2021-10-20 Item 08C Annual Investment Report and Investment Policy
MEETING DATE: October 20, 2021
PREPARED BY: Teresa S. McBroome
Director of Finance/City
Treasurer
DEPT. DIRECTOR: Teresa S. McBroome
DEPARTMENT: Finance CITY MANAGER: Pamela W. Antil
SUBJECT:
Treasurer’s Annual Report for the Fiscal Year Ended June 30, 2021 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, 2021; and
2. Adopt Resolution No. 2021-103 titled “A Resolution of the City Council of the City of
Encinitas Approving the Statement of Investment Policy for the Fiscal Year 2021-2022,
and Delegating the Authority to Invest City Funds to the Treasurer (Attachment 1).
STRATEGIC PLAN:
This agenda item falls within the Organizational Efficiency and Effectiveness focus area of the
Strategic Plan by maintaining the City’s financial health.
FISCAL CONSIDERATIONS:
There is no direct fiscal impact associated with this report. Investment earnings in the pooled
investment fund for FY 2020-21 were $1,768,569, of which $628,275 were allocated to the
General Fund. Investment earnings exceeded the budgeted amount of $1,335,254 by $433,315
or by $367,275, 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 2020-21 (Attachment 2)
Summary report for the investment of bond proceeds (Attachment 3)
Investment Policy Redlined (Attachment 4)
Investment Policy (Attachment 1; Exhibit A)
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ANALYSIS:
Pooled Investment Fund Report
The Annual Investment Report for the Pooled Investment Fund (Attachment 2) 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, 2021, the book value (purchase price of securities as recorded on the City’s
books) of the Pooled Investment Fund was $134.9 million and the average weighted yield to
maturity was 1.19 percent. Fiscal year-to-date investment revenue generated by the Pooled
Investment Fund as of June 30, 2021, was $1,768,569 for an effective rate of return of 1.52
percent. The current market value of the City’s portfolio is $136,472,182, which results in an
unrealized gain of $1,560,517 or 1.16 percent, when compared to the book value or purchase
value of the City’s portfolio of $134,911,665. The following table compares the Pooled
Investment Fund statistics for the last four quarters.
FY 2020-21 June 30, 2021 March 31, 2021 Dec. 31, 2020 Sep. 30, 2020
Book Value 134,911,665$ 121,080,785$ 117,948,054$ 110,354,936$
Market Value 136,472,182$ 122,972,873$ 120,238,588$ 112,990,775$
Unrealized Gain/(Loss)1,560,517$ 1,892,088$ 2,290,534$ 2,635,839$
Unrealized Gain/Loss as % of Book Value 1.16%1.56%1.94%2.39%
Effective Rate of Return 1.52%1.58%1.67%1.69%
Average Yield To Maturity 1.19%1.35%1.54%1.65%
Average Maturity (Years)0.73 0.93 1.17 1.32
Investment Earnings Year to Date 1,768,569$ 1,356,959$ 936,738$ 499,841$
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.
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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 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.
The City’s investment portfolio complied with the City’s investment policy because it adhered to
the required allocations by investment type.
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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 50.1% percent available overnight and an additional 12
percent of securities available within 180 days. Best management practices recommend that
agencies have six months of cash needs of their portfolio liquid. The weighted average maturity
of the entire portfolio is 0.7 years. The City utilizes a laddered maturity investment strategy in
that as securities mature, new investments are directed to the 49–60-month segment to take
advantage of higher rates further out on the yield curve. Although the Treasury Indexes
continued to decline during Fiscal Year 2020-21, the City remained consistent with its use of this
laddered maturities investment strategy while also considering the City’s investments objectives.
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, 2021, is higher than the benchmark by 144 basis points.
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Investment of Bond Proceeds
The Annual Investment Report for the Investment of Bond Proceeds (Attachment 3) is subject to
minor changes in activity from year-to-year. Total bond proceeds held in trust accounts on June
30, 2021, were $639,576. Earnings on the bond trust accounts were $344 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 0.03 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, 2021 were for the 2007 Water Revenue Bonds reserve funds
($639,559).
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 2020.
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 4, and with the
redlined changes incorporated into the investment policy in Attachment 1 (Exhibit A).
Summary of Changes to Investment Policy
Investment Policy Section Description of Change Comments
Section VIII. (5) Certificates of
Deposit (CDs)
Change Investment Policy
Maximum from 10% to 30%
To allow more flexibility to invest in
CDs while maintaining investment
objectives.
Section VIII.(6) Negotiable
Certificates of Deposit (CDs)
Change Investment Policy
Maximum from 10% to 30%
To allow more flexibility to invest in
CDs while maintaining investment
objectives.
Section VIII.(10) Commercial
Paper
Update Commercial Paper
language to clarify permitted
securities and revised State
Law Maximum to 40% and
State Law Maximum Per
Issuer to 10%. Added
additional explanation of new
changes.
Per California Code Section
53601(h) and SB 998
Section VIII.(11) Commercial
Medium-Term Notes
Add State Law Maximum per
Issuer of 10%
Per California Code Section
53601(k) and SB 998
Section VIII. Authorized and
Suitable Investment Instruments
Add language to reflect new
environmental considerations.
To support objectives in Resolution
2021-67.
Section VIII. Authorized and
Suitable Investment Instruments
Add language to temporarily
allow for investments in
securities issued by, or
backed by, the United States
Government that could result
in zero- or negative -interest
accrual if held to maturity, in
the event of, and for the
duration of a period of
negative market interest
rates.
Per California Code Section
53601.6(b)(2) and SB 998. Remains
in effect January 1, 2021 until
January 1, 2026.
Section XVI. Investment
Accounting and Reporting
Add language to reflect new
environmental considerations.
This change adds new reporting
requirements based on supporting
actions in Resolution 2021-67.
2021-10-20 Item #08C Page 5 of 85
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.
Some of the recommended changes to the Investment Policy are related to the Climate Action
Plan.
ATTACHMENTS:
1. Resolution
No. 2021-103 titled “A Resolution of the City Council of the City of Encinitas
Approving the Statement of Investment Policy for the Fiscal Year 2021-22, and
Delegating the Authority to Invest City Funds to the Treasurer
2. Annual Investment Report for the Pooled Investment Fund, June 30, 2021
3. Annual Investment Report for the Investment of Bond Proceeds, June 30, 2021
4. City of Encinitas Investment Policy (F019), amended October 20, 2021, Redlined
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Attachment 1
RESOLUTION 2021-103
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS APPROVING THE
STATEMENT OF INVESTMENT POLICY FOR THE FISCAL YEAR 2021-2022, AND
DELEGATING THE AUTHORITY TO INVEST CITY FUNDS TO THE TREASURER
WHEREAS, Section 53646 of the Government Code provides for the Treasurer of a local
agency to present to the legislative body a statement of the agency’s investment policy and any
changes to the policy for consideration at a public meeting; and
WHEREAS, the City Council of the City of Encinitas (“City”) last considered and approved
the City’s Investment Policy (“Policy”) on October 14, 2020; and
WHEREAS it is good practice for the City Council to review the Statement of Investment
Policy to ensure its consistency with the overall objectives of preservation of principal, liquidity
and return, and its relevance to current laws and financial and economic trends; and
WHEREAS, since the Policy was last approved by the City Council, Senate Bill (SB) 998
went into effect on January 1, 2021, and implemented changes to local government investments;
and
WHEREAS, the City Treasurer has reviewed the Policy, together with SB 998, and
recommends that certain provisions of the Policy be modified consistent with SB 998; and
WHEREAS, Section 53601 of the Government Code authorizes the City Council to invest
City funds, and Section 53607 of the Government Code further authorizes the City Council to
delegate said authority to the City Treasurer; and
WHEREAS, the City Council desires to delegate its authority to invest City funds to the
City Treasurer.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Encinitas:
1. That the above recitals are true and correct.
2. That the Investment Policy for Fiscal Year 2021-2022, as contained in Exhibit A to this
resolution is hereby approved.
3. That the City Council of the City of Encinitas does hereby authorize the Treasurer to
invest City funds.
PASSED, APPROVED AND ADOPTED this 20th day of October, 2021 by the City Council
of the City of Encinitas, State of California.
______________________________
Catherine S. Blakespear, Mayor
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ATTEST:
______________________________
Kathy Hollywood, City Clerk
APPROVED AS TO FORM:
_____________________________
Leslie E. Devaney, City Attorney
CERTIFICATION: I, Kathy Hollywood, City Clerk of the City of Encinitas, California, do hereby
certify under penalty of perjury that the foregoing Resolution was duly adopted at a regular
meeting of the City Council on the 20th day of October, 2021 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Kathy Hollywood, City Clerk
2021-10-20 Item #08C Page 8 of 85
Exhibit A
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 20, 2021
I. 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.
II. 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:
GENERAL FUND
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.
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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. Liquidity - The second objective is the maintenance of sufficient liquidity to meet all operating
and capital spending requirements that can be reasonably anticipated.
C. Return on investments - The third objective is yield, specifically, attaining a market rate of
return over time, consistent with Council direction as to acceptable levels of risk. Refer to Section XV
below for further discussion of performance measurement.
V. Delegation of Authority
In accordance with the California Government Code, Section 53607, the City Council hereby
delegates the authority to invest or reinvest the City’s funds, to sell or exchange securities purchased,
and to deposit securities for safekeeping to the City Treasurer. Encinitas Municipal Code Chapter
2.28 designates that the 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.
2021-10-20 Item #08C Page 10 of 85
VI. Ethics, & Conflict of Interest
The investment responsibility carries with it the responsibility of ensuring that investments placed are
done so without improper influence or the appearance of improper influence. All officers and
employees (officials) involved in the investment function shall adhere to the State's Code of Economic
Interest and to the following:
Officials shall refrain from personal business activity that could conflict with proper and impartial
execution of the Investment Program, or that could impair their ability to make impartial investment
decisions. Further, officials shall not personally or through a close relative maintain any accounts,
interest, or private dealings with any firm with which the City places investments, with the exception
of regular savings, checking and money market accounts, or other similar transactions that are offered
on a non-negotiable basis to the general public. Any such relationships shall be disclosed annually
to the City Clerk in conjunction with annual disclosure statements of economic interest.
VII. Authorized Financial Dealers and Institutions
The City Treasurer shall maintain a list of qualified financial institutions authorized to provide financial
or investment services to the City.
The City shall contract with one institution to provide general banking services, which shall be
reviewed at least every five years. City Council shall approve the selected institution and the
contract for banking services.
The City shall contract with one institution to provide investment custody services, which shall be
reviewed at least every five (5) years. City Council shall approve the selected institution and the
contract for custody services.
The City Treasurer shall maintain a list of qualified security broker-dealers authorized to provide
financial or investment services to the City. To be eligible for consideration to become an authorized
provider, each Broker/Firm shall meet the following MINIMUM requirements:
(1) have a net capital position in excess of $10 million,
(2) have been in business for at least five years,
(3) are currently licensed as a broker-dealer or investment adviser in California, and
(4) Must carry adequate insurance coverage including liability, errors and omissions, and
workers compensation (if applicable.)
Firms providing only representation of money market funds are exempt for requirement #1, but must
still comply with all other requirements, including those listed below.
The City Council shall approve the initial authorization of any broker-dealer. Authorized firms shall
be notified by the City Treasurer via an engagement letter, which outlines each parties’ responsibilities
(primarily the continuing compliance requirements discussed directly below). There is no contract for
professional services or term to the engagement. The City Treasurer shall periodically evaluate the
performance of all qualified broker-dealers, and determine if any changes need to be made.
All broker-dealers authorized to do business with the City of Encinitas must also comply with the
following requirements.
(1) Firms must submit audited financial statements annually, within six months of their fiscal
year-end,
(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,
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(3) Firms must provide proof of their registration/license to do business in the State of California,
and shall immediately disclose to the City any change in that status.
(4) Firms must certify in writing that they have received, read, and agree to comply with the City
of Encinitas’ most recently adopted Investment Policy.
VIII. 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 VIII.
INVESTMENT ALLOCATIONS - The State Law Maximum allocations listed below refer to the
percentage of the total portfolio or dollar amount that may be invested in each instrument under the
provisions of the Gov’t Code. The Investment Policy Maximum allocations refer to maximum
allocations the City Treasurer follows, in order to effect proper diversification of the portfolio and
limit concentration risk. The City Treasurer is permitted to exceed these maximum allocations for
temporary periods. Any asset allocation that exceeds the Investment Policy Maximum allocation
for a period of more than three months shall be reported to the City Manager.
For purposes of calculating the percentage allocations, the assumption will be applied that the size
of the portfolio for any fiscal year shall be determined by the total par value of the portfolio at the
beginning of the first day of the fiscal year. Any investment types that exceed the maximum
allowable under the Gov’t Code shall be reported to the City Council in the quarterly investment
report.
INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
MAXIMUM MAXIMUM
(1) Repurchase agreements NO LIMIT 20%
This type of investment is only authorized in relation to the City’s general banking
arrangements, in which excess cash balances are “swept” into an interest earning
account overnight. Maximum maturity is one year. All balances are required to be
properly collateralized at 102% of par value in accordance with State requirements.
(2) CA Local Agency Inv Fund (LAIF) STATE LAW MAXIMUM 30%
The “STATE LAW MAXIMUM” refers to the LAIF limit on maximum deposits per local
agency, not to the CA gov’t code restrictions. The City of Encinitas maintains two
accounts with the LAIF, one in the name of the City and the other in the name of the
San Dieguito Water District. Each account has a
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INVESTMENT ALLOCATIONS
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 Gov’t Managed Pools NO LIMIT 30%
Per Issuer 10% per Pool
Investments in individual pools shall be limited to 10% of the total portfolio. Currently
approved pools are the San Diego County Investment Pool and the California Asset
Management Program (CAMP). The City Council must approve the addition of any
other governmental pools.
(4) Mutual Funds and Money Market Mutual Funds (Total)
20% 20%
Per Issuer 10% 10%
(A) Money Market Mutual Funds N/A 20%
Per Issuer N/A 10%
Qualifying funds must meet one of the following criteria: (1) Attained the highest
ranking or the highest letter and numerical rating provided by not less than two
nationally recognized statistical rating organizations, OR (2) Retained an Investment
Advisor registered or exempt from registration with the SEC with not less than five
years’ experience managing money market mutual funds with assets under
management in excess of $500 million.
(B) Mutual Funds N/A 10%
Per Issuer N/A 5%
A mutual fund must receive the highest ranking by not less than two nationally
recognized rating agencies or the fund must retain an investment advisor who is
registered with the SEC (or exempt from registration), has assets under
management in excess of $500 million, and has at least five years experience
investing in instruments authorized by California Government Code sections 53601
and 53635.
(5) Certificates of Deposit (CD’s) NO LIMIT 30%
Per Issuer NO LIMIT 5%
All CD’s must be either insured by the FDIC or properly collateralized, pursuant to
Section X below. Maturity shall not exceed 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.
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INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
MAXIMUM MAXIMUM
(6) Negotiable Certificates of Deposit 30% 30%
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) Aa1 by Moody’s and AA+ by Standard & Poor’s.
Investments of $250,000 or less that are fully insured by the FDIC are exempt from
the above credit rating requirements. Maturity shall not exceed five years. No more
than 5% of the total account value per issuer.
(7) Bankers Acceptances 40% 10%
Per Issuer 30% 5%
Bankers Acceptances (BA’s) represent a time draft drawn on and accepted by a
Bank for payment of the shipment or storage of merchandise. They are generally
considered a very safe investment since both the credit of the issuer and the Bank
is pledged for repayment. They must not exceed 180 days maturity. BA’s must have
an underlying credit rating of A1/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 40% 25%
Per Issuer 10% 5%
Commercial Paper (CP) is a short-term I.O.U. issued by large corporations of high
credit standing which is unsecured. Investments are limited to only “prime quality”
CP issued with the highest letter and number rating provided by one of the two
nationally recognized rating agencies. City limits itself only to CP rated A-1 or better
by Standard & Poors and P-1 by Moodys. Issuing corporations must be organized
and operating within the United States, have assets in excess of $500 million, and
debt other than commercial paper must be in a rating category of “A” or its equivalent
or higher by a nationally recognized statistical rating organization or the issuing
corporation must be organized within the U.S. as a special purpose corporation,
trust, or LLC, have program wide credit enhancements, and have commercial paper
that is rated “A-1” or higher or the equivalent, by a nationally recognized statistical
rating agency. City may not purchase more
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INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
MAXIMUM MAXIMUM
than 5% of outstanding commercial paper of any single corporate issuer. The
maximum allowable maturity is 270 days or less.
Per California Code Section 53601(h) beginning January 1, 2021, until January 1,
2026, portfolio limitation maximums are 40% and revert back to 25% after January
1, 2026. The 10% single issue limitation for commercial paper and medium term
notes will remain in effect.
(11) Commercial Medium-Term Notes 30% 15%
Per Issuer 10% 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
2021-10-20 Item #08C Page 15 of 85
INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
MAXIMUM MAXIMUM
agreement with the financial institution, and must be fully collateralized as Public
Deposits under California law. In addition, some part of the deposit (currently
$250,000) may be insured by the Federal Deposit Insurance Corporation (FDIC) in
lieu of collateralization.
(15) Asset-Backed Securities 20% 10%
Per Issuer 5%
These securities consist of Traditional Asset-Backed, Mortgage-Backed, Mortgage
Pass-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.
2021-10-20 Item #08C Page 16 of 85
SUMMARY TABLE of INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
(1) REPURCHASE AGREEMENTS NO LIMIT 20%
(2) CALIFORNIA LAIF NO LIMIT 30%
(3) OTHER GOV’T 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 30%
Per Issuer 5%
(6) NEGOTIABLE CD’s 30% 30%
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 40% 25%
Per Issuer 10% 5%
(11) COMMERCIAL MTN NOTES 30% 15%
Per Issuer 10% 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.
(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,
2021-10-20 Item #08C Page 17 of 85
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. Furthermore, Encinitas’
City Council directs the City Treasurer to annually, if not more often, petition the managers of the
pooled funds the City is invested in to divest from 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.
California SB 998 added Government Code Section 53601.6(b)2), which allows a local agency to
invest in securities issued by, or backed by, the United States government that could result in zero-
or negative-interest accrual if held to maturity, in the event of, and for the duration of a period of
negative market interest rates. This is applicable from January 1, 2021 until January 1, 2026.
IX. Due Diligence Requirements for Investment Pools, Mutual Funds, and CD’s
Investments of these types are authorized in Section VIII. above. Before investing any funds in pools
or mutual funds, the 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
2021-10-20 Item #08C Page 18 of 85
(3) Demand Deposits in accordance with CA law regarding Public Deposits
Collateral must be held by an independent third party with whom the entity has a current custodial
agreement. Collateral for overnight repurchases (sweep agreements) may be held by the Trust
Department of the institution providing such sweep services. Sweep contracts shall provide for a
perfected security interest for the City in collateralized securities.
