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02-16-2017 IOC Agenda Packet
CITY OF SAN LUIS OBISPO INVESTMENT OVERSIGHT COMMITTEE REGULAR QUARTERLY AGENDA February 16, 2017 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) regarding investment management practices. CALL TO ORDER: Interim Finance Director/Treasurer/ Bradford ROLL CALL: Mayor Harmon; City Manager Lichtig; Interim Finance Director/Treasurer Xenia Bradford; Assistant City Manager Johnson; Accounting Manager Controller Rico Pardo; Steve Barasch, public member. OTHERS PRESENT: Al Eschenbach, Independent Auditor and ex-officio member; Director Sarah Meacham and Director Monique Spyke of PFM Asset Management LLC. 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.Oath of Office of New Committee Members (Harmon and Pardo) 2.Review of Investment Oversight Committee meeting minutes of November 10, 2016. a.Recommend approval of the minutes 3.Presentation of the Quarterly Investment Report on Portfolio Performance a.Review and confirm investment policy compliance 4.Discuss Committee’s Purpose, Membership and Terms 5.Discuss Investment Oversight Committee Meeting Calendar Investment Oversight Committee Regular Quarterly Agenda for February 16, 2017 6. Items to be addressed at a future meeting 7. Adjourn to the next meeting to be held on May 18, 2017 at 1:30 pm. _________________________________________________________________________ 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 City Clerk’s Office located at 990 Palm Street, San Luis Obispo, during normal business hours. Minutes Investment Oversight Committee Thursday, November 10, 2016 Regular Meeting of the Investment Oversight Committee CALL TO ORDER A Regular meeting of the Investment Oversight Committee was called to order on Thursday, November 10, 2016, at 1:37 p.m. in the Council Hearing Room at 990 Palm Street, San Luis Obispo, California, by Chair Bradford. ROLL CALL Present: Committee Members Steve Barasch, Derek Johnson, Vilma Warner, and Chair Xenia Bradford Absent: Mayor Marx, City Manager Lichtig Others Present: Al Eschenbach, Independent Auditor and ex-officio member, and Monique Spyke, PFM Asset Management LLC (City’s Investment Advisor); Kevin Christian, Recording Secretary PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Leslie Halls, San Luis Obispo, expressed opinion that the committee is doing a great job based on the rate of return on investments. Questioned where the City’s invests its money. 1. REVIEW OF INVESTMENT OVERSIGHT COMMITTEE MEETING MINUTES OF AUGUST 18, 2016 Committee Member Barasch requested clarification on the scope and purpose of the committee, noting that he had raised the question at the August 18, 2016 committee meeting. In response to committee inquiry, Independent Auditor Eschenbach commented and Assistant City Manager Johnson concurred that the purpose of the committee has historically been to review City’s portfolio on an ongoing basis to determine that the City is in compliance with the City Investment Management Policies. Chair Bradford noted that this will be added to a future agenda for consideration. ACTION: MOTION BY COMMITTEE MEMBER JOHNSON, SECOND BY COMMITTEE MEMBER WARNER, CARRIED 4-0, to approve the Investment Oversight Committee Meeting minutes of August 18, 2016. City of San Luis Obispo, Title, Subtitle DRAFT Minutes - Investment Oversight Committee Minutes of November 10, 2016 Page 2 2. PRESENTATION OF THE QUARTERLY INVESTMENT REPORT ON PORTFOLIO PERFORMANCE Chair Bradford distributed the Quarterly Investment Report. City Investment Advisor Monique Spyke reviewed the contents of the report and summarized the portfolio’s performance. Committee questions followed. In response to the question during “Public Comment On Items Not On The Agenda” it was noted that earned income from the portfolio are reinvested back into the portfolio. Public Comment: None. ---End of Public Comment--- ACTION: MOTION BY COMMITTEE MEMBER JOHNSON, SECOND BY COMMITTEE MEMBER BARASCH, CARRIED 4-0, to confirm the Quarterly Investment Report for the period ending September 30, 2016 is in compliance with the City’s Investment Policy. 3. DISCUSSION OF CASH FLOW AND CITY INVESTMENTS Chair Bradford discussed the Cash Flow Analysis report. In response to Committee Member Barasch inquiry, Assistant City Manager Johnson reported that there are no Capital Investment Expenditures projected that will strain the cash flow and there are no changes planned for the current cash investments. Public Comment: None. ---End of Public Comment--- No action taken. 4. DISCUSSION OF INVESTMENT OVERSIGHT COMMITTEE CALENDAR Next meeting date: Thursday, February 16, 2017 at 1:30. City of San Luis Obispo, Title, Subtitle DRAFT Minutes - Investment Oversight Committee Minutes of November 10, 2016 Page 3 5. ITEMS TO BE ADDRESSED AT A FUTURE MEETING Following discussion, the Committee agreed to discuss at a future meeting the difference between an Oversight Committee versus Advisory Committee status. ADJOURNMENT Prior to adjournment, the Committee thanked Committee Member Warner for her service on the committee. The meeting was adjourned at 2:19 pm. APPROVED BY INVESTMENT OVERSIGHT COMMITTEE: XX/XX/2017 Quarterly Investment Report As of December 31, 2016 February 9, 2017 This report presents the City’s investment portfolio for the quarter ending December 31, 2016. It has been prepared to comply with regulations contained in California Government Code Section 53646. The report includes all investments managed by the City on its own behalf as well as for other third party agencies on a fiduciary basis such as the Whale Rock Commission. It also includes all City-related investments held by trustees for bond debt service obligations. As required, the report provides information on the investment type, issuer, maturity date, cost, and current market value for each security. 