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2016-08-24 Item 08D Treasurers Annual Report for Fiscal Year Ended 6-30-16 AGENDA REPORT City Council MEETING DATE: August 24, 2016 PREPARED BY: Tim Nash DEPT. DIRECTOR: Tim Nash Finance Director DEPARTMENT: Finance CITY MANAGER: Karen P. Brust SUBJECT: Treasurer's Annual Report for the Fiscal Year Ended June 30, 2016, adoption of Investment Policy and approval of Broker Dealer list. RECOMMENDATION: That City Council take the following action: 1. Receive and file the Treasurer's Report for the fiscal year ended June 30, 2016 2. Adopt revised Investment Policy 3. Approve list of Broker/Dealers STRATEGIC PLAN: Organizational Efficiency and Effectiveness FISCAL CONSIDERATIONS: There is no direct fiscal impact associated with this report. Investment revenue for FY 2015-16 was $814,481. BACKGROUND: The City's adopted Investment Policy (Section XVI) requires the City Treasurer to report investment positions and results of the Pooled Investment Fund and the Investment of Bond Proceeds to the City Council annually at a public meeting. Section VII of the Investment Policy requires City Council approval of any broker/dealers and Section XVII requires that the Investment Policy be reviewed and adopted at least annually, regardless of whether there are any proposed changes to the Policy. The following information is included in this agenda report and the related attachments: • Detailed reports on the Pooled Investment Fund of the city for FY 2015-16 — Attachment 1 • Summary report for the investment of bond proceeds—Attachment 2 • Redlined and clean copies of the revised Investment Policy—Attachments 3 &4 • List of recommended Broker/Dealers for City Council approval —Attachment 5 ANALYSIS: Pooled Investment Report The Annual Investment Report for the Pooled Investment Fund (Attachment 1) is produced via the City's SymPro investment-tracking software and includes the following separate reports, which together, are intended to address all significant aspects of the City's Investment Program. 2016-08-24 Item 8D 1 of 108 Portfolio Summary Realized Gains and Losses Active Investments by Maturity Date Portfolio Details—Cash Accrued Interest by Security Type Interest Earnings by Security Type Interest Earnings Summary Portfolio Details—Investments Unrealized Gains and Losses @ 6/30/16 Activity Report by Issuer Portfolio Activity by Type Purchases Report As of June 30, 2016, the book value (purchase price of securities as recorded on the City's books) of the Pooled Investment Fund was $109.4 million and the average weighted yield to maturity was 0.927%. Fiscal year-to-date investment revenue (interest payments and capital gains) generated by the Pooled Investment Fund as of June 30, 2016 was $814,481 for an effective rate of return of .83%. FY 2015-16 investment pool revenue increased 39% over FY 2014-15 revenue of $583,973. The following table compares the Pooled Investment Fund statistics for the last four quarters. FY 2015-16 Jun 30,2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Book Value $ 109,364,381 $ 99,837,788 $ 95,673,936 $ 91,038,563 Market Value $ 109,977,566 $ 100,199,530 $ 95,517,379 $ 91,305,660 Unrealized Gain/(Loss) $ 613,185 $ 361,742 $ (156,557) $ 267,097 Unrealized Gain/Loss as%of Book Value 0.5607% 0.3623% -0.1636% 0.2934% Effective Rate of Return 0.83% 0.82% 0.81% 0.79% Average Yield To Maturity 0.9279/ 0.852% 0.8099/ 0.8289/ Average Maturity(Years) 1.48 1.25 1.34 1.63 Investment Earnings Year to Date $ 814,481 $ 581,249 $ 375,728 1 $ 191,632 As stated in Section IV of the City's investment policy, the investment objectives for the City's portfolio in priority order are: 1. safety of principal, 2. liquidity of funds 3. return on investments. In order to achieve those objectives the investment policy also defines (a) maximum allocations of the portfolio by security type, (b) liquidity sufficiency and (c) return on investment benchmarks. The charts below provide graphical information about portfolio investment allocation, liquidity and performance compared to various benchmarks. Portfolio Allocation as of 6/30116 U.S.Treasury Coupon 5ecuritie 26% FederafAgency Coupon Securities Certificate of 45% Deposits-Bank 390 Money Market Funds 0% Corporate Managed Pool Medium Term Accounts Notes Local Agency 1� Investment Funds Cash !)% 22% 3% The largest allocation (45%) in the pooled investment portfolio is to federal agency securities. These securities are issued by Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit and Federal Home Loan Mortgage. This diversity of issuers provides additional security. Although the Federal Agency securities were downgraded by 2016-08-24 Item 8D 2 of 108 Standard & Poors to AA+ in August 2011, they continue to be regarded as among the safest securities in the global market. The next largest allocation (26%) is to U.S. Treasury coupon securities which are issued by the U.S. Government and carry the full faith and credit of the U.S. Government. Treasuries have a credit rating of AAA from Moody's and AA+ from Standard and Poor's. Next at (22%) of the portfolio, is the Local Agency Investment Fund (LAIF), which is a program created by state statute that began in 1977 as an investment alternative for California's local governments and special districts. All securities in LAIF are purchased under the authority of Government Code Sections 16430 and 16480.4. All funds invested in LAIF are essentially available overnight. LAIF has not been assigned a rating by Moody's or Standard and Poor's. Portfolio Allocation Compared to Investment Policy Maximum Allocations Corporate Medium Term Notes Federal Agency Coupon Securities U.S.Treasury Coupon Securities Certificate of Deposits-Bank Money Market Funds Managed Pool Accounts Local Agency Investment Funds 0% 1096 20% 305/6 40% 505/6 60% 705/c ■ Policy Maximum 0 A of 6/30/16 Portfolio Liquidity as of 6/30/2016 45% 40% 35% 30% 25% 1U% 15% 5% 0% 0-6 Months 7-12 Months 13-24 25-36 37-48 49-60 Months Months Months Months The portfolio is currently very liquid with 26% available overnight and a total of 39% available within 180 days. The weighted average maturity of the entire portfolio is less than 1.5 years. Utilizing a laddered maturity investment strategy it is anticipated that as securities mature new investments will be directed to the 49-60 month segment to take advantage of higher rates further out on the yield curve. 2016-08-24 Item 8113 3 of 108 City Portfolio Yield Compared to Treasury Indexes 1.00% 0.809 ' r %% City Portfolio +ter � 0.609'0 l ,♦' %% IYrTreasury 0.40% {Benchmark) ^+ ++—` e ----2 Yr Treasury ap 0.20% ♦ ----6Mth Ireasury ter♦ ��—� —y� 0.00% 'y9` tiR tit` by by Z4) l°Rf In the chart above the performance of the portfolio is compared to the six month, one year and two year treasury yields as of the end of each quarter. The stated performance benchmark for the portfolio is the one year treasury. Actual performance of the portfolio compares favorably with the two year treasury while carrying a weighted average maturity of less than 1.5 years. Investment of Bond Proceeds The Annual Investment Report for the Investment of Bond Proceeds (Attachment 2) is straight- forward and is subject to only very minor changes in activity from year-to-year. Bond proceeds are held by trustee banks and investments are based upon the bond indenture agreement for each bond issue. Rates on available investment vehicles (which are extremely limited by the bond indentures) are yielding near zero at this point. Investment Policy Update Section XVII. requires at least an annual review of the investment policy regardless of whether there are any proposed changes to the policy. The last revisions to the investment policy were made in 2013. Attachment 3 is a redline version of the current investment policy highlighting proposed revisions for the current review of the policy. Revisions to the investment policy are proposed in the following general areas: • Clarification of staff responsibilities assigned in the policy • Addition of California Government Code reference in section VIII • Changes to update terminology • Elimination of language that does reflect current practices After the retirement of the Investment Officer, all responsibilities for the investments of the City have been assumed by the Finance Director/City Treasurer, and references to the Investment Officer have been removed from the policy. The Finance Director/City Treasurer has been authorized to delegate some or all investment duties to other qualified individuals within the organization. The California Government Code reference has been added to section VIII "Delegation of Authority." Section 53607 of the California Government Code describes the City Council's power to delegate the authority to invest, reinvest the City's funds, to sell or exchange securities purchased, and to deposit securities for safekeeping to the City Treasurer. 2016-08-24 Item 8113 4 of 108 Section VIII. "Authorized & Suitable Investment Instruments" has been changed to reflect investment allocation "maximums" rather than "targets." Targets may have been interpreted that the goal for the City's investment policy was to meet the percentage "target" identified for each type of investment. In practice, the percentage identified for each investment type was intended to represent the maximum amount of the portfolio that should be allocated to a given investment type to insure appropriate diversification of the policy. In a number of sections, language has been eliminated that was determined to be either outdated or unnecessary due to changes in legal requirements or current practices in managing the investments of the City. Attachment 4 is a clean copy of the Investment Policy with all revisions included. Authorized Broker/Dealers A list of Broker/Dealers recommended to City Council for authorization to sell investments and related activity with the City is included in Attachment 5. Each Broker/Dealer has submitted a broker/dealer questionnaire and a certification of understanding regarding the City's Investment Policy. Broker/Dealers for the City must meet all of the following minimum qualifications: • Have a net capital position in excess of$10 million • Have been in business for at least 5 years • Are currently licensed as a broker/dealer or investment advisor in California • Must carry adequate insurance coverage including liability, errors and omissions, and worker's compensation (if applicable) Currently the City utilizes one authorized broker/dealer, Wedbush Securities. Wedbush Securities has provided excellent service and competitive pricing for securities purchased. In order to insure a competitive environment for security purchases, five additional broker/dealers are recommended for authorization by City Council. Each broker/dealer recommended meets the minimum requirements and has experience working with other southern California cities. 1. Raymond James & Associates — Rosa Schulte 2. Stifel, Nicolaus and Company— Bill Blackwill 3. Wells Fargo Securities, LLC — John Williams 4. Vining Sparks IBG, L.P. —Josh Gorham 5. Union Bank Investment Services — Mark Kreymer A copy of the broker/dealer questionnaire submitted by each firm is included in Attachment 5. ENVIRONMENTAL CONSIDERATIONS: The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a "project" under Section 15378(b)(5) of CEQA Guidelines. The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment. ATTACHMENTS: 1. Annual Investment Report for the Pooled Investment Fund 2. Annual Investment Report for the Investment of Bond Proceeds 3. City of Encinitas Investment Policy— redlined with proposed changes 4. City of Encinitas Investment Policy—clean copy with proposed changes 5. Authorized Broker/Dealer list with completed questionnaires 2016-08-24 Item 8113 5 of 108 Investments Par Value City of Encinitas - YTD Report Portfolio Management Portfolio Summary June 30, 2016 Market Value Book %of Value Portfolio Attachment 1 CITY OF ENCINITAS 505 S.VULCAN ENCINITAS, ENCINITAS,CA 9 (760)633-2641 YTM Days to Terre Maturity Local Agency Investment Funds 23,889,873.10 23,889,873.10 23,889,873.10 22.53 0.580 1 1 Managed Pool Accounts 1,003,468.65 1,003,468.65 1,003,468.65 0.95 0.510 1 1 Money Market Funds 469.61 469.61 469.61 0.00 0.180 1 1 Certificates of Deposit-Bank 3,968,000.00 4,004,128.64 3,968,000.00 3.74 1.403 1,311 500 U.S.Treasury Coupon Securities 28,000,000.00 28,266,326.95 28,078,900.45 26.48 0.909 1,057 745 Federal Agency Coupon Securities 46,000,000.00 46,562,180.00 46,177,654.52 43.56 1.107 1,203 732 Federal Agency Callable Securities 2,900,000.00 2,905,104.00 2,900,000.00 2.74 0.580 1,279 171 105,761,811.36 106,631,550.95 106,018,366.33 100.00% 0.927 888 540 Investments Cash Passbook/Checking (not included in yield calculations) Total Cash and Investments 3,346,015.09 109,107,826.45 3,346,015.09 109,977,566.04 3,346,015.09 109,364,381.42 0.000 1 1 0.927 888 540 Total Earnings June 30 Period Ending Fiscal Year Ending Current Year 814,480.64 814,480.64 Average Daily Balance 97,478,231.57 Effective Rate of Return 0.83% 1 certify the accuracy of the attached report on the City of Encinitas' Pooled Investment Fund. All funds for which the City has oversight responsibility are reflected in this report. Al investments are in compliance with the City's adopted Investment Policy.,which is available through the City Clerk's office. The City's Investment Program provides sufficient liquidity to meet the next six(6)months expenditure requirements. The source of the market values of investments owned is Union Bank of California Custody Services. Tim Nash, Finance Director\Treasurer Reporting period 07/01/2015-06/30/2016 Data Updated: SET_ANNU: 07/192016 15:09 Run Date:07/19/2016-15 09 No fiscal year history available Portfolio ENCI AC PM(PRF_PM1)73.0 Report Ver 735 2016-08-24 Item 8D 6 of 108 City of Encinitas - YTD Report Portfolio Management Portfolio Details - Investments June 30, 2016 Attachment 1 Pagel Managed Pool Accounts SYS1003 1003 CA Asset Management Program Subtotal and Average 1,001,777.67 1,003,468.65 1,003,468.65 1,003,468.65 1,003,468.65 1,003,468.65 0.510 0.510 AAA 1,003,468.65 0.510 Money Market Funds Average Purchase 140420QG8 1479 Stated YTM Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P Moody's Date Local Agency Investment Funds 0.180 AAA 52168UCU4 Subtotal and Average 284,297.51 469.61 SYS1012 1012 CA LAIF 469.61 23,889,873.10 23,889,873.10 23,889,873.10 0.580 0.580 NR Subtotal and Average 18,036,833.94 23,889,873.10 23,889,873.10 23,889,873.10 0.580 Managed Pool Accounts SYS1003 1003 CA Asset Management Program Subtotal and Average 1,001,777.67 1,003,468.65 1,003,468.65 1,003,468.65 1,003,468.65 1,003,468.65 0.510 0.510 AAA 1,003,468.65 0.510 Money Market Funds of Deposit-Bank 140420QG8 1479 795450PZ2 1437 SYS1004 1004 Union Bank Custody Acct. 469.61 469.61 469.61 0.180 0.180 AAA 52168UCU4 Subtotal and Average 284,297.51 469.61 469.61 469.61 0.180 Certificates of Deposit-Bank 140420QG8 1479 795450PZ2 1437 3616OXY43 1439 20033ADJ2 1455 71270QKU9 1486 52168UCU4 1476 20451PKJ4 1470 628779FH8 1471 23204HBHO 1474 02587DLV8 1438 45083ADZ2 1482 254672CB2 1477 0606247A5 1454 8562843F9 1484 87164YEB6 1478 17284C5K6 1487 Capital One Bank USA,NA 10222014 248,000.00 248,305.04 248,000.00 Sallie Mae Bank/Murray 10242012 248,000.00 248,679.52 248,000.00 GE Capital Bank 10262012 248,000.00 248,644.80 248,000.00 Comenity Capital Bank 11/122013 248,000.00 248,438.96 248,000.00 Peoples United Bank 12/102014 248,000.00 248,419.12 248,000.00 Leader Bank 10232014 248,000.00 248,677.04 248,000.00 Compass Bank 06/112014 248,000.00 248,798.56 248,000.00 NBT Bank 06/062014 248,000.00 248,907.68 248,000.00 Customers Bank 06/182014 248,000.00 248,798.56 248,000.00 American Express Centurion 10252012 248,000.00 250,098.08 248,000.00 Iberia Bank/LA 12/042014 248,000.00 249,150.72 248,000.00 Discovery Bank 10222014 248,000.00 251,233.92 248,000.00 Bank of Baroda 11/122013 248,000.00 253,031.92 248,000.00 State Bank of India 12/052014 248,000.00 252,791.36 248,000.00 Synchrony Bank 10/172014 248,000.00 255,018.40 248,000.00 CIT Bank 12/102014 248,000.00 255,134.96 248,000.00 Subtotal and Average 4,759,431.69 3,968,000.00 4,004,128.64 3,968,000.00 U.S.Treasury Coupon Securities 912828QX1 1459 912828RF9 1489 912828F47 1488 912828VVA4 1481 912828TG5 1511 1.000 1.000 NR NR 10/24/2016 1.350 1.350 NR NR 10/24/2016 1.350 1.350 NR NR 10/26/2016 1.000 1.000 NR NR 11/14/2016 1.000 1.000 NR NR 12/12/2016 1.050 1.050 NR NR 04/21/2017 1.050 1.050 NR NR 05/11/2017 0.950 0.950 NR NR 06/06/2017 0.950 0.950 NR NR 06/19/2017 1.500 1.500 NR NR 10/25/2017 1.200 1.200 NR NR 12/04/2017 1.800 1.800 NR NR 10/22/2018 2.050 2.050 NR NR 11/13/2018 2.000 2.000 NR NR 12/05/2018 2.000 2.000 NR NR 10/17/2019 2.200 2.200 NR NR 12/10/2019 1.403 U.S. Treasury Notes 12232013 2,000,000.00 2,002,160.00 2,001,579.75 1.500 0.531 AA+ Aaa 07/31/2016 U.S. Treasury Notes 12/112014 2,000,000.00 2,002,320.00 2,001,833.52 1.000 0.447 AA+ Aaa 08/31/2016 U.S. Treasury Notes 12/112014 2,000,000.00 2,000,740.00 1,999,989.21 0.500 0.502 AA+ Aaa 09/30/2016 U.S. Treasury Notes 11/042014 2,000,000.00 2,001,560.00 2,000,675.55 0.625 0.508 AA+ Aaa 10/15/2016 U.S. Treasury Notes 01272016 2,000,000.00 1,999,380.00 1,993,727.31 0.500 0.792 Aaa 07/31/2017 Data Updated:SET_ANNU:07/19/2016 15 09 Run Date.07/19/2016-15.09 Portfolio ENCI AC Pal(PRF_PM2)7 3 0 Report Ver 735 2016-08-24 Item 8D 7 of 108 City of Encinitas - YTD Report Portfolio Management Portfolio Details - Investments June 30, 2016 Attachment 1 Page 2 CUSIP Investment# Average Issuer Balance Purchase Date Par Value Market Value Book Value Stated Rate YTM S&P Moody's Maturity Date U.S.Treasury Coupon Securities 912828UE8 1490 U.S.Treasury Notes 12/172014 2,000,000.00 2,005,240.00 1,991,977.48 0.750 1.022 AA+ Aaa 12/31/2017 912828VK3 1491 U.S.Treasury Notes 02202015 2,000,000.00 2,030,400.00 2,008,779.89 1.375 1.150 AA+ Aaa 06/30/2018 912828XK1 1509 U.S.Treasury Notes 01272016 2,000,000.00 2,011,356.92 1,996,702.21 0.875 0.971 Aaa 07/15/2018 912828TH3 1510 U.S.Treasury Notes 01272016 2,000,000.00 2,008,200.00 1,980,720.33 0.875 1.195 Aaa 07/31/2019 912828TNO 1515 U.S.Treasury Notes 06/012016 2,000,000.00 2,020,454.35 2,002,465.29 1.000 1.042 Aaa 08/31/2019 912828TV2 1516 U.S.Treasury Notes 06/012016 2,000,000.00 2,033,653.91 2,013,839.47 1.250 1.071 Aaa 10/31/2019 912828J50 1517 U.S.Treasury Notes 06/012016 2,000,000.00 2,044,689.73 2,022,232.08 1.375 1.161 Aaa 02/29/2020 912828J84 1518 U.S.Treasury Notes 06/012016 2,000,000.00 2,042,478.47 2,019,489.71 1.375 1.172 Aaa 03/31/2020 912828XM7 1514 U.S.Treasury Notes 04/192016 2,000,000.00 2,063,693.57 2,044,888.65 1.625 1.149 NR Aaa 07/31/2020 Subtotal and Average 20,552,293.44 28,000,000.00 28,266,326.95 28,078,900.45 0.909 Federal Agency Coupon Securities 3135GOES8 1453 Federal Nat'l Mortgage Assoc. 06262013 2,000,000.00 2,006,900.00 2,002,726.17 1.375 1.002 AAA Aaa 11/15/2016 3137EADT3 1467 Federal Home Loan Mortgage 03/102014 2,000,000.00 2,004,780.00 2,001,352.94 0.875 0.768 AAA Aaa 02/22/2017 3137EADCO 1466 Federal Home Loan Mortgage 03/102014 2,000,000.00 2,006,560.00 2,002,868.68 1.000 0.788 AAA Aaa 03/08/2017 3135GOJA2 1473 Federal Nat'l Mortgage Assoc. 06/092014 1,000,000.00 1,004,430.00 1,002,513.43 1.125 0.815 AAA Aaa 04/27/2017 3137EADF3 1468 Federal Home Loan Mortgage 03/102014 2,000,000.00 2,011,500.00 2,006,672.07 1.250 0.858 AAA Aaa 05/12/2017 3133EEX62 1502 Federal Farm Credit 06242015 1,000,000.00 1,001,650.00 1,000,176.86 0.800 0.781 AA+ Aaa 06/16/2017 3133EDSU7 1508 Federal Farm Credit 06262015 1,000,000.00 1,003,930.00 1,001,885.51 1.000 0.830 AA+ Aaa 08/15/2017 3136GOYE5 1494 Federal Nat'l Mortgage Assoc. 05272015 1,000,000.00 1,005,670.00 1,002,519.48 1.000 0.780 AA+ Aaa 08/28/2017 3136GOZH7 1480 Federal Nat'l Mortgage Assoc. 11/042014 2,000,000.00 2,009,820.00 2,000,332.22 1.050 1.036 AAA Aaa 09/05/2017 313OA4TR3 1495 Federal Home Loan Bank 05272015 2,000,000.00 2,007,100.00 2,001,402.04 0.875 0.820 AA+ Aaa 10/16/2017 3135GOTG8 1504 Federal Nat'l Mortgage Assoc. 06262015 2,000,000.00 2,010,200.00 1,996,366.49 0.875 0.990 AA+ Aaa 02/08/2018 3137EADP1 1492 Federal Home Loan Mortgage 03202015 2,000,000.00 2,003,680.00 1,995,195.16 0.875 1.020 AA+ Aaa 03/07/2018 3133EEM98 1496 Federal Farm Credit 05272015 2,000,000.00 2,011,880.00 1,998,885.66 1.000 1.030 AA+ Aaa 05/21/2018 3135GOE33 1501 Federal Nat'l Mortgage Assoc. 06242015 2,000,000.00 2,017,600.00 1,998,594.16 1.125 1.160 AA+ Aaa 07/20/2018 313OA5E54 1497 Federal Home Loan Bank 05272015 2,000,000.00 2,015,320.00 2,000,000.00 1.100 1.100 AA+ Aaa 08/13/2018 3135GOYM9 1503 Federal Nat'l Mortgage Assoc. 06262015 2,000,000.00 2,051,100.00 2,027,903.23 1.875 1.230 AA+ Aaa 09/18/2018 313OA53ZO 1493 Federal Home Loan Bank 04242015 2,000,000.00 2,015,540.00 1,999,094.65 1.050 1.070 AA+ Aaa 10/23/2018 3135GOYT4 1505 Federal Nat'l Mortgage Assoc. 06262015 2,000,000.00 2,042,580.00 2,016,657.31 1.625 1.270 AA+ Aaa 11/27/2018 3135GOZA4 1500 Federal Nat'l Mortgage Assoc. 06242015 2,000,000.00 2,055,340.00 2,025,492.91 1.875 1.377 AA+ Aaa 02/19/2019 3133782M2 1498 Federal Home Loan Bank 05272015 2,000,000.00 2,036,320.00 2,009,392.90 1.500 1.320 AA+ Aaa 03/08/2019 313379EE5 1499 Federal Home Loan Bank 05272015 2,000,000.00 2,045,260.00 2,012,869.81 1.625 1.400 AA+ Aaa 06/14/2019 3135GOZG1 1506 Federal Nat'l Mortgage Assoc. 06262015 2,000,000.00 2,055,380.00 2,009,535.99 1.750 1.595 AA+ Aaa 09/12/2019 3135GOZY2 1507 Federal Nat'l Mortgage Assoc. 06262015 2,000,000.00 2,056,260.00 2,006,856.92 1.750 1.645 AA+ Aaa 11/26/2019 3137EADR7 1512 Federal Home Loan Mortgage 04/192016 2,000,000.00 2,030,160.00 2,017,972.31 1.375 1.134 AA+ Aaa 05/01/2020 Data Updated:SET_ANNU:07/19/2016 15 09 Run Date.07/19/2016-15.09 Portfolio ENCI AC Pal(PRF_PM2)7 3 0 2016-08-24 Item 8D 8 of 108 City of Encinitas - YTD Report Portfolio Management Portfolio Details - Investments June 30, 2016 Attachment 1 Page 3 Federal Agency Average Purchase 313383FB2 Stated YTM Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P Moody's Date Federal Agency Coupon Securities 313383HU8 1513 Federal Home Loan Bank 04/19/2016 2,000,000.00 2,053,220.00 2,040,387.62 1.750 1.224 AA+ Aaa 06/12/2020 Subtotal and Average 48,767,594.75 46,000,000.00 46,562,180.00 46,177,654.52 1.107 Federal Agency Callable Securities 313383FB2 1451 Federal Home Loan Bank 06/19/2013 2,900,000.00 2,905,104.00 2,900,000.00 0.580 0.580 AAA Aaa 12/19/2016 Subtotal and Average 3,878,142.08 2,900,000.00 2,905,104.00 2,900,000.00 0.580 Corporate Medium Term Notes Subtotal and Average 112,001.98 Total and Average 97,478,231.57 105,761,811.36 106,631,550.95 106,018,366.33 Data Updated:SET_ANNU:07/19/2016 15 09 Run Date.07/19/2016-15.09 0.927 Portfolio ENCI AC Pal(PRF_PM2)7 3 0 2016-08-24 Item 8D 9 of 108 City of Encinitas - YTD Report Portfolio Management Portfolio Details - Cash June 30, 2016 Attachment 1 Page 4 Data Updated:SET_ANNU:07/19/2016 15 09 Run Date.07/19/2016-15.09 Portfolio ENCI AC Pal(PRF_PM2)7 3 0 2016-08-24 Item 8D 10 of 108 Average Purchase Stated YTM CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate S&P Moody's Passbook/Checking Accounts SYS1010 1010 Union Bank Checking Acct. 3,346,015.09 3,346,015.09 3,346,015.09 0.000 Average Balance 0.00 Total Cash and Investments 97,478,231.57 109,107,826.45 109,977,566.04 109,364,381.42 0.927 Data Updated:SET_ANNU:07/19/2016 15 09 Run Date.07/19/2016-15.09 Portfolio ENCI AC Pal(PRF_PM2)7 3 0 2016-08-24 Item 8D 10 of 108 Attachment 1 City of Encinitas - YTD Report Portfolio Management Activity By Type July 1, 2015 through June 30, 2016 Page 1 Local Agency Investment Funds (Monthly Summary) Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Passbook/Checking Accounts (Monthly Summary) 1450 Subtotal SYS1010 1010 Union Bank Checking Acct. 31,424,213.85 29,841,082.37 Subtotal 31,424,213.85 29,841,082.37 0.00 Local Agency Investment Funds (Monthly Summary) of Deposit-Bank 02005QV34 1449 SYS1012 1012 CA LAIF 0.580 52,868,513.54 47,550,000.00 1450 Subtotal 52,868,513.54 47,550,000.00 23,889,873.10 Managed Pool Accounts (Monthly Summary) 1456 912828XM7 1514 SYS1003 1003 CA Asset Management Program 0.510 2,699.58 0.00 1516 Subtotal 2,699.58 0.00 1,003,468.65 Money Market Funds (Monthly Summary) Wax Bank 0.650 11/16/2015 SYS1004 1004 Union Bank Custody Acct. 0.180 44,578,190.34 44,599,375.01 Subtotal 44,578,190.34 44,599,375.01 469.61 Certificates of Deposit-Bank 02005QV34 1449 03784JDM3 1483 05568P3A3 1450 33767AGC9 1485 38143AP25 1435 92937CBM9 1456 U.S.Treasury Coupon Securities 912828QFO 1461 912828QJ2 1462 912828VG2 1464 912828XK1 1509 912828TH3 1510 912828TG5 1511 912828XM7 1514 912828TNO 1515 912828TV2 1516 912828J50 1517 912828J84 1518 Ally Bank 0.650 04/11/2016 0.00 248,000.00 Apple Bank for Savings 0.400 12/31/2015 0.00 248,000.00 BMW Bank North America 0.650 10/13/2015 0.00 248,000.00 First Bank Puerto Rico 0.800 06/06/2016 0.00 248,000.00 Goldman Sachs Bank,USA 1.050 10/26/2015 0.00 248,000.00 Wax Bank 0.650 11/16/2015 0.00 248,000.00 Subtotal 0.00 1,488,000.00 U.S.Treasury Notes 2.000 04/30/2016 0.00 2,000,000.00 U.S.Treasury Notes 2.125 02/29/2016 0.00 2,000,000.00 U.S.Treasury Notes 0.500 06/15/2016 0.00 2,000,000.00 U.S.Treasury Notes 0.875 01/27/2016 1,995,312.85 0.00 U.S.Treasury Notes 0.875 01/27/2016 1,978,046.88 0.00 U.S.Treasury Notes 0.500 01/27/2016 1,991,250.00 0.00 U.S.Treasury Notes 1.625 04/19/2016 2,039,687.50 0.00 U.S.Treasury Notes 1.000 06/01/2016 1,997,343.75 0.00 U.S.Treasury Notes 1.250 06/01/2016 2,011,953.13 0.00 U.S.Treasury Notes 1.375 06/01/2016 2,015,625.00 0.00 U.S.Treasury Notes 1.375 06/01/2016 2,015,156.25 0.00 Data Updated:SET_ANNU:07/19/2016 15 09 Run Date.07/19/2016-15.09 3,968,000.00 Portfolio ENCI AC PM(PRF_PM3)7 3.0 Report Ver 735 2016-08-24 Item 8D 11 of 108 Attachment 1 City of Encinitas - YTD Report Portfolio Management Activity By Type July 1, 2015 through June 30, 2016 Stated Transaction Purchases Redemptions CUSIP Investment# Issuer Rate Date or Deposits or Withdrawals Balance Subtotal 16,044,375.36 6,000,000.00 28,078,900.45 Page 2 Federal Agency Coupon Securities 3133ECGT5 1447 Federal Farm Credit 0.410 03/01/2016 0.00 2,000,000.00 313371 NVV2 1429 Federal Home Loan Bank 1.375 12/11/2015 0.00 2,000,000.00 313370JB5 1442 Federal Home Loan Bank 1.750 09/11/2015 0.00 2,000,000.00 313383HU8 1513 Federal Home Loan Bank 1.750 04/19/2016 2,042,434.00 0.00 3134A4ZT4 1440 Federal Home Loan Mortgage 4.750 01/19/2016 0.00 2,000,000.00 3137EADQ9 1446 Federal Home Loan Mortgage 0.500 05/13/2016 0.00 2,000,000.00 3134G3ZA1 1448 Federal Home Loan Mortgage 0.500 08/28/2015 0.00 2,000,000.00 3137EADR7 1512 Federal Home Loan Mortgage 1.375 04/19/2016 2,018,910.00 0.00 3135GOLN1 1444 Federal Nat'l Mortgage Assoc. 