; registered„ or
18 nonregistered format, shall require delivery of all the securities to
19 the local agency,, including those purchased;for the-agency by
20 financial advisors; consultants, or managers' using`the agency's
21 funds, by book entry, physical delivery; or by third-parry custodial
22 agreement. The transfer of securities to the eounterparty bank's
23 customer .book entry account may be.used-for .book-entry delivery. For
24 purposes ofahis section, "counterparty" ~means~the other party to
25 the transaction. -A.counterparty bank's trust department or separate ~
26 'safekeeping department-maybe used for the physical,delivery of the
27 security ifthe ~seeurity~is held in the name of the local agency.
2s
29 ~ (a) Bonds issued. by the local agency, including bonds payable
3o solely out of the revenues from arevenue-producing property owned, .
31 controlled, or operated by the local agency or `by a department, ,
32 board,. agency, or authority of the local agency.
33
. 34 (b) United. States. Treasury notes, bonds;, bills, or certificates of
35 indebtedness; °or those,for which the faith and credit of the United
36^ States are pledged. for,the payment. of principal and interest. ~ ,
3'7 .
38 (c) Registered estate warrants or treasury notes. or bonds of this
39 state; including bonds. payable solely out of the:revenues from. a
40 revenue-producing. property owned, controlled; or. operated by the
41 state or by a department, board, agency, or authority of the state.
42
43 (d) Bonds; notes, warrants, or other evidences of indebtedness of
44 any local agency within this state, including bonds payable solely
45 out of the revenues' from arevenue-producing property owned,
46 ~ controlled, or operated by the local agency, or by a department,
47 board, agency, or authority of the local agency.
48
49
9
City of Petaluma, California 1999 Statement of Investment Policy
1
z (e) Obligations issued: by banks: for cooperatives; federal land
3 banks, ,federal intermediate credit banks; federal home loan banks,..
4 the Federal Home Loan:Bank, the Tennessee'Valley Authority, or in
5 obligations, participation's, or other instruments of; or issued by,
6 or fully guaranteed as to principal and interest by, the Federal '
7 National Mortgage Association; or in guaranteed. portions of Small .
8 Business Administration notes; or in obligations, .participation's, or
9 other instruments of, or issued by, a federal agency or a United
to States government-sponsored enterprise:
11
12 (f) Bills of exchange or time~drafts drawn on and accepted by a'
13 commercial..bank, otherwise known as bankers acceptances.. Purchases
14 of bankers acceptances may not .exceed 270 days maturity or 40 percent
15 ofthe'agency's surplus funds which maybe invested pursuant to this
16 `section. 'H'owever,' no more:than 30 percent of.the agency's surplus
17 funds may be invested in_xhe bankers acceptances. ofany one
. 1s commercial bank pursuant to this section.
19
20 This .subdivision does not. preclude a municipal utility district
21 > from investing any surplus money in its treasury ;in any manner
22 ~ authorized bythe Municipal Utility District Act, :Division 6
23 (commencing with Section 11501.) of the Public Utilities Code.
24
25 (g) Commercial paper of "prime" quality of the highest ranking or
26 of the highest letter and numerical rating as ,provided for by Moody's
27 Investors Service,'.Inc:, or,Standard and Poor's Corporation.
2s Eligible paper is further limited to issuing corporations that are
29 organized and operating within the United States and having total
30 assets in excess of five hundred million'dollars ($50:0,000,000) and
31 having an "A" or higher rating for the issuer's debt, other than
32 commercial paper, if'any, as provided .for by 1Vloody's Investors
33 Service, Inc.; or Standard and Poor's Corporation. -Purchases of
34~ eligible commercial paper may not exceed -1.80 days maturity nor ~ .
35 represent more than 10'percent of the outstanding; paper of an issuing
36 corporation. Purchases of commercial paper may not exceed 15
37 percent of the.agency's surplus money which.may be invested pursuant
3s to:this=section. An additional 15 percent; or a total of 30 percent
39 of the agency's money or money in its.custody, may be invested
40 pursuant to this subdivision. The additional 15 percent may be so
41 invested only if the dollar-weighted average maturity of the entire
42 amount does not exceed 31 days: "Dollar-weighted average maturity"
' 43 ~ means the- sum of the amount. of each outstanding commercial paper
44 investment multiplied by the number of days to maturity, divided by
45 the total :amount. of outstanding commercial paper.
