Agenda packet — Escondido City Council, February 2, 2022

CITY of ESCONDIDO

Council Meeting Agenda
WEDNESDAY, FEBRUARY 02, 2022
4:00 PM - Closed Session (Cancelled)
5:00 PM - Regular Session
Escondido City Council Chambers, 201 North Broadway, Escondido, CA 92025

WELCOME TO YOUR CITY COUNCIL MEETING
We welcome your interest and involvement in the legislative process of Escondido. This agenda includes information about topics coming before the City Council and the action recommended by City staff.

MAYOR
Paul McNamara

DEPUTY MAYOR
Tina Inscoe (District 2)

COUNCILMEMBERS
Consuelo Martinez (District 1)
Joe Garcia (District 3)
Michael Morasco (Disctrict 4)

CITY MANAGER
Sean McGlynn

CITY ATTORNEY
Michael McGuinness

CITY CLERK
Zack Beck

HOW TO WATCH
The City of Escondido provides three ways to watch a City Council meeting:

In Person On TV Online

201 N. Broadway Cox Cable Channel 19 and U-verse Channel 99 www.escondido.org

1 Wednesday, February 02, 2022

HOW TO PARTICIPATE
The City of Escondido provides two ways to communicate with the City Council during a meeting:

In Person In Writing

Fill out Speaker Slip and Submit to City Clerk https://escondido-ca.municodemeetings.com/

ASSISTANCE PROVIDED
If you need special assistance to participate in this meeting, please contact our ADA Coordinator at 760-839-4643.

Notification 48 hours prior to the meeting will enable to city to make reasonable arrangements to ensure accessibility. Listening devices are available for the hearing impaired – please see the City Clerk.

2 Wednesday, February 02, 2022

REGULAR SESSION
5:00 PM Regular Session

MOMENT OF REFLECTION
City Council agendas allow an opportunity for a moment of silence and reflection at the beginning of the evening meeting. The City does not participate in the selection of speakers for this portion of the agenda, and does not endorse or sanction any remar ks made by individuals during this time. If you wish to be recognized during this portion of the agenda, please notify the City Clerk in advance.

FLAG SALUTE
The City Council conducts the Pledge of Allegiance at the beginning of every City Council meeting.

CALL TO ORDER
Roll Call: Garcia, Inscoe, Martinez, Morasco, McNamara

PRESENTATION
City of Escondido Independent Redistricting Commission Update

ORAL COMMUNICATIONS
In addition to speaking during particular agenda items, the public may address the Council on any item which is not on the agenda provided the item is within the subject matter jurisdiction of the City Council. State law prohibits the Council from discussing or taking action on such items, but the matter may be referred to the City Manager/staff or scheduled on a subsequent agenda. Speakers are limited to only one opportunity to address the Council under Oral Communications.

CONSENT CALENDAR
Items on the Consent Calendar are not discussed individually and are approved in a single motion. However, Council members always have the option to have an item considered separately, either on their own request or at the request of staff or a member of the public.

1. AFFIDAVITS OF PUBLICATION, MAILING, AND POSTING (COUNCIL/RRB) -

3 Wednesday, February 02, 2022

2. APPROVAL OF WARRANT REGISTER (COUNCIL) -
Request the City Council approve the City Council and Housing Successor Agency warrant numbers:
a. 359907 – 360047 dated January 19, 2022.

Staff Recommendation: Approval (Finance Department: Christina Holmes)

3. APPROVAL OF MINUTES: None Scheduled

4. ANNUAL STATE MANDATED INSPECTION COMPLIANCE REPORT - Request the City Council approve acknowledging the Fire Department's report of compliance with annual State mandated inspections.

Staff Recommendation: Approval (Fire Department: Rick Vogt) Presenter: Rick Vogt
a. Resolution No. 2022-01

5. TREASURER’S INVESTMENT REPORT FOR THE QUARTER ENDED DECEMBER 31, 2021 - Request the City Council receive and file the Quarterly Investment Report for the quarter ended December 31, 2021.

Staff Recommendation: Receive and File (City Treasurer: Douglas Shultz) Presenter: Douglas Shultz

6. NOTICE OF COMPLETION FOR GATEWAY GRAND PROJECT (ENG 16-0029; SUB16-0001) LOCATED AT 700 WEST GRAND AVENUE -
Request the City Council approve to accept the Public Improvements and authorize staff to file a Notice of Completion (“NOC”) for the Gateway Grand Project.

Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Julie Procopio
a. Resolution No. 2022-20

4 Wednesday, February 02, 2022

7. NOTICE OF COMPLETION FOR LEXUS OVERFLOW PARKING LOT (ENG 19-0002) LOCATED AT 1528 & 1551 TANGLEWOOD LANE -
Request the City Council approve to accept the Public Improvements and authorize staff to file a Notice of Completion (“NOC”) for the Lexus Overflow Parking Lot (“Project”).

Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Julie Procopio
a. Resolution No. 2022-21

8. APPROVAL OF A CHANGE ORDER TO COMPLETE ADDITIONAL WORK FOR THE 2021 STREET REHABILITATION AND MAINTENANCE PROJECT –
Request the City Council approve to authorize a change order to the 2021 Street Rehabilitation and Maintenance Project – Phase 2 (“Project”) in the amount of $320,141.67 to add pavement resurfacing along Country Club Lane to complete resurfacing outside of the Canopy Grove project limits of work and perform pavement repairs for a water main break on Sunset Drive.

Staff Recommendation: Approval (Engineering Services Department: Julie Procopio) Presenter: Julie Procopio
a. Resolution No. 2022-22

9. DENIAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE SERGEANT PAUL F.

WOODWARD –
Request the City Council approve denying the California Public Employees’ Retirement System (“CalPERS”) Industrial Disability Retirement for Police Sergeant Paul F. Woodward.

Staff Recommendation: Approval (Human Resources Department: Jessica Perpetua) Presenter: Jessica Perpetua
a. Resolution No. 2022-23

5 Wednesday, February 02, 2022

10. CITY BUSINESS LICENSE TAX RECIPROCAL AGREEMENT WITH FRANCHISE TAX BOARD - Request the City Council approve authorizing the Mayor or his designee to execute an agreement with the State of California Franchise Tax Board (FTB) to renew and continue the City's participation in the FTB City Business Tax Program.

Staff Recommendation: Approval (Information Systems Department: Rob Van De Hey) Presenter: Rob Van De Hey
a. Resolution No. 2022-27

CONSENT RESOLUTIONS AND ORDINANCES (COUNCIL/RRB)
The following Resolutions and Ordinances were heard and acted upon by the City Council/RRB at a previous City Council/Mobilehome Rent Review meeting. (The title of Ordinances listed on the Consent Calendar are deemed to have been read and further reading waived.)

CURRENT BUSINESS

11. FINANCIAL STATUS REPORT FOR THE FISCAL YEAR 2021/22 SECOND QUARTER ENDING DECEMBER 31, 2021 AND BUDGET ADJUSTMENT -
Request the City Council receive and file the second quarter financial report and approve a budget adjustment to amend the fiscal year 2021/22 operating budget.

Staff Recommendation: Approval (Finance Department: Christina Holmes) Presenter: Christina Holmes

FUTURE AGENDA

12. FUTURE AGENDA
The purpose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by California Government Code Section 54954.2 to clarifying questions, brief announcements, or requests for factual information in connection with an item when it is discussed.

Staff Recommendation: None (City Clerk's Office: Zack Beck)

COUNCILMEMBERS SUBCOMMITTEE REPORTS AND OTHER REPORTS
CITY MANAGER’S WEEKLY ACTIVITY REPORT
6 Wednesday, February 02, 2022

The most current information from the City Manager regarding Economic Development, Capital Improvement Projects, Public Safety, and Community Development. This report is also available on the City’s website, www.escondido.org.

ADJOURNMENT

UPCOMING MEETING SCHEDULE
Wednesday, March 02, 2022 4:00 & 5:00 PM Regular Meeting, Council Chambers Wednesday, March 09, 2022 4:00 & 5:00 PM Special Meeting (Board & Commission Interviews), Council Chambers

SUCCESSOR AGENCY
Members of the Escondido Ci ty Council also sit as the Successor Agency to the Community Development Commission, Escondido Joint Powers Financing Authority, and the Mobilehome Rent Review Board.

7 Consent Item No. 1 February 2, 2022

A F F I D A V I T S

I T E M

P O S T I N G
8 Item1.

STAFF REPORT

February 2, 2022
File Number 0400-40

SUBJECT

APPROVAL OF WARRANTS

DEPARTMENT
Finance

RECOMMENDATION
Request approval for City Council and Housing Successor Agency warrant numbers 359907 – 360047 dated January 19, 2022.

Staff Recommendation: Approval (Finance Department: Christina Holmes)

FISCAL ANALYSIS
The total amount of the warrants for the period of January 13 – January 19, 2022, is $1,968,289.05

BACKGROUND

The Escondido Municipal Code Section 10-49 states that warrants or checks may be issued and paid prior to audit by the City Council, provided the warrants or checks are certified and approved by the Director of Finance as conforming to the curr ent budget. These warrants or checks must then be ratified and approved by the City Council at the next regular Council meeting.

9 Item2.

Consent Item No. 3 February 2, 2022

A P P R O V A L

O F

M I N U T E S

10 Item3.

STAFF REPORT
February 2, 2022
File Number 0320-10

SUBJECT

ANNUAL STATE MANDATED INSPECTION COMPLIANCE REPORT

DEPARTMENT
Fire

RECOMMENDATION
Request the City Council approve Resolution 2022-01 acknowledging the Fire Department’s report of compliance with annual State mandated inspection s. The Report indicates the Escondido Fire Department has conducted 100% of Educational Group E occupancies and 100% of Residential Group R occupancies as required by state law.

Staff Recommendation: Approval (Fire: Rick Vogt)
Presenter: Rick Vogt

FISCAL ANALYSIS
None.

PREVIOUS ACTION
None.

BACKGROUND
California law requires that certain structures be inspected on a regular basis. Public or private schools, which are used by more than six persons, (Educational Group E occupancies) and specified structures used for housing, such as hotels, motels, lodging houses, residential care facilities, and apartment houses (Residential Group R occupancies), must be inspected for compliance with building standards pursuant to sections 13146.2 and 13146.3 of the California Health and Safety Code.

On September 27, 2018, Governor Jerry Brown signed Senate Bill (SB) 1205, which requires fire departments to report annually to their administering authorities that these mandatory inspections have been conducted. SB 1205 was introduced in early 2018 in response to the Oakland Ghost Ship warehouse 11 Item4.

fire in 2016, which killed 36 people, and reported that many schools and apartment buildings in the Bay Area had not received their annual required fire inspections for many years.

According to the SB 1205’s author, State Senator Jerry Hill, the annual report required by SB 1205 serves to “remind” cities to inspect their buildings as required by law to prevent the loss of life and property. SB 1205 requires the administering authority to acknowledge receipt of the report in a resolution or a similar formal document. The intent is to bring to the attention of governing bodies, particularly during the budget process, if there is a lack of compliance with specified mandated annual inspections.

The Escondido Fire Department has a business inspection program that meets the Health and Safety Code requirements for the annual inspection of educational Group E and the residential Group R occupancies.

Inspections are performed by our Fire Prevention Bureau inspectors and fire engine company personnel.

The current staffing level of the Fire Department is currently sufficient to meet the State mandated inspection requirements of SB 1205.

The report of annual State mandated inspections pursuant to sections 13146.2 and 13146.3 of the California Health and Safety Code is contained in Exhibit 1 of Resolution No. 2022-01.

RESOLUTIONS
a. Resolution No. 2022-01
b. Resolution No. 2022-01 Exhibit “A”

12 Item4.

RESOLUTION NO. 2022-01

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA , ACKNOWLEDGING RECEIPT

OF THE ANNUAL STATE MANDATED INSPECTION

COMPLIANCE REPORT DEVELOPED BY THE ESCONDIDO

FIRE DEPARTMENT REGARDING THE REQUIRED
INSPECTIONS PURSUANT TO SECTIONS 13146.2 AND
13146.3 OF THE CALIFORNIA HEALTH AND SAFETY
CODE

WHEREAS, California Health and Safety Code Section 13146.4 became effective on September 27, 2018; and
WHEREAS, California Health and Safety Code Sections 13146.2 and 13146.3 require all fire departments, which provide fire protection services, conduct annual inspections in every building used as a public or private school, hotel, motel, lodging house, apartment house, and certain residential c are facilities for compliance with building standards, as provided; and WHEREAS California Health & Safety Code Section 13146.4 requires all fire departments that provide fire protection services to report annually to its administering authority on its co mpliance with Sections 13146.2 and 13146.3; and
WHEREAS, the City Council intends this Resolution to fulfill the requirements of the California Health and Safety Code regarding acknowledgment of the Escondido Fire Department’s compliance with California Health and Safety Code Sections 13146.2 and 13146.3 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council expressly acknowledges the measure of compliance of the Escondido Fire Department with California Health and Safety Code Sections 13146.2 and 13146.3 in the 13 Item4.
area encompassed by the City of Escondido, as detailed in Exhibit “A”, which is attached to this Resolution and incorporated by this reference.

14 Item4.

Resolution No. 2022-01
Exhibit “A”

Page 1 of 1 ends

Escondido Fire Department Annual State Mandated Inspection Compliance Report

A. EDUCATIONAL GROUP E OCCUPANCIES:

Educational Group E occupancies are generally those public and private schools, used by more than six persons at any one time for educational purposes through the 12th grade. Within the City of Escondido, there lie 73 Group E occupancies , buildings, structures and/or facilities.

From January 1, 2021 , to December 31, 2021, the Escondido Fire Department completed 73 annual inspection s for the Group E occupancies, buildings, structures and/or facilities. This is a compliance rate of 100 percent for this reporting period.

B. RESIDENTIAL GROUP R OCCUPANCIES:

Residential Group R occupancies, for the purposes of this Resolution, are generally those occupancies containing sleeping units, and include hotels, motels, apartments (three units or more), etc., as well as other residential occupancies (including a number of residential care facilities). These residential care facilities have a number of different sub-classifications, and they may contain residents or clients that have a range of needs, including those related to custodial care, mobility impairments, cognitive disabilities, etc. The residents may also be non-ambulatory or bedridden. Within the City of Escondido, there lie 485 Group R (and their associated sub -categories) occupancies of this nature.

From January 1, 2021 , to December 31, 2021, the Escondido Fire Department completed 485 annual inspection for the Group R occupancies, buildings, structures and/or facilities. This is a compliance rate of 100 percent for this reporting period. 15 Item4.

STAFF REPORT

February 2, 2022
File Number 0490-55

SUBJECT
TREASURER’S INVESTMENT REPORT FOR THE QUARTER ENDED DECEMBER 31, 2021

DEPARTMENT
City Treasurer

RECOMMENDATION
Request the City Council receive and file the Quarterly Investment Report for the quarter ended December 31, 2021.

Staff Recommendation: Receive and File (City Treasurer: Douglas Shultz) Presenter: Douglas Schultz

FISCAL ANALYSIS
From October 1, 2021 to December 31 , 2021, the City of Escondido ’s (“City”) investment portfolio decreased from $196.9 million to $195.8 million. The adjusted average annual yield decreased from 0.874 percent to 0.786 percent with the portfolio duration at 2.54. An excess of cas h payment outflows over cash receipt inflows for the quarter resulted in a decrease of $1 .1 million in the book value of the investment portfolio.

PREVIOUS ACTION
The Investment Report for the quarter ended September 30, 2021, was filed with the City Cle rk’s Office on October 25, 2021 and presented to the City Council on November 3, 2021.

BACKGROUND
The City’s Investment Policy requires the City Treasurer to submit a quarterly investment report to the City Council and City Manager. The quarterly investme nt report should include the type of investment, issuer, date of maturity, par and dollar amount invested and market value for each security held by the City. Details of the City’s investment portfolio are included in the attached reports that are listed below:
• Summary of Investment Allocation as of December 31, 2021 (Attachment “1”) • Summary of Investment Portfolio Yield for the last 12 months (Attachment “2”) 16 Item5.

• Schedule of Funds Managed by Outside Parties as of December 31, 2021 (Attachment “3”) • PFM’s Investment Performance Review as of December 31, 2021 (Attachment “4”) PFM Asset Management Firm was onboarded as the City’s Investment Advisor in May 2019. In their Investment Performance Review ( Attachment “4”) you will find a Market Update, the Ci ty’s Portfolio Strategy and Performance, Issuer Distributions, Portfolio Distributions and Portfolio Holdings. The Summary of Investment Allocation ( Attachment 1””) and the Summary of Investment Portfolio Yield for the last 12 months (Attachment “2”) shows the total investment portfolio including funds in LAIF, CAMP, Stone Castle, and the City’s money market account with BNY.

There are adequate funds to meet the next six-month’s expected expenditures. As of December 31, 2021, the City complies with all requirements of the City’s Investment Policy.

ATTACHMENTS

1. Attachment “1” – Summary of Investment Allocation as of December 31, 2021

2. Attachment “2” – Summary of Investment Portfolio Yield for the last 12 months

3. Attachment “3” – Schedule of Funds Managed by Outside Parties as of December 31, 2021

4. Attachment “4” – Investment Performance Review for the Quarter Ended December 31, 2021 17 Item5.

Attachment "1"
Investment Type Market Value
State Investment Pool (LAIF) 33,056,464$ 33,056,464$ 16.90% State Investment Pool (LAIF)- ARP Funds 19,411,704 19,411,704 9.92% California Asset Management Program (CAMP) 4,019,093 4,019,093 2.05% Placement Service Deposits (Stone Castle) 5,245,737 5,245,737 2.68% U.S. Treasury Obligations 68,648,983 68,326,276 34.92%
Federal Agency Securities 16,536,218 16,387,615 8.38%
Supranational Securities 6,208,508 6,155,411 3.15%
U.S. Corporate Bonds 23,752,881 24,122,475 12.33%
U.S. Municipal Bonds 9,963,221 9,952,053 5.09%
Negotiable Certificates of Deposit 3,330,000 3,360,874 1.72% Asset-Backed Security 5,294,424 5,261,561 2.69%
Money Market Account (BNY Blackrock) 356,137 356,137 0.18% Total Investment Portfolio - December 2021 195,823,371$ 195,655,399$ 100% Reported Total Investments - September 2021 196,998,026$ 197,029,984$ Change from Prior Quarter (1,174,655)$ (1,374,585)$ Portfolio Duration 2.54
City of Escondido
Summary of Investment Allocation
as of December 31, 2021
Book Value
Percent of
Portfolio at
Market
17%
10%
2%
3%
35%
8%
3%
12%
5% 2% 0%
Summary of Investment Allocation as of December 31, 2021 State Investment Pool (LAIF)
State Investment Pool (LAIF)- ARP Funds
California Asset Management Program (CAMP)
Placement Service Deposits (Stone Castle)
U.S. Treasury Obligations
Federal Agency Securities
Supranational Securities
U.S. Corporate Bonds
U.S. Municipal Bonds
Negotiable Certificates of Deposit
Asset-Backed Security
Money Market Account (BNY Blackrock)
Item5.

Attachment "2"
Date Book Value Yield
Dec-21 $195,823,370.83 0.755%
Nov-21 $192,786,704.93 0.762%
Oct-21 $196,151,361.13 0.683%
Sep-21 $195,998,026.11 0.696%
Aug-21 $187,820,654.45 0.727%
Jul-21 $193,141,091.46 0.707%
Jun-21 $206,611,764.40 0.804%
May-21 $186,179,808.93 0.783%
Apr-21 $181,102,353.76 0.816%
Apr-00 $173,390,390.46 0.839%
Mar-00 $161,685,438.66 0.916%
Jan-00 $161,233,731.14 0.947%
Average Portfolio Interest Yields 0.786%
* Includes Assets managed by PFM, LAIF, and Stone Castle.

SUMMARY OF INVESTMENT PORTFOLIO YIELDS
FOR THE LAST 12 MONTHS
As of December 31, 2021
18 Item5.

Attachment "3"

CITY OF ESCONDIDO

FUNDS MANAGED BY OUTSIDE PARTIES
As of December 31, 2021
Market Interest Type of
Type of Funds / Institution Value Rate Investment

BOND FUNDS
BANK OF NEW YORK:
1998-1 Rancho San Pasqual Assessment District 353,579.15$ 0.010% Treasury 2012 Water Bond 0.45 0.000% Treasury
2013 JPFA Reidy Creek Lease Revenue Bonds (2001 Refunding) 0.08 0.000% Treasury 2013 Community Facility District - Hidden Trails (2001 Refunding) 0.20 0.000% Treasury 2015 Community Facility District - Eureka Ranch (2006 Refunding) 114.77 0.000% Cash/Treasury 2015A Wastewater Bond (2004A Refunding) 18.85 0.000% Dreyfus Cash Management Fund 2015B Wastewater Bond (2004B Refunding) 6.98 0.000% Dreyfus Cash Management Fund 2019 Water Bond 12.50 0.000% Dreyfus Cash Management Fund 353,732.98$
SECTION 115 TRUST FUNDS
PUBLIC AGENCY RETIREMENT SERVICES:

PARS Post-Employment Benefits Trust $27,023,050.40 Moderately Conservative HighMark PLUS TOTAL FUNDS MANAGED BY OUTSIDE PARTIES $27,376,783.38
19 Item5.

Investment Performance Review
For the Quarter Ended December 31, 2021
Client Management Team PFM Asset Management LLC
Sarah Meacham, Managing Director
Meredith LaBuda Sullivan, Senior Portfolio Manager
Richard Babbe, CCM, Senior Managing Consultant
Jeremy King, Key Account Manager
City of Escondido
213 Market Street
Harrisburg, PA 17101-2141
717-232-2723
633 W 5th St., 25th Floor
Los Angeles, CA 90071
213-415-1699
NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only - This material is not for inspection by, distribution to, or quotation to the general public
Attachment "4"
20 Item5.
© PFM Asset Management LLC pfmam.com|
Market Summary
Attachment "4"
21 Item5.

For the Quarter Ended December 31, 2021
Fixed Income ManagementQUARTERLY MARKET SUMMARY
Summary
►In Q4, U.S. economic conditions were characterized by: (1) a surge in COVID cases as the Omicron variant spread widely; (2) a sharply falling unemployment rate, rising wages, and near-record number of job openings; (3) stickier-than-expected inflation as pent-up consumer demand clashed with continued global supply chain disruptions amid a tight labor market and; (4) a pivot by the Fed to remove monetary accommodation more quickly, setting the stage for rate hikes to begin sooner than previously expected. ►The public health situation remained precarious with the em ergence of the Omicron
variant to COVID-19. The surge in new cases affected small businesses already challenged by labor shortages and rising prices due to supply chain challenges.

The labor market continued to recover, with the unemployment rate falling to a cycle low, plentiful job opportunities and rising wages. Although the economy has largely rebounded from the pandemic-induced recession, the massive monetary and fiscal support from the Fed and Congress has triggered a multi-decade surge in inflation. ►While growth is forecast to remain above trend, the real c hallenge for 2022 is getting
inflation down. Mounting inflationary pressures prompted accelerated tapering of bond purchases by the Fed and pulled forward expected rate hikes. Tapering is expected to be complete by mid-March followed by three rate hikes in 2022. The Fed may also let some of its $8.7 trillion balance sheet roll off sometime later in the year.

