CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
1989
To: Honorable Mayor and Council Members
FROM: Tamara S. Letourneau, City Manager
DATE: July 19, 2022
SUBJECT: Investment Report as of May 31, 2022
RECOMMENDATION
Staff recommends that the City Council receive and file the City of Laguna Niguel Investment Report as of May 31, 2022.
BACKGROUND
The City Investment Policy requires the City Manager to submit an Investment Report monthly to the City Council that contains a summary of investment transactions, including investment types, percent of portfolio, yield, purchase date, maturity date, issuer or institution, par and dollar amount invested, market value, source of market valuation, the portfolio's average weighted yield and maturity, and a description of any local agency funds or investments under the management of contracted parties.
Submission of, and the City Council's action of receiving and filing this Report, addresses the City Council's goal of fiscal sustainability.
ANALYSIS
The following table compares the portfolio balance as of May 2022 to May 2021.
Portfolio Balance May 2022 May 2021 Difference
Balance $66,406,797.90 $61,923,635.28 $4,483,162.62
• From April 2022 to May 2022, the City's total cash and investments had a net increase of $5,485,855.93 going from $60,920,941.97 to $66,406,797.90.
Expenditures decreased by $280,798.30 from the prior month. Community Development receipts were $2,723, 166.41 higher than the prior month, which was due to a one-time, large deposit related to a new development. Sales tax revenue received was $400,517.91 higher than prior month. • The percentage of pooled investments increased from 52.18% to 57.07%.
Pooled investments include the Local Agency Investment Fund (LAIF) and the Orange County Investment Pool (OCIP).
• The average weighted maturity of City investments, including investment pools, decreased trom 608 days to 53/ days. The average weighted maturity of City investments, including investment pools, is calculated as follows: Sum of days left until maturity of each individual investment multiplied by the cost of each individual investment divided by the total portfolio at cost, excluding cash in bank.
• The net yield of LAIF increased from 0.523% to 0.684%. The net yield of OCIP increased from 0.489% to 0.618%.
• The average weighted yield of City investments, including investment pools, increased from 0.662% to 0.727%. The City's average weighted yield of City investments, including investment pools, is calculated by taking the total investment earnings divided by the total portfolio at cost, excluding cash in bank. A comparison of the City's average weighted yield to short-term and long-term benchmarks is presented below.
City Portfolio Benchmark Comparisons
Average 5-Year 1-Year 6-Month OCIP LAIF
Weighted Treasury Treasury Treasury
Yield
0.727% 2.810% 2.080% 1.640% 0.618% 0.684%
The monthly Investment Report as of May 31, 2022, is attached.
ALTERNATIVES CONSIDERED
1. The sten Report as orday 1,202 receive and file the City of Laguna Niguel
FISCAL REVIEW
There is no fiscal impact as a result of this action.
CONCLUSION
The City Investment Policy requires the submittal of a monthly Investment Report. Staff recommends that the City Council receive and file this Report.
Samara Retauran
Tamara S. Letourneau Eric Hendrickson
City Manager Finance Director
Attachments:
A. Monthly Investment Report as of May 31, 2022
ATTACHMENT A
Investment Report as of May 31, 2022
CITY OF LAGUNA NIGUEL
INVESTMENT REPORT
as of
May 31, 2022
TTY MANAGEI
Eric Hendrickson
FINANCE DIRECTOR
July 19, 2022
CITY OF LAGUNA NIGUEL
INVESTMENT REPORT
TABLE OF CONTENTS
Statement of Compliance/Non-Compliance 1
Report of Cash and Investments 2
LAIF Investment Reports 3-5
OCIP Investment Reports 6-8
US Bank Statement 9-17
PARS Statement 18
City of Laguna Niguel
Statement of Compliance/Non-Compliance with the City's Investment Policy The undersigned officers of the City of Laguna Niguel hereby certify that:
As of May 31, 2022, the City was in compliance with the Investment Policy adopted at the July 20, 2021 Regular City Council Meeting.
Sufficient investment liquidity from cash and cash equivalents and anticipated revenues are available to meet the City's budgeted expenditure requirements for the next six months.