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 City follows the practice of pooling cash and investments for all funds under its direct control. Funds held by outside fiscal agents under provisions of bond indentures are maintained separately. Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund’s average quarterly cash balance. Interest earned from cash and investments with fiscal agents is credited directly to the related accounts. It is common for governments to pool the cash and investments of various funds to improve investment performance. By pooling funds, the city is able to benefit from economies of scale, diversification, liquidity, and ease of administration. The City uses the services of an investment advisor, PFM Asset Management, to manage a portion of the City’s portfolio. The City’s strategy is to retain approximately 25% of the portfolio to manage its day-to-day cash flow needs, while PFM’s focus is on longer-term investment management. In addition, the City has retained direct control of several investments that had been acquired before the City began to use investment advisors. All investments are held by the City in a safe keeping account with Bank of New York Mellon, except for investments held by trustees related to bond financings, which are held by either US Bank or Bank of New York Mellon. Investment Portfolio Benefits all Funds The City’s cash and investment portfolio represents money from all City funds, including the General Fund, enterprise funds, capital projects funds, and other funds which are restricted to specific purposes. In general, monies held by the city are either allocated by the City Council for spending or are purposefully retained in reserve. For example, the money in the Capital Outlay Fund has been identified to provide particular capital projects for the community and there is a plan for spending down the cash balance as the projects progress. In the General Fund, approximately $10 million is purposely held in reserve to meet the City’s reserve policy of 20% of operating expenditures. Quarterly Investment Report Current Cash and Investment Summary The following is a summary of the City’s cash and investments based on market value as of December 31, 2016 compared with the prior quarter: September 30, 2016 December 31, 2016 Percent of Total Cash and investments held by the City 34,095,175 42,736,999 34.85% Cash and investments managed by PFM 75,899,820 75,363,640 61.46% Cash and investments held by trustees 4,637,213 4,521,790 3.69% TOTAL 114,632,208 122,622,429 100% There are a number of factors which result in changes in cash and investment balances from month to month and quarter to quarter. Often they are the result of the receipt of revenues or a large disbursement. Some major City revenues are received on a periodic rather than a monthly basis. Property Tax, for example, is received in December, January, April and May of each year. Other revenues, such as Transient Occupancy Tax, are received monthly but vary considerably because they are seasonal. On the disbursement side, payments for bonded indebtedness or large capital projects can reduce the portfolio substantially in the quarter that they occur. Significant fluctuations of this type will be discussed in the following section of this report. Securities in the City’s portfolio are priced by IDC, an independent pricing service at the end of every month. In some cases, the City may have investments with a current market value that is greater or less than the recorded value. These changes in market value are due to fluctuations in the marketplace having no effect on yield, as the City does not intend to sell securities prior to maturity. Nevertheless, these market changes will impact the total value of the portfolio as reported. At December 31, 2016 the market value of the portfolio was $358,007 less than the cost basis. The portfolio’s yield on a market basis as of December 31, 2016 was 1.35%, and the yield on a cost basis was 1.26%. (These amounts do not reflect the returns on the assets held by the bond trustee.) As of December 31, 2016, the investment portfolio was in compliance with all State laws, the City's Statement of Investment Policy and the City’s Investment Management Plan. Summary of Activity for the Quarter and Future Liquidity Cash receipts and disbursements are generally consistent with past trends for the quarter. The cash management program contains enough liquidity to meet the next six months of expected expenditures by the City as well as by related parties, such as the Whale Rock Commission. Report Contents and Distribution. This report includes the following four schedules on the City’s portfolio as of December 31, 2016: summary of investments held or managed by the City, trustees or PFM; summary of investment portfolio liquidity; investment details; and detail of holdings for each investment. These schedules have not yet been reviewed by the City’s independent auditor. If you have any questions concerning this report, or require additional information, contact Xenia Bradford, Interim Director of Finance at (805) 781-7125. DISTRIBUTION LIST City Council Heidi Harmon, Mayor Dan Rivoire, Vice Mayor