07 - AUGUST 2012 INVESTMENT REPORTRate Chart Aug.xls
Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: Marc Davis, Treasurer Date: September 20, 2012 Subject: Investment Report for the Month of August 2012 Summary
Attached is the Investment Report for the month of August 2012. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity
during the month. Staff Recommendation Approve the Investment Report for the month of August 2012. Analysis This report lists the types of securities held in the District’s portfolio,
the institutions from which the securities were purchased, maturity dates and interest rates as of August 31, 2012. The District’s investments are in compliance with the Statement of
Investment Policy adopted by the Board at the July 26, 2012 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party
custodian, Bank of New York, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer’s Office. It does not represent the value
of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with
industry standard practices for similar funds. COSTA MESA SANITARY DISTRICT . . . ..an Independent Special District
Board of Directors September 20, 2012 Page 2 of 3 2 The weighted average stated rate of return (current yield) for the District’s investment portfolio as of August 31, 2012, was 1.017%.
The yield to maturity of the portfolio was 1.043%. The District’s weighted average interest rate was 71 basis points (0.703%) above the daily effective yield of LAIF, which was 0.340%
as of August 31, 2012. The weighted average number of days to maturity for the District’s total portfolio was 1,152 days (3.16 years). The average duration of the underlying securities
in LAIF as of August 31, 2012, which is the most current information available, was 254 days. The District’s investment portfolio is in compliance with its liquidity limitations, which
requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of August 31, 2012 was 25.38%. As of
August 31, 2012, 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% for the year ending June 30, 2013. Through August 31, 2012, the portfolio has earned a weighted average interest rate of 0.967%. Staff anticipates that
the District will be close to budget with its estimated investment earnings. Committee Recommendation Committee review is not required.
Board of Directors September 20, 2012 Page 3 of 3 3 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the September 20, 2012
Board of Directors regular meeting at District Headquarters (628 W. 19th Street) and on the District’s website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff
Attachments Treasurer’s Report of Pooled Cash and Investments as of August 31, 2012
Deposits Outstanding Bank Balance In Transits Checks Book Balance Active Accounts: Bank of America $ 287,493.72 -235,075.21 $ 52,418.51 Total Active Accounts 287,493.72 -235,075.21 52,418.51
Market Value Increase Decrease Cost Investments: Local Agency Investment Fund $ 3,984,605.30 --$ 3,984,605.30 Money Market/Sweep Account 99,050.58 --99,050.58 Federal Agency Securities
12,035,132.50 -36,682.50 11,998,450.00 Total Investments 16,118,788.38 -36,682.50 16,082,105.88 Total Pooled Cash & Investments $ 16,406,282.10 $ -$ 271,757.71 $ 16,134,524.39 Market
Adjustment 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 August 31, 2012 Costa Mesa Sanitary District Pooled Cash and Investments
by Fund August 31, 2012 Solid Waste Fund: Operating Reserve $ 801,000.00 Unreserved 4,190,901.74 Liquid Waste Fund: Operating Reserve 371,000.00 Reserved for Earthquakes/Emergencies
