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HomeMy WebLinkAboutInvestment Report - May 2014CITY OF PALM DESERT FINANCE DEPARTMENT INTEROFFICE MEMORANDUM TO FROM: DATE RACHELLE D. KLASSEN, CITY CLERK NIAMH ORTEGA, RECORDING SECRETARY July 24, 2014 SUBJECT: COMPLIANCE ANALYSIS AND INVESTMENT REPORTS � Attached are the Compliance Analysis and Investment Reports for the May 2014 which were presented and approved at the recent meeting of the Audit, Investment and Finance Committee. Please include the report on the upcoming agenda for review and acceptance by City Council. Also included are the approved minutes of the May 2014 meeting for acceptance by the City Council, and the attendance report in progress for 2014. Please feel free to contact me at Ext. 382 if you have any questions. Thank you. nmo Attachment (as noted) � (�p'+LOV ED ��t SA-• �L).l� �� S- Z$- l � .�.�,..__.�._._.� ��:�R.��r � � ��W ��rllti" -- +Clrigi�al aea� i�.e �e%vi� �itv C��ks �ffic� CITY COUNCILACJT'ION APPROVED DENTFD RECEIVED OTHER MF,ETING DATE � ^ � �� . , AYES: NOES: � A.I35F.NT: ...���'"P - A�3STAIN: VFR[FIF,D ��' r�-m — (�riginal on File with City Clcrk's Office /��\CIAIAAI/"C\�IIA11�L1 /IOTCl�A\IAI\/CCTIIAC�ITl�l111A�IIT�CC\��CI1�/1C\OVI ACCC�I lhl\/ ��T 11�AV 1'1rll�V 2014 City of Palm Desert � � . .��'F�r��:��e�F-t� :� • �i�i�r-,;Ii��f��f� r/� �1/��,1�I ECtyNOMIC COMMENTARY The intemational Monetary Fund (IMF) is forecasting U.S. economic growth of 2% in 2014, due to a weak first quarter. The ageing of the U.S. population will also slow productivity growth. The IMF believes that the U.S. economy will return to full employment by the end of 2017, with inflation remaining low. This implies that the Fed will continue to keep short-term interest rates at near zero for longer than the middle of 2015. The U.S. has finally recovered all of the jobs that were lost since the recession began in 2007. In May, employers added 217,000 jobs, surpassing the prior payroll peak in January 2008. The U.S. unemployment rate remains at 6.3°!0, the lowest level since September 2008. The new job mix is not favorable, however. The number of jobs in high-paying sectors, such as manufacturing, construction, and govemment, has declined, while the number of jobs in lower-paying sectors has increased. For example, the U.S. has 1.6 million fewer manufacturing jobs than in 2007, but 941,000 more jobs in the hospitality and food-service sectors. Consumer spending continues to be restrained by a lack of wage growth. There is presently strong global demand for U.S. Treasuries, which has pushed the 10-year U.S. Treasury Note yield down to 2.53%. Foreign buyers, led by China, are buying U.S. debt to accumulate dollars and help weaken their currencies, in order to strengthen exports. .%'au�S. P�e" a�, G'G✓tl.