20 - INVESTMENT REPORT DECEMBER 2012Item 20
Costa Mesa Sanitary District
Memorandum
To: Board of Directors
...an Independent Special District
Via:
Scott Carroll, General Manager
From:
Marc Davis, Treasux-�
Date:
January 24, 2013
Subject: Investment Report for the Month of December 2012
Summary
Attached is the Investment Report for th e
District's Statement of Investment Policy,
activity during the month.
Staff Recommendation
month of December 2012. As required by the
the Investment Report delineates all investment
Approve the Investment Report for the month of December 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 December 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.
(D Protecting our community's health and the environment by providing solid waste and sewer collection services.
www.crosdca.gov
Board of Directors
January 24, 2013
Page 2 of 3
The weighted average stated rate of return (current yield) for the District's investment
portfolio as of December 31, 2012, was 0.745 %. The yield to maturity of the portfolio was
0.747 %. The District's weighted average interest rate was 42 basis points (0.419 %) above
the daily effective yield of LAIF, which was 0.326% as of December 31, 2012. The
weighted average number of days to maturity for the District's total portfolio was 906 days
(2.48 years). The average duration of the underlying securities in LAIF as of December
31, 2012, which is the most current information available, was 208 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 December 31, 2012 was
39.83 %.
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
31, 2013. Through December 31, 2012, the portfolio has earned a weighted average
interest rate of 0.868 %. Staff anticipates that the District will be close to budget with its
estimated investment earnings.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the
January 24, 2013 Board of Directors regular meeting at District Headquarters (628 W. 19th
Street) and on the District's website at www.crosdca.gov.
Board of Directors
January 24, 2013
Page 3 of 3
Alternative Actions
1. Refer the matter back to staff
Attachments
Treasurer's Report of Pooled Cash and Investments as of December 31, 2012
COSTA MESA SANITARY DISTRICT
Treasurer's Report of Pooled Cash and Investments
December 31, 2012
Costa Mesa Sanitary District
Pooled Cash and Investments by Fund
December 31, 2012
Solid Waste Fund
Operating Reserve
$ 801,000.00
Deposits Outstanding
5,343,574.49
Liquid Waste Fund:
Bank Balance
In Transits Checks
Book Balance
Active Accounts:
1,000,000.00
Reserved for Capital Outlay
2,774,665.00
Bank of America
$ 58,647.89
233,989.07
$ (175,341.18)
Total Active Accounts
58,647.89
233,989.07
(175,341.18)
Asset Management Fund
5,304,349.15
Market Adjustment
$ 18,107,561.50
Market Value
Increase Decrease
Cost
Investments:
Local Agency Investment Fund
$ 6,138,840.93
-
$ 6,138,840.93
Money Market/Sweep Account
1,145,311.75
- -
1,145,311.75
Federal Agency Securities
11,012,925.00
- 14,175.00
10,998,750.00
Total Investments
18,297,077.68
- 14,175.00
18,282,902.68
Total Pooled Cash & Investments
$ 18,355,725.57 $
- $ 248,164.07
$ 18,107,561.50
Costa Mesa Sanitary District
Pooled Cash and Investments by Fund
December 31, 2012
Solid Waste Fund
Operating Reserve
$ 801,000.00
Unreserved
5,343,574.49
Liquid Waste Fund:
Operating Reserve
371,000.00
Reserved for Earthquakes /Emergencies
1,000,000.00
Reserved for Capital Outlay
2,774,665.00
Unreserved
