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2020-10-14 Item 08D Treasurer's Annual Report and Investment Policy UpdateMEETING DATE PREPARED BY DEPARTMENT: SUBJECT: October 14, 2020 Teresa S. McBroome Director of Finance /City Treasurer Finance AGENDA REPORT City Council DEPT. DIRECTOR: Teresa S. McBroome CITY MANAGER: Pamela) IW. Antil Treasurer's Annual Report for the Fiscal Year Ended June 30, 2020 and Investment Policy. RECOMMENDATION: That City Council take the following actions: 1. Receive and file the Treasurer's Report for the Fiscal Year Ended June 30, 2020; and 2. Adopt Investment Policy (F019). 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 earnings report. Investment earnings in the pooled investment fund for FY 2019 -20 were $2,435,507, of which $951,462 was allocated to the General Fund. Investment earnings exceeded the budgeted amount of $898,895 by $1,536,612, or by $750,462, in the General Fund. 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 following information is included in this agenda report and the related attachments: Detailed reports on the Pooled Investment Fund of the City for FY 2019 -20 (Attachment 1) Summary report for the investment of bond proceeds (Attachment 2) Investment Policy Redlined (Attachment 3) Investment Policy (Attachment 4) 2020 -10 -14 Item #080 Page 1 of 82 ANALYSIS: Pooled Investment Fund Re 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 Portfolio Management Investments by Issuer Activity Report Interest Earnings Summary Interest Earnings Purchases Report Accrued Interest Unrealized Gain /Loss Realized Gain /Loss Cash and Investments by Fund As of June 30, 2020, the book value (purchase price of securities as recorded on the City's books) of the Pooled Investment Fund was $132.4 million and the average weighted yield to maturity was 1.89 percent. Fiscal year -to -date investment revenue generated by the Pooled Investment Fund as of June 30, 2020, was $2,435,507 for an effective rate of return of 1.97 percent. FY 2019 -20 investment pool revenue increased slightly over FY 2018 -19 revenue of $2,420,601. The current market value of the City's portfolio is $135,515,240, which results in an unrealized gain of $3,109,800 or 2.35 percent, when compared to the book value or purchase value of the City's portfolio of $132,405,440. The following table compares the Pooled Investment Fund statistics for the last four quarters. FY 2019 -20 June 30, 2020 March 31, 2020 Dec. 31, 2019 Sep. 30, 2019 Book Value $ 132,405,440 $ 125,311,447 $ 124,104,518 $ 113,999,331 Market Value $ 135,515,240 $ 127,886,829 $ 125,042,266 $ 114,973,050 Unrealized Gain /(Loss) $ 3,109,800 $ 2,575,382 $ 937,748 $ 973,719 Unrealized Gain /Loss as % of Book Value 2.3487% 2.0552% 0.7556% 0.8541% Effective Rate of Return 1.97% 2.00% 2.05% 2.05% Average Yield To Maturity 1.89% 1.82% 1.97% 1.97% Average Maturity (Years) 1.23 1.52 1.66 1.90 Investment Earnings Year to Date $ 2,435,507 $ 1,815,649 $ 1,206,765 $ 624,656 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 investment benchmarks. The charts below provide graphical information about portfolio investment allocation, liquidity and performance compared to various benchmarks. Portfolio Allocation FederalAgency Coupon Securities 28% U.S. Treas Coupor Securitie 27% Cash 3% as of June 30, 2020 Local Agency Investment Fund Io Managed Pool Accounts 4% Money Market ficate of Funds its - Bank 2% 9% 2020 -10 -14 Item #080 Page 2 of 82 Credit Quality of Portfolio as of June 30, 2020 Federal Agency Coupon Securities, AA +,28% U.S Treasury C Securities, CAN SDCC Investment rooi, AAA, 31 % ■ Not rated ■ AAA r AA+ LAIF, Money Market Funds. Certificates of Deposit and Cash, Not Rated. 41 % 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 the 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. The remaining funds are in the California Local Investment Fund (LAIF), California Asset Management Program (CAMP), the San Diego County Investment Pool, and Union Bank Certificates of Deposit, Money Market Funds, and a Checking Account. LAIF 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 and provides the City with liquidity for City operations. LAIF has not been assigned a rating by Moody's or Standard and Poor's. Portfolio Allocation Compared 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% 20% 20% 30% 40°% 50% 60% 70°% ■ Policy Maximum ■ As of June 30, 2020 The City's investment portfolio complied with the City's investment policy because it adhered to the required allocations by investment type. 2020 -10 -14 Item #080 Page 3 of 82 Portfolio Liquidity as of June 30, 2020 40% 35% 30% 25% 20% 15% 10% 5% O% Overnight O -6 Months 7 -12 Months 13-24 Months 25-36 Months 37 -48 Months 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 35.7% percent available overnight and an additional 10.3 percent of securities available within 180 days. Best management practices recommend that agencies have six months of cash needs of their portfolio liquid (having immediate access to). The weighted average maturity of the entire portfolio is 1.2 years. The City utilizes a laddered maturity investment strategy in that as securities mature, a portion of new investments are typically directed to the 49 -60 -month segment to take advantage of higher rates further out on the yield curve. However, due to the drastic reduction in interest rates related to the recession caused by the novel coronavirus, securities in the 49 -60 -month segment were earning lower rates than short -term securities. Therefore, in the last two months of the fiscal year, funds were kept in LAIF which was earning higher interest rates. 3.501 3.00% 2.50 2.001 1.50% 1.00 0.501 0.001 City Portfolio Yield Compared to Treasury Indexes v 00 r si dO' v v �n u, �r, u, cn cn cn � �• r �n �• vo vo 00 0� a� a� � rn o 0 r-1 r-I ri r-1 r-I r-I r-I ri r-I r-I r-I ri r-I r-I ri ri r-I r-I r-I ri r-I r-I N N X11 d1 7 Ql d1 7 % . 7 % - 7 -n - 7 % . 7 cn C] � � vi O � � i,n O � � cn C] � 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, 2020 is higher than the benchmark by 182 basis points. 2020 -10 -14 Item #080 Page 4 of 82 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 June 30, 2020 were $642,751. Earnings on the bond trust accounts were $11,606 for the year. Bond proceeds 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 interest rate of less than 0.22 percent. Bond proceeds are invested by the Trustees of the 2007 Water Revenue Bonds. 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, 2020 were for the 2007 Water Revenue Bonds reserve funds ($642,589). 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 2019. Staff performed a 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 — 5 Certificates of In the description of CD's, This is a typographical error and is Deposit (CD's) change the maturity limit from consistent with the City's investment one year to five years. practices and with the California Government Code Section 53601. Section VIII -16 Supranationals Increase the maximum This change is consistent with portfolio limits for changes made to the California Supranational Securities per Government Code Section 53601(q). issuer from 10% to 15% 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. Section VIII - Summary Table of Change the limits for This change corrects the Per Issuer Investment Allocations Supranationals limit to be consistent with the State Code and the City's updated Investment Policy. 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. This item is not related to the Climate Action Plan. ATTACHMENTS: 1. Annual Investment Report for the Pooled Investment Fund, June 30, 2020 2. Annual Investment Report for the Investment of Bond Proceeds, June 30, 2020 3. City of Encinitas Investment Policy (F019), amended October 14, 2020 Redlined 4. City of Encinitas Investment Policy (F019) 2020 -10 -14 Item #080 Page 5 of 82 Attachment 1 City of Encinitas - YTD Report Portfolio Management Portfolio Summary June 30, 2020 CITY OF ENCINITAS 505 S. VULCAN AVE. ENCINITAS, CA 92024 (760)633 -2641 132,686,168.40 135,515,240.43 132,405,440.43 100.00% 1.885 950 449 Investments Cash Passbook /Checking 3,753,480.12 3,753,480.12 3,753,480.12 0.000 1 1 (not included in yield calculations) Total Cash and Investments 136,439,648.52 139,268,720.55 136,158,920.55 1.885 950 449 Total Earnings June 30 Month Ending Fiscal Year To Date Fiscal Year Ending Current Year 214,671.91 2,435,507.22 2,435,507.22 Average Daily Balance 133,871,481.69 123,282,942.41 Effective Rate of Return 1.95% 1.97% 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 06/01/2020 - 06/30/2020 Portfolio FY20 Data Updated: SET_ANNU: 09/13/2020 14:36 p AC Run Date: 09/13/2022 PM (PRF 020 -10 -1 w Item #08D Page &e9fV82.6.11 Par Market Book % of YTM Days to Investments Value Value Value Portfolio Term Maturity Local Agency Investment Funds 36,391,523.06 36,570,307.15 36,391,523.06 27.48 1.217 1 1 Managed Pool Accounts 5,226,870.22 5,281,068.45 5,226,870.22 3.95 4.163 1 1 Money Market Funds 3,194,775.12 3,194,775.12 3,194,775.12 2.41 0.070 1 1 Certificates of Deposit- Bank 11,375,000.00 11,939,186.87 11,375,000.00 8.59 2.058 1,739 1,193 Negotiable CDs 498,000.00 522,192.84 498,000.00 0.38 1.727 1,643 1,397 U.S. Treasury Coupon Securities 37,000,000.00 37,637,330.00 36,696,627.95 27.72 2.083 1,359 447 Federal Agency Coupon Securities 39,000,000.00 40,370,380.00 39,022,644.08 29.47 2.116 1,417 737 132,686,168.40 135,515,240.43 132,405,440.43 100.00% 1.885 950 449 Investments Cash Passbook /Checking 3,753,480.12 3,753,480.12 3,753,480.12 0.000 1 1 (not included in yield calculations) Total Cash and Investments 136,439,648.52 139,268,720.55 136,158,920.55 1.885 950 449 Total Earnings June 30 Month Ending Fiscal Year To Date Fiscal Year Ending Current Year 214,671.91 2,435,507.22 2,435,507.22 Average Daily Balance 133,871,481.69 123,282,942.41 Effective Rate of Return 1.95% 1.97% 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 06/01/2020 - 06/30/2020 Portfolio FY20 Data Updated: SET_ANNU: 09/13/2020 14:36 p AC Run Date: 09/13/2022 PM (PRF 020 -10 -1 w Item #08D Page &e9fV82.6.11 City of Encinitas - YTD Report Portfolio Management Portfolio Details - Investments June 30, 2020 Page 1 Average Purchase Stated YTM Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S &P Moody's Date Local Agency Investment Funds SYS1012 1012 CA LAIF 36,391,523.06 36,570,307.15 36,391,523.06 1.217 1.217 NR Subtotal and Average 36,391,523.06 36,391,523.06 36,570,307.15 36,391,523.06 1.217 Managed Pool Accounts SYS1003 1003 SYS1584 1584 Money Market Funds SYS1004 1004 Certificates of Deposit - Bank 337630BD8 1531 975875AK1 1526 17670DAC8 1530 17801 GSB7 1551 38148PKX4 1528 06653ABM5 1533 949763JG2 1535 14042RGN5 1552 1404203Q1 1553 87270LAD5 1554 58404DBL4 1561 05580AMB7 1562 17312QH69 1563 29278TAU4 1568 45581EASO 1564 501798LT7 1566 61747MR37 1565 33646CJPO 1569 249398BT4 1596 02589AAM4 1580 795450S89 1570 20033AZK5 1571 020080BUO 1619 33640VDE5 1609 59013KAR7 1597 CA Asset Management Program SD County Investment Pool Subtotal and Average 5,215,815.73 Union Bank Custody Acct. Subtotal and Average 3,184,658.22 1,068,671.50 4,158,198.72 5,226,870.22 3,194, 775.12 3,194,775.12 1, 068, 671.50 4,212,396.95 5,281,068.45 3,194,775.12 3,194,775.12 1,068,671.50 0.510 4,158,198.72 5.102 5,226,870.22 0.510 AAA 5.102 AAA 4.163 3,194,775.12 0.070 0.070 AAA 3,194,775.12 0.070 Firstrust Savings Bank 06/23/2017 245,000.00 249,179.70 245,000.00 1.900 1.900 06/23/2021 Winter Hill Bank FSB 06/26/2017 245,000.00 248,991.05 245,000.00 1.800 1.800 06/28/2021 Citizens State Bankl 06/30/2017 245,000.00 251,284.25 245,000.00 1.900 1.900 12/30/2021 City National Bank Metropolis 07/03/2017 245,000.00 252,036.40 245,000.00 2.000 2.000 NR NR 02/03/2022 Goldman Sachs Bank USA 06/21/2017 245,000.00 255,358.60 245,000.00 2.350 2.350 P -1 06/21/2022 BankVista 06/30/2017 245,000.00 253,731.80 245,000.00 2.000 2.000 06/30/2022 Wells Fargo Bank 06/30/2017 245,000.00 254,954.35 245,000.00 2.250 2.250 06/30/2022 Capital One NA 07/19/2017 245,000.00 255,432.10 245,000.00 2.300 2.300 NR 07/19/2022 Capital One Bank USA, NA 07/19/2017 245,000.00 255,432.10 245,000.00 2.300 2.300 07/19/2022 TIAA FSB 07/19/2017 245,000.00 254,679.95 245,000.00 2.150 2.150 NR NR 07/19/2022 Medallion Bank UT 03/28/2018 249,000.00 266,711.37 249,000.00 2.900 2.900 03/28/2023 BMW Bank North America 03/29/2018 246,000.00 263,537.34 246,000.00 2.900 2.900 03/29/2023 Citi Bank NA 03/29/2018 246,000.00 263,200.32 246,000.00 2.850 2.850 03/29/2023 Enerbank USA 03/29/2018 246,000.00 263,200.32 246,000.00 2.850 2.850 03/29/2023 Industrial & Comm Bank China 03/29/2018 249,000.00 266,728.80 249,000.00 2.900 2.900 03/29/2023 LCA Bank Corp 03/29/2018 246,000.00 262,863.30 246,000.00 2.800 2.800 03/29/2023 Morgan Stanley Bank 03/29/2018 246,000.00 263,537.34 246,000.00 2.900 2.900 03/29/2023 First Source Bank 04/11/2018 246,000.00 263,379.90 246,000.00 2.850 2.850 04/11/2023 Denver Savings Bank 06/21/2019 249,000.00 263,202.96 249,000.00 2.250 2.250 06/21/2023 American Express National Bank 06/26/2018 245,000.00 266,724.15 245,000.00 3.300 3.300 NR NR 06/26/2023 Sallie Mae Bank /Murray 06/27/2018 245,000.00 266,741.30 245,000.00 3.300 3.300 NR NR 06/27/2023 Comenity Capital Bank 06/29/2018 245,000.00 266,731.50 245,000.00 3.300 3.300 NR NR 06/29/2023 ALMA BANK 03/30/2020 249,000.00 253,352.52 249,000.00 0.900 0.900 09/29/2023 FIRST SERVICE BANK 11/15/2019 249,000.00 260,055.60 249,000.00 1.700 1.700 11/15/2023 Merrick Bank 06/28/2019 249,000.00 266,355.30 249,000.00 2.400 2.400 12/28/2023 Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date, 09/1312020 - 14,36 2020 -10 -14 Item #08D Portfolio FY20 AC Page 7 (of82730 Report Ver. 7.3.6.1 City of Encinitas - YTD Report Portfolio Management Portfolio Details - Investments June 30, 2020 Page 2 Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date: 09/1312020 - 14:36 2020 -10 -14 Item #08D Portfolio FY20 AC Page 8 `of82730 Average Purchase Stated YTM Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S &P Moody's Date Certificates of Deposit - Bank 06251AW48 1585 BANK HAPOALIM BM NY 03/25/2019 246,000.00 268,595.10 246,000.00 2.900 2.900 03/25/2024 34969RCS5 1616 FORTUNE BANK ARNOLD 03/27/2020 249,000.00 254,326.11 249,000.00 1.000 1.000 03/27/2024 654062JRO 1625 NICOLET NATIONAL BANK 03/31/2020 249,000.00 255,713.04 249,000.00 1.150 1.150 03/28/2024 219255AK2 1623 CORNHUSKER BANK 03/30/2020 249,000.00 255,252.39 249,000.00 1.100 1.100 03/29/2024 61760AG52 1593 MORGAN STANLEY PRIVATE BANK 06/13/2019 246,000.00 266,723.04 246,000.00 2.600 2.600 06/13/2024 27002YEQ5 1594 EAGLEBANK 06/20/2019 249,000.00 267,087.36 249,000.00 2.300 2.300 06/20/2024 200056QRZ8 1595 COMMERCE BANK GENEVA MN 06/26/2019 249,000.00 267,139.65 249,000.00 2.300 2.300 06/26/2024 336460CQ1 1598 First State Bank Dequeen 06/28/2019 249,000.00 267,159.57 249,000.00 2.300 2.300 06/28/2024 761400BY1 1599 REVERE BANK 06/28/2019 247,000.00 265,033.47 247,000.00 2.300 2.300 06/28/2024 52465JHT7 1618 LEGENDS BANK 03/30/2020 249,000.00 254,089.56 249,000.00 1.000 1.000 09/30/2024 710673AC8 1624 PEOPLES BANK /SARDIS TN 03/31/2020 249,000.00 254,089.56 249,000.00 1.000 1.000 09/30/2024 73319FAD1 1611 POPPY BANK 11/04/2019 249,000.00 260,917.14 249,000.00 1.650 1.650 11/04/2024 203522AT4 1610 COMMUNITY BANK 11/08/2019 249,000.00 260,919.63 249,000.00 1.650 1.650 11/08/2024 29367SJQ8 1607 ENTERPRISE BANK AND TRUST 11/08/2019 249,000.00 262,525.68 249,000.00 1.800 1.800 11/08/2024 695292FP2 1613 PADUCAH BANK AND TRUST 11/08/2019 249,000.00 260,919.63 249,000.00 1.650 1.650 11/08/2024 89579NCB7 1612 TRIAD BANK FRONTENAC MO 11/08/2019 249,000.00 262,525.68 249,000.00 1.800 1.800 11/08/2024 300185JF3 1615 EVERGREEN BANK GROUP 03/26/2020 249,000.00 253,389.87 249,000.00 1.000 1.000 03/26/2025 59565QCS2 1617 MIDCOUNTRY BANK 03/27/2020 249,000.00 253,384.89 249,000.00 1.000 1.000 03/27/2025 15201QCJ4 1620 CENTERSTATE BANK NA 03/30/2020 248,000.00 252,344.96 248,000.00 1.000 1.000 03/31/2025 538036KU7 1622 LIVE OAK BANKING COMPANY 03/31/2020 249,000.00 254,532.78 249,000.00 1.100 1.100 03/31/2025 694231AD3 1621 PACIFIC ENTERPRISE BANK 03/30/2020 249,000.00 255,115.44 249,000.00 1.150 1.150 03/31/2025 Subtotal and Average 12,012,000.00 11,375,000.00 11,939,186.87 11,375,000.00 2.058 Negotiable CDs 15118RSN8 1614 CELTIC BANK 10/30/2019 249,000.00 259,151.73 249,000.00 1.600 1.601 10/30/2023 33767GAMO 1608 First Bank Puerto Rico 10/28/2019 249,000.00 263,041.11 249,000.00 1.850 1.852 NR NR 10/25/2024 Subtotal and Average 498,000.00 498,000.00 522,192.84 498,000.00 1.727 U.S. Treasury Coupon Securities 9128282J8 1583 U.S. Treasury Notes 06/27/2018 2,000,000.00 2,001,020.00 1,999,234.81 1.500 2.531 Aaa 07/15/2020 912828XM7 1514 U.S. Treasury Notes 04/19/2016 2,000,000.00 2,002,400.00 2,000,761.27 1.625 1.149 NR Aaa 07/31/2020 912828VP2 1576 U.S. Treasury Notes 06/26/2018 2,000,000.00 2,003,020.00 1,999,155.52 2.000 2.531 Aaa 07/31/2020 912828L32 1520 