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Home My WebLink AboutResolution 94-019 01/18/1994i/ ~ ReSOIUtI~rl NQ. 94-19 N.C.S. of the City of P~talu,ma, C~liforni~l 1 A RESOLUTION OF THE CITY COUNCIL OF THE 2 CITY OF PETALUMA APPROVING THE 3 INVESTMENT POLICY FOR 1994 4 5 WHEREAS, Government Code Section 53646 requires each City Treasurer to 6 annually render to the legislative body of the local agency a Statement of Investment 7 Policy, and; 8 9 WHEREAS, the City Treasurer has the responsibility to invest the pooled idle 10 cash of all of the City funds, and; 11 12 WHEREAS, the City Treasurer has developed a Statement of Investment Policy 13 and submitted said Policy to the City Council for review. 14 15 NOW, THEREFORE BE IT RESOLVED that the City Council approves the 16 1994 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 Approved as to Council of the City of Petaluma at a (Regular) (A~3~iil~~(~ meeting f °~ on the ..18th ............. day of ...---......~~.CIU~T:~T......................_...-.-., 19.9.., by the following vote: • ........ .... ...... .......•--.... it Attorney AYES: Nelson, Sobel, Hamilton, Vice Mayor Read, Mayor Hilligoss NOES: None .,' ABSENT: Barlas, S, ~ ' ~ '/ ATTEST: .-..~/~ ............................ ...............~_..................... .............. City Clerk Mayor CA 10-85 Res. No........~-1.~-...----.,. N.CS. City of Petaluma 1994 Statement of Investment Policy "EXHIBIT A" CITY OF PETAI:UMA 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 ultimate goal is to enhance the interest earnings of the City while protecting it's pooled cash. SCOPE 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). The daily cash management and investment transactions are the responsibility of the City Treasurer. 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 all funds of 95 % 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. ~e.so q y - l 4 rJ GS City of Petaluma POLICY 1994 Statement of Investment 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 af° 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 County Investment Pool) - Certificates of Deposits placed with commercial banks and/or savings and loan companies - Negotiable Certificates of Deposit - Bankers Acceptances - Securities of the U.S. Government or its Agencies - Repurchase Agreements - Commercial Paper 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. Below is a summary of the current statutory limits imposed by the State Government Code on certain investments: Permitted Investments Investment Limits Maturity Limits Securities of the U.S. Govt. Unlimited 5 years* Certificates of Deposit Unlimited 5 years* Negotiable Certificates of Deposit 30% 5 years* Bankers Acceptances 40 % 270 days Commercial Paper 30% 180 days LAIF $15,000,000 n!a Passbook Deposits n/a n/a Repurchase Agreement n/a 1 year Reverse Repurchase Agreement n/a 1 year** Mutual Funds 15'% n/a Medium Term. Commercial Notes 30 % 5 years * May be.extended with City Council approval ** Specific City Council approval is required for each investment t~eso `t y---`~ NC,S City of Petaluma 1994 Statement of Investment Policy THE OBJECTIVES FOR SELECTING INVESTMENTS AND ORDER OF PRIORITY ARE: A. Saf t 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 community. B. Lic~uidit~ An adequate percentage of the portfolio should be maintained 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 risk. C. Yield: Yield should become a consideration only. after the basic requirements of safety and liquidity have been met. SAFEKEEPING. COLLATERALIZATION AND BROKER All investment securities purchased directly by the City shall be held in safekeeping by an institution designated as primary agent or at the City, . The primary agent shall issue a safekeeping receipt to -the City listing the specific instrument, rate, maturity and other pertinent information. The City currently uses Wells Fargo Securities as-the Primary Agent. 