september 2020 - report final - santa monica

Information Item

1

Date: December 31, 2020 To: Mayor and City Council

From: Gigi Decavalles-Hughes, Director of Finance/City Treasurer

Subject: City Monthly Cash and Investment Report for September 2020

Introduction

In compliance with the City Charter, State law, and the City’s Investment Policy, the

attached monthly report provides information concerning City investments and cash held

and/or managed by the Director of Finance/City Treasurer as of September 30, 2020.

Discussion

The September 2020 Cash and Investment Report provides an updated review of the

City’s investment portfolio and cash position. The book value of cash and investments

held in the pooled portfolio increased by $16.8 million in September to $686.4 million. The

increase is primarily due to reimbursements of City Services Building and Fire Station 1

construction costs from bond proceeds, State loan proceeds for the Sustainable Water

Infrastructure Program (SWIP), and a large payment from Metro to BBB. Exclusive of

these large receipts, portfolio balances actually decreased by about $10 million reflecting

the continued pandemic-induced disruption of certain City revenue streams, particularly

Transient Occupancy Taxes and parking-related revenues. The pooled portfolio yield-

to-maturity was down ten basis points to 0.86% in September and is down one hundred

seventeen basis points from one year earlier, continuing to reflect the collapse in interest

rates coinciding with the pandemic-induced economic downturn. Year-to-date investment

earnings on a cash basis is up 66.9% over the same period last fiscal year due to gains

on the sale of bonds. The unprecedented swiftness and size of the rate decline continues

to provide unique opportunities to sell certain investments at large gains and still realize

a net positive cash flow over the full investment horizon of the sold investment (inclusive

of the book gain). Exclusive of these gain on sales, year-to-date investment income is

down approximately $1.1 million (30%) from the prior year. The global, state, and local

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economies continue to suffer from the on-going level of disruption and uncertainty. While

many areas, including Santa Monica, partially reopened their economies, many areas of

the economy have not reopened completely, many businesses have failed, and the

potential for future disruptions due to virus surges are nearly certain.

In addition to the pooled portfolio, the City’s total cash holdings as of September 30, 2020

included $20.7 million in debt proceeds held in trust with various fiscal agents, primarily

reflecting City Services Building and Downtown Fire Station bond proceeds, $20.2 million

in other funds held in trust, and $27,000 in petty cash/change funds for a total balance of

$727.3 million.

Socially Responsible Investing

The City’s investment policy dictates certain socially responsible guidelines that should

be adhered to in the investment of the City’s excess funds. A prime example of this is the

prohibition of investments in fossil fuel-related companies and banks that lend to those

companies. To enhance the socially responsible nature of the City’s investment portfolio,

staff continues to research and analyze green bonds and social impact bonds as potential

investment alternatives. Green bonds are issued by government agencies, private

corporations, and institutions such as the World Bank to finance projects that benefit the

climate and produce other environmentally beneficial projects. The proceeds from social

impact bonds are used for programs such as affordable housing, reducing poverty, or

other positive sustainable and social outcomes. Investments in green bonds and social

impact bonds still need to meet the City’s legal and strategic investment parameters. As

of September 30, 2020 the City’s portfolio had a total of $30.5 million in green bonds and

$8.3 million in social impact bonds. Approximately 6.4% of total invested funds are

invested in socially responsible bonds.

In compliance with Governmental Accounting Standards, the Monthly Cash and

Investment Report provides the fair market value of all investments held by the City, with

certain exceptions, as of the last day of the month. The fair market value may be greater

or less than the original purchase price (book/reported value) of the investments due to

fluctuations in the market resulting in either an unrealized gain or loss for financial

disclosure purposes only. Since it is the City’s policy to hold most securities to maturity,

these fluctuations in market value do not affect the redemption value of the securities or

the overall yield-to-maturity of the portfolio. The book values of investments shown in this

report are exclusive of amortization/accretion of premiums/discounts. As of September

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30, 2020 the market value of the City’s portfolio was approximately $1.1 million more than

the book value. While market value of the portfolio continues to exceed the book value,

the size of the unrealized gain has been reduced significantly over the last four months

as the City has realized gains through the strategic sale of certain bonds. The sharp

decline in interest rates during the pandemic provided a unique opportunity for these sales

as market prices of bonds move in an inverse relationship to interest rates.

Attached is a summary of investment activity as well as a detailed report of public monies

held by the City Treasurer as of September 30, 2020.

Prepared by: David Carr, Assistant City Treasurer

Attachments: 1 – Investment Highlights

2 – Investment Report

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ATTACHMENT 1

Investment Highlights September 30, 2020

As of September 30, 2020, the book value of the pooled cash and investment portfolio was $686.4 million, $16.8 million more than in the prior month.

Portfolio value is $77.8 million less than one year ago, primarily reflecting the revenue losses caused by the COVID pandemic, expenditures for large capital projects, and the payout of several large legal settlements.

As of September 30, 2020, yield to maturity is 0.86%. The yield is down ten basis points from the prior month and down one hundred

seventeen basis points from one year earlier reflecting the record low interest rate environment.

$450$500$550$600$650$700$750$800

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Millions

Portfolio Size

Current Year Prior Year

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Yield to MaturityCurrent Year Prior Year

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Year-to-date investment earnings (cash basis) are up 66.9% from one year earlier. The increase is entirely due to gain on sales of investments. Exclusive of these gains, year-to-date investment income is actually down approximately $1.1 million (30%) from the prior year.

Unrealized Gain/(Loss)

($2.0)

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

Jun Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Millions

As of September 30, 2020, the market value of the portfolio continues to exceed the unamortized value. However, the amount of the unrealized gain has been reduced significantly the last four months reflecting recognized gains from bond sales.

$0$2$4$6$8

$10$12$14$16$18

July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Millions

Fiscal Year-to-Date Investment Earnings(Cumulative by Month)

Current Year Prior Year

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ATTACHMENT 2

Investment Report September 30, 2020

Prepared by: Gigi Decavalles-Hughes, Director of Finance/City Treasurer David R. Carr, Assistant City Treasurer

City of Santa Monica Cash Receipts, Disbursements and Cash Balances

September 30, 2020

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Petty Cash/Change Funds $27,000.31

Cash Held in General Bank AccountUnion Bank (1) $80,288,882.48

Total Cash Held in General Bank Account $80,288,882.48Invested Funds

BNY Mellon Custodial AccountCorporate Bonds $108,581,803.88Municipal Bonds $53,659,229.21Supranationals $32,500,000.00Commercial Paper $4,994,194.44Federal Agencies Securities $331,442,990.81

Total BNY Mellon Custodial Account $531,178,218.34State of California Local Agency Investment Fund - City $74,906,450.81

Total Invested Funds $606,084,669.15Total Pooled Cash and Invested Funds $686,373,551.63

Restricted Cash/Investments Held in Trust/Debt ProceedsUnion Bank-Earthquake Recovery Redevelopment 2006 Tax Allocation Refunding Bonds Series A & B $88.28Union Bank-Civic Center Parking Project 2015 Lease Revenue Bonds $3.52Union Bank-RDA 2011 Tax Allocation Bonds $2,262,461.39BNY-2011 Parking Structure Series A & B $118.25BNY-2017 City Services Building PFA $10,025,302.81BNY-2018 Fire Station 1 PFA $8,394,131.31BNY-Public Safety Facility Bonds 2009 Refunding $23,681.31U.S. Bank-Wastewater Enterprise Revenue Bonds-2012 Refunding $0.21

Total Restricted Cash/Investments Held in Trust $20,705,787.08

Other Restricted Funds/Funds Held in TrustCemetery Perpetual Care Fund (3) $13,665,795.68Mausoleum Perpetual Care Fund (3) $1,658,055.70Union Bank - Santa Monica Redevelopment Successor Agency RPTTF $3,046,184.63Union Bank - HUD Depository Account (4) $1,599,375.96Union Bank - Payroll Account $138,049.38Unon Bank - Public Agency Family Self Sufficiency Program (2) $81,774.85

State of California Local Agency Investment Fund - RDA $868.89Total Other Funds Held in Trust $20,190,105.09

GRAND TOTAL $727,296,444.11

City of Santa Monica Cash Receipts, Disbursements and Cash Balances

September 30, 2020

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(1) This is the actual general bank account balance as of 9/30/20. This only reflects checks and warrants that have been presented for payment and deposits received by the bank. The balance on deposit per the City’s books would reflect reductions for all checks and warrants issued and an increase for all deposits transmitted. Housing Authority, Rent Control Board, and Parking Authority Funds are included in the totals. However, Successor Agency funds are not included in the pooled portfolio.

