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Investment Advisory Staff Reports 11/06/19MEETING OF THE INVESTMENT ADVISORY/OVERSIGHT JOINT COMMITTEE MEETING Wednesday, November 6, 2019 3:00 p.m. - 4:00 p.m. Finance Conference Room Meeting called by: Robert Foley, Chair Facilitator: Robert Foley Type of meeting: Quarterly Meeting Minutes taken by: Diane Hornsby Attendees: Robert Foley, Larry Sallinger (IAC) Richard Rohm, Rick Otto, Will Kolbow (IOC) Josephine Chan, Diane Hornsby (Staff) Please read: The attached Please bring: The attached Agenda Topics 1. Call to Order Robert Foley 2. Approval of Minutes, Meeting of August 7, 2019 Robert Foley 3. Rate Summary September 2018 - September 2019 Josephine Chan 4. Investment Portfolio Update Josephine Chan 5. Treasurer's Investment Reports for July, August, & September 2019 Josephine Chan 6. Sales Tax Update Will Kolbow 7. California Forecast: Sales Tax Trends and Economic Drivers Will Kolbow 8. City Update Rick Otto 9. Next Meeting Date - Wed., February 5, 2020 Robert Foley 10. Public Comment 11. Adjournment Robert Foley MINUTES INVESTMENT ADVISORY (IAC) COMMITTEE INVESTMENT OVERSIGHT (IOC) COMMITTEE Wednesday, August 7,2019,3:00 p.m. - Finance Conference Room PRESENT: IAC COMMITTEE IOC COMMITTEE (non-voting) Robert Foley, Chair Richard Rohm, City Treasurer Larry Sallinger, Member Will Kolbow, Assistant City Manager! Vacant Administrative Services Director STAFF Josephine Chan, Investment/Revenue Officer Robert Moya, Budget Manager Diane Hornsby, Executive Assistant 1. Call to Order Chairman Robert Foley called the meeting to order at 3:02 p.m. 2. Approval of Meeting Minutes of May 8, 2019. Mr. Foley moved to approve; Mr. Sallinger seconded; motion carried. 3. Rate Summary A report of the highs and lows for various investments during period of July 2018 through June 2019. Action: Received and filed. 4. Investment Portfolio Update A report showing City's portfolio investment percentages in various areas as of July 30, 2019. Action: Received and filed. 5. Treasurer's Investment Reports for April, May, and June 2019 Explanation of disbursements, investment activity, and sales tax revenue by month. There was a question regarding the implications of being out of compliance when maximum percentage of LAIF is exceeded. Chairman Foley moved that a memo be prepared to City Council on behalf of the committee regarding our intention to bring investment percentages back into compliance, as per our investment policy. Mr. Sallinger seconded the motion. 6. Sales Tax Update Sales tax receipts of the top seven business groups show that, overall, Orange saw a 12.6% decrease in receipts from the same quarter last year. The State underpaid us (fuel) in the first quarter in error, which was corrected later. After accounting aberrations were factored out, actual sales activity increased 4.9%. Action: Received and filed. Minutes of the Joint Meeting of the Investment Advisory and Investment Oversight Committees, August 7, 2019 7. i. California Economic & Business Review- James Doti, President Emeritus, indicated that the economy shows promise, with no recession likely in the next twelve months. ii. California Forecast: Sales Tax Trends & Economic Drivers - It was indicated that sales tax in transportation are predicted to take a dip. National economy shows growth, with a decreasing unemployment rate. Action: Received and filed. 8. City Update None given. 9. Next meeting date Wednesday, November 6, 2019 at 3:00 p.m. in the Finance Conference Room. Mr. Rohm stated that he is unable to attend the meeting. (He later mentioned that he could participate in the meeting via conference call or zoom video.) 10. Public Comment - None. 11. Adjournment - The meeting adjourned at 3:35 p.m. Robert Foley, Chair Richard Rohm, City Treasurer Investment Advisory Committee Investment Oversight Committee Distribution: Mayor and City Council City Manager, IOC Investment/Revenue Officer Assistant City Manager! Administrative Services Director, IOC City Treasurer, IOC City Clerk Investment Advisory Committee 2 RATE SUMMARY September 2018 to September 2019 Month Ending U.S. Treasury Yield LAW Yield 3 month 6 month 2 year 3 year 5 year Sep-18 2.19% 2.36% 2.81% 2.88% 2.94% 2.06% Oct-18 2.34% 2.49% 2.87% 2.93% 2.98% 2.14% Nov-18 2.37% 2.52% 2.80% 2.83% 2.84% 2.21% Dec-18 2.45% 2.56% 2.48% 2.46% 2.51% 2.29% Jan-19 2.41% 2.46% 2.45% 2.43% 2.43% 2.36% Feb-19 2.45% 2.50% 2.52% 2.50% 2.52% 2.39% Mar-19 2.40% 2.44% 2.27% 2.21% 2.23% 2.44% Apr-19 2.43% 2.46% 2.27% 2.24% 2.28% 2.45% May-19 2.35% 2.35% 1.95% 1.90% 1.93% 2.45% Jun-19 2.12% 2.09% 1.75% 1.71% 1.76% 2.43% Jul-19 2.08% 2.10% 1.89% 1.84% 1.84% 2.38% Aug-19 1.99% 1.89% 1.50% 1.42% 1.39% 2.34% Sep-19 1.88% 1.83% 1.63% 1.56% 1.55% 2.28% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 -1-3 month -4-6 month 2 year 3 year -5 year - LAIF ITEM NO PAGE . I .---MEEflNG. 11-&-49 Investment Portfolio Update As of 10-25-19 Instruments Book - % of (Days to Maturity) Value Portfolio LAW $ - Treasury Sweep 17,200,000 1,268,770 14.4% 1.1% Money Market Mutual Fund Medium Term Note 10,000,000 8.4% 1 year 2 year 2,000,000 1.7% 5 year 2,964,967 2.5% 14,964,967 12.5% Federal Aqency 26,000,000 21.8% 1 year 2 year 36,996,187 31.0% 3 year 7,000,000 5.9% 4 year 2,998,512 2.5% 5year 13,000,000 11.0% Total 85,994,699 72.0% Total $ 119,428,436 100.0% DATE OF ITEM NO. PAGE / MEETING.. 11-6-19 10/29/2019 10/29/2019 10/29/2019 0-0 0 0 0 0 UI 0 40 U) CO CO CO C) In C') in ci in c's c', ore than 50% 0 U) 00 U) Cl) CO) Cl) CcCc * a) 000 222 C') — 0 LUCN- (n co U) 0 a) op 0 0) 0 N- C\J (N 0 0 00 0 L 00) 0 C) N -IN 13,000,000.00 0 0 0 222 0 0 0 000 200 000 0 0 0 qoo N- C') C') 5,983,890.00 1,990,166.00 6,960,523.00 4,989,142.00 4,998,616.00 2,000,000.00 6,998,087.00 6,000,000.00 5,000,000.00 2,000,000.00 6,000,000.00 7,000,000.00 15,000,000.00 8.300,000.00 8,900,000.00 8,300,000.00 8,900,000.00 0000000 0000000 O 0 C) C') (C) 0 N- o 0 N- C) C) N U) OO N-- LU(N OC 00 C)C'4C)C) o o (0 C) C) C) C) C)000 00 C6 U)LUC) 5,986,562.00 00 0 0 0 0 0.0.00.20 o o 0 0 0 0 N- 0 0 0 0 0 NC2 0. C) 0 0 00 0 (0 0 0 0 0 0 -11 (0C)(0 0 0 0 0 00 0 00 00000 0 0 0 0 0 0 0 N- 0 0 0 0 0 0 C) 0 0 0 0 0 0 (0 0 00 0 0 0 (N 0-0-O. --(DC)U)0 4,000,000.00 9,948,905.00 3,982,873.00 10,000.000.00 3,999,484.00 0 00000 2 22222 U) .-U)C)(NN C) (NNNON N (1-C)O N- U)CCLUC) C) U) LU (NU) (N C)C)C)O)C) , (\JU)NOU ,-c'JC) 0 2 (0 C') OCT (N C) 00 00 CNN CO LO CD 06 C6 C) C) 0) 0) C'-JC') 0 2 0 N- N C) (D C) 000 000 3,000,000.00 000 000 000 66(5 000 000 CC- C) CJ CC- 85,994,699.00 0 C d 0 C 0 0 C (D C) 40,999,484.00 27,998,616.00 00 00 C') C) 0 C) 00 22 0 N- U) C) Ni C) 000 222 0 0 0 N 0 N 0 C) 0 U) 0 C\ 0 LU Medium Term Note 0 - ° ° Cl) co 0 • 6 C N- 0 a C's CC V) 0 • - - 1,268,770.00 1,268,770.00 00 20 0 N-0 N-00 0 C) 0 U) (N C) NU C) 00 22 0 C) 0 C) 0-U)- 0 0 C) (NC) N- LO C) 17,200,000.00 86,000,000.00 - 2,971,868.00 2,964,967.00 3,000,000.00 C LL >'. (_) z 0 < < < <C) <<C) a) C) C) (.) C 2002 2 01 2 2 -J Oz LL Jzz OZU- ZZI o.111i 0 U) U U.. U.. LL LL LL LL U.. u. LL <U.. U. LI. 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(N (D LU (D LO U) N N '- CO C) C) UBS Financial Services UBS Financial Services UBS Financial Services a)a)a) U)&)0) UBS Financial Services UBS Financial Services UBS Financial Services UBS Financial Services UBS Financial Services UBS Financial Services — (N N- C') U) C) C) LU co D N- U) co C) N U) U) C) U) LU U) N- N N- C) C) C) C) C)0 (N (N (N (N (N (N (N (N (N (N (N (N (N (N (N I- WUJ cr-5 UJ 0 0< UI CL <-5 > 0 -J UI >- UI I- 0 cn I- IIi.1 U) CO MC) (N - C) ,- U) — IC) C) C)t0C)N-')C')N-N o o 0 0 , - , , Cl) (N CNC'J 0000 C\jO0Cc'J 0 0 (N (N (N C)C)C) O0N-OLUC)000.-000LI)OLU Cl) 00 C) C) C) 0 (N LU 0 LU 0- It) U)- Lt)C'J U) 00 N-° LC) CD '- Lr) LO C'J(N (N (NC'JC'4(N 00N-0LU0000000000LU000 C) C) C) 0 (N U) 0 LU 0 0 (N LU U) 0 15) (N LU 0 LO N- P? 2 UN U ULL -: 0.2 N C'JCN (N (NC'J(\J.