Aaron Gomez, Council Member Andy Pease, Council Member Carlyn Christianson, Council Member Investment Oversight Committee Heidi Harmon, Mayor Derek Johnson, Assistant City Manager Xenia Bradford, Interim Finance Director/Treasurer Katie Lichtig, City Manager Rico Pardo, Accounting Manager/Controller Steven Barasch, Public Member Independent Auditor Allen E. Eschenbach, Glenn Burdette Attest Corporation PFM Asset Management Sarah Meacham, Managing Director Monique Skype, Portfolio Manager CITY OF SAN LUIS OBISPO SUMMARY OF INVESTMENTS As of December 31, 2016 Percent of Current Market Portfolio Yield Value Local Agency Investment Funds 64% 0.72% 27,409,573.46 Certificate of Deposit 2% 0.27% 1,000,000.00 Money Market Account 2% 0.25% 1,013,029.05 Checking Account 31% 0.25% 13,314,396.60 Treasury Issues 0% 0.00% 0.00 Total Investments Held by the City 100% 0.55% $42,736,999.11 Percent of Current Portfolio Yield Value Federal Agency Issues 48% 1.12% 35,856,081.95 Commercial Paper 11% 1.08% 8,665,612.55 Money Market Fund 0% 0.00% 211,258.88 US Corporate Notes 9% 1.58% 7,105,292.02 Negotiable CD 5% 1.74% 3,855,152.05 Treasury Issues 26% 1.39% 19,670,242.11 Total Investments Managed by Public Financial Management 100% 1.26% $75,363,639.56 Percent of Current Market Trustee Portfolio Yield Value First American Treasury Funds 1.94% 0.00% 87,574.54 Other Money Market Accounts 0.05% 0.02% 2,291.43 Certificate of Deposit 0.00% 0.00% Guaranteed Investment Contracts 45.03% see below 2,036,092.50 Federal Agency Issues 18.49% 2.53% 836,236.55 Treasury Issues 34.49% Varies 1,559,595.37 Total Investments Held by Trustees 100% $4,521,790.39 Total of all Investments--Market Value $122,622,429.06 INVESTMENTS HELD AND MANAGED BY THE CITY INVESTMENTS OF THE CITY MANAGED BY PUBLIC FINANCIAL MANAGEMENT INVESTMENTS OF THE CITY HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATIONS TOTAL CASH AND INVESTMENTS CITY OF SAN LUIS OBISPO SUMMARY OF INVESTMENT PORTFOLIO LIQUIDITY As of December 31, 2016 Managed Managed Percent of Market by City by PFM Portfolio Value On Demand 41,736,999.11 211,258.88 36% 41,948,257.99 Within Six Months 1,000,000.00 10,649,092.34 10% 11,649,092.34 Six Months to One Year 6,846,381.88 6% 6,846,381.88 Within One to Five Years 0.00 57,656,906.46 49% 57,656,906.46 Over Five Years 0% 0.00 TOTAL 42,736,999.11 $75,363,639.56 100% $118,100,638.67 Percent of Market Portfolio Value On Demand 2% 89,865.97 Within Six Months 0% 0.00 Six Months to One Year 0% 0.00 Within One to Five Years 25% 1,126,571.15 Over Five Years 73% 3,305,353.27 TOTAL 100% $4,521,790.39 Total of all Investments--Market Value $122,622,429.06 CITY OF SAN LUIS OBISPO INVESTMENT DETAIL As of December 31, 2016 Agency Investment Coupon Current Purchase Maturity Market (Broker) Description Rate Yield Date Date Value Local Agency Money Market Fund On Investment Fund City NA 0.72% Varies Demand 27,341,731.64 Local Agency Money Market Fund On Investment Fund CIB NA 0.72% Varies Demand 67,841.82 On Bank of America Checking Account NA 0.25% Varies Demand 13,314,396.60 Collateralized Heritage Oaks Certificate of Deposit NA 0.27% 12/20/2013 3/19/2017 1,000,000.00 On Heritage Oaks Money Market Account NA 0.25% 1/24/2012 Demand 1,013,029.05 TOTAL $42,736,999.11 INVESTMENTS HELD BY THE CITY AND THOSE MANAGED BY PUBLIC FINANCIAL MANAGEMENT (PFM) INVESTMENTS HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATIONS TOTAL CASH AND INVESTMENTS INVESTMENTS HELD AND MANAGED BY THE CITY CITY OF SAN LUIS OBISPO INVESTMENT DETAIL As of December 31, 2016 Agency Investment Coupon Current Purchase Maturity Market (Broker) Description Rate Yield Date Date Value 2005 Refunding Lease Revenue Bonds U. S. Bank First American Corporate Trust Services Treasury Fund N/A 0.00% Varies on demand - U. S. Bank United States Corporate Trust Services Treasury Bonds 6.00% 4.26% 6/26/96 2/15/26 760,336.92 2006 Lease Revenue Bonds U. S. Bank First American Corporate Trust Services Treasury Fund N/A 0.00% Varies on demand 28,054.11 Guaranteed FSA Capital Investment Contract Management Services LLC Treasury Fund 5.545% 5.545% 5/11/06 5/26/36 1,000,745.00 2006 Water Revenue Bonds U. S. Bank First American Corporate Trust Services Treasury Fund N/A 0.00% Varies on demand 28,029.62 Guaranteed FSA Capital Investment Contract Management Services LLC Treasury Fund 5.355% 5.355% 8/17/06 5/28/36 1,035,347.50 2009 Lease Revenue Bonds U. S. Bank First American Corporate Trust Services Treasury Fund N/A 0.00% Varies on demand $31,490.81 U. S. Bank Corporate Trust Services Federal Home Loan Bank 1.00% 0.99% 11/25/2014 6/21/2017 $35,052.50 U. S. Bank Fed Home Loan Mort. Corp Corporate Trust Services Medium term Note 0.75% 0.75% 11/25/2014 1/12/2018 $79,836.80 U. S. Bank Corporate Trust Services U.S. Treasury Note 0.88% 0.88% 11/25/2014 1/31/2018 $69,948.20 U. S. Bank Federal Nat'l Mtge. Assoc. Corporate Trust Services Debenture 0.88% 0.88% 11/25/2014 2/8/2018 $79,945.60 U. S. Bank Corporate Trust Services Federal Home Loan Bank 1.38% 1.36% 11/25/2014 3/9/18 $70,250.60 U. S. Bank Corporate Trust Services U.S. Treasury Note 1.38% 1.36% 11/25/2014 6/30/2018 $70,328.30 U. S. Bank Federal Nat'l Mtge. Assoc. Corporate Trust Services Debenture 1.88% 1.83% 11/25/2014 9/18/2018 $35,405.65 U. S. Bank Corporate Trust Services U.S. Treasury Note 1.50% 1.49% 11/25/2014 2/28/2019 $70,382.90 U. S. Bank Corporate Trust Services U.S. Treasury Note 1.13% 1.13% 11/25/2014 5/31/2019 $79,675.20 U. S. Bank Fed Home Loan Mort. Corp Corporate Trust Services Debenture 1.25% 1.26% 11/25/2014 8/1/2019 $79,670.40 U. S. Bank Corporate Trust Services Federal Nat'l Mtge. Assoc. 