0.500 07/02/2015 0.00 2,000,000.00 Subtotal 4,061,344.00 14,000,000.00 46,177,654.52 Federal Agency Callable Securities 3134G56W0 1472 Federal Home Loan Mortgage 0.650 06/23/2016 0.00 1,000,000.00 Subtotal 0.00 1,000,000.00 2,900,000.00 Corporate Medium Term Notes 36962G4N1 1421 General Electric Capital Corp 1.000 08/11/2015 0.00 1,000,000.00 Subtotal 0.00 1,000,000.00 0.00 Total 148,979,336.67 145,478,457.38 106,018,366.33 Data Updated:SET_ANNU:07/19/2016 15 09 Run Date.07/19/2016-15.09 Portfolio ENCI AC PM(PRF_PM3)7 3.0 2016-08-24 Item 8D 12 of 108 Attachment 1 City of Encinitas - YTD Report Portfolio Management Page 1 Interest Earnings Summary June 30, 2016 June 30 Month Ending Fiscal Year To Date CD/Coupon/Discount Investments: Interest Collected 1,009,822.33 1,009,822.33 Plus Accrued Interest at End of Period 227,241.94 227,241.94 Less Accrued Interest at Beginning of Period ( 238,468.28) ( 238,468.28) Less Accrued Interest at Purchase During Period ( 65,098.58) ( 65,098.58) Interest Earned during Period 933,497.41 933,497.41 Adjusted by Premiums and Discounts -203,958.40 -203,958.40 Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 729,539.01 729,539.01 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 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 Cash/Checking Accounts: Interest Collected 71,431.06 71,431.06 Plus Accrued Interest at End of Period 35,600.70 35,600.70 Less Accrued Interest at Beginning of Period ( 22,090.13) ( 22,090.13) Interest Earned during Period 84,941.63 84,941.63 Total Interest Earned during Period 1,018,439.04 1,018,439.04 Total Adjustments from Premiums and Discounts -203,958.40 -203,958.40 Total Capital Gains or Losses 0.00 0.00 Total Earnings during Period Data Updated:SET_ANNU:07/19/201615:09 Run Date.07/19/2016-15.09 2016-08-24 814,480.64 No fiscal year history available Item 8D 814,480.64 Portfolio ENCI AC PM(PRF_PM6)7 3.0 Report Ver.73 5 13 of 108 Bank of Baroda Program Attachment 1 Certificates of Deposit-Bank City f Encinitas - YTD Report 248,000.00 2.050 253,031.92 06/302016 2.050 11/132018 865 Amort CITY ENCINITAS _ y p 253,031.92 2.050 865 and Average Subtotal 5005 5 S.VULCAN 1,003,468.65 Investments by Issuer 0.510 1 Capital One ENCINITAS, ENCINITAS,CA 9 140420QG8 (760)633-2641 Certificates of Deposit-Bank Active Investments 248,000.00 1.000 248,305.04 06/302016 1.000 10242016 115 Sorted by Fund and Average 248,000.00 248,305.04 1.000 115 June 30, 2016 Investment Current Market YTM Redemption Days To Call CUSIP Investment# SecuritV Type Class Book Value Rate Market Value Date 365 Date Maturity Date Collateral American Express Centurion 02587DLV8 1438 Certificates of Deposit-Bank Fair 248,000.00 1.500 250,098.08 06/302016 1.500 10252017 481 Subtotal and Average 248,000.00 250,098.08 1.500 481 Bank of Baroda Program 0606247A5 1454 Certificates of Deposit-Bank Amort 248,000.00 2.050 253,031.92 06/302016 2.050 11/132018 865 Amort Subtotal and Average 248,000.00 253,031.92 2.050 865 CA Asset Management Program 20033ADJ2 SYS1003 1003 Managed Pool Accounts Amort 1,003,468.65 0.510 1,003,468.65 06/302016 0.510 1 Subtotal and Average Subtotal and Average 1,003,468.65 1,003,468.65 0.510 1 Capital One Bank USA, NA 140420QG8 1479 Certificates of Deposit-Bank Amort 248,000.00 1.000 248,305.04 06/302016 1.000 10242016 115 Subtotal and Average 248,000.00 248,305.04 1.000 115 CIT Bank 17284C5K6 1487 Certificates of Deposit-Bank Amort 248,000.00 2.200 Subtotal and Average 248,000.00 255,134.96 06/302016 2.200 12/102019 1,257 255,134.96 2.200 1,257 Comenity Capital Bank 20033ADJ2 1455 Certificates of Deposit-Bank Amort 248,000.00 1.000 248,438.96 06/302016 1.000 11/142016 136 Subtotal and Average 248,000.00 248,438.96 1.000 136 Compass Bank 20451PKJ4 1470 Customers Bank 23204HBHO 1474 Certificates of Deposit-Bank Amort Subtotal and Average Certificates of Deposit-Bank Amort Subtotal and Average Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 2016-08-24 248,000.00 1.050 248,000.00 248,000.00 0.950 248,000.00 No fiscal year history available Item 8D 248,798.56 06/302016 1.050 05/112017 314 248,798.56 1.050 314 248,798.56 06/302016 0.950 06/192017 353 248,798.56 0.950 353 Portfolio ENCI AC DI(PRF_DI)7.1.1 Report Ver 7 3 S 14 of 108 Attachment 1 City of Encinitas-YTD Report Investments by Issuer Sorted by Fund Page 2 Federal Farm Credit Investment Current Market YTM Redemption Days To Call CUSIP Investment# Security Type Class Book Value Rate Market Value Date 365 Date Maturity Date Collateral Discovery Bank 1,998,885.66 1.000 2,011,880.00 06/302016 1.030 05212018 689 3133EEX62 254672CB2 1477 Certificates of Deposit-Bank Amort 248,000.00 1.800 251,233.92 06/30/2016 1.800 10/22/2018 843 0.781 Subtotal and Average 248,000.00 3133EDSU7 251,233.92 Federal Agency 1.800 Securities 843 Federal Farm Credit Loan Mortgage 3133EEM98 1496 Federal Agency Coupon Securities Fair 1,998,885.66 1.000 2,011,880.00 06/302016 1.030 05212018 689 3133EEX62 1502 Federal Agency Coupon Securities Fair 1,000,176.86 0.800 1,001,650.00 06/302016 0.781 06/162017 350 3133EDSU7 1508 Federal Agency Coupon Securities Fair 1,001,885.51 1.000 1,003,930.00 06/302016 0.830 08/152017 410 3137EADP1 1492 Federal Agency Subtotal and Average 4,000,948.03 1,995,195.16 4,017,460.00 2,003,680.00 0.918 1.020 534 Federal Home Loan Bank 1512 Federal Agency Coupon Securities Fair 2,017,972.31 1.375 2,030,160.00 06/302016 1.134 05/012020 313OA53ZO 1493 Federal Agency Coupon Securities Fair 1,999,094.65 1.050 2,015,540.00 06/302016 1.070 10232018 844 313OA4TR3 1495 Federal Agency Coupon Securities Fair 2,001,402.04 0.875 2,007,100.00 06/302016 0.820 10/162017 472 313OA5E54 1497 Federal Agency Coupon Securities Fair 2,000,000.00 1.100 2,015,320.00 06/302016 1.100 08/132018 773 3133782M2 1498 Federal Agency Coupon Securities Fair 2,009,392.90 1.500 2,036,320.00 06/302016 1.320 03/082019 980 313379EE5 1499 Federal Agency Coupon Securities Fair 2,012,869.81 1.625 2,045,260.00 06/302016 1.400 06/142019 1,078 313383HU8 1513 Federal Agency Coupon Securities Fair 2,040,387.62 1.750 2,053,220.00 06/302016 1.224 06/122020 1,442 313383FB2 1451 Federal Agency Callable Securities Fair 2,900,000.00 0.580 2,905,104.00 06/302016 0.580 12/192016 171 Subtotal and Average 14,963,147.02 15,077,864.00 1.045 785 Federal Home Loan Mortgage 3137EADCO 1466 Federal Agency Coupon Securities Fair 2,002,868.68 1.000 2,006,560.00 06/302016 0.788 03/082017 250 3137EADT3 1467 Federal Agency Coupon Securities Fair 2,001,352.94 0.875 2,004,780.00 06/302016 0.768 02222017 236 3137EADF3 1468 Federal Agency Coupon Securities Fair 2,006,672.07 1.250 2,011,500.00 06/302016 0.858 05/122017 315 3137EADP1 1492 Federal Agency Coupon Securities Fair 1,995,195.16 0.875 2,003,680.00 06/302016 1.020 03/072018 614 3137EADR7 1512 Federal Agency Coupon Securities Fair 2,017,972.31 1.375 2,030,160.00 06/302016 1.134 05/012020 1,400 3135GOE33 1501 Federal Agency Subtotal and Average 10,024,061.16 1,998,594.16 10,056,680.00 2,017,600.00 0.914 1.160 564 Federal Nat'l Mortgage Assoc. 3135GOES8 1453 Federal Agency Coupon Securities Fair 2,002,726.17 1.375 2,006,900.00 06/302016 1.002 11/152016 137 3135GOJA2 1473 Federal Agency Coupon Securities Fair 1,002,513.43 1.125 1,004,430.00 06/302016 0.815 04272017 300 3136GOZH7 1480 Federal Agency Coupon Securities Fair 2,000,332.22 1.050 2,009,820.00 06/302016 1.036 09/052017 431 3136GOYE5 1494 Federal Agency Coupon Securities Fair 1,002,519.48 1.000 1,005,670.00 06/302016 0.780 08282017 423 3135GOZA4 1500 Federal Agency Coupon Securities Fair 2,025,492.91 1.875 2,055,340.00 06/302016 1.377 02/192019 963 3135GOE33 1501 Federal Agency Coupon Securities Fair 1,998,594.16 1.125 2,017,600.00 06/302016 1.160 07202018 749 3135GOYM9 1503 Federal Agency Coupon Securities Fair 2,027,903.23 1.875 2,051,100.00 06/302016 1.230 09/182018 809 3135GOTG8 1504 Federal Agency Coupon Securities Fair 1,996,366.49 0.875 2,010,200.00 06/302016 0.990 02/082018 587 Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 No fiscal year history available Portfolio ENCI AC DI(PRF_DI)7.1.1 Report Ver 7 3 S 2016-08-24 Item 8D 15 of 108 Attachment 1 GE Capital Bank City of Encinitas-YTD Report Certificates of Deposit-Bank Fair 248,000.00 1.350 248,644.80 06/302016 1.350 10262016 117 248,000.00 1.200 Subtotal and Average 248,000.00 248,644.80 1.350 117 and Average 248,000.00 Investments by Issuer Page 3 Sorted by Fund Investment Current Market YTM Redemption Days To Call CUSIP Investment# Security TVOe Class Book Value Rate Market Value Date 365 Date Maturity Date Collateral 3135GOYT4 1505 Federal Agency Coupon Securities Fair 2,016,657.31 1.625 2,042,580.00 06/302016 1.270 11272018 879 3135GOZG1 1506 Federal Agency Coupon Securities Fair 2,009,535.99 1.750 2,055,380.00 06/302016 1.595 09/122019 1,168 3135GOZY2 1507 Federal Agency Coupon Securities Fair 2,006,856.92 1.750 2,056,260.00 06/302016 1.645 11262019 1,243 Subtotal and Average 20,089,498.31 20,315,280.00 1.211 733 GE Capital Bank 3616OXY43 1439 Certificates of Deposit-Bank Fair 248,000.00 1.350 248,644.80 06/302016 1.350 10262016 117 248,000.00 1.200 Subtotal and Average 248,000.00 248,644.80 1.350 117 Iberia Bank/LA 45083ADZ2 1482 Certificates of Deposit-Bank Amort 248,000.00 1.200 249,150.72 06/302016 1.200 12/042017 521 Subtotal and Average 248,000.00 249,150.72 1.200 521 State Bank of India 85628431`9 1484 CA LAIF SYS1012 1012 Leader Bank 52168UCU4 1476 Certificates of Deposit-Bank Amort Subtotal and Average Local Agency Investment Funds Amort Subtotal and Average 248,000.00 2.000 248,000.00 23.889.873.10 0.580 23,889,873.10 252,791.36 06/302016 2.000 12/052018 887 252,791.36 2.000 887 23,889,873.10 06/302016 0.580 23,889,873.10 0.580 e Certificates of Deposit-Bank Amon 248,000.00 1.050 248,677.04 06/302016 1.050 04212017 294 Subtotal and Average 248,000.00 248,677.04 1.050 294 N BT Bank 628779FIR8 1471 Certificates of Deposit-Bank Amon 248,000.00 0.950 248,907.68 06/302016 0.950 06/062017 340 Subtotal and Average 248,000.00 248,907.68 0.950 340 Peoples United Bank 71270QKU9 1486 Sallie Mae Bank/Murray 795450PZ2 1437 Certificates of Deposit-Bank Amort Subtotal and Average Certificates of Deposit-Bank Fair Subtotal and Average Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 2016-08-24 248,000.00 1.000 248,000.00 248,000.00 1.350 248,000.00 No fiscal year history available Item 8D 248,419.12 06/302016 1.000 12/122016 164 248,419.12 1.000 164 248,679.52 06/302016 1.350 10242016 115 248,679.52 1.350 115 Portfolio ENCI AC DI(PRF_DI)7.1.1 Report Ver 7 3 S 16 of 108 Attachment 1 City of Encinitas-YTD Report Investments by Issuer Sorted by Fund Page 4 Union Bank Checking Acct. SYS1010 1010 Passbook/Checking Accounts Amort 3,346,015.09 3,346,015.09 06/30/2016 1 Subtotal and Average 3,346,015.09 3,346,015.09 1 Union Bank Custody Acct. SYS1004 1004 Money Market Funds Amort 469.61 0.180 Subtotal and Average 469.61 469.61 06/30/2016 0.180 469.61 0.180 U.S. Treasury Notes Investment Current Market YTM Redemption Days To Call CUSIP Investment# Security TVOe Class Book Value Rate Market Value Date 365 Date Maturity Date Collateral Synchrony Bank Securities Fair 2,001,579.75 1.500 2,002,160.00 06/302016 0.531 07/312016 87164YEB6 1478 Certificates of Deposit-Bank Amort 248,000.00 2.000 255,018.40 06/30/2016 2.000 10/17/2019 1,203 0.625 Subtotal and Average 248,000.00 0.508 255,018.40 106 2.000 1488 1,203 Union Bank Checking Acct. SYS1010 1010 Passbook/Checking Accounts Amort 3,346,015.09 3,346,015.09 06/30/2016 1 Subtotal and Average 3,346,015.09 3,346,015.09 1 Union Bank Custody Acct. SYS1004 1004 Money Market Funds Amort 469.61 0.180 Subtotal and Average 469.61 469.61 06/30/2016 0.180 469.61 0.180 U.S. Treasury Notes 912828QX1 1459 U.S. Treasury Coupon Securities Fair 2,001,579.75 1.500 2,002,160.00 06/302016 0.531 07/312016 30 912828VVA4 1481 U.S. Treasury Coupon Securities Fair 2,000,675.55 0.625 2,001,560.00 06/302016 0.508 10/152016 106 912828F47 1488 U.S. Treasury Coupon Securities Fair 1,999,989.21 0.500 2,000,740.00 06/302016 0.502 09/302016 91 912828RF9 1489 U.S. Treasury Coupon Securities Fair 2,001,833.52 1.000 2,002,320.00 06/302016 0.447 08/312016 61 912828UE8 1490 U.S. Treasury Coupon Securities Fair 1,991,977.48 0.750 2,005,240.00 06/302016 1.022 12/312017 548 912828VK3 1491 U.S. Treasury Coupon Securities Fair 2,008,779.89 1.375 2,030,400.00 06/302016 1.150 06/302018 729 912828XK1 1509 U.S. Treasury Coupon Securities Fair 1,996,702.21 0.875 2,011,356.92 06/302016 0.971 07/152018 744 912828TH3 1510 U.S. Treasury Coupon Securities Fair 1,980,720.33 0.875 2,008,200.00 06/302016 1.195 07/312019 1,125 912828TG5 1511 U.S. Treasury Coupon Securities Fair 1,993,727.31 0.500 1,999,380.00 06/302016 0.792 07/312017 395 912828XM7 1514 U.S. Treasury Coupon Securities Fair 2,044,888.65 1.625 2,063,693.57 06/302016 1.149 07/312020 1,491 912828TNO 1515 U.S. Treasury Coupon Securities Fair 2,002,465.29 1.000 2,020,454.35 06/302016 1.042 08/312019 1,156 912828TV2 1516 U.S. Treasury Coupon Securities Fair 2,013,839.47 1.250 2,033,653.91 06/302016 1.071 10/312019 1,217 912828J50 1517 U.S. Treasury Coupon Securities Fair 2,022,232.08 1.375 2,044,689.73 06/302016 1.161 02292020 1,338 912828J84 1518 U.S. Treasury Coupon Securities Fair 2,019,489.71 1.375 2,042,478.47 06/302016 1.172 03/312020 1,369 Subtotal and Average 28,078,900.45 28,266,326.95 0.909 744 Total and Average Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 109,364,381.42 No fiscal year history available 109,977,566.04 0.898 523 Portfolio ENCI AC DI(PRF_DI)7.1.1 Report Ver 7 3 S 2016-08-24 Item 8D 17 of 108 _ City of Encinitas - YTD Report -- " Activity Report Sorted By Issuer July 1, 2015 - June 30, 2016 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or CUSIP Investment# Issuer of Portfolio Balance Rate Date Deposits Withdrawals Attachment 1 CITY OF ENCINITAS 505 S.VULCAN ENCINITAS, ENCINITAS,CA 9 (760)633-2641 Ending Balance Issuer: Ally Bank Certificates of Deposit-Bank 02005QV34 1449 Ally Bank 0.650 04/12/2016 0.00 248,000.00 Subtotal and Balance 248,000.00 0.00 248,000.00 0.00 Issuer Subtotal 0.000% 248,000.00 0.00 248,000.00 0.00 Issuer: American Express Centurion Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: Apple Bank for Savings Certificates of Deposit-Bank 03784JDM3 1483 Apple Bank for Savings 0.400 12/312015 0.00 248,000.00 Subtotal and Balance 248,000.00 0.00 248,000.00 0.00 Issuer Subtotal 0.000% 248,000.00 0.00 248,000.00 0.00 Issuer: Bank of Baroda Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: BMW Bank North America Certificates of Deposit-Bank 05568P3A3 1450 BMW Bank North America 0.650 10/132015 Subtotal and Balance 248,000.00 Data Updated:SET_ANNU:07/19/2016 15 09 Run Date.07/19/2016-15.09 No fiscal year history available 2016-08-24 Item 8D 0.00 248,000.00 0.00 248,000.00 0.00 Portfolio ENCI AC DA(PRF_DA)7 2.0 Report Ver 7 3 S 18 of 108 Data Updated:SET_ANNU:07/19201 6 15 09 Run Date.07/19/2016-15.09 2016-08-24 No fiscal year history available Item 813 Portfolio ENCI AC DA(PRF_DA)7 2.0 Report Ver 7 3 S 19 of 108 Attachment 1 City of Encinitas-YTD Report Activity Report Page 2 July 1,2015-June 30, 2016 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer Subtotal 0.000% 248,000.00 0.00 248,000.00 0.00 Issuer: CA Asset Management Program Managed Pool Accounts SYS1003 1003 CA Asset Management Program 0.510 2,699.58 0.00 Subtotal and Balance 1,000,769.07 2,699.58 0.00 1,003,468.65 Issuer Subtotal 0.920% 1,000,769.07 2,699.58 0.00 1,003,468.65 Issuer: Capital One Bank USA, NA Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: CIT Bank Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: Comenity,Capital Bank Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: Compass Bank Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: Customers Bank Data Updated:SET_ANNU:07/19201 6 15 09 Run Date.07/19/2016-15.09 2016-08-24 No fiscal year history available Item 813 Portfolio ENCI AC DA(PRF_DA)7 2.0 Report Ver 7 3 S 19 of 108 City of Encinitas-YTD Report Activity Report July 1,2015-June 30, 2016 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or CUSIP Investment# Issuer of Portfolio Balance Rate Date Deposits Withdrawals Issuer: Customers Bank Attachment 1 Page 3 Ending Balance Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: Discovery Bank Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: First Bank Puerto Rico Certificates of Deposit-Bank 33767AGC9 1485 First Bank Puerto Rico 0.800 06/062016 0.00 248,000.00 Subtotal and Balance 248,000.00 0.00 248,000.00 0.00 Issuer Subtotal 0.000% 248,000.00 0.00 248,000.00 0.00 Issuer: Federal Farm Credit Federal Agency Coupon Securities 3133ECGT5 1447 Federal Farm Credit 0.410 03/012016 0.00 2,000,000.00 Subtotal and Balance 6,000,000.00 0.00 2,000,000.00 4,000,000.00 Issuer Subtotal 3.666% 6,000,000.00 0.00 2,000,000.00 4,000,000.00 Issuer: Federal Home Loan Bank Federal Agency Coupon Securities 313371 NVV2 1429 Federal Home Loan Bank 1.375 12/112015 313370JB5 1442 Federal Home Loan Bank 1.750 09/112015 313383HU8 1513 Federal Home Loan Bank 1.750 04/192016 Subtotal and Balance 14,000,000.00 Federal Agency Callable Securities Data Updated:SET_ANNU:07/19201 6 15 09 Run Date.07/19/2016-15.09 No fiscal year history available 2016-08-24 Item 813 0.00 2,000,000.00 0.00 2,000,000.00 2,000,000.00 0.00 2,000,000.00 4,000,000.00 12,000,000.00 Portfolio ENCI AC DA(PRF_DA)7 2.0 Report Ver 7 3 S 20 of 108 City of Encinitas-YTD Report Activity Report July 1,2015-June 30, 2016 Par Value Percent Beginning Current Transaction CUSIP Investment# Issuer of Portfolio Balance Rate Date Attachment 1 Page 4 Ending Balance Subtotal and Balance 2,900,000.00 2,900,000.00 Issuer Subtotal 13.656% 16,900,000.00 2,000,000.00 4,000,000.00 14,900,000.00 Issuer: Federal Home Loan Mortgage Federal Agency Par Value Purchases or Redemptions or Deposits Withdrawals Attachment 1 Page 4 Ending Balance Subtotal and Balance 2,900,000.00 2,900,000.00 Issuer Subtotal 13.656% 16,900,000.00 2,000,000.00 4,000,000.00 14,900,000.00 Issuer: Federal Home Loan Mortgage Federal Agency Coupon Securities 3134A4ZT4 1440 Federal Home Loan Mortgage 4.750 01/19/2016 0.00 2,000,000.00 3137EADQ9 1446 Federal Home Loan Mortgage 0.500 05/13/2016 0.00 2,000,000.00 3134G3ZA1 1448 Federal Home Loan Mortgage 0.500 08/28/2015 0.00 2,000,000.00 3137EADR7 1512 Federal Home Loan Mortgage 1.375 04/19/2016 2,000,000.00 0.00 Subtotal and Balance 14,000,000.00 2,000,000.00 6,000,000.00 10,000,000.00 Federal Agency Callable Securities 3134G56W0 1472 Federal Home Loan Mortgage 0.650 06/23/2016 0.00 1,000,000.00 Subtotal and Balance 1,000,000.00 0.00 1,000,000.00 0.00 Issuer Subtotal 9.165% 15,000,000.00 2,000,000.00 7,000,000.00 10,000,000.00 Issuer: Federal Nat'l Mortgage Assoc. Federal Agency Coupon Securities 3135GOLN1 1444 Federal Nat'l Mortgage Assoc. 0.500 07/022015 0.00 2,000,000.00 Subtotal and Balance 22,000,000.00 0.00 2,000,000.00 20,000,000.00 Issuer Subtotal 18.330% 22,000,000.00 0.00 2,000,000.00 20,000,000.00 Issuer: GE Capital Bank Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: General Electric Capital Corp Corporate Medium Term Notes 36962G4N1 1421 General Electric Capital Corp 1.000 08/112015 Subtotal and Balance 1,000,000.00 Data Updated:SET_ANNU:07/19201 6 15 09 Run Date.07/19/2016-15.09 No fiscal year history available 2016-08-24 Item 813 0.00 1,000,000.00 0.00 1,000,000.00 0.00 Portfolio ENCI AC DA(PRF_DA)7 2.0 Report Ver 7 3 S 21 of 108 Attachment 1 City of Encinitas-YTD Report Activity Report Page 5 July 1,2015-June 30, 2016 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer Subtotal 0.000% 1,000,000.00 0.00 1,000,000.00 0.00 Issuer: Goldman Sachs Bank, USA Certificates of Deposit-Bank 38143AP25 1435 Goldman Sachs Bank,USA 1.050 10/26/2015 0.00 248,000.00 Subtotal and Balance 248,000.00 0.00 248,000.00 0.00 Issuer Subtotal 0.000% 248,000.00 0.00 248,000.00 0.00 Issuer: Iberia Bank ILA Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: State Bank of India Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: CA LAIF Local Agency Investment Funds SYS1012 1012 CA LAIF 0.580 52,868,513.54 47,550,000.00 Subtotal and Balance 18,571,359.56 52,868,513.54 47,550,000.00 23,889,873.10 Issuer Subtotal 21.896% 18,571,359.56 52,868,513.54 47,550,000.00 23,889,873.10 Issuer: Leader Bank Certificates of Deposit-Bank Subtotal and Balance 248,000.00 Issuer Subtotal 0.227% 248,000.00 Data Updated:SET_ANNU:07/19201 6 15 09 Run Date.07/19/2016-15.09 No fiscal year history available 2016-08-24 Item 813 248,000.00 0.00 0.00 248,000.00 Portfolio ENCI AC DA(PRF_DA)7 2.0 Report Ver 7 3 S 22 of 108 Attachment 1 City of Encinitas-YTD Report Activity Report Page 6 July 1,2015-June 30, 2016 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment# Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer: NBT Bank Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: Peoples United Bank Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: Sallie Mae Bank/Murray Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: Synchrony Bank Certificates of Deposit-Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.227% 248,000.00 0.00 0.00 248,000.00 Issuer: Union Bank Checking Acct. Passbook/Checking Accounts SYS1010 1010 Union Bank Checking Acct. 31,424,213.85 29,841,082.37 Subtotal and Balance 1,762,883.61 31,424,213.85 29,841,082.37 3,346,015.09 Issuer Subtotal 3.067% 1,762,883.61 31,424,213.85 29,841,082.37 3,346,015.09 Issuer: Union Bank Custody Acct. Money Market Funds SYS1004 1004 Union Bank Custody Acct. 0.180 44,578,190.34 44,599,375.01 Data Updated:SET_ANNU:07/19201 6 15 09 Run Date.07/19/2016-15.09 No fiscal year history available 2016-08-24 Item 813 Portfolio ENCI AC DA(PRF_DA)7 2.0 Report Ver 7 3 S 23 of 108 City of Encinitas-YTD Report Activity Report July 1,2015-June 30, 2016 Par Value Percent Beginning Current Transaction CUSIP Investment# Issuer of Portfolio Balance Rate Date Attachment 1 Page 7 Ending Balance Subtotal and Balance 21,654.28 44,578,190.34 44,599,375.01 469.61 Issuer Subtotal 0.000% 21,654.28 44,578,190.34 44,599,375.01 469.61 Issuer: U.S.Treasury Notes U.S.Treasury Par Value Purchases or Redemptions or Deposits Withdrawals Attachment 1 Page 7 Ending Balance Subtotal and Balance 21,654.28 44,578,190.34 44,599,375.01 469.61 Issuer Subtotal 0.000% 21,654.28 44,578,190.34 44,599,375.01 469.61 Issuer: U.S.Treasury Notes U.S.Treasury Coupon Securities 912828QFO 1461 U.S. Treasury Notes 2.000 05/022016 0.00 2,000,000.00 912828QJ2 1462 U.S. Treasury Notes 2.125 02292016 0.00 2,000,000.00 912828VG2 1464 U.S. Treasury Notes 0.500 06/152016 0.00 2,000,000.00 912828XK1 1509 U.S. Treasury Notes 0.875 01272016 2,000,000.00 0.00 912828TH3 1510 U.S. Treasury Notes 0.875 01272016 2,000,000.00 0.00 912828TG5 1511 U.S. Treasury Notes 0.500 01272016 2,000,000.00 0.00 912828XM7 1514 U.S. Treasury Notes 1.625 04/192016 2,000,000.00 0.00 912828TNO 1515 U.S. Treasury Notes 1.000 06/012016 2,000,000.00 0.00 912828TV2 1516 U.S. Treasury Notes 1.250 06/012016 2,000,000.00 0.00 912828J50 1517 U.S. Treasury Notes 1.375 06/012016 2,000,000.00 0.00 912828J84 1518 U.S. Treasury Notes 1.375 06/012016 2,000,000.00 0.00 Subtotal and Balance 18,000,000.00 16,000,000.00 6,000,000.00 28,000,000.00 Issuer Subtotal 25.663% 18,000,000.00 16,000,000.00 6,000,000.00 28,000,000.00 Issuer: Wex Bank Certificates of Deposit-Bank 92937CBM9 1456 Wax Bank 0.650 11/162015 0.00 248,000.00 Subtotal and Balance 248,000.00 0.00 248,000.00 0.00 Issuer Subtotal 0.000% 248,000.00 0.00 248,000.00 0.00 Total 100.000% 105,712,666.52 Data Updated:SET_ANNU:07/19201 6 15 09 Run Date.07/19/2016-15.09 No fiscal year history available 2016-08-24 Item 813 148,873,617.31 145,478,457.38 109,107,826.45 Portfolio ENCI AC DA(PRF_DA)7 2.0 Report Ver 7 3 S 24 of 108 CUSIP Investment# Fund Issuer City of Encinitas - YTD Report Interest Earnings Sorted by Security Type - Maturity Date July 1, 2015 - June 30, 2016 Yield on Beginning Book Value Ending Beginning Ending Maturity CurrentAnnualized Par Value Book Value Book Value Date Rate Yield Attachment 1 CITY OF ENCINITAS 505 S.VULCAN ENCINITAS, ENCINITAS,CA 9 (760)633-2641 Adjusted Interest Earnings Interest Amortization/ Adjusted Interest Earned Accretion Earnings Security Type: Local Agency Investment Funds SYS1012 1012 001 LAIF 23,889,873.10 18,571,359.56 23,889,873.10 0.580 0.438 81,635.27 0.00 81,635.27 Subtotal 23,889,873.10 18,571,359.56 23,889,873.10 0.438 81,635.27 0.00 81,635.27 Security Type: Managed Pool Accounts SYS1003 1003 001 CAMP 1,003,468.65 1,000,769.07 1,003,468.65 0.510 0.304 3,048.47 0.00 3,048.47 Subtotal 1,003,468.65 1,000,769.07 1,003,468.65 0.304 3,048.47 0.00 3,048.47 Security Type: Money Market Funds SYS1004 1004 001 UBCUST 469.61 21,654.28 469.61 0.180 1.188 257.89 0.00 257.89 Subtotal 469.61 21,654.28 469.61 1.188 257.89 0.00 257.89 Security Type: Certificates of Deposit-Bank 05568P3A3 1450 001 BMWBNK 0.00 248,000.00 0.0010/13/2015 0.650 0.650 459.30 0.00 459.30 38143AP25 1435 001 GLDSCH 0.00 248,000.00 0.0010/26/2015 1.050 1.050 834.71 0.00 834.71 92937CBM9 1456 001 WEXBNK 0.00 248,000.00 0.0011/16/2015 0.650 0.650 609.47 0.00 609.47 03784JDM3 1483 001 APPLE 0.00 248,000.00 0.0012/31/2015 0.400 0.400 497.35 0.00 497.35 02005QV34 1449 001 ALLYBK 0.00 248,000.00 0.00 04/11/2016 0.650 0.650 1,258.68 0.00 1,258.68 33767AGC9 1485 001 FBPR 0.00 248,000.00 0.00 06/06/2016 0.800 0.800 1,853.54 0.00 1,853.54 795450PZ2 1437 001 SMAEBN 248,000.00 248,000.00 248,000.0010/24 /2016 1.350 1.350 3,357.17 0.00 3,357.17 140420QG8 1479 001 CAPONE 248,000.00 248,000.00 248,000.0010/24 /2016 1.000 1.000 2,486.79 0.00 2,486.79 3616OXY43 1439 001 GECBNK 248,000.00 248,000.00 248,000.0010/26 /2016 1.350 1.350 3,357.17 0.00 3,357.17 20033ADJ2 1455 001 COMNTY 248,000.00 248,000.00 248,000.0011/14 /2016 1.000 1.000 2,486.80 0.00 2,486.80 71270QKU9 1486 001 PEOPLE 248,000.00 248,000.00 248,000.0012/12 /2016 1.000 1.000 2,486.79 0.00 2,486.79 52168UCU4 