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2022-10-19 Item 08D Annual Investment Report and Investment PolicyMEETING DATE: October 19, 2022 PREPARED BY: Teresa S. McBroome Director of Finance/City Treasurer DEPT. DIRECTOR: Teresa S. McBroome DEPARTMENT: Finance CITY MANAGER: Pamela Antil SUBJECT: Treasurer’s Annual Report for the Fiscal Year Ended June 30, 2022 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, 2022; and 2.Adopt Resolution No. 2022-99 titled “A Resolution of the City Council of the City of Encinitas Approving the Statement of Investment Policy for the Fiscal Year 2022-23, 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 2021-22 were $1,455,618, of which $571,009 were allocated to the General Fund. Investment earnings exceeded the budgeted amount of $1,129,127 by $325,831 or by $171,009, 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 minor and administrative 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 2021-22 (Attachment 2) Summary report for the investment of bond proceeds (Attachment 3) Investment Policy Redlined (Attachment 4) Investment Policy (Attachment 1; Exhibit A) AGENDA REPORT 2022-10-19 Item #08D Page 1 of 88 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 Details Investments by Issuer Activity Report Interest Earnings Summary Interest Earnings Purchases Report Accrued Interest Realized Gain/Loss Unrealized Gain/Loss Cash and Investments by Fund As of June 30, 2022, the book value (purchase price of securities as recorded on the City’s books) of the Pooled Investment Fund was $136.1million and the average weighted yield to maturity was 1.30 percent. Fiscal year-to-date investment revenue generated by the Pooled Investment Fund as of June 30, 2022, was $1,455,618 for an effective rate of return of 1.28 percent. The current market value of the City’s portfolio is $132,281,867 which results in an unrealized loss of $3,791,510 or 2.79 percent, when compared to the book value or purchase value of the City’s portfolio of $136,073,377. This is due to the rising interest rate environment that the market is in. Since the City intends to hold all investments until maturity, the unrealized loss will not become a realized loss. The following table compares the Pooled Investment Fund statistics for the last four quarters. As stated in Section IV of the City’s investment policy, the investment objectives for the City’s portfolio in priority order are: 1. safety of principal; 2. liquidity of funds; and 3. return on investments. In order to achieve those objectives, the investment policy also defines (a) maximum allocations of the portfolio by security type, (b) liquidity sufficiency and (c) return on investment benchmarks. The charts below provide graphical information about portfolio investment allocation, liquidity and performance compared to various benchmarks. FY 2021-22 June 30, 2022 March 31, 2022 Dec. 31, 2021 Sep. 30, 2021 Book Value 136,073,377$ 121,316,026$ 113,540,519$ 108,584,422$ Market Value 132,281,867$ 118,954,232$ 113,821,823$ 109,637,863$ Unrealized Gain/(Loss)(3,791,510)$ (2,361,794)$ 281,304$ 1,053,441$ Unrealized Gain/Loss as % of Book Value -2.79%-1.95%0.25%0.97% Effective Rate of Return 1.28%1.29%1.33%1.32% Average Yield To Maturity 1.30%1.25%1.23%1.31% Average Maturity (Years)1.37 1.76 1.71 1.90 Investment Earnings Year to Date 1,455,618$ 1,056,642$ 724,153$ 388,307$ 2022-10-19 Item #08D Page 2 of 88 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 and Federal Farm Credit. This diversity of issuers provides additional security. Although the Federal Agency securities are rated AA+, they continue to be regarded as among the safest securities in the global market. The remaining funds are in the California Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), the San Diego County Investment Pool, and Certificates of Deposit and Money Market Funds with US Bank as Trustee and a Union Bank 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 provide 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. 2022-10-19 Item #08D Page 3 of 88 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 34.0 percent available overnight and an additional 10.8 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 1.37 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. The Treasury Indexes began to slowly accelerate at the beginning of Fiscal Year 2021-22, then began to increase more steadily towards the end of the fiscal year. One of the primary ways for the Federal Reserve to adjust monetary policy is through changes to the federal funds rate. With rising inflation, the Federal Reserve has been more aggressive in policy rate increases. The City remains 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 which averaged a 1.10 percent yield over the 2022-10-19 Item #08D Page 4 of 88 twelve months ended June 30, 2022, as compared to the City’s average yield of 1.65 percent over the same twelve-month period. 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, 2022, were $655,263. Earnings on the bond trust accounts were $720 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 rate of return ranging from 0.84 percent to 1.33 percent. As the City has paid off bond issues or refunded bonds in the past few years, the requirement for bond reserves for these bond issues has been eliminated, reducing the amount of bond proceeds held in trust. The majority of funds held on June 30, 2022, were for the 2007 Water Revenue Bonds reserve funds ($640,239). 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 2021. There were no approved changes to the local agency investment related codes during the 2021 California State Legislative Session. Therefore, the Local Agency Investment Guidelines provided by the California Debt and Advisory Commission reflect the most current investment statutes. Staff performed a review of the City’s current investment policy, which follows these investment guidelines, and is recommending adoption of the City’s investment policy for Fiscal Year 2022-23 with minor formatting and grammatical corrections. In Fiscal Year 2020-21, the City adopted Resolution 2021-67, whereby the City Council has directed the City Treasurer not to invest in certain companies as well as to petition the managers of the pooled funds the City is invested in to divest from fossil fuel companies. The City Treasurer has complied with this direction from the City Council. ENVIRONMENTAL CONSIDERATIONS: The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15378(b)(5) of CEQA Guidelines. The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment. ATTACHMENTS: 1. Resolution No. 2022-99 titled “A Resolution of the City Council of the City of Encinitas Approving the Statement of Investment Policy for the Fiscal Year 2022-23, and Delegating the Authority to Invest City Funds to the Treasurer 2. Annual Investment Report for the Pooled Investment Fund, June 30, 2022 3. Annual Investment Report for the Investment of Bond Proceeds, June 30, 2022 4. City of Encinitas Investment Policy (F019), amended October 19, 2022, Redlined 2022-10-19 Item #08D Page 5 of 88 Attachment 1 RESOLUTION 2022-99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS APPROVING THE STATEMENT OF INVESTMENT POLICY FOR THE FISCAL YEAR 2022-2023, 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 20, 2021; and WHEREAS, there were no approved changes to the local agency investment related government codes during the 2021 California Legislative session. Therefore, the Local Agency Investment Guidelines, which the City follows, have the most current investment statutes. 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, 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 Encinitas Municipal Code Chapter 2.28 designates that the Director of Finance shall serve as 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 2022-2023, 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 19th day of October 2022 by the City Council of the City of Encinitas, State of California. ______________________________ Catherine S. Blakespear, Mayor 2022-10-19 Item #08D Page 6 of 88 ATTEST: ______________________________ Kathy Hollywood, City Clerk APPROVED AS TO FORM: _____________________________ Tarquin Preziosi, 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 19th day of October 2022 by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________________ Kathy Hollywood, City Clerk 2022-10-19 Item #08D Page 7 of 88 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 19, 2022 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’ Annual Comprehensive 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. 2022-10-19 Item #08D Page 8 of 88 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. 2022-10-19 Item #08D Page 9 of 88 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, 2022-10-19 Item #08D Page 10 of 88 (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 deposit limit of the maximum 2022-10-19 Item #08D Page 11 of 88 INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM 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. 2022-10-19 Item #08D Page 12 of 88 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 than 5% of outstanding commercial paper of any single corporate issuer. The maximum allowable maturity is 270 days or less. 2022-10-19 Item #08D Page 13 of 88 INVESTMENT ALLOCATIONS STATE LAW INV POLICY MAXIMUM MAXIMUM 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 2022-10-19 Item #08D Page 14 of 88 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. 2022-10-19 Item #08D Page 15 of 88 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, 2022-10-19 Item #08D Page 16 of 88 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 2022-10-19 Item #08D Page 17 of 88 (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. 2022-10-19 Item #08D Page 18 of 88 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. 2022-10-19 Item #08D Page 19 of 88 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 2022-10-19 Item #08D Page 20 of 88 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." 2022-10-19 Item #08D Page 21 of 88 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. 2022-10-19 Item #08D Page 22 of 88 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. 2022-10-19 Item #08D Page 23 of 88 City of Encinitas - YTD Report Portfolio Management June 30, 2022 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 34,266,457.21 26.26 10.99033,825,290.7634,266,457.21 1 Managed Pool Accounts 2,301,189.02 1.76 11.1352,268,998.872,301,189.02 1 Money Market Funds 4,081,904.25 3.13 11.3704,081,904.254,081,904.25 1 Certificates of Deposit - Bank 12,644,000.00 9.69 1,7611.76212,178,198.1012,644,000.00 762 Negotiable CDs 498,000.00 0.38 1,6431.727485,181.48498,000.00 667 U.S. Treasury Coupon Securities 56,709,084.76 43.46 1,3561.18054,193,674.3157,000,000.00 818 Federal Agency Coupon Securities 19,995,582.47 15.32 1,4941.88519,671,460.0020,000,000.00 444 130,496,217.71 100.00%Investments 126,704,707.77130,791,550.48 1.302 995 500 Cash (not included in yield calculations) Passbook/Checking 5,577,158.84 10.0005,577,158.845,577,158.84 1 136,073,376.55Total Cash and Investments 132,281,866.61136,368,709.32 1.302 995 500 Current Year June 30 1,455,618.16 1,455,618.16 Fiscal Year Ending Average Daily Balance Effective Rate of Return 113,960,743.36 1.28% Total Earnings Period 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 US Bank Custody Services. __________________________________________________ ____________________ Teresa McBroome, Finance Director\Treasurer Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Reporting period 07/01/2021-06/30/2022 Run Date: 08/15/2022 - 15:08 PM (PRF_PM1) 7.3.0No fiscal year history available Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 24 of 88 S&P Page 1 Par Value Book Value Maturity Date Stated RateMarket Value June 30, 2022 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of Encinitas - YTD Report Moody's YTM CUSIP Investment # Purchase Date Local Agency Investment Funds NRCA LAIF1012 34,266,457.21 34,266,457.21 0.99033,825,290.76 0.990SYS1012 34,266,457.21 0.99033,825,290.7634,266,457.2117,465,405.28Subtotal and Average Managed Pool Accounts AAACA Asset Management Program1003 1,072,561.71 1,072,561.71 1.1401,072,561.71 1.140SYS1003 AAASD County Investment Pool1584 1,228,627.31 1,228,627.31 1.1301,196,437.16 1.130SYS1584 2,301,189.02 1.1352,268,998.872,301,189.023,329,134.99Subtotal and Average Money Market Funds AAAUS BANK1004 4,081,904.25 4,081,904.25 1.3704,081,904.25 1.370SYS1004 4,081,904.25 1.3704,081,904.254,081,904.252,154,865.92Subtotal and Average Certificates of Deposit - Bank NRCapital One NA1552 245,000.00 245,000.00 07/19/20222.30007/19/2017 245,075.95 2.30014042RGN5 Capital One Bank USA, NA1553 245,000.00 245,000.00 07/19/20222.30007/19/2017 245,075.95 2.3001404203Q1 NRTIAA FSB1554 