08 - Investment Report
ITEM NO. 08
Costa Mesa Sanitary District
Memorandum
To:
Board of Directors
Via:
Scott Carroll, General Manager
From:
Marc Davis, Treasurer
Date:
December 19, 2013
Subject:
Investment Report for the Month of November 2013
Summary
Attached is the Investment Report for the month of November 2013
activity during the month.
Staff Recommendation
Approve the Investment Report for the month of November 2013.
Analysis
which the securities were purchased, maturity dates and interest,
2013
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
The market value of LAIF was provided by the S
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.
www.cmsdca.gov
Board of Directors
December 19, 2013
Page 2 of 3
portfolio as of November 30, 2013, was 0.831%. The yield to maturity of the portfolio was
0.831erest rate was 57 basis points (0.565%) above
the daily effective yield of LAIF, which was 0.266% as of November 30, 2013. The
1,040
days (2.85 years). The average duration of the underlying securities in LAIF as of
November 30, 2013 was 217 days.
requires that a minimum of 20.00% of the portfolio must mature w
percentage of the portfolio maturing in less than one year as ofNovember 30, 2013 was
26.52%.
As of November 30, 2013, the District has adequate operating reserves necessary t
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
30, 2014. Through November 30, 2013 the portfolio has earned a weighted average
interest rate of 0.792%. Interest rates are starting to creep up, so staff anticipates that the
weighted average interest for the portfolio will also increase s
Public Notice Process
Copies of this report are on file and will be included with the e
December 19, 2013 Board of Directors regular meeting at District Headquarters (630 W.
th
19 www.cmsdca.gov.
Board of Directors
December 19, 2013
Page 3 of 3
Alternative Actions
1. Refer the matter back to staff
Attachments
November 30, 2013
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
November 30, 2013
DepositsOutstanding
Bank BalanceIn TransitsChecksBook Balance
Active Accounts:
Bank of America 431,884.71$ - 70.76 431,813.95$
Total Active Accounts431,884.71 - 70.76 431,813.95
Market Adjustment
Market ValueIncreaseDecreaseCost
Investments:
Local Agency Investment Fund4,362,224.40$ - - 4,362,224.40$
Money Market/Sweep Account41,475.58 - - 41,475.58
Federal Agency Securities12,088,832.00 - (111,168.00) 12,200,000.00
Total Investments16,492,531.98 - (111,168.00) 16,603,699.98
Total Pooled Cash & Investments16,924,416.69$ -$ (111,097.24)$ 17,035,513.93$
Costa Mesa Sanitary District
Pooled Cash and Investments by Fund
November 30, 2013
Solid Waste Fund:
Operating Reserve$ 801,000.00
Unreserved:
Designated for working capital 1,494,000.00
Undesignated 2,425,688.98
Liquid Waste Fund:
Operating Reserve 371,000.00
Reserved for Earthquakes/Emergencies 1,000,000.00
Reserved for Capital Outlay 2,536,707.02
Unreserved:
Designated for working capital 2,467,300.00
Undesignated 61,461.54
Sewer Construction Fund 100,000.00
Facilities Revolving Fund 267,622.57
Asset Replacement Fund 353,994.12
Asset Management Fund 5,156,739.70
Total Pooled Cash & Investments$ 17,035,513.93
12/11/13
Marcus D. DavisDate
Treasurer
1
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
November 30, 2013
