HomeMy WebLinkAboutFinance Committee - September 15, 2022CITY OF NEWPORT BEACH
FINANCE COMMITTEE AGENDA - Final
100 Civic Center Drive - Community Room
Thursday, September 15, 2022 - 3:00 PM
Finance Committee Members:
Will O'Neill, Chair
Noah Blom, Mayor Pro Tem
Brad Avery, Council Member
William Collopy, Committee Member
John Reed, Committee Member
Nancy Scarbrough, Committee Member
Joe Stapleton, Committee Member
Staff Members:
Grace K. Leung, City Manager
Scott Catlett, Finance Director/Treasurer
Michael Gomez, Deputy Finance Director
Marlene Burns, Administrative Specialist to the Finance Director
NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT
Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the Finance
Director/Treasurer 24 hours prior to the scheduled Finance Committee meeting.
NOTICE REGARDING PUBLIC PARTICIPATION
Questions and comments may also be submitted in writing for the Finance Committee’s consideration by sending them
to Scott Catlett Finance Director/Treasurer, at scatlett@newportbeachca.gov. To give the Finance Committee adequate
time to review your questions and comments, please submit your written comments by no later than 5 p.m. the day
prior to the Finance Committee meeting. All correspondence will be made part of the record.
NOTICE TO THE PUBLIC
The Finance Committee meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that
the Finance Committee agenda be posted at least seventy two (72) hours in advance of each regular meeting and that
the public be allowed to comment on agenda items before the Committee and items not on the agenda but are within
the subject matter jurisdiction of the Finance Committee. The Chair may limit public comments to a reasonable amount
of time, generally three (3) minutes per person.
It is the intention of the City of Newport Beach to comply with the Americans with Disabilities Act (“ADA”) in all respects.
If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, the
City of Newport Beach will attempt to accommodate you in every reasonable manner. If requested, this agenda will be
made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the
Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in
implementation thereof. Please contact the City Clerk’s Office at least forty-eight (48) hours prior to the meeting to
inform us of your particular needs and to determine if accommodation is feasible at (949) 644-3127 or
scatlett@newportbeachca.gov.
1
September 15, 2022
Page 2
Finance Committee Meeting
I.CALL MEETING TO ORDER
II.ROLL CALL
III.PUBLIC COMMENTS
Public comments are invited on agenda and non-agenda items generally considered to be
within the subject matter jurisdiction of the Finance Committee. Speakers must limit comments
to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for
the record. The Finance Committee has the discretion to extend or shorten the speakers’ time
limit on agenda or non-agenda items, provided the time limit adjustment is applied equally to all
speakers. As a courtesy, please turn cell phones off or set them in the silent mode.
IV.CONSENT CALENDAR
MINUTES OF MAY 12, 2022A.
Recommended Action:
Approve and file.
DRAFT MINUTES 05122022
MINUTES OF MAY 26, 2022B.
Recommended Action:
Approve and file.
DRAFT MINUTES 05262022
V.CURRENT BUSINESS
ANNUAL REVIEW OF INVESTMENT PERFORMANCEA.
Summary:
The City's investment advisor, Chandler Asset Management, will report on the
performance of the City's investment portfolio for the fiscal year ending June 30,
2022.
Recommended Action:
Receive and file.
STAFF REPORT
2
September 15, 2022
Page 3
Finance Committee Meeting
ANNUAL REVIEW OF INVESTMENT POLICYB.
Summary:
Staff will provide a presentation regarding any changes proposed to the City's
Investment Policy by staff or the City's investment advisor prior to the Investment
Policy being approved by the City Council.
Recommended Action:
Receive and file.
STAFF REPORT
FINANCIAL STATEMENT AUDITOR’S COMMUNICATION WITH THE FINANCE
COMMITTEE ACTING AS THE CITY’S AUDIT COMMITTEE
C.
Summary:
The City's external auditors, Davis Farr LLP, will provide an overview presentation
regarding the audit process and request feedback from the Committee regarding
any information that may assist them in their audit of the City's financial statements.