245,000.00 245,000.00 07/19/20222.15007/19/2017 245,056.35 2.15087270LAD5 NR Medallion Bank UT1561 249,000.00 249,000.00 03/28/20232.90003/28/2018 249,883.95 2.90058404DBL4 BMW Bank North America1562 246,000.00 246,000.00 03/29/20232.90003/29/2018 246,865.92 2.90005580AMB7 Citi Bank NA1563 246,000.00 246,000.00 03/29/20232.85003/29/2018 246,774.90 2.85017312QH69 Enerbank USA1568 246,000.00 246,000.00 03/29/20232.85003/29/2018 246,774.90 2.85029278TAU4 Industrial & Comm Bank China1564 249,000.00 249,000.00 03/29/20232.90003/29/2018 249,878.97 2.90045581EAS0 LCA Bank Corp1566 246,000.00 246,000.00 03/29/20232.80003/29/2018 246,683.88 2.800501798LT7 Morgan Stanley Bank1565 246,000.00 246,000.00 03/29/20232.90003/29/2018 246,865.92 2.90061747MR37 First Source Bank1569 246,000.00 246,000.00 04/11/20232.85004/11/2018 246,691.26 2.85033646CJP0 Denver Savings Bank1596 249,000.00 249,000.00 06/21/20232.25006/21/2019 247,630.50 2.250249398BT4 NRAmerican Express National Bank1580 245,000.00 245,000.00 06/26/20233.30006/26/2018 246,085.35 3.30002589AAM4 NR NRSallie Mae Bank/Murray1570 245,000.00 245,000.00 06/27/20233.30006/27/2018 246,078.00 3.300795450S89 NR NRComenity Capital Bank1571 245,000.00 245,000.00 06/29/20233.30006/29/2018 246,058.40 3.30020033AZK5 NR ALMA BANK1619 249,000.00 249,000.00 09/29/20230.90003/30/2020 242,672.91 0.900020080BU0 FIRST SERVICE BANK1609 249,000.00 249,000.00 11/15/20231.70011/15/2019 244,547.88 1.70033640VDE5 Merrick Bank1597 249,000.00 249,000.00 12/28/20232.40006/28/2019 246,527.43 2.40059013KAR7 BANK HAPOALIM BM NY1585 246,000.00 246,000.00 03/25/20242.90003/25/2019 244,814.28 2.90006251AW48 FORTUNE BANK ARNOLD1616 249,000.00 249,000.00 03/27/20241.00003/27/2020 239,784.51 1.00034969RCS5 NICOLET NATIONAL BANK1625 249,000.00 249,000.00 03/28/20241.15003/31/2020 240,397.05 1.150654062JR0 CORNHUSKER BANK1623 249,000.00 249,000.00 03/29/20241.10003/30/2020 240,167.97 1.100219255AK2 MORGAN STANLEY PRIVATE BANK1593 246,000.00 246,000.00 06/13/20242.60006/13/2019 242,846.28 2.60061760AG52 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.6.12022-10-19 Item #08D Page 25 of 88 S&P Page 2 Par Value Book Value Maturity Date Stated RateMarket Value June 30, 2022 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of Encinitas - YTD Report Moody's YTM CUSIP Investment # Purchase Date Certificates of Deposit - Bank EAGLEBANK1594 249,000.00 249,000.00 06/20/20242.30006/20/2019 244,308.84 2.30027002YEQ5 COMMERCE BANK GENEVA MN1595 249,000.00 249,000.00 06/26/20242.30006/26/2019 244,236.63 2.300200056QRZ8 First State Bank Dequeen1598 249,000.00 249,000.00 06/28/20242.30006/28/2019 244,211.73 2.300336460CQ1 REVERE BANK1599 247,000.00 247,000.00 06/28/20242.30006/28/2019 242,262.54 2.300761400BY1 FLAGSTAR BANK FSB1626 249,000.00 249,000.00 09/30/20240.40009/30/2020 233,295.57 0.40033847E4E4 LEGENDS BANK1618 249,000.00 249,000.00 09/30/20241.00003/30/2020 236,450.40 1.00052465JHT7 PEOPLES BANK/SARDIS TN1624 249,000.00 249,000.00 09/30/20241.00003/31/2020 236,450.40 1.000710673AC8 POPPY BANK1611 249,000.00 249,000.00 11/04/20241.65011/04/2019 239,552.94 1.65073319FAD1 COMMUNITY BANK1610 249,000.00 249,000.00 11/08/20241.65011/08/2019 239,503.14 1.650203522AT4 ENTERPRISE BANK AND TRUST1607 249,000.00 249,000.00 11/08/20241.80011/08/2019 240,347.25 1.80029367SJQ8 PADUCAH BANK AND TRUST1613 249,000.00 249,000.00 11/08/20241.65011/08/2019 239,503.14 1.650695292FP2 TRIAD BANK FRONTENAC MO1612 249,000.00 249,000.00 11/08/20241.80011/08/2019 240,347.25 1.80089579NCB7 EVERGREEN BANK GROUP1615 249,000.00 249,000.00 03/26/20251.00003/26/2020 233,557.02 1.000300185JF3 MIDCOUNTRY BANK1617 249,000.00 249,000.00 03/27/20251.00003/27/2020 233,542.08 1.00059565QCS2 CENTERSTATE BANK NA1620 248,000.00 248,000.00 03/31/20251.00003/30/2020 232,621.52 1.00015201QCJ4 LIVE OAK BANKING COMPANY1622 249,000.00 249,000.00 03/31/20251.10003/31/2020 234,127.23 1.100538036KU7 PACIFIC ENTERPRISE BANK1621 249,000.00 249,000.00 03/31/20251.15003/30/2020 234,455.91 1.150694231AD3 LUANA SAVINGS BANK1627 249,000.00 249,000.00 10/02/20250.40010/02/2020 226,223.97 0.400549104SS7 1ST SECURITY BK OF WASH1629 249,000.00 249,000.00 10/15/20250.40011/13/2020 225,885.33 0.40033625CDV8 LANDMARK COMMUNITY BANK1628 249,000.00 249,000.00 10/29/20250.40010/29/2020 225,641.31 0.40051507LBZ6 FIRST US BANK1630 249,000.00 249,000.00 11/18/20250.40011/18/2020 225,315.12 0.40033744AAW9 KS STATEBANK1631 249,000.00 249,000.00 11/28/20250.45011/30/2020 225,526.77 0.45050116CCP2 UBS BANK USA1632 249,000.00 249,000.00 06/23/20260.75006/23/2021 224,931.66 0.75090348JN48 NEW YORK COMMUNITY BANK1633 249,000.00 249,000.00 07/01/20260.70006/30/2021 224,458.56 0.700649447UZ0 NRSTATE BANK OF INDIA1650 248,000.00 248,000.00 01/13/20271.40001/13/2022 227,289.52 1.400856285C41 NR TOYOTA FINANCIAL SVGS BK1649 248,000.00 248,000.00 01/13/20271.35001/13/2022 226,773.68 1.35089235MMP3 GREENSTATE CREDIT UNION1648 248,000.00 248,000.00 01/14/20271.35001/14/2022 226,619.92 1.35039573LCE6 NELNET BANK INC1651 248,000.00 248,000.00 02/02/20271.45002/02/2022 227,520.16 1.45064034KAJ0 12,644,000.00 1.76212,178,198.1012,644,000.0013,091,128.77Subtotal and Average Negotiable CDs CELTIC BANK1614 249,000.00 249,000.00 10/30/20231.60010/30/2019 244,405.95 1.60115118RSN8 NRFirst Bank Puerto Rico1608 249,000.00 249,000.00 10/25/20241.85010/28/2019 240,775.53 1.85233767GAMO NR 498,000.00 1.727485,181.48498,000.00498,000.00Subtotal and Average Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 PM (PRF_PM2) 7.3.0 2022-10-19 Item #08D Page 26 of 88 S&P Page 3 Par Value Book Value Maturity Date Stated RateMarket Value June 30, 2022 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of Encinitas - YTD Report Moody's YTM CUSIP Investment # Purchase Date U.S. Treasury Coupon Securities U.S. Treasury Notes1578 4,000,000.00 3,997,819.18 07/31/20222.00006/26/2018 4,002,800.00 2.705912828XQ8 Aaa U.S. Treasury Notes1572 2,000,000.00 1,997,378.44 08/31/20221.87506/26/2018 2,000,980.00 2.710912828L24 Aaa U.S. Treasury Notes1579 2,000,000.00 1,996,091.44 09/30/20221.87506/26/2018 2,000,300.00 2.7119128282W9 Aaa U.S. Treasury Notes1592 3,000,000.00 2,971,299.03 07/31/20231.25003/27/2019 2,945,850.00 2.181912828S92 U.S. Treasury Notes1604 2,000,000.00 1,992,066.55 08/31/20231.37506/26/2019 1,963,040.00 1.7299128282D1 AAAU.S. Treasury Notes1636 2,000,000.00 1,996,804.13 10/15/20230.12507/08/2021 1,928,120.00 0.24991282CAP6 Aaa U.S. Treasury Notes1638 2,000,000.00 1,994,296.71 02/15/20240.12507/08/2021 1,910,860.00 0.30191282CBM2 U.S. Treasury Notes1655 1,000,000.00 977,810.38 03/15/20240.25003/09/2022 954,810.00 1.57891282CBR1 U.S. Treasury Notes1656 2,000,000.00 1,947,307.56 06/15/20240.25003/09/2022 1,896,560.00 1.62791282CCG4 U.S. Treasury Notes1634 6,000,000.00 6,168,317.69 07/31/20241.75007/08/2021 5,849,520.00 0.394912828Y87 U.S. Treasury Notes1646 2,000,000.00 2,035,726.09 08/31/20241.25007/08/2021 1,926,800.00 0.419912828YE4 U.S. Treasury Notes1642 2,000,000.00 2,047,674.26 09/30/20241.50007/08/2021 1,934,680.00 0.432912828YH7 U.S. Treasury Notes1647 1,000,000.00 1,024,212.94 10/31/20241.50007/08/2021 966,130.00 0.453912828YM6 U.S. Treasury Notes1653 1,000,000.00 978,316.57 11/15/20240.75003/09/2022 948,200.00 1.68891282CDH1 U.S. Treasury Notes1641 2,000,000.00 2,031,297.19 02/28/20251.12507/08/2021 1,903,600.00 0.531912828ZC7 U.S. Treasury Notes1652 1,000,000.00 967,867.29 03/31/20250.50003/09/2022 933,280.00 1.705912828ZF0 U.S. Treasury Notes1645 2,000,000.00 1,979,275.64 06/30/20250.25007/08/2021 1,841,400.00 0.600912828ZW3 U.S. Treasury Notes1640 6,000,000.00 5,931,711.59 07/31/20250.25007/08/2021 5,508,960.00 0.62491282CAB7 U.S. Treasury Notes1643 2,000,000.00 1,975,895.83 08/31/20250.25007/08/2021 1,831,260.00 0.63691282CAJ0 U.S. Treasury Notes1644 2,000,000.00 1,974,550.57 09/30/20250.25007/08/2021 1,827,260.00 0.64891282CAM3 U.S. Treasury Notes1657 1,000,000.00 951,493.18 10/31/20250.25003/09/2022 911,250.00 1.75991282CAT8 U.S. Treasury Notes1639 2,000,000.00 1,984,160.07 02/28/20260.50007/08/2021 1,822,900.00 0.72091282CBQ3 AAAU.S. Treasury Notes1635 2,000,000.00 2,000,990.88 03/31/20260.75007/08/2021 1,836,960.00 0.73691282CBT7 Aaa U.S. Treasury Notes1654 1,000,000.00 965,940.68 06/30/20260.87503/09/2022 918,010.00 1.76391282CCJ8 U.S. Treasury Notes1659 4,000,000.00 3,820,780.87 07/31/20260.62503/10/2022 3,630,144.31 1.78791282CCP4 56,709,084.76 1.18054,193,674.3157,000,000.0050,099,361.85Subtotal and Average Federal Agency Coupon Securities Federal Nat'l Mortgage Assoc.1589 2,000,000.00 1,999,049.62 10/05/20222.00003/27/2019 1,999,060.00 2.1903135G0T78 Federal Nat'l Mortgage Assoc.1603 1,000,000.00 1,000,656.25 10/05/20222.00006/26/2019 999,530.00 1.7403135G0T78 Federal Farm Credit1600 1,000,000.00 1,002,081.95 10/06/20222.60006/26/2019 1,002,210.00 1.7843133EDWW8 AA+Federal Farm Credit1558 2,000,000.00 1,993,522.81 11/23/20221.82002/23/2018 1,993,300.00 2.7003133EC4Q4 Aaa AAAFederal Farm Credit1590 2,000,000.00 2,003,237.36 02/02/20232.50003/27/2019 1,998,640.00 2.2103133EJBP3 Aaa AAAFederal Farm Credit1605 4,000,000.00 3,998,863.01 06/26/20231.77006/26/2019 3,953,120.00 1.8003133EKSN7 Aaa FEDERAL FARM CREDIT BANK1591 1,000,000.00 997,725.56 07/26/20232.01003/27/2019 990,340.00 2.2343133EHST1 Federal Nat'l Mortgage Assoc.1602 2,000,000.00 2,024,648.88 09/12/20232.87506/26/2019 1,999,820.00 1.8013135G0U43 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 PM (PRF_PM2) 7.3.0 2022-10-19 Item #08D Page 27 of 88 S&P Page 4 Par Value Book Value Maturity Date Stated RateMarket Value June 30, 2022 Portfolio Details - Investments Average BalanceIssuer Portfolio Management City of Encinitas - YTD Report Moody's YTM CUSIP Investment # Purchase Date Federal Agency Coupon Securities FEDERAL FARM CREDIT BANK1606 2,000,000.00 2,010,072.33 11/01/20232.20006/26/2019 1,981,980.00 1.8053133EHN25 Federal Nat'l Mortgage Assoc.1658 1,000,000.00 957,634.45 11/07/20250.50003/09/2022 918,100.00 1.8133135G06G3 Federal Home Loan Bank1637 2,000,000.00 2,008,090.25 06/12/20260.87507/08/2021 1,835,360.00 0.7703130AN4T4 19,995,582.47 1.88519,671,460.0020,000,000.0026,846,515.30Subtotal and Average 1.302113,960,743.36 130,791,550.48 126,704,707.77 130,496,217.71Total and Average Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 PM (PRF_PM2) 7.3.0 2022-10-19 Item #08D Page 28 of 88 S&P Page 5 Par Value Book Value Stated RateMarket Value June 30, 2022 Portfolio Details - Cash Average BalanceIssuer Portfolio Management City of Encinitas - YTD Report Moody's YTM CUSIP Investment # Purchase Date Passbook/Checking Accounts Union Bank Checking Acct.1010 5,577,158.84 5,577,158.845,577,158.84 0.000SYS1010 0.00 1.302113,960,743.36 136,368,709.32 Average Balance 132,281,866.61 136,073,376.55Total Cash and Investments Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 PM (PRF_PM2) 7.3.0 2022-10-19 Item #08D Page 29 of 88 City of Encinitas - YTD Report Investments by Issuer CITY OF ENCINITAS 505 S. VULCAN Encinitas, CA 92024 (760)633-2641 Sorted by Issuer Active Investments June 30, 2022 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date Days To Maturity CollateralCUSIPInvestment # Investment Class YTM 365Remaining Cost ALMA BANK 242,672.911619020080BU0 4550.900Certificates of Deposit - Bank Amort 09/29/202306/30/2022 0.900249,000.00 242,672.91 0.900249,000.00Subtotal and Average 455 American Express National Bank 246,085.35158002589AAM4 3603.300Certificates of Deposit - Bank Amort 06/26/202306/30/2022 3.300245,000.00 246,085.35 3.300245,000.00Subtotal and Average 360 BANK HAPOALIM BM NY 244,814.28158506251AW48 6332.900Certificates of Deposit - Bank Amort 03/25/202406/30/2022 2.900246,000.00 244,814.28 2.900246,000.00Subtotal and Average 633 BMW Bank North America 246,865.92156205580AMB7 2712.900Certificates of Deposit - Bank Amort 03/29/202306/30/2022 2.900246,000.00 246,865.92 2.900246,000.00Subtotal and Average 271 CA Asset Management Program 1,072,561.711003SYS1003 10.050Managed Pool Accounts Amort 06/30/2022 0.0501,072,561.71 1,072,561.71 0.0501,072,561.71Subtotal and Average 1 Capital One NA 245,075.95155214042RGN5 182.300Certificates of Deposit - Bank Amort 07/19/202206/30/2022 2.300245,000.00 245,075.95 2.300245,000.00Subtotal and Average 18 Capital One Bank USA, NA 245,075.9515531404203Q1 182.300Certificates of Deposit - Bank Amort 07/19/202206/30/2022 2.300245,000.00 245,075.95 2.300245,000.00Subtotal and Average 18 CELTIC BANK 244,405.95161415118RSN8 4861.600Negotiable CDs Amort 10/30/202306/30/2022 1.601249,000.00 244,405.95 1.601249,000.00Subtotal and Average 486 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 DI (PRF_DI) 7.1.1No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 30 of 88 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date Days To Maturity Collateral Page 2Sorted by Issuer Investments by Issuer City of Encinitas - YTD Report CUSIP