Collateral shall be provided by the issuing institution in accordance and compliance with the California
Gov’t Code Sections 53630 et al. Issuing institution is responsible for compliance with all collateral
requirements, and must provide the City periodic evidence of that compliance, in a form acceptable
to the City.
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.
XIII. Maximum Maturities
To the extent possible, the City of Encinitas will attempt to match its investments with anticipated cash
flow requirements, after taking into consideration interest rate (market) risk and the potential benefits
of extending investment maturities. The City conforms to the California Gov’t Code requirements
limiting investments in notes to five (5) years, subject to the exceptions cited in Section 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.
2021-10-20 Item #08C Page 19 of 85
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 over time shall be measured and reported to the City Council, at least
quarterly, via the utilization of the following benchmark to measure performance.
The one (1) year constant maturity Treasury index
Any change to the above performance benchmark shall be reported to the City Council during the
City Treasurer’s quarterly investment report.
The City Treasurer shall report performance on a quarterly basis based on the book yield (standard
income) approach. Book yield calculates the earnings on an investment based on actual interest
earned during any reporting period, including the accretion of purchase discounts and/or the
amortization of purchase premiums. The City Treasurer shall also report the estimated market value
of investments held (as provided by a third-party data provider) with each periodic report. The City no
longer reports investment income on a total return basis each fiscal year (the alternative method
presented in Gov’t Actg. Standards Board (GASB) Statement No. 31) as the results over time are
roughly comparable.
XVI. Investment Accounting and Reporting
The City Treasurer shall prepare (or have prepared) monthly investment reports sufficient to properly
track and record all investment transactions and activity. The City Treasurer shall report investment
positions and results of the Pooled Investment Fund to the City Council at least quarterly, in a form
acceptable to the City Council. These reports shall either be presented as an Agenda Report or as a
memo report to the City Council members, at the discretion of the City Manager. The City Treasurer
shall report positions and results of the Pooled Investment Fund and the Investment of Bond
Proceeds annually to the City Council at a Public Meeting. Detailed annual reports of the Pooled
Investment Fund shall be made available on the City’s website for public review. The City shall
publicly report on the results of the annual petitions to the managers of the pooled funds the City is
invested in to define and divest from fossil fuel companies.
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.
2021-10-20 Item #08C Page 20 of 85
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
2021-10-20 Item #08C Page 21 of 85
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."
2021-10-20 Item #08C Page 22 of 85
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.
2021-10-20 Item #08C Page 23 of 85
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.
2021-10-20 Item #08C Page 24 of 85
City of Encinitas
Portfolio Management
June 30, 2021
CITY OF ENCINITAS
505 S. VULCAN
Encinitas, CA 92024
(760)633-2641
Portfolio Summary
% of
Portfolio
Book
ValueInvestmentsMarket
Value
Par
Value
YTM
Term
Days to
Maturity
Local Agency Investment Funds 37,934,591.21 29.21 10.26237,937,738.6437,934,591.21 1
Managed Pool Accounts 5,279,145.90 4.06 10.0585,284,117.705,279,145.90 1
Money Market Funds 19,380,189.54 14.92 10.03019,380,189.5419,380,189.54 1
Certificates of Deposit - Bank 12,877,000.00 9.92 1,7561.82313,278,165.6112,877,000.00 978
Negotiable CDs 498,000.00 0.38 1,6431.727518,051.97498,000.00 1,032
U.S. Treasury Coupon Securities 18,851,621.35 14.52 1,4892.40019,294,310.0019,000,000.00 404
Federal Agency Coupon Securities 35,052,968.74 26.99 1,4052.11335,741,460.0035,000,000.00 393
129,873,516.74 100.00%Investments 131,434,033.46129,968,926.65 1.189 776 266
Cash
(not included in yield calculations)
Passbook/Checking 5,038,148.62 10.0005,038,148.625,038,148.62 1
134,911,665.36Total Cash and Investments 136,472,182.08135,007,075.27 1.189 776 266
Current Year
June 30
133,572.58
Fiscal Year To Date
1,768,568.75 1,768,568.75
Fiscal Year Ending
Average Daily Balance
Effective Rate of Return
127,554,119.22 116,258,119.30
1.52%1.27%
Total Earnings Month Ending
I 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
Portfolio ENCI
AC
Reporting period 06/01/2021-06/30/2021
Run Date: 08/16/2021 - 14:15 PM (PRF_PM1) 7.3.0
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 25 of 85
S&P
Page 1
Par Value Book Value
Maturity
Date
Stated
RateMarket Value
June 30, 2021
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
City of Encinitas
Moody's
YTM
CUSIP Investment #
Purchase
Date
Local Agency Investment Funds
NRCA LAIF1012 37,934,591.21 37,934,591.21 0.26237,937,738.64 0.262SYS1012
37,934,591.21 0.26237,937,738.6437,934,591.2137,934,591.21Subtotal and Average
Managed Pool Accounts
AAACA Asset Management Program1003 1,070,729.90 1,070,729.90 0.0501,070,729.90 0.050SYS1003
AAASD County Investment Pool1584 4,208,416.00 4,208,416.00 0.0604,213,387.80 0.060SYS1584
5,279,145.90 0.0585,284,117.705,279,145.905,279,145.90Subtotal and Average
Money Market Funds
AAAUnion Bank Custody Acct.1004 19,380,189.54 19,380,189.54 0.03019,380,189.54 0.030SYS1004
19,380,189.54 0.03019,380,189.5419,380,189.5415,597,274.41Subtotal and Average
Certificates of Deposit - Bank
Citizens State Bankl1530 245,000.00 245,000.00 12/30/20211.90006/30/2017 247,266.25 1.90017670DAC8
NRCity National Bank Metropolis1551 245,000.00 245,000.00 02/03/20222.00007/03/2017 247,822.40 2.00017801GSB7 NR
Goldman Sachs Bank USA1528 245,000.00 245,000.00 06/21/20222.35006/21/2017 250,441.45 2.35038148PKX4 P-1
BankVista1533 245,000.00 245,000.00 06/30/20222.00006/30/2017 249,667.25 2.00006653ABM5
Wells Fargo Bank1535 245,000.00 245,000.00 06/30/20222.25006/30/2017 250,279.75 2.250949763JG2
NRCapital One NA1552 245,000.00 245,000.00 07/19/20222.30007/19/2017 250,666.85 2.30014042RGN5
Capital One Bank USA, NA1553 245,000.00 245,000.00 07/19/20222.30007/19/2017 250,666.85 2.3001404203Q1
NRTIAA FSB1554 245,000.00 245,000.00 07/19/20222.15007/19/2017 250,282.20 2.15087270LAD5 NR
Medallion Bank UT1561 249,000.00 249,000.00 03/28/20232.90003/28/2018 260,745.33 2.90058404DBL4
BMW Bank North America1562 246,000.00 246,000.00 03/29/20232.90003/29/2018 257,653.02 2.90005580AMB7
Citi Bank NA1563 246,000.00 246,000.00 03/29/20232.85003/29/2018 257,436.54 2.85017312QH69
Enerbank USA1568 246,000.00 246,000.00 03/29/20232.85003/29/2018 257,436.54 2.85029278TAU4
Industrial & Comm Bank China1564 249,000.00 249,000.00 03/29/20232.90003/29/2018 260,762.76 2.90045581EAS0
LCA Bank Corp1566 246,000.00 246,000.00 03/29/20232.80003/29/2018 257,222.52 2.800501798LT7
Morgan Stanley Bank1565 246,000.00 246,000.00 03/29/20232.90003/29/2018 257,653.02 2.90061747MR37
First Source Bank1569 246,000.00 246,000.00 04/11/20232.85004/11/2018 257,633.34 2.85033646CJP0
Denver Savings Bank1596 249,000.00 249,000.00 06/21/20232.25006/21/2019 258,952.53 2.250249398BT4
NRAmerican Express National Bank1580 245,000.00 245,000.00 06/26/20233.30006/26/2018 260,011.15 3.30002589AAM4 NR
NRSallie Mae Bank/Murray1570 245,000.00 245,000.00 06/27/20233.30006/27/2018 260,030.75 3.300795450S89 NR
NRComenity Capital Bank1571 245,000.00 245,000.00 06/29/20233.30006/29/2018 260,013.60 3.30020033AZK5 NR
ALMA BANK1619 249,000.00 249,000.00 09/29/20230.90003/30/2020 252,650.34 0.900020080BU0
FIRST SERVICE BANK1609 249,000.00 249,000.00 11/15/20231.70011/15/2019 257,503.35 1.70033640VDE5
Merrick Bank1597 249,000.00 249,000.00 12/28/20232.40006/28/2019 262,199.49 2.40059013KAR7
Portfolio ENCI
AC
Run Date: 08/16/2021 - 14:15 PM (PRF_PM2) 7.3.0
Report Ver. 7.3.6.12021-10-20 Item #08C Page 26 of 85
S&P
Page 2
Par Value Book Value
Maturity
Date
Stated
RateMarket Value
June 30, 2021
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
City of Encinitas
Moody's
YTM
CUSIP Investment #
Purchase
Date
Certificates of Deposit - Bank
BANK HAPOALIM BM NY1585 246,000.00 246,000.00 03/25/20242.90003/25/2019 263,532.42 2.90006251AW48
FORTUNE BANK ARNOLD1616 249,000.00 249,000.00 03/27/20241.00003/27/2020 253,835.58 1.00034969RCS5
NICOLET NATIONAL BANK1625 249,000.00 249,000.00 03/28/20241.15003/31/2020 254,861.46 1.150654062JR0
CORNHUSKER BANK1623 249,000.00 249,000.00 03/29/20241.10003/30/2020 254,525.31 1.100219255AK2
MORGAN STANLEY PRIVATE BANK1593 246,000.00 246,000.00 06/13/20242.60006/13/2019 262,614.84 2.60061760AG52
EAGLEBANK1594 249,000.00 249,000.00 06/20/20242.30006/20/2019 263,668.59 2.30027002YEQ5
COMMERCE BANK GENEVA MN1595 249,000.00 249,000.00 06/26/20242.30006/26/2019 263,740.80 2.300200056QRZ8
First State Bank Dequeen1598 249,000.00 249,000.00 06/28/20242.30006/28/2019 263,763.21 2.300336460CQ1
REVERE BANK1599 247,000.00 247,000.00 06/28/20242.30006/28/2019 261,676.74 2.300761400BY1
FLAGSTAR BANK FSB1626 249,000.00 249,000.00 09/30/20240.40009/30/2020 249,410.85 0.40033847E4E4
LEGENDS BANK1618 249,000.00 249,000.00 09/30/20241.00003/30/2020 254,241.45 1.00052465JHT7
PEOPLES BANK/SARDIS TN1624 249,000.00 249,000.00 09/30/20241.00003/31/2020 254,241.45 1.000710673AC8
POPPY BANK1611 249,000.00 249,000.00 11/04/20241.65011/04/2019 259,647.24 1.65073319FAD1
COMMUNITY BANK1610 249,000.00 249,000.00 11/08/20241.65011/08/2019 259,669.65 1.650203522AT4
ENTERPRISE BANK AND TRUST1607 249,000.00 249,000.00 11/08/20241.80011/08/2019 260,914.65 1.80029367SJQ8
PADUCAH BANK AND TRUST1613 249,000.00 249,000.00 11/08/20241.65011/08/2019 259,669.65 1.650695292FP2
TRIAD BANK FRONTENAC MO1612 249,000.00 249,000.00 11/08/20241.80011/08/2019 260,914.65 1.80089579NCB7
EVERGREEN BANK GROUP1615 249,000.00 249,000.00 03/26/20251.00003/26/2020 254,336.07 1.000300185JF3
MIDCOUNTRY BANK1617 249,000.00 249,000.00 03/27/20251.00003/27/2020 254,336.07 1.00059565QCS2
CENTERSTATE BANK NA1620 248,000.00 248,000.00 03/31/20251.00003/30/2020 253,312.16 1.00015201QCJ4
LIVE OAK BANKING COMPANY1622 249,000.00 249,000.00 03/31/20251.10003/31/2020 255,262.35 1.100538036KU7
PACIFIC ENTERPRISE BANK1621 249,000.00 249,000.00 03/31/20251.15003/30/2020 255,725.49 1.150694231AD3
LUANA SAVINGS BANK1627 249,000.00 249,000.00 10/02/20250.40010/02/2020 247,237.08 0.400549104SS7
1ST SECURITY BK OF WASH1629 249,000.00 249,000.00 10/15/20250.40011/13/2020 247,067.76 0.40033625CDV8
LANDMARK COMMUNITY BANK1628 249,000.00 249,000.00 10/29/20250.40010/29/2020 246,883.50 0.40051507LBZ6
FIRST US BANK1630 249,000.00 249,000.00 11/18/20250.40011/18/2020 246,614.58 0.40033744AAW9
KS STATEBANK1631 249,000.00 249,000.00 11/28/20250.45011/30/2020 247,017.96 0.45050116CCP2
UBS BANK USA1632 249,000.00 249,000.00 06/23/20260.75006/23/2021 247,580.70 0.75090348JN48
NEW YORK COMMUNITY BANK1633 249,000.00 249,000.00 07/01/20260.70006/30/2021 246,866.07 0.700649447UZ0
12,877,000.00 1.82313,278,165.6112,877,000.0012,845,566.67Subtotal and Average
Negotiable CDs
CELTIC BANK1614 249,000.00 249,000.00 10/30/20231.60010/30/2019 256,806.15 1.60115118RSN8
NRFirst Bank Puerto Rico1608 249,000.00 249,000.00 10/25/20241.85010/28/2019 261,245.82 1.85233767GAMO NR
498,000.00 1.727518,051.97498,000.00498,000.00Subtotal and Average
Portfolio ENCI
AC
Run Date: 08/16/2021 - 14:15 PM (PRF_PM2) 7.3.0
2021-10-20 Item #08C Page 27 of 85
S&P
Page 3
Par Value Book Value
Maturity
Date
Stated
RateMarket Value
June 30, 2021
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
City of Encinitas
Moody's
YTM
CUSIP Investment #
Purchase
Date
U.S. Treasury Coupon Securities
U.S. Treasury Notes1523 2,000,000.00 1,998,962.43 07/31/20211.12502/13/2017 2,001,800.00 1.784912828S76 Aaa
U.S. Treasury Notes1556 2,000,000.00 1,993,350.17 09/30/20211.12502/23/2018 2,005,320.00 2.530912828T34 Aaa
U.S. Treasury Notes1574 2,000,000.00 1,995,869.53 10/31/20212.00006/26/2018 2,012,900.00 2.650912828F96 Aaa
U.S. Treasury Notes1578 4,000,000.00 3,971,285.93 07/31/20222.00006/26/2018 4,081,880.00 2.705912828XQ8 Aaa
U.S. Treasury Notes1572 2,000,000.00 1,981,692.04 08/31/20221.87506/26/2018 2,040,460.00 2.710912828L24 Aaa
U.S. Treasury Notes1579 2,000,000.00 1,980,414.26 09/30/20221.87506/26/2018 2,043,280.00 2.7119128282W9 Aaa
U.S. Treasury Notes1592 3,000,000.00 2,944,777.88 07/31/20231.25003/27/2019 3,061,410.00 2.181912828S92
U.S. Treasury Notes1604 2,000,000.00 1,985,269.11 08/31/20231.37506/26/2019 2,047,260.00 1.7299128282D1
18,851,621.35 2.40019,294,310.0019,000,000.0018,845,945.73Subtotal and Average
Federal Agency Coupon Securities
AA+Federal Home Loan Bank1524 2,000,000.00 1,999,540.14 07/14/20211.12502/13/2017 2,000,800.00 1.7903130A8QS5 Aaa
AA+Federal Home Loan Mortgage1537 2,000,000.00 2,000,228.99 07/27/20211.87506/23/2017 2,002,580.00 1.7103134G9N94 Aaa
AA+Federal Home Loan Mortgage1557 2,000,000.00 1,997,032.37 08/12/20211.12502/23/2018 2,002,500.00 2.4933137EAEC9 Aaa
AA+Federal Home Loan Bank1575 2,000,000.00 1,998,811.81 09/10/20212.37506/26/2018 2,008,820.00 2.712313378JP7 Aaa
AA+Federal Home Loan Bank1555 2,000,000.00 1,994,967.35 11/29/20211.87502/23/2018 2,014,980.00 2.5203130AABG2 Aaa
Federal Home Loan Bank1588 2,000,000.00 2,002,343.58 02/15/20222.42003/27/2019 2,029,000.00 2.2253130AG3Y9
FEDERAL FARM CREDIT BANK1601 2,000,000.00 2,005,637.74 02/28/20222.20006/26/2019 2,028,040.00 1.7603133EKNM4
AA+Federal Farm Credit1536 2,000,000.00 2,004,369.64 03/15/20222.15006/23/2017 2,029,540.00 1.8253133EHCT8 Aaa
AA+Federal Home Loan Bank1573 2,000,000.00 1,999,451.03 06/10/20222.75006/26/2018 2,049,760.00 2.7803130AEBM1 Aaa
Federal Nat'l Mortgage Assoc.1589 2,000,000.00 1,995,409.87 10/05/20222.00003/27/2019 2,046,040.00 2.1903135G0T78
Federal Nat'l Mortgage Assoc.1603 1,000,000.00 1,003,169.53 10/05/20222.00006/26/2019 1,023,020.00 1.7403135G0T78
Federal Farm Credit1600 1,000,000.00 1,009,971.44 10/06/20222.60006/26/2019 1,031,260.00 1.7843133EDWW8
AA+Federal Farm Credit1558 2,000,000.00 1,977,101.75 11/23/20221.82002/23/2018 2,046,860.00 2.7003133EC4Q4 Aaa
AAAFederal Farm Credit1590 2,000,000.00 2,008,760.83 02/02/20232.50003/27/2019 2,073,760.00 2.2103133EJBP3 Aaa
AAAFederal Farm Credit1605 4,000,000.00 3,997,710.01 06/26/20231.77006/26/2019 4,118,600.00 1.8003133EKSN7 Aaa
FEDERAL FARM CREDIT BANK1591 1,000,000.00 995,598.81 07/26/20232.01003/27/2019 1,035,480.00 2.2343133EHST1
Federal Nat'l Mortgage Assoc.1602 2,000,000.00 2,045,237.27 09/12/20232.87506/26/2019 2,114,000.00 1.8013135G0U43
FEDERAL FARM CREDIT BANK1606 2,000,000.00 2,017,626.58 11/01/20232.20006/26/2019 2,086,420.00 1.8053133EHN25
35,052,968.74 2.11335,741,460.0035,000,000.0036,385,657.01Subtotal and Average
Portfolio ENCI
AC
Run Date: 08/16/2021 - 14:15 PM (PRF_PM2) 7.3.0
2021-10-20 Item #08C Page 28 of 85
S&P
Page 4
Par Value Book Value
Stated
RateMarket Value
June 30, 2021
Portfolio Details - Investments
Average
BalanceIssuer
Portfolio Management
City of Encinitas
Moody's
YTM
CUSIP Investment #
Purchase
Date
1.189127,554,119.22 129,968,926.65 131,434,033.46 129,873,516.74Total and Average
Portfolio ENCI
AC
Run Date: 08/16/2021 - 14:15 PM (PRF_PM2) 7.3.0
2021-10-20 Item #08C Page 29 of 85
S&P
Page 5
Par Value Book Value
Stated
RateMarket Value
June 30, 2021
Portfolio Details - Cash
Average
BalanceIssuer