46
10
City of Petaluma, California 199.9 Statement of Investment. Policy
1
2 (h) Negotiable certificates of;depositssued by a,nationally or
3 estate-chartered bank or a savings association or federal-association
4 or ~a state `or federal creditunion. or by astate=licensed branch of a
5 foreign bank. Purchases of negotiable°certificates of deposit may
6 not exceed 30. percent of the agency's surplus money which maybe
7 invested pursuant to this section., For purposes of this section,
s negotiable certificates of deposit do not come within Article 2
9 (commencing with Section 53630) of'Chapter`4 of:Part 1 of Division 2
to of Title 5, except thatAthe amount so invested shall be subject to '
11 the .limitations of Sectiom 53638. For~purposes of~this section, -the
12 legislative body of a local agency and the treasurer or other
13 official of the local agency having legal custody of the money are
14 prohibited from. depositing. or investing local agency funds, or funds
is in the custody of the local agency, in negotiable certificates of
16 deposit issued by a state or federal credit union.if a member of the
17 legislative body ofthe local agency, or an employee of the
18 administrative officer, manager's office, :budget office,
19 auditor-..controller's office, or treasurer's office of the ocal
20 agency also serves on the board of directors, or-any comnttee
21 appointed ~by .the. board of directors, or the credit .committee or
22 supervisory committee of the state or federal credit-union~issuing '
23 the negotiable. certificates of deposit.
24 - -
2~ (i) (1) Investments in repurchase agreements.or. reverse repurchase
' 26 agreements of any securities authorized by this section, so long as
27 the agreements are subject to this subdivision,,including the
28 delivery requirements specified in this section.
29
. 30 (2) Investments in repurchase agreements may, be made; on any
31 investment authorized. in this section; when the term of the agreement -
32 does not exceed one year. The market value of securities that
33 underlay a repurchase..agreement shall be valued.at;_102 percent or
34.. .greater of the:funds borrowed against those securities. and the value -
3's shall be adjusted no less than quarterly.
36 '
37 (3) Reverse repurchase agreements maybe utilized only when either
3$ of the following conditions are met:
39
40 (A) T'he security was owned or specifically committed to purchase,
41 by the local agency, prior to repurchase agreement on December 31,
42 1994, and -was sold using a reverse repurchase agreement on December
43 31, 1994.
44 - .
11
City of Petaluma, California 1999 Statement of Investment Policy
1 .
2 (B) The security to be sold on:reverse repurchase agreement has
3 been owned and fully paid for by the'local agency for a minimum of 3'0
4 days prior to sale, the-total of all .reverse. repurchase-agreements
5 on nvestmerits owned by the local agency not purchased or committed
6 to purchase, prior to December 31, 1994, does not exceed 20 percent
7 of the base value of the.portfolio, and the agreement does not exceed
8 ~ a term of 92 days, unless the agreement includes a written codicil
9 guaranteeing a minimum earning or spread for the entire: period
to between.. the sale. of a security using a reverse repurchase agreement _
11 and the final maturity date of the same security:
12
13 (4) After December 31, 1994, a reverse repurchase agreement may
14 not be .entered .into with securities not sold on a reverse repurchase "
15 agreement and purchased, or committed to purchase, prior to that
. 16 -date, as a means of`firiancing or paying .for the security sold on a
17 reverse repurchase.agreement, but may only be entered. into with
18 securities owned and previously paid for, for a minimum of 30 days
19 prior to the settlement of the reverse repurchase :agreement, in order
20 to supplement the yield on securities owned and previously paid for
21 or to provide funds for the immediate payment. of a local agency
22 obligation. Funds obtained or funds within the pool. of an equivalent
23 amount to -that obfained,from selling a security to a counterparty by
24. ~ way of a reverse repurchase agreement, on -securities originally
25 purchased subsequent to December 31, 1994, shall not be used to -
26 purchase another security with a maturity longer .than 92 days from
27 the initial settlement date of the reverse repurchase agreement,
28 unless the reverse repurchase agreement 'includes a written codicil
29 guaranteeing a minimum earning or spread. for'the entire period ~ .
3o between the sale of a security using a reverse. repurchase agreement
31 and the final. maturity date of the same security. Reverse. repurchase
32 agreements specified. in subparagraph (B) of paragraph (3) may not be
33, entered into unless the percentage restrictions specified, in that
34' subparagraph. are met, .including. the total of any severse repurchase .
' `35 agreements specified' in subparagraph-(A) of paragraph (3).
