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Item 5 - Treasurer's Reports Jan-Mar 2020AGENDA ITEM May 12,2020 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 1. SUBJECT Monthly Treasurer's Reports for January, February, and March 2020. 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 lnvestment Policy has been adopted by the City Council of the City of Orange as Resolution 1 1 163 and is in accordance with the California Government Code Sections 53600 et seq. Per the lnvestment 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 lnvestment 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 lnvestment Policy is included. 1ITEM 0511212020 REVIEW: City Manager _ Finance _ Balance @ 1213112019 Monthly Activity: Cash Received Cash Disbursed Balance @0313112020 The lnvestment 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 lnvestment Advisory Committee (lAC). Summary of chanqes in Treasurer's cash and investments: Treasurer's Operating Cash & lnvestments(1) $130,549,088 (1)lncludes 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 January 202O The January cash receipts exceeded cash disbursements by $6'603'210 The city received $7,162,506 in property tax in lieu of vehicle license fee, $6,484,291 in property tax ($3,566,700 for the City and $2,917,591 as property tax increment collected for the Successor Agency), and $3,510,189 in sales tax revenue. During the month, large disbursements included payments totaling $5,702,965 to orange County Water District for pumping assessments, $1,907,31S to PERS for employee benefits, $500'208 to All American Asphalt for street rehabilitation, and $241 ,350 to Municipal Water District of Orange County for purchased water. ln the month of January, one Federal Farm credit Bank note matured. we purchased one Federal Home Loan Bank note (1 .7 5o/o for 2.5 years). The city's balance in L.A.l.F. on January 31 was $23,200,000 or an increase of $4,600,000 due to cash receipts exceeding cash disbursements during the month' For the month of February 2020 The February cash disbursements receipts exceeded cash by $1'683,640. Large disbursemenis included payments totaling $1 ,760,052 to PERS for employee benefits, $1 ,O25,222 to the city of La Habra for orange's share of the cost to construct and operate two navigation centers in the North orange county to provide services to people experienCing homelessness, $930,242 to U.S. Bank for debt service, $449,234 to the California State Department of Health Care Services (DHCS) for a reimbursable advance to obtain additional federal Medicaid dollars for unreimbursed ambulance transport services, and $208,181 to Alfaro Communications Construction for street improvements. During the month, the City received $5,764,723 in in sales tax revenue. ln the month of February, one Federal Farm Credit Bank note and one Federal National Mortgage Association note matured. One Federal National Mortgage Association note was called. we purchased one Federal Home Loan Mortgage Corporation note (1.60% 2ITEM 0sn212020 49,698,567 Q6.120.748\ $13,1126P02 for 2.25 years), one Federal Farm Credit Bank note (1 .80ok tor 4.25 years), and one Federal Home Loan Bank note (1.95% for 5 years) The City's balance in L.A.|.F. on February 29 was $30,800,000 or an increase of $7,600,000 mainly due to the investment activity. For the month of March 2020 The March cash disbursements exceeded cash receipts by $1,341,751. Large disbursements included payments totaling $1 ,774,388 to PERS for employee benefits, $933,926 to U.S. Bank for debt service, $344,812 to Alfaro Communications Construction for street improvements, and $231 ,280 to Sidepath for data backup and recovery solution. The City received $3,233,276 in sales tax revenue and $2,111,218 in property tax revenue. ln the month of March, one Federal Home Loan Mortgage Corporation note, one Federal Farm Credit Bank note, and one Federal Home Loan Bank note were called. We purchased one Federal Farm Credit Bank note (1 .21ohfor 4 years). The City's balance in L.A.|.F. on March 31 was $41 ,700,000, or an increase of $10,900,000 because of the investment activity. Credit ratinq on investments During this period, there was no change to the credit rating on the investments in the investment portfolio. lnvestme nt Advisorv Committee (lAC) The most recent IAC meeting was May 6,2020 while the next quarterly Committee meeting is to be scheduled for August 2020. 7. ATTACHMENTS 1. lnvestment Report for January 2020 2. lnvestment Report for February 2020 3. lnvestment Report for March 2020 3ITEM 05nzt2020 1. !nvestment Report for January 2020 MONTHLY SUMMARY COMPLIANCE CERTIFICATE Januarv 2020 Note: All concentration restrictions were obtained from Sections 53601 and 53635 ofthe Govemment Code or the City's Investment Policy as ofJune I l, 2019, whichever was the more stringent. l. U.S. Agencies (A) Total amount (book value) of U.S. Agency securities owned by the City = $89.995.657. (B) Total amount allowed (75% of portfolio book value) of all City investments - $ 102,.t5.1,519. Is (A) less than (B) at time ofpurchase?Yes X No 2. Monev Market Mutual Funds (A) Total amount (book value) invested in money market mutual funds by the City: $2.104.158. (B) Total amount allowed ($ l5 million or 20% ofportfolio book value, whichever is less) of all City investments: $15,0 00.000. ls (A) less than (B)? 