Investment # Investment Class YTM 365Remaining Cost Citi Bank NA 246,774.90156317312QH69 2712.850Certificates of Deposit - Bank Amort 03/29/202306/30/2022 2.850246,000.00 246,774.90 2.850246,000.00Subtotal and Average 271 COMMERCE BANK GENEVA MN 244,236.631595200056QRZ8 7262.300Certificates of Deposit - Bank Amort 06/26/202406/30/2022 2.300249,000.00 244,236.63 2.300249,000.00Subtotal and Average 726 COMMUNITY BANK 239,503.141610203522AT4 8611.650Certificates of Deposit - Bank Amort 11/08/202406/30/2022 1.650249,000.00 239,503.14 1.650249,000.00Subtotal and Average 861 Comenity Capital Bank 246,058.40157120033AZK5 3633.300Certificates of Deposit - Bank Amort 06/29/202306/30/2022 3.300245,000.00 246,058.40 3.300245,000.00Subtotal and Average 363 SD County Investment Pool 1,196,437.161584SYS1584 10.060Managed Pool Accounts Amort 06/30/2022 0.0601,228,627.31 1,196,437.16 0.0601,228,627.31Subtotal and Average 1 CORNHUSKER BANK 240,167.971623219255AK2 6371.100Certificates of Deposit - Bank Amort 03/29/202406/30/2022 1.100249,000.00 240,167.97 1.100249,000.00Subtotal and Average 637 CENTERSTATE BANK NA 232,621.52162015201QCJ4 1,0041.000Certificates of Deposit - Bank Amort 03/31/202506/30/2022 1.000248,000.00 232,621.52 1.000248,000.00Subtotal and Average 1,004 Denver Savings Bank 247,630.501596249398BT4 3552.250Certificates of Deposit - Bank Amort 06/21/202306/30/2022 2.250249,000.00 247,630.50 2.250249,000.00Subtotal and Average 355 EAGLEBANK 244,308.84159427002YEQ5 7202.300Certificates of Deposit - Bank Amort 06/20/202406/30/2022 2.300249,000.00 244,308.84 2.300249,000.00Subtotal and Average 720 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 DI (PRF_DI) 7.1.1No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 31 of 88 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date Days To Maturity Collateral Page 3Sorted by Issuer Investments by Issuer City of Encinitas - YTD Report CUSIP Investment # Investment Class YTM 365Remaining Cost Enerbank USA 246,774.90156829278TAU4 2712.850Certificates of Deposit - Bank Amort 03/29/202306/30/2022 2.850246,000.00 246,774.90 2.850246,000.00Subtotal and Average 271 ENTERPRISE BANK AND TRUST 240,347.25160729367SJQ8 8611.800Certificates of Deposit - Bank Amort 11/08/202406/30/2022 1.800249,000.00 240,347.25 1.800249,000.00Subtotal and Average 861 EVERGREEN BANK GROUP 233,557.021615300185JF3 9991.000Certificates of Deposit - Bank Amort 03/26/202506/30/2022 1.000249,000.00 233,557.02 1.000249,000.00Subtotal and Average 999 First Bank Puerto Rico 240,775.53160833767GAMO 8471.850Negotiable CDs Amort 10/25/202406/30/2022 1.852249,000.00 240,775.53 1.852249,000.00Subtotal and Average 847 FEDERAL FARM CREDIT BANK 990,340.0015913133EHST1 3902.010Federal Agency Coupon Securities Amort 07/26/202306/30/2022 2.234990,790.00 1,981,980.0016063133EHN25 4882.200Federal Agency Coupon Securities Amort 11/01/202306/30/2022 1.8052,032,840.00 2,972,320.00 1.9373,023,630.00Subtotal and Average 453 Federal Farm Credit 1,993,300.0015583133EC4Q4 1451.820Federal Agency Coupon Securities Fair 11/23/202206/30/2022 2.7001,922,000.00 1,998,640.0015903133EJBP3 2162.500Federal Agency Coupon Securities Amort 02/02/202306/30/2022 2.2102,021,250.00 1,002,210.0016003133EDWW8 972.600Federal Agency Coupon Securities Amort 10/06/202206/30/2022 1.7841,025,860.00 3,953,120.0016053133EKSN7 3601.770Federal Agency Coupon Securities Amort 06/26/202306/30/2022 1.8003,995,388.00 8,947,270.00 2.0978,964,498.00Subtotal and Average 251 Federal Home Loan Bank 1,835,360.0016373130AN4T4 1,4420.875Federal Agency Coupon Securities Amort 06/12/202606/30/2022 0.7702,010,100.00 1,835,360.00 0.7702,010,100.00Subtotal and Average 1,440 FIRST SERVICE BANK 244,547.88160933640VDE5 5021.700Certificates of Deposit - Bank Amort 11/15/202306/30/2022 1.700249,000.00 244,547.88 1.700249,000.00Subtotal and Average 502 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 DI (PRF_DI) 7.1.1No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 32 of 88 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date Days To Maturity Collateral Page 4Sorted by Issuer Investments by Issuer City of Encinitas - YTD Report CUSIP Investment # Investment Class YTM 365Remaining Cost FLAGSTAR BANK FSB 233,295.57162633847E4E4 8220.400Certificates of Deposit - Bank Amort 09/30/202406/30/2022 0.400249,000.00 233,295.57 0.400249,000.00Subtotal and Average 822 Federal Nat'l Mortgage Assoc. 1,999,060.0015893135G0T78 962.000Federal Agency Coupon Securities Amort 10/05/202206/30/2022 2.1901,987,180.00 1,999,820.0016023135G0U43 4382.875Federal Agency Coupon Securities Amort 09/12/202306/30/2022 1.8012,086,700.00 999,530.0016033135G0T78 962.000Federal Agency Coupon Securities Amort 10/05/202206/30/2022 1.7401,008,231.00 918,100.0016583135G06G3 1,2250.500Federal Agency Coupon Securities Amort 11/07/202506/30/2022 1.813953,700.00 5,916,510.00 1.9066,035,811.00Subtotal and Average 388 FORTUNE BANK ARNOLD 239,784.51161634969RCS5 6351.000Certificates of Deposit - Bank Amort 03/27/202406/30/2022 1.000249,000.00 239,784.51 1.000249,000.00Subtotal and Average 635 First State Bank Dequeen 244,211.731598336460CQ1 7282.300Certificates of Deposit - Bank Amort 06/28/202406/30/2022 2.300249,000.00 244,211.73 2.300249,000.00Subtotal and Average 728 1ST SECURITY BK OF WASH 225,885.33162933625CDV8 1,2020.400Certificates of Deposit - Bank Amort 10/15/202506/30/2022 0.400249,000.00 225,885.33 0.400249,000.00Subtotal and Average 1,202 First Source Bank 246,691.26156933646CJP0 2842.850Certificates of Deposit - Bank Amort 04/11/202306/30/2022 2.850246,000.00 246,691.26 2.850246,000.00Subtotal and Average 284 Industrial & Comm Bank China 249,878.97156445581EAS0 2712.900Certificates of Deposit - Bank Amort 03/29/202306/30/2022 2.900249,000.00 249,878.97 2.900249,000.00Subtotal and Average 271 KS STATEBANK 225,526.77163150116CCP2 1,2460.450Certificates of Deposit - Bank Amort 11/28/202506/30/2022 0.450249,000.00 225,526.77 0.450249,000.00Subtotal and Average 1,246 CA LAIF Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 DI (PRF_DI) 7.1.1No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 33 of 88 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date Days To Maturity Collateral Page 5Sorted by Issuer Investments by Issuer City of Encinitas - YTD Report CUSIP Investment # Investment Class YTM 365Remaining Cost 33,825,290.761012SYS1012 10.262Local Agency Investment Funds Amort 06/30/2022 0.26234,266,457.21 33,825,290.76 0.26234,266,457.21Subtotal and Average 1 LCA Bank Corp 246,683.881566501798LT7 2712.800Certificates of Deposit - Bank Amort 03/29/202306/30/2022 2.800246,000.00 246,683.88 2.800246,000.00Subtotal and Average 271 LANDMARK COMMUNITY BANK 225,641.31162851507LBZ6 1,2160.400Certificates of Deposit - Bank Amort 10/29/202506/30/2022 0.400249,000.00 225,641.31 0.400249,000.00Subtotal and Average 1,216 LEGENDS BANK 236,450.40161852465JHT7 8221.000Certificates of Deposit - Bank Amort 09/30/202406/30/2022 1.000249,000.00 236,450.40 1.000249,000.00Subtotal and Average 822 LIVE OAK BANKING COMPANY 234,127.231622538036KU7 1,0041.100Certificates of Deposit - Bank Amort 03/31/202506/30/2022 1.100249,000.00 234,127.23 1.100249,000.00Subtotal and Average 1,004 LUANA SAVINGS BANK 226,223.971627549104SS7 1,1890.400Certificates of Deposit - Bank Amort 10/02/202506/30/2022 0.400249,000.00 226,223.97 0.400249,000.00Subtotal and Average 1,189 Medallion Bank UT 249,883.95156158404DBL4 2702.900Certificates of Deposit - Bank Amort 03/28/202306/30/2022 2.900249,000.00 249,883.95 2.900249,000.00Subtotal and Average 270 Merrick Bank 246,527.43159759013KAR7 5452.400Certificates of Deposit - Bank Amort 12/28/202306/30/2022 2.400249,000.00 246,527.43 2.400249,000.00Subtotal and Average 545 MORGAN STANLEY PRIVATE BANK 242,846.28159361760AG52 7132.600Certificates of Deposit - Bank Amort 06/13/202406/30/2022 2.600246,000.00 242,846.28 2.600246,000.00Subtotal and Average 713 MIDCOUNTRY BANK Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 DI (PRF_DI) 7.1.1No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 34 of 88 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date Days To Maturity Collateral Page 6Sorted by Issuer Investments by Issuer City of Encinitas - YTD Report CUSIP Investment # Investment Class YTM 365Remaining Cost 233,542.08161759565QCS2 1,0001.000Certificates of Deposit - Bank Amort 03/27/202506/30/2022 1.000249,000.00 233,542.08 1.000249,000.00Subtotal and Average 1,000 Morgan Stanley Bank 246,865.92156561747MR37 2712.900Certificates of Deposit - Bank Amort 03/29/202306/30/2022 2.900246,000.00 246,865.92 2.900246,000.00Subtotal and Average 271 NICOLET NATIONAL BANK 240,397.051625654062JR0 6361.150Certificates of Deposit - Bank Amort 03/28/202406/30/2022 1.150249,000.00 240,397.05 1.150249,000.00Subtotal and Average 636 NELNET BANK INC 227,520.16165164034KAJ0 1,6771.450Certificates of Deposit - Bank Amort 02/02/202706/30/2022 1.450248,000.00 227,520.16 1.450248,000.00Subtotal and Average 1,677 NEW YORK COMMUNITY BANK 224,458.561633649447UZ0 1,4610.700Certificates of Deposit - Bank Amort 07/01/202606/30/2022 0.700249,000.00 224,458.56 0.700249,000.00Subtotal and Average 1,461 PACIFIC ENTERPRISE BANK 234,455.911621694231AD3 1,0041.150Certificates of Deposit - Bank Amort 03/31/202506/30/2022 1.150249,000.00 234,455.91 1.150249,000.00Subtotal and Average 1,004 PADUCAH BANK AND TRUST 239,503.141613695292FP2 8611.650Certificates of Deposit - Bank Amort 11/08/202406/30/2022 1.650249,000.00 239,503.14 1.650249,000.00Subtotal and Average 861 PEOPLES BANK/SARDIS TN 236,450.401624710673AC8 8221.000Certificates of Deposit - Bank Amort 09/30/202406/30/2022 1.000249,000.00 236,450.40 1.000249,000.00Subtotal and Average 822 POPPY BANK 239,552.94161173319FAD1 8571.650Certificates of Deposit - Bank Amort 11/04/202406/30/2022 1.650249,000.00 239,552.94 1.650249,000.00Subtotal and Average 857 REVERE BANK Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 DI (PRF_DI) 7.1.1No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 35 of 88 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date Days To Maturity Collateral Page 7Sorted by Issuer Investments by Issuer City of Encinitas - YTD Report CUSIP Investment # Investment Class YTM 365Remaining Cost 242,262.541599761400BY1 7282.300Certificates of Deposit - Bank Amort 06/28/202406/30/2022 2.300247,000.00 242,262.54 2.300247,000.00Subtotal and Average 728 STATE BANK OF INDIA 227,289.521650856285C41 1,6571.400Certificates of Deposit - Bank Amort 01/13/202706/30/2022 1.400248,000.00 227,289.52 1.400248,000.00Subtotal and Average 1,657 Sallie Mae Bank/Murray 246,078.001570795450S89 3613.300Certificates of Deposit - Bank Amort 06/27/202306/30/2022 3.300245,000.00 246,078.00 3.300245,000.00Subtotal and Average 361 TIAA FSB 245,056.35155487270LAD5 182.150Certificates of Deposit - Bank Amort 07/19/202206/30/2022 2.150245,000.00 245,056.35 2.150245,000.00Subtotal and Average 18 TOYOTA FINANCIAL SVGS BK 226,773.68164989235MMP3 1,6571.350Certificates of Deposit - Bank Amort 01/13/202706/30/2022 1.350248,000.00 226,773.68 1.350248,000.00Subtotal and Average 1,657 TRIAD BANK FRONTENAC MO 240,347.25161289579NCB7 8611.800Certificates of Deposit - Bank Amort 11/08/202406/30/2022 1.800249,000.00 240,347.25 1.800249,000.00Subtotal and Average 861 Union Bank Checking Acct. 5,577,158.841010SYS1010 1Passbook/Checking Accounts Amort 06/30/20185,577,158.84 5,577,158.845,577,158.84Subtotal and Average 1 US BANK 4,081,904.251004SYS1004 10.030Money Market Funds Amort 04/30/2019 0.0304,081,904.25 4,081,904.25 0.0304,081,904.25Subtotal and Average 1 UBS BANK USA 224,931.66163290348JN48 1,4530.750Certificates of Deposit - Bank Amort 06/23/202606/30/2022 0.750249,000.00 224,931.66 0.750249,000.00Subtotal and Average 1,453 GREENSTATE CREDIT UNION Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 DI (PRF_DI) 7.1.1No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 36 of 88 Market DateMarket Value Redemption DateSecurity Type Current Rate Call Date Days To Maturity Collateral Page 8Sorted by Issuer Investments by Issuer City of Encinitas - YTD Report CUSIP Investment # Investment Class YTM 365Remaining Cost 226,619.92164839573LCE6 1,6581.350Certificates of Deposit - Bank Amort 01/14/202706/30/2022 1.350248,000.00 226,619.92 1.350248,000.00Subtotal and Average 1,658 FIRST US BANK 225,315.12163033744AAW9 1,2360.400Certificates of Deposit - Bank Amort 11/18/202506/30/2022 0.400249,000.00 225,315.12 0.400249,000.00Subtotal and Average 1,236 U.S. Treasury Notes 2,000,980.001572912828L24 611.875U.S. Treasury Coupon Securities Fair 08/31/202206/30/2022 2.7101,934,375.00 4,002,800.001578912828XQ8 302.000U.S. Treasury Coupon Securities Fair 07/31/202206/30/2022 2.7053,891,250.00 2,000,300.0015799128282W9 911.875U.S. Treasury Coupon Securities Fair 09/30/202206/30/2022 2.7111,933,125.00 2,945,850.001592912828S92 3951.250U.S. Treasury Coupon Securities