- 0 •a) C 0 .0 -a) 0 IV C.) E 2 (5)15) (5) a)15 o •C.0 °- ee a) 0.0. a) Im 00 a) a)a) EE 0 44 0 .2.2..9 . CD 0000 a) 0)C) 0.0.0.0. - CC CC•0 0 0000 0 a) a) - a) cc InIS)IOU) ID 0 CO) C') CV) CV) E E E E a)a).2In15) cc 22 CL 0 .e6-- a)=a)a) E E E a) 0. 0 0 • E . C C a)• 0.Dv C C a) a) (Cs o 01's 00 00000 .. AGENDA ITEM November 12, 2019 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto, City Manager FROM: Richard A. Rohm, City Treasurer , William M. Kolbow, Assistant City Manager/Administrative Services Director REVIEW: City Manager Finance 1. SUBJECT Monthly Treasurer's Reports for July, August, and September 2019. 2. SUMMARY Presentation of three monthly Treasurer's Reports to the City Council after the end of the quarter covered by the reports. 3. RECOMMENDED ACTION Receive and file. 4. FISCAL IMPACT None. 5. STRATEGIC PLAN GOALS Goal 2: Be a fiscally healthy community d: Effectively manage and develop City assets. 6. DISCUSSION AND BACKGROUND The City's current Statement of Investment Policy has been adopted by the City Council of the City of Orange as Resolution 11163 and is in accordance with the California Government Code Sections 53600 et seq. Per the Investment Policy, three monthly investment reports are to be submitted to the City Council within 45 days following the end of the quarter. As required by the City's present Investment Policy, the City Treasurer's report delineates all investments made by the City Treasurer for the City, its special funds, and the Successor Agency funds, by investment type and by broker. The monthly Compliance Report certifying compliance of all investments with both the Government Code and the City's Investment Policy is included. ITEM( 1 The Investment Portfolio Statement accurately reflects all investments held by the City and its agents as of the end of the month. This investment data is also presented in other summary and graphic form. A reconciliation between total cash and investments and total cash per the General Ledger is also included. All of the three monthly Treasurer's Reports have been reviewed by the Investment Advisory Committee (lAO). Summary of chanqes in Treasurer's cash and investments: Treasurer's Operating Cash & Investments(l) Balance @ 6/30/2019 $149,863,725 Monthly Activity: Cash Received 47,354,304 Cash Disbursed (73,271,412) Balance @ 9/30/2019 $123,946,617 (Includes operating cash and investments (valued at cost). Does not include deposits with administrator, imprest cash, fiscal agent cash and investments, and deferred compensation. For the month of July 2019 The July cash disbursements exceeded cash receipts by $25,812,531. During the month, large disbursements included payments totaling $17,462,406 to PEAS for annual lump sum prepayment of unfunded liability, $4,608,589 to Orange County Water District for pumping assessments, $2,256,200 to PERS for employee benefits, $1,656,268 to CIPA (California Insurance Pool Authority) for insurance, $1,116,461 to Chapman University for refund of development impact fees, $881,122 to All American Asphalt for annual pavement maintenance, $420,728 to Municipal Water District of Orange County for purchased water, and $240,278 to Los Angeles Freightllne for a CNG powered dump truck. In July, the City received $3,708,570 in sales tax revenue and $288,172 in property tax revenue. In the month of July, one Federal Home Loan Bank note was called. The City's balance in L.A.I.F. on July 30 was $33,000,000 or a decrease of $24,200,000 due to cash disbursements exceeding cash receipts during the month. The City invested $67,362,746 (including L.A.I.F.) or held 54% or of its portfolio in securities at time of purchase with maturities equal to or less than 365 days, which was above the 50% limit allowed in the Investment Policy by $5,683,488. This maturity category was out of compliance based on anticipated cash flow needs for large disbursements in August. For the month of August 2019 The August cash receipts exceeded cash disbursements by $281,605. The City received $5,426,020 in sales tax revenue. During the month, large disbursements included payments totaling $4,683,438 to U.S. Bank for debt service, $1,740,022 to PERS for employee benefits, $922,319 to Chapman University for cash bond release on a grading permit, $817,780 to Municipal Water District of Orange County for annual water connection charge and purchased water, $684,131 to All American Asphalt for annual ITEM 5 2 pavement maintenance, and S532,814 to Morillo Construction for Shaffer Park renovation. In the month of August, one medium term note matured. The City's balance in L.A.I.F. on August 31 was $26,500,000 or a decrease of $6,500,000 due to transfer of funds for an investment purchase that settled in early September. The City invested $58,893,843 (including L.A.I.F.) or held 51% of its portfolio in securities at time of purchase with maturities equal to or less than 365 days, which was slightly above the 50% maturity limit by $1,448,932. This maturity sector was out of compliance because some large checks were issued by the end of the month and they cleared the bank in September. For the month of September 2019 The September cash disbursements exceeded cash receipts by $386,182. Large disbursements included payments totaling $2,600,725 to U.S. Bank for debt service, $1,742,490 to PIERS for employee benefits, $1,580,731 to All American Asphalt for annual pavement maintenance, and $762,150 to Municipal Water District of Orange County for purchased water. The City received $3,508,759 in sales tax revenue and 465,851 in property tax revenue. In the month of September, we purchased one Federal Farm Credit Bank note (2% for 5 years), one Federal Home Loan Mortgage Corporation note (2.05% for 4 years), and one medium term note (2% for 5 years). The City's balance in L.A.I.F. on September 30 was $19,500,000, or a decrease of $7,000,000 mainly due to the investment activity. The investment portfolio was back in full compliance with the investment policy. Credit ratinq on investments During this period, there was no change to the credit rating on the investments in the investment portfolio. Investment Advisory Committee (IAC) The most recent IAC meeting was November 6, 2019 while the next quarterly Committee meeting is to be scheduled for February 2020. 7. ATTACHMENTS 1. Investment Report for July 2019 2. Investment Report for August 2019 3. Investment Report for September 2019 ITEM C 3 /1-6-19 1. Investment Report for July 2019 DATE OF ITEM NO. PAGE MEETING. MONTHLY SUMMARY COMPLIANCE CERTIFICATE July 2019 Note: All concentration restrictions were obtained from Sections 53601 and 53635 of the Government Code or the City's Investment Policy as of June 11, 2019, whichever was the more stringent. 1. U.S. Agencies (A) Total amount (book value) of U.S. Agency securities owned by the City = $69,995,770. (B) Total amount allowed (75% of portfolio book value) of all City investments = $92,518,887. Is (A) less than (B) at time of purchase? Yes X No 2. Money Market Mutual Funds (A) Total amount (book value) invested in money market mutual funds by the City $4,362,982. (B) Total amount allowed ($15 million or 20% of portfolio book value, whichever is less) of all City investments = $15,000,000. Is (A) less than (B)? Yes X No 3. LAW (A) Total amount (book value) invested in LAIF by the City = $33,000,000. (B) Total amount allowed (35% of portfolio book value) of all City investments = $43,175,481. Is (A) less than (B)? Yes X No 4. Medium-Term Notes (A) Total amount (book value) invested in medium-term notes by the City = $15,999,764. (C) Total amount allowed (20% of portfolio book value) of all City investments $24,671,703. Is (A) less than (B) at time of purchase? Yes X No 5. Excluded Investment Vehicles (A) Are any securities excluded by the Statement of Investment Policy currently included in the City's portfolio? Yes No X 6. Investment Management Agreements (A) Does the City have any investment manager or advisor agreements? Yes No X (if no, skip to number 7) (B) If so, was the agreement approved in advance by the City Council? Yes No (C) Has the City examined the methods and past performance of the investment manager? Yes No DATE OF ITEM NO. PAGE MEETING F/..