U.S. Treasury Notes 02/13/2017 2,000,000.00 2,003,960.00 1,999,338.66 1.375 1.580 Aaa 08/31/2020 912828L65 1521 U.S. Treasury Notes 02/13/2017 2,000,000.00 2,005,940.00 1,998,948.35 1.375 1.593 Aaa 09/30/2020 912828L99 1522 U.S. Treasury Notes 02/13/2017 2,000,000.00 2,007,860.00 1,998,432.71 1.375 1.618 Aaa 10/31/2020 912828A42 1538 U.S. Treasury Notes 06/28/2017 2,000,000.00 2,014,680.00 2,003,493.21 2.000 1.567 Aaa 11/30/2020 912828P87 1539 U.S. Treasury Notes 06/28/2017 2,000,000.00 2,012,260.00 1,993,796.61 1.125 1.609 Aaa 02/28/2021 912828Q37 1540 U.S. Treasury Notes 06/28/2017 2,000,000.00 2,016,100.00 1,994,714.60 1.250 1.616 Aaa 03/31/2021 Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date: 09/1312020 - 14:36 2020 -10 -14 Item #08D Portfolio FY20 AC Page 8 `of82730 City of Encinitas - YTD Report Portfolio Management Portfolio Details - Investments June 30, 2020 Page 3 Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date: 09/1312020 - 14:36 2020 -10 -14 Item #08D Portfolio FY20 AC Page 9 `of82730 Average Purchase Stated YTM Maturity CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S &P Moody's Date U.S. Treasury Coupon Securities 912828S76 1523 U.S. Treasury Notes 02/13/2017 2,000,000.00 2,020,620.00 1,986,338.67 1.125 1.784 Aaa 07/31/2021 912828T34 1556 U.S. Treasury Notes 02/23/2018 2,000,000.00 2,023,760.00 1,966,677.76 1.125 2.530 Aaa 09/30/2021 912828F96 1574 U.S. Treasury Notes 06/26/2018 2,000,000.00 2,048,760.00 1,983,511.98 2.000 2.650 Aaa 10/31/2021 912828XQB 1578 U.S. Treasury Notes 06/26/2018 4,000,000.00 4,152,520.00 3,944,752.67 2.000 2.705 Aaa 07/31/2022 9128281-24 1572 U.S. Treasury Notes 06/26/2018 2,000,000.00 2,073,680.00 1,966,005.65 1.875 2.710 Aaa 08/31/2022 9128282W9 1579 U.S. Treasury Notes 06/26/2018 2,000,000.00 2,076,560.00 1,964,737.07 1.875 2.711 Aaa 09/30/2022 912828S92 1592 U.S. Treasury Notes 03/27/2019 3,000,000.00 3,098,790.00 2,918,256.73 1.250 2.181 07/31/2023 9128282D1 1604 U.S. Treasury Notes 06/26/2019 2,000,000.00 2,075,400.00 1,978,471.68 1.375 1.729 08/31/2023 Subtotal and Average 36,689,289.36 37,000,000.00 37,637,330.00 36,696,627.95 2.083 Federal Agency Coupon Securities 3133EHNX7 1534 Federal Farm Credit 06/21/2017 2,000,000.00 2,028,000.00 1,998,614.58 1.650 1.724 06/21/2021 313OA8QS5 1524 Federal Home Loan Bank 02/13/2017 2,000,000.00 2,019,500.00 1,986,805.51 1.125 1.790 AA+ Aaa 07/14/2021 3134G9N94 1537 Federal Home Loan Mortgage 06/23/2017 2,000,000.00 2,032,420.00 2,003,399.63 1.875 1.710 AA+ Aaa 07/27/2021 3137EAEC9 1557 Federal Home Loan Mortgage 02/23/2018 2,000,000.00 2,021,280.00 1,970,975.18 1.125 2.493 AA+ Aaa 08/12/2021 313378JP7 1575 Federal Home Loan Bank 06/26/2018 2,000,000.00 2,049,600.00 1,992,612.58 2.375 2.712 AA+ Aaa 09/10/2021 3130AABG2 1555 Federal Home Loan Bank 02/23/2018 2,000,000.00 2,048,540.00 1,982,725.75 1.875 2.520 AA+ Aaa 11/29/2021 3130AG3Y9 1588 Federal Home Loan Bank 03/27/2019 2,000,000.00 2,070,020.00 2,006,110.06 2.420 2.225 02/15/2022 3133EKNM4 1601 FEDERAL FARM CREDIT BANK 06/26/2019 2,000,000.00 2,065,600.00 2,014,201.40 2.200 1.760 02/28/2022 3133EHCT8 1536 Federal Farm Credit 06/23/2017 2,000,000.00 2,065,660.00 2,010,562.82 2.150 1.825 AA+ Aaa 03/15/2022 3130AEBM1 1573 Federal Home Loan Bank 06/26/2018 2,000,000.00 2,095,760.00 1,998,868.05 2.750 2.780 AA+ Aaa 06/10/2022 3134GSAX3 1560 Federal Home Loan Mortgage 02/23/2018 2,000,000.00 2,000,000.00 1,986,454.08 2.220 2.580 AA+ Aaa 07/01/2022 3135GOT78 1589 Federal Nat'l Mortgage Assoc. 03/27/2019 2,000,000.00 2,076,620.00 1,991,770.13 2.000 2.190 10/05/2022 3135GOT78 1603 Federal Nat'l Mortgage Assoc. 06/26/2019 1,000,000.00 1,038,310.00 1,005,682.81 2.000 1.740 10/05/2022 3133EDWW8 1600 Federal Farm Credit 06/26/2019 1,000,000.00 1,052,530.00 1,017,860.93 2.600 1.784 10/06/2022 3133EC4Q4 1558 Federal Farm Credit 02/23/2018 2,000,000.00 2,073,560.00 1,960,680.70 1.820 2.700 AA+ Aaa 11/23/2022 3133EJBP3 1590 Federal Farm Credit 03/27/2019 2,000,000.00 2,113,720.00 2,014,284.30 2.500 2.210 AAA Aaa 02/02/2023 3133EKSN7 1605 Federal Farm Credit 06/26/2019 4,000,000.00 4,176,280.00 3,996,557.01 1.770 1.800 AAA Aaa 06/26/2023 3133EHST1 1591 FEDERAL FARM CREDIT BANK 03/27/2019 1,000,000.00 1,051,700.00 993,472.07 2.010 2.234 07/26/2023 3135GOU43 1602 Federal Nat'l Mortgage Assoc. 06/26/2019 2,000,000.00 2,167,420.00 2,065,825.66 2.875 1.801 09/12/2023 3133EHN25 1606 FEDERAL FARM CREDIT BANK 06/26/2019 2,000,000.00 2,123,860.00 2,025,180.83 2.200 1.805 11/01/2023 Subtotal and Average 39,755,079.30 39,000,000.00 40,370,380.00 39,022,644.08 2.116 Total and Average 133,871,481.69 132,686,168.40 135,515,240.43 132,405,440.43 1.885 Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date: 09/1312020 - 14:36 2020 -10 -14 Item #08D Portfolio FY20 AC Page 9 `of82730 City of Encinitas - YTD Report Portfolio Management Portfolio Details - Cash June 30, 2020 Average Purchase Stated YTM CUSIP Investment # Issuer Balance Date Par Value Market Value Book Value Rate S &P Moody's Passbook /Checking Accounts SYS1010 1010 Union Bank Checking Acct. 3,753,480.12 3,753,480.12 3,753,480.12 0.000 Average Balance 0.00 Total Cash and Investments Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date: 09/1312020 - 14:36 2020 -10 -14 133,871,481.69 136,439,648.52 Item #08D 139, 268,720.55 136,158, 920.55 1.885 Page 4 Portfolio FY20 AC Page 10 (OU82730 American Express National Bank 02589AAM4 1580 Certificates of Deposit - Bank Amort 245,000.00 3.300 266,724.15 06/30/2020 3.300 06/26/2023 1,090 Subtotal and Average 245,000.00 266,724.15 3.300 1,090 BANK HAPOALIM BM NY 06251AW48 1585 Certificates of Deposit - Bank Amort 246,000.00 2.900 268,595.10 06/30/2020 2.900 03/25/2024 1,363 Subtotal and Average 246,000.00 268,595.10 2.900 1,363 BankVista 06653ABM5 1533 Certificates of Deposit - Bank Amort 245,000.00 2.000 253,731.80 06/30/2020 2.000 06/30/2022 729 Subtotal and Average 245,000.00 253,731.80 2.000 729 BMW Bank North America 05580AMB7 1562 Certificates of Deposit - Bank Amort 246,000.00 2.900 263,537.34 06/30/2020 2.900 03/29/2023 1,001 Subtotal and Average 246,000.00 263,537.34 2.900 1,001 CA Asset Management Program City of Encinitas - YTD Report CITY ECINITAS SYS1003 1003 Managed Pool Accounts Amort 0OF 5 SNVULCAN r Investments by Issuer ENCINITAS, ENCINITAS, CA 9 1,068,671.50 Active Investments 0.510 1 (760)633 -2641 Sorted by Issuer 14042RGN5 1552 June 30, 2020 245,000.00 2.300 255,432.10 06/30/2020 2.300 07/19/2022 748 Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Type Class Remaining Cost Rate Market Value Date 365 Date Maturity Date Collateral ALMA BANK 020080BUO 1619 Certificates of Deposit - Bank Amort 249,000.00 0.900 253,352.52 06/30/2020 0.900 09/29/2023 1,185 Subtotal and Average 249,000.00 253,352.52 0.900 1,185 American Express National Bank 02589AAM4 1580 Certificates of Deposit - Bank Amort 245,000.00 3.300 266,724.15 06/30/2020 3.300 06/26/2023 1,090 Subtotal and Average 245,000.00 266,724.15 3.300 1,090 BANK HAPOALIM BM NY 06251AW48 1585 Certificates of Deposit - Bank Amort 246,000.00 2.900 268,595.10 06/30/2020 2.900 03/25/2024 1,363 Subtotal and Average 246,000.00 268,595.10 2.900 1,363 BankVista 06653ABM5 1533 Certificates of Deposit - Bank Amort 245,000.00 2.000 253,731.80 06/30/2020 2.000 06/30/2022 729 Subtotal and Average 245,000.00 253,731.80 2.000 729 BMW Bank North America 05580AMB7 1562 Certificates of Deposit - Bank Amort 246,000.00 2.900 263,537.34 06/30/2020 2.900 03/29/2023 1,001 Subtotal and Average 246,000.00 263,537.34 2.900 1,001 CA Asset Management Program SYS1003 1003 Managed Pool Accounts Amort 1,068,671.50 0.510 1,068,671.50 06/30/2019 0.510 1 Subtotal and Average 1,068,671.50 1,068,671.50 0.510 1 Capital One NA 14042RGN5 1552 Certificates of Deposit - Bank Amort 245,000.00 2.300 255,432.10 06/30/2020 2.300 07/19/2022 748 Subtotal and Average 245,000.00 255,432.10 2.300 748 Capital One Bank USA, NA 1404203Q1 1553 Certificates of Deposit - Bank Amort 245,000.00 2.300 255,432.10 06/30/2020 2.300 07/19/2022 748 Subtotal and Average 245,000.00 255,432.10 2.300 748 CELTIC BANK 15118RSN8 1614 Negotiable CDs Amort 249,000.00 1.600 259,151.73 06/30/2020 1.601 10/30/2023 1,216 Portfolio FY20 Data Updated: SET_ANNU: 09/13/2020 14:36 AC Run Date: 09/13/2020 - D _DI) 7.1.1 � �0 -10 -14 Item #08D Page 11 01R er.7.3.6.1 City of Encinitas - YTD Report Investments by Issuer Sorted by Issuer Page 2 Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Type Class Remaining Cost Rate Market Value Date 365 Date Maturity Date Collateral Subtotal and Average 249,000.00 259,151.73 1.601 1,216 Citi Bank NA 17312QH69 1563 Certificates of Deposit - Bank Amort 246,000.00 2.850 263,200.32 06/30/2020 2.850 03/29/2023 1,001 Subtotal and Average 246,000.00 263,200.32 2.850 1,001 Citizens State Bankl 17670DAC8 1530 Certificates of Deposit - Bank Amort 245,000.00 1.900 251,284.25 06/30/2020 1.900 12/30/2021 547 Subtotal and Average 245,000.00 251,284.25 1.900 547 COMMERCE BANK GENEVA MN 200056QRZ8 1595 Certificates of Deposit - Bank Amort 249,000.00 2.300 267,139.65 06/30/2020 2.300 06/26/2024 1,456 Subtotal and Average 249,000.00 267,139.65 2.300 1,456 City National Bank Metropolis 17801 GSB7 1551 Certificates of Deposit - Bank Amort 245,000.00 2.000 252,036.40 06/30/2020 2.000 02/03/2022 582 Subtotal and Average 245,000.00 252,036.40 2.000 582 COMMUNITY BANK 203522AT4 1610 Certificates of Deposit - Bank Amort 249,000.00 1.650 260,919.63 06/30/2020 1.650 11/08/2024 1,591 Subtotal and Average 249,000.00 260,919.63 1.650 1,591 Comenity Capital Bank 20033AZK5 1571 Certificates of Deposit - Bank Amort 245,000.00 3.300 266,731.50 06/30/2020 3.300 06/29/2023 1,093 Subtotal and Average 245,000.00 266,731.50 3.300 1,093 SD County Investment Pool SYS1584 1584 Managed Pool Accounts Amort 4,158,198.72 5.102 4,212,396.95 06/30/2020 5.102 1 Subtotal and Average 4,158,198.72 4,212,396.95 5.102 1 CORNHUSKER BANK 219255AK2 1623 Certificates of Deposit - Bank Amort 249,000.00 1.100 255,252.39 06/30/2020 1.100 03/29/2024 1,367 Subtotal and Average 249,000.00 255,252.39 1.100 1,367 CENTERSTATE BANK NA 15201 QCJ4 1620 Certificates of Deposit - Bank Amort Subtotal and Average Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date: 09/13/2020 �b�0 -10 -1 4 248,000.00 1.000 252,344.96 06/30/2020 1.000 03/31/2025 1,734 248,000.00 252,344.96 1.000 1,734 Portfolio FY20 AC Item #08D Page 12 ofR err..l7.3.6.1 City of Encinitas - YTD Report Investments by Issuer Sorted by Issuer Page 3 Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Type Class Remaining Cost Rate Market Value Date 365 Date Maturity Date Collateral Denver Savings Bank 249398BT4 1596 Certificates of Deposit- Bank Amort 249,000.00 2.250 263,202.96 06/30/2020 2.250 06/21/2023 1,085 Subtotal and Average 249,000.00 263,202.96 2.250 1,085 EAGLEBANK Credit 3133EHNX7 1534 3133EHCT8 1536 3133EC4Q4 27002YEQ5 1594 Certificates of Deposit - Bank Amort 249,000.00 2.300 267,087.36 06/30/2020 2.300 06/20/2024 1,450 06/30/2020 Subtotal and Average 249,000.00 267,087.36 2.300 1,450 Enerbank USA 253,389.87 946 1.000 1,729 First Bank Puerto Rico 29278TAU4 1568 Certificates of Deposit - Bank Amort 246,000.00 2.850 263,200.32 06/30/2020 2.850 03/29/2023 1,001 1,090 Subtotal and Average 246,000.00 263,200.32 2.850 1,001 ENTERPRISE BANK AND TRUST 29367SJQ8 1607 Certificates of Deposit - Bank Amort 249,000.00 1.800 262,525.68 06/30/2020 1.800 11/08/2024 1,591 Subtotal and Average 249,000.00 262,525.68 1.800 1,591 EVERGREEN BANK GROUP Credit 3133EHNX7 1534 3133EHCT8 1536 3133EC4Q4 1558 3133EJBP3 300185JF3 1615 Certificates of Deposit - Bank Amort 249,000.00 1.000 253,389.87 06/30/2020 1.000 03/26/2025 1,729 2,113,720.00 Subtotal and Average 249,000.00 2.210 253,389.87 946 1.000 1,729 First Bank Puerto Rico 10/06/2022 827 4,176,280.00 06/30/2020 1.800 06/26/2023 1,090 33767GAMO 1608 Negotiable CDs Amort 249,000.00 1.850 263,041.11 06/30/2020 1.852 10/25/2024 1,577 Subtotal and Average 249,000.00 263,041.11 1.852 1,577 FEDERAL FARM CREDIT BANK 3133EHST1 1591 Federal Agency Coupon Securities Amort 990,790.00 2.010 1,051,700.00 06/30/2020 2.234 07/26/2023 1,120 3133EKNM4 1601 Federal Agency Coupon Securities Amort 2,022,884.00 2.200 2,065,600.00 06/30/2020 1.760 02/28/2022 607 3133EHN25 1606 Federal Agency Coupon Securities Amort 2,032,840.00 2.200 2,123,860.00 06/30/2020 1.805 11/01/2023 1,218 Subtotal and Average 5,046,514.00 5,241,160.00 1.867 951 Federal Farm Credit 3133EHNX7 1534 3133EHCT8 1536 3133EC4Q4 1558 3133EJBP3 1590 3133EDWW8 1600 3133EKSN7 1605 Federal Agency Coupon Securities Fair Federal Agency Coupon Securities Fair Federal Agency Coupon Securities Fair Federal Agency Coupon Securities Amort Federal Agency Coupon Securities Amort Federal Agency Coupon Securities Amort Subtotal and Average 1,994,300.00 1.650 2,029,280.00 2.150 1, 922, 000.00 1.820 2,021,250.00 2.500 1,025,860.00 2.600 3, 995, 388.00 1.770 12, 988, 078.00 Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date:09 /13/2020�b o.10 -14 Item #08D 2,028,000.00 06/30/2020 1.724 06/21/2021 355 2,065,660.00 06/30/2020 1.825 03/15/2022 622 2,073,560.00 06/30/2020 2.700 11/23/2022 875 2,113,720.00 06/30/2020 2.210 02/02/2023 946 1,052,530.00 06/30/2020 1.784 10/06/2022 827 4,176,280.00 06/30/2020 1.800 06/26/2023 1,090 13, 509,750.00 1.992 829 Portfolio FY20 AC Page 13 WIR erDI) . 17.3.6.1 Federal Home Loan Mortgage City of Encinitas - YTD Report 3134G9N94 1537 Federal Agency Coupon Securities Fair 2,012,982.00 1.875 2,032,420.00 Investments by Issuer 1.710 07/27/2021 391 3137EAEC9 1557 Federal Agency Coupon Securities Fair 1,909,596.00 1.125 2,021,280.00 06/30/2020 2.493 08/12/2021 407 3134GSAX3 1560 Federal Agency Coupon Securities Fair Page 4 2.220 2,000,000.00 06/30/2020 2.580 Sorted by Issuer 730 07/01/2020 Subtotal and Average 5,893,078.00 6,053,700.00 2.285 Investment Current 515 Market YTM Redemption Days To Call CUSIP Investment # Security Type Class Remaining Cost Rate Market Value Date 365 Date Maturity Date Collateral Federal Home Loan Bank 06/30/2020 1.900 06/23/2021 357 Subtotal and Average 245,000.00 313OA8QS5 1524 Federal Agency Coupon Securities Fair 1,943,720.00 1.125 2,019,500.00 06/30/2020 1.790 07/14/2021 378 3130AABG2 1555 Federal Agency Coupon Securities Fair 1,953,890.00 1.875 2,048,540.00 06/30/2020 2.520 11/29/2021 516 3130AEBM1 1573 Federal Agency Coupon Securities Fair 1,997,694.00 2.750 2,095,760.00 06/30/2020 2.780 06/10/2022 709 313378JP7 1575 Federal Agency Coupon Securities Fair 1,980,128.00 2.375 2,049,600.00 06/30/2020 2.712 09/10/2021 436 3130AG3Y9 1588 Federal Agency Coupon Securities Amort 2,010,860.00 2.420 2,070,020.00 06/30/2020 2.225 02/15/2022 594 3135GOU43 1602 Federal Agency Coupon Securities Amort Subtotal and Average 9,886,292.00 10,283,420.00 06/30/2020 2.425 09/12/2023 531 Federal Home Loan Mortgage 3134G9N94 1537 Federal Agency Coupon Securities Fair 2,012,982.00 1.875 2,032,420.00 06/30/2020 1.710 07/27/2021 391 3137EAEC9 1557 Federal Agency Coupon Securities Fair 1,909,596.00 1.125 2,021,280.00 06/30/2020 2.493 08/12/2021 407 3134GSAX3 1560 Federal Agency Coupon Securities Fair 1,970,500.00 2.220 2,000,000.00 06/30/2020 2.580 07/01/2022 730 07/01/2020 Subtotal and Average 5,893,078.00 6,053,700.00 2.285 515 Firstrust Savings Bank 33763OBD8 1531 Certificates of Deposit - Bank Amort 245,000.00 1.900 249,179.70 06/30/2020 1.900 06/23/2021 357 Subtotal and Average 245,000.00 249,179.70 1.900 357 FIRST SERVICE BANK 3364OVDE5 1609 Certificates of Deposit - Bank Amort 249,000.00 1.700 260,055.60 06/30/2020 1.700 11/15/2023 1,232 Subtotal and Average 249,000.00 260,055.60 1.700 1,232 Federal Nat'l Mortgage Assoc. 