3. LAIF (A) Total amount (book value) invested in LAIF by the City = $23,2 00.000. (B) Total amount allowed (35% of portfolio book value) ofall City investments : S{7.812,109. 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 = s21,306,211. (B)Total amount allowed (20% of portfolio book value) ofall City investments: 527.321.205. 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. Investme nt Manasement Asreements (A) Does the City have any investment manager or advisor agreements? Yes (if no, skip to number 7)NoX (B) lfso, 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 Yes X No- (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. Maturih Limits (A) Does the City currently own any security with a maturity date in excess offive years? Yes No X (C) Does the City currently hold no more than 50oZ of its portfolio in securities at time of purchase with maturities between 366 days and 730 days? Yes X No (D) Does the City currently hold no more than 357o of its portfolio in securities at time of purchase with maturities between 731 days and 1095 days? Yes X No (F) Does the City currently hold no more than 3070 of its portfolio in securities at time ofpurchase with maturities between I46l days and 1825 days? Yes X No 8. Issuer Limits Does each issuer of Money Market Mutual Funds continue to meet the following requirements? ) 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- 2 No N/A X (B) Does the City currently hold at least l5oh and no more than 50% of its portfolio in securities at time of purchase with maturities equal to or less than 365 days? Yes X No (E) Does the City currently hold no more than 30o4 of its portfolio in securities at time ofputchase with maturities berween 1096 days and 1460 days? Yes X No Prepared By:Audited By: t1 tL.rfZ* osephine Chan Rosario Guzman Accountantlnvestment,/Revenue Offi cer We hereby certify that for the month of January 2020, 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 Inv€stment Policv and that there is sufficient cash flow to coyer 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: DATED: April 27. 2020 Richard A. Rohm City Treasurer William M. Kolbow Assistant City Manager Administrative Services Director ."?ryrw BANK / BROKER PURCHASE DATE DESCRIPTION City of Orange lnvestment Portfolio January 31, 2020 (Sorted by TYPE) MATURITY OATE PAR VALUE BOOK VALU E MARKET VALUE RATE YIELD (l) LOCAL AGENCY INVESTMENT FUND (LAIF) City OSA 1.967 1.967 16.400.000.00 6,800,000.00 16.400.000.00 6,800,000.00 16.400,000.00 6,800.000.00 1.967 1.967 23,200,000.00 23,200,000.00 23,200,000.00 (ID FEDERAL HOME LOAN BANK Stifel Nicolaus & Co lnc. UBS Financial Setuices UBS Financial Setuices 7t27 t2016 12116t2019 1t22t2020 FHLB FHLB FHLB 7t27t2021 6t16t2023 7t22t2022 1.516 1.875 1.750 7,000,000.00 8,000,000.00 8,000,000.00 6.998.436.67 8,000.000.00 8,000,000.00 7 .000 ,004 .2? 8,009.395.04 8,006,884.24 1.500 1.875 1.750 23,000,000.00 22,998,436.57 23,016,283.5s FNMA FNMA FNI\,4A 4t27 t2020 5t25t2021 2t25t2020 11t30t2020 7 t27 t2021 1.450 1.750 1.500 1.707 1.550 6.000.000.00 1s,000,000.00 9,000,000.00 4,000,000.00 6,000,000.00 6,000,000.00 15,000.000.00 9,000.000.00 3,999.631.55 6,000,000.00 5.999,196.90 15,00't.949.70 9.000.016.56 3,997.075.84 6,001.388.82 1.450 1.750 1.500 1.500 1.550 /10,000,000,00 39,999,631.55 39,999,627.82 (lV) FEOERAL FARM CREDIT BANK UBS Financial Services UBS Financial Services UBS Financial Services 2t25t2016 6t1412016 9t312019 FFCB FFCB FFCB 211712021 211812020 9t312024 5,000,000.00 6,000,000.00 13,000,000.00 4,998,950.89 6,000.000.00 13,000,000.00 5,000,010.90 5,999,736.24 13,020.695.74 1.620 1.360 2.000 1.649 1.360 2.000 (V) FEDERAL HOTIE LOAN I{ORTGAGE CORPORANON Stifel Nicolaus & Co lnc. 9l2il20'19 FHLMC 24,000,000.00 3.000.000.00 23,998,950.8S 2,998,637.89 21,020,142.44 3.000.392.52915t20232.050 2.050 3,000,000.00 2,998,637.89 3,000,392.52 (vD MEDtUttt TERtir NOTE UBS Financial SeNices UBS Financial Services UBS Financial Services UBS Financial Services 10t512016 6t2912017 9t2012019 1211012019 Apple Toyota Coca Cola HSBC 8t412021 12t29t2020 9t6t2024 612312024 1.550 2.000 1.750 3.500 2,000,000.00 10,000,000.00 3,000,000.00 6,000,000.00 2,000,000.00 10,000,000.00 2,967,335.53 6,338,875.44 1,9S9,307.28 9,956,419.20 3,020,811.66 6.412,487.94 1.550 2.000 2.000 2.142 {VII) MONEY MARXET MUTUAL FUNOS ITREASURY) Wells Fargo Bank U.S. T-Note 21,000,000.00 2 ,'l 0.t, 1 57.89 21,306,210.97 2.104,157.8S 21,389,026.08 