HomeMy WebLinkAboutResolution 95-032 02/06/1995 Resolution No. 95-32 N.C.S.
of the City of Petaluma. California
1 A RESOLUTION OF TIIE C1TY COUNCIL OF THE
2 CITY OF PETALUl~IA APPROVING THE
3 INVESTMENT POLICY FOR 1995
4
5 WIIEREAS, the City Treasurer has annually rendered to the City Council a
6 Statement of Investment Policy, and;
7
8 WIIEREAS, the City Treasurer has the responsibility to invest the pooled idle
9 cash of all of the City funds, and;
10
11 WFIEREAS, the City Treasurer has developed a Statement of Investment Policy
12 and submitted said Policy to the City Council for review.
13
la NOW, T13ERETORE BE IT RESOLVED that the City Council approves the
15 1995 Investment Policy as shown in Exhibit A attached.
Underthe power. and authoritymnferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a (Regular) (29>~jMj7t;G@pHdYt$ meeting form
on the ..._G.th aay of ..._........February............................, ts..95., by th .
following vote: _ -
' City At rney
AYES: Shea, Maguire, Stompe, Hamilton, Vice Mayor Read, Mayor Hilligoss
NOES: None
ABSENT: Barlas l '
ATTEST:
City Clerk Mayor
~~mcii File.._
CA IO~A5 Res Nu_.95-32 NGS.
City of Petaluma 1995 Statement of Investment Policy
"EXFIIBIT A"
CITY OF PETALUMA
1994 STATEMENT OF INVESTMENT POLICY
PURPOSE
This Statement is intended to provide guidelines for the prudent investment of the temporary idle
cash under the City Treasurer's control. The primary goals are to protect the security of public
funds, provide fiinds when needed for use and earn a reasonable rate of investment interest.
SCOPE
Under the City Charter Section 24, the City Treasurer is appointed by the City Manager with the
approval of the City Council. The. City Treasurer is also the City Finance Director.
The daily cash management, investment transactions and account reconcilliations are the primary
responsibilities of the City Treasurer.
This Investment Policy shall apply to activities of the City with regard to the investment of
temporarily idle funds of all fund types, including the following:
General Fund
Special Revenue Funds
Debt Service Funds
Capital Projects Funds
Enterprise Funds
Internal Service Funds
Trust and Agency Funds
This Policy shall also apply to funds of the Petaluma Community Development Commission
(PCDC), Petaluma Public Financing Corporation and anyother agency or trust funds under the
control of the;City Treasurer.
In order to provide flexibility and efficiency in cash and investment management, the City uses a
general operating account and investment pool system. When the revenues are received from
taxes, fees and other sources, it is recorded•in the City's finance system to the appropriate fund
and account.. The checks and cash from all;furids are then deposited into an operating account.
The single operating account allows for more:efficient management of daily transactions and
investments from the account. The investment earnings from all investments aze allocated on a
quarterly proportionally back to each fund that provided the cash for the investment.
There are several restricted fund sources- that are not included in the City's investment pool and
are invested separately. These invested funds will receive the interest earnings on a periodic basis
from the direct investment source or separate investment pool. Examples of these funds are debt
reserves, trust accounts (Prince Trust) and Tax and Revenue Anticipation Note proceeds.
peso. 9 s- 3a tJCS
City of Petaluma 1995 Statement of Investment Policy
OBJECTIVE
The City's cash management system is designed to monitor and forecast expenditures and
revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts
to obtain the highest interest yield as long. as investments meet the criteria established for safety
and liquidity.
The City strives to maintain the level.of investment of alt funds of 95°l0 of available cash, through
daily and projected cash flow determinations.
The basic premise underlying the City's investment philosophy is to insure that City funds are
always safe and available when needed.
POLICY
The City of Petaluma operates its temporary pooled idle cash investments under State
Government Code Section 53600, et seq. and Civil Code Section 2261, et seq., the "Prudent Man
Rule". The "Prudent Man Rule" obligates a fiduciary to insure that:
"...investment shall be made with the exercise of that degree of judgment and care, under
circumstances then prevailing, which persons of prudence, discretion and intelligence
exercise in the management of their own affairs, not for speculation but for investment
considering the probable safety of their capital as well as the probable income to be
derived".
The City generally invests in the following investments that are allowed by State Code:
-Local Agency Investment Pools (State LAIF or Sonoma County Investment Pool)
- Certificates of Deposits placed with commercial
banks andlor savings and loan companies
-Negotiable Certificates of Deposit
-Bankers Acceptances
- Securities of the U.S. Government or its Agencies
-Repurchase Agreements (for overnight investment)
- CommerciaLPaper
All of the above investment securities are eligible for City investment under State Government
Code Section 53635. The State Government Code also allows for additional types of investment
securities that are not commonly used by the City. Attached is a description of the above listed
securities, Attachment A, and a copy of the State Government Code, Attachment B.
This policy also provides that other investment securities authorized by State Government Code
Section 53635, as amended, are also eligible for investment of City Funds.
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City of Petaluma 1995 Statement of Investment Policy
Below is a summary of the current statutory limits imposed by the State Government Code on
certain investments:
Permitted Investments Investment Limits Maturit~imits
Securities of the U.S. Govt. Unlimited 5 years*
Certificates of Deposit Unlimited 5 years* .