1,000,000.00 Reserved for Capital Outlay 2,996,756.00 Unreserved 964,753.37 Sewer Construction Fund 100,000.00 Facilities Revolving Fund 79,449.94 Asset Replacement Fund 206,935.02 Asset
Management Fund 5,423,728.32 Total Pooled Cash & Investments $ 16,134,524.39 Treasurer Marcus D. Davis Date 9/11/12 1
Total investments outstanding as of July 31, 2012 $ 17,294,596.61 Additions: Gain on sale of investment -Investment purchases 1,000,000.00 Deductions: Investment maturity/sale proceeds
-Loss on sale of investment -Investments called -Net increase (decrease) in Sweep Account (997,490.73) Net increase (decrease) in LAIF (1,215,000.00) Total investments outstanding as
of August 31, 2012 $ 16,082,105.88 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 August 31, 2012 2
Interest CUSIP Purchase Maturity Coupon Investment Earned at Number Investment Date Date Rate Cost 08/31/12 n/a Local Agency Investment Fund n/a n/a 0.340% $ 3,984,605.30 n/a ** n/a
Bank of New York-Sweep Acct n/a n/a 0.000% 9 9,050.58 n/a 3134G2WS7 Federal Home Loan Mortgage 08/23/11 05/23/16 1.540% 999,700.00 4,192.22 3136FR7L1 Federal National Mortgage Assn 09/28/11
09/28/16 1.000% 1,000,000.00 4,250.00 3136FTEB1 Federal National Mortgage Assn 10/26/11 10/26/16 1.500% 1,000,000.00 5,208.33 31331KV56 Federal Farm Credit Bank 11/23/11 11/23/16 1.500%
1,000,000.00 4,083.33 31331K5G1 Federal Farm Credit Bank 01/04/12 01/04/16 1.120% 1,000,000.00 1,773.33 3134G3GJ3 Federal Home Loan Mortgage 01/17/12 01/17/17 1.375% 998,750.00 1,680.55
3134G3HL7 Federal Home Loan Mortgage 01/18/12 07/18/16 1.300% 1,000,000.00 1,552.77 313378C33 Federal Home Loan Bank 03/07/12 03/07/17 1.240% 1,000,000.00 5,993.33 3133EAPB8 Federal
Farm Credit Bank 05/02/12 05/02/17 1.230% 1,000,000.00 4,065.83 3136G0GX3 Federal National Mortgage Assn 05/30/12 08/24/16 1.000% 1,000,000.00 194.44 3135G0MA8 Federal National Mortgage
Assn 06/28/12 06/28/17 1.200% 1,000,000.00 2,100.00 3134G3ZR4 Federal Home Loan Mortgage 08/07/12 08/07/17 1.000% 1,000,000.00 666.66 Totals $ 16,082,105.88 $ 35,760.79 **Represents
the LAIF daily rate at 8/31/12 Comments COSTA MESA SANITARY DISTRICT Investment and Investment Earnings August 31, 2012 3
Current % of Market Value 08/31/12 Maximum % U.S. Treasury Bills 0.00% Unlimited U.S. Treasury Notes 0.00% Unlimited Federal Agency Issues: FICB 0.00% Unlimited FLB 0.00% Unlimited FHLB
6.20% Unlimited FHLMC 24.90% Unlimited FNMA 24.89% Unlimited FFCB 18.67% Unlimited Other * 0.00% Unlimited Banker's Acceptances 0.00% 25% (1) Certificates of Deposit 0.00% 25% Negotiable
Certificates of Deposits 0.00% 25% (1) Commercial Paper 0.00% 25% (1) Medium Term Corporate Notes 0.00% 20% (1) LAIF (Local Agency Investment Fund) 24.72% 4 0,000,000 Shares of Benefical
Interest 0.00% 20% Money Market/Mutual Funds (Sweep Acct) 0.61% 10% per fund (2) Total 100.00% % of portfolio maturing under one year 25.38% no less than 20% % of portfolio maturing
over one year 74.62% 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 COSTA MESA SANITARY DISTRICT Summary of Policy Limitations August 31, 2012 Description 4
Purchase Maturity Coupon Investment % of Market % of Description Broker/Dealer Date Date Rate Cost Portfolio Value Portfolio Comments State Treasurer's Pool LAIF n/a Continuous 0.340%