Recommended Action:
Receive and file.
INTERNAL AUDIT PROGRAMD.
Summary:
Bi-monthly progress update on the internal audit program.
Recommended Action:
Receive and file.
STAFF REPORT
BUDGET AMENDMENTS FOR QUARTER ENDING JUNE 30, 2022E.
Summary:
Staff will report on the budget amendments from the prior quarter.
Recommended Action:
Receive and file.
STAFF REPORT
ATTACHMENT A
3
September 15, 2022
Page 4
Finance Committee Meeting
WORK PLAN REVIEWF.
Summary:
Staff and Finance Committee to review the proposed work plan and identify matters
that members would like placed on a future Agenda for discussion, action, or report.
Recommended Action:
Receive and file.
ATTACHMENT A
VI.ADJOURNMENT
4
Finance Committee Meeting Minutes May 12, 2022
Page 1 of 10
CITY OF NEWPORT BEACH FINANCE COMMITTEE MAY 12, 2022 MEETING MINUTES I. CALL MEETING TO ORDER The meeting was called to order at 3:00 p.m. II. ROLL CALL PRESENT: Chair Will O’Neill, Council Member Brad Avery, Committee Member
William Collopy, Committee Member John Reed, Committee Member Nancy Scarbrough and Committee Member Joe Stapleton. Mayor Pro Tem Noah Blom arrived at 3:07 p.m.
ABSENT: None
STAFF PRESENT: City Manager Grace K. Leung, Finance Director/Treasurer Scott Catlett, Deputy Finance Director Michael Gomez, Administrative Specialist to the Finance Director Marlene Burns, Accounting Manager Trevor Power, Senior Budget Analyst Amber Haston, Purchasing And Contracts
Administrator Sander Huang, Public Works Finance/Administrative Manager Theresa Schweitzer, Budget Manager Shelby Burguan, and IT
Manager Avery Maglinti
MEMBERS OF THE PUBLIC: Charles Klobe and Jim Mosher
OTHER ENTITIES: Jayson Schmitt, Chandler Asset Management
III. PUBLIC COMMENTS
None
IV. CONSENT CALENDAR MINUTES OF APRIL 14, 2022 Recommended Action: Approve and file.
MOTION: Committee Member Reed moved to approve the minutes, as presented, seconded
by Committee Member Collopy. The motion carried 6 ayes – 0 noes, (absent - Mayor Pro Tem Blom).
V. CURRENT BUSINESS A. REVIEW OF INVESTMENT PORTFOLIO STRATEGY AND BENCHMARK Summary: Staff will provide the Committee with an overview of the City's current investment strategy and
several possible alternatives to determine if a change in strategy is appropriate at this time. Recommended Action:
Provide feedback to staff regarding changing investment strategies. Finance Director/Treasurer Catlett introduced the item.
5
Finance Committee Meeting Minutes May 12, 2022
Page 2 of 10
Jayson Schmitt, Chandler Asset Management, provided a presentation of the Investment and Portfolio Strategy and Benchmark to the Finance Committee. He explained the recent increase in interest rates provides the City with an opportunity to increase future earnings by transitioning to a longer strategy, which would also result in higher market value volatility for the City’s investments. He advised the portfolio could transition over the next six months into the new strategy as investment mature.
Committee Member Collopy inquired if there was an additional High Yield Index beyond 1-5 Years. Mr. Schmitt advised there was, but it was outside of the City’s Investment Policy and the limitations of the California Government Code of a maximum maturity of 5-years. Mr. Schmitt presented a brief overview of historical yields. He believes inflation will abate in the
coming months. He presented the four key elements of Chandler Asset Management’s approach which are Portfolio Duration, Sector Allocation, Term Structure, and Security Selection, and included details for each element.
Finance Director/Treasurer Catlett requested Mr. Schmitt explain how total return is different from yield.