(2) The City of Santa Monica Housing Authority administers the Family Self Sufficiency Program. An escrow account is

set up for each family in the program. The Housing Authority maintains and releases the escrow funds as required by HUD regulations.

(3) The Cemetery Perpetual Care Funds and the Mausoleum Perpetual Care Funds are held in trust by Charles Schwab

& Company, Inc. and managed by the investment firm RNC Genter Capital Management. Market value is shown since a large portion of the portfolio is in equities.

(4) HUD Depository account is used to receive monthly housing assistance payments from HUD.

Pursuant to Section 711d of the City Charter, I submit the following:

Cash and Investments - August 31, 2020 669,571,930.20$ Receipts - Union Bank 61,772,853.20$ Disbursements - Union Bank (44,971,231.77)$

Cash and Investments - September 30, 2020 686,373,551.63$

Pooled portfolio only (cash and investments). Excludes certain investments held in trust by thirdparties such as bond proceeds, perpetual care funds, and other escrow accounts. Also excludespayroll account and Successor Agency account at Union Bank.

City of Santa Monica Monthly Cash and Investment Report

9 September 30, 2020

Overview As of September 30, 2020, total City cash and investments (including cash held for the Successor Agency to the Redevelopment Agency) were $727.3 million, a $6.1 million increase from the prior month. The pooled portfolio increased by $6.8 million is September primarily due to reimbursements from bond proceeds of City Services Building (CSB) and Fire Station 1 (FS1) construction costs, State loan proceeds for the Sustainable Water Infrastructure Program (SWIP), and a large payment from Metro to BBB. Exclusive of these large receipts, portfolio balances actually decreased by about $10 million reflecting the continued pandemic-induced disruption of certain City revenue streams, particularly Transient Occupancy Taxes and parking-related revenues. Restricted Cash/Investments held in Trust decreased by $10.5 million reflecting the drawdown of CSB and FS1 bond proceeds noted above. Total cash and investments are categorized as follows:

Petty Cash/Change Funds 27,000.31$ Pooled Cash and Investments 686,373,551.63$ Restricted Cash/Investment Held in Trust 20,705,787.08$ Other Funds Held in Trust 20,190,105.09$ Total 727,296,444.11$

Definitions

Basis Point – One hundredth of one percent (.01%). Book (Reported) Value – The price paid for the security at purchase. Bullets – A security with a fixed coupon or interest rate that cannot be redeemed by the issuer before the maturity

date. Callable Securities – A security that can be redeemed by the issuer before the maturity date. Duration – A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to

be received from a security. The duration of a security is a useful indicator of its price volatility for given changes in interest rates.

Green Bonds – Green bonds are used to finance projects that promote environmental and/or climate benefits. Green bonds eligible for inclusion in the City’s investment portfolio are issued by government agencies, private corporations, and institutions such as the World Bank.

Market Value – The price at which a security is currently trading and could be presumably bought or sold.



Par Value – The full face value of the security. Rebalancing – Strategy whereby low yielding securities are sold at a loss with the proceeds used to purchase higher

yielding securities. Social Impact Bonds – Social impact bonds are used to finance programs such as affordable housing, poverty

reduction, or other positive sustainable and social outcomes. Social impact bonds eligible for inclusion in the City’s investment portfolio are typically issued by government agencies, and institutions such as the World Bank.

Supranational – Supranational organizations are international financial institutions that are generally established by agreements among nations, with member nations contributing capital and participating in management. Supranational bonds finance economic and infrastructure development and support environmental protection, poverty reduction, and renewable energy around the globe, which are issued by International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.

Unrealized Gain/Loss – Difference between the current market value and purchase price (book value) of a security. Yield to Maturity – The rate of return of a security held to maturity when both interest payments and the investor’s

gain or loss (premium paid or discount taken) on the security is taken into account. Pooled Investment Portfolio As of September 30, 2020, the portfolio size (unamortized book value/purchase price) of City pooled cash and investments was $686.4 million, $16.8 million more than in the prior month. As noted above, excluding bond/loan draw downs, the portfolio actually decreased by approximately $10 million reflecting the continuing disruption of City revenue streams due to the pandemic. Since the City holds most investments to maturity, variations in portfolio book value are typically due to receipt and expenditure patterns during the month rather than any realized gains or losses on securities. Additionally, the City does not amortize premiums or accrete discounts except for financial reporting purposes on the last day of each fiscal year. Twenty-seven investments were made during the month ($84.8 million), three investments matured ($13.5 million), seven investments were called ($22.5 million), and no investments were sold. The month-end balance of cash held in the City’s general bank account is about $32.0 million less than in the prior month.



Portfolio Composition The portfolio is appropriately diversified and is in compliance with the City’s Investment Policy and applicable provisions of the State Government Code. The largest sector of the portfolio is Federal Agency Securities (48.3%). The remaining 51.7% includes Corporate Medium Term Notes (15.8%), State Local Agency Investment Fund [City LAIF account] (10.9%), Supranationals (4.8%), Cash (11.7%), Commercial Paper (0.7%), and Municipal Bonds (7.8%). This portfolio mix allows the City to maintain its primary investment objectives of safety and liquidity while attaining a rate of return consistent with the City’s Investment Policy and investment strategy. Socially Responsible Investing The City’s investment policy dictates certain socially responsible guidelines that should be adhered to in the investment of the City’s excess funds. A prime example of this is the prohibition of investments in fossil fuel-related companies and banks that lend to those companies. To enhance the socially responsible nature of the City’s investment portfolio, staff continues to research and analyze green bonds and social impact bonds as potential investment alternatives. Green bonds are issued by government agencies, private corporations, and institutions such as the World Bank to finance projects that benefit the climate and produce other environmentally beneficial projects. The proceeds from social impact bonds are used for projects such as affordable housing, reducing poverty, or other positive sustainable and social outcomes. Investments in green bonds and social impact bonds still need to meet the City’s legal and strategic investment parameters. As of September 30, 2020 the City’s portfolio had a total of $30.5 million in green bonds and $8.3 million in social impact bonds representing approximately 6.4% of total invested funds. Additionally, the economic, social, and governance (ESG) profile of corporations has been added as a component of credit analysis when considering investments in corporate medium-term notes.

Fed. Agency Bullets16.1% Callable

Agencies32.2%

Cash11.7%Corporates

15.8%

LAIF City10.9%

Comm'l Paper0.7%

Municipal Bonds7.8%

Supranationals4.8%

Portfolio Composition



Portfolio Comparison The chart to the right shows the overall structure of the portfolio by type of investment compared to last month. There were no significant changes in the structure of the portfolio from the prior month. The bond market, financial and economic conditions, and portfolio structure are continuously evaluated when making investment decisions. Rebalancing of Portfolio As noted in the previous reports, staff has expanded the parameters of rebalancing to look for opportunities to improve portfolio performance even in times of low interest rates. When conducting rebalancing, the primary portfolio objectives of safety and liquidity must be maintained. Specifically, the City may realize a book gain or loss due to the sale of a security. These rebalancing sales only occur if:

1. A net gain on the sale is realized and there is net positive cash flow over the full investment horizon of the sold investment (inclusive of the book gain), or

2. If a security is sold at a book loss, cash flow from any loss is made up by additional income resulting from the higher yield on the purchased bonds on or before the maturity date of the sold bonds or the first call date of the newly purchased bonds (whichever is earlier).

$0 $50 $100 $150 $200 $250 $300

Federal Agency Bullets

Callable Agencies

Corporates

LAIF-City

Supranationals

Municipal Bonds

Commercial Paper

Cash

Portfolio Comparison

Sep-20 Aug-20



No rebalancing actions occurred during the month. Portfolio Yield September benchmark interest rates remained near record low levels. The month-end two-year Constant Maturing Treasury security yield (CMT) did rise two basis points to 0.16% from the record low July level. The rate is still 142 basis points below the 2019 year-end level, and the five-year rate has shown a similar pattern. The two-year rate is now 271 basis points less than its eleven year high reached in October 2018. The twelve-month moving average fell 42 basis points to 0.43%. The portfolio yield-to-maturity fell by ten basis points to 0.86%. Rates are forecast to remain at or near record low levels for an extended period as world economies attempt to recover from the pandemic-induced downturn. The Portfolio Yield chart compares the month-end portfolio yield to the twelve-month moving averages of the two-year Constant Maturing Treasury (CMT) security yield and State Local Agency Investment Fund (LAIF) yield. The twelve-month moving average LAIF yield fell thirteen basis points to 1.55% in September. The LAIF month-end rate fell nine basis points to 0.69%. LAIF rate changes tend to lag the market in general and will continue to decline over the next few months. However, the City is keeping the maximum allowable balance in LAIF to take advantage of the current rate advantage. The yield-to-maturity does not include the impact of the earnings allowance earned on deposits in the City’s general bank account. This allowance is not payable to the City in cash and can only be used to offset bank fees. This rate has also declined significantly due the interest rate declines. This allowance is not included in the yield-to-maturity calculation.