36 .
37 (5) Investments in reverse repurchase agreements or similar
38 investments in which the local agency sells securities prior to
39 purchase with a simultaneous agreement to repurchase the security,
4o may .only be .made upon .prior approval of the governing body of the
41 local agency and -shall only be made with primary dealers of-the
42 Federal Reserve Bank of New York. '
43
12 '
City of
Petaluma,, California. 1999 Statement of Investment Policy
1 ,
2 (6) (A) "Repurchase agreement" means a purchase of ecurities by
3 the local agency pursuant to an agreement by which the counterparty
4 seller will repurchase the securities on. or before a specified date
5 and for a specified amount and: the counterparty will deliver the
6 underlying securities to the local agency by book entry, physical
7 delivery, or by third party custodial agreement. The transfer of
s underlying securities to the counterparty banka customer book-entry
9 account may be used for book-entry delivery.
10
11 (B) "Securities," for purpose of repurchase under this
12 subdivision, means securities of.,the same. issuer, .description,. issue
13 date, and maturity.
14
15 (C) "Reverserepurchase agreement" means a, sale of securities by _
16 ~ the local .agency pursuant to an:agreement by which the local agency
17 will repurchase the securities on or before a specified date, and
18 includes other comparable agreements.
19
20 . (D) For purposes of.this section, the base. value of the local
21 agency's pool portfolio. shall be that dollar amount obtained by
22 totaling all cash balances placed' in the pool by all pool
23 participants, excluding any amounts obtained through. selling
24 securities by way of reverse repurchase agreements or other similar
25 ~ borrowing methods. .
26
27 (E) For purposes of his section, the spread, is :the difference
2s between the cost of funds obtained using the reverse repurchase
29 agreement -and the earnings obtained on the reinvestment of the funds., .
30
31 (j) Medium-term notes of'a maximum:of five years' maturity issued
32 by corporations organized and operating within the United. States or
33 by .depository institutions licensed by the United States or any state
34 ~ and operating within the'United States. Notes eligible-for
35' investment under this subdivision shall berated in a rating category
36 of "A" or its. equivalent or better by a nationally recognized rating
37 service,. Purchases of medium-term notes may not exceed 30 percent
38 of the agency's surplus money which maybe invested pursuant to this
39 section.
40
41 (k)' (l) Shares of beneficial interest issued by diversified
42 management companies' that invest in the securities. and obligations as
43 authorized by subdivisions (a) to (j), inclusive, or .subdivision
44 (1) or (m) and that comply with the investment restrictions of this
45 article and Article 1 (co_mmencing with Section 53600). However,
46 notwithstanding these restrictions, a counterparty to a reverse
47 repurchase agreement `is not required to be a primary dealer of the
4s Federal Reserve Bank of New York if the company's board of directors
13
• City of Petaluma, California 1.999 :Statement of Investment Policy
1
2 finds that the counterparty presents ,a minimal risk of default, and
3 the value of the securities underlying a repurchase agreement maybe.
g 100• percent of the sales price ~if the securities are marked to market
5 _ daily.
6 .
7 (2) 'Shares of beneficial interest issued. by dversified.management
s companies that are_,money market funds registered with the. Securities
9 and Exchange Commission under the~Irivestment'Company Act of 1940,(15
to U.°S.C. Sec. SOa-:1 et seq,).
1L
12 (3) If investment is.in shares issued pursuant to paragraph (1),
13 the company shall have met either ofthe following criteria:
14
15 (A) Attained the'-highest.ranking or the highest letter and
16 numerical rating~provided by not less-than two nationally recognized
17 statistical rating organizations.
lg
19 (B) Retained an investment adviser registered or exempt from
20 registration with the: Securities and Exchange .Commission with not
21 less than five years' .experience investing in the securities and
22 obligations authorized by subdivisions (a) to (j); inclusive, or
• 23 subdivision (1) or. (m) and with assets under management in excess of
24 ~ five hundred million dollars ($500,000,000).
25.
26 (4) If investment- s'in shares issued pursuant to :paragraph (2),
27 the company shall, have met either of the following criteria:
28
29 (A) Attained. the highestranking or the highest letter and
3o numerical ratng~provided by not less than two nationally recognized '
3`1 statistical rating organizations.
32 .
33' (B) Retained an.investment adviser registered or exempt from
34 registration with the Securities and Exchange Commission with riot •
35 less than five years' experience. managing money°°market mutual funds
36' with assets under management in excess of five hundred million
37 dollars ($5'00,000;000).