Economic Snapshot
►U.S. real GDP growth slowed sharply in Q3 to a modest 2.3%, wel l below the 6.5% growth rate in the first half of 2021. The lackluster growth reflected a slowdown in consumer spending as the Delta variant dampened confidence and behavior. Personal consumption grew at just 2% compared to the previous quarter’s 12%. Nevertheless, economists predict a solid rebound for Q4, with the Atlanta Fed forecasting growth of over 6%.
►The unemployment rate dropped to 3.9% in December, compare d to the record low
pre-pandemic level of 3.5%. In the past 50 years, unemployment has only been lower during the 22 months prior to the pandemic and for one month in 2000. Although the U.S. economy added a record 6.4 million jobs in 2021, overall employment remains below its pre-pandemic figure largely due to people dropping out of the labor force This imbalance created a shortage of workers and kept pressure on wages as employers battle to attract and retain workers.
►Inflation was shockingly high, with the CPI reaching 7% ye ar-over-year. Sharply
higher prices for gasoline, heating oil and other energy products were most pronounced.

New and used cars continued to show large price increases, but inflation became more widespread and persistent.
►Manufacturing and services activity chilled a bit with both the ISM Manufacturing and
Non-Manufacturing PMI surveys pulling back at quarter end. Nonetheless, both indices remain well above the 50-point threshold indicating growth. ►Demand for homes remained exceptionally strong, but invento ries are lean, leading to even higher prices. Higher prices amid higher mortgage rates will negatively affect affordability and present a headwind to further price increases. Existing home sales rose by 1.9% to a 6.46 million-unit annual rate in November, marking the third consecutive month of increases, while unseasonably mild weather helped boost housing starts by 12%. Bolstered by near-record-low inventories and high backlogs, home builder confidence is near an all-time high.

Interest Rates
►U.S. Treasury yields generally rose in the quarter and the y ield curve flattened, as
short- to intermediate-term maturities increased between 30 and 40 bps, led higher by expectations for faster Fed rate hikes. Meanwhile, rate changes were more muted to modestly lower on the longer end of the curve, which reflected expectations for longer- term normalization of inflation and GDP growth. At quarter-end, the yield on a3-month U.S. Treasury Bill stood at 0.03%, the 2-year note rose to 0.73%, the 5-year note climbed to 1.26%, the 10-year note increased to 1.51%, while the 30-year ended the quarter at 1.90%.
►As a result of yield changes over the quarter, U.S. Treasu ry returns were largely
negative, except for the shortest and longest tenors. For example, the 3-month U.S.

Treasury index returned 0.01% for the quarter and the 10-year U.S. Treasury index returned 0.75%. Meanwhile, those indexes representing the “belly” of the curve posted negative returns, with the 2-, 3-, and 5-year Treasury indices returning -0.51%, -0.85%, and -0.90%, respectively.

Sector Performance
►Investment in non-government sectors was a modest detractor to portfolio
performance in Q4 as yield spreads on most investment-grade (IG) fixed-income sectors widened off recent rock bottom levels. As a result, most IG spread sectors produced negative excess returns for Q4, underperforming similar-maturity Treasuries. ►Federal agencies were not immune to the broad spread wideni ng experienced in Q4, generating slightly negative excess returns. Although callable yield spreads widened modestly over the quarter due to an uptick in volatility, spreads generally remained low.

Non-callable agencies markedly outperformed their optionable counterparts. ►The taxable municipal sector was one of the best performing IG sectors during Q4, generating positive excess returns. Municipals performed well as lean supply was met with robust demand for new issues, ultimately keeping spreads in check. ►IG corporates slightly underperformed in Q4 after consisten tly being one of the top- performing sectors in prior quarters, as incremental spreads widened due to rising rates and the prospects for reduced monetary support from the Fed. As a result, IGcorporates posted negative excess returns, with longer duration issues underperforming shorter ones. Underperformance was generally consistent across the quality ratings spectrum. ►Federal agency-backed mortgage-backed security (MBS) exces s returns were generally negative across most collateral and coupon types except 15-year MBS pass- throughs. Conventional 15-year collateral generated modest outperformance, while 30-year collateral MBS and Agency CMBS underperformed. The Fed’s announcement of accelerated asset purchase tapering and the looming balance sheet reduction in combination with slowing refinancing activity has weighed on the sector. It is likely to persist for at least the near term.

PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Market Summary
© PFM Asset Management LLC pfmam.com|
1 Attachment "4"
22 Item5.

For the Quarter Ended December 31, 2021
Fixed Income ManagementQUARTERLY MARKET SUMMARY
Economic Snapshot
Labor Market Latest Sep '21 Dec '20
Unemployment Rate Dec'21 3.9% 4.7% 6.7% Unemplo yment Rate (left) vs. Change in Non-farm Payrolls (right) Change In Non-Farm Payrolls Unemployment Rate

16.0% 10,000K

14.0% 5,000K

12.0% 0

10.0% 5-000K8.0%

6.0% 10-000K

4.0% 15-000K

2.0% 20-000K

0.0% 25-000K
Dec '18 Jun '19 Dec '19 Jun '20 Dec '20 Jun '21 Dec '21 Change In Non-Farm Payrolls Dec'21 199,000 379,000 -306,000 Average Hourly Earnings (YoY) Dec'21 4.7% 4.5% 5.5%
Personal Income (YoY) Nov'21 7.4% 5.1% 4.8%
Initial Jobless Claims (week) 1/1/22 207,000 364,000 763,000 Growth
Real GDP (QoQ SAAR) 2021Q3 2.3%
1 6.7% 33.8 %
2 Real GDP (QoQ)
40%
GDP Personal Consumption (QoQ SAAR) 2021Q3 2.0%
1 12.0% 41.4%
2 30%
20%
10%
Retail Sales (YoY) Nov '21 18.2% 14.2% 2.3% 0%
-10%
ISM Manufacturing Survey (month) Dec '21 58.7 61.1 60.5 -20%
-30%
-40%
Existing Home Sales SAAR (month) Nov '21 6.46 mil. 6.29 mil. 6.65 mil. Sep '18 Mar '19 Sep '19 Mar '20 Sep '20 Mar '21 Sep '21 Inflation/Prices
Personal Consumption Expenditures (YoY) Nov '21 5.7% 4.4% 1.3% Con sumer Price Index CPI (YoY) Core CPI (YoY)
8%
Consumer Price Index (YoY) Nov '21 6.8% 5.4% 1.4% 7%
6%
Consumer Price Index Core(YoY) Nov '21 4.9% 4.0% 1.6%
5%
4%
3%
Crude Oil Futures (WTI, per barrel) Dec 31 $75.21 $75.03 $48.52 2%
1%
0%
Gold Futures (oz.) Dec 31 $1,829 $1,755 $1,895
Dec '18 Jun '19 Dec '19 Jun '20 Dec '20 Jun '21

1. Data as of Second Quarter 2021.

2. Data
as of Third Quarter 2020.

Note: YoY = year-over-year, QoQ = quarter-over-quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil.

Source: Bloomberg.

PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Market Summary
© PFM Asset Management LLC pfmam.com|
2 Attachment "4"
23 Item5.

For the Quarter Ended December 31, 2021
Fixed Income ManagementQUARTERLY MARKET SUMMARY
Source: Bloomberg.

Interest Rate Overview
U.S. Treasury Note Yields U.S. Tr easury Yield Curve
U.S. Treasury Yields Yield Curves as of 12/31/2021
0%
1%
2%
3%
3-yr
2-yr
1-yr
3-
mo
5-yr
7-yr
10-yr
20-yr
30-yr
Yield
Maturity
December 31, 2021 September 30, 2021 December 31, 2020
0%
1%
2%
3%
3-yr
2-yr
1-yr
3-
mo
7-yr
0 5-yr
10-yr
25-yr
30-yr
Yield
U.S. Treasury
Maturity
Federal Agency Corporates, A Rated

0.0%

0.5%

1.0%

1.5%

2.0%
12/31/20 3/31/21 6/30/21 9/30/21 12/31/21
Yield
2-Year 5-Year 10-Year
Maturity Dec '21 Sep '21 Change over
Quarter Dec '20 Change over
Year
3-Month 0.04% 0.04% 0.00% 0.07% (0.03%)
1-Year 0.38% 0.07% 0.31% 0.11% 0.27%
2-Year 0.73% 0.28% 0.45% 0.12% 0.61%
5-Year 1.
26% 0.97% 0.29% 0.36% 0.90%
10-Year 1.51% 1.49% 0.02% 0.92% 0.59%
30-Year 1.90% 2.05% (0.15%) 1.65% 0.25%
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Market Summary
© PFM Asset Management LLC pfmam.com|
3 Attachment "4"
24 Item5.

For the Quarter Ended December 31, 2021
Fixed Income ManagementQUARTERLY MARKET SUMMARY
December 31, 2021 Duration Yield 3 Month 1 Year 3 Years 1-3 Year Indices
U.S. Treasury 1.88 0.70 % (0.53%) (0.55%) 2.01%
Federal
Agency 1.78 0.68% (0.49%) (0.43%) 1.89%
U.S. Co
rporates, A-AAA rated 1.83 1.04% (0.57%) (0.24%) 2.88%
Agency
MBS (0 to 3 years) 1.87 0.78% (0.63%) (2.66%) 2.49%
Taxable
Municipals 1.51 0.94% (0.47%) 2.02% 3.58%
1-5 Year Indices
U.S. Treasury 2.64 0.87 % (0.68%) (1.10%) 2.42%
Federal
Agency 2.39 0.84% (0.70%) (0.86%) 2.07%
U.S. Co
rporates, A-AAA rated 2.75 1.30% (0.69%) (0.64%) 3.65%
Agency
MBS (0 to 5 years) 2.87 1.64% (0.75%) (1.56%) 2.59%
Taxable
Municipals 2.52 1.17% (0.67%) 0.46% 3.34%
Master Indices (Maturities 1 Year or Greater)
U.S. Treasury 7.37 1.24 % 0.35% (2.38%) 4.16%
Federal
Agency 3.99 1.08% (0.37%) (1.15%) 3.43%
U.S. Co
rporates, A-AAA rated 8.47 2.09% 0.20% (1.73%) 6.71%
Agency
MBS (0 to 30 years) 3.82 1.85% (0.42%) (1.21%) 3.08%
Taxable
Municipals 11.18 2.55% 0.64% 1.41% 8.83%
As of 12/31/2021 Returns for Periods ended 12/31/2021
Returns
for periods greater than one year are annualized.

Source: ICE BofAML Indices.

ICE BofAML Index Returns
PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Market Summary
© PFM Asset Management LLC pfmam.com|
4 Attachment "4"
25 Item5.

For the Quarter Ended December 31, 2021
Fixed Income ManagementQUARTERLY MARKET SUMMARY
Disclosures
PFM Asset Management LLC (“PFMAM”) is an investment advise r registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. (“USBAM”). USBAM is a subsidiary of U.S. Bank National Association (“U.S. Bank”). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S.

Bank is not responsible for and does not guarantee the products, services or performance of PFMAM.

The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution and are subject to change.

Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability. The information contained in this report is not an offer to purchase or sell any securities.

NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
Further distribution is not permitted without prior written consent.

PFM Asset Management LLC | For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public.

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Market Summary
© PFM Asset Management LLC pfmam.com|
5 Attachment "4"
26 Item5.
© PFM Asset Management LLC pfmam.com|
Account Summary
Attachment "4"
27 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Account Summary
|
Account Summary¹
PFM Managed Account $13 3,566,263
Total Program $133,566,263
Consolidated Summary
Sec
tor Allocation

0.0% 0.0% 0.0% 0.4%

6.0%

29.7%

25.3%

18.4% 20.3%

0.0% 0.0% 0.0%
$0
$10
$
20 $30
$40
$50
Millions
Under
30 days
31 to 60
days
61 to 90
days
91 to
180 days
181 days
to 1 year
1 to 2
years
2 to 3
years
3 to 4
years
4 to 5
years
5 to 7
years
7 to 10
years
Over 10
years
Maturity Distribution
(Weighted Average Maturity: 975 Days)
Market values exclude accrued interest, as of December 31, 2021.1.

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Account Summary
|

3.9%

18.1%

1.8%

0.7%

7.5%

4.6%

1.4%

10.9%

51.2%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%
U.S. Treasury - $68,326,276
Federal Agency - $14,545,503
Agency CMBS - $1,842,112
Supranational - $6,155,411
Municipal - $9,952,053
FDIC CD** - $992,408
Negotiable CD** - $2,368,465
Corporate - $24,122,475
ABS - $5,261,561
Portfolio Allocation Sector Limit for Analysis*
Sector Allocation Analytics
For informational/analytical purposes only and is not provided for compliance assurance. *Sector Limit for Analysis is as derived from our interpretation of your most recent Investment Policy as provided ** The aggregate limit for certificates of deposits is 30%. 7 Attachment "4"
29 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Compliance
|
Note: Pre- and post-trade compliance for the account(s) managed by PFM Asset Management is provided via Bloomberg Asset and Investment Management ("AIM").

Certificate of Compliance
During the reporting period for the quarter ended December 31, 2021, the account(s) managed by PFM Asset Management ("P
FMAM") were in compliance with the applicable investment policy and guidelines as furnished to PFMAM.

Acknowledged :PFM Asset Management LLC
8 Attachment "4"
30 Item5.
© PFM Asset Management LLC pfmam.com|
Portfolio Review
Attachment "4"
31 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Snapshot
|
The portfolio’s benchmark is the ICE BofAML 1-5 Year U.S. Treasury Index. Source: Bloomberg.

An average of each security’s credit rating was assigned a numeric value and adjusted for its relative weighting in the portfolio.

1. Portfolio Statistics
Total Market Value $134 ,342,362.00
Portfolio Effective Duration 2.54 years
Benchmark Effective Duration 2.58 years
Yield At Cost 1.02%
Yield At Market 0.93%
Portfolio Credit Quality AA
Portfolio Snapshot
Credit Quality - S&P
7%
32%
26%
17% 18%
4%
34%
27%
19%
16%
0%
5%
10%
15%
20%
25%
30%
35%
0-1 Yr 1-2 Yrs 2-3 Yrs 3-4 Yrs 4-5 Yrs
Portfolio Benchmark
Duration Distribution
U.S. Treasury | 51%
Corporate | 18%
Federal Agency | 11%
Municipal | 8%
Supranational | 5%
ABS | 4%
Negotiable CD | 2%
Agency CMBS | 1%
FDIC CD | 1%
Sector Allocation
AAA | 9%
AA+ | 65%
AA | 2%
AA- | 2%
A-1+ | 1%
A+ | 5%
A | 4%
A- | 6%
BBB+ | 3%
Not Rated | 3%
9 Attachment "4"
32 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Account Summary
|
Ratings shown are calculated by assigning a numeral value to each security rating, then calculating a weighted average rating for each security type / issuer category using all available security ratings, excluding Not-Rated (NR) ratings. For security type / issuer categories where a rating from the applicable NRSRO is not available, a rating of NR is assigned. Excludes balances invested in money market funds.

Issuer Diversification
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer

51.2%U.S. Treasury
UNITED STATES TREASURY 51.2% AA / Aaa / AAA

10.9%Federal Agency
FANNIE MAE 6.2% A A / Aaa / AAA
FEDERAL HOME LOAN BANKS 1.7% AA / Aaa / NR
FREDDIE MAC 2.9% AA / Aaa / AAA

1.4%Agency CMBS
FANNIE MAE 0.5% AA / Aaa / AAA
FREDDIE MAC 0.9% AA / Aaa / AAA

4.6%Supranational
INTER-AMERICAN DEVELOPMENT BANK 2.1% AAA / Aaa / AAA
INTL BANK OF RECONSTRUCTION AND DEV 2.5% AAA / Aaa / AAA

7.5%Municipal
CITY & COUNTY OF SAN FRANCISCO 0.6% NR / NR / AA
FLORIDA STATE BOARD OF ADMIN FIN CORP 0.5% AA / Aa / AA

LONG BEACH COMMUNITY COLLEGE

DISTRICT

0.3% AA / Aa / NR

LOS ANGELES COMMUNITY COLLEGE

DISTRICT

0.3% AA / Aaa / NR
LOS ANGELES UNIFIED SCHOOL DISTRICT 0.2% NR / Aa / AA
NEW YORK ST URBAN DEVELOPMENT CORP 0.7% AA / NR / AA
PALOMAR COMMMUNITY COLLEGE DISTRICT 0.3% AA / Aa / NR
SAN DIEGO COMMUNITY COLLEGE DISTRICT 0.2% AAA / Aaa / NR SAN DIEGO COUNTY WATER AUTHORITY 0.4% AAA / Aa / AA
SAN JUAN UNIFIED SCHOOL DISTRICT 0.3% NR / Aa / NR

SAN RAMON VALLEY UNIFIED SCHOOL

DISTRICT

0.3% AA / Aa / NR
STATE OF CONNECTICUT 1.0% A / Aa / AA
STATE OF MARYLAND 0.3% AAA / Aaa / AAA
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer

7.5%Municipal
STATE OF MINNESOTA 0.2% AAA / Aa / AAA
STATE OF MISSISSIPPI 0.1% AA / Aa / AA
STATE OF WISCONSIN 0.5% AAA / NR / AA
TAMALPAIS UNION HIGH SCHOOL DISTRICT 0.5% NR / Aaa / NR UNIVERSITY OF CALIFORNIA 0.3% AA / Aa / AA

VENTURA COUNTY COMM COLLEGE

DISTRICT

0.6% AA / Aa / NR

0.7%FDIC CD
BENEFICIAL BANK 0.2% NR / NR / NR
CAPITAL ONE FINANCIAL CORP 0.2% NR / NR / NR
FOCUS BANK 0.2% NR / NR / NR
GOLDMAN SACHS GROUP INC 0.2% NR / NR / NR

1.8%Negotiable CD
CREDIT SUISSE GROUP RK 0.5% A / A / A
DNB ASA 0.5% AA / Aa / NR
NORDEA BANK ABP 0.8% AA / Aa / AA

18.1%Corporate
ABBOTT LABORATORIES 0.6% A / A / NR
ADOBE INC 0.1% A / A / NR
AMAZON.COM INC 0.9% AA / A / AA
AMERICAN EXPRESS CO 0.6% BBB / A / A
AMERICAN HONDA FINANCE 0.7% A / A / A
ASTRAZENECA PLC 0.5% A / A / NR
BANK OF AMERICA CO 1.1% A / A / AA
BLACKROCK INC 1.1% AA / Aa / NR
BMW FINANCIAL SERVICES NA LLC 0.6% A / A / NR
BRISTOL-MYERS SQUIBB CO 0.4% A / A / NR
10 Attachment "4"
33 Item5.
© PFM Asset Management LLC pfmam.com

Issuer Diversification
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer

18.1%Corporate
CATERPILLAR INC 0.6% A / A / A
CHARLES SCHWAB 0.6% A / A / A
CHEVRON CORPORATION 0.5% AA / Aa / NR
CITIGROUP INC 0.4% BBB / A / A
COMCAST CORP 0.5% A / A / A
DEERE & COMPANY 0.6% A / A / A
GENERAL DYNAMICS CORP 0.6% A / A / NR
GOLDMAN SACHS GROUP INC 0.5% BBB / A / A
JP MORGAN CHASE & CO 1.0% A / A / AA
LOCKHEED MARTIN CORP 0.2% A / A / A
MORGAN STANLEY 0.6% BBB / A / A
PACCAR FINANCIAL CORP 0.3% A / A / NR
PNC FINANCIAL SERVICES GROUP 0.5% A / A / A

THE BANK OF NEW YORK MELLON

CORPORATION

1.1% A / A / AA
THE WALT DISNEY CORPORATION 0.6% BBB / A / A
TOYOTA MOTOR CORP 0.8% A / A / A
TRUIST FIN CORP 0.6% A / A / A
UNILEVER PLC 0.1% A / A / A
UNITEDHEALTH GROUP INC 0.5% A / A / A
US BANCORP 0.7% A / A / A

3.9%ABS
BMW FINANCIAL SERVICES NA LLC 0.1% AAA / Aaa / NR
CAPITAL ONE FINANCIAL CORP 0.5% AAA / NR / AAA
CARMAX AUTO OWNER TRUST 0.9% AAA / Aaa / AAA

GM FINANCIAL CONSUMER AUTOMOBILE
TRUST

0.2% NR / Aaa / AAA
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer

3.9%ABS
GM FINANCIAL LEASINGTRUST 0.2% AAA / NR / AAA
HONDA AUTO RECEIVABLES 0.4% AAA / Aaa / AAA

HYUNDAI AUTO LEASE SECURITIZATION
TRUST

0.1% AAA / Aaa / NR
HYUNDAI AUTO RECEIVABLES 0.2% AAA / NR / AAA
KUBOTA CREDIT OWNER TRUST 0.4% NR / Aaa / AAA
MERCEDES-BENZ AUTO LEASE TRUST 0.1% AAA / NR / AAA
NISSAN AUTO LEASE TRUST 0.2% AAA / Aaa / NR
Toyota Lease Owner Trust 0.2% AAA / Aaa / NR
TOYOTA MOTOR CORP 0.2% AAA / Aaa / NR
WORLD OMNI AUTO REC TRUST 0.3% AAA / NR / AAA
100.0%Total
11 Attachment "4"
34 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Characteristics
|
$0
$28
$56
$84
$112
$140
December 2021
$0
$28
$56
$84
$112
$140
September 2021
$0
$28
$56
$84
$112
$140
June 2021
$0
$28
$56
$84
$112
$140
Millions
March 2021
Sector Allocation Review
U.S. Treasury Federal Agency Agency CMBS Supranational Municipal FDIC CD Negotiable CD Corporate ABS Market values, excluding accrued interest. Only includes investments held within the separately managed account(s). Detail may not add to total due to rounding.

Mar-21 % of TotalSecurity Type Jun-21 % of Total Sep-21 % of Total % of TotalDec-21 U.S. Treasury $26.0 27.5% $32.2 30.9% $34.3 32.7% $68.3 51.1% Federal Agency $20.5 21.7% $20.3 19.4% $17.5 16.8% $14.5 10.9% Agency CMBS $3.1 3.3% $2.9 2.8% $2.7 2.6% $1.8 1.4%
Supranational $3.4 3.6% $6.2 5.9% $7.7 7.4% $6.2 4.6%
Municipal $10.0 10.6% $10.0 9.6% $9.8 9.3% $10.0 7.5%
FDIC CD $1.3 1.3% $1.0 1.0% $1.0 1.0% $1.0 0.7%
Negotiable CD $5.5 5.8% $5.4 5.2% $4.0 3.9% $2.4 1.8%
Corporate $23.2 24.6% $23.8 22.9% $23.6 22.5% $24.1 18.1% ABS $1.5 1.6% $2.4 2.3% $3.9 3.8% $5.3 3.9%
Total $94.5 100.0% $104.3 100.0% $104.5 100.0% $133.6 100.0% 12 Attachment "4"
35 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Characteristics
|
Historical Sector Allocation
Only includes investments held within the separately managed account(s). 33%
17%
3%
7%
9%
1%
4%
23%
4%
Sep-21
51%
11%
1%
5%
8%
2%
18%
4%
Dec-21
1%
13 Attachment "4"
36 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Activity
|
Portfolio Activity
Net Activity by Sector
($ millions)
Federal Agency
Negotiable CD
Supranational
Agency CMBS
Municipal
Corporate
ABS
U.S. Treasury
Federal Agency
Nego
tiable CD
Supranational
Agency CMBS
Municipal
Corporate
ABS
U.S. Treasury
($10.0) $0.0 $10.0 $20.0 $30.0 $40.0
Based on total proceeds (principal and accrued interest) of buys, sells, maturities, and principal paydowns. Detail may not add to total due to rounding.