Mr. Schmitt explained yield on securities is the interest rate. He explained total return includes the interest and the impact of the prices of those securities at any point in time, which if held to maturity are not realized as actual gains or losses.
Committee Member Collopy inquired if the difference between yield and total return is the result
of trades or mark to market. Mr. Schmitt clarified the difference is due to mark to market.
Mr. Schmitt presented a Benchmark Study for the period ending December 31, 2021. He advised the 1-5 Year Index would place 38% of the securities in the 3-5 year range, thus
increasing the overall duration of the portfolio but also potentially increasing the opportunities there.
Finance Director/Treasurer Catlett emphasized the City holds its securities to maturity unless
there is an opportunity to trade at a net gain. He noted the numbers presented would be paper losses and gains, which over time are meaningless to the City because the City’s liquid cash
is invested in a different portfolio that is more liquid.
Committee Member Collopy inquired if the City is prohibited from trading securities prior to maturity and could be at a disadvantage if interest rates drop quickly. Mr. Schmitt clarified the
City is not prohibited from trading securities prior to maturity if it makes sense to do so and provided an example of such a trade.
Finance Director/Treasurer Catlett explained the City would only make a trade if there was a
positive gain to be had.
Committee Member Collopy inquired if Chandler Asset Management decides when it makes sense to trade a security prior to maturity. Mr. Schmitt advised they have discretion over the
portfolio but are in constant communication with Finance Director/Treasurer Catlett and his staff. Committee Member Scarborough inquired how often buying and selling occurs. Mr. Schmitt
advised that it occurs infrequently when opportunities arise. He noted it would often be triggered by new issue securities and provided an example.
Mr. Schmitt continued with the presentation and advised the volatility of fixed income returns for short-term fixed income securities and portfolios is pretty low.
6
Finance Committee Meeting Minutes May 12, 2022
Page 3 of 10
Finance Director/Treasurer Catlett advised there is also a budgetary impact to changing the strategy, which is that accounting rules require the City to book the total return paper losses on June 30 each year., The size of this accounting entry would be larger in years, such as this year, where interest rates are rising. However, he advised because interest income is such a small percentage of the General Fund Revenue it is not material.
Mr. Schmitt continued the presentation and provided a brief overview of the benchmark comparison. He advised March 2020 there was a huge increase due to the pandemic with interest rates coming down. Committee Member Collopy noted the March 2020 increase was due to the market effect of the pandemic but as stated earlier, the mark to market effect does not apply to actual interest
income because the City holds securities to maturity. Mr. Schmitt explained if comparisons were shown over a longer period, the total return starts to collapse on the average yield in the portfolio.
Committee Member Collopy requested to see the different actual yields if it is agreed to move to this proposed strategy.
Finance Director/Treasurer Catlett advised if the City was in the strategy being proposed today 10 years ago, it would have an additional $5 million of investment income on hand.
Chair O’Neill inquired if the Finance Committee would like to continue with the remainder of the presentation as provided to staff. He inquired if there was additional information the Finance
Committee would need to gather from the remainder of the report. Finance Director/Treasurer Catlett advised the remainder of the presentation was intended to be information and no
feedback or discussion of the material is necessary.
Committee Member Collopy agreed with the recommendation to move to the long-term strategy.
Committee Member Stapleton noted it is remarkable to see where fixed income is going and
believes the strategy makes sense.
Chair O’Neill opened public comments and hearing none, closed public comments.
Finance Director/Treasurer Catlett advised that hearing no objection from the Finance Committee, staff will move the City’s managed investment portfolio to Chandler’s Short-Term
Bond (1-5 year) strategy.
The item was received and filed. B. THIRD QUARTER BUDGET UPDATE Summary:
Staff will provide a presentation regarding the year-to-date and projected Fiscal Year 2021-22 budget performance. Recommended Action: Receive and file. Budget Manager Shelby Burguan presented the 2021-22 Third Quarter Financial Report. She
reported the adopted budget was $234.1 million with third quarter projections at $253.4 for a projected positive variance of $19.2 million. She advised those primary variances were due to
increased Property Tax, Sales Tax, Transient Occupancy Tax (TOT), and Property Transfer Tax. Committee Member Stapleton requested clarification of why Property Tax grew by 3.6% over
the prior year but 6.5% is being projected for next year.