✓� : �` Ciry Treasurer " Certified California Municipa/ Treasurer Thousands of Dollars Month-End Book Value $ Month-End Market Value $ Paper Gain (Loss) $ Prior Year Book Variance $ Interest Earnings (W/O Cash; $ Yield-To-Maturity Weighted Maturity (Days) Effective Duration 224,854 $ 224,854 $ - $ 15,045 $ 54 $ 0.30% 1 0.00 PORTFOLIO STATISTICS 218,499 218,499 18,738 50 0.29% 1 0.00 $ 217,385 $ 217,385 $ - $ 19,442 $ 53 0.31 % 1 0.00 1 � -� �,/s�� Caaital Markets Team City Treasurer Paul S. Gibson. GC.M.T. Deputy City Treasurer Thomas W. Jeffrey, J.D., t�1.B.A. 111V@SLI11@11t Upl@CtIV@S The treasurer shall invest all public monies in a manner that ensures safety of principal; sufficient liquidity to finance the City's expenditures; and the highest yield possible after the previous two objeciives have been met. $ 220,165 $ 213,310 $ 208,660 $ 220,165 $ 213,310 $ 208,660 $ - $ - $ - $ 18,825 $ 15,125 $ 16,574 $ 46 $ 48 $ 47 0.29% 0.29% 0.28% 1 1 1 0.00 0.00 0.00 All data as of May 31, 2014 � PORTFOLIO CHARACTERISTICS May 2014 Do/lars in Thousands Maturities Market Value � < 1 M $ 186,798 Maturities Distribution < 2M - 700 < 3M _ 100 < 6M - e 80 < 1 Y " 0 60 < 2Y - �o < 3Y - 0 40 < 4Y - a 20 < 5Y - Total: $ �86�%9$ 0 <1M �2M <3M <6M <1Y <2Y <3Y <4Y <5Y Credit Quality Ratinas Market Value AAA or Aaa $ 112,150 AA or Aa - A - Unrated 97,359 Total: $ 209,509 Assets Market Value County Pooi 102,571 LAI F 49,670 WF/LAIF Bond Proceeds 25,034 City Loan to RDA 22,655 MTN - CAMP 5,097 W F/Bond Proceeds 4,482 Agencies - Total: $ 209,509 Month Citv Yield LAIF Yield Variance Jun13 0.32 0.24 0.08 Jui 0.32 0.27 0.05 Aug 0.31 0.27 0.04 Sep 0.30 0.26 0.04 Oct 0.31 0.27 0.04 Nov 0.30 0.26 0.04 Dec 028 0.26 0.02 Jan14 0.29 0.24 0.05 Feb 0.29 024 0.05 March 0.31 0.24 0.07 April 0.29 0.23 0.06 May 0.30 0.23 0.07 AA or Aa 0% Unrated 46% 4AA or Aaa 51% A 0% LAI F 24% JF/LAIF Bond Proceeds 12% i Asset Allocation County Poo 49% MTN 0% Agencie: 0% \ Performance 0.33 � :, �o m r 0.22 0.11 0.00 Junl3Jul Aug Sep Od Nov DecJanl4FebMarchApril May BLAIFYield oCityYield CITY OF PALM DESERT TREASURER'S OFFICE PAGE 2 OF 3 ' WF/Bond CAMP City Loan to Proceeds 20�o RDA 2% 11% STATEMENT OF COMPUANCE May 2014 The investment of the City of Palm Desert securities portfolio is governed by Califomia Government Code Section 53601 and by the Palm Desert Statement of Investment Policy. The City investment policy is more conservative than State law. The Palm Desert Audit, Finance, and Investment Committee, and the Palm Desert City Council review the City investment policy annually. For the month ended May 31, 2014, the City investment portfolio was in compliance with all applicable state and local laws and regulations. The City Treasurer's Office continued to pursue conservative and prudent investment strategies, based upon the stated objectives of safety, liquidity, and yield. Barring unforeseen events, the City Treasury should have sufficient cash to finance City expenditures for the ne� six months. In addition, portions of the City investment portfolia could be liquidated in order to meet any significant, unexpected cash requirements. Interactive Data Services provided the market va�ue prices for securities in the City investment portfolio. All balances are bank balances. Respectfully submitted, .r�s ��, �e..