$ 16,945,199.69
Total investments outstanding as of October 31, 2013
Additions:
Gain on sale of investment -
Investment purchases -
Deductions:
Investments called -
Net increase (decrease) in Sweep Account 8,500.29
Net increase (decrease) in LAIF (350,000.00)
$ 16,603,699.98
Total investments outstanding as of November 30, 2013
2
COSTA MESA SANITARY DISTRICT
Investment and Investment Earnings
November 30, 2013
Interest
CUSIPPurchaseMaturityCouponInvestmentEarned at
NumberInvestmentDateDateRateCost11/30/13Comments
n/aLocal Agency Investment Fundn/an/a0.266%4,362,22$ n/a**4.40
n/aBank of New York-Sweep Acctn/an/a0.010%41,475.58 n/a
3135G0MA8Federal National Mortgage Assn06/28/1206/28/171.200%1,000,000.00 5,100.00
3134G3ZR4Federal Home Loan Mortgage08/07/1208/07/171.000%1,000,000.00 3,166.66
3136G0L58Federal National Mortgage Assn10/18/1210/18/171.000%1,000,000.00 1,194.44
3135G0RQ8Federal National Mortgage Assn11/15/1211/15/171.000%1,000,000.00 444.44
313381LC7Federal Home Loan Mortgage12/28/1212/28/170.950%1,000,000.00 4,037.50
3136G17A1Federal National Mortgage Assn12/31/1212/30/150.450%1,000,000.00 1,887.50
3133823B7Federal Home Loan Mortgage02/22/1302/22/181.150%1,000,000.00 3,162.50
3133826D0Federal Home Loan Mortgage02/28/1302/28/181.100%1,000,000.00 2,841.66
313382HR7Federal Home Loan Mortgage03/27/1303/27/181.130%1,000,000.00 2,008.88
3136G1L31Federal National Mortgage Assn05/15/1305/15/170.700%1,000,000.00 311.11
3133ECQW7Federal Farm Credit Bank06/04/1306/04/181.250%1,000,000.00 6,145.83
3134G47G7Federal Home Loan Mortgage06/26/1306/26/181.400%1,000,000.00 6,027.77
533.33200,000.00
3136G1VJ5Federal National Mortgage Assn09/27/1303/27/171.500%
Totals$ 36,861.6216,603,699.98$
**Represents the LAIF daily rate at 11/30/13
3
COSTA MESA SANITARY DISTRICT
Summary of Policy Limitations
November 30, 2013
Current %
of Market Value
Description11/30/13Maximum %
U.S. Treasury Bills0.00%Unlimited
U.S. Treasury Notes0.00%Unlimited
Federal Agency Issues:
FICB0.00%Unlimited
FLB0.00%Unlimited
FHLB0.00%Unlimited
FHLMC36.01%Unlimited
FNMA31.35%Unlimited
FFCB5.94%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)26.45%40,000,000
Shares of Benefical Interest0.00%20%
Money Market/Mutual Funds (Sweep Acct)0.25%10% per fund (2)
100.00%
Total
% of portfolio maturing under one year 26.52%no less than 20%
% of portfolio maturing over one year73.48%
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
4
COSTA MESA SANITARY DISTRICT
Schedule of Investments by Instrument Type
November 30, 2013
PurchaseMaturityCouponInvestment% ofMarket% of
DescriptionBroker/DealerDateDateRateCostPortfolioValuePortfolioComments
State Treasurer's PoolLAIFn/aContinuous0.266%**4,36$ 4,362,224.402,224.40$ POOL
Total State Treasurer's Pool 26.27%4,362,224.404,362,224.40 26.45%
Money Market Mutual FundBank of New Yorkn/aContinuous0.010%41,475.58 41,475.58 SWEEP
Total Money Market Mutual Fund 0.25%41,475.5841,475.58 0.25%
Federal Home Loan MortgageE.J. De La Rosa08/07/1208/07/171.000%1,000,000.00 994,350.00 FHLMC
Federal Home Loan MortgageE.J. De La Rosa12/28/1212/28/170.950%1,000,000.00 987,330.00 FHLMC
Federal Home Loan MortgageE.J. De La Rosa02/22/1302/22/181.150%1,000,000.00 990,870.00 FHLMC
Federal Home Loan MortgageE.J. De La Rosa02/28/1302/28/181.100%1,000,000.00 991,170.00 FHLMC