** $ 3,984,605.30 $ 3 ,984,605.30 POOL Total State Treasurer's Pool 3,984,605.30 24.78% 3 ,984,605.30 24.72% Money Market Mutual Fund Bank of New York n/a Continuous 0.000% 99,050.58
9 9,050.58 SWEEP Total Money Market Mutual Fund 99,050.58 0.62% 9 9,050.58 0.61% Federal Home Loan Bank E.J. De La Rosa 03/07/12 03/07/17 1.240% 1,000,000.00 1 ,000,090.00 FHLB Total
Federal Home Loan Bank 1,000,000.00 6.22% 1 ,000,090.00 6.20% Federal Home Loan Mortgage Union Banc 08/23/11 05/23/16 1.540% 999,700.00 1 ,002,650.00 FHLMC Federal Home Loan Mortgage
Union Banc 01/17/12 01/17/17 1.375% 998,750.00 1 ,004,410.00 FHLMC Federal Home Loan Mortgage Union Banc 01/18/12 07/18/16 1.300% 1,000,000.00 1 ,003,760.00 FHLMC Federal Home Loan Mortgage
E.J. De La Rosa 08/07/12 08/07/17 1.000% 1,000,000.00 1 ,002,343.75 FHLMC Total Federal Home Loan Mortgage 3,998,450.00 24.86% 4 ,013,163.75 24.90% Federal National Mortgage Association
E.J. De La Rosa 09/28/11 09/28/16 1.000% 1,000,000.00 1 ,000,520.00 FNMA Federal National Mortgage Association E.J. De La Rosa 10/26/11 10/26/16 1.500% 1,000,000.00 1 ,001,875.00 FNMA
Federal National Mortgage Association Union Banc 05/30/12 08/24/16 1.000% 1,000,000.00 1 ,004,790.00 FNMA Federal National Mortgage Association Union Banc 06/28/12 06/28/17 1.200% 1,000,000.00
1 ,005,540.00 FNMA Total Federal National Mortgage Association 4,000,000.00 24.87% 4 ,012,725.00 24.89% Federal Farm Credit Bank E.J. De La Rosa 11/23/11 11/23/16 1.500% 1,000,000.00
1 ,001,610.00 FFCB Federal Farm Credit Bank Union Banc 01/04/12 01/04/16 1.120% 1,000,000.00 1 ,002,700.00 FFCB Federal Farm Credit Bank E.J. De La Rosa 05/02/12 05/02/17 1.230% 1,000,000.00
1 ,004,843.75 FFCB Total Federal Farm Credit Bank 3,000,000.00 18.65% 3 ,009,153.75 18.67% Total Investments $ 16,082,105.88 100.00% $ 1 6,118,788.38 100.00% **Represents the LAIF daily
rate at 8/31/12 COSTA MESA SANITARY DISTRICT Schedule of Investments by Instrument Type August 31, 2012 5
Investment Purchase Maturity Days to Coupon Yield to Investment Broker/Dealer Type Date Date Maturity Rate Maturity Cost Local Agency Investment Fund Pool 1 0.340% ** 0.340% $ 3,984,605.30
Bank of New York Sweep 1 0.000% 0.000% 99,050.58 UnionBanc FHLM 08/23/11 05/23/16 1,361 1.540% 1.540% 999,700.00 E.J. De La Rosa FNMA 09/28/11 09/28/16 1,489 1.000% 1.390% 1,000,000.00
E.J. De La Rosa FNMA 10/26/11 10/26/16 1,517 1.500% 1.500% 1,000,000.00 E.J. De La Rosa FFCB 11/23/11 11/23/16 1,545 1.500% 1.500% 1,000,000.00 UnionBanc FFCB 01/04/12 01/04/16 1,221
1.120% 1.120% 1,000,000.00 UnionBanc FHLM 01/17/12 01/17/17 1,600 1.375% 1.401% 998,750.00 UnionBanc FHLM 01/18/12 07/18/16 1,417 1.300% 1.300% 1,000,000.00 E.J. De La Rosa FHLB 03/07/12
03/07/17 1,649 1.240% 1.240% 1,000,000.00 E.J. De La Rosa FFCB 05/02/12 05/02/17 1,705 1.230% 1.230% 1,000,000.00 UnionBanc FNMA 05/30/12 08/24/16 1,454 1.000% 1.000% 1,000,000.00 UnionBanc
FNMA 06/28/12 06/28/17 1,762 1.200% 1.200% 1,000,000.00 E.J. De La Rosa FHLM 08/07/12 08/07/17 1,802 1.000% 1.000% 1,000,000.00 Total Investment Portfolio $ 16,082,105.88 Total Portfolio
Weighted Avg Interest Rate 1.017 % Weighted Avg Yield to Maturity 1.043 % Weighted Avg Days to Maturity 1 ,152 Days 3 .16 Years **Represents the LAIF daily rate at 8/31/12 COSTA MESA
SANITARY DISTRICT Investment Portfolio August 31, 2012 6
Net Purchase Maturity Intuition Investment Coupon Investment Market Accrued Gain/(Loss) Date Date Broker/Dealer Type Par Rate Cost Value Interest If Sold n/a Continuous LAIF POOL $ 3,984,605.30
0.340% ** 3,984,605.30 3,984,605.30 --n/a Continuous Bank of New York SWEEP 99,050.58 0.000% 99,050.58 99,050.58 --08/23/11 05/23/11 UnionBanc FHLM 1,000,000.00 2.000% 999,700.00 1,002,650.00
