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12. JUNE 30, 2016CITY OF EASTVALE ITEM 6.:33:] CITY COUNCIL STAFF REPORT MEETING DATE: AUGUST 24, 2016 TO: HONORABLE MAYOR AND COUNCILMEMBERS FROM: JAMES R. RILEY, INTERIM FINANCE DIRECTOR SUBJECT: TREASURER'S REPORT — QUARTER ENDED JUNE 30, 2016 RECOMMENDATION: RECEIVE AND FILE THE CITY TREASURER'S REPORT BACKGROUND In accordance with the City of Eastvale's Investment Policy, adopted May 11, 2016, the City Treasurer is required to submit a quarterly treasurer's report to the City Council. The report shall include types of investments, credit 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 as to whether investments are in compliance with the Investment Policy and whether there are sufficient funds to meet the City's cash obligations for the next six months. DISCUSSION The 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. Detail reports for the Morgan Stanley Investment Portfolio and the PFM Managed Investment Portfolio, with all supplemental information required by the City's investment policy, are included in the report. The Dash Board Report Card, consists of two sections: L Portfolio Diversification — This section reflects the diversification of the City of Eastvale's portfolio by both type of instrument and length of maturity. II. Portfolio Performance Measures — This section 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 June 30, 2016 is $54,456,481 (book value). Interest income earned through June 30, 2016 is $223,129, which surpasses the 2015-16 budgeted amount for interest of $48,070. FISCAL IMPACT - None CITY OF EASTVALE ITEM 6.:33:] CITY COUNCIL STAFF REPORT STRATEGIC PLAN IMPACT Goal 1: Establish a solid fiscal foundation for the City ATTACHMENTS 1. Schedule of Investments — June 30, 2016 2. Dash Board Report Card — June 30, 2016 3. Morgan Stanley Investment Portfolio — June 30, 2016 4. PFM Managed Investment Portfolio — June 30, 2016 Prepared by: James R. Riley, Interim Finance Director Reviewed by: Michele Nissen, City Manager Reviewed by: John Cavanaugh, City Attorney City of Eastvale Schedule of Investments ek As of June 30, 2016 Book Value (Fair Value) Par Price @ Market Institution Value Cost Value Yield ACTIVE DEPOSITS Money Market Accounts: Citizens Business Bank - Money Market $ 1,175,579.82 $ 1,175,579.82 $ 1,175,579.82 0.350% First American Govt Oblig Fund - US Bank $ 1,818,660.03 $ 1,818,660.03 $ 1,818,660.03 0.001% Total Money Market $ 2,994,239.85 $ 2,994,239.85 $ 2,994,239.85 0.138% Pooled Investment Accounts: Local Agency Investment Fund $ 12,811,396.12 $ 12,811,396.12 $ 12,814,228.21 0.576% Total Pooled Investment $ 12,811,396.12 $ 12,811,396.12 $ 12,814,228.21 0.576% Morgan Stanley Investment Portfolio Certificates of Deposit $ 3,227,000.00 $ 3,227,000.00 $ 3,239,545.09 0.950% Total Morgan Stanely Investments $ 3,227,000.00 $ 3,227,000.00 $ 3,239,545.09 0.950% PFM Managed Investment Portfolio: U.S. Treasury Bond/ Note Federal Agency Discount Note Federal Agency Bond/ Note Corporate Note Total PFM Managed Investments ACTIVE DEPOSITS TOTAL INACTIVE DEPOSITS $ 4,530,000.00 $ 4,617,846.49 $ 4,647,816.28 0.910% $ 6,030,000.00 $ 6,028,690.16 $ 6,028,767.23 0.290% $ 15,400,000.00 $ 15,483,091.00 $ 15,537,703.00 0.720% $ 3,865,000.00 $ 4,010,432.85 $ 4,025,271.88 1.860% $ 29,825,000.00 $ 30,140,060.50 $ 30,239,558.39 0.810% $ 48,857,635.97 $ 49,172,696.47 $ 49,287,571.54 0.499% Checking Account. Citizens Business Bank - Checking $ 5,283,784.33 $ 5,283,784.33 0.000% Total $ 5,283,784.33 $ 5,283,784.33 0.000% INACTIVE DEPOSITS TOTAL GRAND TOTAL CASH $ 5,283,784.33 $ 5,283,784.33 $ 54,456,480.80 $ 54,571,355.87 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. James R. Riley Interim Finance Director 8/3/2016 City of Eastvale Dash Board Report Card As of June 30, 2016 I. PORTFOLIO DIVERSIFICATION DIVERSIFICATION BY INSTRUMENT Money Market 6.09% LAIF 26.05% Certificates of Deposit 6.56% U.S. Treasury Bond/ Note 9.39% Federal Agency Discount Note 12.26% Federal Agency Bond/ Note 31.49% Corporate Note 8.16% 100.00% DIVERSIFICATION BY MATURITY Less Than 90 Days 44.91 % Six Months (26 Weeks) 1.52% One Year (52 Weeks) 2.52% Two Years (104 Weeks) 16.79% Three Years (156 Weeks) 18.34% Four Years (208 Weeks) 4.67% Five Years + 11.25% 100.00% II. PORTFOLIO PERFORMANCE MEASURES Yield at Cost Month 0.499% Annual Interest Budget $ 48,070.00 Money Market $ 15,384.14 LAIF $ 102,246.40 LAIF Mark to Market $ - Certificate of Deposits $ 44,519.52 U.S. Treasury Bond/ Note $ 41,625.00 Federal Agency Discount Note $ - Federal Agency Bond/ Note $ 19,354.16 Corporate Note $ - Total YTD Interest Earned $ 223,129.22 Over/(Under) Annual Budget $ 175,059.22 % of Annual Budget 464.176% MORGAN STANLEY INVESTMENT PORTFOLIO CLIENT STATEMENT I For the Period June 1-30, 2016 Morgan Stanley Page 4 of 10 Account Summary Active Assets Account CITY OF EASTVALE CIO JAMES R RILEY CHANGE IN VALUE OF YOUR ACCOUNTS (includes accrued interest) This Period This Year _ (6/1116-6/30/16) (1/l/16-6130/16) TOTAL BEGINNING VALUE $3,496,621.38 $4,726,440.43 Credits ._ T Debits (252,721.98) (1,515,299.01) Security Transfers Net Credits/Debits/Transfers $(252,721.98) $(1,515,299.01) Change in Value 2,959.31 35,717.29 TOTAL ENDING VALUE $3,246,858.71 $3,246,858.71 ASSET ALLOCATION lincludes accrued interest) _ Market Value Percentage Fixed income & Preferreds $3,246,858.71 100.00 TOTAL VALUE S3,246,858.71 100.00% FDiC rules apply and Bank Deposits are eligible for FDIC insurance but are not covered by SIPC. Cash and securities (including MMFs) are eligible for SIPC coverage. See Expanded Disclosures. Values may include assets externally held, which are provided to you as a courtesy, and may not be covered by SIPC. For additional information, refer to the corresponding section of this statement. CHANGE iN VALUE OVER TIME The display of market value (total account value) and net invested capital (total amount invested mires total withd(awn), demonstrates the impact of deposits and withdrawals. 5.00 4.18 N 3.36 .;, 2.54 1.72 0.90 SEP 2013 DEC 2013 DEC 2014 DEC 2015 JUN 2016 — Total Market Value --- Net invested Capital Since 09/30/13 This graph does not reflect corrections to Net Invested Capital or Market Value made subsequent to the dates depicted. It may exclude transactions in Annuities or positrons where we are not the custodian, which could delay the reporting of Market Value or affect the Net invested Capital. Fixed Income & Preferreds This asset allocation represents holdings on a trade date basis, and projected settled Cash/ BDP and MMF balances. These classifications do not constitute a recommendation and may differ from the classification of instruments for regulatory or tax purposes. != MaA Q 0 N Q a 0 0 u, M a 0 CLIENT STATEMENT I For the Period June 1-30, 2016 Account Summary BALANCE SHEET (^ includes accrued interest) Active Assets Account Last Period Ti1is Period (as of 5/31/16) (as of 6/30/16) Certificates of Deposit ^ $3,496,621.38 $3,246,858.71 Total Assets $3,496,621.38 $3,246,858.71 Total Liabilities (outstanding balance) — — TOTAL VALUE $3,496,621.38 $3,246,858.71 INCOME AND DISTRIBUTION SUMMARY This Period This Year (6/1/16.6/30/16) _ (1/1/16-6f30/16) Interest $3,721.98 $22,298.93 Total Taxable Income And Distributions $3,721.98 $22,298.93 Total Tax -Exempt Income — TOTAL INCOME AND DISTRIBUTIONS $3,721.98 $22,298.93 Taxable and tax exempt income classifications are based on the characteristics of the underlying securities and not the taxable status of the account. PERSONAE RETIREMENT EDUCATION TRUST BUSINESS ACCOUNTS ACCOUNTS ACCOUNTS ACCOUNTS ACCOUNTS CASH FLOW Morgan Stan [ey CITY OF EASiVALE CIO JAMES R RILEY Page 5 of 10 This Period This Year (6/1/16-6130/16) (1/1116-6/30/16) OPENING CASH, BDP, MMFs — $0.08 Sales and Redemptions 249,000.00 1,493,000.00 Income and Distributions 3,721.98 22,298.93 Total Investment Related Activity $252,721.98 $1,515,298.93 Electronic Transfers -Debits (252,721.98) (1,515,299.01) Total Cash Related Activity $(252,721,98) $(1,515,299.01) Total Card/Check Activity _ CLOSING CASH, BDP, MMF3 — GAINALOSS) SUMMARY Unrealized Realized This Period Realized This Year Inception to Date (6/1/16-6f30116) (1/1116-6/30/16) (as of 6/30/16) Short -Term Gain — — $3,491.84 Long -Term Gain -- -- 9,053.25 TOTAL GAINALOSS) — — $12,545.09 The Gain/(Loss) Summary, which may change due to basis adjustments, is provided for informational purposes and should not be used for tax preparation. Refer to Gainl(Loss) in the Expanded Disclosures. a CLIENT STATEMENT I For the Period June 1-30, 2016 Morgan Stanley Page 6 of 10 Active Assets Account CITY OF F-ASTVALE Account Detail C/O JAMES R RILEY Investment Objectivesl: Income, Aggressive Income Brokerage Account t Inform us if your investment objectives, as defined in the Expanded Disclosures, change. HOLDINGS This section reflects positions purchasedlsold on a trade date basis. "Market Value" and 'Unrealized Gain/(Loss), may not reflect the value that could be obtained in the market. Fixed Income securities are sorted by maturity or pre -refunding date, and alphabetically within date. Estimated Annual Income a) is calculated on a pre-tax basis, b) does not include any reduction for applicable non -US withholding taxes, c) may include return of principal or capital gains which could overstate such estimates, and d) for securities