Jamasa Retousneau Erie Hendriber
Tamara S. Letourneau Eric Hendrickson
City Manager Finance Director
City of Laguna Niguel
Summary of Cash and Investments
5/31/22
Settlement Maturity Coupon Percent of Market
Description Date Date Rate Yield Cost Portfolio Value
Petty Cash/Change Drawers $ 2,600.00 0.00% $ 2,600.00
US Bank Checking Account $ 2,357,356.69 3.55% $ 2,357,356.69 US Bank Money Market Variable 24,481.76 0.04% $ 24,481.76 Local Agency Investment Fund 0.684% $ 7,813,104.20 11.77% $ 7,725,234.42 Orange County Investment Pool 0.618% $ 30,083,114.89 45.30% $ 30,083,114.89 Federal Home Loan Mortgage Corporation: 7.81%
3134GV5R5 7/15/2020 7/15/2024 0.570% 0.590% 1,000,000.00 957,190.00 3137EAEPO 1/29/2021 2/12/2025 1.500% 1.550% 4,188,112.71 3,870,440.00 Federal National Mortgage Association: 13.02%
3135G05X7 1/29/2021 8/25/2025 0.375% .0.400% 8,645,922.29 8,052,285.00 Federal Home Loan Banks: 18.51%
3133ENVD9 4/26/2022 • 4/26/2027 2.875% 2.870% 4,000,000.00 4,001,320.00 3130AJTF6 7/14/2020 7/14/2025 0.740% 0.790% 1,000,000.00 937,780.00 3130AJTX7 7/21/2020 7/21/2025 0.720% 0.760% 625,000.00 589,893.75 3130AMFS6 8/12/2021 6/12/2026 0.750% 0.820% 2,001,415.36 1,835,540.00 3130A8XY4 10/18/2021 9/11/2026 1.875% 1.960% 4,665,690.00 4,311,495.00 Total City Investments Including Investment Pools $ 66,406,797.90 100.00% 3 64,748,731.51 Restricted for Specific Use
PARS 115 Pension Trust 0.310% $1,000,000.00 $ 954,074.00 Average weighted maturity of Investments, excluding Investment Pools: 1,317 days Average weighted maturity of Investments, including Investment Pools: 537 days iverage weighted yield of Investments, excluding Investment Pool 0.865% verage weighted yield of Investments, including Investment Pools 0.727% * Market value of City investments is provided by US Bank NOTE: Market value disclosure is for informational purposes only. City policy is to hold all investments to maturity; therefore, any unrealized gain or loss reflected between the cost and market value of an investment will not be realized. 2 PMIA/LAIF Performance Report
as of 06/10/22
PMIA Average Monthly Quarterly Performance
Effective Yields) Quarter Ended 03/31/22
May 0.684 0.32
Apr 0.523 0.00000875657176851
Mar 0.365 0.988753538
022%
PMIA Average Life! 310
Pooled Money Investment Account
Monthly Portfolio Composition (.)
05/31/22
$225.9 billion
Corporate
Commercial Bonds
0.20%
Paper Loans
Time
5.33%
Deposits -0.37%
1.87%
Certificates of
Deposit/Bank Notes
6.13%
Agencies
19.01%
Treasuries
67.09%
Chart does not include $5,098,000.00 in mortgages, which equates to 0.002%. Percentages may not total 100% due to rounding.
Daily rates are now avallable here. View PMIA Daily Rates lotes: The apportionment rate includes interest earned on the CaPERS Supplemental Pension Payme ursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Publ Utility Code 3288 (a).