1476 001 LEADER 248,000.00 248,000.00 248,000.00 04/21/2017 1.050 1.050 2,611.13 0.00 2,611.13 20451PKJ4 1470 001 COMPSS 248,000.00 248,000.00 248,000.0005/11 /2017 1.050 1.050 2,611.14 0.00 2,611.14 628779FH8 1471 001 NBTBNK 248,000.00 248,000.00 248,000.00 06/06/2017 0.950 0.950 2,362.45 0.00 2,362.45 23204HBHO 1474 001 CUSTBN 248,000.00 248,000.00 248,000.00 06/19/2017 0.950 0.950 2,362.46 0.00 2,362.46 02587DLV8 1438 001 AMEXCN 248,000.00 248,000.00 248,000.0010/25 /2017 1.500 1.500 3,730.20 0.00 3,730.20 45083ADZ2 1482 001 IBERIA 248,000.00 248,000.00 248,000.0012/04 /2017 1.200 1.200 2,984.15 0.00 2,984.15 Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 No fiscal year history available Portfolio ENCI AC IE(PRF_IE)7 2.0 Report Ver.7 3 5 2016-08-24 Item 8D 25 of 108 City of Encinitas-YTD Report Interest Earnings July 1,2015-June 30, 2016 Attachment 1 Adjusted Interest Earnings Page 2 Ending Beginning Ending Maturity CurrentAnnualized Interest Amortization/ Adjusted Interest CUSIP Investment# Fund Issuer Par Value Book Value Book Value Date Rate Yield Earned Accretion Earnings Security Type: Certificates of Deposit-Bank 254672CB2 1477 001 0606247A5 1454 001 85628431`9 1484 001 87164YEB6 1478 001 17284C5K6 1487 001 DISCOV 248,000.00 248,000.00 248,000.0010/22 /2018 1.800 1.800 4,476.23 0.00 4,476.23 BARODA 248,000.00 248,000.00 248,000.0011/13 /2018 2.050 2.050 5,097.92 0.00 5,097.92 INDIA 248,000.00 248,000.00 248,000.0012/05 /2018 2.000 2.000 4,973.59 0.00 4,973.59 SYNCHR 248,000.00 248,000.00 248,000.0010/17 /2019 2.000 2.000 4,973.59 0.00 4,973.59 CITBNK 248,000.00 248,000.00 248,000.0012/10 /2019 2.200 2.200 5,470.95 0.00 5,470.95 Subtotal 3,968,000.00 5,456,000.00 3,968,000.00 UST 912828TV2 1.285 61,341.58 0.00 61,341.58 Security Type: U.S. Treasury Coupon Securities 912828QJ2 1462 001 UST 912828QF0 1461 001 UST 912828VG2 1464 001 UST 912828QX1 1459 001 UST 912828RF9 1489 001 UST 9128281`47 1488 001 UST 912828VVA4 1481 001 UST 912828TG5 1511 001 UST 912828UE8 1490 001 UST 912828VK3 1491 001 UST 912828XK1 1509 001 UST 912828TH3 1510 001 UST 912828TN0 1515 001 UST 912828TV2 1516 001 UST 912828J50 1517 001 UST 912828J84 1518 001 UST 912828XM7 1514 001 UST Subtotal Security Type: Federal Agency Coupon Securities 3135GOLN1 1444 001 FNMA 3134G3ZA1 1448 001 FHLMC 313370JB5 1442 001 FHLB 313371NVV2 1429 001 FHLB 3134A4ZT4 1440 001 FHLMC 3133ECGT5 1447 001 FFCRED 3137EADQ9 1446 001 FHLMC 3135GOES8 1453 001 FNMA 3137EADT3 1467 001 FHLMC Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 0.00 2,022,570.04 0.00 02/29/2016 2.125 0.425 28,294.84 -22,570.04 5,724.80 0.00 2,025,031.48 0.00 04/30/2016 2.000 0.488 33,260.87 -25,031.48 8,229.39 0.00 1,999,285.34 0.00 06/15/2016 0.500 0.536 9,562.84 714.66 10,277.50 2,000,000.00 2,020,852.72 2,001,579.75 07/31/2016 1.500 0.530 30,013.66 -19,272.97 10,740.69 2,000,000.00 2,012,834.61 2,001,833.52 08/31/2016 1.000 0.446 20,000.00 -11,001.09 8,998.91 2,000,000.00 1,999,945.83 1,999,989.21 09/30/2016 0.500 0.501 10,000.00 43.38 10,043.38 2,000,000.00 2,003,008.09 2,000,675.5510/15 /2016 0.625 0.506 12,500.00 -2,332.54 10,167.46 2,000,000.00 0.00 1,993,727.31 07/31/2017 0.500 0.795 4,284.52 2,477.31 6,761.83 2,000,000.00 1,986,619.37 1,991,977.4812/31 /2017 0.750 1.022 15,000.00 5,358.11 20,358.11 2,000,000.00 2,013,187.90 2,008,779.89 06/30/2018 1.375 1.144 27,500.00 -4,408.01 23,091.99 2,000,000.00 0.00 1,996,702.21 07/15/2018 0.875 0.975 7,500.00 812.44 8,312.44 2,000,000.00 0.00 1,980,720.33 07/31/2019 0.875 1.203 7,497.91 2,673.45 10,171.36 2,000,000.00 0.00 2,002,465.29 08/31/2019 1.000 1.034 1,630.43 67.19 1,697.62 2,000,000.00 0.00 2,013,839.4710/31 /2019 1.250 1.059 2,038.05 -287.57 1,750.48 2,000,000.00 0.00 2,022,232.08 02/29/2020 1.375 1.146 2,241.85 -342.65 1,899.20 2,000,000.00 0.00 2,019,489.71 03/31/2020 1.375 1.165 2,254.10 -325.01 1,929.09 2,000,000.00 0.00 2,044,888.65 07/31/2020 1.625 1.144 6,517.86 -1,852.42 4,665.44 28,000,000.00 18,083,335.38 28,078,900.45 0.702 220,096.93 -75,277.24 144,819.69 0.00 2,000,007.18 0.00 07/02/2015 0.500 0.376 27.78 -7.18 20.60 0.00 2,000,469.10 0.00 08/28/2015 0.500 0.351 1,583.33 -469.10 1,114.23 0.00 2,005,155.85 0.00 09/11/2015 1.750 0.417 6,805.56 -5,155.85 1,649.71 0.00 2,006,806.43 0.0012/11/2015 1.375 0.604 12,222.22 -6,806.43 5,415.79 0.00 2,047,274.57 0.00 01/19/2016 4.750 0.439 52,250.00 -47,274.57 4,975.43 0.00 1,999,917.95 0.00 03/01/2016 0.410 0.415 5,466.67 82.05 5,548.72 0.00 2,001,358.93 0.00 05/13/2016 0.500 0.420 8,666.66 -1,358.93 7,307.73 2,000,000.00 2,010,050.21 2,002,726.1711/15 /2016 1.375 1.001 27,500.00 -7,324.04 20,175.96 2,000,000.00 2,003,461.41 2,001,352.94 02/22/2017 0.875 0.766 17,500.00 -2,108.47 15,391.53 No fiscal year history available Portfolio ENCI AC IE(PRF_IE)7 2.0 Report Ver.7 3 5 2016-08-24 Item 8D 26 of 108 Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 No fiscal year history available Portfolio ENCI AC IE(PRF_IE)7 2.0 Report Ver.7 3 5 2016-08-24 Item 8D 27 of 108 Attachment 1 City of Encinitas -YTD Report Interest Earnings Page 3 July 1,2015-June 30, 2016 Adjusted Interest Earnings Ending Beginning Ending Maturity CurrentAnnualized Interest Amortization/ Adjusted Interest CUSIP Investment# Fund Issuer Par Value Book Value Book Value Date Rate Yield Earned Accretion Earnings Security Type: Federal Agency Coupon Securities 3137EADCO 1466 001 FHLMC 2,000,000.00 2,007,049.76 2,002,868.68 03/08/2017 1.000 0.786 20,000.00 -4,181.08 15,818.92 3135GOJA2 1473 001 FNMA 1,000,000.00 1,005,570.31 1,002,513.43 04/27/2017 1.125 0.813 11,250.00 -3,056.88 8,193.12 3137EADF3 1468 001 FHLMC 2,000,000.00 2,014,395.36 2,006,672.07 05/12/2017 1.250 0.855 25,000.00 -7,723.29 17,276.71 3133EEX62 1502 001 FFCRED 1,000,000.00 1,000,539.19 1,000,176.86 06/16/2017 0.800 0.779 8,000.00 -184.55 7,815.45 3133EDSU7 1508 001 FFCRED 1,000,000.00 1,007,204.55 1,001,885.51 08/15/2017 1.000 0.824 10,000.00 -1,680.15 8,319.85 3136GOYE5 1494 001 FNMA 1,000,000.00 1,007,166.79 1,002,519.48 08/28/2017 1.000 0.775 10,000.00 -2,175.09 7,824.91 3136GOZH7 1480 001 FNMA 2,000,000.00 2,000,614.30 2,000,332.22 09/05/2017 1.050 1.033 21,000.00 -282.08 20,717.92 313OA4TR3 1495 001 FHLB 2,000,000.00 2,004,480.55 2,001,402.0410/16/2017 0.875 0.817 17,500.00 -1,085.45 16,414.55 3135GOTG8 1504 001 FNMA 2,000,000.00 2,000,807.82 1,996,366.49 02/08/2018 0.875 0.985 17,500.00 2,267.00 19,767.00 3137EADP1 1492 001 FHLMC 2,000,000.00 1,992,972.75 1,995,195.16 03/07/2018 0.875 1.019 17,500.00 2,854.35 20,354.35 3133EEM98 1496 001 FFCRED 2,000,000.00 1,998,629.05 1,998,885.66 05/21/2018 1.000 1.027 20,000.00 589.94 20,589.94 3135GOE33 1501 001 FNMA 2,000,000.00 1,998,909.32 1,998,594.16 07/20/2018 1.125 1.157 22,500.00 684.84 23,184.84 313OA5E54 1497 001 FHLB 2,000,000.00 2,000,855.56 2,000,000.00 08/13/2018 1.100 1.097 22,000.00 0.00 22,000.00 3135GOYM9 1503 001 FNMA 2,000,000.00 2,050,715.28 2,027,903.23 09/18/2018 1.875 1.211 37,500.00 -12,603.72 24,896.28 313OA53ZO 1493 001 FHLB 2,000,000.00 1,998,761.24 1,999,094.6510/23/2018 1.050 1.067 21,000.00 391.74 21,391.74 3135GOYT4 1505 001 FNMA 2,000,000.00 2,026,199.89 2,016,657.31 11/27/2018 1.625 1.259 32,500.00 -6,924.52 25,575.48 3135GOZA4 1500 001 FNMA 2,000,000.00 2,048,194.59 2,025,492.91 02/19/2019 1.875 1.355 37,500.00 -9,680.85 27,819.15 3133782M2 1498 001 FHLB 2,000,000.00 2,019,473.07 2,009,392.90 03/08/2019 1.500 1.309 30,000.00 -3,496.84 26,503.16 313379EE5 1499 001 FHLB 2,000,000.00 2,017,228.36 2,012,869.81 06/14/2019 1.625 1.391 32,500.00 -4,358.55 28,141.45 3135GOZG1 1506 001 FNMA 2,000,000.00 2,022,629.69 2,009,535.99 09/12/2019 1.750 1.579 35,000.00 -2,982.59 32,017.41 3135GOZY2 1507 001 FNMA 2,000,000.00 2,011,788.68 2,006,856.9211/26/2019 1.750 1.635 35,000.00 -2,015.09 32,984.91 3137EADR7 1512 001 FHLMC 2,000,000.00 0.00 2,017,972.31 05/01/2020 1.375 1.130 5,500.00 -937.69 4,562.31 313383HU8 1513 001 FHLB 2,000,000.00 0.00 2,040,387.62 06/12/2020 1.750 1.213 7,000.00 -2,046.38 4,953.62 Subtotal 46,000,000.00 56,308,687.74 46,177,654.52 1.018 627,772.22 -129,049.45 498,722.77 Security Type: Federal Agency Callable Securities 313383FB2 1451 001 FHLB 2,900,000.00 2,900,000.00 2,900,000.0012/19/2016 0.580 0.578 16,820.00 0.00 16,820.00 3134G56W0 1472 001 FHLMC 0.00 1,000,000.00 0.0012/23/2016 0.650 0.648 6,355.56 0.00 6,355.56 Subtotal 2,900,000.00 3,900,000.00 2,900,000.00 0.596 23,175.56 0.00 23,175.56 Security Type: Corporate Medium Term Notes 36962G4N1 1421 001 GECC 0.00 999,631.71 0.00 08/11/2015 1.000 1.318 1,111.12 368.29 1,479.41 Subtotal 0.00 999,631.71 0.00 1.318 1,111.12 368.29 1,479.41 Total 105,761,811.36 104,341,437.74 106,018,366.33 0.831 1,018,439.04 -203,958.40 814,480.64 Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 No fiscal year history available Portfolio ENCI AC IE(PRF_IE)7 2.0 Report Ver.7 3 5 2016-08-24 Item 8D 27 of 108 Attachment 1 CITY OF ENCINITAS City f Encinitas YTD Report 505 S.VULCAN y nc as - p ENCINITAS, ENCINITAS,CA 9 Realized Gains and Losses (760)633-2641 Sorted By Investment Type Sales/Calls/Maturities: July 1, 2015-June 30, 2016 Investment# 1462 Par Value Sale Date Days Held U.S.Treasury Notes 0.00 18,134.06 1461 TRC 01/17/2014 Inv. Purchase 1464 TRC Maturity/Sale Realized Total Total Total Issuer Type Date Current Rate Maturity Date Term Book Value Proceeds Gain/Loss Earnings Net Earnings Yield 365 Certificates of Deposit- Bank 2,000,000.00 06/152016 880 2,000,000.00 1450 BCD 04/12/2013 248,000.00 10/13/2015 914 248,000.00 248,000.00 0.00 4,036.62 4,036.62 0.650 BMW Bank North America 0.650 10/13/2015 914 U.S.Treasury Coupon Securities Subtotals 6.000.000.00 6.000.000.00 0.00 1435 BCD 10/24/2012 248,000.00 10/26/2015 1,097 248,000.00 248,000.00 0.00 7,826.27 7,826.27 1.050 Goldman Sachs Bank,USA 1.050 10/26/2015 1,097 1,118 2,000,000.00 2,000,000.00 0.00 27,691.56 27,691.56 1456 BCD 11/15/2013 248,000.00 11/16/2015 731 248,000.00 248,000.00 0.00 3,228.42 3,228.42 0.650 Wax Bank 0.650 11/162015 731 1483 BCD 12/102014 248,000.00 12/312015 386 248,000.00 248,000.00 0.00 1,049.07 1,049.07 0.400 Apple Bank for Savings 0.400 12/312015 386 1449 BCD 04/102013 248,000.00 04/112016 1,097 248,000.00 248,000.00 0.00 4,844.83 4,844.83 0.650 Ally Bank 0.650 04/112016 1,097 1485 BCD 12/052014 248,000.00 06/062016 549 248,000.00 248,000.00 0.00 2,984.15 2,984.15 0.800 First Bank Puerto Rico 0.800 06/062016 549 Certificates of Deposit-Bank Subtotals 1,488,000.00 1,488,000.00 0.00 23,969.36 23,969.36 0.700 U.S.Treasury Coupon Securities 1462 TRC 01/17/2014 U.S.Treasury Notes 0.00 18,134.06 1461 TRC 01/17/2014 U.S.Treasury Notes 773 1464 TRC 01/17/2014 U.S.Treasury Notes 2,000,000.00 Federal Agency Coupon Securities 1444 FAC 12272012 Federal Nat'l Mortgage Assoc. 1448 FAC 03282013 Federal Home Loan Mortgage 1442 FAC 12272012 Federal Home Loan Bank 1429 FAC 06272012 Federal Home Loan Bank 1440 FAC 12272012 Federal Home Loan Mortgage Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 2,000,000.00 02292016 773 2,000,000.00 2,000,000.00 0.00 18,134.06 18,134.06 0.428 2.125 02292016 773 2,000,000.00 04/302016 834 2,000,000.00 2,000,000.00 0.00 22,709.34 22,709.34 0.497 2.000 04/302016 834 2,000,000.00 06/152016 880 2,000,000.00 2,000,000.00 0.00 25,890.28 25,890.28 0.537 0.500 06/152016 880 U.S.Treasury Coupon Securities Subtotals 6.000.000.00 6.000.000.00 0.00 66.733.68 66.733.68 0.487 2,000,000.00 07/022015 917 2,000,000.00 2,000,000.00 0.00 18,638.89 18,638.89 0.371 0.500 07/022015 917 2,000,000.00 08282015 883 2,000,000.00 2,000,000.00 0.00 17,006.67 17,006.67 0.351 0.500 08282015 883 2,000,000.00 09/112015 988 2,000,000.00 2,000,000.00 0.00 22,954.44 22,954.44 0.424 1.750 09/112015 988 2,000,000.00 12/112015 1,262 2,000,000.00 2,000,000.00 0.00 42,107.78 42,107.78 0.609 1.375 12/112015 1,262 2,000,000.00 01/192016 1,118 2,000,000.00 2,000,000.00 0.00 27,691.56 27,691.56 0.452 4.750 01/192016 1,118 No fiscal year history available Portfolio ENCI AC CG(PRF_CGR1)7.1.1 Report Ver 7 3 S 2016-08-24 Item 8D 28 of 108 City of Encinitas-YTD Report Realized Gains and Losses Sales/Calls/Maturities:July 1,2015-June 30, 2016 Attachment 1 Page 2 Investment# Par Value Sale Date Days Held Inv. Purchase Maturity/Sale Realized Total Total Total Issuer Type Date Current Rate Maturity Date Term Book Value Proceeds Gain/Loss Earnings Net Earnings Yield 365 Federal Agency Coupon Securities 1447 FAC 03/28/2013 2,000,000.00 03/01/2016 1,069 2,000,000.00 2,000,000.00 0.00 24,345.00 24,345.00 0.416 Federal Farm Credit 0.410 03/01/2016 1,069 1446 FAC 03/28/2013 2,000,000.00 05/13/2016 1,142 2,000,000.00 2,000,000.00 0.00 26,350.00 26,350.00 0.421 Federal Home Loan Mortgage 0.500 05/13/2016 1,142 Federal Agency Coupon Securities Subtotals 14,000,000.00 14,000,000.00 0.00 179,094.34 179,094.34 0.435 Federal Agency Callable Securities 1472 MC2 06/23/2014 1,000,000.00 06/23/2016 731 1,000,000.00 1,000,000.00 0.00 13,000.00 13,000.00 0.649 Federal Home Loan Mortgage 0.650 12/23/2016 914 Federal Agency Callable Securities Subtotals 1,000,000.00 1,000,000.00 0.00 13,000.00 13,000.00 0.649 Corporate Medium Term Notes 1421 MTN 02/22/2012 General Electric Capital Corp Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 1,000,000.00 08/11/2015 1,266 1.000 08/11/2015 1,266 Corporate Medium Term Notes Subtotals Total Realized Gains/Losses 1,000,000.00 1,000,000.00 0.00 48,130.38 48,130.38 1.388 23,488,000.00 23,488,000.00 No fiscal year history available 0.00 48,130.38 0.00 330,927.76 48,130.38 1.388 330,927.76 0.515 Portfolio ENCI AC CG(PRF_CGR1)7.1.1 Report Ver 7 3 S 2016-08-24 Item 813 29 of 108 Attachment 1 Unrealized Gains and Losses Open Positions through June 30, 2016 Page 1 Investment# Par Value Maturity Date Term Market Value Inv. Purchase Unrealized To Dale To Dale Actual Issuer Type Date Current Rate Days Held Book Value Market Date Gain/Loss Earnings Net Earnings Yield 365 Certificates of Deposit- Bank 1479 BCD 10/22/2014 248,000.00 10/24/2016 733 248,000.00 248,305.04 305.04 4,199.01 4,504.05 1.073 Capital One Bank USA,NA 1.000 618 06/30/2016 1437 BCD 10/24/2012 248,000.00 10/24/2016 1,461 248,000.00 248,679.52 679.52 12,346.32 13,025.84 1.424 Sallie Mae Bank/Murray 1.350 1,346 06/30/2016 1439 BCD 10/26/2012 248,000.00 10/26/2016 1,461 248,000.00 248,644.80 644.80 12,327.98 12,972.78 1.421 GE Capital Bank 1.350 1,344 06/30/2016 1455 BCD 11/12/2013 248,000.00 11/14/2016 1,098 248,000.00 248,438.96 438.96 6,536.33 6,975.29 1.067 Comenity Capital Bank 1.000 962 06/30/2016 1486 BCD 12/10/2014 248,000.00 12/12/2016 733 248,000.00 248,419.12 419.12 3,866.08 4,285.20 1.108 Peoples United Bank 1.000 569 06/30/2016 1476 BCD 10/23/2014 248,000.00 04/21/2017 911 248,000.00 248,677.04 677.04 4,401.83 5,078.87 1.211 Leader Bank 1.050 617 06/30/2016 1470 BCD 06/11/2014 248,000.00 05/11/2017 1,065 248,000.00 248,798.56 798.56 5,357.82 6,156.38 1.206 Compass Bank 1.050 751 06/30/2016 1471 BCD 06/06/2014 248,000.00 06/06/2017 1,096 248,000.00 248,907.68 907.68 4,879.82 5,787.50 1.127 NBT Bank 0.950 756 06/30/2016 1474 BCD 06/18/2014 248,000.00 06/19/2017 1,097 248,000.00 248,798.56 798.56 4,802.37 5,600.93 1.108 Customers Bank 0.950 744 06/30/2016 1438 BCD 10/25/2012 248,000.00 10/25/2017 1,826 248,000.00 250,098.08 2,098.08 13,707.95 15,806.03 1.730 American Express Centurion 1.500 1,345 06/30/2016 1482 BCD 12/04/2014 248,000.00 12/04/2017 1,096 248,000.00 249,150.72 1,150.72 4,688.22 5,838.94 1.495 Iberia Bank/LA 1.200 575 06/30/2016 1477 BCD 10/22/2014 248,000.00 10/22/2018 1,461 248,000.00 251,233.92 3,233.92 7,558.22 10,792.14 2.570 Discovery Bank 1.800 618 06/30/2016 1454 BCD 11/12/2013 248,000.00 11/13/2018 1,827 248,000.00 253,031.92 5,031.92 13,399.47 18,431.39 2.820 Bank of Baroda 2.050 962 06/30/2016 1484 BCD 12/05/2014 248,000.00 12/05/2018 1,461 248,000.00 252,791.36 4,791.36 7,800.11 12,591.47 3.229 State Bank of India 2.000 574 06/30/2016 1478 BCD 10/17/2014 248,000.00 10/17/2019 1,826 248,000.00 255,018.40 7,018.40 8,465.97 15,484.37 3.658 Synchrony Bank 2.000 623 06/30/2016 1487 BCD 12/10/2014 248,000.00 12/10/2019 1,826 248,000.00 255,134.96 7,134.96 8,505.38 15,640.34 4.046 CIT Bank 2.200 569 06/30/2016 Certificates of Deposit-Bank Subtotals 3,968,000.00 4,004,128.64 36,128.64 122,842.88 158,971.52 1.893 Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 No fiscal year history available Portfolio ENCI AC CG(PRF_CGU1)7.1.1 Report Ver 7 3 S 2016-08-24 Item 813 30 of 108 Attachment 1 Unrealized Gains and Losses Open Positions through June 30, 2016 Page 2 Investment# 1453 FAC 06/26/2013 Federal Nat'l Mortgage Assoc. Par Value Maturity Date Term 03/10/2014 Market Value 1.076 1466 FAC 03/10/2014 Federal Home Loan Mortgage 1473 FAC Inv. Purchase 2,000,000.00 02/22/2017 1,080 Unrealized To Date To Date Actual Issuer 0.842 Type Date Current Rate Days Held Book Value Market Date Gain/Loss Earnings Net Earnings Yield 365 U.S.Treasury Coupon Securities 2,006,560.00 3,691.32 36,515.35 40,206.67 0.868 1.000 844 1459 TRC 12/23/2013 2,000,000.00 07/31/2016 951 2,001,579.75 2,002,160.00 580.25 27,208.44 27,788.69 0.550 U.S.Treasury Notes 753 1.500 06/30/2016 921 06/30/2016 1489 TRC 12/11/2014 2,000,000.00 08/31/2016 629 2,001,833.52 2,002,320.00 486.48 13,976.69 14,463.17 0.464 U.S.Treasury Notes 1.000 568 06/30/2016 1488 TRC 12/11/2014 2,000,000.00 09/30/2016 659 1,999,989.21 2,000,740.00 750.79 15,602.97 16,353.76 0.525 U.S.Treasury Notes 0.500 568 06/30/2016 1481 TRC 11/04/2014 2,000,000.00 10/15/2016 711 2,000,675.55 2,001,560.00 884.45 16,837.27 17,721.72 0.534 U.S.Treasury Notes 0.625 605 06/30/2016 1511 TRC 01/27/2016 2,000,000.00 07/31/2017 551 1,993,727.31 1,999,380.00 5,652.69 6,761.83 12,414.52 1.457 U.S.Treasury Notes 0.500 156 06/30/2016 1490 TRC 12/17/2014 2,000,000.00 12/31/2017 1,110 1,991,977.48 2,005,240.00 13,262.52 31,338.89 44,601.41 1.454 U.S.Treasury Notes 0.750 562 06/30/2016 1491 TRC 02/20/2015 2,000,000.00 06/30/2018 1,226 2,008,779.89 2,030,400.00 21,620.11 31,464.68 53,084.79 1.941 U.S.Treasury Notes 1.375 497 06/30/2016 1509 TRC 01/27/2016 2,000,000.00 07/15/2018 900 1,996,702.21 2,011,356.92 14,654.71 8,312.44 22,967.15 2.691 U.S.Treasury Notes 0.875 156 06/30/2016 1510 TRC 01/27/2016 2,000,000.00 07/31/2019 1,281 1,980,720.33 2,008,200.00 27,479.67 10,171.36 37,651.03 4.448 U.S.Treasury Notes 0.875 156 06/30/2016 1515 TRC 06/01/2016 2,000,000.00 08/31/2019 1,186 2,002,465.29 2,020,454.35 17,989.06 1,697.62 19,686.68 11.961 U.S.Treasury Notes 1.000 30 06/30/2016 1516 TRC 06/01/2016 2,000,000.00 10/31/2019 1,247 2,013,839.47 2,033,653.91 19,814.44 1,750.48 21,564.92 13.029 U.S.Treasury Notes 1.250 30 06/30/2016 1517 TRC 06/01/2016 2,000,000.00 02/29/2020 1,368 2,022,232.08 2,044,689.73 22,457.65 1,899.20 24,356.85 14.654 U.S.Treasury Notes 1.375 30 06/30/2016 1518 TRC 06/01/2016 2,000,000.00 03/31/2020 1,399 2,019,489.71 2,042,478.47 22,988.76 1,929.09 24,917.85 15.012 U.S.Treasury Notes 1.375 30 06/30/2016 1514 TRC 04/19/2016 2,000,000.00 07/31/2020 1,564 2,044,888.65 2,063,693.57 18,804.92 4,665.44 23,470.36 5.739 U.S.Treasury Notes 1.625 73 06/30/2016 U.S.Treasury Coupon Securities Subtotals 28,078,900.45 28,266,326.95 187,426.50 173,616.40 361,042.90 5.339 Federal Agency Coupon Securities 1453 FAC 06/26/2013 Federal Nat'l Mortgage Assoc. 2,006,900.00 1467 FAC 03/10/2014 Federal Home Loan Mortgage 1.076 1466 FAC 03/10/2014 Federal Home Loan Mortgage 1473 FAC 06/09/2014 Federal Nat'l Mortgage Assoc. Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 2,000,000.00 11/15/2016 1,238 2,002,726.17 2,006,900.00 4,173.83 60,808.12 64,981.95 1.076 1.375 1,101 06/30/2016 2,000,000.00 02/22/2017 1,080 2,001,352.94 2,004,780.00 3,427.06 35,528.78 38,955.84 0.842 0.875 844 06/30/2016 2,000,000.00 03/08/2017 1,094 2,002,868.68 2,006,560.00 3,691.32 36,515.35 40,206.67 0.868 1.000 844 06/30/2016 1,000,000.00 04/27/2017 1,053 1,002,513.43 1,004,430.00 1,916.57 16,886.93 18,803.50 0.909 1.125 753 06/30/2016 No fiscal year history available Portfolio ENCI AC CG(PRF_CGU1)7.1.1 Report Ver 7 3 S 2016-08-24 Item 813 31 of 108 Attachment 1 Unrealized Gains and Losses Open Positions through June 30, 2016 Page 3 Investment# Par Value Maturity Date Term Market Value Inv. Purchase Unrealized To Date To Date Actual Issuer Type Date Current Rate Days Held Book Value Market Date Gain/Loss Earnings Net Earnings Yield 365 Federal Agency Coupon Securities 1468 FAC 03/10/2014 2,000,000.00 05/12/2017 1,159 2,006,672.07 2,011,500.00 4,827.93 39,880.41 44,708.34 0.964 Federal Home Loan Mortgage 1.250 844 06/30/2016 1502 FAC 06/24/2015 1,000,000.00 06/16/2017 723 1,000,176.86 1,001,650.00 1,473.14 7,967.41 9,440.55 0.924 Federal Farm Credit 0.800 373 06/30/2016 1508 FAC 06/26/2015 1,000,000.00 08/15/2017 781 1,001,885.51 1,003,930.00 2,044.49 8,435.40 10,479.89 1.029 Federal Farm Credit 1.000 371 06/30/2016 1494 FAC 05/27/2015 1,000,000.00 08/28/2017 824 1,002,519.48 1,005,670.00 3,150.52 8,563.93 11,714.45 1.064 Federal Nat'l Mortgage Assoc. 1.000 401 06/30/2016 1480 FAC 11/04/2014 2,000,000.00 09/05/2017 1,036 2,000,332.22 2,009,820.00 9,487.78 34,357.22 43,845.00 1.322 Federal Nat'l Mortgage Assoc. 1.050 605 06/30/2016 1495 FAC 05/27/2015 2,000,000.00 10/16/2017 873 2,001,402.04 2,007,100.00 5,697.96 17,964.81 23,662.77 1.076 Federal Home Loan Bank 0.875 401 06/30/2016 1504 FAC 06/26/2015 2,000,000.00 02/08/2018 958 1,996,366.49 2,010,200.00 13,833.51 20,041.55 33,875.06 1.669 Federal Nat'l Mortgage Assoc. 0.875 371 06/30/2016 1492 FAC 03/20/2015 2,000,000.00 03/07/2018 1,083 1,995,195.16 2,003,680.00 8,484.84 26,064.89 34,549.73 1.348 Federal Home Loan Mortgage 0.875 469 06/30/2016 1496 FAC 05/27/2015 2,000,000.00 05/21/2018 1,090 1,998,885.66 2,011,880.00 12,994.34 22,534.55 35,528.89 1.618 Federal Farm Credit 1.000 401 06/30/2016 1501 FAC 06/24/2015 2,000,000.00 07/20/2018 1,122 1,998,594.16 2,017,600.00 19,005.84 23,635.66 42,641.50 2.088 Federal Nat'l Mortgage Assoc. 1.125 373 06/30/2016 1497 FAC 05/27/2015 2,000,000.00 08/13/2018 1,174 2,000,000.00 2,015,320.00 15,320.00 24,077.77 39,397.77 1.793 Federal Home Loan Bank 1.100 401 06/30/2016 1503 FAC 06/26/2015 2,000,000.00 09/18/2018 1,180 2,027,903.23 2,051,100.00 23,196.77 25,242.07 48,438.84 2.350 Federal Nat'l Mortgage Assoc. 1.875 371 06/30/2016 1493 FAC 04/24/2015 2,000,000.00 10/23/2018 1,278 1,999,094.65 2,015,540.00 16,445.35 25,372.99 41,818.34 1.759 Federal Home Loan Bank 1.050 434 06/30/2016 1505 FAC 06/26/2015 2,000,000.00 11/27/2018 1,250 2,016,657.31 2,042,580.00 25,922.69 25,930.69 51,853.38 2.530 Federal Nat'l Mortgage Assoc. 1.625 371 06/30/2016 1500 FAC 06/24/2015 2,000,000.00 02/19/2019 1,336 2,025,492.91 2,055,340.00 29,847.09 28,360.08 58,207.17 2.812 Federal Nat'l Mortgage Assoc. 1.875 373 06/30/2016 1498 FAC 05/27/2015 2,000,000.00 03/08/2019 1,381 2,009,392.90 2,036,320.00 26,927.10 29,006.24 55,933.34 2.534 Federal Home Loan Bank 1.500 401 06/30/2016 1499 FAC 05/27/2015 2,000,000.00 06/14/2019 1,479 2,012,869.81 2,045,260.00 32,390.19 30,799.25 63,189.44 2.857 Federal Home Loan Bank 1.625 401 06/30/2016 1506 FAC 06/26/2015 2,000,000.00 09/12/2019 1,539 2,009,535.99 2,055,380.00 45,844.01 32,462.10 78,306.11 3.834 Federal Nat'l Mortgage Assoc. 1.750 371 06/30/2016 1507 FAC 06/26/2015 2,000,000.00 11/26/2019 1,614 2,006,856.92 2,056,260.00 49,403.08 33,443.03 82,846.11 4.061 Federal Nat'l Mortgage Assoc. 