HomeMy WebLinkAbout2017-10-25 e-packet@2:00Wednesday, October 25, 2017
2:00 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
City Hall, City Manager's Conference Room
400 Grand Avenue, South San Francisco, CA
Budget Standing Committee of the City Council
Special Meeting Agenda
October 25, 2017Budget Standing Committee of the
City Council
Special Meeting Agenda
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of
California, the Budget Standing Committee of the City of South San Francisco will hold a Special Meeting on
Wednesday, October 25, 2017 at 2:00 p.m., at City Hall, City Manager's Conference Room, 400 Grand
Avenue, South San Francisco, California.
Call To Order.
Roll Call.
Public Comments.
MATTERS FOR CONSIDERATION
Motion to approve the Minutes from the meeting of May 25, 2017.1.
Presentation regarding investment portfolio update. (Jeff Probst and Jayson Schmitt,
Chandler Asset Management)
2.
Report regarding transmittal of the year-end financial results and recommend that the
City Council amend the Fiscal Year 2016-17 budget. (Richard Lee, Director of
Finance)
3.
Adjournment.
Page 2 City of South San Francisco Printed on 12/7/2017
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-1061 Agenda Date:10/25/2017
Version:1 Item #:1.
Motion to approve the Minutes from the meeting of May 25, 2017.
City of South San Francisco Printed on 10/19/2017Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-999 Agenda Date:10/25/2017
Version:1 Item #:2.
Presentation regarding investment portfolio update.(Jeff Probst and Jayson Schmitt,Chandler Asset
Management)
RECOMMENDATION
No formal action is required. This item is for information purposes only.
City of South San Francisco Printed on 10/19/2017Page 1 of 1
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6225 Lusk Blvd | San Diego, CA 92121 | Phone 800.317.4747 | Fax 858.546.3741 | www.chandlerasset.com
CHANDLER ASSET MANAGEMENT
Period Ending
September 30, 2017
City of South San Francisco
Investment Report
Table of Contents
SECTION 1 Investment Policy Information
SECTION 2 Economic Update
SECTION 3 Account Profile
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
SECTION 6 Appendix
1
SECTION 1
Investment Policy Information
2
Investment Policy Transition
Not Approved or Underutilized Aspects of California Code South San Francisco Investment Policy
Legal Policy Current Policy
Key Investment Policy Changes Enacted in 2015
■Increased portfolio’s overall diversification potential
■Added key new asset classes, corporate, asset backed/mortgage and negotiable CDs
■Added supranational securities, newly approved for California in 2015
■Maintained safety and liquidity throughout and after the transition
■Portfolio transitioned over a two year period, opportunistically increasing exposures
California
State Code
California
State Code
3
Progression of Diversification/Portfolio Rating
75%
25%
0%
Legacy Investment Policy 7/31/2015
18%
49%
18%
8%
5%2%0%
Portfolio in Transition 7/31/2016
20%
33%24%
7%
7%
3%1%1%4%
Fully Transitioned Portfolio 7/31/201720%
33%24%
7%
7%
3%1%1%4%
Fully Transitioned Portfolio 7/31/2017
Treasury
Agency
Corporate
Asset Backed
Supranational
Commerical Paper
Negotiable CDs
Mortgaged Backed
Money Fund
7/31/20157/31/20167/31/2017
Rating (S&P, Moody's)AA+/AaaAA+/Aa1AA+/Aa1
Portfolio Rating
4
Progression of SOSF’s Portfolio’s Yield
0.00
0.50
1.00
1.50
2.00
Yi
e
l
d
t
o
W
o
r
s
t
Progression of Portfolio Yield
BAML 1-5 Year US Treasury & Agency (GVA0)*Normalized SOSF Portfolio Yield to Worst
*Normalized yield is an attempt to isolate the effects of asset allocation. We increased or decreased the yield by the
proportion of duration deviation from the benchmark.
Source: Bloomberg
1 Month3 Month1 Year3 Year
South San Francisco Portfolio -0.23%0.37%0.53%1.48%
BAML 1-5 Year US Treasury & Agency (GVA0)-0.33%0.29%-0.03%1.20%
As of 9/30/2017
Total Return Performance
5
Dollar Value Add
3 Year Total ReturnEarnings of Assets
South San Francisco Portfolio 1.48%3,379,527.13$
BAML 1-5 Year US Treasury & Agency (GVA0)1.20%2,732,529.60$
Dollar Value of Change Over Three Years 0.28%646,997.53$
Between 12/31/2012 -
7/31/2015
Between 8/31/2015 -
9/30/2017
Normalized SOSF Portfolio Yield to Worst 0.78%1.40%
BAML 1-5 Year US Treasury & Agency (GVA0)0.72%1.17%
Strategy Difference 0.06%0.23%
Approximate Yield Difference due to Strategy Change 0.17%
Dollar Value of Change Over Three Years 377,074.43$
*Assuming $75 Million Portfolio
Dollar Value of Investment Program Changes
Using Total Return
Using Normalized Yields
Average Yield
6
SECTION 2
Economic Update
7
GDPgrew by 3.1%in thesecondquarter,followinggrowth of 1.2%in thefirstquarter.Theconsensusforecast
currentlycallsforGDPgrowth ofabout 2.6%in thethirdquarter and 2.4%in thecurrentquarter.We believe
economistsmaytrimtheirestimatesforthirdquarterGDPgrowth,to reflectdisruptionscaused by HurricanesHarvey
and Irma.Taxreform or fiscalstimulusmayultimatelyhelpfuelstrongereconomicgrowth,but thetiming and
magnitude of such programs remains uncertain.
Economic Update
TheFederalOpenMarketCommittee(FOMC)leftthefedfundstargetrateunchanged at arange of 1.00%-1.25%at
theSeptember19-20meeting.As expected,theCommitteeannouncedplans to initiatethebalancesheet
normalizationprogram in October.Theprocess of unwindingthe Fed’s $4.5trillionbalancesheetwillbegingradually
by allowing $6 billion per month in Treasurysecurities and$4 billion per month in mortgage-backed and agency
securities to rolloffthebalancesheet.Overtime,theamountswillslowlyincrease to $30 billion per month in Treasury
securities and$20 billion per month in mortgage-backed and agencysecurities.The Fed’s plans to unwindthe
balancesheetwaswidelytelegraphed and thepolicystatementwasgenerally in linewithexpectations.Therewere no
dissentingvotesamongFOMCmembers in September.The Fed’s updatedeconomicprojectionsstillindicate one
moreratehikebeforeyear-end is expected.However,theFedlowereditsmedianlonger-runfedfundsrateprojection
to 2.8%from3.0%.The Fed’s othereconomicprojectionswerelittlechanged,althoughthemedian 2018 inflation
forecastwasloweredslightly,suggestingthattheCommittee now thinksinflationmayremainbelowthe Fed’s 2.0%
target until 2019.
TheTreasuryyieldcurvesteepened in September,partiallyreversingsome of thecurveflatteningthat hashappened
year-to-date.The2-yearTreasuryyieldincreased 16 basispoints in September to 1.48%and the10-yearTreasury
yieldincreased about22 basispoints to 2.33%.On ayear-to-datebasis,the2-yearTreasuryyieldincreased 29 basis
points and the10-yearTreasuryyielddeclined 11 basispoints.Sincethebeginning of thisyear,we believemarket
participantshavegrownskepticalthattheTrumpadministrationwilldeliver on many of theirlegislativeobjectives.
However,theadministrationrecentlyoutlinedageneralframeworkfortaxreform,sparkingsomerenewedoptimism
that changes to the tax code may help boost economic growth.
8
U.S.payrollsdeclined33,000 in September,wellbelowthe+80,000consensusestimate.However,Septemberpayrollswerelikely
significantlydistorted by thehurricanes.Theunemploymentratedecreased to 4.2%in Septemberfrom4.4%in August,and thelabor
participationrateincreased to 63.1%from62.9%.Abroadermeasure of unemploymentcalledtheU-6,whichincludesthosewhoare
marginallyattached to thelaborforce and employedparttimeforeconomicreasons,declined to 8.3%from8.6%.Wagesjumped0.5%
in September. On a year-over-year basis wages were up 2.9% in September, versus up 2.7% year-over-year in August.
Employment
Source: US Department of Labor Source: US Department of Labor
-100
-50
0
50
100
150
200
250
300
350
M
O
M
C
h
a
n
g
e
I
n
(
0
0
0
'
s
)
Nonfarm Payroll (000's)
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Ra
t
e
(
%
)
9
TheConsumerPriceIndex(CPI)was up 1.9%year-over-year in August,versus up 1.7%year-over-year in July.CoreCPI(CPIless
food and energy)was up just1.7%year-over-year in August,unchangedfromthepriormonth.ThePersonalConsumption
Expenditures(PCE)indexwas up 1.4%year-over-year in August,unchangedfromJune or July.CorePCE(excludingfood and energy)
was up just 1.3% year-over-year in August, versus up 1.4% year-over-year in July. Inflation remains below the Fed's 2.0% target.
Inflation
Source: US Department of Labor Source: US Department of Labor
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Personal Consumption Expenditures
(PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
10
Source: Bloomberg
The yield curve has flattened meaningfully this year. The spread between 2-year and 10-year Treasury yields was just 85 basis points at
the endof September,compared to 126at the endof2016.In thethreemonthsending in September,the2-yearTreasuryyield
increased about tenbasispointswhilethe10-yearTreasuryyieldincreasedjustthreebasispoints.Immediatelyfollowingthe US
Presidentialelectionlastfall,theTreasuryyieldcurvesteepenedmeaningfully,driven by heightenedexpectationsfortaxreform,fiscal
stimulus,and above-trendeconomicgrowth under theTrumpadministration.However,marketparticipantsareskepticaltheTrump
administration will deliver on their legislative agenda.
Bond Yields
Source: Bloomberg
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yi
e
l
d
(
%
)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
US Treasury Yield Curve
Sep-17
Jun-17
Sep-16
Yi
e
l
d
(
%
)
11
SECTION 3
Account Profile
12
Objectives
Chandler Asset Management Performance Objective
The performance objective for the City of South San Francisco is to achieve an annual total return on its
portfolio that exceeds the return on a market index of one-to-five year government securities.
Investment Objectives
The investment objectives of the City of South San Francisco are first, to preserve principal in the overall
portfolio; second, to provide liquidity; and third, to earn a market rate of return.
Strategy
In order to achieve its objective, we invest in U.S. Treasury and government agency securities on behalf of
the City.
13
Compliance
Category Standard Comment
Treasury Issues No Limitation Complies
Agency Issues 25% maximum per issuer Complies
Supranationals "AA" rated or higher by a NRSRO; 30% maximum; 10% max per issuer; IBRD,
IFC and IADB only
Complies
Commercial Paper A-1 and P-1 by S&P and Moody's; A-rated issuer; 25% maximum; 5% max per
issuer; 270 days maximum maturity
Complies
Negotiable Certificates of Deposit
(NCDs)
No rating required if amount of the NCD is covered by FDIC insured limit; If
above FDIC insured limit, requires "A-1" short-term rated or better by a NRSRO
or "A" long-term rated issuer or better by a NRSRO; 30% maximum; 5% max
per issuer; Issued by nationally or state-chartered bank, a savings assoc. or a
federal assoc., a state or federal credit union, or by a federally licensed or state-
licensed branch of a foreign bank.
Complies
Corporate Medium Term Notes "A" rated or better by a NRSRO; 30% maximum; 5% max per issuer; Issued by
corporation organized and operating within the U.S. or by depository institutions
licensed by U.S. or any state and operating within the U.S.
Complies
Asset Backed Securities, Mortgage
Pass-throughs, CMOs
"AA" rated or better by a NRSRO; "A" rated issuer's debt or higher by a
NRSRO; 20% maximum; 5% max per issuer
Complies
Repurchase Agreements "AA" rated or better by a NRSRO (S&P and Moody's); Not used by adviserComplies
Local Agency Investment Fund -
LAIF
Maximum program limitation Complies
Mutual Funds and Money Market
Mutual Funds
Highest rating or AAA rated by 2 NRSROs or SEC registered with AUM >$500
million; 10% per one Mutual Fund; 20% maximum in Mutual Funds; 10% per
Money Market Mutual Fund
Complies
Prohibited Investments Inverse floaters, range notes, mortgage derived interest-only strips, derivatives
and any security that could result in a zero interest accrual.
Complies
Maximum Per Issuer 5% maximum per issuer except US Treasuries, LAIF, US Agencies (25% per
issuer), Supranational (10% per issuer), and Money Market Mutual Fund (10%
per fund)
Complies
Maximum maturity 5 years Complies
City of South San Francisco
September 30, 2017
COMPLIANCE WITH INVESTMENT POLICY
Assets managed by Chandler Asset Management are in full compliance with State law and with the City's investment policy.