0.0%

0.4%

0.8%

1.2%

1.6%

2.0%

2.4%

2.8%

Apr May Jun Jul Aug Sep

Portfolio Yield

Portfolio LAIF 2 Year T-Note



The Federal Reserve Open Market Committee left the benchmark target Fed Funds rate at a range of 0 to 0.25% at its September meeting. The economy is highly dependent on the course of the coronavirus pandemic and the continuing public health crisis, and the Fed indicated rates will stay in the same range to achieve maximum employment and a 2% long-term inflation rate. The unemployment rate did fall for the fifth consecutive month in September to 7.9% as certain areas of the economy continued to recover. However, an expected surge of the virus in the Fall and Winter could reverse this trend. Gross domestic product (GDP) did expand at a record annualized rate of 33.1% in the third quarter after contracting 31.7% the previous two quarters. However, total economic output is still below the peak level of 4th quarter 2019 and is not expected to return to that level until late 2021 or early 2022. The stock market, as measured by the Dow Jones Industrial Average decreased 2.1% in September after five consecutive months of increase, but still remains 49% above the recent low in March.

The City’s portfolio yield-to-maturity continues to decline as interest rates have plunged to record low levels and is expected to continue to remain near current levels for the foreseeable future. As a result, most callable investments are being called and therefore reinvested at the lower rate. Net investment income on a cash basis in September was $0.5 million, and year-to-date earnings were up 66.9% from the same period last fiscal year. However, as noted above, exclusive of gains on investment sales, year-to-date investment income is actually down approximately $1.1 million (30%) from the prior year.

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Par Value Book ValueMaturity

DateStated

RateMarket Value

September 30, 2020Portfolio Details - Investments

AverageBalanceIssuer

Portfolio ManagementCity of Santa Monica

Days toMaturityTermCUSIP Investment #

PurchaseDate

Federal Agency Coupon

0.157Federal Home Loan Bank12264 10,000,000.00 10,000,508.33 10/02/20200.15006/19/2020 10,000,000.00 1053130AJNZ8 1

2.003Federal National Mort Assoc12100 1,000,000.00 999,950.00 10/30/20202.00007/26/2019 1,001,540.00 4623136G0FJ5 29

1.625Federal Farm Credit Bank12162 3,000,000.00 3,000,000.00 11/13/20201.62511/13/2019 3,005,370.00 3663133EK6Z4 43

1.750Federal Home Loan Bank11879 2,500,000.00 2,500,000.00 11/24/20201.75005/24/2017 2,506,100.00 1,2803130ABBY1 54

1.600Federal Farm Credit Bank12182 3,000,000.00 3,000,000.00 12/23/20201.60012/23/2019 3,010,080.00 3663133ELEP5 83

1.554Federal Home Loan Bank12196 3,500,000.00 3,498,145.00 01/27/20211.50001/27/2020 3,515,925.00 3663130AHY98 118

0.180Federal Farm Credit Bank12251 3,000,000.00 2,998,724.42 05/14/20210.12506/09/2020 2,999,490.00 3393133ELZH0 225

0.210Federal Farm Credit Bank12260 4,000,000.00 4,000,000.00 06/23/20210.21006/23/2020 4,000,040.00 3653133ELN67 265

1.423Federal Home Loan Bank12145 4,000,000.00 4,031,280.00 07/07/20211.87510/04/2019 4,052,720.00 6423130AGLD5 279

1.202Federal Home Loan Bank11772 1,000,000.00 996,270.00 07/14/20211.12507/14/2016 1,007,900.00 1,8263130A8QS5 286

1.725Federal Home Loan Bank11796 3,000,000.00 3,000,000.00 08/24/20212.00008/24/2016 3,050,670.00 1,8263130A93A7 327

0.160Farmer Mac12348 5,000,000.00 5,000,000.00 09/28/20210.16009/28/2020 4,998,400.00 36531422BV98 362

3.000Federal Home Loan Bank12025 2,000,000.00 2,000,000.00 10/26/20213.00010/26/2018 1,988,060.00 1,0963130AF2A4 390

0.140Federal Farm Credit Bank12337 3,000,000.00 3,000,000.00 12/09/20210.14009/09/2020 2,999,580.00 4563133EL6P4 434

1.650Federal Farm Credit Bank12188 1,800,000.00 1,800,000.00 12/30/20211.65012/30/2019 1,805,724.00 7313133ELFX7 455

1.650Federal Farm Credit Bank12189 1,800,000.00 1,800,000.00 12/30/20211.65012/30/2019 1,805,724.00 7313133ELFX7 455

0.170Federal Farm Credit Bank12313 4,000,000.00 4,000,000.00 02/24/20220.17008/24/2020 3,999,240.00 5493133EL4M3 511

2.090Federal Home Loan Bank11876 1,000,000.00 1,000,000.00 04/27/20222.30004/27/2017 1,033,320.00 1,8263130ABAD8 573

0.300Fed Home Loan Mortgage Corp12240 4,000,000.00 4,000,000.00 05/05/20220.30005/05/2020 4,001,400.00 7303134GVRJ9 581

0.265Federal Farm Credit Bank12259 2,000,000.00 1,999,800.00 06/22/20220.26006/22/2020 2,003,480.00 7303133ELN26 629

0.300Fed Home Loan Mortgage Corp12271 4,000,000.00 4,000,000.00 06/30/20220.30006/30/2020 4,003,360.00 7303134GV2M9 637

0.234Federal Farm Credit Bank12279 3,000,000.00 2,997,990.00 07/13/20220.20007/13/2020 3,001,890.00 7303133ELT95 650

0.270Farmer Mac12283 10,000,000.00 10,000,000.00 07/22/20220.27007/22/2020 10,000,200.00 73031422BK33 659

0.200Fed Home Loan Mortgage Corp12315 4,000,000.00 4,000,000.00 08/19/20220.20008/19/2020 3,998,640.00 7303134GWPQ3 687

0.240Farmer Mac12327 5,000,000.00 5,000,000.00 09/08/20220.24009/08/2020 4,998,600.00 73031422BT26 707

0.600Fed Home Loan Mortgage Corp12236 2,000,000.00 2,000,000.00 10/14/20220.60004/17/2020 2,000,000.00 9103134GVLA4 743

0.550Fed Home Loan Mortgage Corp12237 2,500,000.00 2,500,000.00 10/21/20220.55004/24/2020 2,500,275.00 9103134GVLP1 750

1.800Federal National Mort Assoc12153 2,500,000.00 2,500,000.00 10/28/20221.80010/28/2019 2,502,250.00 1,0963135G0W74 757

0.250Fed Home Loan Mortgage Corp12324 3,000,000.00 3,000,145.83 11/18/20220.25008/26/2020 2,999,490.00 8143134GWQC3 778

0.350Fed Home Loan Mortgage Corp12272 2,000,000.00 2,000,000.00 12/29/20220.35006/29/2020 2,000,020.00 9133134GV2R8 819

0.300Fed Home Loan Mortgage Corp12314 3,000,000.00 3,000,000.00 02/24/20230.30008/24/2020 2,999,430.00 9143134GWRS7 876

0.750Fed Home Loan Mortgage Corp12235 2,000,000.00 2,000,000.00 04/20/20230.75004/20/2020 2,000,320.00 1,0953134GVJZ2 931

0.709Federal National Mort Assoc12238 2,500,000.00 2,503,258.33 04/20/20230.75004/24/2020 2,500,625.00 1,0913135G03D3 931

0.270Fed Home Loan Mortgage Corp12334 4,000,000.00 4,000,000.00 06/09/20230.27009/09/2020 4,000,240.00 1,0033134GWJ56 981

0.430Fed Home Loan Mortgage Corp12258 3,000,000.00 3,000,000.00 06/23/20230.43006/23/2020 3,002,550.00 1,0953134GVR75 995

0.410Fed Home Loan Mortgage Corp12285 3,000,000.00 3,000,000.00 07/20/20230.41007/20/2020 3,002,460.00 1,0953134GWAK2 1,022

0.400Farmer Mac12290 5,000,000.00 5,000,000.00 07/27/20230.40007/27/2020 5,000,050.00 1,09531422BK82 1,029