38
39 (5) The purchase price of shares of beneficial interest purchased
4o pursuant to this. subdivision shall not. include any commission that
41 the companies may charge and hall not exceed 20 percent of the
42 agency's surplus rrioney that maybe invested pursuant to this section.
43
44 However; no more than 10 percent of the: agency's surplus funds may
45 be invested in shares of beneficial interest.. of-any one mutual fund
46 pursuant to paragraph (1).
47
14
City of Petaluma, California 1999' Statement of Investment Policy
1
2 (1) Notes, bonds,. or other obligations which are at all times
3 secured by a valid .first. priority':securty :interest. in securities of
4 the types listed by Section 536'5`1 .as eligible: securities for the
5 purpose of securing local agency deposits having a market value at
6 least equal to that required by Section 53652 for the purpose of
7 securing local agency deposits. The securities serving as collateral
8 shall' be placed by delivery or-book entry into :the custody of a
9 trust company or the trust department.. of.a bank which is :not
1o affiliated with the. issuer ofthe secured obligation, ;and the
11 security- interest shall bye perfected in accordance with the -
12 requirements of the Uniform Commercial-Code or federal regulations
1'3 applicable to the types;of securities in which the security interest
,14 is granted. -
15
16 (m) Any mortgage: pass-through security, collateralized mortgage
17 obligation; mortgage-backed or other pay-through bond, .equipment. -
18 lease-backed certificate.consumerreceivable pass-through
19 certificate, or consumer receivable-backed bond of a, maximum of five
20 yearsmaturity. Securities eligible for investment under this
21 subdivision shall be issued by an issuer having an "A" or higher
22 rating for the issuer's debt as provided by a nationally recognized
23 .rating. service and rated in a rating category of "AA" or its -
24 equivalent or better by a nationally recognized rating service.
`25 Purchase of securities authorized by this subdivision may not exceed
26 20 percent of the agency's surplus money that may be invested
27 pursuant to -this section.
28
15
. ATTACFIlVIENT C
CITY OF PETALUINIA'
FINANCE DEPARTMENT
MEMORANDUM
January 27, 1999
To: Fred Stouder, City Manager
~
From: David W,. Spilman, Finance Director/City Treasurer
Re: Treasurer's Report for December, 1998
Attached is the Treasurer's Report as of December 31, 1998. This report`is submitted to you and
the City'Councl orr a.monthly basis'and summarizes the account activity, investment activity and
cash flows. The: amount, types,. and duration of the investments are in compliance with the
adopted. City investment. policy. This report also complies; with. State law regulating investment of
City funds and is designed to fully inform you and the City Council of the City Treasurer's activity
and investment of City funds;
State Law only requires; a quarterly report presented to the, City Council, which includes an
additonalstatement of Fiscal Agent activity. The quarterly reports are submitted to the City
Council at the end of each quarter.
This report consists of the following schedules:
Schedule 1 Sununary of Cash,, Investments & Fiscal Agents,Accounts
Schedule 2 Summary of Bank & Fiscal Agent Account. Activity
Schedule 3 Summary of Investments by Accounts
Schedule 4 Summary of Monthly Investment Activity by City Treasurer
Schedule 5 Summary of Account Reconciliation to General Ledger
Schedule 6 Summary of Cash &.Investments -Fiscal Agents
'This rrionth there were two investment maturities which totaled $1,200,000,00 and, one
investment purchase and interest earnings;reinvested which totaled :$5,514,994.25. See Schedule
4 for detail of transactions. The more significant transactions are listed below:
® $5,500,000 invested in I:ocal:Agency InvestmentFund (LAIF)
$1,700,000 withdrawn from Local Agency Investrnent.Fund (LAIF)
Below,is a comparison of current investment activity to the prior month and same month the
previous year..
Nov 1998 998 Dec 1997
Amount Invested at End of Month $29,113,934 $32,853,503 $30,704,809
Avg. Est. Interest Rate 5.80% 5.77% 5.87%
3-Month Federal Treasury Bh Rate 4:40% 4.39%° 5.30%
Interest Received or Accrued from 7/1 $572,120 $916,202 $903,928
Also included. are summary graphs showing the investment performance for the month.
CITY OF PETALUMA,' CALIFORNIA
CASH/INVESTMENTS BY TYPE -DEC', 1998 .