14
Portfolio Characteristics
So San Francisco Mid-Term (Chandler) Portfolio
9/30/2017 6/30/2017
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.69 2.71 2.67
Modified Duration 2.58 2.49 2.42
Average Purchase Yield n/a 1.72% 1.65%
Average Market Yield 1.61% 1.74% 1.65%
Average Quality** AAA AA/Aa1 AA+/Aa1
Contributions/Withdrawals 20,000,000
Total Market Value 98,072,085 77,757,524
*BAML 1-5 Yr US Treasury/Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
15
ABS
6.5%
Agency
26.7%
CMO
3.8%
Commercial
Paper
3.2%
Money Market
Fund FI
0.1%
Supranational
6.7%
US Corporate
27.3%
US Treasury
22.7%
Negotiable CD
3.0%
Sector Distribution
So San Francisco Mid-Term (Chandler) Portfolio
September 30, 2017 June 30, 2017
ABS
8.9%
Agency
30.8%
CMO
2.1%
Commercial
Paper
4.0%
Money Market
Fund FI
0.4%
Supranational
8.4%
US Corporate
25.3%
US Treasury
20.2%
16
Investment Performance
-0.20%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
12 months 2 years 3 years 5 years 10 years Since Inception
So San Francisco Mid-Term (Chandler) Portfolio BAML 1-5 Yr US Treasury/Agency Index
So San Francisco Mid-Term (Chandler) Portfolio
Period Ending
September 30, 2017
Total Rate of Return
Annualized Since Inception
March 31, 2009
Annualized
3 months 12 months 2 years 3 years 5 years 10 years Since
Inception
So San Francisco Mid-Term (Chandler) Portfolio 0.37% 0.53% 1.16% 1.48% 1.05% N/A 1.70%
BAML 1-5 Yr US Treasury/Agency Index 0.29% -0.03% 0.74% 1.20% 0.85% N/A 1.47%
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.
17
SECTION 4
Portfolio Holdings
18
Holdings Report
For the Month Ending 9/30/2017
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
ABS
477877AD6 John Deere Owner Trust 2014-B A3
1.070% Due 11/15/2018
89,033.96 12/09/2015
1.44%
88,700.08
89,012.56
99.96
1.41%
89,001.52
42.34
0.09%
(11.04)
Aaa / NR
AAA
1.13
0.11
89236WAC2 Toyota Auto Receivables Owner 2015-A
1.120% Due 02/15/2019
224,721.78 11/17/2015
1.32%
224,265.33
224,645.33
99.94
1.36%
224,592.45
111.86
0.23%
(52.88)
Aaa / AAA
NR
1.38
0.25
47788NAB4 John Deere Owner Trust 2016-B A2
1.090% Due 02/15/2019
369,519.08 07/19/2016
1.10%
369,496.55
369,506.96
99.94
1.40%
369,286.25
179.01
0.38%
(220.71)
Aaa / NR
AAA
1.38
0.20
43813NAC0 Honda Auto Receivables 2015-2 A3
1.040% Due 02/21/2019
289,261.06 12/08/2015
1.46%
287,622.66
288,548.47
99.89
1.45%
288,936.71
83.56
0.29%
388.24
NR / AAA
AAA
1.39
0.28
43814RAB2 Honda Auto Receivables 2016-4 A2
1.040% Due 04/18/2019
668,590.95 10/18/2016
1.05%
668,572.30
668,579.33
99.86
1.41%
667,633.51
251.09
0.68%
(945.82)
NR / AAA
AAA
1.55
0.38
65478WAB1 Nissan Auto Receivables Owner 2016-C A2A
1.070% Due 05/15/2019
271,449.04 08/02/2016
1.08%
271,438.34
271,442.77
99.91
1.37%
271,211.39
129.09
0.28%
(231.38)
Aaa / NR
AAA
1.62
0.30
89231LAB3 Toyota Auto Receivables Owner 2016-D
1.060% Due 05/15/2019
432,627.78 10/04/2016
1.07%
432,593.17
432,606.14
99.88
1.39%
432,129.31
203.82
0.44%
(476.83)
Aaa / AAA
NR
1.62
0.35
47787XAB3 John Deere Owner Trust 2017-A A2
1.500% Due 10/15/2019
345,000.00 02/22/2017
1.50%
344,998.62
344,998.93
99.96
1.56%
344,872.01
230.00
0.35%
(126.92)
Aaa / NR
AAA
2.04
0.63
654747AB0 Nissan Auto Receivables 2017-A A2A
1.470% Due 01/15/2020
330,000.00 03/21/2017
1.47%
329,998.32
329,998.63
99.97
1.52%
329,911.23
215.60
0.34%
(87.40)
Aaa / NR
AAA
2.29
0.65
47788MAC4 John Deere Owner Trust 2016-A A3
1.360% Due 04/15/2020
585,000.00 02/23/2016
1.37%
584,907.92
584,943.28
99.83
1.60%
583,990.88
353.60
0.60%
(952.40)
Aaa / NR
AAA
2.54
0.73
47788BAB0 John Deere Owner Trust 2017-B A2A
1.590% Due 04/15/2020
280,000.00 07/11/2017
1.60%
279,975.67
279,977.49
99.94
1.66%
279,840.12
197.87
0.29%
(137.37)
Aaa / NR
AAA
2.54
0.92
65478GAB6 Nissan Auto Receivables Owner 2017-B A2A
1.560% Due 05/15/2020
1,240,000.00 08/16/2017
1.57%
1,239,951.27
1,239,953.18
99.95
1.62%
1,239,347.76
859.73
1.26%
(605.42)
Aaa / NR
AAA
2.62
0.99
89237RAB4 Toyota Auto Receivable 2017-C A2A
1.580% Due 07/15/2020
1,065,000.00 07/25/2017
1.59%
1,064,989.88
1,064,990.44
99.98
1.61%
1,064,739.08
747.87
1.09%
(251.36)
Aaa / AAA
NR
2.79
1.06
47788BAD6 John Deere Owner Trust 2017-B A3
1.820% Due 10/15/2021
200,000.00 07/11/2017
1.83%
199,985.36
199,986.07
99.93
1.86%
199,868.40
161.78
0.20%
(117.67)
Aaa / NR
AAA
4.04
2.12
Total ABS 6,390,203.65 1.40%
6,387,495.47
6,389,189.58
1.54%
6,385,360.62
3,767.22
6.51%
(3,828.96)
Aaa / AAA
Aaa
2.22
0.72
Agency
880591EQ1 Tennessee Valley Authority Note
1.750% Due 10/15/2018
1,215,000.00 11/06/2015
1.38%
1,227,951.90
1,219,583.35
100.34
1.42%
1,219,076.33
9,804.38
1.25%
(507.02)
Aaa / AA+
AAA
1.04
1.02
3137EADG1 FHLMC Note
1.750% Due 05/30/2019
1,100,000.00 06/01/2015
1.37%
1,116,203.00
1,106,734.58
100.43
1.48%
1,104,779.50
6,470.14
1.13%
(1,955.08)
Aaa / AA+
AAA
1.66
1.63
3135G0ZE6 FNMA Note
1.750% Due 06/20/2019
1,650,000.00 06/20/2014
1.82%
1,644,291.00
1,648,036.45
100.44
1.49%
1,657,326.00
8,101.04
1.70%
9,289.55
Aaa / AA+
AAA
1.72
1.68
3137EADK2 FHLMC Note
1.250% Due 08/01/2019
1,600,000.00 09/12/2014
1.89%
1,552,384.00
1,582,113.92
99.53
1.51%
1,592,400.00
3,333.33
1.63%
10,286.08
Aaa / AA+
AAA
1.84
1.80
So San Francisco Mid-Term (Chandler) Portfolio - Account #10059
19
Holdings Report
For the Month Ending 9/30/2017
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
3135G0ZG1 FNMA Note
1.750% Due 09/12/2019
1,600,000.00 09/12/2014
1.94%
1,585,888.00
1,594,496.09
100.42
1.53%
1,606,784.00
1,477.78
1.64%
12,287.91
Aaa / AA+
AAA
1.95
1.91
313383VN8 FHLB Note
2.000% Due 09/13/2019
1,850,000.00 02/23/2015
1.62%
1,880,414.00
1,863,029.34
100.90
1.53%
1,866,720.30
1,850.00
1.91%
3,690.96
Aaa / AA+
AAA
1.95
1.91
3137EADM8 FHLMC Note
1.250% Due 10/02/2019
1,850,000.00 02/23/2015
1.63%
1,819,012.50
1,836,524.77
99.43
1.54%
1,839,403.20
11,498.26
1.89%
2,878.43
Aaa / AA+
AAA
2.01
1.96
3135G0ZY2 FNMA Note
1.750% Due 11/26/2019
1,650,000.00 12/11/2014
1.76%
1,649,356.50
1,649,720.56
100.38
1.57%
1,656,270.00
10,026.04
1.70%
6,549.44
Aaa / AA+
AAA
2.16
2.10
313383HU8 FHLB Note
1.750% Due 06/12/2020
1,750,000.00 09/17/2015
1.73%
1,751,242.50
1,750,707.84
100.17
1.69%
1,752,901.50
9,272.57
1.80%
2,193.66
Aaa / AA+
NR
2.70
2.61
3135G0F73 FNMA Note
1.500% Due 11/30/2020
1,750,000.00 12/03/2015
1.89%
1,717,345.00
1,729,292.83
99.33
1.72%
1,738,269.75
8,822.92
1.78%
8,976.92
Aaa / AA+
AAA
3.17
3.06
3130A7CV5 FHLB Note
1.375% Due 02/18/2021
1,295,000.00 02/17/2016
1.46%
1,289,768.20
1,291,460.59
98.97
1.69%
1,281,616.18
2,126.86
1.31%
(9,844.41)
Aaa / AA+
AAA
3.39
3.28
3135G0K69 FNMA Note
1.250% Due 05/06/2021
1,700,000.00 07/22/2016
1.27%
1,698,759.00
1,699,066.23
98.22
1.76%
1,669,797.80
8,559.03
1.71%
(29,268.43)
Aaa / AA+
AAA
3.60
3.48
313379RB7 FHLB Note
1.875% Due 06/11/2021
2,200,000.00 08/30/2017
1.67%
2,216,588.00
2,216,215.37
100.30
1.79%
2,206,628.60
12,604.17
2.26%
(9,586.77)
Aaa / AA+
AAA
3.70
3.54
3130A8QS5 FHLB Note
1.125% Due 07/14/2021
1,750,000.00 07/15/2016
1.30%
1,735,072.50
1,738,677.38
97.69
1.76%
1,709,519.00
4,210.94
1.75%
(29,158.38)
Aaa / AA+
AAA
3.79
3.68
3135G0S38 FNMA Note
2.000% Due 01/05/2022
1,550,000.00 04/25/2017
1.92%
1,555,657.50
1,555,139.28
100.25
1.94%
1,553,938.55
7,405.56
1.59%
(1,200.73)
Aaa / AA+
AAA
4.27
4.05
3135G0T45 FNMA Note
1.875% Due 04/05/2022
1,590,000.00 06/19/2017
1.88%
1,589,759.91
1,589,774.04
99.77
1.93%
1,586,382.75
14,160.94
1.63%
(3,391.29)
Aaa / AA+
AAA
4.52
4.27
Total Agency 26,100,000.00 1.67%
26,029,693.51
26,070,572.62
1.65%
26,041,813.46
119,723.96
26.68%
(28,759.16)
Aaa / AA+
Aaa
2.76
2.67
CMO
3137B1AZ5 FHLMC K712 A2
1.869% Due 11/25/2019
1,593,971.64 05/24/2016
1.52%
1,610,160.42
1,603,923.24
99.96
1.83%
1,593,401.00
2,482.61
1.63%
(10,522.24)
NR / AAA
NR
2.15
1.86
3137BDDC7 FHLMC K716 A2
3.130% Due 06/25/2021
550,000.00 09/12/2017
1.92%
572,558.59
572,280.69
103.45
2.07%
568,962.90
286.92
0.58%
(3,317.79)
Aaa / AA+
NR
3.74
3.34
3137BM6P6 FHLMC K721 A2
3.090% Due 08/25/2022
1,550,000.00 09/21/2017
2.22%
1,608,962.00
1,608,797.67
103.58
2.25%
1,605,468.30
3,991.25
1.64%
(3,329.37)
Aaa / NR
NR
4.90
4.34
Total CMO 3,693,971.64 1.88%
3,791,681.01
3,785,001.60
2.04%
3,767,832.20
6,760.78
3.85%
(17,169.40)
Aaa / AAA
NR
3.57
3.14
Commercial Paper
21687AY31 Rabobank Nederland NV NY Discount CP
1.200% Due 11/03/2017
1,550,000.00 03/28/2017
1.22%
1,538,736.67
1,548,295.00
99.89
1.22%
1,548,295.00
0.00
1.58%
0.00
P-1 / A-1
NR
0.09
0.09
So San Francisco Mid-Term (Chandler) Portfolio - Account #10059
20
Holdings Report
For the Month Ending 9/30/2017
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
06538BY80 Bank of Tokyo Mitsubishi NY Discount CP
1.330% Due 11/08/2017
1,555,000.00 07/07/2017
1.35%
1,547,876.37
1,552,816.95
99.86
1.35%
1,552,816.95
0.00
1.58%
0.00
P-1 / A-1
NR
0.11
0.11
Total Commercial Paper 3,105,000.00 1.29%
3,086,613.04
3,101,111.95
1.29%
3,101,111.95
0.00
3.16%
0.00
P-1 / A-1
NR
0.10
0.10
Money Market Fund FI
60934N807 Federated Investors Govt Oblig Fund Inst.