4,192.22 2,950.00 09/28/11 09/28/16 E.J. De La Rosa FNMA 1,000,000.00 1.000% 1,000,000.00 1,000,520.00 4,250.00 520.00 10/26/11 10/26/16 E.J. De La Rosa FNMA 1,000,000.00 1.500% 1,000,000.00
1,001,875.00 5,208.33 1,875.00 11/23/11 11/23/16 E.J. De La Rosa FFCB 1,000,000.00 1.500% 1,000,000.00 1,001,610.00 4,083.33 1,610.00 01/04/12 01/04/16 UnionBanc FFCB 1,000,000.00 1.120%
1,000,000.00 1,002,700.00 1,773.33 2,700.00 01/17/12 01/17/17 UnionBanc FHLM 1,000,000.00 1.375% 998,750.00 1,004,410.00 1,680.55 5,660.00 01/18/12 07/18/16 UnionBanc FHLM 1,000,000.00
1.300% 1,000,000.00 1,003,760.00 1,552.77 3,760.00 03/07/12 03/07/17 E.J. De La Rosa FHLB 1,000,000.00 1.240% 1,000,000.00 1,000,090.00 5,993.33 90.00 05/02/12 05/02/17 E.J. De La Rosa
FFCB 1,000,000.00 1.230% 1,000,000.00 1,004,843.75 4,065.83 4,843.75 05/30/17 08/24/16 UnionBanc FNMA 1,000,000.00 1.000% 1,000,000.00 1,004,790.00 194.44 4,790.00 06/28/12 06/28/17
UnionBanc FNMA 1,000,000.00 1.200% 1,000,000.00 1,005,540.00 2,100.00 5,540.00 08/07/12 08/07/17 E.J. De La Rosa FHLM 1 ,000,000.00 1.000% 1,000,000.00 1,002,343.75 666.66 2,343.75 Total
Investments $ 1 6,083,655.88 16,082,105.88 16,118,788.38 35,760.79 36,682.50 **Represents the LAIF daily rate at 8/31/12 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 For all Maturities
with Market Values August 31, 2012 7
Type of Purchase Maturity Coupon Investment Investment Date Date Rate Par Value Cost FHLMC 08/23/11 05/23/11 1.540% $ 1,000,000.00 $ 999,700.00 Callable 11/23/12 w/5 days notice FNMA
09/28/11 09/28/16 1.000% 1,000,000.00 1,000,000.00 Callable 9/28/12 w/10 days notice, thereafter 9,12,3,6 FNMA 10/26/11 10/26/16 1.500% 1,000,000.00 1,000,000.00 Callable 10/26/12 w/10
days notice. FFCB 11/23/11 11/23/11 1.500% 1,000,000.00 1,000,000.00 Callable 11/23/12 w/5 days notice and anytime after FFCB 01/04/12 01/04/16 1.120% 1,000,000.00 1,000,000.00 Callable
1/4/13 w/5 days notice and anytime after FHLMC 01/17/12 01/17/17 1.375% 1,000,000.00 998,750.00 Callable 1/17/13 w/5 days notice, thereafter 4,7,10,1 FHLMC 01/18/12 07/18/16 1.300% 1,000,000.00
1,000,000.00 Callable 1/18/13 w/5 days notice, thereafter 4,7,10,1 FHLB 03/07/12 03/07/17 1.240% 1,000,000.00 1,000,000.00 Callable 3/7/13 w/5 days notice thereafter 3,6,9,12 FFCB 05/02/12
05/02/17 1.230% 1,000,000.00 1,000,000.00 Callable 5/2/13 w/5 days notice and anytime after FNMA 05/30/12 08/24/16 1.000% 1,000,000.00 1,000,000.00 Callable 5/30/13 w/10 days notice,
thereafter 8,11,2,5 FNMA 06/28/12 06/28/17 1.200% 1,000,000.00 1,000,000.00 Callable 6/28/13 w/10 days notice, monthly thereafter FHLMC 08/07/12 08/07/17 1.000% 1,000,000.00 1,000,000.00
Callable 8/7/14 w/5 days notice, thereafter 11,2,5,8 Totals $ 12,000,000.00 $ 11,998,450.00 COSTA MESA SANITARY DISTRICT Call Schedule August 31, 2012 Call Features 8
Cost 50,136.76 In Thousands 1 -180 Days $ 4,082 181 -365 Days -1 -2 Years -########## 6,562.50 2 -3 Years -COSTA MESA SANITARY DISTRICT MATURITIES DISTRIBUTION August 31, 2012 30% 40%
50% 60% 70% 24.87% 49.75% ########## 3 -4 Years 4,000 4 -5 Years 8,000 TOTAL $ 16,082 0% 10% 20% 1 -180 Days 181 -365 Days 1 -2 Years 2 -3 Years 3 -4 Years 4 -5 Years 0 0 0 0 0 0 25.38%
0.00% 0.00% 0.00% 9
Costa Mesa Sanitary District Portfolio Interest Rate Information as of August 31, 2012 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 3 month T-Bill 6 month T-Bill 2 year T-Note 3 year
T-Note 5 year T-Note CMSD-monthly LAIF-monthly OC Pool-monthly 0.00% 10