& i9 (D) Pursuant to the agreement, does the City retain authority to make investment decisions? Yes No (E) Pursuant to the agreement, are the investments deposited with the City's custodian? Yes No 7. Maturity Limits (A) Does the City currently own any security with a maturity date in excess of five years? Yes No X (B) Does the City currently hold at least 15% and no more than 50% of its portfolio in securities at time of purchase with maturities equal to or less than 365 days? Yes No X (C) Does the City currently hold no more than 50% of its portfolio in securities at time of purchase with maturities between 366 days and 730 days? Yes No (D) Does the City currently hold no more than 35% of its portfolio in securities at time of purchase with maturities between 731 days and 1095 days? Yes No (E) Does the City currently hold no more than 30% of its portfolio in securities at time of purchase with maturities between 1096 days and 1460 days? Yes No (F) Does the City currently hold no more than 30% of its portfolio in securities at time of purchase with maturities between 1461 days and 1825 days? Yes No 8. Issuer Limits Does each issuer of Money Market Mutual Funds continue to meet the following requirements? (i) Is each issuer registered with the Securities and Exchange Commission under the Investment Company Act of 1940? Yes No N/A X (ii) Does the fund of each issuer carry the highest rating of at least two of the three largest national rating agencies? Yes No N/A X (iii) Has each issuer retained an investment adviser registered with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of $500 million? Yes No N/A X DATE OF ITEM NO.. PAGE ( MEETING Prepared By: c_) 1') \-- LCv/ Audited By: Josephine Chan gosari6 Guzman Investment/Revenue Officer Accountant We hereby certify that for the month of July 2019, the investment actions of the City of Orange comply in all respects with the requirements of the California Government Code and the City's current Investment Policy except No. 7(B) and that there is sufficient cash flow to cover the next six months' expenditures barring any catastrophic natural disasters. Market values are obtained through ICE Data Pricing and Reference Data, the State Treasurer's Office, U.S. Trust and U.S. Bank. Certified By: Verified By: le- ec 4, c,^ d X ~ ~o 4, v, , DATED: October 25, 2019 Richard A. Rohm City Treasurer William M. Kolbow Assistant City Manager Administrative Services Director DATE OF ITEM NO. c PAGE 7 MEETING 11-to-19 CDCDO N- CD 0•00 (O ood .—d 000 .-CD cc 0 Co 000 NO OCDO C)O Cl) NO C (ON ('4 C., 000 00 CD•0•O CO ocDd 00 COO C) CD Cc 00 ood CD C) COO co (NO 00 CDCNC N-N- (N CO (D 0 (C (C CD - LO It It CD (C 666 6 (0 U) CD C) - C) CO m CO (C U) (N CO C) . -CC N- C) (N (0 N U) CC) C) C) C) C) (C V7 C)CO(C C> C) C) C It CD CD CD 00 N CD ddddcd CD CD CD CD CD CD CCOCD It CD CD CD CD CD C) CD 00 CD CD C) CD OCCC (0 (CC) C) (C CD CD CD CD CD CD CD 0 CD CD CD CD CD CD CD CD CD CD Cl CD (CDCC CD CD CD CD CD CD CD CD CD CD CD CD CO CO CDC) (C.- (C C V7 (C 13,997,911.67 13,931,595.23 0 0 0 0 0 0 0 (N ('4 (N CD CD 04 N co ('4 (N N C) 00 Z Li (3 -S C zoo V) V) Ui 00 00 I _j cCla) Ui 0 Ui U- CD (N CD (N C.) CD (14 CD (N C) (N C) CD CD ('4 (N :!- C) co 0) (N CD (N N (N - 12/29/2020 BANK/BROKER (I) LOCAL AGENCY INVESTMENT FUND (LAIF) MATURITY Ui 0 DESCRIPTION O (C (N CD N (N CD CD C) C) - (CCNCD C)OCO N-N . - CD(CN Lx) (CC).- U) .-00COC'4 .-.-- CO (N (N U) 0 .- CD .- Cl) C) C) ('4C0N-CO (0C)C) It CNN C) N C) N 14t N C) CO (C CD N C)C)C)C) C)C)NN- (')C.) CO LC) ICF .-COC)L) 'C It (C CD CD CD CD .- CD C) C) N (OCDCDCD 0000 Nr- C)CDCDCQ CDCD O CD CD CD (C CD CD C) C) RR C)NCDF- (n (M C) C) CD 0 C) CD C) 0(7) (N c- C) C) CD CD C) CD C) CD C) (C CD C) CCCDC) 00)00) (0Cl) (d J ('4(0 CD U) 0 0 0 0 0 CD 0 0 5,000,000.00 4,000,000.00 CD 0 CD CD 00 C) C) 0 CD CD CD 0 N C'- 00 ddC . -.- CD 0 CD CD CD 0 C) C) CO CDOCO CC) CD 0 CD CD CD 0 (N N 00 CD CD 00 (D (0 CO C000 (0(0 (CU) (NCDCD 122,742,369.94 151,487,688.90 123,358,515.86 151,810,440.82 123,362,981.78 151,815,595.90 C) C) (D (C CD CD 0 CD N CD C) (C CD CD C) CD co N N '-(N (C CD (C CD CD (C (N (C (C CD CD co >' .' lq~N(CNLt) (C IC! 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(5 Cl) CC) 1C4 E Cl) C, > C 0) Cl? (N CD 0 LI) (N 0 (N LC) - CD cc C (N CU M CN (U 00 -J o a) E c' cu _0 '-0 U) _0 a) SETTLEMENT DATE DESCRIPTION Various dates Sweep Account OD C'-) (N Various dates z DATE OF ITEM NO. .PAGE / MEETING 11-4-19 a' N i — •)(.1 &_ I. CC L. a LCC)> O > 0 a )C OC>. )C c l 0 a 20 tj > C) 00 a, - W 2' 0 a. C 90 cu a, C) C a, .2 0 c , E C >-&;- .0 8 0 .2 (0 a,COoo a .2 a. 8 0) 'ca E O Ca •j, co 0 o- U 6 a' I-. 6 O .- C C CC Cl) 0 a, 8 _ —a. U. 0 CO - C) o Ot tm - a, CC .0 4) C 0 •C C C a' a.-.0 cc 0 CD P. > I-Q-a- -'- ow 0 00 °0' 00 >a,W 0 'S C)C a, to Z3 6000 o a'Cl) >>0 ta'0 (flU)>, >0 03 to LU 00 ul g.2.2 ' a' 00 0wO 0 • -. O2a' 00 00 LL.Q Weighted-average years to maturity for portfolio Co 0) 0 r—c 0 '4. u0 0 <Lii 02 CO C\J (C) Cu 0) > CD CD Ct CD 0 0 0 0 $90,000,000 + $80,000,000 + $70,000,000 + $60,000,000 + $50,000,000 + $40,000,000 -F $30,000,000 + $20,000,000 + $10,000,000 + 69 City of Orange Reconciliation of Total Cash and Investments to General Ledger As of July 31, 2019 Treasurer's Operating Cash and Investments Checking, Payroll & PMA - Wells Fargo 255,872 Treasurer's Investments 123,358,516 Cash in transit 436,806 124,051,194 Imprest Cash 12,200 Fiscal Agent Cash and Investments 3,330,681 Total Cash & Investments 127,394,075 Total Cash and Investments per General Ledger 1 126,071,455 Plus Outstanding Checks 1,322,620 Total Cash & Investments 127,394,075 1 Includes adjustment for month-end timing differences. DATE OF ITEM NO. PAGE /f MEETING (/.4/9 GL Cash.1 Attachment V City of Orange Fiscal Agent Investments As of July 31, 2019 Carrying Value Market or Contract Value Fiscal Agent Cash and Investments Assessment District 95-1 1996 Limited Obligation Improvement Bonds - U.S. Bank 79,651 79,651 First American Government Obligation Fund (2.24%) Community Facilities District 91-2 2013 Special Tax Refunding Bonds - U.S. Bank 1,576,407 1,576,407 First American Government Obligation Fund (2.24%) Federal National Mortgage Association (1.25%) Successor Agency 2008A Merged & Amended Tax Allocation Bonds - U.S. Bank 2,460 2,460 First American Government Obligation Fund (2.24%) Successor Agency 2008B Merged & Amended Tax Allocation Bonds - U.S. Bank 467 467 First American Government Obligation Fund (2.24%) Community Facilities District 06-1 2015 Special Tax Refunding Bonds - U.S. Bank 1671 ,473 1,671473 First American Government Obligation Fund (2.24%) US Treasury Bond (4.375%) Successor Agency 2014A Merged & Amended Tax Allocation Refunding Bonds - U.S. Bank 93 93 First American Government Obligation Fund (2.24%) Successor Agency Refunding Bonds 2018A - U.S. Bank 130 130 First American Government Obligation Fund (2.24%) Total Fiscal Agent Cash and Investments 3,330,681 3330,681 DATE OF ITEM NO. Jr PAGE /' MEETING-Lt- p1 9 2. Investment Report for August 2019 DATE OF ITEM NO. PAGE If, MEETING/J MONTHLY SUMMARY COMPLIANCE CERTIFICATE August 2019 Note: All concentration restrictions were obtained from Sections 53601 and 53635 of the Government Code or the City's Investment Policy as of June 11, 2019, whichever was the more stringent. 