Portfolio Management
City of Encinitas
Moody's
YTM
CUSIP Investment #
Purchase
Date
Passbook/Checking Accounts
Union Bank Checking Acct.1010 5,038,148.62 5,038,148.625,038,148.62 0.000SYS1010
0.00
1.189127,554,119.22 135,007,075.27
Average Balance
136,472,182.08 134,911,665.36Total Cash and Investments
Portfolio ENCI
AC
Run Date: 08/16/2021 - 14:15 PM (PRF_PM2) 7.3.0
2021-10-20 Item #08C Page 30 of 85
City of Encinitas - YTD Report
Investments by Issuer
CITY OF ENCINITAS
505 S. VULCAN
Encinitas, CA 92024
(760)633-2641
Sorted by Fund
Active Investments
June 30, 2021
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date
Days To
Maturity CollateralCUSIPInvestment #
Investment
Class
YTM
365Remaining Cost
ALMA BANK
252,650.341619020080BU0 8200.900Certificates of Deposit - Bank Amort 09/29/202306/30/2021 0.900249,000.00
252,650.34 0.900249,000.00Subtotal and Average 820
American Express National Bank
260,011.15158002589AAM4 7253.300Certificates of Deposit - Bank Amort 06/26/202306/30/2021 3.300245,000.00
260,011.15 3.300245,000.00Subtotal and Average 725
BANK HAPOALIM BM NY
263,532.42158506251AW48 9982.900Certificates of Deposit - Bank Amort 03/25/202406/30/2021 2.900246,000.00
263,532.42 2.900246,000.00Subtotal and Average 998
BankVista
249,667.25153306653ABM5 3642.000Certificates of Deposit - Bank Amort 06/30/202206/30/2021 2.000245,000.00
249,667.25 2.000245,000.00Subtotal and Average 364
BMW Bank North America
257,653.02156205580AMB7 6362.900Certificates of Deposit - Bank Amort 03/29/202306/30/2021 2.900246,000.00
257,653.02 2.900246,000.00Subtotal and Average 636
CA Asset Management Program
1,070,729.901003SYS1003 10.510Managed Pool Accounts Amort 06/30/2019 0.5101,070,729.90
1,070,729.90 0.5101,070,729.90Subtotal and Average 1
Capital One NA
250,666.85155214042RGN5 3832.300Certificates of Deposit - Bank Amort 07/19/202206/30/2021 2.300245,000.00
250,666.85 2.300245,000.00Subtotal and Average 383
Capital One Bank USA, NA
250,666.8515531404203Q1 3832.300Certificates of Deposit - Bank Amort 07/19/202206/30/2021 2.300245,000.00
250,666.85 2.300245,000.00Subtotal and Average 383
Portfolio ENCI
ACData Updated: SET_ANNU: 08/23/2021 15:46
Run Date: 08/23/2021 - 15:47 DI (PRF_DI) 7.1.1No fiscal year history available
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 31 of 85
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date
Days To
Maturity Collateral
Page 2Sorted by Fund
Investments by Issuer
City of Encinitas - YTD Report
CUSIP Investment #
Investment
Class
YTM
365Remaining Cost
CELTIC BANK
256,806.15161415118RSN8 8511.600Negotiable CDs Amort 10/30/202306/30/2021 1.601249,000.00
256,806.15 1.601249,000.00Subtotal and Average 851
Citi Bank NA
257,436.54156317312QH69 6362.850Certificates of Deposit - Bank Amort 03/29/202306/30/2021 2.850246,000.00
257,436.54 2.850246,000.00Subtotal and Average 636
Citizens State Bankl
247,266.25153017670DAC8 1821.900Certificates of Deposit - Bank Amort 12/30/202106/30/2021 1.900245,000.00
247,266.25 1.900245,000.00Subtotal and Average 182
COMMERCE BANK GENEVA MN
263,740.801595200056QRZ8 1,0912.300Certificates of Deposit - Bank Amort 06/26/202406/30/2021 2.300249,000.00
263,740.80 2.300249,000.00Subtotal and Average 1,091
City National Bank Metropolis
247,822.40155117801GSB7 2172.000Certificates of Deposit - Bank Amort 02/03/202206/30/2021 2.000245,000.00
247,822.40 2.000245,000.00Subtotal and Average 217
COMMUNITY BANK
259,669.651610203522AT4 1,2261.650Certificates of Deposit - Bank Amort 11/08/202406/30/2021 1.650249,000.00
259,669.65 1.650249,000.00Subtotal and Average 1,226
Comenity Capital Bank
260,013.60157120033AZK5 7283.300Certificates of Deposit - Bank Amort 06/29/202306/30/2021 3.300245,000.00
260,013.60 3.300245,000.00Subtotal and Average 728
SD County Investment Pool
4,213,387.801584SYS1584 15.102Managed Pool Accounts Amort 06/30/2021 5.1024,208,416.00
4,213,387.80 5.1024,208,416.00Subtotal and Average 1
CORNHUSKER BANK
254,525.311623219255AK2 1,0021.100Certificates of Deposit - Bank Amort 03/29/202406/30/2021 1.100249,000.00
254,525.31 1.100249,000.00Subtotal and Average 1,002
Portfolio ENCI
ACData Updated: SET_ANNU: 08/23/2021 15:46
Run Date: 08/23/2021 - 15:47 DI (PRF_DI) 7.1.1No fiscal year history available
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 32 of 85
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date
Days To
Maturity Collateral
Page 3Sorted by Fund
Investments by Issuer
City of Encinitas - YTD Report
CUSIP Investment #
Investment
Class
YTM
365Remaining Cost
CENTERSTATE BANK NA
253,312.16162015201QCJ4 1,3691.000Certificates of Deposit - Bank Amort 03/31/202506/30/2021 1.000248,000.00
253,312.16 1.000248,000.00Subtotal and Average 1,369
Denver Savings Bank
258,952.531596249398BT4 7202.250Certificates of Deposit - Bank Amort 06/21/202306/30/2021 2.250249,000.00
258,952.53 2.250249,000.00Subtotal and Average 720
EAGLEBANK
263,668.59159427002YEQ5 1,0852.300Certificates of Deposit - Bank Amort 06/20/202406/30/2021 2.300249,000.00
263,668.59 2.300249,000.00Subtotal and Average 1,085
Enerbank USA
257,436.54156829278TAU4 6362.850Certificates of Deposit - Bank Amort 03/29/202306/30/2021 2.850246,000.00
257,436.54 2.850246,000.00Subtotal and Average 636
ENTERPRISE BANK AND TRUST
260,914.65160729367SJQ8 1,2261.800Certificates of Deposit - Bank Amort 11/08/202406/30/2021 1.800249,000.00
260,914.65 1.800249,000.00Subtotal and Average 1,226
EVERGREEN BANK GROUP
254,336.071615300185JF3 1,3641.000Certificates of Deposit - Bank Amort 03/26/202506/30/2021 1.000249,000.00
254,336.07 1.000249,000.00Subtotal and Average 1,364
First Bank Puerto Rico
261,245.82160833767GAMO 1,2121.850Negotiable CDs Amort 10/25/202406/30/2021 1.852249,000.00
261,245.82 1.852249,000.00Subtotal and Average 1,212
FEDERAL FARM CREDIT BANK
1,035,480.0015913133EHST1 7552.010Federal Agency Coupon Securities Amort 07/26/202306/30/2021 2.234990,790.00
2,028,040.0016013133EKNM4 2422.200Federal Agency Coupon Securities Amort 02/28/202206/30/2021 1.7602,022,884.00
2,086,420.0016063133EHN25 8532.200Federal Agency Coupon Securities Amort 11/01/202306/30/2021 1.8052,032,840.00
5,149,940.00 1.8625,046,514.00Subtotal and Average 586
Federal Farm Credit
2,029,540.0015363133EHCT8 2572.150Federal Agency Coupon Securities Fair 03/15/202206/30/2021 1.8252,029,280.00
Portfolio ENCI
ACData Updated: SET_ANNU: 08/23/2021 15:46
Run Date: 08/23/2021 - 15:47 DI (PRF_DI) 7.1.1No fiscal year history available
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 33 of 85
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date
Days To
Maturity Collateral
Page 4Sorted by Fund
Investments by Issuer
City of Encinitas - YTD Report
CUSIP Investment #
Investment
Class
YTM
365Remaining Cost
2,046,860.0015583133EC4Q4 5101.820Federal Agency Coupon Securities Fair 11/23/202206/30/2021 2.7001,922,000.00
2,073,760.0015903133EJBP3 5812.500Federal Agency Coupon Securities Amort 02/02/202306/30/2021 2.2102,021,250.00
1,031,260.0016003133EDWW8 4622.600Federal Agency Coupon Securities Amort 10/06/202206/30/2021 1.7841,025,860.00
4,118,600.0016053133EKSN7 7251.770Federal Agency Coupon Securities Amort 06/26/202306/30/2021 1.8003,995,388.00
11,300,020.00 2.04110,993,778.00Subtotal and Average 550
Federal Home Loan Bank
2,000,800.0015243130A8QS5 131.125Federal Agency Coupon Securities Fair 07/14/202106/30/2021 1.7901,943,720.00
2,014,980.0015553130AABG2 1511.875Federal Agency Coupon Securities Fair 11/29/202106/30/2021 2.5201,953,890.00
2,049,760.0015733130AEBM1 3442.750Federal Agency Coupon Securities Fair 06/10/202206/30/2021 2.7801,997,694.00
2,008,820.001575313378JP7 712.375Federal Agency Coupon Securities Fair 09/10/202106/30/2021 2.7121,980,128.00
2,029,000.0015883130AG3Y9 2292.420Federal Agency Coupon Securities Amort 02/15/202206/30/2021 2.2252,010,860.00
10,103,360.00 2.4329,886,292.00Subtotal and Average 163
Federal Home Loan Mortgage
2,002,580.0015373134G9N94 261.875Federal Agency Coupon Securities Fair 07/27/202106/30/2021 1.7102,012,982.00
2,002,500.0015573137EAEC9 421.125Federal Agency Coupon Securities Fair 08/12/202106/30/2021 2.4931,909,596.00
4,005,080.00 2.1413,922,578.00Subtotal and Average 34
FIRST SERVICE BANK
257,503.35160933640VDE5 8671.700Certificates of Deposit - Bank Amort 11/15/202306/30/2021 1.700249,000.00
257,503.35 1.700249,000.00Subtotal and Average 867
FLAGSTAR BANK FSB
249,410.85162633847E4E4 1,1870.400Certificates of Deposit - Bank Amort 09/30/202406/30/2021 0.400249,000.00
249,410.85 0.400249,000.00Subtotal and Average 1,187
Federal Nat'l Mortgage Assoc.
2,046,040.0015893135G0T78 4612.000Federal Agency Coupon Securities Amort 10/05/202206/30/2021 2.1901,987,180.00
2,114,000.0016023135G0U43 8032.875Federal Agency Coupon Securities Amort 09/12/202306/30/2021 1.8012,086,700.00
1,023,020.0016033135G0T78 4612.000Federal Agency Coupon Securities Amort 10/05/202206/30/2021 1.7401,008,231.00
5,183,060.00 1.9285,082,111.00Subtotal and Average 595
FORTUNE BANK ARNOLD
253,835.58161634969RCS5 1,0001.000Certificates of Deposit - Bank Amort 03/27/202406/30/2021 1.000249,000.00
253,835.58 1.000249,000.00Subtotal and Average 1,000
Portfolio ENCI
ACData Updated: SET_ANNU: 08/23/2021 15:46
Run Date: 08/23/2021 - 15:47 DI (PRF_DI) 7.1.1No fiscal year history available
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 34 of 85
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date
Days To
Maturity Collateral
Page 5Sorted by Fund
Investments by Issuer
City of Encinitas - YTD Report
CUSIP Investment #
Investment
Class
YTM
365Remaining Cost
First State Bank Dequeen
263,763.211598336460CQ1 1,0932.300Certificates of Deposit - Bank Amort 06/28/202406/30/2021 2.300249,000.00
263,763.21 2.300249,000.00Subtotal and Average 1,093
1ST SECURITY BK OF WASH
247,067.76162933625CDV8 1,5670.400Certificates of Deposit - Bank Amort 10/15/202506/30/2021 0.400249,000.00
247,067.76 0.400249,000.00Subtotal and Average 1,567
First Source Bank
257,633.34156933646CJP0 6492.850Certificates of Deposit - Bank Amort 04/11/202306/30/2021 2.850246,000.00
257,633.34 2.850246,000.00Subtotal and Average 649
Goldman Sachs Bank USA
250,441.45152838148PKX4 3552.350Certificates of Deposit - Bank Amort 06/21/202206/30/2021 2.350245,000.00
250,441.45 2.350245,000.00Subtotal and Average 355
Industrial & Comm Bank China
260,762.76156445581EAS0 6362.900Certificates of Deposit - Bank Amort 03/29/202306/30/2021 2.900249,000.00
260,762.76 2.900249,000.00Subtotal and Average 636
KS STATEBANK
247,017.96163150116CCP2 1,6110.450Certificates of Deposit - Bank Amort 11/28/202506/30/2021 0.450249,000.00
247,017.96 0.450249,000.00Subtotal and Average 1,611
CA LAIF
37,937,738.641012SYS1012 11.217Local Agency Investment Funds Amort 06/30/2021 1.21737,934,591.21
37,937,738.64 1.21737,934,591.21Subtotal and Average 1
LCA Bank Corp
257,222.521566501798LT7 6362.800Certificates of Deposit - Bank Amort 03/29/202306/30/2021 2.800246,000.00
257,222.52 2.800246,000.00Subtotal and Average 636
LANDMARK COMMUNITY BANK
246,883.50162851507LBZ6 1,5810.400Certificates of Deposit - Bank Amort 10/29/202506/30/2021 0.400249,000.00
246,883.50 0.400249,000.00Subtotal and Average 1,581
Portfolio ENCI
ACData Updated: SET_ANNU: 08/23/2021 15:46
Run Date: 08/23/2021 - 15:47 DI (PRF_DI) 7.1.1No fiscal year history available
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 35 of 85
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date
Days To
Maturity Collateral
Page 6Sorted by Fund
Investments by Issuer
City of Encinitas - YTD Report
CUSIP Investment #
Investment
Class
YTM
365Remaining Cost
LEGENDS BANK
254,241.45161852465JHT7 1,1871.000Certificates of Deposit - Bank Amort 09/30/202406/30/2021 1.000249,000.00
254,241.45 1.000249,000.00Subtotal and Average 1,187
LIVE OAK BANKING COMPANY
255,262.351622538036KU7 1,3691.100Certificates of Deposit - Bank Amort 03/31/202506/30/2021 1.100249,000.00
255,262.35 1.100249,000.00Subtotal and Average 1,369
LUANA SAVINGS BANK
247,237.081627549104SS7 1,5540.400Certificates of Deposit - Bank Amort 10/02/202506/30/2021 0.400249,000.00
247,237.08 0.400249,000.00Subtotal and Average 1,554
Medallion Bank UT
260,745.33156158404DBL4 6352.900Certificates of Deposit - Bank Amort 03/28/202306/30/2021 2.900249,000.00
260,745.33 2.900249,000.00Subtotal and Average 635
Merrick Bank
262,199.49159759013KAR7 9102.400Certificates of Deposit - Bank Amort 12/28/202306/30/2021 2.400249,000.00
262,199.49 2.400249,000.00Subtotal and Average 910
MORGAN STANLEY PRIVATE BANK
262,614.84159361760AG52 1,0782.600Certificates of Deposit - Bank Amort 06/13/202406/30/2021 2.600246,000.00
262,614.84 2.600246,000.00Subtotal and Average 1,078
MIDCOUNTRY BANK
254,336.07161759565QCS2 1,3651.000Certificates of Deposit - Bank Amort 03/27/202506/30/2021 1.000249,000.00
254,336.07 1.000249,000.00Subtotal and Average 1,365
Morgan Stanley Bank
257,653.02156561747MR37 6362.900Certificates of Deposit - Bank Amort 03/29/202306/30/2021 2.900246,000.00
257,653.02 2.900246,000.00Subtotal and Average 636
NICOLET NATIONAL BANK
254,861.461625654062JR0 1,0011.150Certificates of Deposit - Bank Amort 03/28/202406/30/2021 1.150249,000.00
254,861.46 1.150249,000.00Subtotal and Average 1,001
Portfolio ENCI
ACData Updated: SET_ANNU: 08/23/2021 15:46
Run Date: 08/23/2021 - 15:47 DI (PRF_DI) 7.1.1No fiscal year history available
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 36 of 85
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date
Days To
Maturity Collateral
Page 7Sorted by Fund
Investments by Issuer
City of Encinitas - YTD Report
CUSIP Investment #
Investment
Class
YTM
365Remaining Cost
NEW YORK COMMUNITY BANK
246,866.071633649447UZ0 1,8260.700Certificates of Deposit - Bank Amort 07/01/202606/30/2021 0.700249,000.00
246,866.07 0.700249,000.00Subtotal and Average 1,826
PACIFIC ENTERPRISE BANK
255,725.491621694231AD3 1,3691.150Certificates of Deposit - Bank Amort 03/31/202506/30/2021 1.150249,000.00
255,725.49 1.150249,000.00Subtotal and Average 1,369
PADUCAH BANK AND TRUST
259,669.651613695292FP2 1,2261.650Certificates of Deposit - Bank Amort 11/08/202406/30/2021 1.650249,000.00
259,669.65 1.650249,000.00Subtotal and Average 1,226
PEOPLES BANK/SARDIS TN
254,241.451624710673AC8 1,1871.000Certificates of Deposit - Bank Amort 09/30/202406/30/2021 1.000249,000.00
254,241.45 1.000249,000.00Subtotal and Average 1,187
POPPY BANK
259,647.24161173319FAD1 1,2221.650Certificates of Deposit - Bank Amort 11/04/202406/30/2021 1.650249,000.00
259,647.24 1.650249,000.00Subtotal and Average 1,222
REVERE BANK
261,676.741599761400BY1 1,0932.300Certificates of Deposit - Bank Amort 06/28/202406/30/2021 2.300247,000.00
261,676.74 2.300247,000.00Subtotal and Average 1,093
Sallie Mae Bank/Murray
260,030.751570795450S89 7263.300Certificates of Deposit - Bank Amort 06/27/202306/30/2021 3.300245,000.00
260,030.75 3.300245,000.00Subtotal and Average 726
TIAA FSB
250,282.20155487270LAD5 3832.150Certificates of Deposit - Bank Amort 07/19/202206/30/2021 2.150245,000.00
250,282.20 2.150245,000.00Subtotal and Average 383
TRIAD BANK FRONTENAC MO
260,914.65161289579NCB7 1,2261.800Certificates of Deposit - Bank Amort 11/08/202406/30/2021 1.800249,000.00
260,914.65 1.800249,000.00Subtotal and Average 1,226
Portfolio ENCI
ACData Updated: SET_ANNU: 08/23/2021 15:46
Run Date: 08/23/2021 - 15:47 DI (PRF_DI) 7.1.1No fiscal year history available
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 37 of 85
Market
DateMarket Value
Redemption
DateSecurity Type
Current
Rate
Call
Date Collateral
Page 8Sorted by Fund
Investments by Issuer
City of Encinitas - YTD Report
CUSIP Investment #
Investment
Class
YTM
365Remaining Cost
Union Bank Checking Acct.
