HomeMy WebLinkAboutSA Inv Report Attachement (Finance)ATTACHMENT 1
BACKGROUND
California Government Code Section 53646 requires that staff submit a quarterly
investment report to the Community Development (CDC) Chairman and members that
consists of the following information:
VVN'VVV
Type of investment or description,
Issuers (bank or institution),
Dollar amount,
Interest rate,
Current market valuation as of the date of the report,
And the date of maturity.
In addition, the code requires that the report states the CDC's compliance with its
investment policy and include a statement on the CDC's ability to meet its pool's
expenditure requirements.
OVERVIEW OF CITY INVESTMENTS
The CDC investments most of its funds with the California Treasurer's Local Agency
Investment Fund (LAIF). This is a liquid investment pool, which allows participants to
earn market rate returns of large investments, while retaining access to funds within 24
hours of a withdrawal request. For the month ended June 30, 2012, LAIF's monthly
average effective yield was 0.358%.
The investment of debt service reserve funds, the 1999, 2004, 2005 and 2011 Tax
Allocation Bonds, and the HUD Section 108 Loan Program funds are controlled by the
designated fiscal agent. The reserve funds account for 42.98% of the CDC's portfolio.
The investment portfolio has the ability to meet the CDC's financial needs.