Sector Net Activity
U.S. Treasury $34,568,708
ABS $1,349,794
Corporate $836,314
Municipal $310,000
Agency CMBS ($822,822)
Supranational ($1,478,101)
Negotiable CD ($1,654,931)
Federal Agency ($2,839,211)
$30,269,750Total Net Activity
Sales/Maturities Purchases
14 Attachment "4"
37 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Performance
|
The lesser of 10 years or since inception is shown. Since inception returns for periods one year or less are not shown. Performance inception date is June 30, 2019.1.

Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.2.

Returns for periods one year or less are presented on a periodic basis. Returns for periods greater than one year are presented on an annualized basis.3.

The portfolio’s benchmark is the ICE BofAML 1-5 Year U.S. Treasury Index. Source: Bloomberg.4. -1.5%
-1.0%
-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%
Return
Portfolio Benchmark Net of Fees
Portfolio Performance
Market Value Basis Earnings 3 Months 1 Year 3 Years 5 Years Since Inception¹ Interest Earned² $409, 686 $1,575,005 - - $4,284,149
Change in Market Value ($1,222,536) ($2,492,116) - - $18,093 ($812,850)Total Dollar Return ($917,111) - - $4,302,242 Total Return³
Portfolio -0.66% -0.78% 2.06%
Benchmark⁴ -0.68% -1.10% 1.67%
Basis Point Fee 0.02% 0.08% - - 0.08%
Net of Fee Return -0.68% -0.86% - - 1.98%
3 Months 1 Year 3 Years 5 Years Since Inception
- -
- -
15 Attachment "4"
38 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Performance
|
Performance on trade-date basis, gross (i.e., before fees), in accordance with the CFA Institute’s Global Investment Performance Standards (GIPS).1.

Income returns calculated as interest earned on investments during the period.2.

Price returns calculated as the change in market value of each security for the period.3.

Returns are presented on a periodic basis.4.

Quarterly Sector Performance
Total Return by Sector Contrib ution to Total Return
Cash
ABS
Corporate
Commercial Paper
Negotiable CD

FDIC CD
Municipal
Supranational
Agency CMBS
Federal Agency
U.S. Treasury
-0.80%
-0.60%
-0.40%
-0.20%

0.00%

0.02%

0.13%

0. 64%

0.00%

0.40%

0.56%

0.37%

0.15%

0.87%

0.24%

0.00%
-0.76%
-1.34%

0.00%
-0.50%
-0.59%
-1.13%
-0.75%
-1.44%
-1.03%
-0.90%
-5.0% -3.6% -2.2% -0.7% 0.7% 2.2%
Return
16 Attachment "4"
39 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Performance
|
The lesser of 10 years or since inception is shown. Performance inception date is June 30, 2019.1.

Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.2.

Realized gains / (losses) are shown on an amortized cost basis.3.

Accrual Basis Earnings
Accrual Basis Earnings
Interest Earned
Reali
zed Gains / (Losses)
Change in Amortized Cost
Total Earnings
3 Months
$409,686
$71,0
17 ($93,623)
$387,079
1 Year
$1,575,005
$333,
021
($347,520)
$1,560,506
3 Years
-
-
-
-
5 Year
-
-
-
-
Since Inception
$4,284,149
$1,33
3,109
($692,050)
$4,925,208
17 Attachment "4"
40 Item5.
© PFM Asset Management LLC pfm.com|
Issuer Distribution
Attachment "4"
41 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Composition
|
Issuer Distribution
As of December 31, 2021
Issuer Mar ket Value ($) % of Portfolio
UNITED STATES TREASURY 68,326,276 51.15%
FANNIE MAE 8,960,259 6.71%
FREDDIE MAC 5,113,755 3.83%
INTL BANK OF RECONSTRUCTION AND DEV 3,393,293 2.54%
INTER-AMERICAN DEVELOPMENT BANK 2,762,117 2.07%
FEDERAL HOME LOAN BANKS 2,313,601 1.73%
BLACKROCK INC 1,498,060 1.12%
BANK OF AMERICA CO 1,481,851 1.11%
THE BANK OF NEW YORK MELLON CORPORATION 1,460,859 1.09% TOYOTA MOTOR CORP 1,406,535 1.05%
JP MORGAN CHASE & CO 1,337,301 1.00%
STATE OF CONNECTICUT 1,290,663 0.97%
CARMAX AUTO OWNER TRUST 1,226,677 0.92%
AMAZON.COM INC 1,192,342 0.89%
NORDEA BANK ABP 1,009,595 0.76%
BMW FINANCIAL SERVICES NA LLC 989,451 0.74%
AMERICAN HONDA FINANCE 985,974 0.74%
CAPITAL ONE FINANCIAL CORP 959,239 0.72%
NEW YORK ST URBAN DEVELOPMENT CORP 931,959 0.70%
GOLDMAN SACHS GROUP INC 882,916 0.66%
US BANCORP 872,368 0.65%
ABBOTT LABORATORIES 861,364 0.64%
THE WALT DISNEY CORPORATION 858,828 0.64%
CHARLES SCHWAB 856,893 0.64%
18 Attachment "4"
42 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Composition
|
Issuer Market Value ($) % of Portfolio
DEERE & COMPANY 855,951 0.64%
VENTURA COUNTY COMM COLLEGE DISTRICT 853,413 0.64%
TRUIST FIN CORP 840,855 0.63%
AMERICAN EXPRESS CO 833,552 0.62%
CATERPILLAR INC 831,239 0.62%
MORGAN STANLEY 789,278 0.59%
GENERAL DYNAMICS CORP 748,240 0.56%
CITY & COUNTY OF SAN FRANCISCO 739,424 0.55%
CREDIT SUISSE GROUP RK 714,841 0.54%
FLORIDA STATE BOARD OF ADMIN FIN CORP 702,124 0.53%
ASTRAZENECA PLC 691,081 0.52%
COMCAST CORP 674,882 0.51%
UNITEDHEALTH GROUP INC 655,602 0.49%
DNB ASA 644,029 0.48%
STATE OF WISCONSIN 635,315 0.48%
CHEVRON CORPORATION 629,300 0.47%
TAMALPAIS UNION HIGH SCHOOL DISTRICT 628,770 0.47%
PNC FINANCIAL SERVICES GROUP 615,298 0.46%
BRISTOL-MYERS SQUIBB CO 587,043 0.44%
HONDA AUTO RECEIVABLES 585,954 0.44%
CITIGROUP INC 520,256 0.39%
KUBOTA CREDIT OWNER TRUST 518,068 0.39%
SAN DIEGO COUNTY WATER AUTHORITY 473,707 0.35%
PALOMAR COMMMUNITY COLLEGE DISTRICT 435,816 0.33%
SAN JUAN UNIFIED SCHOOL DISTRICT 411,572 0.31%
LOS ANGELES COMMUNITY COLLEGE DISTRICT 402,870 0.30%
SAN RAMON VALLEY UNIFIED SCHOOL DISTRICT 397,046 0.30%
19 Attachment "4"
43 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Composition
|
Issuer Market Value ($) % of Portfolio
STATE OF MARYLAND 372,176 0.28%
UNIVERSITY OF CALIFORNIA 371,153 0.28%
PACCAR FINANCIAL CORP 360,382 0.27%
LONG BEACH COMMUNITY COLLEGE DISTRICT 355,548 0.27%
WORLD OMNI AUTO REC TRUST 348,018 0.26%
LOS ANGELES UNIFIED SCHOOL DISTRICT 309,230 0.23%
GM FINANCIAL CONSUMER AUTOMOBILE TRUST 299,296 0.22%
STATE OF MINNESOTA 271,054 0.20%
SAN DIEGO COMMUNITY COLLEGE DISTRICT 251,586 0.19%
FOCUS BANK 249,142 0.19%
BENEFICIAL BANK 248,603 0.19%
LOCKHEED MARTIN CORP 245,862 0.18%
TOYOTA LEASE OWNER TRUST 233,881 0.18%
GM FINANCIAL LEASINGTRUST 222,047 0.17%
NISSAN AUTO LEASE TRUST 220,013 0.16%
HYUNDAI AUTO RECEIVABLES 217,843 0.16%
UNILEVER PLC 158,963 0.12%
HYUNDAI AUTO LEASE SECURITIZATION TRUST 139,266 0.10%
STATE OF MISSISSIPPI 118,628 0.09%
ADOBE INC 96,047 0.07%
MERCEDES-BENZ AUTO LEASE TRUST 89,822 0.07%
133,566,263Grand Total 100.00%
20 Attachment "4"
44 Item5.
© PFM Asset Management LLC pfm.com|
Portfolio Holdings
Attachment "4"
45 Item5.
© PFM Asset Management LLC pfmam.com

CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Holdings
|
Managed Account Detail of Securities Held
Security Type/Description
Dat
ed Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
U.S. Treasury

US TREASURY NOTES
DTD 10/31/2017 2.000% 10/31/2022
9128283C2 250,000.00 AA+ Aaa 8/30/2019 9/6/2019 254,238.28 1.45 856.35 253,359.38

US TREASURY NOTES
DTD 11/30/2020 0.125% 11/30/2022
91282CAX9 4,000,000.00 AA+ Aaa 12/2/2020 12/4/2020 3,996,875.00 0.16 439.56 3,990,624.80

US TREASURY NOTES
DTD 11/30/2020 0.125% 11/30/2022
91282CAX9 250,000.00 AA+ Aaa 12/4/2020 12/4/2020 249,853.52 0.15 27.47 249,414.05

US TREASURY NOTES
DTD 12/31/2015 2.125% 12/31/2022
912828N30 195,000.00 AA+ Aaa 1/29/2021 2/2/2021 202,464.84 0.12 11.45 198,260.16

US TREASURY NOTES
DTD 12/31/2015 2.125% 12/31/2022
912828N30 235,000.00 AA+ Aaa 10/28/2020 10/30/2020 245,024.22 0.15 13.79 238,928.92

US TREASURY NOTES
DTD 04/02/2018 2.500% 03/31/2023
9128284D9 50,000.00 AA+ Aaa 1/16/2020 1/21/2020 51,427.73 1.58 319.37 51,226.56

US TREASURY NOTES
DTD 05/02/2016 1.625% 04/30/2023
912828R28 4,800,000.00 AA+ Aaa 11/10/2021 11/12/2021 4,890,187.50 0.34 13,359.12 4,869,000.00

US TREASURY NOTES
DTD 04/30/2018 2.750% 04/30/2023
9128284L1 100,000.00 AA+ Aaa 6/3/2019 6/5/2019 103,304.69 1.87 470.99 102,921.88

US TREASURY NOTES
DTD 05/15/2020 0.125% 05/15/2023
912828ZP8 2,285,000.00 AA+ Aaa 1/4/2021 1/6/2021 2,284,732.23 0.13 370.84 2,271,789.96

US TREASURY NOTES
DTD 06/30/2016 1.375% 06/30/2023
912828S35 775,000.00 AA+ Aaa 5/8/2019 5/9/2019 747,511.72 2.28 29.44 784,082.07

US TREASURY NOTES
DTD 07/31/2018 2.750% 07/31/2023
912828Y61 145,000.00 AA+ Aaa 9/3/2019 9/5/2019 152,657.81 1.36 1,668.68 149,848.44

US TREASURY N/B NOTES
DTD 07/31/2021 0.125% 07/31/2023
91282CCN9 240,000.00 AA+ Aaa 8/5/2021 8/9/2021 239,634.38 0.20 125.54 238,087.49

US TREASURY N/B NOTES
DTD 08/31/2021 0.125% 08/31/2023
91282CCU3 900,000.00 AA+ Aaa 9/1/2021 9/3/2021 898,558.59 0.21 382.25 891,984.42

US TREASURY NOTES
DTD 10/01/2018 2.875% 09/30/2023
9128285D8 5,000,000.00 AA+ Aaa 11/10/2021 11/12/2021 5,224,609.38 0.47 36,727.34 5,190,625.00

US TREASURY NOTES
DTD 09/30/2021 0.250% 09/30/2023
91282CDA6 800,000.00 AA+ Aaa 10/1/2021 10/6/2021 799,718.75 0.27 510.99 794,375.04 21 Attachment "4"
46 Item5.
© PFM Asset Management LLC pfmam.com

US TREASURY N/B NOTES
DTD 10/31/2021 0.375% 10/31/2023
91282CDD0 2,350,000.00 AA+ Aaa 11/1/2021 11/3/2021 2,343,390.63 0.52 1,509.32 2,336,781.25

US TREASURY NOTES
DTD 01/31/2017 2.250% 01/31/2024
912828V80 600,000.00 AA+ Aaa 5/8/2019 5/9/2019 598,851.56 2.29 5,649.46 618,375.00

US TREASURY NOTES
DTD 02/28/2017 2.125% 02/29/2024
912828W48 95,000.00 AA+ Aaa 4/29/2019 5/1/2019 94,157.62 2.32 685.93 97,731.25

US TREASURY NOTES
DTD 03/31/2017 2.125% 03/31/2024
912828W71 2,650,000.00 AA+ Aaa 4/15/2021 4/16/2021 2,789,539.06 0.33 14,387.53 2,727,015.63

US TREASURY N/B NOTES
DTD 04/15/2021 0.375% 04/15/2024
91282CBV2 5,000,000.00 AA+ Aaa 11/10/2021 11/12/2021 4,964,843.75 0.67 4,017.86 4,949,219.00

US TREASURY NOTES
DTD 06/30/2017 2.000% 06/30/2024
912828XX3 1,225,000.00 AA+ Aaa 7/1/2019 7/3/2019 1,238,159.18 1.77 67.68 1,258,878.85

US TREASURY NOTES
DTD 07/31/2019 1.750% 07/31/2024
912828Y87 740,000.00 AA+ Aaa 12/2/2019 12/4/2019 742,572.66 1.67 5,419.29 756,534.41

US TREASURY NOTES
DTD 08/15/2014 2.375% 08/15/2024
912828D56 575,000.00 AA+ Aaa 10/25/2019 10/28/2019 595,282.23 1.61 5,158.20 596,921.88

US TREASURY NOTES
DTD 10/02/2017 2.125% 09/30/2024
9128282Y5 795,000.00 AA+ Aaa 12/2/2019 12/4/2019 811,334.77 1.68 4,316.26 820,837.50

US TREASURY NOTES
DTD 10/31/2019 1.500% 10/31/2024
912828YM6 635,000.00 AA+ Aaa 2/4/2021 2/5/2021 663,773.44 0.28 1,631.35 644,921.88

US TREASURY N/B NOTES
DTD 11/15/2021 0.750% 11/15/2024
91282CDH1 5,000,000.00 AA+ Aaa 11/10/2021 11/15/2021 4,991,406.25 0.81 4,868.78 4,972,656.00

US TREASURY NOTES
DTD 11/30/2017 2.125% 11/30/2024
9128283J7 1,480,000.00 AA+ Aaa 1/2/2020 1/6/2020 1,512,085.94 1.66 2,764.84 1,529,025.00

US TREASURY NOTES
DTD 01/31/2018 2.500% 01/31/2025
9128283V0 280,000.00 AA+ Aaa 2/3/2020 2/5/2020 295,301.56 1.36 2,929.35 292,687.50

US TREASURY NOTES
DTD 05/31/2020 0.250% 05/31/2025
912828ZT0 2,000,000.00 AA+ Aaa 11/10/2021 11/12/2021 1,950,078.13 0.97 439.56 1,945,000.00

US TREASURY NOTES
DTD 07/31/2020 0.250% 07/31/2025
91282CAB7 2,500,000.00 AA+ Aaa 4/15/2021 4/16/2021 2,453,613.28 0.69 2,615.49 2,424,609.50

US TREASURY NOTES
DTD 09/30/2020 0.250% 09/30/2025
91282CAM3 620,000.00 AA+ Aaa 9/1/2021 9/3/2021 610,578.91 0.63 396.02 600,237.50

US TREASURY NOTES
DTD 12/31/2020 0.375% 12/31/2025
91282CBC4 1,200,000.00 AA+ Aaa 1/29/2021 2/2/2021 1,197,421.88 0.42 12.43 1,162,875.00 22 Attachment "4"
47 Item5.
© PFM Asset Management LLC pfmam.com

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 800,000.00 AA+ Aaa 10/1/2021 10/6/2021 784,500.00 0.83 1,255.43 774,000.00

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,100,000.00 AA+ Aaa 3/1/2021 3/3/2021 1,083,113.28 0.69 1,726.22 1,064,250.00

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,000,000.00 AA+ Aaa 9/1/2021 9/3/2021 986,445.31 0.69 1,569.29 967,500.00

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,600,000.00 AA+ Aaa 11/1/2021 11/3/2021 1,550,500.00 1.12 2,510.87 1,548,000.00

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 345,000.00 AA+ Aaa 2/25/2021 2/26/2021 338,342.58 0.77 541.41 333,787.50

US TREASURY NOTES
DTD 01/31/2021 0.375% 01/31/2026
91282CBH3 1,280,000.00 AA+ Aaa 7/2/2021 7/7/2021 1,255,400.00 0.80 2,008.70 1,238,400.00

US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 3,000,000.00 AA+ Aaa 11/10/2021 11/12/2021 2,923,710.94 1.11 5,096.68 2,914,218.60

US TREASURY NOTES
DTD 02/28/2021 0.500% 02/28/2026
91282CBQ3 400,000.00 AA+ Aaa 3/31/2021 4/5/2021 392,359.38 0.90 679.56 388,562.48

US TREASURY N/B NOTES
DTD 03/31/2021 0.750% 03/31/2026
91282CBT7 2,000,000.00 AA+ Aaa 4/15/2021 4/16/2021 1,991,015.63 0.84 3,832.42 1,961,875.00

US TREASURY N/B NOTES
DTD 05/31/2021 0.750% 05/31/2026
91282CCF6 1,680,000.00 AA+ Aaa 6/2/2021 6/4/2021 1,676,325.00 0.79 1,107.69 1,645,612.42

US TREASURY N/B NOTES
DTD 06/30/2021 0.875% 06/30/2026
91282CCJ8 2,050,000.00 AA+ Aaa 8/2/2021 8/4/2021 2,070,820.31 0.66 49.55 2,017,328.13

US TREASURY N/B NOTES
DTD 10/31/2021 1.125% 10/31/2026
91282CDG3 500,000.00 AA+ Aaa 11/1/2021 11/3/2021 497,675.78 1.22 963.40 496,718.75

US TREASURY N/B NOTES
DTD 10/31/2021 1.125% 10/31/2026
91282CDG3 5,000,000.00 AA+ Aaa 11/10/2021 11/12/2021 4,984,375.00 1.19 9,633.98 4,967,187.50 68,525,000.00 68,727,772.70 143,157.73 68,326,275.70Security Type Sub-Total 0.76 Supranational

INTL BK OF RECON AND DEV NOTE
DTD 04/20/2021 0.126% 04/20/2023
459058JV6 2,750,000.00 AAA Aaa 4/15/2021 4/20/2021 2,744,912.50 0.22 683.38 2,734,446.00

INTER-AMERICAN DEVEL BK NOTES
DTD 04/24/2020 0.500% 05/24/2023
4581X0DM7 400,000.00 AAA Aaa 4/17/2020 4/24/2020 399,864.00 0.51 205.56 399,369.20 23 Attachment "4"
48 Item5.
© PFM Asset Management LLC pfmam.com

INTL BK RECON & DEVELOP NOTES
DTD 11/24/2020 0.250% 11/24/2023
459058JM6 665,000.00 AAA Aaa 11/17/2020 11/24/2020 663,570.25 0.32 170.87 658,847.42

INTER-AMERICAN DEVEL BK NOTES
DTD 09/23/2021 0.500% 09/23/2024
4581X0DZ8 1,530,000.00 AAA Aaa 9/15/2021 9/23/2021 1,528,867.80 0.52 2,082.50 1,510,434.36

INTER-AMERICAN DEVELOPMENT

BANK NOTES
DTD 01/16/2020 1.750% 03/14/2025
4581X0DK1 835,000.00 AAA Aaa 2/19/2021 2/23/2021 877,835.50 0.47 4,343.16 852,313.73 6,180,000.00 6,215,050.05 7,485.47 6,155,410.71Security Type Sub-Total 0.36 Negotiable CD

NORDEA BANK ABP NEW YORK CERT
DEPOS
DTD 08/29/2019 1.850% 08/26/2022
65558TLL7 1,000,000.00 A-1+ P-1 8/27/2019 8/29/2019 1,000,000.00 1.84 6,577.78 1,009,595.00

DNB BANK ASA/NY LT CD
DTD 12/06/2019 2.040% 12/02/2022
23341VZT1 635,000.00 A-1+ P-1 12/4/2019 12/6/2019 635,000.00 2.03 1,079.50 644,029.07

CREDIT SUISSE NEW YORK CERT
DEPOS
DTD 03/23/2021 0.590% 03/17/2023
22552G3C2 715,000.00 A+ A1 3/19/2021 3/23/2021 715,000.00 0.59 3,327.93 714,841.27 2,350,000.00 2,350,000.00 10,985.21 2,368,465.34Security Type Sub-Total 1.52 Municipal

SAN FRAN COMM FAC DIST, CA TXBL

REV BNDS
DTD 11/09/2017 2.500% 09/01/2022
79772EAX7 350,000.00 NR NR 10/27/2017 11/9/2017 348,355.00 2.61 2,916.67 354,518.50

SAN FRAN COMM FAC DIST, CA TXBL

REV BNDS
DTD 11/09/2017 2.500% 09/01/2022
79772EAE9 380,000.00 NR NR 10/27/2017 11/9/2017 377,362.80 2.66 3,166.67 384,905.80

VENTURA CNTY CCD, CA TXBL GO
BONDS
DTD 10/31/2019 1.750% 08/01/2023
923040GT0 350,000.00 AA+ Aa1 10/3/2019 10/31/2019 350,000.00 1.75 2,552.08 355,054.00

LONG BEACH CCD, CA TXBL GO
BONDS
DTD 10/23/2019 1.743% 08/01/2023
542411NH2 350,000.00 AA Aa2 10/9/2019 10/23/2019 350,000.00 1.74 2,541.88 355,547.50 24 Attachment "4"
49 Item5.
© PFM Asset Management LLC pfmam.com