Source:
(2) State of California, Office of the Treasurer
(2) State of Calfiornla, Office of the Controller
3 State of California
PMIA Pooled Money Investment Account
POUL Market Valuation
5/31/2022
Carrying Cost Plus
Description Accrued Interest Purch. Fair Value Accrued Interest United States Treasury:
Bills $ 49,529,238,397.29 49,488.826,500.00 NA
Notes $ 102,013,123,817.00 $ 100.021.677,500.00 $ 192.901.284.00 Federal Agency:
SBA 315,292,168.08 $ 315,360,436.72 133,146.58
MBS-REMICS 5,097,672.07 5,208.914.66 23.114.60
Debentures $ 9,339,541,608.83 9,207,339,900.00 $ 10.573.977.25 Debentures FR $
1,100,000.000.00 1,085,400,000.00 $ 2.001.417.00
Debentures CL $
Discount Notes 29.979,361.770.70 29,960,407,000.00 NA
Supranational Debentures 2.215,238,528.33 2.151.711,500.00 4,681,224.00 Supranational Debentures FR $ $ $
CDs and YCDs FR $
Bank Notes •• $
CDs and YCDs 13.835,000,000.00 13,818,806,856.78 21.271.062.51 Commercial Paper 12,043.520,242.90 12,049,514.547.31 NA Corporate:
Bonds FR 431,129,370.00 2.562,883-48
Bonds 448.806,188.80 $
Repurchase Agreements : :
Reverse Repurchase $ $
Time Deposits 4.224,000.000.00 4,224,000,000.00 NA
PMIA & GF Loans 825,022.000.00 $ B25,022,000.00 NA
TOTAL $ 225,873.242,394.00 | 5 223,584,404,525.47 S 234.748.109.42 Fair Value Including Accrued Interest $ 223,819,152,634.89 Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). 4 6/1/22,4:33 PM LAIF Regular Monthly Statement
California State Treasurer
Fiona Ma, CPA
Local Agency Investment Fund June 01, 2022
P.O. Box 942809
Sacramento, CA 94209-0001 LAIF Home
(916) 653-3001 PMIA Average Monthly Yields
CITY OF LAGUNA NIGUEL
TREASURER
30111 CROWN VALLEY PARK WAY
LAGUNA NIGUEL, CA 92677
Tran Type Definitions
Account Number:
May 2022 Statement
Web
Elective Transaction Type Confirm Confirm
Date Number Number Authorized Caller Amount
5/4/2022 5/4/2022 RD 1704039 KRISTIN FORIER 3,000,000.00 5/25/2022 5/24/2022 1705073 KRISTIN FORIER 3,100,000.00 Account Summary
Total Deposit: 6,100,000.00 Beginning Balance: 1,713,104.20 Total Withdrawal: 0.00 Ending Balance: 7,813,104.20
COUNTY OF ORANGE
OFFICE OF THE TREASURER-TAX COLLECTOR •ORANGI COUNTY
Shari L. Freidenrich, CPA, CCMT, CPFA, ACPFIM
P. O. BOX 4515
ALIFORNI SANTA ANA, CA 92702-4515
ocgov.com/ocinvestments
May 31, 2022
CITY OF LAGUNA NIGUEL
Attn: Eric Hendrickson, Finance Director
30111 Crown Valley Parkway
Laguna Niguel, CA 92677
Fund Number.
MAY 2022 STATEMENT
INVESTMENT BALANCE IN OCIP
Transactions
Transaction Transaction Description Authorized Signer Amount Date
05/02/2022 April 2022 Investment Admin Fee (1,434.73)
05/26/2022 February 2022 Interest Paid 10,120.41
Summary
Total Deposit: $ 10,120.41 Beginning Balance: $ 30,074,429.21 Total Withdrawal: $ (1,434.73) Ending Balance: $ 30,083,114.89
ACCRUED INVESTMENT INCOME
Description Amount
larch 2022 Interest Accrue $ 11,812.45
pril 2022 Interest Accrue 13,528.23
Total 25,340.68
May 2022 Interest to be accrued in June 2022 $ 16,316.13 6 OFFICE OF THE TREASURER-TAX COLLECTOR SANGE COUNT
SHARIL. FREIDENRICH, CPA, CCMT, CPFA, ACPFIM
P.O. Box 4515
CALIFORATE SANTA ANA, CA 92702-4515
octreasurer.com/publicfunds