that have a defined maturity date within the next 12 months, is reflected only through maturity date. Actual income or yield may be lower or higher than the estimates. Current yield reflects the income generated by an investment, and does not reflect changes in its price. Structured Investments, identified on the Position Description Details line as "Asset Class: Struct Inv," may appear in various statement product categories. When displayed, the accrued interest, annual income and current yield for those with a contingent income feature (e.g., Range Accrual Notes or Contingent Income Notes) are estimates and assume specified accrual conditions are met during the relevant period and payment in full of all contingent interest. For Floating Rate Securities, the accrued interest, annual income and current yield are estimates based on the current floating coupon rate and may not reflect historic rates within the accrual period. CERTIFICATES OF DEPOSIT Wig Unit Cost Socuri Description Trade Dale Face Value Ad' Unit Cost Unit Price Orig Total Cost Ad' Total Cost Unrealized Market Value Gain/(Loss) Est Ann Income Accrued Interest Current Yield % DISCOVER BK GREENWOOD DE CD 9/18/13 248,000.000 $100.000 $100.158 $248.000.00 $1.488.00 0.59 Coupon Rate 1.200%; Matures 09/26/2016; CUSIP 25467IWR7 $100,000 $248,090.00 $248,391.84 $391.84 LT $784A3 !nt_Semi-Annually Mar/Sep 25,_Yieid to Maturity _539%; Issued 09125113; Maturity Value = $248,000.00; Asset Class: Fl & Pref - - -------------------------------------------------------------------------------------------------------------- KEY BANK CD CLEVELAND OH CD 4/2/14 249,000.000 100.000 100.028 249.000.00 747.00 0.29 Coupon Rate 0.600%. Matures 10/17/2016; CUSIP 49306STUO 100.000 249,000.00 249,069.72 69.72 LT 306.14 fit Semi-Annualy Apr/0ct 16,• Yield to Mafurrty .5069 ; issued 04116114_ Maturity Value : $249,000.00,;Asset Class_FI& Pref ----------------------------------- --- - - ----------------------------------------------------------------------------- SYNOVUS BANK CD COLUMBUS GA CO 5/6/14 249,000.000 100,000 100.162 249,000.90 934.00 0.37 Coupon Rate 0.750%; Matures 11/15/2016; CUSIP 87164DELD 100.000 249,000,00 249,403.38 403.38 LT 233.43 Int. Semi -Annually MaylNov 15;_Issued 05115114, Maturity Value = $249,000.00; Asset Class: Fl &_Pref _ SALLIE MAE Bit CO SALT LAKE CiTY UT CD 12/4/13 248,000.000 100.000 100.291 248,000.00 1,302.00 0.52 Coupon Rate 1,050%; Matures 12112/2016; CUSIP 79545ORV9 100,000 248,000.00 248,721.68 721.68 LT 135.18 /at Semt-AnnuallylunlNc 11; issued 12111113; Maturity Value = $248,000.00; Asset Class: FI & Prof ----------------------------------------- ---------------------------------------------------------------------------------•----------------------------------------------- BANK BARODA NEW YORK NY CD 1/14/14 248,000.000 100.000 100.316 248,000.00 2.480.00 0.99 Coupon Rate 1.000%; Matures 01/17/20I7; CUSIP 06062AFBO 100-000 248,000.00 248,703.68 783.68 LT 1,124.17 Int. Semi -Annually lan/1uI I7; issued 01117114; Maturity Value = $248, 000.0Q• Asset Class: FI & Prof GE- AP RET SK DRAPER LIT CD 2/10/14 248,000.000 100.000 100.284 248,000.00 ----------------- --------------- 2.604.00 1.04 Coupon Rate 1,050%; Matures 02/14/2017; CUSIP 361570VR5 100.000 248,000.00 248,704.32 7D4.32 LT 980.07 Int. Semi -Annually FehlAug 14; Yield to Maturity _5939q_Issued 02114/14; Maturity Value = $248, 000.00_ Asset Class; FI & Pref --------------------- goldman sachs NEW YORK NY CD 3/11/14 248,000.000 100.000 100.320 248,000,00 ------------------------- 2,604.00 I-04 Coupon Rate 1.050%, Matures 03/20/2017, CUSIP 38147JVW9 100,000 248,000.00 24B,793.60 793.60 LT 728.83 Inc Semi -Annually MarlSep 19,;Yield to Maturity .606% Issued 03119114, Maturity Value = $248,000.00, Asset Class. Fi & Pref ------------------- ------------- ------------ -----_-__-_ ------------------------------- PRIVATEBANK &TC CHICAGO ILL CD 4/2114 248.000.000 100,000 100.383 248,000.00 -------- --------------- 2,480.00 0.99 Coupon Rate 1.000%; Matures 84/17/2017; CUSIP 74267GU14 100-000 248,000.00 248,949.84 949.84 LT 508.19 Searcy Mek at Fth t Ln Ln Ln m e 0 CLIENT STATEMENT I For the Period June 1-30, 2016 Account Detail Morgan Stanley Active Assets Account CITY OF EASTVALE CIO JAMES R RILEY Ong Unit Cost Orin Total Cost Securi -Asq lion Trade Date Face Value Ad' Unit Cost Unit Price Ad' Total Cost In' . Semi Annualy Apr/Oct 16_ YreM to Mahrrrty -.519% Issued 04/16I14_Mahlrity Value = $248,000.00. sset Class: FI re ---- --------------- - --------------------- BARCLAYS BANK CD WILMINGTON DE CD 5/6/14 24800.000 100.000 100.365 248,000.00 CaupOn Rale 1.100%; Matures 05115/2017; CUSIP 06740KGWI 100.000 