TOTAL CASH/INVESTMENTS - $32,853;503 C LT Y O F P E `TAL U M A
($ooo)
CALIFORNIA
LAIF T~~EIIV:~I~~~E.1 1'V I~EPO.I~'~
.$19,890 61%, Fiscal Agent/CAMP -
$3,870 17% n~ R Q Q Q
Sonoma=Cty D ~ ~ E 1 V1'~.IV E ~ ~ V V
GIO ~ ~
'$2,302 7%
FederalAgencies
Cash SB,OOD~18%
$786 2%
CITY OF PETALUMA, CALIFORNIA CITY OF PETALUMA, CALIFORNIA
'ERCENTAGE OF CASH INVESTED AMOUNT OF CASH/INVESTMENTS
FISCAL YEAR 1998-99 FISCAL YEAR 1998-99
100% ,
aD
36
M 26
i
60%~~ 1 20'
1
0 16
' +40%~ ~ n 1p
s
6 '
20% 0
J A S O N D J F M A M 11
MONTHS
o%
J A 5 O N D J. F M A M J ®.INVESTED ®FISCAL AGENTS ~ IN ACCOUNTS -
MONTHS
FISCAL YEAR AVERAGE -~97% FISCAL YEAR AVERAGE - $30,575;103
CITY OF PETALUMA, CALIFORNIA CITY OF PETALUMA„ CALIFORNIA
LENGTH OF CURRENT INVEST TO MATURITY INTEREST`RATE OF OUTSTANDING' INVEST„
AS OF DECEMBER 31, 1998 FISCAL YEAR 1998-99
10,
248
22 6
20' P ~
16~ ~ E
M 16 O 6
1 14 E 6'
~ 12 T 4
0 10 3
n g
s 2,
6 1
4 J A S O N D J F M A M J
2 MONTHS
0
LIOUID• CAMP~SO.;CTY: AIO b-366 2 YEAR 3j~VEAfl 4-YEAR6 YEAR'
NUMBER OF DAYS TO MATURITY ~ CITY INTEREST -P- 3 MO T-BILL INTEREST
•INCLUDES CASH IN ACCOUNTS; AND LAIF FY AVG -CITY-5.80% - T-BILL-4.57% '
. CITE' OE PETALUIVIA, CALIFORNIA
CITY TREASgJRER AND..FINANCE `DIRECTOR REPORT
The City Treasures isreguirad to submit a monthly report of the'City cash and.investments under the-Statement of
Investment and Reporting Policy as presented;to the City Council on February 1.7,,1998 and'approved by Resolution
#98-29 N.C:S: This report shows the cash transactions of the month and"the available cash and outstanding
investments'as of the end of the month. All aocounts.and investment sources that are under the control of the
of the: City Treasurer, dtreotly or through Fiscal Agents/trustees, are li§ted'below. All investments are made
according to the above policies and State law.
The tran§actions and~balancescontained in schedules 1 through S are from the various~'banl: statements and investment logs.
• and confirmations. The information is reconciled with the.City's general ledger accounts. Schedule 4 summarizes the
bank account-reconciliation to the general ledger accounts.
For further information, contact David W. Spihnan, City Treasurer/Finance Director, 707-778-4352; finance@ci.petaluma:ca.us:
SCHEDULE 1- SUMMA][tY• OF CASH,~INYES'TIVIENTS 8z: FISCAL AGENTS AS .OF
DECEMBER 31, 1998
Cit}''Investnents 'Cash TQt?i1 C~sla
'-Cash In Demand Fzom Demand Invested With 'Investments
'Accounts Accounts .Fiscal Agents FiscalA~etlfs;
TDepository Account Name :12/31198 12/31./98 12/31/98 32131J98 •
Bank of°Amen'oa General Operating Account (1) 591,79.1.14 29,376,802.92 29,968,594.06
Bank of America Payroll Account 107,615.60 107,61''5.60
Bank: of America M.A.S.T. (2) 70,637.24 70,6,37.24
Bank of America Police Trust Account 8,150.25 8,150.25
Bank of.Arrierica T1lomas Lee Charity Trust Acct 273.30 273.30
Bank~of Petaluma Escrow Acct. Dept. of the Arrny 6,374.10 6,394.10
-Union Bank: Fiscal P.gentlfrustee Accounts 659,049.56 659;049:56
US Bank Fiscal Agent/I'rustee Accounts 2,032,809.34 2,032,809.34 .