1.750 371 06/30/2016 Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 No fiscal year history available Portfolio ENCI AC CG(PRF_CGU1)7.1.1 Report Ver 7 3 S 2016-08-24 Item 813 32 of 108 Attachment 1 Unrealized Gains and Losses Open Positions through June 30, 2016 Page 4 Investment# 2,900,000.00 Par Value Maturity Date Term 51,020.67 Market Value Federal Home Loan Bank 0.580 1,108 06/30/2016 Inv. Purchase Federal Agency Callable Securities Subtotals 2,900,000.00 2,905,104.00 5,104.00 Unrealized To Date To Date Actual Issuer Type Date Current Rate Days Held Book Value Market Date Gain/Loss Earnings Net Earnings Yield 365 Federal Agency Coupon Securities 1512 FAC 04/19/2016 2,000,000.00 05/01/2020 1,473 2,017,972.31 2,030,160.00 12,187.69 4,562.31 16,750.00 4.150 Federal Home Loan Mortgage 1.375 73 06/30/2016 1513 FAC 04/19/2016 2,000,000.00 06/12/2020 1,515 2,040,387.62 2,053,220.00 12,832.38 4,953.62 17,786.00 4.358 Federal Home Loan Bank 1.750 73 06/30/2016 Federal Agency Coupon Securities Subtotals 46,177,654.52 46,562,180.00 384,525.48 623,395.16 1,007,920.64 2.085 Federal Agency Callable Securities 1451 MC2 06/19/2013 2,900,000.00 12/19/2016 1,279 2,900,000.00 2,905,104.00 5,104.00 51,020.67 56,124.67 0.638 Federal Home Loan Bank 0.580 1,108 06/30/2016 Federal Agency Callable Securities Subtotals 2,900,000.00 2,905,104.00 5,104.00 51,020.67 56,124.67 0.638 Total Current Bond Positions 81,124,554.97 81,737,739.59 613,184.62 970,875.11 1,584,059.73 3.150 Total Realized and Unrealized Gains/Losses Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 No fiscal year history available 613,184.62 1,301,802.87 1,914,987.49 2.559 Portfolio ENCI AC CG(PRF_CGU1)7.1.1 Report Ver 7 3 S 2016-08-24 Item 813 33 of 108 Attachment 1 Unrealized Gains and Losses Passbook/Checking Accounts through June 30, 2016 Page 1 Investment# Market Value Inv. Purchase Issuer Type Date Current Rate Book Value Market Date Passbook/Checking Accounts 1010 PA1 07/01/2015 3,346,015.09 3,346,015.09 Union Bank Checking Acct. 06/30/2016 Passbook/Checking Accounts Subtotals 3,346,015.09 3,346,015.09 Local Agency Investment Funds 1012 LA5 07/01/2015 0.580 23,889,873.10 23,889,873.10 CA LAIF 06/30/2016 Local Agency Investment Funds Subtotals 23,889,873.10 23,889,873.10 Managed Pool Accounts 1003 LA1 07/01/2015 0.510 1,003,468.65 1,003,468.65 CA Asset Management Program 06/30/2016 Managed Pool Accounts Subtotals 1,003,468.65 1,003,468.65 Money Market Funds 1004 LA3 07/01/2015 0.180 469.61 469.61 Union Bank Custody Acct. 06/30/2016 Money Market Funds Subtotals 469.61 469.61 Total Portfolio 109,364,381.42 109,977,566.04 Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 No fiscal year history available Portfolio ENCI AC CG(PRF_CGU2)7.1.1 Report Ver 7 3 S 2016-08-24 Item 813 34 of 108 Attachment 1 CITY OF ENCINITAS City of Encinitas - YTD Report 505 S.VULCAN Accrued Interest ENCINITAS, ENCINITAS,CA 9 (760)633-2641 Sorted by Security Type - Maturity Date July 1, 2015 - June 30, 2016 Managed Pool Accounts of Deposit-Bank 05568P3A3 1450 Adjusted Acc'd Int. LA1 1,003,468.65 0.510 72.10 0.00 3,048.47 2,699.58 420.99 03784JDM3 Security Par Maturity Current *Beginning at Purchase Interest Interest *Ending CUSIP Investment# Type Value Date Rate Accrued Interest During Period Earned Received Accrued Interest Local Agency Investment Funds 1476 20451PKJ4 1470 628779FH8 1471 23204HBHO 1474 SYS1012 1012 LA5 23,889,873.10 0.580 22,002.99 0.00 81,635.27 68,513.54 35,124.72 85628431`9 Subtotal 23,889,873.10 22,002.99 0.00 81,635.27 68,513.54 35,124.72 Managed Pool Accounts of Deposit-Bank 05568P3A3 1450 SYS1003 1003 LA1 1,003,468.65 0.510 72.10 0.00 3,048.47 2,699.58 420.99 03784JDM3 Subtotal 1,003,468.65 72.10 0.00 3,048.47 2,699.58 420.99 Money Market Funds SYS1004 1004 Certificates of Deposit-Bank 05568P3A3 1450 38143AP25 1435 92937CBM9 1456 03784JDM3 1483 02005QV34 1449 33767AGC9 1485 140420QG8 1479 795450PZ2 1437 3616OXY43 1439 20033ADJ2 1455 71270QKU9 1486 52168UCU4 1476 20451PKJ4 1470 628779FH8 1471 23204HBHO 1474 02587DLV8 1438 45083ADZ2 1482 254672CB2 1477 0606247A5 1454 85628431`9 1484 87164YEB6 1478 17284C5K6 1487 LA3 469.61 0.180 15.04 0.00 257.89 217.94 54.99 Subtotal 469.61 15.04 0.00 257.89 217.94 54.99 BCD 0.00 10/13/2015 0.650 353.32 0.00 459.30 812.63 -0.01 BCD 0.00 10/26/2015 1.050 485.13 0.00 834.71 1,319.84 0.00 BCD 0.00 11/16/2015 0.650 207.57 0.00 609.47 817.04 0.00 BCD 0.00 12/31/2015 0.400 57.08 0.00 497.35 554.43 0.00 BCD 0.00 04/11/2016 0.650 362.15 0.00 1,258.68 1,620.83 0.00 BCD 0.00 06/06/2016 0.800 141.34 0.00 1,853.54 1,994.85 0.03 BCD 248,000.00 10/24/2016 1.000 475.62 0.00 2,486.79 2,486.80 475.61 BCD 248,000.00 10/24/2016 1.350 623.74 0.00 3,357.17 3,357.18 623.73 BCD 248,000.00 10/26/2016 1.350 605.40 0.00 3,357.17 3,357.18 605.39 BCD 248,000.00 11/14/2016 1.000 129.06 0.00 2,486.80 2,486.81 129.05 BCD 248,000.00 12/12/2016 1.000 142.69 0.00 2,486.79 2,486.80 142.68 BCD 248,000.00 04/21/2017 1.050 57.08 0.00 2,611.13 2,611.13 57.08 BCD 248,000.00 05/11/2017 1.050 142.68 0.00 2,611.14 2,611.14 142.68 BCD 248,000.00 06/06/2017 0.950 161.37 0.00 2,362.45 2,362.46 161.36 BCD 248,000.00 06/19/2017 0.950 83.91 0.00 2,362.46 2,362.46 83.91 BCD 248,000.00 10/25/2017 1.500 682.85 0.00 3,730.20 3,730.20 682.85 BCD 248,000.00 12/04/2017 1.200 220.15 0.00 2,984.15 2,984.16 220.14 BCD 248,000.00 10/22/2018 1.800 856.11 0.00 4,476.23 4,476.24 856.10 BCD 248,000.00 11/13/2018 2.050 696.44 0.00 5,097.92 5,097.93 696.43 BCD 248,000.00 12/05/2018 2.000 353.31 0.00 4,973.59 4,973.58 353.32 BCD 248,000.00 10/17/2019 2.000 1,019.17 0.00 4,973.59 4,973.58 1,019.18 BCD 248,000.00 12/10/2019 2.200 313.90 0.00 5,470.95 5,470.94 313.91 *Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 Portfolio ENCI AP At(PRF_At)7 2.8 Report Ver.7 3 5 2016-08-24 Item 8D 35 of 108 City of Encinitas-YTD Report Accrued Interest Sorted by Security Type-Maturity Date Attachment 1 Page 2 U.S.Treasury Coupon Securities 3135GOLN1 Adjusted Acc'd Int. 3134G3ZA1 1448 313370JB5 Security Par Maturity Current *Beginning at Purchase Interest Interest *Ending CUSIP Investment# Type Value Date Rate Accrued Interest During Period Earned Received Accrued Interest Subtotal 3,968,000.00 8,170.07 0.00 61,341.58 62,948.21 6,563.44 U.S.Treasury Coupon Securities 3135GOLN1 1444 3134G3ZA1 1448 313370JB5 1442 313371NVV2 1429 3134A4ZT4 912828QJ2 1462 TRC 0.00 02/29/2016 2.125 14,205.16 0.00 28,294.84 42,500.00 0.00 912828QFO 1461 TRC 0.00 04/30/2016 2.000 6,739.13 0.00 33,260.87 40,000.00 0.00 912828VG2 1464 TRC 0.00 06/15/2016 0.500 437.16 0.00 9,562.84 10,000.00 0.00 912828QX1 1459 TRC 2,000,000.00 07/31/2016 1.500 12,513.81 0.00 30,013.66 30,000.00 12,527.47 912828RF9 1489 TRC 2,000,000.00 08/31/2016 1.000 6,684.78 0.00 20,000.00 20,000.00 6,684.78 912828F47 1488 TRC 2,000,000.00 09/30/2016 0.500 2,513.66 0.00 10,000.00 10,000.00 2,513.66 912828VVA4 1481 TRC 2,000,000.00 10/15/2016 0.625 2,629.78 0.00 12,500.00 12,500.00 2,629.78 912828TG5 1511 TRC 2,000,000.00 07/31/2017 0.500 0.00 0.00 4,284.52 108.70 4,175.82 912828UE8 1490 TRC 2,000,000.00 12/31/2017 0.750 40.76 0.00 15,000.00 15,000.00 40.76 912828VK3 1491 TRC 2,000,000.00 06/30/2018 1.375 74.73 0.00 27,500.00 27,500.00 74.73 912828XK1 1509 TRC 2,000,000.00 07/15/2018 0.875 0.00 0.00 7,500.00 0.00 7,500.00 912828TH3 1510 TRC 2,000,000.00 07/31/2019 0.875 0.00 0.00 7,497.91 190.22 7,307.69 912828TNO 1515 TRC 2,000,000.00 08/31/2019 1.000 0.00 0.00 1,630.43 0.00 1,630.43 912828TV2 1516 TRC 2,000,000.00 10/31/2019 1.250 0.00 0.00 2,038.05 0.00 2,038.05 912828J50 1517 TRC 2,000,000.00 02/29/2020 1.375 0.00 0.00 2,241.85 0.00 2,241.85 912828J84 1518 TRC 2,000,000.00 03/31/2020 1.375 0.00 0.00 2,254.10 0.00 2,254.10 912828XM7 1514 TRC 2,000,000.00 07/31/2020 1.625 0.00 0.00 6,517.86 0.00 6,517.86 Subtotal 28,000,000.00 45,838.97 0.00 220,096.93 207,798.92 58,136.98 Federal Agency Coupon Securities 3135GOLN1 1444 3134G3ZA1 1448 313370JB5 1442 313371NVV2 1429 3134A4ZT4 1440 3133ECGT5 1447 3137EADQ9 1446 3135GOES8 1453 3137EADT3 1467 3137EADCO 1466 3135GOJA2 1473 3137EADF3 1468 3133EEX62 1502 3133EDSU7 1508 3136GOYE5 1494 3136GOZH7 1480 313OA4TR3 1495 3135GOTG8 1504 FAC 0.00 07/02/2015 0.500 4,972.22 0.00 27.78 5,000.00 0.00 FAC 0.00 08/28/2015 0.500 3,416.67 0.00 1,583.33 5,000.00 0.00 FAC 0.00 09/11/2015 1.750 10,694.44 0.00 6,805.56 17,500.00 0.00 FAC 0.00 12/11/2015 1.375 1,527.78 0.00 12,222.22 13,750.00 0.00 FAC 0.00 01/19/2016 4.750 42,750.00 0.00 52,250.00 95,000.00 0.00 FAC 0.00 03/01/2016 0.410 2,733.33 0.00 5,466.67 8,200.00 0.00 FAC 0.00 05/13/2016 0.500 1,333.34 0.00 8,666.66 10,000.00 0.00 FAC 2,000,000.00 11/15/2016 1.375 3,513.89 0.00 27,500.00 27,500.00 3,513.89 FAC 2,000,000.00 02/22/2017 0.875 6,270.84 0.00 17,500.00 17,500.00 6,270.84 FAC 2,000,000.00 03/08/2017 1.000 6,277.78 0.00 20,000.00 20,000.00 6,277.78 FAC 1,000,000.00 04/27/2017 1.125 2,000.00 0.00 11,250.00 11,250.00 2,000.00 FAC 2,000,000.00 05/12/2017 1.250 3,402.78 0.00 25,000.00 25,000.00 3,402.78 FAC 1,000,000.00 06/16/2017 0.800 155.55 0.00 8,000.00 7,822.22 333.33 FAC 1,000,000.00 08/15/2017 1.000 138.89 0.00 10,000.00 6,361.11 3,777.78 FAC 1,000,000.00 08/28/2017 1.000 944.45 0.00 10,000.00 7,527.78 3,416.67 FAC 2,000,000.00 09/05/2017 1.050 6,766.67 0.00 21,000.00 21,000.00 6,766.67 FAC 2,000,000.00 10/16/2017 0.875 1,652.77 0.00 17,500.00 15,506.94 3,645.83 FAC 2,000,000.00 02/08/2018 0.875 243.06 0.00 17,500.00 10,791.67 6,951.39 *Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 Portfolio ENCI AP At(PRF_At)7 2.8 Report Ver.7 3 5 2016-08-24 Item 8D 36 of 108 City of Encinitas-YTD Report Accrued Interest Sorted by Security Type-Maturity Date Attachment 1 Page 3 *Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 Portfolio ENCI AP At(PRF_At)7 2.8 Report Ver.7 3 5 2016-08-24 Item 8D 37 of 108 Adjusted Acc'd Int. Security Par Maturity Current *Beginning at Purchase Interest Interest *Ending CUSIP Investment# Type Value Date Rate Accrued Interest During Period Earned Received Accrued Interest Federal Agency Coupon Securities 3137EADP1 1492 FAC 2,000,000.00 03/07/2018 0.875 4,909.73 0.00 17,500.00 16,868.06 5,541.67 3133EEM98 1496 FAC 2,000,000.00 05/21/2018 1.000 1,888.89 0.00 20,000.00 19,666.67 2,222.22 3135GOE33 1501 FAC 2,000,000.00 07/20/2018 1.125 437.50 0.00 22,500.00 12,875.00 10,062.50 313OA5E54 1497 FAC 2,000,000.00 08/13/2018 1.100 2,077.77 0.00 22,000.00 15,644.44 8,433.33 3135GOYM9 1503 FAC 2,000,000.00 09/18/2018 1.875 520.84 0.00 37,500.00 27,291.67 10,729.17 313OA53ZO 1493 FAC 2,000,000.00 10/23/2018 1.050 3,908.34 0.00 21,000.00 20,941.67 3,966.67 3135GOYT4 1505 FAC 2,000,000.00 11/27/2018 1.625 451.38 0.00 32,500.00 29,881.94 3,069.44 3135GOZA4 1500 FAC 2,000,000.00 02/19/2019 1.875 729.17 0.00 37,500.00 24,479.17 13,750.00 3133782M2 1498 FAC 2,000,000.00 03/08/2019 1.500 2,833.34 0.00 30,000.00 23,416.67 9,416.67 313379EE5 1499 FAC 2,000,000.00 06/14/2019 1.625 1,534.72 0.00 32,500.00 32,500.00 1,534.72 3135GOZG1 1506 FAC 2,000,000.00 09/12/2019 1.750 486.11 0.00 35,000.00 24,888.89 10,597.22 3135GOZY2 1507 FAC 2,000,000.00 11/26/2019 1.750 486.11 0.00 35,000.00 32,083.33 3,402.78 3137EADR7 1512 FAC 2,000,000.00 05/01/2020 1.375 0.00 0.00 5,500.00 916.67 4,583.33 313383HU8 1513 FAC 2,000,000.00 06/12/2020 1.750 0.00 0.00 7,000.00 5,152.78 1,847.22 Subtotal 46,000,000.00 119,058.36 0.00 627,772.22 611,316.68 135,513.90 Federal Agency Callable Securities 313383FB2 1451 MC2 2,900,000.00 12/19/2016 0.580 560.67 0.00 16,820.00 16,820.00 560.67 3134G56W0 1472 MC2 0.00 12/23/2016 0.650 144.44 0.00 6,355.56 6,500.00 0.00 Subtotal 2,900,000.00 705.11 0.00 23,175.56 23,320.00 560.67 Corporate Medium Term Notes 36962G4N1 1421 MTN 0.00 08/11/2015 1.000 1,368.00 0.00 1,111.12 2,479.12 0.00 Subtotal 0.00 1,368.00 0.00 1,111.12 2,479.12 0.00 Total 105,761,811.36 197,230.64 0.00 1,018,439.04 979,293.99 236,375.69 *Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 Portfolio ENCI AP At(PRF_At)7 2.8 Report Ver.7 3 5 2016-08-24 Item 8D 37 of 108 Attachment 1 CITY OF ENCINITAS City of Encinitas - YTD Report 505 S.VULCAN Purchases Report ENCINITAS, ENCINITAS,CA 9 p (760)633-2641 Sorted by Security Type - Purchase Date July 1, 2015 - June 30, 2016 Federal Agency Coupon Securities 313383HU8 1513 001 FAC FHLB 2,000,000.00 04/19/2016 06/12-12/12 2,042,434.00 Received 1.750 06/122020 1.224 2,040,387.62 3137EADR7 1512 001 FAC FHLMC 2,000,000.00 04/19/2016 05/01-11/01 2,018,910.00 Received 1.375 05/012020 1.134 2,017,972.31 Subtotal 4,000,000.00 Total Purchases Received=Accrued Interest at Purchase was received by report ending date. Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 20,000,000.00 No fiscal year history available 4,061,344.00 0.00 20,105,719.36 26,466.95 4,058,359.93 20,132,424.98 Portfolio ENCI AP PU(PRF_PU)7.1.1 Report Ver 7 3 S 2016-08-24 Item 8D 38 of 108 Sec. Original Purchase Principal Accrued Interest Rate at Maturity Ending CUSIP Investment# Fund Type Issuer Par Value Date Payment Periods Purchased at Purchase Purchase Date YTM Book Value U.S.Treasury Coupon Securities 912828XK1 1509 001 TRC UST 2,000,000.00 01/27/2016 07/15-01/15 1,995,312.85 576.92 0.875 07/15/2018 0.971 1,996,702.21 912828TH3 1510 001 TRC UST 2,000,000.00 01/27/2016 01/31-07/31 1,978,046.88 Received 0.875 07/312019 1.195 1,980,720.33 912828TG5 1511 001 TRC UST 2,000,000.00 01/27/2016 01/31-07/31 1,991,250.00 Received 0.500 07/312017 0.792 1,993,727.31 912828XM7 1514 001 TRC UST 2,000,000.00 04/19/2016 07/31-01/31 2,039,687.50 7,053.57 1.625 07/312020 1.149 2,044,888.65 912828TNO 1515 001 TRC UST 2,000,000.00 06/01/2016 08/31-02/28 1,997,343.75 5,054.35 1.000 08/312019 1.042 2,002,465.29 912828TV2 1516 001 TRC UST 2,000,000.00 06/01/2016 10/31-04/30 2,011,953.13 2,173.91 1.250 10/312019 1.071 2,013,839.47 912828J50 1517 001 TRC UST 2,000,000.00 06/01/2016 08/31-0228 2,015,625.00 6,949.73 1.375 02292020 1.161 2,022,232.08 912828J84 1518 001 TRC UST 2,000,000.00 06/01/2016 09/30-03/31 2,015,156.25 4,658.47 1.375 03/312020 1.172 2,019,489.71 Subtotal 16,000,000.00 16,044,375.36 26,466.95 16,074,065.05 Federal Agency Coupon Securities 313383HU8 1513 001 FAC FHLB 2,000,000.00 04/19/2016 06/12-12/12 2,042,434.00 Received 1.750 06/122020 1.224 2,040,387.62 3137EADR7 1512 001 FAC FHLMC 2,000,000.00 04/19/2016 05/01-11/01 2,018,910.00 Received 1.375 05/012020 1.134 2,017,972.31 Subtotal 4,000,000.00 Total Purchases Received=Accrued Interest at Purchase was received by report ending date. Data Updated:SET_ANNU:07/19201615:09 Run Date.07/19/2016-15.09 20,000,000.00 No fiscal year history available 4,061,344.00 0.00 20,105,719.36 26,466.95 4,058,359.93 20,132,424.98 Portfolio ENCI AP PU(PRF_PU)7.1.1 Report Ver 7 3 S 2016-08-24 Item 8D 38 of 108 Attachment 2 CITY OF ENCINITAS INVESTMENT OF BOND PROCEEDS For the Fiscal Year ended June 30,2016 Maturity Market FY 2015-16 GOVERNMENTALFUNDS TRUSTEED H&INVESTMENTS Yield Date Value Income Budget ENCINITAS PUBLIC FINANCING AUTHORITY 1997 CERTIFICATES OF PARTICIPATION(CIVIC CENTER) Bond Fund Blackrock Money Market Fund 0.22% 1 day $ 3,862 5 Reserve Fund Blackrock Money Market Fund 0.22% 18,601 15 Reserve Fund Guaranteed Investment Contract 5.97% 12/1/2016 619,500 $ 37,190 40,000 $ 641,963 $ 37,210 $ 40,000 2006 LEASE REVENUE BONDS(PUBLIC LIBRARY) Bond Fund Blackrock Money Market Fund $ - 3 Interest Account Federated Rime Cash Money Market Find - - Reserve Fund Federated Rime Cash Money Market Find 155 $ 0 $ 158 $ 0 2010 LEASE REVENUE BONDS(COMM PARK ACQUISITION) Bond Fund Blackrock Money Market Fund 0.22% $ 78 79 Reserve Fund Blackrock Money Market Fund 0.22% 1,412,709 1163 $ 1,412,787 $ 1,242 $ 0 2013 LEASE REVENUE BONDS(COMM PARK DEVELOPMENT) Bond Fund Blackrock Money Market Fund 0.29% $ 7 9 Project Fund Blackrock Money Market Fund - 1 1 - $ 7 $ 9 $ 0 2014 ENCINITAS PUBLIC FINANCING AUTHORITY 2014 A&B LEASE REVENUE BONDS (PACIFIC VIEW PROPERTY&MOONLIGHT BEACH LIFEGUARD TOWER) Bond Fund Blackrock Money Market Fund 0.22% $ 1,887 23 Construction Series A Blackrock Money Market Fund 0.22% 3,006,072 2,473 Construction Series B Blackrock Money Market Fund 0.22% - 3,007,959 2,496 - 2015 LEASE REVENUE BONDS(PUBLIC LIBRARY) Bond Fund Blackrock Money Market Fund 0.20% $ 25 21 Interest Account Federated Prime Cash Money Market Find 0.21% 38 $ 63 $ 21 $ 0 ENCINITAS PUBLIC FINANCING AUTHORITY OTALS A' $ 5,062f779 $ 41136 40 00 CITY OF ENCINITAS/ASSOCIATION OF BAY AREA GOVERNMENTS(ABAG) 2002 LEASE REVENUE BONDS(ABAG FUNDING) Bond Fund Wells Fargo Money Market Fund 0.01% $ 287,786 17 Principal Fund Wells Fargo Money Market Fund 0.01% - Interest Fund Wells Fargo Money Market Fund 0.01% - Reserve Fund Wells Fargo Money Market Fund 0.01% 216,414 563 OTHER CITY BOND ISSUES (B) $ 504,200 $ 580 $ 0 TOTALS FOR GOVERNMENTAL FUNDS (A)+(B) $ 5,566,979 $ 41,716 $ 40,000 AL Maturity Market FY 2014-15 ENTERPRISE FUNDS TRL.6TEEC H&INVESmENTS yield Date Value Income Budget SAN DIEGUITO WATER DISTRICT 2007 WATER REVENUE BONDS Bond Fund Blackrock Money Market Fund $ 10 10 Reserve Fund Federated Prime Cash Money Market Fund 0.36% 1,376,996 1,624 TOTAL $ 1,377,006 $ 1,634 $ 0 2014 WATER REVENUE BONDS Bond Fund Blackrock Money Market Fund 0.01% $ 7 Reserve Fund Blackrock Money Market Fund 0.01% - Cost of Issuance Blackrock Money Market Fund 0.01% TOTAL $ 7 n3o TOTALS FOR ENTERPRISE FUNDS (C) $ 1,377,013 TOTAL TRUSTEE CASH&INVESTMENTS (A) + (B) + (C) $ 6,943,992 2016-08-24 Item 813 39 of 108 Attachment 3 CITY OF ENCINITAS ADMINISTRATIVE MANUAL Policy Title: Investment Policy Section: Finance Responsible Department, Finance Number. Admin Policy FO19 Approved By. City Council Dale Approved: 1994 LestAmanded: October 24- 223. 2013 Amendment Date: Auaust 24, 201 1. Phlkwphy The Investment Policy of the Encinitas City Council for the City of Encinitas represents the financial guidelines for the City's Investment Program. It is the policy of the City of Encinitas to invest excess public funds in a prudent manner the t safeguards the public trust, minimizes the risk of loss of capital, and provides assurance that all financial obligations will be met in the regular course of business. The City Council shall provide direction to the lavestment-4tfiseFCity Treasurer as to the goals and specific objectives of the Investment Program. 11. Scope This Investment Policy applies to all financial assets under the oversight of the City of Encinitas, except bond proceeds held by outside trustees and funds held by other governmental agencies. The City of Encinitas includes the City and all component units: the Encinitas Housing Authority(EHA), the Encinitas Public Financing Authority (EPFA), and the San Dieguito Water District (SDWD). These funds are accounted for in the City of Encinitas'Comprehensive Annual Financial Report and include: GENERALFUND SPECIAL REVENUE FUNDS CAPITAL PROJECT FUNDS ENTERPRISE FUNDS INTERNAL SERVICE FUNDS This policy also applies to funds that the City manages for other governmental agencies. Currently, the City manages funds for the Encinitas Ranch Golf Authority (ERGA), a legally separate joint powers authority which is not a component unit of the City. The investment of Bond Proceeds held with trustees is directed by the City, but is governed by the restrictions on Permitted Investments in the applicable Bond Indenture agreements. A portion of City funds is held by other governmental agencies. These funds are invested under the guidelines of the investment policies of those agencies. 2016-08-24 Item 813 40 of 108 Attachment 3 The City retirement plan is with CALPERS, and the City has no authority or oversight over the investments in any of those plans. Further, the City administers several deferred compensation plans. Assets held in those plans are held in trust for the participants, and are not assets of the City. The City does not have any authority over the investments held in these trusts. 111. Prudence Investments shall be made with reasonable financial judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent peFaW ang investor"standard. California Go✓t Code 53600.3 states that, "When investing,reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. The standard shall be applied in the context of managing an overall portfolio. Investment officials acting in accordance with established procedures and exercising due prudence shall be relieved of personal responsibility for an individual security's credit risk or market price changes. IV. Investment Objectives A. Safety of Principe l- the first objective of this policy is to ensure the safety of principal. The portfolio shall be planned and managed to minimize the risk of actual loss of principal. Principal is defined as the original purchase price of the security, excluding any purchase of accrued interest, up to the par (face) value of the security. Any purchase amount above par value (premium) is considered to be a purchase of accrued interest, and is excluded from the calculation of principal amount. The ln�eef,,, went ,,,-f^ff'--Qty Treasurer shall consider both credit risk and concentration risk (the concept of diversification) when assessing safety, and shall follow the guidelines outlined later in this policy to achieve that Objective,_ __- Formatted:Notstrlkethmugh B. L" idi - The second objective is the maintenance of sufficient liquidity to meet all operating and capital spending requirements that can be reasonably anticipated. ,' ;a-fWFY? PviikW is 4efin94 as f� qdc;e„vefed;e aut4o4xe,J t4at matuFe wig4in a erne�,eaF fame e.;e,, Fwnm4iny market Fisk._ _ _ For atted:Font Bald,Underline C. Return on investments- The third objective is yield, specifically, attaining a market rate of return over time, consistent with Council dlrecffon as to acceptable levels of risk. Refer to Section XV below for further discussion of performance measurement. 4V. Delegation of Authority n„fae.e„ .,..a Fe ..rib*, fe manage the Qty of E.Ginitas' n.,,e.tMent ere...am .vats f;...fln accordance with the California Government Code, Section 53607, the City Councjf, �^•vy hereby delegates the authority to invest or reinvest the Citv's funds, to sell or exchange securities purchased, and to deposit securities for safekeeping to the,City___- Formatted:Font Not Bald Treasurer. The Gi6,efEncinitas Municipal Code Chapter 2.28 designates that the Finance Director shall serve as City Treasurer. The Finance Director/City Treasurer has the option to designate another individual within the organization to assume some, or alt of the dutieg described in thi 2016-08-24 Item 813 41 of 108 Attachment 3 Oelis�i The Cir ante Ql:e Gte�has essiyn9 l Mme of these dutec to the (ihi CinanGe Manaee�III FeF euFeeses 4ae,fe 4ae,management eF the AnLws{men{P49gFal , the Cir ante Manayw III shell Ae '-delegate some. or all. of the duties described in this Policy to other qualified individuals within the organization. 2016-08-24 Item 8D 42 of 108 Attachment 3 Investment Procedures The Investment-4#iserCity Treasurer is responsible for establishing written investment procedures for the management and operation of the Investment Program, consistent with this Policy. Those procedures shall include reference to such items as:custody/safekeeping, repurchase agreements (if applicable), wire transfer agreements, banking service agreements, and explicit delegation of authority to personnel involved in the processing of banking or investment transactions. No person may engage in any investment transaction except as provided under the terms of this Policy and the established procedures. A Ethics, &Conflict of Interest The investment responsibility carries with it the responsibility of ensuring that investments placed are done so without improper influence or the appearance of improper influence. All officers and employees (officials) involved in the investment function shall adhere to the State's Code of Economic Interest and to the following: Officials shall refrain from personal business activity that could conflict with proper and impartial execution of the Investment Program, or that could impair their ability to make impartial investment decisions. Further, officials shall not personally or through a close relative maintain any accounts, interest, or private dealings with any firm with which the City places investments, with the exception of regular savings, checking and money market accounts, or other similar transactions that are offered on a non-negotiable basis to the general public. Any such relationships shall be disclosed annually to the City Clerk in conjunction with annual disclosure statements of economic interest. UII. Authorized Financial Dealers and Institutions The lavestment-D#iseFCity Treasurer shall maintain a list of qualified financial institutions authorized to provide financial or investment services to the City. The City shall contract with one institution to provide general banking services, which shall be reviewed at least every five years. City Council shall approve the selected institution and the contract for banking services. The City shall contract with one institution to provide investment custody services, which shall be reviewed at least every five(5)years. City Council shall approve the selected institution and the contract for custody services. 2016-08-24 Item 8D 43 of 108 Attachment 3 The Wi,act�qt QffiseFCity Treasurer shall maintain a list of qualified security broker-dealers authorized to provide financial or investment services to the City. To be eligible for consideration to become an authorized provider, each BrokerlFirm shall meet the following MINIMUM requirements: (1) have a net capital position in excess of$10 million, (2) have been in business for at least five years, (3) are currently licensed as a broker-dealer or investment adviser in California,and (4) Must carry adequate insurance coverage including liability, errors and omissions, and workers compensation(if applicable) Firms providing only representation of money market funds are exempt for requirement#1, but must still comply with all other requirements, including those listed below. The City Council shall approve the initial authorization of any broker-dealer. Authorized firms shall be notified by the investment-D#iG rCity Treasurer via an engagement letter, which outlines each parties'responsibiliffes(primarily the continuing compliance requirements discussed directly below). There is no contract for professional services or term to the engagement. The lavact�at 44;wCity Treasurer shall periodically evaluate the performance of all qualified broker-dealers, and determine if any changes need to be made. All broker-dealers authorized to do business with the City of Encinitas must also comply with the following requirements: (1) Firms must submit audited financial statements annually, within six months of their fiscal year-end, (2) Firms must provide proof of their NASBFinancial Industry Reoula tore Authority (FINRA) certification, and must disclose to the City immediately any regulatory actions or complaints against the broker assigned to the City account (3) Firms must provide proof of their registrationAicense to do business in the State of California, and shall immediately disclose to the City any change in that status. (4) Firms must certify in writing that they have received, read, and agree to comply with the City of Encinitas'most recently adopted Investment Policy. M. Authorized&Suitable Investment Instruments As a unit of local government in the State of California, the City of Encinitas is restricting itself to the investments authorized by Government 6edCode Sections 53600 through 53635 (the Go✓t "Code)except as otherwise provided herein by specific additional Council actions. SPECIFIC INVESTMENT TYPES AND AMOUNTS - The investment-4#fGwCity Treasurer is authorized to invest in only the following types of investments listed below in Section Vill,unless specifically authorized in advance by the Finance DireGtorC't,Treasurer Fom atted:Font Bald INVESTMENT ALLOCATIONS - The State Law Maximum allocations listed below refer to the percentage of the total portfolio or dollar amount that may be invested in each instrument under the provisions of the Go✓t Code. The 7a�getlnvestment Policy Maximum allocations refer to guidelines maximum allocations the investment Officer Nenera4 yCity Treasurer follows, in order to effect proper diversification of the portfolio and limit concentration risk. The lavestmeSt 4#iceFCity Treasurer is permitted to exceed these targetmaximum allocations for temporary periods. Any asset allocation that exceeds the 4argetlnvestment Policy Maximum allocation for a period of more than three months shall be reported to the FJaaase--Birester-City T�Lanaoer. 