0.300Federal National Mort Assoc12296 2,000,000.00 2,000,000.00 08/03/20230.30008/03/2020 1,995,520.00 1,0953135G05P4 1,036

Portfolio INVT

CCRun Date: 12/29/2020 - 13:35 PM (PRF_PM2) 7.3.0

Report Ver. 7.3.6.1

15

YTM365

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DateStated

RateMarket Value





PurchaseDate


0.375Farmer Mac12317 6,000,000.00 5,995,500.00 08/24/20230.35008/24/2020 5,992,860.00 1,09531422BQ86 1,057

0.345Federal National Mort Assoc12320 3,000,000.00 3,000,000.00 08/25/20230.34508/25/2020 2,997,900.00 1,0953136G4Y80 1,058

0.332Federal National Mort Assoc12322 3,000,000.00 3,000,000.00 08/28/20230.33008/28/2020 2,996,850.00 1,0953136G42B8 1,061

0.300Fed Home Loan Mortgage Corp12333 3,000,000.00 3,000,000.00 09/08/20230.30009/08/2020 2,998,260.00 1,0953134GWJ49 1,072

0.290Fed Home Loan Mortgage Corp12336 3,000,000.00 3,000,000.00 09/08/20230.29009/10/2020 2,998,290.00 1,0933134GWL53 1,072

0.260Farmer Mac12350 3,000,000.00 3,000,000.00 09/29/20230.26009/29/2020 3,000,000.00 1,09531422BW97 1,093

1.750Farmer Mac12179 2,000,000.00 2,000,000.00 12/20/20231.75012/20/2019 2,036,140.00 1,46131422BQR4 1,175

0.300Fed Home Loan Mortgage Corp12352 2,000,000.00 2,000,000.00 12/29/20230.30009/30/2020 2,000,000.00 1,1853134GWXB7 1,184

0.486Federal Farm Credit Bank12288 2,000,000.00 1,998,886.11 01/22/20240.47007/23/2020 2,000,120.00 1,2783133ELX25 1,208

0.450Fed Home Loan Mortgage Corp12293 2,500,000.00 2,500,031.25 01/29/20240.45007/30/2020 2,498,750.00 1,2783134GWFZ4 1,215

0.450Federal National Mort Assoc12291 2,000,000.00 2,000,000.00 01/30/20240.45007/30/2020 1,997,260.00 1,2793136G4E90 1,216

1.600Fed Home Loan Mortgage Corp12214 2,500,000.00 2,500,000.00 02/26/20241.60002/26/2020 2,510,675.00 1,4613134GVCP1 1,243

1.050Federal Farm Credit Bank12224 2,500,000.00 2,500,000.00 03/12/20241.05003/12/2020 2,505,550.00 1,4613133ELSL9 1,258

0.320Federal National Mort Assoc12347 4,000,000.00 4,000,000.00 03/28/20240.32009/28/2020 3,997,640.00 1,2773136G43W1 1,274

0.500Fed Home Loan Mortgage Corp12243 2,000,000.00 2,000,000.00 06/03/20240.50006/03/2020 2,001,440.00 1,4613134GVYX0 1,341

1.900Farmer Mac12148 5,000,000.00 5,000,000.00 07/15/20241.90010/15/2019 5,003,450.00 1,73531422BMV9 1,383

0.450Federal Home Loan Bank12321 4,000,000.00 4,000,000.00 08/27/20240.45008/27/2020 3,995,440.00 1,4613130AJZH5 1,426

0.430Federal Farm Credit Bank12340 3,000,000.00 3,000,000.00 09/10/20240.43009/10/2020 2,998,080.00 1,4613133EL6V1 1,440



0.400Federal National Mort Assoc12342 4,000,000.00 4,000,000.00 09/16/20240.40009/16/2020 3,995,360.00 1,4613136G43H4 1,446

0.375Fed Home Loan Mortgage Corp12345 3,000,000.00 3,000,000.00 09/23/20240.37509/23/2020 2,998,380.00 1,4613134GWR81 1,453

1.890Federal Farm Credit Bank12140 2,000,000.00 2,000,000.00 09/27/20241.89009/27/2019 2,025,360.00 1,8273133EKU20 1,457

1.900Farmer Mac12146 5,000,000.00 5,000,000.00 10/15/20241.90010/15/2019 5,003,450.00 1,82731422BMR8 1,475

1.800Federal National Mort Assoc12202 2,500,000.00 2,500,000.00 10/30/20241.80001/30/2020 2,501,625.00 1,7353136G4UD3 1,490

1.830Fed Home Loan Mortgage Corp12180 2,400,000.00 2,400,000.00 12/16/20241.83012/16/2019 2,424,384.00 1,8273134GUC99 1,537

1.920Fed Home Loan Mortgage Corp12185 2,000,000.00 2,000,000.00 01/06/20251.92001/06/2020 2,007,760.00 1,8273134GUF21 1,558

1.150Federal Farm Credit Bank12231 2,500,000.00 2,500,000.00 04/09/20251.15004/09/2020 2,500,575.00 1,8263133ELWC4 1,651

1.000Farmer Mac12239 4,000,000.00 4,000,000.00 04/29/20251.00004/29/2020 4,000,640.00 1,82631422BZA1 1,671

0.650Fed Home Loan Mortgage Corp12256 2,000,000.00 2,000,000.00 06/09/20250.65006/09/2020 2,002,120.00 1,8263134GVE95 1,712

0.810Fed Home Loan Mortgage Corp12254 2,000,000.00 2,000,000.00 06/17/20250.81006/17/2020 2,003,060.00 1,8263134GVM96 1,720

0.800Federal National Mort Assoc12253 3,000,000.00 3,000,000.00 06/17/20250.80006/17/2020 3,004,620.00 1,8263136G4WQ2 1,720

0.500Fed Home Loan Mortgage Corp12351 2,000,000.00 2,000,000.00 06/30/20250.50009/30/2020 2,000,000.00 1,7343134GWXE1 1,733

0.700Federal National Mort Assoc12267 2,000,000.00 2,000,000.00 06/30/20250.70006/30/2020 2,000,820.00 1,8263136G4XU2 1,733

0.700Federal National Mort Assoc12278 4,000,000.00 4,000,000.00 07/23/20250.70007/23/2020 4,002,680.00 1,8263136G4YV9 1,756

0.600Federal National Mort Assoc12294 5,000,000.00 5,000,000.00 07/29/20250.60007/30/2020 4,992,050.00 1,8253136G4G23 1,762

0.500Federal National Mort Assoc12303 3,000,000.00 3,000,000.00 08/18/20250.50008/18/2020 2,995,170.00 1,8263136G4K85 1,782

0.504Federal National Mort Assoc12304 3,000,000.00 2,999,400.00 08/18/20250.50008/18/2020 2,998,530.00 1,8263136G4H71 1,782

Portfolio INVT


YTM365

Page 3


DateStated

RateMarket Value





PurchaseDate


0.470Federal National Mort Assoc12308 2,000,000.00 1,998,000.00 08/19/20250.45008/19/2020 1,997,880.00 1,8263136G4M34 1,783

0.700Fed Home Loan Mortgage Corp12299 2,000,000.00 2,000,000.00 08/25/20250.70008/25/2020 1,991,820.00 1,8263134GWLM6 1,789

0.700Fed Home Loan Mortgage Corp12331 4,000,000.00 4,000,000.00 09/02/20250.70009/02/2020 4,001,320.00 1,8263134GW3B0 1,797

0.500Federal National Mort Assoc12338 5,000,000.00 5,000,000.00 09/08/20250.50009/08/2020 5,004,050.00 1,8263136G42Z5 1,803

0.520Fed Home Loan Mortgage Corp12332 3,000,000.00 3,000,000.00 09/16/20250.52009/16/2020 2,991,390.00 1,8263134GWJ98 1,811

0.570Farmer Mac12346 3,000,000.00 3,000,000.00 09/17/20250.57009/17/2020 3,003,600.00 1,82631422BV23 1,812

257,017,889.27 1,168257,265,282.00257,000,000.00236,201,209.27Subtotal and Average 0.701 1,020

Federal Agency Discount

0.132Federal Home Loan Bank12270 5,000,000.00 4,998,140.28 10/06/20200.13006/25/2020 4,999,950.00 103313384J67 5

0.132Federal Home Loan Bank12273 5,000,000.00 4,998,140.28 10/06/20200.13006/25/2020 4,999,950.00 103313384J67 5

0.124Federal Home Loan Bank12244 5,000,000.00 4,996,900.00 12/01/20200.12005/29/2020 4,999,250.00 186313384R68 61

