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Home My Public Portal AboutA 2017-09-05 LPFAThis Agenda contains a brief general description of each item to be considered. Copies of the Staff reports or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the City Manager at (310) 603 -0220, ext. 200. Procedures for Addressing the Council IN ORDER TO EXPEDITE CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE FOR CONSIDERATION AT THE REGULAR MEETING OF THE LYNWOOD PUBLIC FINANCING AUTHORITY TO BE HELD ON SEPTEMBER 5, 2017 6:00 P.M. COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 MARIA TERESA SANTILLAN -BEAS PRESIDENT JOSE LUIS SOLACHE VICE PRESIDENT AIDE CASTRO MEMBER CHIEF ADMINISTRATIVE OFFICER ALMA K. MARTINEZ SECRETARY MARIA QUINONEZ AUTHORITY COUNSEL NOEL TAPIA OPENING CEREMONIES CALL TO ORDER ROLL CALL OF MEMBERS AUG 3 12017 CITY OF LYNWOOD CITY CLERKS OFFICE SALVADOR ALATORRE l MEMBER EDWIN E. HERNANDEZ MEMBER FINANCE DIRECTOR JOSE OMETEOTL CITY TREASURER GABRIELA CAMACHO Salvador Alatorre Aide Castro Edwin E. Hernandez— Council Member Edwin E. Hernandez will participate via teleconference from the Courtyard San Juan Miramar Business Office, 801 Ponce de Leon Avenue, San Juan, 00907, Puerto Rico (787) 721 -7400 Jose Luis Solache Maria T. Santillan -Beas 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY 4. GOVERNMENT CODE SECTION 54954.3 Members of the City Council are also members of Lynwood Public Financing Authority, which is concurrently convening with the City Council this evening and each Council Member is paid an Additional Stipend of $100 for Attending the Lynwood Public Financing Authority Meeting. Further, the Authority is scheduled to meet four (4) timer per year. If additional meetings are required beyond the scheduled four (4) meetings, the City Council will only get paid for the first four (4) meetings. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) NON - AGENDA PUBLIC ORAL COMMUNICATIONS THIS PORTION PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE LYNWOOD PUBLIC FINANCING AUTHORITY ON ITEMS WITHIN THE JURISDICTION OF THE LYNWOOD PUBLIC FINANCING AUTHORITY AND NOT LISTED ON THE AGENDA. IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE LYNWOOD PUBLIC FINANCING AUTHORITY, BUT LYNWOOD PUBLIC FINANCING AUTHORITY MEMBERS MAY REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2 (a).) CONSENT CALENDAR All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recommended on the agenda. There will be no separate discussion on these items prior to voting unless members of the Authority or staff request specific items be removed from the Consent Calendar for separate action. 5. TREASURER'S MONTHLY INVESTMENT REPORT Comments Government Code Section 53607, last amended 1996, with reference to the reporting of investment transactions states that the Treasurer shall make a monthly report of those transactions to the legislative body. Government Code Section 53646 (b) (1), last amended 2004, with reference to discussion related to the establishment of an Investment Policy and investment reporting states that "the Treasurer may render a quarterly report ". Recommendation: It is recommended that the City of Lynwood receive and file the attached Monthly Investment Report. The information provided in this report highlights the investment activity for months ending July 31, 2017. ADJOURNMENT THE LYNWOOD PUBLIC FINANCING AUTHORITY MEETINGS WILL BE POSTED AS NEEDED. THE NEXT MEETING WILL BE HELD IN THE COUNCIL CHAMBERS OF CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. .A. .K'it�n,LT4°{ DATE: TO: APPROVED BY: PREPARED BY: SUBJECT: Recommendation: AGENDA STAFF REPORT September 5, 2017 Honorable President and Members of the Alma K. Martinez, City Manager Mt, Gabriela Camacho, City Treasurerk Sheila Harding, Deputy City Treasurer Treasurer's Monthly Investment Report Public Finance Authority It is