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AGENDA BILL Agenda Item No. 5(1) Date: September 18,2012 To: EI Cerrito City Council From: Subject: Mary Dodge, Administrative Services Director/City Treasurer June 30, 2012 Quarterly Investment Report ACTION REQUESTED Receive and file the City's June 30, 2012 Quarterly Investment Report. QUARTERLY INVESTMENT REPORT REVIEW The Quarterly Investment Report shows that the city's investments had a par value of $5,673,950.64 as of June 30, 2012, an increase of $2,966,654.48 from last quarter due to the receipt of the June property tax payment as well as some grant reimbursements. Without any bond proceeds to invest, the City continues to have minimal investments that are not required for debt service reserves, and to have limited, if any, interest earnings on those restricted funds. Debt reserve funds are required to be in very secure portfolios and U.S. Treasury funds are the most secure repository. Local Agency Investment Fund (LAIF) continues to provide the most liquid investment asset available and will continue to be used to invest the operational portion of the city's cash in order to maintain cash flow. Of the total amount invested, $3,502,167.26 (61.724%) is invested in Pooled Funds/LAIF and $2,171,783.38 (38.276%) is held in Money Market funds. Overall, interest rates continue to be extremely low and currently LAIF is at .36%, which is two basis points down from the last quarter. FINANCIAL CONSIDERATIONS The purpose of the City's Investment Policy is to provide guidelines for the prudent investment of the City's idle funds, and to outline the policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting the funds at all times. The City's investments are in compliance with the "Authorized Investments" section of the Investment Policy. ---PAGE BREAK--- Agenda Item No. 5(1) Reviewed by: City Manager Attachment: 1. City ofEl Cerrito June 30, 2012 Quarterly Investment Report. Page 2 ---PAGE BREAK--- ~oI&e~ Quarterly Investment Report For the Period Ending June 30, 2012 TRUSTEEI INTEREST MATURITY COSTI 'MARKET FUND INVESTMENT TYPE INVESTMENT BROKER PAR VALUE COST OR YIELD DATE 100 VALUE Pooled Investments Pooled Fund LAJF CA State Treasurer $3,502,167.26 Swim Center Fund Money Market Federated.Prm Money Market Bank of NY $366,489.42 City Hall Debt Fund Money Market Union Bank! US Treasuries Union Bank of CA $603,309.23 Street Improvement Fund Money Market Union BankIBlackrock Uquidity Union Bank of CA $741,210.97 Integrated Waste Mgmt Fund Money Market Capital One Bank Deutsche Bank $460,n3.76 TOTAlS, as of June 30, 2012 $5,673,950.64 I certify that this report is in compliance with the City of EI Cerrito Investment Policy and California Govemment Code 53646 and that there are adetluate funds ~ilable to ~t the next six months of estimated expenditures. - Lt) o z E: Q) C m E -C,c C Q) m