248,000.00 Int. Semi Annualy May/Nov 13_ --d to Maturity. _ 682% Issued 05113114, Maturity Value-= $248,00000;_Asset Class. Ff & Prof ALLY BK MIDVALE UT CD 3/17/15 248,000 000 100.000 100.436 248,000.00 Coupon Rate 1.050%; Matures 09/26/2017; CUSIP 02OD6LPR8 100.000 248,000.00 lnt._Semi_Annualy MarlSep 26,-Yield to Maturdy .696% Issued 03/26115,_Maturrty Value = $248,000.00; Asset Class: FI & Pref---- Value bi - Page 7 of 10 Unrealized Est Ann Income Current ain/(Loss) Accrued Interest Yield % ---------------------------- 2,728.00 1.09 248.905.20 905,20 LT 355.82 249,081.28 HOMEBANK CD LAKE MARY FL CD 3/10/15 249,000.000 100.090 100.431 - 249,000.00 ----------------- Coupon Rate 1.200%; Matures 93/29/2018; CUSIP 43738AFT8 100.000 249,D00.00 25D,073.19 Interest Paid MOnlhly May 01; Yield to Maturity- 951 % Issued 03130115,• Maturity Value = ,$249,000_00, Asset Class: Fig Pref _---- - - ------------------ AMEX CENTUMON SALT LAKE CITY UT CD 6/9/15 248,000.000 100.000 100.474 248,000.00 Coupon Rate 1.550%, Matures 06/18/2018, CUSIP 02587DYTS 100.000 248,000.00 lot. Semi-AnnuallyJun/f ec 17, Yield to Maturity I.305%; Issued 06/17115,• Maturity Value = $248,000.00; Asset Class: FI & Prot CAPITAL ONE NA MCLEAN VA CD 9/16/15 248,000,000 100.000 101.408 248,000.00 Coupon Rate 1.650%; Matures 09/24/2018; CUSIP 14042RAA9 100.000 248,000.00 lot Semi -Annually MarlSep 23;-Yield to Maturity L011 X. Issued 09123115_ Maturity Value = $248 000.00, Asset Class: FI & Pref 2,604.00 1.04 1,08I.28 LT 679.30 2,988.00 1.19 1,073.19 LT 240.70 ---- ---------------- 3,844.00 1,54 249,175.52 1,175.52 LT 136.53 ---------------0--------- 1.62 251,491.84 3,491.84 ST 1.100.83 Percentage of Holdings Face Value Orig Total Cost Adi Total Cost Market Value Unrealized Gain (Loss) Est Ann Income Accrued Interest Current Yield % CERTIFICATES OF DEPOSIT 3,227,000.000 $3,227,00D.00 $30,895.00 0.95% $3,227,000.00 $3,239,545.09 $9,053.25 LT $7,313.62 $3,491.14 ST TOTAL CERTIFICATES OF DEPOSIT 100.00% $3,246.858.71 (includes accrued interest) Percentage of Holdings Unrealized Est Ann Income Current Total Cost Market Value Gain ss Accrued Interest Yeld % TOTAL MARKET VALUE $3.227,000.00 $3,239,545,09 $9.053.25 LT $30,895.0D 0.95% $3,491.84 ST $7,313.62 TOTAL VALUE (includes accrued interest) 1D0.00% $3.246,85811 Unrealized Gainl(Loss) totals only reflect positions that have both cost basis and market value information available. Cash, MMF, Deposits and positions stating 'Please Provide' are not included. CLIENT STATEMENT Account Detail For the Period June 1-30, 2016 ALLOCATION OF ASSETS i^includes aeerued interest) Morgan Stanley Active Assets Account CITY OF EASTVALE CIO JAMES R RILEY Page 8 of 10 Fred Income & Annuities & Structured Cash Equities Preferred Securities Altemahves insurance Investments Other Certificates of Deposit ^ — — $3.246,858.11 -- - - TOTALALLOCATION OF ASSETS ^ - - $3,246.858.71 - - - - ACTIVITY CASH FLOW ACTIVITY BY DATE Activity Settlement Date 6/1 Date Activity Type Interest Income Description HOMEBANK CD 1200 18MH29 Comments CUSIP: 43738AFTS Quantity Price Credits/(Debits) 6/2 Withdrawal BRANCH CHECK PAID TO CITY OF EASTVALE $253.78 6/13 Interest Income SALLIE MAE BK CD 1050 16DE12 CUSIP: 79545ORV9 (253.78) 6/14 Withdrawal BRANCH CHECK PAID TO CITY OF EASTVALE 1,305.57 6/15 Interest Income FLUSHING BK NY CD 0750 16JN30 CUSIP: 34387AA85 (1,305.57) 6/16 Withdrawal BRANCH CHECK PAID TO CITY OF EASTVALE 158.61 6/17 Interest Income AMEX CENTURION 1550 18JN18 CUSIP: 02587DYT9 (158.61) 6120 Withdrawal BRANCH CHECK PAID TO CITY OF EASTVALE 1,927.27 6/30 Interest Income FLUSHING BK NY CD 0750 16JN30 CUSIP: 34387AA85 (1,927.27) 6/30 6/30 Redemption FLUSHING BK NY CD 0750 16JN30 REDEMPTION OF MATURED BOND 76.75 249,000.000 100.0000 249,000.00 CUSIP: 34387AA85 6/30 Withdrawal BRANCH CHECK PAID TO CITY OF EASTVALE (249 076,75) NET CREDITS/(DEBITS) S0 00 MONEY MARKET FUND (MMF) AND BANK DEPOSIT PROGRAM ACTIVITY Activity Date Activity Type Descri tion 6/1 Automatic Investment BANK DEPOSIT PROGRAM Credits/(Debits) 6/2 Automatic Redemption BANK DEPOSIT PROGRAM $253.78 6/13 Automatic investment BANK DEPOSIT PROGRAM .78 (253253. 