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2018-08-22 Item 08P Treasurer's ReportMEETING DATE: PREPARED BY: DEPARTMENT: SUBJECT: August 22, 2018 Teresa S. McBroome Director of Finance /City Treasurer Finance AGENDA REPORT City Council DEPT. DIRECTOR: Teresa S. McBroome CITY MANAGER: Karen P. Brust Treasurer's Annual Report for the Fiscal Year Ended June 30, 2018; Investment Policy; and Resolution No. 2018 -77 updating the California Local Agency Investment Fund (LAIF) authorized representatives and signatories. RECOMMENDATION: That City Council take the following actions: 1. Receive and file the Treasurer's Report for the Fiscal Year Ended June 30, 2018; 2. Adopt Investment Policy (F019); 3. Approve Resolution No. 2018 -77 updating the California Local Agency Investment Fund (LAIF) authorized representatives and signatories. STRATEGIC PLAN: This agenda item falls within the Organizational Efficiency and Effectiveness focus area of the Strategic Plan by maintaining the City's financial health. FISCAL CONSIDERATIONS: There is no direct fiscal impact associated with this report. Investment earnings in the pooled investment fund for FY 2017 -18 were $1,601,927, which exceeds the budget of $408,669 by $1,193,258. 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 XVII requires that the Investment Policy be reviewed and adopted at least annually, regardless of whether there are any proposed changes to the Policy. Staff is recommending changes to the policy this year. The City maintains an investment account with LAIF, a unit of the California State Treasurer's Office, which pools excess funds from approximately 2,400 local agencies and invests those funds in favor of the local agencies. As part of the control structure of LAIF, it is a requirement that there be on file at all times at least two authorized signatories of the local agency, as 2018 -08 -22 Item 08P 1 of 73 established by a resolution of the governing body. Currently, the City's authorized signers are the retired Director of Finance /City Treasurer and Finance Manager Lundgren. 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 2017 -18 (Attachment 1) • Summary report for the investment of bond proceeds (Attachment 2) • Investment Policy Redlined (Attachment 3) • Investment Policy (Attachment 4) • Resolution No. 2018 -77 updating the California Local Agency Investment Fund (LAIF) authorized representatives and signatories (Attachment 5) ANALYSIS: Pooled Investment Fund 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. Portfolio Summary Active Investments Investments by Issuer Activity Report Interest Earnings Purchases Report Accrued Interest Unrealized Gain /Loss Realized Gain /Loss As of June 30, 2018, the book value (purchase price of securities as recorded on the City's books) of the Pooled Investment Fund was $127.2 million and the average weighted yield to maturity was 1.864 %. Fiscal year -to -date investment revenue generated by the Pooled Investment Fund as of June 30, 2018, was $1,601,927 for an effective rate of return of 1.46 %. FY 2017 -18 investment pool revenue increased 53% over FY 2016 -17 revenue of $1,046,487. The current value of the City's portfolio is $125,958,236, which results in an unrealized loss of $1,206,585 or 0.9 %, when compared to the book value or purchase value of the City's portfolio of $127,164,821. This is due to the rising interest rate environment that the market is in. Since the City intends to hold all investments until maturity, the unrealized loss will not become a realized loss. The following table compares the Pooled Investment Fund statistics for the last four quarters. FY 2017 -18 June 30, 2018 March 31, 2018 Dec. 31, 2017 Sep. 30, 2017 Book Value $ 127,164,821 $ 112,717,522 $ 108,724,220 $ 100,117,676 Market Value $ 125,958,236 $ 111,688,801 $ 108,059,982 $ 99,859,075 Unrealized Gain /(Loss) $ (1,206,585) $ (1,028,721) $ (664,238) $ (258,601) Unrealized Gain /Loss as % of Book Value - 0.9488% - 0.9127% - 0.6109% - 0.2583% Effective Rate of Return 1.46% 1.37% 1.30% 1.28% Average Yield To Maturity 1.86% 1.60% 1.36% 1.31% Average Maturity (Yea rs) 1.84 1.58 1.40 1.67 Investment Earnings Year -to -Date $ 1,601,927 $ 1,079,219 $ 673,783 $ 337,542 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; and 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 2018 -08 -22 Item 08P 2 of 73 investment benchmarks. The charts below provide graphical information about portfolio investment allocation, liquidity and performance compared to various benchmarks. Portfolio Allocation as of June 30, 2018 Federal Agency U.S. Treasury Coupon Coupon Securities Securities 36% 36% Certificate of Deposits Cash -Bank 3% 6% Managed Pool Local Agency Accounts Investment Fund 4% 15% The largest allocations (36% each) in the pooled investment portfolio are U.S. Treasury coupon securities and federal agency securities. The U.S. Treasury Coupon Securities are issued by the U.S. Government and carry the full faith and credit of the U.S. Government and are considered to be the safest investments. The Federal Agency Coupon 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 Standard & Poors to AA+ in August 2011, they continue to be regarded as among the safest securities in the global market. Next at (15 %) 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. During this fiscal year, the City invested $4 million with the San Diego County Pool (County Pool). The County Pool is an allowable investment in the investment policy, is also available overnight, and holds a AAA credit rating. Portfolio Allocation Compares! to Investment Policy Maximum Allocations Federal Agency Coupon Securities U.S. Treasury Coupon Securities Certificate of Deposits - Bank Money Market Funds Managed Pool Accounts Local Agency Investment Fund 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% ■ Policy Maximum ■ As of June 30, 2018 The City's investment portfolio complied with the City's investment policy and was within the maximum allocations by investment type. 2018 -08 -22 Item 08P 3 of 73 45% 40% 35% 30% 25% 20% 15% 10% 5% 00 Portfolio Liquidity as of June 30, 2018 0-6 Months 7 -12 Months 13 -24 Months 25 -36 Mont -s =7 -46 Vo -t--s 49 -60 Months Liquidity is important to the City and it is critical that funds are available when needed in order to meet the City's day -to day operations, large CIP program and debt service program. The portfolio is currently very liquid with 22% available overnight and a total of 38% available within 180 days. The weighted average maturity of the entire portfolio is 1.84 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. 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% City Portfolio Yield Compared to Treasury Indexes LO of in of t0 to 0 0 n n n n 00 00 C Q U L r a- U L Q V L C Q U L C QP q1 City Portfolio - -- 2 Yr Treasury 1 Yr Treasury 6 Mth Treasury In the chart above the performance of the portfolio is compared to the six - month, one -year and two -year treasury constant maturity rate as of the end of each quarter. The stated performance benchmark for the portfolio is the one -year treasury. Actual performance of the portfolio for the year ended June 30, 2018 is lagging the benchmark by 93 basis points. The reason for the lagging performance is that in the current rising interest rate environment, the benchmark reflects the current one -year treasury rates while the portfolio contains investments that were purchased when rates were much lower. As investments mature and the proceeds are reinvested at higher rates, the portfolio will "catch up" to the benchmark and, in time, should exceed the benchmark. Investment of Bond Proceeds The Annual Investment Report for the Investment of Bond Proceeds (Attachment 2) is subject to minor changes in activity from year -to -year. Total bond proceeds held in trust accounts on 2018 -08 -22 Item 08P 4 of 73 June 30, 2018 were $643,684. Earnings on the bond trust accounts were $20,118 for the 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 an effective rate of less than two percent. As the City has paid off bond issues or refunded bonds in the past few years, the requirement for bond reserves for these bond issues has been eliminated, reducing the amount of bond proceeds held in trust. The majority of funds held on June 30, 2018 were for the 2007 Water Revenue Bonds reserve funds ($642,701). Investment Policy Update Section XVII of the investment policy 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 2017. Staff performed a comprehensive review and is recommending adoption of the investment policy with the proposed changes as summarized below, and as shown redlined in Attachment 3, and with the redlined changes incorporated into the investment policy in Attachment 4. Summary of Changes to Investment Policy Investment Policy Section Description of Change Comments Section VIII -1 Repurchase Change the maximum Error correction. Agreements maturity from "one day" to "one ear ". Section VIII -2 CA Local Agency Under the State Code This change will keep the investment Investment Fund (LAIF) column, change the "$65 policy current as the State Code is million" maximum to "State changed. The City's investment Law Maximum ". policy is more conservative than the State Code and keeps the LAIF limit to 30% of the investment portfolio. Sections VII -413 Mutual Funds, VIII- Change the "Per Issuer" dollar This change will keep the investment 5 Certificates of Deposit, VIII -6 amounts to a percentage. policy flexible as the total portfolio Negotiable Certificates of Deposit, Percentage amount varies amount changes. The State Code VIII -7 Bankers Acceptances, VIII -9 between 5 - 25 %. does not have a dollar or percentage U.S. Government - Sponsored limit per issuer which means that the Agencies, VIII -10 Commercial City's investment policy is more Paper, VIII -11 Commercial conservative than the State Code. Medium -Term Notes, VIII -12 Guaranteed Investment Contracts, VIII -14 Demand Deposits Section VIII -15 Asset - Backed Add Asset - Backed Securities Adding this investment instrument in Securities as an allowable investment line with the State Code will allow for instrument. A limit of 5% is more flexibility in investment options. being added "Per Issuer ". The State Code does not have a dollar or percentage limit per issuer which means that the City's investment policy is more conservative than the State Code. Section VIII -16 Supranationals Add Supranationals as an Adding this investment instrument in allowable investment line with the State Code will allow for instrument. A limit of 10% is more flexibility in investment options. being added "Per Issuer ". The State Code does not have a dollar or percentage limit per issuer which means that the City's investment policy is more conservative than the State Code. Section XVIII — Glossary of Add a glossary with a list of It is best practice to add a glossary Investment Terms common investment terms. to assist readers with investment terminology. 2018 -08 -22 Item 08P 5 of 73 Update of California Local Agency Investment Fund (LAIF) Authorized Representatives and Signatories Due to the retirement of the former Director of Finance /Treasurer, the City currently has only one authorized official, Finance Manager Lundgren, who can conduct business with LAIF. LAIF requires at least two authorized officials, so it is necessary to update the authorized representatives by positions and individual names. In order to be in compliance with LAIF's requirement, staff is recommending that the City Manager, the Assistant City Manager, and the current Director of Finance /City Treasurer be added as authorized officials, in case of future retirements and vacancies. LAIF also allows for the successors of the position to be authorized representatives in the future. The following City positions and current individuals will be LAIF authorized representatives or the successors in their position: 1) City Manager — Karen P. Brust 2) City Assistant City Manager — Mark Delin 3) City Director of Finance /City Treasurer — Teresa S. McBroome 4) City Finance Manager — Marta D. Lundgren. 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, June 30, 2018 2. Annual Investment Report for the Investment of Bond Proceeds, June 30, 2018 3. City of Encinitas Investment Policy (F019), amended August 30, 2017 Redlined 4. City of Encinitas Investment Policy (F019) 5. Resolution No. 2018 -77 Authorizing the Investment of Monies in the State of California Local Agency Investment Fund (LAIF) and Updating the Authorized Representatives and Signatories 2018 -08 -22 Item 08P 6 of 73 Attachment 1 CITY OF ENCINITAS City of Encinitas - YTD Report 505 S. VULCAN Ila€:__. , ENCINITAS, ENCINITAS, CA 9 Portfolio Management (760)633 -2641 " Portfolio Summary June 30, 2018 Investments Par Value Market Value Book Value % of Portfolio YTM Term Days to Maturity Local Agency Investment Funds 19,139,457.15 19,139,457.15 19,139,457.15 15.51 1920 . 1 1 Managed Pool Accounts 5,026,663.99 5,026,663.99 5,026,663.99 4.07 1939 . 1 1 Money Market Funds 1,669.15 1,669.15 1,669.15 0.00 1.820 1 1 Certificates of Deposit - Bank 7,624,000.00 7,484,447.60 7,624,000.00 6.18 2.435 1,686 1,282 Negotiable CDs 245,000.00 240,068.15 245,000.00 0.20 1.750 1,095 719 U.S. Treasury Coupon Securities 46,000,000.00 45,015,647.85 45,593,810.17 36.94 1.845 1,262 872 Federal Agency Coupon Securities 46,000,000.00 45,316,900.84 45,800,839.02 37.11 1.757 1,380 722 124,036,790.29 122,224,854.73 123,431,439.48 100.00% 1.864 1,084 671 Investments Cash, Pending Redemptions Passbook/Checking 1,733,381.19 1,733,381.19 1,733,381.19 0.000 1 1 (not included in yield calculations) Pending Redemptions 2,000,000.00 2,000,000.00 2,000,000.00 Subtotal 3,733,381.19 3,733,381.19 Total Cash, Pending Redemptions 127,770,171.48 125,958,235.92 127,164,820.67 1.864 1,084 671 and Investments Total Earnings June 30 Period Ending Fiscal Year Ending Current Year 1,601,927.45 1,601,927.45 Average Daily Balance 109,351,179.55 Effective Rate of Return 1.46% 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. All 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. Teresa MCBroome, Finance Director \Treasurer Reporting period 07101/2017- 06/30/2018 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 0711912018 - 13:05 No fiscal year history available PM (PRF_PM1) 7.3.0 2018 -08 -22 Item 08P 7 ofer.7.3.5 PF -_ City of Encinitas - YTD Report Investments by Issuer Active Investments CITY OF ENCINITAS 505 S. VULCAN ENCINITAS, ENCINITAS, CA 9 (760)633 -2641 Sorted by Fund June 30, 2018 Investment Current Market YTM Redemption Days To Call CUSIP Investment# Security Type Class Book Value Rate Market Value Date 365 Date Maturity Date Collateral Ally Bank 020061 1527 Certificates of Deposit - Bank Amort 245,000.00 1.900 240,744.35 06130/2018 1.900 06/2212020 722 Subtotal and Average 245,000.00 240,744.35 1.900 722 American Express National Bank 02589AAM4 1580 Certificates of Deposit - Bank Amort 245,000.00 3.300 244,960.80 06130/2018 3.300 06/26/2023 1,821 Subtotal and Average 245,000.00 244,960.80 3.300 1,821 Bank of Baroda 0606247A5 1454 Certificates of Deposit - Bank Amort 248,000.00 2.050 247,905.76 06130/2018 2.050 11/1312018 135 Subtotal and Average 248,000.00 247,905.76 2.050 135 BankVista 06653ABM5 1533 Certificates of Deposit - Bank Amort 245,000.00 2.000 234,646.30 06130/2018 2.000 06/30/2022 1,460 Subtotal and Average 245,000.00 234,646.30 2.000 1,460 BMW Bank North America 05580AMB7 1562 Certificates of Deposit - Bank Amort 246,000.00 2.900 242,125.50 06130/2018 2.900 03/29/2023 1,732 Subtotal and Average 246,000.00 242,125.50 2.900 1,732 CA Asset Management Program SYS1003 1003 Managed Pool Accounts Amort 1,024,857.63 2050 . 