0.101Federal Farm Credit Bank12310 2,500,000.00 2,499,180.56 12/09/20200.10008/13/2020 2,499,575.00 118313312S68 69

0.114Federal Home Loan Bank12289 5,000,000.00 4,997,158.33 01/26/20210.11007/24/2020 4,998,550.00 186313385BB1 117

0.112Federal Home Loan Bank12295 10,000,000.00 9,994,438.89 01/28/20210.11007/30/2020 9,997,000.00 182313385BD7 119

0.000Federal Farm Credit Bank12246 4,000,000.00 3,994,500.00 03/03/20210.18006/01/2020 3,998,320.00 275313313CP1 153

0.183Federal Farm Credit Bank12255 3,000,000.00 2,995,680.00 03/24/20210.17806/06/2020 2,998,560.00 291313313DL9 174

0.124Federal Farm Credit Bank12301 5,000,000.00 4,994,850.00 06/10/20210.12008/05/2020 4,995,800.00 309313313GS1 252

0.124Federal Farm Credit Bank12326 5,000,000.00 4,995,116.67 06/15/20210.12008/26/2020 4,996,100.00 293313313GX0 257

0.196Federal Farm Credit Bank12268 5,000,000.00 4,990,447.22 06/21/20210.19006/24/2020 4,996,000.00 362313313HD3 263

0.196Federal Farm Credit Bank12269 5,000,000.00 4,990,473.61 06/21/20210.19006/25/2020 4,996,000.00 361313313HD3 263

0.144Federal Farm Credit Bank12309 2,500,000.00 2,496,461.11 08/12/20210.14008/13/2020 2,476,600.00 364313313KH0 315

0.134Federal Home Loan Bank12316 10,000,000.00 9,986,891.67 08/17/20210.13008/19/2020 9,989,300.00 363313385KN52 320

0.134Federal Farm Credit Bank12318 2,500,000.00 2,496,722.92 08/18/20210.13008/20/2020 2,497,325.00 363313313KP2 321

74,425,101.54 25674,438,280.0074,500,000.0075,174,838.52Subtotal and Average 0.130 180

Local Agency Investment Funds

0.685Local Agency Investment Fund10090 74,906,450.81 74,906,450.81 0.68507/01/2004 74,906,450.81 1SYS10090 1


Columbia Money Market Fund

0.010Columbia Money Market Reserves10091 0.00 0.00 0.01009/15/2006 0.00 1SYS10091 1

0.00 00.000.000.00Subtotal and Average 0.000 0

Local Agency Investment Funds - RDA

1.143LAIF - Successor Agency10092 0.00 0.00 1.14303/17/2009 0.00 1SYS10092 1

0.00 00.000.000.00Subtotal and Average 0.000 0

Portfolio INVT


YTM365

Page 4


DateStated

RateMarket Value





PurchaseDate

Corporate Bonds

2.024Microsoft11661 2,500,000.00 2,497,150.00 11/03/20202.00011/10/2015 2,500,125.00 1,820594918BG8 33

0.185Johnson & Johnson12276 4,000,000.00 4,036,346.67 11/10/20201.95007/02/2020 4,007,720.00 131478160CH5 40

1.750Coca Cola11694 4,000,000.00 4,253,040.00 11/15/20203.15002/22/2016 4,013,800.00 1,728191216AR1 45

1.748VISA INC12191 3,000,000.00 3,012,270.00 12/14/20202.20001/14/2020 3,006,600.00 33592826CAB8 74

5.366Merck12252 3,000,000.00 3,037,800.00 01/15/20213.87506/10/2020 3,007,680.00 21958933YAA3 106

1.863Starbucks Corp11899 3,084,000.00 3,109,257.96 02/04/20212.10006/30/2017 3,098,371.44 1,315855244AJ8 126

1.812Walt Disney Company12123 3,000,000.00 3,021,300.00 02/12/20212.30008/19/2019 3,021,300.00 54325468PDJ2 134

0.363Johnson & Johnson12245 1,830,000.00 1,847,622.90 03/01/20211.65006/01/2020 1,839,058.50 273478160BS2 151

0.214Toyota Motor Credit Corp12319 4,000,000.00 4,070,631.11 04/08/20211.90008/24/2020 4,033,480.00 22789236TCZ6 189

3.108Apple Inc.12032 3,000,000.00 2,981,490.00 05/06/20212.85011/05/2018 3,044,700.00 913037833AR1 217

0.151Apple Inc.12307 2,000,000.00 2,054,756.67 05/06/20212.85008/14/2020 2,029,800.00 265037833AR1 217

1.419HERSHEY COMPANY12234 2,000,000.00 2,036,740.00 05/15/20213.10004/07/2020 2,037,440.00 403427866BA5 226

1.884Google11884 4,800,000.00 5,122,896.00 05/19/20213.62505/08/2017 4,903,392.00 1,47202079KAA5 230

1.629Pfizer Inc12147 2,000,000.00 2,010,380.00 06/03/20211.95010/10/2019 2,024,480.00 602717081DX8 245

0.217Pfizer Inc12257 2,000,000.00 2,034,715.00 06/03/20211.95006/12/2020 2,024,480.00 356717081DX8 245

0.172Pfizer Inc12287 4,000,000.00 4,072,010.00 06/03/20211.95007/24/2020 4,048,960.00 314717081DX8 245

2.386Toyota Motor Credit Corp11961 1,434,000.00 1,427,704.74 06/07/20212.25001/25/2018 1,408,202.34 1,22989236TEH4 249

3.002Oracle12002 3,000,000.00 2,982,720.00 07/08/20212.80007/05/2018 3,057,900.00 1,09968389XBA2 280

1.628Apple Inc.11806 2,000,000.00 1,992,720.00 08/04/20211.55009/14/2016 2,019,220.00 1,785037833CC2 307

2.206Oracle11842 2,500,000.00 2,449,037.50 09/15/20211.90001/09/2017 2,535,625.00 1,71068389XBK0 349

2.000Cisco Systems11873 4,000,000.00 3,974,746.20 09/20/20211.85004/21/2017 4,057,400.00 1,61317275RBJ0 354

2.019Johnson & Johnson11826 4,000,000.00 4,081,640.00 12/05/20212.45012/05/2016 4,106,880.00 1,826478160BN3 430

0.201Target Corp.12343 3,000,000.00 3,122,193.33 01/15/20222.90009/11/2020 3,103,950.00 49187612EAZ9 471

1.736Colgate Palmolive12113 1,800,000.00 1,827,000.00 05/03/20222.30008/08/2019 1,856,106.00 99919416QDZ0 579

0.305IBM Corp12325 3,000,000.00 3,154,870.00 05/13/20222.85008/27/2020 3,123,450.00 624459200JX0 589

0.249BRISTOL-MYERS SQUIBB CO12344 3,000,000.00 3,143,116.67 05/16/20222.60009/11/2020 3,112,350.00 612110122CL0 592

2.284Home Depot Inc.11952 2,000,000.00 2,029,218.00 06/01/20222.62511/20/2017 2,076,480.00 1,654437076BG6 608

2.293Starbucks Corp11901 3,000,000.00 3,056,508.00 06/15/20222.70007/14/2017 3,097,650.00 1,797855244AG4 622

2.194Starbucks Corp11902 2,000,000.00 2,046,826.92 06/15/20222.70007/17/2017 2,065,100.00 1,794855244AG4 622

2.131Pepsi Bottling12102 4,189,000.00 4,305,035.30 07/17/20223.10007/29/2019 4,382,657.47 1,084713448CX4 654

1.700Toyota Motor Credit Corp12200 2,000,000.00 2,057,350.68 01/11/20232.70001/28/2020 2,098,020.00 1,07989236TEL5 832

1.902KIMBERLY-CLARK CORP12115 2,000,000.00 2,036,440.00 06/01/20232.40008/08/2019 2,106,160.00 1,393494368BJ1 973

0.506Bank of New York Mellon12292 3,000,000.00 3,153,300.00 08/16/20232.20007/30/2020 3,146,490.00 1,11206406FAD5 1,049

0.855BLACKROCK INC12241 1,438,000.00 1,581,124.14 03/18/20243.50005/18/2020 1,584,690.38 1,40009247XAL5 1,264

1.864Walt Disney Company12135 3,000,000.00 2,983,830.00 08/30/20241.75009/09/2019 3,123,180.00 1,817254687FK7 1,429

1.700Toyota Motor Credit Corp12216 2,000,000.00 2,009,482.22 02/13/20251.80002/25/2020 2,089,540.00 1,81589236TGT6 1,596

0.675Yale University12275 1,945,000.00 1,964,153.87 04/15/20250.87307/02/2020 1,959,684.75 1,74898459LAA1 1,657