ORANGE COUNTY INVESTMENT POOL
APPORTIONMENT YIELDS & BASIS POINT FEES
Monthly Apportionment Monthly Apportionment Charged Basis Actual Basis FY 21/22 Date Year Gross Yield Net Yield Point Fees Point Fees July 2021 0.593% 0.535% 5.8
YTD August 2021 0.575% 0.517% 5.8
GROSS September 2021 0.562% 0.504% 5.8
YIELD October 2021 0.514% 0.456% 5.8
0.510% November 2021 0.515% 0.457% 5.8
December 2021 0.396% 0.338% 5.8 Not Yet
January 2022 0.402% 0.344% 5.8 Available
February 2022 0.439% 0.381% 5.8
YTD NET March 2022 0.462% 0.404% 5.8
YIELD April 2022 0.547% 0.489% 5.8
0.456% May 2022 0.638% 0.618% 2.0
June 2022
Monthly Apportionment Monthly Apportionment Charged Basis Actual Basis FY 20/21 Date Year Gross Yield Net Yield Point Fees Point Fees July 2020 1.223% 1.164% 5.9
YTD August 2020 1.144% 1.085% 5.9
GROSS September 2020 1.060% 1.001% 5.9
YIELD October 2020 0.956% 0.897% 5.9
0.802% November 2020 0.899% 0.840% 5.9
December 2020 0.767% 0.708% 5.9 Not Yet
January 2021 0.694% 0.635% 5.9 Available
February 2021 0.803% 0.744% 5.9
YTD NET March 2021 0.624% 0.565% 5.9
YIELD April 2021 0.539% 0.480%
0.747% May 2021 0.562% 0.503% 5.9
June 2021 0.598% 0.588% 1.0
Year Monthly Apportionment Monthly Apportionment Charged Basis Actual Basis FY 19/20 Date Gross Yield Net Yield Point Fees Point Fees July 2019 2.335% 2.276% 5.9
YTD August 2019 2.283% 2.224% 5.9
GROSS September 2019 2.295% 2.236% 5.9
YIELD October 2019 2.177% 2.118% 5.9
1.868% November 2019 2.073% 2.014% 5.9
December 2019 1.940% 1.881% 5.9 Not Yet
January 2020 1.968% 1.909% 5.9 Available
February 2020 2.003% 1.944% 5.9
YTD NET March 2020 1.800% 1.741% 5.9
YIELD April 2020 1.479% 1.420% 5.9
1.810% May 2020 1.276% 1.217% 5.9
June 2020 1.261% 1.216% 4.5
Mission: Ensure safe and timely receipt, deposit, collection and investment of public funds. 7 ORANGE COUNTY TREASURER - TAX COLLECTOR
BY INVESTMENT TYPE AT MARKET VALUE - By Percentage Holdings May 31, 2022
100%
90%
80% -
70%
60%
Orange County Investment Pool Orange County Educational Investment Pool John Wayne Airport Investment Fund Orange County Investment Pool Orange County Educational investment Pool John Wayne Airport Investment Fund In Thousands In Thousands In Thousands
LU. S. TREASURIES 3,337,343 56.38% U.S. TREASURIES 3,510,859 55,16% EU. S. TREASURIES 37,469 70.17% MU.S. GOVERNMENT AGENCIES 1,805,976 30.51% U.S. GOVERNMENT AGENCIES 2,043,004 32.10% MU. S. GOVERNMENT AGENCIES 14,981 28.05% MONEY MARKET MUTUAL FUNDS 492,927 8.33% MONEY MARKET MUTUAL FUNDS 497,495 7.82% MONEY MARKET MUTUAL FUNDS 950 1.78% MUNICIPAL DEBT 247,703 4.18% MUNICIPAL DEBT 274,081 4.31% I LOCAL AGENCY INVESTMENT FUND 35.346 0.60% •LOCAL AGENCY INVESTMENT FUND 39.111 0.61%
5.919.295 100.00% 6,364,550 100.00% EA 53.400 100.00%
18938
00--M -UC-UU -152-04
0220657-00-04007-04
usbank
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: May 1, 2022 to May 31, 2022
MARKET VALUE SUMMARY
Current Period
05/01/22 to 05/31/22
Change: 116,667.95
Beginning Market Value $24,463,757.56 $30,000,000
Taxable Interest 89.45 $25,000,000
Change in Investment Value 116,578.50 $20,000,000
Ending Market Value SZ4,580,425.51 $15,000,000