1,024,857.63 06130/2018 2.050 1 Subtotal and Average 1,024,857.63 1,024,857.63 2.050 1 Capital One NA 14042RGN5 1552 Certificates of Deposit - Bank Amort 245,000.00 2.300 237,272.70 06130/2018 2.300 07/19/2022 1,479 Subtotal and Average 245,000.00 237,272.70 2.300 1,479 Capital One Bank USA, NA 1404203Q1 1553 Certificates of Deposit - Bank Amort 245,000.00 2.300 237,272.70 06130/2018 2.300 07/19/2022 1,479 Subtotal and Average 245,000.00 237,272.70 2.300 1,479 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available DI (PRF_DI) 7.1.1 2018 -08 -22 Item 08P 8 of 73 port Ver. 7.3.5 City of Encinitas - YTD Report Investments by Issuer Page 2 Sorted by Fund Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Tvpe Class Book Value Rate Market Value Date 365 Date Maturitv Date Collateral Chippewa Valley Bank 169894AN2 1529 Certificates of Deposit - Bank Amort 245,000.00 1.700 239,69820 06130/2018 1.700 06/30/2020 730 Subtotal and Average 245,000.00 239,698.20 1.700 730 CIT Bank 17284C5K6 1487 Certificates of Deposit - Bank Amort 248,000.00 2200 246,678.16 06130/2018 2.200 12/10/2019 527 Subtotal and Average 248,000.00 246,678.16 2.200 527 Citi Bank NA 17312QH69 1563 Certificates of Deposit - Bank Amort 246,000.00 2.850 241,58922 06130/2018 2.890 03/29/2023 1,732 Subtotal and Average 246,000.00 241,589.22 2.890 1,732 Citizens State Bankl 17670DAC8 1530 Certificates of Deposit - Bank Amort 245,000.00 1900 . 235,550.35 06130/2018 1.900 12/30/2021 1,278 Subtotal and Average 245,000.00 235,550.35 1.900 1,278 City National Bank Metropolis 17801GSB7 1551 Certificates of Deposit - Bank Amort 245,000.00 2000 . 236,052.60 06130/2018 2.000 02/03/2022 1,313 Subtotal and Average 245,000.00 236,052.60 2.000 1,313 Comenity Capital Bank 20033AZK5 1571 Certificates of Deposit - Bank Amort 245,000.00 3.300 244,943.65 06130/2018 3.300 06/29/2023 1,824 20033AUE4 1525 Negotiable CDs Amort 245,000.00 1.750 240,068.15 06130/2018 1.775 06/19/2020 719 Subtotal and Average 490,000.00 485,011.80 2.537 1,271 Continental Bank 2111631 1582 Certificates of Deposit - Bank Amort 245,000.00 3.100 244,801.55 06130/2018 3.100 06/29/2022 1,459 Subtotal and Average 245,000.00 244,801.55 3.100 1,459 SD County Investment Pool SYS1584 1584 Managed Pool Accounts Amort 4,001,806.36 1910 . 4,001,806.36 06130/2018 1.910 1 Subtotal and Average 4,001,806.36 4,001,806.36 1.910 1 Discovery Bank 254672CB2 1477 Certificates of Deposit - Bank Amort 248,000.00 1.800 247,823.92 06130/2018 1.800 10/2212018 113 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available DI (PRF_DI) 7.1.1 2018 -08 -22 Item 08P 9 of 73 port Ver. 7.3.5 City of Encinitas - YTD Report Investments by Issuer Page 3 Sorted by Fund Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Tvue Class Book Value Rate Market Value Date 365 Date Maturity Date Collateral Subtotal and Average 248,000.00 247,823.92 1.800 113 Enerbank USA 29278TAU4 1568 Certificates of Deposit - Bank Amort 246,000.00 2.850 241,58922 06130/2018 2.850 03/29/2023 1,732 Subtotal and Average 246,000.00 241,589.22 2.850 1,732 Federal Farm Credit 3133EHNX7 1534 Federal Agency Coupon Securities Fair 1,995,764.58 1.650 1,939,240.00 06130/2018 1.724 06/21/2021 1,086 3133EHCT8 1536 Federal Agency Coupon Securities Fair 2,022,949.19 2.150 1,958,360.00 06130/2018 1.825 03/15/2022 1,353 3133EC4Q4 1558 Federal Agency Coupon Securities Fair 1,927,838.60 1.820 1,919,460.00 06130/2018 2.700 11/23/2022 1,606 Subtotal and Average 5,946,552.37 5,817,060.00 2.075 1,345 Federal Home Loan Bank 313OA53ZO 1493 Federal Agency Coupon Securities Fair 1,999,878.13 1.050 1,993,820.00 06130/2018 1.070 10/23/2018 114 3130A5E54 1497 Federal Agency Coupon Securities Fair 2,000,000.00 1.100 1,997,880.00 06130/2018 1.100 08/13/2018 43 3133782M2 1498 Federal Agency Coupon Securities Fair 2,002,399.22 1.500 1,989,900.00 06130/2018 1.320 03/08/2019 250 313379EE5 1499 Federal Agency Coupon Securities Fair 2,004,152.72 1.625 1,985,480.00 06130/2018 1.400 06/14/2019 348 313383HU8 1513 Federal Agency Coupon Securities Fair 2,019,923.80 1.750 1,967,460.00 06130/2018 1.224 06/1212020 712 3130A8QS5 1524 Federal Agency Coupon Securities Fair 1,961,336.24 1.125 1,913,840.00 06130/2018 1.790 07/14/2021 1,109 3130AABG2 1555 Federal Agency Coupon Securities Fair 1,958,242.57 1.875 1,945,860.00 06130/2018 2.520 11/29/2021 1,247 3130AEBM1 1573 Federal Agency Coupon Securities Fair 2,004,729.88 2.750 2,002,967.78 06130/2018 2.780 06/10/2022 1,440 313378JP7 1575 Federal Agency Coupon Securities Fair 1,994,200.21 2.375 1,994,546.11 06130/2018 2.712 09/10/2021 1,167 Subtotal and Average 17,944,862.77 17,791,753.89 1.766 712 Federal Home Loan Mortgage 3137EADR7 1512 Federal Agency Coupon Securities Fair 2,008,595.45 1.375 1,958,840.00 06130/2018 1.134 05/01/2020 670 3134G9N94 1537 Federal Agency Coupon Securities Fair 2,009,740.90 1.875 1,953,220.00 06130/2018 1.710 07/27/2021 1,122 3137EAEC9 1557 Federal Agency Coupon Securities Fair 1,919,548.28 1.125 1,909,307.50 06130/2018 2.493 08/1212021 1,138 3137EAEB1 1559 Federal Agency Coupon Securities Fair 1,975,207.72 0.875 1,970,052.78 06130/2018 2.160 07/19/2019 383 3134GSAX3 1560 Federal Agency Coupon Securities Fair 1,978,334.83 2220 1,962,126.67 06130/2018 2.580 07/01/2022 1,461 07/0112020 Subtotal and Average 9,891,427.18 9,753,546.95 2.009 953 Firstrust Savings Bank 337630BD8 1531 Certificates of Deposit - Bank Amort 245,000.00 1.900 237,338.85 06130/2018 1.900 06/23/2021 1,088 Subtotal and Average 245,000.00 237,338.85 1.900 1,088 Federal Nat'l Mortgage Assoc. Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available DI (PRF_DI) 7.1.1 2018 -08 -22 Item 08P 10 of 73 "Ver. 7.3.5 City of Encinitas - YTD Report Investments by Issuer Page 4 Sorted by Fund Investment Current Market YTM Redemption Days To Call CUSIP Investment# Security Tvae Class Book Value Rate Market Value Date 365 Date Maturity Date Collateral 3135GOZA4 1500 Federal Agency Coupon Securities Fair 2,006,131.21 1.875 1,995,540.00 06130/2018 1.377 02/19/2019 233 3135GOE33 1501 Federal Agency Coupon Securities Fair 1,999,963.86 1.125 1,999,220.00 06130/2018 1.160 07/20/2018 19 3135GOYM9 1503 Federal Agency Coupon Securities Fair 2,002,695.80 1.875 1,999,620.00 06130/2018 1.230 09/18/2018 79 3135GOYT4 1505 Federal Agency Coupon Securities Fair 2,002,808.28 1.625 1,996,060.00 06130/2018 1.270 11/27/2018 149 3135GOZG1 1506 Federal Agency Coupon Securities Fair 2,003,570.82 1.750 1,983,820.00 06130/2018 1.595 09/1212019 438 3135GOZY2 1507 Federal Agency Coupon Securities Fair 2,002,826.73 1.750 1,980,280.00 06130/2018 1.645 11/26/2019 513 Subtotal and Average 12,017,996.70 11,954,540.00 1.380 238 First Source Bank 33646CJPO 1569 Certificates of Deposit - Bank Amort 246,000.00 2.850 241,490.82 06130/2018 2.850 04/11/2023 1,745 Subtotal and Average 246,000.00 241,490.82 2.850 1,745 Goldman Sachs Bank USA 38148PKX4 1528 Certificates of Deposit - Bank Amort 245,000.00 2.350 237,968.50 06130/2018 2.350 06/21/2022 1,451 Subtotal and Average 245,000.00 237,968.50 2.350 1,451 State Bank of India 8562843F9 1484 Certificates of Deposit - Bank Amort 248,000.00 2.000 247,799.12 06130/2018 2.000 12/05/2018 157 Subtotal and Average 248,000.00 247,799.12 2.000 157 Industrial & Comm Bank China 45581 EASO 1564 Certificates of Deposit - Bank Amort 249,000.00 2.900 245,068.29 06130/2018 2.900 03/29/2023 1,732 Subtotal and Average 249,000.00 245,068.29 2.900 1,732 CA LAIF SYS1012 1012 Local Agency Investment Funds Amort 19,139,457.15 1.920 19,139,457.15 06130/2018 1.920 1 Subtotal and Average 19,139,457.15 19,139,457.15 1.920 1 LCA Bank Corp 5017981 1566 Certificates of Deposit - Bank Amort 246,000.00 2.800 241,050.48 06130/2018 2.800 03/29/2023 1,732 Subtotal and Average 246,000.00 241,050.48 2.800 1,732 Marathon Savings Bank 56585YAB6 1532 Certificates of Deposit - Bank Amort 245,000.00 1.700 239,708.00 06130/2018 1.700 06/29/2020 729 Subtotal and Average 245,000.00 239,708.00 1.700 729 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available DI (PRF_DI) 7.1.1 2018 -08 -22 Item 08P 11 of 73 "Ver. 7.3.5 City of Encinitas - YTD Report Investments by Issuer Page 5 Sorted by Fund Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Tvne Class Book Value Rate Market Value Date 365 Date Maturitv Date Collateral Medallion Bank UT 58404DBL4 1561 Certificates of Deposit - Bank Amort 249,000.00 2.900 245,075.76 06130/2018 2.900 03/28/2023 1,731 Subtotal and Average 249,000.00 245,075.76 2.900 1,731 Morgan Stanley Bank 61747MR37 1565 Certificates of Deposit - Bank Amort 246,000.00 2.900 242,125.50 06130/2018 2.900 03/29/2023 1,732 Subtotal and Average 246,000.00 242,125.50 2.900 1,732 Sallie Mae Bank /Murray 79545OS89 1570 Certificates of Deposit - Bank Amort 245,000.00 3.300 244,953.45 06/30/2018 3.300 06/27/2023 1,822 Subtotal and Average 245,000.00 244,953.45 3.300 1,822 Synchrony Bank 87164YEB6 1478 Certificates of Deposit - Bank Amort 248,000.00 2000 . 246,660.80 06130/2018 2.000 10/17/2019 473 Subtotal and Average 248,000.00 246,660.80 2.000 473 Texas Exchange Bank 88241TCP3 1581 Certificates of Deposit - Bank Amort 245,000.00 3250 244,377.70 06130/2018 3.250 06/29/2023 1,824 Subtotal and Average 245,000.00 244,377.70 3.250 1,824 TIAA FSB 872701 1554 Certificates of Deposit - Bank Amort 245,000.00 2.150 235,883.55 06130/2018 2.150 07/19/2022 1,479 Subtotal and Average 245,000.00 235,883.55 2.150 1,479 Union Bank Checking Acct. SYS1010 1010 Passbook/Checking Accounts Amort 1,733,381.19 1,733,381.19 06130/2018 1 Subtotal and Average 1,733,381.19 1,733,381.19 1 Union Bank Custody Acct. SYS1004 1004 Money Market Funds Amort 1,669.15 1.820 1,669.15 06130/2018 1.820 1 Subtotal and Average 1,669.15 1,669.15 1.820 1 U.S. Treasury Notes 912828XK1 1509 U.S. Treasury Coupon Securities Fair 1,999,927.09 0.875 1,999,340.00 06130/2018 0.971 07/15/2018 14 912828TH3 1510 U.S. Treasury Coupon Securities Fair 1,993,230.69 0.875 1,967,820.00 06130/2018 1.195 07/31/2019 395 912828XM7 1514 U.S. Treasury Coupon Securities Fair 2,019,310.86 1.625 1,962,340.00 06130/2018 1.149 07/31/2020 761 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available DI (PRF_DI) 7.1.1 2018 -08 -22 Item 08P 12 of 73 "Ver. 7.3.5 City of Encinitas - YTD Report Investments by Issuer Page 6 Sorted by Fund Wells Fargo Bank 949763JG2 1535 Certificates of Deposit - Bank Amort 245,000.00 2.250 234,705.10 06130/2018 2.250 06/30/2022 1,460 Subtotal and Average 245,000.00 234,705.10 2.250 1,460 Winter Hill Bank FSB 975875AK1 1526 Certificates of Deposit - Bank Amort 245,000.00 1.800 236,586.70 06130/2018 1.800 06/28/2021 1,093 Subtotal and Average 245,000.00 236,586.70 1.800 1,093 Total and Average 125,164,820.67 123,958,235.92 1.838 661 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available DI (PRF_DI) 7.1.1 2018 -08 -22 Item 08P 13 of 731'ver. 7.3.5 Investment Current Market YTM Redemption Days To Call CUSIP Investment# Security Tvpe Class Book Value Rate Market Value Date 365 Date Maturity Date Collateral 912828TNO 1515 U.S. Treasury Coupon Securities Fair 1,999,045.90 1.000 1,967,580.00 06130/2018 1.042 08/31/2019 426 912828TV2 1516 U.S. Treasury Coupon Securities Fair 2,004,668.14 1250 1,968,680.00 06130/2018 1.071 10/31/2019 487 91282BJ50 1517 U.S. Treasury Coupon Securities Fair 2,006,944.44 1.375 1,963,040.00 06130/2018 1.161 02/29/2020 608 91282BJ84 1518 U.S. Treasury Coupon Securities Fair 2,006,922.69 1.375 1,961,100.00 06130/2018 1.172 03/31/2020 639 912828132 1520 U.S. Treasury Coupon Securities Fair 1,991,413.37 1.375 1,950,320.00 06130/2018 1.580 08/31/2020 792 912828165 1521 U.S. Treasury Coupon Securities Fair 1,990,500.47 1.375 1,948,040.00 06130/2018 1.593 09/30/2020 822 912828199 1522 U.S. Treasury Coupon Securities Fair 1,989,041.84 1.375 1,945,620.00 06130/2018 1.618 10/31/2020 853 912828S76 1523 U.S. Treasury Coupon Securities Fair 1,961,056.57 1.125 1,911,100.00 06130/2018 1.784 07/31/2021 1,126 912828A42 1538 U.S. Treasury Coupon Securities Fair 2,020,292.77 2000 . 1,972,660.00 06130/2018 1.567 11/30/2020 883 9128281 1539 U.S. Treasury Coupon Securities Fair 1,975,058.26 1.125 1,924,300.00 06130/2018 1.609 02/28/2021 973 912828037 1540 U.S. Treasury Coupon Securities Fair 1,980,562.14 1250 1,928,280.00 06130/2018 1.616 03/31/2021 1,004 912828T34 1556 U.S. Treasury Coupon Securities Fair 1,913,259.86 1.125 1,905,540.00 06130/2018 2.530 09/30/2021 1,187 912828124 1572 U.S. Treasury Coupon Securities Fair 1,946,614.34 1.875 1,946,784.46 06130/2018 2.710 08/31/2022 1,522 9128281`96 1574 U.S. Treasury Coupon Securities Fair 1,964,958.68 2000 . 1,964,315.65 06130/2018 2.650 10/31/2021 1,218 912828VP2 1576 U.S. Treasury Coupon Securities Fair 1,994,710.85 2000 . 1,993,712.60 06130/2018 2.531 07/31/2020 761 912828WW6 1577 U.S. Treasury Coupon Securities Fair 1,997,369.45 1.625 1,996,707.73 06130/2018 2.365 07/31/2019 395 912828XQ8 1578 U.S. Treasury Coupon Securities Fair 3,923,878.66 2000 . 