Negotiable Certificates of Deposit 30% of portfolio 5 years*
Bankecs Acceptances 40% of portfolio 270 days
Commercial Paper 30% of portfolio 180 days
LAIF $20,000,000 n/a
Passbook Deposits n/a n/a
Repurchase Agreement n/a 1 year
Reverse Repurchase Agreement n/a 1 year**
Mutual Funds I S% of portfolio n/a
Medium Term Commercial Notes 30% of portfolio 5 years
* Maybe extended with City Council approval
.Specific City Council approval is required for each investment.
THE ERIMARY OBJECTIVES FOR SELECTING INVESTMENTS AND ORDER OF
PRIORITY ARE:
1. Safetv: It is the primary duty and responsibility
of the Treasurer to protect, preserve and maintain
cash and investments on behalf of the citizens of
the City.
2. Liouidity: An adequate percentage of the portfolio
is rriaintaihed in liquid short-term securities
which can be converted to cash if necessary to meet
disbursement requirements. Since all cash
requirements cannot be anticipated, investments in
securities with active secondary or resale markets
is preferred and emphasis on-marketable securities with
low sensitivity to market interest rate risk.
3. Yield: Yield is a consideration only aRer the basic
requirements of safety and liquidity have been met.
SAFEKEEPING
All investment securities purchased directlyby'the City,shall beheld in safekeeping by an
institution designated as safekeeping agent or at the City in registered book or physical form. The
primary agent shall issue a safekeeping receipt to the City1isting the specific instrument, rate,
maturity and other pertinent information. The City currently uses Wells Fargo Securities as the
safekeeping agent.
~e~.95-3~nlcs
City of Petaluma 1995 Statement of Investment Policy
COLLATERALIZATION
Deposit-type securities (i.e. Certificates of Deposit) shall be collateralized at the minimum State of
California collateral pool requirements for any amount exceeding FDIC or FSLIC coverage.
BROILERS
In selecting securities brokers, the City Treasurer shall conduct credit and capitalization analysis
to determine that firms are adequately financed to conduct public business.
LOCAL INVESTMENT POOL POLTCIES AND REPORTS
The City Treasurer shall review and maintain current copies of the adopted investment policies of
the State and Sonoma County. The policies shall be reviewed for concurrence with the
investment policy of the City.
The City shall require a minimum of quarterly reports of the investment transactions of the
investment pool.
INVESTMENT OF DEBT PROCEEDS
The City deposits selected debt proceeds, reserves and other debt related funds with the California
Arbitrage Management Program (CAMP). This is an investment program authorized by City
Council Resolution 91-169. It was created by other cities as a Jomt Powers Authority (JPA) for
the investment of local agency funds which may be subject to Federal arbitrage regulations. The
investment portfolio is managed by a broker on contract with the 7PA. The investment type
securities are regulated by the State Government Code and further limited by the specific debt
issuance resolutions and federal restrictions.
CITY INVESTMENT MONITORING AND REPORTING
The City Treasurer shall routinely monitor the entire investment portfolio and shall file with the
City Council a monthly Treasurer's Report which shall include a Statement of Investments and
other information as required.
Attachment C is an example of the monthly report for December, 1994. This report exceeds the
recommended minimum requirements of the State Code and provides the City Council with
additional information regarding bank accounts and reconciliation with the General Ledger.
Qeso. 95-3a. tJGS
City of Petaluma 1994 Statement of Investment Policy
ATTACHIvvIENT A
CITY OF PETALUMA
1995 STATEMENT OF INVESTMENT POLICY
SUMIvIARY OF TYPES OF INVESTMENTS
AVAII.ABLE TO LOCAL GOVERNMENTS
T.OCAL AGENCY INVESTMENT POOLS
State Investment Pool (LATE)
The Local Agency Investment fund (LATE) was created by the State in 1976 to provide local
governments with access to a large investment pool that can generate higher interest yields and
provide a high degree of liquidity. The deposits and withdrawals are done by electronic transfers
of funds (wue transfers) and begin earning interest on a daily basis.
Over 2,200 local agencies participate in the LAIF investment pool. These agencies invest
approximately $8.9 billion which is added to $18.1 billion in State funds fora $27 billion
investment portfolio. The investment portfolio is widely distributed over many types of
investment instruments and is not adversely impacted by sudden shifts in the investment market.
In addition, the large portfolio and wide distribution provides for greater flexibility investments to
take advantage of changing interest rates.
There is a limitation of $20 million per Agency subject to a maximum of 10 transactions per
month.
The security of LAIF investments is in two parts. The State Treasurer's and Controller's offices
are responsible for the accounting, processing, and safe keeping of the City's funds through the
State Treasurer's investment procedure and policies. The State maintains insurance and bonds
covering employee honesty and errors. The City funds are able to be withdrawn at any time and
are protected by State law from seizure or impoundment by any State Officer.
Once the funds are pooled with other local agencies, and invested, the security for the funds
becomes the investment. Each investment is secured by Federal Insurance, the U. S. Government
or Federal Agency, collateral of major banks, or major corporation collateral. The security
depends on the type of investment.