Fair 07/31/202306/30/2022 2.1812,884,687.50 1,963,040.0016049128282D1 4261.375U.S. Treasury Coupon Securities Amort 08/31/202306/30/2022 1.7291,971,562.50 5,849,520.001634912828Y87 7611.750U.S. Treasury Coupon Securities Amort 07/31/202406/30/2022 0.3946,247,500.00 1,836,960.00163591282CBT7 1,3690.750U.S. Treasury Coupon Securities Amort 03/31/202606/30/2022 0.7362,001,250.00 1,928,120.00163691282CAP6 4710.125U.S. Treasury Coupon Securities Amort 10/15/202306/30/2022 0.2491,994,375.00 1,910,860.00163891282CBM2 5940.125U.S. Treasury Coupon Securities Amort 02/15/202406/30/2022 0.3011,990,859.38 1,822,900.00163991282CBQ3 1,3380.500U.S. Treasury Coupon Securities Amort 02/28/202606/30/2022 0.7201,979,921.88 5,508,960.00164091282CAB7 1,1260.250U.S. Treasury Coupon Securities Amort 07/31/202506/30/2022 0.6245,910,000.00 1,903,600.001641912828ZC7 9731.125U.S. Treasury Coupon Securities Amort 02/28/202506/30/2022 0.5312,042,812.50 1,934,680.001642912828YH7 8221.500U.S. Treasury Coupon Securities Amort 09/30/202406/30/2022 0.4322,068,437.50 1,831,260.00164391282CAJ0 1,1570.250U.S. Treasury Coupon Securities Amort 08/31/202506/30/2022 0.6361,968,437.50 1,827,260.00164491282CAM3 1,1870.250U.S. Treasury Coupon Securities Amort 09/30/202506/30/2022 0.6481,966,875.00 1,841,400.001645912828ZW3 1,0950.250U.S. Treasury Coupon Securities Amort 06/30/202506/30/2022 0.6001,972,500.00 1,926,800.001646912828YE4 7921.250U.S. Treasury Coupon Securities Amort 08/31/202406/30/2022 0.4192,051,875.00 966,130.001647912828YM6 8531.500U.S. Treasury Coupon Securities Amort 10/31/202406/30/2022 0.4531,034,375.00 933,280.001652912828ZF0 1,0040.500U.S. Treasury Coupon Securities Amort 03/31/202506/30/2022 1.705964,218.75 948,200.00165391282CDH1 8680.750U.S. Treasury Coupon Securities Amort 11/15/202406/30/2022 1.688975,468.75 918,010.00165491282CCJ8 1,4600.875U.S. Treasury Coupon Securities Amort 06/30/202606/30/2022 1.763963,281.25 954,810.00165591282CBR1 6230.250U.S. Treasury Coupon Securities Amort 03/15/202406/30/2022 1.578973,750.00 1,896,560.00165691282CCG4 7150.250U.S. Treasury Coupon Securities Amort 06/15/202406/30/2022 1.6271,938,906.25 911,250.00165791282CAT8 1,2180.250U.S. Treasury Coupon Securities Amort 10/31/202506/30/2022 1.759946,953.13 3,630,144.31165991282CCP4 1,4910.625U.S. Treasury Coupon Securities Amort 07/31/202606/30/2022 1.7873,804,375.00 54,193,674.31 1.18656,411,171.89Subtotal and Average 821 132,281,866.61 1.009135,813,920.21Total and Average 480 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 DI (PRF_DI) 7.1.1No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 37 of 88 City of Encinitas FY 22 Activity Report CITY OF ENCINITAS 505 S. VULCAN Encinitas, CA 92024 (760)633-2641Sorted By Issuer July 1, 2021 - June 30, 2022 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 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: American Express National Bank Certificates of Deposit - Bank 245,000.00 245,000.00Subtotal and Balance 0.00 0.00245,000.00 245,000.000.180%Issuer Subtotal Issuer: BANK HAPOALIM BM NY Certificates of Deposit - Bank 246,000.00 246,000.00Subtotal and Balance 0.00 0.00246,000.00 246,000.000.180%Issuer Subtotal Issuer: BankVista Certificates of Deposit - Bank BankVista1533 0.002.000 06/30/2022 245,000.0006653ABM5 245,000.00245,000.00 0.00Subtotal and Balance 0.00 0.00 245,000.00245,000.00 0.000.000%Issuer Subtotal Issuer: BMW Bank North America Certificates of Deposit - Bank 246,000.00 246,000.00Subtotal and Balance 0.00 0.00246,000.00 246,000.000.180%Issuer Subtotal Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 38 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 2 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: CA Asset Management Program Managed Pool Accounts CA Asset Management Program1003 1,831.811.140 0.00SYS1003 0.001,070,729.90 1,072,561.71Subtotal and Balance 1,831.81 1,831.81 0.001,070,729.90 1,072,561.710.787%Issuer Subtotal Issuer: Capital One NA Certificates of Deposit - Bank 245,000.00 245,000.00Subtotal and Balance 0.00 0.00245,000.00 245,000.000.180%Issuer Subtotal Issuer: Capital One Bank USA, NA Certificates of Deposit - Bank 245,000.00 245,000.00Subtotal and Balance 0.00 0.00245,000.00 245,000.000.180%Issuer Subtotal Issuer: CELTIC BANK Negotiable CDs 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: Citi Bank NA Certificates of Deposit - Bank 246,000.00 246,000.00Subtotal and Balance 0.00 0.00246,000.00 246,000.000.180%Issuer Subtotal Issuer: Citizens State Bankl Certificates of Deposit - Bank Citizens State Bankl1530 0.001.900 12/30/2021 245,000.0017670DAC8 Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 39 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 3 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals 245,000.00245,000.00 0.00Subtotal and Balance 0.00 0.00 245,000.00245,000.00 0.000.000%Issuer Subtotal Issuer: COMMERCE BANK GENEVA MN Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: City National Bank Metropolis Certificates of Deposit - Bank City National Bank Metropolis1551 0.002.000 02/03/2022 245,000.0017801GSB7 245,000.00245,000.00 0.00Subtotal and Balance 0.00 0.00 245,000.00245,000.00 0.000.000%Issuer Subtotal Issuer: COMMUNITY BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: Comenity Capital Bank Certificates of Deposit - Bank 245,000.00 245,000.00Subtotal and Balance 0.00 0.00245,000.00 245,000.000.180%Issuer Subtotal Issuer: SD County Investment Pool Managed Pool Accounts SD County Investment Pool1584 20,211.311.130 3,000,000.00SYS1584 3,000,000.004,208,416.00 1,228,627.31Subtotal and Balance 20,211.31 20,211.31 3,000,000.004,208,416.00 1,228,627.310.901%Issuer Subtotal Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 40 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 4 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 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 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: CENTERSTATE BANK NA Certificates of Deposit - Bank 248,000.00 248,000.00Subtotal and Balance 0.00 0.00248,000.00 248,000.000.182%Issuer Subtotal Issuer: Denver Savings Bank Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: EAGLEBANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: Enerbank USA Certificates of Deposit - Bank 246,000.00 246,000.00Subtotal and Balance 0.00 0.00246,000.00 246,000.000.180%Issuer Subtotal Issuer: ENTERPRISE BANK AND TRUST Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 41 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 5 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: EVERGREEN BANK GROUP Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: First Bank Puerto Rico Negotiable CDs 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: FEDERAL FARM CREDIT BANK Federal Agency Coupon Securities FEDERAL FARM CREDIT BANK1601 0.002.200 02/28/2022 2,000,000.003133EKNM4 2,000,000.005,000,000.00 3,000,000.00Subtotal and Balance 0.00 0.00 2,000,000.005,000,000.00 3,000,000.002.200%Issuer Subtotal Issuer: Federal Farm Credit Federal Agency Coupon Securities Federal Farm Credit1536 0.002.150 03/15/2022 2,000,000.003133EHCT8 2,000,000.0011,000,000.00 9,000,000.00Subtotal and Balance 0.00 0.00 2,000,000.0011,000,000.00 9,000,000.006.600%Issuer Subtotal Issuer: Federal Home Loan Bank Federal Agency Coupon Securities Federal Home Loan Bank1524 0.001.125 07/14/2021 2,000,000.003130A8QS5 Federal Home Loan Bank1555 0.001.875 11/29/2021 2,000,000.003130AABG2 Federal Home Loan Bank1573 0.002.750 06/10/2022 2,000,000.003130AEBM1 Federal Home Loan Bank1575 0.002.375 09/10/2021 2,000,000.00313378JP7 Federal Home Loan Bank1588 0.002.420 02/15/2022 2,000,000.003130AG3Y9 Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 42 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 6 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: Federal Home Loan Bank Federal Agency Coupon Securities Federal Home Loan Bank1637 2,000,000.000.875 07/08/2021 0.003130AN4T4 10,000,000.0010,000,000.00 2,000,000.00Subtotal and Balance 2,000,000.00 2,000,000.00 10,000,000.0010,000,000.00 2,000,000.001.467%Issuer Subtotal Issuer: Federal Home Loan Mortgage Federal Agency Coupon Securities Federal Home Loan Mortgage1537 0.001.875 07/27/2021 2,000,000.003134G9N94 Federal Home Loan Mortgage1557 0.001.125 08/12/2021 2,000,000.003137EAEC9 4,000,000.004,000,000.00 0.00Subtotal and Balance 0.00 0.00 4,000,000.004,000,000.00 0.000.000%Issuer Subtotal Issuer: FIRST SERVICE BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: FLAGSTAR BANK FSB Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: Federal Nat'l Mortgage Assoc. Federal Agency Coupon Securities Federal Nat'l Mortgage Assoc.1658 1,000,000.000.500 03/09/2022 0.003135G06G3 0.005,000,000.00 6,000,000.00Subtotal and Balance 1,000,000.00 1,000,000.00 0.005,000,000.00 6,000,000.004.400%Issuer Subtotal Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 43 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 7 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 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 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: First State Bank Dequeen Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: 1ST SECURITY BK OF WASH Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: First Source Bank Certificates of Deposit - Bank 246,000.00 246,000.00Subtotal and Balance 0.00 0.00246,000.00 246,000.000.180%Issuer Subtotal Issuer: Goldman Sachs Bank USA Certificates of Deposit - Bank Goldman Sachs Bank USA1528 0.002.350 06/21/2022 245,000.0038148PKX4 245,000.00245,000.00 0.00Subtotal and Balance 0.00 0.00 245,000.00245,000.00 0.000.000%Issuer Subtotal Issuer: Industrial & Comm Bank China Certificates of Deposit - Bank Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 44 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 8 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: KS STATEBANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: CA LAIF Local Agency Investment Funds CA LAIF1012 41,056,866.000.990 44,725,000.00SYS1012 44,725,000.0037,934,591.21 34,266,457.21Subtotal and Balance 41,056,866.00 41,056,866.00 44,725,000.0037,934,591.21 34,266,457.2125.128%Issuer Subtotal Issuer: LCA Bank Corp Certificates of Deposit - Bank 246,000.00 246,000.00Subtotal and Balance 0.00 0.00246,000.00 246,000.000.180%Issuer Subtotal Issuer: LANDMARK COMMUNITY BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: LEGENDS BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 45 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 9 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 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 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: LUANA SAVINGS BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: Medallion Bank UT Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: Merrick Bank Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: MORGAN STANLEY PRIVATE BANK Certificates of Deposit - Bank 246,000.00 246,000.00Subtotal and Balance 0.00 0.00246,000.00 246,000.000.180%Issuer Subtotal Issuer: MIDCOUNTRY BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 46 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 10 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: Morgan Stanley Bank Certificates of Deposit - Bank 246,000.00 246,000.00Subtotal and Balance 0.00 0.00246,000.00 246,000.000.180%Issuer Subtotal Issuer: NICOLET NATIONAL BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: NELNET BANK INC Certificates of Deposit - Bank NELNET BANK INC1651 248,000.001.450 02/02/2022 0.0064034KAJ0 0.000.00 248,000.00Subtotal and Balance 248,000.00 248,000.00 0.000.00 248,000.000.182%Issuer Subtotal Issuer: NEW YORK COMMUNITY BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: PACIFIC ENTERPRISE BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: PADUCAH BANK AND TRUST Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 47 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 11 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: PADUCAH BANK AND TRUST Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: PEOPLES BANK/SARDIS TN Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: POPPY BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: REVERE BANK Certificates of Deposit - Bank 247,000.00 247,000.00Subtotal and Balance 0.00 0.00247,000.00 247,000.000.181%Issuer Subtotal Issuer: STATE BANK OF INDIA Certificates of Deposit - Bank STATE BANK OF INDIA1650 248,000.001.400 01/13/2022 0.00856285C41 0.000.00 248,000.00Subtotal and Balance 248,000.00 248,000.00 0.000.00 248,000.000.182%Issuer Subtotal Issuer: Sallie Mae Bank/Murray Certificates of Deposit - Bank Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 48 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 12 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals 245,000.00 245,000.00Subtotal and Balance 