3,923,825.19 06130/2018 2.705 07/31/2022 1,491 9128282W9 1579 U.S. Treasury Coupon Securities Fair 1,942,253.69 1.875 1,942,433.93 06130/2018 2.711 09/30/2022 1,552 9128282.18 1583 U.S. Treasury Coupon Securities Fair 1,972,789.41 1.500 1,972,108.29 06130/2018 2.531 07/15/2020 745 Subtotal and Average 45,593,810.17 45,015,647.85 1.845 872 Wells Fargo Bank 949763JG2 1535 Certificates of Deposit - Bank Amort 245,000.00 2.250 234,705.10 06130/2018 2.250 06/30/2022 1,460 Subtotal and Average 245,000.00 234,705.10 2.250 1,460 Winter Hill Bank FSB 975875AK1 1526 Certificates of Deposit - Bank Amort 245,000.00 1.800 236,586.70 06130/2018 1.800 06/28/2021 1,093 Subtotal and Average 245,000.00 236,586.70 1.800 1,093 Total and Average 125,164,820.67 123,958,235.92 1.838 661 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available DI (PRF_DI) 7.1.1 2018 -08 -22 Item 08P 13 of 731'ver. 7.3.5 CITY OF ENCINITAS City of Encinitas - YTD Report 505 S. VULCAN Activity Report ENCINITAS, ENCINITAS, CA 9 y p (760)633 -2641 Sorted By Issuer July 1, 2017 - June 30, 2018 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: Ally Bank Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.195% 245,000.00 0.00 0.00 245,000.00 Issuer: American Express Centurion Certificates of Deposit - Bank 02587DLVB 1438 American Express Centurion 1.500 10125/2017 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 National Bank Certificates of Deposit - Bank 02589AAM4 1580 American Express National Bank 3.300 06126/2018 245,000.00 0.00 Subtotal and Balance 0.00 245,000.00 0.00 245,000.00 Issuer Subtotal 0.195% 0.00 245,000.00 0.00 245,000.00 Issuer: Bank of Baroda Certificates of Deposit - Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.197% 248,000.00 0.00 0.00 248,000.00 Issuer: BankVista Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.195% 245,000.00 0.00 0.00 245,000.00 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018 - 13:05 No fiscal year history available DA (PRF_DA) 7.2.0 2018 -08 -22 Item 08P 14 of 75P0rt Ver. 7.3.5 City of Encinitas - YTD Report Activity Report Page 2 July 1, 2017 - June 30, 2018 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: BMW Bank North America Certificates of Deposit - Bank 05580AMB7 1562 BMW Bank North America 2.900 03129/2018 246,000.00 0.00 Subtotal and Balance 0.00 246,000.00 0.00 246,000.00 Issuer Subtotal 0.196% 0.00 246,000.00 0.00 246,000.00 Issuer: CA Asset Management Program Managed Pool Accounts SYS1003 1003 CA Asset Management Program 2.050 13,947.63 0.00 Subtotal and Balance 1,010,910.00 13,947.63 0.00 1,024,857.63 Issuer Subtotal 0.815% 1,010,910.00 13,947.63 0.00 1,024,857.63 Issuer: Capital One NA Certificates of Deposit - Bank 14042RGN5 1552 Capital One NA 2.300 07/19/2017 245,000.00 0.00 Subtotal and Balance 0.00 245,000.00 0.00 245,000.00 Issuer Subtotal 0.195% 0.00 245,000.00 0.00 245,000.00 Issuer: Capital One Bank USA, NA Certificates of Deposit - Bank 1404203Q1 1553 Capital One Bank USA, NA 2.300 07119/2017 245,000.00 0.00 Subtotal and Balance 0.00 245,000.00 0.00 245,000.00 Issuer Subtotal 0.195% 0.00 245,000.00 0.00 245,000.00 Issuer: Chippewa Valley Bank Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.195% 245,000.00 0.00 0.00 245,000.00 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018 - 13:05 No fiscal year history available DA (PRF_DA) 7.2.0 2018 -08 -22 Item 08P 15 of 75P0rt Ver. 7.3.5 City of Encinitas - YTD Report Activity Report July 1, 2017 - June 30, 2018 Negotiable CDs Subtotal and Balance 245,000.00 Issuer Subtotal 0.390% 245,000.00 Data Updated: SET_ANNU: 07/19/2018 13:05 Run Date: 07/19/2018 - 13:05 No fiscal year history available 2018 -08 -22 Item 08P Page 3 245,000.00 245,000.00 0.00 490,000.00 Portfolio ENCI AC DA(PRF_DA) 7.2.0 16 of 75Po' Ver. 7.3.5 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: CIT Bank Certificates of Deposit - Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.197% 248,000.00 0.00 0.00 248,000.00 Issuer: Citi Bank NA Certificates of Deposit - Bank 17312QH69 1563 Citi Bank NA 2.850 03129/2018 246,000.00 0.00 Subtotal and Balance 0.00 246,000.00 0.00 246,000.00 Issuer Subtotal 0.196% 0.00 246,000.00 0.00 246,000.00 Issuer: Citizens State Bankl Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.195% 245,000.00 0.00 0.00 245,000.00 Issuer: City National Bank Metropolis Certificates of Deposit - Bank 17801 GSB7 1551 City National Bank Metropolis 2.000 07103/2017 245,000.00 0.00 Subtotal and Balance 0.00 245,000.00 0.00 245,000.00 Issuer Subtotal 0.195% 0.00 245,000.00 0.00 245,000.00 Issuer: Comenity Capital Bank Certificates of Deposit - Bank 20033AZK5 1571 Comenity Capital Bank 3.300 06129/2018 245,000.00 0.00 Subtotal and Balance 0.00 245,000.00 0.00 245,000.00 Negotiable CDs Subtotal and Balance 245,000.00 Issuer Subtotal 0.390% 245,000.00 Data Updated: SET_ANNU: 07/19/2018 13:05 Run Date: 07/19/2018 - 13:05 No fiscal year history available 2018 -08 -22 Item 08P Page 3 245,000.00 245,000.00 0.00 490,000.00 Portfolio ENCI AC DA(PRF_DA) 7.2.0 16 of 75Po' Ver. 7.3.5 City of Encinitas - YTD Report Activity Report Page 4 July 1, 2017 - June 30, 2018 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: Continental Bank Certificates of Deposit - Bank 211163HH6 1582 Continental Bank 3.100 06129/2018 245,000.00 0.00 Subtotal and Balance 0.00 245,000.00 0.00 245,000.00 Issuer Subtotal 0.195% 0.00 245,000.00 0.00 245,000.00 Issuer: SD County Investment Pool Managed Pool Accounts SYS1584 1584 SD County Investment Pool 1.910 4,001,806.36 0.00 Subtotal and Balance 0.00 4,001,806.36 0.00 4,001,806.36 Issuer Subtotal 3.182% 0.00 4,001,806.36 0.00 4,001,806.36 Issuer: Discovery Bank Certificates of Deposit - Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.197% 248,000.00 0.00 0.00 248,000.00 Issuer: Enerbank USA Certificates of Deposit - Bank 29278TAU4 1568 Enerbank USA 2.850 03129/2018 246,000.00 0.00 Subtotal and Balance 0.00 246,000.00 0.00 246,000.00 Issuer Subtotal 0.196% 0.00 246,000.00 0.00 246,000.00 Issuer: Federal Farm Credit Federal Agency Coupon Securities 3133EEM98 1496 Federal Farm Credit 1.000 05121/2018 0.00 2,000,000.00 3133EDSU7 1508 Federal Farm Credit 1.000 08115/2017 0.00 1,000,000.00 3133EC4Q4 1558 Federal Farm Credit 1.820 02/23/2018 2,000,000.00 0.00 Subtotal and Balance 7,000,000.00 2,000,000.00 3,000,000.00 6,000,000.00 Issuer Subtotal 4.771% 7,000,000.00 2,000,000.00 3,000,000.00 6,000,000.00 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018 - 13:05 No fiscal year history available DA (PRF_DA) 7.2.0 /�/� 2018 -08 -22 Item 08P 17 of 75P0rt Ver. 7.3.5 Federal Agency Coupon Securities 3136GOZH7 1480 Federal Nat'l Mortgage Assoc. 1.050 09105/2017 3136GOYE5 1494 Federal Nat'l Mortgage Assoc. 1.000 08128/2017 3135GOTGB 1504 Federal Nat'l Mortgage Assoc. 0.875 02/08/2018 Subtotal and Balance 17,000,000.00 Issuer Subtotal 9.541% 17,000,000.00 Data Updated: SET_ANNU: 07/19/2018 13:05 Run Date: 07/19/2018 - 13:05 No fiscal year history available 2018 -08 -22 Item 08P 0.00 City of Encinitas - YTD Report 0.00 1,000,000.00 0.00 Activity Report 0.00 5,000,000.00 Page 5 0.00 July 1, 2017 - June 30, 2018 Portfolio ENCI Par Value AC Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer: Federal Home Loan Bank Federal Agency Coupon Securities 3130A4TR3 1495 Federal Home Loan Bank 0.875 10116/2017 0.00 2,000,000.00 3130AABG2 1555 Federal Home Loan Bank 1.875 02/23/2018 2,000,000.00 0.00 3130AEBM1 1573 Federal Home Loan Bank 2.750 06126/2018 2,000,000.00 0.00 313378JP7 1575 Federal Home Loan Bank 2.375 06126/2018 2,000,000.00 0.00 Subtotal and Balance 14,000,000.00 6,000,000.00 2,000,000.00 18,000,000.00 Issuer Subtotal 14.312% 14,000,000.00 6,000,000.00 2,000,000.00 18,000,000.00 Issuer: Federal Home Loan Mortgage Federal Agency Coupon Securities 3137EADP1 1492 Federal Home Loan Mortgage 0.875 03107/2018 0.00 2,000,000.00 3137EAEC9 1557 Federal Home Loan Mortgage 1.125 02/23/2018 2,000,000.00 0.00 3137EAEB1 1559 Federal Home Loan Mortgage 0.875 02/23/2018 2,000,000.00 0.00 3134GSAX3 1560 Federal Home Loan Mortgage 2.220 02/23/2018 2,000,000.00 0.00 Subtotal and Balance 6,000,000.00 6,000,000.00 2,000,000.00 10,000,000.00 Issuer Subtotal 7.951% 6,000,000.00 6,000,000.00 2,000,000.00 10,000,000.00 Issuer: Firstrust Savings Bank Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.195% 245,000.00 0.00 0.00 245,000.00 Issuer: Federal Nat'l Mortgage Assoc. Federal Agency Coupon Securities 3136GOZH7 1480 Federal Nat'l Mortgage Assoc. 1.050 09105/2017 3136GOYE5 1494 Federal Nat'l Mortgage Assoc. 1.000 08128/2017 3135GOTGB 1504 Federal Nat'l Mortgage Assoc. 0.875 02/08/2018 Subtotal and Balance 17,000,000.00 Issuer Subtotal 9.541% 17,000,000.00 Data Updated: SET_ANNU: 07/19/2018 13:05 Run Date: 07/19/2018 - 13:05 No fiscal year history available 2018 -08 -22 Item 08P 0.00 2,000,000.00 0.00 1,000,000.00 0.00 2,000,000.00 0.00 5,000,000.00 12,000,000.00 0.00 5,000,000.00 12,000,000.00 Portfolio ENCI AC DA(PRF_DA) 7.2.0 18 of 75Po' Ver. 7.3.5 City of Encinitas - YTD Report Activity Report Page 6 July 1, 2017 - June 30, 2018 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: First Source Bank Certificates of Deposit - Bank 33646CJPO 1569 First Source Bank 2.850 04/11/2018 246,000.00 0.00 Subtotal and Balance 0.00 246,000.00 0.00 246,000.00 Issuer Subtotal 0.196% 0.00 246,000.00 0.00 246,000.00 Issuer: Goldman Sachs Bank USA Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.195% 245,000.00 0.00 0.00 245,000.00 Issuer: Iberia Bank /LA Certificates of Deposit - Bank 45083ADZ2 1482 Iberia Bank /LA 1.200 12/04/2017 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: State Bank of India Certificates of Deposit - Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.197% 248,000.00 0.00 0.00 248,000.00 Issuer: Industrial & Comm Bank China Certificates of Deposit - Bank 45581 EASO 1564 Industrial & Comm Bank China 2.900 03129/2018 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.198% 0.00 249,000.00 0.00 249,000.00 Issuer: CA LAIF Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018 - 13:05 No fiscal year history available DA (PRF_DA) 7.2.0 2018 -08 -22 Item 08P 19 of 75P0rt Ver. 7.3.5 Certificates of Deposit - Bank 61747MR37 1565 Morgan Stanley Bank Subtotal and Balance Issuer Subtotal 0.196 Data Updated: SET_ANNU: 07/19/2018 13:05 Run Date: 07/19/2018 - 13:05 2018 -08 -22 2.900 03129/2018 246,000.00 0.00 246,000.00 0.00 246,000.00 No fiscal year history available Item 08P 0.00 0.00 246,000.00 0.00 246,000.00 Portfolio ENCI AC DA(PRF_DA) 7.2.0 20 of 7 g port Ver. 7.3.5 City of Encinitas - YTD Report Activity Report Page 7 July 1, 2017 - June 30, 2018 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: CA LAIF Local Agency Investment Funds SYS1012 1012 CA LAIF 1.920 49,843,468.22 61,250,000.00 Subtotal and Balance 30,545,988.93 49,843,468.22 61,250,000.00 19,139,457.15 Issuer Subtotal 15.218% 30,545,988.93 49,843,468.22 61,250,000.00 19,139,457.15 Issuer: LCA Bank Corp Certificates of Deposit - Bank 501798LT7 1566 LCA Bank Corp 2.800 03129/2018 246,000.00 0.00 Subtotal and Balance 0.00 246,000.00 0.00 246,000.00 Issuer Subtotal 0.196% 0.00 246,000.00 0.00 246,000.00 Issuer: Marathon Savings Bank Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.195% 245,000.00 0.00 0.00 245,000.00 Issuer: Medallion Bank UT Certificates of Deposit - Bank 58404DBL4 1561 Medallion Bank UT 2.900 03128/2018 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.198% 0.00 249,000.00 0.00 249,000.00 Issuer: Morgan Stanley Bank Certificates of Deposit - Bank 61747MR37 1565 Morgan Stanley Bank Subtotal and Balance Issuer Subtotal 0.196 Data Updated: SET_ANNU: 07/19/2018 13:05 Run Date: 07/19/2018 - 13:05 2018 -08 -22 2.900 03129/2018 246,000.00 0.00 246,000.00 0.00 246,000.00 No fiscal year history available Item 08P 0.00 0.00 246,000.00 0.00 246,000.00 Portfolio ENCI AC DA(PRF_DA) 7.2.0 20 of 7 g port Ver. 7.3.5 Passbook /Checking Accounts SYS1010 1010 Union Bank Checking Acct. Subtotal and Balance 2,615,796.05 Issuer Subtotal 1.378% 2,615,796.05 Data Updated: SET_ANNU: 07/19/2018 13:05 Run Date: 07/19/2018 - 13:05 No fiscal year history available 2018 -08 -22 Item 08P 42,196,936.27 43,079,351.13 42,196,936.27 43,079,351.13 1,733,381.19 42,196,936.27 43,079,351.13 1,733,381.19 Portfolio ENCI AC DA(PRF_DA) 7.2.0 21 of 7 g Port Ver. 7.3.5 City of Encinitas - YTD Report Activity Report Page 8 July 1, 2017 - June 30, 2018 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: Sallie Mae Bank /Murray Certificates of Deposit - Bank 795450S89 1570 Sallie Mae Bank/Murray 3.300 06127/2018 245,000.00 0.00 Subtotal and Balance 0.00 245,000.00 0.00 245,000.00 Issuer Subtotal 0.195% 0.00 245,000.00 0.00 245,000.00 Issuer: Synchrony Bank Certificates of Deposit - Bank Subtotal and Balance 248,000.00 248,000.00 Issuer Subtotal 0.197% 248,000.00 0.00 0.00 248,000.00 Issuer: Texas Exchange Bank Certificates of Deposit - Bank 88241TCP3 1581 Texas Exchange Bank 3.250 06129/2018 245,000.00 0.00 Subtotal and Balance 0.00 245,000.00 0.00 245,000.00 Issuer Subtotal 0.195% 0.00 245,000.00 0.00 245,000.00 Issuer: TIAA FSB Certificates of Deposit - Bank 87270LAD5 1554 TIAA FSB 2.150 07119/2017 245,000.00 0.00 Subtotal and Balance 0.00 245,000.00 0.00 245,000.00 Issuer Subtotal 0.195% 0.00 245,000.00 0.00 245,000.00 Issuer: Union Bank Checking Acct. Passbook /Checking Accounts SYS1010 1010 Union Bank Checking Acct. Subtotal and Balance 2,615,796.05 Issuer Subtotal 1.378% 2,615,796.05 Data Updated: SET_ANNU: 07/19/2018 13:05 Run Date: 07/19/2018 - 13:05 No fiscal year history available 2018 -08 -22 Item 08P 42,196,936.27 43,079,351.13 42,196,936.27 43,079,351.13 1,733,381.19 42,196,936.27 43,079,351.13 1,733,381.19 Portfolio ENCI AC DA(PRF_DA) 7.2.0 21 of 7 g Port Ver. 7.3.5 City of Encinitas - YTD Report Activity Report Page 9 July 1, 2017 - June 30, 2018 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: Union Bank Custody Acct. Money Market Funds SYS1004 1004 Union Bank Custody Acct. 1.820 50,371,109.01 50,431,913.24 Subtotal and Balance 62,473.38 50,371,109.01 50,431,913.24 1,669.15 Issuer Subtotal 0.001% 62,473.38 50,371,109.01 50,431,913.24 1,669.15 Issuer: U.S. Treasury Notes U.S. Treasury Coupon Securities 91282BUEB 1490 U.S. Treasury Notes 0.750 01102/2018 0.00 2,000,000.00 912828VK3 1491 U.S. Treasury Notes 1.375 07102/2018 0.00 2,000,000.00 912828TG5 1511 U.S. Treasury Notes 0.500 07131/2017 0.00 2,000,000.00 91282BT34 1556 U.S. Treasury Notes 1.125 02/23/2018 2,000,000.00 0.00 91282BL24 1572 U.S. Treasury Notes 1.875 06126/2018 2,000,000.00 0.00 91282BF96 1574 U.S. Treasury Notes 2.000 06126/2018 2,000,000.00 0.00 912828VP2 1576 U.S. Treasury Notes 2.000 06126/2018 2,000,000.00 0.00 912828WW6 1577 U.S. Treasury Notes 1.625 06126/2018 2,000,000.00 0.00 912828XQB 1578 U.S. Treasury Notes 2.000 06126/2018 4,000,000.00 0.00 9128282W9 1579 U.S. Treasury Notes 1.875 06126/2018 2,000,000.00 0.00 9128282,18 1583 U.S. Treasury Notes 1.500 06127/2018 2,000,000.00 0.00 Subtotal and Balance 34,000,000.00 18,000,000.00 6,000,000.00 46,000,000.00 Issuer Subtotal 36.575% 34,000,000.00 18,000,000.00 6,000,000.00 46,000,000.00 Issuer: Wells Fargo Bank Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.195% 245,000.00 0.00 0.00 245,000.00 Issuer: Winter Hill Bank FSB Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.195% 245,000.00 0.00 0.00 245,000.00 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018 - 13:05 No fiscal year history available DA (PRF_DA) 7.2.0 /�/� 2018 -08 -22 Item 08P 22 of 75'0'Ver. 7.3.5 Percent CUSIP Investment # Issuer of Portfolio City of Encinitas - YTD Report Activity Report July 1, 2017 - June 30, 2018 Par Value Beginning Current Transaction Balance Rate Date Total 100.000% 116,421,168.36 Data Updated: SET_ANNU: 07/19/2018 13:05 Run Date: 07/19/2018 - 13:05 No fiscal year history available 2018 -08 -22 Item 08P Page 10 Par Value Purchases or Redemptions or Deposits Withdrawals Ending Balance 182, 606, 267.49 173, 257, 264.37 125, 770,171.48 Portfolio ENCI AC DA(PRF_DA) 7.2.0 23 of 75Port le, 7.3.5 City of Encinitas - Qtr Inv Report CITY OF ENCINITAS 505 S. VULCAN Interest Earnings g ENCINITAS, ENCINITAS, CA 9 (760)633 -2641 Sorted by Fund - Fund July 1, 2017 - June 30, 2018 Yield on Beginning Book Value Adjusted Interest Earnings Security Ending Beginning Ending Maturity CurrentAnnualized Interest Amortization/ Adjusted Interest CUSIP Investment# Fund Type Par Value Book Value Book Value Date Rate Yield Earned Accretion Earnings Fund: General Investments SYS1012 1012 001 LA5 19,139,457.15 30,545,988.93 19,139,457.15 1.920 1.409 430,465.60 0.00 430,465.60 SYS1584 1584 001 LA1 4,001,806.36 0.00 4,001,806.36 1.910 708.939 1,049.40 0.00 1,049.40 SYS1003 1003 001 LA1 1,024,857.63 1,010,910.00 1,024,857.63 2.050 1.464 14,797.24 0.00 14,79724 SYS1004 1004 001 LA3 1,669.15 62,473.38 1,669.15 1.820 15.540 9,708.67 0.00 9,708.67 313379EE5 1499 001 FAC 2,000,000.00 2,008,511.27 2,004,152.72 06/14/2019 1.625 1.401 32,500.00 -4,358.55 28,141.45 3130A4TR3 1495 001 FAC 0.00 