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09. MARCH 31, 2016CITY OF EASTVALE CITY COUNCIL STAFF REPORT ITEM 6.4 DATE: MAY 11, 2016 TO: HONORABLE MAYOR AND COUNCILMEMBERS FROM: JAMES R. RILEY, INTERIM FINANCE DIRECTOR SUBJECT: TREASURER’S REPORT – QUARTER ENDED MARCH 31, 2016 RECOMMENDATION: RECEIVE AND FILE THE CITY TREASURER’S REPORT. BACKGROUND In accordance with Resolution 11-02, City of Eastvale’s Investment Policy, adopted January 12, 2011, the City Treasurer is required to submit a quarterly treasurer’s report to the City Council. The report shall include types of investments, investment ratings, institutions involved, dates of purchases, dates of maturity, amount of deposits or cost of the security, current market value of the securities, interest rates, investment fund balances and a statement that there are sufficient funds to meet the City’s cash obligations. DISCUSSION There are two schedules which will allow Council to review the total cash available to the City and to review the types of investments that the City of Eastvale holds and the pertinent details of those investments. Schedule 1, Schedule of Investments, includes a breakdown of the City’s investments by “Active” or “Inactive” Deposits. “Active Deposits” are those accounts which receive revenues, whereas “Inactive Deposits” are available for use but are not earning revenues. Moreover, the City’s investments are presented at par value (face value), book value, and market value and with all supplemental information as required by the City’s investment policy. Schedule 2, Dash Board Report Card, consists of four sections: I. Cash Flow – This section compares the Active and Inactive Deposits at June 30 for the prior two fiscal years and the three months for the current quarter. Additionally, this section shows the change in Active Deposits from each of the compared periods. II. Liquidity Calculation – Liquidity is amount of capital that is available for investment or spending. Liquidity is determined by means of a calculation using average monthly cash balances and expenditures reduced by reserve requirements. III. Portfolio Diversification – This section reflects the diversification of the City of Eastvale’s portfolio by both type of instrument and length of maturity. CITY OF EASTVALE CITY COUNCIL STAFF REPORT ITEM 6.4 IV. Portfolio Performance Measures – The section gives a comparison of the City’s investment yield for the prior two fiscal years and the end of the quarter. This section also compares budget to actuals in the area of interest earned. The City of Eastvale’s Schedule of Investments is in compliance with the City’s Investment Policy. The City has sufficient funds to meet its expenditure requirements for the next six months. Total cash and investments at March 31, 2016 is $51,643,380 (book value). Interest income earned through March 31, 2016 is $114,333, which surpasses the 2015-16 budgeted amount for interest of $48,070. FISCAL IMPACT - None STRATEGIC PLAN IMPACT Goal 1: Establish a solid fiscal foundation for the