0.00 0.00245,000.00 245,000.000.180%Issuer Subtotal Issuer: TIAA FSB Certificates of Deposit - Bank 245,000.00 245,000.00Subtotal and Balance 0.00 0.00245,000.00 245,000.000.180%Issuer Subtotal Issuer: TOYOTA FINANCIAL SVGS BK Certificates of Deposit - Bank TOYOTA FINANCIAL SVGS BK1649 248,000.001.350 01/13/2022 0.0089235MMP3 0.000.00 248,000.00Subtotal and Balance 248,000.00 248,000.00 0.000.00 248,000.000.182%Issuer Subtotal Issuer: TRIAD BANK FRONTENAC MO Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: Union Bank Checking Acct. Passbook/Checking Accounts Union Bank Checking Acct.1010 87,297,965.42 86,758,955.20SYS1010 86,758,955.205,038,148.62 5,577,158.84Subtotal and Balance 87,297,965.42 87,297,965.42 86,758,955.205,038,148.62 5,577,158.844.090%Issuer Subtotal Issuer: US BANK Money Market Funds US BANK1004 49,664,218.551.370 64,962,503.84SYS1004 64,962,503.8419,380,189.54 4,081,904.25Subtotal and Balance 49,664,218.55 49,664,218.55 64,962,503.8419,380,189.54 4,081,904.252.993%Issuer Subtotal Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 49 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 13 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: UBS BANK USA Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: GREENSTATE CREDIT UNION Certificates of Deposit - Bank GREENSTATE CREDIT UNION1648 248,000.001.350 01/14/2022 0.0039573LCE6 0.000.00 248,000.00Subtotal and Balance 248,000.00 248,000.00 0.000.00 248,000.000.182%Issuer Subtotal Issuer: FIRST US BANK Certificates of Deposit - Bank 249,000.00 249,000.00Subtotal and Balance 0.00 0.00249,000.00 249,000.000.183%Issuer Subtotal Issuer: U.S. Treasury Notes U.S. Treasury Coupon Securities U.S. Treasury Notes1523 0.001.125 08/02/2021 2,000,000.00912828S76 U.S. Treasury Notes1556 0.001.125 09/30/2021 2,000,000.00912828T34 U.S. Treasury Notes1574 0.002.000 11/01/2021 2,000,000.00912828F96 U.S. Treasury Notes1634 6,000,000.001.750 07/08/2021 0.00912828Y87 U.S. Treasury Notes1635 2,000,000.000.750 07/08/2021 0.0091282CBT7 U.S. Treasury Notes1636 2,000,000.000.125 07/08/2021 0.0091282CAP6 U.S. Treasury Notes1638 2,000,000.000.125 07/08/2021 0.0091282CBM2 U.S. Treasury Notes1639 2,000,000.000.500 07/08/2021 0.0091282CBQ3 U.S. Treasury Notes1640 6,000,000.000.250 07/08/2021 0.0091282CAB7 U.S. Treasury Notes1641 2,000,000.001.125 07/08/2021 0.00912828ZC7 U.S. Treasury Notes1642 2,000,000.001.500 07/08/2021 0.00912828YH7 U.S. Treasury Notes1643 2,000,000.000.250 07/08/2021 0.0091282CAJ0 U.S. Treasury Notes1644 2,000,000.000.250 07/08/2021 0.0091282CAM3 U.S. Treasury Notes1645 2,000,000.000.250 07/08/2021 0.00912828ZW3 Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 50 of 88 Current Rate Transaction Date Balance Beginning Balance Ending Par Value Page 14 Percent of Portfolio Par Value July 1, 2021 - June 30, 2022 Activity Report City of Encinitas FY 22 CUSIP Investment # Issuer Purchases or Deposits Redemptions or Withdrawals Issuer: U.S. Treasury Notes U.S. Treasury Coupon Securities U.S. Treasury Notes1646 2,000,000.001.250 07/08/2021 0.00912828YE4 U.S. Treasury Notes1647 1,000,000.001.500 07/08/2021 0.00912828YM6 U.S. Treasury Notes1652 1,000,000.000.500 03/09/2022 0.00912828ZF0 U.S. Treasury Notes1653 1,000,000.000.750 03/09/2022 0.0091282CDH1 U.S. Treasury Notes1654 1,000,000.000.875 03/09/2022 0.0091282CCJ8 U.S. Treasury Notes1655 1,000,000.000.250 03/09/2022 0.0091282CBR1 U.S. Treasury Notes1656 2,000,000.000.250 03/09/2022 0.0091282CCG4 U.S. Treasury Notes1657 1,000,000.000.250 03/09/2022 0.0091282CAT8 U.S. Treasury Notes1659 4,000,000.000.625 03/10/2022 0.0091282CCP4 6,000,000.0019,000,000.00 57,000,000.00Subtotal and Balance 44,000,000.00 44,000,000.00 6,000,000.0019,000,000.00 57,000,000.0041.798%Issuer Subtotal Issuer: Wells Fargo Bank Certificates of Deposit - Bank Wells Fargo Bank1535 0.002.250 06/30/2022 245,000.00949763JG2 245,000.00245,000.00 0.00Subtotal and Balance 0.00 0.00 245,000.00245,000.00 0.000.000%Issuer Subtotal 135,007,075.27 136,368,709.32Total224,671,459.04226,033,093.09100.000% Portfolio FY22 AC Run Date: 08/31/2022 - 14:01 DA (PRF_DA) 7.2.0 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 51 of 88 Page 1 June 30, 2022 Interest Earnings Summary Month EndingJune 30 Fiscal Year To Date Portfolio Management City of Encinitas-MTH Report CD/Coupon/Discount Investments: 109,959.08Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 291,834.68 ( 304,051.37) 1,434,289.34 291,834.70 ( 308,383.33) Less Accrued Interest at Purchase During Period ( 0.00)( 106,577.27) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 97,742.39 10,145.13 0.00 1,311,163.44 37,480.94 0.00 107,887.52 1,348,644.38 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: 1,349.70Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 63,941.98 ( 40,595.84) 80,483.99 63,941.98 ( 37,452.19) Interest Earned during Period 24,695.84 106,973.78 Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period 122,438.23 10,145.13 0.00 1,418,137.22 37,480.94 0.00 132,583.36 1,455,618.16 Portfolio ENCI ACData Updated: SET_MTH: 08/03/2022 14:47 Run Date: 08/03/2022 - 14:47 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.6.1 3 2022-10-19 Item #08D Page 52 of 88 City of Encinitas - YTD Report Interest Earnings CITY OF ENCINITAS 505 S. VULCAN Encinitas, CA 92024 (760)633-2641Sorted by Security Type - Maturity Date July 1, 2021 - June 30, 2022 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 5,577,158.8410105,577,158.84UBCKG 0.00 0.00 0.000015,038,148.62SYS1010 5,577,158.84Subtotal 5,577,158.84 0.000.000.005,038,148.62 Security Type: Local Agency Investment Funds 34,266,457.21101234,266,457.21 0.990LAIF 84,706.12 0.00 84,706.120.22300137,934,591.21SYS1012 34,266,457.21Subtotal 34,266,457.21 0.223 84,706.120.0084,706.1237,934,591.21 Security Type: Managed Pool Accounts 1,228,627.3115841,228,627.31 1.130COUNTY 15,702.98 0.00 15,702.980.3730014,208,416.00SYS1584 1,072,561.7110031,072,561.71 1.140CAMP 2,791.91 0.00 2,791.910.2610011,070,729.90SYS1003 2,301,189.02Subtotal 2,301,189.02 0.350 18,494.890.0018,494.895,279,145.90 Security Type: Money Market Funds 4,081,904.2510044,081,904.25 1.370UBCUST 3,772.77 0.00 3,772.770.01900119,380,189.54SYS1004 4,081,904.25Subtotal 4,081,904.25 0.019 3,772.770.003,772.7719,380,189.54 Security Type: Certificates of Deposit - Bank 0.0015300.00 1.900CITIZN12/30/2021 2,321.13 0.00 2,321.131.900001245,000.0017670DAC8 0.0015510.00 2.000CNBMET02/03/2022 2,913.13 0.00 2,913.132.000001245,000.0017801GSB7 0.0015280.00 2.350GSBNK06/21/2022 5,599.76 0.00 5,599.762.350001245,000.0038148PKX4 0.0015330.00 2.000BKVIST06/30/2022 4,886.56 0.00 4,886.562.000001245,000.0006653ABM5 0.0015350.00 2.250WFBANK06/30/2022 5,497.36 0.00 5,497.362.250001245,000.00949763JG2 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 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 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 IE (PRF_IE) 7.2.0No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 53 of 88 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, 2021 - June 30, 2022 Interest Earnings City of Encinitas - YTD Report Annualized YieldCUSIPInvestment # Interest Earned Security Type: Certificates of Deposit - Bank 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 996.00 0.00 996.000.400001249,000.0033847E4E4 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 996.00 0.00 996.000.400001249,000.00549104SS7 249,000.001629249,000.00 0.400FSECWA10/15/2025 995.98 0.00 995.980.400001249,000.0033625CDV8 249,000.001628249,000.00 0.400LDMCB10/29/2025 995.97 0.00 995.970.400001249,000.0051507LBZ6 249,000.001630249,000.00 0.400USBI11/18/2025 995.98 0.00 995.980.400001249,000.0033744AAW9 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 IE (PRF_IE) 7.2.0No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 54 of 88 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, 2021 - June 30, 2022 Interest Earnings City of Encinitas - YTD Report Annualized YieldCUSIPInvestment # Interest Earned Security Type: Certificates of Deposit - Bank 249,000.001631249,000.00 0.450KANBNK11/28/2025 1,120.55 0.00 1,120.550.450001249,000.0050116CCP2 249,000.001632249,000.00 0.750UBS06/23/2026 1,867.49 0.00 1,867.490.750001249,000.0090348JN48 249,000.001633249,000.00 0.700NYCB07/01/2026 1,743.00 0.00 1,743.000.700001249,000.00649447UZ0 248,000.001649248,000.00 1.350TOYFBN01/13/2027 1,550.17 0.00 1,550.171.3500010.0089235MMP3 248,000.001650248,000.00 1.400SBIIN01/13/2027 1,607.58 0.00 1,607.581.4000010.00856285C41 248,000.001648248,000.00 1.350UNIICC01/14/2027 1,531.83 0.00 1,531.831.3500010.0039573LCE6 248,000.001651248,000.00 1.450NELNTB02/02/2027 1,467.95 0.00 1,467.951.4500010.0064034KAJ0 12,644,000.00Subtotal 12,644,000.00 1.806 236,378.820.00236,378.8212,877,000.00 Security Type: Negotiable CDs 249,000.001614249,000.00 1.600CELTIC10/30/2023 3,984.02 0.00 3,984.021.600001249,000.0015118RSN8 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 8,590.560.008,590.56498,000.00 Security Type: U.S. Treasury Coupon Securities 0.0015230.00 1.125UST07/31/2021 1,864.64 1,037.57 2,902.211.7660011,998,962.43912828S76 0.0015560.00 1.125UST09/30/2021 5,594.26 6,649.83 12,244.092.4640011,993,350.17912828T34 0.0015740.00 2.000UST10/31/2021 13,260.87 4,130.47 17,391.342.6070011,995,869.53912828F96 3,997,819.1815784,000,000.00 2.000UST07/31/2022 80,000.00 26,533.25 106,533.252.6830013,971,285.93912828XQ8 1,997,378.4415722,000,000.00 1.875UST08/31/2022 37,500.00 15,686.40 53,186.402.6840011,981,692.04912828L24 1,996,091.4415792,000,000.00 1.875UST09/30/2022 37,500.00 15,677.18 53,177.182.6850011,980,414.269128282W9 2,971,299.0315923,000,000.00 1.250UST07/31/2023 37,500.00 26,521.15 64,021.152.1740012,944,777.88912828S92 1,992,066.5516042,000,000.00 1.375UST08/31/2023 27,500.00 6,797.44 34,297.441.7280011,985,269.119128282D1 1,996,804.1316362,000,000.00 0.125UST10/15/2023 2,452.19 2,429.13 4,881.320.2500010.0091282CAP6 1,994,296.7116382,000,000.00 0.125UST02/15/2024 2,451.66 3,437.33 5,888.990.3020010.0091282CBM2 977,810.3816551,000,000.00 0.250UST03/15/2024 775.14 4,060.38 4,835.521.5900010.0091282CBR1 1,947,307.5616562,000,000.00 0.250UST06/15/2024 1,564.73 8,401.31 9,966.041.6460010.0091282CCG4 6,168,317.6916346,000,000.00 1.750UST07/31/2024 102,969.61 -79,182.31 23,787.300.3880010.00912828Y87 2,035,726.0916462,000,000.00 1.250UST08/31/2024 24,524.46 -16,148.91 8,375.550.4160010.00912828YE4 2,047,674.2616422,000,000.00 1.500UST09/30/2024 29,426.23 -20,763.24 8,662.990.4270010.00912828YH7 1,024,212.9416471,000,000.00 1.500UST10/31/2024 14,714.67 -10,162.06 4,552.610.4490010.00912828YM6 978,316.5716531,000,000.00 0.750UST11/15/2024 2,346.00 2,847.82 5,193.821.7050010.0091282CDH1 2,031,297.1916412,000,000.00 1.125UST02/28/2025 22,072.01 -11,515.31 10,556.700.5270010.00912828ZC7 967,867.2916521,000,000.00 0.500UST03/31/2025 1,559.03 3,648.54 5,207.571.7290010.00912828ZF0 1,979,275.6416452,000,000.00 0.250UST06/30/2025 4,904.89 6,775.64 11,680.530.6040010.00912828ZW3 5,931,711.5916406,000,000.00 0.250UST07/31/2025 14,709.95 21,711.59 36,421.540.6280010.0091282CAB7 1,975,895.8316432,000,000.00 0.250UST08/31/2025 4,904.90 7,458.33 12,363.230.6400010.0091282CAJ0 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 IE (PRF_IE) 7.2.0No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 55 of 88 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, 2021 - June 30, 2022 Interest Earnings City of Encinitas - YTD Report Annualized YieldCUSIPInvestment # Interest Earned Security Type: U.S. Treasury Coupon Securities 1,974,550.5716442,000,000.00 0.250UST09/30/2025 4,904.37 7,675.57 12,579.940.6520010.0091282CAM3 951,493.1816571,000,000.00 0.250UST10/31/2025 780.32 4,540.05 5,320.371.7990010.0091282CAT8 1,984,160.0716392,000,000.00 0.500UST02/28/2026 9,809.78 4,238.19 14,047.970.7230010.0091282CBQ3 2,000,990.8816352,000,000.00 0.750UST03/31/2026 14,713.11 -259.12 14,453.990.7360010.0091282CBT7 965,940.6816541,000,000.00 0.875UST06/30/2026 2,755.13 2,659.43 5,414.561.8000010.0091282CCJ8 3,820,780.8716594,000,000.00 0.625UST07/31/2026 7,803.87 13,781.56 21,585.431.8330010.0091282CCP4 57,000,000.00Subtotal 56,709,084.76 1.137 569,529.0358,667.21510,861.8218,851,621.35 Security Type: Federal Agency Coupon Securities 0.0015240.00 1.125FHLB07/14/2021 812.50 459.86 1,272.361.7870011,999,540.143130A8QS5 0.0015370.00 1.875FHLMC07/27/2021 2,708.33 -228.99 2,479.341.7400012,000,228.993134G9N94 0.0015570.00 1.125FHLMC08/12/2021 2,562.50 2,967.63 5,530.132.4070011,997,032.373137EAEC9 0.0015750.00 2.375FHLB09/10/2021 9,104.17 1,188.19 10,292.362.6470011,998,811.81313378JP7 0.0015550.00 1.875FHLB11/29/2021 15,416.67 5,032.65 20,449.322.4780011,994,967.353130AABG2 0.0015880.00 2.420FHLB02/15/2022 30,115.56 -2,343.58 27,771.982.2110012,002,343.583130AG3Y9 0.0016010.00 2.200FFCB02/28/2022 28,966.67 -5,637.74 23,328.931.7540012,005,637.743133EKNM4 0.0015360.00 