2,000,316.59 0.0010/16/2017 0.875 0.816 5,104.17 316.59 4,787.58 3130A5E54 1497 001 FAC 2,000,000.00 2,000,000.00 2,000,000.00 08/13/2018 1.100 1.100 22,000.00 0.00 22,000.00 3130AABG2 1555 001 FAC 2,000,000.00 0.00 1,958,242.5711/29 /2021 1.875 2.581 13,333.33 4,352.57 17,685.90 313378JP7 1575 001 FAC 2,000,000.00 0.00 1,994,200.21 09/10/2021 2.375 5.182 1,319.45 86.10 1,405.55 3130A8QS5 1524 001 FAC 2,000,000.00 1,950,414.11 1,961,336.24 07/14/2021 1.125 1.807 22,500.00 12,734.63 35,234.63 3130AEBM1 1573 001 FAC 2,000,000.00 0.00 2,004,729.88 06/10/2022 2.750 2.821 763.89 8.10 771.99 3130A53Z0 1493 001 FAC 2,000,000.00 1,999,486.39 1,999,878.1310/23 /2018 1.050 1.070 21,000.00 391.74 21,391.74 313383HU8 1513 001 FAC 2,000,000.00 2,030,155.71 2,019,923.80 06/1212020 1.750 1.220 35,000.00 - 10,231.91 24,768.09 3133782M2 1498 001 FAC 2,000,000.00 2,005,896.06 2,002,399.22 03/08/2019 1.500 1.321 30,000.00 3,496.84 26,503.16 3135GOTG8 1504 001 FAC 0.00 1,998,633.50 0.00 02/08/2018 0.875 0.980 10,548.61 1,366.50 11,915.11 3135GOYM9 1503 001 FAC 2,000,000.00 2,015,299.51 2,002,695.80 09/18/2018 1.875 1.235 37,500.00 - 12,603.71 24,89629 3135GOZG1 1506 001 FAC 2,000,000.00 2,006,553.40 2,003,570.82 09/1212019 1.750 1.596 35,000.00 - 2,982.58 32,017.42 3135GOYT4 1505 001 FAC 2,000,000.00 2,009,732.79 2,002,808.2811/27 /2018 1.625 1.273 32,500.00 -6,924.51 25,575.49 3135GOE33 1501 001 FAC 2,000,000.00 1,999,279.01 1,999,963.86 07/20/2018 1.125 1.160 22,500.00 684.85 23,184.85 3136GOZH7 1480 001 FAC 0.00 2,000,050.15 0.00 09/05/2017 1.050 1.018 3,733.33 -50.15 3,683.18 3135GOZY2 1507 001 FAC 2,000,000.00 2,004,841.82 2,002,826.7311/26 /2019 1.750 1.645 35,000.00 - 2,015.09 32,984.91 3135GOZA4 1500 001 FAC 2,000,000.00 2,015,812.06 2,006,131.21 02/19/2019 1.875 1.380 37,500.00 - 9,680.85 27,819.15 3136GOYE5 1494 001 FAC 0.00 1,000,344.39 0.00 08/28/2017 1.000 0.779 1,583.33 344.39 1,238.94 3134GSAX3 1560 001 FAC 2,000,000.00 0.00 1,978,334.83 07/01/2022 2.220 2.651 15,910.00 2,408.16 18,318.16 3137EAEC9 1557 001 FAC 2,000,000.00 0.00 1,919,548.28 08/1212021 1.125 2.578 8,000.00 9,264.78 17,264.78 3137EADR7 1512 001 FAC 2,000,000.00 2,013,283.88 2,008,595.45 05/01/2020 1.375 1.133 27,500.00 -4,688.43 22,811.57 3137EAEB1 1559 001 FAC 2,000,000.00 0.00 1,975,207.72 07/19/2019 0.875 2.203 6,222.22 8,954.94 15,177.16 3137EADP1 1492 001 FAC 0.00 1,998,049.52 0.00 03/07/2018 0.875 1.020 11,958.33 1,950.48 13,908.81 3134G9N94 1537 001 FAC 2,000,000.00 2,028,119.87 2,009,740.90 07/27/2021 1.875 1.693 37,500.00 3,170.64 34,329.36 3133EC4Q4 1558 001 FAC 2,000,000.00 0.00 1,927,838.6011/23 /2022 1.820 2.786 12,942.22 5,838.60 18,780.82 Portfolio ENCI Data Updated: SET QTR: 07/19/2018 13:02 AC Run Date: 07/19/2018- 13:02 No fiscal year history available IE (PRF_IE) 7.2.0 2018 -08 -22 Item 08P 24 of 73'n Ver. 7.3.5 City of Encinitas - Qtr Inv Report Interest Earnings Page 2 July 1, 2017 - June 30, 2018 Adjusted Interest Earnings Security Ending Beginning Ending Maturity CurrentAnnualized Interest Amortization/ Adjusted Interest CUSIP Investment # Fund Type Par Value Book Value Book Value Date Rate Yield Earned Accretion Earnings Fund: General Investments 3133EDSU7 1508 001 FAC 0.00 1,000,205.35 0.00 08/15/2017 1.000 0.825 1,222.22 - 205.35 1,016.87 3133EEM98 1496 001 FAC 0.00 1,999,475.61 0.00 05/21/2018 1.000 1.031 17,777.78 524.39 18,302.17 3133EHCT8 1536 001 FAC 2,000,000.00 2,040,847.93 2,022,949.19 03/15/2022 2.150 1.804 43,000.00 -6,193.18 36,806.82 3133EHNX7 1534 001 FAC 2,000,000.00 1,994,339.58 1,995,764.58 06/21/2021 1.650 1.726 33,000.00 1,425.00 34,425.00 912828S76 1523 001 TRC 2,000,000.00 1,949,240.83 1,961,056.57 07/31/2021 1.125 1.802 22,500.00 12,623.75 35,123.75 912828T34 1556 001 TRC 2,000,000.00 0.00 1,913,259.86 09/30/2021 1.125 2.581 7,881.01 9,353.61 17,234.62 912828P87 1539 001 TRC 2,000,000.00 1,973,038.86 1,975,058.26 02/28/2021 1.125 1.615 22,500.00 9,356.36 31,856.36 9128281`96 1574 001 TRC 2,000,000.00 0.00 1,964,958.6810/31 /2021 2.000 2.657 543.48 169.28 712.76 912828124 1572 001 TRC 2,000,000.00 0.00 1,946,614.34 08/31/2022 1.875 2.734 509.51 214.88 724.39 912828Q37 1540 001 TRC 2,000,000.00 1,979,574.81 1,980,562.14 03/31/2021 1.250 1.620 25,000.00 7,066.56 32,066.56 912828A42 1538 001 TRC 2,000,000.00 2,031,741.17 2,020,292.7711/30 /2020 2.000 1.556 40,000.00 - 8,388.29 31,611.71 912828XK1 1509 001 TRC 2,000,000.00 1,998,026.19 1,999,927.09 07/15/2018 0.875 0.971 17,500.00 1,900.90 19,400.90 912828UE8 1490 001 TRC 0.00 1,997,320.95 0.0012/31/2017 0.750 1.012 7,459.24 2,679.05 10,13829 912828VK3 1491 001 TRC 0.00 2,004,383.92 0.00 06/30/2018 1.375 1.153 27,425.27 -4,383.92 23,041.35 912828VP2 1576 001 TRC 2,000,000.00 0.00 1,994,710.85 07/31/2020 2.000 2.558 552.48 140.75 693.23 912828XQ8 1578 001 TRC 4,000,000.00 0.00 3,923,878.66 07/31/2022 2.000 2.755 1,104.98 363.47 1,468.45 912828WW6 1577 001 TRC 2,000,000.00 0.00 1,997,369.45 07/31/2019 1.625 2.385 448.90 199.22 648.12 9128282,18 1583 001 TRC 2,000,000.00 0.00 1,972,789.41 07/15/2020 1.500 2.562 331.49 218.62 550.11 9128282W9 1579 001 TRC 2,000,000.00 0.00 1,942,253.69 09/30/2022 1.875 2.746 512.30 214.76 727.06 912828TH3 1510 001 TRC 2,000,000.00 1,986,975.51 1,993,230.69 07/31/2019 0.875 1.196 17,500.00 6,255.18 23,755.18 912828TG5 1511 001 TRC 0.00 1,999,523.59 0.00 07/31/2017 0.500 0.794 828.73 476.41 1,305.14 912828199 1522 001 TRC 2,000,000.00 1,984,352.83 1,989,041.8410/31 /2020 1.375 1.622 27,500.00 4,689.01 32,189.01 912828132 1520 001 TRC 2,000,000.00 1,987,456.15 1,991,413.37 08/31/2020 1.375 1.583 27,500.00 3,957.22 31,45722 912828165 1521 001 TRC 2,000,000.00 1,986,282.31 1,990,500.47 09/30/2020 1.375 1.597 27,500.00 4,218.16 31,718.16 912828.184 1518 001 TRC 2,000,000.00 2,010,876.97 2,006,922.69 03/31/2020 1.375 1.171 27,500.00 3,954.28 23,545.72 912828.150 1517 001 TRC 2,000,000.00 2,011,113.40 2,006,944.44 02/29/2020 1.375 1.160 27,500.00 -4,168.96 23,331.04 912828XM7 1514 001 TRC 2,000,000.00 2,028,572.97 2,019,310.86 07/31/2020 1.625 1.146 32,500.00 - 9,262.11 23,237.89 912828TNO 1515 001 TRC 2,000,000.00 1,998,228.42 1,999,045.90 08/31/2019 1.000 1.042 20,000.00 817.48 20,817.48 912828TV2 1516 001 TRC 2,000,000.00 2,008,166.85 2,004,668.1410/31 /2019 1.250 1.071 25,000.00 3,498.71 21,50129 79545OS89 1570 001 BCD 245,000.00 0.00 245,000.00 06/27/2023 3.300 3.300 88.60 0.00 88.60 02587DLV8 1438 001 BCD 0.00 248,000.00 0.0010/25/2017 1.500 1.500 1,182.24 0.00 1,18224 02006131\11 1527 001 BCD 245,000.00 245,000.00 245,000.00 06/2212020 1.900 1.900 4,655.00 0.00 4,655.00 05580AMB7 1562 001 BCD 246,000.00 0.00 246,000.00 03/29/2023 2.900 2.900 1,837.25 0.00 1,83725 0606247A5 1454 001 BCD 248,000.00 248,000.00 248,000.0011/13 /2018 2.050 2.050 5,084.00 0.00 5,084.00 20033AUE4 1525 001 NCB 245,000.00 245,011.91 245,000.00 06/19/2020 1.750 1.774 4,347.05 0.00 4,347.05 20033AZK5 1571 001 BCD 245,000.00 0.00 245,000.00 06/29/2023 3.300 3.300 44.30 0.00 44.30 254672CB2 1477 001 BCD 248,000.00 248,000.00 248,000.0010/22 /2018 1.800 1.800 4,464.00 0.00 4,464.00 Portfolio ENCI Data Updated: SET QTR: 07/19/2018 13:02 AC Run Date: 07119/2018 - 13:02 No fiscal year history available IE (PRF_IE) 7.2.0 2018 -08 -22 Item 08P 25 of 73'ri Ver. 7.3.5 Portfolio ENCI Data Updated: SET QTR: 07/19/2018 13:02 AC Run Date: 07/19/2018- 13:02 No fiscal year history available IE (PRF_IE) 7.2.0 2018 -08 -22 Item 08P 26 of 73'd Ver. 7.3.5 City of Encinitas - Qtr Inv Report Interest Earnings Page 3 July 1, 2017 - June 30, 2018 Adjusted Interest Earnings Security Ending Beginning Ending Maturity CurrentAnnualized Interest Amortization/ Adjusted Interest CUSIP Investment # Fund Type Par Value Book Value Book Value Date Rate Yield Earned Accretion Earnings Fund: General Investments 87164YEB6 1478 001 BCD 248,000.00 248,000.00 248,000.0010/17 /2019 2.000 2.000 4,960.00 0.00 4,960.00 1404203Q1 1553 001 BCD 245,000.00 0.00 245,000.00 07/19/2022 2.300 2.300 5,357.11 0.00 5,357.11 45083ADZ2 1482 001 BCD 0.00 248,000.00 0.0012/04/2017 1.200 1.200 1,271.93 0.00 1,271.93 85628431`9 1484 001 BCD 248,000.00 248,000.00 248,000.0012/05 /2018 2.000 2.000 4,960.00 0.00 4,960.00 17284C5K6 1487 001 BCD 248,000.00 248,000.00 248,000.0012/10 /2019 2.200 2.200 5,456.00 0.00 5,456.00 975875AK1 1526 001 BCD 245,000.00 245,000.00 245,000.00 06/28/2021 1.800 1.800 4,410.00 0.00 4,410.00 38148PIl 1528 001 BCD 245,000.00 245,000.00 245,000.00 06/21/2022 2.350 2.350 5,757.50 0.00 5,757.50 169894AN2 1529 001 BCD 245,000.00 245,000.00 245,000.00 06/30/2020 1.700 1.700 4,165.00 0.00 4,165.00 17670DAC8 1530 001 BCD 245,000.00 245,000.00 245,000.0012/30 /2021 1.900 1.900 4,655.00 0.00 4,655.00 337630BD8 1531 001 BCD 245,000.00 245,000.00 245,000.00 06/23/2021 1.900 1.900 4,655.00 0.00 4,655.00 56585YAB6 1532 001 BCD 245,000.00 245,000.00 245,000.00 06/29/2020 1.700 1.700 4,165.00 0.00 4,165.00 06653ABM5 1533 001 BCD 245,000.00 245,000.00 245,000.00 06/30/2022 2.000 2.000 4,900.00 0.00 4,900.00 949763.1132 1535 001 BCD 245,000.00 245,000.00 245,000.00 06/30/2022 2.250 2.250 5,512.50 0.00 5,512.50 17801 GSB7 1551 001 BCD 245,000.00 0.00 245,000.00 02/03/2022 2.000 2.000 4,873.15 0.00 4,873.15 14042RGN5 1552 001 BCD 245,000.00 0.00 245,000.00 07/19/2022 2.300 2.300 5,357.11 0.00 5,357.11 872701 1554 001 BCD 245,000.00 0.00 245,000.00 07/19/2022 2.150 2.150 5,007.73 0.00 5,007.73 58404DBL4 1561 001 BCD 249,000.00 0.00 249,000.00 03/28/2023 2.900 2.900 1,879.44 0.00 1,879.44 17312QH69 1563 001 BCD 246,000.00 0.00 246,000.00 03/29/2023 2.850 2.890 1,830.65 0.00 1,830.65 45581 EASO 1564 001 BCD 249,000.00 0.00 249,000.00 03/29/2023 2.900 2.900 1,859.65 0.00 1,859.65 61747MR37 1565 001 BCD 246,000.00 0.00 246,000.00 03/29/2023 2.900 2.900 1,837.25 0.00 1,83725 5017981 1566 001 BCD 246,000.00 0.00 246,000.00 03/29/2023 2.800 2.800 1,773.90 0.00 1,773.90 29278TAU4 1568 001 BCD 246,000.00 0.00 246,000.00 03/29/2023 2.850 2.850 1,805.57 0.00 1,805.57 33646CJPO 1569 001 BCD 246,000.00 0.00 246,000.00 04/11 /2023 2.850 2.850 1,555.87 0.00 1,555.87 02589AAM4 1580 001 BCD 245,000.00 0.00 245,000.00 06/26/2023 3.300 3.300 110.75 0.00 110.75 88241TCP3 1581 001 BCD 245,000.00 0.00 245,000.00 06/29/2023 3.250 3.250 43.63 0.00 43.63 211163HH6 1582 001 BCD 245,000.00 0.00 245,000.00 06/29/2022 3.100 3.100 41.62 0.00 41.62 Subtotal 124,036,790.29 113,859,908.45 123,431,439.48 1.455 1,587,940.98 13,986.47 1,601,927.45 Total 124,036,790.29 113,859,908.45 123,431,439.48 1.455 1,587,940.98 13,986.47 1,601,927.45 Portfolio ENCI Data Updated: SET QTR: 07/19/2018 13:02 AC Run Date: 07/19/2018- 13:02 No fiscal year history available IE (PRF_IE) 7.2.0 2018 -08 -22 Item 08P 26 of 73'd Ver. 7.3.5 Sec. CUSIP Investment# Fund Type Issuer Managed Pool Accounts SYS1584 1584 001 LA1 COUNTY Subtotal Certificates of Deposit - Bank 17801 GSB7 1551 001 BCD CNBMET 14042RGN5 1552 001 BCD CAPINA 1404203Q1 1553 001 BCD CAPONE 87270LAD5 1554 001 BCD TIAAFS 58404DBL4 1561 001 BCD MEDALL 05580AMB7 1562 001 BCD BMWBNK 17312QH69 1563 001 BCD CITIBK 29278TAU4 1568 001 BCD ENERBK 45581 EASO 1564 001 BCD INDUST 501798LT7 1566 001 BCD LCABNK 61747MR37 1565 001 BCD MORSTN 33646CJPO 1569 001 BCD FSRCBK 02589AAM4 1580 001 BCD AMEXNL 79545OS89 1570 001 BCD SMAEBN 20033AZK5 1571 001 BCD COMNTY 211163HH6 1582 001 BCD CONTIN 88241TCP3 1581 001 BCD TEXEXC Subtotal U.S. Treasury Coupon Securities 912828T34 1556 001 TRC UST 912828124 1572 001 TRC UST 9128281`96 1574 001 TRC UST 912828VP2 1576 001 TRC UST 912828WW6 1577 001 TRC UST 912828XQ8 1578 001 TRC UST 9128282W9 1579 001 TRC UST 9128282J8 1583 001 TRC UST Received = Accrued Interest at Purchase was received by report ending date. Run Date: 08/0912018 - 17:16 2018 -08 -22 City of Encinitas FY 2018 Purchases Report Sorted by Security Type - Purchase Date July 1, 2017 - June 30, 2018 Original Purchase Principal Accrued Interest Rate at Par Value Date Payment Periods Purchased at Purchase Purchase 1,800.96 06/01/2018 07 /15- Quarterly 1,800.96 1.910 1,800.96 1,800.96 0.00 245,000.00 07/03/2017 08/03- Monthly 245,000.00 2.000 245,000.00 07/19/2017 01119 -07/19 245,000.00 2.300 245,000.00 07/19/2017 01/19 -07/19 245,000.00 2.300 245,000.00 07/19/2017 01/19 -07/19 245,000.00 2.150 249,000.00 03/28/2018 04128- Monthly 249,000.00 2.900 246,000.00 03/29/2018 09129 -03/29 246,000.00 2.900 246,000.00 03/29/2018 09129- Monthly 246,000.00 2.850 246,000.00 03/29/2018 09129 -03/29 246,000.00 2.850 249,000.00 03/29/2018 04129- Monthly 249,000.00 2.900 246,000.00 03/29/2018 09129 -03/29 246,000.00 2.800 246,000.00 03/29/2018 09129 -03/29 246,000.00 2.900 246,000.00 04/11 /2018 10111 -04/11 246,000.00 2.850 245,000.00 06/26/2018 12126 -06/26 245,000.00 3.300 245,000.00 06/27/2018 12127 -06/27 245,000.00 3.300 245,000.00 06/29/2018 07129- Monthly 245,000.00 3.300 245,000.00 06/29/2018 12129 -06/29 245,000.00 3.100 245,000.00 06/29/2018 07129- Monthly 245,000.00 3.250 4,179,000.00 4,179,000.00 0.00 2,000,000.00 02/23/2018 03131 -09/30 1,903,906.25 Received 1.125 2,000,000.00 06/26/2018 08131 -02/28 1,934,375.00 12,024.46 1.875 2,000,000.00 06/26/2018 10131 -04/30 1,958,593.75 6,195.65 2.000 2,000,000.00 06/26/2018 07131 -01/31 1,978,437.50 16,132.60 2.000 2,000,000.00 06/26/2018 07131 -01/31 1,984,062.50 13,107.73 1.625 4,000,000.00 06/26/2018 07131 -01/31 3,891,250.00 32,265.19 2.000 2,000,000.00 06/26/2018 09/30 -03/31 1,933,125.00 8,913.93 1.875 2,000,000.00 06/27/2018 07/15 -01/15 1,959,062.50 13,50829 1.500 Item 08P CITY OF ENCINITAS 505 S. VULCAN ENCINITAS, ENCINITAS, CA 9 (760)633 -2641 Maturity Ending Date YTM Book Value 1.910 4,001,806.36 4,001,806.36 0210312022 2.000 245,000.00 07/1912022 2.300 245,000.00 07/1912022 2.300 245,000.00 07/1912022 2.150 245,000.00 0312812023 2.900 249,000.00 0312912023 2.900 246,000.00 0312912023 2.850 246,000.00 0312912023 2.850 246,000.00 03/2912023 2.900 249,000.00 03/2912023 2.800 246,000.00 03/2912023 2.900 246,000.00 04/1112023 2.850 246,000.00 06/2612023 3.300 245,000.00 06/2712023 3.300 245,000.00 06/2912023 3.300 245,000.00 06/2912022 3.100 245,000.00 06/2912023 3250 245,000.00 4,179,000.00 09/3012021 2.530 1, 913, 259.86 0813112022 2.710 1,946,614.34 10/3112021 2.650 1, 964, 958.68 07/3112020 2.531 1,994,710.85 07/3112019 2.365 1,997,369.45 07/3112022 2.705 3,923,878.66 09/3012022 2.711 1,942,253.69 07/1512020 2.531 1,972,789.41 Portfolio FY 18 AC PU(PRF_PU) 7.1.1 27 of 71p" Ver. 7.3.5 City of Encinitas FY 2018 Purchases Report Page 2 July 1, 2017 - June 30, 2018 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 Subtotal 18,000,000.00 17,542,812.50 102,147.85 17,655,834.94 Federal Agency Coupon Securities 3133EC4O4 1558 001 FAC FFCRED 2,000,000.00 02/23/2018 05/23 -11/23 1,922,000.00 Received 1.820 11/2312022 2.700 1,927,838.60 3130AABG2 1555 001 FAC FHLB 2,000,000.00 02/23/2018 05129 -11/29 1,953,890.00 Received 1.875 11/2912021 2.520 1,958,242.57 3137EAEC9 1557 001 FAC FHLMC 2,000,000.00 02/23/2018 08/12 -02/12 1,909,596.00 687.50 1.125 08/12/2021 2.493 1,919,548.28 3137EAEB1 1559 001 FAC FHLMC 2,000,000.00 02/23/2018 07/19 -01/19 1,964,600.00 1,652.78 0.875 07/1912019 2.160 1,975,207.72 3134GSAX3 1560 001 FAC FHLMC 2,000,000.00 02/23/2018 07101 -01/01 1,970,500.00 5,426.67 2.220 07/0112022 2.580 1,978,334.83 3130AEBM1 1573 001 FAC FHLB 2,000,000.00 06/26/2018 