Reno, 95-3a tics
City of Petaluma 1994 Statement of Investment Policy
Below is a summary of the investment portfolio of the State LAIF as of 10-31-94 in millions of
dollars:
of Total
U.S. Tieasuries $11,300 43%
Agencies 1,500 6%
Certificates of Deposits 7,100 27%
Banker's Acceptances 1,200 4%
Time Deposits 300 1%
Commercial Paper 4,900 19%
Corporate Bonds 1,400 5%
Reverse Repurchases (1,500) (6%)
Other 200 1
100% $26,400
Sonoma County Investment Pool
The Sonoma County Treasurer maintains an investment pool which the County, Schools, Special
Districts and Cities can participate, The investment portfolio is approximately $762,800,000.
This investment pool operates in the same manner as the State pool. The County Treasurer is
subject to the same State Government Code regarding investments as the City. As with the State
investment fund, the City funds can be withdrawn at any time and are protected by State Law
from seizure or impoundment by any County Officer.
Below is a summary of the investment portfolio of the Sonoma County Investment Pool as of
12-30-94 in millions of dollars:
of Tota(
U.S. Treasuries $53.8 7%
Agencies S 11.2 67%
Certificates of Deposits 95.0 12%
Corporate Bonds 177.0 23%
Repurchases 34.0 4%
Reverse Repurchases (111.4) (14%)
Other 3.2 1%
100% $762.8
.Certificates of Deposits (CDl
Certificates of Deposits, sometimes known as "Jumbo Accounts" or "Fixed CD's" are savings
accounts with Banks or Savings and Loans. These accounts are for a speciftc amount, a set
interest rate, and set maturity date. There is a substantial interest penalty if the CD is withdrawn
prior to the maturity date.
peso. q 5-3a ~lcs
City of Petaluma 1995 Statement of Investment Policy
The State law requires Public Fund CD's to be collateralized by the financial institution at 110%
with U.S. Government notes bonds or at 150% with quality First Trust Deeds. This collateral can
be waived if Federal Insurance (FDIC forbanks or FSLIC for savings and loans) is available.
These federal agencies will insure each account up to $100,000.
The City generally waives the collateralization requirements for the FDIC or FSLIC insurance.
The waiver of collateral is a wide spread practice and will generally generate higher interest rates
and provide the greatest security for the funds from the Federal Insurance Agencies. For deposits
in excess of $100,000, the collateralization requirements are not waived.
Negotiable Certificate of Deposit (NCD)
This investment is similar to the Fixed CD's above. However, the NCD can be sold through a
broker on a "secondary market" prior to the maturity date. Normally, NCD's are issued in
$500,000 and $1,000,000 amounts. The State Code limits NCD's to not more than 30% of the
local.agency's portfolio and 5 year maximum term, The security is the credit worthiness of the
issuer, as these deposits are uninsured and uncollateralized promissory notes.
Banker's Acceptances BAl
A Banker's Acceptance is a time draft of invested funds which has been drawn on and accepted
for repayment by a bank. This financial instrument is generally used for short term (30 and 180
days) financing of export, import, or storage of goods. By accepting the draft (investment of City
funds), the bank is liable for the'payment at maturity. This bank liability makes the Banker's
Acceptance a marketable investment. The State Code limits BA's to not more than 270 days
maturity and 40% of the local agency's portfolio.
U.S. Treasury Bills
Commonly referred to as T-Bills; these are short-term marketable securities sold as obligations of
the U.S. Government. They are offered in three month, six month, nine month and one-year
maturities, T-Bills do not accrue interest but are sold at a discount to pay face value at maturity.
U.S Treasury Notes
These are marketable, interest-bearing securities sold as obligations of the U.S. Government with
original maturities of one to ten years. Interest is paid semi-annually.
U.S Treasury.Bonds
These are the same as U.S. Treasury Notes except they have original maturities often years or
longer.
Federal AaencY Issues
Many Federal Government sponsored Agencies are authorized to issue short term and long term
obligations that are used to finance various programssuch as home loans, business loans, farm
loans, etc. These Agencies were created by the Federal Government in the 1930's and have since
become independent quasi-public agencies. The securityfor their issues is the guarantee of the
Agency to pay. The Federal Government has only an implied.liability to the extent that the
Agency has an open credit line to borrow from the U.S. Treasury. It is widely accepted that
Federal Agency issues are as secure as U.S. Government notes.
R~so. 9 s- 3a Ncs
City of Petaluma 1995 Statement of Investment Policy
There is an active secondary market available to sell these issues prior to maturity. The issues are
fairly liquid depending on the predailing market.interest rates at the time of sale..
Some of the more common agency notes are issued by the Federal National Mortgage Association
(Fannie Mae), Federal Home Loan Banks, Federal Home Loan Mortgage Corporation (Freddie
Mac), and the Federal Farm Credit Banks.
Renurchase Agreements (Reaosl
A Repurchase Agreement is a short term investment agreement to loan City funds for a fixed
period in return for a fixed interest rate and secured collateral, such as U.S. Treasuries or Agency
Notes. This type of investment is usually done for overnight investment of funds left in the
general operating account.
Commercial Paper (CP)
Commercial Paper are unsecured promissory notes of industrial corporations, utilities and bank
holding companies. The notes are m bearer form starting at $100,000. State law limits the City
to investments in United States corporations having assets in excess of five hundred million
dollars with a "A" or higher rating. Cities may not invest more than 30% of the portfolio and not
exceed a term of 180 days.