TAMALPAIS UHSD, CA TXBL GO
BONDS
DTD 10/09/2019 1.971% 08/01/2023
874857KJ3 615,000.00 NR Aaa 9/20/2019 10/9/2019 615,000.00 1.97 5,050.69 628,769.85

CT ST TXBL GO BONDS
DTD 06/11/2020 1.998% 07/01/2024
20772KJW0 150,000.00 A+ Aa3 5/29/2020 6/11/2020 150,000.00 2.00 1,498.50 153,870.00

WI DEPT OF TRANS TXBL REV BONDS
DTD 07/30/2020 0.624% 07/01/2024
977123X60 640,000.00 AAA NR 7/10/2020 7/30/2020 640,000.00 0.62 1,996.80 635,315.20

SAN JUAN USD, CA TXBL GO BONDS
DTD 10/29/2020 0.702% 08/01/2024
798306WN2 415,000.00 NR Aa2 10/16/2020 10/29/2020 415,000.00 0.70 1,213.88 411,572.10

MD ST TXBL GO BONDS
DTD 08/05/2020 0.510% 08/01/2024
574193TQ1 375,000.00 AAA Aaa 7/23/2020 8/5/2020 374,895.00 0.52 796.88 372,176.25

VENTURA CNTY CCD, CA TXBL GO
BONDS
DTD 10/31/2019 1.800% 08/01/2024
923040GU7 490,000.00 AA+ Aa1 10/3/2019 10/31/2019 490,000.00 1.80 3,675.00 498,359.40

PALOMAR COMM COLL DIST, CA TXBL

GO BONDS
DTD 11/03/2020 0.794% 08/01/2024
697511FB4 440,000.00 AA Aa2 10/16/2020 11/3/2020 440,000.00 0.79 1,455.67 435,815.60

SAN DIEGO CCD, CA TXBL GO BONDS
DTD 10/16/2019 2.046% 08/01/2024
797272QP9 245,000.00 AAA Aaa 9/18/2019 10/16/2019 245,000.00 2.05 2,088.63 251,585.60

MS ST TXBL GO BONDS
DTD 08/06/2020 0.565% 11/01/2024
605581MZ7 120,000.00 AA Aa2 7/24/2020 8/6/2020 120,000.00 0.57 113.00 118,628.40

NY ST URBAN DEV CORP TXBL REV
BONDS
DTD 12/23/2020 0.870% 03/15/2025
650036DT0 945,000.00 AA+ NR 12/16/2020 12/23/2020 945,000.00 0.87 2,420.78 931,959.00

SAN DEIGO CNTY WTR AUTH, CA

TXBL REV BON
DTD 07/22/2020 0.743% 05/01/2025
797412DM2 480,000.00 AAA Aa2 7/9/2020 7/22/2020 480,000.00 0.74 594.40 473,707.20

UNIV OF CAL TXBL REV BONDS
DTD 07/16/2020 0.883% 05/15/2025
91412HGE7 375,000.00 AA Aa2 7/10/2020 7/16/2020 375,000.00 0.88 423.10 371,152.50

CT ST T/E GO BONDS
DTD 06/25/2020 4.000% 06/01/2025
20772KKL2 400,000.00 A+ Aa3 6/12/2020 6/25/2020 458,868.00 0.94 1,333.33 448,436.00

FL ST BOARD OF ADMIN TXBL REV
BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 400,000.00 AA Aa3 9/3/2020 9/16/2020 400,000.00 1.26 2,516.00 398,368.00 25 Attachment "4"
50 Item5.
© PFM Asset Management LLC pfmam.com

FL ST BOARD OF ADMIN TXBL REV
BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 155,000.00 AA Aa3 9/3/2020 9/16/2020 156,095.85 1.11 974.95 154,367.60

FL ST BOARD OF ADMIN TXBL REV
BONDS
DTD 09/16/2020 1.258% 07/01/2025
341271AD6 150,000.00 AA Aa3 9/3/2020 9/16/2020 150,994.50 1.12 943.50 149,388.00

SAN RAMON VALLEY USD, CA TXBL

GO BONDS
DTD 10/20/2020 0.740% 08/01/2025
799408Z85 405,000.00 AA+ Aa1 10/2/2020 10/20/2020 405,000.00 0.74 1,248.75 397,045.80

MN ST TXBL GO BONDS
DTD 08/25/2020 0.630% 08/01/2025
60412AVJ9 275,000.00 AAA Aa1 8/11/2020 8/25/2020 275,000.00 0.63 721.88 271,053.75

LOS ANGELES CCD, CA TXBL GO
BONDS
DTD 11/10/2020 0.773% 08/01/2025
54438CYK2 410,000.00 AA+ Aaa 10/30/2020 11/10/2020 410,000.00 0.77 1,320.54 402,870.10

CT ST TXBL GO BONDS
DTD 09/13/2018 3.743% 09/15/2025
20772KEW5 630,000.00 A+ Aa3 11/17/2020 11/19/2020 716,706.90 0.83 6,943.27 688,356.90

LOS ANGELES USD, CA TXBL GO
BONDS
DTD 11/10/2021 1.455% 07/01/2026
544647FC9 310,000.00 NR Aa3 10/28/2021 11/10/2021 310,000.00 1.46 638.99 309,229.81 9,855,000.00 9,998,278.05 49,145.84 9,952,052.86Security Type Sub-Total 1.20 Federal Agency

FEDERAL HOME LOAN BANKS NOTES
DTD 02/21/2020 1.375% 02/17/2023
3130AJ7E3 390,000.00 AA+ Aaa 2/20/2020 2/21/2020 389,282.40 1.44 1,996.04 394,019.34

FEDERAL HOME LOAN BANKS NOTES
DTD 02/21/2020 1.375% 02/17/2023
3130AJ7E3 1,900,000.00 AA+ Aaa 4/14/2020 4/15/2020 1,951,357.00 0.42 9,724.31 1,919,581.40

FREDDIE MAC NOTES
DTD 04/20/2020 0.375% 04/20/2023
3137EAEQ8 660,000.00 AA+ Aaa 4/17/2020 4/20/2020 658,350.00 0.46 488.13 658,813.98

FREDDIE MAC NOTES
DTD 05/07/2020 0.375% 05/05/2023
3137EAER6 760,000.00 AA+ Aaa 5/5/2020 5/7/2020 759,680.80 0.39 443.33 758,286.96

FANNIE MAE NOTES
DTD 07/10/2020 0.250% 07/10/2023
3135G05G4 570,000.00 AA+ Aaa 7/8/2020 7/10/2020 568,774.50 0.32 676.88 566,865.57 26 Attachment "4"
51 Item5.
© PFM Asset Management LLC pfmam.com

FREDDIE MAC NOTES
DTD 08/21/2020 0.250% 08/24/2023
3137EAEV7 275,000.00 AA+ Aaa 9/1/2020 9/3/2020 274,994.50 0.25 242.53 273,232.58

FANNIE MAE NOTES
DTD 09/14/2018 2.875% 09/12/2023
3135G0U43 1,500,000.00 AA+ Aaa 4/1/2020 4/3/2020 1,625,340.00 0.43 13,057.29 1,555,170.00

FREDDIE MAC NOTES
DTD 12/04/2020 0.250% 12/04/2023
3137EAFA2 300,000.00 AA+ Aaa 12/2/2020 12/4/2020 299,703.00 0.28 56.25 297,123.00

FANNIE MAE NOTES
DTD 01/10/2020 1.625% 01/07/2025
3135G0X24 700,000.00 AA+ Aaa 1/8/2020 1/10/2020 697,767.00 1.69 5,497.92 712,576.20

FREDDIE MAC NOTES
DTD 02/14/2020 1.500% 02/12/2025
3137EAEP0 790,000.00 AA+ Aaa 3/3/2020 3/4/2020 813,020.60 0.90 4,575.42 801,384.69

FANNIE MAE NOTES
DTD 04/24/2020 0.625% 04/22/2025
3135G03U5 500,000.00 AA+ Aaa 6/2/2020 6/4/2020 502,780.00 0.51 598.96 492,835.50

FANNIE MAE NOTES
DTD 06/19/2020 0.500% 06/17/2025
3135G04Z3 1,640,000.00 AA+ Aaa 9/1/2020 9/3/2020 1,644,887.20 0.44 318.89 1,606,853.96

FANNIE MAE NOTES
DTD 08/27/2020 0.375% 08/25/2025
3135G05X7 2,000,000.00 AA+ Aaa 9/1/2020 9/3/2020 1,992,920.00 0.45 2,625.00 1,945,344.00

FREDDIE MAC NOTES
DTD 09/25/2020 0.375% 09/23/2025
3137EAEX3 1,150,000.00 AA+ Aaa 9/23/2020 9/25/2020 1,146,538.50 0.44 1,173.96 1,117,505.60

FANNIE MAE NOTES
DTD 11/12/2020 0.500% 11/07/2025
3135G06G3 1,125,000.00 AA+ Aaa 12/2/2020 12/4/2020 1,122,828.75 0.54 843.75 1,095,386.63

FANNIE MAE NOTES
DTD 11/12/2020 0.500% 11/07/2025
3135G06G3 360,000.00 AA+ Aaa 11/9/2020 11/12/2020 358,711.20 0.57 270.00 350,523.72 14,620,000.00 14,806,935.45 42,588.66 14,545,503.13Security Type Sub-Total 0.55

FDIC CD

CAPITAL ONE BANK USA NA CD
DTD 06/01/2017 2.400% 06/01/2022
1404203C2 245,000.00 NR NR 5/25/2017 6/1/2017 245,000.00 2.40 499.40 247,218.97

GOLDMAN SACHS GROUP INC CD
DTD 06/21/2017 2.350% 06/21/2022
38148PKX4 245,000.00 NR NR 6/13/2017 6/21/2017 245,000.00 2.35 173.51 247,444.37

BENEFICIAL BANK CD
DTD 10/18/2017 2.150% 10/18/2022
08173QBX3 245,000.00 NR NR 9/27/2017 10/18/2017 245,000.00 2.15 1,082.36 248,603.22 27 Attachment "4"
52 Item5.
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FDIC CD

FOCUS BANK CD
DTD 11/24/2017 2.200% 11/24/2022
34415LAP6 245,000.00 NR NR 11/14/2017 11/24/2017 245,000.00 2.20 561.15 249,141.73 980,000.00 980,000.00 2,316.42 992,408.29Security Type Sub-Total 2.27 Corporate

ADOBE INC CORP NOTE
DTD 02/03/2020 1.700% 02/01/2023
00724PAA7 95,000.00 A+ A2 1/22/2020 2/3/2020 94,869.85 1.75 672.92 96,046.62 AMAZON.COM INC BONDS
DTD 06/06/2018 2.400% 02/22/2023
023135AW6 880,000.00 AA A1 5/14/2019 5/16/2019 873,523.20 2.61 7,568.00 895,465.12

JOHN DEERE CAPITAL CORP
DTD 03/04/2016 2.800% 03/06/2023
24422ETG4 835,000.00 A A2 5/16/2019 5/20/2019 838,724.10 2.68 7,468.61 855,950.99

UNITEDHEALTH GROUP INC CORP
NOTES
DTD 02/28/2013 2.875% 03/15/2023
91324PCC4 640,000.00 A+ A3 11/20/2019 11/22/2019 656,358.40 2.07 5,417.78 655,601.92

BANK OF NY MELLON CORP NOTES
DTD 04/30/2018 3.500% 04/28/2023
06406RAG2 1,410,000.00 A A1 4/24/2019 4/26/2019 1,445,376.90 2.83 8,636.25 1,460,858.70

CHEVRON CORP CORPORATE NOTES
DTD 05/11/2020 1.141% 05/11/2023
166764BV1 200,000.00 AA- Aa2 5/7/2020 5/11/2020 200,000.00 1.14 316.94 201,227.80

PACCAR FINANCIAL CORP

CORPORATE NOTES
DTD 06/08/2020 0.800% 06/08/2023
69371RQ82 360,000.00 A+ A1 6/1/2020 6/8/2020 359,499.60 0.85 184.00 360,381.96

AMERICAN EXPRESS CREDIT CORP

NOTES (CALL
DTD 08/03/2018 3.700% 08/03/2023
025816BW8 800,000.00 BBB+ A3 4/23/2019 4/26/2019 821,480.00 3.02 12,168.89 833,552.00

TOYOTA MOTOR CREDIT CORP CORP
NOTES
DTD 10/18/2016 2.250% 10/18/2023
89236TDK8 1,090,000.00 A+ A1 2/5/2020 2/7/2020 1,107,374.60 1.80 4,973.13 1,116,919.73

CATERPILLAR FINANCIAL SERVICES

CORP NOTE
DTD 11/26/2013 3.750% 11/24/2023
14912L5X5 790,000.00 A A2 5/8/2019 5/10/2019 823,243.20 2.76 3,044.79 831,238.79

ABBOTT LABORATORIES CORP
NOTES
DTD 11/22/2016 3.400% 11/30/2023
002824BE9 825,000.00 A+ A2 5/10/2019 5/14/2019 846,441.75 2.79 2,415.42 861,363.53 28 Attachment "4"
53 Item5.
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BB&T CORPORATION NOTES
(CALLABLE)
DTD 12/06/2018 3.750% 12/06/2023
05531FBF9 800,000.00 A- A3 4/23/2019 4/25/2019 824,928.00 3.02 2,083.33 840,855.20

BANK OF AMERICA CORP NOTE
DTD 01/21/2014 4.125% 01/22/2024
06051GFB0 1,395,000.00 A- A2 4/23/2019 4/25/2019 1,456,477.65 3.12 25,415.16 1,481,851.31

CHARLES SCHWAB CORP NOTES
DTD 10/31/2018 3.550% 02/01/2024
808513AY1 815,000.00 A A2 4/25/2019 4/29/2019 843,321.25 2.76 12,055.21 856,893.45

BLACKROCK INC CORP NOTES
DTD 03/18/2014 3.500% 03/18/2024
09247XAL5 1,420,000.00 AA- Aa3 4/22/2019 4/24/2019 1,464,588.00 2.81 14,219.72 1,498,060.24

COMCAST CORP (CALLABLE)

CORPORATE NOTES
DTD 10/05/2018 3.700% 04/15/2024
20030NCR0 635,000.00 A- A3 5/7/2020 5/11/2020 695,623.45 1.20 4,960.06 674,882.45

MORGAN STANLEY CORP NOTES
DTD 04/28/2014 3.875% 04/29/2024
61746BDQ6 745,000.00 BBB+ A1 7/19/2019 7/23/2019 788,604.85 2.56 4,971.84 789,278.33 AMAZON.COM INC CORPORATE
NOTES
DTD 05/12/2021 0.450% 05/12/2024
023135BW5 300,000.00 AA A1 5/10/2021 5/12/2021 299,562.00 0.50 183.75 296,876.70

US BANCORP NOTES (CALLABLE)
DTD 07/29/2019 2.400% 07/30/2024
91159HHX1 845,000.00 A+ A2 7/30/2019 8/1/2019 844,247.95 2.42 8,506.33 872,367.86

BMW US CAPITAL LLC CORPORATE
NOTES
DTD 08/12/2021 0.750% 08/12/2024
05565EBU8 215,000.00 A A2 8/9/2021 8/12/2021 214,980.65 0.75 622.60 212,453.33

UNILEVER CAPITAL CORP
(CALLABLE) CORPORA
DTD 08/12/2021 0.626% 08/12/2024
904764BN6 160,000.00 A+ A1 8/9/2021 8/12/2021 160,000.00 0.63 386.73 158,962.88

WALT DISNEY COMPANY/THE
DTD 09/06/2019 1.750% 08/30/2024
254687FK7 845,000.00 BBB+ A2 9/3/2019 9/6/2019 841,552.40 1.84 4,970.24 858,828.43

PNC BANK NA CORP NOTES
(CALLABLE)
DTD 11/01/2019 2.200% 11/01/2024
693475AY1 600,000.00 A- A3 11/5/2019 11/8/2019 599,802.00 2.21 2,200.00 615,298.20

LOCKHEED MARTIN CORP NOTES
(CALLABLE)
DTD 02/20/2015 2.900% 03/01/2025
539830BE8 235,000.00 A- A3 2/23/2021 2/25/2021 253,767.10 0.87 2,271.67 245,861.94

BMW US CAPITAL LLC CORP NOTES
(CALLABLE)
DTD 04/09/2020 3.900% 04/09/2025
05565EBK0 575,000.00 A A2 8/12/2021 8/16/2021 632,005.50 1.12 5,107.92 617,958.25 29 Attachment "4"
54 Item5.
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CITIGROUP INC CORPORATE NOTES
DTD 05/04/2021 0.981% 05/01/2025
172967MX6 255,000.00 BBB+ A3 4/27/2021 5/4/2021 255,000.00 0.98 416.93 252,695.82

CITIGROUP INC CORPORATE NOTES
DTD 05/04/2021 0.981% 05/01/2025
172967MX6 270,000.00 BBB+ A3 4/28/2021 5/4/2021 270,715.50 0.91 441.45 267,560.28

CHEVRON CORP (CALLABLE) NOTES
DTD 05/11/2020 1.554% 05/11/2025
166764BW9 425,000.00 AA- Aa2 5/13/2020 5/15/2020 427,108.00 1.45 917.29 428,071.90

GENERAL DYNAMICS CORP
(CALLABLE) CORP NO
DTD 05/11/2018 3.500% 05/15/2025
369550BG2 700,000.00 A- A3 3/4/2021 3/8/2021 772,884.00 0.96 3,130.56 748,239.80

JPMORGAN CHASE & CO

CORPORATE NOTES
DTD 06/01/2021 0.824% 06/01/2025
46647PCH7 585,000.00 A- A2 5/24/2021 6/1/2021 585,000.00 0.82 401.70 578,015.69

BRISTOL-MYERS SQUIBB CO

CORPORATE NOTES
DTD 11/13/2020 0.750% 11/13/2025
110122DN5 353,000.00 A+ A2 6/17/2021 6/21/2021 349,484.12 0.98 353.00 343,658.91

BRISTOL-MYERS SQUIBB CO

CORPORATE NOTES
DTD 11/13/2020 0.750% 11/13/2025
110122DN5 250,000.00 A+ A2 6/23/2021 6/25/2021 247,857.50 0.95 250.00 243,384.50

GOLDMAN SACHS GROUP INC

CORPORATE NOTES
DTD 02/12/2021 0.855% 02/12/2026
38141GXS8 650,000.00 BBB+ A2 2/12/2021 2/17/2021 651,326.00 0.81 2,145.81 635,471.85

JPMORGAN CHASE & CO CORP NOTE
DTD 03/13/2020 2.005% 03/13/2026
46647PBH8 750,000.00 A- A2 10/1/2021 10/6/2021 770,182.50 1.38 4,511.25 759,285.75

ASTRAZENECA FINANCE LLC
(CALLABLE) CORP
DTD 05/28/2021 1.200% 05/28/2026
04636NAA1 700,000.00 A- A3 7/15/2021 7/19/2021 700,742.00 1.18 770.00 691,080.60

AMERICAN HONDA FINANCE

CORPORATE NOTES
DTD 09/09/2021 1.300% 09/09/2026
02665WDZ1 1,000,000.00 A- A3 11/29/2021 12/1/2021 985,630.00 1.61 4,044.44 985,974.00 23,448,000.00 24,002,282.02 158,203.72 24,122,474.83Security Type Sub-Total 2.07 Agency CMBS