3135GOT78 1589 Federal Agency Coupon Securities Amort 1,987,180.00 2.000 2,076,620.00 06/30/2020 2.190 10/05/2022 826 3135GOU43 1602 Federal Agency Coupon Securities Amort 2,086,700.00 2.875 2,167,420.00 06/30/2020 1.801 09/12/2023 1,168 3135GOT78 1603 Federal Agency Coupon Securities Amort 1,008,231.00 2.000 1,038,310.00 06/30/2020 1.740 10/05/2022 826 Subtotal and Average 5,082,111.00 5,282,350.00 1.935 961 FORTUNE BANK ARNOLD 34969RCS5 1616 Certificates of Deposit - Bank Amort 249,000.00 1.000 254,326.11 06/30/2020 1.000 03/27/2024 1,365 Subtotal and Average 249,000.00 254,326.11 1.000 1,365 First State Bank Dequeen 336460CQ1 1598 Certificates of Deposit - Bank Amort 249,000.00 2.300 267,159.57 06/30/2020 2.300 06/28/2024 1,458 Subtotal and Average 249,000.00 267,159.57 2.300 1,458 First Source Bank 33646CJPO 1569 Certificates of Deposit - Bank Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date: 09/13/2020 �b�0 -10 -1 4 Amort 246,000.00 2.850 263,379.90 06/30/2020 2.850 04/11/2023 1,014 Portfolio FY20 AC Item #08D Page 14 ofR err..l7.3.6.1 City of Encinitas - YTD Report Investments by Issuer Sorted by Issuer Page 5 Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Type Class Remaining Cost Rate Market Value Date 365 Date Maturity Date Collateral Subtotal and Average 246,000.00 263,379.90 2.850 1,014 Goldman Sachs Bank USA 38148PKX4 1528 Certificates of Deposit - Bank Amort 245,000.00 2.350 255,358.60 06/30/2020 2.350 06/21/2022 720 Subtotal and Average 245,000.00 255,358.60 2.350 720 Industrial & Comm Bank China 45581 EASO 1564 Certificates of Deposit - Bank Amort 249,000.00 2.900 266,728.80 06/30/2020 2.900 03/29/2023 1,001 2.800 03/29/2023 Subtotal and Average 249,000.00 266,728.80 2.900 1,001 CA LAIF 2.800 1,001 LEGENDS BANK SYS1012 1012 Local Agency Investment Funds Amort 36,391,523.06 1.217 36,570,307.15 06/30/2020 1.217 1 Certificates of Deposit - Bank Amort Subtotal and Average 36,391,523.06 36,570,307.15 1.217 1 LCA Bank Corp 501798LT7 1566 Certificates of Deposit - Bank Amort 246,000.00 2.800 262,863.30 06/30/2020 2.800 03/29/2023 1,001 Subtotal and Average 246,000.00 262,863.30 2.800 1,001 LEGENDS BANK 52465JHT7 1618 Certificates of Deposit - Bank Amort 249,000.00 1.000 254,089.56 06/30/2020 1.000 09/30/2024 1,552 Subtotal and Average 249,000.00 254,089.56 1.000 1,552 LIVE OAK BANKING COMPANY 538036KU7 1622 Certificates of Deposit - Bank Amort 249,000.00 1.100 254,532.78 06/30/2020 1.100 03/31/2025 1,734 Subtotal and Average 249,000.00 254,532.78 1.100 1,734 Medallion Bank UT 58404DBL4 1561 Certificates of Deposit - Bank Amort 249,000.00 2.900 266,711.37 06/30/2020 2.900 03/28/2023 1,000 Subtotal and Average 249,000.00 266,711.37 2.900 1,000 Merrick Bank 59013KAR7 1597 Certificates of Deposit - Bank Amort 249,000.00 2.400 266,355.30 06/30/2020 2.400 12/28/2023 1,275 Subtotal and Average 249,000.00 266,355.30 2.400 1,275 MORGAN STANLEY PRIVATE BANK 61760AG52 1593 Certificates of Deposit - Bank Amort Subtotal and Average Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date: 09/13/2020 �b�0 -10 -1 4 246,000.00 2.600 266,723.04 06/30/2020 2.600 06/13/2024 1,443 246,000.00 266,723.04 2.600 1,443 Portfolio FY20 AC Item #08D Page 15 ofR erD.l7.3.6.1 NICOLET NATIONAL BANK 654062JRO 1625 Certificates of Deposit - Bank Amort 249,000.00 1.150 255,713.04 06/30/2020 1.150 03/28/2024 1,366 Subtotal and Average 249,000.00 255,713.04 1.150 1,366 PACIFIC ENTERPRISE BANK 694231AD3 1621 Certificates of Deposit - Bank Amort 249,000.00 1.150 255,115.44 06/30/2020 1.150 03/31/2025 1,734 Subtotal and Average 249,000.00 255,115.44 1.150 1,734 PADUCAH BANK AND TRUST 695292FP2 1613 Certificates of Deposit - Bank Amort 249,000.00 1.650 260,919.63 06/30/2020 1.650 11/08/2024 1,591 Subtotal and Average 249,000.00 260,919.63 1.650 1,591 PEOPLES BANK /SARDIS TN City of Encinitas - YTD Report 710673AC8 1624 Certificates of Deposit - Bank Amort Investments by Issuer 254,089.56 06/30/2020 1.000 09/30/2024 1,552 Subtotal and Average 249,000.00 254,089.56 1.000 Page 6 POPPY BANK Sorted by Issuer 73319FAD1 1611 Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Type Class Remaining Cost Rate Market Value Date 365 Date Maturity Date Collateral MIDCOUNTRY BANK 59565QCS2 1617 Certificates of Deposit - Bank Amort 249,000.00 1.000 253,384.89 06/30/2020 1.000 03/27/2025 1,730 Subtotal and Average 249,000.00 253,384.89 1.000 1,730 Morgan Stanley Bank 61747MR37 1565 Certificates of Deposit - Bank Amort 246,000.00 2.900 263,537.34 06/30/2020 2.900 03/29/2023 1,001 Subtotal and Average 246,000.00 263,537.34 2.900 1,001 NICOLET NATIONAL BANK 654062JRO 1625 Certificates of Deposit - Bank Amort 249,000.00 1.150 255,713.04 06/30/2020 1.150 03/28/2024 1,366 Subtotal and Average 249,000.00 255,713.04 1.150 1,366 PACIFIC ENTERPRISE BANK 694231AD3 1621 Certificates of Deposit - Bank Amort 249,000.00 1.150 255,115.44 06/30/2020 1.150 03/31/2025 1,734 Subtotal and Average 249,000.00 255,115.44 1.150 1,734 PADUCAH BANK AND TRUST 695292FP2 1613 Certificates of Deposit - Bank Amort 249,000.00 1.650 260,919.63 06/30/2020 1.650 11/08/2024 1,591 Subtotal and Average 249,000.00 260,919.63 1.650 1,591 PEOPLES BANK /SARDIS TN 710673AC8 1624 Certificates of Deposit - Bank Amort 249,000.00 1.000 254,089.56 06/30/2020 1.000 09/30/2024 1,552 Subtotal and Average 249,000.00 254,089.56 1.000 1,552 POPPY BANK 73319FAD1 1611 Certificates of Deposit - Bank Amort 249,000.00 1.650 260,917.14 06/30/2020 1.650 11/04/2024 1,587 Subtotal and Average 249,000.00 260,917.14 1.650 1,587 REVERE BANK 761400BY1 1599 Certificates of Deposit - Bank Amort 247,000.00 2.300 265,033.47 06/30/2020 2.300 06/28/2024 1,458 Subtotal and Average 247,000.00 265,033.47 2.300 1,458 Sallie Mae Bank /Murray 795450589 1570 Certificates of Deposit - Bank Amort 245,000.00 3.300 266,741.30 06/30/2020 3.300 06/27/2023 1,091 Subtotal and Average 245,000.00 266,741.30 3.300 1,091 TIAA FSB 87270LAD5 1554 Certificates of Deposit - Bank Data Updated: SET_ANNU: 09/13/2020 14:36 Run Date: 09/13/2020 �b�0 -10 -1 4 Amort 245,000.00 2.150 254,679.95 06/30/2020 2.150 07/19/2022 748 Item #08D Portfolio FY20 AC Page 16 ofR erD.l7.3.6.1 City of Encinitas - YTD Report Investments by Issuer Sorted by Issuer Page 7 Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Type Class Remaining Cost Rate Market Value Date 365 Date Maturity Date Collateral Subtotal and Average 245,000.00 254,679.95 2.150 748 TRIAD BANK FRONTENAC MO 89579NCB7 1612 Certificates of Deposit - Bank Amort Subtotal and Average 249,000.00 1.800 249,000.00 262,525.68 06/30/2020 262,525.68 1.800 11/08/2024 1.800 1,591 1,591 Union Bank Checking Acct. 912828XM7 SYS1010 1010 Passbook /Checking Accounts Amort 3,753,480.12 3,753,480.12 06/30/2018 1.625 1 06/30/2020 Subtotal and Average 3,753,480.12 3,753,480.12 9128281-32 1 Union Bank Custody Acct. Fair 1,985,960.00 1.375 2,003,960.00 06/30/2020 SYS1004 1004 Money Market Funds Amort 3,194,775.12 0.070 3,194,775.12 04/30/2019 0.070 1 Fair Subtotal and Average 3,194,775.12 3,194,775.12 0.070 1 U.S. Treasury Notes 912828XM7 1514 U.S. Treasury Coupon Securities Fair 2,039,687.50 1.625 2,002,400.00 06/30/2020 1.149 07/31/2020 30 9128281-32 1520 U.S. Treasury Coupon Securities Fair 1,985,960.00 1.375 2,003,960.00 06/30/2020 1.580 08/31/2020 61 9128281-65 1521 U.S. Treasury Coupon Securities Fair 1,984,687.50 1.375 2,005,940.00 06/30/2020 1.593 09/30/2020 91 9128281-99 1522 U.S. Treasury Coupon Securities Fair 1,982,580.00 1.375 2,007,860.00 06/30/2020 1.618 10/31/2020 122 912828576 1523 U.S. Treasury Coupon Securities Fair 1,943,660.00 1.125 2,020,620.00 06/30/2020 1.784 07/31/2021 395 91282BA42 1538 U.S. Treasury Coupon Securities Fair 2,028,750.00 2.000 2,014,680.00 06/30/2020 1.567 11/30/2020 152 912828P87 1539 U.S. Treasury Coupon Securities Fair 1,965,625.00 1.125 2,012,260.00 06/30/2020 1.609 02/28/2021 242 912828Q37 1540 U.S. Treasury Coupon Securities Fair 1,973,437.50 1.250 2,016,100.00 06/30/2020 1.616 03/31/2021 273 912828T34 1556 U.S. Treasury Coupon Securities Fair 1,903,906.25 1.125 2,023,760.00 06/30/2020 2.530 09/30/2021 456 9128281-24 1572 U.S. Treasury Coupon Securities Fair 1,934,375.00 1.875 2,073,680.00 06/30/2020 2.710 08/31/2022 791 912828F96 1574 U.S. Treasury Coupon Securities Fair 1,958,593.75 2.000 2,048,760.00 06/30/2020 2.650 10/31/2021 487 912828VP2 1576 U.S. Treasury Coupon Securities Fair 1,978,437.50 2.000 2,003,020.00 06/30/2020 2.531 07/31/2020 30 912828XQ8 1578 U.S. Treasury Coupon Securities Fair 3,891,250.00 2.000 4,152,520.00 06/30/2020 2.705 07/31/2022 760 9128282W9 1579 U.S. Treasury Coupon Securities Fair 1,933,125.00 1.875 2,076,560.00 06/30/2020 2.711 09/30/2022 821 9128282JB 1583 U.S. Treasury Coupon Securities Fair 1,959,062.50 1.500 2,001,020.00 06/30/2020 2.531 07/15/2020 14 912828592 1592 U.S. Treasury Coupon Securities Fair 2,884,687.50 1.250 3,098,790.00 06/30/2020 2.181 07/31/2023 1,125 9128282/31 1604 U.S. Treasury Coupon Securities Amort 1,971,562.50 1.375 2,075,400.00 06/30/2020 1.729 08/31/2023 1,156 Subtotal and Average 36,319,387.50 37,637,330.00 2.105 451 Wells Fargo Bank 949763JG2 1535 Certificates of Deposit - Bank Amort 245,000.00 2.250 254,954.35 06/30/2020 2.250 06/30/2022 729 Subtotal and Average 245,000.00 254,954.35 2.250 729 Winter Hill Bank FSB Portfolio FY20 Data Updated: SET_ANNU: 09/13/2020 14:36 AC Run Date: 09/13/2020 - D _DI) 7.1.1 � �0 -10 -14 Item #08D Page 17 o11R er.7.3.6.1 City of Encinitas - YTD Report Investments by Issuer Sorted by Issuer Page 8 Investment Current Market YTM Redemption Days To Call CUSIP Investment # Security Type Class Remaining Cost Rate Market Value Date 365 Date Maturity Date Collateral 975875AK1 1526 Certificates of Deposit - Bank Amort 245,000.00 1.800 248,991.05 06/30/2020 1.800 06/28/2021 362 Subtotal and Average 245,000.00 248,991.05 1.800 362 Total and Average 135,655,109.02 139,268,720.55 1.840 438 Portfolio FY20 Data Updated: SET_ANNU: 09/13/2020 14:36 AC Run Date: 09/13/2020 - D _DI) 7.1.1 � �0 -10 -14 Item #08D Page 18 ofR er.7.3.6.1 - City of Encinitas - YTD Report Activity Report Sorted By Issuer July 1, 2019 - June 30, 2020 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or CUSIP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Issuer: Ally Bank CITY OF ENCINITAS 505 S. VULCAN ENCINITAS, ENCINITAS, CA 9 (760)633 -2641 Ending Balance Certificates of Deposit - Bank 020061-31\11 1527 Ally Bank 1.900 06/22/2020 0.00 245,000.00 Subtotal and Balance 245,000.00 0.00 245,000.00 0.00 Issuer Subtotal 0.000% 245,000.00 0.00 245,000.00 0.00 Issuer: ALMA BANK Certificates of Deposit - Bank 020080BUO 1619 ALMA BANK 0.900 03/30/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: American Express National Bank Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: BANK HAPOALIM BM NY Certificates of Deposit - Bank Subtotal and Balance 246,000.00 246,000.00 Issuer Subtotal 0.180% 246,000.00 0.00 0.00 246,000.00 Issuer: BankVista Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 19 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Issuer: Chippewa Valley Bank Certificates of Deposit - Bank 169894AN2 1529 Chippewa Valley Bank 1.700 06/30/2020 0.00 245,000.00 Subtotal and Balance 245,000.00 0.00 245,000.00 0.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 20 of ,821er. 7.3.6.1 Activity Report Page 2 July 1, 2019 - June 30, 2020 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 Subtotal and Balance 246,000.00 246,000.00 Issuer Subtotal 0.180% 246,000.00 0.00 0.00 246,000.00 Issuer: CA Asset Management Program Managed Pool Accounts SYS1003 1003 CA Asset Management Program 0.510 19,268.18 0.00 Subtotal and Balance 1,049,403.32 19,268.18 0.00 1,068,671.50 Issuer Subtotal 0.783% 1,049,403.32 19,268.18 0.00 1,068,671.50 Issuer: Capital One NA Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: Capital One Bank USA, NA Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: CELTIC BANK Negotiable CDs 15118RSNB 1614 CELTIC BANK 1.600 10/30/2019 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: Chippewa Valley Bank Certificates of Deposit - Bank 169894AN2 1529 Chippewa Valley Bank 1.700 06/30/2020 0.00 245,000.00 Subtotal and Balance 245,000.00 0.00 245,000.00 0.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 20 of ,821er. 7.3.6.1 City of Encinitas - YTD Report. Activity Report Page 3 July 1, 2019 - June 30, 2020 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer Subtotal 0.000% 245,000.00 0.00 245,000.00 0.00 Issuer: CIT Bank Certificates of Deposit - Bank 17284C5K6 1487 CIT Bank 2.200 12/10/2019 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: Citi Bank NA Certificates of Deposit - Bank Subtotal and Balance 246,000.00 246,000.00 Issuer Subtotal 0.180% 246,000.00 0.00 0.00 246,000.00 Issuer: Citizens State Bankl Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: COMMERCE BANK GENEVA MN Certificates of Deposit - Bank Subtotal and Balance 249,000.00 249,000.00 Issuer Subtotal 0.182% 249,000.00 0.00 0.00 249,000.00 Issuer: City National Bank Metropolis Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: COMMUNITY BANK Certificates of Deposit - Bank 203522AT4 1610 COMMUNITY BANK 1.650 11/08/2019 249,000.00 0.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 21 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Activity Report July 1, 2019 - June 30, 2020 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or CUSIP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Page 4 Ending Balance Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: Comenity Capital Bank Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Negotiable CDs 20033AUE4 1525 Comenity Capital Bank 1.750 10/28/2019 0.00 245,000.00 Subtotal and Balance 245,000.00 0.00 245,000.00 0.00 Issuer Subtotal 0.180% 490,000.00 0.00 245,000.00 245,000.00 Issuer: SD County Investment Pool Managed Pool Accounts SYS1584 1584 SD County Investment Pool 5.102 109,777.52 0.00 Subtotal and Balance 4,048,421.20 109,777.52 0.00 4,158,198.72 Issuer Subtotal 3.048% 4,048,421.20 109,777.52 0.00 4,158,198.72 Issuer: CORNHUSKER BANK Certificates of Deposit - Bank 219255AK2 1623 CORNHUSKER BANK 1.100 03/30/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: CENTERSTATE BANK NA Certificates of Deposit - Bank 15201QCJ4 1620 CENTERSTATE BANK NA 1.000 03/30/2020 248,000.00 0.00 Subtotal and Balance 0.00 248,000.00 0.00 248,000.00 Issuer Subtotal 0.182% 0.00 248,000.00 0.00 248,000.00 Issuer: Denver Savings Bank Certificates of Deposit - Bank Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 22 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Activity Report Page 5 July 1, 2019 - June 30, 2020 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Subtotal and Balance 249,000.00 249,000.00 Issuer Subtotal 0.182% 249,000.00 0.00 0.00 249,000.00 Issuer: EAGLEBANK Certificates of Deposit - Bank Subtotal and Balance 249,000.00 249,000.00 Issuer Subtotal 0.182% 249,000.00 0.00 0.00 249,000.00 Issuer: Enerbank USA Certificates of Deposit - Bank Subtotal and Balance 246,000.00 246,000.00 Issuer Subtotal 0.180% 246,000.00 0.00 0.00 246,000.00 Issuer: ENTERPRISE BANK AND TRUST Certificates of Deposit - Bank 29367SJQ8 1607 ENTERPRISE BANK AND TRUST 1.800 11/08/2019 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: EVERGREEN BANK GROUP Certificates of Deposit - Bank 300185JF3 1615 EVERGREEN BANK GROUP 1.000 03/26/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: First Bank Puerto Rico Negotiable CDs 33767GAMO 1608 First Bank Puerto Rico 1.850 10/28/2019 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 23 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Federal Agency Coupon Securities 313383HU8 1513 Federal Home Loan Bank 1.750 06/12/2020 0.00 2,000,000.00 Subtotal and Balance 12,000,000.00 0.00 2,000,000.00 10,000,000.00 Issuer Subtotal 7.329% 12,000,000.00 0.00 2,000,000.00 10,000,000.00 Issuer: Federal Home Loan Mortgage Federal Agency Coupon Securities 3137EADR7 1512 Federal Home Loan Mortgage 1.375 05/01/2020 0.00 2,000,000.00 3137EAEB1 1559 Federal Home Loan Mortgage 0.875 07/19/2019 0.00 2,000,000.00 Subtotal and Balance 10,000,000.00 0.00 4,000,000.00 6,000,000.00 Issuer Subtotal 4.398% 10,000,000.00 0.00 4,000,000.00 6,000,000.00 Issuer: Firstrust Savings Bank Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: FIRST SERVICE BANK Certificates of Deposit - Bank 33640VDE5 1609 FIRST SERVICE BANK 1.700 11/15/2019 249,000.00 0.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 24 of ,821er. 7.3.6.1 Activity Report Page 6 July 1, 2019 - June 30, 2020 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: FEDERAL FARM CREDIT BANK Federal Agency Coupon Securities Subtotal and Balance 5,000,000.00 5,000,000.00 Issuer Subtotal 3.665% 5,000,000.00 0.00 0.00 5,000,000.00 Issuer: Federal Farm Credit Federal Agency Coupon Securities Subtotal and Balance 13,000,000.00 13,000,000.00 Issuer Subtotal 9.528% 13,000,000.00 0.00 0.00 13,000,000.00 Issuer: Federal Home Loan Bank Federal Agency Coupon Securities 313383HU8 1513 Federal Home Loan Bank 1.750 06/12/2020 0.00 2,000,000.00 Subtotal and Balance 12,000,000.00 0.00 2,000,000.00 10,000,000.00 Issuer Subtotal 7.329% 12,000,000.00 0.00 2,000,000.00 10,000,000.00 Issuer: Federal Home Loan Mortgage Federal Agency Coupon Securities 3137EADR7 1512 Federal Home Loan Mortgage 1.375 05/01/2020 0.00 2,000,000.00 3137EAEB1 1559 Federal Home Loan Mortgage 0.875 07/19/2019 0.00 2,000,000.00 Subtotal and Balance 10,000,000.00 0.00 4,000,000.00 6,000,000.00 Issuer Subtotal 4.398% 10,000,000.00 0.00 4,000,000.00 6,000,000.00 Issuer: Firstrust Savings Bank Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: FIRST SERVICE BANK Certificates of Deposit - Bank 33640VDE5 1609 FIRST SERVICE BANK 1.700 11/15/2019 249,000.00 0.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 24 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Activity Report July 1, 2019 - June 30, 2020 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or CUSIP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Page 7 Ending Balance Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: Federal Nat'l Mortgage Assoc. Federal Agency Coupon Securities 3135GOZG1 1506 Federal Nat'l Mortgage Assoc. 1.750 09/12/2019 0.00 2,000,000.00 3135GOZY2 1507 Federal Nat'l Mortgage Assoc. 