126,286.33 Various
0.66%
126,286.33
126,286.33
1.00
0.66%
126,286.33
0.00
0.13%
0.00
Aaa / AAA
AAA
0.00
0.00
Total Money Market Fund FI 126,286.33 0.66%
126,286.33
126,286.33
0.66%
126,286.33
0.00
0.13%
0.00
Aaa / AAA
Aaa
0.00
0.00
Negotiable CD
96121T3U0 Westpac Banking Corp Yankee CD
1.510% Due 07/20/2018
1,175,000.00 07/24/2017
1.51%
1,174,997.06
1,174,997.62
100.00
1.51%
1,174,997.62
3,548.50
1.20%
0.00
P-1 / A-1+
F-1+
0.80
0.80
06417GXH6 Bank of Nova Scotia Yankee CD
1.570% Due 08/09/2018
1,715,000.00 08/08/2017
1.57%
1,715,000.00
1,715,000.00
100.00
1.57%
1,715,000.00
3,964.03
1.75%
0.00
P-1 / A-1
NR
0.86
0.85
Total Negotiable CD 2,890,000.00 1.55%
2,889,997.06
2,889,997.62
1.55%
2,889,997.62
7,512.53
2.95%
0.00
Aaa / AA+
Aaa
0.84
0.83
Supranational
459058ER0 Intl. Bank Recon & Development Note
1.000% Due 10/05/2018
1,765,000.00 09/30/2015
1.06%
1,761,999.50
1,763,987.95
99.61
1.39%
1,758,077.67
8,628.89
1.80%
(5,910.28)
Aaa / AAA
AAA
1.01
1.00
4581X0CD8 Inter-American Dev Bank Note
2.125% Due 11/09/2020
1,750,000.00 04/22/2016
1.49%
1,798,755.00
1,783,355.59
100.84
1.85%
1,764,708.75
14,668.40
1.81%
(18,646.84)
Aaa / AAA
AAA
3.11
2.97
45950KCJ7 International Finance Corp Note
1.125% Due 07/20/2021
1,500,000.00 11/09/2016
1.64%
1,464,960.00
1,471,607.99
97.06
1.93%
1,455,957.00
3,328.13
1.49%
(15,650.99)
Aaa / AAA
NR
3.81
3.69
4581X0CW6 Inter-American Dev Bank Note
2.125% Due 01/18/2022
1,540,000.00 01/10/2017
2.15%
1,538,105.80
1,538,371.36
100.49
2.01%
1,547,542.92
6,635.90
1.58%
9,171.56
Aaa / NR
AAA
4.30
4.07
Total Supranational 6,555,000.00 1.56%
6,563,820.30
6,557,322.89
1.78%
6,526,286.34
33,261.32
6.69%
(31,036.55)
Aaa / AAA
Aaa
2.98
2.86
US Corporate
89236TCA1 Toyota Motor Credit Corp Note
1.450% Due 01/12/2018
1,000,000.00 Various
1.43%
1,000,445.00
1,000,058.81
100.02
1.36%
1,000,229.00
3,181.94
1.02%
170.19
Aa3 / AA-
A
0.28
0.28
40428HPH9 HSBC USA Inc Note
1.625% Due 01/16/2018
950,000.00 08/21/2015
1.75%
947,207.00
949,658.07
100.04
1.49%
950,354.35
3,216.15
0.97%
696.28
A2 / A
AA-
0.30
0.29
674599CD5 Occidental Petroleum Callable Note Cont 1/15/18
1.500% Due 02/15/2018
985,000.00 Various
1.71%
980,554.70
984,248.84
99.91
1.81%
984,121.38
1,887.92
1.01%
(127.46)
A3 / A
A
0.38
0.29
69371RM45 Paccar Financial Corp Note
1.450% Due 03/09/2018
650,000.00 11/30/2015
1.63%
647,387.00
649,497.62
100.01
1.42%
650,094.90
575.97
0.66%
597.28
A1 / A+
NR
0.44
0.44
808513AK1 Charles Schwab Corp Callable Note Cont 2/10/2018
1.500% Due 03/10/2018
600,000.00 12/09/2015
1.52%
599,718.00
599,944.77
100.03
1.41%
600,198.60
525.00
0.61%
253.83
A2 / A
A
0.44
0.35
So San Francisco Mid-Term (Chandler) Portfolio - Account #10059
21
Holdings Report
For the Month Ending 9/30/2017
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
02665WAC5 American Honda Finance Note
2.125% Due 10/10/2018
950,000.00 08/13/2015
1.73%
961,400.00
953,710.70
100.58
1.55%
955,556.55
9,589.06
0.98%
1,845.85
A1 / A+
NR
1.03
1.00
36962G7G3 General Electric Capital Corp Note
2.300% Due 01/14/2019
950,000.00 09/10/2015
1.93%
961,305.00
954,365.94
100.90
1.59%
958,596.55
4,673.47
0.98%
4,230.61
A1 / AA-
AA-
1.29
1.26
17275RAR3 Cisco Systems Note
2.125% Due 03/01/2019
1,035,000.00 09/15/2015
1.93%
1,041,706.80
1,037,744.42
100.75
1.58%
1,042,813.22
1,832.81
1.07%
5,068.80
A1 / AA-
NR
1.42
1.39
91159HHH6 US Bancorp Callable Note Cont 3/25/2019
2.200% Due 04/25/2019
950,000.00 01/22/2016
1.92%
958,436.00
954,068.38
100.62
1.78%
955,843.45
9,056.67
0.98%
1,775.07
A1 / A+
AA
1.57
1.44
40434CAC9 HSBC USA Inc Note
2.250% Due 06/23/2019
600,000.00 07/25/2017
1.90%
603,876.00
603,513.50
100.60
1.89%
603,603.00
3,675.00
0.62%
89.50
A2 / A
AA-
1.73
1.68
084664CK5 Berkshire Hathaway Note
1.300% Due 08/15/2019
455,000.00 08/08/2016
1.33%
454,558.65
454,724.71
99.29
1.69%
451,748.57
755.81
0.46%
(2,976.14)
Aa2 / AA
A+
1.87
1.84
06406HCW7 Bank of New York Callable Note Cont 8/11/2019
2.300% Due 09/11/2019
1,300,000.00 Various
1.96%
1,313,114.50
1,308,172.94
100.78
1.87%
1,310,085.40
1,661.11
1.34%
1,912.46
A1 / A
AA-
1.95
1.82
94974BGF1 Wells Fargo Corp Note
2.150% Due 01/30/2020
1,015,000.00 08/26/2015
2.36%
1,005,936.05
1,010,217.97
100.27
2.03%
1,017,750.65
3,697.70
1.04%
7,532.68
A2 / A
AA-
2.33
2.26
747525AD5 Qualcomm Inc Note
2.250% Due 05/20/2020
465,000.00 10/19/2016
1.63%
475,057.95
472,403.02
101.06
1.84%
469,924.35
3,807.19
0.48%
(2,478.67)
A1 / A
NR
2.64
2.53
437076BQ4 Home Depot Note
1.800% Due 06/05/2020
400,000.00 05/24/2017
1.82%
399,768.00
399,792.98
100.07
1.77%
400,292.40
2,320.00
0.41%
499.42
A2 / A
A
2.68
2.59
594918BG8 Microsoft Callable Note Cont. 10/03/20
2.000% Due 11/03/2020
390,000.00 10/29/2015
2.02%
389,688.00
389,807.20
100.57
1.80%
392,227.68
3,206.67
0.40%
2,420.48
Aaa / AAA
AA+
3.10
2.89
00440EAT4 ACE INA Holdings Inc Callable Note Cont 10/3/2020
2.300% Due 11/03/2020
1,265,000.00 Various
2.10%
1,273,319.15
1,272,391.09
100.73
2.05%
1,274,268.66
11,961.28
1.31%
1,877.57
A3 / A
A
3.10
2.87
037833BS8 Apple Inc Callable Note Cont 1/23/2021
2.250% Due 02/23/2021
1,300,000.00 Various
1.98%
1,315,233.00
1,311,493.80
100.80
2.00%
1,310,459.80
3,087.50
1.34%
(1,034.00)
Aa1 / AA+
NR
3.40
3.25
30231GAV4 Exxon Mobil Corp Callable Note Cont 2/1/2021
2.222% Due 03/01/2021
1,040,000.00 Various
1.97%
1,051,832.75
1,048,446.16
100.76
1.99%
1,047,856.16
1,925.74
1.07%
(590.00)
Aaa / AA+
NR
3.42
3.27
166764BG4 Chevron Corp Callable Note Cont 4/15/2021
2.100% Due 05/16/2021
1,320,000.00 07/25/2017
2.11%
1,319,604.00
1,319,622.54
100.05
2.09%
1,320,648.12
10,395.00
1.36%
1,025.58
Aa2 / AA-
NR
3.63
3.37
22160KAJ4 Costco Wholesale Corp Note
2.150% Due 05/18/2021
1,300,000.00 08/14/2017
2.01%
1,306,721.00
1,306,500.24
100.29
2.07%
1,303,798.60
10,325.97
1.34%
(2,701.64)
A1 / A+
A+
3.63
3.45
857477AV5 State Street Bank Note
1.950% Due 05/19/2021
1,330,000.00 Various
2.03%
1,325,680.40
1,326,343.97
99.33
2.14%
1,321,078.36
9,509.50
1.36%
(5,265.61)
A1 / A
AA-
3.64
3.47
594918BP8 Microsoft Callable Note Cont 7/8/21
1.550% Due 08/08/2021
715,000.00 Various
1.57%
714,150.85
714,345.70
98.23
2.03%
702,374.53
1,631.59
0.72%
(11,971.17)
Aaa / AAA
AA+
3.86
3.71
69371RN44 Paccar Financial Corp Note
1.650% Due 08/11/2021
430,000.00 08/04/2016
1.68%
429,423.80
429,555.07
97.77
2.26%
420,397.24
985.42
0.43%
(9,157.83)
A1 / A+
NR
3.87
3.71
68389XBK0 Oracle Corp Callable Note Cont 8/01/21
1.900% Due 09/15/2021
1,050,000.00 10/05/2016
1.93%
1,048,435.50
1,048,744.05
99.27
2.09%
1,042,338.15
886.67
1.06%
(6,405.90)
A1 / AA-
A+
3.96
3.79
24422ETL3 John Deere Capital Corp Note
2.650% Due 01/06/2022
1,085,000.00 01/03/2017
2.66%
1,084,696.20
1,084,740.79
101.34
2.32%
1,099,559.62
6,788.78
1.13%
14,818.83
A2 / A
A
4.27
3.99
So San Francisco Mid-Term (Chandler) Portfolio - Account #10059
22
Holdings Report
For the Month Ending 9/30/2017
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
91159HHP8 US Bancorp Note
2.625% Due 01/24/2022
475,000.00 01/19/2017
2.66%
474,183.00
474,294.86
101.39
2.28%
481,621.03
2,320.57
0.49%
7,326.17
A1 / A+
AA
4.32
4.05
532457BQ0 Eli Lilly & Co Note
2.350% Due 05/15/2022
1,250,000.00 08/24/2017
2.15%
1,260,900.00
1,260,690.87
100.16
2.31%
1,251,995.00
11,586.81
1.29%
(8,695.87)
A2 / AA-
A
4.62
4.32
69353RFE3 PNC Bank Callable Note Cont 6/28/2022
2.450% Due 07/28/2022
1,355,000.00 07/25/2017
2.45%
1,354,878.05
1,354,882.39
100.10
2.43%
1,356,322.48
5,809.56
1.39%
1,440.09
A2 / A
A+
4.83
4.44
Total US Corporate 26,610,000.00 1.97%
26,699,216.35
26,673,981.40
1.93%
26,676,157.80
130,876.86
27.33%
2,176.40
A1 / A+
A+
2.66
2.51
US Treasury
912828B33 US Treasury Note
1.500% Due 01/31/2019
775,000.00 12/29/2015
1.40%
777,303.37
775,994.45
100.11
1.42%
775,817.63
1,958.56
0.79%
(176.82)
Aaa / AA+
AAA
1.34
1.31
912828D23 US Treasury Note
1.625% Due 04/30/2019
1,505,000.00 12/02/2014
1.46%
1,515,351.91
1,508,705.84
100.28
1.44%
1,509,232.06
10,234.41
1.55%
526.22
Aaa / AA+
AAA
1.58
1.55
912828WS5 US Treasury Note
1.625% Due 06/30/2019
1,500,000.00 04/30/2015
1.32%
1,518,696.43
1,507,824.98
100.29
1.46%
1,504,278.00
6,159.99
1.54%
(3,546.98)
Aaa / AA+
AAA
1.75
1.71
912828G95 US Treasury Note
1.625% Due 12/31/2019
1,525,000.00 06/17/2015
1.62%
1,525,005.11
1,525,002.53
100.22
1.52%
1,528,396.18
6,262.65
1.56%
3,393.65
Aaa / AA+
AAA
2.25
2.19
912828UL2 US Treasury Note
1.375% Due 01/31/2020
1,875,000.00 03/25/2015
1.34%
1,877,789.48
1,876,341.22
99.64
1.53%
1,868,188.13
4,343.58
1.91%
(8,153.09)
Aaa / AA+
AAA
2.34
2.28
912828UV0 US Treasury Note
1.125% Due 03/31/2020
1,800,000.00 06/17/2015
1.67%
1,754,865.41
1,776,451.52
98.94
1.56%
1,780,945.20
55.63
1.82%
4,493.68
Aaa / AA+
AAA
2.50
2.45
912828VF4 US Treasury Note
1.375% Due 05/31/2020
2,025,000.00 Various
1.58%
2,008,258.74
2,014,156.46
99.46
1.58%
2,014,162.20
9,357.32
2.06%
5.74
Aaa / AA+
AAA
2.67
2.60
912828T34 US Treasury Note
1.125% Due 09/30/2021
2,200,000.00 08/15/2017
1.72%
2,147,757.37
2,149,353.09
97.37
1.81%
2,142,164.20
67.99
2.18%
(7,188.89)
Aaa / AA+
AAA
4.00
3.89
912828F96 US Treasury Note
2.000% Due 10/31/2021
2,200,000.00 Various
1.96%
2,203,937.06
2,203,708.05
100.72
1.82%
2,215,813.60
18,413.05
2.28%
12,105.55
Aaa / AA+
AAA
4.09
3.88
912828G87 US Treasury Note
2.125% Due 12/31/2021
2,200,000.00 Various
1.90%
2,222,538.62
2,220,056.73
101.13
1.85%
2,224,835.80
11,814.54
2.28%
4,779.07
Aaa / AA+
AAA
4.25
4.03
912828J43 US Treasury Note
1.750% Due 02/28/2022
2,200,000.00 Various
2.05%
2,169,323.78
2,172,550.33
99.51
1.87%
2,189,171.60
3,296.96
2.24%
16,621.27
Aaa / AA+
AAA
4.42
4.22
912828XG0 US Treasury Note
2.125% Due 06/30/2022