2.150FFCRED03/15/2022 30,338.89 -4,369.64 25,969.251.8400012,004,369.643133EHCT8 0.0015730.00 2.750FHLB06/10/2022 51,791.67 548.97 52,340.642.7780011,999,451.033130AEBM1 1,000,656.2516031,000,000.00 2.000FNMA10/05/2022 20,000.00 -2,513.28 17,486.721.7430011,003,169.533135G0T78 1,999,049.6215892,000,000.00 2.000FNMA10/05/2022 40,000.00 3,639.75 43,639.752.1870011,995,409.873135G0T78 1,002,081.9516001,000,000.00 2.600FFCRED10/06/2022 26,000.00 -7,889.49 18,110.511.7930011,009,971.443133EDWW8 1,993,522.8115582,000,000.00 1.820FFCRED11/23/2022 36,400.00 16,421.06 52,821.062.6720011,977,101.753133EC4Q4 2,003,237.3615902,000,000.00 2.500FFCRED02/02/2023 50,000.00 -5,523.47 44,476.532.2140012,008,760.833133EJBP3 3,998,863.0116054,000,000.00 1.770FFCRED06/26/2023 70,800.00 1,153.00 71,953.001.8000013,997,710.013133EKSN7 997,725.5615911,000,000.00 2.010FFCB07/26/2023 20,100.00 2,126.75 22,226.752.233001995,598.813133EHST1 2,024,648.8816022,000,000.00 2.875FNMA09/12/2023 57,500.00 -20,588.39 36,911.611.8050012,045,237.273135G0U43 2,010,072.3316062,000,000.00 2.200FFCB11/01/2023 44,000.00 -7,554.25 36,445.751.8060012,017,626.583133EHN25 957,634.4516581,000,000.00 0.500FNMA11/07/2025 1,555.56 3,934.45 5,490.011.8430010.003135G06G3 2,008,090.2516372,000,000.00 0.875FHLB06/12/2026 17,159.72 -2,009.75 15,149.970.7680010.003130AN4T4 20,000,000.00Subtotal 19,995,582.47 1.989 534,145.97-21,186.27555,332.2435,052,968.74 136,368,709.32Total 136,073,376.55 0.920 1,455,618.1637,480.941,418,137.22134,911,665.36 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 IE (PRF_IE) 7.2.0No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 56 of 88 CITY OF ENCINITAS 505 S. VULCAN Encinitas, CA 92024 (760)633-2641 City of Encinitas Purchases Report Sorted by Issuer - Purchase Date July 1, 2021 - June 30, 2022 Original Par Value Ending Book Value Sec. TypeFund Maturity YTM Accrued Interest at PurchasePayment Periods DateCUSIPInvestment #Issuer Purchase Date Principal Purchased Rate at Purchase Federal Home Loan Bank 2,000,000.00 0.875 06/12/2026 2,008,090.252,010,100.00 Received07/08/2021 0.77012/12 - 06/12FHLB16373130AN4T4FAC001 Subtotal 2,008,090.252,010,100.00 0.002,000,000.00 Federal Nat'l Mortgage Assoc. 1,000,000.00 0.500 11/07/2025 957,634.45953,700.00 Received03/09/2022 1.81305/07 - 11/07FNMA16583135G06G3FAC001 Subtotal 957,634.45953,700.00 0.001,000,000.00 NELNET BANK INC 248,000.00 1.450 02/02/2027 248,000.00248,000.0002/02/2022 1.45008/02 - 02/02NELNTB165164034KAJ0BCD001 Subtotal 248,000.00248,000.00 0.00248,000.00 STATE BANK OF INDIA 248,000.00 1.400 01/13/2027 248,000.00248,000.0001/13/2022 1.40007/13 - 01/13SBIIN1650856285C41BCD001 Subtotal 248,000.00248,000.00 0.00248,000.00 TOYOTA FINANCIAL SVGS BK 248,000.00 1.350 01/13/2027 248,000.00248,000.0001/13/2022 1.35007/13 - 01/13TOYFBN164989235MMP3BCD001 Subtotal 248,000.00248,000.00 0.00248,000.00 GREENSTATE CREDIT UNION 248,000.00 1.350 01/14/2027 248,000.00248,000.0001/14/2022 1.35002/01 - MonthlyUNIICC164839573LCE6BCD001 Subtotal 248,000.00248,000.00 0.00248,000.00 U.S. Treasury Notes 6,000,000.00 1.750 07/31/2024 6,168,317.696,247,500.00 Received07/08/2021 0.39407/31 - 01/31UST1634912828Y87TRC001 2,000,000.00 0.750 03/31/2026 2,000,990.882,001,250.00 Received07/08/2021 0.73609/30 - 03/31UST163591282CBT7TRC001 2,000,000.00 0.125 10/15/2023 1,996,804.131,994,375.00 Received07/08/2021 0.24910/15 - 04/15UST163691282CAP6TRC001 2,000,000.00 0.125 02/15/2024 1,994,296.711,990,859.38 Received07/08/2021 0.30108/15 - 02/15UST163891282CBM2TRC001 2,000,000.00 0.500 02/28/2026 1,984,160.071,979,921.88 Received07/08/2021 0.72008/31 - 02/28UST163991282CBQ3TRC001 6,000,000.00 0.250 07/31/2025 5,931,711.595,910,000.00 Received07/08/2021 0.62407/31 - 01/31UST164091282CAB7TRC001 2,000,000.00 1.125 02/28/2025 2,031,297.192,042,812.50 Received07/08/2021 0.53108/31 - 02/28UST1641912828ZC7TRC001 2,000,000.00 1.500 09/30/2024 2,047,674.262,068,437.50 Received07/08/2021 0.43209/30 - 03/31UST1642912828YH7TRC001 2,000,000.00 0.250 08/31/2025 1,975,895.831,968,437.50 Received07/08/2021 0.63608/31 - 02/28UST164391282CAJ0TRC001 Received = Accrued Interest at Purchase was received by report ending date. Portfolio ENCI AC Run Date: 08/08/2022 - 14:01 PU (PRF_PU) 7.1.1 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 57 of 88 Original Par Value Ending Book Value Sec. Type Page 2 Fund Maturity YTM Accrued Interest at PurchasePayment Periods July 1, 2021 - June 30, 2022 Purchases Report City of Encinitas DateCUSIPInvestment #Issuer Purchase Date Principal Purchased Rate at Purchase U.S. Treasury Notes 2,000,000.00 0.250 09/30/2025 1,974,550.571,966,875.00 Received07/08/2021 0.64809/30 - 03/31UST164491282CAM3TRC001 2,000,000.00 0.250 06/30/2025 1,979,275.641,972,500.00 Received07/08/2021 0.60012/31 - 06/30UST1645912828ZW3TRC001 2,000,000.00 1.250 08/31/2024 2,035,726.092,051,875.00 Received07/08/2021 0.41908/31 - 02/28UST1646912828YE4TRC001 1,000,000.00 1.500 10/31/2024 1,024,212.941,034,375.00 Received07/08/2021 0.45310/31 - 04/30UST1647912828YM6TRC001 1,000,000.00 0.500 03/31/2025 967,867.29964,218.75 Received03/09/2022 1.70503/31 - 09/30UST1652912828ZF0TRC001 1,000,000.00 0.750 11/15/2024 978,316.57975,468.75 Received03/09/2022 1.68805/15 - 11/15UST165391282CDH1TRC001 1,000,000.00 0.875 06/30/2026 965,940.68963,281.25 Received03/09/2022 1.76306/30 - 12/31UST165491282CCJ8TRC001 1,000,000.00 0.250 03/15/2024 977,810.38973,750.00 Received03/09/2022 1.57803/15 - 09/15UST165591282CBR1TRC001 2,000,000.00 0.250 06/15/2024 1,947,307.561,938,906.25 Received03/09/2022 1.62706/15 - 12/15UST165691282CCG4TRC001 1,000,000.00 0.250 10/31/2025 951,493.18946,953.13 Received03/09/2022 1.75904/30 - 10/31UST165791282CAT8TRC001 4,000,000.00 0.625 07/31/2026 3,820,780.873,804,375.00 2,624.3103/10/2022 1.78707/31 - 01/31UST165991282CCP4TRC001 Subtotal 43,754,430.1243,796,171.89 2,624.3144,000,000.00 47,751,971.89Total Purchases 47,992,000.00 2,624.31 47,712,154.82 Received = Accrued Interest at Purchase was received by report ending date. Portfolio ENCI AC Run Date: 08/08/2022 - 14:01 PU (PRF_PU) 7.1.1 Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 58 of 88 City of Encinitas Accrued Interest CITY OF ENCINITAS 505 S. VULCAN Encinitas, CA 92024 (760)633-2641Sorted by Security Type - Maturity Date July 1, 2021 - June 30, 2022 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 29,804.981012SYS101234,266,457.21 0.990LA5 84,706.12 56,866.00 57,645.100.00 29,804.9834,266,457.21Subtotal 57,645.1084,706.12 56,866.000.00 Managed Pool Accounts 44.211003SYS10031,072,561.71 1.140LA1 2,791.91 1,831.81 1,004.310.00 7,280.851584SYS15841,228,627.31 1.130LA1 15,702.98 20,211.31 2,772.520.00 7,325.062,301,189.02Subtotal 3,776.8318,494.89 22,043.120.00 Money Market Funds 322.131004SYS10044,081,904.25 1.370LA3 3,772.77 1,574.87 2,520.030.00 322.134,081,904.25Subtotal 2,520.033,772.77 1,574.870.00 Certificates of Deposit - Bank 12.76153017670DAC80.00 1.900BCD12/30/2021 2,321.13 2,333.88 0.010.00 375.90155117801GSB70.00 2.000BCD02/03/2022 2,913.13 3,289.02 0.010.00 157.74152838148PKX40.00 2.350BCD06/21/2022 5,599.76 5,757.50 0.000.00 13.42153306653ABM50.00 2.000BCD06/30/2022 4,886.56 4,899.98 0.000.00 14.871535949763JG20.00 2.250BCD06/30/2022 5,497.36 5,512.52 -0.290.00 2,516.45155214042RGN5245,000.00 2.300BCD07/19/2022 5,635.00 5,635.00 2,516.450.00 2,516.4515531404203Q1245,000.00 2.300BCD07/19/2022 5,635.00 5,635.00 2,516.450.00 2,352.33155487270LAD5245,000.00 2.150BCD07/19/2022 5,267.50 5,267.50 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 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 Portfolio ENCI AC Run Date: 08/03/2022 - 15:48 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 2022-10-19 Item #08D Page 59 of 88 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 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 -15.681625654062JR0249,000.00 1.150BCD03/28/2024 2,863.51 2,855.67 -7.840.00 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 46.690.00 253.77162633847E4E4249,000.00 0.400BCD09/30/2024 996.00 996.00 253.770.00 0.00161852465JHT7249,000.00 1.000BCD09/30/2024 2,490.02 2,490.02 0.000.00 -13.631624710673AC8249,000.00 1.000BCD09/30/2024 2,490.02 2,483.19 -6.800.00 292.66161173319FAD1249,000.00 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 0.000.00 245.591627549104SS7249,000.00 0.400BCD10/02/2025 996.00 996.00 245.590.00 46.39162933625CDV8249,000.00 0.400BCD10/15/2025 995.98 995.98 46.390.00 2.73162851507LBZ6249,000.00 0.400BCD10/29/2025 995.97 995.97 2.730.00 32.74163033744AAW9249,000.00 0.400BCD11/18/2025 995.98 995.98 32.740.00 0.00163150116CCP2249,000.00 0.450BCD11/28/2025 1,120.55 1,120.55 0.000.00 35.81163290348JN48249,000.00 0.750BCD06/23/2026 1,867.49 1,867.49 35.810.00 4.781633649447UZ0249,000.00 0.700BCD07/01/2026 1,743.00 1,743.00 4.780.00 0.001650856285C41248,000.00 1.400BCD01/13/2027 1,607.58 0.00 1,607.580.00 0.00164989235MMP3248,000.00 1.350BCD01/13/2027 1,550.17 0.00 1,550.170.00 0.00164839573LCE6248,000.00 1.350BCD01/14/2027 1,531.83 1,265.82 266.010.00 0.00165164034KAJ0248,000.00 1.450BCD02/02/2027 1,467.95 0.00 1,467.950.00 24,629.7712,644,000.00Subtotal 28,961.19236,378.82 232,047.400.00 Negotiable CDs 10.91161415118RSN8249,000.00 1.600NCB10/30/2023 3,984.02 3,984.01 10.920.00 75.72160833767GAMO249,000.00 1.850NCB10/25/2024 4,606.54 4,606.54 75.720.00 Portfolio ENCI AC Run Date: 08/03/2022 - 15:48 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. 2022-10-19 Item #08D Page 60 of 88 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 86.63498,000.00Subtotal 86.648,590.56 8,590.550.00 U.S. Treasury Coupon Securities 9,385.361523912828S760.00 1.125TRC07/31/2021 1,864.64 11,250.00 0.000.00 5,655.741556912828T340.00 1.125TRC09/30/2021 5,594.26 11,250.00 0.000.00 6,739.131574912828F960.00 2.000TRC10/31/2021 13,260.87 20,000.00 0.000.00 33,370.171578912828XQ84,000,000.00 2.000TRC07/31/2022 80,000.00 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 15,642.271592912828S923,000,000.00 1.250TRC07/31/2023 37,500.00 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 0.00163691282CAP62,000,000.00 0.125TRC10/15/2023 2,452.19 2,500.00 525.96573.77 0.00163891282CBM22,000,000.00 0.125TRC02/15/2024 2,451.66 2,500.00 939.23987.57 0.00165591282CBR11,000,000.00 0.250TRC03/15/2024 775.14 1,250.00 733.701,208.56 0.00165691282CCG42,000,000.00 0.250TRC06/15/2024 1,564.73 2,500.00 218.581,153.85 0.001634912828Y876,000,000.00 1.750TRC07/31/2024 102,969.61 105,000.00 43,798.3445,828.73 0.001646912828YE42,000,000.00 1.250TRC08/31/2024 24,524.46 25,000.00 8,355.988,831.52 0.001642912828YH72,000,000.00 1.500TRC09/30/2024 29,426.23 30,000.00 7,540.988,114.75 0.001647912828YM61,000,000.00 1.500TRC10/31/2024 14,714.67 15,000.00 2,527.172,812.50 0.00165391282CDH11,000,000.00 0.750TRC11/15/2024 2,346.00 3,750.00 957.882,361.88 0.001641912828ZC72,000,000.00 1.125TRC02/28/2025 22,072.01 22,500.00 7,520.387,948.37 0.001652912828ZF01,000,000.00 0.500TRC03/31/2025 1,559.03 2,500.00 1,256.832,197.80 0.001645912828ZW32,000,000.00 0.250TRC06/30/2025 4,904.89 5,000.00 13.59108.70 0.00164091282CAB76,000,000.00 0.250TRC07/31/2025 14,709.95 15,000.00 6,256.916,546.96 0.00164391282CAJ02,000,000.00 0.250TRC08/31/2025 4,904.90 5,000.00 1,671.201,766.30 0.00164491282CAM32,000,000.00 0.250TRC09/30/2025 4,904.37 5,000.00 1,256.831,352.46 0.00165791282CAT81,000,000.00 0.250TRC10/31/2025 780.32 1,250.00 421.20890.88 0.00163991282CBQ32,000,000.00 0.500TRC02/28/2026 9,809.78 10,000.00 3,342.393,532.61 0.00163591282CBT72,000,000.00 0.750TRC03/31/2026 14,713.11 15,000.00 3,770.494,057.38 0.00165491282CCJ81,000,000.00 0.875TRC06/30/2026 2,755.13 4,375.00 23.781,643.65 0.00165991282CCP44,000,000.00 0.625TRC07/31/2026 7,803.87 0.00 10,428.182,624.31 101,944.4557,000,000.00Subtotal 181,723.82510,861.82 535,625.00104,542.55 Federal Agency Coupon Securities 10,437.5015243130A8QS50.00 1.125FAC07/14/2021 812.50 11,250.00 0.000.00 16,041.6715373134G9N940.00 1.875FAC07/27/2021 2,708.33 18,750.00 0.000.00 8,687.5015573137EAEC90.00 1.125FAC08/12/2021 2,562.50 11,250.00 0.000.00 14,645.831575313378JP70.00 2.375FAC09/10/2021 9,104.17 23,750.00 0.000.00 3,333.3315553130AABG20.00 1.875FAC11/29/2021 15,416.67 18,750.00 0.000.00 18,284.4415883130AG3Y90.00 2.420FAC02/15/2022 30,115.56 48,400.00 0.000.00 15,033.3316013133EKNM40.00 2.200FAC02/28/2022 28,966.67 44,000.00 0.000.00 Portfolio ENCI AC Run Date: 08/03/2022 - 15:48 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. 2022-10-19 Item #08D Page 61 of 88 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 12,661.1115363133EHCT80.00 2.150FAC03/15/2022 30,338.89 43,000.00 0.000.00 3,208.3315733130AEBM10.00 2.750FAC06/10/2022 51,791.67 55,000.00 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 7,333.3316063133EHN252,000,000.00 2.200FAC11/01/2023 44,000.00 44,000.00 7,333.330.00 0.0016583135G06G31,000,000.00 0.500FAC11/07/2025 1,555.56 2,500.00 750.001,694.44 0.0016373130AN4T42,000,000.00 0.875FAC06/12/2026 17,159.72 16,576.39 923.61340.28 181,722.4820,000,000.00Subtotal 81,063.05555,332.24 658,026.392,034.72 106,577.27130,791,550.48Total 355,776.661,418,137.22 1,514,773.33345,835.50 Portfolio ENCI AC Run Date: 08/03/2022 - 15:48 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. 