�.��- City Treasurer SUMMARY OF AUTHORIZED INVESTMENTS California Government Code City Investment Policy CA Govt Maximum Maximum Minimum Maximum Maximum Minimum % of City Code Investment Category Maturity Limit Quality Maturity Limit Quality Portfolio 53601(a) Palm Desert Bonds 5 Years No Limit - 53633 Demand De osits No Limit No Limit No Limit No Limit - 53601(b) U.S. Treasuries 5 Years No Limit 5 Years No Limit - 53601{c) CA State Debt 5 Years No Limit NotAuthorized 53601(d) CA Local Agency Debt 5 Years No Limit NotAuthorized 53601(e Federal A encies 5 Years No Limit 5 Years No �imit - 53601(t� Bankers's Acceptances 180 Days 40°l0 180 Days 40% A-1 or P-1 - 53601 g Commercial Paper 270 Days 25% A-1/P-1 270 Da s 25% A-1 or P-1 - 53601(h) Ne otiable CDs 5 Years 30% 5 Years 30% AA- or Aa3 - 53601 i Repos 1 Year No Limit 30 Da s 20% - 53601(I ) Reverse Repos 92 Days 20% Not Aufhorized 53601 ') Medium-Term Notes 5 Years 30°10 A 5 Years 30% A - 53601(k Money Market Funds 90 Days 20% AAA & Aaa 90 Days 20% AAA & Aaa 2.1 % 53601 I) Trust Indenture Debt Not Aufhorized 53601(m) Secured Bank Deposits 5 Years No Limit NotAuthorized 53601(k) Local Government AAA & Aaa AAA & Aaa Investment Pools 90 Days No Limit or Advisor 90 Days 50% (1) or Advisor 51.4% 53601(n) Mortgage-Backed 5 Years 20% A(Issuer) & Not Authorized Securities AA (Securiry) 16429.1(b} L.A.I.F. No Limit $50MM/Acct No Limit $50MM/Acct 35.7% (2) 89.2% Footnotes: (1) Maximum concentration limit for local agency ir�vestment pools, excluding bond proceeds. (2) Total does not include the City Loan to RDA, and cash. CiTY OF PALM DESERT TREASURER'S OFFICE PAGE 3 OF 3 CtTY PORTFOLlO CONCENTRATION LIMiTS May 2014 Investments CALIFORNIA ASSET MANAGEMENT PROGRAM CITY LDAN TO RDA WF/L.A.I.F. BOND PROCEEDS FEDERAL AGENCY -- COUPON LOCAL AGENCY INVESTMENT FUND WELLS FARGO CORPORATE TRUST CORPORATE MEDIUM-TERM NOTES RIVERSIDE COUNTY TREASURER TOTAL BEFORE CASH PLUS: CASH GRAND TOTAL Book Value $ 5,096,854.53 22,654,999.95 25,034,099.51 49,669,538.29 4,482, 354.57 102,570,811.02 $ 209,508,657.87 $ 15,345,219.23 $ 224,853,877.10 (1) % of Portfolio 2.27% 1 Q.Q$% 11.13% 0.00% 22.09% 1.99% 0.00% 45.62% 93.18% 6.82% 100.00% FOOTNOTE: (1) In the Citv of Palm Desert Comqrehensive Annual Financial Report ("CAFR"), both the City of Palm Desert ("City") and the City's external auditor define total investments as demand deposits, investments in various instruments, and investments held in