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. Other securities shall be collateralized by the actual security held in safekeeping by the City or primary agent. In selecting brokers and dealers, the City Treasurer shall conduct credit and capitalization analysis to determine that firms are adequately financed to conduct public business. 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 Joint Powers Authority (JPA)- or 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 JPA. The investment securities are regulated by the State Government Code and further limited by the specific debt issuance resolutions. MONITORING AND REPORTING The City. Treasurer shall routinely monitor the 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 by .Government Code Section 53646. (i~e~a Q~-~q r.IGS City of Petaluma 1994 Statement of Investment Policy Attachment C is an example of the monthly report. for November, 1993. This report exceeds the minimum requirements of the State Code and provides the City Council with additional information regarding bank accounts and reconciliation with the General Ledger. ~eso 9 y - l ~( N GS City of Petaluma 1994 Statement of Investment Policy ATTACHMENT A CITY OF PETALIJMA 1994 STATEMENT OF INVESTMENT POLICY SUMMARY OF TYPES OF INVESTMENTS AVAILABLE TO LOCAL GOVERNMENTS LOCAL AGENCY INVESTMENT POOLS LAIF The Local Agency Investment fund (LAIF) 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 (wire transfers) and begin earning interest on a daily basis. Over 1,6501oca1 agencies participate'in the LAIF investment.pool. These agencies invest approximately $8.3 billion which is added to $12.6 billion in State funds fora $20.9 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 $15 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. Sonoma County The Sonoma County Treasurer also maintains an investment pool which the County, Schools, Special Districts and cities can participate. The investment portfolio is approximately $438,000.,000. This investment pool operates in the same manner as the State pool. The County Treasurer is subjec 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. Certificates of Deposts~CD) 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 specific amount, a set interest rate, and set maturity date. There is a substantial interest penalty if the CD is withdrawn prior to the matunty date. ~e.s~ 9 ~ -- l a ~ CAS City ofPetaluma 1994 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 for banks 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. secunty for .the funds from the Federal Insurance Agencies. Negotiable Certificate of Deposit NCD) This .investment is similar to the Fixed CD's above. However, the NCD can be sold on a "secondary market" prior to the maturity date. Normally, NCD's are issued in $500,000 and $1,000,000 amounts and require a combination of securities to protect the public funds. 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 Acce tances (BA), A Banker's Acceptance is a time draft which has been drawn on and accepted 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, 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, 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 of ten years or longer. Federal AQencv Issues Many Federal Government sponsored Agencies are authorized to issue short term and long term obligations that .are ;used to finance various programs such 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 security for their issues is the guarantee of the Agency fo pay. The Federal Government has only an implied liability to the extent that the Agency has an open credit line ~~~ ~ ~- --19 -~cs City of Petaluma 1994 Statement of Investment Policy to borrow from the U.S. Treasury. It is widely accepted that Federal Agency issues are as secure as U.S. Government notes. . There is an active secondary market available to sell these issues prior to maturity. The issues are fairly liquid depending on