~esa. 95-3a t,1~5
ATTACHMENT B
GOVERNMENT CODE SECTION 53635
§ 53635. Deposit and ta~estmeat of hinds of local agmcles
As far as possible, all money belonging to, or in the custody of, a local agency,
including money paid to the treasurer or other official to pay the principal,
interest, or penalties of bonds, shall be deposited for safekeeping in state :err
national banks, savings associations or federal associations, credit unions, or
federally insured industrial loan companies in this state selected by the
treasurer or other official having the legal custody of the money; or, unless
otherwise directed by the legislative body pursuant to Section 53601, may be
invested in the following:
(a) Bonds issued by the local agency, including bonds payable solely out of
the revenues from a revenue-producing Property owned, controlled; or oper-
ated by the local agency or by a department, board, agency, of authority of
the local agency.
(b) United States Treasury notes, bonds. bills, or certificates of iadebtednesa,
or those for which the faith and credit of the United States are pledged for
the payment of principal and interest.
(c) Registered stater warrants or treasury notes or bonds of this state, including
bonds payable solely out. of the revenue from a rt:vmue-producing property
owned, controlled, or operated by the state or by a department, board, agency,
or authority of the state.
(d) Bonds, notes, warrants, or other evidences of indebtedaesa of any local
agency within this state, including bonds payable solely out of the revenues
from a revenue-producing property owned. controlled, or operated by the
local agency, or by a 'department, board, agency, or authority of the local.
agency.
(e) Obligations issued by beaks for cooperatives, federal land baakv, federal
intermediate credit banks, federal home loan beaks, the Federal Home Loan
Bank, the Tennessee Valley Authority, or is obligations, Participations, or
other iasu'nmeats oP, or issued by, or folly guaranteed as to prindpel and
interest by, the Federal National Mortgage Association; in gtuiranteed
portions of Small Business Ad~++^~~**A*+on notea;.or is obligations, participa-
tions, of other instruments of,. or issued by, federal agency or a United State
government-sponsored enterprise
(f) Bills of ezchange or time drafts drawn on and accepted by a coiamercisl
bank, otherwise known as beakers acceptances, which are eligiblefor:piuchase
by the Federal Reserve System. Purchaxs of beakers aaxptaacp tasy not
exceed 210 days,maturity or 40 percent of the agency's surplus funds which
uz awq sum isgi.
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~eso. 4S-3a. ?a1C,S
~ S3~g GOVERNMENT CODE
may be invested pursuant to this section: However, no more than 30 percent
of the. agency's surplus funds!;,mey be invested in the bankers acceptances of
way one commercial bank pursuant to this section.
This subdivision does not preclude a mrtrricipal utility district from investing
any surplus money in its treasury in any mamrer authorized by the Municipal
Utility District Act, Division 6 (commencing with Section 11501) of the
Public Utilides.Code.
(g) Commercial paper of "prime" quality of the highest ranking or of the
highest letter and numerical rating as provided for by Moody's Investors
Service, Inc.; or Standard and Poor's Corporation. Eligible paper is further
limited to issuing corporations that are organized and operattng within the
United States and having total assets in excess of five hundred million dollars
(5500,000,000) and having an "A" or higher rating for the issuer's debt, other
than commercial. paper, if any, as provided for by Moody's Investors Service,
Inc., or Standard and Poor's Corporation. Purchases of eligible commercial
paper may not exceed 180 days maturity nor represent more than 10 percent
of the outstanding paper of as issuing corporation. Purchases of commercial
.paper may not exceed 15 percent of the agency's surplus money which may
be invested pursuant to this section. An additional 15 percent,, or a total of
30 percent of the agency's money of money in its custody, may be invested
pursuant to this subdivision. The additional, 1S percent may be so invested
only if the dollar-weighted average maturity of the entree amount does not
exceed 31 days. "Dollar-weighted average mattuity" mesas the sum of the
amount of each outstanding commercial paper investment multiplied by°the
number of days to maturity, divided by the total amount of outstanding
commercial paper..
(h) Negotiable certificates of deposit issued by a nationally or state-chartered
beak or a savings association or federal association or a state or federal credit
union or by a state•liceaxd branch of a foreign bank. Purchases of negotiable
certificates of deposit may not exceed 30 percent.of the agency's surplus
money which may ba invested pursuant to this section. For purpose of this
section, negotiable certificates of deposit do not come witltin Article 2
(commencing with Section 33630) of Chapter 4 of Part 1 of Division 2 of Title
S, except that the amount so invested shall be subject to the limitations of
Scction 53638. For parposes of this section, the legislative body of a local
agency end the tresaurer or other official of the local agency having legal
custody of the monry arz
prolu'bited from depositing or investing local agency
fonds, or fnads in the custody of the local agency, is negotiable certificates of
deposit issued by a state or federal credit union if a member of the legislative
body of the local. agency, or an employee of the administrative officer,
meaagei's office, budget office, auditor-controller's office. or trmsurer's offi«
of the local agency also.setvea on the board of directors, or any.: committee
appointed' by the board of directors: or the credit committee or supervisory
committee of the state onfederal credit union issuing the negotiablgcertificates
of deposit:
(i) Investments to repurchase agreements or r~evet9e repurchase agreements of
.any securities antltoriied by tl»s,section, so long as the prnc«ds of the. reverse
repurchase agreement are invested solely to supplement the income normally
recaved from these securities Investment is a reverse reptrchase agreement
shall be made oniy.upon prior approval of the legislative body of the local
agency. For putposa of this section, the tam "repurchase agreement" means
a purchase of securities by the local agency pursuant to an agreement by
724 ~ Ld7e mdmre eemRa
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Rem, qs -3a, r`IGS
GOVERNMENT' CODE § 336AS
which the seller will repurchase the securities on or beforca specified datrsad
for a specified amount aad.will deGyer the underlying sectrities to~the Toca!'