2,050,000.00 07/31/2017
1.84%
2,077,233.43
2,076,292.78
100.96
1.91%
2,069,698.45
11,009.00
2.12%
(6,594.33)
Aaa / AA+
AAA
4.75
4.48
So San Francisco Mid-Term (Chandler) Portfolio - Account #10059
23
Holdings Report
For the Month Ending 9/30/2017
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
912828L24 US Treasury Note
1.875% Due 08/31/2022
350,000.00
09/26/2017
1.87%
350,151.56
350,151.22
99.74
1.93%
349,097.70
561.98
0.36%
(1,053.52)
Aaa / AA+
AAA
4.92
4.67
Total US Treasury 22,205,000.00 1.70%
22,148,212.27
22,156,589.20
1.68%
22,171,800.75
83,535.66
22.69%
15,211.55
Aaa / AA+
Aaa
3.25
3.12
TOTAL PORTFOLIO 97,675,461.62 1.72%
97,723,015.34
97,750,053.19 1.74%
97,686,647.07
385,438.33
100.00%
(63,406.12)
Aa1 / AA
Aaa
2.71
2.49
TOTAL MARKET VALUE PLUS ACCRUALS 98,072,085.40
So San Francisco Mid-Term (Chandler) Portfolio - Account #10059
24
Holdings Report
For the Month Ending 9/30/2017
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
LAIF
90LAIF$00 Local Agency Investment Fund State Pool
37,268,236.43 Various
1.12%
37,268,236.43
37,268,236.43
1.00
1.12%
37,268,236.43
117,717.91
89.27%
0.00
NR / NR
NR
0.00
0.00
Total LAIF 37,268,236.43 1.12%
37,268,236.43
37,268,236.43
1.12%
37,268,236.43
117,717.91
89.27%
0.00
NR / NR
NR
0.00
0.00
Money Market Fund FI
94975H254 Wells Fargo Money Market Fund #743
4,494,404.84 Various
0.56%
4,494,404.84
4,494,404.84
1.00
0.56%
4,494,404.84
0.00
10.73%
0.00
Aaa / AAA
NR
0.00
0.00
Total Money Market Fund FI 4,494,404.84 0.56%
4,494,404.84
4,494,404.84
0.56%
4,494,404.84
0.00
10.73%
0.00
Aaa / AAA
NR
0.00
0.00
TOTAL PORTFOLIO 41,762,641.27 1.06%
41,762,641.27
41,762,641.27 1.06%
41,762,641.27
117,717.91
100.00%
0.00
Aaa / AAA
NR
0.00
0.00
TOTAL MARKET VALUE PLUS ACCRUALS 41,880,359.18
So San Francisco Liquidity Portfolio - Account #10060
25
SECTION 5
Transactions
26
Transaction Ledger
So San Francisco Mid-Term (Chandler) Portfolio - Account #10059
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount
Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 07/07/2017 06538BY80 1,555,000.00 Bank of Tokyo Mitsubishi NY Discount CP
1.33% Due: 11/08/2017 99.542 1.35% 1,547,876.37 0.00 1,547,876.37 0.00
Purchase 07/18/2017 47788BAB0 280,000.00 John Deere Owner Trust 2017-B A2A
1.59% Due: 04/15/2020 99.991 1.60% 279,975.67 0.00 279,975.67 0.00
Purchase 07/18/2017 47788BAD6 200,000.00 John Deere Owner Trust 2017-B A3
1.82% Due: 10/15/2021 99.993 1.83% 199,985.36 0.00 199,985.36 0.00
Purchase 07/25/2017 96121T3U0 1,175,000.00 Westpac Banking Corp Yankee CD
1.51% Due: 07/20/2018 100.000 1.51% 1,174,997.06 197.14 1,175,194.20 0.00
Purchase 07/26/2017 313385JZ0 4,000,000.00 FHLB Discount Note
1% Due: 08/04/2017 99.975 1.01% 3,999,000.00 0.00 3,999,000.00 0.00
Purchase 07/26/2017 313385KG0 4,500,000.00 FHLB Discount Note
1.01% Due: 08/11/2017 99.955 1.02% 4,497,980.00 0.00 4,497,980.00 0.00
Purchase 07/26/2017 912828F96 400,000.00 US Treasury Note
2% Due: 10/31/2021 100.860 1.79% 403,438.84 1,891.30 405,330.14 0.00
Purchase 07/26/2017 912828J43 630,000.00 US Treasury Note
1.75% Due: 02/28/2022 99.637 1.83% 627,713.44 4,433.97 632,147.41 0.00
Purchase 07/26/2017 912828VF4 800,000.00 US Treasury Note
1.375% Due: 05/31/2020 99.618 1.51% 796,940.18 1,683.06 798,623.24 0.00
Purchase 07/28/2017 037833BS8 300,000.00 Apple Inc Callable Note Cont 1/23/2021
2.25% Due: 02/23/2021 100.841 2.00% 302,523.00 2,906.25 305,429.25 0.00
Purchase 07/28/2017 166764BG4 1,320,000.00 Chevron Corp Callable Note Cont 4/15/2021
2.1% Due: 05/16/2021 99.970 2.11% 1,319,604.00 5,544.00 1,325,148.00 0.00
Purchase 07/28/2017 40434CAC9 600,000.00 HSBC USA Inc Note
2.25% Due: 06/23/2019 100.646 1.90% 603,876.00 1,312.50 605,188.50 0.00
Purchase 07/28/2017 69353RFE3 1,355,000.00 PNC Bank Callable Note Cont 6/28/2022
2.45% Due: 07/28/2022 99.991 2.45% 1,354,878.05 0.00 1,354,878.05 0.00
Purchase 07/28/2017 857477AV5 300,000.00 State Street Bank Note
1.95% Due: 05/19/2021 99.242 2.16% 297,726.00 1,121.25 298,847.25 0.00
Purchase 07/31/2017 912828XG0 2,050,000.00 US Treasury Note
2.125% Due: 06/30/2022 101.328 1.84% 2,077,233.43 3,669.67 2,080,903.10 0.00
June 30, 2017 through September 30, 2017
27
Transaction Ledger
So San Francisco Mid-Term (Chandler) Portfolio - Account #10059
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount
Interest
Pur/Sold Total Amount Gain/Loss
Purchase 08/02/2017 89237RAB4 1,065,000.00 Toyota Auto Receivable 2017-C A2A
1.58% Due: 07/15/2020 99.999 1.59% 1,064,989.88 0.00 1,064,989.88 0.00
Purchase 08/09/2017 06417GXH6 1,715,000.00 Bank of Nova Scotia Yankee CD
1.57% Due: 08/09/2018 100.000 1.57% 1,715,000.00 0.00 1,715,000.00 0.00
Purchase 08/11/2017 313385KU9 4,500,000.00 FHLB Discount Note
1% Due: 08/23/2017 99.967 1.01% 4,498,500.00 0.00 4,498,500.00 0.00
Purchase 08/16/2017 00440EAT4 300,000.00 ACE INA Holdings Inc Callable Note Cont 10/3/2020
2.3% Due: 11/03/2020 101.258 1.88% 303,774.00 1,974.17 305,748.17 0.00
Purchase 08/16/2017 06406HCW7 350,000.00 Bank of New York Callable Note Cont 8/11/2019
2.3% Due: 09/11/2019 101.087 1.76% 353,804.50 3,465.97 357,270.47 0.00
Purchase 08/16/2017 912828G87 400,000.00 US Treasury Note
2.125% Due: 12/31/2021 101.555 1.75% 406,220.09 1,085.60 407,305.69 0.00
Purchase 08/16/2017 912828T34 2,200,000.00 US Treasury Note
1.125% Due: 09/30/2021 97.625 1.72% 2,147,757.37 9,331.97 2,157,089.34 0.00
Purchase 08/17/2017 22160KAJ4 1,300,000.00 Costco Wholesale Corp Note
2.15% Due: 05/18/2021 100.517 2.01% 1,306,721.00 6,909.86 1,313,630.86 0.00
Purchase 08/23/2017 65478GAB6 1,240,000.00 Nissan Auto Receivables Owner 2017-B A2A
1.56% Due: 05/15/2020 99.996 1.57% 1,239,951.27 0.00 1,239,951.27 0.00
Purchase 08/29/2017 532457BQ0 1,250,000.00 Eli Lilly & Co Note
2.35% Due: 05/15/2022 100.872 2.15% 1,260,900.00 8,975.69 1,269,875.69 0.00
Purchase 08/31/2017 313379RB7 2,200,000.00 FHLB Note
1.875% Due: 06/11/2021 100.754 1.67% 2,216,588.00 9,166.67 2,225,754.67 0.00
Purchase 09/14/2017 3137BDDC7 550,000.00 FHLMC K716 A2
3.13% Due: 06/25/2021 104.102 1.92% 572,558.59 621.65 573,180.24 0.00
Purchase 09/26/2017 3137BM6P6 1,550,000.00 FHLMC K721 A2
3.09% Due: 08/25/2022 103.804 2.22% 1,608,962.00 3,326.04 1,612,288.04 0.00
Purchase 09/27/2017 912828L24 350,000.00 US Treasury Note
1.875% Due: 08/31/2022 100.043 1.87% 350,151.56 489.47 350,641.03 0.00
Subtotal 38,435,000.00 38,529,625.66 68,106.23 38,597,731.89 0.00
TOTAL ACQUISITIONS 38,435,000.00 38,529,625.66 68,106.23 38,597,731.89 0.00
June 30, 2017 through September 30, 2017
28
Transaction Ledger
So San Francisco Mid-Term (Chandler) Portfolio - Account #10059
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount
Interest
Pur/Sold Total Amount Gain/Loss
DISPOSITIONS
Sale 07/17/2017 912828B33 150,000.00 US Treasury Note
1.5% Due: 01/31/2019 100.277 1.32% 150,415.51 1,037.98 151,453.49 193.00
Sale 09/13/2017 912828B33 75,000.00 US Treasury Note
1.5% Due: 01/31/2019 100.277 1.30% 75,207.76 134.51 75,342.27 107.96
Subtotal 225,000.00 225,623.27 1,172.49 226,795.76 300.96
Maturity 07/07/2017 06538BU76 1,540,000.00 Bank of Tokyo Mitsubishi NY Discount CP
1.18% Due: 07/07/2017 99.600 1,540,000.00 0.00 1,540,000.00 0.00
Maturity 08/04/2017 313385JZ0 4,000,000.00 FHLB Discount Note
1% Due: 08/04/2017 100.000 4,000,000.00 0.00 4,000,000.00 0.00
Maturity 08/11/2017 313385KG0 4,500,000.00 FHLB Discount Note
1.01% Due: 08/11/2017 100.000 4,500,000.00 0.00 4,500,000.00 0.00
Maturity 08/23/2017 313385KU9 4,500,000.00 FHLB Discount Note
1% Due: 08/23/2017 100.000 4,500,000.00 0.00 4,500,000.00 0.00
Subtotal 14,540,000.00 14,540,000.00 0.00 14,540,000.00 0.00
TOTAL DISPOSITIONS 18,077,818.85 18,078,442.12 31,355.94 18,109,798.06 300.96
June 30, 2017 through September 30, 2017
29
Transaction Ledger
So San Francisco Liquidity Portfolio - Account #10060
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price
Acq/Disp
Yield Amount
Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 07/15/2017 90LAIF$00 127,866.05 Local Agency Investment Fund State Pool 1.000 1.01% 127,866.05 0.00 127,866.05 0.00
Subtotal 127,866.05 127,866.05 0.00 127,866.05 0.00
Security
Contribution 08/31/2017 90LAIF$00 5,000,000.00 Local Agency Investment Fund State Pool 1.000 5,000,000.00 0.00 5,000,000.00 0.00
Subtotal 5,000,000.00 5,000,000.00 0.00 5,000,000.00 0.00
TOTAL ACQUISITIONS 5,127,866.05 5,127,866.05 0.00 5,127,866.05 0.00
DISPOSITIONS
Security
Withdrawal 07/31/2017 90LAIF$00 29,000,000.00 Local Agency Investment Fund State Pool 1.000 29,000,000.00 0.00 29,000,000.00 0.00
Subtotal 29,000,000.00 29,000,000.00 0.00 29,000,000.00 0.00
TOTAL DISPOSITIONS 29,000,000.00 29,000,000.00 0.00 29,000,000.00 0.00
June 30, 2017 through September 30, 2017
30
Disclosure
Information contained herein is confidential. Prices are provided by IDC, an independent
pricing source. In the event IDC does not provide a price or if the price provided is not
reflective of fair market value, Chandler will obtain pricing from an alternative approved third
party pricing source in accordance with our written valuation policy and procedures. Our
valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
31
SECTION 6
Appendix
32
TheIndex of LeadingEconomicIndicators(LEI)rose0.4%in August,followinga0.3%increase in July.Theincrease in theLEI
suggestseconomicgrowthmayimprovethroughyear-end.However,theChicagoFedNationalActivityIndex(CFNAI)decreased to -
0.04 in August on a3-monthmovingaveragebasisfromzero in July.According to theChicagoFed,theCFNAIpoints to subpar
economic growth. Overall, we believe the economy remains on a slow growth trajectory.