7
Finance Committee Meeting Minutes May 12, 2022
Page 4 of 10
Finance Director/Treasurer Catlett advised one of the main reasons for the increase is the City did not receive the full 2% Consumer Price Index (CPI) adjustment to the Proposition 13-limited assessed value of properties for the current fiscal year and the continued strength of the current real estate market.
Committee Member Collopy inquired why the City does not accrue the Property Tax that is owed since it knows it will be received. Finance Director/Treasurer Catlett explained there is no certainty when delinquent Property Taxes will be paid but confirmed the City does receive interest and penalties on delinquent payments. Budget Manager Burguan reported staff met with the City’s Sales Tax consultant and noted
Sales Tax is now projected to be $5.1 million higher than the projected budget mainly due to auto sales, brick and mortar retail receipts, and restaurant and hotels. She noted the growth is expected to slow down and next year’s projected estimate is $46.5 million.
Budget Manager Burguan reported staff analyzed TOT Revenue to date. She advised staff is holding to the projection provided in the second quarter report of $25.6 million. She noted
projections do not account for the reopening of VEA or the reopening of the Pendry. She advised next year’s projected estimate is $27.8 million. She presented TOT Revenue between hotel only and residential TOT Revenue. She advised hotel only TOT is trailing 2019 by 8.6%, but this has much to do with the two closed properties – VEA and the Pendry. She noted by
excluding VEA and the Pendry, hotel-related TOT revenues are up 13.7% versus 2019. She advised Residential TOT is booming and is more than offsetting the lagging hotel TOT
revenues with an 86.4% growth rate in the last 3 years.
Budget Manager Burguan presented the historical General Fund Revenue trendline. She noted revenues are exceeding pre-pandemic projections for the first time in this quarter’s projection.
She presented all other General Fund revenues are projected to exceed the adopted budget by $6.4 million or 12.1%.
Budget Manager Burguan presented the projected General Fund expenditures and noted is
the revised budget is now $12 million higher than the adopted budget and explained the reasons. She advised third quarter projections are $233.3 million and noted savings are likely
to increase. She reported the current projection is to end the year with a $17.9 million surplus. She advised staff will continue to monitor inflation trends, consumer spending, and the financial
markets for signs of slowing economic growth.
Finance Director/Treasurer Catlett discussed an increase to the projected amount of the Tidelands Operating Fund subsidy from the General Fund resulting from a revised analysis of
the impact of the Capital Improvement Program on the Tidelands Operating Fund. He noted a similar adjustment has been made in the budget for the upcoming fiscal year. He reported the
Tidelands Operating Fund will need a higher than budgeted subsidy of $1.5 million as a result of this adjustment.
Finance Director/Treasurer Catlett returned to the earlier discussion of the total return on the
City’s investment portfolio and reiterated that due to Governmental Accounting Standards Board (GASB) requirements, the paper losses due to the market value of the portfolio have to be booked as though they will occur. He explained the $17.9 million projected surplus does not take into account the impact this may have. He advised that the number would fluctuate
between now and June 30 depending on the movement of the financial markets.
Committee Member Collopy advised there needs to be a way to look at the net effect and inquired how it can be displayed when analyzing the year-end surplus. Finance Director/Treasurer Catlett advised he will need to work with his staff to see if there is a way to display it as suggested that would not present problems for the presentation of the contingency
reserve in the Annual Comprehensive Financial Report.