78 ) 6/14 Automatic Redemption BANK DEPOSIT PROGRAM 1 57 6/15 Automatic Investment BANK DEPOSIT PROGRAM .57 (1,3050557 ) 6/16 Automatic Redemption BANK DEPOSIT PROGRAM 158.61 6/17 Automatic Investment BANK DEPOSIT PROGRAM (158 61} 6/20 Automatic Redemption BANK DEPOSIT PROGRAM 1,927.2761 {1,927.27} NET ACTIVITY FOR PERIOD $0.00 i CLIENT STATEMENT I For the Period June 1-30, 2016 Account Detail REALIZED GAIN/(LOSS) DETAIL LONG-TERM GAINALOSS) Dale Date Morgan Stanley Active Assets Account CITY OF EASTVALE C/O JAMES R RILEY Sales OrigfAdj Realized Page 9 of 10 Long -Term This Period $249,000.00 5249,000.00 $0.00 Long -Term Year to Date $1,493,000.00 $1,493,000.00 $0.00 Net Realized GaiN(Loss) This Period $249,000.00 $249,000.00 $0.00 Net Realized Gain/(Loss) Year to Date $1.493.000.00 $1,493,000.00 SO.00 Treasury regulations require that we report on Form 1099-B a) adjusted cost basis on the safe of covered securities acquired on or after ]till] (or the applicable date for the type of security), b) the gain or loss as either long-term or short -tern, and c) basis adjustments on covered securities due to wash sales, certain corporate actions and transfers by gift or inheritance. This section may not reflect all the basis adjustments required when filing your tax return. Refer to the Expanded Disclosures. MESSAGES Important Changes to the Bank Deposit Program t' As previously communicated, Morgan Stanley Smith Barney LLC (Morgan Stanley) will be making important changes to the Bank Deposit Program (BDP). Effective August 10, 2016 (instead of July 8, 2016 as in communicated earlier), deposits made into BOP will be subject to a maximum deposit limit of $2,000,000 (Deposit Maximum). Any amount over $2,000,000 will be swept to the Morgan Stanley Institutional e Liquidity Fund Government Securities Portfolio (Sweep Fund), which seeks to provide preservation of capital, daily liquidity and maximum current income. A copy of the prospectus of the Sweep Fund can be found on the Morgan Stanley public website at: www.morganstanley.com/funds/MGPXX. These changes will apply to any account in your Morgan Stanley relationship that is eligible for BDP. As a reminder, the Deposit o Maximum and the Sweep Fund are subject to change with prior notice to you from Morgan Stanley. o As a reminder, through the BDP program, available cash balances held in account(s) at Morgan Stanley are automatically deposited or "swept" into an interest -hearing FDIC -insured deposit account (Deposit U) Accounts) at Morgan Stanley Bank, N.A. and/or Morgan Stanley Private Bank, National Association, each a national bank, Member FDIC, and an affiliate of Morgan Stanley. If you have any questions, please contact your Financial Advisor or Private Wealth Advisor. An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is c possible to lose money by investing in a money market fund. An investor should consider the investment objectives, risks, and charges and expenses of a money market fund(s) carefully before investing. A prospectus which contains this and other important information about the money market fund(s) may be obtained from your Financial Advisor, Private Wealth Advisor or from Morgan Stanley Investment Management at www.morganstanley.com/wealth-investmentstrategies/ratemonitor.html. Please read the prospectus carefully before investing or sending money. Morgan Stanley Smith Barney LLC is a registered Broker/Dealer, Member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered Into arrangements with banks and other third parties to assist in offering certain banking related products and services. Investment, insurance and annuity products offered through Morgan Stanley Smith Barney LLC are: NOT FDIC INSURED I MAY LOSE VALUE I NOT BANK GUARANTEED I NOT A BANK DEPOSIT I NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY Sign up for eDelivery of your Account Documents Today Secure, Convenient and Green. Go paperless and save more. Effective November 1, 2016, accounts not enrolled in eDelivery of all eligible account documents within their Account Linked Group may be subject to an annual account fee increase. Please refer to the FYI included with this statement to learn more. Simply visit www.morganstanley.corrVedelivery to set your eDelivery preferences today. Please note, if you have not already done so, you will first need to register for Morgan Stanley Online prior to making your eDelivery selections. PFM MANAGED INVESTMENT PORTFOLIO Managed Account Summary Statement CITY OF EASTVALE - INVESTMENT PORTFOLIO Opening Market Value Maturities/Calls Principal Dispositions Principal Acquisitions Unsettled Trades Change in Current Value Closing Market Value Interest/Dividends/Coupons Received Less Purchased Interest Related to Interest/Coupons Plus Net Realized Gains/Losses Total Cash Basis Earninas Ending Amortized Value of Securities Ending Accrued Interest Plus Proceeds from Sales Plus Proceeds of Maturities/Calls/Principal Payments Plus Coupons/Dividends Received Less Cost of New Purchases Less Beginning Amortized Value of Securities Less Beginning Accrued Interest Total Accrual Basis Earnings $31,998,817.92 (51,145,000.00) 0.00 49,285,105.29 0.00 100,286.64 $30,239,209.85 61,005.56 (103,515.96) 