1.750 11/26/2019 0.00 2,000,000.00 Subtotal and Balance 9,000,000.00 0.00 4,000,000.00 5,000,000.00 Issuer Subtotal 3.665% 9,000,000.00 0.00 4,000,000.00 5,000,000.00 Issuer: FORTIS PRIVATE BANK Negotiable CDs 3495FTCB3 1587 FORTIS PRIVATE BANK 2.800 01/29/2020 0.00 249,000.00 Subtotal and Balance 249,000.00 0.00 249,000.00 0.00 Issuer Subtotal 0.000% 249,000.00 0.00 249,000.00 0.00 Issuer: FORTUNE BANK ARNOLD Certificates of Deposit - Bank 34969RCS5 1616 FORTUNE BANK ARNOLD 1.000 03/27/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: First State Bank Dequeen Certificates of Deposit - Bank Subtotal and Balance 249,000.00 249,000.00 Issuer Subtotal 0.182% 249,000.00 0.00 0.00 249,000.00 Issuer: First Source Bank Certificates of Deposit - Bank Subtotal and Balance 246,000.00 246,000.00 Issuer Subtotal 0.180% 246,000.00 0.00 0.00 246,000.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 25 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Local Agency Investment Funds SYS1012 1012 CA LAIF 1.217 53,955,914.68 37,250,000.00 Subtotal and Balance 19,685,608.38 53,955,914.68 37,250,000.00 36,391,523.06 Issuer Subtotal 26.672% 19,685,608.38 53,955,914.68 37,250,000.00 36,391,523.06 Issuer: LCA Bank Corp Certificates of Deposit - Bank Subtotal and Balance 246,000.00 246,000.00 Issuer Subtotal 0.180% 246,000.00 0.00 0.00 246,000.00 Issuer: LEGENDS BANK Certificates of Deposit - Bank 52465JHT7 1618 LEGENDS BANK 1.000 03/30/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: LIVE OAK BANKING COMPANY Certificates of Deposit - Bank 538036KU7 1622 LIVE OAK BANKING COMPANY 1.100 03/31/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 26 of ,821er. 7.3.6.1 Activity Report Page 8 July 1, 2019 - June 30, 2020 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: Goldman Sachs Bank USA Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: Industrial & Comm Bank China Certificates of Deposit - Bank Subtotal and Balance 249,000.00 249,000.00 Issuer Subtotal 0.182% 249,000.00 0.00 0.00 249,000.00 Issuer: CA LAIF Local Agency Investment Funds SYS1012 1012 CA LAIF 1.217 53,955,914.68 37,250,000.00 Subtotal and Balance 19,685,608.38 53,955,914.68 37,250,000.00 36,391,523.06 Issuer Subtotal 26.672% 19,685,608.38 53,955,914.68 37,250,000.00 36,391,523.06 Issuer: LCA Bank Corp Certificates of Deposit - Bank Subtotal and Balance 246,000.00 246,000.00 Issuer Subtotal 0.180% 246,000.00 0.00 0.00 246,000.00 Issuer: LEGENDS BANK Certificates of Deposit - Bank 52465JHT7 1618 LEGENDS BANK 1.000 03/30/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: LIVE OAK BANKING COMPANY Certificates of Deposit - Bank 538036KU7 1622 LIVE OAK BANKING COMPANY 1.100 03/31/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 26 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Activity Report Page 9 July 1, 2019 - June 30, 2020 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSIP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: Marathon Savings Bank Certificates of Deposit - Bank 56585YAB6 1532 Marathon Savings Bank 1.700 06/29/2020 0.00 245,000.00 Subtotal and Balance 245,000.00 0.00 245,000.00 0.00 Issuer Subtotal 0.000% 245,000.00 0.00 245,000.00 0.00 Issuer: Medallion Bank UT Certificates of Deposit - Bank Subtotal and Balance 249,000.00 249,000.00 Issuer Subtotal 0.182% 249,000.00 0.00 0.00 249,000.00 Issuer: Merrick Bank Certificates of Deposit - Bank Subtotal and Balance 249,000.00 249,000.00 Issuer Subtotal 0.182% 249,000.00 0.00 0.00 249,000.00 Issuer: MORGAN STANLEY PRIVATE BANK Certificates of Deposit - Bank Subtotal and Balance 246,000.00 246,000.00 Issuer Subtotal 0.180% 246,000.00 0.00 0.00 246,000.00 Issuer: MIDCOUNTRY BANK Certificates of Deposit - Bank 59565QCS2 1617 MIDCOUNTRY BANK 1.000 03/27/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: Morgan Stanley Bank Certificates of Deposit - Bank Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 27 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Activity Report July 1, 2019 - June 30, 2020 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or CUSP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Page 10 Ending Balance Subtotal and Balance 246,000.00 246,000.00 Issuer Subtotal 0.180% 246,000.00 0.00 0.00 246,000.00 Issuer: MARLIN BUSINESS BANK Negotiable CDs 57116ASF6 1586 MARLIN BUSINESS BANK 2.800 01/28/2020 0.00 249,000.00 Subtotal and Balance 249,000.00 0.00 249,000.00 0.00 Issuer Subtotal 0.000% 249,000.00 0.00 249,000.00 0.00 Issuer: NICOLET NATIONAL BANK Certificates of Deposit - Bank 654062JRO 1625 NICOLET NATIONAL BANK 1.150 03/31/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: PACIFIC ENTERPRISE BANK Certificates of Deposit - Bank 694231AD3 1621 PACIFIC ENTERPRISE BANK 1.150 03/30/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: PADUCAH BANK AND TRUST Certificates of Deposit - Bank 695292FP2 1613 PADUCAH BANK AND TRUST 1.650 11/08/2019 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: PEOPLES BANK /SARDIS TN Certificates of Deposit - Bank 710673AC8 1624 PEOPLES BANK /SARDIS TN 1.000 03/31/2020 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 28 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Issuer: TIAA FSB Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 29 of ,821er. 7.3.6.1 Activity Report Page 11 July 1, 2019 - June 30, 2020 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or Ending CUSP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Balance Issuer: POPPY BANK Certificates of Deposit - Bank 73319FAD1 1611 POPPY BANK 1.650 11/04/2019 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: REVERE BANK Certificates of Deposit - Bank Subtotal and Balance 247,000.00 247,000.00 Issuer Subtotal 0.181% 247,000.00 0.00 0.00 247,000.00 Issuer: Sallie Mae Bank /Murray Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: Synchrony Bank Certificates of Deposit - Bank 87164YE136 1478 Synchrony Bank 2.000 10/17/2019 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: Texas Exchange Bank Negotiable CDs 88241TCP3 1581 Texas Exchange Bank 3.250 07/29/2019 0.00 245,000.00 Subtotal and Balance 245,000.00 0.00 245,000.00 0.00 Issuer Subtotal 0.000% 245,000.00 0.00 245,000.00 0.00 Issuer: TIAA FSB Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 29 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Activity Report July 1, 2019 - June 30, 2020 Par Value Par Value Percent Beginning Current Transaction Purchases or Redemptions or CUSP Investment # Issuer of Portfolio Balance Rate Date Deposits Withdrawals Page 12 Ending Balance Issuer Subtotal 0.180% 245,000.00 0.00 0.00 245,000.00 Issuer: TRIAD BANK FRONTENAC MO Certificates of Deposit - Bank 89579NCB7 1612 TRIAD BANK FRONTENAC MO 1.800 11/08/2019 249,000.00 0.00 Subtotal and Balance 0.00 249,000.00 0.00 249,000.00 Issuer Subtotal 0.182% 0.00 249,000.00 0.00 249,000.00 Issuer: Union Bank Checking Acct. Passbook /Checking Accounts SYS1010 1010 Union Bank Checking Acct. 43,041,787.89 41,108,289.68 Subtotal and Balance 1,819,981.91 43,041,787.89 41,108,289.68 3,753,480.12 Issuer Subtotal 2.751% 1,819,981.91 43,041,787.89 41,108,289.68 3,753,480.12 Issuer: Union Bank Custody Acct. Money Market Funds SYS1004 1004 Union Bank Custody Acct. 0.070 36,055,146.98 33,683,537.86 Subtotal and Balance 823,166.00 36,055,146.98 33,683,537.86 3,194,775.12 Issuer Subtotal 2.342% 823,166.00 36,055,146.98 33,683,537.86 3,194,775.12 Issuer: U.S. Treasury Notes U.S. Treasury Coupon Securities 912828TH3 1510 U.S. Treasury Notes 0.875 07/31/2019 0.00 2,000,000.00 912828TNO 1515 U.S. Treasury Notes 1.000 09/03/2019 0.00 2,000,000.00 912828TV2 1516 U.S. Treasury Notes 1.250 10/31/2019 0.00 2,000,000.00 912828J50 1517 U.S. Treasury Notes 1.375 03/02/2020 0.00 2,000,000.00 912828J84 1518 U.S. Treasury Notes 1.375 03/31/2020 0.00 2,000,000.00 912828WW6 1577 U.S. Treasury Notes 1.625 07/31/2019 0.00 2,000,000.00 Subtotal and Balance 49,000,000.00 0.00 12,000,000.00 37,000,000.00 Issuer Subtotal 27.118% 49,000,000.00 0.00 12,000,000.00 37,000,000.00 Issuer: Wells Fargo Bank Certificates of Deposit - Bank Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 30 of ,821er. 7.3.6.1 Percent CUSIP Investment # Issuer of Portfolio Issuer: Wells Fargo Bank City of Encinitas - YTD Report Activity Report July 1, 2019 - June 30, 2020 Par Value Beginning Current Transaction Balance Rate Date Par Value Purchases or Redemptions or Deposits Withdrawals Page 13 Ending Balance Certificates of Deposit - Bank Subtotal and Balance 245,000.00 245,000.00 Issuer Subtotal 0.180% 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 0.180% 245,000.00 0.00 0.00 245,000.00 Total 100.000% 134,788,580.81 137,911,895.25 136,260,827.54 136,439,648.52 Portfolio FY20 AC Run Date: 09/1312020 - 15:07 DA (PRF_DA) 7.2.0 2020 -10 -14 Item #08D Page 31 of ,821er. 7.3.6.1 City of Encinitas - YTD Report Portfolio Management Interest Earnings Summary June 30, 2020 June 301VIonth Ending Fiscal Year To Date CD /Coupon /Discount Investments: Interest Collected 152,336.75 1,811,316.57 Plus Accrued Interest at End of Period 413,874.80 413,874.80 Less Accrued Interest at Beginning of Period ( 430,239.20) ( 477,936.08) Less Accrued Interest at Purchase During Period ( 0.00) ( 37.86) Interest Earned during Period 135,972.35 1,747,217.43 Adjusted by Premiums and Discounts 16,836.62 190,020.78 Adjusted by Capital Gains or Losses 0.00 - 367.50 Earnings during Periods 152,808.97 1,936,870.71 Page 1 Pass Through Securities: Interest Collected 0.00 0.00 Plus Accrued Interest at End of Period 0.00 0.00 Less Accrued Interest at Beginning of Period ( 0.00) ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00) ( 0.00) Interest Earned during Period 0.00 0.00 Adjusted by Premiums and Discounts 0.00 0.00 Adjusted by Capital Gains or Losses 0.00 0.00 Earnings during Periods 0.00 0.00 Cash /Checking Accounts: Interest Collected 16,152.32 610,158.29 Plus Accrued Interest at End of Period 135,642.66 135,642.66 Less Accrued Interest at Beginning of Period ( 89,932.04) ( 247,164.44) Interest Earned during Period 61,862.94 498,636.51 Total Interest Earned during Period 197,835.29 2,245,853.94 Total Adjustments from Premiums and Discounts 16,836.62 190,020.78 Total Capital Gains or Losses 0.00 - 367.50 Total Earnings during Period 214,671.91 2,435,507.22 Portfolio FY20 Data Updated: SET_ANNU: 09/13/2020 14:36 AC Run Date: 09 /1312020 - P (P M6) 7.3.0 '�< 20 -10 -14 Item #08D Page 32 Re er.7.3.6.1 CUSIP Investment # Fund Fund: General Investments 02006L3N1 1527 020080BUO 1619 02589AAM4 1580 06251AVV48 1585 06653ABM5 1533 05580AMB7 1562 SYS1003 1003 14042 RG N 5 1552 1404203Q1 1553 15118RSN8 1614 169894AN2 1529 17284C5K6 1487 17312QH69 1563 17670DAC8 1530 200056QRZ8 1595 17801 GSB7 1551 203522AT4 1610 20033AZK5 1571 20033AUE4 1525 SYS1584 1584 219255AK2 1623 15201 QCJ4 1620 249398BT4 1596 27002YE05 1594 29278TAU4 1568 29367SJQ8 1607 300185JF3 1615 33767GAMO 1608 3133EHN25 1606 3133EHST1 1591 3133EKNM4 1601 3133EHCT8 1536 City of Encinitas - YTD Report Interest Earnings Sorted by Fund - Issuer July 1, 2019 - June 30, 2020 Yield on Beginning Book Value Security Ending Beginning Ending Maturity Current Annualized Type Par Value Book Value Book Value Date Rate Yield CITY OF ENCINITAS 505 S. VULCAN ENCINITAS, ENCINITAS, CA 9 (760)633 -2641 Adjusted Interest Earnings Interest Amortization/ Adjusted Interest Earned Accretion Earnings 001 BCD 0.00 245,000.00 0.00 06/22/2020 1.900 1.900 4,552.98 0.00 4,552.98 001 BCD 249,000.00 0.00 249,000.00 09/29/2023 0.900 0.900 564.85 0.00 564.85 001 BCD 245,000.00 245,000.00 245,000.00 06/26/2023 3.300 3.300 8,107.16 0.00 8,107.16 001 BCD 246,000.00 246,000.00 246,000.00 03/25/2024 2.900 2.900 7,153.55 0.00 7,153.55 001 BCD 245,000.00 245,000.00 245,000.00 06/30/2022 2.000 2.000 4,913.40 0.00 4,913.40 001 BCD 246,000.00 246,000.00 246,000.00 03/29/2023 2.900 2.900 7,153.55 0.00 7,153.55 001 LA1 1,068,671.50 1,049,403.32 1,068,671.50 0.510 1.670 17,576.29 0.00 17,576.29 001 BCD 245,000.00 245,000.00 245,000.00 07/19/2022 2.300 2.300 5,650.44 0.00 5,650.44 001 BCD 245,000.00 245,000.00 245,000.00 07/19/2022 2.300 2.300 5,650.44 0.00 5,650.44 001 NCB 249,000.00 0.00 249,000.00 10/30/2023 1.600 1.600 2,674.20 0.00 2,674.20 001 BCD 0.00 245,000.00 0.00 06/30/2020 1.700 1.700 4,165.01 0.00 4,165.01 001 BCD 0.00 248,000.00 0.00 12/10/2019 2.200 2.200 2,421.56 0.00 2,421.56 001 BCD 246,000.00 246,000.00 246,000.00 03/29/2023 2.850 2.850 7,030.21 0.00 7,030.21 001 BCD 245,000.00 245,000.00 245,000.00 12/30/2021 1.900 1.900 4,667.76 0.00 4,667.76 001 BCD 249,000.00 249,000.00 249,000.00 06/26/2024 2.300 2.300 5,742.66 0.00 5,742.66 001 BCD 245,000.00 245,000.00 245,000.00 02/03/2022 2.000 2.000 4,913.40 0.00 4,913.40 001 BCD 249,000.00 0.00 249,000.00 11/08/2024 1.650 1.650 2,645.18 0.00 2,645.18 001 BCD 245,000.00 245,000.00 245,000.00 06/29/2023 3.300 3.300 8,107.14 0.00 8,107.14 001 NCB 0.00 245,000.00 0.00 06/19/2020 1.750 1.290 1,397.84 0.00 1,397.84 001 LA1 4,158,198.72 4,048,421.20 4,158,198.72 5.102 2.041 82,873.94 0.00 82,873.94 001 BCD 249,000.00 0.00 249,000.00 03/29/2024 1.100 1.100 690.38 0.00 690.38 001 BCD 248,000.00 0.00 248,000.00 03/31/2025 1.000 1.000 631.89 0.00 631.89 001 BCD 249,000.00 249,000.00 249,000.00 06/21/2023 2.250 2.250 5,617.86 0.00 5,617.86 001 BCD 249,000.00 249,000.00 249,000.00 06/20/2024 2.300 2.300 5,742.66 0.00 5,742.66 001 BCD 246,000.00 246,000.00 246,000.00 03/29/2023 2.850 2.850 7,030.21 0.00 7,030.21 001 BCD 249,000.00 0.00 249,000.00 11/08/2024 1.800 1.800 2,885.65 0.00 2,885.65 001 BCD 249,000.00 0.00 249,000.00 03/26/2025 1.000 1.000 654.91 0.00 654.91 001 NCB 249,000.00 0.00 249,000.00 10/25/2024 1.850 1.850 3,117.30 0.00 3,117.30 001 FAC 2,000,000.00 2,039,457.30 2,025,180.83 11/01/2023 2.200 1.782 44,000.00 - 7,554.25 36,445.75 001 FAC 1,000,000.00 994,751.15 993,472.07 07/26/2023 2.010 2.228 20,100.00 2,126.75 22,226.75 001 FAC 2,000,000.00 2,026,187.28 2,014,201.40 02/28/2022 2.200 1.744 44,000.00 - 8,563.66 35,436.34 001 FAC 2,000,000.00 2,016,756.00 2,010,562.82 03/15/2022 2.150 1.820 43,000.00 - 6,193.18 36,806.82 Run Date: 09/13/20202b�20 -10 -1 w Item #08D Portfolio FY20 AC oR Page 33 e der. 73.6.1 City of Encinitas - YTD Report Interest Earnings Page 2 July 1, 2019 - June 30, 2020 Run Date: 09/13/20202b�20 -10.14 Item #08D Portfolio FY20 AC Page34 ofe _IE) 7.2.0 g er. 7.3.6.1 Adjusted Interest Earnings Security Ending Beginning Ending Maturity Current Annualized Interest Amortization/ Adjusted Interest CUSIP Investment # Fund Type Par Value Book Value Book Value Date Rate Yield Earned Accretion Earnings Fund: General Investments 3133EC4Q4 1558 001 FAC 2,000,000.00 1,944,259.65 1,960,680.70 11/23/2022 1.820 2.709 36,400.00 16,421.05 52,821.05 3133EHNX7 1534 001 FAC 2,000,000.00 1,997,189.58 1,998,614.58 06/21/2021 1.650 1.719 33,000.00 1,425.00 34,425.00 3133EKSN7 1605 001 FAC 4,000,000.00 3,995,404.01 3,996,557.01 06/26/2023 1.770 1.796 70,800.00 1,153.00 71,953.00 3133EDWW8 1600 001 FAC 1,000,000.00 1,031,528.20 1,017,860.93 10/06/2022 2.600 1.751 26,000.00 - 7,889.49 18,110.51 3133EJBP3 1590 001 FAC 2,000,000.00 2,027,446.65 2,014,284.30 02/02/2023 2.500 2.188 50,000.00 - 5,523.46 44,476.54 313383HU8 1513 001 FAC 0.00 2,009,691.89 0.00 06/12/2020 1.750 1.228 33,152.78 - 9,691.89 23,460.89 313OA8QS5 1524 001 FAC 2,000,000.00 1,974,070.87 1,986,805.51 07/14/2021 1.125 1.780 22,500.00 12,734.64 35,234.64 313378JP7 1575 001 FAC 2,000,000.00 1,986,413.34 1,992,612.58 09/10/2021 2.375 2.696 47,500.00 6,199.24 53,699.24 3130AEBM1 1573 001 FAC 2,000,000.00 1,998,285.07 1,998,868.05 06/10/2022 2.750 2.774 55,000.00 582.98 55,582.98 3130AABG2 1555 001 FAC 2,000,000.00 1,970,484.16 1,982,725.75 11/29/2021 1.875 2.517 37,500.00 12,241.59 49,741.59 3130AG3Y9 1588 001 FAC 2,000,000.00 2,011,086.53 2,006,110.06 02/15/2022 2.420 2.213 48,399.99 - 3,766.47 44,633.52 3137EAEB1 1559 001 FAC 0.00 1,998,740.71 0.00 07/19/2019 0.875 2.165 875.00 1,259.29 2,134.29 3134G9N94 1537 001 FAC 2,000,000.00 2,006,570.27 2,003,399.63 07/27/2021 1.875 1.706 37,500.00 - 3,170.64 34,329.36 3137EAEC9 1557 001 FAC 2,000,000.00 1,944,917.98 1,970,975.18 08/12/2021 1.125 2.490 22,500.00 26,057.20 48,557.20 3137EADR7 1512 001 FAC 0.00 2,003,907.02 0.00 05/01/2020 1.375 1.135 22,916.67 - 3,907.02 19,009.65 3134GSAX3 1560 001 FAC 2,000,000.00 1,979,681.12 1,986,454.08 07/01/2022 2.220 2.578 44,400.00 6,772.96 51,172.96 33763OBD8 1531 001 BCD 245,000.00 245,000.00 245,000.00 06/23/2021 1.900 1.900 4,667.77 0.00 4,667.77 3364OVDE5 1609 001 BCD 249,000.00 0.00 249,000.00 11/15/2023 1.700 1.700 2,644.20 0.00 2,644.20 313500043 1602 001 FAC 2,000,000.00 2,103,025.16 2,065,825.66 09/12/2023 2.875 1.750 57,500.00 - 20,588.39 36,911.61 3135GOT78 1603 001 FAC 1,000,000.00 1,012,696.09 1,005,682.81 10/05/2022 2.000 1.722 20,000.00 - 2,513.28 17,486.72 3135GOZY2 1507 001 FAC 0.00 2,000,811.64 0.00 11/26/2019 1.750 1.638 14,097.22 - 811.64 13,285.58 3135GOZG1 1506 001 FAC 0.00 2,000,588.23 0.00 09/12/2019 1.750 1.578 6,902.78 - 588.23 6,314.55 3135GOT78 1589 001 FAC 2,000,000.00 1,988,130.38 1,991,770.13 10/05/2022 2.000 2.189 40,000.00 3,639.75 43,639.75 3495FTCB3 1587 001 NCB 0.00 249,000.00 0.00 03/29/2024 2.800 2.800 