2022-10-19 Item #08D Page 62 of 88 City of Encinitas - YTD Report CITY OF ENCINITAS 505 S. VULCAN Encinitas, CA 92024 (760)633-2641 Sorted By Maturity/Sale/Call Date Sales/Calls/Maturities: July 1, 2021 - June 30, 2022 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 155,717.502,000,000.001524 1.125 07/14/2021 2,000,000.00 2,000,000.00 0.00FAC07/14/2021 155,717.5002/13/2017 1.763 1,612 1,612 Federal Home Loan Bank 140,559.672,000,000.001537 1.875 07/27/2021 2,000,000.00 2,000,000.00 0.00FAC07/27/2021 140,559.6706/23/2017 1.716 1,495 1,495 Federal Home Loan Mortgage 156,781.992,000,000.001523 1.125 07/31/2021 2,000,000.00 2,000,000.00 0.00TRC07/31/2021 156,781.9902/13/2017 1.756 1,629 1,629 U.S. Treasury Notes 168,466.502,000,000.001557 1.125 08/12/2021 2,000,000.00 2,000,000.00 0.00FAC08/12/2021 168,466.5002/23/2018 2.429 1,266 1,266 Federal Home Loan Mortgage 172,135.892,000,000.001575 2.375 09/10/2021 2,000,000.00 2,000,000.00 0.00FAC09/10/2021 172,135.8906/26/2018 2.680 1,172 1,172 Federal Home Loan Bank 177,069.022,000,000.001556 1.125 09/30/2021 2,000,000.00 2,000,000.00 0.00TRC09/30/2021 177,069.0202/23/2018 2.457 1,315 1,315 U.S. Treasury Notes 175,210.602,000,000.001574 2.000 10/31/2021 2,000,000.00 2,000,000.00 0.00TRC10/31/2021 175,210.6006/26/2018 2.615 1,223 1,223 U.S. Treasury Notes 187,360.002,000,000.001555 1.875 11/29/2021 2,000,000.00 2,000,000.00 0.00FAC11/29/2021 187,360.0002/23/2018 2.487 1,375 1,375 Federal Home Loan Bank 20,966.68245,000.001530 1.900 12/30/2021 245,000.00 245,000.00 0.00BCD12/30/2021 20,966.6806/30/2017 1.900 1,644 1,644 Citizens State Bankl 22,499.60245,000.001551 2.000 02/03/2022 245,000.00 245,000.00 0.00BCD02/03/2022 22,499.6007/03/2017 2.000 1,676 1,676 City National Bank Metropolis 128,693.332,000,000.001588 2.420 02/15/2022 2,000,000.00 2,000,000.00 0.00FAC02/15/2022 128,693.3303/27/2019 2.224 1,056 1,056 Federal Home Loan Bank 94,693.782,000,000.001601 2.200 02/28/2022 2,000,000.00 2,000,000.00 0.00FAC02/28/2022 94,693.7806/26/2019 1.767 978 978 FEDERAL FARM CREDIT BANK 174,014.442,000,000.001536 2.150 03/15/2022 2,000,000.00 2,000,000.00 0.00FAC03/15/2022 174,014.4406/23/2017 1.840 1,726 1,726 Federal Farm Credit 219,861.552,000,000.001573 2.750 06/10/2022 2,000,000.00 2,000,000.00 0.00FAC06/10/2022 219,861.5506/26/2018 2.777 1,445 1,445 Federal Home Loan Bank 28,803.28245,000.001528 2.350 06/21/2022 245,000.00 245,000.00 0.00BCD06/21/2022 28,803.2806/21/2017 2.350 1,826 1,826 Goldman Sachs Bank USA 24,513.32245,000.001533 2.000 06/30/2022 245,000.00 245,000.00 0.00BCD06/30/2022 24,513.3206/30/2017 2.000 1,826 1,826 BankVista 27,577.40245,000.001535 2.250 06/30/2022 245,000.00 245,000.00 0.00BCD06/30/2022 27,577.4006/30/2017 2.250 1,826 1,826 Wells Fargo Bank 2,074,924.5525,225,000.00 25,225,000.00 0.00 2,074,924.55 2.204Total Realized Gains/Losses Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 CG (PRF_CGR1) 7.1.1No fiscal year history available Report Ver. 7.3.6.12022-10-19 Item #08D Page 63 of 88 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 245,000.001552 2.300 245,000.00 245,075.95 75.95BCD 27,912.55 27,988.5007/19/2017 2.306 Capital One NA 07/19/2022 1,826 1,808 06/30/2022 245,000.001553 2.300 245,000.00 245,075.95 75.95BCD 27,912.55 27,988.5007/19/2017 2.306 Capital One Bank USA, NA 07/19/2022 1,826 1,808 06/30/2022 245,000.001554 2.150 245,000.00 245,056.35 56.35BCD 26,092.16 26,148.5107/19/2017 2.155 TIAA FSB 07/19/2022 1,826 1,808 06/30/2022 4,000,000.001578 2.000 3,997,819.18 4,002,800.00 4,980.82TRC 427,674.16 432,654.9806/26/2018 2.694 U.S. Treasury Notes 07/31/2022 1,496 1,466 06/30/2022 2,000,000.001572 1.875 1,997,378.44 2,000,980.00 3,601.56TRC 213,512.95 217,114.5106/26/2018 2.706 U.S. Treasury Notes 08/31/2022 1,527 1,466 06/30/2022 2,000,000.001579 1.875 1,996,091.44 2,000,300.00 4,208.56TRC 213,478.74 217,687.3006/26/2018 2.715 U.S. Treasury Notes 09/30/2022 1,557 1,466 06/30/2022 2,000,000.001589 2.000 1,999,049.62 1,999,060.00 10.38FAC 142,314.07 142,324.4503/27/2019 2.180 Federal Nat'l Mortgage Assoc. 10/05/2022 1,288 1,192 06/30/2022 1,000,000.001603 2.000 1,000,656.25 999,530.00 -1,126.25FAC 52,703.03 51,576.7806/26/2019 1.709 Federal Nat'l Mortgage Assoc. 10/05/2022 1,197 1,101 06/30/2022 1,000,000.001600 2.600 1,002,081.95 1,002,210.00 128.05FAC 54,583.06 54,711.1106/26/2019 1.810 Federal Farm Credit 10/06/2022 1,198 1,101 06/30/2022 2,000,000.001558 1.820 1,993,522.81 1,993,300.00 -222.81FAC 230,065.03 229,842.2202/23/2018 2.648 Federal Farm Credit 11/23/2022 1,734 1,589 06/30/2022 2,000,000.001590 2.500 2,003,237.36 1,998,640.00 -4,597.36FAC 145,042.91 140,445.5503/27/2019 2.147 Federal Farm Credit 02/02/2023 1,408 1,192 06/30/2022 249,000.001561 2.900 249,000.00 249,883.95 883.95BCD 30,783.26 31,667.2103/28/2018 2.983 Medallion Bank UT 03/28/2023 1,826 1,556 06/30/2022 246,000.001562 2.900 246,000.00 246,865.92 865.92BCD 30,392.80 31,258.7203/29/2018 2.983 BMW Bank North America 03/29/2023 1,826 1,555 06/30/2022 246,000.001563 2.850 246,000.00 246,774.90 774.90BCD 29,868.78 30,643.6803/29/2018 2.924 Citi Bank NA 03/29/2023 1,826 1,555 06/30/2022 246,000.001568 2.850 246,000.00 246,774.90 774.90BCD 29,868.78 30,643.6803/29/2018 2.924 Enerbank USA 03/29/2023 1,826 1,555 06/30/2022 249,000.001564 2.900 249,000.00 249,878.97 878.97BCD 30,763.47 31,642.4403/29/2018 2.983 Industrial & Comm Bank China 03/29/2023 1,826 1,555 06/30/2022 246,000.001566 2.800 246,000.00 246,683.88 683.88BCD 29,344.77 30,028.6503/29/2018 2.865 LCA Bank Corp 03/29/2023 1,826 1,555 06/30/2022 246,000.001565 2.900 246,000.00 246,865.92 865.92BCD 30,392.80 31,258.7203/29/2018 2.983 Morgan Stanley Bank 03/29/2023 1,826 1,555 06/30/2022 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 CG (PRF_CGU1) 7.1.1No fiscal year history available Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 64 of 88 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, 2022 Inv. Type Purchase Date To Date Net EarningsIssuer Maturity Date Term Days Held Market Value Market Date 246,000.001569 2.850 246,000.00 246,691.26 691.26BCD 29,619.06 30,310.3204/11/2018 2.917 First Source Bank 04/11/2023 1,826 1,542 06/30/2022 249,000.001596 2.250 249,000.00 247,630.50 -1,369.50BCD 16,961.02 15,591.5206/21/2019 2.068 Denver Savings Bank 06/21/2023 1,461 1,105 06/30/2022 245,000.001580 3.300 245,000.00 246,085.35 1,085.35BCD 32,472.91 33,558.2606/26/2018 3.410 American Express National Bank 06/26/2023 1,826 1,466 06/30/2022 4,000,000.001605 1.770 3,998,863.01 3,953,120.00 -45,743.01FAC 216,858.34 171,115.3306/26/2019 1.419 Federal Farm Credit 06/26/2023 1,461 1,101 06/30/2022 245,000.001570 3.300 245,000.00 246,078.00 1,078.00BCD 32,450.76 33,528.7606/27/2018 3.410 Sallie Mae Bank/Murray 06/27/2023 1,826 1,465 06/30/2022 245,000.001571 3.300 245,000.00 246,058.40 1,058.40BCD 32,406.41 33,464.8106/29/2018 3.408 Comenity Capital Bank 06/29/2023 1,826 1,463 06/30/2022 1,000,000.001591 2.010 997,725.56 990,340.00 -7,385.56FAC 72,483.90 65,098.3403/27/2019 1.998 FEDERAL FARM CREDIT BANK 07/26/2023 1,582 1,192 06/30/2022 3,000,000.001592 1.250 2,971,299.03 2,945,850.00 -25,449.03TRC 209,056.29 183,607.2603/27/2019 1.892 U.S. Treasury Notes 07/31/2023 1,587 1,192 06/30/2022 2,000,000.001604 1.375 1,992,066.55 1,963,040.00 -29,026.55TRC 103,377.70 74,351.1506/26/2019 1.237 U.S. Treasury Notes 08/31/2023 1,527 1,101 06/30/2022 2,000,000.001602 2.875 2,024,648.88 1,999,820.00 -24,828.88FAC 111,247.49 86,418.6106/26/2019 1.415 Federal Nat'l Mortgage Assoc. 09/12/2023 1,539 1,101 06/30/2022 249,000.001619 0.900 249,000.00 242,672.91 -6,327.09BCD 5,046.81 -1,280.2803/30/2020 -0.228 ALMA BANK 09/29/2023 1,278 822 06/30/2022 2,000,000.001636 0.125 1,996,804.13 1,928,120.00 -68,684.13TRC 4,881.32 -63,802.8107/08/2021 -3.258 U.S. Treasury Notes 10/15/2023 829 358 06/30/2022 249,000.001614 1.600 249,000.00 244,405.95 -4,594.05NCB 10,642.22 6,048.1710/30/2019 0.909 CELTIC BANK 10/30/2023 1,461 975 06/30/2022 2,000,000.001606 2.200 2,010,072.33 1,981,980.00 -28,092.33FAC 109,843.44 81,751.1106/26/2019 1.348 FEDERAL FARM CREDIT BANK 11/01/2023 1,589 1,101 06/30/2022 249,000.001609 1.700 249,000.00 244,547.88 -4,452.12BCD 11,110.28 6,658.1611/15/2019 1.019 FIRST SERVICE BANK 11/15/2023 1,461 958 06/30/2022 249,000.001597 2.400 249,000.00 246,527.43 -2,472.57BCD 17,977.13 15,504.5606/28/2019 2.070 Merrick Bank 12/28/2023 1,644 1,098 06/30/2022 2,000,000.001638 0.125 1,994,296.71 1,910,860.00 -83,436.71TRC 5,888.99 -77,547.7207/08/2021 -3.965 U.S. Treasury Notes 02/15/2024 952 358 06/30/2022 1,000,000.001655 0.250 977,810.38 954,810.00 -23,000.38TRC 4,835.52 -18,164.8603/09/2022 -5.948 U.S. Treasury Notes 03/15/2024 737 114 06/30/2022 246,000.001585 2.900 246,000.00 244,814.28 -1,185.72BCD 23,336.98 22,151.2603/25/2019 2.753 BANK HAPOALIM BM NY 03/25/2024 1,827 1,194 06/30/2022 249,000.001616 1.000 249,000.00 239,784.51 -9,215.49BCD 5,628.11 -3,587.3803/27/2020 -0.637 FORTUNE BANK ARNOLD 03/27/2024 1,461 825 06/30/2022 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 CG (PRF_CGU1) 7.1.1No fiscal year history available Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 65 of 88 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, 2022 Inv. Type Purchase Date To Date Net EarningsIssuer Maturity Date Term Days Held Market Value Market Date 249,000.001625 1.150 249,000.00 240,397.05 -8,602.95BCD 6,440.94 -2,162.0103/31/2020 -0.386 NICOLET NATIONAL BANK 03/28/2024 1,458 821 06/30/2022 249,000.001623 1.100 249,000.00 240,167.97 -8,832.03BCD 6,168.38 -2,663.6503/30/2020 -0.475 CORNHUSKER BANK 03/29/2024 1,460 822 06/30/2022 246,000.001593 2.600 246,000.00 242,846.28 -3,153.72BCD 19,520.94 16,367.2206/13/2019 2.180 MORGAN STANLEY PRIVATE BANK 06/13/2024 1,827 1,114 06/30/2022 2,000,000.001656 0.250 1,947,307.56 1,896,560.00 -50,747.56TRC 9,966.04 -40,781.5203/09/2022 -6.705 U.S. Treasury Notes 06/15/2024 829 114 06/30/2022 249,000.001594 2.300 249,000.00 244,308.84 -4,691.16BCD 17,353.50 12,662.3406/20/2019 1.678 EAGLEBANK 06/20/2024 1,827 1,106 06/30/2022 249,000.001595 2.300 249,000.00 244,236.63 -4,763.37BCD 17,259.36 12,495.9906/26/2019 1.665 COMMERCE BANK GENEVA MN 06/26/2024 1,827 1,100 06/30/2022 249,000.001598 2.300 249,000.00 244,211.73 -4,788.27BCD 17,227.98 12,439.7106/28/2019 1.661 First State Bank Dequeen 06/28/2024 1,827 1,098 06/30/2022 247,000.001599 2.300 247,000.00 242,262.54 -4,737.46BCD 17,105.25 12,367.7906/28/2019 1.663 REVERE BANK 06/28/2024 1,827 1,099 06/30/2022 6,000,000.001634 1.750 6,168,317.69 5,849,520.00 -318,797.69TRC 23,787.30 -295,010.3907/08/2021 -4.876 U.S. Treasury Notes 07/31/2024 1,119 358 06/30/2022 2,000,000.001646 1.250 2,035,726.09 1,926,800.00 -108,926.09TRC 8,375.55 -100,550.5407/08/2021 -5.036 U.S. Treasury Notes 08/31/2024 1,150 358 06/30/2022 249,000.001626 0.400 249,000.00 233,295.57 -15,704.43BCD 1,743.68 -13,960.7509/30/2020 -3.203 FLAGSTAR BANK FSB 09/30/2024 1,461 639 06/30/2022 249,000.001618 1.000 249,000.00 236,450.40 -12,549.60BCD 5,607.66 -6,941.9403/30/2020 -1.238 LEGENDS BANK 09/30/2024 1,645 822 06/30/2022 249,000.001624 1.000 249,000.00 236,450.40 -12,549.60BCD 5,600.84 -6,948.7603/31/2020 -1.241 PEOPLES BANK/SARDIS TN 09/30/2024 1,644 821 06/30/2022 2,000,000.001642 1.500 2,047,674.26 1,934,680.00 -112,994.26TRC 8,662.99 -104,331.2707/08/2021 -5.195 U.S. Treasury Notes 09/30/2024 1,180 358 06/30/2022 249,000.001608 1.850 249,000.00 240,775.53 -8,224.47NCB 12,330.38 4,105.9110/28/2019 0.616 First Bank Puerto Rico 10/25/2024 1,824 977 06/30/2022 1,000,000.001647 1.500 1,024,212.94 966,130.00 -58,082.94TRC 4,552.61 -53,530.3307/08/2021 -5.329 U.S. Treasury Notes 10/31/2024 1,211 358 06/30/2022 249,000.001611 1.650 249,000.00 239,552.94 -9,447.06BCD 10,907.15 1,460.0911/04/2019 0.221 POPPY BANK 11/04/2024 1,827 969 06/30/2022 249,000.001610 1.650 249,000.00 239,503.14 -9,496.86BCD 10,862.12 1,365.2611/08/2019 0.207 COMMUNITY BANK 11/08/2024 1,827 965 06/30/2022 249,000.001607 1.800 249,000.00 240,347.25 -8,652.75BCD 11,849.57 3,196.8211/08/2019 0.486 ENTERPRISE BANK AND TRUST 11/08/2024 1,827 965 06/30/2022 249,000.001613 1.650 249,000.00 239,503.14 -9,496.86BCD 10,862.12 1,365.2611/08/2019 0.207 PADUCAH BANK AND TRUST 11/08/2024 1,827 965 06/30/2022 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 CG (PRF_CGU1) 7.1.1No fiscal year history available Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 66 of 88 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, 2022 Inv. Type Purchase Date To Date Net EarningsIssuer Maturity Date Term Days Held Market Value Market Date 