2,10.1,'157.891.442 1.442 Portfolio total Portfolio total 2,104,157.89 2,101,157.49 2,104,'t 57.89 136,304,'157.89 136,606,025.86 136,729,930.74 4 Port.T.xlsx 1-31-2020 12-31-2019 ( ) FEDERAL NAnONAL ORTGAGE ASSOCIAnO Stifel Nicolaus & Co lnc. 412712016 UBS FinancialseMc€s ,26/2016 UBS Financial SeMces 5/26/20'16 Stifel Nicolaus & Co lnc. 512712016 UBS FinancialSeMces 712712016 1rr,401,360.1' 12 I nvestment Transactions January 2020 SETTLEMENT DATE DESCRIPTION RATE YIELD CALLABLE PAR PRICE PURCHASES / DEPOSITS Various dates Sweep Account 1.442o/o 1.442o/o N/A $27,982,099.47 $27,982,099.47 Various dates L.A.I.F 1.967% 1.9670/o N/A $ 16,692,204.62 $16,692,204.62 1t22t2020 Federal Home Loan Bank UBS Financial Services 712212022 lnvestment # 2'1291 1.750% 1 .750'/o Yes $ 8,000,000.00 $8,000,000.00 5 I nvestment Transactions January 2020 SETTLEi'ENT OATE DESCRIPTION RATE YIELD CALLABLE PAR PRICE MATURITIES / WITHDRAWALS / CALLS Various dates Sweep Account 1.442./. 1.4420/0 N/A $ 29,683,714.66 $29,683,714.66 Various dates L.A.I.F 1.967./" 1.967%N/A $ 12,040,496.17 $'12,040,496.17 1t312020 Federal Farm Credit Bank UBS Financial Services 'l13/2020 lvlatured - lnvestmenl # 21281 1.6250k 1.625%N/A $ 4,000,000.00 $4,000,000.00 Buy.Sell.T.nsx 6 City of Orange lnvestment Portfolio January 31, 2020 Po rtfol i o Perfo rm a n ce Meas u res Portfolio lndexes Rate of Return: Portfolio Effective Rate of Return - for January Portfolio Effective Rate of Return . for Fiscal Year-to-date Portfolio Yield to Maturity at 1/31/2020 Total Rate of Retum: Total Rate of Return " for January (not annualized) Total Rate of Return - for 2019 Y-T-D - (not annualized) Other: Portfolio Weighted-Average Time to Maturity Market Value as percent of Portfolio,ll3'll2020 Market Value as percent of Portfolio,1213112019 Federal Agency Securities as percent of Portfolio, 'll31l2O2O 1.77o/o 't.8'l% 1.79% o.220/0 0.22% 1.62 100.09% 99.8s% 65.88% 1.520/0 1.55% 1.53o/o 3 month Treasury -- January Average 6 month Treasury -- January Average 1 year Treasury - January Average Years Portfolio Yield to Maturity: weighted-average yield to maturity (or call dale, if applicable) for entire portfolio; in the case of coupon investments, includes an adjustment to the face rate for any premium paid or discount received. Sourco of Market Value: ICE Data Pricjng and Reference Data provides market value on all inslrumenls. Total Rato ol Rotum: groMh or decline in the value olthe portfolio, including both changes in the market value and income, as a proportion of lhe starting value, adjusted on a time-weighted basis (per Modifed Dietz Method) for cash flows into or out of lhe portfolio during the period. The Modified Dietz Method assumes a conslant rate of return on the portfolio during the period and is not based on daily valuations. 7 0.54yo 1-3 Year Treasury lndex-Total Rate of Return for January (not annualized) 0.547o l-3 Year Treasury lndex-Total Rate of Retum for 2O2O Y-T-D (not annualized) Port.T.xlsx 412712020 4,57 PM City of Orange lnvestment Portfolio January 31,2020 Toyota Medium Term Note $10.0 7.32% Yield 2.000o/o Money Market Mutual Funds $2.1 1.s4% Yield 1.442%Apple Medium Term Note $2.0 1.46% Yield 1.550% Local Agency lnvestment Fund $23.2 16.98% Yield 1.9670/o Federal Home Loan Bank $23.0 16.84% Yield 1.722% Federal Home Loan Mortgage Corporation $3.0 2.20% Yield 2.050o/o Federal Farm Credit Bank $ 24.0 ',17.570/o Yield 1.7650/0 Federal National Mortgage Association $40.0 29.28o/o Yield 1.615% Total Portfolio $1 36,606,026 Cha( Dollar Values in Millions of Dollars I Coca Cola Medium Term Note $3.0 2.170/o Yield 2.000% HSBC Medium Term Note $6.3 4.64% Yield 2.143% :.:. City of Orange lnvestment Portfolio January 31,2020 Maturity Aging Schedule Maturing in 0-1 years 1-2 years 2-3 years 3-4 years 4-5 years Book Value 60,303,789 34,997,388 8,000,000 10,998,638 22,306 ,211 $136,606,026 1000/o Weighted-average years to maturity for portfolio ='t.62 $100,000.000 $90,000,000 $80,000,000 $70,000.000 $60,000,000 $50,000,000 s40,000,000 $30,000,000 $20,000,000 $'10,000,000 $- 0-1 years 1-2 years 2-3 years 3-4 years 4-5 years 9 Matur.T.xlsx 44o/o 260/o 60/o 8o/o 160/o Total Cash and lnvestments per General Ledger 1 Plus Outstanding Checks Treasurer's Operating Cash and lnvestments Checking, Payroll & PMA - Wells Fargo Treasurer's lnvestments Accrued lnterest on lnvestments Cash in transit lmprest Cash Fiscal Agent Cash and lnvestments City of Orange Reconciliation of Total Cash and lnvestments to General Ledger As of January 31, 2020 Total Cash & lnvestments Total Cash & lnvestments 213,966 '136,606,026 101,437 230,869 '137,152,298 't2,200 3,219,757 140,384,255 139,459,890 924,365 140,384,255 1 lncludes adiuslmenl lor month-end liming diflerences- 10 GL C4h.7 tor R.p.nine Jcrkr City of Orange Fiscal Agent lnvestments As of January 31, 2020 Carrying Value Market or Contract Value Fiscal Agent Cash