recommended that the City of Lynwood receive and file the attached Monthly Investment Report. The following information provided in this report highlights the investment activity for months ending July 31, 2017. Background: Government Code Section 53607, last amended 1996, with reference to the reporting of investment transactions states that the Treasurer shall make a monthly report of those transactions to the legislative body. Government Code Section 53646 (b) (1), last amended 2004, with reference to discussion related to the establishment of an Investment Policy and investment reporting states that "the Treasurer may render a quarterly report". To determine the applicable code inasmuch as reference to Government Code Section 53607 or non - compliance thereof has never been included in past audit findings. While Government Code Section 53646 (b) (1), which is the most current version related to Investment Reporting utilizes the word "may" - indicating the reporting mechanism is optional - to err on the side of caution, and in order to ensure that we are in compliance with all Government Codes, a new procedure of submitting monthly reports to the Council /Agency agenda was implemented. Attached for Council /Agency review is the City's /Agency's monthly Treasurer's Report. Subsequent reports will be provided on a monthly basis at the second meeting of each month. Fiscal Impact: The action recommended in this report will not have a fiscal impact on the City. ITEM 5 City of Lynwood Investment Report Summary Notes For the Month of July 31, 2017 The investment activity for July, 2017 included 1 purchase and 2 redemptions. Jackson Nat'l Life AA Barclays Bank $245,000.00 1.096 State Bank of India $245,000.00 1.095 * Calculation uses 360 Day Basis ** Calculation uses 365 Day Basis 1.150 Med. Term Note 1.150% 1.200 CD -FDIC 1.200% 1.252 CD -FDIC The Local Agency Investment Fund (LAIF) balance as of June 30, 2017 was $18,215,604.32 with an average monthly yield of 0.978 %, and an interest rate of 0.92 %. quarterly interest in the amount of $42,327.94 was received on July 14, 2017. The ending balance on July 31, 2017 was $15,257,932.26. The deduction in total is due to the transfer of money to the City's general account to cover the City's expenditures. Liquidity of the Portfolio • The current goal is to keep the investment portfolio at an average maturity of 2 years based on current economic conditions. The portfolio's current average maturity is 231 days. • The goal is to keep an average of $9 - $15 million in liquid assets in order to meet operational needs and for unexpected expenditures that may arise. The City is in compliance with California Government Code Section 53646 which requires local agency to report its ability to meet pooled expenditure requirements for the next six (6) months. • The City's portfolio will stay the course based on the current economic trends. Covering cash flow needs rank as the top priority. Portfolio Performance: Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Pass Through Securities ➢ Interest Collected ➢ Plus Accrued Interest @ End of Period ➢ Less Accrued Interest @ Beginning of Period ➢ Less Accrued Interest at Purchase During Period Interest Earned during this Period 564.74 564.74 0.00 0.00 13,760.87 13,760.87 0.00 0.00 (0.00) (0.00) 0.00 0.00 0.00 (0.00) (0.00) 0.00 Adjusted by Premiums and Discounts 0.00 0.00 Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 r CD /Coupon /Discount Investments: ➢ Interest Collected 10,275.34 10,275.34 ➢ Plus Accrued Interest @ End of Period 37,320.84 37,320.84 ➢ Less Accrued Interest @ Beginning of Period ( 34,400.05) ( 34,400.05) ➢ Less Accrued Interest @ Purchase During Period 0.00 0.00 Interest Earned during this Period 13,196.13 13,196.13 Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Pass Through Securities ➢ Interest Collected ➢ Plus Accrued Interest @ End of