1.75% 1.74% 11/25/2014 9/12/2019 $50,475.00 INVESTMENTS HELD BY TRUSTEES FOR BOND DEBT SERVICE OBLIGATIONS 2012 Water Revenue Refunding Bonds (Refunded 2002 Water Revenue Bonds) U. S. Bank U.S Bank Money Corporate Trust Services Market Account N/A 0.02% Varies on demand $2,251.25 U. S. Bank United States Corporate Trust Services Treasury Bond 2.00% 2.00% Varies 11/15/21 $225,623.25 U. S. Bank United States Corporate Trust Services Treasury Note 7.125% 5.150% Varies 2/15/23 $283,300.60 2012 Revenue Refunding Bonds (Refunded 2001 Revenue Refunding Bonds) U. S. Bank U.S Bank Money Corporate Trust Services Market Account NA 0.00% Varies on demand $40.18 U. S. Bank Corporate Trust Services Federal Home Loan Bank 5.50% 5.21% Varies 8/15/16 $405,600.00 TOTAL $4,521,790.39 CITY OF SAN LUIS OBISPO INVESTMENT DETAIL As of December 31, 2016 The City of San Luis Obispo maintains certain performance objectives for the investments that are managed by Public Financial Management. The overall performance objective for the portfolio is to earn a total rate of return over the market cycle that equals or exceeds the market index. In order to achieve this objective the portfolio invests in high-quality money market instruments, US Treasury securities, Agency securities, and high-grade corporate securities, with a maximum maturity of five years. To monitor the achievement of this objective, the City uses a “Benchmark” to compare to. The benchmark which is used is based on the BofA Merrill Lynch Index of 0-5 year Treasury securities. Below is a summary of the monthly results as compared to the benchmark. While the City strives to achieve this performance objective every month, the goal is assumed to be met on an annual basis. The City of San Luis Obispo is currently just under the benchmark goals in most categories. We feel that through market trends and current investing adjustments, our performance will meet or exceed the benchmarks by the end of the fiscal year. Benchmark Comparison for the Quarter Ended 12/31/2016 Benchmark 12/31/2016 Portfolio 09/30/2016 Portfolio Average Maturity (yrs)2.31 2.21 2.19 Modified Duration 2.23 2.14 2.13 Average Purchase Yield N/A 1.26% 1.19% Average Market Yield 0.81% 1.35% 0.93% Average Quality AA+ AA+/Aa1 AA+/Aaa Total Market Value -$ 76,084,610$ 76,625,518$ The following pages provide a summary of the portfolio under management by Public Financial Management (PFM) as well as a detailed holding report for the month. MANAGED BY PUBLIC FINANCIAL MANAGEMENT © PFM City of San Luis Obispo Investment Report PFM Asset Management LLC 50 California Street Suite 2300 San Francisco, CA 94111 Monique Spyke, Managing Director Izac Chyou, Sr. Managing Consultant (415) 393 -7259 (415) 393 -7251 spykem@pfm.com chyoui@pfm.com © PFM © PFM 1 © PFM 2 © PFM 3 © PFM $0 $500 $1,000 $1,500 $2,000 $2,500 Dec '15 Mar '16 Jun '16 Sep '16 Dec '16 Assets in Money Market Funds Prime MMF Govt MMF 4 © PFM 5 © PFM 6 © PFM 7 © PFM 8 © PFM Probability of at least One Rate Hike 9 © PFM 10 © PFM © PFM 11 © PFM 12 © PFM 13 © PFM 14 © PFM 15 © PFM 16 © PFM 17 © PFM Sector Distribution —Managed 18 © PFM 19 © PFM AAA AA A <A A-1 NR 12/31/2016 1.6%80.1%6.9%0.0%11.4%0.0% 9/30/2016 2.1%81.7%5.0%0.0%11.3%0.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20 © PFM 21 © PFM 22 © PFM 23 © PFM 24 © PFM © PFM 25 © PFM 26 © PFM 27 © PFM 28 © PFM 29 © PFM 30 © PFM 31 © PFM City of San Luis Obispo Holdings Report For the Quarter Ending December 31, 2016 Security Description Settle Date YTM at Cost Par Cost Value Amortized Cost YTM at Market Market Value*Accrued Interest % of Portfolio Unreal G/L Amort Cost S&P/ Moody's Years to Maturity Duration LAIF LOCAL AGENCY INVESTMENT FUND Various 0.72%27,409,573.46 27,409,573.46 27,409,573.46 0.72%27,409,573.46 - 23.07%- NR NR 0.00 0.00 Total LAIF 0.72%27,409,573.46 27,409,573.46 27,409,573.46 0.72%27,409,573.46 - 23.07%- NR NR 0.00 0.00 Money Market Fund DREYFUS PRIME CASH MANAGEMNT MONEY MARKET FUND Various 0.00%211,258.88 211,258.88 211,258.88 0.00%211,258.88 - 0.18%- AAA Aaa 0.00 0.00 Total Money Market Fund 0.00%211,258.88 211,258.88 211,258.88 0.00%211,258.88 - 0.18%- AAA Aaa 0.00 0.00 Cash CASH ACCOUNT Various 0.25%13,314,396.60 13,314,396.60 13,314,396.60 0.25%13,314,396.60 - 11.21%- NR NR 0.00 0.00 CASH HERITAGE OAKS BANK MONEY MARKET RATE ACCOUNT Various 0.25%1,013,029.05 1,013,029.05 1,013,029.05 0.25%1,013,029.05 - 0.85%- NR NR 0.00 0.00 Total Cash 0.25%14,327,425.65 14,327,425.65 14,327,425.65 0.25%14,327,425.65 - 12.06%- NR NR 0.00 0.00 U.S. Treasury Bond/Note US TREASURY NOTES 912828TB6 0.75% Due 6/30/2017 6/7/2016 0.68%735,000.00 735,545.51 735,255.85 0.65%735,373.38 15.23 0.62%117.53 AA+ Aaa 0.50 0.50 US TREASURY NOTES 912828UE8 0.75% Due 12/31/2017 8/13/2013 1.28%625,000.00 611,061.66 621,758.61 0.92%623,974.38 12.95 0.53%2,215.77 AA+ Aaa 1.00 0.99 US TREASURY NOTES 912828UJ7 0.88% Due 1/31/2018 11/25/2014 1.06%70,000.00 69,603.75 69,863.92 0.94%69,948.06 256.32 0.06%84.14 AA+ Aaa 1.08 1.07 US TREASURY NOTES 912828UR9 0.75% Due 2/28/2018 4/24/2014 1.32%680,000.00 665,419.46 675,530.41 0.95%678,406.08 1,732.87 0.57%2,875.67 AA+ Aaa 1.16 1.15 US TREASURY NOTES 912828UR9 0.75% Due 2/28/2018 12/9/2015 1.06%80,000.00 79,456.25 79,715.08 0.95%79,812.48 203.87 0.07%97.40 AA+ Aaa 1.16 1.15 US TREASURY NOTES 912828VK3 1.38% Due 6/30/2018 11/25/2014 1.21%70,000.00 70,407.66 70,171.89 1.06%70,328.16 2.66 0.06%156.27 AA+ Aaa 1.50 1.48 US TREASURY NOTES 912828RY8 