8
Finance Committee Meeting Minutes May 12, 2022
Page 5 of 10
Committee Member Collopy recommended ignoring the $2.9 million total return-related adjustment, taking the net effect and putting it into the reserve. Finance Director/Treasurer Catlett advised he will look into the matter further. Committee Member Collopy noted the financial statements will show the loss, but the budget
should not be impacted. Chair O’Neill advised the Finance Committee will look at the timing in the future. Committee Member Scarbrough inquired if this was a typical amount. Finance Director/Treasurer Catlett advised the amount is usually much smaller and this is an outlier.
Chair O’Neill opened public comments and hearing none, closed public comments. The item was received and filed. C. FOLLOW-UP DISCUSSION OF PROPOSED FISCAL YEAR 2022-23 BUDGET Summary:
Staff will provide the Committee with a copy of the Fiscal Year 2022-23 proposed budget document. Should the Committee wish to continue April's discussion of the Fiscal Year 2022-23 budget, this is also an opportunity to do so. Recommended Action:
Receive and file.
Finance Director/Treasurer Catlett provided a brief overview of additional information for the FY 2022-23 Proposed Budget. He advised staff has revised the process for forecasting the
fund balance for the Tidelands Fund which will require an additional $1.9 million transfer to the Tideland Fund for the projected FY 2022-23 subsidy.
Finance Director/Treasurer Catlett provided a brief overview of the remaining structural
General Fund surplus, which is expected to be $7.8 million. He advised that similar to the requirements of City Council Policy F-5 the structural surplus could be utilized to address
additional City Council priorities in a manner comparable to the direction of the policy. He reported staff recommends prefunding the $5 million typical year-end CalPERS Unfunded
Accrued Liability (UAL) additional payment for FY 2021-22, allocating $1 million to establish an initial fund balance for the Recreational Facilities Finance Plan, and setting aside $1.8 million
for FY 2023-24 CIP. He noted staff recommends allocating the full $14.4 million projected FY 2021-22 year-end surplus to FY 2023-24 CIP projects and waiving the 50/50 requirement in
City Council Policy F-5 as was done last fiscal year.
Chair O’Neill indicated the City will see substantial revenue increases and this will be the first time the City is budgeting over $400 million across all funds. He inquired about the sizable
increase in residential TOT payments and inquired if that was only being seen in Newport Beach. Finance Director/Treasurer Catlett confirmed the increase does appear to be unique in
Newport Beach. Chair O’Neill noted that $6 million is the highest the City has ever received for residential TOT.
Chair O’Neill inquired about the Recycling Fee increase from $1.3 million to $2.3 million. Finance Director/Treasurer Catlett confirmed that this was due to the recent rate increase and expansion of the fee to Newport Coast.
Chair O’Neill inquired about Fines and Penalties of $3.8 million. Finance Director/Treasurer
Catlett indicated that this was primarily parking fines but includes other items. Chair O’Neill requested clarification regarding the $2.3 million for the Orange County Transportation Authority (OCTA) Bicycle Funding Program. Public Works
9
Finance Committee Meeting Minutes May 12, 2022
Page 6 of 10
Finance/Administrative Manager Theresa Schweitzer clarified it is grant funds for the Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot Project. Chair O’Neill requested clarification regarding the $7.9 million for Private Donations and Contributions. Finance Director/Treasurer Catlett clarified it is for the Junior Lifeguard Building and the Library Lecture Hall.
Committee Member Collopy inquired about the funding for the Superior Avenue Pedestrian/Bicycle Bridge. Finance Director/Treasurer Catlett clarified it is a discretionary grant that was awarded to fund part of the construction of the bridge. Mayor Pro Tem Blom noted the offer from OCTA was that the City could implement a bicycle lane or utilize it for a crossing. He noted the City chose the latter.
Committee Member Collopy inquired if the payment to Visit Newport Beach was based on last year’s actual TOT or projected TOT. Finance Director/Treasurer Catlett clarified it is based on actual TOT revenues received. He explained the growth for next year is anticipated to be in the
3% to 5% range.