and lnvestments Community Facilities Districl 91-2 2013 Special Tax Refunding Bonds - U.S. Bank First American Government Obligation Fund (1.46%) Federal National Mortgage Association (1.25ok) Successor Agency 20084 Merged & Amended Tax Allocation Bonds - U.S. Bank First American Government Obligation Fund (1.46%) Successor Agency 2008B Merged & Amended Tax Allocation Bonds - U.S. Bank First American Government Obligation Fund (1.46%) Community Facilities District 06-'l 20'15 Special Tax Refunding Bonds - U.S. Bank Firsl American Government Obligation Fund ('1.46%) US Treasury Bond (4.375olo) Successor Agency 2014A Merged & Amended Tax Allocation Refunding Bonds - U.S. Bank First American Government Obligation Fund (1.46%) Successor Agency Refunding Bonds 2018A - U.S. Bank First American Government Obligation Fund (1.46%) Total FiscalAgent Cash and lnvestments 1,576,724 1,576.724 2,483 2,483 680 1 ,638,201 1,638,201 1 ,569 1.569 100 100 680 3,219,757 3,219,757 11 2.lnvestment Report for February 2020 Yes 6. Investment Man ent Apreements (A) Does the City have any investment manager or advisor agreements? (if no, skip to number 7) (B) Ifso, was the agrcement approved in advance by the City Council? Yes No NoX Yes_NoX t2 MONTHLY SUMMARY COMPLIANCE CERTIFICATE February 2020 Note: All concentration restrictions were obtained from Sections 53601 and 53635 ofthe Govemment Code or the City's Investment Policy as ofJune I l, 2019, whicheyer was the more stringent. l. U.S, Aqencies (A) Total amount (book value) of U.S. Agency securities owned by the City = $8f.002.854. (B) Total amount allowed (75% of portfolio book value) of all City investments: $!!![!].f!,[ Is (A) less than (B) at time of purchase? Yes X No_ 2. Monev Market Mutual Funds (A) Total amount (book value) invested in money market mutual funds by the City = $2J2f-,!$ (B) Total amount allowed ($15 million or 20% ofportfolio book value, whichever is less) of all City investments : $15,]009!090:. Is (A) less than (B)? Yes X No_ 3. LAIF (A) Total amount (book value) invested in LAIF by the City = $SO.tOO.OrO. (B) Total amount allowed (35% ofportfolio book value) of all City investments = $47.435.601. ls (A) less than (B)? Yes X No- 4. Medium-Term Notes (A) Total amount (book value) invested in medium-term notes by the City = $2.!J9!,][ (B) Total amount allowed (20% ofportfolio book value) ofall City investments: $27.f06.058. 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 curently included in the City's portfolio? (C) Has the City examined the methods and past performance of the investment manager? Yes No (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 (C) Does the City currently hold no more than 50olo of its portfolio in securities at time ofpurchase with maturities between 366 days and 730 days? Yes X No (D) Does the City currently hold no more than 35% of its portfolio in securities at time ofpurchase with maturities between 731 days and 1095 days? Yes X 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 (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 l-l No N/A X (B) Does the City currently hold at least l5o/o and no more than 50% of its portfolio in securities at time ofpurchase with maturities equal to or less than 365 days? Yes X No (E) Does the City currently hold no more than 30% of its portfolio in securities at time ofpurchase with maturities between 1096 days and 1460 days? Yes X No- (F) Does the City cunently hold no more than 30% of its portfolio in securities at time ofpurchase with maturities between l46l days and 1825 days? Yes X No (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 We hereby certify that for the month of February 2020, the investment actions of the Citl of Orange comply in all respects with the requirements of the California Government Code and th€ 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 Pricingand Reference Data, the State Treasurer's Office, U.S. Trust and U.S. Bank. Certified By:Verified Bv DATED: April 27, 2020 z2 .tc,/za), Josephine Chan lnvestment/Revenue Offi cer Richard A. Rohm City Treasurer -rr* Rosario Guzman Accountant William M. Kolbow Assistant City Manager Administrative Services Director l4 Prepared By:Audited By: City of Orange lnvestment Portfolio February 29, 2020 (Sorted by TYPE) BANK / BROKER PURCHASE DATE DESCRIPTION MATURITY OATE RATE YIELD PAR VALUE BOOK VALUE MARKET VALUE City OSA 1.912 1.912 1.912 1.912 27,200,000.00 3.600,000.00 27.200.000.00 3,600,000.00 27.200,000.00 3,600,000.00 30,800,000.00 30,E00,000.00 30,800,000.00 (lD FEDERAL HOME LOAN BANK Slilel Nicolaus & Co Inc- UBS Financaal Services UBS Financial Services Stifel Nicolaus & Co lnc. 7t27t2016 1t2212020 12t1612019 212112020 FHLB FHLB FHLB FHLB 712712021 7 t22t2022 6t16t2023 2t21t2025 '1.500 1.750 1.875 1.950 7,000,000.00 8,000,000.00 8,000,000.00 7,000,000.00 6,9e8,524.17 8,000.000.00 8,000.000.00 ?.004.872.78 7,000,171.64 