FHLMC MULTIFAMILY STRUCTURED P
DTD 05/01/2015 2.791% 01/01/2022
3137BHXY8 18,256.99 AA+ Aaa 5/16/2019 5/21/2019 18,371.10 2.54 42.46 18,256.99 30 Attachment "4"
55 Item5.
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FANNIEMAE-ACES
DTD 04/01/2014 3.346% 03/01/2024
3136AJB54 445,885.79 AA+ Aaa 12/13/2019 12/18/2019 467,553.05 2.14 1,243.28 464,572.78 FHMS KJ27 A1
DTD 11/01/2019 2.092% 07/01/2024
3137FQ3V3 79,350.98 AA+ Aaa 11/20/2019 11/26/2019 79,349.08 2.09 138.34 80,302.06 FHMS K043 A2
DTD 03/01/2015 3.062% 12/01/2024
3137BGK24 665,000.00 AA+ Aaa 3/19/2020 3/25/2020 697,938.28 1.95 1,696.86 698,430.25 1,777,642.91 1,861,592.31 4,462.99 1,842,111.86Security Type Sub-Total 1.70 ABS
NALT 2020-B A3
DTD 09/29/2020 0.430% 10/16/2023
65480EAD3 220,000.00 AAA Aaa 9/22/2020 9/29/2020 219,977.36 0.43 42.04 220,012.94 MBALT 2020-B A3
DTD 09/23/2020 0.400% 11/15/2023
58769EAC2 90,000.00 AAA NR 9/15/2020 9/23/2020 89,995.44 0.40 16.00 89,822.43 TLOT 2021-A A3
DTD 04/21/2021 0.390% 04/22/2024
89238EAC0 235,000.00 AAA Aaa 4/13/2021 4/21/2021 234,972.58 0.39 28.00 233,881.44 BMWLT 2021-1 A4
DTD 03/10/2021 0.370% 07/25/2024
05591RAD6 160,000.00 AAA Aaa 3/2/2021 3/10/2021 159,993.65 0.37 9.87 159,039.81 TAOT 2020-C A3
DTD 07/27/2020 0.440% 10/15/2024
89237VAB5 290,000.00 AAA Aaa 7/21/2020 7/27/2020 289,977.67 0.44 56.71 289,614.85 HALST 2021-A A4
DTD 01/20/2021 0.420% 12/16/2024
44891TAD8 140,000.00 AAA Aaa 1/12/2021 1/20/2021 139,988.35 0.42 26.13 139,265.97 CARMX 2020-3 A3
DTD 07/22/2020 0.620% 03/17/2025
14315FAD9 205,000.00 AAA NR 7/14/2020 7/22/2020 204,964.86 0.62 56.49 204,955.88 GMCAR 2020-3 A3
DTD 08/19/2020 0.450% 04/16/2025
362590AC5 300,000.00 NR Aaa 8/11/2020 8/19/2020 299,931.36 0.46 56.25 299,296.23 GMALT 2021-3 A4
DTD 08/18/2021 0.500% 07/21/2025
36262XAD6 225,000.00 AAA NR 8/10/2021 8/18/2021 224,991.88 0.50 34.38 222,047.26 KCOT 2021-1A A3
DTD 04/14/2021 0.620% 08/15/2025
50117TAC5 155,000.00 NR Aaa 4/6/2021 4/14/2021 154,968.29 0.62 42.71 153,543.48 31 Attachment "4"
56 Item5.
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CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Holdings
|
Security Type/Description
Dated Date/Coupon/Maturity CUSIP Par
S&P
Rating
Moody's
Rating
Settle
Date
Original
Cost
Trade
Date
YTM
at Cost
Accrued
Interest
Market
Value
ABS
HART 2021-A A3
DTD 04/28/2021 0.380% 09/15/2025
44933LAC7 220,000.00 AAA NR 4/20/2021 4/28/2021 219,976.86 0.38 37.16 217,842.77 KCOT 2021-2A A3
DTD 07/28/2021 0.560% 11/17/2025
50117XAE2 370,000.00 NR Aaa 7/20/2021 7/28/2021 369,986.05 0.56 92.09 364,524.41 HAROT 2021-3 A3
DTD 08/25/2021 0.410% 11/18/2025
43815EAC8 305,000.00 AAA NR 8/17/2021 8/25/2021 304,995.55 0.41 45.16 301,559.97 CARMX 2021-1 A3
DTD 01/27/2021 0.340% 12/15/2025
14316NAC3 120,000.00 AAA NR 1/20/2021 1/27/2021 119,976.29 0.34 18.13 118,975.82 HAROT 2021-4 A3
DTD 11/24/2021 0.880% 01/21/2026
43815GAC3 285,000.00 NR Aaa 11/16/2021 11/24/2021 284,939.92 0.89 69.67 284,394.18 CARMX 2021-2 A3
DTD 04/21/2021 0.520% 02/17/2026
14314QAC8 300,000.00 AAA NR 4/13/2021 4/21/2021 299,935.35 0.52 69.33 297,448.32 CARMX 2021-3 A3
DTD 07/28/2021 0.550% 06/15/2026
14317DAC4 610,000.00 AAA Aaa 7/21/2021 7/28/2021 609,899.66 0.55 149.11 605,297.02 WOART 2021-D A3
DTD 11/03/2021 0.810% 10/15/2026
98163KAC6 350,000.00 AAA NR 10/26/2021 11/3/2021 349,952.33 0.81 126.00 348,017.60 COMET 2021-A3 A3
DTD 11/30/2021 1.040% 11/16/2026
14041NFY2 715,000.00 AAA NR 11/18/2021 11/30/2021 714,901.47 1.04 640.32 712,020.31 5,295,000.00 5,294,324.92 1,615.55 5,261,560.69Security Type Sub-Total 0.60 133,030,642.91 134,236,235.50 419,961.59 133,566,263.41Managed Account Sub Total Securities Sub Total
Accrued Interest
$133,030,642.91 $134,236,235.50 $419,961.59 $133,566,263.41 $419,961.59
Total Investments $133,986,225.00
32 Attachment "4"
57 Item5.
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Portfolio Transactions
Attachment "4"
58 Item5.
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CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Portfolio Activity
|
Quarterly Portfolio Transactions
Trade
Dat
e
Settle
Date Par ($) CUSIP
Maturity
Date
Transact
Amount ($)Coupon
Yield
at Market
Realized
G/L (BV)Security Description
BUY
10/1/2021 10/6/2021 800,000.00 91282CBH3 US TREASURY NOTES 0.37% 1/31/2026 785,046.20 0.83% 10/1/2021 10/6/2021 800,000.00 91282CDA6 US TREASURY NOTES 0.25% 9/30/2023 799,751.72 0.27% 10/1/2021 10/6/2021 750,000.00 46647PBH8 JPMORGAN CHASE & CO CORP NOTE 2.00% 3/13/2026 771,143.23 1.38% 10/26/2021 11/3/2021 350,000.00 98163KAC6 WOART 2021-D A3 0.81% 10/15/2026 349,952.33 0.81% 10/28/2021 11/10/2021 310,000.00 544647FC9 LOS ANGELES USD, CA TXBL GO BONDS 1.45% 7/1/2026 310,000.00 1.46% 11/1/2021 11/3/2021 500,000.00 91282CDG3 US TREASURY N/B NOTES 1.12% 10/31/2026 497,722.40 1.22% 11/1/2021 11/3/2021 2,350,000.00 91282CDD0 US TREASURY N/B NOTES 0.37% 10/31/2023 2,343,463.66 0.52% 11/1/2021 11/3/2021 1,600,000.00 91282CBH3 US TREASURY NOTES 0.37% 1/31/2026 1,552,048.91 1.12% 11/10/2021 11/12/2021 5,000,000.00 91282CBV2 US TREASURY N/B NOTES 0.37% 4/15/2024 4,966,286.06 0.67% 11/10/2021 11/12/2021 4,800,000.00 912828R28 US TREASURY NOTES 1.62% 4/30/2023 4,892,773.14 0.34% 11/10/2021 11/12/2021 3,000,000.00 91282CBQ3 US TREASURY NOTES 0.50% 2/28/2026 2,926,735.80 1.11% 11/10/2021 11/12/2021 5,000,000.00 9128285D8 US TREASURY NOTES 2.87% 9/30/2023 5,241,590.84 0.47% 11/10/2021 11/12/2021 2,000,000.00 912828ZT0 US TREASURY NOTES 0.25% 5/31/2025 1,952,332.23 0.97% 11/10/2021 11/15/2021 5,000,000.00 91282CDH1 US TREASURY N/B NOTES 0.75% 11/15/2024 4,991,406.25 0.81% 11/10/2021 11/12/2021 5,000,000.00 91282CDG3 US TREASURY N/B NOTES 1.12% 10/31/2026 4,986,239.64 1.19% 11/16/2021 11/24/2021 285,000.00 43815GAC3 HAROT 2021-4 A3 0.88% 1/21/2026 284,939.92 0.89% 11/18/2021 11/30/2021 715,000.00 14041NFY2 COMET 2021-A3 A3 1.04% 11/16/2026 714,901.47 1.04% 33 Attachment "4"
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INTEREST
10/1/2021 10/25/2021 486,946.48 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 2,025.14 10/1/2021 10/25/2021 627,405.01 3137BHXY8 FHLMC MULTIFAMILY STRUCTURED P 2.79% 1/1/2022 1,459.24 10/1/2021 10/25/2021 665,000.00 3137BGK24 FHMS K043 A2 3.06% 12/1/2024 1,696.86 10/1/2021 10/25/2021 400,000.00 3137BTU25 FHMS K724 A2 3.06% 11/1/2023 1,020.67 10/1/2021 10/1/2021 MONEY0002 MONEY MARKET FUND 3.40
10/1/2021 10/25/2021 176,556.31 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 2,813.90 10/1/2021 10/25/2021 244,556.99 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 645.23 10/5/2021 10/5/2021 1,310,000.00 3135G0T78 FANNIE MAE AGENCY NOTES 2.00% 10/5/2022 13,100.00 10/9/2021 10/9/2021 575,000.00 05565EBK0 BMW US CAPITAL LLC CORP NOTES (CALLABLE) 3.90% 4/9/2025 11,212.50 10/15/2021 10/15/2021 290,000.00 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 106.33 10/15/2021 10/15/2021 120,000.00 14316NAC3 CARMX 2021-1 A3 0.34% 12/15/2025 34.00 10/15/2021 10/15/2021 140,000.00 44891TAD8 HALST 2021-A A4 0.42% 12/16/2024 49.00 10/15/2021 10/15/2021 610,000.00 14317DAC4 CARMX 2021-3 A3 0.55% 6/15/2026 279.58 10/15/2021 10/15/2021 205,000.00 14315FAD9 CARMX 2020-3 A3 0.62% 3/17/2025 105.92 34 Attachment "4"
60 Item5.
© PFM Asset Management LLC pfmam.com

INTEREST
10/15/2021 10/15/2021 220,000.00 65480EAD3 NALT 2020-B A3 0.43% 10/16/2023 78.83 10/15/2021 10/15/2021 155,000.00 50117TAC5 KCOT 2021-1A A3 0.62% 8/15/2025 80.08 10/15/2021 10/15/2021 220,000.00 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 69.67 10/15/2021 10/15/2021 90,000.00 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 30.00 10/15/2021 10/15/2021 300,000.00 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 130.00 10/15/2021 10/15/2021 370,000.00 50117XAE2 KCOT 2021-2A A3 0.56% 11/17/2025 172.67 10/15/2021 10/15/2021 635,000.00 20030NCR0 COMCAST CORP (CALLABLE) CORPORATE NOTES 3.70% 4/15/2024 11,747.50 10/16/2021 10/16/2021 300,000.00 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 112.50 10/18/2021 10/18/2021 1,090,000.00 89236TDK8 TOYOTA MOTOR CREDIT CORP CORP NOTES 2.25% 10/18/2023 12,262.50 10/18/2021 10/18/2021 305,000.00 43815EAC8 HAROT 2021-3 A3 0.41% 11/18/2025 104.21 10/18/2021 10/18/2021 245,000.00 08173QBX3 BENEFICIAL BANK CD 2.15% 10/18/2022 2,640.97 10/20/2021 10/20/2021 235,000.00 89238EAC0 TLOT 2021-A A3 0.39% 4/22/2024 76.38 10/20/2021 10/20/2021 2,750,000.00 459058JV6 INTL BK OF RECON AND DEV NOTE 0.12% 4/20/2023 1,718.75 10/20/2021 10/20/2021 225,000.00 36262XAD6 GMALT 2021-3 A4 0.50% 7/21/2025 93.75 10/20/2021 10/20/2021 660,000.00 3137EAEQ8 FREDDIE MAC NOTES 0.37% 4/20/2023 1,237.50 10/22/2021 10/22/2021 500,000.00 3135G03U5 FANNIE MAE NOTES 0.62% 4/22/2025 1,562.50 10/25/2021 10/25/2021 160,000.00 05591RAD6 BMWLT 2021-1 A4 0.37% 7/25/2024 49.33 35 Attachment "4"
61 Item5.
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INTEREST
10/28/2021 10/28/2021 1,410,000.00 06406RAG2 BANK OF NY MELLON CORP NOTES 3.50% 4/28/2023 24,675.00 10/29/2021 10/29/2021 745,000.00 61746BDQ6 MORGAN STANLEY CORP NOTES 3.87% 4/29/2024 14,434.38 10/31/2021 10/31/2021 1,335,000.00 912828YM6 US TREASURY NOTES 1.50% 10/31/2024 10,012.50 10/31/2021 10/31/2021 250,000.00 9128283C2 US TREASURY NOTES 2.00% 10/31/2022 2,500.00 10/31/2021 10/31/2021 100,000.00 9128284L1 US TREASURY NOTES 2.75% 4/30/2023 1,375.00 11/1/2021 11/1/2021 525,000.00 172967MX6 CITIGROUP INC CORPORATE NOTES 0.98% 5/1/2025 2,532.21 11/1/2021 11/1/2021 480,000.00 797412DM2 SAN DEIGO CNTY WTR AUTH, CA TXBL REV BON 0.74% 5/1/2025 1,783.20 11/1/2021 11/1/2021 600,000.00 693475AY1 PNC BANK NA CORP NOTES (CALLABLE) 2.20% 11/1/2024 6,600.00 11/1/2021 11/25/2021 400,000.00 3137BTU25 FHMS K724 A2 3.06% 11/1/2023 1,020.67 11/1/2021 11/25/2021 374,644.41 3137BHXY8 FHLMC MULTIFAMILY STRUCTURED P 2.79% 1/1/2022 871.36 11/1/2021 11/1/2021 120,000.00 605581MZ7 MS ST TXBL GO BONDS 0.56% 11/1/2024 339.00 11/1/2021 11/25/2021 201,116.41 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 467.11 11/1/2021 11/25/2021 665,000.00 3137BGK24 FHMS K043 A2 3.06% 12/1/2024 1,696.86 11/1/2021 11/25/2021 449,362.05 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 1,252.97 11/1/2021 11/25/2021 79,886.74 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 139.27 11/2/2021 11/2/2021 MONEY0002 MONEY MARKET FUND 3.03
11/5/2021 11/5/2021 760,000.00 3137EAER6 FREDDIE MAC NOTES 0.37% 5/5/2023 1,425.00 36 Attachment "4"
62 Item5.
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INTEREST
11/7/2021 11/7/2021 1,485,000.00 3135G06G3 FANNIE MAE NOTES 0.50% 11/7/2025 3,712.50 11/11/2021 11/11/2021 425,000.00 166764BW9 CHEVRON CORP (CALLABLE) NOTES 1.55% 5/11/2025 3,302.25 11/11/2021 11/11/2021 200,000.00 166764BV1 CHEVRON CORP CORPORATE NOTES 1.14% 5/11/2023 1,141.00 11/12/2021 11/12/2021 300,000.00 023135BW5 AMAZON.COM INC CORPORATE NOTES 0.45% 5/12/2024 675.00 11/13/2021 11/13/2021 603,000.00 110122DN5 BRISTOL-MYERS SQUIBB CO CORPORATE NOTES 0.75% 11/13/2025 2,261.25 11/15/2021 11/15/2021 155,000.00 50117TAC5 KCOT 2021-1A A3 0.62% 8/15/2025 80.08 11/15/2021 11/15/2021 290,000.00 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 106.33 11/15/2021 11/15/2021 90,000.00 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 30.00 11/15/2021 11/15/2021 120,000.00 14316NAC3 CARMX 2021-1 A3 0.34% 12/15/2025 34.00 11/15/2021 11/15/2021 370,000.00 50117XAE2 KCOT 2021-2A A3 0.56% 11/17/2025 172.67 11/15/2021 11/15/2021 2,285,000.00 912828ZP8 US TREASURY NOTES 0.12% 5/15/2023 1,428.13 11/15/2021 11/15/2021 220,000.00 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 69.67 11/15/2021 11/15/2021 205,000.00 14315FAD9 CARMX 2020-3 A3 0.62% 3/17/2025 105.92 11/15/2021 11/15/2021 610,000.00 14317DAC4 CARMX 2021-3 A3 0.55% 6/15/2026 279.58 11/15/2021 11/15/2021 220,000.00 65480EAD3 NALT 2020-B A3 0.43% 10/16/2023 78.83 11/15/2021 11/15/2021 700,000.00 369550BG2 GENERAL DYNAMICS CORP (CALLABLE) CORP NO 3.50% 5/15/2025 12,250.00 11/15/2021 11/15/2021 140,000.00 44891TAD8 HALST 2021-A A4 0.42% 12/16/2024 49.00 37 Attachment "4"
63 Item5.
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INTEREST
11/15/2021 11/15/2021 375,000.00 91412HGE7 UNIV OF CAL TXBL REV BONDS 0.88% 5/15/2025 1,655.63 11/15/2021 11/15/2021 300,000.00 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 130.00 11/16/2021 11/16/2021 300,000.00 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 112.50 11/17/2021 11/17/2021 459058JV6 INTL BK OF RECON AND DEV NOTE 0.12% 4/20/2023 13.75 11/18/2021 11/18/2021 305,000.00 43815EAC8 HAROT 2021-3 A3 0.41% 11/18/2025 104.21 11/20/2021 11/20/2021 225,000.00 36262XAD6 GMALT 2021-3 A4 0.50% 7/21/2025 93.75 11/20/2021 11/20/2021 235,000.00 89238EAC0 TLOT 2021-A A3 0.39% 4/22/2024 76.38 11/24/2021 11/24/2021 790,000.00 14912L5X5 CATERPILLAR FINANCIAL SERVICES CORP NOTE 3.75% 11/24/2023 14,812.50 11/24/2021 11/24/2021 245,000.00 34415LAP6 FOCUS BANK CD 2.20% 11/24/2022 2,717.15 11/24/2021 11/24/2021 400,000.00 4581X0DM7 INTER-AMERICAN DEVEL BK NOTES 0.50% 5/24/2023 1,000.00 11/24/2021 11/24/2021 665,000.00 459058JM6 INTL BK RECON & DEVELOP NOTES 0.25% 11/24/2023 831.25 11/25/2021 11/25/2021 160,000.00 05591RAD6 BMWLT 2021-1 A4 0.37% 7/25/2024 49.33 11/28/2021 11/28/2021 700,000.00 04636NAA1 ASTRAZENECA FINANCE LLC (CALLABLE) CORP 1.20% 5/28/2026 4,200.00 11/30/2021 11/30/2021 4,250,000.00 91282CAX9 US TREASURY NOTES 0.12% 11/30/2022 2,656.25 11/30/2021 11/30/2021 1,680,000.00 91282CCF6 US TREASURY N/B NOTES 0.75% 5/31/2026 6,300.00 11/30/2021 11/30/2021 825,000.00 002824BE9 ABBOTT LABORATORIES CORP NOTES 3.40% 11/30/2023 14,025.00 11/30/2021 11/30/2021 2,000,000.00 912828ZT0 US TREASURY NOTES 0.25% 5/31/2025 2,500.00 38 Attachment "4"
64 Item5.
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INTEREST
11/30/2021 11/30/2021 1,480,000.00 9128283J7 US TREASURY NOTES 2.12% 11/30/2024 15,725.00 12/1/2021 12/1/2021 400,000.00 20772KKL2 CT ST T/E GO BONDS 4.00% 6/1/2025 8,000.00 12/1/2021 12/1/2021 245,000.00 1404203C2 CAPITAL ONE BANK USA NA CD 2.40% 6/1/2022 2,948.05 12/1/2021 12/25/2021 219,477.97 3137BHXY8 FHLMC MULTIFAMILY STRUCTURED P 2.79% 1/1/2022 510.47 12/1/2021 12/25/2021 181,416.42 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 382.12 12/1/2021 12/25/2021 665,000.00 3137BGK24 FHMS K043 A2 3.06% 12/1/2024 1,696.86 12/1/2021 12/25/2021 400,000.00 3137BTU25 FHMS K724 A2 3.06% 11/1/2023 1,020.67 12/1/2021 12/25/2021 448,489.65 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 1,278.55 12/1/2021 12/1/2021 MONEY0002 MONEY MARKET FUND 60.03
12/1/2021 12/25/2021 79,634.91 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 138.83 12/1/2021 12/1/2021 585,000.00 46647PCH7 JPMORGAN CHASE & CO CORPORATE NOTES 0.82% 6/1/2025 2,410.20 12/2/2021 12/2/2021 635,000.00 23341VZT1 DNB BANK ASA/NY LT CD 2.04% 12/2/2022 6,584.95 12/4/2021 12/4/2021 300,000.00 3137EAFA2 FREDDIE MAC NOTES 0.25% 12/4/2023 375.00 12/6/2021 12/6/2021 800,000.00 05531FBF9 BB&T CORPORATION NOTES (CALLABLE) 3.75% 12/6/2023 15,000.00 12/8/2021 12/8/2021 360,000.00 69371RQ82 PACCAR FINANCIAL CORP CORPORATE NOTES 0.80% 6/8/2023 1,440.00 12/15/2021 12/15/2021 205,000.00 14315FAD9 CARMX 2020-3 A3 0.62% 3/17/2025 105.92 12/15/2021 12/15/2021 220,000.00 44933LAC7 HART 2021-A A3 0.38% 9/15/2025 69.67 39 Attachment "4"
65 Item5.
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INTEREST
12/15/2021 12/15/2021 220,000.00 65480EAD3 NALT 2020-B A3 0.43% 10/16/2023 78.83 12/15/2021 12/15/2021 120,000.00 14316NAC3 CARMX 2021-1 A3 0.34% 12/15/2025 34.00 12/15/2021 12/15/2021 290,000.00 89237VAB5 TAOT 2020-C A3 0.44% 10/15/2024 106.33 12/15/2021 12/15/2021 350,000.00 98163KAC6 WOART 2021-D A3 0.81% 10/15/2026 330.75 12/15/2021 12/15/2021 140,000.00 44891TAD8 HALST 2021-A A4 0.42% 12/16/2024 49.00 12/15/2021 12/15/2021 155,000.00 50117TAC5 KCOT 2021-1A A3 0.62% 8/15/2025 80.08 12/15/2021 12/15/2021 90,000.00 58769EAC2 MBALT 2020-B A3 0.40% 11/15/2023 30.00 12/15/2021 12/15/2021 610,000.00 14317DAC4 CARMX 2021-3 A3 0.55% 6/15/2026 279.58 12/15/2021 12/15/2021 370,000.00 50117XAE2 KCOT 2021-2A A3 0.56% 11/17/2025 172.67 12/15/2021 12/15/2021 300,000.00 14314QAC8 CARMX 2021-2 A3 0.52% 2/17/2026 130.00 12/16/2021 12/16/2021 300,000.00 362590AC5 GMCAR 2020-3 A3 0.45% 4/16/2025 112.50 12/17/2021 12/17/2021 1,640,000.00 3135G04Z3 FANNIE MAE NOTES 0.50% 6/17/2025 4,100.00 12/18/2021 12/18/2021 305,000.00 43815EAC8 HAROT 2021-3 A3 0.41% 11/18/2025 104.21 12/20/2021 12/20/2021 225,000.00 36262XAD6 GMALT 2021-3 A4 0.50% 7/21/2025 93.75 12/20/2021 12/20/2021 235,000.00 89238EAC0 TLOT 2021-A A3 0.39% 4/22/2024 76.38 12/21/2021 12/21/2021 285,000.00 43815GAC3 HAROT 2021-4 A3 0.88% 1/21/2026 188.10 12/21/2021 12/21/2021 245,000.00 38148PKX4 GOLDMAN SACHS GROUP INC CD 2.35% 6/21/2022 2,886.64 40 Attachment "4"
66 Item5.
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INTEREST
12/25/2021 12/25/2021 160,000.00 05591RAD6 BMWLT 2021-1 A4 0.37% 7/25/2024 49.33 12/31/2021 12/31/2021 430,000.00 912828N30 US TREASURY NOTES 2.12% 12/31/2022 4,568.75 12/31/2021 12/31/2021 775,000.00 912828S35 US TREASURY NOTES 1.37% 6/30/2023 5,328.13 12/31/2021 12/31/2021 2,050,000.00 91282CCJ8 US TREASURY N/B NOTES 0.87% 6/30/2026 8,968.75 12/31/2021 12/31/2021 1,200,000.00 91282CBC4 US TREASURY NOTES 0.37% 12/31/2025 2,250.00 12/31/2021 12/31/2021 1,225,000.00 912828XX3 US TREASURY NOTES 2.00% 6/30/2024 12,250.00 Total INTEREST 63,622,493.35 314,914.48 0.00

PAYDOWNS
10/1/2021 10/25/2021 37,584.43 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 37,584.43 10/1/2021 10/25/2021 43,440.58 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 43,440.58 10/1/2021 10/25/2021 96,669.57 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 96,669.57 10/1/2021 10/25/2021 252,760.60 3137BHXY8 FHLMC MULTIFAMILY STRUCTURED P 2.79% 1/1/2022 252,760.60 11/1/2021 11/25/2021 872.40 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 872.40 11/1/2021 11/25/2021 155,166.44 3137BHXY8 FHLMC MULTIFAMILY STRUCTURED P 2.79% 1/1/2022 155,166.44 11/1/2021 11/25/2021 251.83 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 251.83 11/1/2021 11/25/2021 19,699.99 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 19,699.99 12/1/2021 12/25/2021 283.93 3137FQ3V3 FHMS KJ27 A1 2.09% 7/1/2024 283.93 41 Attachment "4"
67 Item5.
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PAYDOWNS
12/1/2021 12/25/2021 201,220.98 3137BHXY8 FHLMC MULTIFAMILY STRUCTURED P 2.79% 1/1/2022 201,220.98 12/1/2021 12/25/2021 2,603.86 3136AJB54 FANNIEMAE-ACES 3.34% 3/1/2024 2,603.86 12/1/2021 12/25/2021 12,267.27 3136AEGQ4 FNA 2013-M7 A2 2.28% 12/1/2022 12,267.27 Total PAYDOWNS 822,821.88 822,821.88 0.00
SELL
10/1/2021 10/6/2021 90,000.00 459058GU1 INTL BK RECON & DEVELOP SN NOTE 2.12% 7/1/2022 91,807.89 1,381.61 10/1/2021 10/6/2021 300,000.00 037833DC1 APPLE INC CORP (CALLABLE) NOTES 2.10% 9/12/2022 305,256.00 5,826.47 10/1/2021 10/6/2021 600,000.00 46625HJE1 JPMORGAN CHASE & CO CORP NOTES 3.25% 9/23/2022 618,164.17 14,499.35 10/1/2021 10/6/2021 400,000.00 912828XR6 US TREASURY NOTES 1.75% 5/31/2022 406,854.34 440.32 10/4/2021 10/6/2021 635,000.00 86565CKU2 SUMITOMO MITSUI BANK NY CERT DEPOS 0.70% 7/8/2022 638,484.25 2,373.00 11/1/2021 11/3/2021 1,000,000.00 83050PDR7 SKANDINAV ENSKILDA BANK LT CD 1.86% 8/26/2022 1,016,447.16 12,882.16 11/1/2021 11/3/2021 315,000.00 3137EAEP0 FREDDIE MAC NOTES 1.50% 2/12/2025 322,221.38 6,317.34 11/1/2021 11/3/2021 245,000.00 91282CAC5 US TREASURY NOTES 0.12% 7/31/2022 245,126.91 102.99 11/1/2021 11/3/2021 510,000.00 3137EAEU9 FREDDIE MAC NOTES 0.37% 7/21/2025 499,066.88 -9,586.86 11/1/2021 11/3/2021 1,310,000.00 3135G0T78 FANNIE MAE AGENCY NOTES 2.00% 10/5/2022 1,334,347.08 22,311.72 11/1/2021 11/3/2021 335,000.00 4581X0CZ9 INTER-AMERICAN DEVEL BANK 1.75% 9/14/2022 340,230.00 5,438.47 11/1/2021 11/3/2021 385,000.00 3137EAEP0 FREDDIE MAC NOTES 1.50% 2/12/2025 393,826.13 90.97 42 Attachment "4"
68 Item5.
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CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Appendix
|
Important Disclosures
This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation, as it was prepared without regard to any specific objectives or financial circumstances.