City Manager Grace Leung reported the Superior Avenue Pedestrian/Bicycle Bridge and Parking Lot Project has a total cost of $12.9 million. Chair O’Neill explained when looking at the budget for the General Fund of the City, it includes
a sizable discretionary payment towards the City’s UAL. He noted the City aggressively tries to pay down its UAL. He reminded residents that the Police budget remains under 30% of the
City’s General Fund and the Fire budget remains under 25% of the General Fund even with all the UAL discretionary payments.
Committee Member Collopy inquired if the labor negotiations were recently concluded. Finance
Director/Treasurer Catlett confirmed they recently concluded and that the related fiscal impacts have been included in the proposed budget.
Chair O’Neill inquired if $18.3 million is the anticipated surplus fund balance. Finance
Director/Treasurer Catlett confirmed that is what the number represents, but that it differs from the third quarter projection because it does not take into account current year budget savings
or the latest revenue information.
Chair O’Neill inquired about the Environmental Liability Fund of $8.9 million. Finance Director/Treasurer Catlett advised that is mainly kept in reserve for the maintenance of the cap
and related facilities for the landfill at the western end of the City. Chair O’Neill requested Utilities Director Mark Vukojevic provide an update to the Finance Committee as to what the
anticipated uses are for the $8.9 million.
Committee Member Scarbrough inquired about the PEG Fees Fund. Finance Director/Treasurer Catlett explained it is a 1% surcharge of franchise fees on cable operators
and is set aside for CIP-related expenditures related to government access television and other types of programming and systems for broadcasting official City meetings.
Chair O’Neill inquired about the General Liability Reserve Fund expenditures of $6.9 million. Finance Director/Treasurer Catlett clarified that this amount includes excess insurance premium payments, settlements, and legal fees. Chair O’Neill requested staff provide additional
information on this.
Chair O’Neill agreed with using the structural surplus to prefund $5 million towards CalPERS Unfunded Accrued Liability (UAL) and allocating $1 million to establish an initial fund balance for the Recreational Facilities Finance Plan. He advised his preference would be to use the $1.8 million for FY 2023-24 CIP for the Balboa Island Drainage Project. He advised he does
10
Finance Committee Meeting Minutes May 12, 2022
Page 7 of 10
not see the need to recommend to the City Council how to spend the $14.4 million at this time and would like to wait for the final year-end surplus to be calculated. Committee Member Scarbrough advised there was at one point money in the budget for a capital improvement project at the Community Center in West Newport. She inquired if other items were removed from the budget due to the pandemic and never added back again.
Finance Director/Treasurer Catlett believes on the project may have been included in a presentation by Director of Public Works David Webb regarding projects deferred during the pandemic, but noted if so, the funding was not deleted but deferred. Committee Member Collopy noted the total UAL contribution would be $45 million inclusive of the additional $5 million. He inquired if Chair O’Neill remembered the discussion from four years
ago when the Finance Committee was looking to scrape together $31 million. Chair O’Neill noted he is unsure if the City can remain on this road over the next few years given the possibility of a recession. He noted he would be shocked if CalPERS hits its benchmark of 6.8% this year.
Finance Director/Treasurer Catlett reported the UAL would be fully funded in 2027-28 under
current assumptions with future payments of $45 million per year. Chair O’Neill advised there will be a year when a future City Council will have an additional $45 million to spend. Finance Director/Treasurer Catlett cautioned the payoff may extend to 2029/30 or beyond if the current market downturn is not reversed within the next 60 days.
Committee Member Collopy noted that during a recession the biggest impact on the City would
be Sales Tax. He inquired if the City’s Sales Tax consultants are sophisticated enough to project Sales Tax in future years. Finance Director/Treasurer Catlett explained their current
view is there are no signs of an imminent recession. He explained the City would need to look at this again throughout next fiscal year and reevaluate the projection as new information
becomes available. He noted staff will be looking at the risks of recession as part of the annual update to the long-range financial forecast. He advised a large part of the budget is
discretionary and the City can react appropriately at any time if spending reductions are required.