Federal Home Loan MortgageE.J. De La Rosa03/27/1303/27/181.130%1,000,000.00 983,990.00 FHLMC
Federal Home Loan MortgageE.J. De La Rosa06/26/1306/26/181.400%1,000,000.00 990,660.00 FHLMC
Total Federal Home Loan Mortgage 36.14%5,938,370.006,000,000.00 36.01%
Federal National Mortgage AssociationUnion Banc06/28/1206/28/171.200%1,000,000.00 990,420.00 FNMA
Federal National Mortgage AssociationE.J. De La Rosa10/18/1210/18/171.000%1,000,000.00 994,190.00 FNMA
Federal National Mortgage AssociationE.J. De La Rosa11/15/1211/15/171.000%1,000,000.00 992,750.00 FNMA
Federal National Mortgage AssociationUnion Banc12/31/1212/30/150.450%1,000,000.00 1,000,250.00 FNMA
Federal National Mortgage AssociationUnion Banc05/15/1305/15/170.700%1,000,000.00 991,920.00 FNMA
Federal National Mortgage AssociationUnion Banc09/27/1303/27/171.500%200,000.00 200,862.00 FNMA
Total Federal National Mortgage Association 31.32%5,170,392.005,200,000.00 31.35%
Federal Farm Credit BankE.J. De La Rosa06/04/1306/04/181.250%1,000,000.00 980,070.00 FFCB
Total Federal National Mortgage Association 6.02%980,070.001,000,000.00 5.94%
$ 100.00%16,603,699.98$ 16,492,531.98 100.00%
Total Investments
**Represents the LAIF daily rate at 11/30/13
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COSTA MESA SANITARY DISTRICT
Investment Portfolio
November 30, 2013
InvestmentPurchaseMaturityDays toCouponYield toInvestment
Broker/DealerTypeDate DateMaturityRateMaturityCost
Local Agency Investment FundPool10.266%**0.266%4,362,224.40$
Bank of New YorkSweep10.010%0.010%41,475.58
UnionBancFNMA06/28/1206/28/171,3061.200%1.200%1,000 ,000.00
E.J. De La RosaFHLMC08/07/1208/07/171,3461.000%1.000%1,000,000.00
E.J. De La RosaFNMA10/18/1210/18/171,4181.000%1.000%1,000,000.00
E.J. De La RosaFNMA11/15/1211/15/171,4461.000%1.000%1,000,000.00
E.J. De La RosaFHLMC12/28/1212/28/171,4890.950%0.950%1,000,000.00
UnionBancFNMA12/31/1212/30/157600.450%0.450%1,000,0 00.00
E.J. De La RosaFHLMC02/22/1302/22/181,5451.150%1.150%1,000,000.00
E.J. De La RosaFHLMC02/28/1302/28/181,5511.100%1.100%1,000,000.00
E.J. De La RosaFHLMC03/27/1303/27/181,5781.130%1.130%1,000,000.00
UnionBancFNMA05/15/1305/15/171,2620.700%0.700%1,000 ,000.00
E.J. De La RosaFFCB06/04/1306/04/181,6471.250%1.250%1,000,000.00
E.J. De La RosaFHLMC06/26/1306/26/181,6691.400%1.400%1,000,000.00
UnionBancFNMA09/27/1303/27/171,2131.500%1.500%200,0 00.00
$ 16,603,699.98
Total Investment Portfolio
Total Portfolio
Weighted Avg Interest Rate0.831%
Weighted Avg Yield to Maturity0.831%
Weighted Avg Days to Maturity1,040 Days2.85 Years
**Represents the LAIF daily rate at 11/30/13
6
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
November 30, 2013
Net
PurchaseMaturityIntuitionInvestment CouponInvestmentMarketAccruedGain/(Loss)
DateDateBroker/DealerTypeParRateCostValueInterestIf Sold
n/aContinuousLAIFPOOL4,362,224.40$ 0.266%**4,362,224.40 4,362,224.40 - -
n/aContinuousBank of New YorkSWEEP41,475.58 0.010%41,475.58 41,475.58 - -
06/28/1206/28/17UnionBancFNMA1,000,000.00 1.200%1,000,000.00 990,420.00 5,100.00 (9,580.00)
08/07/1208/07/17E.J. De La RosaFHLMC1,000,000.00 1.000%1,000,000.00 994,350.00 3,166.66 (5,650.00)
10/18/1210/18/17E.J. De La RosaFNMA1,000,000.00 1.000%1,000,000.00 994,190.00 1,194.44 (5,810.00)
11/15/1211/15/17E.J. De La RosaFNMA1,000,000.00 1.000%1,000,000.00 992,750.00 444.44 (7,250.00)