1.38% Due 12/31/2018 4/13/2015 1.10%600,000.00 606,070.31 603,295.19 1.21%601,945.20 22.79 0.51%(1,349.99) AA+ Aaa 2.00 1.97 US TREASURY NOTES 912828C24 1.50% Due 2/28/2019 11/25/2014 1.43%70,000.00 70,188.91 70,097.40 1.24%70,382.83 356.77 0.06%285.43 AA+ Aaa 2.16 2.11 US TREASURY NOTES 912828D23 1.63% Due 4/30/2019 11/14/2016 1.06%870,000.00 881,894.53 881,260.82 1.28%876,796.44 2,421.34 0.74%(4,464.38) AA+ Aaa 2.33 2.28 US TREASURY NOTES 912828SX9 1.13% Due 5/31/2019 11/25/2014 1.50%80,000.00 78,684.64 79,286.13 1.30%79,675.04 79.12 0.07%388.91 AA+ Aaa 2.41 2.37 US TREASURY NOTES 912828WL0 1.50% Due 5/31/2019 11/14/2016 1.06%905,000.00 914,898.44 914,393.38 1.31%909,171.15 1,193.41 0.77%(5,222.23) AA+ Aaa 2.41 2.36 US TREASURY NOTES 912828UF5 1.13% Due 12/31/2019 1/8/2015 1.48%775,000.00 761,891.60 766,992.90 1.46%767,461.58 24.08 0.65%468.68 AA+ Aaa 3.00 2.94 US TREASURY NOTES 912828H52 1.25% Due 1/31/2020 3/4/2016 1.24%1,000,000.00 1,000,546.88 1,000,435.50 1.49%992,656.00 5,230.98 0.84%(7,779.50) AA+ Aaa 3.08 3.00 US TREASURY NOTES 912828UQ1 1.25% Due 2/29/2020 11/9/2015 1.58%1,325,000.00 1,307,040.04 1,311,713.54 1.51%1,314,441.08 5,627.59 1.11%2,727.54 AA+ Aaa 3.16 3.07 US TREASURY NOTES 912828K58 1.38% Due 4/30/2020 2/3/2016 1.25%1,125,000.00 1,130,932.62 1,129,689.12 1.57%1,117,749.38 2,649.34 0.94%(11,939.74) AA+ Aaa 3.33 3.23 US TREASURY NOTES 912828ND8 3.50% Due 5/15/2020 5/29/2015 1.50%1,300,000.00 1,423,550.78 1,384,907.89 1.58%1,381,809.00 5,907.46 1.16%(3,098.89) AA+ Aaa 3.37 3.18 US TREASURY NOTES 912828VF4 1.38% Due 5/31/2020 12/4/2015 1.56%900,000.00 892,792.97 894,477.29 1.57%894,304.80 1,087.91 0.75%(172.49) AA+ Aaa 3.42 3.32 32 City of San Luis Obispo Holdings Report For the Quarter Ending December 31, 2016 Security Description Settle Date YTM at Cost Par Cost Value Amortized Cost YTM at Market Market Value*Accrued Interest % of Portfolio Unreal G/L Amort Cost S&P/ Moody's Years to Maturity Duration US TREASURY NOTES 912828XH8 1.63% Due 6/30/2020 7/15/2015 1.70%2,505,000.00 2,496,193.36 2,498,717.84 1.61%2,506,174.85 112.45 2.11%7,457.01 AA+ Aaa 3.50 3.39 US TREASURY NOTES 912828XM7 1.63% Due 7/31/2020 3/30/2016 1.27%985,000.00 999,775.00 997,260.59 1.64%984,345.96 6,698.27 0.83%(12,914.63) AA+ Aaa 3.58 3.44 US TREASURY NOTES 912828N89 1.38% Due 1/31/2021 6/7/2016 1.25%1,235,000.00 1,241,995.12 1,241,168.18 1.78%1,215,268.41 7,106.28 1.02%(25,899.77) AA+ Aaa 4.09 3.93 US TREASURY NOTES 912828B90 2.00% Due 2/28/2021 10/5/2016 1.15%1,700,000.00 1,761,890.63 1,758,555.80 1.80%1,713,547.30 11,552.49 1.44%(45,008.50) AA+ Aaa 4.16 3.95 US TREASURY N/B 912828WY2 2.25% Due 7/31/2021 11/23/2016 1.78%685,000.00 699,556.25 699,244.41 1.89%695,729.84 6,449.80 0.59%(3,514.57) AA+ Aaa 4.58 4.30 US TREASURY NOTES 912828D72 2.00% Due 8/31/2021 12/5/2016 1.92%1,575,000.00 1,580,537.11 1,580,459.27 1.91%1,581,274.80 10,703.04 1.33%815.53 AA+ Aaa 4.67 4.40 Total U.S. Treasury Bond/Note 1.39%19,895,000.00 20,079,933.48 20,064,251.01 1.52%19,960,576.20 69,447.02 16.80%(103,674.81) AA+ Aaa 3.19 3.07 Federal Agency Bond/Note FNMA NOTES (EX-CALLABLE) 3136FPYB7 2.05% Due 5/23/2017 8/7/2012 0.90%365,000.00 384,739.20 366,655.45 0.75%366,858.58 789.82 0.31%203.13 AA+ Aaa 0.39 0.40 FEDERAL HOME LOAN BANK GLOBAL NOTES 313379DD8 1.00% Due 6/21/2017 11/25/2014 0.84%35,000.00 35,144.20 35,026.71 0.68%35,052.54 9.72 0.03%25.83 AA+ Aaa 0.47 0.47 FREDDIE MAC GLOBAL NOTES 3137EADH9 1.00% Due 6/29/2017 7/30/2012 0.85%775,000.00 780,673.00 775,581.66 0.68%776,191.18 43.06 0.65%609.52 AA+ Aaa 0.49 0.50 FREDDIE MAC GLOBAL NOTES 3137EADH9 1.00% Due 6/29/2017 12/14/2012 0.74%135,000.00 136,587.60 135,175.43 0.68%135,207.50 7.50 0.11%32.07 AA+ Aaa 0.49 0.50 FREDDIE MAC GLOBAL NOTES 3137EADJ5 1.00% Due 7/28/2017 11/26/2012 0.80%900,000.00 908,316.00 901,040.23 0.73%901,398.60 3,825.00 0.76%358.37 AA+ Aaa 0.57 0.57 FREDDIE MAC GLOBAL NOTES 3137EADJ5 1.00% Due 7/28/2017 3/23/2015 0.82%495,000.00 497,019.60 495,498.50 0.73%495,769.23 2,103.75 0.42%270.73 AA+ Aaa 0.57 0.57 FREDDIE MAC GLOBAL NOTES 3137EADJ5 1.00% Due 7/28/2017 7/15/2015 0.76%1,235,000.00 1,241,002.10 1,236,704.25 0.73%1,236,919.19 5,248.75 1.04%214.94 AA+ Aaa 0.57 0.57 FHLB NOTES 3130A62S5 0.75% Due 8/28/2017 8/3/2015 0.78%650,000.00 649,662.00 649,910.82 0.78%649,877.15 1,665.63 0.55%(33.67) AA+ Aaa 0.66 0.65 FANNIE MAE GLOBAL NOTES 3135G0MZ3 0.88% Due 8/28/2017 6/20/2014 1.10%625,000.00 620,687.50 624,125.49 0.77%625,429.38 1,868.49 0.53%1,303.89 AA+ Aaa 0.66 0.65 FREDDIE MAC GLOBAL NOTES 3137EADL0 1.00% Due 9/29/2017 1/4/2013 0.89%950,000.00 954,788.00 950,766.16 0.87%950,920.55 2,427.78 0.80%154.39 AA+ Aaa 0.75 0.74 FANNIE MAE GLOBAL NOTES 3135G0PQ0 0.88% Due 10/26/2017 6/20/2014 1.17%625,000.00 618,987.50 623,508.55 0.86%625,087.50 987.41 0.53%1,578.95 AA+ Aaa 0.82 0.81 FHLMC NOTES 3137EADN6 0.75% Due 1/12/2018 10/1/2014 1.26%800,000.00 787,008.00 795,862.11 0.95%798,369.60 2,816.67 0.67%2,507.49 AA+ Aaa 1.03 1.02 FHLMC NOTES 3137EADN6 0.75% Due 1/12/2018 11/25/2014 1.11%80,000.00 79,123.36 79,708.14 0.95%79,836.96 281.67 0.07%128.82 AA+ Aaa 1.03 1.02 FANNIE MAE GLOBAL NOTES 3135G0TG8 0.88% Due 2/8/2018 11/25/2014 1.14%80,000.00 79,335.84 79,768.72 0.94%79,945.60 278.06 0.07%176.88 AA+ Aaa 1.11 1.09 FREDDIE MAC GLOBAL NOTES 3137EADP1 0.88% Due 3/7/2018 11/20/2014 1.20%900,000.00 890,469.00 896,538.02 0.99%898,832.70 2,493.75 0.76%2,294.68 AA+ Aaa 1.18 1.17 FHLB NOTES 313378A43 1.38% Due 3/9/2018 11/25/2014 1.20%70,000.00 70,393.40 70,144.08 1.07%70,250.39 299.44 0.06%106.31 AA+ Aaa 1.19 1.17 FEDERAL HOME LOAN BANKS AGCY 