2016-08-24 Item 8D 44 of 108 Attachment 3 For purposes of calculating the percentage allocations, the assumption will be applied that the size of the portfolio for any fiscal year shall be determined by the total par value of the portfolio at the beginning of the first day of the fiscal year. Any investment types that exceed the maximum allowable under the Go✓t Code shall be reported to the City Council in the quarterly investment report. INVESTMENT ALLOCATIONS MAXIMUM TARGET STATE LAW NV POLICY----------- Formatted:No Underline MAXIMUM MAXIMUM Formatted:No Underline (1) Repurchase agreements NO LIMIT 20% This type of investment is only authorized in relation to the City's general banking arrangements, in which excess cash balances are"swept"into an interest earning account overnight. Maximum maturity is one day. All balances are required to be properly collateralized at 102%of par value in accordance with State requirements. (2) OA LocalAgency Inv Fund(LAIF) $6065 mi911on 30% The$0065 million listed under"MAXIMUM STATE LAW"refers to the LAIF limit on maximum deposits per local agency, not to the CA govt code restrictions. The City of Encinitas maintains two accounts with the LAIF, one in the name of the City and the other in the name of the San Dieguito Water District. Each account has a deposit limit of $40-FaUiea65million. Since San Dieguito Water District is a component unit of the City, the City may legally utilize the SDWD account in the operation of the City Pool. Thus, SDWD owns its ratable share of all City Pooled investments, but does not have a direct ownership interest in the LAIF account in its name. (3) Other Go✓t Managed Pools NO LIMIT AIO-LhWTM Per Issuer 1046 per Fool Investments in individual pools shall be limited to 10% of the total portfolio. Currently approved pools are the San Diego County Investment Pool and the California Asset Management Program (CAMPI. The City Council must approve the addition of any other governmental pools. (4) Mutual Funds and Money Market Mutual Funds(Totaq 20% 20% Perlssuer 10% 10% (A) Money Market Mutual Funds N/A 20% Per Issuer N/A 10% Mgne�, Market Mutual P:Uedc 4ai,a a stable AIAI/ (not asset •ia Ius) eF S1.99 nn Gf@f4Q@d uQae.I Inged etateg eea,sea aqd e„aaanyq rgmn ssiq,mml.,Je oa v Qualifying funds must meet one of the following criteria: (1) Attained the highest ranking or the highest letter and numerical rating provided by not less than two 2016-08-24 Item 8D 45 of 108 Attachment 3 nationally recognized statistical rating organizations, OR (2) Retained an Investment Advisor registered or exempt from registration with the SEC with not less than five years'experience managing money market mutual funds with assets under management in excess of$500 million. 2016-08-24 Item 8D 46 of 108 Attachment 3 INVESTMENT ALLOCATIONS(continued) MAXIMUM TARGET STATE LAW NV POLICY_______ _- Formatted:No underline MAXIMUM MAXIMUM Formatted:No Underline (S) Bend Mutual Funds N/A 10% Per Issuer N/A $5 rrilion Onnd Mutual C ndq n iniiiar to Money Market Mutual Fund,—, and are Subject to fAe name limifnfiann as AAans�, Market Mutual Fugdc In nfheF woFdn the fetal allaaatb.9 fa 9A..t..al C.ndq tin. etment f pas A D G\ is Angited M 2996 of the fatal ta, 1;94949 OaniJ AAfnl CniJn hinicnlAi Anieneig AfeiJ n•®mange mnf �ihi eF g�enfe� than 79 4a� an4 n subj@cf fe me LQ at44,an4 market Fist T9s�,hale a not asset�alue H n hw Fiat nFgRle 1 then(i4,is limif ng in estmegt ire Qogd A4,4,nl F,�Qdc fe Q (`�944f , CC(`Fogulafigns aFe 199ing &aReif that w4 gk94,change the aGGqunfing •ill nna langemAe n miffed term Qtain am eta Ale N4 I/" of T400 TAea�fIlaAe veil fe "mark fe maFkef" all in enfinenfn g in • asking 4a�, Th caliJ nniJ I'keli will periodically change the overall value of the fund This •a ld aerate a"Aerating AIA V °—rm�rwTr A mutual fund must receive the highest ranking by not less than two nationally recognized rating agencies or the fund must retain an investment advisor who is registered with the SEC (or exempt from registration). has assets under management in excess of$500 million, and has at least five years experience investing in instruments authorized by California Government Code sections 53601 and 53635. (5) Certificates of Deposit(CD's) NO LIMIT 10% Per Issuer NO LIMIT $1 rydion All CD's must be either insured by the FDIC or properly collateralized, pursuant to Section X below. Maturity shall not exceed one year. No more than$1 million per issuer. To be eligible to receive deposits from the City of Encinitas, each qualified financial institution must have received an overall rating of not less than "satisfactory"in its most recent evaluation by regulators of its record of meeting the credit needs of its community. (6) Negofiable CatrMates of Deposit 50% 10% Per Issuer $1 inklion All Negotiable CD's must be issued by a provider rated either:(1)Aaa by Moody's, (2) AAA by Standard & Foors, or (3) Aal by Moody's and AA+ by Standard & Poors. Investments of 2016-08-24 Item 8D 47 of 108 Attachment 3 $250,000 or less that are fully insured by the FDIC are exempt from the above credit rating requirements. Maturity shall not exceed five years. No more than$1 million per issuer. 2016-08-24 Item 8D 48 of 108 Attachment 3 INVESTMENT ALLOCATIONS(continued) MAXIMUM TARGET STATE LAW NV POLICY_______ _- Formatted:No underline MAXIMUM MAXIMUM Formatted:No Underline (7) Bankers Acceptances 40% 10% PerIssuer $0% $1 million Bankers Acceptances (BA's) represent a time draft drawn on and accepted by a Bank for payment of the shipment or storage of merchandise. They are generally considered a very safe investment since both the credit of the issuer and the Bank is pledged for repayment. They must not exceed 180 days maturity. BA's must have an underlying credit rating of A1iP1, and are limited to$1 million per issuer. (8) U.S. Treasury Bills,Notes and Bonds NO LIMIT 50% (9) U.S.GovLrnment-Sponsored Agencies NO LIMIT 60% Per Issuer 15% City shall invest primarily in securities issued by Federal Home Loan Bank(FHLB), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation(FHLMC), and Federal Farm Credit Bureau(FFCB). City may invest in Student Loan Marke'ing Association (S M" Private Equity Funding Corporation (PEFCO) and Tennessee Valley Authority(TVA);however, the overall limit of 60% still applies. City may also invest in the Government National Mortgage Association, but only via authorized Mutual Funds cited in Category 5 above, and subject to those limitations. (10) Cormmnercial Paper 25% 25% Per Issuer (see below) $5 nM$ion Commercial Paper(CF) is a short-term I.O.U. issued by large corporations of high credit standing which is unsecured. Investments are limited to only"prime quality" CP issued with the highest letter and number rating provided by one of the Vp two nationally recognized rating agencies. City limits itself only to CP rated A- 1 or better by Standard&Poors and P-1 by Moodys. Issuing corporations must be (1) organized and operating within the United States, (2) have total assets in excess of$500 million, and(3)have a "A"or higher rating for the issuers other debt obligations. Organized and operating within the United States includes global companies that sponsor United States commercial paper programs. City may not purchase more than 10%of outstanding commercial paper of any single corporate issuer. The maximum allowable maturity is 270 days or less. (11) Commercial MediumTerm Notes 30% 15% Per Issuer $1 rnl9ion Medium-Term Notes are defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating in the United States or by depository institutions licensed by the United States. State Code requires a credit rating of"A" 2016-08-24 Item 8D 49 of 108 Attachment 3 or better by one nationally recognized rating agency. The City is further limiting itself to notes that are rated Aa3 or better(Moody's)and AA-or better(S&F). 2016-08-24 Item 8D 50 of 108 Attachment 3 INVESTMENT ALLOCATIONS(continued) MAXIMUM TARGET STATE LAW NV POLICY_______ _- Formatted:No underline MAXIMUM MAXIMUM Formatted:No Underline (12) Guaranteed Investment Contracts Notre 10% Per Issuer $5 rrndion Guaranteed Investment Contracts (GIC's) are corporate obligations similar to medium-term notes, but are issued directly to the Agency by the issuer in the form of an investment contract. They are generally longer term in nature. They are generally utilized for the investment of bond proceeds, but may be utilized for the investment of Pooled funds. Uncollateralized GIC's are permitted only with issuers rated Aaa (Moody's) and/or AAA (Standard & Poors) Collateralized GIC's are permitted with issuers rated Aa2 or better(Moodys) and AA or better(Standard& Poors). No more than$5 million per issuer. (13) Demand Deposits(iron-interest bearing) Notre 0-246 Perlssuer 0-246 Non-interest bearing demand deposits with a financial institution approved to do business with the City shall be an allowable investment for the City Pool. These types of accounts are necessary to carry on the regular day-to-day financial operations of the City, must be collateralized, and are reported as "cash"on the monthly investment reports. When available, the ln�ee`ment DffieffCity Treasurer shall execute a "sweep arrangement' with the designated financial institution, to provide for excess overnight balances to earn interest. (14) Dernand Deposits(interest bearing) None 20% Per Issuer $20 rripion Interest-bearing demand deposits with a financial institution approved to do business with the City shall be an allowable investment for the City Pool. These types of accounts generally serve as an alternative to bank certificates of deposit, and have a stated minimum balance requirement. These types of accounts require a separate agreement with the financial institution, and must be fully collateralized as Public Deposits under California law. In addition, some part of the deposit (currently$250,000) may be insured by the Federal Deposit Insurance Corporation (FDIC) in lieu of collateralization. 2016-08-24 Item 8D 51 of 108 Attachment 3 SUMMARY TABLE of INVESTMENT ALLOCATIONS STATE LAW INV POLICY (1) REPURCHASE AGREEMENTS NO LIMIT 20% (2) CALIFORNIA LAIF NO LIMIT 30% (3) OTHERGOV'TPOOLS NO LIMIT 28,°630% Perlssuer 10% (4) MUTUAL FUNDS 20% 20% Perlssuer 10% 10% (5) CD's NO LIMIT 10% Perlssuer $1 Million (6) NEGOTIABLECD's 30% 10% Perlssuer $1 Million (7) BANKERS ACCEPTANCES NO LIMIT 10% Perlssuer 30% $1 Million (8) U.S. TREASURYS NO LIMIT 50% (9) U.S.FEDERAL AGENCIES NO LIMIT 60% Perlssuer 15% (10) COMMERCIAL PAPER 25% 25% Perlssuer $5 Million (11) COMMERCIAL MTN NOTES 30% 15% Perlssuer $1 Million (12) GIC's NO LIMIT 10% Perlssuer $5 Million (13) Demand Deposits(non-interest bearing) NO LIMIT 0-2% Perlssuer 0-2% (14) Demand Deposits(interest bearing) NO LIMIT 20% Perlssuer $20 Million The State of California Government Code restricts local agencies from investing in securities with final maturity dates greater than five(5)years, except as specifically authorized by the City Council. This Policy authorizes two specific exceptions to the above restriction. (1) The City may invest in up to $5 million (par value) of securities (at date of purchase) rated AAA or equivalent by either S&P or Moody's with maturities of greater than five(5)years, but not exceeding seven(7)years. (2) The City's General Contingency Reserve is not a part of normal operating reserves, and the related funds are not expected to be utilized in the foreseeable future, thus, the likelihood of liquidation is very small. The objective(s)of investment in this area are to maximize earnings with safety, while recognizing that liquidity is less of an issue than with operating or capital funds. Consistent with these objectives, the lavesteaf-4#iseFCity Treasurer is authorized to invest contingency funds in securities rated AAA or equivalent with maturities greater than seven(7)years that have a ready market should the need arise to liquidate the investment. 2016-08-24 Item 8D 52 of 108 Attachment 3 The City Council has directed the Investment 99serCiN Treasurer not to invest in securities of companies involved in the production of tobacco or alcohol related products. The City recognizes that, due to the extreme complexity of today's corporate structures, it is possible that investments may be placed in good faith in corporations that have an interest in tobacco or alcohol related products that is not widely known or properly disclosed by those corporations. The Wivactmeat 4LfA a City Treasurer shall make hisrher best efforts, including notice to broker/dealers, to assure that any corporate investments are placed with companies who are not in the tobacco or alcohol business. This policy applies at the time of purchase only. Certain investments are specifically prohibited by the State Code. Local Agencies may not invest in the following:Inverse floating-rate notes,range notes, or mortgage-derived interest-only strips. The Code also states that"A local Agency shall not invest in any security that could result in zero interest accrual if held to maturity." The City's interpretation of this Code section is that it does not prohibit Investment in U.S. Treasury or Federal Agency securities which carry a variable rate of interest, because the chance that such notes could result in zero interest accrual to maturity is remote. IX Due Diligence Requirements far Investment Pools, Mutual Funds, and CD's Investments of these types are authorized in Section VIII, above. Before investing any funds in pools or mutual funds, the Investment-D#iGwCity Treasurer shall perform a thorough investigation of the fund(s) to determine the suitability of the investment for the City of Encinitas Pooled Investment Fund. This investigation shall include, at a minimum:review of the Funds investment policy and/or prospectus, a review of the performance history of the Fund, review of ratings (where applicable), review of the latest published portfolio composition, review of fees and charges, and references from other agencies who invest in the Fund. The Investment--4#is City Treasurer shall monitor placement of Certificates of Deposit with financial institutions on a regular basis. Compliance with collateral requirements shall be monitored (if applicable). X Collatemlization of Public Deposits Collateralization will be required on two types of investments: demand and timed deposits (which are not fully insured by FDIC) and repurchase agreements. The Finance DlrectoriCity Treasurer has agreed to waive collateral requirements on the first$250,000 of CD's from each institution, which are insured by FDIC. In order to anticipate market changes and provide a level of security for all invested funds, the required collateralization levels will be (1) Overnight repurchases 102%of market value (2) rwWff;Gatgs9f99p9sit 400 ,mow (2) Timed Deposits in accordance with CA law regarding Public Deposits (3) Demand Deposits in accordance with CA law regarding Public Deposits Collateral must be held by an independent third party with whom the entity has a current custodial agreement. Collateral for overnight repurchases (sweep agreements) may be held by the Trust Department of the institution providing such sweep services. Sweep contracts shall provide for a perfected security interest for the City in collateralized securities. Collateral shall be provided by the issuing institution in accordance and compliance with the California Go✓t Code Sections 53630 at al. Issuing institution is responsible for compliance with all collateral requirements, and must provide the City periodic evidence of that compliance, in a form acceptable to the City. 2016-08-24 Item 813 53 of 108 Attachment 3 XI. Safekeeping and Custody All security transactions entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. Securities shall be held by an independent third-party custodian approved by the City Council. All broker-dealers shall send a transaction confirmation to the lavest eaf-4#iseFC v Treasurer and all security transactions confirmations shall be treated as a "Vital Record"by City personnel and kept safe per the requirements of City policy on Vital Records. Broker-dealers shall also send a monthly activity statement to the City showing all transactions entered into in the period. No City securities or cash will be held by any broker-dealer. The custodian sends a monthly statement to the lnLwstment 99serCity Treasurer covering all investment activity handled by that institution. X61. Diversification The City will diversify its investments by security type and institution, to avoid incurring unreasonable risks inherent in over-investing in specific instruments or individual financial institutions. This Policy sets limits on maximum allocations by investment type and by issuer. Refer to Section VIII. above for a listing of authorized investments and the maximum allocation by type of investment. Section VIII. also details specific limitations per issuer. For purposes of this Policy, those limits each apply to the overall portfolio. X611. Maximum Maturities To the extent possible, the City of Encinitas will attempt to match its investments with anticipated cash flow requirements, after taking into consideration interest rate (market) risk and the potential benefits of extending investment maturities. The City conforms to the California Go✓t Code requirements limiting investments in notes to five (5) years, subject to the exceptions cited in Section VIII. This relates principally to funds classified as reserves, which may be invested in specified instruments with maturities greater than five (5) years. In a44494, the Qty mwgtw^^ �f XIV. internal Control The lnLwstment Q#iGwCity Treasurer shall establish a system of internal controls over all cash management and investment transactions, designed to provide reasonable assurance that assets are safeguarded and that all transactions are properly and timely recorded. The City's independent auditor shall annually review the system of internal controls and report any deficiencies and/or suggestions for improvements to the Wi•agtmegt ^ff�^°• ^^^' Finance Director/City Treasurer. Any confirmed significant deficiencies shall be reported to the City Manager and City Council in writing, along with the City's response to the audit findings. XV. Perfonnanoe Standards. T499"i4 s;^Lestment s�ateg,,is sets,^ an4 as^°^" the aFyan.^' ^The Citv has determined that periodic quantitative measurement of investment portfolio performance is an important component of the overall monitoring of the investment program. As stated in Section IV(C) above, the 2016-08-24 Item 813 54 of 108 Attachment 3 performance objective of the Program is attaining a market rate of return over time consistent with the overall risk tolerance of the organize tion. The lavestment Q#iseFCity Treasurer is charged with determining an appropriate benchmark by which to measure periodic performance. The chosen benchmark shall be designed to match as closely as practicable the City's tolerance for investment risk. Utilization of the benchmark and analysis of actual performance vs. the benchmark represent an important risk management tool, and analysis of significant variations shall be reported to the City Council in a timely manner. At the same time, it is recognized that the benchmark represents a guideline only, and that performance may vary, especially over relatively short time periods. A timeframe of 2-3 years is considered to be the minimum time period necessary for judging overall performance, due to changing market conditions, cash flow requirements and the fact that no chosen performance benchmark will exactly mirror the City's portfolio. Attaining a market rate of return over time shall be measured and reported to the City Council, at least quarterly, via the utilization of the following benchmark to measure performance. The one(1) year constant maturity Treasury indeae Any change to the above performance benchmark shall be reported to the City Council during the lavestment 4#iseFSCity Treasurer's quarterly investment report. The lavestment-4#iserCity Treasurer shall report performance on a quarterly basis based on the book yield(standard income) approach. Book yield calculates the earnings on an investment based on actual interest earned during any reporting period, including the accretion of purchase discounts and/or the amortization of purchase premiums. The lavestment OffiGwfity Treasurer shall also report the estimated market value of investments held(as provided by a third-party data provider) with each periodic report. The City no longer reports investment income on a total return basis each fiscal year(the alternative method presented in Go✓t Actg. Standards Board(GASB) Statement No. 31)as the results over time are roughly comparable. XVI. Investment Accounting and Reporting The lavestment-4#iserCity Treasurer shall prepare(or have prepared) monthly investment reports sufficient to properly track and record all investment transactions and activity. The ln�eet---` 4LfA a City Treasurer shall report investment positions and results of the Pooled Investment Fund to the City Council at least quarterly, in a form acceptable to the City Counci"�94 fashion.) These reports shall either be presented as an Agenda Report or as a memo report to the City Council members, at the discretion of the City Manager. The lavestment-4tfiseFCity Treasurer shall report positions and results of the Pooled Investment Fund and the Investment of Bond Proceeds annually to the City Council at a Public Meeting. Detailed annual reports of the Pooled Investment Fund shall be made available on the City's WebSite for Public Review. XVII. Investment Policy Adoption: The Investment Policy shall be reviewed and adopted by the City Council at a Public Meeting at least annually, regardless of whether there are any proposed changes to the Policy. The Policy shall be posted for public review on the City's WebSite (www.encinitasCA.aoN under City DepartmentsiFinance. Any typographical errors of other minor errors or inconsistencies shall be investigated and interpreted by the ln�ee`ment City Treasurer, who shall then seek the concurrence of the -�,n�a-�^'F--`�City Manager 2016-08-24 Item 813 55 of 108 Attachment 3 before making any changes to policies or procedures. insiyn4Gant in the n m e all snntaxt of fAe Onlis� shall he n e ent94 fn the Qty Manayw fqF a final 49twMinafinn 2016-08-24 Item 8D 56 of 108 Attachment 4 CITY OF ENCINITAS ADMINISTRATIVE MANUAL Policy Title., Investment Policy Section., Finance Responsible Department Finance Number: Admin Policy F010 Approved By., City Council Date Approved. 1994 Last Amended. October 23, 2013 Amendment Date., August 24. 2016 1. Philosophy The Investment Policy of the Encinitas City Council for the City of Encinitas represents the financial guidelines for the City's Investment Program. It is the policy of the City of Encinitas to invest excess public funds in a prudent manner that safeguards the public trust, minimizes the risk of loss of capital, and provides assurance that all financial obligations will be met in the regular course of business. The City Council shall provide direction to the City Treasurer as to the goals and specific objectives of the Investment Program. 11. Scope This Investment Policy applies to all financial assets under the oversight of the City of Encinitas, except bond proceeds held by outside trustees and funds held by other governmental agencies. The City of Encinitas includes the City and all component units: the Encinitas Housing Authority (EHA), the Encinitas Public Financing Authority (EPFA), and the San Dieguito Water District (SDWD). These funds are accounted for in the City of Encinitas' Comprehensive Annual Financial Report and include: GENERALFUND SPECIAL REVENUE FUNDS CAPITAL PROJECT FUNDS ENTERPRISE FUNDS INTERNAL SERVICE FUNDS This policy also applies to funds that the City manages for other governmental agencies. Currently, the City manages funds for the Encinitas Ranch Golf Authority (ERGA), a legally separate joint powers authority which is not a component unit of the City. The investment of Bond Proceeds held with trustees is directed by the City, but is governed by the restrictions on Permitted Investments in the applicable Bond Indenture agreements. A portion of City funds is held by other governmental agencies. These funds are invested under the guidelines of the investment policies of those agencies. The City retirement plan is with CALPERS, and the City has no authority or oversight over the investments in any of those plans. Further, the City administers several deferred compensation 2016-08-24 Item 813 57 of 108 Attachment 4 plans. Assets held in those plans are held in trust for the participants, and are not assets of the City. The City does not have any authority over the investments held in these trusts. 