12/28/1212/28/17E.J. De La RosaFHLMC1,000,000.00 0.950%1,000,000.00 987,330.00 4,037.50 (12,670.00)
12/31/1212/30/15UnionBancFNMA1,000,000.00 0.450%1,000,000.00 1,000,250.00 1,887.50 250.00
02/22/1302/22/18E.J. De La RosaFHLMC1,000,000.00 1.150%1,000,000.00 990,870.00 3,162.50 (9,130.00)
02/28/1302/28/18E.J. De La RosaFHLMC1,000,000.00 1.100%1,000,000.00 991,170.00 2,841.66 (8,830.00)
03/27/1303/27/18E.J. De La RosaFHLMC1,000,000.00 1.130%1,000,000.00 983,990.00 2,008.88 (16,010.00)
05/15/1305/15/17UnionBancFNMA1,000,000.00 0.700%1,000,000.00 991,920.00 6,145.83 (8,080.00)
06/04/1306/04/18E.J. De La RosaFFCB1,000,000.00 1.250%1,000,000.00 980,070.00 6,145.83 (19,930.00)
06/26/1306/26/18E.J. De La RosaFHLMC1,000,000.00 1.400%1,000,000.00 990,660.00 6,027.77 (9,340.00)
09/27/1303/27/17UnionBancFNMA200,000.00 1.500%200,000.00 200,862.00 533.33 862.00
$ 16,603,699.98 16,603,699.98 16,492,531.98 42,696.34 (111,168.00)
Total Investments
**Represents the LAIF daily rate at 11/30/13
7
COSTA MESA SANITARY DISTRICT
Call Schedule
November 30, 2013
Type ofPurchaseMaturityCouponInvestment
InvestmentDateDateRatePar ValueCostCall Features
FNMA06/28/1206/28/171.200%1,000,000.00 1,000,000.00 Callable 6/28/13 w/10 days notice, monthly thereafter
FHLMC08/07/1208/07/171.000%1,000,000.00 1,000,000.00 Callable 8/7/14 w/5 days notice, thereafter 11,2,5,8
FNMA10/18/1210/18/171.000%1,000,000.00 1,000,000.00 Callable 5/15/13 w/10 days notice, thereafter 8,11,2,5
FNMA11/15/1211/15/171.000%1,000,000.00 1,000,000.00 Callable 5/15/13 w/10 days notice, thereafter 8,11,2,5
FHLMC12/28/1212/28/170.950%1,000,000.00 1,000,000.00 Callable 12/28/13 w/5 days notice, monthly thereafter
FNMA12/30/1212/31/150.450%1,000,000.00 1,000,000.00 Callable 12/30/13, w/10 days notice, thereafter 3, 6, 9
FHLMC02/22/1302/22/181.150%1,000,000.00 1,000,000.00 Callable 8/22/13, w/5 days notice, thereafter 8,11,2,5
FHLMC02/28/1302/28/181.100%1,000,000.00 1,000,000.00 Callable 2/28/14, w/5 days notice, annually thereafter
FHLMC03/27/1303/27/181.130%1,000,000.00 1,000,000.00 Callable 3/27/15, w/5 days notice, thereafter 3,6,9,12
FNMA05/15/1305/15/170.700%1,000,000.00 1,000,000.00 Callable 5/15/14 w/10 days notice, qtrly thereafter
FFCB06/04/1306/04/181.250%1,000,000.00 1,000,000.00 Callable 9/4/13 w/5 days notice, anytime thereafter
FHLMC06/26/1306/26/181.400%1,000,000.00 1,000,000.00 Callable 3/26/15 w/5 days notice, thereafter 3,6,9,12
FNMA09/27/1303/27/171.500%200,000.00 200,000.00 Callable 3/27/14 w/10 days notice, qtrly thereafter
Totals$ 12,200,000.0012,200,000.00$
8
COSTA MESA SANITARY DISTRICT
MATURITIES DISTRIBUTION
November 30, 2013
70%
Cost
In Thousands
50,136.76
60%
1 - 180 Days4,403$
50%
181 - 365 Days-
36.14%
31.32%
40%
1 - 2 Years-
##########
2 - 3 Years1,000
30%
6,562.50
26.52%
30% 6,562.50 26.52%2 - 3 Years 1,000
3 - 4 Years5,200
##########
20%
4 - 5 Years6,000
6.02%
10%
0.00%
0.00%TOTAL$ 16,603
000000
0%
1 -180 181 -365 1 -2 2 -3 3 -4 4 -5
DaysDaysYearsYearsYearsYears
9
Costa Mesa Sanitary District
Portfolio Interest Rate Information
as of November 30, 2013
2.00%
1.80%
1.60%
1.40%
3 month T-Bill
1.20%
6 month T-Bill
2 year T-Note
1.00%
3 year T-Note
5 year T-Note
CMSD-monthly
0.80%
LAIF-monthly
OC Pool-monthly
0.60%
0.40%
0.20%
0.00%
10