$10,000,000
$5,000,000
Beginning Ending
MV
$24,463,757.56 $24,580,425.51
10 $324,751.39 100.00 $24,580,425.51 Total Market Value 324,600.00 99.90 24,555,943.75 Taxable Bonds
151.39 0.10 24,481.76 Cash & Equivalents
Annual Income Total Market Value Assets
Estimated % of Current Period
ASSET SUMMARY
May 1, 2022 to May 31, 2022 ACCOUNT NUMBER:
CITY OF LAGUNA NIGUEL
usbank
0220657-00-04007-04
00--M -UG-UU -152-04
18938
11 $89.45 Total Current Period Income
89.45 Taxable Interest
Current Period
Income Received
INCOME SUMMARY
May 1, 2022 to May 31, 2022 ACCOUNT NUMBER:
CITY OF LAGUNA NIGUEL
usbank
D0.20857-U0-052-04
18938
12 $0.00 Ending Cash 05/31/2022
-89.45 Net Money Market Activity
89.45 Taxable Interest
$0.00 Beginning Cash 05/01/2022
Cash
CASH SUMMARY
May 1, 2022 to May 31, 2022 ACCOUNT NUMBER:
CITY OF LAGUNA NIGUEL
usbank
00.2067-0-04057-04
18938
18938
02067-00407-04
usbank
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: May 1, 2022 to May 31, 2022
ASSET DETAIL
Security Description Percent
Unrealized of Total Estimated Estimated
Shares/Face Amt Price Market Value Tax Cost Gain/Loss Portfolio Annual Income Current Yield Cash & Equivalents
Cash/Money Market
First Amerlcan Govemment - 31846V567
Obllg Fd CIZ
#3676
24,481.760 1.0000 24,481.76 24,481.76 0.00 0.1 151.39 0.62 Total Cash/Money Market $24,481.76 $24,481.76 $0.00 0.1 $151.39 Total Cash & Equivalents $24,481.76 $24,481.76 $0.00 0.1 $151.39 Taxable Bonds
US Government Issues
FHLMC - 3137EAEPO
1.500 02/12/2025
4,000,000.000 96.7610 3,870,440.00 4,18B,112.71 -317,672.71 15.7 60,000.00 1.55 FHLMC MTN - 3134GV5R5
0.570 07/15/2024
1,000,000.000 95.7190 957,190.00 1,000,000.00 42,810.00 3.9 5,700.00 0.59 FNMA - 3135G05X7
0.375 08/25/2025
8,700,000.000 92.5550 8,052,285.00 8,645,922.29 -593,637.29 32.8 32,625.00 0.40 Federal Farm Credit Bks - 3133ENVD9
2.875 04/26/2027
4,000,000.000 100.0330 4,001,320.00 3,995,360.00 5,960.00 16.3 115,000.00 2.87 Federal Home Loan Bks - 3130AJTX7
0.720 07/21/2025
625,000.000 94.3830 589,893.75 625,000.00 -35,106.25 2.4 4,500.00 0.76 18938
00--M -UC-UU -152-04
0220657-00-04007-04
usbank
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: May 1, 2022 to May 31, 2022
ASSET DETAIL (continued)
Security Description Percent
Unrealized of Total Estimated Estimated
Shares/Face Amt Price Market Value Tax Cost Gain/Loss Portfolio Annual Income Current Yield Federal Home Loan Bks - 3130AJTF6
0.740 07/14/2025
1,000,000.000 93.7780 937,780.00 1,000,000.00 -62,220.00 3.8 7,400.00 0.79
0.780 0H022025n BKS - 3130AMFSG
2,000,000.000 91.7770 1,835,540.00 2,001,415.36 -165,875.36 7.5 15,000.00 0.82 1875 090m202an B - 3130А8XY4
4,500,000.000 95.8110 4,311,495.00 4,665,690.00 -354,195.00 17.5 B4,375.00 1.96 Total US Government Issues $24,555,943.75 $26,121,500.36 $1,565,556.61 99.9 $324,600.00 Total Taxable Bonds $24,555,943.75 $26,121,500.36 -$1,565,556.61 99.9 $324,600.00 Total Assets $24,580,425.51 $26,145,982.12 $1,565,556.61 100.0 $324,751.39 Estimated Current Yield 1.32
ASSET DETAIL MESSAGES
Time of trade execution and trading party (if not disclosed) will be provided upon request.