5,038,148.621010SYS1010 1Passbook/Checking Accounts Amort 06/30/20185,038,148.62
5,038,148.625,038,148.62Subtotal and Average 1
Union Bank Custody Acct.
19,380,189.541004SYS1004 10.070Money Market Funds Amort 04/30/2019 0.07019,380,189.54
19,380,189.54 0.07019,380,189.54Subtotal and Average 1
UBS BANK USA
247,580.70163290348JN48 1,8180.750Certificates of Deposit - Bank Amort 06/23/202606/30/2021 0.750249,000.00
247,580.70 0.750249,000.00Subtotal and Average 1,818
FIRST US BANK
246,614.58163033744AAW9 1,6010.400Certificates of Deposit - Bank Amort 11/18/202506/30/2021 0.400249,000.00
246,614.58 0.400249,000.00Subtotal and Average 1,601
U.S. Treasury Notes
2,001,800.001523912828S76 301.125U.S. Treasury Coupon Securities Fair 07/31/202106/30/2021 1.7841,943,660.00
2,005,320.001556912828T34 911.125U.S. Treasury Coupon Securities Fair 09/30/202106/30/2021 2.5301,903,906.25
2,040,460.001572912828L24 4261.875U.S. Treasury Coupon Securities Fair 08/31/202206/30/2021 2.7101,934,375.00
2,012,900.001574912828F96 1222.000U.S. Treasury Coupon Securities Fair 10/31/202106/30/2021 2.6501,958,593.75
4,081,880.001578912828XQ8 3952.000U.S. Treasury Coupon Securities Fair 07/31/202206/30/2021 2.7053,891,250.00
2,043,280.0015799128282W9 4561.875U.S. Treasury Coupon Securities Fair 09/30/202206/30/2021 2.7111,933,125.00
3,061,410.001592912828S92 7601.250U.S. Treasury Coupon Securities Fair 07/31/202306/30/2021 2.1812,884,687.50
2,047,260.0016049128282D1 7911.375U.S. Treasury Coupon Securities Amort 08/31/202306/30/2021 1.7291,971,562.50
19,294,310.00 2.45618,421,160.00Subtotal and Average 413
Wells Fargo Bank
250,279.751535949763JG2 3642.250Certificates of Deposit - Bank Amort 06/30/202206/30/2021 2.250245,000.00
250,279.75 2.250245,000.00Subtotal and Average 364
136,472,182.08 1.587134,359,508.27Total and Average 257
Portfolio ENCI
ACData Updated: SET_ANNU: 08/23/2021 15:46
Run Date: 08/23/2021 - 15:47 DI (PRF_DI) 7.1.1No fiscal year history available
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 38 of 85
Activity Report
CITY OF ENCINITAS
505 S. VULCAN
Encinitas, CA 92024
(760)633-2641Sorted By Issuer
July 1, 2020 - June 30, 2021
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Percent
of Portfolio
Par Value
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: ALMA BANK
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: American Express National Bank
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: BANK HAPOALIM BM NY
Certificates of Deposit - Bank
246,000.00 246,000.00Subtotal and Balance
0.00 0.00246,000.00 246,000.000.182%Issuer Subtotal
Issuer: BankVista
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: BMW Bank North America
Certificates of Deposit - Bank
246,000.00 246,000.00Subtotal and Balance
0.00 0.00246,000.00 246,000.000.182%Issuer Subtotal
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 39 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 2
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: CA Asset Management Program
Managed Pool Accounts
CA Asset Management Program1003 2,058.400.050 0.00SYS1003
0.001,068,671.50 1,070,729.90Subtotal and Balance 2,058.40
2,058.40 0.001,068,671.50 1,070,729.900.793%Issuer Subtotal
Issuer: Capital One NA
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: Capital One Bank USA, NA
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: CELTIC BANK
Negotiable CDs
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: Citi Bank NA
Certificates of Deposit - Bank
246,000.00 246,000.00Subtotal and Balance
0.00 0.00246,000.00 246,000.000.182%Issuer Subtotal
Issuer: Citizens State Bankl
Certificates of Deposit - Bank
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 40 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 3
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: COMMERCE BANK GENEVA MN
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: City National Bank Metropolis
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: COMMUNITY BANK
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: Comenity Capital Bank
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: SD County Investment Pool
Managed Pool Accounts
SD County Investment Pool1584 50,217.280.060 0.00SYS1584
0.004,158,198.72 4,208,416.00Subtotal and Balance 50,217.28
50,217.28 0.004,158,198.72 4,208,416.003.117%Issuer Subtotal
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 41 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 4
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: CORNHUSKER BANK
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: CENTERSTATE BANK NA
Certificates of Deposit - Bank
248,000.00 248,000.00Subtotal and Balance
0.00 0.00248,000.00 248,000.000.184%Issuer Subtotal
Issuer: Denver Savings Bank
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: EAGLEBANK
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: Enerbank USA
Certificates of Deposit - Bank
246,000.00 246,000.00Subtotal and Balance
0.00 0.00246,000.00 246,000.000.182%Issuer Subtotal
Issuer: ENTERPRISE BANK AND TRUST
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 42 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 5
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: EVERGREEN BANK GROUP
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: First Bank Puerto Rico
Negotiable CDs
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: FEDERAL FARM CREDIT BANK
Federal Agency Coupon Securities
5,000,000.00 5,000,000.00Subtotal and Balance
0.00 0.005,000,000.00 5,000,000.003.704%Issuer Subtotal
Issuer: Federal Farm Credit
Federal Agency Coupon Securities
Federal Farm Credit1534 0.001.650 06/21/2021 2,000,000.003133EHNX7
2,000,000.0013,000,000.00 11,000,000.00Subtotal and Balance 0.00
0.00 2,000,000.0013,000,000.00 11,000,000.008.148%Issuer Subtotal
Issuer: Federal Home Loan Bank
Federal Agency Coupon Securities
10,000,000.00 10,000,000.00Subtotal and Balance
0.00 0.0010,000,000.00 10,000,000.007.407%Issuer Subtotal
Issuer: Federal Home Loan Mortgage
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 43 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 6
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: Federal Home Loan Mortgage
Federal Agency Coupon Securities
Federal Home Loan Mortgage1560 0.002.220 07/01/2020 2,000,000.003134GSAX3
2,000,000.006,000,000.00 4,000,000.00Subtotal and Balance 0.00
0.00 2,000,000.006,000,000.00 4,000,000.002.963%Issuer Subtotal
Issuer: Firstrust Savings Bank
Certificates of Deposit - Bank
Firstrust Savings Bank1531 0.001.900 06/23/2021 245,000.00337630BD8
245,000.00245,000.00 0.00Subtotal and Balance 0.00
0.00 245,000.00245,000.00 0.000.000%Issuer Subtotal
Issuer: FIRST SERVICE BANK
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: FLAGSTAR BANK FSB
Certificates of Deposit - Bank
FLAGSTAR BANK FSB1626 249,000.000.400 09/30/2020 0.0033847E4E4
0.000.00 249,000.00Subtotal and Balance 249,000.00
249,000.00 0.000.00 249,000.000.184%Issuer Subtotal
Issuer: Federal Nat'l Mortgage Assoc.
Federal Agency Coupon Securities
5,000,000.00 5,000,000.00Subtotal and Balance
0.00 0.005,000,000.00 5,000,000.003.704%Issuer Subtotal
Issuer: FORTUNE BANK ARNOLD
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 44 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 7
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: FORTUNE BANK ARNOLD
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: First State Bank Dequeen
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: 1ST SECURITY BK OF WASH
Certificates of Deposit - Bank
1ST SECURITY BK OF WASH1629 249,000.000.400 11/13/2020 0.0033625CDV8
0.000.00 249,000.00Subtotal and Balance 249,000.00
249,000.00 0.000.00 249,000.000.184%Issuer Subtotal
Issuer: First Source Bank
Certificates of Deposit - Bank
246,000.00 246,000.00Subtotal and Balance
0.00 0.00246,000.00 246,000.000.182%Issuer Subtotal
Issuer: Goldman Sachs Bank USA
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: Industrial & Comm Bank China
Certificates of Deposit - Bank
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 45 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 8
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: KS STATEBANK
Certificates of Deposit - Bank
KS STATEBANK1631 249,000.000.450 11/30/2020 0.0050116CCP2
0.000.00 249,000.00Subtotal and Balance 249,000.00
249,000.00 0.000.00 249,000.000.184%Issuer Subtotal
Issuer: CA LAIF
Local Agency Investment Funds
CA LAIF1012 20,243,068.150.262 18,700,000.00SYS1012
18,700,000.0036,391,523.06 37,934,591.21Subtotal and Balance 20,243,068.15
20,243,068.15 18,700,000.0036,391,523.06 37,934,591.2128.098%Issuer Subtotal
Issuer: LCA Bank Corp
Certificates of Deposit - Bank
246,000.00 246,000.00Subtotal and Balance
0.00 0.00246,000.00 246,000.000.182%Issuer Subtotal
Issuer: LANDMARK COMMUNITY BANK
Certificates of Deposit - Bank
LANDMARK COMMUNITY BANK1628 249,000.000.400 10/29/2020 0.0051507LBZ6
0.000.00 249,000.00Subtotal and Balance 249,000.00
249,000.00 0.000.00 249,000.000.184%Issuer Subtotal
Issuer: LEGENDS BANK
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 46 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 9
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: LIVE OAK BANKING COMPANY
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: LUANA SAVINGS BANK
Certificates of Deposit - Bank
LUANA SAVINGS BANK1627 249,000.000.400 10/02/2020 0.00549104SS7
0.000.00 249,000.00Subtotal and Balance 249,000.00
249,000.00 0.000.00 249,000.000.184%Issuer Subtotal
Issuer: Medallion Bank UT
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: Merrick Bank
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: MORGAN STANLEY PRIVATE BANK
Certificates of Deposit - Bank
246,000.00 246,000.00Subtotal and Balance
0.00 0.00246,000.00 246,000.000.182%Issuer Subtotal
Issuer: MIDCOUNTRY BANK
Certificates of Deposit - Bank
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 47 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 10
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: Morgan Stanley Bank
Certificates of Deposit - Bank
246,000.00 246,000.00Subtotal and Balance
0.00 0.00246,000.00 246,000.000.182%Issuer Subtotal
Issuer: NICOLET NATIONAL BANK
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: NEW YORK COMMUNITY BANK
Certificates of Deposit - Bank
NEW YORK COMMUNITY BANK1633 249,000.000.700 06/30/2021 0.00649447UZ0
0.000.00 249,000.00Subtotal and Balance 249,000.00
249,000.00 0.000.00 249,000.000.184%Issuer Subtotal
Issuer: PACIFIC ENTERPRISE BANK
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: PADUCAH BANK AND TRUST
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 48 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 11
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: PEOPLES BANK/SARDIS TN
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: POPPY BANK
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: REVERE BANK
Certificates of Deposit - Bank
247,000.00 247,000.00Subtotal and Balance
0.00 0.00247,000.00 247,000.000.183%Issuer Subtotal
Issuer: Sallie Mae Bank/Murray
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: TIAA FSB
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: TRIAD BANK FRONTENAC MO
Certificates of Deposit - Bank
249,000.00 249,000.00Subtotal and Balance
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 49 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 12
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
0.00 0.00249,000.00 249,000.000.184%Issuer Subtotal
Issuer: Union Bank Checking Acct.
Passbook/Checking Accounts
Union Bank Checking Acct.1010 65,453,472.44 64,168,803.94SYS1010
64,168,803.943,753,480.12 5,038,148.62Subtotal and Balance 65,453,472.44
65,453,472.44 64,168,803.943,753,480.12 5,038,148.623.732%Issuer Subtotal
Issuer: Union Bank Custody Acct.
Money Market Funds
Union Bank Custody Acct.1004 40,381,830.600.030 24,196,416.18SYS1004
24,196,416.183,194,775.12 19,380,189.54Subtotal and Balance 40,381,830.60
40,381,830.60 24,196,416.183,194,775.12 19,380,189.5414.355%Issuer Subtotal
Issuer: UBS BANK USA
Certificates of Deposit - Bank
UBS BANK USA1632 249,000.000.750 06/23/2021 0.0090348JN48
0.000.00 249,000.00Subtotal and Balance 249,000.00
249,000.00 0.000.00 249,000.000.184%Issuer Subtotal
Issuer: FIRST US BANK
Certificates of Deposit - Bank
FIRST US BANK1630 249,000.000.400 11/18/2020 0.0033744AAW9
0.000.00 249,000.00Subtotal and Balance 249,000.00
249,000.00 0.000.00 249,000.000.184%Issuer Subtotal
Issuer: U.S. Treasury Notes
U.S. Treasury Coupon Securities
U.S. Treasury Notes1514 0.001.625 07/31/2020 2,000,000.00 912828XM7
U.S. Treasury Notes1520 0.001.375 08/31/2020 2,000,000.00912828L32
U.S. Treasury Notes1521 0.001.375 09/30/2020 2,000,000.00912828L65
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 50 of 85
Current
Rate
Transaction
Date Balance
Beginning
Balance
Ending
Par Value
Page 13
Percent
of Portfolio
Par Value
July 1, 2020 - June 30, 2021
Activity Report
CUSIP Investment # Issuer
Purchases or
Deposits
Redemptions or
Withdrawals
Issuer: U.S. Treasury Notes
U.S. Treasury Coupon Securities
U.S. Treasury Notes1522 0.001.375 11/02/2020 2,000,000.00912828L99
U.S. Treasury Notes1538 0.002.000 11/30/2020 2,000,000.00912828A42
U.S. Treasury Notes1539 0.001.125 03/01/2021 2,000,000.00912828P87
U.S. Treasury Notes1540 0.001.250 03/31/2021 2,000,000.00912828Q37
U.S. Treasury Notes1576 0.002.000 07/31/2020 2,000,000.00912828VP2
U.S. Treasury Notes1583 0.001.500 07/15/2020 2,000,000.009128282J8
18,000,000.0037,000,000.00 19,000,000.00Subtotal and Balance 0.00
0.00 18,000,000.0037,000,000.00 19,000,000.0014.073%Issuer Subtotal
Issuer: Wells Fargo Bank
Certificates of Deposit - Bank
245,000.00 245,000.00Subtotal and Balance
0.00 0.00245,000.00 245,000.000.181%Issuer Subtotal
Issuer: Winter Hill Bank FSB
Certificates of Deposit - Bank
Winter Hill Bank FSB1526 0.001.800 06/28/2021 245,000.00975875AK1
245,000.00245,000.00 0.00Subtotal and Balance 0.00
0.00 245,000.00245,000.00 0.000.000%Issuer Subtotal
136,439,648.52 135,007,075.27Total129,555,220.12128,122,646.87100.000%
Portfolio FY21
AC