4,049.48 0.00 4,049.48 34969RCS5 1616 001 BCD 249,000.00 0.00 249,000.00 03/27/2024 1.000 1.000 648.09 0.00 648.09 336460CQ1 1598 001 BCD 249,000.00 249,000.00 249,000.00 06/28/2024 2.300 2.300 5,742.66 0.00 5,742.66 33646CJPO 1569 001 BCD 246,000.00 246,000.00 246,000.00 04/11/2023 2.850 2.850 7,030.20 0.00 7,030.20 38148PKX4 1528 001 BCD 245,000.00 245,000.00 245,000.00 06/21/2022 2.350 2.350 5,773.28 0.00 5,773.28 45581EASO 1564 001 BCD 249,000.00 249,000.00 249,000.00 03/29/2023 2.900 2.900 7,240.79 0.00 7,240.79 SYS1012 1012 001 LA5 36,391,523.06 19,685,608.38 36,391,523.06 1.217 1.906 376,144.47 0.00 376,144.47 501798LT7 1566 001 BCD 246,000.00 246,000.00 246,000.00 03/29/2023 2.800 2.800 6,906.87 0.00 6,906.87 52465JHT7 1618 001 BCD 249,000.00 0.00 249,000.00 09/30/2024 1.000 1.000 627.62 0.00 627.62 538036KU7 1622 001 BCD 249,000.00 0.00 249,000.00 03/31/2025 1.100 1.100 690.38 0.00 690.38 56585YAB6 1532 001 BCD 0.00 245,000.00 0.00 06/29/2020 1.700 1.700 4,153.60 0.00 4,153.60 58404DBL4 1561 001 BCD 249,000.00 249,000.00 249,000.00 03/28/2023 2.900 2.900 7,240.79 0.00 7,240.79 59013KAR7 1597 001 BCD 249,000.00 249,000.00 249,000.00 12/28/2023 2.400 2.400 5,992.38 0.00 5,992.38 61760AG52 1593 001 BCD 246,000.00 246,000.00 246,000.00 06/13/2024 2.600 2.600 6,413.52 0.00 6,413.52 59565QCS2 1617 001 BCD 249,000.00 0.00 249,000.00 03/27/2025 1.000 1.000 648.09 0.00 648.09 61747MR37 1565 001 BCD 246,000.00 246,000.00 246,000.00 03/29/2023 2.900 2.900 7,153.55 0.00 7,153.55 57116ASF6 1586 001 NCB 0.00 249,000.00 0.00 03/28/2024 2.800 2.800 4,030.38 0.00 4,030.38 Run Date: 09/13/20202b�20 -10.14 Item #08D Portfolio FY20 AC Page34 ofe _IE) 7.2.0 g er. 7.3.6.1 City of Encinitas - YTD Report Interest Earnings Page 3 July 1, 2019 - June 30, 2020 Run Date: 09/13/20202b�20 -10.1 w Item #08D Portfolio FY20 AC oR Page 35 e der. 73.6.1 Adjusted Interest Earnings Security Ending Beginning Ending Maturity Current Annualized Interest Amortization/ Adjusted Interest CUSIP Investment # Fund Type Par Value Book Value Book Value Date Rate Yield Earned Accretion Earnings Fund: General Investments 654062JRO 1625 001 BCD 249,000.00 0.00 249,000.00 03/28/2024 1.150 1.150 713.92 0.00 713.92 694231AD3 1621 001 BCD 249,000.00 0.00 249,000.00 03/31/2025 1.150 1.150 721.76 0.00 721.76 695292FP2 1613 001 BCD 249,000.00 0.00 249,000.00 11/08/2024 1.650 1.650 2,645.18 0.00 2,645.18 710673AC8 1624 001 BCD 249,000.00 0.00 249,000.00 09/30/2024 1.000 1.000 620.80 0.00 620.80 73319FAD1 1611 001 BCD 249,000.00 0.00 249,000.00 11/04/2024 1.650 1.650 2,690.21 0.00 2,690.21 761400BY1 1599 001 BCD 247,000.00 247,000.00 247,000.00 06/28/2024 2.300 2.300 5,696.56 0.00 5,696.56 79545OS89 1570 001 BCD 245,000.00 245,000.00 245,000.00 06/27/2023 3.300 3.300 8,107.16 0.00 8,107.16 87164YEB6 1478 001 BCD 0.00 248,000.00 0.00 10/17/2019 2.000 2.000 1,467.61 0.00 1,467.61 88241TCP3 1581 001 NCB 0.00 245,000.00 0.00 06/29/2023 3.250 3.250 610.82 0.00 610.82 87270LAD5 1554 001 BCD 245,000.00 245,000.00 245,000.00 07/19/2022 2.150 2.150 5,281.93 0.00 5,281.93 89579NCB7 1612 001 BCD 249,000.00 0.00 249,000.00 11/08/2024 1.800 1.800 2,885.65 0.00 2,885.65 SYS1010 1010 001 PA1 3,753,480.12 1,819,981.91 3,753,480.12 0.00 0.00 0.00 SYS1004 1004 001 LA3 3,194,775.12 823,166.00 3,194,775.12 0.070 2.670 22,041.81 0.00 22,041.81 912828XQB 1578 001 TRC 4,000,000.00 3,918,146.72 3,944,752.67 07/31/2022 2.000 2.714 80,036.42 26,605.95 106,642.37 9128282J8 1583 001 TRC 2,000,000.00 1,979,230.64 1,999,234.81 07/15/2020 1.500 2.520 30,006.37 20,004.17 50,010.54 9128282W9 1579 001 TRC 2,000,000.00 1,949,016.94 1,964,737.07 09/30/2022 1.875 2.723 37,500.00 15,720.13 53,220.13 912828WW6 1577 001 TRC 0.00 1,998,804.69 0.00 07/31/2019 1.625 2.367 2,693.37 1,195.31 3,888.68 912828F96 1574 001 TRC 2,000,000.00 1,971,120.58 1,983,511.98 10/31/2021 2.000 2.651 40,000.00 12,391.40 52,391.40 912828T34 1556 001 TRC 2,000,000.00 1,939,932.27 1,966,677.76 09/30/2021 1.125 2.532 22,500.00 26,745.49 49,245.49 9128282D1 1604 001 TRC 2,000,000.00 1,980,473.55 1,978,471.68 08/31/2023 1.375 1.728 27,500.00 6,816.06 34,316.06 912828S92 1592 001 TRC 3,000,000.00 2,897,360.44 2,918,256.73 07/31/2023 1.250 2.207 37,517.07 26,593.80 64,110.87 912828L24 1572 001 TRC 2,000,000.00 1,950,276.28 1,966,005.65 08/31/2022 1.875 2.722 37,500.00 15,729.37 53,229.37 912828VP2 1576 001 TRC 2,000,000.00 1,988,852.81 1,999,155.52 07/31/2020 2.000 2.523 40,018.22 10,302.71 50,320.93 912828P87 1539 001 TRC 2,000,000.00 1,984,414.62 1,993,796.61 02/28/2021 1.125 1.602 22,500.00 9,381.99 31,881.99 912828J84 1518 001 TRC 0.00 2,002,968.41 0.00 03/31/2020 1.375 1.172 20,587.43 - 2,968.41 17,619.02 912828L65 1521 001 TRC 2,000,000.00 1,994,718.63 1,998,948.35 09/30/2020 1.375 1.586 27,500.00 4,229.72 31,729.72 912828L32 1520 001 TRC 2,000,000.00 1,995,370.59 1,999,338.66 08/31/2020 1.375 1.573 27,500.00 3,968.07 31,468.07 912828J50 1517 001 TRC 0.00 2,002,775.49 0.00 02/29/2020 1.375 1.165 18,308.42 - 2,775.49 15,532.93 912828TV2 1516 001 TRC 0.00 2,001,169.43 0.00 10/31/2019 1.250 1.064 8,288.04 - 1,169.43 7,118.61 912828TH3 1510 001 TRC 0.00 1,999,485.88 0.00 07/31/2019 0.875 1.195 1,450.28 514.12 1,964.40 912828TNO 1515 001 TRC 0.00 1,999,863.38 0.00 08/31/2019 1.000 1.033 3,315.22 136.62 3,451.84 912828XM7 1514 001 TRC 2,000,000.00 2,010,048.75 2,000,761.27 07/31/2020 1.625 1.152 32,514.80 - 9,287.48 23,227.32 912828L99 1522 001 TRC 2,000,000.00 1,993,730.86 1,998,432.71 10/31/2020 1.375 1.611 27,500.00 4,701.85 32,201.85 912828S76 1523 001 TRC 2,000,000.00 1,973,680.33 1,986,338.67 07/31/2021 1.125 1.777 22,510.24 12,658.34 35,168.58 912828A42 1538 001 TRC 2,000,000.00 2,011,904.48 2,003,493.21 11/30/2020 2.000 1.566 40,000.00 - 8,411.27 31,588.73 912828Q37 1540 001 TRC 2,000,000.00 1,987,628.69 1,994,714.60 03/31/2021 1.250 1.610 25,000.00 7,085.91 32,085.91 949763JG2 1535 001 BCD 245,000.00 245,000.00 245,000.00 06/30/2022 2.250 2.250 5,527.56 0.00 5,527.56 975875AK1 1526 001 BCD 245,000.00 245,000.00 245,000.00 06/28/2021 1.800 1.800 4,422.11 0.00 4,422.11 Subtotal 136,439,648.52 134,381,635.55 136,158,920.55 1.984 2,245,853.94 190,020.78 2,435,874.72 Run Date: 09/13/20202b�20 -10.1 w Item #08D Portfolio FY20 AC oR Page 35 e der. 73.6.1 Security Ending CUSIP Investment # Fund Type Par Value City of Encinitas - YTD Report Interest Earnings July 1, 2019 - June 30, 2020 Beginning Ending Maturity Current Annualized Book Value Book Value Date Rate Yield Total 136, 439, 648.52 134, 3 81, 63 5.55 136,158, 920.55 Run Date: 09/13/20202b�20 -10.1 w Item #08D Page 4 Adjusted Interest Earnings Interest Amortization/ Adjusted Interest Earned Accretion Earnings 1.984 2,245,853.94 190,020.78 2,435,874.72 Total Capital Gains or Losses (367.50) Total Earnings 2.435,507.22 Portfolio FY20 AC oR Page 36 e der. 73.6.1 CITY OF ENCINITAS City of Encinitas - YTD Report 505 S. VULCAN Purchases Report ENCINITAS, ENCINITAS, CA 9 (760)633 -2641 Sorted by Security Type - Purchase Date July 1, 2019 - June 30, 2020 Subtotal 4,232,000.00 4,232,000.00 0.00 4,232,000.00 Negotiable CDs 33767GAMO 1608 001 NCB FBPR 249,000.00 10/28/2019 11/25 - Monthly 249,000.00 Received 1.850 10/25/2024 1.852 249,000.00 15118RSN8 1614 001 NCB CELTIC 249,000.00 10/30/2019 11/30 -Monthly 249,000.00 1.600 10/30/2023 1.601 249,000.00 Subtotal Total Purchases Received = Accrued Interest at Purchase was received by report ending date. 498,000.00 4,730,000.00 Run Date: 09/13/2020 - 15:37 2020 -10 -14 Item #08D 498, 000.00 0.00 498, 000.00 4,730,000.00 0.00 4,730,000.00 Portfolio FY20 AC PU (PRF_PU) 7.1.1 Page 37 ofR82ver.7.3.6.1 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 Certificates of Deposit - Bank 73319FAD1 1611 001 BCD POPBK 249,000.00 11/04/201912/04 - Monthly 249,000.00 1.650 11/04/2024 1.650 249,000.00 203522AT4 1610 001 BCD COMMBK 249,000.00 11/08/201912/08 - Monthly 249,000.00 1.650 11/08/2024 1.650 249,000.00 29367SJQ8 1607 001 BCD ENTERB 249,000.00 11/08/201912/08 - Monthly 249,000.00 1.800 11/08/2024 1.800 249,000.00 695292FP2 1613 001 BCD PADUCA 249,000.00 11/08/201912/08 - Monthly 249,000.00 1.650 11/08/2024 1.650 249,000.00 89579NCB7 1612 001 BCD TRIADB 249,000.00 11/08/201912/08 - Monthly 249,000.00 1.800 11/08/2024 1.800 249,000.00 33640VDE5 1609 001 BCD FIRSTS 249,000.00 11/15/201912/15 - Monthly 249,000.00 1.700 11/15/2023 1.700 249,000.00 300185JF3 1615 001 BCD EVRGRN 249,000.00 03/26/2020 04/26 - Monthly 249,000.00 1.000 03/26/2025 1.000 249,000.00 34969RCS5 1616 001 BCD FORTUB 249,000.00 03/27/2020 04/27 - Monthly 249,000.00 1.000 03/27/2024 1.000 249,000.00 59565QCS2 1617 001 BCD MIDCBK 249,000.00 03/27/2020 04/27 - Monthly 249,000.00 1.000 03/27/2025 1.000 249,000.00 020080BUO 1619 001 BCD ALMABK 249,000.00 03/30/2020 04/30 - Monthly 249,000.00 0.900 09/29/2023 0.900 249,000.00 219255AK2 1623 001 BCD CRNHSK 249,000.00 03/30/2020 04/30 - Monthly 249,000.00 1.100 03/29/2024 1.100 249,000.00 15201QCJ4 1620 001 BCD CTRSTE 248,000.00 03/30/202009/30 -03/30 248,000.00 1.000 03/31/2025 1.000 248,000.00 52465JHT7 1618 001 BCD LEGEND 249,000.00 03/30/2020 04/30 - Monthly 249,000.00 1.000 09/30/2024 1.000 249,000.00 694231AD3 1621 001 BCD PACENT 249,000.00 03/30 /202004 /30- Monthly 249,000.00 1.150 03/31/2025 1.150 249,000.00 538036KU7 1622 001 BCD LIVOAK 249,000.00 03/31/2020 05/01 - Monthly 249,000.00 1.100 03/31/2025 1.100 249,000.00 654062JRO 1625 001 BCD NCBS 249,000.00 03/31/2020 04/30 - Monthly 249,000.00 1.150 03/28/2024 1.150 249,000.00 710673AC8 1624 001 BCD PEBATN 249,000.00 03/31/2020 04/30 - Monthly 249,000.00 1.000 09/30/2024 1.000 249,000.00 Subtotal 4,232,000.00 4,232,000.00 0.00 4,232,000.00 Negotiable CDs 33767GAMO 1608 001 NCB FBPR 249,000.00 10/28/2019 11/25 - Monthly 249,000.00 Received 1.850 10/25/2024 1.852 249,000.00 15118RSN8 1614 001 NCB CELTIC 249,000.00 10/30/2019 11/30 -Monthly 249,000.00 1.600 10/30/2023 1.601 249,000.00 Subtotal Total Purchases Received = Accrued Interest at Purchase was received by report ending date. 498,000.00 4,730,000.00 Run Date: 09/13/2020 - 15:37 2020 -10 -14 Item #08D 498, 000.00 0.00 498, 000.00 4,730,000.00 0.00 4,730,000.00 Portfolio FY20 AC PU (PRF_PU) 7.1.1 Page 37 ofR82ver.7.3.6.1 Managed Pool Accounts SYS1003 1003 LA1 1,068,671.50 0.510 2,141.27 0.00 17,576.29 SYS1584 1584 LA1 4,158,198.72 5.102 44,293.08 0.00 82,873.94 Subtotal 5,226,870.22 46,434.35 0.00 100,450.23 Money Market Funds SYS1004 1004 LA3 Subtotal 3,194,775.12 3,194,775.12 0.070 3,370.95 3,370.95 0.00 22,041.81 0.00 22,041.81 Certificates of Deposit - Bank 0.00 2,421.56 2,735.47 CITY OF ENCINITAS 4,552.98 4,667.76 87164YEB6 City of Encinitas - YTD Report BCD 0.00 505 S. VULCAN 2.000 1,019.18 0.00 Accrued Interest 1487 ENCINITAS, ENCINITAS, CA 9 12/10/2019 2.200 313.91 0.00 02006L3N1 1527 (760)633 -2641 r 06/22/2020 1.900 Sorted by Security Type - Maturity Date 0.00 56585YAB6 1532 BCD 0.00 06/29/2020 July 1, 2019 - June 30, 2020 34.23 0.00 169894AN2 1529 BCD 0.00 Adjusted Acc'd Int. 1.700 365.15 0.00 337630BD8 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 0.00 17670DACB 1530 BCD 245,000.00 12/30/2021 SYS1012 1012 LA5 36,391,523.06 1.217 197,359.12 0.00 376,144.47 455,914.68 117,588.91 02/03/2022 Subtotal 36,391,523.06 197,359.12 0.00 376,144.47 455,914.68 117,588.91 Managed Pool Accounts SYS1003 1003 LA1 1,068,671.50 0.510 2,141.27 0.00 17,576.29 SYS1584 1584 LA1 4,158,198.72 5.102 44,293.08 0.00 82,873.94 Subtotal 5,226,870.22 46,434.35 0.00 100,450.23 Money Market Funds SYS1004 1004 LA3 Subtotal 3,194,775.12 3,194,775.12 0.070 3,370.95 3,370.95 0.00 22,041.81 0.00 22,041.81 Certificates of Deposit - Bank 0.00 2,421.56 2,735.47 0.00 4,552.98 4,667.76 87164YEB6 1478 BCD 0.00 10/17/2019 2.000 1,019.18 0.00 17284C5K6 1487 BCD 0.00 12/10/2019 2.200 313.91 0.00 02006L3N1 1527 BCD 0.00 06/22/2020 1.900 114.78 0.00 56585YAB6 1532 BCD 0.00 06/29/2020 1.700 34.23 0.00 169894AN2 1529 BCD 0.00 06/30/2020 1.700 365.15 0.00 337630BD8 1531 BCD 245,000.00 06/23/2021 1.900 102.03 0.00 975875AK1 1526 BCD 245,000.00 06/28/2021 1.800 60.41 0.00 17670DACB 1530 BCD 245,000.00 12/30/2021 1.900 408.12 0.00 17801 GSB7 1551 BCD 245,000.00 02/03/2022 2.000 375.90 0.00 38148PKX4 1528 BCD 245,000.00 06/21/2022 2.350 157.74 0.00 06653ABM5 1533 BCD 245,000.00 06/30/2022 2.000 429.58 0.00 949763JG2 1535 BCD 245,000.00 06/30/2022 2.250 483.18 0.00 14042RGN5 1552 BCD 245,000.00 07/19/2022 2.300 2,516.45 0.00 1404203Q1 1553 BCD 245,000.00 07/19/2022 2.300 2,516.45 0.00 87270LAD5 1554 BCD 245,000.00 07/19/2022 2.150 2,352.33 0.00 58404DBL4 1561 BCD 249,000.00 03/28/2023 2.900 59.35 0.00 05580AMB7 1562 BCD 246,000.00 03/29/2023 2.900 1,837.25 0.00 17312QH69 1563 BCD 246,000.00 03/29/2023 2.850 1,805.57 0.00 29278TAU4 1568 BCD 246,000.00 03/29/2023 2.850 1,805.57 0.00 45581EASO 1564 BCD 249,000.00 03/29/2023 2.900 652.85 0.00 501798LT7 1566 BCD 246,000.00 03/29/2023 2.800 1,773.90 0.00 61747MR37 1565 BCD 246,000.00 03/29/2023 2.900 1,837.25 0.00 33646CJPO 1569 BCD 246,000.00 04/11/2023 2.850 1,555.86 0.00 249398BT4 1596 BCD 249,000.00 06/21/2023 2.250 138.14 0.00 Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest Run Date: 09/13/20204,Q ?0 -10 -1 " Item #08D 19,268.18 109,777.52 129,045.70 25,197.91 25,197.91 449.38 17, 389.50 17,838.88 214.85 214.85 1,467.61 2,486.79 0.00 2,421.56 2,735.47 0.00 4,552.98 4,667.76 0.00 4,153.60 4,187.83 0.00 4,165.01 4,530.16 0.00 4,667.77 4,667.77 102.03 4,422.11 4,422.11 60.41 4,667.76 5,063.12 12.76 4,913.40 4,913.40 375.90 5,773.28 5,773.28 157.74 4,913.40 5,329.56 13.42 5,527.56 5,995.81 14.93 5,650.44 5,635.00 2,531.89 5,650.44 5,635.00 2,531.89 5,281.93 5,267.50 2,366.76 7,240.79 7,240.79 59.35 7,153.55 7,153.55 1,837.25 7,030.21 7,030.21 1,805.57 7,030.21 7,030.21 1,805.57 7,240.79 7,854.08 39.56 6,906.87 6,906.87 1,773.90 7,153.55 7,153.55 1,837.25 7,030.20 7,030.20 1,555.86 5,617.86 5,617.86 138.14 Portfolio FY20 Page 38 of,, A,)7.28 Q; Report Ver. 7.3.6.1 City of Encinitas - YTD Report Accrued Interest Sorted by Security Type - Maturity Date Page 2 * Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Run Date: 09/13/202045'1 ?O -1 0-14 Item #08D Portfolio FY20 Page 39 of,, A,)7.28 Q; Report Ver. 7.3.6.1 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 02589AAM4 1580 BCD 245,000.00 06/26/2023 3.300 110.75 0.00 8,107.16 8,107.16 110.75 795450589 1570 BCD 245,000.00 06/27/2023 3.300 88.60 0.00 8,107.16 8,107.16 88.60 20033AZK5 1571 BCD 245,000.00 06/29/2023 3.300 730.97 0.00 8,107.14 8,793.81 44.30 020080BUO 1619 BCD 249,000.00 09/29/2023 0.900 0.00 0.00 564.85 564.85 0.00 33640VDE5 1609 BCD 249,000.00 11/15/2023 1.700 0.00 0.00 2,644.20 2,470.24 173.96 59013KAR7 1597 BCD 249,000.00 12/28/2023 2.400 32.75 0.00 5,992.38 5,992.38 32.75 06251AW48 1585 BCD 246,000.00 03/25/2024 2.900 1,915.43 0.00 7,153.55 7,153.55 1,915.43 34969RCS5 1616 BCD 249,000.00 03/27/2024 1.000 0.00 0.00 648.09 627.62 20.47 654062JRO 1625 BCD 249,000.00 03/28/2024 1.150 0.00 0.00 713.92 721.76 -7.84 219255AK2 1623 BCD 249,000.00 03/29/2024 1.100 0.00 0.00 690.38 690.38 0.00 61760AG52 1593 BCD 246,000.00 06/13/2024 2.600 315.42 0.00 6,413.52 6,413.52 315.42 27002YEQ5 1594 BCD 249,000.00 06/20/2024 2.300 156.90 0.00 5,742.66 5,742.66 156.90 200056QRZ8 1595 BCD 249,000.00 06/26/2024 2.300 62.76 0.00 5,742.66 5,742.66 62.76 336460CQ1 1598 BCD 249,000.00 06/28/2024 2.300 31.38 0.00 5,742.66 5,742.66 31.38 761400BY1 1599 BCD 247,000.00 06/28/2024 2.300 46.69 0.00 5,696.56 5,696.56 46.69 52465JHT7 1618 BCD 249,000.00 09/30/2024 1.000 0.00 0.00 627.62 627.62 0.00 710673AC8 1624 BCD 249,000.00 09/30/2024 1.000 0.00 0.00 620.80 627.62 -6.82 73319FAD1 1611 BCD 249,000.00 11/04/2024 1.650 0.00 0.00 2,690.21 2,397.55 292.66 203522AT4 1610 BCD 249,000.00 11/08/2024 1.650 0.00 0.00 2,645.18 2,397.55 247.63 29367SJQ8 1607 BCD 249,000.00 11/08/2024 1.800 0.00 0.00 2,885.65 2,615.50 270.15 695292FP2 1613 BCD 249,000.00 11/08/2024 1.650 0.00 0.00 2,645.18 2,397.55 247.63 89579NCB7 1612 BCD 249,000.00 11/08/2024 1.800 0.00 0.00 2,885.65 2,615.50 270.15 300185JF3 1615 BCD 249,000.00 03/26/2025 1.000 0.00 0.00 654.91 627.62 27.29 59565QCS2 1617 BCD 249,000.00 03/27/2025 1.000 0.00 0.00 648.09 627.62 20.47 15201QCJ4 1620 BCD 248,000.00 03/31/2025 1.000 0.00 0.00 631.89 0.00 631.89 538036KU7 1622 BCD 249,000.00 03/31/2025 1.100 0.00 0.00 690.38 472.76 217.62 694231AD3 1621 BCD 249,000.00 03/31/2025 1.150 0.00 0.00 721.76 721.76 0.00 Subtotal 11,375,000.00 26,206.83 0.00 221,047.09 223,023.50 24,230.42 Negotiable CDs 20033AUE4 1525 NCB 0.00 06/19/2020 1.750 140.96 0.00 1,397.84 1,538.80 0.00 88241TCP3 1581 NCB 0.00 06/29/2023 3.250 719.90 0.00 610.82 1,330.72 0.00 15118RSN8 1614 NCB 249,000.00 10/30/2023 1.600 0.00 0.00 2,674.20 2,663.28 10.92 57116ASF6 1586 NCB 0.00 03/28/2024 2.800 57.30 0.00 4,030.38 4,087.68 0.00 3495FTCB3 1587 NCB 0.00 03/29/2024 2.800 630.34 0.00 4,049.48 4,679.82 0.00 33767GAMO 1608 NCB 249,000.00 10/25/2024 1.850 0.00 0.00 3,117.30 3,041.58 75.72 Subtotal 498,000.00 1,548.50 0.00 15,880.02 17,341.88 86.64 U.S. Treasury Coupon Securities 912828TH3 1510 TRC 0.00 07/31/2019 