0.428Google12302 4,000,000.00 4,004,380.00 08/15/20250.45008/07/2020 3,987,640.00 1,83402079KAH0 1,779

Portfolio INVT


YTM365

Page 5


DateStated

RateMarket Value





PurchaseDate

108,581,803.88 1,085108,739,762.88106,520,000.00109,593,987.40Subtotal and Average 1.515 494

Commercial Paper Disc. -At Cost

0.206Salvation Army12311 5,000,000.00 4,994,194.44 03/11/20210.20008/14/2020 4,995,635.00 20979583RQB8 161


Supranationals

1.750IBRD (World Bank)12199 4,000,000.00 4,000,000.00 01/27/20231.75001/27/2020 4,016,600.00 1,09645905U5U4 848

1.700IBRD (World Bank)12150 2,000,000.00 2,000,000.00 10/25/20231.70010/25/2019 2,089,180.00 1,46145905U4P6 1,119

2.669International Finance Corp.12034 4,000,000.00 4,000,000.00 11/15/20233.00011/15/2018 4,012,440.00 1,82645950VMP8 1,140

3.000International Finance Corp.12036 2,500,000.00 2,500,000.00 12/15/20233.00012/17/2018 2,513,000.00 1,82445950VMW3 1,170

2.050IBRD (World Bank)12165 2,000,000.00 2,000,000.00 11/13/20242.05011/21/2019 2,003,400.00 1,819459058HP1 1,504

1.750International Finance Corp.12156 4,000,000.00 4,000,000.00 11/15/20241.75011/08/2019 4,000,000.00 1,83445950VNG7 1,506

1.700IBRD (World Bank)12186 3,000,000.00 3,000,000.00 12/15/20241.70012/30/2019 3,009,570.00 1,81245905U4Z4 1,536

1.625International Finance Corp.12195 2,000,000.00 2,000,000.00 01/15/20251.62501/27/2020 2,027,840.00 1,81545950VNR3 1,567

0.250International Finance Corp.12305 5,000,000.00 5,000,000.00 08/15/20250.25008/28/2020 4,999,800.00 1,81345950VNZ5 1,779

0.200International Finance Corp.12323 4,000,000.00 4,000,000.00 09/15/20250.20009/04/2020 3,991,200.00 1,83745950VPA8 1,810

32,500,000.00 1,71132,663,030.0032,500,000.0034,300,000.00Subtotal and Average 1.541 1,416

Municipal Bonds

0.598Ventura County12248 750,000.00 750,000.00 11/01/20200.59806/11/2020 750,105.00 143923078CQ0 31

1.300State of California12229 2,000,000.00 2,004,000.00 04/01/20211.50003/27/2020 2,011,220.00 37013063CP8 182

1.301State of California12230 3,000,000.00 3,006,035.00 04/01/20211.50004/02/2020 3,016,830.00 36413063CP8 182

1.896CA ST HLTH FACS FING AUTH REV12177 1,000,000.00 1,000,000.00 06/01/20211.89611/25/2019 1,008,680.00 55413032UUY2 243

0.281COUNTY OF LOS ANGELES12277 2,500,000.00 2,590,150.00 06/30/20214.00007/10/2020 2,571,075.00 355544657HX0 272

2.913San Francisco BART12037 2,000,000.00 1,974,220.00 07/01/20212.38712/10/2018 2,028,640.00 934797669XU7 273

1.650HAWAII STATE12126 3,500,000.00 3,497,795.00 10/01/20211.62008/22/2019 3,477,215.00 771419792NG7 365

0.698Ventura County12247 1,000,000.00 1,000,000.00 11/01/20210.69806/11/2020 1,002,520.00 508923078CR8 396

0.299CALIFORNIA ST DEPT OF WATER12297 250,000.00 250,000.00 12/01/20210.29908/06/2020 250,157.50 48213067WQY1 426

2.333California Statewide Communiti11885 3,000,000.00 3,004,770.00 04/01/20222.36705/09/2017 3,086,820.00 1,78813063DAD0 547

1.679State of California12155 2,000,000.00 2,015,700.00 05/01/20222.00010/28/2019 2,053,700.00 91613066YTZ2 577

1.893CA ST HLTH FACS FING AUTH REV12169 1,000,000.00 1,000,000.00 06/01/20221.89311/25/2019 1,020,760.00 91913032UUZ9 608

1.450City of Riverside CA12249 300,000.00 301,719.00 06/01/20221.74606/11/2020 304,797.00 720769036BJ2 608

2.630SAN JOSE REDEVELOPMENT AGENCY11954 1,300,000.00 1,300,000.00 08/01/20222.63012/21/2017 1,353,820.00 1,684798170AE6 669

0.349CALIFORNIA ST DEPT OF WATER12298 300,000.00 300,000.00 12/01/20220.34908/06/2020 300,357.00 84713067WQZ8 791

1.971University of California12139 2,000,000.00 2,038,300.00 05/15/20232.51909/23/2019 2,096,100.00 1,33091412G2U8 956

0.628University of California12281 500,000.00 500,000.00 05/15/20230.62807/16/2020 502,110.00 1,03391412HFK4 956

2.044BEVERLY HILLS CA PUBLIC FIN AU12104 1,390,000.00 1,390,000.00 06/01/20232.04508/08/2019 1,446,864.90 1,393088006JL6 973

1.970CA ST HLTH FACS FING AUTH REV12167 1,000,000.00 1,000,000.00 06/01/20231.97011/25/2019 1,033,000.00 1,28413032UVA3 973

1.600City of Riverside CA12250 500,000.00 504,375.00 06/01/20231.90306/11/2020 512,010.00 1,085769036BK9 973

Portfolio INVT


YTM365

Page 6


DateStated

RateMarket Value





PurchaseDate

Municipal Bonds

0.475CALIFORNIA STATE UNIVERSITY12328 1,850,000.00 1,850,000.00 11/01/20230.47509/17/2020 1,850,758.50 1,14013077DNB4 1,126

1.375State of Connecticut GO12226 2,000,000.00 2,142,340.00 01/15/20243.13003/12/2020 2,150,800.00 1,40420772KAF6 1,201

1.344State of Connecticut GO12227 2,000,000.00 2,144,580.00 01/15/20243.13003/11/2020 2,150,800.00 1,40520772KAF6 1,201

0.502TX A&M UNIV12286 2,050,000.00 2,056,826.50 05/15/20240.59107/30/2020 2,062,894.50 1,38588213APX7 1,322

0.833University of California12282 500,000.00 500,000.00 05/15/20240.83307/16/2020 504,600.00 1,39991412HFL2 1,322

2.124BEVERLY HILLS CA PUBLIC FIN AU12103 1,000,000.00 1,000,000.00 06/01/20242.12508/08/2019 1,050,050.00 1,759088006JM4 1,339

2.020CA ST HLTH FACS FING AUTH REV12168 1,000,000.00 1,000,000.00 06/01/20242.02011/25/2019 1,041,460.00 1,65013032UVB1 1,339

0.400METRO-B12330 3,000,000.00 3,097,695.00 06/01/20241.17009/02/2020 3,081,960.00 1,36859163PLB7 1,339

0.750Reedy Creek FL Impt Dist12284 2,600,000.00 2,696,433.71 06/01/20241.66907/15/2020 2,691,182.00 1,417758449RV6 1,339

0.660SAN JOSE REDEVELOPMENT AGENCY12349 2,000,000.00 2,183,136.67 08/01/20242.95809/21/2020 2,177,000.00 1,410798170AG1 1,400

0.685CALIFORNIA STATE UNIVERSITY12329 1,500,000.00 1,500,000.00 11/01/20240.68509/17/2020 1,500,840.00 1,50613077DNC2 1,492

0.650NEW YORK CITY12312 500,000.00 546,646.11 02/01/20252.75008/17/2020 541,700.00 1,62964971WTA8 1,584

0.503City of Suffolk VA12335 2,000,000.00 2,006,640.00 02/01/20250.58009/15/2020 1,998,540.00 1,60086481ABB9 1,584

0.933University of California12280 500,000.00 500,000.00 05/15/20250.93307/16/2020 505,580.00 1,76491412HFM0 1,687

0.510HAWAII STATE12306 1,000,000.00 1,007,867.22 08/01/20250.67008/14/2020 997,470.00 1,813419792YQ3 1,765

53,659,229.21 1,14954,132,416.4052,790,000.0049,377,449.60Subtotal and Average 1.276 879

917584,548,130.04 603,216,450.81 0.867 698607,140,857.09 606,084,669.15Total and Average