1,288.54 ($41,221.86) 30,135,135.43 65,083.09 0.00 51,145,000.00 61,005.56 (49,388,621.25) (31,998,888.96) 0.00 $18,713.87 For the Month Ending June 30, 2016 Maturities/Calls 51,145,000.00 Sale Proceeds 0.00 Coupon/Interest/Dividend Income 61,005.56 Principal Payments 0.00 Security Purchases (49,388,621.25) Net Cash Contribution (57.61) Reconciling Transactions 0.00 Closing Cash Balance $1,818,660.03 Page 1 PFM Asset Management LLC Portfolio Summary and Statistics CITY OF EASTVALE - INVESTMENT PORTFOLIO Description Par Value Market Value Percent U.S. Treasury Bond / Note 4,530,000.00 4,647,816.28 15.37 Federal Agency Discount Note 6,030,000.00 6,028,418.69 19.94 Federal Agency Bond / Note 15,400,000.00 15,537,703.00 51.38 Corporate Note 3,865,000.00 4,025,271.88 13.31 Managed Account Sub -Total 29,825,000.00 30,239,209.85 100.00% Accrued Interest 65,083.09 Total Portfolio 29,825,000.00 30,304,292.94 Unsettled Trades 26.77% 0.00 0.00 0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years US TSY Bond / Ni 15.1 Fed Agy 19.94% For the Month Ending June 30, 2016 Corporate Note 13.31% Fed Agy Bond / Note 51.38% Yield to Maturity at Cost 0.92% Yield to Maturity at Market 0.81% Duration to Worst 2.22 Weighted Average Days to Maturity 839 Zi Page 2 PF quPFM Asset Management LLC � PFM' Managed Account Issuer Summary CITY OF EASTVALE - INVESTMENT PORTFOLIO Market Value Issuer of Holdings Percent AMERICAN EXPRESS CO 814,192.00 2.69 BANK OF NEW YORK CO INC 803,712.20 2.66 FANNIE MAE 4,268,330.00 14.12 FEDERAL HOME LOAN BANKS 13,573,534.19 44.88 FREDDIE MAC 3,724,257.50 12.32 HSBC HOLDINGS PLC 801,371.13 2.65 3P MORGAN CHASE & CO 798,121.65 2.64 UNITED STATES TREASURY 4,647,816.28 15.37 WELLS FARGO & COMPANY 807,874.90 2.67 Total =PFNI WF PFM Asset Management LLC $ 30, 239, 209.85 100.000/0 AA+ 66.75% For the Month Ending June 30, 2016 .98% .33% -1+ 9.94% Page 3 Managed Account Detail of Securities Held For the Month Ending 3une 30, 2016 CITY OF EASTVALE - INVESTMENT PORTFOLIO Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S. Treasury Bond / Note US TREASURY NOTES 912828H52 1,475,000.00 AA+ Aaa 06/14/16 06/15/16 1,490,614.26 0.95 7,699.18 1,490,429.52 1,496,548.28 DTD 02/02/2015 1.250% 01/31/2020 US TREASURY NOTES 912828XM7 1,455,000.00 AA+ Aaa 06/14/16 06/15/16 1,489,044.73 1.04 9,873.21 1,488,691.53 1,496,205.60 DTD 07/31/2015 1.625% 07/31/2020 US TREASURY N/B 912828N48 1,600,000.00 AA+ Aaa 06/03/16 06/06/16 1,638,187.50 1.21 76.09 1,637,633.49 1,655,062.40 DTD 12/31/2015 1.750% 12/31/2020 Security Type Sub -Total 4,530,000.00 4,617,846.49 1.07 17,648.48 4,616,754.54 4,647,816.28 Federal Agency Discount Note FHLB DISC NOTE 313384A58 6,030,000.00 A-1+ P-1 06/29/16 06/29/16 6,028,690.16 0.23 0.00 6,028,767.23 6,028,418.69 -- 0.000% 08/02/2016 Security Type Sub -Total 6,030,000.00 6,028,690.16 0.23 0.00 6,028,767.23 6,028,418.69 Federal Agency Bond / Note FHLMC NOTES 3137EADX4 3,000,000.00 AA+ Aaa 06/03/16 06/06/16 3,009,720.00 0.79 1,333.33 3,009,280.80 3,015,945.00 DTD 12/11/2015 1.000% 12/15/2017 FHLB NOTES 313OA7CX1 1,500,000.00 AA+ Aaa 06/03/16 06/06/16 1,501,260.00 0.83 3,718.75 1,501,211.99 1,505,275.50 DTD 02/18/2016 0.875% 03/19/2018 FEDERAL HOME LOAN BANKS AGCY 313OA8BD4 3,000,000.00 AA+ Aaa 06/03/16 06/06/16 2,999,640.00 0.88 145.83 2,999,649.30 3,012,009.00 DTD 05/27/2016 0.875% 06/29/2018 FANNIE MAE GLOBAL NOTES 3135GOYM9 2,000,000.00 AA+ Aaa 06/29/16 06/29/16 2,050,440.00 0.73 10.729.17 2,050,314.84 2,051,104.00 DTD 08/23/2013 1.875% 09/18/2018 FNMA BENCHMARK NOTE 3135GOE58 1,500,000.00 AA+ Aaa 06/03/16 06/06/16 1,508,220.00 0.89 3,375.00 1,507,981.80 1,513,782.00 DTD 09/01/2015 1.125% 10/19/2018 FNMA BENCHMARK NOTE 3135GOJ53 700,000.00 AA+ Aaa 06/03/16 06/06/16 700,595.00 0.97 2,430.56 700,580.60 703,444.00 DTD 02/23/2016 1.000% 02/26/2019 FHLB GLOBAL NOTE 313OA8DB6 3,000,000.00 AA+ Aaa 06/03/16 06/06/16 3,009,240.00 1.02 937.50 3,009,028.92 3,027,831.00 DTD 06/03/2016 1.125% 06/21/2019 I}t. Page 4 PFM Asset Management LLC Managed Account Detail of Securities Held For the Month Ending June 30, 2016 Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity Federal Agency Bond / Note CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value FREDDIE MAC GLOBAL NOTES 3137EADM8 700,000.00 AA+ Aaa 06/03/16 06/06/16 703,976.00 1.08 2,163.19 703,894.74 708,312.50 DTD 10/02/2012 1.250% 10/02/2019 Security Type Sub -Total Corporate 15,400,000.00 15,483,091.00 0.88 24,833.33 15,481,942.99 15,537,703.00 3P MORGAN SECURITIES 46625HHL7 710,000.00 A- A3 06/03/16 06/08/16 798,366.60 1.84 8,449.00 796,450.29 798,121.65 DTD 04/23/2009 6.300% 04/23/2019 HSBC USA INC CORPORATE NOTES 40428HPN6 795,000.00 A A2 06/03/16 06/08/16 