0.875 7,299.72 0.00 1,450.28 8,750.00 0.00 912828WW6 1577 TRC 0.00 07/31/2019 1.625 13,556.63 0.00 2,693.37 16,250.00 0.00 * Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Run Date: 09/13/202045'1 ?O -1 0-14 Item #08D Portfolio FY20 Page 39 of,, A,)7.28 Q; Report Ver. 7.3.6.1 City of Encinitas - YTD Report Accrued Interest CUSIP Investment # Security Type Par Value Sorted by Security Type - Maturity Date Adjusted Acc'd Int. Maturity Current * Beginning at Purchase Date Rate Accrued Interest During Period Interest Earned Interest Received Page 3 * Ending Accrued Interest U.S. Treasury Coupon Securities 912828TNO 1515 TRC 0.00 08/31/2019 1.000 6,684.78 0.00 3,315.22 10,000.00 0.00 912828TV2 1516 TRC 0.00 10/31/2019 1.250 4,211.96 0.00 8,288.04 12,500.00 0.00 912828J50 1517 TRC 0.00 02/29/2020 1.375 9,191.58 0.00 18,308.42 27,500.00 0.00 912828J84 1518 TRC 0.00 03/31/2020 1.375 6,912.57 0.00 20,587.43 27,500.00 0.00 9128282J8 1583 TRC 2,000,000.00 07/15/2020 1.500 13,839.78 0.00 30,006.37 30,000.00 13,846.15 912828XM7 1514 TRC 2,000,000.00 07/31/2020 1.625 13,556.63 0.00 32,514.80 32,500.00 13,571.43 912828VP2 1576 TRC 2,000,000.00 07/31/2020 2.000 16,685.08 0.00 40,018.22 40,000.00 16,703.30 912828L32 1520 TRC 2,000,000.00 08/31/2020 1.375 9,191.58 0.00 27,500.00 27,500.00 9,191.58 912828L65 1521 TRC 2,000,000.00 09/30/2020 1.375 6,912.57 0.00 27,500.00 27,500.00 6,912.57 912828L99 1522 TRC 2,000,000.00 10/31/2020 1.375 4,633.15 0.00 27,500.00 27,500.00 4,633.15 912828A42 1538 TRC 2,000,000.00 11/30/2020 2.000 3,387.98 0.00 40,000.00 40,000.00 3,387.98 912828P87 1539 TRC 2,000,000.00 02/28/2021 1.125 7,520.38 0.00 22,500.00 22,500.00 7,520.38 912828Q37 1540 TRC 2,000,000.00 03/31/2021 1.250 6,284.15 0.00 25,000.00 25,000.00 6,284.15 912828S76 1523 TRC 2,000,000.00 07/31/2021 1.125 9,385.36 0.00 22,510.24 22,500.00 9,395.60 912828T34 1556 TRC 2,000,000.00 09/30/2021 1.125 5,655.74 0.00 22,500.00 22,500.00 5,655.74 912828F96 1574 TRC 2,000,000.00 10/31/2021 2.000 6,739.13 0.00 40,000.00 40,000.00 6,739.13 912828XQB 1578 TRC 4,000,000.00 07/31/2022 2.000 33,370.17 0.00 80,036.42 80,000.00 33,406.59 912828L24 1572 TRC 2,000,000.00 08/31/2022 1.875 12,533.97 0.00 37,500.00 37,500.00 12,533.97 9128282W9 1579 TRC 2,000,000.00 09/30/2022 1.875 9,426.23 0.00 37,500.00 37,500.00 9,426.23 912828S92 1592 TRC 3,000,000.00 07/31/2023 1.250 9,944.76 0.00 37,517.07 31,802.49 15,659.34 9128282D1 1604 TRC 2,000,000.00 08/31/2023 1.375 373.65 0.00 27,500.00 18,682.07 9,191.58 Subtotal 37,000,000.00 217,297.55 0.00 632,245.88 665,484.56 184,058.87 Federal Agency Coupon Securities 3137EAEB1 1559 FAC 0.00 07/19/2019 0.875 7,875.00 0.00 875.00 8,750.00 0.00 3135GOZG1 1506 FAC 0.00 09/12/2019 1.750 10,597.22 0.00 6,902.78 17,500.00 0.00 3135GOZY2 1507 FAC 0.00 11/26/2019 1.750 3,402.78 0.00 14,097.22 17,500.00 0.00 3137EADR7 1512 FAC 0.00 05/01/2020 1.375 4,583.33 0.00 22,916.67 27,500.00 0.00 313383HU8 1513 FAC 0.00 06/12/2020 1.750 1,847.22 0.00 33,152.78 35,000.00 0.00 3133EHNX7 1534 FAC 2,000,000.00 06/21/2021 1.650 916.67 0.00 33,000.00 33,000.00 916.67 313OA8QS5 1524 FAC 2,000,000.00 07/14/2021 1.125 10,437.50 0.00 22,500.00 22,500.00 10,437.50 3134G9N94 1537 FAC 2,000,000.00 07/27/2021 1.875 16,041.67 0.00 37,500.00 37,500.00 16,041.67 3137EAEC9 1557 FAC 2,000,000.00 08/12/2021 1.125 8,687.50 0.00 22,500.00 22,500.00 8,687.50 313378JP7 1575 FAC 2,000,000.00 09/10/2021 2.375 15,305.55 0.00 47,500.00 47,500.00 15,305.55 3130AABG2 1555 FAC 2,000,000.00 11/29/2021 1.875 3,333.33 0.00 37,500.00 37,500.00 3,333.33 3130AG3Y9 1588 FAC 2,000,000.00 02/15/2022 2.420 12,637.78 0.00 48,399.99 42,753.33 18,284.44 3133EKNM4 1601 FAC 2,000,000.00 02/28/2022 2.200 611.11 0.00 44,000.00 29,577.78 15,033.33 3133EHCT8 1536 FAC 2,000,000.00 03/15/2022 2.150 12,661.11 0.00 43,000.00 43,000.00 12,661.11 3130AEBM1 1573 FAC 2,000,000.00 06/10/2022 2.750 3,208.33 0.00 55,000.00 55,000.00 3,208.33 3134GSAX3 1560 FAC 2,000,000.00 07/01/2022 2.220 22,200.00 0.00 44,400.00 44,400.00 22,200.00 3135GOT78 1589 FAC 2,000,000.00 10/05/2022 2.000 9,555.56 0.00 40,000.00 40,000.00 9,555.56 * Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Run Date: 09/13/202045'1 ?O -1 0-14 Item #08D Portfolio FY20 Page 40 of,, A,)7.28 Q; Report Ver. 7.3.6.1 City of Encinitas - YTD Report Accrued Interest Sorted by Security Type - Maturity Date Page 4 Subtotal 39,000,000.00 Total 132,686,168.40 169,079.71 661,297.01 0.00 878,044.44 0.00 2,245,853.94 * Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Run Date: 09/13/2020 4n ?O -10 -1 4 Item #08D 841, 625.28 205,498.87 2, 357, 633.51 549, 517.44 Portfolio FY20 Page 41 of,, A,)7.28 Q; Report Ver. 7.3.6.1 Adjusted Acc'd Int. Security Par Maturity Current * Beginning at Purchase Interest Interest * Ending CUSIP Investment # Type Value Date Rate Accrued Interest During Period Earned Received Accrued Interest Federal Agency Coupon Securities 3135GOT78 1603 FAC 1,000,000.00 10/05/2022 2.000 277.78 0.00 20,000.00 15,500.00 4,777.78 3133EDWW8 1600 FAC 1,000,000.00 10/06/2022 2.600 361.11 0.00 26,000.00 20,222.22 6,138.89 3133EC4Q4 1558 FAC 2,000,000.00 11/23/2022 1.820 3,842.22 0.00 36,400.00 36,400.00 3,842.22 3133EJBP3 1590 FAC 2,000,000.00 02/02/2023 2.500 13,055.55 0.00 50,000.00 42,361.11 20,694.44 3133EKSN7 1605 FAC 4,000,000.00 06/26/2023 1.770 983.33 0.00 70,800.00 70,800.00 983.33 3133EHST1 1591 FAC 1,000,000.00 07/26/2023 2.010 5,248.34 0.00 20,100.00 16,694.17 8,654.17 3135GOU43 1602 FAC 2,000,000.00 09/12/2023 2.875 798.61 0.00 57,500.00 40,888.89 17,409.72 3133EHN25 1606 FAC 2,000,000.00 11/01/2023 2.200 611.11 0.00 44,000.00 37,277.78 7,333.33 Subtotal 39,000,000.00 Total 132,686,168.40 169,079.71 661,297.01 0.00 878,044.44 0.00 2,245,853.94 * Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Run Date: 09/13/2020 4n ?O -10 -1 4 Item #08D 841, 625.28 205,498.87 2, 357, 633.51 549, 517.44 Portfolio FY20 Page 41 of,, A,)7.28 Q; Report Ver. 7.3.6.1 Unrealized Gains and Losses Open Positions through June 30, 2020 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 1531 BCD 06/23/2017 245,000.00 06/23/2021 1,461 245,000.00 249,179.70 4,179.70 14,079.84 18,259.54 2.464 Firstrust Savings Bank 1.900 1,104 06/30/2020 1526 BCD 06/26/2017 245,000.00 06/28/2021 1,463 245,000.00 248,991.05 3,991.05 13,302.58 17,293.63 2.340 Winter Hill Bank FSB 1.800 1,101 06/30/2020 1530 BCD 06/30/2017 245,000.00 12/30/2021 1,644 245,000.00 251,284.25 6,284.25 13,990.54 20,274.79 2.753 Citizens State Bankl 1.900 1,097 06/30/2020 1551 BCD 07/03/2017 245,000.00 02/03/2022 1,676 245,000.00 252,036.40 7,036.40 14,686.50 21,722.90 2.958 City National Bank Metropolis 2.000 1,094 06/30/2020 1528 BCD 06/21/2017 245,000.00 06/21/2022 1,826 245,000.00 255,358.60 10,358.60 17,446.02 27,804.62 3.745 Goldman Sachs Bank USA 2.350 1,106 06/30/2020 1533 BCD 06/30/2017 245,000.00 06/30/2022 1,826 245,000.00 253,731.80 8,731.80 14,726.78 23,458.58 3.186 BankVista 2.000 1,097 06/30/2020 1535 BCD 06/30/2017 245,000.00 06/30/2022 1,826 245,000.00 254,954.35 9,954.35 16,567.58 26,521.93 3.602 Wells Fargo Bank 2.250 1,097 06/30/2020 1552 BCD 07/19/2017 245,000.00 07/19/2022 1,826 245,000.00 255,432.10 10,432.10 16,642.55 27,074.65 3.742 Capital One NA 2.300 1,078 06/30/2020 1553 BCD 07/19/2017 245,000.00 07/19/2022 1,826 245,000.00 255,432.10 10,432.10 16,642.55 27,074.65 3.742 Capital One Bank USA, NA 2.300 1,078 06/30/2020 1554 BCD 07/19/2017 245,000.00 07/19/2022 1,826 245,000.00 254,679.95 9,679.95 15,557.16 25,237.11 3.488 TIAA FSB 2.150 1,078 06/30/2020 1561 BCD 03/28/2018 249,000.00 03/28/2023 1,826 249,000.00 266,711.37 17,711.37 16,341.24 34,052.61 6.043 Medallion Bank UT 2.900 826 06/30/2020 1562 BCD 03/29/2018 246,000.00 03/29/2023 1,826 246,000.00 263,537.34 17,537.34 16,124.80 33,662.14 6.054 BMW Bank North America 2.900 825 06/30/2020 1563 BCD 03/29/2018 246,000.00 03/29/2023 1,826 246,000.00 263,200.32 17,200.32 15,846.78 33,047.10 5.943 Citi Bank NA 2.850 825 06/30/2020 1568 BCD 03/29/2018 246,000.00 03/29/2023 1,826 246,000.00 263,200.32 17,200.32 15,846.78 33,047.10 5.943 Enerbank USA 2.850 825 06/30/2020 1564 BCD 03/29/2018 249,000.00 03/29/2023 1,826 249,000.00 266,728.80 17,728.80 16,321.45 34,050.25 6.050 Industrial & Comm Bank China 2.900 825 06/30/2020 1566 BCD 03/29/2018 246,000.00 03/29/2023 1,826 246,000.00 262,863.30 16,863.30 15,568.77 32,432.07 5.833 LCA Bank Corp 2.800 825 06/30/2020 1565 BCD 03/29/2018 246,000.00 03/29/2023 1,826 246,000.00 263,537.34 17,537.34 16,124.80 33,662.14 6.054 Morgan Stanley Bank 2.900 825 06/30/2020 1569 BCD 04/11/2018 246,000.00 04/11/2023 1,826 246,000.00 263,379.90 17,379.90 15,597.06 32,976.96 6.026 First Source Bank 2.850 812 06/30/2020 Run Date: 09/13/2020 - 15:09 2020 -10 -14 Item #08D Portfolio FY20 AC CG PRF CGU1) 7. 1.1 Page 42 ofR r. 7.3.6.1 Unrealized Gains and Losses Open Positions through June 30, 2020 Page 2 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 1596 BCD 06/21/2019 249,000.00 06/21/2023 1,461 249,000.00 263,202.96 14,202.96 5,756.00 19,958.96 7.802 Denver Savings Bank 2.250 375 06/30/2020 1580 BCD 06/26/2018 245,000.00 06/26/2023 1,826 245,000.00 266,724.15 21,724.15 16,302.91 38,027.06 7.697 American Express National Bank 3.300 736 06/30/2020 1570 BCD 06/27/2018 245,000.00 06/27/2023 1,826 245,000.00 266,741.30 21,741.30 16,280.76 38,022.06 7.707 Sallie Mae Bank /Murray 3.300 735 06/30/2020 1571 BCD 06/29/2018 245,000.00 06/29/2023 1,826 245,000.00 266,731.50 21,731.50 16,236.43 37,967.93 7.717 Comenity Capital Bank 3.300 733 06/30/2020 1619 BCD 03/30/2020 249,000.00 09/29/2023 1,278 249,000.00 253,352.52 4,352.52 564.85 4,917.37 7.835 ALMA BANK 0.900 92 06/30/2020 1609 BCD 11/15/2019 249,000.00 11/15/2023 1,461 249,000.00 260,055.60 11,055.60 2,644.20 13,699.80 8.808 FIRST SERVICE BANK 1.700 228 06/30/2020 1597 BCD 06/28/2019 249,000.00 12/28/2023 1,644 249,000.00 266,355.30 17,355.30 6,025.13 23,380.43 9.313 Merrick Bank 2.400 368 06/30/2020 1585 BCD 03/25/2019 246,000.00 03/25/2024 1,827 246,000.00 268,595.10 22,595.10 9,068.98 31,664.08 10.125 BANK HAPOALIM BM NY 2.900 464 06/30/2020 1616 BCD 03/27/2020 249,000.00 03/27/2024 1,461 249,000.00 254,326.11 5,326.11 648.09 5,974.20 9.218 FORTUNE BANK ARNOLD 1.000 95 06/30/2020 1625 BCD 03/31/2020 249,000.00 03/28/2024 1,458 249,000.00 255,713.04 6,713.04 713.92 7,426.96 11.964 NICOLET NATIONAL BANK 1.150 91 06/30/2020 1623 BCD 03/30/2020 249,000.00 03/29/2024 1,460 249,000.00 255,252.39 6,252.39 690.38 6,942.77 11.062 CORNHUSKER BANK 1.100 92 06/30/2020 1593 BCD 06/13/2019 246,000.00 06/13/2024 1,827 246,000.00 266,723.04 20,723.04 6,728.94 27,451.98 10.607 MORGAN STANLEY PRIVATE BANK 2.600 384 06/30/2020 1594 BCD 06/20/2019 249,000.00 06/20/2024 1,827 249,000.00 267,087.36 18,087.36 5,899.56 23,986.92 9.351 EAGLEBANK 2.300 376 06/30/2020 1595 BCD 06/26/2019 249,000.00 06/26/2024 1,827 249,000.00 267,139.65 18,139.65 5,805.42 23,945.07 9.487 COMMERCE BANK GENEVA MN 2.300 370 06/30/2020 1598 BCD 06/28/2019 249,000.00 06/28/2024 1,827 249,000.00 267,159.57 18,159.57 5,774.04 23,933.61 9.534 First State Bank Dequeen 2.300 368 06/30/2020 1599 BCD 06/28/2019 247,000.00 06/28/2024 1,827 247,000.00 265,033.47 18,033.47 5,743.25 23,776.72 9.522 REVERE BANK 2.300 369 06/30/2020 1618 BCD 03/30/2020 249,000.00 09/30/2024 1,645 249,000.00 254,089.56 5,089.56 627.62 5,717.18 9.109 LEGENDS BANK 1.000 92 06/30/2020 1624 BCD 03/31/2020 249,000.00 09/30/2024 1,644 249,000.00 254,089.56 5,089.56 620.80 5,710.36 9.198 PEOPLES BANK /SARDIS TN 1.000 91 06/30/2020 1611 BCD 11/04/2019 249,000.00 11/04/2024 1,827 249,000.00 260,917.14 11,917.14 2,690.21 14,607.35 8.959 POPPY BANK 1.650 239 06/30/2020 1610 BCD 11/08/2019 249,000.00 11/08/2024 1,827 249,000.00 260,919.63 11,919.63 2,645.18 14,564.81 9.085 COMMUNITY BANK 1.650 235 06/30/2020 Run Date: 09/13/2020 - 15:09 2020 -10 -14 Item #08D Portfolio FY20 AC ofR r.1 Page 43 7.3.6.1 Unrealized Gains and Losses Open Positions through June 30, 2020 Page 3 Investment # Par Value Maturity Date Term 1,461 245 1,824 247 Subtotals Market Value 259,151.73 06/30/2020 263,041.11 06/30/2020 522,192.84 10,151.73 14,041.11 24,192.84 2,674.20 3,117.30 5,791.50 12,825.93 17,158.41 29,984.34 Inv. Purchase U.S. Treasury Coupon Securities Unrealized To Date To Date Actual Issuer Type Date Current Rate TRC Days Held Book Value Market Date Gain /Loss Earnings Net Earnings Yield 365 Certificates of Deposit - Bank 100,510.17 102,295.36 2.541 U.S. Treasury Notes 1.500 735 1607 BCD 11/08/2019 249,000.00 11/08/2024 1,827 249,000.00 262,525.68 13,525.68 2,885.65 16,411.33 10.237 ENTERPRISE BANK AND TRUST 1.800 2,000,761.27 235 1,638.73 06/30/2020 99,230.36 1.180 U.S. Treasury Notes 1613 BCD 11/08/2019 249,000.00 11/08/2024 1,827 249,000.00 260,919.63 11,919.63 2,645.18 14,564.81 9.085 PADUCAH BANK AND TRUST 1.650 06/26/2018 235 07/31/2020 06/30/2020 1,999,155.52 2,003,020.00 3,864.48 101,288.72 1612 BCD 11/08/2019 249,000.00 11/08/2024 1,827 249,000.00 262,525.68 13,525.68 2,885.65 16,411.33 10.237 TRIAD BANK FRONTENAC MO 1.800 235 1520 06/30/2020 02/13/2017 2,000,000.00 08/31/2020 1,295 1615 BCD 03/26/2020 249,000.00 03/26/2025 1,826 249,000.00 253,389.87 4,389.87 654.91 5,044.78 7.703 EVERGREEN BANK GROUP 1.000 96 06/30/2020 1521 TRC 1617 BCD 03/27/2020 249,000.00 03/27/2025 1,826 249,000.00 253,384.89 4,384.89 648.09 5,032.98 7.766 MIDCOUNTRY BANK 1.000 95 06/30/2020 06/30/2020 1620 BCD 03/30/2020 248,000.00 03/31/2025 1,827 248,000.00 252,344.96 4,344.96 631.89 4,976.85 7.876 CENTERSTATE BANK NA 1.000 118,186.63 93 U.S. Treasury Notes 06/30/2020 1.375 1,234 1622 BCD 03/31/2020 249,000.00 03/31/2025 1,826 249,000.00 254,532.78 5,532.78 690.38 6,223.16 9.916 LIVE OAK BANKING COMPANY 1.100 2,003,493.21 92 11,186.79 06/30/2020 106,257.87 1.761 U.S. Treasury Notes 1621 BCD 03/30/2020 249,000.00 03/31/2025 1,827 249,000.00 255,115.44 6,115.44 721.76 6,837.20 10.894 PACIFIC ENTERPRISE BANK 1.150 92 06/30/2020 Certificates of Deposit - Bank Subtotals 11,375,000.00 11,939,186.87 564,186.87 404,643.96 968,830.83 7.357 Negotiable CDs 1614 NCB CELTIC BANK 1608 NCB First Bank Puerto Rico 10/30/2019 10/28/2019 249,000.00 10/30/2023 1.600 249,000.00 10/25/2024 1.850 Negotiable CDs 1,461 245 1,824 247 Subtotals 249,000.00 249,000.00 498,000.00 259,151.73 06/30/2020 263,041.11 06/30/2020 522,192.84 10,151.73 14,041.11 24,192.84 2,674.20 3,117.30 5,791.50 12,825.93 17,158.41 29,984.34 7.674 10.183 8.928 U.S. Treasury Coupon Securities 1583 TRC 06/27/2018 2,000,000.00 07/15/2020 749 1,999,234.81 2,001,020.00 1,785.19 100,510.17 102,295.36 2.541 U.S. Treasury Notes 1.500 735 06/30/2020 1514 TRC 04/19/2016 2,000,000.00 07/31/2020 1,564 2,000,761.27 2,002,400.00 1,638.73 97,591.63 99,230.36 1.180 U.S. Treasury Notes 1.625 1,534 06/30/2020 1576 TRC 06/26/2018 2,000,000.00 07/31/2020 766 1,999,155.52 2,003,020.00 3,864.48 101,288.72 105,153.20 2.609 U.S. Treasury Notes 2.000 736 06/30/2020 1520 TRC 02/13/2017 2,000,000.00 08/31/2020 1,295 1,999,338.66 2,003,960.00 4,621.34 106,209.74 110,831.08 1.640 U.S. Treasury Notes 1.375 1,234 06/30/2020 1521 TRC 02/13/2017 2,000,000.00 09/30/2020 1,325 1,998,948.35 2,005,940.00 6,991.65 107,148.69 114,140.34 1.689 U.S. Treasury Notes 1.375 1,234 06/30/2020 1522 TRC 02/13/2017 2,000,000.00 10/31/2020 1,356 1,998,432.71 2,007,860.00 9,427.29 108,759.34 118,186.63 1.749 U.S. Treasury Notes 1.375 1,234 06/30/2020 1538 TRC 06/28/2017 2,000,000.00 11/30/2020 1,251 2,003,493.21 2,014,680.00 11,186.79 95,071.08 106,257.87 1.761 U.S. Treasury Notes 2.000 1,099 06/30/2020 Run Date: 09/13/2020 - 15:09 2020 -10 -14 Item #08D Portfolio FY20 AC CG PRF CGU1) 7. 