3130A8BD4 0.88% Due 6/29/2018 6/6/2016 0.87%3,495,000.00 3,495,174.75 3,495,124.46 1.11%3,482,847.89 169.90 2.93%(12,276.57) AA+ Aaa 1.49 1.48 FNMA NOTES 3135G0E33 1.13% Due 7/20/2018 7/15/2015 1.17%1,250,000.00 1,248,325.00 1,249,129.59 1.12%1,250,020.00 6,289.06 1.05%890.41 AA+ Aaa 1.55 1.53 FANNIE MAE GLOBAL NOTES 3135G0YM9 1.88% Due 9/18/2018 11/25/2014 1.39%35,000.00 35,626.29 35,285.60 1.19%35,405.65 187.76 0.03%120.05 AA+ Aaa 1.72 1.68 FHLB GLOBAL NOTE 3130A9AE1 0.88% Due 10/1/2018 8/26/2016 0.91%1,100,000.00 1,099,252.00 1,099,373.54 1.19%1,093,946.70 2,406.25 0.92%(5,426.84) AA+ Aaa 1.75 1.73 FHLB NOTES 3130AAE46 1.25% Due 1/16/2019 12/8/2016 1.25%1,530,000.00 1,529,938.80 1,529,938.80 1.27%1,529,466.03 1,221.88 1.29%(472.77) AA+ Aaa 2.04 2.01 FNMA BENCHMARK NOTE 3135G0H63 1.38% Due 1/28/2019 1/8/2016 1.40%1,440,000.00 1,439,107.20 1,439,387.32 1.31%1,441,998.72 8,415.00 1.21%2,611.40 AA+ Aaa 2.08 2.03 FNMA BENCHMARK NOTE 3135G0H63 1.38% Due 1/28/2019 2/16/2016 0.96%335,000.00 339,043.45 337,856.15 1.31%335,464.98 1,957.66 0.28%(2,391.17) AA+ Aaa 2.08 2.03 FNMA BENCHMARK NOTE 3135G0J53 1.00% Due 2/26/2019 5/16/2016 0.96%375,000.00 375,420.00 375,327.29 1.29%372,668.63 1,302.08 0.31%(2,658.66) AA+ Aaa 2.16 2.11 FNMA BENCHMARK NOTE 3135G0J53 1.00% Due 2/26/2019 6/2/2016 1.11%305,000.00 304,112.45 304,299.65 1.29%303,103.82 1,059.03 0.26%(1,195.83) AA+ Aaa 2.16 2.11 FNMA BENCHMARK NOTE 3135G0J53 1.00% Due 2/26/2019 6/6/2016 0.96%3,980,000.00 3,984,338.20 3,983,448.95 1.29%3,955,256.34 13,819.44 3.33%(28,192.61) AA+ Aaa 2.16 2.11 FREDDIE MAC NOTES 3137EADZ9 1.13% Due 4/15/2019 3/21/2016 1.14%810,000.00 809,732.00 809,798.01 1.30%806,721.93 1,923.75 0.68%(3,076.08) AA+ Aaa 2.29 2.25 33 City of San Luis Obispo Holdings Report For the Quarter Ending December 31, 2016 Security Description Settle Date YTM at Cost Par Cost Value Amortized Cost YTM at Market Market Value*Accrued Interest % of Portfolio Unreal G/L Amort Cost S&P/ Moody's Years to Maturity Duration FREDDIE MAC NOTES 3137EADZ9 1.13% Due 4/15/2019 3/29/2016 1.12%70,000.00 70,004.90 70,003.64 1.30%69,716.71 166.25 0.06%(286.93) AA+ Aaa 2.29 2.25 FNMA NOTES 3135G0ZE6 1.75% Due 6/20/2019 8/5/2014 1.74%350,000.00 350,227.50 350,118.91 1.32%353,670.10 187.15 0.30%3,551.19 AA+ Aaa 2.47 2.41 FNMA NOTES 3135G0ZE6 1.75% Due 6/20/2019 10/2/2014 1.77%500,000.00 499,630.00 499,804.99 1.32%505,243.00 267.36 0.43%5,438.01 AA+ Aaa 2.47 2.41 FNMA NOTES 3135G0ZE6 1.75% Due 6/20/2019 11/21/2014 1.71%100,000.00 100,157.00 100,086.44 1.32%101,048.60 53.47 0.09%962.16 AA+ Aaa 2.47 2.41 FHLMC REFERENCE NOTE 3137EAEB1 0.88% Due 7/19/2019 7/20/2016 0.96%1,275,000.00 1,271,914.50 1,272,369.36 1.40%1,258,158.53 4,989.32 1.06%(14,210.83) AA+ Aaa 2.55 2.50 FREDDIE MAC GLOBAL NOTES 3137EADK2 1.25% Due 8/1/2019 9/15/2014 1.88%1,050,000.00 1,019,077.50 1,033,276.13 1.41%1,045,677.15 5,468.75 0.88%12,401.02 AA+ Aaa 2.58 2.52 FREDDIE MAC GLOBAL NOTES 3137EADK2 1.25% Due 8/1/2019 11/25/2014 1.70%80,000.00 78,388.80 79,095.87 1.41%79,670.64 416.67 0.07%574.77 AA+ Aaa 2.58 2.52 FNMA BENCHMARK NOTE 3135G0N33 0.88% Due 8/2/2019 8/2/2016 0.93%2,350,000.00 2,346,052.00 2,346,590.36 1.42%2,317,356.15 8,510.59 1.95%(29,234.21) AA+ Aaa 2.59 2.54 FNMA NOTES 3135G0ZG1 1.75% Due 9/12/2019 2/9/2015 1.36%260,000.00 264,505.80 262,680.97 1.39%262,470.00 1,377.64 0.22%(210.97) AA+ Aaa 2.70 2.62 FNMA NOTES 3135G0ZG1 1.75% Due 9/12/2019 11/25/2014 1.73%50,000.00 50,034.65 50,020.09 1.39%50,475.00 264.93 0.04%454.91 AA+ Aaa 2.70 2.62 FREDDIE MAC GLOBAL NOTES 3137EADM8 1.25% Due 10/2/2019 12/30/2015 1.65%700,000.00 689,857.00 692,509.06 1.47%695,905.70 2,163.19 0.59%3,396.64 AA+ Aaa 2.75 2.69 FHLB NOTES 3130AA3R7 1.38% Due 11/15/2019 11/17/2016 1.38%1,395,000.00 1,394,679.15 1,394,691.94 1.52%1,389,439.53 2,344.38 1.17%(5,252.41) AA+ Aaa 2.87 2.80 FNMA NOTES 3135G0A78 1.63% Due 1/21/2020 4/30/2015 1.54%580,000.00 582,233.00 581,465.30 1.53%581,716.80 4,188.89 0.49%251.50 AA+ Aaa 3.06 2.95 FNMA NOTES 3135G0J20 1.38% Due 2/26/2021 5/19/2016 1.42%520,000.00 518,850.80 518,997.89 1.86%509,862.60 2,482.64 0.43%(9,135.29) AA+ Aaa 4.16 3.99 FNMA BENCHMARK NOTE 3135G0K69 1.25% Due 5/6/2021 8/2/2016 1.16%1,485,000.00 1,491,311.25 1,490,780.57 1.93%1,442,926.98 2,835.94 1.21%(47,853.59) AA+ Aaa 4.35 4.19 FNMA NOTES 3135G0N82 1.25% Due 8/17/2021 8/19/2016 1.33%1,045,000.00 1,040,767.75 1,041,069.09 2.01%1,009,961.15 4,789.58 0.85%(31,107.94) AA+ Aaa 4.63 4.44 FNMA NOTES 3135G0N82 1.25% Due 8/17/2021 8/19/2016 1.32%325,000.00 323,888.18 323,967.36 2.01%314,102.75 1,489.58 0.26%(9,864.61) AA+ Aaa 4.63 4.44 FNMA NOTES 3135G0N82 1.25% Due 8/17/2021 9/2/2016 1.38%1,000,000.00 993,880.00 994,276.30 2.01%966,470.00 4,583.33 0.81%(27,806.30) AA+ Aaa 4.63 4.44 Total Federal Agency Bond/Note 1.12%36,510,000.00 36,479,466.22 36,476,787.95 1.26%36,286,718.73 110,477.97 30.54%(190,069.22) AA+ Aaa 2.10 2.05 Negotiable CD HERITAGE OAKS BANK YANKEE CD 0.25% Due 12/20/2016 12/20/2015 0.27%1,000,000.00 1,000,000.00 1,000,000.00 0.27%1,000,000.00 18.33 0.84%- NR NR 0.24 0.49 ROYAL BANK OF CANADA NY CD 78009NZZ2 1.70% Due 3/9/2018 3/15/2016 1.69%830,000.00 830,000.00 830,000.00 1.57%830,942.05 4,389.78 0.70%942.05 AA- Aa3 1.19 1.18 CANADIAN IMPERIAL BANK NY CD 13606A5Z7 1.76% Due 11/30/2018 12/5/2016 1.78%1,500,000.00 1,498,830.00 1,498,873.58 1.25%1,512,105.00 1,980.00 1.27%13,231.42 A+ Aa3 1.92 1.90 NORDEA BANK FINLAND NY CD 65558LWA6 1.76% Due 11/30/2018 12/5/2016 1.74%1,500,000.00 1,500,000.00 1,500,000.00 1.25%1,512,105.00 1,980.00 1.27%12,105.00 AA- Aa3 1.92 1.90 Total Negotiable CD 