Investment advisory services are provided by PFM Asset Management LLC ("PFMAM"), an investment adviser registered with the U.S. Securities and Exchange Commission and a subsidiary of U.S. Bancorp Asset Management, Inc. ("USBAM"). USBAM is a subsidiary of U.S. Bank National Association ("U.S. Bank"). U.S. Bank is a separate entity and subsidiary of U.S. Bancorp. U.S. Bank is not responsible for and does not guarantee the products, services or performance of PFMAM. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request.

PFMAM professionals have exercised reasonable professional care in the preparation of this performance report. Information in this report is obtained from sources external to PFMAM and is generally believed to be reliable and available to the public; however, we cannot guarantee its accuracy, completeness or suitability. We rely on the client's custodian for security holdings and market values. Transaction dates reported by the custodian may differ from money manager statements. While efforts are made to ensure the data contained herein is accurate and complete, we disclaim all responsibility for any errors that may occur. References to particular issuers are for illustrative purposes only and are not intended to be recommendations or advice regarding such issuers. Fixed income manager and index characteristics are gathered from external sources. When average credit quality is not available, it is estimated by taking the market value weights of individual credit tiers on the portion of the strategy rated by a NRSRO.

It is not possible to invest directly in an index. The index returns shown throughout this material do not represent the results of actual trading of investor assets.

Third-party providers maintain the indices shown and calculate the index levels and performance shown or discussed. Index returns do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause investment performance to be lower than the performance shown.

The views expressed within this material constitute the perspective and judgment of PFMAM at the time of distribution and are subject to change. Any forecast, projection, or prediction of the market, the economy, economic trends, and equity or fixed-income markets are based upon certain assumptions and current opinion as of the date of issue and are also subject to change. Some, but not all assumptions are noted in the report. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Opinions and data presented are not necessarily indicative of future events or expected performance.

For more information regarding PFMAM's services or entities, please visit www.pfmam.com. © 2022 PFM Asset Management LLC. Further distribution is not permitted without prior written consent. 44 Attachment "4"
70 Item5.
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CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Appendix
|
Important Disclosures
Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Refinitiv, Bloomberg, or Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated market value.

In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and forward settling sales are excluded.

Performance is presented in accordance with the CFA Institute's Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of future returns.

Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.

Money market fund/cash balances are included in performance and duration computations.

Standard & Poor's is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.

Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.

MBS maturities are represented by expected average life. 45 Attachment "4"
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CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Appendix
|
Glossary
Accrued Interest: Interest that is due on a bond or other fixed income security since the last interest payment was made.

Agencies: Federal agency securities and/or Government-sponsored enterprises.

Amortized Cost: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.

Asset-Backed Security: A financial instrument collateralized by an underlying pool of assets – usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, and receivables.

Bankers’ Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.

Commercial Paper: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.

Contribution to Total Return: The weight of each individual security multiplied by its return, then summed for each sector to determine how much each sector added or subtracted from the overall portfolio performance.

Effective Duration: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.

Effective Yield: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on investment returns, while nominal yield does not.

FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.

Interest Rate: Interest per year divided by principal amount and expressed as a percentage.

Market Value: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.

Negotiable Certificates of Deposit: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.

Par Value: The nominal dollar face amount of a security.

Pass-through Security: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the mortgage-backed security.
46 Attachment "4"
72 Item5.
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CITY OF ESCONDIDO
For the Quarter Ended December 31, 2021
Appendix
|
Glossary
Repurchase Agreements: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.

Settle Date: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity proceeds) occurs on a non-business day, the funds are exchanged on the next business day.

Supranational: A multinational union or association in which member countries cede authority and sovereignty on at least some internal matters to the group, whose decisions are binding on its members.

Trade Date: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.

Unsettled Trade: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.

U.S. Treasury: The department of the U.S. government that issues Treasury securities.

Yield: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis.

YTM at Cost: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period from purchase date to maturity, stated as a percentage on an annualized basis.

YTM at Market: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis. 47 Attachment "4"
73 Item5.

STAFF REPORT

February 2, 2022
File Number 0910-20

SUBJECT
NOTICE OF COMPLETION FOR GATEWAY GRAND PROJECT (ENG 16-0029; SUB16-0001) LOCATED AT 700 WEST GRAND AVENUE

DEPARTMENT
Engineering Services Department

RECOMMENDATION
Request the City Council approve Resolution No. 2022 -20 to a ccept the Pubic Improvements and authorize staff to file a Notice of Completion (“NOC”) for The Gateway Grand Project.

Staff Recommendation: Approval (Engineering Services: Julie Procopio) Presenter: Julie Procopio

FISCAL ANALYSIS
The cost for inspection and plan review is paid for by the developer in accordance with the adopted fee schedule.

PREVIOUS ACTION
On October 12, 2016, the City Council a dopted Resolution No. 2016 -144 approving a one -lot Tentative Subdivision Map for 126 residential condominium units in three, four and five-story buildings on a 2.59- acre site at the site of the former Police Department headquarters in the Gateway Transit District of the Downtown Specific Plan.

BACKGROUND
The Gateway Grand Project is a 126-unit residential subdivision located at 700 W Grand Ave. The project includes the installation of storm drain improvements, two pedestrian signals, cross walk striping on Valley Parkway and Grand Avenue, sidewalks, curb and gutter. Work was completed on December 22, 2021.

RESOLUTIONS
a. Resolution No. 2022-20

ATTACHMENTS
a. Attachment “1”- Vicinity Map – SUB16-0001

74 Item6.

Attachment "1"
75 Item6.

RESOLUTION NO. 2022-20

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE CITY

ENGINEER, ON BEHALF OF THE CITY, TO FILE A NOTICE

OF COMPLETION FOR THE GATEWAY GRAND PROJECT

WHEREAS, on October 12, 2016, the City Council adopted Resolution No. 2016-144 for a one-lot Tentative Subdivision Map for the development of a 126 -unit residential condominium project on approximately 2.59 -acres of land generally located on the southern side of We st Valley Parkway and northern side of West Grand Avenue, between Spruce Street and Quince Street, addressed as 700 W.

Grand Avenue (APN 232-100-16-00) (“Project”); and
WHEREAS, the construction for the Project was completed by Lyon Living; and WHEREAS, the City of Escondido (“City”) staff and the City Engineer deem the filing of the Notice of Completion (“NOC”) to be valid and recommends approval; and WHEREAS, this City Council desires at this time and deems it to be in the best public interest to approve the filing of the NOC.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council accepts the recommendation of the City Engineer.

3. That the City Council hereby authorizes the filing of a NOC for the Gateway Grand Project. 76 Item6.

STAFF REPORT

February 2, 2022
File Number 0910-20

SUBJECT
NOTICE OF COMPLETION FOR LEXUS OVERFLOW PARKING LOT (ENG 19-0002) LOCATED AT 1528 & 1551 TANGLEWOOD LANE

DEPARTMENT
Engineering Services Department

RECOMMENDATION
Request the City Council approve Resolution No. 2022 -21 to a ccept the Pub lic Improvements and authorize staff to file a Notice of Completion (“NOC”) for the Lexus Overflow Parking Lot (“Project”).

Staff Recommendation: Approval (Engineering Services: Julie Procopio) Presenter: Julie Procopio

FISCAL ANALYSIS
The cost for inspection and plan review is paid for by the developer in accordance with the adopted fee schedule.

PREVIOUS ACTION
In 2006, the City Council approved a Master and Precise Development Plan (“Plan”) for Lexus Escondido at 1205 Auto Park Way (Planning Case No. 2006 -10-PD). The Plan was amended on August 21, 2019 to add an inventory parking lot through adoption of Ordinance 2019-11.

BACKGROUND
The Lexus Overflow Parking Lot is located at 1528 and 1551 Tanglewood Lane. The Project installed a new parking lot, water service, fire hydrant, sidewalk, curb, and gutter, and relocated an existing street light.

The work was completed on October 28, 2021 and as-built drawings were submitted on December 16, 2021.

RESOLUTIONS
a. Resolution No. 2022-21

ATTACHMENTS

1. Attachment “1”- Vicinity Map – ENG19-0002
77 Item7.

Attachment "1"
79 Item7.

RESOLUTION NO. 2022-21

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE CITY

ENGINEER, ON BEHALF OF THE CITY, TO FILE A NOTICE

OF COMPLETION FOR THE LEXUS OVERFLOW PARKING
LOT

WHEREAS, on August 21, 2019, the Planning Commission considered and recommended approval of a modification to a previously approved Master Development Plan and new Precise Development Plan for Lexus Escondido to demolish two (2) residences and construct a new inventor y parking lot for the adjacent Lexus car dealership (“Project”); and
WHEREAS, the construction for the Project was completed by Luna Properties LLC; and WHEREAS, the City of Escondido (“City”) staff and the City Engineer deem the filing of the Notice of Completion (“NOC”) to be valid and recommends approval; and WHEREAS, this City Council desires at this time and deems it to be in the best public interest to approve the filing of the NOC.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council accepts the recommendation of the City Engineer.

3. That the City Council hereby authorizes the filing of a NOC for the Lexu s Overflow Parking Lot Project.
80 Item7.

STAFF REPORT

February 2, 2022
File Number 0910-20

SUBJECT
APPROVAL OF A CHANGE ORDER TO COMPLETE ADDITIONAL WORK FOR THE 2021 STREET

REHABILITATION AND MAINTENANCE PROJECT

DEPARTMENT
Engineering Services Department

RECOMMENDATION
Request the City Council approve Resolution No. 2022-22 to authorize a change order to the 2021 Street Rehabilitation and Maintenance Project – Phase 2 (“Project”) in the amount of $320,141.67 to add pavement resurfacing along Country Club Lane to complete resurfacing outside of the Canopy Grove project limits of work and perform pavement repairs for a water main break on Sunset Drive.

Staff Recommendation: Approval (Engineering Services: Julie Procopio) Presenter: Julie Procopio

FISCAL ANALYSIS
There are adequate funds in the Annual Street Maintenance Program Project budget, that includes Gas Tax, General Street Project, TransNet, and Road Maintenance and Rehabilitation Account (“RMRA”) funds, to pay for the additional pavement repairs on Country Club Lane in the amount of $266,889.39. Funds are available in the Utility Fund to pay the cost of the emergency pavement repairs on Sunset Drive in the amount of $53,252.28.

PREVIOUS ACTION
On September 15, 2021, The City Council adopted Resolution No. 2021-131, authorizing the award of the 2021 Street Rehabilitation and Maintenance Project – Phase 2 to Eagle Paving Company, Inc. (“Contractor”) in the amount of $5,582,894.

BACKGROUND
The zone of focus for the ongoing street maintenance project is the North-West (NW) Zone located west of North Broadway and north of State Route 78. The developer for the Canopy Grove project is required to complete public improvement s within this zone, including partial street resurfacing associated with traffic calming improvements on Country Club Lane between Gary Lane and Nutmeg Street. Staff 81 Item8.

recommends adding work to the contract to complete the remaining street resurfacing within this portion of Country Club Lane.

At the request of the Utilities Department, the Contractor will also perform additional roadway repairs not to exceed $53,252.28 associated with a water main break on Sunset Avenue south of Escondido Boulevard.

RESOLUTIONS
a. Resolution 2022-022

82 Item8.

RESOLUTION NO. 2022-22

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING A CHANGE
ORDER WITH EAGLE PAVING COMPANY, INC. FOR
ADDITIONAL RESURFACING FOR THE 2021 STREET
REHABILITATION AND MAINTENANCE PROJECT –
PHASE 2
WHEREAS, the City Council has allocated funding in the adopted Capital Improvement Program Budget for the City’s Annual Street Management Program; and WHEREAS, Eagle Paving Company, Inc. was determined to be the lowest responsive and responsible bidder on September 15, 2021; and
WHEREAS, this City Council desires at this time and deems it to be in the best public interest to authorize a Change Order to Eagle Paving Company, Inc. not to exceed $320,141.67.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council approves Resolution No. 2022-022 authorizing staff to execute, on behalf of the City, a Change Order with Eagle Paving Company, Inc. to complete additional pavement repairs, including an emergency pavement repair at the request of the Utilities Department.

3. That staff retains the authority to app rove change orders up to ten-percent of the original contract amount in accordance with the Municipal Code.
83 Item8.

STAFF REPORT

February 2, 2022
File Number 0170-57

SUBJECT
DENIAL OF CALPERS INDUSTRIAL DISABILITY RETIREMENT FOR POLICE SERGEANT PAUL F.

WOODWARD –

DEPARTMENT
Human Resources

RECOMMENDATION
Request the City Council adopt Resolution No. 202 2-23, denying the California Public Employees’ Retirement System (“CalPERS”) Industrial Disability Retirement for Police Sergeant Paul F. Woodward.

Staff Recommendation: Approval (Human Resources: Jessica Perpetua) Presenter: Jessica Perpetua

FISCAL ANALYSIS
None.

PREVIOUS ACTION
None.

BACKGROUND
Mr. Woodward filed for an Industrial Disability Retirement in February 2021, as a 64-year-old Police Sergeant. He was employed by the City of Escondido (“City”) for twenty-nine years. Mr. Woodward was hired on November 4, 1991 and separated employment on April 19, 2021. The basis for the denial of Mr.

Woodward’s Industrial Disability Retirement application is confirmed by a medical report from Dr. Daniel J. Bressler, MD.

Under State Law, the City Council is required to adopt a Resolution determining that competent med ical evidence supports the granting or denial of an Industrial Disability Retirement. Based on medical evidence, staff recommends the City Council adopt Resolution No. 2022-23, denying the CalPERS Industrial Disability Retirement for Paul F. Woodward.

RESOLUTIONS
a. Resolution No. 2022-23
84 Item9.

RESOLUTION NO. 2022-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, MAKING THE DISABILITY

DETERMINATION OF THE APPLICATION FOR

INDUSTRIAL DISABILITY RETIREMENT FOR FORMER
POLICE SERGEANT PAUL F. WOODWARD

WHEREAS, the City of Escondido (“City”) is a contracting agency of the California Public Employees’ Retirement System (“CalPERS”); and
WHEREAS, the California Public Employees’ Retirement Law (Govt. Code § 20000 et seq.) (“California law”) requires that the City determine whether an employee classified as a local safety member is disabled for purpose of the California law and whether such disability is “industrial” within the meaning of such law; and
WHEREAS, an application for an Industrial Disability Retirement due to cardiovascular injury from Paul F. Woodward (“Employee”) employed by the City in the position of Police Sergeant has been filed with CalPERS; and
WHEREAS, the City Council of the City of Escondido has reviewed the medical and other evidence relevant to this industrial disability.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council does hereby find and determine that Employee was not and is not incapacitated within the meaning of the California Public Employees’ Retirement Law for performance of his duties in the position of Police Sergeant for his cardiovascular injury. 85 Item9.

3. That the City Council certifies Resolution No. 2022-23 in accordance with Govt. Code § 21156, that this determination was made on the basis of competent medical opinion, and was not used as a substitute for the disciplinary process.

4. That based on information and belief, and on the information provided by C ity staff, the City Council certifies under penalty of perjury that all statements in this Resolution are true and correct. 86 Item9.

STAFF REPORT

February 2, 2022
File Number 0600-10

SUBJECT

CITY BUSINESS LICENSE TAX RECIPROCAL AGREEMENT WITH FRANCHISE TAX BOARD

DEPARTMENT
Information Systems

RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2022-27 authorizing the mayor or his designee, including the Director of Information Systems, to execute an agreement with the State of California Franchise Tax Board (FTB) (“Agreement”) to renew and continue the City’s participation in the FTB City Business Tax Program.

Staff Recommendation: Approval (Information Systems Department: Rob Van De Hey) Presenter: Rob Van De Hey

FISCAL ANALYSIS
There is no cost to the City to enter into this Agreement. The City may receive additional General Fund revenue through this information exchange by identifying incorrectly allocated sales tax or through increased compliance with business license filing requirements.

PREVIOUS ACTION
This Agreement is brought to City Council for approval every two years. The last agreement was brought forth in 2020 and approved.

BACKGROUND
This Agreement allows the California Franchise Tax Board (FTB) and the City to renew a reciprocal agreement to exchange data, to assist in the administration of the business license program. FTB will provide the City records for taxpayers within the City's jurisdiction who indicate a business on their personal or corporation income tax ret urn. Information obtained by FTB shall be used for tax administration and nontax programs that FTB administers.

RESOLUTIONS
a. Resolution No. 2022-27
b. Exhibit “A” Resolution No. 2022-27 – Contract Agreement 87 Item10.

RESOLUTION NO. 2022-27

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, AUTHORIZING THE MAYOR,

OR HIS DESIGNEE , TO EXECUTE, ON BEHALF OF THE

CITY, AN AGREEMENT WITH THE CALIFORNIA

FRANCHISE TAX BOARD TO PARTICIPATE IN THE CITY
BUSINESS TAX PROGRAM.

WHEREAS, on February 2, 2022, the City of Escondido considered a proposal from the California Franchise Tax Board to participate in the City Business Tax Program to exchange data pertaining to businesses operating in the City limits; and
WHEREAS, the information developed through this program could provide a useful inventory augmenting the business database that may benefit the City’s economic development efforts, insure compliance with local laws and allow the City to cross reference the business license and sales tax data to confirm that the correct revenue is being remitted to the City to prevent sales tax leakage from occurring; and
WHEREAS, the City Council desires at this time and deems it to be in the best public interest to approve said Agreement for a two-year period.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California:

1. That the above recitations are true.

2. That the City Council authorizes the Mayor, or his designee including the Deputy City Manager/ Dircetor of Information Systems , to execute, on behalf of the City, an Agreement with the California Franchise Tax Board. A copy of the Agreement is attached as Exhibit “ A” and is incorporated by reference.
88 Item10.

3. That the City Council approves Resolution No. 2022-27. 89 Item10.

State of California City of Escondido
Franchise Tax Board Agreement # 74553

Page 1 of 11 ends

EXHIBIT A

SCOPE OF WORK
T
his Agreement is entered into by and between the Franchise Tax Board, herein after referred to as (FTB), and the City of Escondido, herein after referred to as the City.

P
urpose:

T
his Agreement provides for the reciprocal exchange between FTB and the City tax data specific to city business license information for tax administration purposes. By entering into a reciprocal agreement, each party agrees to bear its own costs of providing the data, and the City is precluded from obtaining reimbursement.

B
oth parties will abide by the legal and confidential provisions of this Agreement. Exhibits A, C, D, E, F, and G, attached hereto and incorporated by reference herein, set forth additional terms to which the parties agree to be bound.

N
o Federal Tax Information will be exchanged.

Legal
Authority:

C
alifornia Revenue and Taxation Code (R&TC) Section 19551.1 authorizes a reciprocal agreement for the exchange of specified tax information between a City/County and FTB. R&TC Section 19551.5 mandates cities/counties to provide city/county business licensing and tax information to FTB upon request.

City Responsibilities:

1. T
he City agrees that the information provided by FTB will be used exclusively to administer the Cit
y/County Business Tax Program.

2. T
he City agrees that information obtained under this Agreement will not be reproduced, published, sold, or released in original or in any other form for any purpose; and will only be ac
cessed or used by City employees whose duties are to administer the City/County Business Tax Program.

3. T
he City agrees to provide FTB with tax information pursuant to Format Specifications, Exhibit E, which shall include, but not be limited to, the following:
 Business or owner’s name
 Business or residence address
 Federal Employer Identification Number (FEIN) or Social Security Number (SSN)  Ownership type
 North American Industry Classification Code or Standard Industry Classification Code  Business start and cessation dates
 City Business Tax Number, to be assigned to the City by FTB

4. T
he City agrees to extract and provide city data to FTB annually in June for each tax year that the Agreement is in place: June 2022, 2023, and 2024. If the Agreement is executed after June 30,
2022, the City will have 30 days after execution to provide FTB with the first year’s data.

5. T
he City agrees to submit the records to FTB electronically using FTB's Secure Web Internet File T
ransfer (SWIFT) system.

Resolution No. 2022-27
Exhibit "A"

Page 1 of 11 ends

90 Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 2 of 11 ends

6. The City agrees to submit the records to FTB in ASCII fixed-length format, .txt, per the Format Specifications, Exhibit E.

7. The City agrees to resubmit data in the event data is initially submitted with errors. The resubmission of data must be within 30 days of notification. If data is not submitted accurately and timely, the City will forfeit its rights to FTB data for that year.

8. The City agrees that each City employee having access to FTB data shall sign a City/County Business Tax Program Confidentiality Statement, FTB 712 (Exhibit G). The signed statement is to be retained by the City and produced to FTB upon request.

