sSuccessor Agency to the Community Redevelopment Agency of the

City of Palmdale from the Executive Director

CITv oF PALMDALE

REPORT to the Chair and Directors of the

June 1,2016DATE:

SUBJECÏ: Successor Agency to the Community Redevelopment Agency QuarterlyReports on lnvestments.

ISSUING DEPARTMENT: Department of Administrative Services - Finance Division

SUMMARY

lssues:Acceptance of the quarterly repod on the investment balances as reported on theSuccessor Agency to the Community Redevelopment Agency of the City ofPalmdale's books as March 31, 2016.

Recommendation:Accept the quarterly report.

Fiscal lmpact:None, information only

BACKGROUND

Pursuant to Section 16 of the Successor Agency lnvestment Policy, "the City Treasurershall prepare and present a monthly report on investments to the Executive Director andthe Board of Directors of the Successor Agency to the Community RedevelopmentAgency of the C¡ty of Palmdale. The report shall detail the type of investment, name ofthe issuer, purchase date, date of maturity, amount of deposit, and rate of interest. Thisinformation shall be provided for all Successor Agency to the CommunityRedevelopment Agency of the City of Palmdale pooled investments, as well as forCertificates of Participation, Revenue Bonds, Tax Allocation Bonds, AssessmentDistricts and Community Facilities District accounis which are managed by outsideFiscal Agents."

"Each quarter a supplement to the monthly report shall be prepared which detailsinformation for all Successor Agency to the Community Redevelopment Agency of theCity of Palmdale pooled investments under the management of the Successor Agency.The quarterly report shall detail the type of investment (category), name of ihe issuer,

Report to Chair and Directors of the Successor AgencyRe: Quarterly Report on lnvestmentsJune 1, 2016Page 2

par value, book value (cosi), market value, maturity date, and the weighted averagematu rity,

ln addition, a description shall be provided for any investments or programs, includinglending programs, which are under the management of contracted parties. A quarterlyschedule shall be prepared for these accounts which details the amount of deposit,market value, and interest rate."

The interest rates presented are the most current rates available as of the date of thisrepod.

The market values presented for pooled Successor Agency investments are based onclosing prices for the related investment as of the date of this repoft. This ìnformationwas obtained from the Wall Street Journal, Bloomberg Financial Markets, CapitalMarket Finances, or other reliable source of market prices,

The Market values presented for investments managed by contracted parties are basedon amounts reported by the Fiscal Agent on the most recent bank statemeni to bemarket value as of the date of said bank statement.

Attached are summaries of the investments on the Successor Agency to the CommunityRedevelopment Agency's books as March 31, 2016.

All Agency investments are in compliance with the guidelines established for"Authorized lnvestments" as specified in the lnvestment Policy at Section 8,

It is anticipated that the Successor Agency will have sufficient moneys to meet itsexpenditure requirements for the next six months.

Submitted by:

Karen JFinance Manager

Attachments:

1, Quarterly Report on lnvestments

by:

AmbDirector of Administrative Services

P u rteeDirector

SUCCESSOR AGENCY: CITY OF PALMDALE Portfolio as of: 3/31/2016 Pricing date: 3/31/2016 SAG Account: 40708

Portfolio Characteristics

Total Par Value (000)

Total Market Value w Accrued (000)

Total Book Value (000)

Weighted Average Coupon

Weighted Average Life

Market Yield

Book Yield

Modified Duration

Effective Duration

Estimated Total Cash Flow (2-yr,Fiat Rate) Report Created: 5/17/2016

6,968,718

6,982,655

6,968,718

0.51

0.51

0.51

6,984,021

Sector Distribution

100%

Return Simulations Horizon Months

1.80

1.60

~ 1.40 -; 1.20 1: 5 1.00

& 0.80 1§ 0.60

~ 0.40

0.20

0.00 -~------------.... ~-,---.---.-----.---.---, -300 -250 -200 -150 -100 -50 0 50 100 150 200 250 300

Interest Rate Shift (bps)

- 12

- 24

Portfolio Distribution Report SUCCESSOR AGENCY: CITY OF PALMDALE

Maturity y~~ % 0.00-0.99 1.00-2.99 3.00-4.99 5.00-9.99 10.00 -19.99 20+

Sector

100.0%

Sector % Cash CD Treasury Agency Pass-Through ARM CMO ABS CMBS Corporate

Industrial Utility Finance

Municipal Provincial Sovereign Surpranational Other

100.0%

Quality Mood 's/S&P % TSY AAA AA A BBB BB B CCC cc c D NR

Coupon

100.0%

Percent % 0%-1% 1%-2% 2%-3% 3%-4% 4%-5% 5%-6% 6%-7% 7%-8% 8%-9% 9%-10% 10%+

Effective Duration

100.0%

y~~ % 0.00-0.99 1.00 -1.99 2.00-2.99 3.00-3.99 4.00-4.99 5.00-5.99 6.00-6.99 7.00-7.99 8.00+

100.0%

Portfolio as of: 3/31/2016 Pricing date: 3/31/2016

Credit Exposure

NR

100%

Effective Duration Breakdown

II 0.00 · 0.99

100%

Portfolio Review PiperJaffr Fix ed ]JZ(·ome I Str.1tegi(- An.zlyt ics

Book Value Appraisal SUCCESSOR AGENCY: CITY OF PALMDALE

Average Par (000) CUSIP Issuer S&P Mdys Cpn Maturity Life

Book Price

Market Book Price Value (000)

Portfolio as of: 3/31/2016

Market Value (000)-

Gain/ Loss (000)

Pricing date: 3/31/2016

Book Yield

FTE Market Effective Yield Duration

6,968,718 NR NR 0.51 0.00 0.00 100.00 100.00 6,968,718 6,968,718 0 0.51 0.51 0.00

6,968,718 Total Cash & Equivalents (100.0%) NR NR 0.51 0.00 0.00 100.00 100.00 6,968,718 6,968,718 0 0.51 0.51 0.00 6,968,71 8 STCALCLI1 STATE OF CALIFORNIA LOCAL AG NR NR 0.51 04/01 /2016 0.00 100.00 100.00 6,968,718 6,968,718 0 0.51 0.51 0.00

-Market Value Includes Accrual , Gain/Loss Calculation Does Not Include Accrual

Portfolio Review PiperJaffray Fixed Income I Str.?tegic An.zlyti<-·s

Portfolio Holdings Report SUCCESSOR AGENCY: CITY OF PALMDALE

Par (000) CUSIP Issuer S&P Mdys Cpn

Portfolio as of: 3/31/2016 Pricing date: 3/31/2016

Average Market Maturity Call Date Life Price

Market Value (000)

Market Modified Effective Yield Duration Duration Convexity

6,968,718 NR NR 0.51 0.0030 0.00 100.00 6,968,718 0.51 0.00 0.00 0.00

6,968,718 Total Cash & Equivalents (100.0%) NR NR 0.51 0.00 0.00 100.00 6,968,718 0.51 0.00 0.00 0.00 6,968,718 STCALCLI1 STATE OF CALIFORNIA LOCAL AG NR NR 0.51 04/01 /2016 0.00 100.00 6,968,718 0.51 0.00 0.00 0.00

PiperJaffray Fixed lnconze I Strategic Analytics

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