Total Cash & Investments 784,841.63 29;376,802.92 2,691,858.90 32,853,503.45
City Investments to
Demand Deposits 2% 89% 8% 100%
Average Estimated City Investment InteresYRafe 5.77%
(1) Includes Deposits From All City, PCDC and Other Agency:Funds
(2) Includes Marina, Airport; Swim and Transit Revolving,Deposits
CITE' OF PETALLTMA, ~AI~IFOI~NIA
CITY TI2EAS~J~2E'R AND FINANCE DIIt~C~'®R I2EI'OR'T
S'CHEI)ULE 2 -SUMMARY OF BANK ACCOUNT ACTIVITY
CITY BANK ACCOJNTS
Be€uuung ~S'duig'
Balance Receipts T}ISbursements Balance ,
Depository City Accounts 12/O1f98 1213198
Bank of America General Operating Account(1) 771,500.51 12,111,074.86 12,290,784.23 591;79,1.14
Bank of America PayrolLAccount : 22,823:47 1,569;224.31 1,484,432:1'8. 107,615.60
Bank of America M.A.S.T. (2) 61,752.29 22;409:98 63,525.03 70,637.24'.
• Bank of America Police Trust.Account 8,134.70 15.55 0.00 8;150:25
Bank of America Thomas„Lee Charity Trust Acct 771.96 0.00 498.66 273.30
.Bank of Petaluma Escrow Acct. Dept. of the Army 6,374.10 0.00 0.00 6,374.10
Total Acfivi#y of All City Accounts 871,357.03 13,752,724.70 13,839,240.10 784,841.63
F'ISCAI., AGFNT/TRgJSTEE ACGOLJNTS
Beginning
Fiscal Agent/ Balance Receipts Disbursements Balane~.
Trustee Accounts "12/01/98 121~]/98~'
Union Bank Various 656,259.52 2,790.04 659,049.56
US Bank Various 2,024,509.05 8,300.29 2,032,809.34
' Total Fiscal Agents/Trustee Accounts 2,680,768.57 11,090.33 0.00 2,691,858.90
• (I) Includes Deposits From All City, PCDC end Olher,Agency,Funds
(2) Includes Marina, Airport, Swim and Transit Revolving Deposits •
CITY ®F PETAI..iJMA, ~CAI.IFORNIA
CITY' T1tEASURER AND T`INAN.C~ DIRE`C'TOR REP®RT
SCHEDULE 3 -~INVESTMENT.SOURCES.SUMMARY AS OF
DECEMBER,31,1998
> ..Current
Type ofSecurit} Account Type,'Broker Purchase Maturity Interest Estimated Investment E~tun~ted.;>:
Date Date ' Xie]d to lntezest to Principal
Maturity (1) Maturity value (2~
General Operating Account (3)..
Local Agency Investment Fund (LATE)
City Operating Account O/D O/D 5.640% N/A 17,876,652.94 17,904;667.09
PCDC Account O/D O/D 5.640% N/A 2,012,851.69 2,016,005.99
California Arbitrage Mgmt Program (CAMP) O/D O/D 5.0:10% N/A 978,287.75 978;287.75
Sonoma County Investment Pool
City Operating Account O/D O/D 5:334% ' N/A . 53,596._10 53,731.53
PCDC Account O/D O/D 5.334% N/A 152,981.97 153;425.62
Guaranteed Invest: Contract - AIG -TRAM 07/0]/98 6-30-99 5.820% 130,233 2,302,432.47 2,302,432.47
Fed National'Morfgage,Assoc=W.F. Securities 5-4-98 5=5-03 6.280% 314,000 1,000,000.00 1,013;730;00
EedNatonal"IVtortgage Assoc-W:F. Securities 5-5-98 5-5-03 6':390% 958;-500 3,000,OQ0.00 3,OT1;250.00
F,ed Home.Loan-Banks'-W:F.'Securities 5-14-98 5-14-01 6:1'25% 183,750 1,000,000:00 1,002,500.00
Eed Home Loan Banks-vJ.F. Securities 5-20-98 S-ZO-02 6:280% .251,200 1,000,000:00 1,003;750:00
Total Investments From General Operating Account 1,837,683 29,375;802:92- ,29,439;820.45
{l), On Demand: (O/D).Interes't yield,stated.eachmonth for'pooled investments is the rate as of the last day of the month. 5:77%
Interest on pooled investments fluctuates daily and the rate that is actually paid each quarCer may be different. ~ .