local government investment pools. The concentration percentages shown above were calculated based on that definition. � � CITY OF PALM DESERT AND RDA SUCCESSOR AGENCY STATEMENT OF CASH TRANSACTIONS MAY 31, 2014 PERIOD #11 FY 2013-2014 110 210 211 213 214 220 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 271 272 273 275 276 277 278 279 280 281 282 GEN�RAI. TRAFFIC SAFETY GAS TAX MEASURE A HOUSING MITIGATION COMMUNITY DEVELOPMENT CHILD CARE PROGRAM PUBLIC SAFETY POLICE GRANTS PROP. A FIRE TAX NEW CONSTRUCT[ON TAX DRAINAGE FACILITY FEE PARK & RECREATION FACILITY FEE SIGNALIZATI(JN FIRE FACILITIES RECYCLING FUND ENERGY INDEPENDENCE PROGRAM AIR QUALITY MGMT. AB2766 CITY-WIDE BUSINESS PROMOTIONS AIPP MAINTENANCE GOLF COURSE MAINTENANCE AQUATiC CENTER EL PASEO MERCHANTS ASSMT. DISTRICT ZONE 4 - PARKVIEW ESTATES ZONE 5- COOK & COUNTRY CLUB ZONE 6- HOVLEY LANE DIST. ZONE 2 - CANYON COVE/HAYSTACK ZONE 1 - PRE. PLAZA/PARKING ZONE 3 - VINEYARDS DIST. ZONE 7- WARING COURT DIST. ZONE 8- PALM GATE DIST. ZONE 9- THE GROVE DIST. ZONE 16 - PRES. PLAZA 111 Page 1 $ b8,071,883.56 129,031.30 1,270,183.96 20,662,636.92 2,418,942.14 (26,168.81) 1,488,764.23 49,073.19 2,262,753.31 646,506.09 1,911,773.04 1,182,713.86 195,542.07 921,524.04 4,345,785.59 2,512,733.23 332,493.53 1,388,272.12 43,616.22 (443.49) 76,272.44 220,936.47 (29,965.63) 156,820.81 30,275.92 26,007.84 793.62 68,768.82 62,879.28 CASH MAY 2014 �r CITY OF PALM DESERT AND RDA SUCCESSOR AGENCY STATEMENT OF CASH TRANSACTIONS MAY 31, 2014 PERIOD #11 FY 2013-2014 283 284 285 28b 287 288 289 299 301 303 304 306 307 308 309 310 311 312 314 315 351 352 353 390 391 392 393 400 416 420 425 430 436 ZONE 11 - PORTOLA PLACE �ON� 16SD - SUNDANCE ZONE- 14-K & B at F.D. ZONE 15 - CREST LANDSCAPING ZONE16-SHEPHERDLANE ALESSANDRO ALLEY SECTION 29 PDCC/COMMUNITY SRV AREA 26 AD 83-1 DEBT SRV. AD 84-1R DEBT SRV. AD 87-1 DEBT SRV. AD 92-1 SIERRA NOVA AD 94-1A BIGHORN AD 94-2 SUNTERRACE/VRNR AD 94-3 MERANO DS AD BIGHORN SERIES B DS AD 98-1 CANYONS AT BIGHORN DS SlLVER SPUR RANCH HIGHLANDS UNDERGROUNDING AD SECTION 29-2004-2 DSF CFD 91-1 INDIAN RIDGE CFD 91-1 1995 BOND 1SSUE UNIVERSITY DS PD FINAIVCING AUTHORITY-RDA DS PD FINANCtNG AUTHORITY-CITY DSPDFA-RDA/BLYTHE RDA-RIV. CO/PD FIN. AUTHORITY CAPITAL PROJECTS RESERVE CIP-ODRINANCE # 416 CIP-DRAINAGE ECONOMIC DEVELOPMENT PROJECT CIP-PARKS & REC. ART IN PUBLIC PLACES Page 2 29,272.29 106,OOZ.13 34,816.61 296,194.07 1,112,081.39 160,357.27 33,636.63 533,670.90 237,068.20 123,091.48 326,693.29 90,209.65 145,375.52 264,244.Z4 195,676.30 100,040.09 3,530,849.90 1,656,499.30 8,077,522.30 1,320,795.38 4,844,567.86 2,114,463.87 830,606.35 268,596.66 1,614,714.43 CA3H MAY 201�I � 0 C1TY OF PALM DESERT AND RDA SUCCESSOR AGENCY STATEMENT OF CASH TRANSACTIONS MAY 31, 2014 PERIOD #11 FY 2013-2014 440 441 450 451 4S2 456 462 463 464 466 467 468 469 480 