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HomeMy WebLinkAbout11-13-2014 IOC Agenda PacketCITY OF SAN LUIS OBISPO INVESTMENT OVERSIGHT COMMITTEE REGULAR QUARTERLY AGENDA November 13, 2014 1:00 PM Council Hearing Room 990 Palm Street San Luis Obispo, California MISSION: As set forth in the Investment Management Plan, this committee is responsible for reviewing the City’s portfolio on an ongoing basis to determine compliance with the City’s investment policies and for making recommendations to the City Treasurer (Director of Finance and Information Technology) regarding investment management practices. CALL TO ORDER: Finance & IT Director/Treasurer Padilla ROLL CALL: Mayor Marx; City Manager Lichtig; Assistant City Manager Codron; Finance & IT Director/Treasurer Padilla; Financial Operations Manager Vilma Warner; Steve Barasch, public member. OTHERS PRESENT: Al Eschenbach, Independent Auditor and ex-officio member; Jayson Schmitt, Chandler Investments; PUBLIC COMMENTS: At this time, the public is invited to address the Committee concerning items not on the agenda but are of interest to the public and within the subject matter jurisdiction of the Investment Advisory Committee. Time limit is three minutes. The Committee may not discuss or take action on issues that are not on the agenda other than to briefly respond to statements made or questions raised, or to ask staff to follow up on such issues. 1. Review of Investment Oversight Committee meeting minutes of August 14, 2014 and October 29, 2014 a. Recommend approval of the minutes 2. Presentation of the Quarterly Investment Report on Portfolio Performance a. Review and confirm investment policy compliance 3. Discussion regarding the use of local financial institutions as part of the City’s investment strategy Investment Oversight Committee Regular Quarterly Agenda for May 8, 2014 Page 2 a. Identify criteria for what represents a qualified local financial institution b. Determine objectives for using local financial institutions for deposits and investments. 4. Continue discussion of possible changes to the investment policy related to socially responsible investments (SRI) and consider major elements of such a policy a. Obtain committee member feedback on whether SRI investment strategy should be pursued b. Identify major tenets of an SRI strategy. 5. Review the Committee’s mission statement a. Discuss member roles and responsibilities 6. Introduction of staff from Public Financial Management (PFM), the proposed new Investment Advisor to the City 7. Items to be addressed at a future meeting 8. Adjournment _________________________________________________________________________ The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7107. Any writings or documents provide to a majority of the Committee regarding any item on this agenda will be made available for public inspection in the Administration Office located at 990 Palm Street, San Luis Obispo, during normal business hours. CITY OF SAN LUIS OBISPO INVESTMENT OVERSIGHT COMMITTEE MINUTES August 14, 2014 1:30 PM Conference Room #1, 919 Palm Street San Luis Obispo, California MISSION: As set forth in the Investment Management Plan, this committee is responsible for reviewing the City’s portfolio on an ongoing basis to determine compliance with the City’s investment policies and for making recommendations to the City Treasurer (Director of Finance and Information Technology) regarding investment management practices. CALL TO ORDER A meeting of the Investment Oversight Committee was called to order on Thursday, August 14, 2014, at 1:33 p.m. in Conference Room # 1, located at 919 Palm Street, San Luis Obispo, California, by Chairperson Padilla. ROLL CALL Committee Members Present: Committee Members Steve Barasch, Katie Lichtig, Vilma Warner, and Chairperson Wayne Padilla Committee Members Absent: Committee Members Jan Marx and Michael Codron Others Present: Jayson Schmitt, Chandler Investments (City’s Investment Advisor); Al Eschenbach*, Independent Auditor and ex-officio member; Heather Goodwin, Deputy City Clerk * Al Eschenbach arrived at 1:45 p.m. PUBLIC COMMENT There were no members of the public desiring to speak. Investment Oversight Committee Minutes - August 14, 2014 Page 2 1. APPROVAL OF MINUTES MOTION BY COMMITTEE MEMBER BARASCH, SECOND BY COMMITTEE MEMBER LICHTIG, CARRIED 4-0, to approve the Investment Oversight Committee Meeting minutes of May 8, 2014. 2. PRESENTATION OF THE QUARTERLY INVESTMENT REPORT AND PORTFOLIO PERFORMANCE City Treasurer Padilla distributed a revised Quarterly Investment Report and City Investment Advisor Schmitt reviewed the contents of the subject report and the portfolio’s performance and responded to inquiries from the floor and Committee. Jeffery Specht, questioned, and received clarification, that the State of California’s investment managers are responsible for the management of the Local Agency Investment Fund. In response to Committee inquiry, City Treasurer Padilla explained the components of the City’s self-managed investments, including cash, deposits with the Local Agency Investment Fund, money market accounts, and certificates of deposit. MOTION BY COMMITTEE MEMBER LICHTIG, SECOND BY COMMITTEE MEMBER WARNER, CARRIED 4-0, to confirm the Quarterly Investment Report, for the period ending June 30, 2014, is in compliance with the City’s Investment Policy. 3. CONTINUE DISCUSSION OF POSSIBLE CHANGES TO THE INVESTMENT POLICY INCLUDING THOSE TO ALLOW ADDITIONAL INVESTMENTS WITH HIGHER YIELDS City Investment Advisor Schmitt and City Treasurer Padilla discussed the possibility of amending the City’s Investment Policy to include investments with single “A” ratings which could produce higher yields and responded to Committee inquiries. Leslie Halls, questioned, and received clarification, that the City’s financial advisor has analyzed the City’s existing debt and determined that potential savings are not yet adequate enough to justify refinancing at this time. Committee Member Barasch distributed hard copies of a document entitled “City of San Luis Obispo, Statement of Net Position as of May 31, 2014.” A hard copy of Committee Member Barasch’s document is on file with the City. The Committee recommended that the City Treasurer analyze the City’s liquidity requirements in comparison to actual liquid investments to ensure that the portfolio is not overly invested in cash deposits. Following discussion, MOTION BY COMMITTEE MEMBER BARASCH, SECOND BY COMMITTEE MEMBER LICHTIG, CARRIED 4-0, to amend the City’s Investment Policy to allow investment in single “A” rated utility and industrial corporate investments. Investment Oversight Committee Minutes - August 14, 2014 Page 3 4. CONTINUE DISCUSSION OF POSSIBLE CHANGES TO THE INVESTMENT POLICY RELATED TO SOCIALLY RESPONSIBLE INVESTMENTS AND CONSIDER MAJOR ELEMENTS OF SUCH A POLICY City Investment Advisor Schmitt and City Treasurer Padilla discussed the possibility of amending the City’s Investment Policy as it relates to Socially Responsible Investments and responded to Committee inquires. Leslie Halls, voiced concerns related to the implementation of a Socially Responsible Investment Policy; opined that the City should focus on obtaining the highest yield on investment. Matt Kokkonen, expressed concerns related to a Socially Responsible Investment Policy. Keith Gurnee, opined that the City’s should focus on maximizing its yields on investments and should not move forward in drafting a Socially Responsible Investment Policy. Jeffery Specht, questioned, and received clarification, that the City Treasurer is responsible for ensuring the balancing of the City’s budget and that Council is working towards addressing long-term pension liabilities. MOTION BY COMMITTEE MEMBER BARASCH to consider adopting a broad Socially Responsible Investment Plan and to request that specific policies be developed as to guide to the selection of investments. The motion died for lack of a second. Following discussion, the Committee agreed that it desires to continue discussion as it relates to a Socially Responsible Investment Policy and requested that the matter be agendized for a future meeting. It was noted that future discussion should focus on the tenants of a Socially Responsible Investment Policy and providing direction to the City Treasurer and City Investment Advisor to aid in the development of such a draft policy. 