agency by book entry, physical delivery, or by third-PAY. custodiaC agree-
meat. The transfer of. underlying securitie to the counterparty bank's
customer book entry account may be used for boob entry delivery. The term
•'counterparty" for the purposes of this subdivision, means the other party to
the transaction. A counterparty bank's trust department or safekeeping
department gray be used for physical delivery of the underlying sectuity.
Z`he tam of repurchase agreements shall be for one year or less. The term
"secttritie," for purpose of repurchase under this subdivision, shall mean
securities of the same issuer, description, issue date, and maturity.
The term "reverse repurchase agreement" means a sale of `securities by the
local agency pursuant to an agreement by which the 1ocaI agency will
repurchase such securities on or before a specified date- and for ,a. specified
amount.
(j) Medium-term notes of a maldmum of five years' maturity issued by
corporations organized and operating within the Umled_States.or by deposi-
tory institutions licensed by the United States or any!' state end operating,
within the United States. Notes eligible for investment under ibis subdivision
shall be rated io a rating category of "A" omits equivalent or better by a
nationally recognized rating service. Purchases of medium-term notes rosy
not exceed 30 percent of the agency's surplus money which "gay be invested
pursuant to this section.
(k) Shares of beneficial. interest tsaued by diversified tt?aaagemmt compames,
as defined in Section 23701m of the Revenur and Taxation Cade, investing in
the securities and obligations as authorized by subdivisions (a) to (k),
inclusive, of this section and which comply with the invetmmt restrictions
of this article and Article 1 (commencing with Section 53600),:To be eligible
for investment ptrsuant to this subdivision, these companies shall tither: (1)
attain the highest ranlciag or the highest letter and. numerical rating provided
by not less than two of the three largest nationally recognized rating. services,
or (2) have an investment adviser registered with. the; Securities and Frachange
Commission with not less than five years' expaieace. investing. ia'the securitie
and obligations sa authorized by subdivisions (a) to.Cm). inclusive,;of this
section and with assets wader management in cares of flve'huadred million
dollars (5500,000,000). The Purchase Price of shares of beneficial iatetet
purchased pursuant to this subdivision shall. not include airy comiuission that
these companies may charge and shall. not exceed IS~pettmt of'the agency's
surplus money which may ba iaveted pursuant,to this section.
p) Notes, bonds, or other obligations which are at all times sectrred by a valid
first priority security interet in securitie of the type Bstcd by, Section 53651
ss e}igtble securitie for the purpose of.securing>lacal agency deposits having
a marketvalue atlesst equal to that required by Section 33652 for the purpose
of securing ]oral agency deposits. The securities serving sa collateral shall be
placed by delivery or .book entry into the custody of a trust company or the
tivst department of a bank which is not affiliated with the iastter of the secured
obligatiod, and the security interet shall be Qerfected in accordsacx with the
requirements of the Uniform Commercial Code or federal regulations appli-
cable to the types of securities in which the sectrity interest is granted.
Amenaea 9fen 1917 eh 4{6; x eh ss~ 4 s.s. Ammeed Sian 1916 eh 294 fee 2. e8aecve rely 196s, ch
{91 far 2. ch 1004 foe 2, opvsuve Ifmuary 1. 1919. - .
m 19gr.
I,x aw q ~ 7mua mdivor ~m~m w fdAimea • • • mdioff omisma 125
Reso. qs -~a rocs
4 ~g (•,pVERNMENT CODE
Asao~
1987 Aaa~e (1) Ddeud "a" tdtue'Yedenl agency"; (1) emended subd.(i) by (a) deleting the comma
aRet `epm6d date" u the third smteuce; (h)subatimimg"by" for "a" attar "delivery. off' m the third
aeateot~ (t) daktiog the stmiwbn aRa "book' both titoea it appe.n u the fourth sentence; ld
subatitatiog "shell me.o" for 'tioooa" in the Wrseatmoe: of the asst P~Ph: and la) deputed the
forme lea smtetxe d.the 8nr parapaph m be the small parapaph; deleted farmer subd Q) which
read: "(1) Mtxtptge srrvritia,ptuehaaduoderan sptmmt mtaeu Ptttnuut m subdivision (i), Provided
that the mortgye smurids ateeligibk iovestmmn uadmsutdiviaion (q or (b) of Section 13000 of [he
Finaodal Code. A bul epxcy't inveattomt in a mortp8e..secunty shall. not eaceed 91 percent of the
toottp8e seeuridra' fair market vdue and shell oa a:toed 23 pereeat d the agency's surplus money which
troy be ioveaed~ pursuant to this amtion.". (4) redeputd forma sabda (k) cad (J) to be,mbds ad
(kk amended aubda (1) M W dektiog "gym" etta "Medium~tam". and after "medium-term": 0>)
riding the aposnvphe after "eve yeah" (e).adding "orpmised cod" atttr "carpoeatiom";ld) adding "a
by depovitory iosdtutiaoa ~lieeaed by the United Sttua a nay sate and operating within the United
Suter' ; (a) sutstdmdog "Nan" for "seeuritiea"; auhatitutiog "e ntiog otegory d "A" a in equivalent
or better by • tutdatmlly reooptird rttiog for 'the top than vote rating ntegories by twc d the
throe ur8rm oatiomlly retoptimd rating servira": W subaitatiog "l'urchme" for "purchase"; ad Oil
subatitntiag "N)" for "14^: (6) emended aubd (k) by (a)sutrdmtiag "(k)" for aRc "(a) m"; mI
subadtiniog. ~?rtirJe 1" for "Article 2": W suhaitutiti`1•'9eedm 33600" far "Sacdan 53630' ; lO deleting
"the" ills etnin the": end (u addia8 the..poaaop6e after "eve years"; rn added aubd (1} cod (8)
deleted' the rtatmr leer parapsph which rend: "Chia teetioa ahdl remain id etYem Dolt uom Jmuary 1,
1988. ad u d tltst date ia?epelad, uttlea a later emoted astute. which a enacted tatore January 1. 1988.