12/10 -06/10 1,997,694.00 7,027.78 2.750 06/1012022 2.780 2,004,729.88 313378JP7 1575 001 FAC FHLB 2,000,000.00 06/26/2018 09/10 -03/10 1,980,128.00 13,986.11 2.375 09/1012021 2.712 1,994,200.21 Subtotal 14,000,000.00 13,698,408.00 28,780.84 13,758,102.09 Total Purchases 36,180,800.96 Received = Accrued Interest at Purchase was received by report ending date. 35,422, 021.46 130,928.69 39,594,743.39 Portfolio FY 18 AC Run Date: 08/0912018 - 17:16 PU (PRF_PU) 7.1.1 2018 -08 -22 Item 08P 28 of 71P"1r.7.3.5 CITY OF ENCINITAS City of Encinitas FY 2018 505 S. VULCAN Accrued Interest ENCINITAS, ENCINITAS, CA 9 (760)633 -2641 Sorted by Security Type - Maturity Date July 1, 2017 - June 30, 2018 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 Local Agency Investment Funds SYS1012 1012 LA5 19,139,457.15 1.920 90,574.37 0.00 430,465.60 343,468.22 177,571.75 Subtotal 19,139,457.15 90,574.37 0.00 430,465.60 343,468.22 177,571.75 Managed Pool Accounts SYS1003 1003 SYS 1584 1584 LA1 LA1 Subtotal 1,024,857.63 4,001,806.36 5,026,663.99 2.050 1.910 873.64 0.00 873.64 0.00 0.00 0.00 14,797.24 1,049.40 15,846.64 13,947.63 5.40 13,953.03 1,723.25 1,044.00 2,767.25 Money Market Funds SYS 1004 1004 LA3 1,669.15 1.820 283.79 0.00 9,708.67 7,735.26 2,257.20 Subtotal 1,669.15 283.79 0.00 9,708.67 7,735.26 2,257.20 Certificates of Deposit - Bank 02587DLVB 1438 BCD 0.00 10/2512017 1.500 682.85 0.00 1,182.24 1,865.10 -0.01 45083ADZ2 1482 BCD 0.00 12/0412017 1.200 220.14 0.00 1,271.93 1,492.08 -0.01 254672CB2 1477 BCD 248,000.00 10/22/2018 1.800 856.10 0.00 4,464.00 4,464.00 856.10 0606247A5 1454 BCD 248,000.00 11/1312018 2.050 696.43 0.00 5,084.00 5,084.00 696.43 85628431`9 1484 BCD 248,000.00 12/0512018 2.000 353.32 0.00 4,960.00 4,960.00 353.32 87164YEB6 1478 BCD 248,000.00 10/1712019 2.000 1,019.18 0.00 4,960.00 4,960.00 1,019.18 17284C5K6 1487 BCD 248,000.00 12/1012019 2.200 313.91 0.00 5,456.00 5,456.00 313.91 02006131\11 1527 BCD 245,000.00 06/22/2020 1.900 114.78 0.00 4,655.00 4,655.00 114.78 56585YAB6 1532 BCD 245,000.00 06/2912020 1.700 34.23 0.00 4,165.00 4,165.01 34.22 169894AN2 1529 BCD 245,000.00 06/3012020 1.700 11.41 0.00 4,165.00 3,811.27 365.14 337630BDB 1531 BCD 245,000.00 06/2312021 1.900 102.03 0.00 4,655.00 4,655.02 102.01 975875AK1 1526 BCD 245,000.00 06/2812021 1.800 60.41 0.00 4,410.00 4,410.03 60.38 17670DAC8 1530 BCD 245,000.00 12/3012021 1.900 12.75 0.00 4,655.00 4,259.65 408.10 17801 GSB7 1551 BCD 245,000.00 02/0312022 2.000 0.00 0.00 4,873.15 4,497.23 375.92 38148PKX4 1528 BCD 245,000.00 06/2112022 2.350 157.74 0.00 5,757.50 5,757.50 157.74 211163HH6 1582 BCD 245,000.00 06/2912022 3.100 0.00 0.00 41.62 0.00 41.62 06653ABM5 1533 BCD 245,000.00 06/3012022 2.000 13.42 0.00 4,900.00 4,483.82 429.60 949763JG2 1535 BCD 245,000.00 06/3012022 2.250 15.10 0.00 5,512.50 5,044.32 483.28 14042RGN5 1552 BCD 245,000.00 07/1912022 2.300 0.00 0.00 5,357.11 2,840.66 2,516.45 1404203Q1 1553 BCD 245,000.00 07/1912022 2.300 0.00 0.00 5,357.11 2,840.66 2,516.45 87270LAD5 1554 BCD 245,000.00 07/1912022 2.150 0.00 0.00 5,007.73 2,655.40 2,352.33 58404DBL4 1561 BCD 249,000.00 03/2812023 2.900 0.00 0.00 1,879.44 1,820.09 59.35 Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Portfolio FY18 AP Run Dale: 08/09/"IP8.08 -22 Item 08P At) 7.2.8 29 of -/Tort 7.3. City of Encinitas FY 2018 Accrued Interest Sorted by Security Type - Maturity Date Page 2 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 Certificates of Deposit - Bank 05580AMB7 1562 BCD 246,000.00 03/2912023 2.900 0.00 0.00 1,837.25 0.00 1,837.25 17312QH69 1563 BCD 246,000.00 03/2912023 2.850 0.00 0.00 1,830.65 0.00 1,830.65 29278TAU4 1568 BCD 246,000.00 03/2912023 2.850 0.00 0.00 1,805.57 0.00 1,805.57 45581 EASO 1564 BCD 249,000.00 03/2912023 2.900 0.00 0.00 1,859.65 1,820.09 39.56 501798LT7 1566 BCD 246,000.00 03/2912023 2.800 0.00 0.00 1,773.90 0.00 1,773.90 61747MR37 1565 BCD 246,000.00 03/2912023 2.900 0.00 0.00 1,837.25 0.00 1,837.25 33646CJPO 1569 BCD 246,000.00 04/1112023 2.850 0.00 0.00 1,555.87 0.00 1,555.87 02589AAM4 1580 BCD 245,000.00 06/2612023 3.300 0.00 0.00 110.75 0.00 110.75 795450589 1570 BCD 245,000.00 06/2712023 3.300 0.00 0.00 88.60 0.00 88.60 20033AZK5 1571 BCD 245,000.00 06/2912023 3.300 0.00 0.00 44.30 0.00 44.30 88241TCP3 1581 BCD 245,000.00 06/2912023 3.250 0.00 0.00 43.63 0.00 43.63 Subtotal 7,624,000.00 4,663.80 0.00 105,556.75 85,996.93 24,223.62 Negotiable CDs 20033AUE4 1525 NCB 245,000.00 06/1912020 1.750 131.01 0.00 4,347.05 4,280.46 197.60 Subtotal 245,000.00 131.01 0.00 4,347.05 4,280.46 197.60 U.S. Treasury Coupon Securities 912828TG5 1511 TRC 0.00 07/3112017 0.500 4,171.27 0.00 828.73 5,000.00 0.00 91282BUEB 1490 TRC 0.00 12/3112017 0.750 40.76 0.00 7,459.24 7,500.00 0.00 912828VK3 1491 TRC 0.00 06/3012018 1.375 74.73 0.00 27,425.27 13,750.00 13,750.00 912828XK1 1509 TRC 2,000,000.00 07/1512018 0.875 8,073.20 0.00 17,500.00 17,500.00 8,073.20 912828TH3 1510 TRC 2,000,000.00 07/3112019 0.875 7,299.72 0.00 17,500.00 17,500.00 7,299.72 912828WW6 1577 TRC 2,000,000.00 07/3112019 1.625 0.00 0.00 448.90 0.00 448.90 912828TNO 1515 TRC 2,000,000.00 08/3112019 1.000 6,684.78 0.00 20,000.00 20,000.00 6,684.78 912828TV2 1516 TRC 2,000,000.00 10/3112019 1.250 4,211.96 0.00 25,000.00 25,000.00 4,211.96 91282BJ50 1517 TRC 2,000,000.00 02/2912020 1.375 9,191.58 0.00 27,500.00 27,500.00 9,191.58 91282BJ94 1518 TRC 2,000,000.00 03/3112020 1.375 6,912.57 0.00 27,500.00 27,500.00 6,912.57 9128282,18 1583 TRC 2,000,000.00 07/1512020 1.500 0.00 0.00 331.49 0.00 331.49 912828XM7 1514 TRC 2,000,000.00 07/3112020 1.625 13,556.63 0.00 32,500.00 32,500.00 13,556.63 912828VP2 1576 TRC 2,000,000.00 07/3112020 2.000 0.00 0.00 552.48 0.00 552.48 91282BL32 1520 TRC 2,000,000.00 08/3112020 1.375 9,191.58 0.00 27,500.00 27,500.00 9,191.58 91282BL65 1521 TRC 2,000,000.00 09/3012020 1.375 6,912.57 0.00 27,500.00 27,500.00 6,912.57 91282BL99 1522 TRC 2,000,000.00 10/3112020 1.375 4,633.15 0.00 27,500.00 27,500.00 4,633.15 91282BA42 1538 TRC 2,000,000.00 11/3012020 2.000 327.87 0.00 40,000.00 36,939.89 3,387.98 91282BP87 1539 TRC 2,000,000.00 02/2812021 1.125 183.42 0.00 22,500.00 15,163.04 7,520.38 91282BQ37 1540 TRC 2,000,000.00 03/3112021 1.250 204.92 0.00 25,000.00 18,920.77 6,284.15 91282BS76 1523 TRC 2,000,000.00 07/3112021 1.125 8,577.35 0.00 22,500.00 21,691.99 9,385.36 91282BT34 1556 TRC 2,000,000.00 09/3012021 1.125 0.00 0.00 7,881.01 2,225.27 5,655.74 Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Portfolio FY18 AP //��//�� Run Dale: 08/09/2�IP8.08 -22 Item 08P 8 30 of -/Tort Ver' 7.3. City of Encinitas FY 2018 Accrued Interest CUSIP Investment # Security Type Par Value Sorted by Security Type - Maturity Maturity Current * Beginning Date Rate Accrued Interest Date Adjusted Acc'd Int. at Purchase During Period Interest Earned Interest Received Page 3 * Ending Accrued Interest U.S. Treasury Coupon Securities 91282BF96 1574 TRC 2,000,000.00 10/3112021 2.000 0.00 0.00 543.48 0.00 543.48 912828XQ8 1578 TRC 4,000,000.00 07/3112022 2.000 0.00 0.00 1,104.98 0.00 1,104.98 91282BL24 1572 TRC 2,000,000.00 08/3112022 1.875 0.00 0.00 509.51 0.00 509.51 9128282W9 1579 TRC 2,000,000.00 09/3012022 1.875 0.00 0.00 512.30 0.00 512.30 Subtotal 46,000,000.00 90,248.06 0.00 407,597.39 371,190.96 126,654.49 Federal Agency Coupon Securities 3133EDSU7 1508 FAC 0.00 08/1512017 1.000 3,777.78 0.00 1,222.22 5,000.00 0.00 3136GOYE5 1494 FAC 0.00 08/2812017 1.000 3,416.67 0.00 1,583.33 5,000.00 0.00 3136GOZH7 1480 FAC 0.00 09/0512017 1.050 6,766.67 0.00 3,733.33 10,500.00 0.00 313OA4TR3 1495 FAC 0.00 10/1612017 0.875 3,645.83 0.00 5,104.17 8,750.00 0.00 3135GOTGB 1504 FAC 0.00 02/0812018 0.875 6,951.39 0.00 10,548.61 17,500.00 0.00 3137EADP1 1492 FAC 0.00 03/0712018 0.875 5,541.67 0.00 11,958.33 17,500.00 0.00 3133EEM98 1496 FAC 0.00 05/2112018 1.000 2,222.22 0.00 17,777.78 20,000.00 0.00 3135GOE33 1501 FAC 2,000,000.00 07/2012018 1.125 10,062.50 0.00 22,500.00 22,500.00 10,062.50 313OA5E54 1497 FAC 2,000,000.00 08/1312018 1.100 8,433.33 0.00 22,000.00 22,000.00 8,433.33 3135GOYM9 1503 FAC 2,000,000.00 09/1812018 1.875 10,729.17 0.00 37,500.00 37,500.00 10,729.17 313DA53ZO 1493 FAC 2,000,000.00 10/2312018 1.050 3,966.67 0.00 21,000.00 21,000.00 3,966.67 3135GOYT4 1505 FAC 2,000,000.00 11/2712018 1.625 3,069.44 0.00 32,500.00 32,500.00 3,069.44 3135GOZA4 1500 FAC 2,000,000.00 02/1912019 1.875 13,750.00 0.00 37,500.00 37,500.00 13,750.00 3133782102 1498 FAC 2,000,000.00 03/0812019 1.500 9,416.67 0.00 30,000.00 30,000.00 9,416.67 313379EE5 1499 FAC 2,000,000.00 06/1412019 1.625 1,534.72 0.00 32,500.00 32,500.00 1,534.72 3137EAEB1 1559 FAC 2,000,000.00 07/1912019 0.875 0.00 0.00 6,222.22 0.00 6,222.22 3135GDZG1 1506 FAC 2,000,000.00 09/12/2019 1.750 10,597.22 0.00 35,000.00 35,000.00 10,597.22 3135GOZY2 1507 FAC 2,000,000.00 11/2612019 1.750 3,402.78 0.00 35,000.00 35,000.00 3,402.78 3137EADR7 1512 FAC 2,000,000.00 05/0112020 1.375 4,583.33 0.00 27,500.00 27,500.00 4,583.33 313383HUB 1513 FAC 2,000,000.00 06/12/2020 1.750 1,847.22 0.00 35,000.00 35,000.00 1,847.22 3133EHNX7 1534 FAC 2,000,000.00 06/2112021 1.650 916.67 0.00 33,000.00 33,000.00 916.67 313OA8QS5 1524 FAC 2,000,000.00 07/1412021 1.125 8,625.00 0.00 22,500.00 20,687.50 10,437.50 3134G9N94 1537 FAC 2,000,000.00 07/2712021 1.875 833.34 0.00 37,500.00 22,291.67 16,041.67 3137EAEC9 1557 FAC 2,000,000.00 08/12/2021 1.125 0.00 0.00 8,000.00 0.00 8,000.00 313378JP7 1575 FAC 2,000,000.00 09/1012021 2.375 0.00 0.00 1,319.45 0.00 1,319.45 3130AABG2 1555 FAC 2,000,000.00 11/2912021 1.875 0.00 0.00 13,333.33 10,000.00 3,333.33 3133EHCTB 1536 FAC 2,000,000.00 03/1512022 2.150 955.55 0.00 43,000.00 31,294.44 12,661.11 313OAEBM1 1573 FAC 2,000,000.00 06/1012022 2.750 0.00 0.00 763.89 0.00 763.89 3134GSAX3 1560 FAC 2,000,000.00 07/0112022 2.220 0.00 0.00 15,910.00 0.00 15,910.00 3133EC4Q4 1558 FAC 2,000,000.00 11/2312022 1.820 0.00 0.00 12,942.22 9,100.00 3,842.22 Subtotal 46,000,000.00 125,045.84 0.00 614,418.88 578,623.61 160,841.11 * Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Run Dale: 08/09/ "1,8 -08 -22 Item 08P Portfolio FY18 AP 31 of ortAt) ;35 Total 124,036,790.29 311,820.51 0.00 1,587,940.98 1,405,248.47 494,513.02 2018 -08 -22 Item 08P 32 of 73 Unrealized Gains and Losses Open Positions through June 30, 2018 Page 1 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 Certificates of Deposit - Bank 1477 BCD 10122/2014 248,000.00 10122/2018 1,461 248,000.00 247,823.92 - 176.08 16,486.22 16,310.14 1.781 Discovery Bank 1.800 1,348 06130/2018 1454 BCD 11112/2013 248,000.00 11113/2018 1,827 248,000.00 247,905.76 -94.24 23,567.47 23,473.23 2.042 Bank of Baroda 2.050 1,692 06130/2018 1484 BCD 12/05/2014 248,000.00 12/05/2018 1,461 248,000.00 247,799.12 - 200.88 17,720.11 17,519.23 1.977 State Bank of India 2.000 1,304 06130/2018 1478 BCD 10117/2014 248,000.00 10117/2019 1,826 248,000.00 246,660.80 - 1,339.20 18,385.97 17,046.77 1.854 Synchrony Bank 2.000 1,353 06130/2018 1487 BCD 12/10/2014 248,000.00 12/10/2019 1,826 248,000.00 246,678.16 - 1,321.84 19,417.38 18,095.54 2.050 CIT Bank 2200 1,299 06130/2018 1527 BCD 06122/2017 245,000.00 06122 /2020 1,096 245,000.00 240,744.35 -0,255.65 4,769.78 514.13 0.205 Ally Bank 1.900 374 06130/2018 1532 BCD 06128/2017 245,000.00 06129 /2020 1,097 245,000.00 239,708.00 -5,292.00 4,199.23 - 1,092.77 -0.442 Marathon Savings Bank 1.700 368 06130/2018 1529 BCD 06130/2017 245,000.00 06130 /2020 1,096 245,000.00 239,698.20 -5,301.80 4,176.41 - 1,125.39 -0.458 Chippewa Valley Bank 1.700 366 06130/2018 1531 BCD 06123/2017 245,000.00 06123 /2021 1,461 245,000.00 237,338.85 - 7,661.15 4,757.03 - 2,904.12 -1.160 Firstmst Savings Bank 1.900 373 06130/2018 1526 BCD 06126/2017 245,000.00 06128 /2021 1,463 245,000.00 236,586.70 - 8,413.30 4,470.41 - 3,942.89 -1.588 Winter Hill Bank FSB 1.800 370 06130/2018 1530 BCD 06130/2017 245,000.00 12/30/2021 1,644 245,000.00 235,550.35 - 9,449.65 4,667.75 -0,781.90 -1.946 Citizens State Bankl 1.900 366 06130/2018 1551 BCD 07103/2017 245,000.00 02/03/2022 1,676 245,000.00 236,052.60 - 8,947.40 4,873.15 -0,074.25 -1.672 City National Bank Metropolis 2.000 363 06130/2018 1528 BCD 06121/2017 245,000.00 06121 /2022 1,826 245,000.00 237,968.50 - 7,031.50 5,915.24 - 1,116.26 -0.443 Goldman Sachs Bank USA 2.350 375 06130/2018 1582 BCD 06129/2018 245,000.00 06129 /2022 1,461 245,000.00 244,801.55 - 198.45 41.62 - 156.83 - 11.682 Continental Bank 3.100 2 06130/2018 1533 BCD 06130/2017 245,000.00 06130 /2022 1,826 245,000.00 234,646.30 - 10,353.70 4,913.42 - 5,440.28 -2.214 BankVista 2000 . 366 06130/2018 1535 BCD 06130/2017 245,000.00 06130 /2022 1,826 245,000.00 234,705.10 - 10,294.90 5,527.60 -0,767.30 -1.941 Wells Fargo Bank 2250 366 06130/2018 1552 BCD 07119/2017 245,000.00 07119/2022 1,826 245,000.00 237,272.70 - 7,727.30 5,357.11 - 2,370.19 -1.018 Capital One NA 2.300 347 06130/2018 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available CG (PRF_CGU1) 7.1.1 2018 -08 -22 Item 08P 33 of 72p'r Ver. 731 Unrealized Gains and Losses Open Positions through June 30, 2018 Page 2 Investment # Par Value Maturity Date Term Market Value 1525 NCB 06120/2017 245,000.00 06119 /2020 1,095 245,000.00 Inv. Purchase Comenity Capital Bank 1.750 376 06130/2018 Unrealized To Date To Date Actual Issuer Type Date Current Rate U.S. Treasury Coupon Securities Days Held Book Value Market Date Gain /Loss Earnings Net Earnings Yield 365 Certificates of Deposit - Bank 900 1,999,927.09 1,999,340.00 -587.09 47,110.52 46,523.43 0.958 U.S. Treasury Notes 0.875 886 06130/2018 1553 BCD 07119/2017 245,000.00 07119/2022 1,826 245,000.00 237,272.70 - 7,727.30 5,357.11 - 2,370.19 -1.018 Capital One Bank USA, NA 2.300 347 06130/2018 1554 BCD 07119/2017 245,000.00 07119/2022 1,826 245,000.00 235,883.55 - 9,116.45 5,007.73 -0,108.72 -1.764 TIAA FSB 2.150 347 06130/2018 1561 BCD 03128/2018 249,000.00 03128/2023 1,826 249,000.00 245,075.76 3,924.24 1,879.44 - 2,044.80 3.155 Medallion Bank UT 2.900 95 06130/2018 1562 BCD 03129/2018 246,000.00 03129/2023 1,826 246,000.00 242,125.50 3,874.50 1,837.25 - 2,037.25 3.216 BMW Bank North America 2.900 94 06130/2018 1563 BCD 03129/2018 246,000.00 03129/2023 1,826 246,000.00 241,589.22 -0,410.78 1,830.65 - 2,580.13 -0.073 Citi Bank NA 2.850 94 06130/2018 1568 BCD 03129/2018 246,000.00 03129/2023 1,826 246,000.00 241,589.22 -0,410.78 1,805.57 - 2,605.21 -0.112 Enerbank USA 2.850 94 06130/2018 1564 BCD 03129/2018 249,000.00 03129/2023 1,826 249,000.00 245,068.29 3,931.71 1,859.65 - 2,072.06 3.231 Industrial & Comm Bank China 2.900 94 06130/2018 1566 BCD 03129/2018 246,000.00 03129/2023 1,826 246,000.00 241,050.48 -0,949.52 1,773.90 - 3,175.62 -5.013 LCA Bank Corp 2.800 94 06130/2018 1565 BCD 03129/2018 246,000.00 03129/2023 1,826 246,000.00 242,125.50 3,874.50 1,837.25 - 2,037.25 3.216 Morgan Stanley Bank 2.900 94 06130/2018 1569 BCD 04111/2018 246,000.00 04111 /2023 1,826 246,000.00 241,490.82 -0,509.18 1,555.87 - 2,953.31 -5.410 First Source Bank 2.850 81 06130/2018 1580 BCD 06126/2018 245,000.00 06126 /2023 1,826 245,000.00 244,960.80 -39.20 110.75 71.55 2.132 American Express National Bank 3.300 5 06130/2018 1570 BCD 06127/2018 245,000.00 06127 /2023 1,826 245,000.00 244,953.45 -06.55 88.60 42.05 1.566 Sallie Mae Bank/Murray 3.300 4 06130/2018 