1.1 Page 44 ofR r. 7.3.6.1 Unrealized Gains and Losses Open Positions through June 30, 2020 Page 4 Investment # 1534 FAC 06/21/2017 Par Value Maturity Date Term 1524 FAC Market Value Federal Home Loan Bank 2.206 1537 FAC 06/23/2017 Federal Home Loan Mortgage Inv. Purchase 02/23/2018 Federal Home Loan Mortgage 1575 FAC 06/26/2018 Unrealized To Date To Date Actual Issuer Type Date Current Rate Federal Home Loan Bank Days Held Book Value Market Date Gain /Loss Earnings Net Earnings Yield 365 U.S. Treasury Coupon Securities Federal Farm Credit 2,000,000.00 07/27/2021 1,495 2,003,399.63 2,032,420.00 29,020.37 103,750.97 132,771.34 1539 TRC 06/28/2017 2,000,000.00 02/28/2021 1,341 1,993,796.61 2,012,260.00 18,463.39 95,855.03 114,318.42 1.904 U.S. Treasury Notes 1,970,975.18 2,021,280.00 1.125 114,379.18 1,099 3.550 06/30/2020 859 06/30/2020 1540 TRC 06/28/2017 2,000,000.00 03/31/2021 1,372 1,994,714.60 2,016,100.00 21,385.40 96,482.02 117,867.42 1.962 U.S. Treasury Notes 2.375 1.250 1,099 06/30/2020 2,000,000.00 11/29/2021 1523 TRC 02/13/2017 2,000,000.00 07/31/2021 1,629 1,986,338.67 2,020,620.00 34,281.33 118,766.26 153,047.59 2.279 U.S. Treasury Notes 1.125 2,000,000.00 1,234 1,056 06/30/2020 2,070,020.00 63,909.94 56,287.83 120,197.77 1556 TRC 02/23/2018 2,000,000.00 09/30/2021 1,315 1,966,677.76 2,023,760.00 57,082.24 115,652.52 172,734.76 3.732 U.S. Treasury Notes 2,014,201.40 2,065,600.00 1.125 35,928.51 859 4.265 06/30/2020 371 06/30/2020 1574 TRC 06/26/2018 2,000,000.00 10/31/2021 1,223 1,983,511.98 2,048,760.00 65,248.02 105,461.71 170,709.73 4.268 U.S. Treasury Notes 2.150 2.000 736 06/30/2020 1578 TRC 06/26/2018 4,000,000.00 07/31/2022 1,496 3,944,752.67 4,152,520.00 207,767.33 214,644.07 422,411.40 5.310 U.S. Treasury Notes 2.000 736 06/30/2020 1572 TRC 06/26/2018 2,000,000.00 08/31/2022 1,527 1,966,005.65 2,073,680.00 107,674.35 107,140.16 214,814.51 5.419 U.S. Treasury Notes 1.875 736 06/30/2020 1579 TRC 06/26/2018 2,000,000.00 09/30/2022 1,557 1,964,737.07 2,076,560.00 111,822.93 107,124.37 218,947.30 5.527 U.S. Treasury Notes 1.875 736 06/30/2020 1592 TRC 03/27/2019 3,000,000.00 07/31/2023 1,587 2,918,256.73 3,098,790.00 180,533.27 81,031.06 261,564.33 7.081 U.S. Treasury Notes 1.250 462 06/30/2020 1604 TRC 06/26/2019 2,000,000.00 08/31/2023 1,527 1,978,471.68 2,075,400.00 96,928.32 34,782.83 131,711.15 6.550 U.S. Treasury Notes 1.375 371 06/30/2020 U.S. Treasury Coupon Securities Subtotals 36,696,627.95 37,637,330.00 940,702.05 1,793,519.40 2,734,221.45 3.555 Federal Agency Coupon Securities 1534 FAC 06/21/2017 Federal Farm Credit 2,028,000.00 1524 FAC 02/13/2017 Federal Home Loan Bank 2.206 1537 FAC 06/23/2017 Federal Home Loan Mortgage 1557 FAC 02/23/2018 Federal Home Loan Mortgage 1575 FAC 06/26/2018 Federal Home Loan Bank 1,612 1555 FAC 02/23/2018 Federal Home Loan Bank 119,210.51 1588 FAC 03/27/2019 Federal Home Loan Bank 1601 FAC 06/26/2019 FEDERAL FARM CREDIT BANK 1536 FAC 06/23/2017 Federal Farm Credit 2,000,000.00 2,000,000.00 06/21/2021 1,461 1,998,614.58 2,028,000.00 29,385.42 104,231.25 133,616.67 2.206 1.650 1,106 06/30/2020 2,000,000.00 07/14/2021 1,612 1,986,805.51 2,019,500.00 32,694.49 119,210.51 151,905.00 2.261 1.125 1,234 06/30/2020 2,000,000.00 07/27/2021 1,495 2,003,399.63 2,032,420.00 29,020.37 103,750.97 132,771.34 2.191 1.875 1,104 06/30/2020 2,000,000.00 08/12/2021 1,266 1,970,975.18 2,021,280.00 50,304.82 114,379.18 164,684.00 3.550 1.125 859 06/30/2020 2,000,000.00 09/10/2021 1,172 1,992,612.58 2,049,600.00 56,987.42 108,804.02 165,791.44 4.126 2.375 736 06/30/2020 2,000,000.00 11/29/2021 1,375 1,982,725.75 2,048,540.00 65,814.25 117,169.08 182,983.33 3.921 1.875 859 06/30/2020 2,000,000.00 02/15/2022 1,056 2,006,110.06 2,070,020.00 63,909.94 56,287.83 120,197.77 4.734 2.420 462 06/30/2020 2,000,000.00 02/28/2022 978 2,014,201.40 2,065,600.00 51,398.60 35,928.51 87,327.11 4.265 2.200 371 06/30/2020 2,000,000.00 03/15/2022 1,726 2,010,562.82 2,065,660.00 55,097.18 111,238.37 166,335.55 2.735 2.150 1.104 06/30/2020 Run Date: 09/13/2020 - 15:09 2020 -10 -14 Item #08D Portfolio FY20 AC ofR r.1 Page 45 7.3.6.1 Unrealized Gains and Losses Open Positions through June 30, 2020 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 1573 FAC 06/26/2018 2,000,000.00 06/10/2022 1,445 1,998,868.05 2,095,760.00 96,891.95 111,937.93 208,829.88 5.181 Federal Home Loan Bank 2.750 736 06/30/2020 1560 FAC 02/23/2018 2,000,000.00 07/01/2022 1,589 1,986,454.08 2,000,000.00 13,545.92 120,664.08 134,210.00 2.871 Federal Home Loan Mortgage 2.220 859 06/30/2020 1589 FAC 03/27/2019 2,000,000.00 10/05/2022 1,288 1,991,770.13 2,076,620.00 84,849.87 55,034.58 139,884.45 5.549 Federal Nat'l Mortgage Assoc. 2.000 462 06/30/2020 1603 FAC 06/26/2019 1,000,000.00 10/05/2022 1,197 1,005,682.81 1,038,310.00 32,627.19 17,729.59 50,356.78 4.926 Federal Nat'l Mortgage Assoc. 2.000 371 06/30/2020 1600 FAC 06/26/2019 1,000,000.00 10/06/2022 1,198 1,017,860.93 1,052,530.00 34,669.07 18,362.04 53,031.11 5.126 Federal Farm Credit 2.600 371 06/30/2020 1558 FAC 02/23/2018 2,000,000.00 11/23/2022 1,734 1,960,680.70 2,073,560.00 112,879.30 124,422.92 237,302.22 5.143 Federal Farm Credit 1.820 859 06/30/2020 1590 FAC 03/27/2019 2,000,000.00 02/02/2023 1,408 2,014,284.30 2,113,720.00 99,435.70 56,089.85 155,525.55 6.100 Federal Farm Credit 2.500 462 06/30/2020 1605 FAC 06/26/2019 4,000,000.00 06/26/2023 1,461 3,996,557.01 4,176,280.00 179,722.99 72,952.34 252,675.33 6.220 Federal Farm Credit 1.770 371 06/30/2020 1591 FAC 03/27/2019 1,000,000.00 07/26/2023 1,582 993,472.07 1,051,700.00 58,227.93 28,030.41 86,258.34 6.860 FEDERAL FARM CREDIT BANK 2.010 462 06/30/2020 1602 FAC 06/26/2019 2,000,000.00 09/12/2023 1,539 2,065,825.66 2,167,420.00 101,594.34 37,424.27 139,018.61 6.621 Federal Nat'l Mortgage Assoc. 2.875 371 06/30/2020 1606 FAC 06/26/2019 2,000,000.00 11/01/2023 1,589 2,025,180.83 2,123,860.00 98,679.17 36,951.94 135,631.11 6.589 FEDERAL FARM CREDIT BANK 2.200 371 06/30/2020 Federal Agency Coupon Securities Subtotals 39,022,644.08 40,370,380.00 1,347,735.92 1,550,599.67 2,898,335.59 4.567 Total Current Bond Positions 87,592,272.03 90,469,089.71 2,876,817.68 3,754,554.53 6,631,372.21 4.530 Total Realized and Unrealized Gains /Losses 2,876,450.18 4,864,867.48 7,741,317.66 3.875 Total realized capital loss - add back 367.50 Unrealized gain - CA LAIF 178,784.09 Unrealized gain - SD County Investment Pool 54,198.23 Total Unrealized Gais /Losses 3,109,800.00 Run Date: 09/13/2020 - 15:09 2020 -10 -14 Item #08D Portfolio FY20 AC ofR r.1 Page 46 7.3.6.1 CITY OF ENCINITAS City of Encinitas - YTD Report 505 S. VULCAN Realized Gains and Losses ENCINITAS, ENCINITAS, (760)633 -2626 41 1 Sorted By Investment Type Sales /Calls /Maturities: July 1, 2019 - June 30, 2020 Investment # Par Value Sale Date Days Held Inv. Purchase 06/29/2018 245,000.00 07/29/2019 Maturity /Sale Realized Total Total Total Issuer Type Date Current Rate Maturity Date Term Book Value Proceeds Gain /Loss Earnings Net Earnings Yield 365 Certificates of Deposit - Bank 1525 NCB 06/20/2017 245,000.00 10/28/2019 860 1478 BCD 10/17/2014 248,000.00 10/17/2019 1,826 248,000.00 248,000.00 0.00 24,813.58 24,813.58 2.000 Synchrony Bank 2.000 10/17/2019 1,826 1586 NCB 03/28/2019 249,000.00 1487 BCD 12/10/2014 248,000.00 12/10/2019 1,826 248,000.00 248,000.00 0.00 27,294.94 27,294.94 2.200 CIT Bank 03/28/2024 2.200 12/10/2019 1,826 1587 NCB 1527 BCD 06/22/2017 245,000.00 06/22/2020 1,096 245,000.00 245,000.00 0.00 13,977.76 13,977.76 1.900 Ally Bank 1.900 06/22/2020 1,096 1,827 1532 BCD 06/28/2017 245,000.00 06/29/2020 1,097 245,000.00 245,000.00 0.00 12,517.85 12,517.85 1.700 Marathon Savings Bank 2.635 1.700 06/29/2020 1,097 1529 BCD 06/30/2017 245,000.00 06/30/2020 1,096 245,000.00 245,000.00 0.00 12,506.44 12,506.44 1.700 Chippewa Valley Bank 83,393.34 1.700 06/30/2020 1,096 0.875 07/31/2019 1,281 Certificates of Deposit - Bank Subtotals 1,231,000.00 1,231,000.00 0.00 91,110.57 91,110.57 1.901 Negotiable CDs 1581 NCB 06/29/2018 245,000.00 07/29/2019 395 245,000.00 245,000.00 0.00 8,616.96 8,616.96 3.250 Texas Exchange Bank 3.250 06/29/2023 1,826 1525 NCB 06/20/2017 245,000.00 10/28/2019 860 245,000.00 244,632.50 - 367.50 10,102.01 9,734.51 1.686 Comenity Capital Bank 1.750 06/19/2020 1,095 1586 NCB 03/28/2019 249,000.00 01/28/2020 306 249,000.00 249,000.00 0.00 5,845.00 5,845.00 2.800 MARLIN BUSINESS BANK 2.800 03/28/2024 1,827 1587 NCB 03/29/2019 249,000.00 01/29/2020 306 249,000.00 249,000.00 0.00 5,845.00 5,845.00 2.800 FORTIS PRIVATE BANK 2.800 03/29/2024 1,827 Negotiable CDs Subtotals 988,000.00 987,632.50 - 367.50 30,408.97 30,041.47 2.635 U.S. Treasury Coupon Securities 1510 TRC 01/27/2016 2,000,000.00 07/31/2019 1,281 2,000,000.00 2,000,000.00 0.00 83,393.34 83,393.34 1.188 U.S. Treasury Notes 0.875 07/31/2019 1,281 1577 TRC 06/26/2018 2,000,000.00 07/31/2019 400 2,000,000.00 2,000,000.00 0.00 51,579.77 51,579.77 2.353 U.S. Treasury Notes 1.625 07/31/2019 400 1515 TRC 06/01/2016 2,000,000.00 08/31/2019 1,186 2,000,000.00 2,000,000.00 0.00 67,601.90 67,601.90 1.040 U.S. Treasury Notes 1.000 08/31/2019 1,186 1516 TRC 06/01/2016 2,000,000.00 10/31/2019 1,247 2,000,000.00 2,000,000.00 0.00 73,372.96 73,372.96 1.074 U.S. Treasury Notes 1.250 10/31/2019 1,247 1517 TRC 06/01/2016 2,000,000.00 02/29/2020 1,368 2,000,000.00 2,000,000.00 0.00 87,425.27 87,425.27 1.166 U.S. Treasury Notes 1.375 02/29/2020 1,368 1518 TRC 06/01/2016 2,000,000.00 03/31/2020 1,399 2,000,000.00 2,000,000.00 0.00 90,185.28 90,185.28 1.176 U.S. Treasury Notes 1.375 03/31/2020 1,399 U.S. Treasury Coupon Securities Subtotals 12,000,000.00 12,000,000.00 0.00 453,558.52 453,558.52 1.333 Portfolio FY20 AC Run Date: 09 /13/2020 21J!2 0 -10 -14 Item #08D Page 47 o R PGR1)7.6.1 7 er.7.3.6.1 City of Encinitas - YTD Report Realized Gains and Losses Sales /Calls /Maturities: July 1, 2019 - June 30, 2020 Page 2 Investment # Par Value Sale Date Days Held Inv. Purchase Maturity /Sale Realized Total Total Total Issuer Type Date Current Rate Maturity Date Term Book Value Proceeds Gain /Loss Earnings Net Earnings Yield 365 Federal Agency Coupon Securities 1559 FAC 02/23/2018 2,000,000.00 07/19/2019 511 2,000,000.00 2,000,000.00 0.00 59,997.22 59,997.22 2.143 Federal Home Loan Mortgage 0.875 07/19/2019 511 1506 FAC 06/26/2015 2,000,000.00 09/12/2019 1,539 2,000,000.00 2,000,000.00 0.00 134,828.89 134,828.89 1.599 Federal Nat'l Mortgage Assoc. 1.750 09/12/2019 1,539 1507 FAC 06/26/2015 2,000,000.00 11/26/2019 1,614 2,000,000.00 2,000,000.00 0.00 145,683.33 145,683.33 1.647 Federal Nat'l Mortgage Assoc. 1.750 11/26/2019 1,614 1512 FAC 04/19/2016 2,000,000.00 05/01/2020 1,473 2,000,000.00 2,000,000.00 0.00 92,006.67 92,006.67 1.140 Federal Home Loan Mortgage 1.375 05/01/2020 1,473 1513 FAC 04/19/2016 2,000,000.00 06/12/2020 1,515 2,000,000.00 2,000,000.00 0.00 102,718.78 102,718.78 1.237 Federal Home Loan Bank 1.750 06/12/2020 1,515 Federal Agency Coupon Securities Subtotals 10,000,000.00 10,000,000.00 0.00 535,234.89 535,234.89 1.553 Total Realized Gains /Losses 24,219,000.00 Run Date: 09/13/20202?6!20.7 0.14 Item #08D 24,218,632.50 - 367.50 1,110,312.95 1,109,945.45 1.506 Portfolio FY20 AC Page48 CeG GR1).1.1 Page dwpWer. 7.33.6.1 The City of Encinitas Cash and Investments by Fund FY 2019 -20 GENERALFUND INFRASTRUCTURE FUNDS Percentage of Total GRANTFUNDS 34,575,120 DEVELOPMENT IMPACT FUNDS 951,462 MUNICIPAL IMPROVEMENTS DISTRICTS 1.43% DEBT SERVICE FUNDS 1,409,291 CAPITAL IMPROVEMENTS FUNDS 32,238 CARDIFF SANITARY FUNDS 3.05% ENCINITAS SANITARY FUNDS 4,362,441 SAN DIEGUITO WATER DISTRICT FUNDS 70,183 OTHER PROPRIETARY FUNDS 0.00% INTERNAL SERVICE FUNDS 31,036,197 711 - CFD #1 DEBT SERVICE 0 712 - CFD #1 ADMINISTRATION 10.15% 931:932 - ERGA 13,978,968 119 - OPPORTUNITY FUND 231,097 RESTRICTED 15.17% ADMIN COSTS BANK FEES 345,612 TOTAL PER GENERAL LEDGER 6,700 To reconcile from GL to Investment Report: 5.20% Not included in Market Value per Investment Report - Book Bal Checking Not included in Market Value per Investment Report - Register Cash Not included in Market Value per Investment Report - Restricted Cash Included in Investment Report not in GL - ERGA Total Market Value per Investment Report 20,437 Cash - Checking Account Bank Balance 0.29% Total Cash and Investments 2,043,361 CASH AND INVESTMENTS FY 2020 Actual Percentage of Total Interest Income 34,575,120 24.81% 951,462 1,990,121 1.43% 64,813 1,409,291 1.01% 32,238 4,251,087 3.05% 252,981 4,362,441 3.13% 70,183 - 0.00% 0 31,036,197 22.26% 0 14,146,534 10.15% 223,904 13,978,968 10.03% 231,097 21,143,272 15.17% 351,289 345,612 0.25% 6,700 7,250,572 5.20% 0 2,418,826 1.74% 24,470 24,654 0.02% 118 20,437 410,000 0.29% 2,043,361 1.46% 205,815 139,386,056 100.00% 2,435,507 (3,191,710) (3,655) (2,043,361) 1,367,911 135,515,241 3,753,480 139,268,721 2020 -10 -14 Item #08D Page 49 of 82 Attachment 2 CITY OF ENCINITAS INVESTMENT OF BOND PROCEEDS For the Fiscal Year ended June 30, 2020 GOVERNMENTAL FUNDS TRUSTEE CASH & INVESTMENTS Yield Maturity Date Market Value FY 2019 -2020 Income Budget ENCINITAS PUBLIC FINANCING AUTHORITY 2013 LEASE REVENUE BONDS (COMM PARK DEVELOPMENT) Band Fund Blackrock Money Market Fund 0.121% $ 17 $ 197 2014 ENCINITAS PUBLIC FINANCING AUTHORITY 2014 A & B LEASE REVENUE BONDS (PACIFIC VIEW PROPERTY & MOONLIGHT BEACH LIFEGUARD TOWER) Band Fund Blackrock Money Market Fund $ 17 $ 197 $ 0.111% $ 55 $ 364 2015 LEASE REVENUE BONDS (PUBLIC LIBRARY) Band Fund Blackrock T -Fund Money Market Fund Interest Account 2017 LEASE REVENUE BONDS (PARK) Band Fund Blackrock Liquidity Funds Fedfund ENCINITAS PUBLIC FINANCING AUTHORITY TOTALS A $ 55 $ 364 $ 0.101% $ 51 $ 513 $ $ 51 $ 513 $ 0.001% $ 34 $ 100 $ 34 $ 100 Is 157 1 $ 1,174 $ TOTALS FOR GOVERNMENTAL FUNDS (A) $ 157 $ 1,174 $ ENTERPRISE FUNDS TRUSTEE CASH & INVESTMENTS Yield Maturity Date Market Value FY 2019 -2020 Income Budget SAN DIEGUITO WATER DISTRICT 2007 WATER REVENUE BONDS Band Fund JP MORGAN US TRSY PILUS PREM Interest Account JP MORGAN US TRSY PILUS PREM Reserve Fund -SDWD BLACKROCK FEDERAL FD INSTL 30 0.001% 0.001% 0.101% $ 2,430 1 640,158 $ 479 1 9,544 2014 WATER REVENUE BONDS Debt Service Fund Blackrock Institutional Funds T -Fund TOTAL $ 642,589 $ 10,024 $ - 0.211% $ 5 $ 408 TOTAL TOTALS FOR ENTERPRISE FUNDS (B) $ 5 $ 408 $ - $ 642,594 $ 10,432 $ TOTAL TRUSTEE CASH & INVESTMENTS A + B $ 642,751 1 1 $ 11,606 $ NOTE: The City's leases for capital equipment do not require any trustee deposits, and thus, are not listed on this summary. 2020 -10 -14 Item #080 Page 50 of 82 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.' entem " ^r 49 20490ctober 14,202 1. Philosophy The Investment Policy of the Encinitas City Council for the City of Encinitas represents the financial guidelines for the City's Investment Program. It is the policy of the City of Encinitas to invest excess public funds in a prudent manner that safeguards the public trust, minimizes the risk of loss of capital, and provides assurance that all financial obligations will be met in the regular course of business. The City Council shall provide direction to the City Treasurer as to the goals and specific objectives of the Investment Program. 11. Scope This Investment Policy applies to all financial assets under the oversight of the City of Encinitas, except bond proceeds held by outside trustees and funds held by other governmental agencies. The City of Encinitas includes the City and all component units: the Encinitas Housing Authority (EHA), the Encinitas Public Financing Authority (EPFA), and the San Dieguito Water District (SDWD). These funds are accounted for in the City of Encinitas' Comprehensive Annual Financial Report and include: GENERALFUND SPECIAL REVENUE FUNDS CAPITAL PROJECT FUNDS ENTERPRISE FUNDS INTERNAL SERVICE FUNDS This policy also applies to funds that the City manages for other governmental agencies. Currently, the City manages funds for the Encinitas Ranch Golf Authority (ERGA), a legally separate joint powers authority which is not a component unit of the City. The investment of Bond Proceeds held with trustees is directed by the City, but is governed by the restrictions on Permitted Investments in the applicable Bond Indenture agreements. A portion of City funds is held by other governmental agencies. These funds are invested under the guidelines of the investment policies of those agencies. The City retirement plan is with CALPERS, and the City has no authority or oversight over the investments in any of those plans. Further, the City administers several deferred compensation plans. 2020 -10 -14 Item #080 Page 51 of 82 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. III. Prudence Investments shall be made with reasonable financial judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the `prudent investor" standard. California Gov't Code 53600.3 states that, "When investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. The standard shall be applied in the context of managing an overall portfolio. Investment officials acting in accordance with established procedures and exercising due prudence shall be relieved of personal responsibility for an individual security's credit risk or market price changes. IV. Investment Objectives A. 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. Li uid' - 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 Director of Finance shall serve as City Treasurer. The 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. 2020 -10 -14 Item #080 Page 52 of 82 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 qualfed 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, 2020 -10 -14 Item #080 Page 53 of 82 (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 16429.1, 27133 and 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) Repurchase agreements INVESTMENT ALLOCATIONS 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 perlocal 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 2020 -10 -14 Item #080 Page 54 of 82 STATE LAW INV POLICY 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 GovY 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 (Tota9 20% 20% Per Issuer 10% 10 (A) Money Market Mutual Funds N/A 20% Perlssuer 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% Perlssuer 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% Perlssuer 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 five Re years. 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. 