dekts~tr erRmda then date. If that date u as aektd a esteded. then, oa cod alto 7enuery 1. I9B8.
ptusuaat~to Secdm %1 l of the Govwmmt Cade. Sstim 51637 d the Qovvnment Code. u amended
by Section 23 d Cbepter 367 d the Statutes d 1983. shall have the tame fame ell r8rct ere if thin
temporary Proviaimt had nor bem~eoaeud." (Aa amended by Snu 1987,.rJr 887. tompatd m the aea:Onl
u it red prior m 1987. Thu seetim wualw atoended by as earlier. chapter. eh 446. Sm Gov C 49603.)
1981 Aaaa~t Substitwad tmedit uuiom, or tedenllY mwrd iodusvial loon opmpaoie" fa "a
erediL anima^in the mnndwerarY t'Luta (Aa ammda7 by9nn~.198E, ah 1004. aompaad t0 the teet100 d
it «ad prior m t988. Thu smtieo,wu euo amendd by two earlkr chapters. eh 294 ell eh 491. Sm Gov
c 4960?•)
Fdmt'e Noae~9ee the. 1988 Notefolbwmg 4 31630. ~ .
cao.m*,l ltaderaas
Review decked"l988 t.egmfatioo. m Padgc U 7m.
Reso _ 9 5- ~a t`1GS
CITYOF PETALUMA
FINANCE DEPARTMENT
MEMORANDUM
January 18, 1995
To: John L. Schazer, City Manager
From: David W. Spilman, Finance Director
Re: Treasurer's Report for December, 1994
Attached is he Treasurer's Report as ofDecember 31, 1994. The information in the report is
submitted to you on a monthly basis in order to fully inform you and the City Council on the
amount, types, and duration of the investments of City Funds by the Treasurer.
The report consists of four schedules:
Schedule 1 Summary of Cash, Investments & Fiscal Agents Accounts
Schedule 2 Summary of Bank &:Fiscal Agent Account Activity
Schedule 3 Summary of Investment Sources by Accounts
Schedule 4 Summary of Account Reconciliation to General Ledger
Below is a comparison of current investment activity to the same month the previous year.
December December
1993 1994
Monthly $ Invested $34,738,551 $41,353,192
Monthly Estimated Interest Rate 5.24% 5.59%
3-Month T-Bill Rate 3.06% 5.56%
Interest Received from Start of Fiscal Year $443,024 $472,948
Also included are summary graphs showing the investment performance for the month.
~e~. Qs-3a, NcS
CTTY OF PETAIUMA
TREASURER'S REPORT
DECEMBER, 1994
I
CITY OF PETALUMA CITY OF PETALUMA
PERCENTAGE OF CASH INVESTED AMOUNT OF CASH/INVESTMENTS
FISCAL YEAR 1994-96 FISCAL YEAR 1994-96
I
ao
B]% BS% 8794 BS% BBS BS% !6
40
M 36 ~I
it i 90
I 1 26
I e 20
~ 16
f0
6
0
J A 8 O N D J F M A N J
MONTHS
J A 8 O N D J F M A' N J ®INVESTEO ®FlSCAL AGENTS SIN ACCOUNTS
MONTHS
FISCAL YEAR AVERAGE -8894 flBCAL YEAR AVERAGE -197,781489
CITY OF PETALUMA
INTEREST RATE OF OUTSTANDING INVEST.
FISCAL YEAR 1894-96
to
i
a
E ~
R !
g 6
N !
T
3
2
7
J A 8 O N D J F M A N J
MONTHS
r CITY INTEREST ~ i MO T-BILL INTEREBf
FY AVG- CITY-8.98% - T-81LL-l.BB%
CITY OF PETALUMA CITY OF PETALUMA
CASH/INVESTMENT3 BY TYPE -DEC, 1994 LENGTH OF CURRENT INVE3T TO'MATURITY
(IN $000) A8 OF DECEMBER 31, 1994
WF
i7,a0 fi% 20
fi
FlS~CpAyL{aAG9EyyNT ~ i ti
FED NAT MORTGAGE ,A 1!