Period ➢ Less Accrued Interest @ Beginning of Period ➢ Less Accrued Interest at Purchase During Period Interest Earned during this Period 564.74 564.74 0.00 0.00 13,760.87 13,760.87 0.00 0.00 (0.00) (0.00) 0.00 0.00 0.00 (0.00) (0.00) 0.00 Adjusted by Premiums and Discounts 0.00 0.00 Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 Investment Report Summary September 5, 2017 Page Two Cash /Checking Accounts: • Interest Collected (Goldman Sachs) • Plus Accrued Interest at End of Period • Less Interest at Beginning of Period Interest Earned this Period Total Interest Earned Total Adjustments from Premium and Discounts Total Capital Gains or Loss Total Earnings this Period 42,403.74 45,936.37 ( 73.524.68) 14,815.43 28,011.56 564.74 0.00 28,576.30 42,403.74 45,936.37 ( 73.524.68) 14,815.43 28,011.56 564.74 0.00 28,576.30 Notes: Adjusted by Premium /Discounts represents the premium or discount cost involved to secure higher or lower yield securities. The cost of the premium or discount is amortized down or up respectively to par over the life of the bond until reaching maturity. By amortizing the amount of taxable interest Is reduced for each year the city owns the bond. This is because the amortized premiums or discounts offset the ordinary income of the coupon payment. As long as a bond is held to maturity there will be no capital loss or gain to report. Month End & Year N of Securities Interest Average Balance YTM 360% YTM 365 Effective Rate of Return Days to Maturity Jul -16 39 20,711.33 29,035,886.87 0.849 0.861 0.84% 213 Aug -16 39 21,322.94 29,068,055.07 0.876 0.888 0.86% 225 Sep -16 39 21,208.36 29,084,435.06 0.881 0.893 0.89% 215 Oct -16 39 21,973.80 29,112,032.67 0.884 0.896 0.89% 223 Nov -16 39 20,795.72 27,665,678.31 0.956 0.969 0.91% 253 Dec -16 38 21,368.32 25,949,845.70 1.015 1.029 0.97% 280 Jan -17 38 23,161.80 27,030,078.37 0.977 0.991 1.01% 217 Feb -17 38 24,031.34 30,621,974.05 1.099 0.023 1.02% 221 Mar -17 38 24,438.78 27,712,717.35 1.062 1.076 1.04% 235 Apr -17 38 24,681.65 27,743,013.65 1.108 1.124 1.08% 237 May -17 38 26,957.82 28,542,075.12 1.117 1.133 1.50% 591 Jun -17 38 28,593.15 30,515,206.23 1.169 1.186 1.14% 216 Jul -17 37 28,576.30 28,242,917.30 1.244 1.261 1.19% 245 Attachments: Reconciliation Report Interest Report Portfolio Summary Investment Activity Lynwood - Portfolio Management Portfolio Management Portfolio Summary July 31, 2017 Investments Par Value Market Value Book Value %of Portfolio Term Daysto Malunly YTM 360 Equiv. YTM 365 Equiv. Money Market Funds 290,255.83 290.255.83 290,25583 1.12 1 1 0.808 0910 LAIF 15,257,93228 15,267,93228 16,257,93228 58.03 1 1 1.038 1.050 Corporate Notes 3,500,000.00 3,494.96250 3.492.955AB 13.51 1.170 626 1.674 1.697 Federal Agency 2.000,000.00 1.992.940.00 1,992,90574 7.71 1.429 893 1.504 1.525 Treasury Coupon Securities 1,000,000.00 1,000.515.00 997,71856 386 1,601 34B 1.389 1A08 Federal Agency Callable 350 ,000.00 349.048.00 350,000.00 135 1.096 1,000 1.558 1.580 CD-FDIC 3,468,000.00 3,465,20537 3,465,237.64 13AI 1.225 479 1.536 1.557 25,864,188.09 25,850,858.96 25,847,005.43 100.00% 510 245 1.244 1.261 Investments Total Earnings July 31 Month Ending Fiscal Year To Date Current Year 28.576.30 28,576.38 Average Daily Balance 28,242,917.30 28,242,91730 Effective Rate of Return 1.19% 1.19% 8 -9 -17 FIN Financial Main Street Advisors, Rick Phillips Reporting period 0770120171171312017 Data Updated: SET PMM: 08H101201714:20 Rut O"e:O8W2017 -14:20 Portfolio LYNW AP PM(PRF_PM1)73.0 Report Vec73.5 16 City of Lynwood Cash Reconciliation Report For the Period July 1, 2017 - July 31, 2017 Trans. Trans. Par Maturity Date Investment# Fund Type Security ID Value Security Description Date Purchases Interest Redemptions Cash 07/03/2017 10072 LYN Interest 06740KGZ4 245,000.00 BACR 0.2M 1.15 %Mat. 07 1032017 07103/2017 0.00 7.72 0.00 7.72 07/03/2017 10072 LYN Interest 06740KGZ4 245,000.00 