Esty at resent head already your men and they pride no guarant of has your yesters may am in then train investmen, radia, or a decion. The simates. 18938
00--M -UC-UU -152-04
0220857-00-04007-04
usbank
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: May 1, 2022 to May 31, 2022
TRANSACTION DETAIL
Date
Posted Activity Description Cash Tax Cost
Beginning Balance 05/01/2022 $0.00 $26,145,892.67
05/02/22 Asset Income Fist Am Gov Ob Fa CIZ 89.45
Interest From 4/1/22 To 4/30/22
Purchase Combined Purchases For The Perlod 5/ 1/22 - 5/31/22 Of -89.45 89.45 First Am Govt Ob Fd CIZ
Ending Balance 05/31/2022 $0.00 $26,145,982.12
18938
00--M -UC-UU -152-04
0220657-00-04007-04
usbank
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: May 1, 2022 to May 31, 2022
BOND SUMMARY
70%,
60%
50%
40%
30%
20%
10%
0%-
2022 2023 2024 2025 2026 2027
Par Value Percentage of
Market Value Category
MATURITY
2022 0.00 0.00
2023 0.00 0.00 0.00
2024 1,000,000.00 957,190.00 3.90
2025 14,325,000.00 13,450,398.75 54.78
2026 6,500,000.00 6,147,035.00 25.03
2027
4,000,000.00 4,001,320.00 16.29
Total of Category $25,825,000.00 $24,555,943.75 100.00
MOODY'S RATING
Aaa 24,825,000.00 23,598,753.75 96.10
NA 1,000,000.00 957,190.00 3.90
Total of Category $25,825,000.00 $24,555,943.75 100.00
18938
D022007004007-04
usbank
CITY OF LAGUNA NIGUEL
ACCOUNT NUMBER: May 1, 2022 to May 31, 2022
BOND SUMMARY (continued)
Percentage of
Par Value Market Value Category
S&P RATING
AA+ 24,825,000.00 23,598,753.75 96.10
N/A 1,000,000.00 957,190.00 3.90
Total of Category $25,825,000.00 $24,555,943.75 100.00
BOND SUMMARY MESSAGES
Data contained within this section excluded Mutual Funds, Exchange Traded Funds, and Closed-Ended Funds. -PARS
TRUSTED SOLUTIDNS. LASTING RESULTS.
Monthly Account Report for the Period
05/01/2022 to 05/31/2022
CITY OF LAGUNA NIGUEL
City of Laguna Niguel PARS PAPEBT
Plan Summary
Beginning Plan Value as of 05/01/2022 $951,606.36
Change in Plan Value $2,467.64
Ending Plan Value as of 05/31/2022 $954,074.00
Activity Summary by Source
Balance on Balance on
Source 05/01/2022 Contributions Earnings Expenses Distributions Transfers 05/31/2022 PENSION $951.606.36 $0.00 $2,947.67 S(480.03) $0.00 $0.00 5954,074.00 Totals $951,606.36 $0.00 $2,947.67 S(480.03) $0.00 $0.00 $954,074.00 Transactions for the Period
Source Date Description Amount
PENSION 05/26/2022 ASSET MGMT FEES S(281.78)
PENSION 05/27/2022 INTER-ACCOUNT TRANSFER IN $198.25
PENSION 05/27/2022 INTER-ACCOUNT TRANSFER OUT $(198.25) PENSION 05/27/2022 TRUST ADMINISTRATOR FEES $(198.25)
PENSION 05/31/2022 ACCOUNT GAINS/(LOSSES) $2,947.67
Investment Selection
Source Selected Investment
PENSION HighMark PLUS Moderately Conservative
Investment Objective
Selected Investment Description
lighMark PLUS Moderately he dual goals of the Moderately Conservative Strategy are current income and moderate capital appreciatio he major portion of the assets is committed to income-producing securities. Market fluctuations should b Investment Performance
Annualized Retur Inception
10-Years
PENSION 05/26/2020
4350 Von Karman Ave., Ste. 100, Newport Beach, CA 92660-2043 phone B00.540.6369 fax 949.250. 1250 www.pars.org 18