5. DISCUSSION REGARDING THE USE OF LOCAL FINANCIAL INSTITUTIONS FOR PUBLIC AGENCY DEPOSITS AND INVESTMENTS Market Area President Filippin and Senior Client Relationship Manager Summer, representing Heritage Oaks Bank, discussed the use of local financial institutions for public agency deposits and investments. In response to Committee inquiry, Mr. Filippin spoke on his bank’s ability and willingness to provide public agency accounts and the required collateralization; advised that he is not aware of other banks’ ability or desire to offer comparable services. Under committee direction, City Treasurer Padilla advised that staff will research other cities’ investment policies to determine if definitions and/or criteria exist related to the utilization of local financial institutions for public agency deposits and investments. Investment Oversight Committee Minutes - August 14, 2014 Page 4 6. ITEMS TO BE CONSIDERED FOR THE NEXT MEETING As noted above, further consideration of a Socially Responsible Investment Policy and other cities’ definitions and criteria for use of Local Financial Institutions should be agendized for a future meeting. ADJOURNMENT The meeting adjourned at 3:39 p.m. Heather Goodwin Deputy City Clerk Approved: XX/XX/14 CITY OF SAN LUIS OBISPO INVESTMENT OVERSIGHT COMMITTEE MINUTES October 29, 2014 1:30 PM Council Hearing Room, 990 Palm Street San Luis Obispo, California MISSION: As set forth in the Investment Management Plan, this committee is responsible for reviewing the City’s portfolio on an ongoing basis to determine compliance with the City’s investment policies and for making recommendations to the City Treasurer (Director of Finance and Information Technology) regarding investment management practices. CALL TO ORDER A special meeting of the Investment Oversight Committee was called to order on Wednesday, October 29, 2014, at 10:03 a.m. in the Council Hearing Room, located at 919 Palm Street, San Luis Obispo, California, by Chairperson Padilla. ROLL CALL Committee Members Present: Committee Members Steve Barasch, Michael Codron, Katie Lichtig, Jan Marx, Vilma Warner, and Chairperson Wayne Padilla Committee Members Absent: None Others Present: Al Eschenbach, Independent Auditor and ex-officio member; Anthony Mejia, City Clerk PUBLIC COMMENT There were no members of the public desiring to speak. Investment Oversight Committee Minutes – October 29, 2014 Page 2 1. Investment Advisor Services Request for Proposals Finance and Information Technology Director/City Treasurer Padilla reviewed the contents of the agenda report; advised that a subcommittee of the Investment Oversight Committee reviewed each submitted proposal and recommends that the full Committee endorse the selection of Public Financial Management (PFM) for investment advisor services; explained that PFM provided a cost competitive proposal and that the firm may provide added value due to having its own trading desk and increased buying power; responded to committee inquiries. Committee Member Barasch noted that PFM has enhanced research capabilities and its experience level is deeper than that of other firms; noted that PFM may be better able to assist in implementing a Socially Responsible Investment Strategy. Leslie Halls, San Luis Obispo, stated that she is encouraged that the City is considering new investment advisor services, noting that a new firm and fresh ideas may result in improved yields on investments. Following discussion, by unanimous consensus, the Committee endorsed the selection of PFM for investment advisor services and to forward such recommendation for Council consideration. ADJOURNMENT The meeting adjourned at 10:30 a.m. Anthony J. Mejia City Clerk Approved: XX/XX/14 CHANDLER ASSET MANAGEMENT 6225 Lusk Blvd | San Diego, CA 92121 | Phone 800.317.4747 | Fax 858.546.3741 | www.chandlerasset.com Investment Report Period Ending September 30, 2014 City of San Luis Obispo Table of Contents Economic Update Account Profile Consolidated Information Portfolio Holdings SECTION 1 SECTION 2 SECTION 3 SECTION 4 1 SECTION 1 Economic Update 2 Duringthepastthreemonths,theyieldcurvehasflattenedeven as theFedhas been taperingits purchases of long-termTreasurybonds.Marketparticipantshavereacted to mixeddomesticand globaleconomicdata,as well as geopoliticaltensions.Theseconcernshavekeptdownward pressure on longer yields. Economic Update    Theeconomyremains on aslowgrowthtrajectory,fueled by jobgrowth.In thethirdquarter,payrolls rose by 224,000 per month on average,followingaveragegrowth of 267,000 per monthduringthe secondquarter.TheSeptemberemploymentreportwasbetterthanexpected(aspayrollsrose by 248,000versusexpectations of 215,000),andAugustandJulypayrollswererevisedhigher by a combined69,000.Theunemploymentratedeclined to 5.9%in Septemberfrom6.1%in August,but wagegrowthandthelaborparticipationratecontinued to be weak.Themanufacturingsector continues to showstrength,withtheISMmanufacturingindexremainingwellabove50.0 in September at 58.6. Consumer spending also remains healthy, and ongoing job growth should support thistrend.Thehousingsector,on theotherhand,hasshownthemostvolatilityandcontinues to lag behind other sectors of the economy. In September,theFederalOpenMarketCommittee(FOMC)leftpolicyratesunchangedand continued to reduceassetpurchases,as expected.Overall,theFed'sstatementlanguagesuggested amodestuptick to theiroverallview of theeconomy,butthemessageremaineddovish.TheFed notedinflation is runningbelowtarget,signalingtheirongoingcapacity to keepinterestrateslow. Morerecently,thestrongerthanexpectedSeptemberemploymentreportgiveshawkishFed membersacompellingargumentforraisinginterestratesearlierthanmarketparticipantsmay be expecting.However,we believethemajority of FOMCvotingmembersaregenerallydovishandwill be reluctant to raiseratesbeforetheeconomy is on asustainablegrowthtrajectory.At thispoint,we continue to believetheFedisn’tlikely to startraisingratesuntilthesecondhalf of2015.However,the Fedmaymakesomechanges to itsnextpolicystatement,such as removingthe"considerable period"language.TheFedremains on course to completetheunwinding of quantitativeeasingthis month and the next FOMC meeting is scheduled for October 28-29. 3 Employment Source: U.S. Department of Labor 0 50 100 150 200 250 300 350 (0 0 0 ' s ) Non-farm Payroll (000's) 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% Unemployment Rate TheSeptemberemploymentreportwasstrongerthanexpected as nonfarmpayrollsrose by 248,000,following gains of 180,000and243,000 in AugustandJuly,respectively.TheconsensusforecastforSeptemberwas 215,000.ThenetrevisionsforAugustandJulywere+69,000.Forthethirdquarter,payrollsrose224,000 per month,on average,compared to averagegrowth of 267,000 per monthduringthesecondquarter.Private payrollsrose by 236,000 in Septemberwhilegovernmentjobsrose by 12,000.Theunemploymentrate declined to 5.9%from6.1%,buttheparticipationratealsotickeddown to 62.7%from62.8%.Wagegrowth was flat in September, missing expectations for a 0.2% gain. 4 Consumer Source: U.S. Department of Commerce Source: Federal Reserve 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Retail Sales Y-O-Y % Change 0 5 10 15 20 25 30 D o l l a r ( $ ) B i l l i o n s Consumer Credit In September,RetailSalesrose4.3%on ayear-over-yearbasisversusagain of 5.0%in August.On amonth- over-monthbasis,RetailSalesdeclined0.3%in September,whichwasweakerthanexpectations of -0.1%. Autoandgasolinesaleswereadrag on theSeptemberfigure.Overall,consumerspendingappearshealthy butnotrobust.ConsumerCreditrose by $13.5billion in Augustversusagain of $21.6billion in July.Thegain continued to be fueled by nonrevolvingcredit(studentandautoloans)whichrose$13.7billion in August,while revolving credit (credit cards) declined by $0.2 billion. 