City ATTACHMENTS 1. Schedule of Investments – March 31, 2016 2. Dash Board Report Card – March 31, 2016 Prepared by: James R. Riley, Interim Finance Director Reviewed by: Michele Nissen, City Manager Reviewed by: John Cavanaugh, City Attorney Book Value (Fair Value) Par Price @ Market Accrued Purchase Maturity Institution Value Cost Value Interest Yield Date Date ACTIVE DEPOSITS Money Market Accounts: Citizens Business Bank - Money Market 5,172,522.57$ 5,172,522.57$ 5,172,522.57$ 0.350%N/A N/A Total Money Market 5,172,522.57$ 5,172,522.57$ 5,172,522.57$ 0.350% Pooled Investment Accounts: Local Agency Investment Fund 25,781,635.97$ 25,781,635.97$ 25,760,674.55$ 0.506%N/A N/A Total Pooled Investment 25,781,635.97$ 25,781,635.97$ 25,760,674.55$ 0.506% Certificates of Deposit: Capital One NA McLean VA CD 248,000.00$ 248,000.00$ 250,668.48$ 88.95$ 1.650%09/16/15 09/24/18 Discover Bk Greenwood DE CD 248,000.00$ 248,000.00$ 248,746.48$ 48.52$ 1.200%09/18/13 09/26/16 Sallie Mae Bank Salt Lake City UT CD 248,000.00$ 248,000.00$ 248,915.12$ 789.73$ 1.050%12/04/13 12/12/16 Flushing Bank NY CD 249,000.00$ 249,000.00$ 249,146.91$ 80.32$ 0.750%12/11/13 06/30/16 Bank Baroda New York NY CD 248,000.00$ 248,000.00$ 248,905.20$ 504.17$ 1.000%01/14/14 01/17/17 GE Cap Ret Bk Draper UT CD 248,000.00$ 248,000.00$ 248,709.28$ 329.07$ 1.050%02/10/14 02/17/17 Goldman Sachs New York NY CD 248,000.00$ 248,000.00$ 248,729.12$ 84.90$ 1.050%03/11/14 03/20/17 Community & South Atlanta GA CD 249,000.00$ 249,000.00$ 249,002.49$ 591.88$ 0.500%04/02/14 04/08/16 Key Bank CD Cleveland OH CD 249,000.00$ 249,000.00$ 249,480.57$ 681.68$ 0.600%04/02/14 10/17/16 Private Bank & TC Chicago Ill CD 248,000.00$ 248,000.00$ 248,885.36$ 1,131.58$ 1.000%04/02/14 04/17/17 Citizens State Bank CD Okemah OK CD 249,000.00$ 249,000.00$ 249,019.92$ 63.48$ 0.500%05/06/14 05/12/16 Barclays Bank CD Wilmington DE CD 248,000.00$ 248,000.00$ 248,788.64$ 1,041.73$ 1.100%05/06/14 05/15/17 Synovus Bank CD Columbus GA CD 249,000.00$ 249,000.00$ 249,505.47$ 702.87$ 0.750%05/06/14 11/15/16 Home Bank CD Lake Mary FL CD 249,000.00$ 249,000.00$ 249,253.98$ 240.96$ 1.200%03/10/15 03/29/18 Ally Bk Midvale UT CD 248,000.00$ 248,000.00$ 248,672.08$ 35.38$ 1.050%03/17/15 09/26/17 Amex Centurion Salt Lake City UT CD 248,000.00$ 248,000.00$ 248,250.48$ 1,102.78$ 1.050%06/09/15 06/18/18 Total Certificates of Deposit 3,974,000.00$ 3,974,000.00$ 3,984,679.58$ 7,518.00$ ACTIVE DEPOSITS TOTAL 34,928,158.54$ 34,928,158.54$ 34,917,876.70$ 0.536% INACTIVE DEPOSITS Checking Account: Citizens Business Bank - Checking 16,715,221.40$ 16,715,221.40$ 0.000%N/A N/A Total 16,715,221.40$ 16,715,221.40$ 0.000% INACTIVE DEPOSITS TOTAL 16,715,221.40$ 16,715,221.40$ GRAND TOTAL CASH 51,643,379.94$ 51,633,098.10$ ________________________________ James R. Riley, Interim Finance Director 5/4/2016 City of Eastvale Schedule of Investments As of March 31, 2016 Per Government Code requirements, the Investment Report is in compliance with the City of Eastvale's Investment Policy, and there are adequate funds