Economic Activity
-0.4%
-0.3%
-0.2%
-0.1%
0.0%
0.1%
0.2%
0.3%
0.4%
0.5%
0.6%
0.7%
Leading Economic Indicators (LEI)
M
O
M
(
%
)
C
h
a
n
g
e
-0.60
-0.40
-0.20
0.00
0.20
0.40
0.60
Chicago Fed National Activity Index
(CFNAI)
3
M
o
n
t
h
A
v
e
r
a
g
e
Source: The Conference Board Source: Federal Reserve Bank of Chicago
33
On ayear-over-yearbasis,totalretailsaleswere up 3.2%in Augustcomparedwitha3.5%increase in July.On amonth-over-month
basis,retailsalesdeclined0.2%in August,belowexpectationsfora0.1%increase.Excludingautos and gas,retailsalesfell0.1%in
August.Overall,Augustretailsaleswerelackluster.AlthoughAugustresultsmayhave been negativelyimpacted by HurricaneHarvey,
theretailsalesfiguresforJulywerealsoreviseddown.Meanwhile,theconsumerconfidenceindexremainedstrong in September at
119.8 versus 120.4 in August, despite weakness in the hurricane states of Texas and Florida.
Consumer
Source: US Department of Commerce Source: Federal Reserve
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Retail Sales YOY % Change
YO
Y
(
%
)
C
h
a
n
g
e
85
90
95
100
105
110
115
120
125
130
In
d
e
x
L
e
v
e
l
Consumer Confidence
34
Totalhousingstartsfellslightly in August but werestillstrongerthanexpected.Single-familystartsincreased1.6%in August,partially
offsettinga6.5%decline in multi-familystarts.Permitswerestrongerthanexpected in August,up 5.7%,driven by a19.6%surge in
multi-familypermits.Overall,theAugusthousingstartsreportwasfavorable,particularlyconsidering it includessomeeffectsfrom
HurricaneHarvey.According to theCase-Shiller20-Cityhomepriceindex,homepriceswere up 5.8%year-over-year in July,versus up
5.6% year-over-year in June.
Housing
Source: US Census Bureau Source: S&P
0
200
400
600
800
1000
1200
1400
1600
M
O
M
C
h
a
n
g
e
(
I
n
T
h
o
u
s
a
n
d
s
o
f
U
n
i
t
s
)
Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
S&P/CaseShiller 20 City Composite Home
Price Index
YO
Y
(
%
)
C
h
a
n
g
e
35
TheInstituteforSupplyManagement(ISM)manufacturingindexincreased to 60.8 in Septemberfrom58.0 in August.Areadingabove
50.0suggeststhemanufacturingsector is expanding.However,IndustrialProductionwas up just1.5%year-over-year in Augustversus
up 2.4%year-over-year in July.AlthoughtheISMManufacturingindex(which is based on asurveyfromarelativelysmallsamplesize of
roughly 300 manufacturing firms) has been quite strong, Industrial Production has recently contracted.
Manufacturing
Source: Institute for Supply Management Source: Federal Reserve
46
48
50
52
54
56
58
60
62
Institute of Supply Management Purchasing
Manager Index
Expanding
Contracting
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
Industrial Production
YO
Y
(
%
)
C
h
a
n
g
e
36
SecondquarterGDPgrew atan annualizedpace of 3.1%,followinggrowth of 1.2%in thefirstquarter.SecondquarterGDPgrowth
was revised up slightly from the second estimate of 3.0%, after being revised up from the advance estimate of 2.6%. Growth was driven
by consumerspending and businessinvestment.TheconsensusforecastcurrentlycallsforGDPgrowth ofabout 2.6%in thethird
quarter.
Gross Domestic Product (GDP)
Source: US Department of Commerce Source: US Department of Commerce
9/1612/163/176/17
1.9%2.0%1.3%2.2%
0.4%1.3%-0.2%0.6%
0.4%-1.6%0.2%0.2%
0.1%0.0%-0.2%0.1%
0.0%0.1%0.1%-0.2%
2.8%1.8%1.2%3.1%
Federal Government Expenditures
Total
Net Exports and Imports
Personal Consumption Expenditures
Gross Private Domestic Investment
State and Local (Consumption and Gross
Investment)
Components of GDP
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
37
Issuers
So San Francisco Mid-Term (Chandler) Portfolio – Account #10059 As of 9/30/2017
Issue Name Investment Type % Portfolio
Government of United States US Treasury 22.69%
Federal National Mortgage Association Agency 11.75%
Federal Home Loan Bank Agency 9.02%
Federal Home Loan Mortgage Corp Agency 4.65%
Federal Home Loan Mortgage Corp CMO 3.85%
Inter-American Dev Bank Supranational 3.40%
John Deere ABS ABS 1.90%
Nissan ABS ABS 1.88%
Intl Bank Recon and Development Supranational 1.80%
Toyota ABS ABS 1.76%
Bank of Nova Scotia Houston Negotiable CD 1.75%
HSBC USA Corp US Corporate 1.59%
Bank of Tokyo-Mit UFJ Commercial Paper 1.58%
Rabobank Nederland NV NY Commercial Paper 1.58%
International Finance Corp Supranational 1.49%
US Bancorp US Corporate 1.48%
PNC Financial Services Group US Corporate 1.39%
ChevronTexaco Corp US Corporate 1.36%
State Street Bank US Corporate 1.36%
Costco Wholesale Corporation US Corporate 1.34%
Apple Inc US Corporate 1.34%
Bank of New York US Corporate 1.34%
Chubb Corporation US Corporate 1.31%
Eli Lilly & Co US Corporate 1.29%
Tennessee Valley Authority Agency 1.25%
Westpac Banking Corp NY Negotiable CD 1.20%
Deere & Company US Corporate 1.13%
Microsoft US Corporate 1.12%
Paccar Financial US Corporate 1.09%
Exxon Mobil Corp US Corporate 1.07%
38
Issuers
So San Francisco Mid-Term (Chandler) Portfolio – Account #10059 As of 9/30/2017
Issue Name Investment Type % Portfolio
Cisco Systems US Corporate 1.07%
Oracle Corp US Corporate 1.06%
Wells Fargo Corp US Corporate 1.04%
Toyota Motor Corp US Corporate 1.02%
Occidental Petroleum Corporation US Corporate 1.01%
Honda Motor Corporation US Corporate 0.98%
General Electric Co US Corporate 0.98%
Honda ABS ABS 0.98%
Charles Schwab Corp/The US Corporate 0.61%
Qualcomm Inc US Corporate 0.48%
Berkshire Hathaway US Corporate 0.46%
Home Depot US Corporate 0.41%
Federated Govt Obligation Money Market Fund Money Market Fund FI 0.13%
Total 100.00%
39
AAA AA A <A NR
09/30/17 11.9% 64.5% 16.6% 0.0% 7.0%
06/30/17 16.1% 63.4% 15.4% 0.0% 5.1%
Source: S&P Ratings
Quality Distribution
September 30, 2017 vs. June 30, 2017
So San Francisco Mid-Term (Chandler) Portfolio
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
AAA AA A <A NR
9/30/2017 6/30/2017
40
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+
So San Francisco Mid-Term (Chandler) Portfolio BAML 1-5 Yr US Treasury/Agency Index
Duration Distribution
So San Francisco Mid-Term (Chandler) Portfolio
Portfolio Compared to the Benchmark as of September 30, 2017
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+
Portfolio 4.0% 6.0% 7.6% 24.2% 16.5% 25.1% 16.6% 0.0%
Benchmark* 0.1% 0.0% 1.7% 32.7% 28.4% 22.4% 14.8% 0.0%
*BAML 1-5 Yr US Treasury/Agency Index
41
Portfolio Characteristics
So San Francisco Liquidity Portfolio
9/30/2017 6/30/2017
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 0.40 0.00 0.00
Modified Duration 0.40 0.00 0.00
Average Purchase Yield n/a 1.06% 0.98%
Average Market Yield 1.11% 1.06% 0.98%
Average Quality** AAA AAA/Aaa AAA/Aaa
Contributions/Withdrawals -22,753,460
Total Market Value 41,880,359 64,513,815
*BAML 6-Month US Treasury Bill Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
42
LAIF
89.3%
Money Market
Fund FI
10.7%
Sector Distribution
So San Francisco Liquidity Portfolio
September 30, 2017 June 30, 2017
LAIF
95.0%
Money Market
Fund FI
5.0%
43
Portfolio Characteristics
So. San Francisco Consolidated Portfolio
9/30/2017 6/30/2017
Portfolio Portfolio
Average Maturity (yrs) 1.90 1.46
Modified Duration 1.75 1.32
Average Purchase Yield 1.52% 1.35%
Average Market Yield 1.53% 1.35%
Average Quality AA+/Aa1 AA+/Aa1
Contributions/Withdrawals
Total Market Value 139,952,445 142,271,339
44
ABS
4.6%
Agency
18.7%
CMO
2.7%
Commercial
Paper
2.2%
LAIF
26.7%
Money Market
Fund FI
3.3%
Supranational
4.7%
US Corporate
19.2%
US Treasury
15.9%
Negotiable CD
2.1%
Sector Distribution
So. San Francisco Consolidated Portfolio
September 30, 2017 June 30, 2017
ABS
4.9%
Agency
16.8%
CMO
1.1%
Commercial
Paper
2.2%
LAIF
43.1%
Money Market
Fund FI
2.5%
Supranational
4.6%
US Corporate
13.9%
US Treasury
11.0%
45
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:17-989 Agenda Date:10/25/2017
Version:1 Item #:3.
Report regarding transmittal of the year-end financial results and recommend that the City Council amend the
Fiscal Year 2016-17 budget.(Richard Lee, Director of Finance)
RECOMMENDATION
It is recommended that the Budget Standing Committee of the City Council accept the year-end financial
results and recommend that the City Council amend the Fiscal Year 2016-17 budget.
BACKGROUND/DISCUSSION
This report provides an overview of the financial condition of the City of South San Francisco for the Fiscal
Year that ended June 30, 2017.
Overall,in FY 2016-17,General Fund Revenues,excluding Measure W,came in within 0.04 percent of the
amended budget of $103.3 million.General Fund Expenditures were $95.4 million,or $9.1 million under
budget,a favorable variance of 8.7 percent,due to savings in salary and supplies across the majority of the
departments.After accounting for $3.8 million in funds committed for outstanding obligations attributed to
purchase orders and capital improvement projects,the net operating surplus is $4.2 million.An additional $1.9
million is required to meet General Fund Reserve requirements,including reserves for economic contingencies,
potential catastrophes,and budget contingencies.This leaves a remaining operating surplus of $2.2 million
which staff recommends Council commit to the Infrastructure Reserve Fund as discussed later in the report.
(See Attachment 1 - General Fund Summary)
Below is an overview of major changes to General Fund revenues at year-end compared to final amended
budget.