Run Date: 09/23/2021 - 14:37 DA (PRF_DA) 7.2.0
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 51 of 85
Page 1
June 30, 2021
Interest Earnings Summary
Month EndingJune 30 Fiscal Year To Date
Portfolio Management
City of Encinitas-MTH Report
CD/Coupon/Discount Investments:
131,698.90Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
309,043.05
( 333,254.19)
1,489,118.52
309,043.05
( 413,874.80)
Less Accrued Interest at Purchase During Period ( 0.00)( 0.00)
Interest Earned during Period
Adjusted by Premiums and Discounts
Adjusted by Capital Gains or Losses
Earnings during Periods
107,487.76
13,104.62
0.00
1,384,286.77
171,772.14
13,545.92
120,592.38 1,569,604.83
Pass Through Securities:
0.00Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
0.00
( 0.00)
0.00
0.00
( 0.00)
Less Accrued Interest at Purchase During Period ( 0.00)( 0.00)
Interest Earned during Period
Adjusted by Premiums and Discounts
Adjusted by Capital Gains or Losses
Earnings during Periods
0.00
0.00
0.00
0.00
0.00
0.00
0.00 0.00
Cash/Checking Accounts:
257.12Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
37,452.19
( 24,729.11)
297,154.39
37,452.19
( 135,642.66)
Interest Earned during Period 12,980.20 198,963.92
Total Interest Earned during Period
Total Adjustments from Premiums and Discounts
Total Capital Gains or Losses
Total Earnings during Period
120,467.96
13,104.62
0.00
1,583,250.69
171,772.14
13,545.92
133,572.58 1,768,568.75
Portfolio ENCI
ACData Updated: SET_MTH: 08/16/2021 16:58
Run Date: 08/16/2021 - 16:58 PM (PRF_PM6) 7.3.0
Report Ver. 7.3.6.1
3
2021-10-20 Item #08C Page 52 of 85
City of Encinitas
Interest Earnings
CITY OF ENCINITAS
505 S. VULCAN
Encinitas, CA 92024
(760)633-2641Sorted by Security Type - Maturity Date
July 1, 2020 - June 30, 2021
Yield on Beginning Book Value
Maturity
Date
Current
Rate
Ending
Par Value
Ending
IssuerFund Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted InterestAnnualized
YieldCUSIPInvestment #
Interest
Earned
Security Type: Passbook/Checking Accounts
5,038,148.6210105,038,148.62UBCKG 0.00 0.00 0.000013,753,480.12SYS1010
5,038,148.62Subtotal 5,038,148.62 0.000.000.003,753,480.12
Security Type: Local Agency Investment Funds
37,934,591.21101237,934,591.21 0.262LAIF 155,284.22 0.00 155,284.220.42700136,391,523.06SYS1012
37,934,591.21Subtotal 37,934,591.21 0.427 155,284.220.00155,284.2236,391,523.06
Security Type: Managed Pool Accounts
4,208,416.0015844,208,416.00 0.060COUNTY 40,108.63 0.00 40,108.630.9650014,158,198.72SYS1584
1,070,729.9010031,070,729.90 0.050CAMP 1,653.23 0.00 1,653.230.1550011,068,671.50SYS1003
5,279,145.90Subtotal 5,279,145.90 0.799 41,761.860.0041,761.865,226,870.22
Security Type: Money Market Funds
19,380,189.54100419,380,189.54 0.030UBCUST 1,917.84 0.00 1,917.840.0600013,194,775.12SYS1004
19,380,189.54Subtotal 19,380,189.54 0.060 1,917.840.001,917.843,194,775.12
Security Type: Certificates of Deposit - Bank
0.0015310.00 1.900FIRSAV06/23/2021 4,552.99 0.00 4,552.991.900001245,000.00337630BD8
0.0015260.00 1.800WINBNK06/28/2021 4,373.78 0.00 4,373.781.800001245,000.00975875AK1
245,000.001530245,000.00 1.900CITIZN12/30/2021 4,655.01 0.00 4,655.011.900001245,000.0017670DAC8
245,000.001551245,000.00 2.000CNBMET02/03/2022 4,899.97 0.00 4,899.972.000001245,000.0017801GSB7
245,000.001528245,000.00 2.350GSBNK06/21/2022 5,757.50 0.00 5,757.502.350001245,000.0038148PKX4
245,000.001533245,000.00 2.000BKVIST06/30/2022 4,899.98 0.00 4,899.982.000001245,000.0006653ABM5
245,000.001535245,000.00 2.250WFBANK06/30/2022 5,512.46 0.00 5,512.462.250001245,000.00949763JG2
245,000.001553245,000.00 2.300CAPONE07/19/2022 5,635.00 0.00 5,635.002.300001245,000.001404203Q1
245,000.001552245,000.00 2.300CAP1NA07/19/2022 5,635.00 0.00 5,635.002.300001245,000.0014042RGN5
245,000.001554245,000.00 2.150TIAAFS07/19/2022 5,267.50 0.00 5,267.502.150001245,000.0087270LAD5
249,000.001561249,000.00 2.900MEDALL03/28/2023 7,221.01 0.00 7,221.012.900001249,000.0058404DBL4
246,000.001562246,000.00 2.900BMWBNK03/29/2023 7,134.00 0.00 7,134.002.900001246,000.0005580AMB7
Portfolio ENCI
AC
Run Date: 08/16/2021 - 17:05 IE (PRF_IE) 7.2.0
Report Ver. 7.3.6.1
4
2021-10-20 Item #08C Page 53 of 85
Maturity
Date
Current
Rate
Ending
Par Value
Ending
IssuerFund
Page 2
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
July 1, 2020 - June 30, 2021
Interest Earnings
City of Encinitas
Annualized
YieldCUSIPInvestment #
Interest
Earned
Security Type: Certificates of Deposit - Bank
246,000.001563246,000.00 2.850CITIBK03/29/2023 7,011.00 0.00 7,011.002.850001246,000.0017312QH69
249,000.001564249,000.00 2.900INDUST03/29/2023 7,221.01 0.00 7,221.012.900001249,000.0045581EAS0
246,000.001565246,000.00 2.900MORSTN03/29/2023 7,134.00 0.00 7,134.002.900001246,000.0061747MR37
246,000.001566246,000.00 2.800LCABNK03/29/2023 6,888.00 0.00 6,888.002.800001246,000.00501798LT7
246,000.001568246,000.00 2.850ENERBK03/29/2023 7,011.00 0.00 7,011.002.850001246,000.0029278TAU4
246,000.001569246,000.00 2.850FSRCBK04/11/2023 7,011.00 0.00 7,011.002.850001246,000.0033646CJP0
249,000.001596249,000.00 2.250DENSVB06/21/2023 5,602.51 0.00 5,602.512.250001249,000.00249398BT4
245,000.001580245,000.00 3.300AMEXNL06/26/2023 8,085.00 0.00 8,085.003.300001245,000.0002589AAM4
245,000.001570245,000.00 3.300SMAEBN06/27/2023 8,085.00 0.00 8,085.003.300001245,000.00795450S89
245,000.001571245,000.00 3.300COMNTY06/29/2023 8,084.99 0.00 8,084.993.300001245,000.0020033AZK5
249,000.001619249,000.00 0.900ALMABK09/29/2023 2,240.98 0.00 2,240.980.900001249,000.00020080BU0
249,000.001609249,000.00 1.700FIRSTS11/15/2023 4,233.04 0.00 4,233.041.700001249,000.0033640VDE5
249,000.001597249,000.00 2.400MERRBK12/28/2023 5,976.00 0.00 5,976.002.400001249,000.0059013KAR7
246,000.001585246,000.00 2.900BKHAPO03/25/2024 7,134.00 0.00 7,134.002.900001246,000.0006251AW48
249,000.001616249,000.00 1.000FORTUB03/27/2024 2,490.01 0.00 2,490.011.000001249,000.0034969RCS5
249,000.001625249,000.00 1.150NCBS03/28/2024 2,863.51 0.00 2,863.511.150001249,000.00654062JR0
249,000.001623249,000.00 1.100CRNHSK03/29/2024 2,739.00 0.00 2,739.001.100001249,000.00219255AK2
246,000.001593246,000.00 2.600MGSTPB06/13/2024 6,396.00 0.00 6,396.002.600001246,000.0061760AG52
249,000.001594249,000.00 2.300EGLEBK06/20/2024 5,726.97 0.00 5,726.972.300001249,000.0027002YEQ5
249,000.001595249,000.00 2.300CMBKGN06/26/2024 5,726.97 0.00 5,726.972.300001249,000.00200056QRZ8
249,000.001598249,000.00 2.300FSBDQ06/28/2024 5,726.97 0.00 5,726.972.300001249,000.00336460CQ1
247,000.001599247,000.00 2.300RVBANK06/28/2024 5,681.00 0.00 5,681.002.300001247,000.00761400BY1
249,000.001618249,000.00 1.000LEGEND09/30/2024 2,490.02 0.00 2,490.021.000001249,000.0052465JHT7
249,000.001624249,000.00 1.000PEBATN09/30/2024 2,490.02 0.00 2,490.021.000001249,000.00710673AC8
249,000.001626249,000.00 0.400FLGSB09/30/2024 747.68 0.00 747.680.4000010.0033847E4E4
249,000.001611249,000.00 1.650POPBK11/04/2024 4,108.47 0.00 4,108.471.650001249,000.0073319FAD1
249,000.001607249,000.00 1.800ENTERB11/08/2024 4,481.96 0.00 4,481.961.800001249,000.0029367SJQ8
249,000.001610249,000.00 1.650COMMBK11/08/2024 4,108.47 0.00 4,108.471.650001249,000.00203522AT4
249,000.001612249,000.00 1.800TRIADB11/08/2024 4,481.96 0.00 4,481.961.800001249,000.0089579NCB7
249,000.001613249,000.00 1.650PADUCA11/08/2024 4,108.47 0.00 4,108.471.650001249,000.00695292FP2
249,000.001615249,000.00 1.000EVRGRN03/26/2025 2,490.01 0.00 2,490.011.000001249,000.00300185JF3
249,000.001617249,000.00 1.000MIDCBK03/27/2025 2,490.01 0.00 2,490.011.000001249,000.0059565QCS2
248,000.001620248,000.00 1.000CTRSTE03/31/2025 2,480.00 0.00 2,480.001.000001248,000.0015201QCJ4
249,000.001621249,000.00 1.150PACENT03/31/2025 2,863.51 0.00 2,863.511.150001249,000.00694231AD3
249,000.001622249,000.00 1.100LIVOAK03/31/2025 2,739.01 0.00 2,739.011.100001249,000.00538036KU7
249,000.001627249,000.00 0.400LUANSB10/02/2025 742.23 0.00 742.230.4000010.00549104SS7
249,000.001629249,000.00 0.400FSECWA10/15/2025 624.88 0.00 624.880.4000010.0033625CDV8
Portfolio ENCI
AC
Run Date: 08/16/2021 - 17:05 IE (PRF_IE) 7.2.0
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 54 of 85
Maturity
Date
Current
Rate
Ending
Par Value
Ending
IssuerFund
Page 3
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
July 1, 2020 - June 30, 2021
Interest Earnings
City of Encinitas
Annualized
YieldCUSIPInvestment #
Interest
Earned
Security Type: Certificates of Deposit - Bank
249,000.001628249,000.00 0.400LDMCB10/29/2025 665.80 0.00 665.800.4000010.0051507LBZ6
249,000.001630249,000.00 0.400USBI11/18/2025 611.23 0.00 611.230.4000010.0033744AAW9
249,000.001631249,000.00 0.450KANBNK11/28/2025 650.84 0.00 650.840.4500010.0050116CCP2
249,000.001632249,000.00 0.750UBS06/23/2026 35.81 0.00 35.810.7500010.0090348JN48
249,000.001633249,000.00 0.700NYCB07/01/2026 4.78 0.00 4.780.7010010.00649447UZ0
12,877,000.00Subtotal 12,877,000.00 1.925 238,027.320.00238,027.3211,375,000.00
Security Type: Negotiable CDs
249,000.001614249,000.00 1.600CELTIC10/30/2023 3,984.00 0.00 3,984.001.600001249,000.0015118RSN8
249,000.001608249,000.00 1.850FBPR10/25/2024 4,606.54 0.00 4,606.541.850001249,000.0033767GAMO
498,000.00Subtotal 498,000.00 1.725 8,590.540.008,590.54498,000.00
Security Type: U.S. Treasury Coupon Securities
0.0015830.00 1.500UST07/15/2020 1,153.85 765.19 1,919.042.5030011,999,234.819128282J8
0.0015760.00 2.000UST07/31/2020 3,296.70 844.48 4,141.182.5200011,999,155.52912828VP2
0.0015140.00 1.625UST07/31/2020 2,678.57 -761.27 1,917.301.1660012,000,761.27 912828XM7
0.0015200.00 1.375UST08/31/2020 4,558.42 661.34 5,219.761.5620011,999,338.66912828L32
0.0015210.00 1.375UST09/30/2020 6,837.43 1,051.65 7,889.081.5830011,998,948.35912828L65
0.0015220.00 1.375UST10/31/2020 9,116.85 1,567.29 10,684.141.5990011,998,432.71912828L99
0.0015380.00 2.000UST11/30/2020 16,612.02 -3,493.21 13,118.811.5720012,003,493.21912828A42
0.0015390.00 1.125UST02/28/2021 14,979.62 6,203.39 21,183.011.6020011,993,796.61912828P87
0.0015400.00 1.250UST03/31/2021 18,715.85 5,285.40 24,001.251.6090011,994,714.60912828Q37
1,998,962.4315232,000,000.00 1.125UST07/31/2021 22,489.76 12,623.76 35,113.521.7680011,986,338.67912828S76
1,993,350.1715562,000,000.00 1.125UST09/30/2021 22,500.00 26,672.41 49,172.412.5000011,966,677.76912828T34
1,995,869.5315742,000,000.00 2.000UST10/31/2021 40,000.00 12,357.55 52,357.552.6400011,983,511.98912828F96
3,971,285.9315784,000,000.00 2.000UST07/31/2022 79,963.58 26,533.26 106,496.842.7000013,944,752.67912828XQ8
1,981,692.0415722,000,000.00 1.875UST08/31/2022 37,500.00 15,686.39 53,186.392.7050011,966,005.65912828L24
1,980,414.2615792,000,000.00 1.875UST09/30/2022 37,500.00 15,677.19 53,177.192.7070011,964,737.079128282W9
2,944,777.8815923,000,000.00 1.250UST07/31/2023 37,482.93 26,521.15 64,004.082.1930012,918,256.73912828S92
1,985,269.1116042,000,000.00 1.375UST08/31/2023 27,500.00 6,797.43 34,297.431.7340011,978,471.689128282D1
19,000,000.00Subtotal 18,851,621.35 2.217 537,878.98154,993.40382,885.5836,696,627.95
Security Type: Federal Agency Coupon Securities
0.0015340.00 1.650FFCRED06/21/2021 32,083.33 1,385.42 33,468.751.7220011,998,614.583133EHNX7
1,999,540.1415242,000,000.00 1.125FHLB07/14/2021 22,500.00 12,734.63 35,234.631.7730011,986,805.513130A8QS5
2,000,228.9915372,000,000.00 1.875FHLMC07/27/2021 37,500.00 -3,170.64 34,329.361.7140012,003,399.633134G9N94
1,997,032.3715572,000,000.00 1.125FHLMC08/12/2021 22,500.00 26,057.19 48,557.192.4640011,970,975.183137EAEC9
Portfolio ENCI
AC
Run Date: 08/16/2021 - 17:05 IE (PRF_IE) 7.2.0
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 55 of 85
Maturity
Date
Current
Rate
Ending
Par Value
Ending
IssuerFund
Page 4
Book Value
Beginning
Book Value
Adjusted Interest Earnings
Accretion
Amortization/
Earnings
Adjusted Interest
July 1, 2020 - June 30, 2021
Interest Earnings
City of Encinitas
Annualized
YieldCUSIPInvestment #
Interest
Earned
Security Type: Federal Agency Coupon Securities
1,998,811.8115752,000,000.00 2.375FHLB09/10/2021 47,500.00 6,199.23 53,699.232.6950011,992,612.58313378JP7
1,994,967.3515552,000,000.00 1.875FHLB11/29/2021 37,500.00 12,241.60 49,741.602.5090011,982,725.753130AABG2
2,002,343.5815882,000,000.00 2.420FHLB02/15/2022 48,400.00 -3,766.48 44,633.522.2250012,006,110.063130AG3Y9
2,005,637.7416012,000,000.00 2.200FFCB02/28/2022 44,000.00 -8,563.66 35,436.341.7590012,014,201.403133EKNM4
2,004,369.6415362,000,000.00 2.150FFCRED03/15/2022 43,000.00 -6,193.18 36,806.821.8310012,010,562.823133EHCT8
1,999,451.0315732,000,000.00 2.750FHLB06/10/2022 55,000.00 582.98 55,582.982.7810011,998,868.053130AEBM1
0.0015600.00 2.220FHLMC07/01/2022 0.00 0.00 0.00248.8990011,986,454.083134GSAX3
1,003,169.5316031,000,000.00 2.000FNMA10/05/2022 20,000.00 -2,513.28 17,486.721.7390011,005,682.813135G0T78
1,995,409.8715892,000,000.00 2.000FNMA10/05/2022 40,000.00 3,639.74 43,639.742.1910011,991,770.133135G0T78
1,009,971.4416001,000,000.00 2.600FFCRED10/06/2022 26,000.00 -7,889.49 18,110.511.7790011,017,860.933133EDWW8
1,977,101.7515582,000,000.00 1.820FFCRED11/23/2022 36,400.00 16,421.05 52,821.052.6940011,960,680.703133EC4Q4
2,008,760.8315902,000,000.00 2.500FFCRED02/02/2023 50,000.00 -5,523.47 44,476.532.2080012,014,284.303133EJBP3
3,997,710.0116054,000,000.00 1.770FFCRED06/26/2023 70,800.00 1,153.00 71,953.001.8000013,996,557.013133EKSN7
995,598.8115911,000,000.00 2.010FFCB07/26/2023 20,100.00 2,126.74 22,226.742.237001993,472.073133EHST1
2,045,237.2716022,000,000.00 2.875FNMA09/12/2023 57,500.00 -20,588.39 36,911.611.7870012,065,825.663135G0U43
2,017,626.5816062,000,000.00 2.200FFCB11/01/2023 44,000.00 -7,554.25 36,445.751.8000012,025,180.833133EHN25
35,000,000.00Subtotal 35,052,968.74 2.086 771,562.0716,778.74754,783.3339,022,644.08
135,007,075.27Total 134,911,665.36 1.431 1,755,022.83171,772.141,583,250.69136,158,920.55
Portfolio ENCI
AC
Run Date: 08/16/2021 - 17:05 IE (PRF_IE) 7.2.0
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 56 of 85
CITY OF ENCINITAS
505 S. VULCAN
Encinitas, CA 92024
(760)633-2641
City of Encinitas
Purchases Report
Sorted by Security Type - Purchase Date
July 1, 2020 - June 30, 2021
Original
Par Value
Ending
Book Value
Sec.
