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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) 2021-10-20 Item #08C Page 1 of 85 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. 2021-10-20 Item #08C Page 2 of 85 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. 2021-10-20 Item #08C Page 3 of 85 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. 2021-10-20 Item #08C Page 4 of 85 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 2021-10-20 Item #08C Page 6 of 85 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 2021-10-20 Item #08C Page 7 of 85 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. 2021-10-20 Item #08C Page 9 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 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, 2021-10-20 Item #08C Page 11 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 12 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 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. 2021-10-20 Item #08C Page 13 of 85 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 2021-10-20 Item #08C Page 14 of 85 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. 2021-10-20 Item #08C Page 80 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 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 2021-10-20 Item #08C Page 82 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 83 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 84 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 85 of 85