~~022% ~ fY
it,i28 4% - I 10
FEO NOME LOAN I
BONO/M CfY. o !
i2AeT 7%
ilB.3Ba 1714 FEp NOME LOAN MORT a i
- iiBT 2% !
FED FARM CREDIT 2
C/18N il.eeD ns D ~
ills zs uouw. rwNF ea mr. o-aD ao-w oo-lw fao-aeeweR aw
NUMBER OF DAYS TO MATURITY
TOTAL CASH/INVESTMENTS - $41,363,192 MN0.YDEa CAaN IN ACOOUMTa AND 9AIF -
Reso, g5-'J~1~1GS
CITY OF PETALUMA
CITY TREASURER AND FINANCE DIRECTOR REPORT
The Treasurer is required to submit a monthly ieport of the City cash and investments under the State Government
Code Section 53646 to the City Council. This report shows the cash transactions of the month and the available
cash and outstanding investments as of the end of the month. All accounts and investment sources that are under
the control of the City Treasurer, directly or through Fiscal Agents/Trustees, are listed below. All investments
aze made according to the Statement of Investment and Reporting Policy as presented to the City Council on
January 18, 1994 and approved by Resolution #94-19 NCS.
The transactions and balances contained in these schedules are from the various bank statements and investment
confirmations. The information is reconciled with the City's general ledger accounts. Schedule 4 summarizes the
bank account reconciliation to the general ledger accounts.
SCHEDULE 1-SUMMARY OF CASH, INVESTMENTS & FISCAL AGENTS AS OF DECEMBER 31,1994
City Investments ' Cash !Total Cash;
Cash In Demand k°tom Demand Invested With Investments&
Accounts Accounts Fiscal'. Agents Fiscal Agents
Depository AccotmtName 12/31/94 12131/94 12/31!94 FZ/31/94'.
Wells Fargo General Operating Account 699,561.68 38,264,701.93 38,964,263.61
Wells Fargo _ Payroll Account 34,567.67 34,567.67
Wells Fargo Police Tmst Account 636.52 636.52
Bank of America Thomas Lee Charity Trust Acc[ 116.08 116.08
Wells Fargo Transit Account 8,072.79 8,072.79
Bank of America Fiscal Agent Accounts 2,345,535.71 2,345,535.71
Total Cash & Investments 742,959.74 38,264,701.93 2,345,535.71 41,353,192.38
City Investments to
Demand Deposits Ratio 2% 93% 6% 100%
Average Investment Interest Rate 5.59%
~.e~. 95 -3a Ncs
CITY OF PETALUMA
CITY TREASURER AND FINANCE DIRECTOR REPORT
SCHEDULE 2-SUMMARY OF BANK ACCOUNT ACTIVITY
Beginning Ending
Balance Receipts Disbursements Balance
Depository City Accounts 12/01/94 12/31/94'.
Wells Fazgo General Operating Account 336,811.93 17,498,368.19 17,135,618.44 699,561.68
Wells Fazgo Payroll Account 28,699.67 773,259.88 767,391.88 34,567.67
Wells Fazgo Police Trust Account 625.50 21.52 10.50 636.52
Bank of America Thomas Lee Charity Trust Acct 351.18 0.00 235.10 116.08
Wells Fazgo Transit Account 10,911.23 9,043.98 11,882.42 5;072.79
Total Activity of All Accounts 377,399.51 18,280,693.57 17,915,138.34 742,954.74
Less City Investment Activity
(4 Maturities and 7 Purchases, Respectively) 5,529,547.90 10,315,756.24
Less Transfers Between Accounts 785,092.62 785,092.62
Ne[ Activity of All City Accoun[sDue [o
Cash Deposits, Checks Cleazed and Other 11,966,053.05 6,814,289.48
Account Transactions
Beginning Ending
Balance Receipts Disbn~sements Balance
Depository Fiscal Agent/Tmstee Accounts 12/01194 12/31/94'.
Bank of America Fiscal Agent Accounts 2,337,396.91.. 9,160.05 1,021.25 2,345,535.71
~eso. 4 5-3a. nlC,s
CITY OF PETALUMA
CITY TREASURER AND FINANCE DIRECTOR REPORT
SCHEDULE 3-INVESTMENT SOURCES SUMMARY AS OF DECEMBER 31,1994
Type o€ Securityby Account/Instituflon ' Purchase Maturity. Interest Estimated Investment
Date Date: Yield .'Interest Principal.
General Operating Account (Wells Fargo Bank)
Local Agency Investment Fund (LATE) On Demand On Demand* 5.370% N/A 6,740,135.61
Local Agency Investment Fund (LATE)-PCDC On Demand On Demand* 5.370% N/A 771,081.36
California Arbitrage Mgmt Program (CAMP) On Demand On Demand 5.300% N/A 1,828,731.18
Sonoma County Investment Pool -City On Demand On Demand* 5.254% N/A 16,029,676.85
Sonoma County Investment Pool -IRAN On Demand On Demand* 5.254% N/A 137,810.12
Sonoma County Investment Pool -PCDC On Demand On Demand* 5.254% N/A 3,230,849.19
Fed Farm Credit -Wells Fazgo Securities 7-18-94 5-1-95 5.160% 157,241 3,720,000.00
Fed Home Loan -Wells Fazgo Securities 7-21-94 7-21-99 7.270% 363,500 1,000,000.00
Fed Na[ Mort Assoc -Wells Fazgo Securities 12-22-94 7-24-95 6.430% 38,223 961,777.22
Fed Farm Credit -Wells Fargo Securities 12-22-94 8-2-95 6.500% 40,264 959,736.11
Fed Home Loan Mort -Wells Fargo Securities 12-22-94 8-15-95 6.530% 2,606 997,394.29
Fed Home Loan - We11s Fargo Securities 12-22-94 9-1-95 6.540% 45,962 954,038.33
Fed Home Loan -Wells Fargo Securities 12-22-94 12-15-95 6.690% 66,528 933,471.67
Total Investments All Accounts 714,324 38,264,701.93
*Interest yield stated each month for pooled investments is the rate as of the last 5.48%
day of the month. Interest on pooled investments fluctuates daily and [he rate that is
actually paid each quarter may be different.