1. U.S. Agencies (A) Total amount (book value) of U.S. Agency securities owned by the City = $69,995,978. (B) Total amount allowed (75% of portfolio book value) of all City investments = $86,167,366. Is (A) less than (B) at time of purchase? Yes X No 2. Money Market Mutual Funds (A) Total amount (book value) invested in money market mutual funds by the City = $6,393,843. (B) Total amount allowed ($15 million or 20% of portfolio book value, whichever is less) of all City investments = $15,000,000. Is (A) less than (B)? Yes X No 3. LAIF (A) Total amount (book value) invested in LAIF by the City = $26,500,000. (B) Total amount allowed (35% of portfolio book value) of all City investments = $40,211,438. Is (A) less than (B)? Yes X No 4. Medium-Term Notes (A) Total amount (book value) invested in medium-term notes by the City = $12,000,000. (C) Total amount allowed (20% of portfolio book value) of all City investments = $22,977,964. Is (A) less than (B) at time of purchase? Yes X No 5. Excluded Investment Vehicles (A) Are any securities excluded by the Statement of Investment Policy currently included in the City's portfolio? Yes No X 6. Investment Management Agreements (A) Does the City have any investment manager or advisor agreements? Yes No X (if no, skip to number 7) (B) If so, was the agreement approved in advance by the City Council? Yes No (C) Has the City examined the methods and past performance of the investment manager? Yes No DATE OF 01 ITEM NO. PAGE. f7 (D) Pursuant to the agreement, does the City retain authority to make investment decisions? Yes No (E) Pursuant to the agreement, are the investments deposited with the City's custodian? Yes No 7. Maturity Limits (A) Does the City currently own any security with a maturity date in excess of five years? Yes No X (B) Does the City currently hold at least 15% and no more than 50% of its portfolio in securities at time of purchase with maturities equal to or less than 365 days? Yes No X (C) Does the City currently hold no more than 50% of its portfolio in securities at time of purchase with maturities between 366 days and 730 days? Yes No (D) Does the City currently hold no more than 35% of its portfolio in securities at time of purchase with maturities between 731 days and 1095 days? Yes No (E) Does the City currently hold no more than 30% of its portfolio in securities at time of purchase with maturities between 1096 days and 1460 days? Yes No (F) Does the City currently hold no more than 30% of its portfolio in securities at time of purchase with maturities between 1461 days and 1825 days? Yes No 8. Issuer Limits Does each issuer of Money Market Mutual Funds continue to meet the following requirements? (i) Is each issuer registered with the Securities and Exchange Commission under the Investment Company Act of 1940? Yes No N/A X (ii) Does the fund of each issuer carry the highest rating of at least two of the three largest national rating agencies? Yes No N/A X (iii) Has each issuer retained an investment adviser registered with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of $500 million? Yes No N/A X ITEM NO. -50 DATE OF PAGE, ft MEETING f/ejq Prepared By: Audited By: Josephine Chan Rosario Guzman Investment/Revenue Officer Accountant We hereby certify that for the month of August 2019, the investment actions of the City of Orange comply in all respects with the requirements of the California Government Code and the City's current Investment Policy except No. 7(B) and that there is sufficient cash flow to cover the next six months' expenditures barring any catastrophic natural disasters. Market values are obtained through ICE Data Pricing and Reference Data, the State Treasurer's Office, U.S. Trust and U.S. Bank. Certified By: Verified By: 7::&c Lki 4 4?4 A. Rohm City Treasurer DATED: October 25, 2019 William M. Kolbow Assistant City Manager Administrative Services Director / DATE OF ITEM NO. PAGE, /9 _MEF_it (N C') U) N' C) C-, 0) (N N U, mt C') (0 N 0) Ni N C) (C C) (CC) N r-- 6 C) C') C) . CC) C) It C') N- C) C') C) C') (C N' C') N- C) C') 0) C') (0 Cl) N- C) Cl) C) C') to N' C) C') 0) Cl) (0 114,889,821.65 114,758,714.99 114,893,843.41 123,358,515.86 122,742,369.94 123,362,981.78 C) (C C) (D (D C) (C C) (N (N (C (D (C C') C) (N C) (N co (N C) (N C) (N C') (N C) (N N (N m co co 000 U_ LL U U_ LL U (C N (C C) C) C) (N (N (N U) C) (N (N (C (C N C) C) (N N (C C) (C U.S. T-Note Co CL Q_ C <I- Portfolio total Portfolio total 4,998,532.37 C) N to C) C) C) Nr C) C) C:) C) C) C) C) C) (C 4,000,000.00 C) C) C) C) C) CD C) C) C) C) C) C) (N C) C) C) C) C) C) C) C) — C') N Cl) U, C) (7) C) C) N 5,000,000.00 4,000,000.00 C) C) C) C) C) C) C) (C C) 0 C) C) C) C) C) C) U) C) C) C) C) C) C) C) C) C) C) C)-C) (NC) C) C) C) C) C) C) C) C) N C) C) C) C) C) C) 0 UBS Financial Services UBS Financial Services N- C') N- C) C') C) C') (C Cl) N- C) C') C) Cl) (C N- (C C) C) (C C) (C C) N C) C) (C C) (N C) N N C) C) (N CN N-N co (N C) C) C) N Cl) C) (N N C) C) C) (0 cd a) (D C)C)(NC)CN- C) C) C) C) U) (N C) C) C) CC) C) W W C) C) co C) N - C) (N - C) C) C) C) C) C) C) C) co C) C) co C) C) —j CU) (3)C)C) C)C)C)C)C)C) C') C') (0 (0 N C') LU LU OCT C') (C 0 0 9- 0 O)LLI Q_ C',' 4- C) C) c<c,) 0 9- 0 0 MATURITY DESCRIPTION BANK/BROKER C) C) C) N C) N C) C) C) C) C) C) C) '— C) C) C) C) N C) C)C)C) C)C)C) ddddthd C) C) C) C) C) C) C) C) C) C) It C) C) C) C) C) C) 0) (= (z C) C) VI C) C) C) C) N C) N C) C) C) C) C) C) o C) C) C) C) C) C) C) C) C) C) C) C) 0 lyi CN U) C) C) C) C) C) C) C) C)_ (CNc") (O —U)C)C')(C C) C) C) C) C) C) C) C) C) C) C) C) o C) C) q C) C) C) C) C) C) C) C)C)C) C)C)C) C)C)C)C)C)C) C) C) C) C) C) C) C) C) C) C) C) C) C)C)C) C)CC) C)C)CC)C)C W C) C) 0 C) C) C) C) C) C) C) 6 C) C) C) C) C) C) C) C) C) C) C) C) C) (') (N U) C) C) C) C) C) C) C) C) C)_ C')C NN (O,—LUC)(O > a (D LO C)C)C)C)NC) (N (C C) (C C) C) (C _j C') C') L N(CNU) (Nc'i —(N >- C) (C C) C) C) C) C) C) W C) (N (C C) (C C) C) U) F- c' '' - N LO LO t I WI I C) C) C) I CNCN (N (N CD CD C) I CNN I N CN (CLU co N I (N NC) CN I 2 2 ~ 2i 2i —j-J ~ 11 ZZZZZZLL LL LL w LL w LL (ON (O(C(C(C(O(O C)C)C)C)C)C) (N z NC) C)(C(CNN C'4C') (N(N(N(N(N(N N co '' (C U) (C 0 0 () C/) W 0 Z CO <CC CCQ))C(OD 03 -- Q0C) CO OOSO ZOO 0O 5 O .6 .6 oIoöU)(/)oU) _j 00 F- CO m C13 co O 0 < . . I zz ZzzUUzu J3 i53w&5w < c/)u) LL LL (I) LOCAL AGENCY INVESTMENT FUND (LAIF) $ 10,172,770.44 PURCHASES I DEPOSITS (0 C,.) c-1 Tl- Sweep Account Various dates Various dates w C-) a- DESCRIPTION SETTLEMENT DATE $3,000,000.00 $10,172,770.44 $8,152,604.11 $8,152,604.11 $9,500,000.00 $9,500,000.00 $4,000,000.00 $4,000,000.00 z z z N IR C) N N co o co N z 04 C) o F- E E - EwE Ctf CU C — o c -o Co co 0) C) N co co MATURITIES I WITHDRAWALS I CALLS C) C) Various dates Co C) Sweep Account Various dates SETTLEMENT DATE DESCRIPTION LU 0 DATE OF ITEM NO. 11 PAGE '- MEETING 0 a. Rate of Return: IL - U C) 9 <N C. I- U c >. ca U. CU 00 5 Wa) - - '- Ca U) WWW to - to (A C) cm 0)I I C x 0 00) C. II Cl) >- .0 a) .0 U)U) 4) 4) m - OW E - f—i-- .0.0 -L. C.0 - 0 00Ca 00) cu EE m CV)0 0 Co (v I C Ca o a) -D - 0 Eo o.5 O 0 0 0 e U, .2 C Oar, I• -N Ca a) a,C. Id C-i D 9 > 2cu Ca0 C. o E .2o CaC. >0 o e a I. -C, -O C-1 0 'a C) 'a I- N • 0) 0 N - 0000 CC) C=; C14 2'o C.a)mO • ' S • S C. > 0)0)00 Cc a)- - cc >'- a) .0 .0 ° a) Ca 0 Ca (D . a) 0 CL > C Cl) > C. Ca 0 Ca - -C 2 a) CO E U) 0 C. •C a) Z - ., . a) C) 00 > - -- coO (0 o r- Ca.0 0 W U, N (0 . cu CL a CD CD O C C)O m cc 0 0.2 (fl CO CC E -LD5SE 1 I.. C) CO 00w-. cc CD o.2.2 > a) • ' N - 0 0 tj 0) C 0 Q) E CL - U a.: C) 0 0 ° U, o. E .0 CO a) a) <N 0)00u 00. '- W.0 C 00 CC >WO 0 0 CO <00 (04-1.0 >>o )00(I) coo 0u .?. 00 O I.- 00 00 >: -- .2.2.2 Ca Ca 0>> .9 °CO 000 Ooo 0(0 00 0 00 00 .0.0 I- I- f- OC.LL. 0.0. V) I.- Cb4J C1 00 U) 00 cO o C o ; C) — Oca 'I—> 0 Ca — co 0 I— 0)' C) CCI C, / o 0 0 co cn 0w CL 4)CC L6 CR 00 C,4 0 CD C'1 (C CD D C > C) L12 0) C) U- C) -C C) U- DATE OF ITEMNO. dle PAGE MEEI]NG. 1,6/9 C C —C')(OQQ LO 114- nvestment Portfo C (I) Cl) Cl) Cl) Cl) .