5 Broad Measures Source: US Department of Commerce Source: The Conference Board 0 100 200 300 400 500 600 700 800 (0 0 0 ' s ) Starts -Single Family Housing -0.4% -0.2% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% Leading Economic Indicators Recenthousingdatahas been volatile.Single-familyhousingstartsrose1.1%in Septemberafterdeclining 2.0% in August. Multifamily starts rose 16.7% in September after falling 28.7% in August. The index of Leading EconomicIndicators(LEI)rose0.2%in Augustfollowinga1.1%gain in July.Overall,theLEIindexcontinues to point to modest economic growth. 6 Manufacturing Source: Institute for Supply Management Source: Federal Reserve 45.0 47.5 50.0 52.5 55.0 57.5 60.0 Institute of Supply Management Purchasing Manager Index Expanding Contracting 75.5% 76.0% 76.5% 77.0% 77.5% 78.0% 78.5% 79.0% 79.5% Capacity Utilization DuringSeptember,theISMManufacturingIndexdecreased to 56.6from59.0 in August.Thedecline wasdisappointing,buttheindexcontinues to signalongoinggrowth in themanufacturingsector.A readingabove50.0 is viewed as expansionary in themanufacturingsector,whileareadingbelow 50.0suggestscontraction.CapacityUtilization,which is productiondivided by capacity,increased to 79.3%in Septemberfrom78.7%in August.TheCapacityUtilizationrateremainsbelowthelong-run average of 80.1% (1972-2013). 7 Inflation Source: US Department of Labor 0.5% 1.0% 1.5% 2.0% 2.5% CPI Y-O-Y % Change 0.5% 1.0% 1.5% 2.0% 2.5% Core CPI Y-O-Y % Change In September,overallCPIinflationwasunchanged at 1.7%on ayear-over-yearbasis.Theyear-over-yearCore CPI (CPI less food and energy) was also unchanged at 1.7% in September. 8 GDP Source: U.S. Department of Commerce -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% GDP Qtrly % Change RealannualizedGDPgrowthforthesecondquarter of2014 was4.6%,according to thefinalrevision,up from thepriorestimate of 4.2%.Secondquartergrowthwas in linewiththeconsensusforecast.An upwardrevision in nonresidentialinvestmentspendingwastheprimaryfactorforthechange.FirstquarterGDPdeclined2.1%, largely due to unfavorable weather. 9 Theyield on thetwo-yearTreasurynoteincreased by about8basispoints in September,followingamodest decline in August.Economicdatawasfairlystrong in September.Theunwinding of quantitativeeasing by the FederalReservealongwiththeanticipation of apotentialfedfundsratehikenextyearhavealsoputupward pressure on rates, but this has been somewhat offset by geopolitical tensions and sluggish economic growth in Europe. Interest Rates Source: Bloomberg Yield on the Two-Year Note September 2012 through September 2014 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 10 Duringthepastthreemonths,theyieldcurvehasflattenedeven as theFedhas been taperingitspurchases of long-termTreasurybonds.Marketparticipantshavereacted to mixeddomesticandglobaleconomicdata as well as geopolitical tensions. These concerns have kept downward pressure on longer yields. Yield Curves Source: Bloomberg June 30, 2014andSeptember 30, 2014 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 6/30/14 9/30/14 11 SECTION 2 Account Profile 12 Chandler Asset Management Performance Objectives Strategy Investment Objectives Objectives The investment objectives of the City of San Luis Obispo are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all operating requirements; and third, to earn a commensurate rate of return consistent with the constraints imposed by the safety and liquidity objectives. The performance objective for the portfolio is to earn a total rate of return over a market cycle that equals or exceeds the market index, the BofA Merrill Lynch Index of 0-5 Treasury securities. In order to achieve this objective, the portfolio invests in high-quality money market instruments, US Tre asury securities, Agency securities, and high-grade corporate securities, with a maximum maturity of five years. 13 Compliance Category Standard Comment Treasury Bills and Notes No Limitations Complies Gov't. Sponsored EnterprisesAAA rated GSEs only Complies Commercial Paper ≥ A-1/P1/F1 rated; 25% maximum; 5% per issuer; <270 days maturity Complies Corporate Obligations ≥ Aa3/AA- by one rating organization; 30% maximum; 5% per issuer Complies Banker’s Acceptances 40% maximum; 5% per issuer; <180 days maturity Complies Repurchase Agreements Not used by investment adviser Complies Local Gov't. Investment Pools Not used by investment adviser Complies Neogtiable CDs 30% maximum; 5% per issuer Complies Time Deposits Not used by investment adviser Complies Money Market Funds AAA/Aaa rated; no-load funds only; 20% maximum; 10% per issuer Complies Inverse floaters, range notes Prohibited Complies Interest only strips Prohibited Complies Zero interest accruals Prohibited Complies % maturing less than 90 days 5% minimum Complies Maximum maturity of corporate 5 years Complies Maximum maturity 10 years; 10% maximum of portfolio in Treasury and GSE obligations with maturity > 5 years Complies City of San Luis Obispo September 30, 2014 COMPLIANCE WITH INVESTMENT POLICY Assets managed by Chandler Asset Management are in full compliance with California State law and with the City's investment management plan. 14 Account Profile Total Market Value 45,285,705 45,236,180 Modified Duration 2.15 1.85 1.86 Average Quality**AAA AA+/Aaa AA+/Aaa Average Market Yield 0.75 %0.69 %0.56 % Average Purchase Yield n/a 1.15 %1.21 % Benchmark*Portfolio Portfolio Average Maturity (yrs)2.24 1.90 1.91 * 0-5 yr Treasury ** Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively. City of San Luis Obispo 09/30/2014 06/30/2014 Portfolio Characteristics 15 15 Sector Distribution City of San Luis Obispo September 30, 2014 June 30, 2014 16 16 Issuers 17 17 Quality Distribution City of San Luis Obispo 6/30/14 2.9 %97.1 %0.0 %0.0 %0.0 % 9/30/14 5.9 %94.1 %0.0 %0.0 %0.0 % Source: S&P Ratings AAA AA A <A NR September 30, 2014 vs. June 30, 2014 6/30/149/30/14 18 18 Duration Distribution City of San Luis Obispo Portfolio Compared to the Benchmark as of September 30, 2014 Benchmark*7.0 %6.2 %11.5 %24.3 %21.5 %16.6 %12.8 %0.0 % Portfolio 7.8 %5.9 %11.0 %35.1 %25.6 %8.3 %6.3 %0.0 % 0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ * 0-5 yr Treasury 19 19 Investment Performance 0-5 yr Treasury -0.04 %0.53 %0.27 %0.53 %1.38 %N/A 1.99 % City of San Luis Obispo 0.01 %0.70 %0.43 %0.73 %1.59 %N/A 2.37 % Annualized 3 months 12 months 2 years 3 years 5 years 10 years Since Inception Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. City of San Luis Obispo Period Ending September 30, 2014 Total Rate of Return Annualized Since Inception May 31, 2008 20 20 Account Profile Total Market Value 38,412,645 42,379,360 Modified Duration 0.04 0.05 Average Quality AA+/Aaa AA+/Aaa Average Market Yield 0.19 %0.21 % Average Purchase Yield 0.43 %0.42 % Portfolio Portfolio Average Maturity (yrs)0.05 0.06 City of San Luis Obispo Internal 09/30/2014 06/30/2014 Portfolio Characteristics 21 21 Sector Distribution City of San Luis Obispo Internal September 30, 2014 June 30, 2014 22 22 Issuers 23 23 SECTION 3 Consolidated Information 24 24 Compliance Category Standard Comment Treasury Bills and Notes No Limitations Complies Gov't. Sponsored EnterprisesAAA rated GSEs only Complies Commercial Paper ≥ A-1/P1/F1 rated; 25% maximum; 5% per issuer; <270 days maturity Complies Corporate Obligations ≥ Aa3/AA- by one rating organization; 30% maximum; 5% per issuer Complies Banker’s Acceptances 40% maximum; 5% per issuer; <180 days maturity Complies Repurchase Agreements Not used by investment adviser Complies Local Gov't. Investment Pools Not used by investment adviser Complies Negotiable CDs 30% maximum; 5% per issuer Complies Time Deposits Not used by investment adviser Complies Money Market Funds AAA/Aaa rated; no-load funds only; 20% maximum; 10% per issuer Complies Inverse floaters, range notes Prohibited Complies Interest only strips Prohibited Complies Zero interest accruals Prohibited Complies One-Year Liquidity Constraint Minimum of 20% of the portfolio must be invested in securities maturing in one year Complies Operating Budget Constraint Minimum 25% of budgeted operating expenditures ($21.4 Million) in short-term investments (90 days or less) Complies Maximum maturity of corporate 5 years Complies Maximum maturity 10 years; 10% maximum of portfolio in Treasury and GSE obligations with maturity > 5 years Complies Objectives Safety, Liquidity & Yield Complies City of San Luis Obispo Consolidated September 30, 2014 COMPLIANCE WITH INVESTMENT POLICY This portfolio is a consolidation of assets managed by Chandler Asset Management and assets managed internally by Client. Chandler relies on Client to provide accurate information for reporting assets and producing this compliance statement. 