(2) Fair;.value foY pool'ed:investments is-notavailable from the State or County Treasureron,a monthly basis, butit is available'from.the
' . State on a,quarterly basis. Fair value for all other investments is updated monthly from Wells Fargo Securities..account°statements.
(3) Inbludes'monies from allCity, PCDC and other agency funds in pooled investments. Separate-PCDC accounts in
LAIF and Sonoma County are for convenience an"d PCDC funds are also pooled with other funds in other investments.
I certify thaTthis report reflects, all government agency pooled investments and is in conformity with the Investment Policy
of the City'of Petaluma as stated in'Resolution # 98-29, dated February 17 1'998. A copy of the Investment Policy is available
for review' aYthe office.oftheCity Treasurer. The investmentportfolio shown above provides sufficient cash flow liquidity
to meet estimated cash flow needs over the next 6 months.
f ..ry~°
SIGNED:f~' t
AVID W. SPILMAI~JI CITY TREASURER/FINANCE DIRECTOR
.CITY OF PETALUMA, CALIFORNIA Page 1 of 2
CITY TREASURER ANA FINANCE DIRECTOR'S REPORT
SCHEDULE 4 -SUMMARY OF;IVION'I'HLY INVESTMENT ACTIVITY BY CITY TREASiJRER
AS OF DECEMBER 3i, 1998
Beginning' Ending
Financial Date of Date of N Days to Interest Outstanding Investments Investments Outstanding Calb
Acct Security Institution. Puiohase Maturity Maturity Rate Investments Purchased Matured Investments Fair. Value Provisions
LOCAL AGENCY INVESTMENT FUND ACTIVITY
Oper .Pool, 1 State ofCelifomia N/A 5.460% 14,076,652.94 14;076,652.94
Open Pool 1 State of.Ealifomia 12111/98' 5.460% 700,000.00 (700,000.00)
Open Pool 1 State bfCalifomia 12/17/98' 5.460% 1,000,000.00 (1,000,000.00)
Open ~ -Pool 1 StateofCalifornia 12/22/98 5.460% 5,500,000.00 5,500,000.00
'14,076,653:94 S,SOO,000i00 1',700,000.00 17;876;652.9$ L7,904,667.09
PCDC Pool S Stste.gf:Galifornia N/A 5.460% 2,012,85.1:69 2;012,851.69
2,012,851.69 0.00 0.00. 2,01.2,851.69 2;016;005:99 -
TOTAL OPER AND PCDC LAIF 16;089,504.63 5,500;000:00 1,700,000.00 19;889;504.63 19,920;673108
SONOMA COUNTY INVESTMENT;PQOL ACTIVITY
Oper Pool l0 SonomaiCty. N/A ~ 5.334% 53;596.10 53,596.10
53;596.10 0:00 0.00 53,596.10 53,751.53
PCDC Pool 10 SonomaCty. N/A 5.334% 152;981.97 I52,98L97
152,981.97 0.00 0.00 1542,981.97 153,425:62
TOTAL OPER AND PCDC SONOMA COUNTY 206,578.07 0.00 0.00 206,578.07 207,177.15
CALIFORNIA ARBTTRAGE MANAGEMENT PROGRAM TRUST:(CAMP)
Oyer MMKT 9 CAMP N/A 5.010°/a 974;146!25 974,146.25
Open MMKT 9 CAMP 12/31/98 INT 5.010% 4,141.50 4;141-.50
TOTAL CAMP 974,1'46.25 4;141:50 0:00: 978,287.75 978,287.75
CITY OF PETALUMA,'CALIFORNIA Page. 2 of 2
CITY TREASURER AND :FINANCE DIgtEC'I'OR'5 REPORT
SCHEDULE 4 -SUMMARY OF MONTHLY INVESTMENT ACTIVITY BY CITY TREASURER
AS OF DECEMBER 31, 1998`
Beginning Ending
Financial Date of Date of Days to Interest Outstanding Investments Investments Outstanding Call
Acct Security Institution Pu"rchase Maturity Maturity Rate Investments :'Purchased Matured Investments Fau Value Provisions
AIG D4ATCHED FUNDING CO.