— I— Weighted-average years to maturity for portfolio U) > U, CD CD $90,000,000 + $10,000,000 -F $20,000,000 + $30,000,000 + $40,000,000 + $50,000,000 -F $60,000,000 -I- $70,000,000 -F $80,000,000 + CD CD CD CD CD CD City of Orange Reconciliation of Total Cash and Investments to General Ledger As of August 31, 2019 Treasurer's Operating Cash and Investments Checking, Payroll & PMA - Wells Fargo 207,401 Treasurer's Investments 114,889,822 Cash in transit 9,235,577 124,332,800 lmprest Cash Fiscal Agent Cash and Investments 12,200 8,040,126 Total Cash & Investments 132,385,126 Total Cash and Investments per General Ledger 1 Plus Outstanding Checks 129,895,457 2,489,669 Total Cash & Investments 132,385,126 I Includes adjustment for month-end timing differences. GL Cash.2 DATE OF Attachment ITEM No. PAGE 2_c. MEETING City of Orange Fiscal Agent Investments As of August 31, 2019 Carrying Value Market or Contract Value Fiscal Agent Cash and Investments Assessment District 95-1 1996 Limited Obligation Improvement Bonds - U.S. Bank 207,027 207,027 First American Government Obligation Fund (2.01%) Community Facilities District 91-2 2013 Special Tax Refunding Bonds - U.S. Bank 1,576,446 1,576,446 First American Government Obligation Fund (2.01%) Federal National Mortgage Association (1.25%) Successor Agency 2008A Merged & Amended Tax Allocation Bonds - U.S. Bank 2,465 2,465 First American Government Obligation Fund (2.01 %) Successor Agency 2008B Merged & Amended Tax Allocation Bonds - U.S. Bank 526,155 526,155 First American Government Obligation Fund (2.01%) Community Facilities District 06-1 2015 Special Tax Refunding Bonds - U.S. Bank 1,697,283 1,697,283 First American Government Obligation Fund (2.01%) US Treasury Bond (4.375%) Successor Agency 2014A Merged & Amended Tax Allocation Refunding Bonds - U.S. Bank 3,575,750 3,575,750 First American Government Obligation Fund (2.01%) Successor Agency Refunding Bonds 2018A - U.S. Bank 455,000 455,000 First American Government Obligation Fund (2.01 %) Total Fiscal Agent Cash and Investments 8,040,126 8040,126 V DATE OF MEETING ITEM NO. PAGE .2 7 /9 3. Investment Report for September 2019 DATE OF ITEM NO. PAGE it MEFTNG 11-10-19 MONTHLY SUMMARY COMPLIANCE CERTIFICATE September 2019 Note: All concentration restrictions were obtained from Sections 53601 and 53635 of the Government Code or the City's Investment Policy as of June 11, 2019, whichever was the more stringent. 1. U.S. Agencies (A) Total amount (book value) of U.S. Agency securities owned by the City = $85,994,698. (B) Total amount allowed (75% of portfolio book value) of all City investments = $92,584,293. Is (A) less than (B) at time of purchase? Yes X No 2. Money Market Mutual Funds (A) Total amount (book value) invested in money market mutual funds by the City = $2,986,059. (B) Total amount allowed ($15 million or 20% of portfolio book value, whichever is less) of all City investments = $15,000,000. Is (A) less than (B)? Yes X No 3. LAW (A) Total amount (book value) invested in LAIF by the City = $19,500,000. (B) Total amount allowed (35% of portfolio book value) of all City investments = $43,206,003. Is (A) less than (B)? Yes X No 4. Medium-Term Notes (A) Total amount (book value) invested in medium-term notes by the City = $14,964,967. (C) Total amount allowed (20% of portfolio book value) of all City investments = $24,689,145. Is (A) less than (B) at time of purchase? Yes X No 5. Excluded Investment Vehicles (A) Are any securities excluded by the Statement of Investment Policy currently included in the City's portfolio? Yes No X 6. Investment Management Agreements (A) Does the City have any investment manager or advisor agreements? Yes No X (if no, skip to number 7) (B) If so, was the agreement approved in advance by the City Council? Yes No (C) Has the City examined the methods and past performance of the investment manager? Yes No DATE OF de ITEM NO. _ PAGE MEETING It -4- /9 (D) Pursuant to the agreement, does the City retain authority to make investment decisions? Yes No (B) Pursuant to the agreement, are the investments deposited with the City's custodian? Yes No 7. Maturity Limits (A) Does the City currently own any security with a maturity date in excess of five years? Yes No X (B) Does the City currently hold at least 15% and no more than 50% of its portfolio in securities at time of purchase with maturities equal to or less than 365 days? Yes No (C) Does the City currently hold no more than 50% of its portfolio in securities at time of purchase with maturities between 366 days and 730 days? Yes No (D) Does the City currently hold no more than 35% of its portfolio in securities at time of purchase with maturities between 731 days and 1095 days? Yes No (E) Does the City currently hold no more than 30% of its portfolio in securities at time of purchase with maturities between 1096 days and 1460 days? Yes No (F) Does the City currently hold no more than 30% of its portfolio in securities at time of purchase with maturities between 1461 days and 1825 days? Yes No 8. Issuer Limits Does each issuer of Money Market Mutual Funds continue to meet the following requirements? (i) Is each issuer registered with the Securities and Exchange Commission under the Investment Company Act of 1940? Yes No N/A X (ii) Does the fund of each issuer carry the highest rating of at least two of the three largest national rating agencies? Yes No N/A X (iii) Has each issuer retained an investment adviser registered with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of $500 million? Yes No N/A X DATE OF ITEM NO. Ir PAGE 30 MEETING oseph ne Chan Investment/Revenue Officer Prepared By: Audited By: ROsario Guzman Accountant We hereby certify that for the month of September 2019, the investment actions of the City of Orange comply in all respects with the requirements of the California Government Code and the City's current Investment Policy and that there is sufficient cash flow to cover the next six months' expenditures barring any catastrophic natural disasters. Market values are obtained through ICE Data Pricing and Reference Data, the State Treasurer's Office, U.S. Trust and U.S. Bank. Certified By: Verified By: A Richard A. A. Rohm City Treasurer DATED: October 25, 2019 William M. Kolbow Assistant City Manager Administrative Services Director ITEM NO. (PAGE .3 / J/.(,./q 1 23,240,1 76.23 123,445,723.79 114,893,843.41 114,889,821.65 114,758,714.99 123,486,058.69 F- cc F C cc C F- ('4 N (D C) C') to C) C) C) F- (N N F- CC) C) U). ( CD U) cc cc C) C) C) C) F- ('4 N C U) C) ('4 C) U) P (N co ('4 C) (N U) C) co 0 LL L1 z OC) 04 OC) 0 0 0 LU CD 0 I- 00 z <0 0o' _J U) LU 00 Iz ul LU U- > 3,000,000.00 C) C) C) 0 C) C) C) C) C6 N LU Ix I— 0 0 0 CL a) — '- o w C.)Q.. E ->- qcl > w-0 Ea' c2 F' MATURITY DESCRIPTION LU 0 3,000,000.00 000 C) C) C) C) (N C) C) (N cc qt w CCC) QDC)N- U) C) C 0 (N ('4 U) (N C') N- rl c') C) F) C C) C) (N U) r- 0 cc N (C) N- C) 0 cc U) C) LC) U)U)(NC) 00 00 C C 0 C) C') (0 C) C' cc (N C')' C) C) 0 U) C) CD C) C) cc cc cc cc N (N C') U) C) C) C) C) C) C) C) C) 0) 0) cc U) N- Cl) U) cc Cli U) C) 'I' C) C) C) N- C) N- C) C C) C) N- C) N- C).C).C) (QC) C)C)C)(C)(D C) C) 0 U) d CD C d d C) c') C) Cl) C) C 0 cc C) cc C) C) C) C) o C cc C_CC) C)CC)C cc d cc C) C) Q C) C) C) 0) C C) 0 C) C) C) C C) C) C) C) C) C) (NF)U) C)CC) CC)C)CC CC) U) N C') (0'- U) C) C') (0 C) Nt - - C) C) C) C C) C) C) C) C C) C) C 0 C) P C) P C) C) C) C) C) C) C) C) 0 CCC) CD 0 CiddddC) C) C) 0 C) C) C) C C) C C C) C) C) C_C_C) C)CC) C) C 0 C C 0 C) C) C) C) C) C) 0 C C C) C) C) C) C) C C) C) C) C) C) (NF)U) CCC) CC)C)CC)C0 -cca N-N-fl (d-U)(7) Ili U)- C) C) co U) C C C C) N- C) cc cc - (N U) C) U) C) C U) (N. (N U- N- U)N- U) 04 C14 '—(N C) C) C) U) C C C) C) C) C) cc cc C) (N U) C) U) C) C) U) (N (N tt-_ tN-U)U)U) c' c' - C) C) C C (N ,-_ (N (N (N (N C) CC) C) (N -_(N (N _- (N CO — co (N (N (N (N V Lo r- zzzzzz LL U. LL LL LL U C It It C) CU)N- (N N-0) C) _ C) (0 (0 cc U) C)N-C)C') cc C) cc cc C) C) C) C) cli vi C4 N- C C C C) C Cl q (DC CC C C) C) U)_ C)_ C)_ C)_ cc C) C C C) C C C) 0)_C_C_C- - - U) C') 5000,000.00 4000,000.00 6,000,000.00 C) C) d C C) C C C C') C) U) C) C) (N U) C