Portfolio INVT


YTM365

Page 7

Par Value Book ValueStated

RateMarket Value

September 30, 2020Portfolio Details - Cash




PurchaseDate

0.00

917584,548,130.04 603,216,450.81 0.867 698

0 0Average Balance

607,140,857.09 606,084,669.15Total Cash and Investments

Portfolio INVT


StatedRate

TransactionDate

September 1, 2020 through September 30, 2020Activity By Type

Balance


CUSIP Investment # IssuerPurchases

or DepositsRedemptions

or Withdrawals


Federal Farm Credit Bank12130 0.002.000 09/03/2020 2,000,000.003133EKH41

Federal Farm Credit Bank12136 0.001.850 09/03/2020 1,999,800.003133EKH66

Federal Farm Credit Bank12337 3,000,000.000.140 09/09/2020 0.003133EL6P4

Federal Farm Credit Bank12340 3,000,000.000.430 09/10/2020 0.003133EL6V1

Federal Home Loan Bank12144 0.001.970 09/11/2020 4,000,000.003130AH2B8

Fed Home Loan Mortgage Corp11930 0.001.600 09/28/2020 2,000,000.003134GBF64

Fed Home Loan Mortgage Corp12331 4,000,000.000.700 09/02/2020 0.003134GW3B0

Fed Home Loan Mortgage Corp12332 3,000,000.000.520 09/16/2020 0.003134GWJ98



Fed Home Loan Mortgage Corp12336 3,000,000.000.290 09/10/2020 0.003134GWL53



Fed Home Loan Mortgage Corp12345 3,000,000.000.375 09/23/2020 0.003134GWR81

Fed Home Loan Mortgage Corp12351 2,000,000.000.500 09/30/2020 0.003134GWXE1

Fed Home Loan Mortgage Corp12352 2,000,000.000.300 09/30/2020 0.003134GWXB7

Farmer Mac12131 0.001.850 09/09/2020 5,000,000.0031422BLA6

Farmer Mac12262 0.000.350 09/23/2020 4,000,000.0031422BF21

Farmer Mac12263 0.000.250 09/24/2020 2,500,000.0031422BF70

Farmer Mac12327 5,000,000.000.240 09/08/2020 0.0031422BT26

Farmer Mac12346 3,000,000.000.570 09/17/2020 0.0031422BV23

Farmer Mac12348 5,000,000.000.160 09/28/2020 0.0031422BV98

Farmer Mac12350 3,000,000.000.260 09/29/2020 0.0031422BW97

Federal National Mort Assoc12338 5,000,000.000.500 09/08/2020 0.003136G42Z5

Federal National Mort Assoc12342 4,000,000.000.400 09/16/2020 0.003136G43H4

Federal National Mort Assoc12347 4,000,000.000.320 09/28/2020 0.003136G43W1

21,499,800.00 257,017,889.27Subtotal 64,000,000.00

Federal Agency Discount

Federal Home Loan Bank12242 0.000.125 09/04/2020 7,497,369.79313384E62

7,497,369.79 74,425,101.54Subtotal 0.00

Local Agency Investment Funds (Monthly Summary)

74,906,450.81Subtotal

Columbia Money Market Fund (Monthly Summary)

0.00Subtotal

Portfolio INVT


Report Ver. 7.3.6.1

22

StatedRate

TransactionDate

September 1, 2020 through September 30, 2020Activity By Type

Balance


CUSIP Investment # IssuerPurchases

or DepositsRedemptions

or Withdrawals

Local Agency Investment Funds - RDA (Monthly Summary)

0.00Subtotal

Corporate Bonds

American Honda Finance12300 0.002.450 09/24/2020 4,047,933.3302665WAZ4

BRISTOL-MYERS SQUIBB CO12344 3,118,200.002.600 09/11/2020 0.00110122CL0

Target Corp.12343 3,108,660.002.900 09/11/2020 0.0087612EAZ9

4,047,933.33 108,581,803.88Subtotal 6,226,860.00

Commercial Paper Disc. -At Cost

4,994,194.44Subtotal

Supranationals

IBRD (World Bank)12141 0.002.200 09/23/2020 3,000,000.00459058HG1

International Finance Corp.12323 4,000,000.000.200 09/04/2020 0.0045950VPA8

3,000,000.00 32,500,000.00Subtotal 4,000,000.00

Municipal Bonds

CALIFORNIA STATE UNIVERSITY12328 1,850,000.000.475 09/17/2020 0.0013077DNB4

CALIFORNIA STATE UNIVERSITY12329 1,500,000.000.685 09/17/2020 0.0013077DNC2

METRO-B12330 3,085,800.001.170 09/02/2020 0.0059163PLB7

SAN JOSE REDEVELOPMENT AGENCY12349 2,174,920.002.958 09/21/2020 0.00798170AG1

City of Suffolk VA12335 2,006,640.000.580 09/15/2020 0.0086481ABB9

0.00 53,659,229.21Subtotal 10,617,360.00

606,084,669.15Total 36,045,103.1284,844,220.00

Portfolio INVT


23



Maturity Distribution The weighted average days-to-maturity (WAM) of the portfolio as of September 31, 2020 is 698 days (1.9 years). This calculation is for invested funds only and does not reflect the City’s primary liquidity funds being held in cash in the City’s general bank account. Approximately 63.5% of the portfolio is currently held in maturities of 2 years or less (including cash and LAIF balances) as the large number of called bonds is resulting in lower WAM. As noted earlier, interest rates continue to hover near record lows and are likely to remain at low levels for an extended time as world economies struggle to recover from the impact of the coronavirus pandemic. City revenue losses will have an impact on the portfolio’s maturity distribution as the City liquidity needs change. Unrealized Gains/Losses

The Governmental Accounting Standards Board Statement No. 31 (GASB 31) requires public agencies to report all investments, with certain exceptions, at current fair market value rather than at the original purchase price. Current fair market value is defined in GASB 31 as “the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation state.” The current fair market value and unrealized gain/loss of a security do not affect its redemption value or yield if held to maturity. There is an inverse relationship between the price of the bond and the market interest rate. The City’s practice is to purchase most securities with the intent to hold them to maturity. However, market conditions have resulted in the City selling a number of bonds and recognizing the gains thus reducing the unrealized gain amount over the last three months. Book values are exclusive of interest realized to date on investments. Also, the book value

$0

$50

$100

$150

$200

$250

Cash LAIF 0 - 1Year

1 - 2Years

2 - 3Years

3 - 4Years

4+Years

Millions Maturity Distribution

0 - 1 Year28.5%

1 - 2 Years12.4%

2 - 3 Years10.9%

3 - 4 Years11.5%

4+ Years14.1%

Cash11.7%

LAIF10.9%

Portfolio Maturities



shown is the purchase price and is exclusive of any amortization of premiums or accretion of discounts. As of September 30, 2020, the market value and the book value of the City’s pooled investments (excluding cash) are:

607,140,857.09$ Market Value606,084,669.15$ Book Value

1,056,187.94$ Unrealized Gain/(Loss) Compliance California State law and the City’s Investment Policy set certain legal standards for allowable investments that can be included in the City’s portfolio. Additionally, there are certain maximum limits for classes of investments, as well as minimum credit quality requirements. In testing for compliance, the City considers all funds under its direct control and invested directly by the City. Bond and loan proceeds, as well as the Cemetery and Mausoleum Perpetual Care Funds are excluded. The following tables summarize portfolio compliance as of September 30, 2020. All investments were in compliance with State law and the City’s Investment Policy at the time of purchase. State law requires that any investment subject to a credit downgrade subsequent to the time of purchase shall be reviewed for possible sale within a reasonable amount of time after the downgrade. The City’s investment portfolio includes some bonds that have been downgraded since purchase. In all cases, staff believes that the underlying financial strength of the companies is adequate to recommend holding the bonds at this time. However, given that the economic impact of the pandemic has moved the economy into a severe downtown, staff will continue to monitor and analyze the status of all these companies and may recommend (on a case-by-case basis) selling some bonds should the situation indicate disposal of the bond is in the best long-term financial interest of the City. The swift and enormous drop in interest rates has provided a unique opportunity to sell some of the bonds at net gains even after taking into account reinvestment at lower rates. These downgrades are discussed in further detail below:

The portfolio holds one Coca-Cola bond (book value of $4,253,040.00 or about 0.7% of total invested funds) that was downgraded by S&P from AA to AA- in February 2016 and again to A+ in April 2018. The rating is still considered a strong rating and the bond matures in mid-November and the City would realize a loss of approximately $240,000 from selling the bond at this time. The bond will continue to be held.