TRAN GIC 12 A1G Matched Fund 07/0.1'/98 06/30/99 5.820% 2,237,677.79 2,237,677:79 7,237;677:79
TRAM G1C 12 AIG Matched Fund 12/31/98 INT 5.820% 53,901.93 10,852.75 64,754.68 64;754.68
TOTALAIG 2,291,579.72 10,852.75 ~ 0.00 _2,302,432.47 2,302,432.47
12/31/98
Oper FNMA 1 l United States 05/04/98 05/05%03 1,586 6.280% 1,000,000.00 1,000;000.00 1,013;750:00 11/05/98
Oper FNMA 1l United States 05/05/98+ 05/05/03 1,586 6:390% 3,000,000:00 3,000;000.00 3,011,250:00 11/05/98
Oper FHLB I1 United. States 05/14/98 05/14/01 865 6.125% 1,000,000.00 1,000;000:00 1,002,500:00 1'1/14/98'
Oper FHLB 11 United States 05/20/98 05/20/02 1,236 6.280% 1,000,000.00 1,000,000.00 1,003;750:00 11/20/98. ,
6,000,000.00 0.00 0.00 6;000;000.00 6;031;250.00
TOTAL FOR MONTH 25,561,808.67 5;514,994.25 1,700;000.00 29,376;802.92 29,439;820.45
3 2
ABBREVIATION GUIDE -
GIC Guaranteed,Investment Contract FHLB Federal Home Loan:Banks
FHLMC Federal Home Loan Mortgage Corporation INT Interest
FFCB Federal Farm CrediCBanks MMKT MoneyMarket
FNMA Federal National Mortgage Association OPER Operating
FHLB Federal Home.Loan Banks. TRAM Tax and Revenue Anticipation Noles
CI'I'I' OF PET'AI,tJNIA, CALI~OItNIA
FINANCE DI~tECTORS REPORT
SCHEIDULE 5 -SUMMARY OF BANK ACCOUNTS RECO1vCIL,~ATION
TO GENERAL LEDGER CASH ACCOUNTS
13aiance' Deposits ~ri ` Outsfandmg i..::. Other Aijusted
Per Bank Transit (l) and Checks (2) and ; : sRecgnciling ' ; .Balance (4)
Depositon~ ! Account Name I2I31198 Transfers Transfers (3) Tterns 12!31/98. .
Bank of America General Operating 591,791.'14 110,055.99 (176,647.16) 525,199.97
Bank of America Payroll 107,615:60 (94,933:.20) 12,682.40
Bank of America MAST 70,637.24 2,026.91 72,664.15
Bank of America Police Trust. 8,10.25 8,150.25
Bank of America Thomas Lee Charity Trust 273:30 273.30
Bank of Petaluma Dept. of the.Army 6,374.10. 6,374.10
Total :Cash Summary 784,841.63 112,082.90 (271,580.36) 0.00 625;344.17
Footnotes
(1) Deposits in .transif are deposifs which are prepared and recorded by the City as of the last day of the month and
which are takento the bank and recorded by the bank a day or two after the last day of the month.
(2) Outstandig; checks .are checks which are written, ,recorded and disbursed by the City as of the last,day of the month
but which Have .not;yet"been presented to the bank fo payment and deducfion.
(3) Transfers ale funds for which°the City has authorized a withdrawal',from-one City bank account and a deposit into
another City-bank account by the last day of the month, and the transaction has not yetbeen recorded by the bank.
(4) This adjusted balance agrees with the cash accflunt balances:in the City's General Ledger as of the last day of the month.
' CI1'~' ®F PETALIJMA, CAI,IF0121VIA
FINANCE DI~2ECTOIZS I2EPOR'I'
])ECEM~Elt 3'1, 1998
SCHEDULE. 6 -SUMMARY OF CASH AND INVESTIGIENTS'WITH ~'ISCAI,.AGENT
',Description Interest Maunts~ ' ~tljuste~:`:::::>:.:>:: ;~aaz:
of Security _
RaiCe !Rate Cost Basis Value:
::Schedule of CashLlnvestmeuts with Fiscal.Agenfs/Trustees-(Summarized in Fiscal.Agent/Trustee Accounts fn Schedule~2) ~
Cash $ 6.36 $ 6.36
Camp -Cash Reserve Pool 5:01% N/A 2,476,654.54 2,476,654:54
US Bank Insured Money Market 2.25% N/A 131,322:00 131,322.00
First American Treasury Obligation. 4.41% N/A 83,876.00 83,876.00
Total Cash and Investments -Fiscal Agent $ 2,691,858.90 $ 2,691;858.90
SB 574 and 866 require. reporting cash and investments held' with:fiscal agents on a quarterly basis.