2,073,358.43
Sewer Construction Fund
100,000.00
Facilities Revolving Fund
96,107.77
Asset Replacement Fund
243,506.66
Asset Management Fund
5,304,349.15
Total Pooled Cash & Investments
$ 18,107,561.50
1/15/13
Marcus D. Davis
Date
Treasurer
1
COSTA MESA SANITARY DISTRICT
Investment Activity Summary
December 31, 2012
Total investments outstanding as of November 30, 2012
Additions:
Gain on sale of investment
Investment purchases
Deductions:
Investments called
Net increase (decrease) in Sweep Account
Net increase (decrease) in LAIF
Total investments outstanding as of December 31, 2012
2
$ 14,236,885.19
2,000,000.00
(1,993,982.51)
4,040,000.00
$ 18,282,902.68
COSTA MESA SANITARY DISTRICT
Investment and Investment Earnings
December 31, 2012
CUSIP
Number
Investment
Purchase
Date
Maturity
Date
Coupon
Rate
n/a
Local Agency Investment Fund
n/a
n/a
0.326%
n/a
Bank of New York -Sweep Acct
n/a
n/a
0.000%
31331 K5G1
Federal Farm Credit Bank
01/04/12
01/04/16
1.120%
3134G3GJ3
Federal Home Loan Mortgage
01/17/12
01/17/17
1.375%
3134G3HL7
Federal Home Loan Mortgage
01/18/12
07/18/16
1.300%
3133EAPB8
Federal Farm Credit Bank
05/02/12
05/02/17
1.230%
3136GOGX3
Federal National Mortgage Assn
05/30/12
08/24/16
1.000%
3135GOMA8
Federal National Mortgage Assn
06/28/12
06/28/17
1.200%
3134G3ZR4
Federal Home Loan Mortgage
08/07/12
08/07/17
1.000%
3136GOL58
Federal National Mortgage Assn
10/18/12
10/18/17
1.000%
3135GOR08
Federal National Mortgage Assn
11/15/12
11/15/17
1.000%
313381 LC7
Federal Home Loan Mortgage
12/28/12
12/28/17
0.950%
3136G17A1
Federal National Mortgage Assn
12/31/12
12/30/15
0.450%
Totals
'Represents the LAIF daily rate at 12/31/12
3
Interest
Investment Earned at
Cost 12/31/12
$ 6,138,840.93
n/a
1,145,311.75
n/a
1,000,000.00
5,506.66
998,750.00
6,263.88
1,000,000.00
5,886.11
1,000,000.00
2,015.83
1,000,000.00
3,527.77
1,000,000.00
100.00
1,000,000.00
4,000.00
1,000,000.00
2,027.77
1,000,000.00
1,277.77
1,000,000.00
79.16
1.000.000.00
-
$ 18,282,902.68 $ 30,684.95
Comments
COSTA MESA SANITARY DISTRICT
Summary of Policy Limitations
December 31, 2012
Description
U.S. Treasury Bills
U.S. Treasury Notes
Federal Agency Issues:
FICB
FLB
FHLB
FHLMC
FNMA
FFCB
Other
Banker's Acceptances
Certificates of Deposit
Negotiable Certificates of Deposits
Commercial Paper
Medium Term Corporate Notes
LAIF (Local Agency Investment Fund)
Shares of Benefical Interest
Money Market/Mutual Funds (Sweep Acct)
Total
% of portfolio maturing under one year
% of portfolio maturing over one year
Current %
of Market Value
12/31/12
0.00%
0.00%
0.00%
0.00%
0.00%
21.84%
27.40%
10.95%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
33.55%
0.00%
6.26%
100.00%
39.83%
60.17%
100.00%
Maximum %
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
25%(1)
25%
25%(1)
25%(1)
20%(1)
40,000,000
20%
10% per fund (2)
no less than 20%
(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
December 31, 2012
Total Federal National Mortgage Association
Federal Farm Credit Bank
Federal Farm Credit Bank
Total Federal Farm Credit Bank
— Represents the LAIF daily rate at 12/31/12
Union Banc 01/04/12 01/04/16 1.120%
E.J. De La Rosa 05/02/12 05/02/17 1.230%
Total Investments
5,000,000.00 27.35% 5,013,485.00 27.40%
1,000,000.00 1,000,050.00
1,000,000.00 1,003,270.00
2,000,000.00 10.94% 2,003,320.00 10.95%
$ 18,282,902.68 100.00% $ 18,297,077.68 100.00%
FFCB
FFCB
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
0.326%
$ 6,138,840.93
$ 6,138,840.93