U) U)(1) C) (N C U) C C (N (N (0 C) U)U)C')C (N N- (N C) (N C') C) C (N C (N (N C (N cc (N (N (N C) (N co co m co co 0000 U U LL LL LL U U LL cc (DCN-C') CD 0) 0) U)C'4N-U, (D (D C) U)U)N- C 00 C6 N U)C(.DCl) U) U) CD - C)ccC) 00 vi dcc- o (6 CD C) C) It N- e 00 co C) C)C)C)C) 0) 0) ('1 C6 N- NF (NCN cc CC)- a) a) U) CC)-,- l0 l0 ddr- r- coos C)C)(0w LC) Lc) U) CC)C)0) C0 cc CC - 14 (D (D C) 00(0W 00 00 C CC)C)0) C) C) N (NC(N qf (NN CCC N- U)CC) C) U)C)C) N- -C\J(N C C C U) C U) U)C)N- (N C) (N _ (N C (N C (N C CD (NU) cc C4 C) (N (N (N C) C) (N (N N- U) CNN N- 0) 00 _J _J II LL LL N- C) N- U.S. T-Note 0) 0) '— '— C) '— C') F) C) CO cc cc 00 — — 00 00 4- 00 (L (L LU U) <LU 0< (0 N- (0 C C C) (N (N (N (N Lr) (N _ (0 (0 N- C) C C) C) (N (N (N U) C) C 04 U) C) BANK! BROKER (I) LOCAL AGENCY INVESTMENT FUND (LAIF) U) CD C) C) (N (N N- C) (N Cl) N- cc Z O <CC zoo <oöo5 -J U) U) LU 00 00 = z j a) LU a LU LI U) U) (0 (0 U) (0 C C) C) C C C Z '4 (0 U) N- N- — (N (N (N (N (N (N U)U)U)N- 0 0 co U) LU CD CD 000 00 Cl) C C Q) a) C a) o — — 0 0 0 0 05 5 O •5 00 30 2 o cc cc 0 0 cc 0 -o ZZZLIiZ LI <cocnEcc (rjDLLJ cJ) 0 LU U- UBS Financial Services UBS Financial Services UBS Financial Services C) C) (N (') C) UBS Financial Services 000 a)a)G) 000 5:- U) LU I— U) 0 z LL -J I- I— LU ev - LU z 0 > Wells Fargo Bank - DArE OF MEETING NO. _f. PAGE 3 DATE OF MEETING ITEM NO. PAGE 33 September 2019 w 0 a- a- CALLABLE DESCRIPTION SETTLEMENT DATE $20,600,425.63 $3,200,000.00 $13,000,000.00 $2,966,791.67 $3,001,062.50 $ 20,600,425.63 3,200,000.00 $ 13,000,000.00 51!.t!I!J111111111 C,, Cl) a) ci >- >- PURCHASES I DEPOSITS 0 o 0 0 0) OD 0 It) 0 N N 0 0 0 N ("j N N N- 0 0 CD 0 0) CO CD LU LU N- N 0 0 N- vl- C14 ('4 N C 0 Sweep Account Various dates 0) 0 N 0) Various dates 0) 0 N 0 N 0) 0) 0 N 0 N 0) $24,014,986.28 $10,200,000.00 DESCRIPTION Sweep Account Various dates Various dates w C-) a- $24,014,986.28 $10,200,000.00 CALLABLE z z N- 0) r 0 00 C SETTLEMENT DATE DATE OF ITEM NO. PAGE MEEIING S.—oC C .9 .9 76 o • 0. > >5 0 E 0) o C () C C 0 C 2 o 0?; UI ui CD 0) 0 ch 0) 0 C CO 00 C.) C 0 C U) 0. a) .0 0)0 o o 3C N0 ,2a) a) 0.-c C — 0 U) •.- 0 C 0 0 (D C.) 2000 CO 0. U) >5 a) a) Mn E Cl) — Ca Cl) 0 o z CD C Eco . 0) C 0) 0 C E -c 0 - U) 03 'a 'a 0 I- C') 0 0. Source of Market Value: ICE Data Pricing and Reference Data provides market value on all instruments Portfolio Performance Measures 0 0 rt 0 MID NN 4' 4' 00 0..,- 0 a) 0. I- 00 U) >' 0 wow ow - 0 a) woo 00 cc m 00 -- •6 L() I- wow CD E E E - wow 00 CL 4-4-4' a) wow x 0 Cl)U)U) >' .0 0 U)(flU) -a U)U) 4)00 caco — I-I-,-. I-I- -- L. & coca 0000 EE >> CO).,Co.,- I C 1 (a •0 o o 0 0 0 C10)O -c') .2 (D Go co CD CO (1) 0. 10 - a) C-) C ca.9 o e 0 0 0 (0° CO 0 - r— C') 00 . C') () to - co Go co CD CD 0000(0 0. 0)0)00 G) 0) C a) >. a) -c a) .9 > 0. a) C) cu CD 0 .00 — o9 >- 0 C E >.a)cCa"E 0 Cfl ....o CD I.. I..) 00 L. a) a) N .0 'C-) EE E >.. 0) cu CD CflN c ''cn I- 14- COP 00 4- - 4-4->WW 0 .>>o >0 °'°— 04-14- •00C 00 cww -...2.2.2 , coca .2>>_ 00 CO000 000 0O'aw 00 (ro.(LQ. l- E- - OQLZ. 0.0. •1 0 -J OATh: OF ITEM NO. S PAGE 3METNG f/0* CD CD O)Q(DCNC) (Y) lq- Maturity Aging Schedule Weighted-average years to maturity for portfolio $20,000,000 -I- 6 C) C) C) C) C C) C) C) C) C) C) C) C) C) - r) $10,000,000 -F $50,000,000 -F C) C) Cl C) C C) C) C) C) C) CD C) C) C) $70,000,000 + $80,000,000 + $60,000,000 City of Orange Reconciliation of Total Cash and Investments to General Ledger As of September 30, 2019 Treasurer's Operating Cash and Investments Checking, Payroll & PMA - Wells Fargo 347,951 Treasurers Investments 123,445,724 Accrued Interest on Investments 4,604 Cash in transit 148,338 123,946,617 Imprest Cash 12,200 Fiscal Agent Cash and Investments 5,883,751 Total Cash & Investments 129,842,568 Total Cash and Investments per General Ledger 127,833,777 Plus Outstanding Checks 2,008,791 Total Cash & Investments 129,842,568 1 Includes adjustment for month-end timing differences. GL Cash. Attachment V //P /9 ITEM NO. PAGE 3 g MEETING. City of Orange Fiscal Agent Investments As of September 30, 2019 Carrying Value Market or Contract Value Fiscal Agent Cash and Investments Assessment District 95-1 1996 Limited Obligation Improvement Bonds - U.S. Bank 309 309 First American Government Obligation Fund (1.98%) Community Facilities District 91-2 2013 Special Tax Refunding Bonds - U.S. Bank 3,350,864 3,350,864 First American Government Obligation Fund (1.98%) Federal National Mortgage Association (1.25%) Successor Agency 2008A Merged & Amended Tax Allocation Bonds - U.S. Bank 2,469 2,469 First American Government Obligation Fund (1.98%) Successor Agency 2008B Merged & Amended Tax Allocation Bonds - U.S. Bank 619 619 First American Government Obligation Fund (1.98%) Community Facilities District 06-1 2015 Special Tax Refunding Bonds - U.S. Bank 2,523,962 2,523,962 First American Government Obligation Fund (1.98%) US Treasury Bond (4.375%) Successor Agency 2014A Merged & Amended Tax Allocation Refunding Bonds - U.S. Bank 1,170 1,170 First American Government Obligation Fund (1.98%) Successor Agency Refunding Bonds 2018A - U.S. Bank 50 50 First American Government Obligation Fund (1.98%) Total Fiscal Agent Cash and Investments 5,879443 5,879,443 DATE OF ITEM NO._ PAGE. ff_MEETNG_ /1 4/9 REVENUE COMPARISON Four Quarters - Fiscal Year To Date (Q3 to Q2) 2017-18 2018-19 Point-of-Sale 36.485.055 $43,062.478 County Pool 4.923.957 6,005.137 State Pool 20,711 21.130 Gross Receipts S41,429,722 S49,088,745 /1/It 20/9) Orange In Brief range's receipts from April through June were 31.2% above the second sales period in 2018. While this comparison was inflated due to CDTFA's transition to a new report- ing system in the prior year that tem- porarily delayed distributions to the City, actual sales were still up an ex- ceptional 12.4% when adjusted for proper payment timing. he consolidation of operations in Orange by several fuel and ser- vice station outlets was the primary factor in this quarter's exceptional growth. his change had the additional im- pact of bolstering allocations from the countywide use tax pool as this funding is divided proportionately among county agencies based on relative cash performance. Orange therefore received a larger share of the pool funding as the City's rate of growth significantly exceeded the regional and statewide trend. he closure of a local car dealer and a State payment correction for a medical-biotech supplier were the primary negatives. et of aberrations, taxable receipts for all of Orange County grew 4.0% over the comparable time period; the Southern California region was up 2.6%. rhii d,i,ailer R t' tot S'e 0/1(1 ()mii fit S ih c (- ip; ii SALES TAX BY MAJOR BUSINESS GROUP 2nd Quarter 2018 0 2nd Quarter 2019 $3,200,000 $2,800,000 $2,400,000 $2,000,000 $1,600,000 $1,200,000 $800,000 $400,000 $0 Fuel and Service Stations General Autos Consumer and Goods Transportation Business County Restaurants Building Food and and State and and and Industry Pools Hotels Construction Drugs Top 25 PRODUCERS IN ALPHABETICAL ORDER w CL New Flyer of America NIKE Factory Store Ormco Corporation Ralphs SC Fuels Selman Chevrolet Stadium Nissan Target Thompson Building Materials Toyota Lease Trust Toyota Scion of Orange Verco Decking Walmart Beacon Roofing Supply Best Buy Cardlock Fuels System Clafin Medical Equipment David Wilsons Ford David Wilsons Villa Ford DMG Corporation Enterprise Rent A Car Foundation Building Materials Home Depot L&WSupply MS International Published by HdL Companies in Fall 2019 www.hdlcompanies.com I 88.861.0220 Cons.Goods 14% Autos/Trans. 