9. The City agrees to submit to FTB a completed Security Questionnaire prior to receiving any FTB data. The Security Questionnaire is valid for the duration of the Agreement.

10. The City agrees to provide a copy of the current resolution, order, or minutes reflecting passage of a motion, or ordinance of the local governing body authorizing the execution of this specific Agreement.

FTB Responsibilities:

1. FTB agrees that information provided by the City will be used for tax administration and non-tax programs that FTB administers and may be shared with other state or federal agencies as authorized by law.

2. FTB agrees that information obtained under this Agreement will not be reproduced, published, sold, or released in original or in any other form for any purpose, except as provided in paragraph 1 or otherwise authorized by law.

3. FTB agrees to provide the City with data extracted from the Taxpayer Information (TI) system and Business Entities Tax System (BETS). FTB will provide the City with records for taxpayers within the City’s jurisdiction who indicate a business on their personal or business entity income tax return. The Record Layout, Exhibit F, FTB 909A shall include:
 Taxpayer name
 Taxpayer address
 Taxpayer SSN or FEIN
 Principal Business Activity code

4. FTB agrees to match the data provided by the City using the SSN or FEIN against FTB’s data with a “Yes” or “No” indicator on the Record Layout, Exhibit F, FTB 909A. The first year’s data match is at the discretion of FTB based on when the data is received from the City and processed.

5. FTB agrees to provide the City with an annual data extract in December 2022 for tax year 2021, in December 2023 for tax year 2022, and in December 2024 for tax year 2023 via SWIFT.

6. FTB agrees to register the City for a SWIFT account allowing for the secure electronic transmission of data.

7. FTB agrees to provide the City with a unique City Business Tax Number to be used for reporting purposes only.

Resolution No. 2022-27
Exhibit "A"

Page 2 of 11 ends

91 Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 3 of 11 ends

8. FTB agrees to allow the City to resubmit data within 30 days of notification, in the event data is initially submitted with errors.

Project Coordinators:

The project coordinators during the term of this Agreement will be:

Franchise Tax Board City of Escondido
Felicia Hicks Amber Tarrac
City/County Business Tax Program Manager Neighborhood/Business Services Manager Safeguards and Data Oversight Program 201 N. Broadway
P.O. Box 1468, Mailstop A181 Escondido, CA 92025
Sacramento, CA 95812-1468 Phone: (760) 839-4587
Phone: (916) 845-6304 Email: [email protected]
Email: [email protected]

Return executed agreement to:

Franchise Tax Board
Zarsanga Safi
Business Acquisitions Unit
P.O. Box 2086, Mailstop A-374
Rancho Cordova, CA 95741-2086
Phone: (916) 845-6676
Email: [email protected]
Resolution No. 2022-27
Exhibit "A"

Page 3 of 11 ends

92 Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 4 of 11 ends

EXHIBIT B

BUDGET DETAIL AND PAYMENT PROVISIONS

This data exchange is provided at no cost.

Resolution No. 2022-27
Exhibit "A"

Page 4 of 11 ends

93 Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 5 of 11 ends

EXHIBIT D

SPECIAL TERMS AND CONDITIONS

1. DATA OWNERSHIP: The confidential tax information or sensitive information being provided under this Agreement remains the exclusive property of the providing party.

Confidential tax information and other confidential information are not open to the public and require special precautions to protect from loss and unauthorized access, inspection, acquisition, use, disclosure, modification, or destruction. The City (or County) shall have the right to use and process the disclosed information for the purposes stated in the Scope of Work of Exhibit A of this Agreement, which right shall be revoked and terminated immediately upon termination of this Agreement.

2. STATEMENT OF CONFIDENTIALITY: The Franchise Tax Board has taxpayer tax returns and other confidential information and data in its custody. Unauthorized inspection or disclosure of state returns or other confidential information or data is a misdemeanor (Revenue and Taxation Code Sections 19542, 19542.1, Unauthorized inspection or disclosure of federal returns and other confidential federal return information or data is a misdemeanor or a felony (Internal Revenue Code Sections 7213A(a)(2) and (b), and 7213(a)(2), respectively).

Upon the approval of this agreement and prior to any access to the confidential or sensitive data of the FTB, each City (or County) employee who may have access to the confidential data of FTB will be required to sign a City/County Business Tax Program Confidentiality Statement, FTB 712 (Exhibit G), attesting to the fact that he/she is aware of the confidentiality of the data and the penalties for unauthorized disclosure thereof under applicable state and federal law. The signed statement(s) shall be retained by the City (or County) and furnished to FTB upon request.

3. USE OF INFORMATION: The City (or County) agrees that the information furnished or secured pursuant to this Agreement shall be used solely for the purposes described in the Scope of Work of Exhibit A. The City (or County) further agrees that information obtained under this Agreement will not be reproduced, published, sold or released in original or in any other form for any purpose other than as identified in the Scope of Work of Exhibit A.

4. EMPLOYEE ACCESS TO INFORMATION: Both FTB and the City (or County) receiving data agree that the information obtained will be kept in the strictest confidence and shall make information available to its own employees only on a “need to know” basis. The “need to know” standard is met by authorized employees who need the information to perform their official duties in connection with the uses of the information authorized by this Agreement.

Each party receiving data recognize(s) its responsibility to protect the confidentiality of the information in its custody as provided by law and ensure that such information is disclosed only to those individuals and for such purposes as authorized by law and this Agreement.

5. PROTECTING CONFIDENTIAL INFORMATION/ INCIDENT REPORTING: Both FTB and the City (or County) receiving data, recognize the confidentiality of the information to be exchanged, pursuant to this agreement from unauthorized access, use, or disclosure. Each party receiving data will conduct oversight of its users with access to the confidential information provided under this agreement and will immediately notify the FTB’s Information Security Audit Unit ([email protected])

of any unauthorized or suspected unauthorized accesses, uses and/or disclosures (incidents). For purposes of this section, immediately is defined as within 24 hours of the discovery of the breach. The notification must describe the incident in detail and identify Resolution No. 2022-27
Exhibit "A"

Page 5 of 11 ends

94 Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 6 of 11 ends

responsible personnel (name, title, and contact information). The City (or County) with an incident will comply with the incident reporting requirements in accordance with R&TC Section 19542.1, Civil Code Section 1798.29, SAM Chapter 5300, and SAM Sections 8643 and 20080, and State Information Management Manual 54340-A and 5340-C to facilitate the required reporting to the taxpayers or state oversight agencies.

6. INFORMATION SECURITY: Information security is defined as the preservation of the confidentiality, integrity, and availability of information. A secure environment is required to protect the confidential information obtained from FTB pursuant to this agreement. The City (or County) receiving data will store information so that it is physically secure from unauthorized access. The records received by the City (or County) will be securely maintained and accessible only by employees of the City (or County) business license or tax programs who are committed to protect the data from unauthorized access, use, or disclosure. All FTB electronic data must be encrypted when in transit using FIPS 140-2 approved encryption technology and be password protected and secure at all times when in storage. Confidential information obtained from the FTB must be secured in accordance with the SAM Chapters 5100 and 5300 (Information Security), and National Institute of Standards and Technology (NIST) Special Publication 800-53 (moderate); and additional security requirements provided by FTB.

7. CLOUD COMPUTING ENVIRONMENT: A City (or County) receiving FTB’s confidential data must submit a completed FTB Cloud Security Questionnaire before using a Cloud Computing Environment. The questionnaire will be reviewed for approval by FTB’s Chief Security Officer, or his/her designee. A Cloud Computing Environment cannot be used to receive, transmit, store or process FTB’s confidential data without prior written approval from FTB’s Chief Security Officer or his/her designee.

8. DESTRUCTION OF RECORDS: All records received by the City (or County) from FTB under this Agreement, and any database(s) created, copies made, or files attributed to the records received, will be returned or destroyed within three years of receipt or upon termination of the agreement due to a breach of its terms, whichever occurs earlier. The records shall be destructed in a manner to be deemed unusable or unreadable, and to the extent that an individual record can no longer be reasonably ascertained. The City (or County) will notify FTB City/County Business Tax program manager annually in writing at FTB [email protected] that proper destruction methods have been applied. FTB will destroy city/county data in accordance with the department’s data retention policies.

9. DISPUTE RESOLUTION: In the event of a dispute, the City (or County) shall file a “Notice of Dispute” with the Chief Financial Officer of the FTB within ten (10) days of discovery of the problem. Within ten (10) days, the Chief Financial Officer or his/her designee shall meet with the City (or County) for purposes of resolving the dispute. The decision of the Chief Financial Officer shall be final.

10. SURVIVAL OF OBLIGATION TO PROTECT DATA: Each party’s obligation to protect the data and information received from the other party shall survive the expiration or termination of this Agreement. In the event a party continues to provide any data or information to the other party after the expiration or termination of this Agreement, the receiving party agrees to continue to protect all such data and information received in accordance with the provisions of this Exhibit D, and all applicable state and federal laws.

11. ONSITE SAFEGUARD REVIEW: FTB retains the right to conduct on-site safeguard reviews of the City (or County) use of FTB information and security controls established. The safeguard reviews may include, but are not limited to an examination of the adequacy of Resolution No. 2022-27
Exhibit "A"

Page 6 of 11 ends

95 Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 7 of 11 ends

information security controls, “need to know,” and use justifications established by the City (or County) to ensure compliance with the terms and conditions of this agreement. FTB will provide a minimum of seven (7) days’ notice of a safeguard review being conducted by FTB staff. The City (or County) will take appropriate disciplinary actions against any user determined to have violated security or confidentiality requirements.

12. LIMITED WARRANTY: Neither party represents or warrants the accuracy or content of the material available through this Agreement, nor each expressly disclaims any express or implied warranty, including any implied warranty of fitness for a specific purpose.

13. CANCELLATION: Either party may terminate this Agreement, in writing for any reason, upon thirty (30) days’ prior written notice. This Agreement may be terminated immediately by either party in the event of any breach of the terms of this Agreement.

14. NO THIRD PARTY LIABILITY: Nothing contained in or related to this agreement shall create any contractual relationship between either of the Parties and any other party, except between FTB and the City (or County); and no other party shall relieve the City (or County) or FTB of its responsibilities and obligations hereunder. Each of the parties agrees to be fully responsible for the acts and omissions of its third party contractors and agents, and of persons either directly or indirectly employed by the party. Neither of the parties shall have any obligation to pay, or to see to the payment of, any monies to any party or persons either directly or indirectly employed by the other.

Resolution No. 2022-27
Exhibit "A"

Page 7 of 11 ends

96 Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 8 of 11 ends

EXHIBIT E
CITY AND COUNTY RECORD FORMAT SPECIFICATIONS (FTB 909)

Data Element Name Start
Pos.

End
Pos.

Field
Size
Usage Description

SOCIAL SECURITY NUMBER
(SSN)
1 9 9 AN Must be present unless FEIN is
provided. Fill unused field with
zeros.

FEDERAL EMPLOYER

ID NUMBER (FEIN)
10 18 9 AN Must be present unless SSN is
provided. Fill unused field with
zeros.

OWNERSHIP TYPE 19 19 1 AN Must be present:

S = Sole Proprietorship
P = Partnership
C = Corporation
T = Trust
L = Limited Liability Company

OWNER’S LAST NAME 20 34 15 AN Must be present if Ownership Type in position 19 = S.

OWNER’S FIRST NAME 35 45 11 AN Must be present if Ownership Type in position 19 = S.

OWNER’S MIDDLE INITIAL 46 46 1 AN May be left blank.

BUSINESS NAME 47 86 40 AN Enter if business is operating under a fictitious name (Doing Business
As (DBA)).

BUSINESS ADDRESS

NUMBER AND STREET
87 126 40 AN Address of the business location or
the residence of the owner if sole
proprietorship.

CITY 127 166 40 A Must be present.

STATE 167 168 2 A Enter standard state abbreviation.

ZIP CODE 169 177 9 AN Enter the five- or nine-digit ZIP Code assigned by the U.S. Postal
Service. If only the first five-digits
are known, left-justify information
and fill the unused fields with zeros.

BUSINESS START DATE 178 185 8 N Enter the eight-digit date (MMDDYYYY). Zero fill if not
known.

BUSINESS CEASE DATE 186 193 8 N Enter the eight-digit date (MMDDYYYY) if out of
business. Zero fill if unknown or still
in business.

Resolution No. 2022-27
Exhibit "A"

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97 Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 9 of 11 ends

Data Element Name Start
Pos.

End
Pos.

Field
Size
Usage Description

CITY BUSINESS TAX
NUMBER
194 196 3 N Enter three-digit number assigned
by FTB.

NORTH AMERICAN

INDUSTRY CLASSIFICATION

SYSTEM (NAICS)

197 202 6 N Enter the two- to six-digit NAICS
code. Left justify. (example 99 will
be 9900). Fill unused fields with
zeros.

STANDARD INDUSTRIAL

CLASSIFICATION (SIC)
203 206 4 N Enter the 2-4 digit SIC code. Left
justify (example 99 will be 9900).

Fill unused fields with zeros.

TOTAL RECORD LENGTH 206
Resolution No. 2022-27
Exhibit "A"

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98 Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 10 of 11 ends

EXHIBIT F
FRANCHISE TAX BOARD RECORD LAYOUT SPECIFICATIONS (FTB 909A)

Field Name Length Start
Pos.

Description
ENTITY TYPE 1 1 “P” – personal income tax record;
“B” – business entity tax record.

SSN or FEIN 9 2 For “P” records, primary taxpayer’s social security number; For “B” records, federal
employer identification number.

LAST NAME 40 11 For “P” records, the primary taxpayer’s last name; For “B” records, business name.

FIRST NAME 11 51 For “P” records ONLY.

MIDDLE INITIAL 1 62 For “P” records ONLY.

SPOUSE SSN 9 63 For “P” records filed with a joint return.

SPOUSE LAST NAME 17 72 For “P” records filed with a joint return.

SPOUSE FIRST NAME 11 89 For “P” records filed with a joint return.

SPOUSE MIDDLE INITIAL 1 100 For “P” records filed with a joint return.

PBA CODE 6 101 Principal Business Activity code.

ADDRESS NUMBER 10 107

PRE-DIRECTIONAL DIRECTOR 2 117 Postal Service term (i.e., N, S, E, W, NE, NW, SE, SW).

STREET NAME 28 119

STREET SUFFIX 4 147 e.g., ST, WAY, HWY, BLVD, etc.

POST-DIRECTIONAL INDICATOR 2 151 Postal Service term (i.e., N, S, E, W, NE, NW, SE, SW).

STREET SUFFIX 2 4 153

APARTMENT/SUITE NUMBER 10 157 e.g., APT, UNIT, FL, etc.

CITY 13 167

STATE 2 180 Standard state abbreviation.

ZIP CODE 5 182 The five-digit ZIP Code assigned by the U.S.

Postal Service.

ZIP CODE SUFFIX 4 187 Provided if known.

CBT MATCH 1 191 “N” – No match per CBT data.
“Y” – Yes: CBT matched to state tax return
filed.

Resolution No. 2022-27
Exhibit "A"

Page 10 of 11 ends

Item10.

State of California City of Escondido Franchise Tax Board Agreement # 74553

Page 11 of 11 ends

EXHIBIT G
CONFIDENTIALITY STATEMENT (FTB 712)

State of California Franchise Tax Board

City/County Business Tax Program Confidentiality Statement Confidential tax data is protected from disclosure by law, regulation, and policy. Information security is strictly enforced; violators may be subject to disciplinary, civil, and/or criminal action. Protecting confidential tax data is in the best interest of the city, county, and state.

As a city/county employee, you are required to protect all information received from the Franchise Tax Board (FTB). To protect confidential tax data, you must:
• Access or modify tax data solely to perform official duties. • Never access or inspect tax data for curiosity or personal reasons. • Never show or discuss confidential tax data with anyone who does not have a need to know.
• Never remove confidential tax data from your worksite without authorization. • Place confidential tax data in approved locations only.

Unauthorized inspection, access, use, or disclosure of confidential tax data is a crime under state laws including, but not limited to, California Revenue and Taxation Code Sections 19542 and 19552 and Penal Code Section 502. Unauthorized access, inspection, use, or disclosure may result in either or both of the following:
• State criminal action.
• Taxpayer civil action.

I certify that I have read the confidentiality statement printed above. I further certify and understand that unauthorized access, inspection, use, or disclosure of confidential information may be punishable as a crime and may result in disciplinary and/or civil action against me.

Name (print)

Each city/county employee accessing FTB data must retain a signed copy of this form and provide it to FTB upon request.

FTB 712 (REV 06-2016)

Signature
Dat
e
Resolution No. 2022-27
Exhibit "A"

Page 11 of 11 ends

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STAFF REPORT
February 2, 2022
File Number 0430-80

SUBJECT
FINANCIAL STATUS REPORT FOR THE FISCAL YEAR 2021/22 SECOND QUARTER ENDING DECEMBER 31, 2021 AND BUDGET ADJUSTMENT

DEPARTMENT
Finance

RECOMMENDATION
Request the City Coun cil receive and fil e th e second qu arter financial report and approve a budget adjustment to amend the fiscal year 2021/22 operating budget.

Staff Recommendation: Approval (Finance: Christina Holmes) Presenter: Christina Holmes

FISCAL ANALYSIS
See Below.

PREVIOUS ACTION
On October 27, 2021, the City Coun cil received the Fiscal Year 2020/21 Financial Status Report for the fiscal year ending June 30, 2021.

BACKGROUND
The City Council Budget and Financial Policies require that the City of Escondido (“City”) present quarterly financial reports each fiscal year. The purpose of this report is to provide City Council and the public a financial update of selected funds of the City. This report provides the City Council with the analysis of unaudited revenues and expenditures for Fiscal Year 2021/22 in comparison to Fiscal Year 2020/21 for the General Fund, the Reidy Creek Municipal Golf Course Fund, and the Water and Wastewater Funds.

The financial highlights for each of these funds are summarized below.

In December of 2021, the City conducted a Community Opinion Survey to assess resident satisfaction of City services provided and to identify issues and community priorities to address through this year’s budget process. Residents identified the following City service priorities:
 Addressing homelessness
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 Attracting businesses and jobs to the City
 Improving public safety and police services
 Maintaining and repairing local streets, roads and sidewalks  Keeping public areas clean and free of graffiti
As part of this year’s budget process City staff will be building on the Community Opinion Survey by engaging Escondido residents CityWide through The Escondido Discussion, to hea r local community priorities and City service needs. Staff will also be working with the City Council to engage in a thorough dialogue and develop strategies to address the challenge and resident-identified community priorities.

General Fund
Prior to the onset of the pandemic, consumer confidence was at all-time highs and the California economy was strong. Even with a stable economy, General Fund revenues have not kept pace with the growing cost of municipal services and operating budget deficits have been projected beginning in FY2017/18. The City has maintained a balanced budget as a result of modest economic growth and stability and a combined strategy of a hardline on expenditures and cost saving measures that included reducing staff, deferring infrastructure maintenance, investing in technology to reduce ongoing costs, and outsourcing services. The conditions and these approaches left the City able to preserve municipal operations without the use of General Fund Reserves, while also setting aside fun ds in the Section 115 Irrevocable Pension Trust Fund.

Then in March 2020, at the onset of the COVID-19 pandemic, the public health measures and restrictions forced government operations and private businesses to close or drastically alter operations. Many economists predicted that the sudden closures would create a severe economic downturn comparable to the Great Recession , which had a devastating impact on the City’s General Fund . However, as the restrictions have been lifted, the reopening of the economy has allowed for additional public activities and the economic environment continues to improve.

In June 2021, t he City Council adopted the FY202 1/22 operating budget with General Fund revenues of $107 million and expenditures of $117.1 million. Total operating revenue is projected to increase by 3% and the adopted expenditure budget increased by approximately $7.1 million or 6% compared to the revised FY2020/21 operating budget. In addition to providing core City service s including Public Safety, Public Works, Community Services, and Community Development, the FY2021/22 budget reflects the resources required to address specific public service needs around traffic flow, traffic safety, and homelessness.

The adopted FY2021/22 budget also projects an $8 million net operating deficit. The cost reductions needed to balance the budget and close the budget gap would have a significant impact on the community and the services the City provides. To continue to provide essential City services and identified community priorities, respond to infrastructure maintenance and repair needs, and address the net operating deficit 102
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with a balanced budget for Fiscal Year 2021/22, City Council approved the use of the final one-time source of funds from the Successor Agency Redevelopment Loan repayment of $2.2 million and a transfer of $6.1 million from the Section 115 Pension Trust Fund though this did not address the ongoing deficit the City faces and the need to cut City serv ices including public safety and public works services without an additional source of locally controlled revenue.

Through the end of December, operating revenue exceeded the amount projected by about $4.0 million.

The economy continues to recover from the initial impacts of the COVID -19 pandemic and resulting restrictions. Pent up demand for goods and services has driven the growth of sales tax revenue, actual sales tax receipts have increased by $2.3 million or 16% compared to December 2020. Property tax, other tax revenue, and rental income also increased from the prior year by about $1.1 million . Charges for services, intergovernmental revenue, permits and licenses, and all other revenue decreased from the prior year but to a lesser degree. Total operating revenue as of December 2021 increased by $3.3 million compared to December 2020.

As a result of the receipts received through December 2021 and the amended Sales Tax forecast provided by the City’s sales tax consultant, the General Fund operating revenue is projected to exceed the current adopted budget amount by approximately $4 million. However, one-time funds of over $8 million were needed to close the General Fund structural budget gap this fiscal year. The amended operating revenue projections will simply reduce the amount of one-time funds that will be utilized to address the budgeted net operating deficit for FY2021/22.

Update on Future Year Budget Deficits
The City’s annual budget process begins around December each yea r with an update of the budgetary forecast and the General Fund Multi -Year Financial Plan . The City works closely with its sales tax consultant, AvenuInsights, in projecting sales tax revenue. Based on the analysis of the trend in year-to- date tax receipts and an examination of the current local economy, the City’s sales tax revenue is anticipated to continue to grow in the next fiscal year. This assumes the economy remains stable with no retraction or recession.

Even with the improved economy and projections, operating revenue is not keeping pace with operating expenditures. To maintain core City services, the General Fund is potentially facing an $8 million budget gap this year. Due to the budget shortfall, the City may have to decide on cuts to City services, including public works and public safety services.

Reidy Creek Municipal Golf Course Fund
Overall operating revenues for the Reidy Creek Golf Course have declined by 2% compared to the prio r year. This is due to a decrease in the total rounds of golf played at the course, which decreased by 8% compared to the prior year. Total operating expenditures through December were up slightly by 1.5% from the prior year as a result of the added activity at the course which has led to an increase in expenses, 103
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primarily due to the maintenance of the course and repairs of aging equipment. As of December 31, Reidy Creek total net income is $6,943.

Water Fund
Net operating income for the Water Fund throu gh December 2021 was $10.5 million, a decrease of $523,000 from prior year. Operating revenue increased by about $510,000 million or 1% compared to the prior year, due to approved rate increases effective March 31. Operating expenses increased by about $1 million or 4% compared to the prior year due to increases in the costs for supplies, maintenance, and utilities.