BACR 0.2M 1.15% Mat. 07 /03/2017 07103/2017 0.00 1,397.17 0.00 1,397.17 07/03/2017 10090 LYN Interest 02587DZM3 248,000.00 AXP 0.2M 1.65% Mat 07 10212018 07/02/2018 0.00 2,029.18 0.00 2,029.18 07/03/2017 10072 LYN Maturity 06740KGZ4 245,000.00 BACR 0.2M 1.15% Mat. 071032017 07/0312017 0.00 0.00 245,000.00 245,000.00 07/10/2017 10103 LYN Interest 89233P7E0 250,000.00 TOY 0.3M 1.38% Mat. 01 /102018 01/10/2018 0.00 1,718.75 0.00 1,718.75 07/1012017 10116 LYN Interest 40434AZ44 248,000.00 HSBC 0.2M 1.40 % Mat. 07 10812020 07/08/2020 0.00 1,721.73 0.00 1,721.73 07/1212017 10107 LYN Interest 9497483K1 248,000.00 WFB 0.2M 1.15% Mat. 02/12/2018 02/12/2018 0.00 234.41 0.00 234.41 07112/201710128 LYN Purchase 46949LSW2 250,000.00 JAC 0.3M 2.50% Mat. 06127 /2022 06/27/2022 - 247,795.00 - 260.42 0.00 - 248,055.42 07/1712017 10125 LYN Interest 24422ERY7 250,000.00 DE 0.3M 1.70% MaL 01/15/2020 01/1512020 0.00 2,125.00 0.00 2,125.00 07/26/2017 10083 LYN Interest 20033AJL1 248,000.00 ADS 0.2M 1.70% Mat 052512018 0512512018 0.00 346.52 0.00 346.52 07/31/2017 10073 LYN Interest 856284Y73 245,000.00 SBIIN 0.2M 1.20% Mat 07/31/2017 0713112017 0.00 16.11 0.00 16.11 07/31/2017 10073 LYN Interest 856284Y73 245,000.00 SBIIN 0.2M 1.20% Mat. 07 /31/2017 07/31/2017 0.00 1,457.92 0.00 1,457.92 07/31/2017 10073 LYN Maturity 856284Y73 245,000.00 SBIIN 0.2M 1.20% Mat, 07 /31/2017 07131/2017 0.00 0.00 245,000.00 245,000.00 Run Date: 08/082017 -14:13 Subtotal - 247,795.00 10,794.09 490,000.00 252,999.09 Total - 247,795.00 10,794.09 490,000.00 252,999.09 Portfolio LYNW AP AC (PRF AC) 7.2.0 Report Ver. 7.3.5 32 Lynwood - Portfolio Management Interest Earned during Period Portfolio Management Page 1 Adjusted by Premiums and Discounts Interest Earnings Summary 564.74 Adjusted by Capital Gains or Losses July 31, 2017 0.00 Earnings during Periods July 31 Month Ending Fiscal Year To Date CD /Coupon /Discount Investments: Interest Collected 10,275.34 10,275.34 Plus Accrued Interest at End of Period 37,320.84 37,320.84 Less Accrued Interest at Beginning of Period ( 34,400.05) ( 34,400.05) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 13,196.13 13,196.13 Adjusted by Premiums and Discounts 564.74 564.74 Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 13,760.87 13,760.87 Pass Through Securities: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Less Accrued Interest at Purchase During Period Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods CashlChecking Accounts: Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period Interest Earned during Period 0.00 0.00 0.00 0.00 ( 0.00) ( 0.00) ( 0.00) ( 0.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 42,403.74 45,936.37 ( 73,524.68) 14,815.43 0.00 42,403.74 45,936.37 ( 73,524.68) 14,815.43 Total Interest Earned during Period 28,011.56 28,011.56 Total Adjustments from Premiums and Discounts 564.74 564.74 Total Capital Gains or Losses 0.00 0.00 Total Earnings during Period Data Updated: SET_PMM: 08/08/2017 14:20 Rw Date: 081062017 -14:20 28,576.30 28,576.30 Portfolio LYNW AP PM (PRF_PM6) 7.3.0 Report Ver. 7.3.5 26 FTN FINANCIAL. Investment Activity MAIN STREET ADVISORS 7/31/2017 City of Lynwood Number of Positions at Month End 42 41 40 39 38 - - - -- - - - - - - - - -- 0 37 — 0 Q. 36 35 34 33 32 Aug -16 Sep -16 Oct -16 Nov -16 Dec -16 Jan -17 Feb -17 Mar -17 Apr -17 May -17 Jun -17 Jul -17 Purchases and Redemptions' (Excluding LAIF & MMF) 6 upurcnases ■Redemptions u 5 0 0 v 4 f0 N C N F= 3 0 2 E - -' E Z 1 - 0 Ll Aug -16 Sep -16 Oct -16 Nov -16 'Redemptions include maturities, calls, and sells (excluding paydowns) Dec -16 Jan -17 Feb -17 Mar -17 Apr -17 May -17 Jun -17 Jul -17 15 Au -16 Se -16 0a -16 Nov -16 Dec -16 Jan -17 Feb -17 Mar -17 A L17 Mal-1 7 Jun -17 Jul -17 Purchases 2 2 1 1 1 0 0 1 1 0 1 1 Redem Lions 2 1 2 1 1 1 1 2 1 0 1 0 1 1 1 1 1 0 1 1 2 Total Transactions 3 1 0 1 0 1 5 2 1 4 1 4 1 2 1 2 1 0 1 0 3 15