POOL
Total State Treasurer's Pool
6,138,840.93
33.58%
6,138,840.93
33.55%
Money Market Mutual Fund
Bank of New York
n/a
Continuous
0.000%
1,145,311.75
1,145,311.75
SWEEP
Total Money Market Mutual Fund
1,145,311.75
6.26%
1,145,311.75
6.26%
Federal Home Loan Mortgage
Union Banc
01/17/12
01/17/17
1.375%
998,750.00
1,000,560.00
FHLMC
Federal Home Loan Mortgage
Union Banc
01/18/12
07/18/16
1.300%
1,000,000.00
1,000,480.00
FHLMC
Federal Home Loan Mortgage
E.J. De La Rosa
08/07/12
08/07/17
1.000%
1,000,000.00
996,510.00
FHLMC
Federal Home Loan Mortgage
E.J. De La Rosa
12/28/12
12/28/17
0.950%
1,000,000.00
998,570.00
FHLMC
Total Federal Home Loan Mortgage
3,998,750.00
21.87%
3,996,120.00
21.84%
Federal National Mortgage Association
Union Banc
05/30/12
08/24/16
1.000%
1,000,000.00
1,002,980.00
FNMA
Federal National Mortgage Association
Union Banc
06/28/12
06/28/17
1.200%
1,000,000.00
1,004,375.00
FNMA
Federal National Mortgage Association
E.J. De La Rosa
10/18/12
10/18/17
1.000%
1,000,000.00
1,003,460.00
FNMA
Federal National Mortgage Association
E.J. De La Rosa
11/15/12
11/15/17
1.000%
1,000,000.00
1,002,070.00
FNMA
Federal National Mortgage Association
Union Banc
12/31/12
12/30/15
0.450%
1,000,000.00
1,000,600.00
FNMA
Total Federal National Mortgage Association
Federal Farm Credit Bank
Federal Farm Credit Bank
Total Federal Farm Credit Bank
— Represents the LAIF daily rate at 12/31/12
Union Banc 01/04/12 01/04/16 1.120%
E.J. De La Rosa 05/02/12 05/02/17 1.230%
Total Investments
5,000,000.00 27.35% 5,013,485.00 27.40%
1,000,000.00 1,000,050.00
1,000,000.00 1,003,270.00
2,000,000.00 10.94% 2,003,320.00 10.95%
$ 18,282,902.68 100.00% $ 18,297,077.68 100.00%
FFCB
FFCB
Broker /Dealer
Local Agency Investment Fund
Bank of New York
UnionBanc
UnionBanc
UnionBanc
E.J. De La Rosa
UnionBanc
UnionBanc
E.J. De La Rosa
E.J. De La Rosa
E.J. De La Rosa
E.J. De La Rosa
UnionBanc
Total Investment Portfolio
Total Portfolio
Weighted Avg Interest Rate
Weighted Avg Yield to Maturity
Weighted Avg Days to Maturity
Investment
Type
Pool
Sweep
FFCB
FHLM
FHLM
FFCB
FNMA
FNMA
FHLM
FNMA
FNMA
FHLM
FNMA
*Represents the LAIF daily rate at 12/31/12
COSTA MESA SANITARY DISTRICT
Investment Portfolio
December 31, 2012
Purchase
Date
01/04/12
01/17/12
01/18/12
05/02/12
05/30/12
06/28/12
08/07/12
10/18/12
11/15/12
12/28/12
12/31/12
0.745%
0.747%
906 Days
Maturity
Date
01/04/16
01/17/17
07/18/16
05/02/17
08/24/16
06/28/17
08/07/17
10/18/17
11/15/17
12/28/17
12/30/15
C.1
Days to Coupon Yield to
Maturity Rate Maturity
Investment
Cost
1
0.326% "
0.326%
$ 6,138,840.93
1
0.000%
0.000%
1,145,311.75
1,099
1.120%
1.120%
1,000,000.00
1,478
1.375%
1.401%
998,750.00
1,295
1.300%
1.300%
1,000,000.00
1,583
1.230%
1.230%
1,000,000.00
1,332
1.000%
1.000%
1,000,000.00
1,640
1.200%
1.200%
1,000,000.00
1,680
1.000%
1.000%
1,000,000.00
1,752
1.000%
1.000%
1,000,000.00
1,780
1.000%
1.000%
1,000,000.00
1,823
0.950%
0.950%
1,000,000.00
1,094
0.450%
0.450%
1,000,000.00
2.48 Years
$ 18,282,902.68
COSTA MESA SANITARY DISTRICT
For all Maturities with Market Values
December 31, 2012
Purchase
Maturity
Intuition
Investment
Investment
Coupon
Date
Date
Broker /Dealer
Type
Par
Rate
n/a
Continuous
LAIF
POOL
$ 6,138,840.93
0.326%
n/a
Continuous
Bank of New York
SWEEP
1,145,311.75
0.000%
01/04/12
01/04/16
UnionBanc
FFCB
1,000,000.00
1.120%
01/17/12
01/17/17
UnionBanc
FHLM
1,000,000.00
1.375%
01/18/12
07/18/16
UnionBanc
FHLM
1,000,000.00
1.300%
05/02/12
05/02/17
E.J. De La Rosa