the prevailing market interest rates at the time of sale. Repurchase Agreements (Repos) A Repurchase Agreement is a contractual arrangement; between a financial institution, or dealer, and an investor. This agreement normally can 'run for one. or more days. The investor puts up funds for a certain number of days aG a stated yield. In return, it takes a given block of securities as collateral: At maturity, the securities are repurchased by the financial institution with interest. This is used generally for overnight investments. Commercial Paper ,CP) Commercial Paper are unsecured Promissory Notes of industrial corporations, utilities and bank holding companies. Notes are in bearer form. starting at -$100,000. State law limits a 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: Rem . ~''~ - 19 ti1CS ATTACHMENT B C'a®~/EItl~l0~EP1T COI)E:SECTI®Ad 53635 § S363S. IDeposit and in.estment of !bads of local agenad 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 or national -beaks, 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 puisuaat to Section 531, may be invested in the follo~a+ing: (a) Bonds issued by the local agency, including bonds :payable solely out of the revenues from arevenue-producing >property owned, controlled; or oper- ated by the local agency or by .a department, board, agency, oar authority of the local agency. (b) United' States Treasury, notes, bonds, bills, or certiScates of indebtedness, or those for which the faith. and credit of the United States are pledged for the payment of principal and interest. (c) Registered state warrants or treasury notes or bonds of'this state, including bonds payable solely out of the revenues from a. revenue-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 indebtedness of nay. local agency within' this state, including bonds payable solely out of the rev+eaues from arevenue-producing property owned, controlled, or by the local . or by a ~ eat, board, agency, or authority of ~ the 1ocaT a8eacy. (e) Ob . by for 'vas, federal lead federal is ~ ` chit banks, federal home loan basks, the F Home Loan Beak, t~ Y Valley ~-uthority, or in obligations, or other ' is of, or i~u~ed by, or folly guaranteed as to principal sad interest.. by, the Federal Aiationsl laiortga8e 'lion; 'or in toed portions of Small 'on notes;.or in obligations, participa- tions, or other in.~trum®ts of, or rued by, .federal agency or a Unit®d States government-sponsored enterprise. (f) Bills of exchange or time. drafts drawn on and accepted. by a. commercial bank, otherwise'knowa.as beakers acceptances, which are eligiblefor.purchsse by the Federal Rese:ti-e System. of beakers may not exceed 270 days maturity or 40 percent of the agency's surplus funds which . ®aws. Iu can, q u~ mdiemoo eaio~ ~.adita~ • • • im~r. ~ 1~ ~e.so 9 ~ - l ~ - I~GS ~ S3S3S GOVERNMENT CODE may ~ invested pursuant to this section. However, no more than 30 percent of the agency's surplus funds may be invested in the bankers acceptances of any one commercial bank pursuant to this section. This subdivision does not preclude-a. municipal utility district from investing any surplus -money in its treasury in any :manner authorized by the Municipal Utility District Act, Division 6` (commencing with Section 11 SO 1) of the Public Utilities.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 liauted to issuing corporations that are organized and operating within the United States and having total assets in excess of Sve hundred million dollars ($5,000;000) and having as "A" or higher~rating for the issuer's debt, other than commercial paper, if any; as provided. for by ARoody's Investors Service, Inc., or Standard and Poor's Corporation. Purchases of eligible commercial paper may not exc,oed 1 S0 days maturity nor represent more than 10 percent of the outstanding paper of an issuing. corporation. Purchases of commercial paper .may not exceed 13 percent of the 'agency's surplus money which may be