TypeFund
Maturity
YTM
Accrued Interest
at PurchasePayment Periods DateCUSIPInvestment #Issuer
Purchase
Date
Principal
Purchased
Rate at
Purchase
Certificates of Deposit - Bank
249,000.00 0.400 09/30/2024 249,000.00249,000.0009/30/2020 0.40003/30 - 09/30FLGSB162633847E4E4BCD001
249,000.00 0.400 10/02/2025 249,000.00249,000.0010/02/2020 0.40004/02 - 10/02LUANSB1627549104SS7BCD001
249,000.00 0.400 10/29/2025 249,000.00249,000.0010/29/2020 0.40011/29 - MonthlyLDMCB162851507LBZ6BCD001
249,000.00 0.400 10/15/2025 249,000.00249,000.0011/13/2020 0.40012/13 - MonthlyFSECWA162933625CDV8BCD001
249,000.00 0.400 11/18/2025 249,000.00249,000.0011/18/2020 0.40012/18 - MonthlyUSBI163033744AAW9BCD001
249,000.00 0.450 11/28/2025 249,000.00249,000.0011/30/2020 0.45012/30 - MonthlyKANBNK163150116CCP2BCD001
249,000.00 0.750 06/23/2026 249,000.00249,000.0006/23/2021 0.75007/23 - MonthlyUBS163290348JN48BCD001
249,000.00 0.700 07/01/2026 249,000.00249,000.0006/30/2021 0.70012/30 - 06/30NYCB1633649447UZ0BCD001
Subtotal 1,992,000.001,992,000.00 0.001,992,000.00
1,992,000.00Total Purchases 1,992,000.00 0.00 1,992,000.00
Portfolio ENCI
AC
Run Date: 08/24/2021 - 11:07 PU (PRF_PU) 7.1.1
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 57 of 85
City of Encinitas
Accrued Interest
CITY OF ENCINITAS
505 S. VULCAN
Encinitas, CA 92024
(760)633-2641Sorted by Security Type - Maturity Date
July 1, 2020 - June 30, 2021
Maturity
Date
Security
Type
Current
Rate
Par
Value
* Beginning
Accrued Interest
* Ending
Accrued Interest
Adjusted Acc'd Int.
at Purchase
During PeriodCUSIPInvestment #
Interest
Earned
Interest
Received
Local Agency Investment Funds
117,588.911012SYS101237,934,591.21 0.262LA5 155,284.22 243,068.15 29,804.980.00
117,588.9137,934,591.21Subtotal 29,804.98155,284.22 243,068.150.00
Managed Pool Accounts
449.381003SYS10031,070,729.90 0.050LA1 1,653.23 2,058.40 44.210.00
17,389.501584SYS15844,208,416.00 0.060LA1 40,108.63 50,217.28 7,280.850.00
17,838.885,279,145.90Subtotal 7,325.0641,761.86 52,275.680.00
Money Market Funds
214.851004SYS100419,380,189.54 0.030LA3 1,917.84 1,810.56 322.130.00
214.8519,380,189.54Subtotal 322.131,917.84 1,810.560.00
Certificates of Deposit - Bank
102.031531337630BD80.00 1.900BCD06/23/2021 4,552.99 4,655.02 0.000.00
60.411526975875AK10.00 1.800BCD06/28/2021 4,373.78 4,434.19 0.000.00
12.76153017670DAC8245,000.00 1.900BCD12/30/2021 4,655.01 4,655.01 12.760.00
375.90155117801GSB7245,000.00 2.000BCD02/03/2022 4,899.97 4,899.97 375.900.00
157.74152838148PKX4245,000.00 2.350BCD06/21/2022 5,757.50 5,757.50 157.740.00
13.42153306653ABM5245,000.00 2.000BCD06/30/2022 4,899.98 4,899.98 13.420.00
14.931535949763JG2245,000.00 2.250BCD06/30/2022 5,512.46 5,512.52 14.870.00
2,531.89155214042RGN5245,000.00 2.300BCD07/19/2022 5,635.00 5,650.44 2,516.450.00
2,531.8915531404203Q1245,000.00 2.300BCD07/19/2022 5,635.00 5,650.44 2,516.450.00
2,366.76155487270LAD5245,000.00 2.150BCD07/19/2022 5,267.50 5,281.93 2,352.330.00
59.35156158404DBL4249,000.00 2.900BCD03/28/2023 7,221.01 7,221.01 59.350.00
1,837.25156205580AMB7246,000.00 2.900BCD03/29/2023 7,134.00 7,134.00 1,837.250.00
1,805.57156317312QH69246,000.00 2.850BCD03/29/2023 7,011.00 7,011.00 1,805.570.00
1,805.57156829278TAU4246,000.00 2.850BCD03/29/2023 7,011.00 7,011.00 1,805.570.00
39.56156445581EAS0249,000.00 2.900BCD03/29/2023 7,221.01 7,221.01 39.560.00
1,773.901566501798LT7246,000.00 2.800BCD03/29/2023 6,888.00 6,888.00 1,773.900.00
1,837.25156561747MR37246,000.00 2.900BCD03/29/2023 7,134.00 7,134.00 1,837.250.00
1,555.86156933646CJP0246,000.00 2.850BCD04/11/2023 7,011.00 7,011.00 1,555.860.00
138.141596249398BT4249,000.00 2.250BCD06/21/2023 5,602.51 5,602.51 138.140.00
110.75158002589AAM4245,000.00 3.300BCD06/26/2023 8,085.00 8,085.00 110.750.00
88.601570795450S89245,000.00 3.300BCD06/27/2023 8,085.00 8,085.00 88.600.00
44.30157120033AZK5245,000.00 3.300BCD06/29/2023 8,084.99 8,084.99 44.300.00
Portfolio ENCI
AC
Run Date: 08/16/2021 - 17:09 AI (PRF_AI) 7.2.8
Report Ver. 7.3.6.1
* Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Ending Accrued includes outstanding purchase interest.
9
2021-10-20 Item #08C Page 58 of 85
Maturity
Date
Security
Type
Current
Rate
Par
Value
Sorted by Security Type - Maturity Date Page 2
* Beginning
Accrued Interest
* Ending
Accrued Interest
Adjusted Acc'd Int.
at Purchase
During Period
Accrued Interest
City of Encinitas
CUSIP Investment #
Interest
Earned
Interest
Received
Certificates of Deposit - Bank
0.001619020080BU0249,000.00 0.900BCD09/29/2023 2,240.98 2,240.98 0.000.00
173.96160933640VDE5249,000.00 1.700BCD11/15/2023 4,233.04 4,233.04 173.960.00
32.75159759013KAR7249,000.00 2.400BCD12/28/2023 5,976.00 5,976.00 32.750.00
1,915.43158506251AW48246,000.00 2.900BCD03/25/2024 7,134.00 7,134.00 1,915.430.00
20.47161634969RCS5249,000.00 1.000BCD03/27/2024 2,490.01 2,490.01 20.470.00
-7.841625654062JR0249,000.00 1.150BCD03/28/2024 2,863.51 2,871.35 -15.680.00
0.001623219255AK2249,000.00 1.100BCD03/29/2024 2,739.00 2,739.00 0.000.00
315.42159361760AG52246,000.00 2.600BCD06/13/2024 6,396.00 6,396.00 315.420.00
156.90159427002YEQ5249,000.00 2.300BCD06/20/2024 5,726.97 5,726.97 156.900.00
62.761595200056QRZ8249,000.00 2.300BCD06/26/2024 5,726.97 5,726.97 62.760.00
31.381598336460CQ1249,000.00 2.300BCD06/28/2024 5,726.97 5,726.97 31.380.00
46.691599761400BY1247,000.00 2.300BCD06/28/2024 5,681.00 5,681.00 46.690.00
0.00162633847E4E4249,000.00 0.400BCD09/30/2024 747.68 493.91 253.770.00
0.00161852465JHT7249,000.00 1.000BCD09/30/2024 2,490.02 2,490.02 0.000.00
-6.821624710673AC8249,000.00 1.000BCD09/30/2024 2,490.02 2,496.83 -13.630.00
292.66161173319FAD1249,000.00 1.650BCD11/04/2024 4,108.47 4,108.47 292.660.00
247.631610203522AT4249,000.00 1.650BCD11/08/2024 4,108.47 4,108.47 247.630.00
270.15160729367SJQ8249,000.00 1.800BCD11/08/2024 4,481.96 4,481.96 270.150.00
247.631613695292FP2249,000.00 1.650BCD11/08/2024 4,108.47 4,108.47 247.630.00
270.15161289579NCB7249,000.00 1.800BCD11/08/2024 4,481.96 4,481.96 270.150.00
27.291615300185JF3249,000.00 1.000BCD03/26/2025 2,490.01 2,490.01 27.290.00
20.47161759565QCS2249,000.00 1.000BCD03/27/2025 2,490.01 2,490.01 20.470.00
631.89162015201QCJ4248,000.00 1.000BCD03/31/2025 2,480.00 2,480.00 631.890.00
217.621622538036KU7249,000.00 1.100BCD03/31/2025 2,739.01 2,739.01 217.620.00
0.001621694231AD3249,000.00 1.150BCD03/31/2025 2,863.51 2,863.51 0.000.00
0.001627549104SS7249,000.00 0.400BCD10/02/2025 742.23 496.64 245.590.00
0.00162933625CDV8249,000.00 0.400BCD10/15/2025 624.88 578.49 46.390.00
0.00162851507LBZ6249,000.00 0.400BCD10/29/2025 665.80 663.07 2.730.00
0.00163033744AAW9249,000.00 0.400BCD11/18/2025 611.23 578.49 32.740.00
0.00163150116CCP2249,000.00 0.450BCD11/28/2025 650.84 650.84 0.000.00
0.00163290348JN48249,000.00 0.750BCD06/23/2026 35.81 0.00 35.810.00
0.001633649447UZ0249,000.00 0.700BCD07/01/2026 4.78 0.00 4.780.00
24,230.4212,877,000.00Subtotal 24,629.77238,027.32 237,627.970.00
Negotiable CDs
10.92161415118RSN8249,000.00 1.600NCB10/30/2023 3,984.00 3,984.01 10.910.00
75.72160833767GAMO249,000.00 1.850NCB10/25/2024 4,606.54 4,606.54 75.720.00
86.64498,000.00Subtotal 86.638,590.54 8,590.550.00
Portfolio ENCI
AC
Run Date: 08/16/2021 - 17:09 AI (PRF_AI) 7.2.8
Report Ver. 7.3.6.1
* Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Ending Accrued includes outstanding purchase interest.
2021-10-20 Item #08C Page 59 of 85
Maturity
Date
Security
Type
Current
Rate
Par
Value
Sorted by Security Type - Maturity Date Page 3
* Beginning
Accrued Interest
* Ending
Accrued Interest
Adjusted Acc'd Int.
at Purchase
During Period
Accrued Interest
City of Encinitas
CUSIP Investment #
Interest
Earned
Interest
Received
U.S. Treasury Coupon Securities
13,846.1515839128282J80.00 1.500TRC07/15/2020 1,153.85 15,000.00 0.000.00
13,571.431514 912828XM7 0.00 1.625TRC07/31/2020 2,678.57 16,250.00 0.000.00
16,703.301576912828VP20.00 2.000TRC07/31/2020 3,296.70 20,000.00 0.000.00
9,191.581520912828L320.00 1.375TRC08/31/2020 4,558.42 13,750.00 0.000.00
6,912.571521912828L650.00 1.375TRC09/30/2020 6,837.43 13,750.00 0.000.00
4,633.151522912828L990.00 1.375TRC10/31/2020 9,116.85 13,750.00 0.000.00
3,387.981538912828A420.00 2.000TRC11/30/2020 16,612.02 20,000.00 0.000.00
7,520.381539912828P870.00 1.125TRC02/28/2021 14,979.62 22,500.00 0.000.00
6,284.151540912828Q370.00 1.250TRC03/31/2021 18,715.85 25,000.00 0.000.00
9,395.601523912828S762,000,000.00 1.125TRC07/31/2021 22,489.76 22,500.00 9,385.360.00
5,655.741556912828T342,000,000.00 1.125TRC09/30/2021 22,500.00 22,500.00 5,655.740.00
6,739.131574912828F962,000,000.00 2.000TRC10/31/2021 40,000.00 40,000.00 6,739.130.00
33,406.591578912828XQ84,000,000.00 2.000TRC07/31/2022 79,963.58 80,000.00 33,370.170.00
12,533.971572912828L242,000,000.00 1.875TRC08/31/2022 37,500.00 37,500.00 12,533.970.00
9,426.2315799128282W92,000,000.00 1.875TRC09/30/2022 37,500.00 37,500.00 9,426.230.00
15,659.341592912828S923,000,000.00 1.250TRC07/31/2023 37,482.93 37,500.00 15,642.270.00
9,191.5816049128282D12,000,000.00 1.375TRC08/31/2023 27,500.00 27,500.00 9,191.580.00
184,058.8719,000,000.00Subtotal 101,944.45382,885.58 465,000.000.00
Federal Agency Coupon Securities
916.6715343133EHNX70.00 1.650FAC06/21/2021 32,083.33 33,000.00 0.000.00
10,437.5015243130A8QS52,000,000.00 1.125FAC07/14/2021 22,500.00 22,500.00 10,437.500.00
16,041.6715373134G9N942,000,000.00 1.875FAC07/27/2021 37,500.00 37,500.00 16,041.670.00
8,687.5015573137EAEC92,000,000.00 1.125FAC08/12/2021 22,500.00 22,500.00 8,687.500.00
15,305.551575313378JP72,000,000.00 2.375FAC09/10/2021 47,500.00 47,500.00 15,305.550.00
3,333.3315553130AABG22,000,000.00 1.875FAC11/29/2021 37,500.00 37,500.00 3,333.330.00
18,284.4415883130AG3Y92,000,000.00 2.420FAC02/15/2022 48,400.00 48,400.00 18,284.440.00
15,033.3316013133EKNM42,000,000.00 2.200FAC02/28/2022 44,000.00 44,000.00 15,033.330.00
12,661.1115363133EHCT82,000,000.00 2.150FAC03/15/2022 43,000.00 43,000.00 12,661.110.00
3,208.3315733130AEBM12,000,000.00 2.750FAC06/10/2022 55,000.00 55,000.00 3,208.330.00
22,200.0015603134GSAX30.00 2.220FAC07/01/2022 0.00 22,200.00 0.000.00
9,555.5615893135G0T782,000,000.00 2.000FAC10/05/2022 40,000.00 40,000.00 9,555.560.00
4,777.7816033135G0T781,000,000.00 2.000FAC10/05/2022 20,000.00 20,000.00 4,777.780.00
6,138.8916003133EDWW81,000,000.00 2.600FAC10/06/2022 26,000.00 26,000.00 6,138.890.00
3,842.2215583133EC4Q42,000,000.00 1.820FAC11/23/2022 36,400.00 36,400.00 3,842.220.00
20,694.4415903133EJBP32,000,000.00 2.500FAC02/02/2023 50,000.00 50,000.00 20,694.440.00
983.3316053133EKSN74,000,000.00 1.770FAC06/26/2023 70,800.00 70,800.00 983.330.00
8,654.1715913133EHST11,000,000.00 2.010FAC07/26/2023 20,100.00 20,100.00 8,654.170.00
17,409.7216023135G0U432,000,000.00 2.875FAC09/12/2023 57,500.00 57,500.00 17,409.720.00
Portfolio ENCI
AC
Run Date: 08/16/2021 - 17:09 AI (PRF_AI) 7.2.8
Report Ver. 7.3.6.1
* Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Ending Accrued includes outstanding purchase interest.
2021-10-20 Item #08C Page 60 of 85
Maturity
Date
Security
Type
Current
Rate
Par
Value
Sorted by Security Type - Maturity Date Page 4
* Beginning
Accrued Interest
* Ending
Accrued Interest
Adjusted Acc'd Int.
at Purchase
During Period
Accrued Interest
City of Encinitas
CUSIP Investment #
Interest
Earned
Interest
Received
Federal Agency Coupon Securities
7,333.3316063133EHN252,000,000.00 2.200FAC11/01/2023 44,000.00 44,000.00 7,333.330.00
205,498.8735,000,000.00Subtotal 182,382.20754,783.33 777,900.000.00
0.00129,968,926.65Total 346,495.221,583,250.69 1,786,272.91549,517.44
Portfolio ENCI
AC
Run Date: 08/16/2021 - 17:09 AI (PRF_AI) 7.2.8
Report Ver. 7.3.6.1
* Beginning Accrued may not include investments that redeemed in the previous month that had outstanding accrued interest. Ending Accrued includes outstanding purchase interest.
2021-10-20 Item #08C Page 61 of 85
Open Positions through June 30, 2021
Unrealized Gains and Losses
Page 1
Investment #
Current Rate
Par Value
Book Value
Unrealized
Gain/Loss
To Date
Earnings
Actual
Yield 365
Inv.
Type
Purchase
Date
To Date
Net EarningsIssuer
Maturity Date Term
Days Held
Market Value
Market Date
Certificates of Deposit - Bank
245,000.001530
1.900
245,000.00 247,266.25 2,266.25BCD 18,645.55 20,911.8006/30/2017 2.131
Citizens State Bankl
12/30/2021 1,644
1,462 06/30/2021
245,000.001551
2.000
245,000.00 247,822.40 2,822.40BCD 19,586.47 22,408.8707/03/2017 2.288
City National Bank Metropolis
02/03/2022 1,676
1,459 06/30/2021
245,000.001528
2.350
245,000.00 250,441.45 5,441.45BCD 23,203.52 28,644.9706/21/2017 2.901
Goldman Sachs Bank USA
06/21/2022 1,826
1,471 06/30/2021
245,000.001533
2.000
245,000.00 249,667.25 4,667.25BCD 19,626.76 24,294.0106/30/2017 2.476
BankVista
06/30/2022 1,826
1,462 06/30/2021
245,000.001535
2.250
245,000.00 250,279.75 5,279.75BCD 22,080.04 27,359.7906/30/2017 2.788
Wells Fargo Bank
06/30/2022 1,826
1,462 06/30/2021
245,000.001552
2.300
245,000.00 250,666.85 5,666.85BCD 22,277.55 27,944.4007/19/2017 2.885
Capital One NA
07/19/2022 1,826
1,443 06/30/2021
245,000.001553
2.300
245,000.00 250,666.85 5,666.85BCD 22,277.55 27,944.4007/19/2017 2.885
Capital One Bank USA, NA
07/19/2022 1,826
1,443 06/30/2021
245,000.001554
2.150
245,000.00 250,282.20 5,282.20BCD 20,824.66 26,106.8607/19/2017 2.695
TIAA FSB
07/19/2022 1,826
1,443 06/30/2021
249,000.001561
2.900
249,000.00 260,745.33 11,745.33BCD 23,562.25 35,307.5803/28/2018 4.346
Medallion Bank UT
03/28/2023 1,826
1,191 06/30/2021
246,000.001562
2.900
246,000.00 257,653.02 11,653.02BCD 23,258.80 34,911.8203/29/2018 4.353
BMW Bank North America
03/29/2023 1,826
1,190 06/30/2021
246,000.001563
2.850
246,000.00 257,436.54 11,436.54BCD 22,857.78 34,294.3203/29/2018 4.276
Citi Bank NA
03/29/2023 1,826
1,190 06/30/2021
246,000.001568
2.850
246,000.00 257,436.54 11,436.54BCD 22,857.78 34,294.3203/29/2018 4.276
Enerbank USA
03/29/2023 1,826
1,190 06/30/2021
249,000.001564
2.900
249,000.00 260,762.76 11,762.76BCD 23,542.46 35,305.2203/29/2018 4.349
Industrial & Comm Bank China
03/29/2023 1,826
1,190 06/30/2021
246,000.001566
2.800
246,000.00 257,222.52 11,222.52BCD 22,456.77 33,679.2903/29/2018 4.199
LCA Bank Corp
03/29/2023 1,826
1,190 06/30/2021
246,000.001565
2.900
246,000.00 257,653.02 11,653.02BCD 23,258.80 34,911.8203/29/2018 4.353
Morgan Stanley Bank
03/29/2023 1,826
1,190 06/30/2021
246,000.001569
2.850
246,000.00 257,633.34 11,633.34BCD 22,608.06 34,241.4004/11/2018 4.317
First Source Bank
04/11/2023 1,826
1,177 06/30/2021
249,000.001596
2.250
249,000.00 258,952.53 9,952.53BCD 11,358.51 21,311.0406/21/2019 4.221
Denver Savings Bank
06/21/2023 1,461
740 06/30/2021
Portfolio ENCI
AC
Run Date: 08/24/2021 - 11:22 CG (PRF_CGU1) 7.1.1
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 62 of 85
Investment #
Unrealized Gains and Losses
Current Rate
Par Value
Book Value
Unrealized
Gain/Loss
To Date
Earnings
Actual
Yield 365
Page 2Open Positions through June 30, 2021
Inv.