111. Prudence Investments shall be made with reasonable financial judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent investor"standard. California Gov't Code 53600.3 states that, "When investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. The standard shall be applied in the context of managing an overall portfolio. Investment officials acting in accordance with established procedures and exercising due prudence shall be relieved of personal responsibility for an individual security's credit risk or market price changes. IV. Investment Objectives A. Saft of Principal- the first objective of this policy is to ensure the safety of principal. The portfolio shall be planned and managed to minimize the risk of actual loss of principal. Principal is defined as the original purchase price of the security, excluding any purchase of accrued interest, up to the par (face) value of the security. Any purchase amount above par value (premium) is considered to be a purchase of accrued interest, and is excluded from the calculation of principal amount. The City Treasurer shall consider both credit risk and concentration risk (the concept of diversification) when assessing safety, and shall follow the guidelines outlined later in this policy to achieve that objective. B. Liquidity - The second objective is the maintenance of sufficient liquidity to meet all operating and capital spending requirements that can be reasonably anticipated. C. Return on investments - The third objective is yield, specifically, attaining a market rate of return over time, consistent with Council direction as to acceptable levels of risk. Refer to Section XV below for further discussion of performance measurement. V. Delegation of Authority In accordance with the California Government Code, Section 53607, the City Council hereby delegates the authority to invest or reinvest the City's funds, to sell or exchange securities purchased, and to deposit securities for safekeeping to the City Treasurer. Encinitas Municipal Code Chapter 2.28 designates that the Finance Director shall serve as City Treasurer. The Finance Director/City Treasurer has the option to delegate some, or all, of the duties described in this Policy to other qualified individuals within the organization. Investment Procedures The City Treasurer is responsible for establishing written investment procedures for the management and operation of the Investment Program, consistent with this Policy. Those procedures shall include reference to such items as custody/safekeeping, repurchase agreements (if applicable), wire transfer agreements, banking service agreements, and explicit delegation of authority to personnel involved in the processing of banking or investment transactions. No person 2016-08-24 Item 813 58 of 108 Attachment 4 may engage in any investment transaction except as provided under the terms of this Policy and the established procedures. A Ethics, & Conflict of Interest The investment responsibility carries with it the responsibility of ensuring that investments placed are done so without improper influence or the appearance of improper influence. All officers and employees (officials) involved in the investment function shall adhere to the State's Code of Economic Interest and to the following: Officials shall refrain from personal business activity that could conflict with proper and impartial execution of the Investment Program, or that could impair their ability to make impartial investment decisions. Further, officials shall not personally or through a close relative maintain any accounts, interest, or private dealings with any firm with which the City places investments, with the exception of regular savings, checking and money market accounts, or other similar transactions that are offered on a non-negotiable basis to the general public. Any such relationships shall be disclosed annually to the City Clerk in conjunction with annual disclosure statements of economic interest. VII. Authorized Financial Dealers and Institutions The City Treasurer shall maintain a list of qualified financial institutions authorized to provide financial or investment services to the City. The City shall contract with one institution to provide general banking services, which shall be reviewed at least every five years. City Council shall approve the selected institution and the contract for banking services. The City shall contract with one institution to provide investment custody services, which shall be reviewed at least every five(5) years. City Council shall approve the selected institution and the contract for custody services. The City Treasurer shall maintain a list of qualified security broker-dealers authorized to provide financial or investment services to the City. To be eligible for consideration to become an authorized provider, each Broker/Firm shall meet the following MINIMUM requirements: (1) have a net capital position in excess of$10 million, (2) have been in business for at least five years, (3) are currently licensed as a broker-dealer or investment adviser in California, and (4) Must carry adequate insurance coverage including liability, errors and omissions, and workers compensation(if applicable.) Firms providing only representation of money market funds are exempt for requirement#1, but must still comply with all other requirements, including those listed below. The City Council shall approve the initial authorization of any broker-dealer. Authorized firms shall be notified by the City Treasurer via an engagement letter, which outlines each parties' responsibilities (primarily the continuing compliance requirements discussed directly below). There is no contract for professional services or term to the engagement. The City Treasurer shall periodically evaluate the performance of all qualified broker-dealers, and determine if any changes need to be made. All broker-dealers authorized to do business with the City of Encinitas must also comply with the following requirements: 2016-08-24 Item 813 59 of 108 Attachment 4 (1) Firms must submit audited financial statements annually, within six months of their fiscal year-end, (2) Firms must provide proof of their Financial Industry Regulatory Authority (FINRA) certification, and must disclose to the City immediately any regulatory actions or complaints against the broker assigned to the City account, (3) Firms must provide proof of their registration/license to do business in the State of California, and shall immediately disclose to the City any change in that status. (4) Firms must certify in writing that they have received, read, and agree to comply with the City of Encinitas'most recently adopted Investment Policy. VIII. Authotized& Suitable Investment Instruments As a unit of local government in the State of California, the City of Encinitas is restricting itself to the investments authorized by Government Code, Sections 53600 through 53635 (the Gov't "Code') except as otherwise provided herein by specific additional Council actions. SPECIFIC INVESTMENT TYPES AND AMOUNTS - The City Treasurer is authorized to invest in only the following types of investments listed below in Section Vlll. INVESTMENT ALLOCATIONS - The State Law Maximum allocations listed below refer to the percentage of the total portfolio or dollar amount that may be invested in each instrument under the provisions of the Gov't Code. The Investment Policy Maximum allocations refer to maximum allocations the City Treasurer follows, in order to effect proper diversification of the portfolio and limit concentration risk. The City Treasurer is permitted to exceed these maximum allocations for temporary periods. Any asset allocation that exceeds the Investment Policy Maximum allocation for a period of more than three months shall be reported to the City Manager. For purposes of calculating the percentage allocations, the assumption will be applied that the size of the portfolio for any fiscal year shall be determined by the total par value of the portfolio at the beginning of the first day of the fiscal year. Any investment types that exceed the maximum allowable under the Gov't Code shall be reported to the City Council in the quarterly investment report. INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM (1) Repurchase agreements NO LIMIT 20% This type of investment is only authorized in relation to the City's general banking arrangements, in which excess cash balances are "swept"into an interest earning account overnight. Maximum maturity is one day. All balances are required to be properly collateralized at 102%of par value in accordance with State requirements. (2) CA Local Agency Inv Fund(LAIF) $65 million 30% The $65 million listed under "MAXIMUM STATE LAW' refers to the LAIF limit on maximum deposits per local agency, not to the CA gov't code restrictions. The City of Encinitas maintains two accounts with the LAIF, one in the name of the City and the other in the name of the San Dieguito Water District. Each account has a deposit limit of$65million. Since San Dieguito Water District is a component unit of 2016-08-24 Item 813 60 of 108 Attachment 4 INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM the City, the City may legally utilize the SDWD account in the operation of the City Pool. Thus, SDWD owns its ratable share of all City Pooled investments, but does not have a direct ownership interest in the LAIF account in its name. (3) Other Gov't Managed Pools NO LIMIT 30% Per Issuer 10%per Pool Investments in individual pools shall be limited to 10% of the total portfolio. Currently approved pools are the San Diego County Investment Pool and the California Asset Management Program (CAMP). The City Council must approve the addition of any other governmental pools. (4) Mutual Funds and Money Market Mutual Funds(Total) 20% 20% Per Issuer 10% 10% (A) Money Market Mutual Funds N/A 20% Per Issuer N/A 10% Qualifying funds must meet one of the following criteria: (1) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations, OR (2) Retained an Investment Advisor registered or exempt from registration with the SEC with not less than five years'experience managing money market mutual funds with assets under management in excess of$500 million. (B) Mutual Funds N/A 10% Per Issuer N/A $5 million A mutual fund must receive the highest ranking by not less than two nationally recognized rating agencies or the fund must retain an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years experience investing in instruments authorized by California Government Code sections 53601 and 53635. (5) Certificates of Deposit(CD's) NO LIMIT 10% Perlssuer NO LIMIT $1 million All CD's must be either insured by the FDIC or properly collateralized, pursuant to Section X below. Maturity shall not exceed one year No more than$1 million per issuer. To be eligible to receive deposits from the City of Encinitas, each qualified financial institution must have received an overall rating of not less than 'satisfactory"in its most recent evaluation by regulators of its record of meeting the credit needs of its community. 2016-08-24 Item 813 61 of 108 Attachment 4 INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM (6) Negotiable Certificates of Deposit 30% 10% Perlssuer $1 million All Negotiable CD's must be issued by a provider rated either: (1) Aaa by Moody's, (2) AAA by Standard & Poors, or (3) Aa1 by Moody's and AA+ by Standard & Poor's. Investments of $250,000 or less that are fully insured by the FDIC are exempt from the above credit rating requirements. Maturity shall not exceed five years. No more than$1 million per issuer. (7) Bankers Acceptances 40% 10% Per Issuer 30% $1 million Bankers Acceptances (BA's) represent a time draft drawn on and accepted by a Bank for payment of the shipment or storage of merchandise. They are generally considered a very safe investment since both the credit of the issuer and the Bank is pledged for repayment. They must not exceed 180 days maturity. BA's must have an underlying credit rating of A11P1, and are limited to$1 million per issuer. (8) U.S. Treasury Bills, Notes and Bonds NO LIMIT 50% (0) U.S. Government-Sponsored Agencies NO LIMIT 60% Per Issuer 1590 City shall invest primarily in securities issued by Federal Home Loan Bank(FHLB), Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), and Federal Farm Credit Bureau(FFCB). City may invest in Private Equity Funding Corporation (PEFCO) and Tennessee Valley Authority (TVA); however, the overall limit of 60% still applies. City may also invest in the Government National Mortgage Association, but only via authorized Mutual Funds cited in Category 5 above, and subject to those limitations. (10) Commercial Paper 25% 25% Per Issuer (see below) $5 million Commercial Paper(CP) is a short-term 1.0.U. issued by large corporations of high credit standing which is unsecured. Investments are limited to only 'prime quality" CP issued with the highest letter and number rating provided by one of the two nationally recognized rating agencies. City limits itself only to CP rated A-1 or better by Standard& Poors and P-1 by Moodys. Issuing corporations must be (1) organized and operating within the United States, (2) have total assets in excess of $500 million, and (3) have a 'A" or higher rating for the issuers other debt obligations. Organized and operating within the United States includes global companies that sponsor United States commercial paper programs. City may not purchase more than 10% of outstanding commercial paper of any single corporate issuer. The maximum allowable maturity is 270 days or less. 2016-08-24 Item 813 62 of 108 Attachment 4 INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM (11) Commercial Medium-Term Notes 30% 15% Perlssuer $1 million Medium-Term Notes are defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating in the United States or by depository institutions licensed by the United States. State Code requires a credit rating of"A" or better by one nationally recognized rating agency. The City is further limiting itself to notes that are rated Aa3 or better(Moody's) and AA-or better(S &P). (12) Guaranteed Investment Contracts None 10% Per Issuer $5 million Guaranteed Investment Contracts (GIC's) are corporate obligations similar to medium-term notes, but are issued directly to the Agency by the issuer in the form of an investment contract. They are generally longer term in nature. They are generally utilized for the investment of bond proceeds, but may be utilized for the investment of Pooled funds. Uncollateralized GIC's are permitted only with issuers rated Aaa (Moody's) and/or AAA (Standard & Poors) Collateralized GIC's are permitted with issuers rated Aa2 or better(Moody's) and AA or better(Standard& Poors). No more than$5 million per issuer. (13) Demand Deposits(non-interest bearing) None 0-2% Per Issuer 0-2% Non-interest bearing demand deposits with a financial institution approved to do business with the City shall be an allowable investment for the City Pool. These types of accounts are necessary to carry on the regular day-to-day financial operations of the City, must be collateralized, and are reported as "cash" on the monthly investment reports. When available, the City Treasurer shall execute a "sweep arrangement"with the designated financial institution, to provide for excess overnight balances to earn interest. (14) Demand Deposits(interest bearing) None 20% Per Issuer $20 million Interest-bearing demand deposits with a financial institution approved to do business with the City shall be an allowable investment for the City Pool. These types of accounts generally serve as an alternative to bank certificates of deposit, and have a stated minimum balance requirement. These types of accounts require a separate agreement with the financial institution, and must be fully collateralized as Public Deposits under California law. In addition, some part of the deposit (currently$250,000) may be insured by the Federal Deposit Insurance Corporation (FDIC) in lieu of collateralization. 2016-08-24 Item 813 63 of 108 Attachment 4 SUMMARY TABLE of INVESTMENT ALLOCATIONS STATE LAW INV POLICY (1) REPURCHASE AGREEMENTS NO LIMIT 20% (2) CALIFORNIA LAIF NOLIMIT 30% (3) OTHER GOVT POOLS NO LIMIT 30% Per Issuer 10% (4) MUTUAL FUNDS 20% 20% Per Issuer 10% 10% (5) CD's NO LIMIT 10% Per Issuer $1 Million (6) NEGOTIABLE CD's 30% 10% Per Issuer $1 Million (7) BANKERS ACCEPTANCES NO LIMIT 10% Per Issuer 30% $1 Million (8) U.S. TREASURYS NO LIMIT 50% (9) U.S. FEDERAL AGENCIES NOLIMIT 60% Per Issuer 15% (10) COMMERCIAL PAPER 25% 25% Per Issuer $5 Million (11) COMMERCIAL MTN NOTES 30% 15% Per Issuer $1 Million (12) GIC's NO LIMIT 10% Per Issuer $5 Million (13) Demand Deposits(non-interest bearing) NO LIMIT 0-2% Per Issuer 0-2% (14) Demand Deposits(interest bearing) NO LIMIT 20% Per Issuer $20 Million The State of California Government Code restricts local agencies from investing in securities with final maturity dates greater than five(5) years, except as specifically authorized by the City Council. This Policy authorizes two specific exceptions to the above restriction. (1) The City may invest in up to $5 million (par value) of securities (at date of purchase) rated AAA or equivalent by either S&P or Moody's with maturities of greater than five(5)years, but not exceeding seven (7)years. (2) The City's General Contingency Reserve is not a part of normal operating reserves, and the related funds are not expected to be utilized in the foreseeable future, thus, the likelihood of liquidation is very small. The objective(s) of investment in this area are to maximize earnings with safety, while recognizing that liquidity is less of an issue than with operating or capital funds. Consistent with these objectives, the City Treasurer is authorized to invest contingency funds in securities rated AAA or equivalent with maturities greater than seven (7) years that have a ready market should the need arise to liquidate the investment. 2016-08-24 Item 813 64 of 108 Attachment 4 The City Council has directed the City Treasurer not to invest in securities of companies involved in the production of tobacco or alcohol related products. The City recognizes that, due to the extreme complexity of today's corporate structures, it is possible that investments may be placed in good faith in corporations that have an interest in tobacco or alcohol related products that is not widely known or properly disclosed by those corporations. The City Treasurer shall make hisiher best efforts, including notice to broker/dealers, to assure that any corporate investments are placed with companies who are not in the tobacco or alcohol business. This policy applies at the time of purchase only. Certain investments are specifically prohibited by the State Code. Local Agencies may not invest in the following: Inverse floating-rate notes, range notes, or mortgage-derived interest-only strips. The Code also states that'A local Agency shall not invest in any security that could result in zero interest accrual if held to maturity." The City's interpretation of this Code section is that it does not prohibit investment in U.S. Treasury or Federal Agency securities which carry a variable rate of interest, because the chance that such notes could result in zero interest accrual to maturity is remote. IX. Due Diligence Requirements for Investment Pools, Mutual Funds, and CD's Investments of these types are authorized in Section Vlll. above. Before investing any funds in pools or mutual funds, the City Treasurer shall perform a thorough investigation of the fund(s) to determine the suitability of the investment for the City of Encinitas Pooled Investment Fund. This investigation shall include, at a minimum: review of the Funds investment policy and/or prospectus, a review of the performance history of the Fund, review of ratings (where applicable), review of the latest published portfolio composition, review of fees and charges, and references from other agencies who invest in the Fund. The City Treasurer shall monitor placement of Certificates of Deposit with financial institutions on a regular basis. Compliance with collateral requirements shall be monitored(if applicable). X. Gollateralization of Public Deposits Colaateralization will be required on two types of investments: demand and timed deposits (which are not fully insured by FDIC) and repurchase agreements. The Finance Director/City Treasurer has agreed to waive collateral requirements on the first $250,000 of CD's from each institution, which are insured by FDIC. In order to anticipate market changes and provide a level of security for all invested funds, the required collateralization levels will be (1) Overnight repurchases 102%of market value (2) Timed Deposits in accordance with CA law regarding Public Deposits (3) Demand Deposits in accordance with CA law regarding Public Deposits Collateral must be held by an independent third party with whom the entity has a current custodial agreement. Collateral for overnight repurchases (sweep agreements) may be held by the Trust Department of the institution providing such sweep services. Sweep contracts shall provide for a perfected security interest for the City in collateralized securities. Collateral shall be provided by the issuing institution in accordance and compliance with the California Gov't Code Sections 53630 et al. Issuing institution is responsible for compliance with all collateral requirements, and must provide the City periodic evidence of that compliance, in a form acceptable to the City. 2016-08-24 Item 813 65 of 108 Attachment 4 XI. Safekeeping and Custody All security transactions entered into by the City shall be conducted on a delivery-versus-payment (D VP) basis. Securities shall be held by an independent third-party custodian approved by the City Council. All broker-dealers shall send a transaction confirmation to the City Treasurer, and all security transactions confirmations shall be treated as a "Vital Record"by City personnel and kept safe per the requirements of City policy on Vital Records. Broker-dealers shall also send a monthly activity statement to the City showing all transactions entered into in the period. No City securities or cash will be held by any broker-dealer. The custodian sends a monthly statement to the City Treasurer covering all investment activity handled by that institution. X11. Diversification The City will diversify its investments by security type and institution, to avoid incurring unreasonable risks inherent in over-investing in specific instruments or individual financial institutions. This Policy sets limits on maximum allocations by investment type and by issuer. Refer to Section VIII. above for a listing of authorized investments and the maximum allocation by type of investment. Section VIII. also details specific limitations per issuer. For purposes of this Policy, those limits each apply to the overall portfolio. X111. Maximum Maturities To the extent possible, the City of Encinitas will attempt to match its investments with anticipated cash flow requirements, after taking into consideration interest rate (market) risk and the potential benefits of extending investment maturities. The City conforms to the California Gov't Code requirements limiting investments in notes to five (5) years, subject to the exceptions cited in Section VIII. This relates principally to funds classified as reserves, which may be invested in specified instruments with maturities greater than five(5)years. XIV. Internal Control The City Treasurer shall establish a system of internal controls over all cash management and investment transactions, designed to provide reasonable assurance that assets are safeguarded and that all transactions are properly and timely recorded. The City's independent auditor shall annually review the system of internal controls and report any deficiencies and/or suggestions for improvements to the Finance Director/City Treasurer. Any confirmed significant deficiencies shall be reported to the City Manager and City Council in writing, along with the City's response to the audit findings. XV. Performance Standards: The City has determined that periodic quantitative measurement of investment portfolio performance is an important component of the overall monitoring of the investment program. As stated in Section 1 V(C) above, the performance objective of the Program is attaining a market rate of return over time consistent with the overall risk tolerance of the organization. The City Treasurer is charged with determining an appropriate benchmark by which to measure periodic performance. The chosen benchmark shall be designed to match as closely as practicable the City's tolerance for investment risk. Utilization of the benchmark and analysis of actual performance vs. the benchmark represent an important risk management tool, and analysis of 2016-08-24 Item 813 66 of 108 Attachment 4 significant variations shall be reported to the City Council in a timely manner. At the same time, it is recognized that the benchmark represents a guideline only, and that performance may vary, especially over relatively short time periods. A timeframe of 2-3 years is considered to be the minimum time period necessary for judging overall performance, due to changing market conditions, cash flow requirements and the fact that no chosen performance benchmark will exactly mirror the City's portfolio. Attaining a market rate of return over time shall be measured and reported to the City Council, at least quarterly, via the utilization of the following benchmark to measure performance. The one(1)year constant maturity Treasury index Any change to the above performance benchmark shall be reported to the City Council during the City Treasurer's quarterly investment report. The City Treasurer shall report performance on a quarterly basis based on the book yield(standard income) approach. Book yield calculates the earnings on an investment based on actual interest earned during any reporting period, including the accretion of purchase discounts and/or the amortization of purchase premiums. The City Treasurer shall also report the estimated market value of investments held(as provided by a third-party data provider) with each periodic report. The City no longer reports investment income on a total return basis each fiscal year (the alternative method presented in Gov't Actg. Standards Board (GASB) Statement No. 31) as the results over time are roughly comparable. XVI. Investment Accounting and Reporting The City Treasurer shall prepare (or have prepared) monthly investment reports sufficient to properly track and record all investment transactions and activity. The City Treasurer shall report investment positions and results of the Pooled Investment Fund to the City Council at least quarterly, in a form acceptable to the City Council. These reports shall either be presented as an Agenda Report or as a memo report to the City Council members, at the discretion of the City Manager. The City Treasurer shall report positions and results of the Pooled Investment Fund and the Investment of Bond Proceeds annually to the City Council at a Public Meeting. Detailed annual reports of the Pooled Investment Fund shall be made available on the City's WebSite for Public Review. XVII. Investment Policy Adoption: The Investment Policy shall be reviewed and adopted by the City Council at a Public Meeting at least annually, regardless of whether there are any proposed changes to the Policy. The Policy shall be posted for public review on the City's WebSite (www.encinitasCA.Qov) under City Departments/Finance. Any typographical errors of other minor errors or inconsistencies shall be investigated and interpreted by the City Treasurer, who shall then seek the concurrence of the City Manager before making any changes to policies or procedures. 