483 510 520 521 530 575 576 610 620 702 703 841 842 850 851 853 854 860 861 CtP-SIGNALIZATION GQI�F C�URS� CAP1Tt�l, CIP-BUILDINGS CIP PROPERTIES RDA/C1TY CIP-BUILDINGS-LIBRARY TOWN CENTER PARKING LOT AD 98-1 CANYONS BIGHORN AD 94-2 SUNTERRACE/VARNER AD 94-3 MERANO CP SILVER SPUR RANCH HIGHLANDS UNDERGROUNDING UNIVERSITY ASSESSMENT 29 - 2004-02 CFD-91-1 [NDIAN RIDGE CIP-BIGHORN SERIES "B" PD OFFICE COMPLEX ENT DESERT WILLOW GOLF COURSE PALM DESERT REC FAC.CORP. EQU(PMENT REPLACEMENT RES LIABILITY SELF INSURANCE RETIREE HEALTH SINK FUND TRUST-DEPOSITS TRUST-AD 81-1 PD LIBRARY RDA SUCCESSOR AGENCY RDA-PDFA & BLYTHE RDA-RIV. CO-FIN. AUTHORITY RDA-PROJECT AREA #1 RDA-PROJECT AREA #2 , RDA-PROJECT AREA #3 RDA-PROJECT AREA #4 RDA-DEBT SERVICE PROJECT #1 RDA-DEBT SERVICE PROJECT #2 Page 3 130,667.38 2,827,413.92 Z,363,091.29 14,375.28 542,255.11 178,921.49 586.44 20.36 21,291,305.65 502,074.69 3,819,179.76 457,214.35 259,918.13 5,526,547.38 4,336,381.49 1,717,494.54 13,962,913.90 270,664.43 i .:: 1 . :: CASH MAY 2014 0 CITY OF PALM DESERT AND RDA SUCCESSOR AGENCY STATEMENT OF CASN TRANSACTIONS MAY 31, 2014 PERIOD #11 FY 2013-2014 863 RDA-DEBT SERV[CE PRO)ECT #3 864 RDA-D6BT SECtVICE PROJECT #4 870 HOUSING 871 PALM DESERT HOUSING AUTH. 872 COUNTRY CLUB ESTATES, INC 873 HOUSING ASSEST FUND TOTAL ALL FUNDS INACTIVE: CITY-IRC/REGULAR INVESTMENTS-LAIF CITY-IRC/CUSTODIAN -BNY/RIV. CTY INV./CAMP CITY-IOC/DEF COMP,TRUST,RESERVE -"102" RDA-SUCCESOR/REGULAR INVESTMENTS-LAIF RDA SUCCESSOR-IRC TRUST INVESTMENT PRINC[PAL/-RIV.CTNY [NV./CAMP RDA SUCCESSOR/TRUST-("102° IN FD 703) LIB-IOC/CHECKING,TRUST (FD 702) OC-IOC/CHECKING,TRUST (FD 510) DW-IOC/PETTY CASH/CASH REG (FD 520) DW-lOC/REGULAR INVESTMENTS DW-IOC/CHECKING,SAVINGS PDREC-[OC/PETTY CASH/CASH REG.(FD 521) PDREGIOC/CHECKING HSG-IOC/PETTY CASH ONLY (FD 871) HSG-IOC/PDHA CHECKING& RPM CHECING -UNION BK HSG-INVEST-CAMP HSG-lOC/LAIF-CAP.871-X-102-0201 Page 9 (653,699.19) 22,017,258.83 10,724,086.33 $ 3 9,444,240.72 49,669,538.29 107,659,881.11 41,545,582.63 17,002,999.66 3,390,366.84 107,884,740.65 17,000.00 7,783.77 432,430.58 259,918.13 1,800.00 3,626,027.86 0.01 11,483,063.17 CASH MAY 2014 CtTY OF PALM DESERT AND RDA SUCCESS4R AGENCY STATEMENT OF CASH TRANSACTIONS MAY 31, 2014 PERIOD #11 FY Z013-2014 TO'1`AL 1NAGTIVE �� CITY HSG AUTHORITY - FUND 871-X-101-0000 RDA SUCCESSOR AGENCY PD LIBRARY OFFICE COMPLEX DESERT WILLOW HOUSING ASSET FUND 873-X-101-0000 ACT[VE CASH IN CHECKING ACCOUNTS CITY-PETTY CASH,CASH REGISTER TOTAL ACTIVE TOTAL ALL CASH $ 342,981,132.70 $ (7,399,585.59) $ 6,906,367.79 $ 2,409,969.73 $ - $ 3,819,179.76 $ - $ 10,724,086.33 16,460,018.02 3,050.00 $ 16,463,068.OZ $ 359,444,200.72 NOTE: ABOVE IS THE FINAL STATEMENT OF CASH TRANSACTIONS, WHICH INCLUDES ACTIVE CASH, INACTIVE CASH, AND CASH WITH FISCAL AGENTS. 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