HomeMy WebLinkAboutSA Attachment Inv Rep (Finance)ATTACHMENT 1
BACKGROUND
California Government Code Section 53646 requires that staff submit a quarterly
investment report to the Successor Agency to the Community Development
Commission as the National City Redevelopment Agency (SA) Chairman and members
that consists of the following information:
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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 SA's compliance with its
investment policy and include a statement on the SA'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 September 30, 2012, LAIF's
monthly average effective yield was 0.348%.
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 16.13% of the SA's portfolio.
The investment portfolio has the ability to meet the SA's financial needs.