2016-08-24 Item 813 67 of 108 Attachment 5 BROKER/DEALERS Current Authorized Broker/Dealers Wedbush Securities Don W. Collins Additional Broker/Dealers Recommended for Authorization Raymond James & Associates Stifel, Nicolaus and Company Rosa Schulte Bill Blackwill Wells Fargo Securities, LLC Vining Sparks IBG, L.P. John Williams Josh Gorham Union Bank Investment Services Mark Kreymer 2016-08-24 Item 8D 68 of 108 Attachment 5 .I CITY OF ENCINITAS, CALIFORNIA FINANCE DEPARTMENT BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION 1. Name of Firm: Wedbush Securities 2. Address: 860 Newport Center Drive Suite 100 NewportBeach, Ca 92660 National Headquarters: 1000 Wilshire Blvd Los Angeles, CA 90017-2457 3. Telephone: Newport Beach 866-579-2871 National Headquarters 213-688-8000 4. Primary Representative: Don Collins Vice President- Capital Markets IC 866-579-2871 28 years institutional sales Joined Wedbush Securities 612007 Series 4,7,63 Don Collins CRD# 1728413 Manager: Gary Wedbush Head of Fixed Income 213-866-8061 27+years institutional trading 5. Are you a Primary Dealer in U.S. Government Securities? No 6. Are you a Regional Dealer is U.S. Government Securities? Yes Wedbush Securities is a Regional Dealer. Founded in 1955, Wedbush Securities is one of the largest private, independent brokerage firms in United States. The firm specializes in providing transaction and trading services to both institutional and pri- vate retail clients. Wedbush Securities has over 1000 employees, $13 billion in assets under custody, $100+million in excess net capital, and over$3 billion in balance sheet 2016-08-24 Item 813 69 of 108 Attachment 5 assets. The Private Brokerage division has 100+ regional offices and 125+ nation- wide correspondent offices servicing over 60,000+ brokerage clients. Wedbush Secu- rities has been focusing on middle-market companies and their entrepreneurial lead- ers for the last 50 years, and has met the financing needs of numerous successful growth companies across a variety of industries through public offerings, private placements and financial advisory services. Wedbush's research and investment banking groups focus on sectors within technology, consumer goods and services, life sciences, industrial and business services. B. If your firm IS NOT a Primary Dealer,has it consistently complied with the Federal Reserve Bank's capital adequacy guidelines over the last 12 months? Yes,please refer to section 5—Focus Report 7. Are you a Broker instead of a Dealer i.e. You DO NOT own positions of Securi- ties? Wedbush Securities is a Broker and Dealer. Wedbush Securities underwrites and in- ventories Bonds. 8. Are you are Registered Municipal Advisor? Yes 9. What is the Net Capitalization of your firm? Wedbush Securities $149,058,186 Attached 10. What is the date of your fiscal year end? June 3dh 11. If you are a depository institution, please provide the following and most current certified audited information: N/A a. Tangible, Core, and Risk-Based Capital Rations b. CRA Rating 12. Is your Firm owned by a holding company? No. 13. Please Provide your Wiring and Delivery Instructions. Attached 14. Our trading desk offers the following instruments regularly. • Treasuries: T-Bills T-Notes T-Bonds T-Strips • Agencies: 2016-08-24 Item 813 70 of 108 Attachment 5 FNMA, FHLB, FHLMC, FFCB, FARMERMAC, SLMA, GNMA, TVA, FICO Bankers Acceptances (domestic and foreign) Medium Term Notes Certificates ofDeposit(bank and S&L) • MBS: GNMA, FNMA, FHLMC, Balloons, CMO's, Whole Loans 15. Which of the above does your Firm Specialize in Marketing? • Don Collins specializes in following the investment guidelines of The California Government Code §53601,53635,53635.2 et. seq. and offering allowable invest- ments within the guidelines of local policy. • Treasuries: T-Bills T-Notes T-Bonds T-Strips • Agencies: FNMA, FHLB, FHLMC, FFCB, FARMERMAC, SLMA, GNMA, TVA, FICO Bankers Acceptances (domestic and foreign) Medium Term Notes Certificates ofDeposit(bank and S&L) • MBS: GNMA, FNMA, FHLMC, Balloons, CMO's, Whole Loans 16. Please identify your public sector clients in our geographical area who are most comparable to our agency. Entity Name IContact lPhone Number Since City of Arcadia Shannan Huang 626-574-5465 2007 City of Burbank Debbie Kutka 818-238-5880 2006 City of Carson Monica Cooper 310-830-7600 2008 City of Chico Jennifer Hennese 530-895-4844 2000 City of Del Mar Teresa McBroome 858-755-9354 2011 City of Oceanside Renee Boor uez 760-435-3551 2016 City of Encintas Tim Nash 760-633-2641 1997 City of Escondido Beck Le 760-839-4301 2000 City of Gardena Erica Reyes 310-217-9664 1992 City of Hermosa Beach Karen Nowicki 310-318-0221 1998 City of Inglewood Wanda Brown 310412-5642 2000 City of Lake Forest Keith Neves 949-461-3431 2008 City of Long Beach Gary Nguyen 562-570-6169 2012 City of Monrovia Mark Alvarado 626-932-5510 1990 ICity of Moorpark IRon Ahlers 805-517-6249 2010 2016-08-24 Item 813 71 of 108 Attachment 5 City of Pomona Paula Chamberland 909-620-2454 1998 City of Richmond Trace Lovel 510-620-6750 20014 City of San Jose G2ian Sun 408-535-7015 2014 City of Santa Cruz Jack Diles 831-420-5055 2010 City of Torrance Dana Cortez 310-618-5801 20014 City of Turlock Diana Lewis 209-668-5570 1998 City of Vacaville Geoff Bunton 707-449-5119 1991 City of Visalia Jason Montgomery 559-738-3423 1994 Cit of Vista Lauren Warren 760-726-1340 2006 Cit of Manhattan Beach Bruce Moe 310-802-5552 2013 ICity of Whittier IKelley Williams 562-567-9866 2013 County ofColusa Dan Charter 530-458-0440 2000 County of Del Norte Barbara Lopez 707-4647283 20014 County of Fresno Mark Bray 559-488-3564 2006 County of Humboldt JohnBartholemew 877-897-5692 2005 County of Imperial Suzanne Bermudez 760-482-4479 2003 County of Lassen Nancy Cardenas 530-251-8218 2002 County of Mariposa Keith Williams 209-966-2621 2012 County of Merced Karen Adams 209-385-7307 2010 County of Nevada Tina Vemon 530-265-17014 2011 County of Shasta Lori Scott 530-245-6892 20014 County of Siski ou Wayne Hammar 530-842-8342 2005 County of Solano Michael Cooper 707-7846312 2000 County of Tehama Dana Hollmer 530-527-4535 1998 ,County of Trinity Terri MCBra er 530-623-1254 2011 ICounty of Yuba DanMierzwa 530-749-5624 2009 Chino Basis Desaulter Authority Michael Chun 909-993-1665 2010 Foothill Eastern Tollroads Diane Farson 949-754-3468 2012 Inland Empire Utilities District Jessica Sarmiento 909-993-1665 2010 Marin County Water District Oreen Delgado 415-945-1420 2001 Monte Vista Water District Ray Harton 909-6240035 2005 Otey Water District Kevin Koeppen 619-670-2250 1998 San Diego County Water Authority Eric Adachi 858-522-6678 2002 Santa Clara Valley Water District Charlene Sun 408-265-3175x2528 2000 SAWPA Karen Williams 951-354-4236 2002 New York State Insurance Fund Lisa Devlin 212-312-9710 2000 2016-08-24 Item 813 72 of 108 Attachment 5 17. What reports, transactions, confirmations, and other paper trail would we re- ceive? Would they be in electronic form? • Bloomberg trade rickets, Security display, Call page Credit pages as well as Rating Agency outlooks. • Firstphone call confirms transaction by Broker • Second phone call confirms trade by Clearing Department • Email,fax copy of transaction • Statement of transaction from Wedbush Securities Monthly and Quarterly statement of Account activity Would they be in electronic form? Yes 18. Please include samples of research reports or market information that your firm regularly provides to local agency clients. Please include sample Daily Offering sheets with your proposal. Attached 19. What precautions are taken by your firm to protect the interests of the public when dealing with governmental agencies as investors? Don Collins is available for contact 24 hours per day 7 days a week (714-585-5092 cell) to answer questions regarding the institutional bond markets. This number is available to the investment officer, coworkers and the agencies constituents. My philosophy regarding the investment ofMunicipal reserve funds: any and all ideas must pass the flow chart of A: California state code of investing (53601), B: The City of Encinitas investment policy (Safety, Liquidity, Return), and C:Does it withstand the "Fiduciary responsibility" and "prudent-man" concept and adhere to the client's investment policy. Our client relationships are one of our most valuable assets. We recognize that our client base is comprised of those entities requiring various levels of involvement in the constantly developing market of fixed income investments available today. There are those individuals whose sole function is portfolio management and yield enhancement who are intimately aware of both market movement and product development. Accordingly, we are prepared to accommodate each client in direct proportion to their level of need and experience and to participate, as necessary, in the broadening of their level of knowledge in a sometimes seemingly complex marketplace. When dealing with a client, Wedbush Securities requires the following infor- mation: • Most recent audited financial statements • Trading authorization or authorizing Resolution from local governing body for customer's investment personnel • Customer's investment policy • DVPAgreement • All trades done on a competitive basis • All trades reviewed by principal for appropriateness • No discretionary accounts for `public funds" clients 2016-08-24 Item 813 73 of 108 Attachment 5 • All monthly statement reviewed by a principal for excessive activity • All trades telephonically confirmed same day with customer by a third party in our operations department. • No reverseRepo's • All settlements are DVP • Experienced Account Executives and Traders 20. Have you or your firm been censored or punished by a regulatory State or Federal agency for improper or fraudulent, activities related to the sale of government securities or money market instruments? Have any of the Firm's employees ever been so investigated? Institutional Fixed Income Securities -No. Sales to any Public Entity—No Wedbush Securities has not and is not involved in any pending action regarding public sector accounts and institutional fixed income trading. Wedbush Secu- rities has been in business since 1955 and has had a number of claims from re- tail equity sales. Please refer to the FINRA website for a complete list of com- plaints. Wedbush Morgan CRD#877 Wedbush Morgan SEC#8-12987 Don Collins CRD#1728413 21. If yes, explain. Has a public-sector client ever claimed in writing that your firm was responsible for investment losses?No 22. Please indicate and provide evidence of the current licensing status of the City's Representatives:Finra Broker Check report attached Passed 3 Exams) Principall Supervisory Exam Registered Options Principal Examination Series 4 0310911994 General lndustry/Product Exam General Securities Representative Examination Series 7 0111 611 988 State Securities Law Exam Uniform Securities Agent State Law Examination Series 63 0911511987 Passing a qualifying exam, together with a current FINRA registration, enables a broker to engage in specific activities. Learn more about FINRA exams and reg- istration requirements. Registered with 18 Self-Regulatory Organizations) FINRA and]7 additional self-regulatory organizations 2016-08-24 Item 813 74 of 108 Attachment 5 23. Is your Firm a member of the NASD/FINRA? Does it subscribe to the `Rules of Fair Practice?' Yes, Yes. Please see Broker Check Attachment. I have completed and am returning the Broker/Dealer Questionnaire and Certification, and have read, signed and retained for our files, a copy of the City of Encinitas Statement of Investment Policy. BROKER/DEALER J90jr 64/50 By: Don Collins Title: SVP Capital Markets Date: 7-19-2016 2016-08-24 Item 813 75 of 108 Attachment 5 CITY OF ENCINITAS CERTIFICATION OF UNDERSTANDING By responding to this questionnaire you acknowledge that: 1. You have read and are familiar with the City's Investment Policy as well as applica- ble Federal and State laws. 2. You meet the requirements as outlined in the City's Investment Policy. 3. You agree to make every reasonable effort to protect the assets of the City from loss. 4. You agree to notify the City, in writing, of any potential conflicts of interest. 5. You agree to notify the City, in writing, of any changes in personnel with deci- sion-making authority over the City's funds within 24 hours of such event. Failure to submit a Certification of Understanding shall result in the withdrawal by the City of all funds held by the financial institution or investment manager and the immediate revocation of any rights to act as an agent of the City for the purchase of securities of investment of funds on behalf of the City. The City Council is committed to the goals of a Community Reinvestment Act (CRA). As part of the certification process for depository institutions, it is requested that you remit evi- dence of your most recent CRA rating. Signed: Date: Print Name and Title: After reading and signing this Certification of Understanding, please return with any supporting documentation to: Tim Nash, Director of Finance/Treasurer City of Encinitas 505 S. Vulcan Ave. Encinitas, CA 92024 tnash ,encinitasca.gov City of Encinitas use only: Approved: Disapproved: Date: Signature: 2016-08-24 Item 8D 76 of 108 Attachment 5 Date Notification sent: Sent by: Statement of Investment Policy for the City of ENCINITAS Effective: October 23, 2013 I have received and read the City of Encinitas investment policy dated October 23, 2013. Signed: Date: Print Name and Title: After reading and signing this receipt of Investment Policy, please return to: Tim Nash, Director of Finance/Treasurer City of Encinitas 505 S. Vulcan Ave. Encinitas, CA 92024 tnash ,encinitasca.gov 2016-08-24 Item 813 77 of 108 Attachment 5 _i CITY OF ENCINITAS, CALIFORNIA FINANCE DEPARTMENT BROKER/DEALER QUESTIONAIRE AND CERTIFICATION 1. Name of Firm Raymond James&Associates. Inc. 2. Address Local National Headquarters 28202 Cabot Rd., Suite 300 880 Carillon Parkway Laguna Niguel. CA 92677 St. Petersburg,FL 33716 3. Telephone No. (949) 365-5850 4. Primary Representative Manager/Partner-in-Charge Name Rosa Schulte Don Hughes Title Sr. Vice President,Fixed Managing Director/Branch Manager, Income Sales Fixed Income Sales Telephone (949) 365-5850 (415)616-8015 No. of Years in Institutional Sales 15 years 23 years No.of Years with Firm 15 years 15 years 5. Are you a Primary Dealer in U.S Government Securities? No. 6. Are you a Regional Dealer in U.S. Government Securities? Yes. 7. Are you a Broker instead of a Dealer, i.e. You DO NOT own positions of Securities? Raymond James&Associates. Inc. is a Broker/Dealer. 2016-08-24 Item 813 78 of 108 Attachment 5 8. Are you a Registered Municipal Advisor? Yes 9. What is the net capitalization of your Firm? $422,926,996 10. What is the date of your Firm's fiscal year-end? September 30 11. If you are a depository institution,please provide the following and most current certified and audited information: N/A A.Tangible,Core,and Risk-Based Capital Ratios B. CRA Rating 12. Is your Firm owned by a Holding Company?If so,what is its name and net capitalization? Yes. Raymond James and Associates, Inc. is a wholly-owned subsidiary of Raymond James Financial,Inc. Rmond James Financial ("RJF") is not a broker-dealer and therefore there is no netcat3ital calculation or requirement for RJF. As a Financial Holding Company we do, however, calculate Tier 1 capital ratios which are disclosed in Note 20 of our 100. As of March 31 2016.the Tier 1 capital ratio of RJF was 20.9%as compared to a Minimum requirement of 6% to be considered well-capitalized. For additional information, please see www.raymondiames.com. 13. Please provide your Wiring_and Delivery Instructions. Please see attached. 14. Which of the following instruments are offered regularly by your local desk? [x]T-Bills [x]Treasury Notes/Bonds [x] Discount Notes [x]NCD'S [x]Agencies(specify)FHLB, FNMA,FHLMC,FFCB,GNMA,TVA, SLMA, PEFCO [x] BAs(Domestic) []BAs(Foreign) [x]Commercial Paper[x] Mid-Term Notes [] Repurchase Agreements []Reverse Repurchase Agreements [x] CMO's [x] Asset Backed Investments [x] Mutual Funds [x] Other Investments as Authorized by Section 53600 of the Government Code 15. Which of the above does your Firm specialize in Marketing? Raymond James &Associates Inc specializes in all of the instruments listed above,with special emphasis on Agencies Commercial Paper Corkorate Bonds Taxable Municipals Supranationals, and CDs. 2016-08-24 Item 813 79 of 108 Attachment 5 16. Please identify your most directly comparable City Local Agency clients in our geographical area. Entity Contact Person Telephone No. Client Since City of Carlsbad Craig Lindholm 760-602-2474 10/04 City of San Clemente Mark Taylor 949-369-2525 1/01 City of Irvine(through United Kevin Klingel 614-885-7596 8/08 American Capital) 17. What reports, transactions, confirmations and documents would we receive? Will they be in electronic form? Raymond James&Associates. Inc.provides standard confirmations-comparisons, e customer statements and letters (when applicable). In addition to hard copy confirmations, we also send a trade ticket at the time of the trade via Bloomberg's BXT/SXT function. 18. Please include sample of research reports or market information that your firm regularly provides to local agency clients. Please include sample Daily Offering sheets with your proposal. See enclosed. 19. What precautions are taken by your Firm to protect the interest of the public when dealing with government agencies as investors? In order to protect the interest of the public when dealing with government agencies as investors,Raymond James&Associates,Inc. has comprehensive policies and procedures for risk management covering credit trading, sales ales practices, legal,compliance,and operations. Investment Policies are reviewed and kept on file by the sales representative and branch manager. Trading is reviewed by sales and trading management on an on-going basis to ensure that Investment Policy parameters are met. Raymond James&Associates also requires evidence of trading authority from our public accounts. Lastly. Raymond James&Associates clears securities on a delivery versus payment(DVP)basis. 20. Have you or your Firm been censured, sanctioned or disciplined by a Regulatory, State or Federal Agency for improper or fraudulent activities, related to the sale of securities within the last five years? (CIRCLE ONE) J Yes No Please note that Ms. Schulte has neither been censored nor punished by any Regulatory, State or Federal agency for improper or fraudulent activities related to the sale of securities. 21. If yes,please explain: Please see attached disclosures. 2016-08-24 Item 813 80 of 108 Attachment 5 22. Please indicate and provide evidence of the current licensing status of the City's representatives: Agent: Licenses or Registration: Rosa Schulte 7,63,65 23. Is your Firm a member of the NASD? Yes. Does it subscribe to the"Rules of Fair Practice?" YS.& 1 have completed and am returning the Broker/Dealer Questionnaire and Certification, and have read, signed and retained for our files, a copy of the City of Encinitas Statement of Investment Policy. BROKER/DEALER EMond James&Associates. Inc. By: Schulte Title: Senior Vice President Fiad Income Sales Date: July 19.2016 2016-08-24 Item 813 81 of 108 Attachment 5 CITY OF ENCINITAS CERTIFICATION OF UNDERSTANDING By responding to this questionnaire you acknowledge that: 1. You have read and are familiar with the City's Investment Policy as well as applicable Federal and State laws. 2. You meet the requirements as outlined in the City's Investment Policy. 3. You agree to make every reasonable effort to protect the assets of the City from loss. 4. You agree to notify the City,in writing,of any potential conflicts of interest. 5. You agree to notify the City, in writing, of any changes in personnel with decision- making authority over the City's funds within 24 hours of such event. Failure to submit a Certification of Understanding shall result in the withdrawal by the City of all funds held by the financial institution or investment manager and the immediate revocation of any rights to act as an agent of the City for the purchase of securities of investment of funds on behalf of the City. The City Council is committed to the goals of a Community Reinvestment Act (CRA). As part of the certification process for depository institutions, it is requested that you remit evidence of your most recent CRA rating. Signed: Date: I& 12016 Print Name an Titic: Rosa Schulte—Senior MjM President Fixed i am After reading and signing this Certification of Understanding, please return with any supporting documentation to: Tim Nash, Director of Finance/Treasurer City of Encinitas 505 S.Vulcan Ave. Encinitas,CA 92024 tnash r)rrtcinitasca.¢ov City of Encinitas use only: Approved: Disapproved: Date: Signature: Date Notification sent: Sent by- 2016-08-24 Item 813 82 of 108 Attachment 5 Statement of Investment Policy for the City of ENCINITAS Effective: October 23. 2013 1 have received and read the City of Encinitas investment policy dated October 23,2013. Signed: Date: July 18.2016 Print Name itle: ito lice-So=Vice President Fixed hw nc Sales After reading and signing this receipt of Investment Policy, please return to: Tim Nash, Director of Firmwe/Treasurer City of Encinitas 505 S.Vulcan Ave. Encinitas,CA 92024 tnasWa-kociniuma.¢ov I 2016-08-24 Item 813 83 of 108 Attachment 5 CITY OF ENCINITAS, CALIFORNIA FINANCE DEPARTMENT BROKER/DEALER QUESTIONAIRE AND CERTIFICATION 1. Narne of Firm _Stifel,Nicolaus and Company 2. Address Local National Headquarters 30448 Rancho Viejo Rd _501 North Broadway Suite 110 San Juan Capistrano, CA 92675 St. Louis, MO 63102 3. Telephone No. _949-234-2349 4. Primary Representative Manager/Partner-in-Charge Name Bill Blackwill Brant MCDuffle Title _Managing Director Exec. Managing Director_ Telephone _949-234-2349 _205-414-3355 No. of Years in Institutional Sales 30 27 No. of Years with Fhm 3 2 5. Are you a Primary Dealer in U.S Govertnnent Securities? _No 6. Are you a Regional Dealer in U.S. Government Securities? _Yes 7. Are you a Broker instead of a Dealer, i.e. You DO NOT own positions of Securities?No 2016-08-24 Item 813 84 of 108 Attachment 5 8. Are you a Registered Municipal Advisor? 9. What is the net capitalization of your Firm? $ 399,761,984 10. What is the date of your Firm's fiscal year-end? 12/31 It. If you are a depository institution,please provide the following and most current certified and audited information: A.Tangible, Core,and Risk-Based Capital Ratios B. CRA Rating 12. Is your Firm owned by a Holding Company? If so,what is its name and net capitalization? Yes, Stifel Financial,N/A 13. Please provide your Wiring and Delivery Instructions. Please see attached 14. Which of the following instruments are offered regularly by your local desk? [x] T-Bills [x] Treasury Notes/Bonds [x] Discount Notes [] NCD'S [x] Agencies(specify)x FHLB,x FNMA,x FHLMC,xFFCB, GNMA,TVA, SLMA [] BAs(Domestic) []BAs(Foreign) []Commercial Paper[x] Mid-Term Notes [] Repurchase Agreements [] Reverse Repurchase Agreements [x] CMO's [x]Asset Backed Investments [] Mutual Funds [] Other Investments as Authorized by Section 53600 of the Govermnent Code 15. Which of the above does your Fit-in specialize in Marketing? FNMA, FHLMC, FHLB, FFCB & FAMCA 2016-08-24 Item 813 85 of 108 Attachment 5 16. Please identify your most directly comparable City Local Agency clients in our geographical area. Entity Contact Person Telephone No. Client Since City of Carlsbad Craig Lindholm 760-602-2473 10+years City of Oceanside Renee Bojorquez 760-435-3551 10+years City of Huntington Beach AlisaCutcheon 714-536-5299 10+years 17. What reports, transactions, confirmations and documents would we receive? Will they be in electronic form? Stifel will send out a confirmation on the day a trade is executed. You will also receive a monthly statement if there is activity in the account. If there is no activity in the account, Statements are sent out quarterly unless you opt out of these requirements. 18. Please include sample of research reports or market information that your firm regularly provides to local agency clients. Please include sample Daily Offering sheets with your proposal. 19. What precautions are taken by your Firm to protect the interest of the public when dealing with government agencies as investors? As a major regional firm and active participant in the fixed income capital markets, Stifel strives to provide the best possible execution for its clients. Our traders monitor market conditions constantly, via direct contact with other broker/dealer firms and intermediaries. In addition, our traders have access to a wide variety of electronic market news and price information related to specific securities throughout the day. Prior to executing client transactions, Stifel traders evaluate info available at the time and seek to provide clients with the best possible execution. 20. IHave you or your Firm been censured, sanctioned or disciplined by a Regulatory, State or Federal Agency for improper or fi•audulent activities, related to the sale of securities within the last five years? (CIRCLE ONE) Yes No X 21. If yes, please explain: 2016-08-24 Item 813 86 of 108 Attachment 5 22. Please indicate and provide evidence of the current licensing status of the City's representatives: Agent: Licenses or Registration: Bill Blackwill 6, 7, 63, 65 Hilary Neiman 6, 7, 63 23. Is your Firm a member of the NASD? Does it subscribe to the"Rules of Fair Practice?" Yes I have completed and am returning the Broker/Dealer Questionnaire and Certification, and have read, signed and retained for our files, a copy of the City of Encinitas Statement of Investment Policy. BROKER/DEALER By Title: l t c i ( S iC� If EC ,�ti f u,.t 0" yr 1 Date: ( f d ( 2016-08-24 Item 813 87 of 108 Attachment 5 CITY OF ENCINITAS CERTIFICATION OF UNDERSTANDING By responding to this questionnaire yon acknowledge that: I. Yon have read and are familiar with the City's Investment Policy as well as applicable Federal and State laws. 2. You meet the requirements as outlined in the City's Investment Policy. 3. You agree to make every reasonable effort to protect the assets of the City from loss. 4. You agree to notify the City, in writing,of any potential conflicts of interest. 