Type
Purchase
Date
To Date
Net EarningsIssuer
Maturity Date Term
Days Held
Market Value
Market Date
Certificates of Deposit - Bank
245,000.001580
3.300
245,000.00 260,011.15 15,011.15BCD 24,387.91 39,399.0606/26/2018 5.331
American Express National Bank
06/26/2023 1,826
1,101 06/30/2021
245,000.001570
3.300
245,000.00 260,030.75 15,030.75BCD 24,365.76 39,396.5106/27/2018 5.336
Sallie Mae Bank/Murray
06/27/2023 1,826
1,100 06/30/2021
245,000.001571
3.300
245,000.00 260,013.60 15,013.60BCD 24,321.42 39,335.0206/29/2018 5.337
Comenity Capital Bank
06/29/2023 1,826
1,098 06/30/2021
249,000.001619
0.900
249,000.00 252,650.34 3,650.34BCD 2,805.83 6,456.1703/30/2020 2.071
ALMA BANK
09/29/2023 1,278
457 06/30/2021
249,000.001609
1.700
249,000.00 257,503.35 8,503.35BCD 6,877.24 15,380.5911/15/2019 3.802
FIRST SERVICE BANK
11/15/2023 1,461
593 06/30/2021
249,000.001597
2.400
249,000.00 262,199.49 13,199.49BCD 12,001.13 25,200.6206/28/2019 5.040
Merrick Bank
12/28/2023 1,644
733 06/30/2021
246,000.001585
2.900
246,000.00 263,532.42 17,532.42BCD 16,202.98 33,735.4003/25/2019 6.038
BANK HAPOALIM BM NY
03/25/2024 1,827
829 06/30/2021
249,000.001616
1.000
249,000.00 253,835.58 4,835.58BCD 3,138.10 7,973.6803/27/2020 2.541
FORTUNE BANK ARNOLD
03/27/2024 1,461
460 06/30/2021
249,000.001625
1.150
249,000.00 254,861.46 5,861.46BCD 3,577.43 9,438.8903/31/2020 3.034
NICOLET NATIONAL BANK
03/28/2024 1,458
456 06/30/2021
249,000.001623
1.100
249,000.00 254,525.31 5,525.31BCD 3,429.38 8,954.6903/30/2020 2.872
CORNHUSKER BANK
03/29/2024 1,460
457 06/30/2021
246,000.001593
2.600
246,000.00 262,614.84 16,614.84BCD 13,124.94 29,739.7806/13/2019 5.891
MORGAN STANLEY PRIVATE BANK
06/13/2024 1,827
749 06/30/2021
249,000.001594
2.300
249,000.00 263,668.59 14,668.59BCD 11,626.53 26,295.1206/20/2019 5.202
EAGLEBANK
06/20/2024 1,827
741 06/30/2021
249,000.001595
2.300
249,000.00 263,740.80 14,740.80BCD 11,532.39 26,273.1906/26/2019 5.240
COMMERCE BANK GENEVA MN
06/26/2024 1,827
735 06/30/2021
249,000.001598
2.300
249,000.00 263,763.21 14,763.21BCD 11,501.01 26,264.2206/28/2019 5.252
First State Bank Dequeen
06/28/2024 1,827
733 06/30/2021
247,000.001599
2.300
247,000.00 261,676.74 14,676.74BCD 11,424.25 26,100.9906/28/2019 5.255
REVERE BANK
06/28/2024 1,827
734 06/30/2021
249,000.001626
0.400
249,000.00 249,410.85 410.85BCD 747.68 1,158.5309/30/2020 0.620
FLAGSTAR BANK FSB
09/30/2024 1,461
274 06/30/2021
249,000.001618
1.000
249,000.00 254,241.45 5,241.45BCD 3,117.64 8,359.0903/30/2020 2.681
LEGENDS BANK
09/30/2024 1,645
457 06/30/2021
249,000.001624
1.000
249,000.00 254,241.45 5,241.45BCD 3,110.82 8,352.2703/31/2020 2.685
PEOPLES BANK/SARDIS TN
09/30/2024 1,644
456 06/30/2021
249,000.001611
1.650
249,000.00 259,647.24 10,647.24BCD 6,798.68 17,445.9211/04/2019 4.234
POPPY BANK
11/04/2024 1,827
604 06/30/2021
Portfolio ENCI
AC
Run Date: 08/24/2021 - 11:22 CG (PRF_CGU1) 7.1.1
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 63 of 85
Investment #
Unrealized Gains and Losses
Current Rate
Par Value
Book Value
Unrealized
Gain/Loss
To Date
Earnings
Actual
Yield 365
Page 3Open Positions through June 30, 2021
Inv.
Type
Purchase
Date
To Date
Net EarningsIssuer
Maturity Date Term
Days Held
Market Value
Market Date
Certificates of Deposit - Bank
249,000.001610
1.650
249,000.00 259,669.65 10,669.65BCD 6,753.65 17,423.3011/08/2019 4.257
COMMUNITY BANK
11/08/2024 1,827
600 06/30/2021
249,000.001607
1.800
249,000.00 260,914.65 11,914.65BCD 7,367.61 19,282.2611/08/2019 4.711
ENTERPRISE BANK AND TRUST
11/08/2024 1,827
600 06/30/2021
249,000.001613
1.650
249,000.00 259,669.65 10,669.65BCD 6,753.65 17,423.3011/08/2019 4.257
PADUCAH BANK AND TRUST
11/08/2024 1,827
600 06/30/2021
249,000.001612
1.800
249,000.00 260,914.65 11,914.65BCD 7,367.61 19,282.2611/08/2019 4.711
TRIAD BANK FRONTENAC MO
11/08/2024 1,827
600 06/30/2021
249,000.001615
1.000
249,000.00 254,336.07 5,336.07BCD 3,144.92 8,480.9903/26/2020 2.697
EVERGREEN BANK GROUP
03/26/2025 1,826
461 06/30/2021
249,000.001617
1.000
249,000.00 254,336.07 5,336.07BCD 3,138.10 8,474.1703/27/2020 2.700
MIDCOUNTRY BANK
03/27/2025 1,826
460 06/30/2021
248,000.001620
1.000
248,000.00 253,312.16 5,312.16BCD 3,111.89 8,424.0503/30/2020 2.707
CENTERSTATE BANK NA
03/31/2025 1,827
458 06/30/2021
249,000.001622
1.100
249,000.00 255,262.35 6,262.35BCD 3,429.39 9,691.7403/31/2020 3.109
LIVE OAK BANKING COMPANY
03/31/2025 1,826
457 06/30/2021
249,000.001621
1.150
249,000.00 255,725.49 6,725.49BCD 3,585.27 10,310.7603/30/2020 3.307
PACIFIC ENTERPRISE BANK
03/31/2025 1,827
457 06/30/2021
249,000.001627
0.400
249,000.00 247,237.08 -1,762.92BCD 742.23 -1,020.6910/02/2020 -0.550
LUANA SAVINGS BANK
10/02/2025 1,826
272 06/30/2021
249,000.001629
0.400
249,000.00 247,067.76 -1,932.24BCD 624.88 -1,307.3611/13/2020 -0.837
1ST SECURITY BK OF WASH
10/15/2025 1,797
229 06/30/2021
249,000.001628
0.400
249,000.00 246,883.50 -2,116.50BCD 665.80 -1,450.7010/29/2020 -0.872
LANDMARK COMMUNITY BANK
10/29/2025 1,826
244 06/30/2021
249,000.001630
0.400
249,000.00 246,614.58 -2,385.42BCD 611.23 -1,774.1911/18/2020 -1.161
FIRST US BANK
11/18/2025 1,826
224 06/30/2021
249,000.001631
0.450
249,000.00 247,017.96 -1,982.04BCD 650.84 -1,331.2011/30/2020 -0.920
KS STATEBANK
11/28/2025 1,824
212 06/30/2021
249,000.001632
0.750
249,000.00 247,580.70 -1,419.30BCD 35.81 -1,383.4906/23/2021 -28.972
UBS BANK USA
06/23/2026 1,826
7 06/30/2021
249,000.001633
0.700
249,000.00 246,866.07 -2,133.93BCD 4.78 -2,129.1506/30/2021 ***.***
NEW YORK COMMUNITY BANK
07/01/2026 1,827
1 06/30/2021
606,362.0912,877,000.00 13,278,165.61 401,165.61 1,007,527.70 -3.401Certificates of Deposit - Bank Subtotals
Negotiable CDs
249,000.001614
1.600
249,000.00 256,806.15 7,806.15NCB 6,658.20 14,464.3510/30/2019 3.476
CELTIC BANK
10/30/2023 1,461
610 06/30/2021
249,000.001608
1.850
249,000.00 261,245.82 12,245.82NCB 7,723.84 19,969.6610/28/2019 4.783
First Bank Puerto Rico
10/25/2024 1,824
612 06/30/2021
Portfolio ENCI
AC
Run Date: 08/24/2021 - 11:22 CG (PRF_CGU1) 7.1.1
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 64 of 85
Investment #
Unrealized Gains and Losses
Current Rate
Par Value
Book Value
Unrealized
Gain/Loss
To Date
Earnings
Actual
Yield 365
Page 4Open Positions through June 30, 2021
Inv.
Type
Purchase
Date
To Date
Net EarningsIssuer
Maturity Date Term
Days Held
Market Value
Market Date
14,382.04498,000.00 518,051.97 20,051.97 34,434.01 4.129Negotiable CDs Subtotals
U.S. Treasury Coupon Securities
2,000,000.001523
1.125
1,998,962.43 2,001,800.00 2,837.57TRC 153,879.78 156,717.3502/13/2017 1.790
U.S. Treasury Notes
07/31/2021 1,629
1,599 06/30/2021
2,000,000.001556
1.125
1,993,350.17 2,005,320.00 11,969.83TRC 164,824.93 176,794.7602/23/2018 2.645
U.S. Treasury Notes
09/30/2021 1,315
1,224 06/30/2021
2,000,000.001574
2.000
1,995,869.53 2,012,900.00 17,030.47TRC 157,819.26 174,849.7306/26/2018 2.904
U.S. Treasury Notes
10/31/2021 1,223
1,101 06/30/2021
4,000,000.001578
2.000
3,971,285.93 4,081,880.00 110,594.07TRC 321,140.91 431,734.9806/26/2018 3.604
U.S. Treasury Notes
07/31/2022 1,496
1,101 06/30/2021
2,000,000.001572
1.875
1,981,692.04 2,040,460.00 58,767.96TRC 160,326.55 219,094.5106/26/2018 3.665
U.S. Treasury Notes
08/31/2022 1,527
1,101 06/30/2021
2,000,000.001579
1.875
1,980,414.26 2,043,280.00 62,865.74TRC 160,301.56 223,167.3006/26/2018 3.736
U.S. Treasury Notes
09/30/2022 1,557
1,101 06/30/2021
3,000,000.001592
1.250
2,944,777.88 3,061,410.00 116,632.12TRC 145,035.14 261,667.2603/27/2019 3.922
U.S. Treasury Notes
07/31/2023 1,587
827 06/30/2021
2,000,000.001604
1.375
1,985,269.11 2,047,260.00 61,990.89TRC 69,080.26 131,071.1506/26/2019 3.274
U.S. Treasury Notes
08/31/2023 1,527
736 06/30/2021
1,332,408.3918,851,621.35 19,294,310.00 442,688.65 1,775,097.04 3.271U.S. Treasury Coupon Securities Subtotals
Federal Agency Coupon Securities
2,000,000.001524
1.125
1,999,540.14 2,000,800.00 1,259.86FAC 154,445.14 155,705.0002/13/2017 1.778
Federal Home Loan Bank
07/14/2021 1,612
1,599 06/30/2021
2,000,000.001537
1.875
2,000,228.99 2,002,580.00 2,351.01FAC 138,080.33 140,431.3406/23/2017 1.744
Federal Home Loan Mortgage
07/27/2021 1,495
1,469 06/30/2021
2,000,000.001557
1.125
1,997,032.37 2,002,500.00 5,467.63FAC 162,936.37 168,404.0002/23/2018 2.515
Federal Home Loan Mortgage
08/12/2021 1,266
1,224 06/30/2021
2,000,000.001575
2.375
1,998,811.81 2,008,820.00 10,008.19FAC 162,503.25 172,511.4406/26/2018 2.861
Federal Home Loan Bank
09/10/2021 1,172
1,101 06/30/2021
2,000,000.001555
1.875
1,994,967.35 2,014,980.00 20,012.65FAC 166,910.68 186,923.3302/23/2018 2.794
Federal Home Loan Bank
11/29/2021 1,375
1,224 06/30/2021
2,000,000.001588
2.420
2,002,343.58 2,029,000.00 26,656.42FAC 100,921.35 127,577.7703/27/2019 2.812
Federal Home Loan Bank
02/15/2022 1,056
827 06/30/2021
2,000,000.001601
2.200
2,005,637.74 2,028,040.00 22,402.26FAC 71,364.85 93,767.1106/26/2019 2.319
FEDERAL FARM CREDIT BANK
02/28/2022 978
736 06/30/2021
2,000,000.001536
2.150
2,004,369.64 2,029,540.00 25,170.36FAC 148,045.19 173,215.5506/23/2017 2.147
Federal Farm Credit
03/15/2022 1,726
1,469 06/30/2021
2,000,000.001573
2.750
1,999,451.03 2,049,760.00 50,308.97FAC 167,520.91 217,829.8806/26/2018 3.612
Federal Home Loan Bank
06/10/2022 1,445
1,101 06/30/2021
Portfolio ENCI
AC
Run Date: 08/24/2021 - 11:22 CG (PRF_CGU1) 7.1.1
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 65 of 85
Investment #
Unrealized Gains and Losses
Current Rate
Par Value
Book Value
Unrealized
Gain/Loss
To Date
Earnings
Actual
Yield 365
Page 5Open Positions through June 30, 2021
Inv.
Type
Purchase
Date
To Date
Net EarningsIssuer
Maturity Date Term
Days Held
Market Value
Market Date
Federal Agency Coupon Securities
2,000,000.001589
2.000
1,995,409.87 2,046,040.00 50,630.13FAC 98,674.32 149,304.4503/27/2019 3.302
Federal Nat'l Mortgage Assoc.
10/05/2022 1,288
827 06/30/2021
1,000,000.001603
2.000
1,003,169.53 1,023,020.00 19,850.47FAC 35,216.31 55,066.7806/26/2019 2.722
Federal Nat'l Mortgage Assoc.
10/05/2022 1,197
736 06/30/2021
1,000,000.001600
2.600
1,009,971.44 1,031,260.00 21,288.56FAC 36,472.55 57,761.1106/26/2019 2.836
Federal Farm Credit
10/06/2022 1,198
736 06/30/2021
2,000,000.001558
1.820
1,977,101.75 2,046,860.00 69,758.25FAC 177,243.97 247,002.2202/23/2018 3.725
Federal Farm Credit
11/23/2022 1,734
1,224 06/30/2021
2,000,000.001590
2.500
2,008,760.83 2,073,760.00 64,999.17FAC 100,566.38 165,565.5503/27/2019 3.638
Federal Farm Credit
02/02/2023 1,408
827 06/30/2021
4,000,000.001605
1.770
3,997,710.01 4,118,600.00 120,889.99FAC 144,905.34 265,795.3306/26/2019 3.297
Federal Farm Credit
06/26/2023 1,461
736 06/30/2021
1,000,000.001591
2.010
995,598.81 1,035,480.00 39,881.19FAC 50,257.15 90,138.3403/27/2019 3.996
FEDERAL FARM CREDIT BANK
07/26/2023 1,582
827 06/30/2021
2,000,000.001602
2.875
2,045,237.27 2,114,000.00 68,762.73FAC 74,335.88 143,098.6106/26/2019 3.470
Federal Nat'l Mortgage Assoc.
09/12/2023 1,539
736 06/30/2021
2,000,000.001606
2.200
2,017,626.58 2,086,420.00 68,793.42FAC 73,397.69 142,191.1106/26/2019 3.495
FEDERAL FARM CREDIT BANK
11/01/2023 1,589
736 06/30/2021
2,063,797.6635,052,968.74 35,741,460.00 688,491.26 2,752,288.92 2.948Federal Agency Coupon Securities Subtotals
4,016,950.1867,279,590.09 68,831,987.58 1,552,397.49 5,569,347.67 1.832Total Current Bond Positions
5,310,613.441,565,943.41 6,876,556.85 1.835Total Realized and Unrealized Gains/Losses
Portfolio ENCI
AC
Run Date: 08/24/2021 - 11:22 CG (PRF_CGU1) 7.1.1
Report Ver. 7.3.6.1
City of Encinitas
2021-10-20 Item #08C Page 66 of 85
City of Encinitas
CITY OF ENCINITAS
505 S. VULCAN
Encinitas, CA 92024
(760)633-2641
Sorted By Investment Type
Sales/Calls/Maturities: July 1, 2020 - June 30, 2021
Realized Gains and Losses
Investment #
Maturity DateCurrent Rate
Par Value
Book Value
Maturity/Sale
Proceeds
Realized
Gain/Loss
Sale Date Total
Earnings Yield 365
Inv.