invested pursuant to this section. ~n additional l3 percent,. or a total of 30 percent of the a~eeacy's money ormoney in its custody, may be invested pursuant to this ttbdivision. The additional 15 percent may be so invested only if the dollar-.weighted • average maturity of the entire amount does not exceed 31 days,. "Dollar-weighted average. maturity'° means 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 bask or a savings .association ar federal association or a state or federal credit union or by astate-licensed branch of a forei~ bank..Purchases of negotiable certificates of deposit may not exceed 30 percent of the ag®cy's surplus money which may ~ 'invested pursuant: to this section. For purposes of this section. negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title S, except that the amount so irdve3ted .shall be subject w the limitations of Section S363g. F_or of this section, the 've.body of a local agency: sad the ' or .other official ' of the la~l agency having legal custody of the:money ire~probi`bited from- depositing ar investing local agency funds, or triads is tlsec custody of the local agency, in negotiable certiflcat~ of deposit " by a atste or federal credit: union. if a m®ber of the legislative bey of thee. local. agency, or as employee of the ' trative officer, s office, office, uitditor-controller's office, ar treasurer's o>~ce of the la~l agency also serves . on the bo®i~d of or any .committee ~' red:' by the of directors, or the credit committee or supervisory co®mitt®e of tho•state or f credit union ' the negotiable certificates of (i) Investmeats~in eats or r~-erse repurchase agreements of nay...,. authorized by this section. 30 long.aa the of the reverse repurchase tare invested solely to supplement the income normally r+oceived i~ these. Investment ui a rev repurchase agreement ahsill .be only .upon prior of the five of the local y agency. For, of this section, the term " ent" mesas a purchase of by the local agency t to an agreement by 1~ ~ mig°°.• t,acao~c~ R~.~~ q~-~~ Nos GOVE~tP111~NT CODE § g~~ which the seller will repurchase the sxurti~ on or before~a specified date~aad for a specified amount and will deliver the underlying securities to "the -Ioc~ agency by book entry, physical delivery, :or by third-party,. custodial agree- ment. The transfer of. underlying securities to ~ the couaterparty ,bank's customer b~k entry account may ~ used for book 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 may be used for physical delivery of the underlying security. . The term of repurchase agreements 'shall be for .one year or less. The term .`securities,,, 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 local .agency .will repurchase such securities on or before a specified' date and for ,a. specified amount. (j) Agedium•term notes of a maximum of five years" maturity :issued by corporations organized and operating within the United States . or by deposi- tory institutions licensed by the United, States or. any.-state :aad• operating within. the United 'States. Notes eligible for investment under ibis subdivision shall be rated in a rating category -of ".~„ or its equivalent or better by a nationally recognised rating service. Purchases of medium-term notes may not exceed 30 percent of the agency's surplus money which >i3ay be' invested pursuant to this suction. (k) Shares of bme8cial interest Issued by diversified ant companies, as defined in Section 23701m of the Revenue and Taxation Code; investing in the. securities and obligations as authorized by subdivisions (a) to (k), inclusive, of this section :and which comply with the investment restrictions of this article and Article 1 (commencing with Section 331~)..:'Io be.eligible for investment.,pursuaat to this subdivision, these companies shall either: (l) attain the highest raakin~ or the highest letter and numerical rating provided by not less then tn-o of the three largest nationally