HomeMy WebLinkAboutA200 Authorization to reinvest (Finance)CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE: February 18, 2014
AGENDA ITEM NO.
ITEM TITLE:
Resolution of the City Council of the City of National City authorizing the reinvestment of $2 million in
a CDARS account with Neighborhood National Bank for a one-year term.
PREPARED BY: Mark Roberts, Director of Finance DEPARTMENT: Finance
PHONE: 619-336-4265 APPROVED BY:
EXPLANATION:
The City of National City deposited $2 million in a Certificate of Deposit Account Registry Service
("CDARS") account with Neighborhood National Bank in September 2007. This investment has
matured and has been renewed every 12 months since. The current investment matures March 6,
2014.
A decision regarding reinvestment of these funds must be made prior to the maturity date.
As of February 4, 2014, the 12-month rate at which the City of National City can reinvest in a CDARS
account through Neighborhood National Bank is .70%. (This rate is subject to change prior to February
18, 2014. Staff will provide the most current rate at that time.)
By comparison, the current or most recent rates of return of the City's other investments are:
San Diego County Pooled Money Fund — .419%;
Local Agency Investment Fund ("LAIF") — .244%; and
Chandler Asset Management — .37%.
FINANCIAL STATEMENT:
See attached.
APPROVED:
APPROVED:
ENVIRONMENTAL REVIEW:
This is not a project and, therefore, not subject to environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
,_, Finance
MIS
STAFF RECOMMENDATION:
Reinvest $2 million in a CDARS account with Neighborhood National Bank for a one year term.
BOARD ! COMMISSION RECOMMENDATION:
NA
ATTACHMENTS:
1, Resolution
2. Lending impact report