Revenues
1.Secured/Unsecured Property Tax +$186,000
Current year secured and unsecured property tax revenues,one of the City’s primary recurring General
Fund revenue sources,totaled $23.9 million in FY 2016-17.Revenues came in 0.8 percent,or $186,000
higher than budget,primarily due to supplemental secured property taxes,which reflect new properties that
were assessed after the close of the property tax roll on a county-wide basis,and cannot be relied upon for
an ongoing revenue stream.In addition,the former RDA property tax allocation was $600,000 over
expected budget.The FY 2016-17 property tax numbers also reflect the property tax received in-lieu of the
Motor Vehicle License Fee (VLF).These funds are property tax dollars which were provided to cities in-
lieu of the motor vehicle license fees which were taken away by the state back in FY 2004-05.In previous
years,these funds were accounted for in a different revenue category,but as they are truly a share of
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years,these funds were accounted for in a different revenue category,but as they are truly a share of
property tax, they will be included within this revenue category going forward.
2. Sales & Use Tax -$512,000
Sales and Use Tax totaled $15.6 million in FY 2016-17,which was $512,000 short of the amended budget.
This number reflects a downtrend over prior year in excess of expectations and the end of the Triple Flip.
The budget projections are based on information received from the City’s Sales &Use Tax consultant who
analyzes trends and makes projections for the coming year.It had been anticipated that gas prices would
have rebounded in FY 2016-17 which would have brought the City’s sales tax revenue up,however that did
not occur.The lack of increase in gas prices affects both the City’s gas tax revenue as well as our sales tax
revenue.It is anticipated that at some point gas prices will recover at which point,sales tax revenue would
increase.
3.Measure W +$1,900,000
Measure W brought in $8.9 million,$1.9 million over budget expectations.The adopted budget of $7.0
million reflected preliminary estimates from the City’s sales tax advisors prior to passage and
implementation of Measure W,and was one half of the projected revenue from the City’s allocation
pursuant to the Bradley Burns Act,or one percent.These funds are general use monies that Council has
earmarked to fund the Community Civic Campus project and for City street improvements.
4.Transient Occupancy Tax +$131,000
Transient Occupancy Tax (TOT)revenues reached $13.6 million in FY 2016-17.This is a slight increase
over last year and surpassed the Amended Budget by $131,000.Commercial Parking Tax revenues,which
move in parallel trends with TOT revenues,were down slightly,finishing the year $1,000 below projections
with a total of $3.58 million received.TOT revenue is projected to increase as indicated in the FY 2017-18
adopted budget, accounting for the addition of new hotels in South San Francisco.
5. Building & Fire Permits -$588,000 Business License +131,000
General Fund permit revenue totaled $7.8 million,an increase of $926,000 over prior year revenues,
however short of the amended budget by $588,000.Permit revenues are somewhat unpredictable,as they
are susceptible to economic fluctuations.Revenue continued to trend upwards with a 13 percent increase
over prior year.Based on the current development climate,it is expected that permit revenues will continue
to be strong in the coming year.Business License taxes were $253,000 over budget assumptions,also
trending up slightly from prior year with a $178,000 increase in revenue.
6. Revenue from Other Agencies -$911,000
Revenue from other agencies was below the amended budget,with a total of $1.6 million received,36.4
percent below projections.This revenue is comprised of primarily grant funding or reimbursement for
services provided by the City through a combination of sources including State,Federal and other funding
entities.
A portion of the shortfall is due to how the funding for the South City Shuttle is presented.The budgeted
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A portion of the shortfall is due to how the funding for the South City Shuttle is presented.The budgeted
revenues for FY 2016-17 included the grant funding for the entire two year period,while the City only
billed and received three out of the four payments for FY 2016-17 for a total of $157,000.The remaining
$200,000 will be received in FY 2017-18.
There are a number of other factors which affect this revenue source.Some funds,while reflected in full
during this Fiscal Year,are for programs that are cyclical in nature and funding is received across multiple
Fiscal Years due to timing set by the granting agency,or are set up to provide reimbursement for expenses
rather than an initial lump sum.Still,other revenues are demand driven such as the funding received as
reimbursement for support of State and Federal Fire and Rescue Operations.Revenue from other agencies
is dependent on many external factors,making it unpredictable and somewhat volatile.In addition,some
revenues are projected and budgeted as part of the annual budget cycle,however when the grant funding is
actually received the entire budget amount is added to the amended budget,in essence doubling the budget.
The FY 2017-18 mid-year adjustment will rectify this for the current Fiscal Year and the practice will be
discontinued in future budget development cycles.
Other Funds
In addition to the Fiscal Year-end review process for the General Fund,Staff also reviews the assets,liabilities,
revenues,and expenditures of other funds which are used to account for the resources needed to provide
various services to the community.
The Sewer Enterprise Fund (see Attachment 2 -Sewer Enterprise)provides for the operation,maintenance and
improvements of the Water Quality Control Plant (WQCP)and provides funding for reinvestment in critical
sewer collection infrastructure.Revenues were $25.7 million,falling short of projections by $12.3 million.The
bulk of the shortfall,$8.3 million was due to the projected receipt of State Revolving Fund (SRF)loan
proceeds,which did not occur last year,but the City’s application is currently being considered by the state.
Service charge revenues,while slightly over the prior year,reflected a shortfall of $1.5 million from budget
expectations.This is in part due to water conservation of commercial customers as sewer charges are based on a
prior year look-back of water usage and water conservation was a high priority in prior years.Overall,the fund
remains in positive territory as expenditures fell below expectations,primarily due to unspent capital project
funding.These types of projects span multiple Fiscal Years and the funding for these expenditures will roll
forward to the current year.
The Storm Water Fund (See Attachment 3 -Storm Water)is used to account for resources needed to fund storm
drain and storm infrastructure operations,maintenance and capital replacement,and compliance with various
storm water runoff federal and state regulations.Revenues totaled $1.5 million,$600,000 below expectations.
Expenditures also fell below projections by $1.7 million,resulting from $633,000 less in operating expenses
and $1 million less in capital improvement project spending than expected.A portion of the budget to actual
discrepancy is related to the Storm Water Trash Capture Devices capital project.As also noted later in the Solid
Waste Fund,since the expenses for this effort were underspent,the revenue budgeted to be transferred into the
Storm Water Fund from the Solid Waste Fund was not actually transferred,which resulted in the revenues being
lower than projected.After the budget was set in place,the City was able to implement an alternative solution
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lower than projected.After the budget was set in place,the City was able to implement an alternative solution
that met the program requirements at a lower cost.Public Works will be moving forward to close this project
and it is anticipated that this funding will not be spent for this purpose.
The Parking District Fund (See Attachment 4 -Parking District)received $919,000 in revenue from the
collection of parking fees from City owned parking meters and parking lots.This reflected a slight increase
over prior year,however is short of budget projections.The shortfall is due to the delay in the sale of the
property located at 178-190 Airport for which the due diligence period has been extended.A portion of the sale
price, $700,000, will go to the Parking District. It is expected that this funding will be received in FY 2017-18.
The Gas Tax Fund (See Attachment 5-Gas Tax)fell short of revenue projections by $107,000,which is related
to the low gas prices noted in the sales tax discussion.In addition,spending was $1.1 million below
expectations.Expenditures for Gas Tax are directly related to Capital Improvement Projects.As these projects
span multiple Fiscal Years,unspent funding will be carried forward into the current Fiscal Year.Taking into
consideration committed reserves that will be carried over to FY 2017-18,the fund balance is negative by just
over $57,000.The FY 2018-19 business plan reduced appropriations to bring the fund back into a positive
position.
The Solid Waste Fund (See Attachment 6-Solid Waste)was on target for revenue expectations.The
expenditures fell below the amended budget with a savings of $511,000.A budget adjustment was made early
in FY 2016-17 for storm water trash capture devices,of which only a portion was spent thus far.As noted in the
Storm Water Fund discussion,Public Works implemented a lower cost alternative and does not plan to expend
these funds for this purpose.
The Common Greens Fund (See Attachment 7 -Common Greens)performed well in FY 2016-17.Revenues
exceeded expectations by $361,000 with expenditures falling below expectations by $436,000.A portion of this
is related to capital project expenditures.Capital projects are cyclical in nature,spanning multiple Fiscal Years.
The funding for these project expenses will be carried forward into the current Fiscal Year.The fund balance
overall is positive.
The City Housing Fund (See Attachment 8 -City Housing)had revenues significantly over budget
expectations.This is primarily due to $1 million in the sale of real property as a result of the sale of 380 Alta
Vista.In addition,revenue reflects $305,000 from the Brookwood Escrow account which was then off-set by
the expenditure for the escrow termination.
The Community Development Block Grant (CDBG)Fund (see Attachment 9 -Community Development Block
Grant)realized $226,000 less in revenue than originally anticipated.While expenditures remained below
budget,the overall fund is negative by $46,000.The FY 2018-19 business plan will be adjusted to bring the
fund back to a net positive position.
The Consolidated Impact Fee Funds (See Attachment 10 -Consolidated Impact Fees)are showing a net
positive balance.As impact fees are completely dependent on development,the City does not traditionally
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positive balance.As impact fees are completely dependent on development,the City does not traditionally
estimate a budget for these revenues.Overall in FY 2016-17,$992,000 was collected.Expenditures are
primarily for capital projects.The Sewer Capacity Charge Fund (See Attachment 11 -Sewer Capacity)netted
$1.6 million in revenue.Like the other impact funds,this fund is highly dependent on development and a
budget is not projected.
The Capital Improvement Fund (See Attachment 12 -CIP)shows total expenditures of $6.2 million with $5.8
million in revenue.This is a Fiscal Year shortfall of $455,000,however this is not material,as Capital
Improvement projects span multiple Fiscal Years and an annual revenue to expenditure summary is just a
snapshot in time.Overall,the fund balance is $88,000 negative,which will be addressed in the current Fiscal
Year.The Infrastructure Reserve Fund (See Attachment 13 -Infrastructure Reserve)ended the Fiscal Year with
a positive fund balance of $13.6 million.These funds are set aside for infrastructure improvements,and funds
are utilized to address the City’s infrastructure maintenance liability.
The Self Insurance Fund (See Attachment 14 -Self Insurance)accounts for general liability and excess
workers’compensation program premiums and claim activity.General liability is pooled through the
Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN).The City is self-
insured for workers’compensation up to $500,000.FY 2016-17 revenues were $6.2 million,matching
expenditures,however expenditures exceeded budget expectations by $2.6 million.The additional spending
was primarily the result of two large workers’compensation claims and adjustments to increase the City’s
workers’compensation reserves from $10.7 million to $12.1 million.This proactively sets the City’s reserves to
the required level for FY 2017-18 based on the biannual actuarial valuation.Fortunately,the City’s prepayment
of the CalPERS employer pension contribution for FY 2016-17 resulted in a near-term cost savings of $2.0
million,which served as a funding source for the cost to increase workers’compensation reserves.Staff
recommends the remaining $0.5 million in savings be committed to the City’s CalPERS Stabilization Reserve,
discussed in greater detail in the section below.
Reserves
In FY 2016-17,General Fund revenues,excluding Measure W,were $103.3 million,while total General Fund
expenditures were $95.4 million.Funds for outstanding purchase order and capital projects account for $3.8
million.As such,the General Fund generated a net surplus of $4.1 million,of which $1.9 million is required to
fund the General Fund reserves.Staff recommends that the City Council authorize transfer of the remaining
$2.2 million to the Infrastructure Reserves. The beginning and ending balances of notable reserves are below.
Description Beginning Balance Ending Balance (in millions)
General Fund Reserves $17.5 $19.7
Community Civic Campus $1.3 $4.6
Infrastructure Reserves $10.3 $4.9
Caltrain Station $5.9 $8.7
CalPERS Stabilization $4.0 $4.5
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Total $39.0 $42.4
Measure W funds are general use tax revenue,which Council has previously earmarked for street
improvements and the Community Civic Center project.The FY 2017-18 adopted budget includes
appropriations of $2.4 million to purchase the future Community Civic Campus site from the Successor
Agency.Staff projected that excess Measure W funds would be generated in FY 2016-17,which would serve as
an available resource for the budget appropriation.In total,after committing $4.7 million in funds for
outstanding capital project obligations,staff recommends that the remaining reserves of $4.6 million be
committed to the Community Civic Campus project.
Beginning last year,the Governmental Accounting Standards Board (GASB)Statement 68 changed the manner
in which state and local governments presented pension liabilities in the Comprehensive Annual Financial
Report (CAFR).The changes include requirements for addressing the causes of changes in pension costs and
liabilities.As such,it is important for Council to have an understanding of what will be presented in the FY
2016-17 CAFR.For the City of South San Francisco,the net pension liability for Safety pension plan increased
from $73.5 million on June 30,2015 to $86.7 million as of June 30,2016,a net change of $13.2 million.The
net pension liability for the Miscellaneous pension plan increased from $56.6 million on June 30,2015 to $66
million on June 30,2016,a net change of $9.5 million.This is a total of $152.7 million of outstanding liability
for the City. The bulk of the change was as a result of interest charged on the pension liability balance.
In FY 2015-16,the City Council committed $4.0 million toward a CalPERS Stabilization Reserve to address
the projected impact of CalPERS’discount rate reduction.Staff recommends that the City Council commit an
additional $0.5 million in funds to the CalPERS Stabilization Reserve,funded by the remaining near-term cost
savings that were generated by pre-paying the City’s pension contribution for FY 2015-16 as noted earlier in
the Self-Insurance Fund discussion.