available to meet budgeted and actual expenditures for the next six months. JUNE JUNE JANUARY FEBRUARY MARCH FY 2013-14 FY 2014-15 FY 2015-16 FY 2015-16 FY 2015-16 I. CASH FLOW ACTIVE DEPOSITS Book Value Price @ Cost Citizen's Business Bank - Money Market 2,910,040.37$ 2,920,222.08$ 5,169,448.77$ 5,170,985.44$ 5,172,522.57$ LAIF 20,671,336.74$ 25,721,881.36$ 25,781,635.97$ 25,781,635.97$ 25,781,635.97$ Treasury Bills -$ -$ -$ -$ -$ CD - Ally Bk Midvale Utah CD 249,000.00$ -$ -$ -$ -$ CD - ST Bk of India CD New York NY CD 248,000.00$ 248,000.00$ -$ -$ -$ CD - GE Cap Bk Salt Lake City UT CD 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ -$ CD - Discover Bk Greenwood DE CD 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ CD - Beal Bank USA Las Vegas NV CD 249,000.00$ -$ -$ -$ -$ CD - Firstbank PR Santurce CD 249,000.00$ 249,000.00$ -$ -$ -$ CD - Flushing Bank NY CD 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ CD - Sallie Mae Bank Salt Lake City UT CD 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ CD - Rollstone Bank Fitchburg MA CD 249,000.00$ 249,000.00$ -$ -$ -$ CD - Bank Baroda New York NY 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ CD - BMW Bank NA Salt Lake City UT 249,000.00$ 249,000.00$ 249,000.00$ -$ -$ CD - Doral Bank Catano PR 249,000.00$ -$ -$ -$ -$ CD - GE Cap Ret Bk Draper UT 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ CD - Goldman Sachs New York NY 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ CD - Community & South Atlanta GA CD 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ CD - Key Bank CD Cleveland OH CD 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ CD - Private Bank & TC Chicago Ill CD 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ CD - Citizens State Bank CD Okemah OK CD 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ CD - Barclays Bank CD Wilmington DE CD 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ CD - Synovus Bank CD Columbus GA CD 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ CD - Home Bank CD Lake Mary FL CD -$ 249,000.00$ 249,000.00$ 249,000.00$ 249,000.00$ CD - Ally Bk Midvale UT CD -$ 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ CD - Amex Centurion Salt Lake City UT CD -$ 248,000.00$ 248,000.00$ 248,000.00$ 248,000.00$ CD - Capital One NA Mclean VA CD -$ -$ 248,000.00$ 248,000.00$ 248,000.00$ ACTIVE DEPOSIT TOTALS 28,552,377.11$ 33,611,103.44$ 35,422,084.74$ 35,174,621.41$ 34,928,158.54$ INACTIVE DEPOSITS Citizen's Business Bank - Checking 5,824,630.65$ 12,588,135.32$ 17,394,558.48$ 17,552,947.13$ 16,715,221.40$ INACTIVE DEPOSITS TOTALS 5,824,630.65$ 12,588,135.32$ 17,394,558.48$ 17,552,947.13$ 16,715,221.40$ GRAND TOTAL CASH 34,377,007.76$ 46,199,238.76$ 52,816,643.22$ 52,727,568.54$ 51,643,379.94$ Change in Active Deposits from Prior Period 13,522,063.89$ 5,058,726.33$ (223,723.10)$ (247,463.33)$ (246,462.87)$ II. LIQUIDITY CALCULATION Average Cash Balance 29,386,091.19$ 39,026,258.28$ 50,508,698.86$ Six Month Cash Reserve 9,264,117.98$ 9,126,291.23$ 11,633,376.52$ Available