8,01 7,9'1 8.40 8,017,362.48 7,020,241.U 30,000,000.00 30,003,396.95 30,055,693.86 0ll) FEDERAL NAnONAL 'I'IORTGAGE ASSOCIATION Stifel Nicolaus & Co lnc. 412712016 Slifel Nicolaus & Co lnc. 512712016 UBS Financial Services 712712016 4t27t2020 11t30t2020 7 t27 t2021 1.450 1.500 1.550 1.450 1.707 1.550 6.000.000.00 4,000.000.00 6,000,000.00 6.000.000.00 3,S99.668.52 6,000.000.00 6,003,588.48 4,009,626.72 6,004,917.36 16,000,000.00 '15,999,668,52 15,018,132.s6 0V) FEDERAL FARI', CREDIT BANK UBS Financial Services UBS Financial SeNices UBS Financial Services FFCB FFCB FFCB 2t17 t2021 5120t2024 91312024 5,000,000.00 7,000.000.00 13,000,000.00 4,999.034.60 7,000,000.00 13,000,000.00 s.000,131.1s 7,002,075.50 '13,044,469.10 2s,000,000.00 24,999,034.60 25,046,675.75 (V) FEDERAL HOME LOAiI MORTGAGE CORPORATION Stifel Nicolaus & Co lnc. 912012019 Stifel Nicolaus & Co lnc. 212512020 91512023 5t18t2022 2.050 1.587 FHLMC FHLI\4C 10,000,000.00 10,000,753.78 10,005,837.40 (VD MEDIUM TERI,I NOTE UBS Financial Services UBS FinancialServices UBS Financial Services tJBS Financial Services 10/5i2016 Apple 6129120'17 Toyota gl2il2019 Coca Cola 12l10/2019 HSBC 1.550 2.000 1.750 3.500 2,000,000.00 10.000.000.00 3,000,000.00 6,000,000.00 2,000,000.00 10,000,000.00 2,967 ,927 .63 6 ,332,44e .23 2,008,486.02 9.995,'t 50.70 3,047,946.78 6 ,476,105.52 1.550 2.000 2.000 2.142 (VII) i,IONEY IIIARKET MUTUAL FUNDS (TREASURY} Wells Fargo Bank U.S. T-Note 2'1,000,000.00 2.427 .O57 .61 21,300,376.86 2.427 .O57 .61 2',1 ,527 ,689.02 2,427,057.611.444 1.444 2,427 ,057 .61 2,127 ,057 .61 2,427 ,O57 .Gl Portfolio total Portfolio total 135,227,057.61't35,s30,288.32 r35,881,086.20 Port.S.xlsx 15 2-29-2020 1-31-2020 (I) LOCAL AGENCY INVESTMEiIT FUND (LAIF) 1.516 1.750 1.875 1.935 FNMA FNIUA 2t25t2016 2t2012020 s13t2019 1.620 1.800 2.000 '1.649 '1.800 2.000 2.O50 1.600 3,000,000.00 2,998.669.47 3,000,145.77 7,000,000.00 7,002,084.31 7,00s,691.63 814t2021 12129t2020 91612024 6t2312024 136,30,r,157.E9 {36,605,025.86 136,729,930.74 I nvestment Transactions February 2020 SETTLEi/IENT OATE DESCRIPTION RATE PAR PRICE PURCHASES / DEPOSITS Various dates Sweep Account 1.444o/o 1.444ok N/A $ 14,945,981.73 $14,945,981.73 Various dates L.A.I.F 1.912% 1 .912./.N/A $ 22,300,000.00 $22,300,000.00 2120t2020 Federal Farm Credit Bank UBS Financial Services 5/2012024 lnvestment # 2'1293 1.800% 1.800%Yes S 7,000,000.00 $7,000,000.00 2t21t2020 Federal Home Loan Bank Stifel Nicolaus & Co. 212112025 lnvestment # 21294 1.950% 1.935%Yes $ 7,000,000.00 $7,004,900.00 2t2512020 Federal Home Loan l\ilortgage Corporation Stifel Nicolaus & Co. 511812022 lnvestment # 2'1295 1.600% 1.547%Yes $ 7,000,000.00 $7 ,004,277 .78 Bly SeI 8 nsx YIELO CALLABLE I nvestment Transactions February 2020 DESCRIPTION RATE YIELD CALLABLE PAR PRICE MATURITIES / WITHDRAWALS / CALLS Various dales Sweep Account 1 .444Yo 1.444%N/A $14,627,285.48 $14,627,285.48 Various dates L.A.I.F 1.9120/0 1.912%N/A $14,700,000.00 $14,700,000.00 211812020 Federal Farm Credit Bank UBS Financial Services 2l18l2O2O Matured - lnveslmenl # 21272 1.360% 1.360%N/A $6,000,000.00 $6,000,000.00 2t25t2020 Federal Nalional Mortgage Association UBS Financial Services 212512020 Matured - lnvestment # 21267 1.500% 1.500%$9,000,000.00 $9,000,000.00 2125t2020 Federal Nalional Mortgage Association UBS Financial Services 512512021 Called - lnvestmenl# 21265 'l.75Oo/o 1.750%Yes $15,000,000.00 $15,000,000.00 Buy.SeI s nsx 17 SETTLEMENT DATE City of Orange lnvestment Portfolio February 29,2020 Portfolio Pertormance Measu res Portfolio lndexes Rate of Return: Portfolio Effective Rate of Return - for February Porttolio Effective Rate of Return - for Fiscal Year-to-date Portfolio Yield to Malutily at 212912020 Total Rate of Retum: Total Rate of Return - for Februa.y (not annualized) Total Rate oI Return . for 2020 Y-T-D - (not annualized) Other: Portfolio Weighted-Average Time to Maturity Market Value as percent of Portfolio, 22912020 Market Value aa percent of Portfolio, 'l13'l/2020 Federal Agency Securities as percent of PortIolio, 2/29/2020 1.320/o 1.50% 1.410/. 3 month Treasury -- February Average 6 month Treasury --February Average 'l year Treasury -- February Average o.170/o o.38% 0.86% 1.3 Year Treasury lndex-Total Rate of Retum for February (not annualized) 1.41o/o 1-3 Year Trcasury lndex-Total Rate of Return for 2020 Y-T-D (not an nualized) Years Portlolio Yl6ld to Maturity: weighted-average yield to maturity (or call date, if applicable) for entire portfolio; in the case of coupon inveslments, includes an adjustmeni to the face rate for any premium paid or discount received. Source ot Markgt valuo: ICE Data Pricing and Refercnce Data provides market value on all inskuments. Total Rst. of REtum: growth or decline in the value ofthe portfolio. including both changes in the market value and income, as a proportion oflhe slarting value, adjusted on a time-weighted basis (per lvlodilied Dielz l\4elhod) for cash flows into or out of the portfolio during the period. The lvodified Dieiz Method assumes a constant rate of aeturn on lhe portfolio during the pedod and is not based on daily valuations. 