CONCLUSION
Staff recommends that the Budget Standing Committee of the City Council accept the year-end financial results
and recommend amendment of the FY 2016-17 budget by the City Council at the November 8,2017 meeting.
Overall the City closed FY 2016-17 with a General Fund surplus of $4.2 million reflecting the conservative
financial stewardship of the City by Council and City Staff.
Attachments
1 - General Fund Summary
2 - 710 Sewer Enterprise Fund
3 - 740 Storm Water Fund
4 - 720 Parking District Fund
5 - 210 - Gas Tax Fund
6 - 250 Solid Waste Fund
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7 - 231-234 Common Greens Fund
8 - 241 City Housing Fund
9 - 222 Community Development Block Grant (CDBG)
10 - Consolidated Impact Fees
11 - 730 Sewer Capacity
12 - 510 CIP Fund
13 - 513 Infrastructure Reserve
14 - 782 Self-Insurance Fund
15 - Presentation - YE Report
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FY 2016-17 YEAR END
GENERAL FUND OPERATING SUMMARY
Change from 2016/17 Amended
Actual Adopted Amended Actual Favorable / %
Revenues 2015-16 2016-17 2016-17 2016-17 (Unfavorable)Change
Property Taxes 16,956,412$ 17,339,451$ 23,722,611$ 23,908,871$ 186,260$ 0.8%
Former RDA Property Tax 5,587,321 5,925,088 6,605,088 7,256,245 651,157 9.9%
ERAF Refund from County 2,233,926 2,222,250 2,222,250 2,240,713 18,463 0.8%
Sales Tax*16,217,000 16,105,336 16,105,336 15,592,823 (512,513) (3.2%)
Transient Occupancy Tax 13,442,951 13,100,000 13,500,000 13,631,507 131,507 1.0%
Business License 1,375,875 1,300,000 1,300,000 1,553,879 253,879 19.5%
Commercial Parking Tax 3,252,356 3,383,400 3,583,400 3,582,349 (1,051) (0.0%)
Franchise Fees 3,982,092 4,060,000 4,060,000 4,090,074 30,074 0.7%
Building and Fire Permits 6,896,895 8,411,713 8,411,713 7,823,402 (588,311) (7.0%)
Motor Veh. License & In-Lieu**5,770,060 5,770,060 - - -
Rev. from Other Agencies 2,063,600 1,024,896 2,504,368 1,593,507 (910,861) (36.4%)
Charges for Services 7,294,607 7,235,843 7,316,643 8,086,566 769,923 10.5%
Administrative Charges 1,365,265 1,365,265 1,365,265 1,365,265 - 0.0%
Fines 791,756 838,500 838,500 899,117 60,617 7.2%
Interest & Rent 3,080,566 3,071,500 4,771,500 4,038,951 (732,549) (15.4%)
Transfers In & Other 2,809,469 6,654,823 6,994,323 7,683,533 689,210 9.9%
Add Prior Year Committed Reserves N/A N/A 4,127,180 N/A N/A
Total Revenues 93,120,150$ 97,808,125$ 107,428,177$ 103,346,802$ 45,805$ 0.04%
*Triple Flip combined with sales tax as program is all but complete
**Property Tax in lieu of MVLF is now included with property tax
Change from 2016/17 Amended
Actual Adopted Amended Actual (Favorable) / %
Expenditures 2015-16 2016-17 2016-17 2016-17 Unfavorable Change
City Council 268,134$ 204,499$ 204,499$ 206,951$ 2,453$ 1.2%
City Clerk 646,517 647,864 703,243 606,884 (96,359) (13.7%)
City Treasurer 118,788 123,340 123,340 110,559 (12,781) (10.4%)
City Attorney 782,389 802,002 1,184,002 1,187,716 3,714 0.3%
City Manager 1,735,427 1,926,245 2,615,838 1,948,910 (666,928) (25.5%)
Finance 2,186,649 2,477,795 2,837,457 2,613,471 (223,987) (7.9%)
Non-Departmental 1,108,496 973,973 1,155,102 1,161,792 6,691 0.6%
Human Resources 1,468,781 1,458,009 1,547,359 1,571,645 24,286 1.6%
Economic & Community Dev 6,144,860 10,331,488 11,115,411 7,158,564 (3,956,847) (35.6%)
Fire 24,058,472 25,689,589 26,121,218 25,567,547 (553,671) (2.1%)
Police 25,319,520 27,104,498 27,183,958 25,802,316 (1,381,643) (5.1%)
Public Works 5,025,903 4,975,860 5,229,163 4,654,760 (574,404) (11.0%)
Library 4,681,186 5,051,647 5,372,313 5,157,356 (214,957) (4.0%)
Parks & Recreation 13,234,028 14,553,266 15,361,256 14,897,149 (464,107) (3.0%)
Transfers Out 2,108,614 1,168,980 3,718,937 2,749,605 (969,333) (26.1%)
Total Expenditures 88,887,764$ 97,489,055$ 104,473,097$ 95,395,223$ (9,077,873)$ (8.7%)
Net Operating Surplus / (Deficit)4,232,385$ 319,069$ 2,955,080$ 7,951,579$ 9,123,678$
Surplus needed to commit to Purchase Orders and CIP (3,783,851)$
4,167,727$
Surplus needed to fund all General Fund reserves**(1,901,727)$
2,266,000$
Remaining surplus to transfer to Infrastructure Reserves 2,266,000$
**This includes General Fund Reserve Requirements for prepaid Expenditures, Economic Contingencies & Potential Catastrophes
ATTACHMENT 1
FY 2016-17 YEAR END
MEASURE W FUND
Change from 2016/17 Amended
Actual Adopted Amended Actual Favorable / %
Revenues 2015-16 2016-17 2016-17 2016-17 (Unfavorable)Change
Measure W 1,493,425$ 7,000,000$ 7,000,000$ 8,886,653$ 1,886,653$ 27.0%
Add Prior Year Committed Reserves N/A N/A 176,177 N/A N/A
Total Revenues 1,493,425$ 7,000,000$ 7,176,177$ 8,886,654$ 1,886,653$ 26.3%
Change from 2016/17 Amended
Actual Adopted Amended Actual (Favorable) / %
Expenditures 2015-16 2016-17 2016-17 2016-17 Unfavorable Change
Operating Expenses 211,992$ -$ 176,177$ 210$ (175,967)$ (99.9%)
CIP - 5,500,000 5,500,000 877,728 (4,622,272) (84.0%)
Total Expenditures 211,992$ 5,500,000$ 5,676,177$ 877,938$ (4,798,239)$ (87.2%)
Net Operating Surplus / (Deficit)1,281,433$ 1,500,000$ 1,500,000$ 8,008,716$ 6,684,892$
ATTACHMENT 1
CONSOLIDATED IMPACT FEE FUNDS - FUNDS 810,820,821,830,840
Revenues:
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17
%
Change
Use of Money & Property 196,597$ -$ -$ 17,609$ 17,609$ -
Other Revenues 3,415,738 - - 974,781 974,781 -
Subtotal 3,612,335 - - 992,390 992,390 -
Transfers In - - - - - -
Total Revenues 3,612,335$ -$ -$ 992,390$ 992,390$ -
Expenditures:
Supplies & Services 116,862$ 70,294$ 122,855$ 97,522$ (25,333)$ -20.6%
Capital Outlay - 95,003 118,323 90,893 (27,430) -23.2%
Debt Service 656,000 - - 23,000 23,000 -
Interdepartmental Charges 7,500 7,500 7,500 7,500 (0) 0.0%
Subtotal 780,361 172,797 248,678 218,915 (29,763) -12.0%
Transfers Out 479,789 737,220 4,012,957 289,189 (3,723,769) -92.8%
Total Expenditures 1,260,150$ 910,017$ 4,261,636$ 508,104$ (3,753,532)$ -88.1%
Surplus/(Deficit)2,352,185$ (910,017)$ (4,261,636)$ 484,285$ 4,745,921$
FY 15/16 Committed Reserves 3,405,002
FY 16/17 Committed Reserves (3,776,330)
Fund Balance 7,452,214$ 7,565,172$
ATTACHMENT 10
SEWER CAPACITY CHARGES- FUND 730
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17 % Change
Sewer Capacity Charges 1,755,486$ 200,000$ 200,000$ 1,630,615$ 1,430,615$ 715.3%
Use of Money and Property 21,567 - - 4,903 4,903 0.0%
Transfers In - 0.0%
Total Revenues 1,777,053$ 200,000$ 200,000$ 1,635,518$ 1,435,518$ 717.8%
Expenditures
Supplies & Services -$ -$ -$ 2,664$ 2,664$ 0.0%
Interdepartmental Charges 2,500 2,500 2,500 2,500 (0) 0.0%
Transfers Out - 0.0%
Total Expenditures 2,500$ 2,500$ 2,500$ 5,164$ 2,664$ 106.5%
Surplus/(Deficit)1,774,553$ 197,500$ 197,500$ 1,630,354$ 1,432,854$
FY 15/16 Committed Reserves 31,121
FY 16/17 Committed Reserves -
Fund Balance 2,307,904$ 3,969,379$
ATTACHMENT 11
CAPITAL IMPROVEMENT - FUND 510
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17
% Change
Intergovernmental/Grants $ 2,131,810 $ 4,098,180 $ 7,642,593 $ 505,664 (7,136,929)(93.4%)
Debt Proceeds - - 218,917 -(218,917)(100.0%)
Miscellaneous/Reimbursements 104,645 250,000 250,000 65,135 (184,865)(73.9%)
Transfers 6,161,203 8,904,200 24,597,480 5,224,529 (19,372,951)(78.8%)
Total Revenues $ 8,397,657 $ 13,252,380 $ 32,708,990 $ 5,795,328 $ (26,913,662)(82.3%)
Expenditures
Payroll $ 401,492 $ -$ 5,000 $ 419,835 $ 414,835 8,296.7%
Supplies & Services 8,137,242 13,252,380 33,090,750 5,830,845 (27,259,905) (82.4%)
Total Expenditures $ 8,538,734 $ 13,252,380 $ 33,095,750 $ 6,250,680 $ (26,845,070)(81.1%)
Surplus/(Deficit)(141,077)$ $ -$ (386,760) $ (455,352) $ (68,592)
Fund Balance 367,023$ (88,330)$
ATTACHMENT 12
INFRASTRUCTURE RESERVES - FUND 513
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17
% Change
Use of Money & Property $ 305,480 $-$-$16,555 16,555 0.0%
Transfers 201,996 - - 400,000 400,000 0.0%
Total Revenues $ 507,476 $-$-$ 416,555 $416,555 0.0%
Expenditures
Transfers $ 527,812 $-$ 6,090,040 $ 5,795,495 $(294,545)0.0%
Total Expenditures $ 527,812 $-$ 6,090,040 $ 5,795,495 $(294,545)(4.8%)
Surplus/(Deficit)(20,336)$ $-$ (6,090,040) $ (5,378,940) $711,100
Caltrain Station Relocation Project 5,900,000 5,900,000 7,200,000 8,700,000
Fund Balance 16,216,270$ 13,637,330$
ATTACHMENT 13
SELF INSURANCE - FUND 782
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17 % Change
Charges for Services -$ $-$-$-$-0.0%
Use of Money & Property 204,649 75,000 75,000 16,042 (58,958) (78.6%)
Other Revenues 4,693,481 4,307,743 4,307,743 5,995,975 1,688,232 39.2%
Transfers In ---273,472 273,472
Total Revenues 4,898,130$ 4,382,743$ 4,382,743$ 6,285,488$ 1,902,745$ 43.4%
Expenditures
Payroll 804,124$ 650,000$ 650,000$ 1,366,583$ 716,583$ 110.2%
Supplies & Services 3,964,279 3,030,738 3,030,738 4,914,875 1,884,137$ 62.2%
Interdepartmental Charges (20,058) ----0.0%
Total Expenditures 4,748,346$ 3,680,738$ 3,680,738$ 6,281,458$ 2,600,720$ 70.7%
Surplus/(Deficit)149,784$ 702,005$ 702,005$ 4,030$ (697,975)$
Cash Balance 12,376,456$ 12,380,486$
ATTACHMENT 14
CITY OF SOUTH SAN FRANCISCO
FY 2016-17 YEAR-END
October 25, 2017 1
ATTACHMENT 15
OVERVIEW
Resolution
General Fund Summary
General Fund Revenues
Other Funds
General Fund Reserves
2
ATTACHMENT 15
GENERAL FUND SUMMARY
Total Revenues $103.3M
Total Expenditures $95.4M
Total Surplus $7.95M
Committed to PO & CIP ($3.8M)
To fund GF Reserves ($1.9M)
Remaining Surplus $2.2M
3
ATTACHMENT 15
GENERAL FUND REVENUES
Property Tax +$186K
Sales Tax ($512)K
Measure W +$1.9M
Transient Occupancy Tax (TOT) +$131K
Building & Fire Permits ($588)K
Business License +$253K
Revenue from Other Agencies ($911)K
4
ATTACHMENT 15
OTHER FUNDS
Sewer Fund
Revenues $25.7M
Expenditures $22.7M
Parking District Fund
Revenues $919K
Expenditures $937K
Storm Water Fund
Revenues $1.5M
Expenditures $1.3M
5
ATTACHMENT 15
OTHER FUNDS (CONTINUED)
Gas Tax Fund
Revenues $1.5M
Expenditures $1.8M
Common Greens Fund
Revenues $1.7M
Expenditures $1.3M
Self Insurance Fund
Revenues $6.3M
Expenditures $6.3M 6
ATTACHMENT 15
RESERVES
7
Description Beginning Balance Ending Balance
General Fund Reserves $17.5 $19.7
Community Civic Campus $1.3 $4.6
Infrastructure Reserves $10.3 $4.9
Caltrain Station $5.9 $8.7
CalPERS Stabilization $4.0 $4.5
Total $39M $42.4M
ATTACHMENT 15
STAFF RECOMMENDATION
Accept the year end financial results and amend the budget for Fiscal Year 2016-17
Commit the excess surplus of $2.2M to the Infrastructure Fund
Commit $0.5M in savings from prepayment of CalPERS to the CalPERS Stabilization Fund
8
ATTACHMENT 15
QUESTIONS?