14% 9% Restaurants 10% 13% Q2 2019 City of Orange Sales Tax Update California Overall The local one percent share of Cal- ifornia's sales and use tax from April through June sales was 20.4% higher than the same quarter in 2018. How- ever, the actual gain came to 2.9% after factoring for online filing issues and ac- counting anomalies. Fiscal year 2018-19 ended with an increase of 3.6% over the previous year after similarly adjusting for reporting aberrations. The quarter exhibited continuation of a recent softening for most taxable categories. Rising used car sales and rentals helped offset what was other- wise, a generally flat quarter for the auto-transportation group. An accel- eration in online shopping boosted receipts from county wide pools while gains for brick and mortar stores were limited to value-priced apparel, discount department stores and jewelry. Restaurant patronage appears to be leveling with a shift toward lower cost dining options that produced relative- ly modest gains for the group when compared to previous quarters. New cannabis operations resulted in a small rise in food and drug receipts. A 2.5% gain in business-industrial sales and use tax revenues came primarily from online fulfillment centers, logis- tics and utility company purchases and ongoing investment in automation and information technology. A similar rise in receipts from the building-construc- tion group was due to a variety of infra- structure and onetime special projects that offset declines in material purchases for new \iome construction. Marketplace Facilitator Act Effective Oct. 1, 2019, companies such as Amazon, eBay and Google who pro- vide sales tax related services to other retailers are required to assume the obli- gation for collecting and remitting their client's sales and use tax. The definition of sales-related services includes payment processing inventory and shipping of merchandise, order taking, providing customer service, or assisting with re- turns and exchanges. The Marketplace provision was part of AB 147 which was adopted to imple- ment California's approach to the U.S. Supreme Court decision in South Da- kota v. Wayfair Inc. AB 147 requires out-of-state retailers with annual combined sales of $500,000 or more to now collect and remit this state's sales and use tax from its custom- ers. Applying the $500,000 threshold to the sum total of all the third-party trans- actions that facilitators process for their clients, is hoped to produce moderate gains in previously uncollected revenues for the state, cities, counties and local transaction tax districts. Facilitator tax remittances from mer- chandise inventoried in California will be allocated to specific jurisdictions while receipts from deliveries outside of the state will be distributed via the pools. Some facilitators have begun to collect and remit taxes ahead of this deadline. This is evidenced by new pool alloca- tions and increases in direct allocations to certain jurisdictions. SALES PER CAPITA $8,000 $6,000 $4,000 $2,000 $0 Q2 02 Q2 Q2 16 17 18 19 Orange County California REVENUE B BUSINESS GROUP Orange This Quarter ORANGE Top 15 BUSINESS TYPES 'In thousands of dollars Orange County HdL State Business Type Q219' Change Change Change Building Materials 746.2 22.4% 26.8% 341% Casual Dining 584.1 25.4% 25.1% 24.5% Contractors 335.2 13.3% 1.1% 26.8% Department Stores 180.8 -0.5% -23.7% -24.7% Discount Dept Stores -CONFIDENTIAL- 22.9% 26.3% Electronics/Appliance Stores 258.4 11.6% 10.1% 7.0% Family Apparel 299.9 22.6% 35.2% 45.3% Grocery Stores 232.4 8.3% 3.8% 9.6% Light Industrial/Printers 277.6 113.4% 48.6% 51.4% Medical/Biotech 309.3 158.8% 95.9% 39.8% New Motor Vehicle Dealers 1,207.4 -4.3% 22.8% 5.4% Petroleum Prod/Equipment -CONFIDENTIAL- 23.9% 15.5% Quick-Service Restaurants 465.0 15.5% 15.8% 15.9% Service Staons 1,198.2 251.0% 61.7% 51.4% Shoe Stores 216.7 11.1% 5.4% 9.2% Total All Accounts 11,224.9 31.1% 21.5% 20.1% County & State Pool Allocation 1,612.4 32.3% 22.1% 22.4% Gross Receipts 12,837.4 31.2% 21.6% 20.4% HdL Companies SALES TAX TRENDS AND ECONOMIC Sonoma County, CA HdL provides relevant information and analyses on the economic forces affecting California's local government agencies. In addition, HdL's Revenue Enhancement and Economic Development Services help clients to maximize revenues. HdL serves over 500 cities, counties and special districts in California and across the nation. Delivering Revenue, Insight and Efficiency to Local Government Since 1983 HDL CONSENSUS FORECAST - OCTOBER 2019 STATEWIDE SALES TAX TRENDS EJ 2019/20 I 2020/21 TOTAL 1.6% I 1.9% 2019/20 I 2020/21 -0.3% 10.3% New car pricing is at record levels, up four percent over the prior year, as buyers opt for more expensive SUVs, features and safety equipment. The higher pricing has helped offset the impact of declining new car sales volume and incentivized increases in used car sales. Overall allocations are expected to remain relatively stable with these trends in play, though the risk of a self-made recession resulting from simmering trade tensions remains a wildcard. The next two quarters will also be difficult in comparison to last year when an emerging vehicle manufacturer fulfilled a large backlog of orders for a newly released model. A Building/Construction 2.6% 1 3.0% While there are still many development and infrastructure projects in the pipeline note that residential permits are down in three of the last four quarters. This is in response to slumping home sales where recent activity is tied to those moving up in home size while first-time buyers wait to put aside down-payment cash. Despite low interest rates, buyers are losing ground as rising prices eat up mortgage savings. Single family and multifamily permit totals are well below 2018 levels but commercial construction and home improvement work will help counter the eventual drop in housing starts that come in four to eighteen months. HdLO Companies Fuel/Service Stations -1.0%11.0% Recent conflicts in the Middle East have disrupted what was a quiet period relative to global crude oil. While it appears to only be temporaryat this moment, should conflicts persist the expectation is that global crude oil prices would rise, and local gas prices could follow. Barring future impacts, prices may begin to decrease as refineries switch over to the California seasonal winter blend, possibly helping consumer spending in other categories. General Consumer Goods -0.6%1-0.3% Brick and mortar trends remain unstable throughout the balance of the calendar year and beyond. Just as the evolution of retail is promoted by shifting consumer expectations, perception drives customer spending. As we approach the end of 2019 shoppers may begin to feel the effects of increased prices related to tariffs on Chinese consumer goods, a tightening labor market and increased uncertainty surrounding an election year. Ease of choice via technology is expected to further strain declining in-store activity. How these headwinds frame buyer perceptions and behavior are key factors shaping this sector's performance over the next few months. I ~; I Autos/Transportation IF S. Business/ Industry 2.3% I 2.0% Overall moderate growth is expected to continue although various surveys suggest that trade tensions, shortages of key labor skills and tariff uncertainty will slow capital investment and expansion plans for some industries over the next few quarters. Spending on information technology, artificial intelligence and labor-saving innovations is unlikely to be deferred. Purchases of equipment and supplies to support logistics services and power utility infrastructures are also expected to remain strong. Food/Drugs 1.5% I 1.5% Consistent with other groups, technology investment is contributing to new ways of reaching customer's attention. Grocers are piloting in-store digital media networks designed to influence shoppers spending behaviors. Floor space is being repurposed into bars and cooking studios while shelves are stocked with ever increasing demands for produce, dairy and other products created locally. Retail pharmacies have also revamped footprints to offer primary medical services and lab testing areas. While these changes are favorable to consumers who demand