25 25 Account Profile Total Market Value 83,698,350 87,615,539 Modified Duration 1.02 0.99 Average Quality AA+/Aaa AA+/Aaa Average Market Yield 0.46 %0.39 % Average Purchase Yield 0.82 % 0.83 % Portfolio Portfolio Average Maturity (yrs)1.05 1.01 City of San Luis Obispo Consolidated 09/30/2014 06/30/2014 Portfolio Characteristics 26 26 Sector Distribution City of San Luis Obispo Consolidated September 30, 2014 June 30, 2014 27 27 Issuers 28 SECTION 3 Portfolio Holdings 29 Chandler Asset Management - CONFIDENTIAL Execution Time: 10/31/2014 11:22:27 AM 31331J6C2 FFCB Note 2.35% Due 12/22/2015 580,000.00 03/28/2011 2.27 % 582,099.60 582,099.60 102.31 0.46 % 593,378.28 3,748.25 0.71 % 11,278.68 Aaa / AA+ AAA 1.23 1.21 3133XXP43 FHLB Note 3.125% Due 3/11/2016 965,000.00 08/10/2011 1.11 % 1,051,449.53 1,051,449.53 103.78 0.50 % 1,001,469.28 1,675.35 1.20 % (49,980.25) Aaa / AA+ AAA 1.45 1.42 3133EAJU3 FFCB Note 1.05% Due 3/28/2016 924,000.00 09/14/2012 0.53 % 940,879.28 940,879.28 100.86 0.47 % 931,924.22 80.86 1.11 % (8,955.06) Aaa / AA+ AAA 1.49 1.48 31331J2S1 FFCB Note 1.5% Due 11/16/2015 402,000.00 03/25/2011 2.20 % 389,640.91 389,640.91 101.37 0.28 % 407,521.07 2,261.25 0.49 % 17,880.16 Aaa / AA+ AAA 1.13 1.12 313380L96 FHLB Note 0.5% Due 11/20/2015 700,000.00 06/27/2013 0.53 % 699,447.00 699,447.00 100.27 0.27 % 701,862.00 1,273.61 0.84 % 2,415.00 Aaa / AA+ AAA 1.14 1.13 313370TW8 FHLB Note 2% Due 9/9/2016 280,000.00 10/24/2013 0.67 % 290,550.40 290,550.40 102.61 0.64 % 287,314.72 342.22 0.34 % (3,235.68) Aaa / AA+ AAA 1.95 1.91 3135G0ES8 FNMA Note 1.375% Due 11/15/2016 985,000.00 03/14/2012 1.21 % 992,545.10 992,545.10 101.49 0.67 % 999,709.01 5,116.53 1.20 % 7,163.91 Aaa / AA+ AAA 2.13 2.08 3135G0VA8 FNMA Note 0.5% Due 3/30/2016 950,000.00 03/27/2013 0.45 % 951,434.50 951,434.50 100.08 0.45 % 950,726.75 13.19 1.14 % (707.75) Aaa / AA+ AAA 1.50 1.49 313373SZ6 FHLB Note 2.125% Due 6/10/2016 1,000,000.00 06/20/2011 1.84 % 1,013,460.00 1,013,460.00 102.65 0.55 % 1,026,540.00 6,552.08 1.23 % 13,080.00 Aaa / AA+ AAA 1.70 1.66 3133834R9 FHLB Note 0.375% Due 6/24/2016 700,000.00 06/27/2013 0.77 % 691,817.00 691,817.00 99.80 0.49 % 698,566.40 707.29 0.84 % 6,749.40 Aaa / AA+ AAA 1.73 1.72 3137EACH0 FHLMC Note 2.875% Due 2/9/2015 1,225,000.00 03/09/2010 2.63 % 1,238,784.93 1,238,784.93 100.98 0.15 % 1,236,956.00 5,087.15 1.48 % (1,828.93) Aaa / AA+ AAA 0.36 0.36 31331KCR9 FFCB Note 2.05% Due 2/18/2015 400,000.00 07/26/2011 1.23 % 411,440.00 411,440.00 100.72 0.18 % 402,866.40 979.44 0.48 % (8,573.60) Aaa / AA+ AAA 0.39 0.38 3133XVNU1 FHLB Note 2.75% Due 12/12/2014 1,200,000.00 03/09/2010 2.57 % 1,209,304.80 1,209,304.80 100.52 0.15 % 1,206,226.80 9,991.67 1.45 % (3,078.00) Aaa / AA+ AAA 0.20 0.20 3135G0NV1 FNMA Note 0.5% Due 9/28/2015 650,000.00 06/27/2013 0.50 % 650,026.00 650,026.00 100.30 0.20 % 651,937.65 27.08 0.78 % 1,911.65 Aaa / AA+ AAA 0.99 0.99 31398AZV7 FNMA Note 2.625% Due 11/20/2014 950,000.00 11/20/2009 2.43 % 958,573.75 958,573.75 100.34 0.14 % 953,273.70 9,074.48 1.15 % (5,300.05) Aaa / AA+ AAA 0.14 0.14 313372XB5 FHLB Note 2.125% Due 6/30/2015 900,000.00 05/26/2011 1.49 % 922,752.00 922,752.00 101.37 0.29 % 912,345.30 4,834.38 1.10 % (10,406.70) Aaa / AA+ AAA 0.75 0.74 3133EADW5 FFCB Note 0.55% Due 8/17/2015 1,000,000.00 04/27/2012 0.60 % 998,511.00 998,511.00 100.31 0.19 % 1,003,146.00 672.22 1.20 % 4,635.00 Aaa / AA+ AAA 0.88 0.88 880591DY5 Tennessee Valley Authority Note 4.375% Due 6/15/2015 1,050,000.00 06/14/2011 1.46 % 1,168,386.45 1,168,386.45 102.97 0.18 % 1,081,157.70 13,526.04 1.31 % (87,228.75) Aaa / AA+ AAA 0.71 0.70 31331KFS4 FFCB Note 1.67% Due 3/24/2015 1,000,000.00 07/21/2011 1.18 % 1,017,410.00 1,017,410.00 100.75 0.12 % 1,007,491.00 324.72 1.20 % (9,919.00) Aaa / AA+ AAA 0.48 0.48 31331KLE8 FFCB Note 1.6% Due 5/18/2015 230,000.00 07/20/2011 1.28 % 232,702.50 232,702.50 100.92 0.14 % 232,118.53 1,359.56 0.28 % (583.97) Aaa / AA+ AAA 0.63 0.63 AGENCY Holdings Report As of 9/30/14 City of San Luis Obispo Consolidated Account #10032 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 30 Chandler Asset Management - CONFIDENTIAL Execution Time: 10/31/2014 11:22:27 AM 90CASH$00 Cash Custodial Cash Account 8,047,965.35 Various 0.00 % 8,047,965.35 8,047,965.35 1.00 0.00 % 8,047,965.35 0.00 9.62 % 0.00 NR / NR NR 0.00 0.00 Total Cash 8,047,965.35 N/A 8,047,965.35 8,047,965.35 0.00 % 8,047,965.35 0.00 9.62 % 0.00 NR / NR NR 0.00 0.00 CASH 3137EADG1 FHLMC Note 1.75% Due 5/30/2019 900,000.00 08/04/2014 1.67 % 903,420.00 903,420.00 99.70 1.82 % 897,272.10 5,293.75 1.08 % (6,147.90) Aaa / AA+ AAA 4.67 4.44 3135G0ZE6 FNMA Note 1.75% Due 6/20/2019 350,000.00 08/04/2014 1.74 % 350,227.50 350,227.50 99.19 1.93 % 347,178.65 1,718.40 0.42 % (3,048.85) Aaa / AA+ AAA 4.72 4.49 3137EADK2 FHLMC Note 1.25% Due 8/1/2019 1,050,000.00 09/15/2014 1.89 % 1,019,077.50 1,019,077.50 97.07 1.89 % 1,019,265.45 2,187.50 1.22 % 187.95 Aaa / AA+ AAA 4.84 4.65 3137EADF3 FHLMC Note 1.25% Due 5/12/2017 500,000.00 10/17/2012 0.82 % 509,635.00 509,635.00 100.70 0.98 % 503,488.00 2,413.19 0.60 % (6,147.00) Aaa / AA+ AAA 2.62 2.56 3136FPYB7 FNMA Callable Note 1X 5/23/2011 2.05% Due 5/23/2017 365,000.00 08/07/2012 0.89 % 384,739.20 384,739.20 102.32 1.16 % 373,484.79 2,660.44 0.45 % (11,254.41) Aaa / AA+ AAA 2.65 2.56 313379DD8 FHLB Note 1% Due 6/21/2017 700,000.00 11/26/2012 0.70 % 709,478.00 709,478.00 100.00 1.00 % 700,004.90 1,944.44 0.84 % (9,473.10) Aaa / AA+ AAA 2.73 2.67 3137EADC0 FHLMC Note 1% Due 3/8/2017 1,000,000.00 03/14/2012 1.29 % 986,050.00 986,050.00 100.28 0.88 % 1,002,828.00 638.89 1.20 % 16,778.00 Aaa / AA+ AAA 2.44 2.40 3135G0GY3 FNMA Note 1.25% Due 1/30/2017 800,000.00 02/27/2012 1.07 % 807,016.00 807,016.00 100.92 0.85 % 807,397.60 1,694.44 0.97 % 381.60 Aaa / AA+ AAA 2.34 2.29 31331KBX7 FFCB Note 2.875% Due 2/10/2017 865,000.00 07/25/2012 0.74 % 947,477.75 947,477.75 104.60 0.90 % 904,775.30 3,523.07 1.09 % (42,702.45) Aaa / AA+ AAA 2.37 2.28 3135G0UY7 FNMA Callable Note 1X 2/27/15 1% Due 2/27/2017 500,000.00 04/24/2013 0.75 % 504,750.00 504,750.00 99.90 1.04 % 499,480.00 472.22 0.60 % (5,270.00) Aaa / AA+ AAA 2.41 1.44 3137EADH9 FHLMC Note 1% Due 6/29/2017 910,000.00 Various 0.83 % 917,260.60 917,260.60 99.85 1.06 % 908,621.36 2,325.56 1.09 % (8,639.24) Aaa / AA+ AAA 2.75 2.70 3137EADL0 FHLMC Note 1% Due 9/29/2017 950,000.00 01/04/2013 0.89 % 954,788.00 954,788.00 99.55 1.15 % 945,711.70 52.78 1.13 % (9,076.30) Aaa / AA+ AAA 3.00 2.94 3135G0PQ0 FNMA Note 0.875% Due 10/26/2017 625,000.00 06/20/2014 1.17 % 618,987.50 618,987.50 99.05 1.19 % 619,070.00 2,354.60 0.74 % 82.50 Aaa / AA+ AAA 3.07 3.01 3135G0WJ8 FNMA Note 0.875% Due 5/21/2018 925,000.00 04/24/2014 1.46 % 903,691.70 903,691.70 97.94 1.46 % 905,909.85 2,922.74 1.09 % 2,218.15 Aaa / AA+ AAA 3.64 3.55 3135G0MZ3 FNMA Note 0.875% Due 8/28/2017 625,000.00 06/20/2014 1.10 % 620,687.50 620,687.50 99.33 1.11 % 620,797.50 501.30 0.74 % 110.00 Aaa / AA+ AAA 2.91 2.86 3137EADJ5 FHLMC Note 1% Due 7/28/2017 900,000.00 11/26/2012 0.80 % 908,316.00 908,316.00 99.59 1.15 % 896,300.10 1,575.00 1.07 % (12,015.90) Aaa / AA+ AAA 2.83 2.77 Total Agency 28,056,000.00 1.29 % 28,456,817.00 28,456,817.00 0.70 % 28,238,116.11 99,925.69 33.86 % (218,700.89) Aaa / AA+ Aaa 1.91 1.85 AGENCY Holdings Report As of 9/30/14 City of San Luis Obispo Consolidated Account #10032 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 31 Chandler Asset Management - CONFIDENTIAL Execution Time: 10/31/2014 11:22:27 AM 478160AY0 Johnson & Johnson Note 2.15% Due 5/15/2016 675,000.00 01/15/2013 0.58 % 709,870.50 709,870.50 102.53 0.59 % 692,050.50 5,482.50 0.83 % (17,820.00) Aaa / AAA AAA 1.62 1.59 38259PAC6 Google Inc Note 2.125% Due 5/19/2016 523,000.00 04/23/2012 0.91 % 548,360.27 548,360.27 102.41 0.64 % 535,617.38 4,075.04 0.64 % (12,742.89) Aa2 / AA NR 1.64 1.60 037833AH3 Apple Inc Note 0.45% Due 5/3/2016 700,000.00 05/13/2013 0.55 % 698,005.00 698,005.00 99.79 0.58 % 698,537.00 1,295.00 0.84 % 532.00 Aa1 / AA+ NR 1.59 1.58 369604BE2 General Electric Co Note 0.85% Due 10/9/2015 700,000.00 04/24/2013 0.58 % 704,515.00 704,515.00 100.43 0.43 % 703,031.00 2,842.78 0.84 % (1,484.00) Aa3 / AA+ NR 1.02 1.02 931142DE0 Wal-Mart Stores Note 0.6% Due 4/11/2016 700,000.00 06/27/2013 0.81 % 696,017.00 696,017.00 99.96 0.63 % 699,706.00 1,983.33 0.84 % 3,689.00 Aa2 / AA AA 1.53 1.52 742718DV8 Procter & Gamble Co Note 1.45% Due 8/15/2016 915,000.00 08/03/2012 0.82 % 937,893.30 937,893.30 101.25 0.78 % 926,460.38 1,695.29 1.11 % (11,432.92) Aa3 / AA- NR 1.88 1.85 166764AA8 Chevron Corp. Callable Note Cont 11/5/17 1.104% Due 12/5/2017 700,000.00 01/10/2013 1.03 % 702,422.00 702,422.00 99.04 1.41 % 693,292.60 2,490.13 0.83 % (9,129.40) Aa1 / AA NR 3.18 3.10 084664BS9 Berkshire Hathaway Note 1.6% Due 5/15/2017 700,000.00 04/24/2013 1.00 % 716,765.00 716,765.00 101.09 1.18 % 707,662.90 4,231.11 0.85 % (9,102.10) Aa2 / AA A+ 2.62 2.55 US CORPORATE PP1MCB$02 Heritage Oaks Bank Yankee CD 0.27% Due 12/20/2014 1,000,000.00 12/20/2013 0.27 % 1,000,000.00 1,000,000.00 100.00 0.27 % 1,000,000.00 2,137.50 1.20 % 0.00 NR / NR NR 0.22 0.22 Total Negotiable CD 1,000,000.00 0.27 % 1,000,000.00 1,000,000.00 0.27 % 1,000,000.00 2,137.50 1.20 % 0.00 NR / NR NR 0.22 0.22 NEGOTIABLE CD 90CASH$01 Cash Heritage Oaks Bank MMKT Fund 1,006,382.99 Various 0.21 % 1,006,382.99 1,006,382.99 1.00 0.21 % 1,006,382.99 0.00 1.20 % 0.00 NR / NR NR 0.00 0.00 261941108 Dreyfus Treas PR Cash Mgt Inst Money Market Fund 1,357,884.79 Various 0.00 % 1,357,884.79 1,357,884.79 1.00 0.00 % 1,357,884.79 0.00 1.62 % 0.00 Aaa / AAA NR 0.00 0.00 Total Money Market Fund FI 2,364,267.78 0.09 % 2,364,267.78 2,364,267.78 0.09 % 2,364,267.78 0.00 2.82 % 0.00 Aaa / AAA NR 0.00 0.00 MONEY MARKET FUND FI 90LAIF$00 Local Agency Investment Fund State Pool 27,204,818.25 Various 0.24 % 27,204,818.25 27,204,818.25 1.00 0.24 % 27,204,818.25 17,768.60 32.52 % 0.00 NR / NR NR 0.00 0.00 Total LAIF 27,204,818.25 0.24 % 27,204,818.25 27,204,818.25 0.24 % 27,204,818.25 17,768.60 32.52 % 0.00 NR / NR NR 0.00 0.00 LAIF Holdings Report As of 9/30/14 City of San Luis Obispo Consolidated Account #10032 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 32 Chandler Asset Management - CONFIDENTIAL Execution Time: 10/31/2014 11:22:27 AM 912828VL1 US Treasury Note 0.625% Due 7/15/2016 750,000.00 10/07/2013 0.57 % 751,145.09 751,145.09 100.23 0.50 % 751,728.75 993.55 0.90 % 583.66 Aaa / AA+ AAA 1.79 1.78 912828RU6 US Treasury Note 0.875% Due 11/30/2016 500,000.00 12/15/2011 0.84 % 500,782.93 500,782.93 100.37 0.70 % 501,836.00 1,470.29 0.60 % 1,053.07 Aaa / AA+ AAA 2.17 2.14 912828QJ2 US Treasury Note 2.125% Due 2/29/2016 1,050,000.00 Various 1.20 % 1,092,548.44 1,092,548.44 102.55 0.32 % 1,076,824.35 1,910.74 1.29 % (15,724.09) Aaa / AA+ AAA 1.42 1.40 912828VC1 US Treasury Note 0.25% Due 5/15/2016 700,000.00 09/26/2013 0.54 % 694,697.66 694,697.66 99.73 0.42 % 698,086.20 661.01 0.83 % 3,388.54 Aaa / AA+ AAA 1.62 1.62 912828SY7 US Treasury Note 0.625% Due 5/31/2017 650,000.00 05/13/2013 0.62 % 650,027.57 650,027.57 99.13 0.96 % 644,363.20 1,365.27 0.77 % (5,664.37) Aaa / AA+ AAA 2.67 2.63 912828UE8 US Treasury Note 0.75% Due 12/31/2017 625,000.00 08/13/2013 1.28 % 611,061.66 611,061.66 98.41 1.25 % 615,038.75 1,184.61 0.74 % 3,977.09 Aaa / AA+ AAA 3.25 3.19 912828UR9 US Treasury Note 0.75% Due 2/28/2018 925,000.00 04/24/2014 1.32 % 905,166.18 905,166.18 98.09 1.32 % 907,367.65 594.10 1.08 % 2,201.47 Aaa / AA+ AAA 3.42 3.36 912828TB6 US Treasury Note 0.75% Due 6/30/2017 575,000.00 09/17/2013 1.18 % 565,882.79 565,882.79 99.34 1.00 % 571,181.43 1,089.84 0.68 % 5,298.64 Aaa / AA+ AAA 2.75 2.71 912828TG5 US Treasury Note 0.5% Due 7/31/2017 500,000.00 Various 0.70 % 495,462.61 495,462.61 98.48 1.04 % 492,422.00 421.20 0.59 % (3,040.61) Aaa / AA+ AAA 2.84 2.80 912810DV7 US Treasury Bond 9.25% Due 2/15/2016 1,000,000.00 04/30/2008 9.25 % 1,000,000.00 1,000,000.00 112.18 0.36 % 1,121,758.00 11,813.86 1.35 % 121,758.00 Aaa / AA+ AAA 1.38 1.31 912828NP1 US Treasury Note 1.75% Due 7/31/2015 1,050,000.00 04/12/2011 1.91 % 1,042,948.83 1,042,948.83 101.37 0.11 % 1,064,355.60 3,095.79 1.28 % 21,406.77 Aaa / AA+ AAA 0.83 0.83 912828UW8 US Treasury Note 0.25% Due 4/15/2016 900,000.00 04/24/2013 0.34 % 897,647.55 897,647.55 99.80 0.38 % 898,207.20 1,038.93 1.07 % 559.65 Aaa / AA+ AAA 1.54 1.53 912828PJ3 US Treasury Note 1.375% Due 11/30/2015 1,055,000.00 05/16/2011 1.63 % 1,043,217.21 1,043,217.21 101.36 0.21 % 1,069,300.52 4,875.05 1.28 % 26,083.31 Aaa / AA+ AAA 1.17 1.16 Total US Treasury 10,280,000.00 1.87 % 10,250,588.52 10,250,588.52 0.59 % 10,412,469.65 30,514.24 12.48 % 161,881.13 Aaa / AA+ Aaa 1.92 1.89 US TREASURY 594918AV6 Microsoft Note 1.625% Due 12/6/2018 600,000.00 06/20/2014 1.62 % 600,078.00 600,078.00 99.47 1.76 % 596,799.00 3,114.58 0.72 % (3,279.00) Aaa / AAA AA+ 4.19 4.01 Total US Corporate 6,213,000.00 0.86 % 6,313,926.07 6,313,926.07 0.88 % 6,253,156.76 27,209.76 7.50 % (60,769.31) Aa2 / AA+ AA 2.11 2.06 US CORPORATE TOTAL PORTFOLIO 83,166,051.38 0.82 % 83,638,382.97 83,638,382.97 0.46 % 83,520,793.90 177,555.79 100.00 % (117,589.07) Aaa / AA+ Aaa 1.05 1.02 TOTAL MARKET VALUE PLUS ACCRUED 83,698,349.69 Holdings Report As of 9/30/14 City of San Luis Obispo Consolidated Account #10032 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody/S&P Fitch Maturity Duration 33 611 gns Pledge With United Nations —UN Controls Inv... http:// www. capoliticalreview. com /capoliticalnewsandviews /calp... TortilGltles 71to11111llhtw t ylLlatL1111tE M cawlti! 0111111(mm woos am MEN 3 AM VVM You are here: Home / Stephen Frank's Callfomin Political Neva And Views / CaIPERS Signs Pledge with United Natlonsm–UN Controls Investmentsl CaIPERS Signs Pledge With United Nations —UN Controls Investments! September 29, 2014 By Stephen Frank Leave a Comment Text Size: i px a A' I bet you thought that CaIPERS made investments decisions based on what is best for the members and retirees? That is called fiduciary responsibility. Yet, those running the agency have decided they must answer to a higher power —the United Nations. CaIPERS has decided to invest government employees pension funds based on global Politics, Ideciogy and the canard of global warming. In effect, the United Nations is going to use California pension money to prop up frauds and job killers --like Solyndra. Corruption has many forts —this is one of the worst — hundreds of billion to be invested based on politics --of other nations. "CaIPERS signed a United Nations pledge in Montreal last week to measure the "carbon footprint" of its $296 billion investment portfolio, with the goal of reporting the results before a UN climate change conference in Paris late next year. CaISTRS announced in response to a UN climate summit in New York last week that its investments in "dean energy and technology," now valued at $1.4 billion, will be increased to $3.7 billion over the next five years." Pension Funds Feel Heat on Climate Change Issue Ed Mendel, Public CEO, 9/29/14 I bet you thought that CaIPERS made investments decisions based on what is best