2.02 100.260/0 100.09% 59.77Yo Port.S.xlsx 18 4t27 t2020 5:05 PM 1.86% 1.82V" 1.820/o Gity of Orange lnvestment Portfolio February 29,2020 Coca Cola Medium Term Note $3.0 2.19% Yield 2.000% HSBC Medium Term Note $6.3 4.67% Yield 2.143o/o Local Agency lnvestment Apple Medium Term Note $2.0 't.48%Yield 1.550% Federal Farm Gredit Bank s 25.0 18.4s% Yield 1.872"1, Federal National Mortgage Federal Home Loan Bank $30.0 22.13% Yield 1.772% Association $16.0 1',t.81% Yield '1.s52% Federal Home Loan Mortgage Corporation $10.0 7.38% Yield 1.726"/. Total Portfolio $1 35,530,288 Chart Dollar Values in lVillions of Dollars 19 Toyota Medium Term Note $10.0 7.38% Yield 2.000% Money Market Mutual Funds $2.4 1.790/. Yisld 1.444oh Fund $30.8 22.72% Yield '1.9'l2o/o .i City of Orange lnvestment Portfolio February 29,2020 Maturity Aging Schedule Maturing in 0-1 years 1-2 yearc 2-3 years 3-4 years 4-5 years 43% 11Yo 11o/o 8o/o 27o/o Weighted-average years to maturity for portfolio = $ 135,530,288 1000/o 2.02 $100,000.000 s90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- 0-1 years 1-2 years 2-3 years 3-4 years 4-5 years [/latur.8 xlsx 20 Book Value 58,225,761 14,998,524 15,002,084 10,998,669 36,305,250 Treasurer's Operating Cash and lnvestments Checking, Payroll & PMA - Wells Fargo Treasure/s lnvestments Accrued lnterest on lnvestments Cash in transit lmprest Cash Fiscal Agent Cash and lnvestments Gity of Orange Reconciliation of Total Cash and lnvestments to General Ledger As of February 29,2O2O Total Cash & lnvestments Total Cash & lnvestments 272,833 135,530,288 103,615 (438,080) Total Cash and lnvestments per General Ledger 1 Plus Outstanding Checks 135,468,656 12,200 4,175,677 _ll9,6t9t!!_ 138,091 ,806 1,564,727 139,656,533 GL c.th 3 tor Rlponing JC.n.r1 lncludes adjLrstrnent for month-end timing diffe.ences 21 City of Orange Fiscal Agent lnvestments As of February 29,2020 Carrying Value Market or Contract Value Fiscal Agent Cash and lnvestnents Community Facilities District 91-2 2013 Special Tax Refunding Bonds - U.S. Bank First American Government Obligation Fund ('l.46%) Federal National Mortgage Association ('1.25o/o) Successor Agency 2008A Merged & Amended Tax Allocation Bonds - U.S. Bank First American Government Obligation Fund (1.46%) Successor Agency 20088 Merged & Amended Tax Allocation Bonds - U.S. Bank First American Government Obligation Fund (1.46%) Community Facilities District 06-1 2015 Special Tax Refunding Bonds - U.S. Bank First American Government Obligation Fund ('1.46%) US Treasury Bond (4.375%) Successor Agency 2014A Merged & Amended Tax Allocation Refunding Bonds - U.S. Bank First American Government Obligation Fund (1.46%) Successor Agency Refunding Bonds 2018A - U.S. Bank First American Government Obligation Fund (1.46%) Total Fiscal Agent Cash and lnveslments 1 ,576,749 ',t.576,749 2,486 2,486 120.342 120,342 1,663,848 1,663,848 357 .252 455,000 455,000 4,175,677 4,175,677 3.lnvestment Report for March 2020 MONTHLY SUMMARY COMPLIANCE CERTIFICATE March 2020 Note: All concentration restrictions were obtained from Sections 53601 and 53635 ofthe Covernment Code or the City's lnveslment Policy as ofJune I l, 2019, whichever was the more stringent. l. U.S, Asencies (A) Total amount (book value) of U.S. Agency securities owned by the City : s69,00{,260. (B) Total amount allowed (75% ofportfolio book value) ofall City investments = $100.196,544. (A) Total amount (book value) invested in money market mutual funds by the City - s1,596,589. (B) Total amount allowed ($15 million or 20% ofportfolio book value. whichever is less) of all City investments = S15,000,000. ls (A) less than (B)?Yes X No ]. LAIF (A) Total amount (book value) invested in LAIF by the City = $41,700,000. (B) Total amount allowed (35% ofportfolio book value) ofall City investnrents = S.16.758,387. Is (A) less than (B)?Yes X No {. Medium-Term Notes (A) Total amount (book value) invested in medium-term notes by the City - 521,29.1,543- (B) Total amount allowed (20% of portfolio book value) ofall City investments = $26.719.078. No Yes X No- Yes X (A) Are any securities excluded by the Statement of Investment Policy currently included in the City's portfolio? Yes No X 6. Investme nt Manasemcnt Agreements (A) Does the City have any investment manager or advisor agreements? Yes (if no, skip to number 7)NoX (B) lfso, 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 2l Is (A) less than (B) at time ofpurchase? 2. Monev Market Mutual Funds Is (A) less than (B) at time of purchase? 