1571 BCD 06129/2018 245,000.00 06129 /2023 1,826 245,000.00 244,943.65 - 56.35 44.30 -12.05 -0.898 Comenity Capital Bank 3.300 2 06130/2018 1581 BCD 06129/2018 245,000.00 06129 /2023 1,826 245,000.00 244,377.70 -522.30 43.63 -578.67 -03.105 Texas Exchange Bank 3.250 2 06130/2018 Certificates of Deposit - Bank Subtotals 7.624.000.00 7.484.447.60 - 139.552.40 174.277.60 34.725.20 -2.868 Negotiable CDs 1525 NCB 06120/2017 245,000.00 06119 /2020 1,095 245,000.00 240,068.15 -0,931.85 4,478.06 - 453.79 -0.180 Comenity Capital Bank 1.750 376 06130/2018 Negotiable CDs Subtotals 245,000.00 240,068.15 -4,931.85 4,478.06 - 453.79 -0.180 U.S. Treasury Coupon Securities 1509 TRC 01127/2016 2,000,000.00 07115/2018 900 1,999,927.09 1,999,340.00 -587.09 47,110.52 46,523.43 0.958 U.S. Treasury Notes 0.875 886 06130/2018 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available CG (PRF_CGU1) 7.1.1 2018 -08 -22 Item 08P 34 of 72`°rt Ver. 731 Unrealized Gains and Losses Open Positions through June 30, 2018 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 U.S. Treasury Coupon Securities 1510 TRC 01/27/2016 2,000,000.00 07/31/2019 1,281 1,993,230.69 1,967,820.00 - 25,410.69 57,673.75 32,263.06 0.667 U.S. Treasury Notes 0.875 886 06/30/2018 1577 TRC 06/26/2018 2,000,000.00 07/31/2019 400 1,997,369.45 1,996,707.73 - 661.72 648.12 -13.60 -0.050 U.S. Treasury Notes 1.625 5 06/30/2018 1515 TRC 06/01/2016 2,000,000.00 08/31/2019 1,186 1,999,045.90 1,967,580.00 - 31,465.90 43,332.58 11,866.68 0.285 U.S. Treasury Notes 1.000 760 06/30/2018 1516 TRC 06/01/2016 2,000,000.00 10/31/2019 1,247 2,004,668.14 1,968,680.00 - 35,988.14 44,753.06 8,764.92 0.210 U.S. Treasury Notes 1.250 760 06/30/2018 1517 TRC 06/01/2016 2,000,000.00 02/29/2020 1,368 2,006,944.44 1,963,040.00 - 43,904.44 48,561.29 4,656.85 0.111 U.S. Treasury Notes 1.375 760 06/30/2018 1518 TRC 06/01/2016 2,000,000.00 03/31/2020 1,399 2,006,922.69 1,961,100.00 - 45,822.69 49,020.54 3,197.85 0.077 U.S. Treasury Notes 1.375 760 06/30/2018 1583 TRC 06/27/2018 2,000,000.00 07/15/2020 749 1,972,789.41 1,972,108.29 - 681.12 550.11 - 131.01 -0.606 U.S. Treasury Notes 1.500 4 06/30/2018 1514 TRC 04/19/2016 2,000,000.00 07/31/2020 1,564 2,019,310.86 1,962,340.00 - 56,970.86 51,126.42 - 5,844.44 -0.132 U.S. Treasury Notes 1.625 803 06/30/2018 1576 TRC 06/26/2018 2,000,000.00 07/31/2020 766 1,994,710.85 1,993,712.60 - 998.25 693.23 - 305.02 -1.116 U.S. Treasury Notes 2.000 5 06/30/2018 1520 TRC 02/13/2017 2,000,000.00 08/31/2020 1,295 1,991,413.37 1,950,320.00 - 41,093.37 43,284.45 2,191.08 0.080 U.S. Treasury Notes 1.375 503 06/30/2018 1521 TRC 02/13/2017 2,000,000.00 09/30/2020 1,325 1,990,500.47 1,948,040.00 - 42,460.47 43,700.81 1,240.34 0.045 U.S. Treasury Notes 1.375 503 06/30/2018 1522 TRC 02/13/2017 2,000,000.00 10/31/2020 1,356 1,989,041.84 1,945,620.00 - 43,421.84 44,368.47 946.63 0.035 U.S. Treasury Notes 1.375 503 06/30/2018 1538 TRC 06/28/2017 2,000,000.00 11/30/2020 1,251 2,020,292.77 1,972,660.00 - 47,632.77 31,870.64 - 15,762.13 -0.774 U.S. Treasury Notes 2.000 368 06/30/2018 1539 TRC 06/28/2017 2,000,000.00 02/28/2021 1,341 1,975,058.26 1,924,300.00 - 50,758.26 32,116.68 - 18,641.58 -0.936 U.S. Treasury Notes 1.125 368 06/30/2018 1540 TRC 06/28/2017 2,000,000.00 03/31/2021 1,372 1,980,562.14 1,928,280.00 - 52,282.14 32,329.56 - 19,952.58 -0.999 U.S. Treasury Notes 1.250 368 06/30/2018 1523 TRC 02/13/2017 2,000,000.00 07/31/2021 1,629 1,961,056.57 1,911,100.00 - 49,956.57 48,473.92 - 1,482.65 -0.055 U.S. Treasury Notes 1.125 503 06/30/2018 1556 TRC 02/23/2018 2,000,000.00 09/30/2021 1,315 1,913,259.86 1,905,540.00 - 7,719.86 17,234.62 9,514.76 1.418 U.S. Treasury Notes 1.125 128 06/30/2018 1574 TRC 06/26/2018 2,000,000.00 10/31/2021 1,223 1,964,958.68 1,964,315.65 - 643.03 712.76 69.73 0.259 U.S. Treasury Notes 2.000 5 06/30/2018 1578 TRC 06/26/2018 4,000,000.00 07/31/2022 1,496 3,923,878.66 3,923,825.19 -53.47 1,468.45 1,414.98 2.632 U.S. Treasury Notes 2.000 5 06/30/2018 Portfolio ENCI Data Updated: SET ANNU: 07/19/2018 13:05 AC Run Dale: 07/19/2018 - 13:05 No fiscal year history available CG (PRF_CGU1) 7.1.1 2018 -08 -22 Item 08P 35 of 71"' V- 7.3.5 Unrealized Gains and Losses Open Positions through June 30, 2018 Page 4 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 U.S. Treasury Coupon Securities 1572 TRC 06126/2018 2,000,000.00 08131/2022 1,527 1,946,614.34 1,946,784.46 170.12 724.39 894.51 3.355 U.S. Treasury Notes 1.875 5 06130/2018 1579 TRC 06126/2018 2,000,000.00 09130/2022 1,557 1,942,253.69 1,942,433.93 180.24 727.06 907.30 3.410 U.S. Treasury Notes 1.875 5 06130/2018 U.S. Treasury Coupon Securities Subtotals 45 ,593,810.17 45,015,647.85 578,162.32 640,481.43 62,319.11 0.490 Federal Agency Coupon Securities 1501 FAC 06124/2015 2,000,000.00 07120/2018 1,122 1,999,963.86 1,999,220.00 - 743.86 70,005.36 69,261.50 1.146 Federal Nat'l Mortgage Assoc. 1.125 1,103 06130/2018 1497 FAC 05127/2015 2,000,000.00 08113/2018 1,174 2,000,000.00 1,997,880.00 - 2,120.00 68,077.77 65,957.77 1.064 Federal Home Loan Bank 1.100 1,131 06130/2018 1503 FAC 06126/2015 2,000,000.00 09118/2018 1,180 2,002,695.80 1,999,620.00 3,075.80 75,034.64 71,958.84 1.191 Federal Nat'l Mortgage Assoc. 1.875 1,101 06130/2018 1493 FAC 04124/2015 2,000,000.00 10123/2018 1,278 1,999,878.13 1,993,820.00 -6,058.13 68,156.47 62,098.34 0.974 Federal Home Loan Bank 1.050 1,164 06130/2018 1505 FAC 06126/2015 2,000,000.00 11127/2018 1,250 2,002,808.28 1,996,060.00 -6,748.28 77,081.66 70,333.38 1.164 Federal Narl Mortgage Assoc. 1.625 1,101 06130/2018 1500 FAC 06124/2015 2,000,000.00 02/19/2019 1,336 2,006,131.21 1,995,540.00 - 10,591.21 83,998.38 73,407.17 1.211 Federal Narl Mortgage Assoc. 1.875 1,103 06130/2018 1498 FAC 05127/2015 2,000,000.00 03108/2019 1,381 2,002,399.22 1,989,900.00 - 12,499.22 82,012.56 69,513.34 1.120 Federal Home Loan Bank 1.500 1,131 06130/2018 1499 FAC 05127/2015 2,000,000.00 06114 /2019 1,479 2,004,152.72 1,985,480.00 - 18,672.72 87,082.16 68,409.44 1.102 Federal Home Loan Bank 1.625 1,131 06130/2018 1559 FAC 02/23/2018 2,000,000.00 07119/2019 511 1,975,207.72 1,970,052.78 -5,154.94 15,177.16 10,022.22 1.447 Federal Home Loan Mortgage 0.875 128 06130/2018 1506 FAC 06126/2015 2,000,000.00 09112/2019 1,539 2,003,570.82 1,983,820.00 - 19,750.82 96,496.93 76,746.11 1.270 Federal Narl Mortgage Assoc. 1.750 1,101 06130/2018 1507 FAC 06126/2015 2,000,000.00 11126/2019 1,614 2,002,826.73 1,980,280.00 - 22,546.73 99,412.84 76,866.11 1.272 Federal Nat'l Mortgage Assoc. 1.750 1,101 06130/2018 1512 FAC 04119/2016 2,000,000.00 05101/2020 1,473 2,008,595.45 1,958,840.00 -49,755.45 50,185.45 430.00 0.010 Federal Home Loan Mortgage 1.375 803 06130/2018 1513 FAC 04119/2016 2,000,000.00 06112 /2020 1,515 2,019,923.80 1,967,460.00 - 52,463.80 54,489.80 2,026.00 0.046 Federal Home Loan Bank 1.750 803 06130/2018 1534 FAC 06121/2017 2,000,000.00 06121 /2021 1,461 1,995,764.58 1,939,240.00 - 56,524.58 35,381.25 - 21,143.33 -1.031 Federal Farm Credit 1.650 375 06130/2018 1524 FAC 02/13/2017 2,000,000.00 07114/2021 1,612 1,961,336.24 1,913,840.00 -47,496.24 48,741.24 1,245.00 0.046 Federal Home Loan Bank 1.125 503 06130/2018 1537 FAC 06123/2017 2,000,000.00 07127/2021 1,495 2,009,740.90 1,953,220.00 - 56,520.90 35,092.24 - 21,428.66 -1.043 Federal Home Loan Mortgage 1.875 373 06130/2018 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available CG (PRF_CGU1) 7.1.1 2018 -08 -22 Item 08P 36 of 72`°rt Ver. 731 Unrealized Gains and Losses Open Positions through June 30, 2018 Page 5 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 1557 FAC 02/23/2018 2,000,000.00 08/12/2021 1,266 1,919,548.28 1,909,307.50 - 10,240.78 17,264.78 7,024.00 1.043 Federal Home Loan Mortgage 1.125 128 06/30/2018 1575 FAC 06/26/2018 2,000,000.00 09/10/2021 1,172 1,994,200.21 1,994,546.11 345.90 1,405.55 1,751.45 6.411 Federal Home Loan Bank 2.375 5 06/30/2018 1555 FAC 02/23/2018 2,000,000.00 11/29/2021 1,375 1,958,242.57 1,945,860.00 - 12,382.57 17,685.90 5,303.33 0.772 Federal Home Loan Bank 1.875 128 06/30/2018 1536 FAC 06/23/2017 2,000,000.00 03/15/2022 1,726 2,022,949.19 1,958,360.00 - 64,589.19 37,624.74 - 26,964.45 -1.304 Federal Farm Credit 2.150 373 06/30/2018 1573 FAC 06/26/2018 2,000,000.00 06/10/2022 1,445 2,004,729.88 2,002,967.78 - 1,762.10 771.99 - 990.11 -3.605 Federal Home Loan Bank 2.750 5 06/30/2018 1560 FAC 02/23/2018 2,000,000.00 07/01/2022 1,589 1,978,334.83 1,962,126.67 - 16,208.16 18,318.16 2,110.00 0.304 Federal Home Loan Mortgage 2.220 128 06/30/2018 1558 FAC 02/23/2018 2,000,000.00 11/23/2022 1,734 1,927,838.60 1,919,460.00 - 8,378.60 18,780.82 10,402.22 1.539 Federal Farm Credit 1.820 128 06/30/2018 Federal Agency Coupon Securities Subtotals 45,800,839.02 45,316,900.84 -483,938.18 1,158,277.85 674,339.67 0.698 Total Current Bond Positions 99,263,649.19 98,057,064.44 - 1,206,584.75 1,977,514.94 770,930.19 0.326 Total Realized and Unrealized Gains /Losses Data Updated: SET ANNU: 07/19/2018 13:05 Run Dale: 07/19/2018 - 13:05 No fiscal year history available 2018 -08 -22 Item 08P - 1,206,584.75 2,475,154.25 1,268,569.50 0.428 Portfolio ENCI AC CG (PRF_CGU1) 7.1.1 37 of 71"r Ver. 7.3.5 - CITY OF ENCINITAS City of Encinitas - YTD Report 505 S. VULCAN ENCINITAS, ENCINITAS, CA 9 Realized Gains and Losses (761 Sorted By Investment Type Sales /Calls /Maturities: July 1, 2017 - June 30, 2018 Investment # Par Value Sale Date Days Held 1,000,000.00 1,000,000.00 0.00 17,772.11 17,772.11 0.831 Inv. Purchase 1511 Ti 01127/2016 2,000,000.00 07131/2017 Maturity /Sale Realized Total Total Total Issuer Type Date Current Rate Maturity Date Term Book Value Proceeds GainlLoss Earnings Net Earnings Yield 365 Certificates of Deposit - Bank 1.000 08128/2017 824 1490 Ti 12/17/2014 2,000,000.00 12/31/2017 1,110 2,000,000.00 1438 BCD 10125/2012 248,000.00 10125/2017 1,826 248,000.00 248,000.00 0.00 18,610.19 18,610.19 1.500 American Express Centurion 1.500 10125/2017 1,826 1,036 1491 Ti 02/20/2015 2,000,000.00 06130 /2018 1482 BCD 12/04/2014 248,000.00 12/04/2017 1,096 248,000.00 248,000.00 0.00 8,936.15 8,936.15 1.200 Iberia Bank /LA 1.200 12/04/2017 1,096 873 U.S. Treasury Coupon Securities Certificates of Deposit - Bank Subtotals 496.000.00 496.000.00 0.00 27.546.34 27.546.34 1.350 U.S. Treasury Coupon Securities 08115/2017 781 1,000,000.00 1,000,000.00 0.00 17,772.11 17,772.11 0.831 1.000 1511 Ti 01127/2016 2,000,000.00 07131/2017 551 2,000,000.00 2,000,000.00 0.00 23,858.70 23,858.70 0.790 U.S. Treasury Notes 0.500 07131/2017 551 17,627.78 17,627.78 0.781 1.000 08128/2017 824 1490 Ti 12/17/2014 2,000,000.00 12/31/2017 1,110 2,000,000.00 2,000,000.00 0.00 61,820.65 61,820.65 1.016 U.S. Treasury Notes 0.750 12/31/2017 1,110 1.035 1.050 09105/2017 1,036 1491 Ti 02/20/2015 2,000,000.00 06130 /2018 1,226 2,000,000.00 2,000,000.00 0.00 77,610.06 77,610.06 1.155 U.S. Treasury Notes 1.375 06130/2018 1,226 10116/2017 873 U.S. Treasury Coupon Securities Subtotals 6,000,000.00 6,000,000.00 0.00 163,289.41 163,289.41 0.987 Federal Agency Coupon Securities 1508 FAC 06126/2015 Federal Farm Credit 1494 FAC 05127/2015 Federal Nafl Mortgage Assoc. 1480 FAC 11104/2014 Federal Nafl Mortgage Assoc. 1495 FAC 05127/2015 Federal Home Loan Bank 1504 FAC 06126/2015 Federal Narl Mortgage Assoc. 1492 FAC 03120/2015 Federal Home Loan Mortgage 1496 FAC 05127/2015 Federal Farm Credit 1,000,000.00 08115/2017 781 1,000,000.00 1,000,000.00 0.00 17,772.11 17,772.11 0.831 1.000 08115/2017 781 1,000,000.00 08128/2017 824 1,000,000.00 1,000,000.00 0.00 17,627.78 17,627.78 0.781 1.000 08128/2017 824 2,000,000.00 09105/2017 1,036 2,000,000.00 2,000,000.00 0.00 58,758.33 58,758.33 1.035 1.050 09105/2017 1,036 2,000,000.00 10116/2017 873 2,000,000.00 2,000,000.00 0.00 39,166.94 39,166.94 0.819 0.875 10116/2017 873 2,000,000.00 02/08/2018 958 2,000,000.00 2,000,000.00 0.00 51,723.67 51,723.67 0.985 0.875 02/08/2018 958 2,000,000.00 03107/2018 1,083 2,000,000.00 2,000,000.00 0.00 60,328.06 60,328.06 1.017 0.875 03107/2018 1,083 2,000,000.00 05121/2018 1,090 2,000,000.00 2,000,000.00 0.00 61,426.67 61,426.67 1.028 1.000 05121/2018 1,090 Federal Agency Coupon Securities Subtotals 12,000,000.00 12,000,000.00 0.00 306,803.56 306,803.56 0.948 Total Realized Gains/Losses 18,496,000.00 18,496,000.00 0.00 497,639.31 497,639.31 0.972 Portfolio ENCI Data Updated: SET_ANNU: 07/19/2018 13:05 AC Run Date: 07/19/2018- 13:05 No fiscal year history available CG (PRF_CGR1) 7.1.1 2018 -08 -22 Item 08P 38 of 73port Ver. 731 Attachment 2 CITY OF ENCINITAS INVESTMENT OF BOND PROCEEDS For the Fiscal Year ended June 30, 2018 GOVERNMENTAL FUNDS TRUSTEE CASH & INVESTMENTS Yield Maturity Date Market Value FY 2017 -2018 Income Budget ENCINITAS PUBLIC FINANCING AUTHORITY 2013 LEASE REVENUE BONDS (COMM PARK DEVELOPMENT) Bond Fund Blackrock Money Market Fund Project Fund Blackrock Money Market Fund 1.66% $ 61 $ 241 2014 ENCINITAS PUBLIC FINANCING AUTHORITY 2014 A & B LEASE REVENUE BONDS (PACIFIC VIEW PROPERTY & MOONLIGHT BEACH LIFEGUARD TOWER) Bond Fund Blackrock Money Market Fund Construction Series A Blackrock Money Market Fund Construction Series B Blackrock Money Market Fund $ 61 $ 241 $ 1.66% 1.66% $ 190 - - $ 447 9,739 - $ 190 $ 10,186 2015 LEASE REVENUE BONDS (PUBLIC LIBRARY) Bond Fund Blackrock Money Market Fund 1.66% $ 189 $ 524 Interest Account Federated Prime Cash Money Market Fund $ 189 $ 524 2017 LEASE REVENUE BONDS (PARK) Bond Fund Blackrock Institutional Funds 1.42% $ 488 $ 564 Interest Account Blackrock Liquidity Funds - 5 Cost of Issuance Blackrock Liquidity Funds - 14 $ 488 $ 583 ENCINITAS PUBLIC FINANCING AUTHORITY (TOTALS) (A) Is 928 $ 11,534 $ $ $ $ TOTALS FOR GOVERNMENTAL FUNDS (A) $ 928 $ 11,534 1 $ ENTERPRISE FUNDS TRUSTEE CASH & INVESTMENTS Yield Maturity Date Market Value FY 2017 -2018 Income Budget SAN DIEGUITO WATER DISTRICT 2007 WATER REVENUE BONDS Bond Fund Blackrock Money Market Fund Reserve Fund -SDWD Federated Prime Cash Money Market Fund 1.66% 1.84% $ 102 1 642,599 $ 1,004 1 7,231 2014 WATER REVENUE BONDS Bond Fund Blackrock Money Market Fund Reserve Fund Blackrock Money Market Fund Cost of Issuance Blackrock Money Market Fund TOTAL $ 642,701 $ 8,235 $ 1.66% $ 55 - $ 349 - - TOTAL TOTALS FOR ENTERPRISE FUNDS (B) $ 55 $ 349 1 $ $ 642,756 $ 8,584 $ TOTAL TRUSTEE CASH & INVESTMENTS (A) + (B) $ 643,684 $ 20,118 $ NOTE: The City's leases for capital equipment do not require any trustee deposits, and thus, are not listed on this summary. 2018 -08 -22 Item 08P 39 of 73 Attachment 3 CITY OF ENCINITAS ADMINISTRATIVE MANUAL Policy Title: Investment Policy Section: Finance Responsible Department. Finance Number. Admin Policy F019 Approved By. City Council Date Approved. 1994 Last Amended: August 302-4, 2017-6 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. I/. 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 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. 2018 -08 -22 Item 08P 40 of 73 Ill. 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 Govt 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 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 may engage in any investment transaction except as provided under the terms of this Policy and the established procedures. 2018 -08 -22 Item 08P 41 of 73 VI. 