for the members and retirees? That is called fiduciary responsibility, Yet, those running the agency have decided they must answer to a higher power —the United Nations. CaIPERS has decided to invest govemment employees pension funds based on global polilics, ideology and the canard of global warming. In erect, the United Nations is going to use Califomia pension money to prop up frauds and job killers -mike Solyndra. Corruption has many forms —this is one of the worst— hundreds of billion to be invested based on politics --of other nations. "CaIPERS signed a United Nations pledge In Montreal last week to measure the "carton footprint" of its $296 billion investment portfolio, with the goal of reporting the results before a UN climate change conference in Paris late next year,. CaISTRS announced in response to a UN climate summit in New York last week that its investments in "dean energy and technology,' now valued at $1.4 billion, will be increased to $3.7 billion over the next foe years.' Pension Funds Feet Heat on Climate ghanae ree. Ed Mendel, Public CEO, 9/29/14 CaIPERS signed a United Nations pledge in Montreal last week to measure the "carbon footprint" of of 0 9/30/1410:09 AM °Aaa 3 0 vz 00 0' V . N C u 1a, aR a0 0 Cd •� co 4 O N w N N ° a �u u °o O C v j Z um vr��� v•a d,. 0 $ a; a! y t7 N Q) U y 0dcj LO 0 y c� p uo p �•0i � A'ON U o G-91 •o ar a w O r, !7u � at N O 4 N w N a ° A r-I N N -Cld 'At . . x d v w a+ o ai ao o as '= o cn 4 RQ C'd O d 4 f� al O a 0 aar� u ° 0 3 o Q h 7 a O H Lo al J Lo aJ N Cd ' w bOD�F v �R U N r � •� w 0'. d y ti • E- a) y Cd N cd � ub O u ti W 4i .�p JA G➢ i" O eo ai ,. p, � + O a 0 i C as °3•°0/d��ua 4i ism A 3kC y•a �N OW� >'C o p o C r. 13.1 a vii •Q y O iiMrr D.3c >�y N y co M co al 3 .O ^ Z ° ai a� y u O .G O 'si N N +' Cola • W ° •a! .O a Q 3 : a�i 3raa3 �14��� 16, �yy.oaeo•ocay boa -�o� C• a! ydj R Fi QI. .O C �� '{7 ol 243 43 MQJ 3 �U aU���� W b N y d 'C y r e CA 5 v ty0• a! Co 0 al ru y -- ��„ c� e� p ,� y •a 'O vOi IV LLJ .5 2 ' y ` t� U N Ccis v �1 V1 E'er w 14 1 a I J. .5 1,y •o �'O•a,� 3 a+� 225� I .e: y d v9 4 v 4 a �.� o o " > " a� a . /� a F� s, w y .L^7' p, 3 N �Iy, 9.5! co p O w 3 S �>y V 1 N O �Gl+ �%'"U •Q '�„+'O i 0,04 O F'' y ,L5 4 L ,°o •b$oo6 � o0 y U411 •a a) a�i A° ++ vs !� a7 �n w � p, �+ O/ � u4i Cdr aNi o •� a�'�i yC� +O-� Lny G O V "� a Co P. o y a7 0 Cd 3 y N aD '✓ •p al S� y-' a •� ` y ai cad+ a w y � 'F3 d 4 + % 10 W• d Oa�•L" y N iidv.y,� ° tcp�d o a wb O m I ro CL N •LL vOi O 13 � y w � ajr' war a y Z. c'e°og yew °0.`� u� �� °� ark y R�aaa,�roa�a.. b 3 z N N • l7 Ct cr 0 u, M CV Qm � C7 c UN W n N Z � �o `o r- E4i co co x ri o` b�4 a °M . N 2z W J lf� O N 'R bE M X Ri r-1 ` C 0 CD a J x cq Q O .o j , a r4 N lel d N O'o ul +L-, L i N C 4Td � � N N ra V1 'C :3 d Q C L CL46 cc Y N C CO L of � c V 7 cE aYEa �E 4J �0 is ai Y°N, N C O a n 5! TLC � O. 4J l FL- v v w L Ty N d �fOo - 0 4-- 3� N y C 2 > °a C n N� C +� g Q X.=3 E N o�o w E V _ a1 � La 11 �I�iINA�'1eZ� f'�IS��T�D "1 308,819 1,149,807 824,064 CITY OF SAN WIS OBISPO, CALIFORNIA 48,943 0 48,943 STATEMENT OF NET POSITION 361,579 1,226,216 0 MAY 2014 321,248 20,848 0 Unaudited In 24,823,418 53,210,309 78,033,727 Governmental Business- type 2,498,400 57,300,000 Activitles Activities Total ASSETS 65,555,000 1,168,102 2,894,300 Cash and cash equivalents 2,849,431 4,111,597 6,961,028 Investments '34,316,868 49,517,643 83,834,511 Taxes receivable 1,430,543 0 1,430,543 Accounts receivable 1,185,294 1,629,168 2,814,462 Other receivables 92,031 0 92,031 Due from other governments 258,910 0 258,910 Cash and investments held by fiscal agents 2,374,992 2,211,946 4,586,938 Prepaid expenses 71,624 71,624 */1 Nondepreciable capital assets 41,428,800 8,607,177 50,035,977 */1 Depreciable capital assets (net of accumulated depreciation) 127,458,900 165,848,498 293,307,398 TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Accrued salaries Due to other funds Unearned revenue interest Payable Other liabilities Non current Liabilities Due in more than one year CJPIA retrospective payment ** CalPERS unfunded liability -safety •* Ca1PERS unfunded liability- miscellaneous Due within one year TOTAL LIABILITIES FUND BALANCES Net investment in capital assets Unrestricted fund balance Reserves Restricted for Debt Service 211,467,393 231,926,029 443,393,422 195,863 112,956 308,819 1,149,807 824,064 1,973,871 48,943 0 48,943 864,637 361,579 1,226,216 0 321,248 321,248 20,848 0 20,848 24,823,418 53,210,309 78,033,727 2,403,000 95,400 2,498,400 57,300,000 0 57,300,000 47,199,600 18,355,400 65,555,000 1,168,102 2,894,300 4,062,402 135,174,218 16,175,256 211,349,474 142,896,180 118,351,066 261,247,246 (74,244,499) 16,174,908 (58,069,591) 5,344,020 17,964,765 23,308,785 2,297,474 3,260,034 5,557,508 ** *TOTAL LIABILITIES AND FUND BALANCES 211,467 ,393 231,926,029 ^ 443,393,422 Fixed assets for General Government are accounted for as expenditures until the year is closed. The values shown are as of 6/30/13 ** Estimated unfunded liability measured at FMV as of 6130/12; amount prorated to enterprise fund based on share of payroll casts. * ** This information has been taken from the City's General ledger as of 5/31/14, however all required closing entries for that period have not been posted. 1 Capital assets are valued at cost, per accounting standards; Note that not all of the mqubW disclosures required by GASB 67 have been incorporated Into this docrrmenL I CITY OF SAN WIS OBISPO, CALIFOR ) STATEMENT OF NET POSITION (W I TM l) e PA--W �a1i�n 0tJ F� �✓ MAY 32, 2014 Unaudited Information ASSETS Cash and cash equivalents Investments Taxes feceivable Accopnts receivable Other receivables Due from other governments Cash and investments held by fiscal agents Prepaid expenses */1 Nondepreciable capital assets */1 Depreciable capital assets (net of accumulated depreciation) TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable Accriled salaries Due to other funds Unearned revenue Interest Payable Other liabilities Nan current Liabilities Governmental Business- type Activities Activities Total 2,849,431 4,111,597 6,961,028Gqj I, 34,316,868 49,517,643 83,834,511 r +! r"411 1,430,543 1,185,294 0 1,629,168 1,430,543 2,814,462 #�wUp 11 s #I 92,031 0 92,031 258,910 2,374,992 0 2,211,946 258,910 d� 4,596:9383.j4,(,6 i1i1 1" 71,624 71624 41,428,800 8,607,177 50,035,977 127,458,900 165,848,498 293,307,398 r 100 qeZ4�. £ �a t��'vl 211,467,393 231,926,029 3�t Obi ar1✓? 195,863 " 1�1 '2,956 1,149,807 824,064 48,943 0 864,637 20,848 Due in more than one year 24,823,418 CJPIA retrospective payment 2,403,000 •• CaIPERS unfunded liability- safety 615 e f 9,lW2 —"a 57,300,000 * Ca1PERS unfunded liability- miseellaneousat,S �J�� —"� 47,199,600 Due within one year 1,168,102 TOTAL LIABILITIES 135,174,218 FUND BALANCES Net investment in capital assets 142,896,180 Unrestricted fund balance (74,244,499) Reserves 5,344,020 Restricted for Debt Service 2,297,474 443,3932 M) r 308,819 1,973,871 48 943 361,579 1,226,216 321,248 321,248 0 20,848 53,210,309 95,400 0 18,355,400 2,894,300 76, ShOtAQ 4 56:' 118,351,066 16,174,908 17,964,765 3,260,034 �..�� 78,033,727 2,498,400 57,300," � 65,555,000 MJ Kl, 1 Z 1, 261,247,246 (58,069,591)�yr�,,tR-$t? 23,308,785 Wdt kr I 5,557,508 It # ;� ��rici Z $ * **TOTAL LIABILITIES AND FUND BALANCES 211,467,393 231,926,029 443,393,422 . Sc. P1111+ 5r Fixed assets for General Government are accounted for as expenditures until the year is closed. The values s own are as of 30/13 ** Estimated unfunded liability measured at FMV as of 6130/12; amount prorated to enterprise fund based on share of payroll ' is. * *� This information has been taken from the City's General ledger as of 5/31/14, however all required closing entries for that Hod have not been posted. 1 Capital assets are valued at cost, per accounting standards; A -tot, 0 Note that not all of the required disclosures required by CASB 67 have been Incorporate! Into thla doormen i'`f " 'rl r / m( +4 If � 104 V sheet As I Sa/i4 -11 ¢ � �# 4v +1r�tfc C6Itev15 . 