Lcertify that this report reflects all govemment agency pooled investments and is in conformity
with the Investment Policy of the City of Petaluma as stated in Resolution# 94-19, dated
Januazy 18, 1994. A copy of the Investment Policy is available for review a[ [he office of the City
Treasurer. The investment portfolio shown above provides sufficient cash flow liquidity to meet
estimated expenditures over the next 30 days.
SIGNED:
DAVID W. SPILMAN, CITY TREASURER/FINANCE DII2ECTOR
~eso, G5 -3a.NGs
CITY OF PETALUMA
FINANCE DIRECTORS REPORT
t SCHEDULE 4 -SUMMARY OF BANK ACCOUNTS RECONCILIATION TO GENERAL LEDGER CASH ACCOUNTS
Balance Deposits and ;Outstanding Other I Adjusted
Per Bank 1 Transfers 'Checks and Reconciling ! Balance
Depository sAccountName 112!31/94 InTiansit TransfeYs Ttems 12/31/94
Wells Fargo Genera] Operating 699,561.68 127,435.41 (357,867.83) 469,129.26
Wells Fazgo Payroll 34,567.67 (32,831.41) 1;736.26
Wells Fazgo Police Trust 636.52 10.50 647.02
Bank of America Thomas Lee Charity Trust 116.08 116.08
Wells Fargo TransiUAirpoNSwim 8,072.79 1,605.11 9,677.90
Total Cash Summary 742,954.74 129,051.02 (390,699.24) 0.00 481,306.52
Deposits in transit are deposits which are prepared and recorded by the City as of the last day of the month and
which are taken to the bank and recorded by the bank a day or two after the last day of the month.
Outstanding checks are checks which are written, recorded and disbursed by [he City as of the last day of the month
but which have not yet been presented to the bank for payment and deduction.
Transfers are 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 yet been recorded by the bank.
Adjusted balance is the balance which would show on each bank statement if a11of the reconciling items had cleared
the bank as of the last day of the month. This adjusted balance agrees with the cash account balances in the City's
Gen8ral Ledger as of the last day of the month.
~eso. G 5 - 3~ NGS
:~~-.=n-~~ 1
X171' OF FETHLUf~r',
DIIi~HAR~E `JOLUME '
A/RaS` 2571
FARMEF;"~ ~'~EFTIC
ATTN: PRTRICK CJGFER
^~~31 GRA!`FN'STEIN SOUTH
3EBASTUF!)L, CA.;95472
DATE OF GALLONS
DUMP
C!i/12/'-1? 1,;)00
O1 !l: j9~: 1 , 200
01/19,'=t3 1,000
01,!25 j'~3 1 , 200
l'.URRENT CHARGES 539(",,011
E.02-115-0000-0073
F'RE~iiCIJc: BALANCE DETAIL. AS FOLL.Ok15:
09, 04/91 THRU 09 ji 6/21 154..011
01,117; 91 THRU 09 /26.;"9 '1 17 9.00
PAYMENT i0/02 /91 (154.00)
PAYMENT '1 '1;13/'D1 (154,001
10;'12/91 70.Ci0
t1j07/91 THRU 12!'iJ6/`:!1 iS2.00
F'A1'P1EtJT i2,'13j91 (35.!50;
12/1F:~/91 THRU 12/30;91 140.00
PAYMENT 01/07/92 (122.OOj
ill;'0'~,"'!~~ THRU 01; 21 j92 0'?1 .00
F'AYM.ENT 02/12/92 (140.OOj
O1/21I92 THRU 02/5/92 651.0.0
F'AYMENI 03/10/92 (371.00)
I)~, /02 THRU 03 j'T2 j92 588.00
PAYMENT 04/'14/l2 (65i.00j
04 !02j9Z THRU 04/17/92 79@,.0-0
05/05/92 THRU 05,126/92 539.n0
PAYMENT D5/12/92 (52;,.00)
PAYf~1ENT l6/11 /92 (79r..00j
oc/naj92 THRU O6j29/9z 6n9.oo
07/01/92 THRU C.?/24/92 490.00
PAYMENT 0;/14/92 (539.00)
PAYMENT 07/11,/92 1;20.00)
PAYMENT 08/12./92 (:529.001
o~:;u5;92 THP;u c)a/31/92 959.00
09 /o2/9z THRU u9/3u/92 423.00
PAYMENT 09/10/92 (490.00)
10/06/92 THFU 10/26/2 576.00