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: (1) Firms must submit audited financial statements annually, within six months of their fiscal year -end, 2018 -08 -22 Item 08P 42 of 73 (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. Vlll. 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 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. (1) (2) INVESTMENT ALLOCATIONS Repurchase agreements STATE LAW INV POLICY MAXIMUM MAXIMUM 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 yearday. All balances are required to be properly collateralized at 102% of par value in accordance with State requirements. CA Local Agency Inv Fund (LAIF) STATE LAW MAXIMUM 30% The "STATE LAW MAXIMUAI cTaTC � 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 2018 -08 -22 Item 08P 43 of 73 (3) (4) (5) INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM deposit limit of the maximum amount allowed by CA state law.$65- 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. 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. Mutual Funds and Money Market Mutual Funds (Total) 20% 20% Per Issuer 10% 10% (A) Money Market Mutual Funds N/A Per Issuer N/A 20% 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% $5M0Gn 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. Certificates of Deposit (CD's) NO LIMIT 10% Per Issuer NO LIMIT $4 M illier►5% 2018 -08 -22 Item 08P 44 of 73 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 $,- �L% of the total account value 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. INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM (6) Negotiable Certificates of Deposit 30% 10% Per Issuer 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 $' ng 5% of the total account value per issuer. (7) Bankers Acceptances 40% 10% Per Issuer 30% L%44-4o 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 AUP1, and are limited to illiGR5% of the total account value per issuer. (8) U.S. Treasury Bills, Notes and Bonds NO LIMIT 50% (9) U.S. Government - Sponsored Agencies NO LIMIT 60% Per Issuer 245% 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% $amillisn Commercial Paper (CP) 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 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) 2018 -08 -22 Item 08P 45 of 73 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 405% of outstanding commercial paper of any single corporate issuer. The maximum allowable maturity is 270 days or less. INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM (11) Commercial Medium -Term Notes 30% 15% Per Issuer 5% $4moo Medium -Term Notes are defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating in the United States or by depository institutions licensed by the United States. State Code requires a credit rating of `A" or better by one nationally recognized rating agency. The City is further limiting itself to notes that are rated Aa3 or better (Moody's) and AA- or better (S & P). (12) Guaranteed Investment Contracts None 10% Per Issuer 5%$&M4AGn 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 0_V__ 20 million 2018 -08 -22 Item 08P 46 of 73 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. (15) Asset - Backed Securities 20% 10% Per Issuer 5% These securities consist of Traditional Asset - Backed, Mortgage- Backed, Mortgage Pass - Throuqh Securities, and Collateralized Mortgage Obligations. They are permitted -given that the securities are rated in a rating cate-gory of `AA" or its equivalent or better by a NRSRO, and when issued by an issuer having lonq -term debt obligations rated in a rating cate-gory of "A" or its equivalent or better by at least one NRSPRO. No more than 10% of the total portfolio may be invested in these securities. No more than 5% of the portfolio may be invested in any sin-gle Asset - Backed or Commercial Mortga-ge security issuer. There is no issuer limitation on any mortga-ge security where the issuer is the U.S. Treasury or a Federal A-gency/GSE. The maximum legal final maturity does not exceed five years. (16) Supranationals 30% 20% Per Issuer 10% Suoranational issues are U. S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter - American Development Bank. They are permitted if rated in a rating cate-gory of `AA" or its equivalent or better by a NRSRO. No more than 20% of the total portfolio may be invested in these securities. No more than 10% of the portfolio may be invested in anv sinale issuer. The maximum maturitv does not exceed five years. 2018 -08 -22 Item 08P 47 of 73 SUMMARY TABLE of INVESTMENT ALLOCATIONS STATE LAW INV POLICY (1) REPURCHASE AGREEMENTS NO LIMIT 20% (2) CALIFORNIA LAIF NO LIMIT 30% (3) OTHER GOVT POOLS NO LIMIT 30% Per Issuer 10% (4) MUTUAL FUNDS TOTAL 20% —20% Per Issuer 10% 10% (4-A) Money Market Mutual Funds N/A 20% Per Issuer N/A 10% (4 -8) Mutual Funds N/A 10% Per Issuer N/A 5% (5) CD's NO LIMIT 10% Per Issuer (6) NEGOTIABLE CD's 30% 10% Per Issuer 5% $4 Hillier (7) BANKERS ACCEPTANCES NO LIMIT 10% Per Issuer 30% 5% $4 Hillier (8) U.S. TREASURYS NO LIMIT 50% (9) U.S. FEDERAL AGENCIES ^') I WIr40% 60% Per Issuer 425% (10) COMMERCIAL PAPER 25% 25% Per Issuer 5y-.$544llien (11) COMMERCIAL MTN NOTES 30% 15% Per Issuer 5 %41' (12) GIC's NO LIMIT 10% Per Issuer 5%.$5 Milken (13) Demand Deposits (non- interest bearing) NO LIMIT 0 -2% Per Issuer 0 -2% (14) Demand Deposits (interest bearing) NO LIMIT 20% Per Issuer 10%Q2944WG (15) Asset - Backed Securities 20% 10% Per Issuer 5% (16) Supranationals 30% 20% Per Issuer 10% 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. 2018 -08 -22 Item 08P 48 of 73 (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. 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 his /her 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. Collateralization 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 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 2018 -08 -22 Item 08P 49 of 73 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. 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 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. XII. 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 Vlll. above for a listing of authorized investments and the maximum allocation by type of investment. Section Vlll. also details specific limitations per issuer. For purposes of this Policy, those limits each apply to the overall portfolio. XIII. 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 Vlll. 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 2018 -08 -22 Item 08P 50 of 73 IV(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 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 in 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 Govf 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-GA.gov) 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. 2018 -08 -22 Item 08P 51 of 73 XVIII. G /ossary of Investment Terms AGENCIES. Shorthand market terminolo -gy for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US -government. Examples are: FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit and liquidity in the housinq market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan Mort -gage Corporation provides credit and liquidity in the housing market. FHLMC, also called "FreddieMac" issues discount notes, bonds and mort -gage pass - through securities. FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as "FannieMae,' issues discount notes, bonds and mort -gage pass - through securities. GNMA. The Government National Mortgage Association, known as "GinnieMae, " issues mort -gage pass - through securities, which are -guaranteed by the full faith and credit of the US Government. PEFCO. The Private Export Fundinq Corporation assists exporters. Obligations of PEFCO are not -guaranteed by the full faith and credit of the US -government. TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds. ASKED. The price at which a seller offers to sell a security. ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolvinq lines of credit. AVERAGE LIFE. In mort -ga -ge- related investments, including CMOs, the average time to expected receipt of Principal payments, weighted by the amount of principal expected. BANKER's ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which "accepts" the obligation to pay the investor. BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy. BID. The price at which a buyer offers to buy a security. BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position. CALLABLE. A callable security -jives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made. CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250, 000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the tradinq of deposits between the California institution and other participating institutions in amounts that are less than $250, 000 each, so that FDIC coverage is maintained. 2018 -08 -22 Item 08P 52 of 73 COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies. COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mort -gage securities. COMMERCIAL PAPER. The short -term unsecured debt of corporations. COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return. CouPoN. The rate of return at which interest is paid on a bond. CREDIT RISK. The risk that Drincipal and /or interest on an investment will not be Daid in a timely manner due to chanoes in the condition of the issuer. CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. DEBENTURE. A bond secured only by the -general credit of the issuer. DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser's agent. DERIVATIVE. Any security that has principal and /or interest payments which are subiect to uncertainty (but not for reasons of default or credit risk) as to timinq and /or amount, or any security which represents a component of another security which has been separated from other components ( "Stripped" coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index. D►scouNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short -term securities, such as T -bills and banker's acceptances, are known as discount securities. They sell at a discount from par,and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and /or quality. DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk. DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration). FEDERAL FuNDs RATE. The rate of interest charged by banks for short -term loans to other banks. The Federal Reserve Bank through open- market operations establishes it. FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary Policy and executes it through temporary and permanent changes to the supply of bank reserves. LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing. LIQUIDITY. The speed and ease with which an asset can be converted to cash. LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to -government entities and certain non - profit organizations in California that is managed by the State Treasurer's Office. LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer's Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subiect to the same SEC rules applicable to money market mutual funds. MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaininq debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum Payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole. " 2018 -08 -22 Item 08P 53 of 73 MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral. MARKET RISK. The risk that the value of securities will fluctuate with chanoes in overall market conditions or interest rates. MARKET VALUE. The price at which a security can be traded. MARKING TO MARKET. The process of posting current market values for securities in a portfolio. MATURITY. The final date upon which the principal of a security becomes due and payable. MEDIUM TERM NoTEs. Unsecured, investment --grade senior debt securities of maior corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio's or security's exposure to market risk. MONEY MARKET. The market in which short -term debt instruments (T- bills, discount notes, commercial paper, and banker's acceptances) are issued and traded. MORTGAGE Pass - THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security. MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses. MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund's prospectus. Mutual funds can be invested in various types of domestic and /or international stocks, bonds, and money market instruments, as set forth in the individual fund's prospectus. For most large, institutional investors, the costs associated with investinq in mutual funds are higher than the investor can obtain through an individually managed portfolio. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit ratinq agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit ratinq agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit ratinq agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S &P, and Moody's. NEGOTIABLE CD. A short -term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state - licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par. PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mort-ga-ge securities. PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reportinq purposes in compiling data on activity in the U.S. Government securities market. PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as "Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, actinq in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes." REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized pains and losses. It does not -give effect to chances in market value on securities, which have not been sold from the portfolio. 2018 -08 -22 Item 08P 54 of 73 REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer. REPURCHASE AGREEMENT. Short -term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller's point of view, the same transaction is a reverse repurchase agreement. SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer's name. STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are risinq, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten -year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements. SUPRANATIONAL. A Supranational is a multi - national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries. TOTAL RATE OF RETURN. A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio. U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds. TREASURY BILLs. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six -month T- bills at regular weekly auctions. It also issues "cash management" bills as needed to smooth out cash flows. TREASURY NoTEs. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi - annually. TREASURY BONDS. All securities issued with initial maturities -greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi - annually. VOLATILITY. The rate at which security prices chan-ge with chan-ges in -general economic conditions or the -general level of interest rates. YIELD To MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. 2018 -08 -22 Item 08P 55 of 73 Attachment 4 CITY OF ENCINITAS ADMINISTRATIVE MANUAL Policy Title: Investment Policy Section: Finance Responsible Department: Finance Number: Admin Policy F019 Approved By: City Council Date Approved: 1994 Last Amended: August 30, 2017 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. I/. 