07 - Investment Report
ITEM NO. 07
Costa Mesa Sanitary District
Memorandum
To:
Board of Directors
Via:
Scott Carroll, General Manager
From:
Marc Davis, Treasurer
Date:
March 27, 2014
Subject:
Investment Report for the Month of February 2014
Summary
Attached is the Investment Report for the month of February 2014. As required by the
activity during the month.
Staff Recommendation
Approve the Investment Report for the month of February 2014.
Analysis
which the securities were purchased, maturity dates and interest
2014
Policy adopted by the Board at the June 27, 2013 regular meeting
California Government Code. The market values in this report we
party custodian, Bank of New York, except for the Local Agency I
represent the value of the underlying securities within the pool
amount, which is the amount the District is entitled to withdraw
consistent with industry standard practices for similar funds.
the environment by providing solid waste and sewer collection se
www.cmsdca.gov
Board of Directors
March 27, 2014
Page 2 of 3
investment
portfolio as of February 28, 2014, was 0.753%. The yield to maturity of the portfolio was
0.753 rate was 52 basis points (0.517%) above
the daily effective yield of LAIF, which was 0.236% as of February 28, 2014. The
905 days
(2.48 years). The average duration of the underlying securities in LAFebruary 28,
2014 was 208 days.
rtfolio is in compliance with its liquidity limitations, which
requires that a minimum of 20.00% of the portfolio must mature w
percentage of the portfolio maturing in less than one year as ofFebruary 28, 2014 was
32.26%.
As of February 28, 2014, the District has adequate operating reserves necessary to meet
its obligations for the next six months.
Strategic Plan Element & Goal
This item supports achieving Strategic Element No. 7.0, Finances, by ensuring the short
and long-term fiscal health of the District.
Legal Review
Legal review is not required.
Financial Review
The portfolio was budgeted to earn an average rate of 0.900% forJune
31, 2014. Through February 28, 2014 the portfolio has earned a weighted average
interest rate of 0.798%. Interest rates are starting to creep up, so staff anticipates that the
weighted average interest for the portfolio will also increase s,
but most likely fall below budget estimates.
Public Notice Process
Copies of this report are on file and will be included with the
th
March 27, 2014 Board of Directors regular meeting at District Headquarters (631 W. 19
www.cmsdca.gov.
Board of Directors
March 27, 2014
Page 3 of 3
Alternative Actions
1. Refer the matter back to staff
Attachments
February 28, 2014
C O S T A M E S A S A N I T A R Y D I S T R I C T
Treasurer's Report of Pooled Cash and Investments
February 28, 2014
`
DepositsOutstanding
Bank BalanceIn TransitsChecksBook Balance
Active Accounts:
Bank of America 3,261,935.13$ - 218,087.40 3,043,847.73$
Total Active Accounts3,261,935.13 - 218,087.40 3,043,847.73
Market Adjustment
Market ValueIncreaseDecreaseCost
Investments:
Local Agency Investment Fund4,240,159.14$ - - 4,240,159.14$
Money Market/Sweep Account1,085,977.71 - - 1,085,977.71
Federal Agency Securities11,097,766.00 - (102,234.00) 11,200,000.00
Total Investments16,423,902.85 - (102,234.00) 16,526,136.85
Total Pooled Cash & Investments19,685,837.98$ -$ 115,853.40$ 19,569,984.58$
Costa Mesa Sanitary District
Pooled Cash and Investments by Fund
February 28, 2014
Solid Waste Fund:
Operating Reserve$ 801,000.00
Unreserved:
Designated for working capital 1,494,000.00
Undesignated 3,242,948.32
Liquid Waste Fund:
Operating Reserve 371,000.00
Reserved for Earthquakes/Emergencies 1,000,000.00
Reserved for Capital Outlay 3,442,476.62
Unreserved:
Designated for working capital 2,467,300.00
Undesignated (1,067,913.63)
Sewer Construction Fund 100,000.00
Facilities Revolving Fund 297,068.16
Asset Replacement Fund 508,362.16
Asset Management Fund 6,913,742.95
Total Pooled Cash & Investments$ 19,569,984.58
3/19/14
Marcus D. DavisDate
Treasurer
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C O S T A M E S A S A N I T A R Y D I S T R I C T
Investment Activity Summary
February 28, 2014
$ 16,507,886.24
Total investments outstanding as of January 31, 2014
Additions:
Gain on sale of investment -
Investment purchases -
Deductions:
Investments called (1,000,000.00)
Net increase (decrease) in Sweep Account 1,018,250.61
Net increase (decrease) in LAIF -
$ 16,526,136.85
Total investments outstanding as of February 28, 2014
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COSTA MESA SANITARY DISTRICT
Summary of Policy Limitations
February 28, 2014
Current %
of Market Value
Description02/28/14Maximum %
U.S. Treasury Bills0.00%Unlimited
U.S. Treasury Notes0.00%Unlimited
Federal Agency Issues:
FICB0.00%Unlimited
FLB0.00%Unlimited
FHLB0.00%Unlimited
FHLMC36.14%Unlimited
FNMA25.44%Unlimited
FFCB5.99%Unlimited
Other *0.00%Unlimited
Banker's Acceptances0.00%25% (1)
Certificates of Deposit0.00%25%
Negotiable Certificates of Deposits0.00%25% (1)
Commercial Paper0.00%25% (1)
Medium Term Corporate Notes0.00%20% (1)
LAIF (Local Agency Investment Fund)25.82%40,000,000
Shares of Benefical Interest0.00%20%
Money Market/Mutual Funds (Sweep Acct)6.61%10% per fund (2)
100.00%
Total
% of portfolio maturing under one year 32.23%no less than 20%
% of portfolio maturing over one year67.77%
100.00%
(1) Further limited to 10% in any single issuer
(2) Also limited to 20% in total.
*These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE
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