2 ANNUAL PAYMENTS BY SOURCE • GENERAL FUND 2012/2001 Revenue Refunding Bonds Series B & C Principal Interest 2004/1994 Refunding Lease Revenue Bonds Principal Interest 2005/1996 Lease Revenue Bonds Principal Interest 2006 Lease Revenue Bonds -919 Palm Street Principal Interest 2009 Lease Revenue Bonds - Public Safety EOC Principal Interest Fire Engine/Truck Lease Financing Principal Interest Fire Engine Lease Financing 2013 Principal Interest Capital Lease (I.T. Equipment - proposed) Principal Interest Lease Revenue Bonds 2014 (LOUR proposed) Principal Interest insurance Retrospective Charges Principal Public Employees Retirement System Safety Side Fund Liability Total Debt Service Fund Current Adopted Revised 2013 -14 2014 -15 201445 210,000 220,000 220,000 175,800 170,400 170,400 266,400 28,500 Change Variance % 275,000 285,000 285,000 192,800 183,100 183,100 170,200 174,800 174,800 290,200 283,400 283,400 482,200 494,900 494,900 355,700 340,000 340,000 105,000 110,000 110,000 23,900 20,800 20,800 100,000 108,050 8,050 8% 26,000 8,653 (17,347) -67% 156,000 156,000 156,000 28,500 28,500 28,500 371,000 250,000 (121,000) -33% 2,443,259 2,443,259 934 506 300 000 300,000 3,694,706 2,963,900 5,576,862 e 2,612,962 88% 3 DEBT SERVICE REQUIREMENTS PAYMENTS BY SOURCE ' F,R lLJi' D Insurance Retrospective Charges Principal Interest 2012 Revenue Refunding Bonds Principal Interest 2006 Water Treatment Plant Upgrade Principal Interest 2009 Lease Revenue Bonds - Public Safety EOC Principal Interest Water Reuse Project Loan Principal Interest Total Water Fund Current Adopted Revised 2013 -14 2014 -15 2014 -15 Change Variance % 380,000 400,000 400,000 184,800 169,600 169,600 390,000 405,000 405,000 644,600 629,000 629,000 38,200 39,200 39,200 28,300 27,000 27,000 390,700 400,500 400,500 134,800 125,000 125,000 2,191,400 2,195,300 2,195,300'' DEBT SERVICE REQUIREMENTS ANNUAL PAYMENTS BY SOURCE Current Adopted Revised Change 2013 -14 2014 -15 2014 -15 Variance % SEWER FUND Insurance Retrospective Charges Principal Water Reclamation Facility Upgrade Principal Interest Installment Sale Agreement - Tank Farm Lift Station Principal 120,000 125,000 125,000 Interest 65,600 60,400 60,400 CIEDB State Loan - Tank Farm Lift Station Principal 241,700 249,500 249,500 Interest 319,400 310,800 310,800 Energy Conservation Lease Principal Interest 2009 Lease Revenue Bonds - Public Safety EOC Principal 43,300 44,500 44,500 Interest 32,100 30,600 30,600 Water Reclamation Facility Energy Upgrade (proposed) Principal 386,200 373,000 (13,200) -3% Interest 152,400 243,300 211,500 31,800 -13% Total Sewer Fund 974,500 1,450,300 1,405,300 (45,000) -3% — V-- PC fow- F S' fly fYi'1 Cg4,U1d -(,its pwgr C "e" Ra P + 5 ANNUAL PAYMENTS BY SOURCE Current Adopted Revised Change 2013 -14 2014 -15 2014 -15 Variance % pARKING FUND 2004/1994 Refunded Lease Revenue Bonds Principal 485,100 Interest 17,000 Insurance Retrospective Charges Principal CIEDB State Loan 229,900 236,900 236,900 Principal 192,300 185,500 184,500 (1,000) Interest 2006 Lease Revenue Bonds -919 Palm Street Principal 199,800 205,200 205,200 340,600 332,600 332,600 Interest 2009 Lease Revenue Bonds - Public Safety EOC Principal 5,700 5,800 5,800 Interest 4.200 4 100 4,100 Total Parking Fund 1,474,600 970,100 969,100 (1,000) TOTAL DEBT SERVICE REQUIREMENTS 8„335,206 7,579,600 10,146,562 2,566,962 34% Note: All General Fund debt service payments are accounted for in the Debt Service Fund. WTI h CW 4 ar f , yMrurs : Iy. 0 5' P� DESCRIPTION OF DEBT OBLIGATIONS 1993 Water Revenue Bonds Refunded in 2002 and 2012 • Purpose: Upgrade the City's water treatment plant to meet water quality standards. • Maturity Date: 2023 • Original Principal Amount:. $10,890,000 • July 1, 2014 Principal Outstanding: $5,300,000 • Interest Rate: 2.0% to 4.0% • Funding Source: Water Fund 19% Lease Revenue Bonds Refunded in 2005 Purpose: Construct a new headquarters fire station and other City acquisitions. • Maturity Date: 2026 e Original Principal Amount: $7,100,000 • July 1, 2014 Principal outstanding: $4,395,000 • Interest Rate: 3.4% to 4.5% • Funding Source: General Fund 1999 Series C Lease Revenue Bonds Refunded in 2001 and 2012: Series C Lease Revenue Bonds • Purpose: Purchase property and build athletic fields; purchase property for police station expansion; purchase Downtown Plan properties • Maturity Date: 2029 • original Principal Amount: $6,745,000 • July 1, 2014 Principal outstanding: $4,630,000 • Interest Rate: 2.0% to 4.0% • Funding Source: General Fund 2001 State Infrastructure Bank (CIEDD) Loan • Purpose: Expand Marsh Street parking structure • Maturity Date- 2031 • Original Principal Amount: $7,765,900 • July 1, 2014 . Principal Outstanding: '$5,582,274 • Interest Rate: 3.37% (including annual loan fees) • Funding Source: Parking Fund 2013 Water Reclamation Facility Energy Improvement Installment Sale Agreement purpose: Construct energy conservation improvements at this facility. • Maturity Date; 2028 • Original Principal Amount: $7,479,000 • July 1, 2014 Principal Outstanding: $7,479,000 • Interest Rate: 2.9% • Funding Source: Sewer Fund 7 DESCRIPTION OF DEBT OBLIGATIONS 2005 Water Resources Control Board Loan • Purpose: Construct water reuse project. • Maturity Date: 2024 • Authorized Principal Amount: $8,883,200 • July 1, 2014 Principal Outstanding: $4,9��3� • Interest Rate: 2.5% • Funding Source: Water Fund 2006 Lease Revenue Bonds - - -- • Purpose: Parking Structure and City Offices • Maturity Date: 2036 • Original Amount: $16,160,000 • July 1, 2014 Principal Outstanding: $13,650,000 • interest Rate: 4.0% to 4.7% • Funding Source: General and Parking Funds 2006 Water Revenue Bonds • purpose: Water Treatment Plant Improvements • Maturity Date: 2036 • Original Amount: $16905,000 • July 1, 2014 Principal Outstanding: $14,235,000 • interest Rate: 3.75% to 4.625% • Funding Source: Water Funds 2008 Installment Sale Agreemtnr • Purpose: Tank Farris Lift Station and Force Main Project • Maturity Date: 2023 • Originai Amount: $2,050,000 • July 1, 2014 . Principal Outstanding: $1,500,000 • Interest Rate: 4.2% • Funding Source: Sewer Funds 2008 State Infrastructure Bank(CIEDB) Loan • Purpose: Tank Farm Lift Station and Force Main Project • Maturity Date: 2038 • Original Principal Amount: $10,000,000 • July 1, 2014 Principal Outstanding: $8,865,300 • Interest Rate: 3.25% (including annual loan fees) • Funding Source: Sewer Fund 2009 Lease Revenue Bonds • Purpose: Public Safety Communications and Emergency Operations Center • Maturity Date: 2039 Original Amount: $10,705,000 • July 1, 2014 Principal Outstanding: $8,085,600 • Interest Rate: 3.00% to 5.75% 2 J DEBT SERVICE DESCRIPTION DESCRIPTION OF DEBT OBLIGATIONS • Funding Source: General, Water, Sewer, Parking Funds 2010 Fire Engine/Track Lease Financing • Purpose: Purchase of fire apparatus with 100 -foot ladder • Maturity Date: 2020 • Original Amount: $1,080,000 • July 1, 2014 Principal Outstanding: $695,000 • Interest Rate: 2.99% • Funding Source: General Fund 2013 Fire Engine Lease Financing • Purpose: Purchase of replacement fire apparatus • Maturity Date: 2018 • Original Amount: $548,351 • July I, 2014 Principal Outstanding: $548,351 • Interest Rate: 2.108% • Funding Source: General Fund Retrospective Insurance .Program Charges • Purpose: To maintain adequate funding of the workers compensation and liability programs • Maturity Date: July 2018 • Original Amount: $3,121,571 • July 1, 2014 Principal Outstanding: $2,498,400(All Funds) • Interest Rate: 1.99% • Funding Source: General Fund and Enterprise Funds As part of the Financial Forecast, staff has identified the need to use debt financing to either construct or acquire capital assets, which include the following: • Mobile Data Computers • Los Osos Valley Road Interchange Improvements Staff will work with the City's financial advisor Public Financial Management (PFM) to determine the most cost- effective way to finance these items within the requirements of the City's debt management policies. in L!r Debt - 6130113 aI Government Funds 2004 Lease Revenue Bond X005 Revenue Refunding Bond Y006 Lease Revenue Bands 2009 GaBS a Revenue bonds. (Share with Sewer, Parking, and 2012 Lease Revenua Bands 2010 Fire Apparatus Lease Purchase Financing Police Vehicle Lease Purchase Financing 2013 Flre Englnu Lease Purchase Financing ansated Absences mia Join Powers Insurance Authority -2014 mia Join Powers Insurance Authority -2013 Total General Fund Business 1 Water Fund Revenue Bonds SW RCS W ate Reuse Loan 2006 Water Revenue Bonds 2009 Lease revenue bonds. (Share with 5 ewer, GF. and Parking) 2012 Water Revenue Refunding Bonds. ensateid Absences Total Water Fund ig Fund C(EDB Loan- Tank Farm Lint Statkrn 2004 Lease Revenue Bond (Share with GF -) 2006 Lease Revenue Bond 2009 Lease revenue bonds. (Share wish Sewer,GF, and Water) anaated Absences Total Parking Funs Fund iuntrust 2008 Bond :009 Lease Revenue Bonds, (Share with Water, GF. and Parfang) 009 I -Bank Loan Tank Farm lift station JS Bank 2013 Wastewater Lease nsaated Absences Total Sewer Furn ited Absences- Transit Fund Joint Powers Insurance Authority . 