9
ATTACHMENT 15
SEWER ENTERPRISE -FUND 710
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17 % Change
SSF Service Charge Revenue 19,515,093$ 21,280,000$ 21,280,000$ 19,750,636$ (1,529,364)$ (7.2%)
Other Agency Share of O&M Expenses 4,443,579 5,286,759 5,286,759 4,432,994 (853,765) (16.1%)
Other Agency CIP Reimbursement 261,164 941,760 1,519,832 282,629 (1,237,204) (81.4%)
Other Agency Loan Pymt Reimb 1,048,022 1,048,022 1,048,022 1,048,022 (0) (0.0%)
Other Contributions/Reimbursements -- -44,844 44,844
Interest/Other Income 342,672 245,000 245,000 125,842 (119,158) (48.6%)
SRF Loan Proceeds for CIP (debt)8,300,000 - (8,300,000) (100.0%)
Transfers In 4,716 300,000 342,101 1,860 (340,242) (99.5%)
Total Revenues 25,615,246$ 29,101,541$ 38,021,715$ 25,686,826$ (12,334,889)$ (32.4%)
Expenditures
Operating Expenses 14,785,734$ 19,267,905$ 19,946,451$ 20,047,857$ 101,406$ 0.5%
Debt Service 1,206,947 5,705,886 5,705,886 1,085,231 (4,620,655) (81.0%)
CIP Budgeted Expenditures 2,519,693 4,320,100 19,314,566 1,559,579 (17,754,987) (91.9%)
Transfers Out 16,010 - 1,489 - (1,489) (100.0%)
Total Expenses 18,528,384$ 29,293,891$ 44,968,392$ 22,692,667$ (22,275,725)$ (49.5%)
Surplus/(Deficit)7,086,862$ (192,350)$ (6,946,677)$ 2,994,159$ 9,940,836$
Cash Balance 17,408,025$ 20,402,184$
Capital Reserves [1]3,983,000 3,983,000 3,983,000 4,028,000 45,000 1.1%
Operating Reserves [2]4,066,973 4,066,973 4,066,973 4,191,640 124,667 3.1%
The Sewer Fund consists of the Water Quality Control Plant Division, the Sewer Maintenance Division, and planned sewer
capital project expenses.
Reflects new sewer fees to be presented to the City Council.
[1]The Capital Reserve is based on the State loan requirements and is 0.5% of each loan amount from 0 to 10 years after
construction; thereafter the reserve must be maintained until the State loans are retired. After the State loans are retired,
the Capital Reserve will be based on the lesser of: 1) 10% of total principal due on debt, 2) 125% of the average annual debt
service, or 3) The maximum annual debt service.
[2]The Operating Reserve is calculated based on at least 90 days of annualized operations and maintenance costs.
ATTACHMENT 2
STORM WATER- FUND 740
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17 % Change
Administrative Fines 7,000$ 5,000$ 5,000$ 14,384$ 9,384$ 187.7%
Service Charges 405,105 405,000 405,000 404,456 (544)(0.1%)
Transfer In from Gas Taxes/Measure M 670,000 670,000 770,000 670,000 (100,000) (13.0%)
Transfer In from General Fund 260,841 450,000 450,000 275,861 (174,139) (38.7%)
Transfer in From Solid Waste 489,159 157,317 (331,842) (67.8%)
Interest and Other Income 18,800 5,000 5,000 1,363 (3,637) (72.7%)
Total Revenues 1,361,746$ 1,535,000$ 2,124,159$ 1,523,381$ (600,778)$ (28.3%)
Expenditures
Operating Expenses 1,244,641$ 1,664,682$ 1,683,145$ 1,049,406$ (633,739)$ (37.7%)
Capital Improvement Projects 54,620 200,000 1,333,487 275,709 (1,057,779) (79.3%)
Total Expenditures 1,299,261$ 1,864,682$ 3,016,632$ 1,325,115$ (1,691,517)$ (56.1%)
Surplus/(Deficit)62,485$ (329,682)$ (892,473)$ 198,267$ 1,090,740$
Cash Balance 1,044,295$ 1,242,561$
ATTACHMENT 3
PARKING DISTRICT - FUND 720
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17 % Change
Charges for Services
Parking Permit Fees 116,885$ $ 95,000 $ 95,000 $ 194,055 $ 99,055 104.3%
Parking Meter Fees 646,079 555,000 555,000 639,272 84,272 15.2%
Miller Avenue Garage 80,235 50,000 50,000 83,360 33,360 66.7%
Use of Money & Property 32,012 10,000 710,000 2,795 (707,205)(99.6%)
Total Revenues $ 875,211 $ 710,000 $ 1,410,000 $ 919,482 $ (490,518)(34.8%)
Expenditures
Payroll 268,371$ 339,876$ 339,876$ 358,258$ 18,383$ 5.4%
Supplies & Services 265,159 196,292 866,211 219,517 (646,695) (74.7%)
Capital Outlay 257,063 - - 255,015 255,015 0.0%
Interdepartmental Charges 104,682 104,986 104,986 104,986 - 0.0%
Total Expenditures 895,275$ 641,154$ 1,311,073$ 937,776$ (373,298)$ (28.5%)
Surplus/(Deficit)(20,064)$ $ 68,846 $ 98,927 $ (18,293) $ (117,220)
Cash Balance 1,912,780$ 1,894,487$
ATTACHMENT 4
GAS TAX - FUND 210
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17
%
Change
Tax Revenue -
HUTA 2103-2107 (Gas Tax)1,467,524$ 1,357,736$ 1,357,736$ 1,257,263$ (100,473) (7.4%)
Measure M 357,328 243,000 243,000 249,842 6,842 2.8%
Use of Money & Property 22,505 15,000 15,000 1,216 (13,784) (91.9%)
Total Revenues 1,847,357$ 1,615,736$ 1,615,736$ 1,508,321$ (107,415) (6.6%)
Expenditures
Transfer to General Fund 1,273,263$ 921,301$ 921,301$ 921,301$ (0) (0.0%)
Transfer to Stormwater 670,000 670,000 770,000 263,208 (506,792) (65.8%)
Transfer for CIP Projects 120,669 1,236,192 670,000 (566,192) (45.8%)
Total Expenditures 2,063,932$ 1,591,301$ 2,927,493$ 1,854,509$ (1,072,984) (160.1%)
Surplus/(Deficit)(216,575)$ 24,435$ (1,311,757)$ (346,188)$ 965,570
FY 15/16 Committed Reserves 1,372,033
FY 16/17 Committed Reserves (970,319)
Fund Balance (113,060)$ (57,534)$
ATTACHMENT 5
SOLID WASTE - FUND 250
Revenues
Actual
2015-16
Adopted
2016-17
Amended
2016-17
Actual
2016-17
Change from
Amended
2016-17
%
Change
Franchise Fees 188,649$ 180,000$ 180,000$ 190,079$ 10,079$ 5.6%
Total Revenues 188,649$ 180,000$ 180,000$ 190,079$ 10,079$ 5.6%
Expenditures
Payroll 4,742$ -$-$5,299$ 5,299$
Supplies & Services 157,041 110,150 138,097 105,624 (32,473) (23.5%)
Interdepartmental Charges 19,600 19,600 19,600 19,600 (0) (0.0%)
Transfers 189,308 200,000 766,870 282,201 (484,669) (63.2%)
Total Expenditures 370,692$ 329,750$ 924,567$ 412,725$ (511,842)$ (155.2%)
Surplus/(Deficit)(182,043)$ (149,750)$ (744,567)$ (222,646)$ 521,921$
FY 15/16 Committed Reserves 534,817
FY 16/17 Committed Reserves (353,066)
Cash Balance 230,826$ 189,931$
ATTACHMENT 6
ATTACHMENT 6
COMMON GREENS - FUNDS 231, 232, 233, 234
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17 % Change
Property Taxes West Park 3 790,798$ 683,075$ 683,075$ 824,007$ 140,933$ 20.6%
Property Taxes Stonegate Ridge 277,510 232,446 232,446 296,315 63,869 27.5%
Property Taxes Willow Gardens 88,277 47,601 47,601 99,932 52,332 109.9%
Property Taxes West Park 1 & 2 504,374 426,683 426,683 530,763 104,080 24.4%
Total Revenues 1,660,959$ 1,389,805$ 1,389,805$ 1,751,018$ 361,213$ 26.0%
Expenditures
West Park 3 730,542$ 873,700$ 873,700$ 658,756$ (214,945)$ (24.6%)
Stonegate Ridge 161,856 187,727 187,727 144,541 (43,186) (23.0%)
Willow Gardens 40,923 57,148 57,148 47,717 (9,431) (16.5%)
West Park 1 & 2 328,199 440,674 440,674 348,727 (91,947) (20.9%)
Maintenance Expenditures 1,261,520$ 1,559,250$ 1,559,250$ 1,199,741$ (359,509)$ (23.1%)
CIP Expenditures 47,904 50,000 218,521 141,990 (76,532)
Total Expenditures 1,309,425$ 1,609,250$ 1,777,771$ 1,341,730$ (436,041)$ (24.5%)
Surplus/(Deficit)351,534$ (219,445)$ (387,966)$ 409,288$ 797,254$
FY 15/16 Committed Reserves 168,521$
FY 16/17 Committed Reserves (76,532)
Fund Balance 1,911,017$ 2,412,294$
ATTACHMENT 7
CITY HOUSING FUND - FUND 241
Revenues:
Actual
2015-16
Adopted
2016-17
Amended
2016-17
Actual
2016-17
Change from
Amended
2016/17
%
Change
Housing Rental Revenue 188,363$ 130,000$ 130,000$ 108,764$ (21,236)$ (16.3%)
Investment Income and Loan Interest 76,492 37,000 37,000 115,357 78,357 211.8%
Equity Sharing - 15,000 15,000 164,018 149,018 993.5%
Sale of Real Property - -- 1,016,276 1,016,276 -
Miscellaneous 151,260 - - 274,039 274,039 -
Loan Repayments - 125,000 125,000 - (125,000) (100.0%)
Total Revenues 416,115$ 307,000$ 307,000$ 1,678,455$ 1,371,455$ 446.7%
Expenditures:
Housing Operating Expenses 95,511$ 527,800$ 527,800$ 108,101$ (419,699)$ (79.5%)
636 El Camino Retail Work 4,035 450,000 450,230 2,143 (448,087) (99.5%)
Brookwood Development 392,126 - - 371,838 371,838
Total Expenditures 491,672$ 977,800$ 978,030$ 482,083$ (495,948)$ (50.7%)
Surplus/(Deficit)(75,557) (670,800) (671,030) 1,196,372 1,867,403
FY 15/16 Committed Reserves 122,730$
FY 16/17 Committed Reserves (648)$
Fund Balance 2,251,071$ 3,569,525$
ATTACHMENT 8
COMMUNITY DEVELOPMENT BLOCK GRANT - FUND 222
Revenues
Actual
FY 2015-16
Adopted
FY 2016-17
Amended
FY 2016-17
Actual
FY 2016-17
Change from
Amended
FY 2016-17 % Change
Intergovernmental 338,412$ 647,321$ 647,321$ 377,470$ (269,851)$ (41.7%)
Loan Repayments 74,361 - - 44,349 44,349 0.0%
Other Program Revenus 9,397 11,437 11,437 10,695 (742) (6.5%)
Total Revenues 422,170$ 658,758$ 658,758$ 432,514$ (226,244)$ (34.3%)
Expenditures
Payroll 89,892$ 100,001$ 100,001$ 123,809$ 23,808$ 23.8%
Supplies & Services 439,223 593,757 733,075 727,497 (5,578) (0.8%)
Transfer Out to Capital Improvement 143 95,330 - (95,330) (100.0%)
Total Expenditures 529,258$ 693,758$ 928,406$ 851,305$ (77,100)$ (8.3%)
Surplus/(Deficit)(107,089)$ (35,000)$ (269,648)$ (418,791)$ (149,143)$
FY 15/16 Committed Reserves 435,294
FY 16/17 Committed Reserves (175,637)
Fund Balance 113,056$ (46,078)$
ATTACHMENT 9