rating. ervices, or (2) have as investment adviser registered with~the Sectarities and F.Itchange Commission with not less thaw -five years' experience. iavating; in the securities and obligations as authorized by subdivisions ~ (a) to : ~ia), ~ inclusive, ; of this section and with ~ under mt in' excess of Sve ~~undred million dollars (SS~,OOD,OOD). The price of_ ~ ~ ~ of ~eScial ~ interest • purchased pursuant to this subdivision shall. not'include say'oo~mis$ion tint these-companies ~y and shell, not exceed 1'$~•p~t of ~l"ie' a~eeacy's surplus ffionegi which may ~ invested pursuant , to, t4is s~tion. (1) - tmnds; or other obligrstiona~ arhich are at all , by, a valid 'ty security interest in ~ .. of the types listed by, Section S~6S 1 aa: s®curtties for the ~ :'securing local agency de~sits having a market valne~ai least equal to that required by Suction 53632 for the: Purpose of securing local agency depaaaits. The securities servia~ >~ shall be . placed by delivery or book entry into the custody of a trust oo~paay or the trust department of a beak which is not si$liated with the ' of the secured. obligation, sad. the security interest shall be perfected in ce with the requirements of the' Uniform Commercial Cade or f 'ens appli- cable to the types ot` securities in which the security interest is granted. Ama~ded s~ 1987 eh nab ~ 2. eh sss7 g J.S. slats 14s8 cti 244 a~ Z. t~medve Id1i 7, 19!18. ch 491 toe 3, ch l~ ttee 2. Januar4 1. 1989. B~iees~ ®1941. (t2 c7aar q li~~ m~ or e e a 9~ ~ ~ ~»~~~~ ~ e~ ~~ ~~ ~ ~ ~ _~ _ ~ . S ~_ s - ~ ~ _ ~ ~ m ~~ ~~. ~~ a ~a E ~ ~~ ~ ~ Q e _ _ ~ Via„ ~~ ., ~~~-~~E~ ~'~~~F ATTACHMENT C CITY OF PETALUMA MEMORANDUM December 16, 1993 TO: John L. Scharer, City Manager ~ . FROM: David W. Spilman, .City Treasurer/Finance .Director ~ ~~ 1U SUBJECT: Treasurer's Report for November, 1993 Attached is the Treasurer's Report as of November 30; 1993. Tlie 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. ~i 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. November November 1~ 12~ Monthly $ Invested $24,001,655 $29,885,506 Monthly Interest Rate 4.5696 5.1496 6-Month T-Bill 3.11 % 3.389b Quarterly Accrued Interest $198,524 $402,150 Also included ~ summary graphs .showing the investment performance for the month. ~2so ~ -} -1G N ~~ CITY OF PETAI.UA/IA TREASURER'`S REPORT NOVEMBER, 1993 J A 8 O N D J F Id A Al J MONTHS Ft3CAL YEAR AVERAGE - 98ri CITY OF PETALUMA AMOUNT OF CASH/INVESTMENTS . FISCAL YEAR 1993-94 40 98 M 30 I 28 1 I 20 I 0 1d n • 10 e 0 J A 8 O N D J F M A M J MONTHS INVE8TE0 ®FISCAL AGENTB IN ACCOUNTS F18CAL YEAR AVERAGE - 184,784,187 CITY OF PETALUMA . INTEREST RATE OF OUTSTANDING INVEST. FISCAL YEAR 1993-94 10 e a P ~ E R 8 E 6 N 4 T 9 2 1 J A S O N D J F M A M J MoNTHs t CITY INTEREST -~ e-MO T•BILL INTEREST• FY AVO -CITY-8.12'b - T-81LL-9.21% CITY,OF ;PETALUMA . CASH/INVESTMENTS BY TYPE - NOV, 1993 (IN,$000) LAIF 6o.tT9 2r` FISCAL AGENT CASH 59,018 tOA =421' 11< CMAP ,>52,688 B% SONOMA CTY. Si7,88S 68A TOTAL CASH/INVESTMENTS - $29,88b,508 CITY OF PETALUMA LENGTH OF CURRENT INVEST TO MATURITY A3 OF NOVEMBER 30, 1993 so 18 o ,s M u ~ 12 1 10 1 o e o e 4- 2 0 UOUID!' CAMP 80. CTY. 0-00 00-00 60-160 160-9060VEN 060 NUMBER' OF DAYS TO MATURITY •INCIUDEb CABN IN ACCOUNT6 ANO LAIF ~~SC' R ~ -~ L IJC.~ CITY OF PETALUMA PERCENTAQE OF-CASH INVESTED FISCAL YEAR 1993-94 CITY OF,PETALUMA CITY TREASURER AND FINANCE DIRECTOR REPORT The Treasurer is required to submit a monthly report: of the City cash and investments under the State Government Code Section 536.46 to th'e City Council. This report shows the cash transactions of the month and the avai'labl'e cash and outstanding investments as of the end of the month. All accounts and investment sources that are under the control the City Treasurer, directly or through fiscal Agents/Trustees, are listed below. All investments are made according to the Statement of Investment and Reporting Policy as presented to the City Council on January 19, 1993. and approved by Resolution # 93-20. 