Mayor Pro Tem Blom opined that the increased consumer spending in the City has been more
on the luxury goods and travel side. He therefore does not see a recession as likely impacting the City to the degree it might other cities, even if TOT is decreased due to a reduction in
visitors.
Committee Member Collopy inquired if the City was current on Uptown Newport Development Fees. Finance Director/Treasurer Catlett advised he was unaware of any delinquencies. Mayor
Pro Tem Blom concurred and indicated that any prior issues had been resolved.
Committee Member Reed inquired about the Donations and Contributions on Page 21. Finance Director/Treasurer Catlett confirmed this amount was for the previously discussed capital
projects.
Chair O’Neill called for public comments. Mr. Mosher noted the agenda denotes the Finance Committee was provided with a paper copy of the budget. He advised residents may become interested in the budget book if they are
notified that it has been posted. He confirmed it is included in the agenda, but most residents will not be able to find it. He advised the paper version is full of tabs and the PDF version that
residents review at home also has electronic tabs. He was pleased to see the Chair’s recommendation restored a breakdown of employees for each department. He noted that information was not available for the City Manager Department. He noted he was pleased to see the Chair inquire about line items like a previous Chair of the Finance Committee. He
inquired about the $7.9 million for Private Donations and Contributions and noted it has not
11
Finance Committee Meeting Minutes May 12, 2022
Page 8 of 10
been a City practice to anticipate donations. He inquired if there was a change in the anticipated donations practice. Chair O’Neill closed public comments. Chair O’Neill agreed an announcement should be made on the splash page on the City’s
website regarding the availability of the budget document. He inquired if there were electronic tabs as recommended. Budget Manager Burguan advised the PDF has a clickable Table of Contents. She advised it is not visible by default. Finance Director/Treasurer Catlett suggested the Table of Contents display by default when the file opens. Committee Member Collopy advised the first time he looked through the budget he spent
several hours asking questions of the then Finance Director. He does not believe it will be worthwhile to go over that level of detail with the Finance Committee. City Manager Leung clarified that Private Donations and Contributions are listed because the
City has contracts with those entities and there is therefore some certainty as to the receipt of the funds.
Chair O’Neill advised the Finance Committee needs a consensus on a recommendation to the City Council.
Chair O’Neill expressed support for the full staff recommendation.
Committee Member Collopy expressed support for the full staff recommendation. He inquired
why it is called a structural surplus. Finance Director/Treasurer Catlett explained it is to reflect that the surplus is not the result of one-time revenues and is therefore anticipated to recur in
future fiscal years absent allocation to recurring expenditures.
Council Member Avery inquired if the $14.4 million shown for the year-end surplus is locked in. Finance Director/Treasurer Catlett explained it is staff’s current best projection and that final
year-end results will come to the Finance Committee in September, then to the City Council in October to determine the allocation of the funds. He noted that after the City Council allocates
the funds, Public Works Director David Webb would provide recommendations for using the funds as part of the fiscal year 2023-24 budget process.
Chair O’Neill noted it could be used for anything since it is General Fund and would like to see
how things look in October.
Mayor Pro Tem Blom expressed support for using the $7.8 million now.
The item was received and filed. D. INTERNAL AUDIT PROGRAM UPDATE Summary:
Bi-monthly progress update on the internal audit program Recommended Action: Receive and file.
Finance Director/Treasurer Catlett introduced the item.
Deputy Finance Director Michael Gomez provided a brief overview of the City’s Internal Audit Program. He reported Procurement Policies, Cash Handling, Information Technology, Inventory Management, and Fiscal Policies have all been reviewed. He advised Accounts Payable Disbursements, Payroll, Fixed Asset Management, and Police Property and Evidence
will be reviewed in the next fiscal year. He advised staff released a Request for Proposals
12
Finance Committee Meeting Minutes May 12, 2022
Page 9 of 10
(RFP) to complete the remaining audits. He anticipates the contracts to be awarded in June. He provided a brief overview of the implementation of the previous five audit report findings and provided a status update on each topic. He advised the staff is drafting policies for Procurement and Cash Management. He reported that 14 other fiscal policies were identified as medium to low risk. He advised the highest priority policies will be reviewed or drafted within 12 months and the remaining policies are anticipated to be addressed within 24 months.