1.44%4,830,000.00 4,828,830.00 4,828,873.58 1.10%4,855,152.05 8,368.11 4.09%26,278.47 A A1 1.44 1.49 Commercial Paper BNP PARIBAS NY BRANCH COMM PAPER 09659BN30 0.00% Due 1/3/2017 4/8/2016 1.04%1,250,000.00 1,240,343.75 1,249,928.48 0.78%1,249,918.75 - 1.05%(9.73) A-1 P-1 0.01 0.01 TOYOTA MOTOR CREDIT CORP COMM PAPER 89233GN36 0.00% Due 1/3/2017 6/7/2016 0.87%1,000,000.00 994,925.00 999,951.67 0.78%999,935.00 - 0.84%(16.67) A-1+ P-1 0.01 0.01 TOYOTA MOTOR CREDIT CORP COMM PAPER 89233GPA8 0.00% Due 2/10/2017 5/16/2016 1.01%1,000,000.00 992,500.00 998,888.89 0.72%999,181.00 - 0.84%292.11 A-1+ P-1 0.11 0.11 BANK OF MONTREAL CHICAGO COMM PAPER 06366GQ36 0.00% Due 3/3/2017 6/10/2016 1.03%1,030,000.00 1,022,220.34 1,028,215.95 0.92%1,028,372.60 - 0.87%156.65 A-1 P-1 0.17 0.17 BNP PARIBAS NY BRANCH COMM PAPER 09659BQ37 0.00% Due 3/3/2017 6/7/2016 1.06%1,000,000.00 992,154.17 998,220.83 0.88%998,483.00 - 0.84%262.17 A-1 P-1 0.17 0.17 JP MORGAN SECURITIES LLC COMM PAPER 46640PQ30 0.00% Due 3/3/2017 6/7/2016 1.07%1,000,000.00 992,079.44 998,203.89 0.74%998,723.00 - 0.84%519.11 A-1 P-1 0.17 0.17 BANK OF TOKYO MITSUBISHI COMM PAPER 06538BR39 0.00% Due 4/3/2017 10/4/2016 1.26%500,000.00 496,857.64 498,402.78 0.98%498,740.00 - 0.42%337.22 A-1 P-1 0.25 0.25 CREDIT AGRICOLE CIB NY COMM PAPER 22533TRA6 0.00% Due 4/10/2017 10/12/2016 1.21%900,000.00 894,600.00 897,030.00 1.00%897,505.20 - 0.76%475.20 A-1 P-1 0.27 0.27 BANK TOKYO-MIT UFJ NY COMM PAPER 06538BT52 0.00% Due 6/5/2017 12/7/2016 1.28%1,000,000.00 993,650.00 994,531.94 1.22%994,754.00 - 0.84%222.06 A-1 P-1 0.43 0.42 34 City of San Luis Obispo Holdings Report For the Quarter Ending December 31, 2016 Security Description Settle Date YTM at Cost Par Cost Value Amortized Cost YTM at Market Market Value*Accrued Interest % of Portfolio Unreal G/L Amort Cost S&P/ Moody's Years to Maturity Duration Total Commercial Paper 1.08%8,680,000.00 8,619,330.34 8,663,374.43 0.88%8,665,612.55 - 7.29%2,238.12 AA+ Aa1 0.17 0.17 Corporate Note BERKSHIRE HATHAWAY FIN GLOBAL NOTES 084664BS9 1.60% Due 5/15/2017 4/24/2013 1.00%700,000.00 716,765.00 701,565.12 1.09%701,305.50 1,431.11 0.59%(259.62) AA Aa2 0.37 0.37 IBM CORP NOTES 459200HZ7 1.13% Due 2/6/2018 2/9/2015 1.16%750,000.00 749,317.50 749,747.08 1.33%748,295.25 3,398.44 0.63%(1,451.83) AA- Aa3 1.10 1.08 TOYOTA MOTOR CREDIT CORP 89236TCP8 1.55% Due 7/13/2018 7/13/2015 1.58%490,000.00 489,583.50 489,784.68 1.57%489,877.99 3,544.33 0.41%93.31 AA- Aa3 1.53 1.50 AMERICAN HONDA FINANCE CORP NOTES 02665WBA8 1.70% Due 2/22/2019 2/23/2016 1.71%390,000.00 389,922.00 389,943.82 1.90%388,402.56 2,375.75 0.33%(1,541.26) A+ A1 2.15 2.08 BERKSHIRE HATHAWAY INC NOTES 084664CG4 1.70% Due 3/15/2019 3/15/2016 1.73%195,000.00 194,851.80 194,890.33 1.74%194,827.23 976.08 0.16%(63.10) AA Aa2 2.20 2.15 BERKSHIRE HATHAWAY INC CORPORATE NOTES 084664CK5 1.30% Due 8/15/2019 8/15/2016 1.33%240,000.00 239,767.20 239,796.03 1.78%237,085.44 1,178.67 0.20%(2,710.59) AA Aa2 2.62 2.55 BURLINGTON NRTH CORP 12189TBC7 4.70% Due 10/1/2019 6/8/2016 1.48%500,000.00 551,950.00 543,289.24 1.87%537,717.00 5,875.00 0.45%(5,572.24) A A3 2.75 2.57 MICROSOFT CORP NOTE 594918AY0 1.85% Due 2/12/2020 4/13/2015 1.58%1,000,000.00 1,012,570.00 1,008,216.29 1.87%999,362.00 7,143.06 0.84%(8,854.29) AAA Aaa 3.12 2.99 BNY MELLON CORP NOTE (CALLABLE) 06406HDD8 2.60% Due 8/17/2020 6/8/2016 1.81%960,000.00 990,316.80 986,295.99 2.39%966,989.76 9,290.67 0.81%(19,306.23) A A1 3.63 3.33 BONY MELLON CORP NOTE (CALLABLE) 06406HDF3 2.45% Due 11/27/2020 8/18/2016 1.70%865,000.00 891,564.15 889,305.95 2.44%865,314.86 2,001.51 0.73%(23,991.09) A A1 3.91 3.63 WELLS FARGO & COMPANY NOTES 94974BGR5 2.55% Due 12/7/2020 6/8/2016 2.02%975,000.00 997,191.00 994,516.11 2.52%976,114.43 1,657.50 0.82%(18,401.68) A A2 3.94 3.71 Total Corporate Note 1.58%7,065,000.00 7,223,798.95 7,187,350.64 1.94%7,105,292.02 38,872.12 5.98%(82,058.62) AA- Aa3 2.68 2.53 Total Portfolio 1.00%118,928,257.99 119,179,616.98 119,168,895.60 1.06%118,821,609.54 227,165.22 100.00%(347,286.06) AA+1.41 1.37 Total Market Value Plus Accrued 119,048,774.76 *Generally, PFM’s market prices are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, 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. Prices that fall between data points are interpolated. Non-negotiable FDIC-insured bank certificates of deposit are priced at par. Although PFM believes the prices to be reliable, the values of the securities do not always represent the prices at which the securities could have been bought or sold. 35 © PFM CITY OF SAN LUIS OBISPO OPERATING FUNDS For the Quarter Ended December 31, 2016 Portfolio Activity Quarterly Portfolio Transactions Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon BUY 10/3/16 10/5/16 1,700,000 912828B90 US TREASURY NOTES 2/28/21 1,765,177.92 1.15%2.00% 10/4/16 10/4/16 500,000 06538BR39 BANK OF TOKYO MITSUBISHI COMM PAPER 4/3/17 496,857.64 1.26%0.00% 10/11/16 10/12/16 900,000 22533TRA6 CREDIT AGRICOLE CIB NY COMM PAPER 4/10/17 894,600.00 1.21%0.00% 11/10/16 11/14/16 870,000 912828D23 US TREASURY NOTES 4/30/19 882,441.28 1.06%1.62% 11/10/16 11/14/16 905,000 912828WL0 US TREASURY NOTES 5/31/19 921,092.50 1.06%1.50% 11/16/16 11/17/16 1,395,000 3130AA3R7 FHLB NOTES 11/15/19 1,394,679.15 1.38%1.37% 11/22/16 11/23/16 685,000 912828WY2 US TREASURY N/B 7/31/21 704,372.66 1.78%2.25% 12/1/16 12/5/16 1,500,000 13606A5Z7 CANADIAN IMPERIAL BANK NY CD 11/30/18 1,498,830.00 1.78%1.76% 12/1/16 12/5/16 1,575,000 912828D72 US TREASURY NOTES 8/31/21 1,588,890.70 1.92%2.00% 12/1/16 12/5/16 1,500,000 