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 reconcilliation to the general ledger accounts. SCHEDULE 1--SUMMARY OF CASH, INVESTMENTS & FISCAL AGENTS AS OF NOVEMBER 30, 1993 CITY INVESTMENTS TOTAL CASH, CASH IN DEMAND FROM DEMAND CASH WITH INVESTMENTS AND ACCOUNTS ACCOUNTS FISCAL AGENTS FISCAL AGENT DEPOSITORY ACCOUNT NAME 11/30/93 11/30/93 11/30/93 11/30/93 WELLS FARGO GENERAL OPERATING ACCOUNT 134,521.39 ~ 26,448,416.24 26,582,937.63 HELLS FARGO OVERLAND SWEEP ACCOUNT 204,179.52 204,179.52 HELLS FARGO PAYROLL ACCOUNT 48,996.60 48,996.60 WELLS FARGO POLICE TRUST ACCOUNT 13,274.79 13,274.79 BANK OF AMERICA THOMAS LEE CHARITY TRUST ACCT 727.18 727,18 WELLS FARGO TRANSIT ACCOUNT 19,156.25 19,156:25 BANK OF AMERICA FISCAL AGENT ACCOUNTS 3,016,234.01 3,016,234.01 ----------------------------------------------------------------------- 70TAL CASH &'INVESTMENTS, 420,855.73 26,448,416.24 3,016,234.01 29,885.,505.98 CITY INVESTMENTS TO DEMAND DEPOSI75 RATIO 1% 99% 100X AVERAGE INVESTMENT INTEREST RATE 5.14% ~~. 5n 9 ~t - ~ 9 Ncs ~:~ CITY OF PETALUMA CITY TREASURER AND FINANCE DIRECTOR REPORT SCHEDULE 2--SUMMARY OF BANK ACCOUNT ACTIVITY NOVEMBER 1, 1993 TO NOVEMBER 30, 1993 BEGINNING BALANCE RECEIPTS DISBURSEMENTS ENDING BALANCE DEPOSITORY ------------- CITY ACCOUNTS ------------------------------ 11%01/93 ------------------r ^- ----------------- ----------------- 11/30/93 ----------------- WELLS FARGO GENERAL OPERATING ACCOUNT 269,017.29 11,258,090.65 11,392,586.55 134,521.39 WELLS FARGO OVERLAND SWEEP ACCOUNT 393,884.48 4,355,503.10 4,545,208.06 204,179.52 WELLS FARGO PAYROLL ACCOUNT 243,000.00 745,607.61 939,611.01 48,996.60 WELLS FARGO POLICE TRUST ACCOUNT 12,139.09 1,135.70 0.00 13,274.79 BANK OF AMERICA THOMAS, LEE CHARITY TRUST ACCT 444.04 391.64 108.50 727.18 WELLS FARGO TRANSIT ACCOUNT 2,019.65 17,200.01 63.41 19,156.25 TOTAL ACTIVITY OF ALL ACCTS 920,504.55 16,377,928.71 16,877,577.53 420,855.73. LESS CITY INVESTMENT ACTIVITY (2 MATURITIES AND 1 PURCHASES, RESPECTIVELY) LESS TRANSFERS BETWEEN CITY ACCOUNTS NET ACTIVITY OF ALL CITY ACCOUNTS DUE TO CASH DEPOSITS, CHECKS CLEARED AND OTHER ACCOUNT TRANSACTIONS 3,564,636.14 6,511.48 745,607.61 ----------------- 745,607.61 -------------- 12,067;684.96 - 16,125,458.44 BEG1NNiNG BALANCE RECEIPTS DISBURSEMENTS ENDING BALANCE DEPOSITORY FISCAL AGENT/TRUSTEE ACCOUNTS 11/01/93 11/30/93 BANK OF AMERICA FISCAL AGENT ACCOUNTS 3,372,381.04 235,947.79 592,094.82 3,016,234.01 ----------------------------------------------------------------------- ~e.~c~ ~ ~ - lq N C CITY OF PETALUMA CITY TREASURER AND FINANCE DIRECTOR REPORT SCHEDULE 3--INVESTMENT SOURCES SUMMARY AS OF NOVEMBER 30, 1993 "INTEREST TYPE OF SECURITY BY ACCOUNT/INSTITUTION PURCHASE MATURITY RATE ESTIMATED INVESTMENT DATE DATE (1) (YIELD) INTEREST PRINCIPAL GENERAL OPERATING ACCOUNT (HELLS FARGO BANK) ------------------------------------------ LOCAL AGENCY INVESTMENT FUND (LAIF) ON DEMAND ON DEMAND 4.380% N/A LOCAL AGENCY INVESTMENT FUND (LAIF) - PCDC ON DEMAND ON DEMAND 4.380% N/A CALLFORNIA ARBITRAGE MGMT PROGRAM ON DEMAND ON DEMAND 3.040% N/A SONOMA COUNTY INVESTMENT POOL - CITY ON DEMAND ON .DEMAND 5.710% N/A SONOMA COUNTY INVESTMENT POOL - TRAN ON DEMAND ON DEMAND 5.710% N/A SONOMA COUNTY INVESTMENT POOL - PCDC ON DEMAND ON DEMAND 5.710% N/A 4,960,460.81 1,215,441.12 2,586,450.18 11,104,165.87 3,518,500.18 3,063,398.08 TOTAL INVESTMENTS GENERAL OPERATING ACCT 0.00 26,448,416.24 TOTAL INVESTMENTS ALL ACCOUNTS 26,448,416.24 5.14% I certifiy that this report reflects all government agency pooled investments and is in conformity with the Investment Policy of the City of Petaluma as stated in Resolution # 93-20, dated ' January 19, 1993. A copy of the Investment Policy is available for review at the 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:. ~; ' DA ID W. SPI AN, CITY TREASURER/FINANCE DIRECTOR tile- S U n'1 ~ - ~ `~ 1J C,S