2020 -10 -14 Item #080 Page 55 of 82 INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM (6) Negotiable Certificates of Deposit 30% 10% Per Issuer 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) Aa 1 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% Perlssuer (see below 5% Commercial Paper (CP) is a short -term 1. 0. U. issued by large corporations of high credit standing which is unsecured. Investments are limited to only `prime quality" CP issued with the highest letter and number rating provided by one of the two nationally recognized rating agencies. City limits itself only to CP rated A -1 or better by Standard & Poors and P -1 by Moodys. Issuing corporations must be (1) organized and operating within the United States, (2) have total assets in excess of $500 million, and (3) have a `A "or higher rating for the issuers other debt obligations. Organized and operating within the United States includes global companies that sponsor United States commercial paper programs. City may not purchase more than 5% of outstanding commercial paper of any single corporate issuer. The maximum allowable maturity is 270 days or less. 2020 -10 -14 Item #080 Page 56 of 82 INVESTMENT ALLOCATIONS 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. 2020 -10 -14 Item #080 Page 57 of 82 INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM (15) Asset-Backed Securities 20% 10 Per Issuer 5% 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 have a maximum remaining maturity of five years or less. 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. (16) Supranationals 30% 20% Per Issuer 1 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 150% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed five years. 2020 -10 -14 Item #080 Page 58 of 82 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) SUMMARY TABLE of INVESTMENT ALLOCATIONS STATE LAW REPURCHASE AGREEMENTS NO LIMIT CALIFORNIA LAIF NO LIMIT OTHER GOVT POOLS NO LIMIT Per Issuer MUTUAL FUNDS TOTAL Per Issuer (4 -A) Money Market Mutual Funds Per Issuer (4 -B) Mutual Funds Per Issuer CD's Per Issuer NEGOTIABLE CD's Per Issuer BANKERS ACCEPTANCES Per Issuer U.S. TREASURYS U.S. FEDERAL AGENCIES Per Issuer COMMERCIAL PAPER Per Issuer COMMERCIAL MTN NOTES Per Issuer 20% 10% N/A N/A N/A N/A NO LIMIT INV POLICY 20 30 30 10% 20% 30 40% 10% 30 NO LIMIT NO LIMIT 25 30 (12) GIC's NO LIMIT Per Issuer (13) Demand Deposits (non - interest bearing) NO LIMIT Per Issuer (14) Demand Deposits (interest bearing) NO LIMIT Per Issuer (15) Asset-Backed Securities 20% Per Issuer 5% (16) Supranationals 30% Per Issuer 1 10% 20 10% 10% 5% 10% 5% 10% 5% 5% 50 60% 25% 25 5% 15% 5% 10% 5% 0 -2% 0 -2% 20% 10% 10% 20% 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. 2020 -10 -14 Item #080 Page 59 of 82 (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, alcohol related products, or fossil fuel companies. 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, alcohol related products or fossil fuel companies 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, alcohol, or fossil fuel 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 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 2020 -10 -14 Item #080 Page 60 of 82 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 VIII. above for a listing of authorized investments and the maximum allocation by type of investment. Section VIII. also details specific limitations per issuer. For purposes of this Policy, those limits each apply to the overall portfolio. Xlll. Maximum Maturities To the extent possible, the City of Encinitas will attempt to match its investments with anticipated cash flow requirements, after taking into consideration interest rate (market) risk and the potential benefits of extending investment maturities. The City conforms to the California Gov't Code requirements limiting investments in notes to five (5) years, subject to the exceptions cited in Section VIII. This relates principally to funds classified as reserves, which may be invested in specified instruments with maturities greater than five (5) years. XIV. Internal Control The City Treasurer shall establish a system of internal controls over all cash management and investment transactions, designed to provide reasonable assurance that assets are safeguarded and that all transactions are properly and timely recorded. The City's independent auditor shall annually review the system of internal controls and report any deficiencies and /or suggestions for improvements to the Director of Finance /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: 2020 -10 -14 Item #080 Page 61 of 82 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 overtime shall be measured and reported to the City Council, at least quarterly, via the utilization of the following benchmark to measure performance. The one (J year constant maturity Treasury index Any change to the above performance benchmark shall be reported to the City Council during the City Treasurer's quarterly investment report. The City Treasurer shall report performance on a quarterly basis based on the book yield (standard income) approach. Book yield calculates the earnings on an investment based on actual interest earned during any reporting period, including the accretion of purchase discounts and /or the amortization of purchase premiums. The City Treasurer shall also report the estimated market value of investments held (as provided by a third -party data provider) with each periodic report. The City no longer reports investment income on a total return basis each fiscal year (the alternative method presented in Gov't Actg. Standards Board (GASB) Statement No. 31) as the results over time are roughly comparable. XVI. Investment Accounting and Reporting The City Treasurer shall prepare (or have prepared) monthly investment reports sufficient to properly track and record all investment transactions and activity. The City Treasurer shall report investment positions and results of the Pooled Investment Fund to the City Council at least quarterly, in a form acceptable to the City Council. These reports shall either be presented as an Agenda Report or as a memo report to the City Council members, at the discretion of the City Manager. The City Treasurer shall report positions and results of the Pooled Investment Fund and the Investment of Bond Proceeds annually to the City Council at a Public Meeting. Detailed annual reports of the Pooled Investment Fund shall be made available on the City's website for public review. XVII. Investment Policy Adoption: The Investment Policy shall be reviewed and adopted by the City Council at a Public Meeting at least annually, regardless of whether there are any proposed changes to the Policy. The Policy shall be posted for public review on the City's website (www.encinitasca.gov) under Departments/Finance. 2020 -10 -14 Item #080 Page 62 of 82 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 2020 -10 -14 Item #080 Page 63 of 82 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 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. " 2020 -10 -14 Item #080 Page 64 of 82 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." 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. 2020 -10 -14 Item #080 Page 65 of 82 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. 2020 -10 -14 Item #080 Page 66 of 82 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. October 14, 2020 /. 11 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. 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. 2020 -10 -14 Item #080 Page 67 of 82 III. Prudence Investments shall be made with reasonable financial judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the `prudent investor" standard. California Gov't Code 53600.3 states that, "When investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. The standard shall be applied in the context of managing an overall portfolio. Investment officials acting in accordance with established procedures and exercising due prudence shall be relieved of personal responsibility for an individual security's credit risk or market price changes. IV. Investment Objectives A. 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. Li uid' - 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 Director of Finance shall serve as City Treasurer. The 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. 2020 -10 -14 Item #080 Page 68 of 82 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 qualfed 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, 2020 -10 -14 Item #080 Page 69 of 82 (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 16429.1, 27133 and 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 STATE LAW INV POLICY MAXIMUM MAXIMUM Repurchase agreements NO LIMIT 20% This type of investment is only authorized in relation to the City's general banking arrangements, in which excess cash balances are "swept" into an interest earning account overnight. Maximum maturity is one 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 perlocal agency, not to the CA govt code restrictions. The City of Encinitas maintains two accounts with the LAIF, one in the name of the City and the other in the name of the San Dieguito Water District. Each account has a deposit limit of the maximum amount allowed by CA state law. Since San Dieguito Water District is a component 2020 -10 -14 Item #080 Page 70 of 82 INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM 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 GovY 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 (Tota9 20% 20% Per Issuer 10% 10 (A) Money Market Mutual Funds N/A 20% Perlssuer 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% Perlssuer 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% Perlssuer 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 five years. 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. 2020 -10 -14 Item #080 Page 71 of 82 INVESTMENT ALLOCATIONS 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) Aa 1 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% Perlssuer 30% (8) (9) 10% 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. U. S. Treasury Bills, Notes and Bonds U.S. Government-Sponsored Agencies Per Issuer NO LIMIT 50% NO LIMIT 60% 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% Per Issuer (see below 25% 5% Commercial Paper (CP) is a short -term 1. 0. U. issued by large corporations of high credit standing which is unsecured. Investments are limited to only `prime quality" CP issued with the highest letter and number rating provided by one of the two nationally recognized rating agencies. City limits itself only to CP rated A -1 or better by Standard & Poors and P -1 by Moodys. Issuing corporations must be (1) organized and operating within the United States, (2) have total assets in excess of $500 million, and (3) have a `A "or higher rating for the issuers other debt obligations. Organized and operating within the United States includes global companies that sponsor United States commercial paper programs. City may not purchase more than 5% of outstanding commercial paper of any single corporate issuer. The maximum allowable maturity is 270 days or less. 2020 -10 -14 Item #080 Page 72 of 82 INVESTMENT ALLOCATIONS 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. 2020 -10 -14 Item #080 Page 73 of 82 INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM (15) Asset-Backed Securities 20% 10 Per Issuer 5% 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 have a maximum remaining maturity of five years or less. 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. (16) Supranationals 30% 20% Per Issuer 15% 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 15% of the portfolio may be invested in any single issuer. The maximum maturity does not exceed five years. 2020 -10 -14 Item #080 Page 74 of 82 SUMMARY TABLE of INVESTMENT ALLOCATIONS 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. 2020 -10 -14 Item #080 Page 75 of 82 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 -B) 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 40% 10 Per Issuer 30% 5% (8) U.S. TREASURYS NO LIMIT 50% (9) U.S. FEDERAL AGENCIES NO LIMIT 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 15% 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. 2020 -10 -14 Item #080 Page 75 of 82 (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, alcohol related products, or fossil fuel companies. 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, alcohol related products or fossil fuel companies 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, alcohol, or fossil fuel 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 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 2020 -10 -14 Item #080 Page 76 of 82 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 VIII. above for a listing of authorized investments and the maximum allocation by type of investment. Section VIII. also details specific limitations per issuer. For purposes of this Policy, those limits each apply to the overall portfolio. Xlll. Maximum Maturities To the extent possible, the City of Encinitas will attempt to match its investments with anticipated cash flow requirements, after taking into consideration interest rate (market) risk and the potential benefits of extending investment maturities. The City conforms to the California Gov't Code requirements limiting investments in notes to five (5) years, subject to the exceptions cited in Section VIII. This relates principally to funds classified as reserves, which may be invested in specified instruments with maturities greater than five (5) years. XIV. Internal Control The City Treasurer shall establish a system of internal controls over all cash management and investment transactions, designed to provide reasonable assurance that assets are safeguarded and that all transactions are properly and timely recorded. The City's independent auditor shall annually review the system of internal controls and report any deficiencies and /or suggestions for improvements to the Director of Finance /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. 2020 -10 -14 Item #080 Page 77 of 82 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 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 overtime shall be measured and reported to the City Council, at least quarterly, via the utilization of the following benchmark to measure performance. The one (J year constant maturity Treasury index Any change to the above performance benchmark shall be reported to the City Council during the City Treasurer's quarterly investment report. The City Treasurer shall report performance on a quarterly basis based on the book yield (standard income) approach. Book yield calculates the earnings on an investment based on actual interest earned during any reporting period, including the accretion of purchase discounts and /or the amortization of purchase premiums. The City Treasurer shall also report the estimated market value of investments held (as provided by a third -party data provider) with each periodic report. The City no longer reports investment income on a total return basis each fiscal year (the alternative method presented in Gov't Actg. Standards Board (GASB) Statement No. 31) as the results over time are roughly comparable. XVI. Investment Accounting and Reporting The City Treasurer shall prepare (or have prepared) monthly investment reports sufficient to properly track and record all investment transactions and activity. The City Treasurer shall report investment positions and results of the Pooled Investment Fund to the City Council at least quarterly, in a form acceptable to the City Council. These reports shall either be presented as an Agenda Report or as a memo report to the City Council members, at the discretion of the City Manager. The City Treasurer shall report positions and results of the Pooled Investment Fund and the Investment of Bond Proceeds annually to the City Council at a Public Meeting. Detailed annual reports of the Pooled Investment Fund shall be made available on the City's website for public review. XVII. Investment Policy Adoption: The Investment Policy shall be reviewed and adopted by the City Council at a Public Meeting at least annually, regardless of whether there are any proposed changes to the Policy. The Policy shall be posted for public review on the City's website (www.encinitasca.gov) under Departments/Finance. 2020 -10 -14 Item #080 Page 78 of 82 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 2020 -10 -14 Item #080 Page 79 of 82 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 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. " 2020 -10 -14 Item #080 Page 80 of 82 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." 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. 2020 -10 -14 Item #080 Page 81 of 82 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. 2020 -10 -14 Item #080 Page 82 of 82