805,199.85 1.99 2,517.50 805,016.21 801,371.13 DTD 11/13/2014 2.375% 11/13/2019 BNY MELLON CORP NOTE (CALLABLE) 06406HDD8 775,000.00 A Al 06/03/16 06/08/16 799,226.50 1.82 7,500.28 798,866.38 803,712.20 DTD 08/17/2015 2.600% 08/17/2020 WELLS FARGO & COMPANY NOTES 94974BGR5 785,000.00 A A2 06/03/16 06/08/16 803,007.90 2.01 1,334.50 802,762.23 807,874.90 DTD 12/07/2015 2.550% 12/07/2020 AMERICAN EXPRESS CREDIT CORP NOTES 0258MOEB1 800,000.00 A- A2 06/03/16 06/08/16 804,632.00 2.13 2,800.00 804,575.56 814,192.00 DTD 05/05/2016 2.250% 05/05/2021 Security Type Sub -Total 3,865,000.00 4,010,432.85 1.96 22,601.28 4,007,670.67 4,025,271.88 Managed Account Sub -Total 29,825,000.00 30,140,060.50 0.92 65,083.09 30,135,135.43 30,239,209.85 Securities Sub -Total $29,825,000.00 $30,140,060.50 0.92% $65,083.09 $30,135,135.43 $30,239,209.85 Accrued Interest $65,083.09 Total Investments $30,304,292.94 }t. Page 5 WF PFM Asset Management LLC a: Managed Account Fair Market Value & Analytics For the Month Ending June 30, 2016 CITY OF EASTVALE - INVESTMENT PORTFOLIO Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective Duration YTM Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost Duration to Worst at Mkt US TREASURY NOTES 912828H52 1,475,000.00 MORGANST 101.46 1,496,548.28 5,934.02 6,118.76 3.49 3.49 0.84 DTD 02/02/2015 1.250% 01/31/2020 US TREASURY NOTES 912828XM7 1,455,000.00 HSBC 102.83 1,496,205.60 7,160.87 7,514.07 3.93 3.93 0.92 DTD 07/31/2015 1.625% 07/31/2020 US TREASURY N/B 912828N48 1,600,000.00 HSBC 103.44 1,655,062.40 16,874.90 17,428.91 4.33 4.33 0.97 DTD 12/31/2015 1.750% 12/31/2020 Security Type Sub -Total 4,530,000.00 4,647,816.28 29,969.79 31,061.74 3.93 3.93 0.91 FHLB DISC NOTE 313384A58 6,030,000.00 UBS AG 99.97 6,028,418.69 (271.47) (348.54) 0.09 0.09 0.29 -- 0.000% 08/02/2016 Security Type Sub -Total 6,030,000.00 6,028,418.69 (271.47) (348.54) 0.09 0.09 0.29 FHLMC NOTES 3137EADX4 3.000.000.00 RBS_SEC 100.53 3,015,945.00 6.225.00 6,664.20 1.45 1.45 0.63 DTD 12/11/2015 1.000% 12/15/2017 FHLB NOTES 3130A7CX1 1.500.000.00 MORGANST 100.35 1,505,275.50 4.015.50 4,063.51 1.70 1.70 0.67 DTD 02/18/2016 0.875% 03/19/2018 FEDERAL HOME LOAN BANKS AGCY 313OA8BD4 3.000.000.00 MORGANST 100.40 3,012,009.00 12,369.00 12,359.70 1.98 1.98 0.67 DTD 05/27/2016 0.875% 06/29/2018 FANNIE MAE GLOBAL NOTES 3135GOYM9 2.000.000.00 GOLDMAN 102.56 2,051,104.00 664.00 789.16 2.16 2.16 0.71 DTD 08/23/2013 1.875% 09/18/2018 FNMA BENCHMARK NOTE 3135GOE58 1.500.000.00 KEYBAN 100.92 1,513,782.00 5.562.00 5,800.20 2.27 2.27 0.72 DTD 09/01/2015 1.125% 10/19/2018 FNMA BENCHMARK NOTE 3135GO153 700.000.00 MORGANST 100.49 703,444.00 2.849.00 2,863.40 2.61 2.61 0.81 DTD 02/23/2016 1.000% 02/26/2019 FHLB GLOBAL NOTE 313OA8DB6 3.000.000.00 KEYBAN 100.93 3,027,831.00 18.591.00 18,802.08 2.92 2.92 0.81 DTD 06/03/2016 1.125% 06/21/2019 FREDDIE MAC GLOBAL NOTES 3137EADM8 700.000.00 WELLSFAR 101.19 708,312.50 4.336.50 4,417.76 3.18 3.18 0.88 DTD 10/02/2012 1.250% 10/02/2019 Security Type Sub -Total 15,400,000.00 15,537,703.00 54,612.00 55,760.01 2.17 2.17 0.72 Page 6 PFM Asset Management LLC Managed Account Fair Market Value & Analytics For the Month Ending June 30, 2016 CITY OF EASTVALE - INVESTMENT PORTFOLIO Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective Duration YTM Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost Duration to Worst at Mkt ]P MORGAN SECURITIES 46625HHL7 710,000.00 BARCLAYS 112.41 798,121.65 (244.95) 1,671.36 2.59 2.59 1.76 DTD 04/23/2009 6.300% 04/23/2019 HSBC USA INC CORPORATE NOTES 40428HPN6 795,000.00 WELLSFAR 100.80 801,371.13 (3,828.72) (3,645.08) 3.22 3.22 2.13 DTD 11/13/2014 2.375% 11/13/2019 BNY MELLON CORP NOTE (CALLABLE) 06406HDD8 775,000.00 BARCLAYS 07/17/20 103.70 803,712.20 4,485.70 4,845.82 3.82 3.81 1.67 DTD 08/17/2015 2.600% 08/17/2020 WELLS FARGO & COMPANY NOTES 94974BGR5 785,000.00 WELLSFAR 102.91 807,874.90 4,867.00 5,112.67 4.18 4.18 1.86 DTD 12/07/2015 2.550% 12/07/2020 AMERICAN EXPRESS CREDIT CORP NOTES 0258MOEB1 800,000.00 CSFB 101.77 814,192.00 9,560.00 9,616.44 4.56 4.56 1.87 DTD 05/05/2016 2.250% 05/05/2021 Security Type Sub -Total 3,865,000.00 4,025,271.88 14,839.03 17,601.21 3.68 3.68 1.86 Managed Account Sub -Total 29,825,000.00 30,239,209.85 99,149.35 104,074.42 2.23 2.22 0.81 Securities Sub -Total $29,825,000.00 $30,239,209.85 $99,149.35 $104,074.42 2.23 2.22 0.81% Accrued Interest $65,083.09 Total Investments $30,304,292.94 �PFNI WF Page 7 PFM Asset Management LLC Managed Account Security Transactions & Interest CITY OF EASTVALE - INVESTMENT PORTFOLIO Transaction Type Principal Accrued Trade Settle Securitv Description CUSIP Par Proceeds Interest 06/03/16 06/06/16 FNMA BENCHMARK NOTE DTD 02/23/2016 