5. You agree to notify the City, in writing, of any changes in personnel with decision- making authority over the City's funds within 24 hours of such event. Failure to submit a Certification of Understanding shall result in the withdrawal by the City of all funds held by the financial institution or investment manager and the immediate revocation of any rights to act as an agent of the City for the Purchase of securities of investnent of funds on behalf of the City. The City Council is corn pitted to the goals of a Connuunity Reinvestunent Act (CRA). As part of the certification process for depository institutions, it is requested that you remit evidence of your most recent CRA rating. f Signed: �/ Date: b Print Name and Title: h +4 9'�of Yj 4,4 After reading and signing this Certification of Understanding, please return with any supporting docunnentation to: Tinn Nash, Director of Finance/Treasurer City of Encinitas 505 S. Vulcan Ave. Encinitas,CA 92024 Wash c,euciuitasca.gov City of Encinitas use only: Approved: Disapproved: Date: Signature: Date Notification sent: Sent by: 2016-08-24 Item 8D 88 of 108 Attachment 5 Statement of Investment Policy for the City of ENCINITAS Effective: October 23, 2013 I have received and read the City of Encinitas investment policy dated October 23, 2013. Signed: ( � Date: '2 l (J" 4 Prin m Cl tNa eandTitle: t l'l tc� e After reading and signing this receipt oflnvestment Policy, please return to: Tim Nash, Director of Finance/Treasurer City of Encinitas 505 S. Vulcan Ave. Encinitas, CA 92024 Wash aencinitasca gov 2016-08-24 Item 813 89 of 108 Attachment 5 CITY OF ENCINITAS, CALIFORNIA FINANCE DEPARTMENT BROKER/DEALER QUESTIONAIRE AND CERTIFICATION 1. Name of Finn: Vining Sparks IBG, L.P. 2. Local Address: National Headquarters: 2107 Elliot Avenue, Suite 205 775 Ridge Lake Blvd, Suite 200 Seattle, WA 98121 Memphis, TN 38120 3. Telephone No. (206) 443-7260 (901) 766-3000 (800) 357-0260 (800) 829-0321 4. Primary Representative Manager/Partner-in-Charge Name: Josh Gorham Mark Stahl Title: Vice President SVP& Branch Manager Telephone: (206) 443-7260 (206) 443-7258 No. of Years in Institutional Sales: 4+years 24 years No. of Years with Firm: 3 years 24 years 5. Are you a Primary Dealer in U.S Government Securities? No 6. Are you a Regional Dealer in U.S. Government Securities? Yes 7. Are you a Broker instead of a Dealer, i.e. You DO NOT own positions of Securities? We are a broker/dealer. 8. Are you a Registered Municipal Advisor? No. Vining Sparks is a FINRA registered broker-dealer and currently does not intend to register as a municipal advisor, although the firm would like to continue to conduct arms-length commercial transactions with governmental clients or through the client's Independent Registered Municipal Advisors(IRMA). Vining Sparks obtains a Bond Proceeds Certification in order to comply with the SEC Municipal Advisor and MSRB Rules when conducting securities transactions directly with governmental clients,primarily affirming that none of the funds invested through the clients'account(s)with Vining Sparks constitute "proceeds of municipal securities"and "municipal escrow investments"as defined within the Municipal 2016-08-24 Item 813 90 of 108 Attachment 5 Advisor Rule. if the governmental client posts publically on their website notice of the retention of an IRMA for purposes of the Municipal Advisor Rule, Vining Sparks relies on the notice for purposes of compliance with the rule. 9. What is the net capitalization of your Firm? $ 62,993,906 as of 1213112015 10. What is the date of your Firm's fiscal year-end? 12131 11. If you are a depository institution,please provide the following and most current certified and audited information: N/A A.Tangible,Core, and Risk-Based Capital Ratios B. CRA Rating 12. Is your Firm owned by a Holding Company? If so, what is its name and net capitalization? Vining Sparks is not owned by a holding company. Vining Sparks is independently owned. 13. Please provide your Wirin and Delivery Instructions. Please see attached wiring and delivery instructions. 14. Which of the following instruments are offered regularly by your local desk? [x] T-Bills [x] Treasury Notes/Bonds [x] Discount Notes [x] NCD'S [x] Agencies(specify) [x] FHLB, [x] FNMA, [x]FHLMC, [x]FFCB, [x]GNMA, [x]TVA, [x]SLMA, [x] BAs (Domestic), []BAs (Foreign) [x]Commercial Paper [x] Mid-Term Notes [*] Repurchase Agreements [] Reverse Repurchase Agreements [x] CMO's [x] Asset Backed Investments [x] Mutual Funds [] Other Investments as Authorized by Section 53600 of the Government Code *While Vining Sparks does not directly offer the service of repurchase agreement transactions with our customers, we have made arrangements with a third party to handle repos for our customers who need them. This arrangement requires each referred customer to enter into a formal agreement between itself and the repo counterparty. 15. Which of the above does your Firm specialize in Marketing? Government and Agency securities are the areas we are best known for from a total- market volume standpoint, resulting in rankings as a major market participant by Bloomberg and other information services. The next largest areas of specialty are mortgage-backed securities and municipals. We have leading secondary and underwriting trading desks in CDs, corporate bonds, taxable municipal bonds, treasuries, and agency securities. Moreover, we actively hold inventory in all securities that we actively trade." 2016-08-24 Item 813 91 of 108 Attachment 5 16. Please identify your most directly comparable City Local Agency clients in our geographical area. Entity Contact Person Telephone No. Client Since Citv of South Gate, CA Nellie Ruiz 323-563-9523 3 years City of Folsom, CA John Donoghue 916-355-7334 1 Year Costa Mesa Water Dist., CA Andrew Hamilton 949-574-1022 1 year - City of Rancho Palos Verdes,CA Deborah Cullen 310-377-0360 4 months Ci of Elk Grove, CA Brad Koelui 916-627-3221 2 months 17. What reports, transactions, confirmations and documents would we receive? Will they be in electronic form? A confirmation of every transaction is provided to the customer's designated contact person. Duplicate confirmations may be sent to any other persons as requested by the customer. On a monthly basis, a statement summarizing the prior month's activity is provided to each customer whose account was active. In addition, we provide various customized reports on an as-requested basis. Trade confirmations are transmitted via U.S. mail. Customers whose account information includes a DTC ID, receive(or their correspondent receives) electronic DTCID confirmation. Customers can also access their trade confirmations via our website, www.VininkSparks.eom. 18. Please include sample of research reports or market information that your firm regularly provides to local agency clients. Please include sample Daily Offering sheets with your proposal. Vining Sparks offers a range of investment tools and information to assist with portfolio management. Please see the attached research samples entitled "The Market Today," "Weekly Recap," "Strategic Insight,"and "Bond Marketplace Matrix." Additional reports are available online or for receipt at the City's request. See attached Daily Offering Sheet. 19. What precautions are taken by your Firm to protect the interest of the public when dealing with government agencies as investors? Vining Sparks typically requires that a copy of the public entity's investment policy be on file prior to the execution of the first trade. A FINRA-licensed principal in our Compliance department monitors this requirement via a daily review of all activity by public sector clients. The Compliance principal also reviews general activity in the accounts for overall adherence to the stated investment policy parameters; however, each individual account representative is ultimately responsible for conducting business in accordance with the public entity's prescribed policy objectives. 20. Have you or your Firm been censured, sanctioned or disciplined by a Regulatory, State or Federal Agency for improper or fraudulent activities,related to the sale of securities within the last five years? (CIRCLE ONE) Yes No "Vining Sparks Regulatory History,"which provides a summary of our regulatory history, is attached. 21. If yes,please explain: 2016-08-24 Item 813 92 of 108 Attachment 5 22. Please indicate and provide evidence of the current licensing status of the City's representatives: Agent: — Licenses ar Registration: Josh Gorham, Vice President Series 7 and Series 63 ` Mark Stahl, SVP and Branch Manager Series 7, 24, 79 and 63 See attached Broker Check Reports. 23 Is your Firm a member of the NASD? Does it subscribe to the"Rules of Fair Practice?" As a FINRA (which was formerly the NASD) member, we do subscribe to the "Rules of Fair Practice." I have completed and am returning the Broker/Dealer Questionnaire and Certification, and have read, signed and retained for our files, a copy of the City of Encinitas Statement of Investment Policy, BROKER/DEALER: VINING SPARKS IBG,L.P. By: YJOGorham Title: VieePresideni Data: July 19, 2016 2016-08-24 Item 813 93 of 108 Attachment 5 CITY OF ENCINITAS CERTIFICATION OF UNDERSTANDING By responding to this questionnaire you acknowledge that. 1. You have read and are familiar with the City's Investment Policy as well as applicable Federal and State laws. 2. You meet the requirements as outlined in the City's Investment Policy. 3 You agree to make every reasonable effort to protect the assets of the City from loss. 4. You agree to notify the City, in writing, of any potential conflicts of interest. 5, You agree to notify the City, in writing, of any changes in personnel with decision- making authority over the City's funds within 24 hours of such event. Failure to submit a Certification of Understanding shall result in the withdrawal by the City of all funds held by the financial institution or investment manager and the immediate revocation of any rights to act as an agent of the City for the purchase of securities of investment of funds on behalf of the City. 'rhe City Council is committed to the goals of a Community Reinvestment Act (CRA). As part of the cer[itication process far deposit y institutions, it is requested that you remit evidence of your most recent CRA rating. Signed: — - Date: Print Name and Title; josh Gurhgm.Yiese Prow e t After reading and signing this Certification of Understannding, please return with any supporting documentation to: _ Tim Nash, Director of Financen'teasurer City of Encinitas 505 S. Vulcan Ave. Encinitas, CA 92024 tnash@a encinitasca.gov City of Encinitas use only: Approved: Disapproved: Date: Signature: Date Notification sent: Sent by: 2016-08-24 Item 811) 94 of 108 Attachment 5 Statement of Investment Policy for the City of ENCINITAS Effective: October 23, 2013 I have received and read the City of Encinitas investment policy dated October 23, 2013. Signed: Date: Print Name and Title. Josh Gorham,Vicc Preaidept ��"TT�� After reading and signing this receipt of Investment Policy,please return to: Tim Nash, Director of Finance/Treasurer City of Encinitas 505 S. Vulcan Ave. Encinitas,CA 92024 n1aa,hi2Dencinitasca Aov 2016-08-24 Item 8D 95 of 108 Attachment 5 i CITY OF ENCINITAS, CALIFORNIA FINANCE DEPARTMENT BROKER/DEALER QUESTIONAIRE AND CERTIFICATION 1. Name of Firm Wells Fargo Securities, LLC 2. Address Local National Headquarters 400 Capitol Mall, Suite 703 550 South Tryon Street, 6 Floor Sacramento, CA 95814-5208 Charlotte, NC 28202 3. Telephone No. 916-440-4903 4. Primary Representative Back-up Representative Name John Williams Tony Garcia Title Institutional Brokerage Institutional Brokerage Sales Representative Sales Representative Telephone 916-440-4903 916-440-4997 Manager/Partner-in-Charge Name Joseph Celentano Title Institutional Regional Sales Manager Telephone 415-644-9430 John Williams No. of Years in Institutional Sales 15 years No. of Years with Firm 15 years Tony Garcia 2016-08-24 Item 813 96 of 108 Attachment 5 No. of Years in Institutional Sales 30+pears No. of Years with Firm 21 years 5. Are you a Primary Dealer in U.S Government Securities? YES 6. Are you a Regional Dealer in U.S. Government Securities? NO 7. Are you a Broker instead of a Dealer, i.e. You DO NOT own positions of Securities? NO 8. Are you a Registered Municipal Advisor? NO 9. What is the net capitalization of your Firm? $ WFS is subject to the Uniform Net Capital Rule 150-1 (the Rule)under the Securities Exchange Act of 1934. WFS has elected to compute net capital under the alternative provisions of the Rule, which require WFS to maintain net capital equal to the greater of $1,000,000 or 2% of aggregate debit items arising from customer transactions. At May 31, 2016, WFS had net capital of$3,597,427,479 which was 56% of aggregate debit items and which exceeded the minimum net capital requirement of$831,849,148 by $2,765,578,331. 10. What is the date of your Firm's fiscal year-end? 12/31 11. If you are a depository institution, please provide the following and most current certified and audited information: Not Applicable A. Tangible, Core, and Risk-Based Capital Ratios B. CRA Rating 12. Is your Firm owned by a Holding Company? If so, what is its name and net capitalization? Wells Fargo Securities, LLC is a wholly owned indirect subsidiary of Wells Fargo & Companv (WFC). The 12/31/2015 Annual Report for WFC is available at this link: https://wwwO8.wellsfargomedia.com/assets/ydf/about/investor-relations/annual- reports/2015-annual-report.ydf 13. Please provide your Wiring and Delivery Instructions. Please see attached Wiring and Delivery Instructions 2016-08-24 Item 813 97 of 108 Attachment 5 14. Which of the following instruments are offered regularly by your local desk? [X ] T-Bills [X ] Treasury Notes/Bonds [X ] Discount Notes [X] NCD'S [X] Agencies (specify [ ] BAs (Domestic) *FHLB, *FNMA, *FHLMC, *FFCB,*TVA, [ ]BAs (Foreign) [X]Commercial Paper [X]Reverse Repurchase Agreements [X] Mid-Term Notes [X]Repurchase Agreements [X] CMO's [X] Asset Backed Investments [X] Mutual Funds [ ] Other Investments as Authorized by Section 53600 of the Government Code 15. Which of the above does your Firm specialize in Marketing? Wells Fargo Securities specializes in marketing the instruments above marked with X. 16. Please identify your most directly comparable City Local Agency clients in our geographical area The following public entities are clients of Wells Fargo Securities. Per firm policy, WFS does not disclose customer identities or other information. City of San Diego City of Oceanside City of Manhattan Beach San Diego County Ventura County 17. What reports, transactions, confirmations and documents would we receive? Will they be in electronic form? WFS provides awritten confirmation of each trade. However, in conjunction with Rule 1Ob-10(b)from the Securities and Exchange Commission which allows for alternative periodic reporting, WFS does not send written confirmations for monev market mutual fund transactions, including purchases, redemptions, dividends and dividend reinvestments. Customers also receive a monthly statement for months in which there is trade activity. Customers may elect to receive their statements through the Commercial Electronic Office® (CEO®) online business portal, or through U.S. mail. Customers may receive additional documentation without request, depending on the type of transaction. 18. Please include sample of research reports or market information that your firm regularly provides to local agency clients. Please include sample Daily Offering sheets with your proposal. 2016-08-24 Item 813 98 of 108 Attachment 5 WFS customers may request access to a variety of proprietary Wells Fargo research and economics information through www.wellsfargoresearch.com. 19. What precautions are taken by your Firm to protect the interest of the public when dealing with government agencies as investors? WFS is familiar with the investment requirements and constraints of governmental agencies. Our mutual understanding is that your representatives who are authorized to act on vour behalf with respect to your account have primary responsibility for comylving with the Investment Policy's investment guidelines and state and local laws governing the investment of public funds. We will assist you in complying with those investment guidelines by recommending investments which we reasonablv believe to comply with those guidelines in compliance with applicable rules and regulations. 20. Have you or your Firm been censured, sanctioned or disciplined by a Regulatory, State or Federal Agency for improper or fraudulent activities, related to the sale of securities within the last five years? (CIRCLE ONE) Yes No Wells Fargo Securities, LLC (WFS) is a whollv owned indirect subsidiary of Wells Fargo & Company that is registered with the U.S. Securities and Exchange Commission (SEC) as a broker-dealer and is the subject of civil litigation and regulatory investigations from time to time in conjunction with its securities business. WFS is required to report certain litigation, arbitration and regulatory matters and provide information concerning its executive officers to the SEC on Form BD. A copv of Form BD for WFS can be obtained from the SEC by submitting a written request to the U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy, 100 F Street N.E., Washington, D.C. 20549-0213 or requested by e-mail at PublicInfoAsec.Rov. WFS is a Financial Industry Regulatory Authoritv("FINRA") member and information regarding its executive officers and certain litigation, arbitration and regulatory matters involving WFS is also available through FINRA BrokerCheck at http://www.finra.org/. 21. If yes, please explain: 22. Please indicate and provide evidence of the current licensing status of the City's representatives: Please see attached BrokerCheck report for John Williams and Tonv Garcia. Agent: Licenses or Registration: 2016-08-24 Item 8D 99 of 108 Attachment 5 23. Is your Firm amember of the NASD? Does it subscribe to the "Rules of Fair Practice?" Yes. Registration can be viewed online at: http://brokercheck.finra.om/ I have completed and am returning the Broker/Dealer Questionnaire and Certification, and have read, signed and retained for our files, a copy of the City of Encinitas Statement of Investment Policy. BROKER/DEALER By: Joseph P. Celentano Title: Manager&Director—US Western Region Date: 7/22/16 2016-08-24 Item 813 100 of 108 Attachment 5 CITY OF ENCINITAS CERTIFICATION OF UNDERSTANDING By responding to this questionnaire you acknowledge that: 1. You have read and are familiar with the City's Investment Policy as well as applicable Federal and State laws. 2. You meet the requirements as outlined in the City's Investment Policy. 3. You agree to make every reasonable effort to protect the assets of the City from loss. 4. You agree to notify the City, in writing, of any potential conflicts of interest. 5. You agree to notify the City, in writing, of any changes in personnel with decision- making authority over the City's funds within 24 hours of such event. Failure to submit a Certification of Understanding shall result in the withdrawal by the City of all funds held by the financial institution or investment manager and the immediate revocation of any rights to act as an agent of the City for the purchase of securities of investment of funds on behalf of the City. The City Council is committed to the goals of a Community Reinvestment Act (CRA). As part of the certification process for depository institutions, it is requested that you remit evidence of your most recent CRA rating. Signed: Date: Print Name and Title: After reading and signing this Certification of Understanding, please return with any supporting documentation to: Tim Nash, Director of Finance/Treasurer City of Encinitas 505 S. Vulcan Ave. Encinitas, CA 92024 trash ,encinitasca.¢ov City of Encinitas use only: Approved: Disapproved: Date: Signature: Date Notification sent: Sent by: 2016-08-24 Item 8D 101 of 108 Attachment 5 Statement of Investment Policy for the City of ENCINITAS Effective: October 23, 2013 I have received and read the City of Encinitas investment policy dated October 23, 2013. Signed: Date: 7/22/16 Print Name and Title: Joseph P. Celentano,Manager&Director—US Western Region After reading and signing this receipt of Investment Policy,please return to: Tim Nash, Director of Finance/Treasurer City of Encinitas 505 S. Vulcan Ave. Encinitas, CA 92024 trash ,encinitasca.gov 2016-08-24 Item 813 102 of 108 Attachment 5 Or__. ._ . 1 CITY OF ENCINITAS, CALIFORNIA FINANCE DEPARTMENT BROKER/DEALER QUESTIONAIRE AND CERTIFICATION 1, Name of Firm Union Bank Investment Services ("UBIS") 2. Address Local National Headquarters 445 S. Figueroa Street 11th Floor 800 North Brand Blvd Los Angeles, CA 90071 Glendale, CA 91203 3. Telephone No. 213-236-7070 4. Primary Representative Manager/Partner-in-Charge Name Mark Krevmer Shane Triplett Title Vice President Managing Director Telephone 213-236-7070 213-236-6120 No. of Years in Institutional Sales 15 28 No. of Years with Firm 15 12 5. Are you a Primary Dealer in U.S Government Securities? No 6. Are you a Regional Dealer in U.S. Government Securities? Yes 7. Are you a Broker instead of a Dealer, i.e. You DO NOT own positions of Securities?No, UBIS acts as both Broker and Dealer 2016-08-24 Item 813 103 of 108 Attachment 5 & Are you a Registered Municipal Advisor? No 9. What is the net capitalization of your Firm? $133,161,092 10. What is the date of your Firm's fiscal year-end? 3/31 11. If you are a depository institution,please provide the following and most current certified and audited information: See Attached A. Tangible,Core,and Risk-Based Capital Ratios B. CRA Rating 12. Is your Firm owned by a Holding Company? If so, what is its name and net capitalization? UnionBanc Investment Services,LLC is a wholly owned subsidiary of MUFG Union Bank a $115B domestic bank, itself owned by Mitsubishi UFJ Financial Group. 13. Please provide your Wiring and Delivery instructions. See Attached 14. Which of the following instruments are offered regularly by your local desk? [X] T-Bills [X] Treasury Notes/Bonds [X ] Discount Notes [X] NCD'S [X]Agencies(specify) FHLB,FNMA, FHLMC, FFCB,GNMA, TVA, SLMA [X] BAs(Domestic) [X]BAs(Foreign) [X]Commercial Paper[X] Mid- Term Notes [X] Repurchase Agreements [X] Reverse Repurchase Agreements [X] CMO's [X]Asset Backed Investments [X] Mutual Funds [X] Other Investments as Authorized by Section 53600 of the Government Code 15. Which of the above does your Firm specialize in Marketing? T-bills Treasury Notes Bonds Discount Notes, NCD's,Agencies 2016-08-24 Item 813 104 of 108 Attachment 5 16. Please identify your most directly comparable City Local Agency clients in our geographical area. Entity Contact Person Telephone No. Client Since City of Carlsbad Craig Lindholm 760-608-2473 2013 County of Riverside Giovanne Pizano 951-955-3944 2015 Imperial County Suzanne Bermudez 442-265-1253 2015 17. What reports, transactions, confirmations and documents would we receive? Will they be in electronic form? At the inception of a trade the customer receives a trade ticket immediately via either email or facsimile as well as supporting documents from Bloomberg (cash flow statements, call schedules, yield analvsis). 18. Please include sample of research reports or market information that your firm regularly provides to local agency clients. Please include sample Daily Offering sheets with your proposal. See Attached 19. What precautions are taken by your Firm to protect the interest of the public when dealing with government agencies as investors? UBIS and Mark Krevmer have a long history of serving public funds. The salesperson is well-versed in the details of the CA Gov't Investment code 53601 and the Countv's Investment Policy so as to offer securities within the purview of each document. 20. Have you or your Firm been censured, sanctioned or disciplined by a Regulatory, State or Federal Agency for improper or fraudulent activities related to the sale of securities within the last five years? (CIRCLE ONE) Yes No 21. If yes, please explain: N/A 2016-08-24 Item 813 105 of 108 Attachment 5 22. Please indicate and provide evidence of the Current licensing status of the City's representatives: Agent: Licenses or Registration: Mark Kreymer, CRD#4377658 Series 7.63 23. Is your Firm a member of the NASD? Does it subscribe to the"Rules of Fair Practice?" Yes I have completed and am returning the Broker/Dealer Questionnaire and Certification, and have read, signed and retained for our files, a copy of the City of Encinitas Statement of Investment Policy. BROKER/DEALER Union Bank Investment Services (`UBIS") By: Mark Kreymer Title: Vice President Date: 7-20-2016 2016-08-24 Item 813 106 of 108 Attachment 5 CITY OF ENCINITAS CERTIFICATION OF UNDERSTANDING By responding to this questionnaire you acknowledge that: 1. You have read and are familiar with the City's Investment Policy as well as applicable Federal and State laws. 2. You meet the requirements as outlined in the City's Investment Policy. 3. You agree to make every reasonable effort to protect the assets of the City from loss. 4. You agree to notify the City, in writing, of any potential conflicts of interest. 5. You agree to notify the City, in writing, of any changes in personnel with decision- making authority over the City's funds within 24 hours of such event. Failure to submit a Certification of Understanding shall result in the withdrawal by the City of all funds held by the financial institution or investment manager and the immediate revocation of any rights to act as an agent of the City for the purchase of securities of investment of funds on behalf of the City. The City Council is connnitted to the goals of a Community Reinvestment Act (CRA). As part of the certification process for depository institutions, it is requested that you remit evidence of your most recent CRA rating. Signed: Date: 7-20-2016 Print Name and Title: Mark Kreyiner—Vice President After reading and signing this Certification of Understanding, please return with any supporting documentation to: Tim Nash. Director of Finance/Treasurer City of Encinitas 505 S.Vulcan Ave. Encinitas, CA 92024 lnashria encinitasea.Qov City of Encinitas use only: Approved: Disapproved: Date: Signature: Date Notification sent: Sent by: 2016-08-24 Item 8D 107 of 108 Attachment 5 Statement of Investment Policy for the City of ENCINITAS Effective: October 23, 2013 I have received and read the City of Encinitas investment policy dated October 23, 2013. Signed: (A"� Date: 7-20-2016 Print Name and Title: Mark Krevmer—Vice President After reading and signing this receipt of Investment Policy, please return to: Tim Nash, Director of Finance/Treasurer City of Encinitas 505 S. Vulcan Ave. Encinitas, CA 92024 tnashLencinitasca.gov 2016-08-24 Item 813 108 of 108