65558LWA6 NORDEA BANK FINLAND NY CD 11/30/18 1,500,000.00 1.74%1.76% 12/7/16 12/7/16 1,000,000 06538BT52 BANK TOKYO-MIT UFJ NY COMM PAPER 6/5/17 993,650.00 1.28%0.00% 12/7/16 12/8/16 1,530,000 3130AAE46 FHLB NOTES 1/16/19 1,529,938.80 1.25%1.25% 14,060,000 14,170,530.65Total BUY INTEREST 10/1/16 10/1/16 500,000 12189TBC7 BURLINGTON NRTH CORP 10/1/19 11,750.00 4.70% 10/1/16 10/1/16 1,100,000 3130A9AE1 FHLB GLOBAL NOTE 10/1/18 935.76 0.87% 10/2/16 10/2/16 700,000 3137EADM8 FREDDIE MAC GLOBAL NOTES 10/2/19 4,375.00 1.25% 10/4/16 10/4/16 0 MONEY0002 MONEY MARKET FUND 67.73 10/15/16 10/15/16 810,000 3137EADZ9 FREDDIE MAC NOTES 4/15/19 5,163.75 1.12% 10/15/16 10/15/16 950,000 3137EADZ9 FREDDIE MAC NOTES 4/15/19 6,056.25 1.12% 10/26/16 10/26/16 625,000 3135G0PQ0 FANNIE MAE GLOBAL NOTES 10/26/17 2,734.38 0.87% 10/31/16 10/31/16 1,125,000 912828K58 US TREASURY NOTES 4/30/20 7,734.38 1.37% 11/2/16 11/2/16 0 MONEY0002 MONEY MARKET FUND 22.90 PFM Asset Management LLC 36 CITY OF SAN LUIS OBISPO OPERATING FUNDS For the Quarter Ended December 31, 2016 Portfolio Activity Trade Date Settle Date Maturity DatePar ($)CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 11/6/16 11/6/16 1,485,000 3135G0K69 FNMA BENCHMARK NOTE 5/6/21 8,765.63 1.25% 11/12/16 11/12/16 500,000 3137EADF3 FHLMC NOTES 5/12/17 3,125.00 1.25% 11/15/16 11/15/16 1,300,000 912828ND8 US TREASURY NOTES 5/15/20 22,750.00 3.50% 11/15/16 11/15/16 700,000 084664BS9 BERKSHIRE HATHAWAY FIN GLOBAL NOTES 5/15/17 5,600.00 1.60% 11/23/16 11/23/16 365,000 3136FPYB7 FNMA NOTES (EX-CALLABLE)5/23/17 3,741.25 2.05% 11/27/16 11/27/16 865,000 06406HDF3 BONY MELLON CORP NOTE (CALLABLE)11/27/20 10,596.25 2.45% 11/30/16 11/30/16 515,000 3130A5EP0 FHLB GLOBAL NOTES 5/30/17 1,609.38 0.62% 11/30/16 11/30/16 905,000 912828WL0 US TREASURY NOTES 5/31/19 6,787.50 1.50% 11/30/16 11/30/16 135,000 912828SY7 US TREASURY NOTES 5/31/17 421.88 0.62% 11/30/16 11/30/16 900,000 912828VF4 US TREASURY NOTES 5/31/20 6,187.50 1.37% 12/2/16 12/2/16 0 MONEY0002 MONEY MARKET FUND 21.88 12/7/16 12/7/16 975,000 94974BGR5 WELLS FARGO & COMPANY NOTES 12/7/20 12,431.25 2.55% 12/20/16 12/20/16 100,000 3135G0ZE6 FNMA NOTES 6/20/19 875.00 1.75% 12/20/16 12/20/16 500,000 3135G0ZE6 FNMA NOTES 6/20/19 4,375.00 1.75% 12/20/16 12/20/16 350,000 3135G0ZE6 FNMA NOTES 6/20/19 3,062.50 1.75% 12/29/16 12/29/16 135,000 3137EADH9 FREDDIE MAC GLOBAL NOTES 6/29/17 675.00 1.00% 12/29/16 12/29/16 3,495,000 3130A8BD4 FEDERAL HOME LOAN BANKS AGCY 6/29/18 15,290.63 0.87% 12/29/16 12/29/16 775,000 3137EADH9 FREDDIE MAC GLOBAL NOTES 6/29/17 3,875.00 1.00% 12/31/16 12/31/16 2,505,000 912828XH8 US TREASURY NOTE 6/30/20 20,353.13 1.62% 12/31/16 12/31/16 600,000 912828RY8 US TREASURY NOTES 12/31/18 4,125.00 1.37% 12/31/16 12/31/16 625,000 912828UE8 US TREASURY NOTES 12/31/17 2,343.75 0.75% 12/31/16 12/31/16 735,000 912828TB6 US TREASURY NOTES 6/30/17 2,756.25 0.75% 12/31/16 12/31/16 775,000 912828UF5 US TREASURY NOTES 12/31/19 4,359.38 1.12% 25,050,000 182,968.31Total INTEREST MATURITY 10/4/16 10/4/16 500,000 06538BK44 BANK OF TOKYO MITSUBISHI LTD COMM PAPER 10/4/16 500,000.00 0.00 0.00% 10/11/16 10/11/16 900,000 46640PKB8 JP MORGAN SECURITIES LLC COMM PAPER 10/11/16 900,000.00 0.00 0.00% PFM Asset Management LLC 37 CITY OF SAN LUIS OBISPO OPERATING FUNDS For the Quarter Ended December 31, 2016 Portfolio Activity Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon 12/6/16 12/6/16 1,000,000 06538BM67 BANK OF TOKYO MITSUBISHI UFJ COMM PAPER 12/6/16 1,000,000.00 0.00 0.00% 2,400,000 2,400,000.00 0.00Total MATURITY SELL 10/3/16 10/5/16 1,245,000 3130A0C65 FHLB NOTES 12/28/16 1,247,868.51 0.36% 542.04 0.62% 11/10/16 11/14/16 880,000 3137EADZ9 FREDDIE MAC NOTES 4/15/19 881,492.70 1.09% 643.95 1.12% 11/10/16 11/14/16 900,000 3137EADG1 FREDDIE MAC NOTES 5/30/19 922,493.00 1.07% 13,475.43 1.75% 11/16/16 11/17/16 700,000 3135G0A78 FNMA NOTES 1/21/20 708,712.28 1.39% 6,949.49 1.62% 11/16/16 11/17/16 690,000 3135G0A78 FNMA NOTES 1/21/20 698,587.81 1.39% 3,163.79 1.62% 11/22/16 11/23/16 725,000 3130A8QS5 FHLB GLOBAL NOTE 7/14/21 706,194.41 1.80% (17,624.53)1.12% 12/1/16 12/5/16 135,000 912828SY7 US TREASURY NOTES 5/31/17 135,006.32 0.63%(5.97)0.62% 12/1/16 12/5/16 865,000 31331KBX7 FFCB NOTES 2/10/17 876,620.43 0.51% 348.34 2.87% 12/1/16 12/5/16 700,000 313379DD8 FEDERAL HOME LOAN BANK GLOBAL NOTES 6/21/17 704,322.89 0.70%(11.14)1.00% 12/1/16 12/5/16 1,000,000 3137EADC0 FREDDIE MAC GLOBAL NOTES 3/8/17 1,003,586.67 0.55% 1,914.15 1.00% 12/1/16 12/5/16 800,000 3135G0GY3 FANNIE MAE GLOBAL NOTES 1/30/17 804,440.22 0.46% 745.14 1.25% 12/1/16 12/5/16 500,000 3137EADF3 FHLMC NOTES 5/12/17 501,744.31 0.63% 409.98 1.25% 12/1/16 12/5/16 515,000 3130A5EP0 FHLB GLOBAL NOTES 5/30/17 514,972.61 0.65% 30.25 0.62% 12/7/16 12/8/16 575,000 912828TB6 US TREASURY NOTES 6/30/17 577,178.71 0.66% 1,671.99 0.75% 12/7/16 12/8/16 955,000 912828TB6 US TREASURY NOTES 6/30/17 958,618.55 0.66% 109.03 0.75% 11,185,000 11,241,839.42 12,361.94Total SELL PFM Asset Management LLC 38 CITY OF SAN LUIS OBISPO RESERVE ACCOUNT For the Quarter Ended December 31, 2016 Portfolio Activity Quarterly Portfolio Transactions Trade Date Settle Date Maturity DatePar ($) CUSIP Security Description Transact Amt ($) Yield at Market Realized G/L (BV)Coupon INTEREST 11/30/16 11/30/16 80,000 912828SX9 US TREASURY NOTES 5/31/19 450.00 1.12% 12/21/16 12/21/16 35,000 313379DD8 FEDERAL HOME LOAN BANK GLOBAL NOTES 6/21/17 175.00 1.00% 12/31/16 12/31/16 70,000 912828VK3 US TREASURY NOTES 6/30/18 481.25 1.37% 185,000 1,106.25Total INTEREST PFM Asset Management LLC 39