Investment Liquidity 20,121,973.21$ 29,899,967.05$ 38,875,322.34$ City of Eastvale Dash Board Report Card As of March 31, 2016 JUNE JUNE JANUARY FEBRUARY MARCH FY 2013-14 FY 2014-15 FY 2015-16 FY 2015-16 FY 2015-16 City of Eastvale Dash Board Report Card As of March 31, 2016 III. PORTFOLIO DIVERSIFICATION DIVERSIFICATION BY INSTRUMENT Money Market 10.19%8.69%14.59%14.70%14.81% LAIF 72.40%76.53%72.78%73.30%73.81% Treasury Bills 0.00%0.00%0.00%0.00%0.00% Certificates of Deposit 17.41%14.78%12.62%12.00%11.38% 100.00%100.00%100.00%100.00%100.00% DIVERSIFICATION BY MATURITY Less Than 90 Days 82.59%85.95%90.76% Six Months (26 Weeks)0.00%0.74%0.71% One Year (52 Weeks)1.74%11.09%7.11% Two Years (104 Weeks)6.10%2.22%1.42% Three Years (156 Weeks)9.57%0.00%0.00% 100.00%100.00%100.00% IV. PORTFOLIO PERFORMANCE MEASURES Yield at Cost Month 0.339%0.388%0.536% Annual Interest Budget 25,129.00$ 33,050.00$ 48,070.00$ 48,070.00$ 48,070.00$ Money Market 7,966.11$ 10,194.71$ 1,437.13$ 1,536.67$ 1,537.13$ Treasury Bills -$ -$ -$ -$ -$ Certificate of Deposits 17,323.26$ 42,104.83$ 3,849.16$ 3,159.47$ 484.70$ LAIF 46,588.16$ 54,335.30$ -$ -$ 29,760.15$ LAIF Mark to Market 6,175.57$ 9,670.89$ -$ -$ -$ Total Period Interest Earned 78,053.10$ 116,305.73$ 5,286.29$ 4,696.14$ 31,781.98$ Total YTD Interest Earned 78,053.10$ 116,305.73$ 77,855.12$ 82,551.26$ 114,333.24$ Over/(Under) Annual Budget 52,924.10$ 83,255.73$ 29,785.12$ 34,481.26$ 66,263.24$ % of Annual Budget 310.610%351.908%161.962%171.731%237.847% Month Citizen's LAIF CD's Total Cash By Month Expenditures By Month July 18,711,021$ 25,737,073$ 4,969,000$ 49,417,095$ 1,021,986$ August 17,148,403$ 25,737,073$ 4,969,000$ 47,854,476$ 700,377$ September 18,310,713$ 25,737,073$ 4,969,000$ 49,016,786$ 3,154,192$ October 18,106,710$ 25,757,796$ 4,969,000$ 48,833,506$ 2,068,763$ November 17,517,729$ 25,757,796$ 4,969,000$ 48,244,526$ 1,283,977$ December 20,053,190$ 25,757,796$ 4,720,000$ 50,530,986$ 740,490$ January 22,564,007$ 25,781,636$ 4,471,000$ 52,816,643$ 2,889,303$ February 22,723,933$ 25,781,636$ 4,222,000$ 52,727,569$ 2,106,903$ March 21,887,744$ 25,781,636$ 3,974,000$ 51,643,380$ 2,152,143$ April 22,136,744$ 25,811,396$ 3,725,000$ 51,673,140$ 2,382,873$ May 22,385,744$ 25,811,396$ 3,476,000$ 51,673,140$ Average 2,382,873$ June 22,634,744$ 25,811,396$ 3,227,000$ 51,673,140$ Cash Balance 2,382,873$ (2)244,180,682.11$ (2)309,263,704.26$ (2)52,660,000.00$ 606,104,386.37$ (a)50,508,698.86$ (1)23,266,753.04$ Average 20,348,390.18$ 25,771,975.36$ 4,388,333.33$ 50,508,698.86$ 1,938,896.09$ Six Month Cash Reserve (3)11,633,376.52$ Avg Monthly Cash Balance (a)50,508,698.86$ Less 50% Six Month Cash Reserve (3)(11,633,376.52)$ Available Investment Liquidity 38,875,322.34$ Notes: (1)Actual/Forecast Cash Budget FY 2015/16 (2)Monthly Bank Reconciliations (3)Six Month Cash Reserve based on FY 15/16 Actual/Forecasted Annual Expenditures divided by two. MONTHLY CASH BALANCES City of Eastvale Liquidity Calculation Based on Fiscal Year 2015-2016 Actual/Cash Budget Forecast As of March 31, 2016