249,000.001612 1.800 249,000.00 240,347.25 -8,652.75BCD 11,849.57 3,196.8211/08/2019 0.486 TRIAD BANK FRONTENAC MO 11/08/2024 1,827 965 06/30/2022 1,000,000.001653 0.750 978,316.57 948,200.00 -30,116.57TRC 5,193.82 -24,922.7503/09/2022 -8.157 U.S. Treasury Notes 11/15/2024 982 114 06/30/2022 2,000,000.001641 1.125 2,031,297.19 1,903,600.00 -127,697.19TRC 10,556.70 -117,140.4907/08/2021 -5.880 U.S. Treasury Notes 02/28/2025 1,331 358 06/30/2022 249,000.001615 1.000 249,000.00 233,557.02 -15,442.98BCD 5,634.93 -9,808.0503/26/2020 -1.741 EVERGREEN BANK GROUP 03/26/2025 1,826 826 06/30/2022 249,000.001617 1.000 249,000.00 233,542.08 -15,457.92BCD 5,628.11 -9,829.8103/27/2020 -1.747 MIDCOUNTRY BANK 03/27/2025 1,826 825 06/30/2022 248,000.001620 1.000 248,000.00 232,621.52 -15,378.48BCD 5,591.89 -9,786.5903/30/2020 -1.750 CENTERSTATE BANK NA 03/31/2025 1,827 823 06/30/2022 249,000.001622 1.100 249,000.00 234,127.23 -14,872.77BCD 6,168.40 -8,704.3703/31/2020 -1.552 LIVE OAK BANKING COMPANY 03/31/2025 1,826 822 06/30/2022 249,000.001621 1.150 249,000.00 234,455.91 -14,544.09BCD 6,448.78 -8,095.3103/30/2020 -1.444 PACIFIC ENTERPRISE BANK 03/31/2025 1,827 822 06/30/2022 1,000,000.001652 0.500 967,867.29 933,280.00 -34,587.29TRC 5,207.57 -29,379.7203/09/2022 -9.719 U.S. Treasury Notes 03/31/2025 1,118 114 06/30/2022 2,000,000.001645 0.250 1,979,275.64 1,841,400.00 -137,875.64TRC 11,680.53 -126,195.1107/08/2021 -6.500 U.S. Treasury Notes 06/30/2025 1,453 358 06/30/2022 6,000,000.001640 0.250 5,931,711.59 5,508,960.00 -422,751.59TRC 36,421.54 -386,330.0507/08/2021 -6.640 U.S. Treasury Notes 07/31/2025 1,484 358 06/30/2022 2,000,000.001643 0.250 1,975,895.83 1,831,260.00 -144,635.83TRC 12,363.23 -132,272.6007/08/2021 -6.825 U.S. Treasury Notes 08/31/2025 1,515 358 06/30/2022 2,000,000.001644 0.250 1,974,550.57 1,827,260.00 -147,290.57TRC 12,579.94 -134,710.6307/08/2021 -6.956 U.S. Treasury Notes 09/30/2025 1,545 358 06/30/2022 249,000.001627 0.400 249,000.00 226,223.97 -22,776.03BCD 1,738.23 -21,037.8010/02/2020 -4.841 LUANA SAVINGS BANK 10/02/2025 1,826 637 06/30/2022 249,000.001629 0.400 249,000.00 225,885.33 -23,114.67BCD 1,620.86 -21,493.8111/13/2020 -5.304 1ST SECURITY BK OF WASH 10/15/2025 1,797 594 06/30/2022 249,000.001628 0.400 249,000.00 225,641.31 -23,358.69BCD 1,661.77 -21,696.9210/29/2020 -5.222 LANDMARK COMMUNITY BANK 10/29/2025 1,826 609 06/30/2022 1,000,000.001657 0.250 951,493.18 911,250.00 -40,243.18TRC 5,320.37 -34,922.8103/09/2022 -11.751 U.S. Treasury Notes 10/31/2025 1,332 114 06/30/2022 1,000,000.001658 0.500 957,634.45 918,100.00 -39,534.45FAC 5,490.01 -34,044.4403/09/2022 -11.382 Federal Nat'l Mortgage Assoc. 11/07/2025 1,339 114 06/30/2022 249,000.001630 0.400 249,000.00 225,315.12 -23,684.88BCD 1,607.21 -22,077.6711/18/2020 -5.495 FIRST US BANK 11/18/2025 1,826 589 06/30/2022 249,000.001631 0.450 249,000.00 225,526.77 -23,473.23BCD 1,771.39 -21,701.8411/30/2020 -5.513 KS STATEBANK 11/28/2025 1,824 577 06/30/2022 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 CG (PRF_CGU1) 7.1.1No fiscal year history available Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 67 of 88 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, 2022 Inv. Type Purchase Date To Date Net EarningsIssuer Maturity Date Term Days Held Market Value Market Date 2,000,000.001639 0.500 1,984,160.07 1,822,900.00 -161,260.07TRC 14,047.97 -147,212.1007/08/2021 -7.564 U.S. Treasury Notes 02/28/2026 1,696 358 06/30/2022 2,000,000.001635 0.750 2,000,990.88 1,836,960.00 -164,030.88TRC 14,453.99 -149,576.8907/08/2021 -7.621 U.S. Treasury Notes 03/31/2026 1,727 358 06/30/2022 2,000,000.001637 0.875 2,008,090.25 1,835,360.00 -172,730.25FAC 15,149.97 -157,580.2807/08/2021 -8.001 Federal Home Loan Bank 06/12/2026 1,800 358 06/30/2022 249,000.001632 0.750 249,000.00 224,931.66 -24,068.34BCD 1,903.30 -22,165.0406/23/2021 -8.734 UBS BANK USA 06/23/2026 1,826 372 06/30/2022 1,000,000.001654 0.875 965,940.68 918,010.00 -47,930.68TRC 5,414.56 -42,516.1203/09/2022 -14.093 U.S. Treasury Notes 06/30/2026 1,574 114 06/30/2022 249,000.001633 0.700 249,000.00 224,458.56 -24,541.44BCD 1,747.78 -22,793.6606/30/2021 -9.129 NEW YORK COMMUNITY BANK 07/01/2026 1,827 366 06/30/2022 4,000,000.001659 0.625 3,820,780.87 3,630,144.31 -190,636.56TRC 21,585.43 -169,051.1303/10/2022 -14.292 U.S. Treasury Notes 07/31/2026 1,604 113 06/30/2022 248,000.001650 1.400 248,000.00 227,289.52 -20,710.48BCD 1,607.58 -19,102.9001/13/2022 -16.636 STATE BANK OF INDIA 01/13/2027 1,826 169 06/30/2022 248,000.001649 1.350 248,000.00 226,773.68 -21,226.32BCD 1,550.17 -19,676.1501/13/2022 -17.135 TOYOTA FINANCIAL SVGS BK 01/13/2027 1,826 169 06/30/2022 248,000.001648 1.350 248,000.00 226,619.92 -21,380.08BCD 1,531.83 -19,848.2501/14/2022 -17.492 GREENSTATE CREDIT UNION 01/14/2027 1,826 167 06/30/2022 248,000.001651 1.450 248,000.00 227,520.16 -20,479.84BCD 1,467.95 -19,011.8902/02/2022 -18.779 NELNET BANK INC 02/02/2027 1,826 149 06/30/2022 3,290,010.2989,846,667.23 86,528,513.89 -3,318,153.34 -28,143.05 -3.251Total Current Bond Positions 5,364,934.84-3,318,153.34 2,046,781.50 -2.055Total Realized and Unrealized Gains/Losses Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 CG (PRF_CGU1) 7.1.1No fiscal year history available Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 68 of 88 Unrealized Gains and Losses Passbook/Checking Accounts through June 30, 2022 Page 1 Investment # Current Rate Book Value Inv. Type Purchase DateIssuer Market Value Market Date 1003 0.050 1,072,561.71LA1 07/01/2021 CA Asset Management Program 1,072,561.71 06/30/2022 1584 0.060 1,228,627.31LA1 07/01/2021 SD County Investment Pool 1,196,437.16 06/30/2022 1012 0.262 34,266,457.21LA5 07/01/2021 CA LAIF 33,825,290.76 06/30/2022 1010 5,577,158.84PA1 07/01/2021 Union Bank Checking Acct. 5,577,158.84 06/30/2018 1004 0.030 4,081,904.25LA3 07/01/2021 US BANK 4,081,904.25 04/30/2019 1524 1.125 0.00FAC 02/13/2017 Federal Home Loan Bank 0.00 1537 1.875 0.00FAC 06/23/2017 Federal Home Loan Mortgage 0.00 1523 1.125 0.00TRC 02/13/2017 U.S. Treasury Notes 0.00 1557 1.125 0.00FAC 02/23/2018 Federal Home Loan Mortgage 0.00 1575 2.375 0.00FAC 06/26/2018 Federal Home Loan Bank 0.00 1556 1.125 0.00TRC 02/23/2018 U.S. Treasury Notes 0.00 1574 2.000 0.00TRC 06/26/2018 U.S. Treasury Notes 0.00 1555 1.875 0.00FAC 02/23/2018 Federal Home Loan Bank 0.00 1530 1.900 0.00BCD 06/30/2017 Citizens State Bankl 0.00 1551 2.000 0.00BCD 07/03/2017 City National Bank Metropolis 0.00 1588 2.420 0.00FAC 03/27/2019 Federal Home Loan Bank 0.00 1601 2.200 0.00FAC 06/26/2019 FEDERAL FARM CREDIT BANK 0.00 1536 2.150 0.00FAC 06/23/2017 Federal Farm Credit 0.00 1573 2.750 0.00FAC 06/26/2018 Federal Home Loan Bank 0.00 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 CG (PRF_CGU2) 7.1.1No fiscal year history available Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 69 of 88 Investment # Unrealized Gains and Losses Current Rate Book Value Page 2 Inv. Type Purchase DateIssuer Market Value Market Date Passbook/Checking Accounts through June 30, 2022 1528 2.350 0.00BCD 06/21/2017 Goldman Sachs Bank USA 0.00 1533 2.000 0.00BCD 06/30/2017 BankVista 0.00 1535 2.250 0.00BCD 06/30/2017 Wells Fargo Bank 0.00 136,073,376.55Total Portfolio 132,281,866.61 Portfolio ENCI ACData Updated: SET_ANNU: 08/15/2022 15:08 Run Date: 08/15/2022 - 15:08 CG (PRF_CGU2) 7.1.1No fiscal year history available Report Ver. 7.3.6.1 2022-10-19 Item #08D Page 70 of 88 The City of Encinitas Cash and Investments by Fund FY 2021-22 FY 2022 Actual Percentage of Total Interest Income GENERAL FUND 32,515,611 25.55%571,009 INFRASTRUCTURE FUNDS 2,017,093 1.59%42,974 GRANT FUNDS 1,040,057 0.83%19,926 DEVELOPMENT IMPACT FUNDS 2,801,861 2.20%91,725 MUNICIPAL IMPROVEMENTS DISTRICTS 4,459,385 3.50%45,355 DEBT SERVICE FUNDS - - - CAPITAL IMPROVEMENTS FUNDS 31,500,162 24.76%- CARDIFF SANITARY FUNDS 9,928,825 7.80%105,195 ENCINITAS SANITARY FUNDS 12,093,770 9.50%126,591 SAN DIEGUITO WATER DISTRICT FUNDS 20,296,581 15.95%212,770 OTHER PROPRIETARY FUNDS 200,925 0.16%2,667 INTERNAL SERVICE FUNDS 7,772,037 6.11%- 711 - CFD #1 DEBT SERVICE 2,281,988 1.79%14,026 712 - CFD #1 ADMINISTRATION 25,761 0.02%127 931:932 - ERGA - - 19,949 119 - OPPORTUNITY FUND - - - RESTRICTED 303,744 0.24%- ADMIN COSTS BANK FEES - - 203,304 TOTAL PER GENERAL LEDGER 127,237,800 100.00%1,455,618 To reconcile from GL to Investment Report: Not included in Market Value per Investment Report - Book Bal Checking (3,210,281) Not included in Market Value per Investment Report - Register Cash (3,555) Not included in Market Value per Investment Report - Restricted Cash (303,743) Included in Investment Report not in GL - ERGA 2,984,487 Total Market Value per Investment Report 126,704,708 Cash - Checking Account Bank Balance 5,577,159 Total Cash and Investments 132,281,867 CASH AND INVESTMENTS 2022-10-19 Item #08D Page 71 of 88 CITY OF ENCINITAS INVESTMENT OF BOND PROCEEDS For the Fiscal Year ended June 30, 2022 Maturity FY 2021-2022 GOVERNMENTAL FUNDS TRUSTEE CASH & INVESTMENTS Yield Date Income Budget ENCINITAS PUBLIC FINANCING AUTHORITY 2013 LEASE REVENUE BONDS (COMM PARK DEVELOPMENT) Bond Fund Blackrock T-Fund Institutional 1.27%$6 $6 $6 $ 6 $ - 2014 A & B LEASE REVENUE BONDS (PACIFIC VIEW PROPERTY & MOONLIGHT BEACH LIFEGUARD TOWER) Bond Fund Blackrock T-Fund Institutional 1.32%$4 $4 $4 $ 4 $ - 2015 LEASE REVENUE BONDS (PUBLIC LIBRARY) Bond Fund Blackrock T-Fund Institutional 1.32% $17 $18 $ $17 $ 18 $ - 2017 LEASE REVENUE BONDS (PARK) Bond Fund First American Government Obligations Fund 0.92% $2 $3 $2 $ 3 - 2021 FEDERALLY TAXABLE LEASE REVENUE REFUNDING BONDS (PACIFIC VIEW PROPERTY) Interest Account First American Government Obligations Fund 0.84%$ 14,992 $2 $ 14,992 $ 2 $ - ENCINITAS PUBLIC FINANCING AUTHORITY (TOTALS) (A)$ 15,021 $ 33 $ - TOTALS FOR GOVERNMENTAL FUNDS (A) $ 15,021 $ 33 $ - Maturity FY 2021-2022 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 $4 Reserve Fund-SDWD BLACKROCK FEDERAL FD INSTL 81 1.33%640,239 680 TOTAL $ 640,239 $ 684 $ - 2014 WATER REVENUE BONDS Debt Service Fund Blackrock T-Fund Institutional 1.31%$3 $3 TOTAL $3 $ 3 $ - TOTALS FOR ENTERPRISE FUNDS (B)$ 640,242 $ 687 $ - TOTAL TRUSTEE CASH & INVESTMENTS (A) + (B) $ 655,263 $ 720 $ - 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 2022-10-19 Item #08D Page 72 of 88 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 2019, 20212 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’ Annual 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. 2022-10-19 Item #08D Page 73 of 88 The City retirement plan is with CALPERS, and the City has no authority or oversight over the investments in any of those plans. Further, the City administers several deferred compensation plans. Assets held in those plans are held in trust for the participants, and are not assets of the City. The City does not have any authority over the investments held in these trusts. 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 2022-10-19 Item #08D Page 74 of 88 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. 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, 2022-10-19 Item #08D Page 75 of 88 (2) Firms must provide proof of their Financial Industry Regulatory Authority (FINRA) certification, and must disclose to the City immediately any regulatory actions or complaints against the broker assigned to the City account, (3) Firms must provide proof of their registration/license to do business in the State of California, and shall immediately disclose to the City any change in that status. (4) Firms must certify in writing that they have received, read, and agree to comply with the City of Encinitas’ most recently adopted Investment Policy. VIII. 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 deposit limit of the maximum 2022-10-19 Item #08D Page 76 of 88 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. 2022-10-19 Item #08D Page 77 of 88 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 2022-10-19 Item #08D Page 78 of 88 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 2022-10-19 Item #08D Page 79 of 88 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. 2022-10-19 Item #08D Page 80 of 88 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, 2022-10-19 Item #08D Page 81 of 88 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 2022-10-19 Item #08D Page 82 of 88 (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. 2022-10-19 Item #08D Page 83 of 88 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. 2022-10-19 Item #08D Page 84 of 88 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 2022-10-19 Item #08D Page 85 of 88 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." 2022-10-19 Item #08D Page 86 of 88 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. 2022-10-19 Item #08D Page 87 of 88 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. 2022-10-19 Item #08D Page 88 of 88