Wastewater Fund
Net operating income for the Wastewater Fund through December 2021 was $7.2 million, an increase of $1.7 million from the prior year. Operating revenue increased by about $2.4 million or 14% compared to the prior year, due to the timing of reimbursements received from the City of San Diego for treatment charges. Operating expenses increased by about $703,000 or 6% compared to the prior year due to increases in the costs for supplies, maintenance, and utilities.

Recommended Budget Adjustments:

The recommended budget amendments have no effect on Reserve Balances as all the adjustments have identified funding sources.
 Approve an adjustment to General Fund Sales Tax revenue. As a result of the amended forecast prepared by AvenuInsights and operating results as of December 2021, an increase to sales tax revenue of $4.2 million is recommended. The improved operating revenue forecast will reduce the projected operating deficit of $8 million this fiscal year.  Approve an increase to the Fire Department operating budget of $1,096,680. The adjustment to the Fire Department overtime budget is necessary primarily due to the overtime incurred as a result of the deployments to wildfires this fiscal year through California and Oregon. EFDs assistance to other jurisdiction s under the California Fire Assistance Agreement coordinated through the Office of Emergency Services fully r eimbursed the City for the direct and backfill overtime created as a result of the deployments. In addition to deployments, additional overtime has been needed due to a larger than anticipated number of vacancies, workers compensation injuries, and absences due to COVID-19 infection or exposure. The requested adjustment to Fire Department’s overtime budget is projected to be sufficient through the end of this fiscal year, however, the current surge in the Omicron variant could necessitate a third quarter adjustment.  Approve an increase to the Water Fund Lakes Department budget of $ 61,650. In October 2021, two temporary part-time Park Ranger positions (“Park Rangers”) were filled to assist the California 104
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Center for the Arts (“CCAE”) campus with addressin g various security concerns including trespassing, homeless encampments, and vandalism. The CCAE agreed to reimburse the City for the costs incurred for the Park Ranger services. A budget adjustment is recommended to increase the employee services budget for the additional staff costs and also increase the revenue to reflect the reimbursement from the CCAE. There is no financial impact to the General Fund.  Approve an increase to the Library Services Grant budget. The California State Library provides the Escondido Library with annual funding to support adult and family literacy services through the California Library Literacy Services grant program. Additional funds of $84,280 were awarded for FY2021/22, a budget adjustment is recommended to increase the grant budget. There is no financial impact to the General Fund.

ATTACHMENTS

1. Attachment “1” – Second Quarter Financial Status Report FY 2021/22

2. Budget Adjustment
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Attachment “1”
1 Fourth Quarter Financial Report as of June 30, 2019

OVERVIEW
This report summarizes the City’s financial position for the fiscal year through the second quarter ending December 31, 2021 for the General Fund, the Reidy Creek Municipal Golf Course , and the Water and Wastewater Funds. The purpose of the report is to p rovide City Council, City Management, and the Escondido community an update on the City’s fiscal status based on the most recent financial information available . The revenue projections and budget information include adjustments for encumbrances, carryovers, and any other supplemental appropriations approved by the City Council as of December 31, 2021.

This report is for internal use only. The figures presented here are unaudited and have not been prepared in accordance with Generally Accepted Accounting principles (GAAP).

GENERAL FUND
The General Fund Fiscal Year 2021/22 operating budget was adopted as a balanced budget but relies on over $8 million of one-time sources of funds including the final loan repayment from the Successor Agency Redevelopment Loan of $2.2 million and a transfer of $6.1 million from the Section 115 Pension Trust Fund. Total operating revenue is projected to increase by 3% to reach $107.2 million and the adopted expenditure budget of $117.1 million increased by approximately $7.1 million or 6% compared to the revised FY2020/21 operating budget although this does not address the current $ 8 million deficit the City is facing . In addition to providing core City services including Public Safety, Public Works, Community Services, and Community Development, the FY2021/22 budget reflects the resources required to address specific public service needs around traffic flow, traffic safety, and homelessness.

At the end of the second quarter, General Fund revenues are at 35% of the amended budget, while expenditures are at 46%. Actual revenues are higher than projected by about $4.0 million primarily due to increases in Sales Tax, Property Tax, and Other Taxes received through the second quarter of the fiscal year. Expenditures are in line with budgeted activity and projected amounts. The Projected Results as of December 2021 shown below are based on past history of the timing of revenues collected and expenditure activity.

General Fund
Comparison of Projected FY2021/22 Operating Budget to Actuals FY2021/22

AMENDED BUDGET

PROJECTED RESULTS
DECEMBER 2021

ACTUAL RESULTS
DECEMBER 2021
Total Operating Revenue $107,219,510 $33,672,888 $37,768,603 Total Operating Expenditures (118,268,800) (55,586,336) (54,652,836) Other Sources (Uses) 1,563,840 1,563,840 1,563,840
Net Operating Surplus / (Deficit)* ($9,485,450) ($20,349,608) ($15,320,393) *FY2021/22 projected Operating Budget deficit closed with one -time revenue from the Redevelopment Loan payment of $2.2 million and funding from the Section 115 Pension Trust Fund of $6.1 million.

106
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Fiscal Year 2021/22 Second Quarter Financial Report

2 GENERAL FUND REVENUE
FY2021/22

AMENDED
BUDGET

ACTUAL RESULTS
DECEMBER 2021

ACTUAL RESULTS
DECEMBER 2020
Prior Year vs.

Current Year
Sales Tax $42,147,300 $16,517,130 $14,208,940 $2,308,190 Property Tax 30,925,000 6,687,530 6,350,110 337,420 Other Taxes 13,680,000 4,214,540 3,432,150 782,390
Charges for Services 10,169,710 5,043,780 5,245,620 (201,840) Intergovernmental 3,341,000 1,589,880 1,719,830 (129,950) Permits and Licenses 1,412,500 942,790 986,000 (43,210) Fines and Forfeitures 908,000 457,120 422,770 64,350 Rental Income 3,738,000 2,120,080 1,822,700 297,380
Other Revenue 898,000 165,760 259,060 (93,300)
TOTAL OPERATING REVENUE $107,219,510 $37,768,610 $34,447,180 $3,321,430

Sales tax is the largest General Fund revenue source at 39% of total revenue in FY2021/22 followed by property tax, other taxes, and charges for services. The chart below shows the major categories of revenue collected through December 31, 2021 compared to the revenue collected in the prior year through December 31, 2020.

107
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Fiscal Year 2021/22 Second Quarter Financial Report

3 Sales Tax ($16.5 million)
The Sales Tax revenue projected in the Fiscal Year 202 1/22 Operating Budget adopted in June 2021 was $42.1 million, an increase of $ 2.7 million or 7% over the FY20 20/21 a mended sales tax forecast. The restrictions from the COVID -19 pandemic were expected to continue to negatively impact sales tax revenue in FY2020/21; however, a ctual sales tax receipts received at the close of the previous quarter resulted in strong growth that was not previously anticipated. A combination of California fully reopening its economy, improved vaccination rates, public health measures to reduce the spread of the COVID-19 virus, and additional federal funding fostered an economic environment in which consumers’ buying power
remained intact and the demand to spend on taxable goods significantly increased during this time period.

Overall, the City’s local economy continues to experience a fairly strong recovery and as a result, sales tax revenues distributed to the City through December 2021 increased by $2.3 million or 16% compared to the prior year . Sales tax revenues distributed to the City as of December 2021 represent sales that occurred between July and October 2021.

The largest sales tax segment, 3 6% of total sales tax revenue, is Transportation, which includes new and used auto sales, auto repair shops, and service stations. Sales revenues increased by 30% compared to the prior year primarily due to new auto sales. Limited supply has been overwhelmed by strong demand and the smaller inventories increased the taxable price of vehicles. As businesses, commuters, and travelers returned to the road with increased gas prices, fuel and service stations also increased by about 80% compared to the same quarter in the prior year.

Sales tax revenue received through the County Pool is now the second largest sales tax segment accounting for 21% of the sales tax revenue received this fiscal year. Effective in April 2019, new taxable sales are distributed to the City under the AB 147 Wayfair decision which extended the sales and use taxes to online and out-of-state retailers engaged in business in California. However, the increase in activity from the countywide pool experienced during the pandemic have slowed; total receipts declined by 3% compared to the prior year.

The Construction sales tax segment accounts for revenue generated from building materials, including both wholesale and general retail, increased from the prior year by about 12%. This can be attributed to increase in the price of materials, including lumber and steel, and the continued high demand for home improvements and new construction in the City.

General retail and food products combined make up 2 4% of the total sales tax revenue for the City and increased by 13% compared to the prior fiscal year. The rise in general merchandise and food product sales reflects increased foot traffic and buying activity as people return to in-store shopping and indoor dining.

Property Tax ($6.7 million)
Property Tax revenue is up $337,417 or about 5.0% compared to this time in the prior year . The largest portions of property tax revenue are distributed by the County in December and April each year. The FY2021/22 Operating Budget projected property tax growth of 3% due to an increase in overall assessed values of properties in Escondido, favorable lending conditions and the continued increased number of home sales have all lead to significant growth in property tax revenues this fiscal year.

Transportation
36%
County Pool
21%
Construction
12%
General Retail
13%
Food Products
11%
Business to Business
8%
Sales Tax by Major Category
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Fiscal Year 2021/22 Second Quarter Financial Report

4 Other Taxes ($4.2 million)
Other Taxes include franchise fee revenues, transient occupancy tax, and business license revenue and combined have increased by $782,000 compared to the prior year.

The City collects franchise fee revenues from San Diego Gas and Electric (SDG&E), cable companies conducting business within City limits, and Escondido Disposal Incorporated (EDI). Revenues received from franchise agreements increased by $308,000 from the prior fiscal year primarily due to an increase in fees collected from EDI and SDG&E.

Transient Occupancy Tax, also known as hotel tax, increased by $ 602,500 compared to the prior year. Due to the COVID-19 pandemic, many hotels remained closed or partially closed during the prior fiscal year. The tourism industry was impacted significantly as a result of the closures, and many forecasted its recovery would t ake much longer than it has. The Transient Occupancy Tax receipts collected through December 2021 have increased by 11% from the pre- pandemic levels in December 2019.

All entities doing business in the City are required to have a valid business license. The business license tax is calculated based on annual gross receipts ; business license revenue from the 202 1 calendar year is based off of 20 20 gross receipts. Business license revenues have decreased by about $197,500 from the previous fiscal year.

Charges for Services ($5.0 million)
Due to the public health orders, City recreation facilities and services have been restricted or closed. The inability to hold recreation programs has resulted in refunds of fees collected for classes and programs already scheduled as well as the loss of recreation program revenue of approximately $253,000 compared to the prior year.

The decrease in recreation program revenues were offset by increases in charges for development related services, which include engineering and planning fees. Development related fees are paid by developers to cover the cost of reviewing and monitoring development activities, such as plan checks and inspections , and have increased by about $433,000 compared to the prior year.

Intergovernmental ($1.6 million)
Intergovernmental revenue includes the Rincon fire services agreement, state mandated cost claims, and various grants, and decreased $ 129,950 compared to the prior year primarily due to the timing of various grant reimbursements.

Permits and Licenses ($942,800)
Revenue generated from permits and licenses has decreased by $43,200 primarily due to a decrease in building permit activity from the prior fiscal year.

Fines & Forfeitures ($487,120)
Fines & forfeitures represent fees collected for code enforcement citations, vehicle code violations, parking citations, overdue fines, and impound fees. The increase of $64,350 to date is due to an increase in activity as the restrictions on activity as a result of the pandemic continue to be lifted.

Investment, Rental Income, and Other Revenues ($2.3 million) Investments, Rental Income, and Other Revenue includes rental income, interest earned from investing activities, and other miscellaneous receipts and has increased by about $200,000 compared to the prior year.

One-Time Funds: Fire Mutual Aid Reimbursements - $1,023,638 The City’s Fire Department staff can be deployed to assist other State agencies with responses to fires and other incidents. The California Office of Emergency Services reimburses the City for the time and resources of the staff deployed. As of December 2021, reimbursements of $1,023,638 have been recorded. 109
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Fiscal Year 2021/22 Second Quarter Financial Report

5 GENERAL FUND OPERATING EXPENDITURES
The following table includes cumulative second quarter expenditure comparisons for General Fund departments for FY2021/22. General Fund expenditures are tracking as expected at 46% percent of the budget through the first six months of the fiscal year. The General Fund total expenditures are up 6% compared to the prior fiscal year or about $2.9 million. The FY2021/22 General Fund Operating Budget increased by approximately $7.1 million or 6% compared to the FY 2020/21 revised Operating Budget and the General Fund departments are on track to meet this target.

FY2021/22

AMENDED
BUDGET

ACTUAL RESULTS
DECEMBER 2021

ACTUAL RESULTS
DECEMBER 2020
General Government & Support Services $6,786,250 $2,553,690 $2,596,540 Community Services 9,073,751 4,054,690 3,367,010
Community Development 8,128,370 3,109,050 3,176,970
Public Works 12,485,090 4,389,990 4,328,630
Police 49,248,620 23,563,560 22,421,190
Fire 27,999,290 14,777,350 13,759,360
California Center for the Arts 2,412,680 1,554,270 1,334,430 Other Expenditures 2,134,750 650,250 750,300
TOTAL OPERATING EXPENDITURES $118,268,801 $54,652,850 $51,734,430

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Fiscal Year 2021/22 Second Quarter Financial Report

6 GENERAL FUND RESERVES
In December 2015, City Council adopted a Fund Balance Policy and established a General Fund target Reserve balance of 25 percent of General Fund operating revenues in order to maintain adequate levels of fund balance based on a risk- based analysis, mitigate current and future risks, adequately provide for cash flow requirements, and to fund one-time unanticipated expenditure requirements.

Budgeted General Fund operating revenue in Fiscal Year 202 1/22 is $ 107,219,510 and 25% of this amount is $26,804,878. The current General Fund Reserve balance is $17,392,319, or 16% of budgeted operating revenue, which is below the identified acceptable risk-based analysis adopted by City Council and general government practices.

Section 115 Irrevocable Pension Trust Fund
In February 2018, City Council authorized the establishment of a Section 115 Irrevocable Pension Trust Fund. The Trust Fund is used to set aside and hold money to meet future pension liabilities and can be used to provide economic relief during recessionary cycles and/or rate increases that are significantly above anticipated projected employee rate increases. Funds placed in this Trust can also be used to offset the City’s “normal” CalPERS costs, such that if funds are necessary for other purposes, a certain amount of flexibility is present. Another benefit is that funds held in the Trust can be invested in the same manner as funds in a typical pension fund rather than as part of the City’s General Fund, which means a potentially higher rate of return.

When the Pension Trust Fund was established, a funding policy for contributions to the Fund was recommended and included the four years of annual Successor Agency Redevelopment Loan Repayments of $14 milli on that began in Fiscal Year 2018/19, future proceeds from the sale of City Property belonging to the General Fund, and a portion of General Fund surplus at the end of each fiscal year, if one exists. On October 27, 2021, City Council approved the transfer of the FY2020/21 Successor Agency Redevelopment Loan Repayment of $5,982,930 and the remaining net resources from the FY2020/21 year end operating results of $5,567,915.

As of December 31 , 2021 , t he S ection 115 Pension Trust Fund has a balance of $ 27,023,050 which includes City contributions of $24,406,430 plus investment earnings net of expenses of $2,616,620. The 3-month rate of return of the investment portfolio is 1.78% and the 1-year rate of return is 5.21%.

The following table provides a summary of the activity since the establishment of the fund.

Section 115 Pension Trust Fund
Prior Contributions $12,855,585
Successor Agency Advance Repayment – FY2020/21 5,982,930 General Fund Operating Results – FY2020/21 5,567,915
Investment Earnings, net of expenses 2,616,620
Balance as of December 31, 2021 $27,023,050

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Fiscal Year 2021/22 Second Quarter Financial Report

7 REIDY CREEK GOLF COURSE FUND
In the prior fiscal year ending June 30, 2021, Reidy Creek Golf Course had the best performance it has had since opening and was able to end the year with positive net income for the first time in 10 years. Due to the increase in activity at the course and continued popularity of Disc Golf, the FY2021/22 budget for the course was adopted with a $304,280 or 49% increase in operating revenue from the prior year with no transfer from the General Fund. Operating expenses are projected to rise by 19% or $131,930 due to the increase in maintenance and staff costs needed to support the increase in activity.

As of December 2021, overall operating revenues have declined by 2% compared to the prior year. This is due to a decrease in the total rounds of golf played at the course, which decreased by 8% compared to the prior year. In addition, total o perating expenditures through December were up slightly by 1.5% from the prior year. The added activity at the course has led to an increase in expenses, primarily due to the maintenance of the course and repairs of aging equipment.

In May 2021, City Council approved the use of $160,000 of the FY2020/21 projected net surplus for the purchase of new golf carts for the course. The carts were ordered, but due to delays in shipping not received before the end of last fiscal year. In November the new carts arrived at the course and have been very well received by customers. The new fleet is anticipated to alleviate future maintenance costs that were needed to keep the old carts operating.

FISCAL YEAR
2021/22
BUDGET
ACTUAL

RESULTS

DECEMBER
2021
ACTUAL

RESULTS

DECEMBER
2020

PRIOR YEAR VS

CURRENT YEAR
Total Revenues $925,060 $471,159 $483,980 ($12,821)
Total Expenditures (829,120) (464,216) (457,350) (6,866) Net Operating Income / (Deficit) $95,940 $6,943 $26,630 ($19,687) Budgeted Transfer from the General Fund - - 76,410 (76,410) Total Sources over (Uses) $- $6,943 $103,040 ($254,382) 112
Item11.

Fiscal Year 2021/22 Second Quarter Financial Report

8 WATER FUND
Net operating income for the Water Fund through December 2021 was $10.5 million, a decrease of $523,000 from prior year. Operating revenue increased by about $510,000 million or 1% compared to the prior year, due to approved rate increases effective March 31. Operating expenses increased by about $1 million or 4% compared to the prior year due to increases in the costs for supplies, maintenance, and utilities.

FISCAL YEAR
2021/22
BUDGET

ACTUAL RESULTS
DECEMBER 2021

ACTUAL RESULTS
DECEMBER 2020

PRIOR YEAR VS

CURRENT YEAR
Operating Revenues $64,175,000 $37,714,975 $37,204,118 $510,857 Operating Expenses (59,158,690) (27,172,386) (26,138,453) (1,033,933) Net Operating Income $5,016,310 $10,542,589 $11,065,665 ($523,076)

WASTEWATER FUND
Net operating income for the Wastewater Fund through December 2021 was $7.2 million, an increase of $1.7 million from the prior year. Operating revenue increased by about $2.4 million or 14% compared to the prior year, due to the timing of reimbursements received from the City of San Diego for treatment charges. Operating expenses increased by about $703,000 or 6% compared to the prior year due to increases in the costs for supplies, maintenance, and utilities.

FISCAL YEAR
2021/22
BUDGET

ACTUAL RESULTS
DECEMBER 2021

ACTUAL RESULTS
DECEMBER 2020

PRIOR YEAR VS

CURRENT YEAR
Operating Revenues $41,200,000 $19,989,592 $17,577,285 $2,412,307 Operating Expenses (26,601,330) (12,808,901) (12,106,086) (702,815) Net Operating Income $5,016,310 $7,180,691 $5,471,199 $1,709,492

FOR MORE INFORMATION
This summary report is based on detailed information generated by the City’s Finance department. If you have any questions or would like additional information on this report, please contact the Finance department at (760) 839 - 4676 or visit www.escondido.org
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FM\105 (Rev.08/06)

C I T Y O F E S C O N D I D O

BUDGET ADJUSTMENT REQUEST

Date of Request: 1/25/2022 For Finance Use Only
Log #
Fiscal Year 2022
ear
Department: Finance
Division:

Project/Budget Manager: Christina Holmes 4620
Name Extension
Council Date (if applicable): 02/02/2022
(attach copy of staff report)
Budget Balances
General Fund Accts
Revenue
Interfund Transfers
Fund Balance

Project/Account Description Account Number Amount of Increase Amount of Decrease Fire Assistance Reimbursement 4256-001-000 $1,056,680
Overtime 5020-001-600 976,400
Supplies 5101-001-600 530
Gas 5111-001-600 1,950
Misc. Motive 5118-001-600 10,700
Training & Meetings 5160-001-600 2,100
Transfers Out 5999-001-000 65,000
Transfers In 4999-653-000 65,000
Motive Equipment 5208-653-715 65,000
Sales Tax Revenue 4001-001-000 4,200,000
Professional Services 5131-001-600 40,000
Reimbursement from Outside
Agencies
4370-555-000 61,670
Temporary Part-Time 5004-555-414 50,930
Other Employee Overhead 5025-555-414 1,740
PERS-Normal Cost 5026-555-414 5,630
Workers’ Compensation 5028-555-414 3,370
Adult Literacy Services 401-409102-25010 51,880
Family Literacy Services 401-409102-25018 32,400
FY20201/22 California Literacy
Services – Adult Literacy
4112-401-25010 51,880
FY20201/22 California Literacy
Services – Family Literacy
4112-401-25018 32,400
DocuSign Envelope ID: D524EC82-4965-4E8B-BE76-EC201CDB1733 114
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FM\105 (Rev.08/06)
Explanation of Request:

Mid-Year Budget Adjustment to amend the FY2021/22 operating and capital project budgets.

All budget adjustments have a funding source.

APPROVALS

Department Head Date

City Manager Date

Finance Date

City Clerk Date
Distribution (after approval): Original: Finance

DocuSign Envelope ID: D524EC82-4965-4E8B-BE76-EC201CDB1733 1/25/2022
1/25/2022
115
Item11.

KEY‐
CONSENT CALENDAR CURRENT BUSINESS
PUBLIC HEARING WORKSHOP
02/09/2022 ‐ CANCELLED
2/16/2022 ‐ CANCELLED
02/23/2022 ‐ NO MEETING (PRESIDENT'S DAY)
03/02/2022
PUBLIC HEARING ‐ (J. PROCOPIO) ‐ RESOLUTION OF FORMATION TO ESTABLISH COMMUNITY FACILITIES DISTRICT (CFD) NO. 2022‐01 (ECLIPSE AND MOUNTAIN HOUSE) ‐ Request the City Council approve to hold a public hearing to establish CFD 2022‐01 and determine the necessity to incur bond indebtedness for the Eclipse and Mountain House Project.

PUBLIC HEARING ‐ (C. MCKINNEY) ‐ AMENDING THE ESCONDIDO MUNICIPAL CODE PERTAINING TO REGULATION OF SHORT‐TERM HOME RENTALS AND AWARDING AN AGREEMENT FOR ADMINISTRATION OF THE SHORT‐TERM HOUSING RENTAL PROGRAM ‐ Request the City Council approve adopting Ordinance 2022‐01 pertaining to regulation of short‐term home rentals and creating a short‐term home rental program for the collection of associated taxes and fees, business license, and code compliance monitoring. It is also requested the City Council adopt Resolution 2022‐04 authorizing the

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Escondido City CouncilFebruary 2, 2022

Escondido City Council
February 2, 2022