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 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. 2018 -08 -22 Item 08P 56 of 73 Ill. 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 Govt 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 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 may engage in any investment transaction except as provided under the terms of this Policy and the established procedures. 2018 -08 -22 Item 08P 57 of 73 VI. 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: (1) Firms must submit audited financial statements annually, within six months of their fiscal year -end, 2018 -08 -22 Item 08P 58 of 73 (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. Vlll. 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 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. (1) (2) INVESTMENT ALLOCATIONS Repurchase agreements STATE LAW INV POLICY MAXIMUM MAXIMUM 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 year. All balances are required to be properly collateralized at 102% of par value in accordance with State requirements. CA Local Agency Inv Fund (LAIF) STATE LAW MAXIMUM 30% The "STATE LAW MAXIMUM" 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 INVESTMENT ALLOCATIONS STATE LAW INV POLICY 2018 -08 -22 Item 08P 59 of 73 MAXIMUM MAXIMUM deposit limit of the maximum amount allowed by CA state law. 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 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% 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 5% 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 5% of the total account value 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. INVESTMENT ALLOCATIONS 2018 -08 -22 Item 08P 60 of 73 STATE LAW INV POLICY MAXIMUM MAXIMUM (6) Negotiable Certificates of Deposit 30% Per Issuer 10% 5% 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 5% of the total account value per issuer. (7) Bankers Acceptances 40% 10% Per Issuer 30% 5% 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 Al /P1, and are limited to 5% of the total account value per issuer. (8) U.S. Treasury Bills, Notes and Bonds NO LIMIT 50% (9) U.S. Government - Sponsored Agencies NO LIMIT 60% Per Issuer 25% 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% Commercial Paper (CP) 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 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 5% of outstanding commercial paper of any single corporate issuer. The maximum allowable maturity is 270 days or less. INVESTMENT ALLOCATIONS 2018 -08 -22 Item 08P 61 of 73 STATE LAW INV POLICY MAXIMUM MAXIMUM (11) Commercial Medium -Term Notes 30% 15% Per Issuer 5% 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% 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 10% 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. (15) Asset - Backed Securities 20% 10% Per Issuer 5% 2018 -08 -22 Item 08P 62 of 73 These securities consist of Traditional Asset - Backed, Mortgage- Backed, Mortgage Pass - Through Securities, and Collateralized Mortgage Obligations. They are permitted given that the securities are rated in a rating category of `AA" or its equivalent or better by a NRSRO, and when issued by an issuer having long -term debt obligations rated in a rating category of "A" or its equivalent or better by at least one NRSPRO. No more than 10% of the total portfolio may be invested in these securities. No more than 5% of the portfolio may be invested in any single Asset - Backed or Commercial Mortgage security issuer. There is no issuer limitation on any mortgage security where the issuer is the U.S. Treasury or a Federal Agency /GSE. The maximum legal final maturity does not exceed five years. (16) Supranationals 30% 20% Per Issuer 10% Supranational issues are U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter - American Development Bank. They are permitted if rated in a rating category of `AA" or its equivalent or better by a NRSRO. No more than 20% of the total portfolio may be invested in these securities. No more than 10% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed five years. 2018 -08 -22 Item 08P 63 of 73 SUMMARY TABLE of INVESTMENT ALLOCATIONS STATE LAW INV POLICY (1) REPURCHASE AGREEMENTS NO LIMIT 20% (2) CALIFORNIA LAIF NO LIMIT 30% (3) OTHER GOVT POOLS NO LIMIT 30% Per Issuer 10% (4) MUTUAL FUNDS TOTAL20% 20% Per Issuer 10% 10% (4 -A) Money Market Mutual Funds N/A 20% Per Issuer N/A 10% (4 -8) Mutual Funds N/A 10% Per Issuer N/A 5% (5) CD's NO LIMIT 10% Per Issuer 5% (6) NEGOTIABLE CD's 30% 10% Per Issuer 5% (7) BANKERS ACCEPTANCES NO LIMIT 10% Per Issuer 30% 5% (8) U.S. TREASURYS NO LIMIT 50% (9) U.S. FEDERAL AGENCIES 40% 60% Per Issuer 25% (10) COMMERCIAL PAPER 25% 25 Per Issuer 5% (11) COMMERCIAL MTN NOTES 30% 15% Per Issuer 5% (12) GIC's NO LIMIT 10% Per Issuer 5% (13) Demand Deposits (non- interest bearing) NO LIMIT 0 -2% Per Issuer 0 -2% (14) Demand Deposits (interest bearing) NO LIMIT 20% Per Issuer 10% (15) Asset - Backed Securities 20% 10% Per Issuer 5% (16) Supranationals 30% 20% Per Issuer 10% 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. 2018 -08 -22 Item 08P 64 of 73 (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. 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 his /her 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. Collateralization 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 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 2018 -08 -22 Item 08P 65 of 73 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. 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 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. XII. 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 Vlll. above for a listing of authorized investments and the maximum allocation by type of investment. Section Vlll. also details specific limitations per issuer. For purposes of this Policy, those limits each apply to the overall portfolio. XIII. 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 Vlll. 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: 2018 -08 -22 Item 08P 66 of 73 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 IV(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 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 in 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 Govt 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.pov) under City Departments /Finance. 2018 -08 -22 Item 08P 67 of 73 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. XVIII. Glossary of Investment Terms AGENCIES. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called "FreddieMac" issues discount notes, bonds and mortgage pass- through securities. FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as "FannieMae, " issues discount notes, bonds and mortgage pass- through securities. GNMA. The Government National Mortgage Association, known as "GinnieMae, "issues mortgage pass- through securities, which are guaranteed by the full faith and credit of the US Government. PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government. TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds. ASKED. The price at which a seller offers to sell a security. ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit. AVERAGE LIFE. In mortgage- related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected. BANKER'S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which "accepts" the obligation to pay the investor. BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy. BID. The price at which a buyer offers to buy a security. BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position. CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made. CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM ( CDARS). A private placement service that allows local agencies to purchase more than $250, 000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between 2018 -08 -22 Item 08P 68 of 73 the California institution and other participating institutions in amounts that are less than $250, 000 each, so that FDIC coverage is maintained. COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies. COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities. COMMERCIAL PAPER. The short -term unsecured debt of corporations. COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return. COUPON. The rate of return at which interest is paid on a bond. CREDIT RISK. The risk that principal and /or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. DEBENTURE. A bond secured only by the general credit of the issuer. DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser's agent. DERIVATIVE. Any security that has principal and /or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and /or amount, or any security which represents a component of another security which has been separated from other components ( "Stripped" coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index. DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short -term securities, such as T -bills and banker's acceptances, are known as discount securities. They sell at a discount from par,and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and /or quality. DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk. DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration). FEDERAL FUNDS RATE. The rate of interest charged by banks for short -term loans to other banks. The Federal Reserve Bank through open- market operations establishes it. FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves. LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing. LIQUIDITY. The speed and ease with which an asset can be converted to cash. LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non - profit organizations in California that is managed by the State Treasurer's Office. LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer's Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds. MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum 2018 -08 -22 Item 08P 69 of 73 payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole. " MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral. MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. MARKET VALUE. The price at which a security can be traded. MARKING TO MARKET. The process of posting current market values for securities in a portfolio. MATURITY. The final date upon which the principal of a security becomes due and payable. MEDIUM TERM NOTES. Unsecured, investment -grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. MODIFIED DURATION. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio's or security's exposure to market risk. MONEY MARKET. The market in which short -term debt instruments (T- bills, discount notes, commercial paper, and banker's acceptances) are issued and traded. MORTGAGE Pass - THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security. MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses. MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund's prospectus. Mutual funds can be invested in various types of domestic and /or international stocks, bonds, and money market instruments, as set forth in the individual fund's prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S &P, and Moody's. NEGOTIABLE CD. A short -term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state - licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par. PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities. PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market. PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as "Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes." 2018 -08 -22 Item 08P 70 of 73 REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio. REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer. REPURCHASE AGREEMENT. Short -term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller's point of view, the same transaction is a reverse repurchase agreement. SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer's name. STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten -year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements. SUPRANATIONAL. A Supranational is a multi - national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries. TOTAL RATE OF RETURN. A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio. U.S. TREAsuRY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds. TREAsuRY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six -month T- bills at regular weekly auctions. It also issues "cash management" bills as needed to smooth out cash flows. TREAsuRY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi - annually. TREAsuRY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi - annually. VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates. YIELD To MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. 2018 -08 -22 Item 08P 71 of 73 Attachment 5 RESOLUTION 2018 -77 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS AUTHORIZING THE INVESTMENT OF MONIES IN THE STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND AND UPDATING THE AUTHORIZED REPRESENTATIVES AND SIGNATORIES WHEREAS, pursuant to Chapter 730 of the statutes of 1976, Section 16429.1 was added to the California Government Code (the "Code ") to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer, and WHEREAS, the City Council does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Code for the purpose of investment as stated therein is in the best interest of the City of Encinitas, and WHEREAS, the City Council desires to update the authorized representatives listed below or their successors in office. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENCINITAS AS FOLLOWS: Section 1. The City of Encinitas hereby authorizes the deposit and withdrawal of City of Encinitas monies in the Local Agency Investment Fund in the State Treasury in accordance with Government Code section 16429.1 et. seq. for the purpose of investment as provided therein. Section 2. The following City of Encinitas officers holding the titles specified hereinbelow or their successors in office are each hereby authorized to order the deposit or withdrawal of City of Encinitas monies in the Local Agency Investment Fund and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby: Karen P. Brust Mark Delin Teresa S. McBroome Marta D. Lundgren City Manager City Assistant City City Director of City Finance Manager Manager Finance /City Treasurer Section 3. Effective Date. This Resolution shall take effect upon adoption and shall remain in full force and effect until rescinded by the City Council by resolution and a copy of the resolution rescinding this resolution is filed with the State Treasurer's Office. PASSED AND ADOPTED at the regular meeting of the City Council of the City of Encinitas, State of California, on this 22nd day of August 2018, by the following vote to wit: AYES: NAYS: ABSENT: 2018 -08 -22 Item 08P 72 of 73 ABSTAI N: Catherine S. Blakespear, Mayor City of Encinitas ATTEST: Kathy Hollywood, City Clerk 2018 -08 -22 Item 08P 73 of 73