The portfolio holds two Starbucks bonds (book value of $8,212,592.88 or about 1.4% of total invested funds) that

were downgraded by S&P from A to A- in November 2017 and further downgraded to BBB+ in June 2018. Staff reviewed the reason for the most recent downgrade as well as analyzed the financial status of the company over the



remaining life of the bonds. The estimated probability of default of the bonds is very low (0.2%). Staff concluded that holding the bonds is the appropriate course of action at this time. Staff will continue to monitor the status of Starbucks.

The portfolio holds two bonds issued by The Walt Disney Company with a combined book value of $6,005,130.00 or about 1.0% of total invested funds. The bonds were rated A+ by Standard and Poor’s (S&P) at the time of purchase but were downgraded to A in March 2019 and then again to A- in April 2020. The bonds have a low default risk (ranging from less than 0.01% to approximately 1.2%), and the net market value of the bonds exceeds the book value by approximately $140,000. The bonds will continue to be held at this time. However, the prospect of a future rating downgrade is possible, and if that occurs, staff will reconsider if the bonds should be held or sold.

The portfolio holds two bonds issued by Oracle with a book value of $5,431,757.50 (about 0.9% of total invested funds) that were downgraded by S&P from AA- to A+ in July 2019 and again to A in June 2020. Given a low default risk on the bonds, the short remaining terms of the bonds (less than 12 months), and the fact that the net market value of the bonds exceeds the book value by approximately $162,000, the bonds will continue to be held at this time.

The portfolio holds one bond issued by Pfizer with a book value of $8,117,105.00 (about 1.3% of total invested funds) that was downgraded by S&P from AA to AA- in July 2019. There is virtually no default risk on the bond due to the short remaining term of the bond, and the net market value of the bond is about $19,000 lower than the book value. The bond will continue to be held at this time.

The portfolio holds one bond issued by Merck & Co Inc with a book value of $3,037,800.00 (about 0.5% of total invested funds) that was downgraded by S&P from AA to AA- in February 2020. The bond has essentially no risk of default due to the short remaining term of the bond, and a loss of approximately $30,000 would be realized from selling the bond at this time. Staff will continue to hold the bond.

The portfolio holds four bonds issued by Toyota Motor Credit Corp, three of which were purchased before being downgraded, with a book value of $9,565,168.75 (about 1.6% of total invested funds). The bonds were rated AA- by Standard and Poor’s (S&P) at the time of purchase but were downgraded to A+ in May 2020. The net market value of the bonds exceeds the book value by approximately $64,000. The default risk ranges from about 0.5% to just under 4%. The bonds will continue to be held at this time.



Further detail regarding City compliance with State law and City investment guidelines is presented as follows:

Standard & Poors/ In ComplianceFitch Moodys (Yes/No)

Best Quality AAA Aaa Yes AA+ Aa1 Yes

High Quality AA Aa2 Yes AA- Aa3 Yes A+ A1 Yes

Upper Medium Grade A A2 Yes A- A3 Yes

BBB+ Baa1 NoMedium Grade BBB Baa2 No

BBB- Baa3 No

Credit Ratings - Corporate Medium Term Notes



Legal/ InPooled % of Policy Compliance

Portfolio (1) (3) Portfolio Limit (Yes/No)Federal Agency Securities Federal Home Loan Bank $70,997,872.78 10.3% 50.0% Yes Federal National Mortgage Association 53,500,608.33 7.8% 50.0% Yes Federal Home Loan Mortgage Corporation 78,900,177.08 11.5% 50.0% Yes Farmer Mac 52,995,500.00 7.7% 50.0% Yes Federal Farm Credit Bank 75,048,832.62 10.9% 50.0% Yes

Total Federal Agency Securities $331,442,990.81 48.3%

Municipal Bonds $53,659,229.21 7.8% n/a YesCorporate Bonds $108,581,803.88 15.8% 30.0% YesSupranationals $32,500,000.00 4.7% 30.0% YesCommerical Paper $4,994,194.44 0.7% 15.0% YesState Local Agency Investment Fund-City $74,906,450.81 10.9% $75 million YesCash (2) $80,288,882.48 11.7% None Yes

Total (Book Value) $686,373,551.63 100.0%

Notes:

Portfolio Allocation as of 9/30/2020

(2) Does not include balance of HUD depository account ($1,599,375.96), Successor Agency RPTTF account ($3,046,184.63), Payroll account ($138,049.38) or other cash accounts that are restricted as to use.

(1) Excludes bond proceeds, funds held in trust for others, petty cash accounts, and other funds which are not entirely under City ownership and control.

(3) Value used to test compliance is reported value (book value plus unrealized purchased interest).



Corporate Medium Term Note Securities Pooled PortfolioCredit

Rating*In Compliance

(Yes/No) Corporate Medium Term Note Securities Pooled PortfolioCredit

Rating*In Compliance

(Yes/No)Microsoft 2.00% maturing 11/03/20 $2,497,150.00 AAA Yes Toyota Motor Credit Corp 2.7%, maturing 1/11/23 $2,057,350.68 A+ YesJohnson & Johnson 1.95%, maturing 11/10/20 $4,036,346.67 AAA Yes Kimberly-Clark Corp 2.4%, maturing 6/1/23 $2,036,440.00 A YesCoca Cola 3.15% maturing 11/15/20 $4,253,040.00 A+ Yes Bank of New York Mellon 2.20%, maturing 8/16/23 $3,153,300.00 A YesVISA Inc 2.2%, maturing 11/15/20 $3,012,270.00 AA- Yes Blackrock Inc 3.5%, maturing 5/11/24 $1,581,124.14 AA- YesMerck & Co 3.875%, maturing 1/15/21 $3,037,800.00 AA- Yes Walt Disney Company 1.75%, maturing 8/30/24 $2,983,830.00 A- YesStarbucks 2.1% maturing 02/04/21 $3,109,257.96 BBB+ Yes** Toyota Motor Credit Corp 1.8%, maturing 2/13/25 $2,009,482.22 A+ YesWalt Disney Company 2.3%, maturing 2/12/21 $3,021,300.00 A- Yes Yale University 0.873%, maturing 4/09/25 $1,964,153.87 AAA YesJohnson & Johnson 1.65%, maturing 3/1/21 $1,847,622.90 AAA Yes Alphabet Inc 0.45% maturing 8/15/25 $4,004,380.00 AA+ YesToyota Motor Credit Corp 1.90% maturing 4/08/21 $4,070,631.11 A+ YesApple Inc. 2.85% maturing 5/06/21 $5,036,246.67 AA+ YesHershey 3.1% maturing 5/15/21 $2,036,740.00 A YesGoogle 3.625% maturing 5/19/21 $5,122,896.00 AA+ YesPfizer Inc 1.95%, maturing 6//03/21 $8,117,105.00 AA- YesToyota Motor Credit Corp 2.25% maturing 6/07/21 $1,427,704.74 A+ YesOracle Corp 2.8%, maturing 7/08/21 $2,982,720.00 A YesApple Inc. 1.55% maturing 08/04/21 $1,992,720.00 AA+ YesOracle 1.90% maturing 09/15/21 $2,449,037.50 A YesCisco Systems 1.850% maturing 9/20/21 $3,974,746.20 AA- YesJohnson & Johnson 2.45%, maturing 12/05/21 $4,081,640.00 AAA YesTarget Corp 2.9%, maturing 1/15/22 $3,122,193.33 A YeaColgate-Palmolive Co 2.3%, maturing 5/03/22 $1,827,000.00 AA- YesIBM 2.85% maturing 5/05/22 $3,154,870.00 A YesBristol-Myers Squibb Co 2.6%, maturing 5/16/22 $3,143,116.67 A+ YesHome Depot 2.625% maturing 06/01/22 $2,029,218.00 A YesStarbucks 2.7% maturing 06/15/22 $5,103,334.92 BBB+ Yes**Pepsico Inc 3.1%, maturing 7/17/22 $4,305,035.30 A+ Yes * Per Standard and Poors

** Although bonds rated BBB+ would not be eligible for purchase, they were within legal rating guidelines at the time of purchase. In accordance with State law, staff has reviewed the status of the bonds and concluded holding onto the bonds is in the best financial interests of the City. Therefore, holding of these bonds is in compliance.

City Portfolio as of 9/30/20 (Book Value)



Certification In compliance with California Government Code Section 53546, I hereby certify that sufficient investment liquidity and anticipated revenues are available to meet the City’s budgeted expenditure requirements for the next six months.

________________________________________________ Gigi Decavalles-Hughes, Director of Finance/City Treasurer

september 2020 - report final - santa monica

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