Title
Recommendation to Accept the Investment Report for the Quarter Ending June 30, 2017. [City Council and SACIC] (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Recommendation to Accept the Investment Report for the Quarter Ending June 30, 2017
BACKGROUND
Each quarter of the fiscal year, an Investment Report is provided to the City Council for review, per the Investment Policy. Attached is the Investment Report for the fiscal quarter ending June 30, 2017, which includes detailed information on the City's cash and investments. This report reflects the Council direction given on February 21, 2017 to divest from Wells Fargo investments. Prior to June 30, 2017, the City held three Wells Fargo Medium Term Notes, which were sold in April by Chandler and in June by PFM, resulting in an overall loss of $2,272.95.
DISCUSSION
The investment report includes all cash and investments as summarized in the nine categories listed below as of June 30, 2017. The City utilizes U.S. Bank as its third-party custodian for safekeeping of all investments with the exception of investments held by Bond Trustees and several Certificates of Deposit purchased through Bank of Marin. The City also utilizes the Local Agency Investment Fund (LAIF) as a money market fund administered by the State Treasurer. LAIF has many governmental agency participants and holds securities through its own administrator. Investments held by Bond Trustees are administered in accordance with individual bond indentures.
As of June 30, 2017, the investment portfolio average yield (before adjustments for changes in market value) was 1.58%, which is higher than the rate for two-year U.S. Treasury bills at 1.38 % and the LAIF average monthly rate of 0.98%.
The divestment of Wells Fargo securities, per City Council direction given in February, took place in the last quarter of Fiscal Year 2016-17 as outlined in chart below. The proceeds f...
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