Type
Purchase
Date Term
Days Held
Net Earnings
Total Total
Issuer
Certificates of Deposit - Bank
18,632.83245,000.001531
1.900 06/23/2021
245,000.00 245,000.00 0.00BCD06/23/2021 18,632.8306/23/2017 1.900
1,461
1,461
Firstrust Savings Bank
17,676.36245,000.001526
1.800 06/28/2021
245,000.00 245,000.00 0.00BCD06/28/2021 17,676.3606/26/2017 1.800
1,463
1,463
Winter Hill Bank FSB
36,309.19490,000.00 490,000.00 0.00 36,309.19 1.850Certificates of Deposit - Bank Subtotals
U.S. Treasury Coupon Securities
102,429.212,000,000.001583
1.500 07/15/2020
2,000,000.00 2,000,000.00 0.00TRC07/15/2020 102,429.2106/27/2018 2.496
749
749
U.S. Treasury Notes
99,508.932,000,000.001514
1.625 07/31/2020
2,000,000.00 2,000,000.00 0.00TRC07/31/2020 99,508.9304/19/2016 1.161
1,564
1,564
U.S. Treasury Notes
105,429.902,000,000.001576
2.000 07/31/2020
2,000,000.00 2,000,000.00 0.00TRC07/31/2020 105,429.9006/26/2018 2.512
766
766
U.S. Treasury Notes
111,429.502,000,000.001520
1.375 08/31/2020
2,000,000.00 2,000,000.00 0.00TRC08/31/2020 111,429.5002/13/2017 1.570
1,295
1,295
U.S. Treasury Notes
115,037.772,000,000.001521
1.375 09/30/2020
2,000,000.00 2,000,000.00 0.00TRC09/30/2020 115,037.7702/13/2017 1.584
1,325
1,325
U.S. Treasury Notes
119,443.482,000,000.001522
1.375 10/31/2020
2,000,000.00 2,000,000.00 0.00TRC10/31/2020 119,443.4802/13/2017 1.608
1,356
1,356
U.S. Treasury Notes
108,189.892,000,000.001538
2.000 11/30/2020
2,000,000.00 2,000,000.00 0.00TRC11/30/2020 108,189.8906/28/2017 1.578
1,251
1,251
U.S. Treasury Notes
117,038.042,000,000.001539
1.125 02/28/2021
2,000,000.00 2,000,000.00 0.00TRC02/28/2021 117,038.0406/28/2017 1.593
1,341
1,341
U.S. Treasury Notes
120,483.272,000,000.001540
1.250 03/31/2021
2,000,000.00 2,000,000.00 0.00TRC03/31/2021 120,483.2706/28/2017 1.603
1,372
1,372
U.S. Treasury Notes
998,989.9918,000,000.00 18,000,000.00 0.00 998,989.99 1.745U.S. Treasury Coupon Securities Subtotals
Federal Agency Coupon Securities
120,664.082,000,000.001560
2.220 07/01/2022
1,986,454.08 2,000,000.00 13,545.92FAC07/01/2020 134,210.0002/23/2018 2.871
1,589
859
Federal Home Loan Mortgage
137,700.002,000,000.001534
1.650 06/21/2021
2,000,000.00 2,000,000.00 0.00FAC06/21/2021 137,700.0006/21/2017 1.720
1,461
1,461
Federal Farm Credit
258,364.083,986,454.08 4,000,000.00 13,545.92 271,910.00 2.293Federal Agency Coupon Securities Subtotals
1,293,663.2622,476,454.08 22,490,000.00 13,545.92 1,307,209.18 1.845Total Realized Gains/Losses
Portfolio ENCI
AC
Run Date: 08/24/2021 - 11:22 CG (PRF_CGR1) 7.1.1
Report Ver. 7.3.6.1
2021-10-20 Item #08C Page 67 of 85
The City of Encinitas
Cash and Investments by Fund
FY 2020-21
FY 2021 Actual Percentage of Total Interest Income
GENERAL FUND 28,955,625 21.53%628,275
INFRASTRUCTURE FUNDS 5,134,561 3.82%59,488
GRANT FUNDS 1,137,865 0.85%24,347
DEVELOPMENT IMPACT FUNDS 3,068,426 2.28%141,138
MUNICIPAL IMPROVEMENTS DISTRICTS 4,387,050 3.26%54,968
DEBT SERVICE FUNDS - - -
CAPITAL IMPROVEMENTS FUNDS 31,894,013 23.71%-
CARDIFF SANITARY FUNDS 12,423,689 9.24%167,832
ENCINITAS SANITARY FUNDS 13,273,481 9.87%168,714
SAN DIEGUITO WATER DISTRICT FUNDS 21,632,359 16.09%277,805
OTHER PROPRIETARY FUNDS 249,538 0.18%4,876
INTERNAL SERVICE FUNDS 7,812,783 5.81%-
711 - CFD #1 DEBT SERVICE 2,363,647 1.76%16,066
712 - CFD #1 ADMINISTRATION 23,908 0.02%134
931:932 - ERGA - - 19,314
119 - OPPORTUNITY FUND - - -
RESTRICTED 2,121,146 1.58%-
ADMIN COSTS BANK FEES - 205,612
TOTAL PER GENERAL LEDGER 134,478,091 100.00%1,768,569
To reconcile from GL to Investment Report:
Not included in Market Value per Investment Report - Book Bal Checking (3,410,146)
Not included in Market Value per Investment Report - Register Cash (3,655)
Not included in Market Value per Investment Report - Restricted Cash (2,121,146)
Included in Investment Report not in GL - ERGA 2,490,889
Total Market Value per Investment Report 131,434,033
Cash - Checking Account Bank Balance 5,038,149
Total Cash and Investments 136,472,182
CASH AND INVESTMENTS
2021-10-20 Item #08C Page 68 of 85
CITY OF ENCINITAS
INVESTMENT OF BOND PROCEEDS
For the Fiscal Year ended June 30, 2021
Maturity FY 2020-2021
GOVERNMENTAL FUNDS TRUSTEE CASH & INVESTMENTS Yield Date Income Budget
ENCINITAS PUBLIC FINANCING AUTHORITY
2013 LEASE REVENUE BONDS (COMM PARK DEVELOPMENT)
Bond Fund Blackrock Money Market Fund 0.00%$1 $8
$1 $8 $-
2014 ENCINITAS PUBLIC FINANCING AUTHORITY 2014 A & B LEASE REVENUE BONDS
(PACIFIC VIEW PROPERTY & MOONLIGHT BEACH LIFEGUARD TOWER)
Bond Fund Blackrock Money Market Fund 0.00%$2 $11
$2 $11 $-
2015 LEASE REVENUE BONDS (PUBLIC LIBRARY)
Bond Fund Blackrock T-Fund Money Market Fund 0.00% $2 $16 $
Interest Account
$2 $16 $-
2017 LEASE REVENUE BONDS (PARK)
Bond Fund Blackrock Liquidity Funds Fedfund 0.00% $12 $15
$12 $15 -
ENCINITAS PUBLIC FINANCING AUTHORITY (TOTALS) (A)$17 $50 $-
TOTALS FOR GOVERNMENTAL FUNDS (A) $17 $50 $-
Maturity FY 2020-2021
ENTERPRISE FUNDS TRUSTEE CASH & INVESTMENTS Yield Date Income Budget
SAN DIEGUITO WATER DISTRICT
2007 WATER REVENUE BONDS
Bond Fund JP MORGAN US TRSY PlLUS PREM 0.00%$0 $2
Interest Account JP MORGAN US TRSY PlLUS PREM 0.00%0 0
Reserve Fund-SDWD BLACKROCK FEDERAL FD INSTL 30 0.03%639,559 280
TOTAL $639,559 $282 $-
2014 WATER REVENUE BONDS
Debt Service Fund Blackrock Institutional Funds T-Fund 0.00%$0 $12
TOTAL $0 $12 $-
TOTALS FOR ENTERPRISE FUNDS (B)$639,559 $294 $-
TOTAL TRUSTEE CASH & INVESTMENTS (A) + (B) $639,576 $344 $-
NOTE: The City's leases for capital equipment do not require any trustee deposits, and thus, are not listed on this summary.
Market
Value
Market
Value
2021-10-20 Item #08C Page 69 of 85
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 1420, 20210
I. 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.
II. 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:
GENERAL FUND
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.
2021-10-20 Item #08C Page 70 of 85
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. Liquidity - The second objective is the maintenance of sufficient liquidity to meet all operating
and capital spending requirements that can be reasonably anticipated.
C. Return on investments - The third objective is yield, specifically, attaining a market rate of
return over time, consistent with Council direction as to acceptable levels of risk. Refer to Section XV
below for further discussion of performance measurement.
V. Delegation of Authority
In accordance with the California Government Code, Section 53607, the City Council hereby
delegates the authority to invest or reinvest the City’s funds, to sell or exchange securities purchased,
and to deposit securities for safekeeping to the City Treasurer. Encinitas Municipal Code Chapter
2.28 designates that the 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.
2021-10-20 Item #08C Page 71 of 85
VI. Ethics, & Conflict of Interest
The investment responsibility carries with it the responsibility of ensuring that investments placed are
done so without improper influence or the appearance of improper influence. All officers and
employees (officials) involved in the investment function shall adhere to the State's Code of Economic
Interest and to the following:
Officials shall refrain from personal business activity that could conflict with proper and impartial
execution of the Investment Program, or that could impair their ability to make impartial investment
decisions. Further, officials shall not personally or through a close relative maintain any accounts,
interest, or private dealings with any firm with which the City places investments, with the exception
of regular savings, checking and money market accounts, or other similar transactions that are offered
on a non-negotiable basis to the general public. Any such relationships shall be disclosed annually
to the City Clerk in conjunction with annual disclosure statements of economic interest.
VII. Authorized Financial Dealers and Institutions
The City Treasurer shall maintain a list of qualified financial institutions authorized to provide financial
or investment services to the City.
The City shall contract with one institution to provide general banking services, which shall be
reviewed at least every five years. City Council shall approve the selected institution and the
contract for banking services.
The City shall contract with one institution to provide investment custody services, which shall be
reviewed at least every five (5) years. City Council shall approve the selected institution and the
contract for custody services.
The City Treasurer shall maintain a list of qualified security broker-dealers authorized to provide
financial or investment services to the City. To be eligible for consideration to become an authorized
provider, each Broker/Firm shall meet the following MINIMUM requirements:
(1) have a net capital position in excess of $10 million,
(2) have been in business for at least five years,
(3) are currently licensed as a broker-dealer or investment adviser in California, and
(4) Must carry adequate insurance coverage including liability, errors and omissions, and
workers compensation (if applicable.)
Firms providing only representation of money market funds are exempt for requirement #1, but must
still comply with all other requirements, including those listed below.
The City Council shall approve the initial authorization of any broker-dealer. Authorized firms shall
be notified by the City Treasurer via an engagement letter, which outlines each parties’ responsibilities
(primarily the continuing compliance requirements discussed directly below). There is no contract for
professional services or term to the engagement. The City Treasurer shall periodically evaluate the
performance of all qualified broker-dealers, and determine if any changes need to be made.
All broker-dealers authorized to do business with the City of Encinitas must also comply with the
following requirements.
(1) Firms must submit audited financial statements annually, within six months of their fiscal
year-end,
(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,
2021-10-20 Item #08C Page 72 of 85
(3) Firms must provide proof of their registration/license to do business in the State of California,
and shall immediately disclose to the City any change in that status.
(4) Firms must certify in writing that they have received, read, and agree to comply with the City
of Encinitas’ most recently adopted Investment Policy.
VIII. 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 VIII.
INVESTMENT ALLOCATIONS - The State Law Maximum allocations listed below refer to the
percentage of the total portfolio or dollar amount that may be invested in each instrument under the
provisions of the Gov’t Code. The Investment Policy Maximum allocations refer to maximum
allocations the City Treasurer follows, in order to effect proper diversification of the portfolio and
limit concentration risk. The City Treasurer is permitted to exceed these maximum allocations for
temporary periods. Any asset allocation that exceeds the Investment Policy Maximum allocation
for a period of more than three months shall be reported to the City Manager.
For purposes of calculating the percentage allocations, the assumption will be applied that the size
of the portfolio for any fiscal year shall be determined by the total par value of the portfolio at the
beginning of the first day of the fiscal year. Any investment types that exceed the maximum
allowable under the Gov’t Code shall be reported to the City Council in the quarterly investment
report.
INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
MAXIMUM MAXIMUM
(1) Repurchase agreements NO LIMIT 20%
This type of investment is only authorized in relation to the City’s general banking
arrangements, in which excess cash balances are “swept” into an interest earning
account overnight. Maximum maturity is one year. All balances are required to be
properly collateralized at 102% of par value in accordance with State requirements.
(2) CA Local Agency Inv Fund (LAIF) STATE LAW MAXIMUM 30%
The “STATE LAW MAXIMUM” refers to the LAIF limit on maximum deposits per local
agency, not to the CA gov’t code restrictions. The City of Encinitas maintains two
accounts with the LAIF, one in the name of the City and the other in the name of the
San Dieguito Water District. Each account has a
2021-10-20 Item #08C Page 73 of 85
INVESTMENT ALLOCATIONS
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 Gov’t Managed Pools NO LIMIT 30%
Per Issuer 10% per Pool
Investments in individual pools shall be limited to 10% of the total portfolio. Currently
approved pools are the San Diego County Investment Pool and the California Asset
Management Program (CAMP). The City Council must approve the addition of any
other governmental pools.
(4) Mutual Funds and Money Market Mutual Funds (Total)
20% 20%
Per Issuer 10% 10%
(A) Money Market Mutual Funds N/A 20%
Per Issuer N/A 10%
Qualifying funds must meet one of the following criteria: (1) Attained the highest
ranking or the highest letter and numerical rating provided by not less than two
nationally recognized statistical rating organizations, OR (2) Retained an Investment
Advisor registered or exempt from registration with the SEC with not less than five
years’ experience managing money market mutual funds with assets under
management in excess of $500 million.
(B) Mutual Funds N/A 10%
Per Issuer N/A 5%
A mutual fund must receive the highest ranking by not less than two nationally
recognized rating agencies or the fund must retain an investment advisor who is
registered with the SEC (or exempt from registration), has assets under
management in excess of $500 million, and has at least five years experience
investing in instruments authorized by California Government Code sections 53601
and 53635.
(5) Certificates of Deposit (CD’s) NO LIMIT 1030%
Per Issuer NO LIMIT 5%
All CD’s must be either insured by the FDIC or properly collateralized, pursuant to
Section X below. Maturity shall not exceed 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.
2021-10-20 Item #08C Page 74 of 85
INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
MAXIMUM MAXIMUM
(6) Negotiable Certificates of Deposit 30% 1030%
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) Aa1 by Moody’s and AA+ by Standard & Poor’s.
Investments of $250,000 or less that are fully insured by the FDIC are exempt from
the above credit rating requirements. Maturity shall not exceed five years. No more
than 5% of the total account value per issuer.
(7) Bankers Acceptances 40% 10%
Per Issuer 30% 5%
Bankers Acceptances (BA’s) represent a time draft drawn on and accepted by a
Bank for payment of the shipment or storage of merchandise. They are generally
considered a very safe investment since both the credit of the issuer and the Bank
is pledged for repayment. They must not exceed 180 days maturity. BA’s must have
an underlying credit rating of A1/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 2540% 25%
Per Issuer (see below 10% 5%
Commercial Paper (CP) is a short-term I.O.U. issued by large corporations of high
credit standing which is unsecured. Investments are limited to only “prime quality”
CP issued with the highest letter and number rating provided by one of the two
nationally recognized rating agencies. City limits itself only to CP rated A-1 or better
by Standard & Poors and P-1 by Moodys. Issuing corporations must be (1)
organized and operating within the United States, (2) have assets in excess of $500
million, and debt other than commercial paper must be in a rating category of “A” or
its equivalent or higher by a nationally recognized statistical rating organization (3)
or the issuing corporation must be organized within the U.S. as a special purpose
corporation, trust, or LLC, have program wide credit enhancements, and have
commercial paper that is rated have a “A-1” or higher or the equivalent, by a
nationally recognized statistical rating agency.rating for the issuers other debt
obligations. Organized and operating within the United States includes global
2021-10-20 Item #08C Page 75 of 85
INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
MAXIMUM MAXIMUM
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.
Per California Code Section 53601(h) beginning January 1, 2021, until January 1,
2026, portfolio limitation maximums are 40% and revert back to 25% after January
1, 2026. The 10% single issue limitation for commercial paper and medium term
notes will remain in effect.
(11) Commercial Medium-Term Notes 30% 15%
Per Issuer 10% 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
2021-10-20 Item #08C Page 76 of 85
INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
MAXIMUM MAXIMUM
agreement with the financial institution, and must be fully collateralized as Public
Deposits under California law. In addition, some part of the deposit (currently
$250,000) may be insured by the Federal Deposit Insurance Corporation (FDIC) in
lieu of collateralization.
(15) Asset-Backed Securities 20% 10%
Per Issuer 5%
These securities consist of Traditional Asset-Backed, Mortgage-Backed, Mortgage
Pass-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.
2021-10-20 Item #08C Page 77 of 85
SUMMARY TABLE of INVESTMENT ALLOCATIONS
STATE LAW INV POLICY
(1) REPURCHASE AGREEMENTS NO LIMIT 20%
(2) CALIFORNIA LAIF NO LIMIT 30%
(3) OTHER GOV’T 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 1030%
Per Issuer 5%
(6) NEGOTIABLE CD’s 30% 1030%
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 2540% 25%
Per Issuer 10% 5%
(11) COMMERCIAL MTN NOTES 30% 15%
Per Issuer 10% 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.
(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,
2021-10-20 Item #08C Page 78 of 85
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. Furthermore, Encinitas’
City Council directs the City Treasurer to annually, if not more often, petition the managers of the
pooled funds the City is invested in to divest from fossil fuel companies. The 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.
California SB 998 added Government Code Section 53601.6(b)2), which allows a local agency to
invest in securities issued by, or backed by, the United States government that could result in zero-
or negative-interest accrual if held to maturity, in the event of, and for the duration of a period of
negative market interest rates. This is applicable from January 1, 2021 until January 1, 2026.
IX. Due Diligence Requirements for Investment Pools, Mutual Funds, and CD’s
Investments of these types are authorized in Section VIII. above. Before investing any funds in pools
or mutual funds, the 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
2021-10-20 Item #08C Page 79 of 85
(3) Demand Deposits in accordance with CA law regarding Public Deposits
Collateral must be held by an independent third party with whom the entity has a current custodial
agreement. Collateral for overnight repurchases (sweep agreements) may be held by the Trust
Department of the institution providing such sweep services. Sweep contracts shall provide for a
perfected security interest for the City in collateralized securities.
Collateral shall be provided by the issuing institution in accordance and compliance with the California
Gov’t Code Sections 53630 et al. Issuing institution is responsible for compliance with all collateral
requirements, and must provide the City periodic evidence of that compliance, in a form acceptable
to the City.
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.
XIII. Maximum Maturities
To the extent possible, the City of Encinitas will attempt to match its investments with anticipated cash
flow requirements, after taking into consideration interest rate (market) risk and the potential benefits
of extending investment maturities. The City conforms to the California Gov’t Code requirements
limiting investments in notes to five (5) years, subject to the exceptions cited in Section 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.
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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 over time shall be measured and reported to the City Council, at least
quarterly, via the utilization of the following benchmark to measure performance.
The one (1) year constant maturity Treasury index
Any change to the above performance benchmark shall be reported to the City Council during the
City Treasurer’s quarterly investment report.
The City Treasurer shall report performance on a quarterly basis based on the book yield (standard
income) approach. Book yield calculates the earnings on an investment based on actual interest
earned during any reporting period, including the accretion of purchase discounts and/or the
amortization of purchase premiums. The City Treasurer shall also report the estimated market value
of investments held (as provided by a third-party data provider) with each periodic report. The City no
longer reports investment income on a total return basis each fiscal year (the alternative method
presented in Gov’t Actg. Standards Board (GASB) Statement No. 31) as the results over time are
roughly comparable.
XVI. Investment Accounting and Reporting
The City Treasurer shall prepare (or have prepared) monthly investment reports sufficient to properly
track and record all investment transactions and activity. The City Treasurer shall report investment
positions and results of the Pooled Investment Fund to the City Council at least quarterly, in a form
acceptable to the City Council. These reports shall either be presented as an Agenda Report or as a
memo report to the City Council members, at the discretion of the City Manager. The City Treasurer
shall report positions and results of the Pooled Investment Fund and the Investment of Bond
Proceeds annually to the City Council at a Public Meeting. Detailed annual reports of the Pooled
Investment Fund shall be made available on the City’s website for public review. The City shall
publicly report on the results of the annual petitions to the managers of the pooled funds the City is
invested in to define and divest from fossil fuel companies.
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.
2021-10-20 Item #08C Page 81 of 85
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
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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."
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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.
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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.
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