5. Excluded Investment Vehicles (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. Maturitv Limits (A) Does the City currently own any security with a maturity date in excess offive years? Yes No X (B) Does the City currently hold at least l5%o and no more than 50% of its portfolio in securittes at time ofpurchase with maturities equal to or less than 365 days? Yes X No (D) Does the City currently hold no more than 35oZ of its portfolio in securities attime of purchase with maturities between 731 days and 1095 days? Yes X No (E) Does the City currently hold no more than 30% of its portfolio in securities at time ofpurchase with maturities between 1096 days and 1460 days? Yes X No (F) Does the City currently hold no more than 30% of its portfolio in securities at time ofpurchase with maturities between l46l days and 1825 days? Yes X 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 (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? N/A X N/A XYes 21 No (C) Does the City currently hold no more than 50olo of its portfolio in securities at time ofpurchase with maturities between 366 days and 730 days? Yes-X_ No_ No W€ hereby certify that for the month of March 2020, the investment actions ofthe City ofOrange comply in all respects with the r€quirements of the California Government Code and the City's curr€nt Investm€nt Policy and that there is suflicient 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 Stat€ Treasurer's Office, U.S. Trust and U.S. Bank. Certified By:Verified Bv: DATED: April 27, 2020 Prepared By: /) .tL,rlzn, Josephine Chan Investment/Revenue Offi cer Richard A. Rohm City Treasurer Audited Bv: n YT"aL Rosario Guzman Accountant William M. Kolbow Assistant Cify Manager Administrative Services Director 25 BANK / BROKER PURCHASE DATE DESCRIPTION City of Orange lnvestment Portfolio March 3'1, 2020 (sorted byTYPE) MATURITY DATE PAR VALUE BOOK VALUE RATE YIELD (I) LOCAL AGENCY INVESTMENT FUND (LAIF} City OSA 1.787 1.747 29.400.000.00 12.300.000.00 29,400,000.00 12,300,000.00 29,400,000.00 12,300,000.00 41,700,000.00 41,700,000.00 4,1,700,000.00 (lD FEDERAL HOi'E LOAi{ BANK UBS Financial Services L,BS Frnancial Services Stifel Nicolaus & Co lnc. 1t22t2020 12116t2019 212'1t2020 FHLB FHLB FHLB 7 t2212022 6t16/2023 2t21t2025 '1.750 1.875 1.950 1.750 1.875 1.935 8,000,000.00 8,000,000.00 7,000,000.00 8,000,000.00 8,000,000.00 7,004,791.11 I ,O27 ,846 .44 8,022,636.16 7,0'17,801.49 23,000,000.00 23,004,79'1.11 23,068,284.13 ( ) FEOERAL NATTONAL MORTGAGE ASSOCTATTON Slifel Nicolaus & Co lnc. 412712016 Stifel Nicolaus & Co lnc. 512712016 UBS Financial SeNices 712712016 4t27 t2020 11t30t2020 7t27 t2021 1.450 1.500 1.550 't6,000,000.00 15,999,705.48 16,032,9s8.68 (lV) FEDERAT FARM CREDIT BANK UBS Financial Services UBS Financial Services Stifel Nicolaus & Co lnc. 2t20t2020 91312019 3t26t2020 FFCB FFCB FFCB 5120t2024 9t3t2024 3t12t2024 1.800 2.000 1.210 7,000,000.00 13,000,000.00 3,000,000.00 7.000,000.00 13,000,000.00 2.997 ,757.89 7.006,732.67 13,068,274.31 2,994 ,164 .19 (V) FEOERAL HOME LOAN MORTGAGE CORPORATION Slifel Nicolaus & Co lnc. 212512020 FHLMC 23,000,000.00 7,000,000.00 22,997 ,7 57 .89 7,002,005.85 23,069,17,t,17 7,005,785.295t18120221 600 1 587 7,000,000.00 7,002,00s.85 7,005,785.29 (vD MEDTUi| TER;' NOTE UBS Financial SeNices UBS Financial SeNices UBS Financial Servic€s UBS Financial Services 414t2021 1212912020 91612024 6t23t2024 2,000,000.00 10,000,000.00 3,000,000.00 6,000,000.00 2,000,000.00 10,000,000.00 2,968,519.74 6,326,023.03 2,012,340.00 9,949,211.10 3,135,074.73 6,033,375.18 10/5/2016 Apple 612912017 'loyola 912012019 Coca Cola 12110/2019 HSBC 1.550 2.000 1.750 3.500 '1.550 2.000 2.000 2.142 (Vll) MONEY ]I'IARKET MUTUAL FUNDS (TREASURY) Wells Fargo Bank U.S. T-Note 0.209 0.209 21,000,000.00 1,596,588.65 2,t ,291,512,77 1,596,588.65 2,t,t30,00t,0t 1,596,588.65 Portfolio total Portfolio total 3-31-2020 2-29-2020 1,s96,588.65 r,596,588.65 1,596,588.6s 't3s,227,0s7.6',t 135,s30,288.32 1 881 086.20 Port.9.xlsx 26 MARKET VALUE 1.787 1.787 1.450 6,000,000.00 6,000,000.00 6,005,349.30 1.707 4,000,000.00 3,999,705.48 4,022,391.12 1.s50 6,000,000.00 6,000,000.00 6,005,218.26 1.800 2.000 1.229 133,296,588.65 133,595,391.75 133,602,788.93 lnvestment Transactions March 2020 SETTLEMEiIT DATE RATE YIELO CALLABLE PAR PRICE PURCHASES / DEPOSITS Various dates Sweep Account o.2090/o 0.209%N/A $ '14,979,507.66 $14,979,507.66 Various dales L.A.I,F 1.7A7Vr 1 .7A70/o N/A $ 15,700,000.00 $1s,700,000.00 Federal Farm Credit Bank Stifel Nicolaus & Co. 3/12124 lnvestment # 21296 'l .2100/" 1 .2290/"Yes $ 3,000,000.00 $2,999,162.00 Buy.Sell.9.xlsx 27 oEscRtPTtoi.l 3t2612020 I nvestment Transactions March 2020 SETTLEi/IENT DATE DESCRIPTION RATE PAR MATURITIES / WITHDRAWALS / CALLS Various dates Sweep Accounl 0.209./. 