great experiences, repurposed stores may only generate modest tax improvement. Proposition 172 projections vary from statewide Bradley-Burns calculations due to the state's utilization of differing collection periods in its allocation to counties. HdL forecasts a statewide increase of 1.95% for Fiscal Year 2019/2020 and a gain of 1.86% in 2020/2021. tt Restaurants/ Hotels 2.3% I 2.0% Fast-casual chain restaurants and deliveries are fueling growth; however, rising food, rent and labor prices coupled with a decline in foot traffic continue to plague the restaurant industry and put a damper on overall gains. Guests are eating out less and opting for cheaper selections when they do partake in dining experiences away from their homes. Hotel development is projected to be the slowest in a decade (only 1%), with the lower-priced extended stay market the current trend. Fewer tourists in some regions of the State are constraining food and beverage sales from existing hoteliers. State and County Pools 7.5% I 6.0% Implementation of AB147 began April 1, 2019; this is California's enabling legislation tied to the SCOTUS Wayfair decision which established economic nexus as the basis for collection of use taxes by out of state retailers. Marketplace facilitator's obligations for third party sellers begins October 1. Pools growth over the coming quarters reflects new revenues from merchants who have not remitted taxes previously. Deployment of digital development strategies ranging from augmented reality to voice activated procurement are appeasing both consumers and businesses. Online sales continue to remain a bright spot for the foreseeable future. (6 II" ,\ III NATIONAL AND STATEWIDE ECONOMIC DRIVERS 4 BEACON ECONOMICS 2019 /201 2020/21 U.S. Real GDP Growth 2.3% I 2.0% There has been a lot of alarming media coverage about the potential impact of the trade war but, currently at least, the hype is greater than the reality. The tariffs have indeed been a challenge for groups and businesses directly impacted by them, but it is easy to underestimate the human ability to mitigate when faced with a crisis. The ability to resource, renegotiate, and simply pass through the costs of the recent tariffs has limited the damage they have done to economic activity. Although exports fell in the second quarter, imports have been rising on the strength of the U.S. economy. So far, the disruptions have not slowed trade—only diverted it. Moreover, Beacon Economics doesn't see the trade turbulence at this level to be a threat to the broader economic expansion. This could change, of course, if the disputes spiral, and we are concerned about the potential long run consequences of conflating trade policy and foreign policy. U.S. Unemployment Rate 3.9% I 4.0% With the U.S. unemployment rate (3.7%) at a 50-year low, and wage growth accelerating, expect solid consumer spending numbers for the balance of calendar year 2019 despite the modest slowing of job and GDP growth. This will help to offset other issues that continue to confront the economy. Because the consumer sector comprises the lion's share of spending in the economy, growth will be sustained in the coming quarters despite concerns about trade, a global slowdown, and even the inverted yield curve. Indeed, consumer spending is on sound footing right now, supported by job growth, income gains, and increases in wealth. Consumers have also exercised prudence in their use of credit, with household debt service as a share of income holding steady at 10% for over five years. CA Total Nonfarm 1.6% I 1.4% , Employment Growth Having barely savored the fact that the U.S. economy is the midst of a record-breaking expansion, attention has suddenly shifted to the question of when the next recession will begin. Admittedly, there are areas of concerns including U.S. trade conflicts, weaker global economic conditions, Brexit, and the inverted yield curve. However, despite the uncertainty that continues to fuel these concerns, and despite chronic homegrown problems with respect to the labor force and housing. the California economy has performed solidly through the first half of the year and will stay on track into 2020. As of July, jobs grew statewide at a year-over-year rate of 1.8%, comfortably above the long run rate of 1.2% (since 1991) and a just a hair behind last year's 1.9% growth rate. Additionally, with a tight labor market and steady job growth, wages continue to climb. CA Unemployment Rate 4.1% I 4.1% Looking beyond the rhetoric and headline-catching hyperbole, the data clearly show a California economy that is humming along. Having hit a record low of 4.1% in July 2018, the state's unemployment rate has been at or slightly above that rate in the months since. To be sure, California is not without problems. While some are national or even international as described above, others are homegrown, most notably the housing shortfall and its consequent impact on both home prices and rents. Yet, California's labor market and its industries have shown remarkable resilience. CA Median Existing $496,950 1$509,500 Home Price Median home prices are a mixed bag. Prices are up across most areas of the state but flat or decreasing in some places. Home sales declined steadily last year in response to rising mortgage rates. With those rates turning down since late 2018, sales improved modestly in the first half of 2019. Moreover, sales in the second half of this year should improve over the first half. Meanwhile, rents have continued to rise over the year against a backdrop of stable or declining vacancy rates, while statewide residential construction has declined compared to last year's levels, making an already chronic housing shortfall even worse. CA Residential 118,630 I 120,280 HI' Building Permits Many local leaders want their cities to grow, but the structure of state and local taxation discourages residential development, as it adds little to local government coffers but imposes public service costs. In California, there are often greater fiscal benefits from other land uses that directly or indirectly generate taxable sales and other revenue streams for a city's general fund. And, at present, building industry constraints pose yet another complication, notably construction labor, which is expensive and limited in availability with California's economy at full employment. There is no doubt that California needs more housing - more housing of all types: multi-family as well as single-family, affordable as well as market-rate units, and the urgency to deal with this problem has never been greater. Beacon Economics I BeaconECofl.com HdL Companies 120 S. State College Blvd., Suite 200 Brea, CA 92821 Telephone: 714.879.5000 • 888.861.0220 Fax: 909.861.7726 California's allocation data trails actual sales activity by three to six months. HdL compensates for the lack of current information by reviewing the latest reports, statistics and perspectives from fifty or more economists, analysts and trade associations to reach a consensus on probable trends for coming quarters. The forecast is used to help project revenues based on statewide formulas and for reference in tailoring sales tax estimates appropriate to each client's specific demographics, tax base and regional trends. Beacon Economics Southern California Office 5777 West Century Boulevard, Suite 895 Los Angeles, CA 90045 Telephone: 310.571.3399 Fax: 424.646.4660 Beacon Economics has proven to be one of the most thorough and accurate economic research/analytical forecasting firms in the country. Their evaluation of the key drivers impacting local economies and tax revenues provides additional perspective to HdL's quarterly consensus updates. The collaboration and sharing of information between Beacon and HdL helps both companies enhance the accuracy of the work that they perform for their respective clients. -1 Hdti,Companies 714.879.5000 1 hdlcompanies.com