1.000% 02/26/2019 06/03/16 06/06/16 FNMA BENCHMARK NOTE DTD 09/01/2015 1.125% 10/19/2018 06/03/16 06/06/16 FEDERAL HOME LOAN BANKS AGCY DTD 05/27/2016 0.875% 06/29/2018 06/03/16 06/06/16 FHLB GLOBAL NOTE DTD 06/03/2016 1.125% 06/21/2019 06/03/16 06/06/16 FREDDIE MAC GLOBAL NOTES DTD 10/02/2012 1.250% 10/02/2019 06/03/16 06/06/16 FHLB NOTES DTD 02/18/2016 0.875% 03/19/2018 06/03/16 06/06/16 US TREASURY N/B DTD 12/31/2015 1.750% 12/31/2020 06/03/16 06/06/16 FHLMC NOTES DTD 12/11/2015 1.000% 12/15/2017 06/03/16 06/08/16 WELLS FARGO & COMPANY NOTES DTD 12/07/2015 2.550% 12/07/2020 06/03/16 06/08/16 HSBC USA INC CORPORATE NOTES DTD 11/13/2014 2.375% 11/13/2019 06/03/16 06/08/16 AMERICAN EXPRESS CREDIT CORP NOTES DTD 05/05/2016 2.250% 05/05/2021 06/03/16 06/08/16 BNY MELLON CORP NOTE (CALLABLE) DTD 08/17/2015 2.600% 08/17/2020 06/03/16 06/08/16 JP MORGAN SECURITIES DTD 04/23/2009 6.300% 04/23/2019 06/06/16 06/06/16 US TREASURY NOTES DTD 06/17/2013 0.500% 06/15/2016 06/14/16 06/15/16 US TREASURY NOTES DTD 07/31/2015 1.625% 07/31/2020 06/14/16 06/15/16 US TREASURY NOTES DTD 02/02/2015 1.250% 01/31/2020 For the Month Ending June 30, 2016 Realized GIL Realized GIL Sale Total Cost Amort Cost Method 3135GOJ53 700,000.00 (700,595.00) (1,944.44) (702,539.44) 3135GOE58 1,500,000.00 (1,508,220.00) (2,203.13) (1,510,423.13) 313OA8BD4 3,000,000.00 (2,999,640.00) (656.25) (3,000,296.25) 313OA8DB6 3,000,000.00 (3,009,240.00) (281.25) (3,009,521.25) 3137EADM8 700,000.00 (703,976.00) (1,555.56) (705,531.56) 3130A7CX1 1,500,000.00 (1,501,260.00) (2,807.29) (1,504,067.29) 912828N48 1,600,000.00 (1,638,187.50) (12,153.85) (1,650,341.35) 3137EADX4 3,000,000.00 (3,009,720.00) (14,583.33) (3,024,303.33) 94974BGR5 785,000.00 (803,007.90) (55.60) (803,063.50) 40428HPN6 795,000.00 (805,199.85) (1,311.20) (806,511.05) 0258MOEB1 800,000.00 (804,632.00) (1,650.00) (806,282.00) 06406HDD8 775,000.00 (799,226.50) (6,212.92) (805,439.42) 46625HHL7 710,000.00 (798,366.60) (5,591.25) (803,957.85) 912828VG2 11,050,000.00 (11,050,863.28) (26,266.39) (11,077,129.67) 912828XM7 1,455,000.00 (1,489,044.73) (8,833.93) (1,497,878.66) 912828H52 1,475,000.00 (1,490,614.26) (6,888.74) (1,497,503.00) Page 8 PFM Asset Management LLC Managed Account Security Transactions & Interest For the Month Ending June 30, 2016 CITY OF EASTVALE - INVESTMENT PORTFOLIO Transaction Type Principal Accrued Realized GIL Realized GIL Sale Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method 06/15/16 06/15/16 FEDERAL HOME LOAN BANKS DISC 313384YTO 8,095,000.00 (8,094,181.51) 0.00 (8,094,181.51) NOTE -- 0.000% 06/29/2016 06/29/16 06/29/16 FANNIE MAE GLOBAL NOTES 3135GOYM9 2,000,000.00 (2,050,440.00) (10,520.83) (2,060,960.83) DTD 08/23/2013 1.875% 09/18/2018 06/29/16 06/29/16 FHLB DISC NOTE 313384A58 6,030,000.00 (6,028,690.16) 0.00 (6,028,690.16) -- 0.000% 08/02/2016 Transaction Type Sub -Total 48,970,000.00 (49,285,105.29) (103,515.96) (49,388,621.25) 06/01/16 06/01/16 MONEY MARKET FUND MONEY0002 0.00 0.00 26.40 26.40 06/15/16 06/15/16 FHLMC NOTES 3137EADX4 3,000,000.00 0.00 15,333.33 15,333.33 DTD 12/11/2015 1.000% 12/15/2017 06/15/16 06/15/16 US TREASURY NOTES 912828VG2 11,050,000.00 0.00 27,625.00 27,625.00 DTD 06/17/2013 0.500% 06/15/2016 06/21/16 06/21/16 FHLB GLOBAL NOTE 313OA8DB6 3,000,000.00 0.00 1,687.50 1,687.50 DTD 06/03/2016 1.125% 06/21/2019 06/29/16 06/29/16 FEDERAL HOME LOAN BANKS AGCY 313OA8BD4 3,000,000.00 0.00 2,333.33 2,333.33 DTD 05/27/2016 0.875% 06/29/2018 06/30/16 06/30/16 US TREASURY N/B 912828N48 1,600,000.00 0.00 14,000.00 14,000.00 DTD 12/31/2015 1.750% 12/31/2020 Transaction Type Sub -Total 21,650,000.00 0.00 61,005.56 61,005.56 06/06/16 06/06/16 FEDERAL HOME LOAN BANKS DISC 313384XU8 32,000,000.00 32,000,000.00 0.00 32,000,000.00 1,333.33 0.00 NOTE DTD 06/06/2015 0.000% 06/06/2016 06/15/16 06/15/16 US TREASURY NOTES 912828VG2 11,050,000.00 11,050,000.00 0.00 11,050,000.00 (863.28) 0.00 DTD 06/17/2013 0.500% 06/15/2016 06/29/16 06/29/16 FEDERAL HOME LOAN BANKS DISC 313384YTO 8,095,000.00 8,095,000.00 0.00 8,095,000.00 818.49 0.00 NOTE -- 0.000% 06/29/2016 Page 9 PFM Asset Management LLC � PFM' Managed Account Security Transactions & Interest CITY OF EASTVALE - INVESTMENT PORTFOLIO Transaction Type Principal Accrued Trade Settle Security Description CUSIP Par Proceeds Interest Transaction Type Sub -Total 51,145,000.00 51,145,000.00 0.00 For the Month Ending June 30, 2016 Realized G/L Realized G/L Sale Total Cost Amort Cost Method 51,145,000.00 1,288.54 0.00 Managed Account Sub -Total 1,859,894.71 (42,510.40) 1,817,384.31 1,288.54 0.00 Total Security Transactions $1,859,894.71 ($42,510.40) $1,817,384.31 $1,288.54 $0.00 =PFNI Page 10 WF PFM Asset Management LLC