0.209./.N/A $15,8'13,344.49 $15,813,344.49 L.A.I.F 1.7870/0 1.7870/0 N/A $4,800,000.00 $4,800,000.00 3t512020 Federal Home Loan Mortgage Corporation Stifel Nicolaus & Co. 912512023 Called - lnvestment# 21247 2.0500/" 2.050%Yes $3,000,000.00 $3,000,000.00 3t1012020 Federal Farm Credit Bank UBS Financial Services 211712021 Called - lnvestmenl# 21259 1.620% 1.620%Yes $5,000,000.00 $5,000,000.00 Federal Home Loan Bank Stifel Nicolaus & Co. 712712021 Called - lnvestmenl# 21273 '1.500% 1.500%Yes $7,000,000.00 $7,000,000.00 Buy.Sell.9.nsx 28 YIELD CALLABLE PRICE Various dates 3t30t2020 Po rtfo I i o Pe rto rm a n ce Measures lndexes Rate of Return: Portfolio Effective Rate of Return - for March Portfolio Effective Rate of Return . for Fiscal Year.to.date Portfolio Yield to Matwily al3131l2O2O Other: Portfolio Weighted.Average Time to Maturity Market value as percent of Portfolio, 3/3{/2020 Market Value aa percent of Portfolio, 2/29/2020 Federal Agency Securities as percent of Portfolio, 3/3'l/2020 1.820/0 1.820/0 1.78% o.280/0 o.290/0 0.32"/" 3 month Treasury -- March Average 6 month Treasury -- March Average 1 year Treasury -- March Average 1.25o/o 1-3Yeatfreasury lndex-Total Rate of Return for March (not annualized) 2.671o 1-3Yeatfreasury lndex-Total Rate of Return for 2020 Y-T-D (not annualized) -0.30% 0.09% Years Portfollo Yield to Maturity: weighted-average yield to maturity (or call date, if applicable) for entire portfolio; in lhe case of coupon investments, includes an adjuslment to the face rate for any premium paid or discount received. Sou.ce ot luarkst Valus: ICE Data Pricing and Refercnce Data provides market value on all instruments. Total Rate of Retum: growth or decline an the value ofthe portfolio, including both changes in the markel value and income, as a proportion oflhe starting value, adjusted on a iame-weighted basis (per Modifed Oietz Method) for cash fows into or out ofthe portfolio during the period. The Modilied Dietz lvlethod assumes a constant rale of relum on the portfoiio during the period and is not based on daily valualions. 1.89 't00.0't % 100.26% 51.65% Port.9.xlsx 29 4t27 t2020 5:09 PIV City of Orange lnvestment Portfolio March 3'1, 2020 Portfolio Total Rate of Retum: Total Rate of Return - for March (not annualized) Total Rate of Return . for 2020 Y.T.D . (not annualized) City of Orange lnvestment Portfolio March 31,2020 Toyota Medium Term Note $10.0 7.49% Yield 2.000% Coca Cola HSBC Medium Term 11o1" Medium Term Note S3.O 2.22% $6.3 4.74% yietd 2.OOO% Yield 2|l43\o Money Market Mutual Funds $1.6 1.20% Yield 0.209% Local Agency lnvestment Apple Medium Term Note $2.0 1.50o/o Yield 1.550o/o Fund $41.7 31.200/" Yield 1.787% Federal Farm Credit Bank $ 23.0 17.21% Yield 1.839% Federal National Mortgage ederal Home Loan Bank $23.0 17.22% Yield 1.850%Association $16.0 11.98% Yield 1.552%Federal Home Loan Mortgage Corporation $7.0 5.24% Yield 2.050% Chart Dollar Values in Millions of Dollars 30 Total Portfolio $1 33,595,392 City of Orange lnvestment Portfolio March 31 ,2020 Maturity Aging Schedule Maturing in 0-1 years 1-2 years 2-3 years 3-4 years 4-5 years Book Value 63,296,294 8,000,000 15,002,006 10,997,758 36,299,334 48o/o 6% 11% 8o/o 27% $133,595,392 100% Weighted-average years to maturity for portfolio =1.89 $100,000,000 $90,000.000 $80,000,000 $70,000,000 $60,000.000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000.000 $- 0-1 years 1-2 years 2-3 years 3-4 years 4-5 years Matur.9.xlsx 31 Treasurer's Operating Cash and lnvestments Checking, Payroll& PMA -Wells Fargo Taeasurer's lnvestments Accrued lnlerest on lnvestrnents Realized Gains and Losses Cash in transit lmprest Cash Fiscal Agent Cash and lnvestments City of Orange Reconciliation of Total Cash and lnvestments to General Ledger As of March 31, 2020 Total Cash & lnvestments Total Cash & lnvestments 185 466 134,'126,907 12,200 4,177,338 138,316,445 137,935,929 380 516 ___l_?!n_1911!_ 244,680 133,595,392 105.027 (3,658) Total Cash and lnvestments per General Ledger 1 Plus Outslanding Checks 1 lndud63 adjuslm.nl lor month€nd timang dit€r.ncas. 32 GI crn3 ld R.ro.!.! JC*r City of Orange Fiscal Agent lnvestments As of March 31,2O2O Carrying Value Market or Contract Value Fiscal Agent Cash and lnvestments Community Facilities District 9'l-2 2013 Special Tax Refunding Bonds - U.S. Bank First American Government Obligation Fund (0.83%) Federal National Mortgage Association (1.25%) Successor Agency 20084 Merged & Amended Tax Allocation Bonds - U.S. Bank Firsl American Government Obligation Fund (0.83%) Successor Agency 20088 Merged & Amended Tax Allocation Bonds - U.S. Bank First American Governmeni Obligation Fund (0.83%) Community Facilities District 06-1 2015 Special Tax Refunding Bonds - U.S. Bank First American Government Obligation Fund (0.83%) US Treasury Bond (4.375%) Successor Agency 2014A Merged & Amended Tax Allocation Refunding Bonds - U.S. Bank First American Government Obligation Fund (0.83%) Successor Agency Refunding Bonds 2018A - U.S. Bank First American Government Obligation Fund (0.83%) Total FiscalAgent Cash and lnvestments 2,060,s9 2,060.549 2,489 2.489 21 21 2.',t14.183 2114J83 60 4,177 ,338 4,177,338 60 3636 33