FFCB
1,000,000.00
1.230%
05/30/17
08/24/16
UnionBanc
FNMA
1,000,000.00
1.000%
06/28/12
06/28/17
UnionBanc
FNMA
1,000,000.00
1.200%
08/07/12
08/07/17
E.J. De La Rosa
FHLM
1,000,000.00
1.000%
10/18/12
10/18/17
E.J. De La Rosa
FNMA
1,000,000.00
1.000%
11/15/12
11/15/17
E.J. De La Rosa
FNMA
1,000,000.00
1.000%
12/28/12
12/28/17
E.J. De La Rosa
FHLM
1,000,000.00
0.950%
12/31/12
12/30/15
UnionBanc
FNMA
1,000,000.00
0.450%
Total Investments
$ 18,284,152.68
*"Represents the LAIF daily rate at 12/31/12
7
18,282,902.68 18,297,077.68 30,684.95 14,175.00
Net
Investment
Market
Accrued
Gain /(Loss)
Cost
Value
Interest
If Sold
`* 6,138,840.93
6,138,840.93
-
-
1,145,311.75
1,145,311.75
-
-
1,000,000.00
1,000,050.00
5,506.66
50.00
998,750.00
1,000,560.00
6,263.88
1,810.00
1,000,000.00
1,000,480.00
5,886.11
480.00
1,000,000.00
1,003,270.00
2,015.83
3,270.00
1,000,000.00
1,002,980.00
3,527.77
2,980.00
1,000,000.00
1,004,375.00
100.00
4,375.00
1,000,000.00
996,510.00
4,000.00
(3,490.00)
1,000,000.00
1,003,460.00
2,027.77
3,460.00
1,000,000.00
1,002,070.00
1,277.77
2,070.00
1,000,000.00
998,570.00
79.16
(1,430.00)
1,000,000.00
1,000,600.00
-
600.00
18,282,902.68 18,297,077.68 30,684.95 14,175.00
Type of
Investment
Purchase
Date
Maturity
Date
Coupon
Rate
FFCB
01/04/12
01/04/16
1.120%
FHLMC
01/17/12
01/17/17
1.375%
FHLMC
01/18/12
07/18/16
1.300%
FFCB
05/02/12
05/02/17
1.230%
FNMA
05/30/12
08/24/16
1.000%
FNMA
06/28/12
06/28/17
1.200%
FHLMC
08/07/12
08/07/17
1.000%
FNMA
10/18/12
10/18/17
1.000%
FNMA
11/15/12
11/15/17
1.000%
FHLMC
12/28/12
12/28/17
0.950%
FNMA
12/30/12
12/31/15
0.450%
COSTA MESA SANITARY DISTRICT
Call Schedule
December 31, 2012
Par Value
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
Investment
Cost
1,000,000.00
998,750.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
Totals $ 11,000,000.00 $ 10,998,750.00
0
Call Features
Callable 1/4/13 w/5 days notice and anytime after
Callable 1/17/13 w/5 days notice, thereafter 4,7,10,1
Callable 1/18/13 w/5 days notice, thereafter 4,7,10,1
Callable 5/2/13 w/5 days notice and anytime after
Callable 5/30/13 w /10 days notice, thereafter 8,11,2,5
Callable 6/28/13 w /10 days notice, monthly thereafter
Callable 8/7/14 w/5 days notice, thereafter 11,2,5,8
Callable 5/15/13 w /10 days notice, thereafter 8,11,2,5
Callable 5/15/13 w /10 days notice, thereafter 8,11,2,5
Callable 12/28/13 w/5 days notice, monthly thereafter
Callable 12/30/13, w /10 days notice, thereafter 3, 6, 9
I
COSTA MESA SANITARY DISTRICT
MATURITIES DISTRIBUTION
December 31, 2012
70%
-------------------------------------------------------------
----------------------------------------------------
Cost
60%
- - - - --
In Thousands
----------------------------------
---------------------------- 1 - 180 Days
$ 7,283
50%
38.29% 181 - 365 Days
-
40%
1 - 2 Years
3o °i°
-- -------------------------------
- - - --- 1.88 - -- --
21.88% 2 - 3 Years
-
-- ---------------------------jo 3 - 4 Years
4,000
20%
------------------------------
4 - 5 Years
7,000
1 o °i°
° o.00 °i°
0.00 /°
- --
TOTAL
$ 18,283
0 0 0
0 0
0%
1- 180 181 -365 1-2
2 -3 3 -4 4 -5
Days Days Years
Years Years Years
I
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
, )
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Costa Mesa Sanitary District
Portfolio Interest Rate Information
as of December 31, 2012
10
—3 month T -Bill
-^6 month T -Bill
2 year T -Note
=3 year T -Note
—5 year T -Note
®CMSD- monthly
—LAIF- monthly
HOC Pool- monthly