2014 Enterprise Total Long Terra Deb Schedule doesn't include the PER$ Balance ti/30H3 284,900 4.670.000: 6,449,200 7.330.800 4.840.000 800,000 23.400 2,537,600 2,025,100 28,961,000 Additions 583,510' 377.900 981,410 Ref ind'mg 0 Deletions (284.900) (275,000) (170,200) (482.790) (210.000) (105,000) (1,527,890} Balance 6130!14 - 4,395,000 6.279,000 6.849.010 4.630,000 695,000 23,400 583,510 2.537,600 377,900 2,025,100 28,394,520 5,390,014 (390.707) 4.999.307 14,625,000 (390,00 14,235,000 579,885 (38.190) 541,695 4,620.000 (380,000) 4,240,000 254,900 254,900 25,469,799 (1.198,897) 24,270,902 5,812,074 (229,855) 5,562,219 485.100 (486,1001 - 7,570,800 (199,8001 7,371,000 86,550 (5.700) 80,850 52.800 52.800 14,007,324 D 0 (920.455) 13,086,869 1,620,000 (120,000) 1,500,000 657.800 (43,320) 614,480 9.106,9.51 (241,692) 805259 7,479,000 7.479,000 282,900 282,900 11,667,651 7,479,000 0 (405,012) 18.741,639 5,200 95,400 W80.110,974 (4,052,255) 84.594.529 k CITY OF SAN LUIS OBISPO GENERAL GOVERNMENT FIXED ASSETS Acclun Net Land: 6130113 Asset G6n Govt 7,106,131 7,106,131 Open Space 7,978,631 7,978,631 Pick & Rec 15,065,038 15,065,038 GOLF Land 1,389,500 1,389,500 Bikeways 504,548 504,548 Si6total Land 32,043,848 0 32,043,848 Buildings 35,140,762 (15,126,255) 20,014,507 Public Art 646,666 0 646,666 Infrastructure 9,854,902 (3,883,948) 5,970,954 Improv Park Parks 1,413,700 (37,178) 1,376,522 Dail Golf Course Improvements 322,633 (452) 322,181 Ppvcment 76,679,512 (22,216,969) 54,462,543 Curb & Gutter 2,154,818 (284,065) 1,870,753 Sidewalks 4,000,056 (725,804) 3,274,252 Street lights 1,697,626 (435,937) 1,261,689 Tragic signals 3,334,607 (1,059,367) 2,275,240 Bridges 24,002,539 (9,198,522) 14,804,017 Landscaped Medians 647,790 (61,945) 585,845 8ltreet trees 3,002,897 0 3,002,897 1,245,473 (63,336) 1,182,137 Bikeways 41,610 41,610 Pipeline Pump/Lift Stations 75,063 (9,006) 66,057 Pipelines -Creek & Flood Prot. 7,854,108 (2,695,352) 5,158,756 Catch basins 1,774,230 (416,466) 1,357,764 functions 667,250 (168,017) 499,233 Manholes -Creek &flood 566,156 (128,355) 437,801 Crock improv 1,117, 152 (223,799) 893,353 Parking lot Parking lot 158,510 (9,511) 148,999 140,610,632 (41,618,028) 98,992,604 Equipment 10, 129,883 (6,473,144) 3,656,739 Vehicles Vic Vehicles 210,058 (152,618) 57,440 8,235,072 (4,328,933) 3,906,139 Computers 0 GOLF Computers 0 32,086 (23,631) 8,455 OLF Misc 001,17 (3,351,787) 823,003 misc , 22,781,888 (14,330,112) 8,451,776 Fgrupment II r CITY OF SAN WIS OBISPO GENERAL GOVERNMENT FIXED ASSETS Accum Net Land: 1 6130/13 Deprc Asset Co6struction in Progress 8,738,275 8,738,275 Total Gov. Fixed Assets 239,962,071 (71,074,296) 16MB7,676 BUSINESS FIXED ASSETS WATER FUND Ladd 915,926 915,926 Buidings 19,134,912 (6,804,264) 12,330,648 Infix structure 0 0 Pavement 809,202 (118,381) 690,821 04idges 56,023 (16,807) 39,216 Pipelines 42,312,801 (13,876,294) 28,436,507 Lift Stations 1,637,864 (790,509) 847,355 Treatment Plant 45,420,369 (13,950,488) 31,469,881 Reservoirs 1,633,889 (492,856) 1,141,033 Storage Tanks 2,803,417 (847,201) 1,956,216 Groundwater wells 58,686 (29,329) 29,357 Hydrants 446,593 (220,407) 226,186 Manholes 46,100 (2,766) 43,334 Creek Improvements 859,970 (687,976) 171,994 Equipment 0 Vehicles 1,157,014 (603,678) 553,336 Computers 862,706 (544,782) 317,924 NO= 1,710,851 (1,172,321) 538,530 C1P 542,532 542,532 Whale Rock 0 0 Water Fund Total 120,408,855 (40,158,061) 80,250,794 SEWER FUND Land 2,176,089 2, 176,089 Buildings 5,024,388 (1,546,730) 3,477,658 Infrp structure 0 0 Pavement 531,131 (127,681) 403,450 Sever Lines 15,964,325 (4,602,662) 11,361,663 Lift"•Stations 15,944,135 (3,216,247) 12,727,888 Treatment Plant 35,999,025 (11,802,805) 24,196,220 Sever Manholes 1,908,446 (941,477) 966,969 Creek Improvmts 22,565 22,565 Equipment: 0 Vehicles 1,571,526 (1,133,281) 438,245 �2 CITY OF SAN LUIS OBISPO 5,016,212 (1,502,083) 3,514,129 GENERAL GOVERNMENT FIXED ASSETS 74,084 0 Net E91opment 7,017,820 (2,793,342) 4,224,478 EAccum 6130113 D rc A850t Land: 688,127 (349,391) 338,736 computers 1,723,687 (1,562,944) 160,743 1 Mom 2,773,249 (4,822, 592) 2,773,249 CIP Sewer Fund Total 84,326,693 (25,283,219) 59,043,474 i- TRANSIT 15,531 ( 3,10 � 12,424 PA4tKiNG 5,016,212 (1,502,083) 3,514,129 Buildings 74,084 0 0 E91opment 7,017,820 (2,793,342) 4,224,478 Vehicles 41,903 (24,657) 17,246 Computers 1,248,530 502,511 ( ) 746,019 14� 1i 36,300 (7,506,948) 36,300 Clh (3,360,765 (4,822, 592) 8,538,173 Transit Fund Total 212,798 ( 1. 007,690) 212,798 PA4tKiNG Bualn"s-type activities combined 5,515,137 0 5,515,137 Land 74,084 0 74,084 Public Art 876,979 (594,417) 282,562 Buildings 0 (10,461,894) 0 Infrastructure 2,499,020 (1,240,131 ) 1,258,889 Lots 26,070,331 (7,506,948) 18,563,383 Garages 598,009 (340,365) 257,644 meters 212,798 ( 1. 007,690) 212,798 signals 15,531 ( 3,10 � 12,424 Pipelines 0 Equipment 117,387 (98,984) 18,403 Vchicles 138,257 (88,861) 49,396 computers 32,352 ( 32,104) 248 mist 378,072 378,072 C1P 36,527,957 (9,904,916) 26,623,041 Packing Fund Total Bualn"s-type activities combined 0 8,607,152 8,607,152 Land 74,084 0 74,084 Pdblic Art 30,052,491 (10,461,894) 19,590,597 Buildings 195,850,230 (60,749,295) 135,100,935 lo�fmstrucwe 0 Equipment 9,863,747 (4,625,269) 5,238,478 Vehicles ],730,993 ( 1. 007,690) 723,303 'Computers 4,715,420 (3,324,640) 1,390,780 Use IN CITY of SAN LUIS OBISPO G$NERAL GOVERNMENT FIXED ASSETS Accum Net mod; 6/30113 Dopm Asset C1P 3,730.153 0 3,730,153 Total Badness Fixed Assets 254,624,270 (89,16%789 [r7 1744455,631 raw "U $ ,!I pv, C �rV ASS Responses to fixed asset questions https:Hmail.aol -corn/ 38707 - 316/ aol- 6/en- us/maii�PrintMess�gerspx From: Padilla, Wayne <wpadilla@slocity.org> To: barascharc <barascharc@aol.com> subject: Responses to fixed asset questions Date: Tue, Jul 22, 20141:55 pm Steve — with respect to your questions #3 and #4, I have the following responses: ka I Of I #3 How were the City's fixed assets calculated? The following is an excerpt from the notes to the latest CAFR: assets for the City were valued at one of two dates: 1) the original YN to date of construction, if available, or 2) the incorporation date of the 1 o O�� P U� �� City. Each asset was reviewed to determine the adequacy of the data j/G(/) V a-'f % �� T� tK L7 to value the asset prior to 3u[ 1 _1980 using historical cost or estimated historical cost. The City records the value of each new asset at its completed cost. #4 What was the basis for calculating accumulated depreciation? Straight -line depreciation is used for the asset classes shown below: ,Assets Years Infrastructure 20 -100 ? Buildings and structures 20-50 Improvements other than buildings 10 -100 7+I"' Equipment Vehicles, dependent upon type 3 -21 � TV J4411 1 V; J f, rf) WL 41P I sv � 6 -20 ( P4r� S-1 7 J1 k5) YV� , ov► 8/131,14 4:18 PM