Finance Director/Treasurer Catlett advised Moss Adams completed their policy review and identified gaps. He explained there were items identified that did not have policies in addition to revisions to existing policies. Policies ultimately requiring City Council approval will be coming forward to the Finance Committee for review prior to the Council’s review.
Deputy Finance Director Gomez advised staff is working on a schedule to complete the policies. He anticipates the Procurement and Cash Management Policies will be completed by the end of the summer with the Inventory Policy soon thereafter.
Chair O’Neill recommended staff contemplate if these will be Council Policies or Administrative Policies.
Council Member Avery inquired if staff ever conducted surprise cash audits. Finance Director/Treasurer Catlett advised this is not being conducted today but can be investigated.
Chair O’Neill called for public comments.
Mr. Mosher noted that some of the policies will become Council Policies, and some will become internal Administrative Policies. He inquired if any of the policies will remain confidential and if
they will be presented to the City Council at a public meeting.
Chair O’Neill closed public comments.
Finance Director/Treasurer Catlett deferred to the Finance Committee as to whether the Committee would wish to review proposed changes or additions to the City’s Administrative
Policies. He noted he is looking to evaluate the recommendations of the auditors to determine which policies are appropriately Council Policies versus those that are better suited to be
internal Administrative Policies reviewed and approved by staff. He advised he can bring the Administrative Policies to the Finance Committee if there is an interest in reviewing them.
The item was received and filed. E. WORK PLAN REVIEW Summary: Staff and Finance Committee to review the proposed work plan and identify matters that
members would like placed on a future Agenda for discussion, action, or report. Recommended Action:
Receive and file.
Chair O’Neill reported the Special Joint Meeting of the City Council and Finance Committee will take place on May 24, 2022. He announced the Finance Committee will meet on May 26, 2022, to discuss the Financial Statement Auditor's Communication with the Finance Committee and the Finance Committee’s recommendation to the City Council for the Fiscal
Year 2022-23 Budget.
13
Finance Committee Meeting Minutes May 12, 2022
Page 10 of 10
Committee Member Collopy suggested eliminating May 26, 2022, meeting. Chair O’Neill advised it would not be possible as something may come out of the Joint Meeting that may need to be addressed. Chair O’Neill called for public comments and hearing none, closed public comments.
The item was received and filed. VI. ADJOURNMENT The Finance Committee adjourned at 4:40 p.m. to the next regular meeting of the Finance Committee.
The agenda for the Regular Meeting was posted on May 5, 2022, at 6:33 p.m., in the binder and on the City Hall Electronic Board located in the entrance of the Council Chambers at 100 Civic Center Drive.
Attest:
___________________________________ _____________________ Will O’Neill, Chair Date
Finance Committee
14
Finance Committee Meeting Minutes May 26, 2022
Page 1 of 3
CITY OF NEWPORT BEACH FINANCE COMMITTEE MAY 26, 2022 MEETING MINUTES I. CALL MEETING TO ORDER The meeting was called to order at 3:00 p.m. II. ROLL CALL PRESENT: Chair Will O’Neill, Mayor Pro Tem Noah Blom, Committee Member William
Collopy, Committee Member John Reed, Committee Member Nancy Scarbrough and Committee Member Joe Stapleton. ABSENT: Council Member Brad Avery
STAFF PRESENT: City Manager Grace K. Leung, Finance Director/Treasurer Scott Catlett,
Deputy Finance Director Michael Gomez, Administrative Specialist to the Finance Director Marlene Burns, Accounting Manager Trevor Power, Senior Budget Analyst Amber Haston, Purchasing And Contracts Administrator Sander Huang, Public Works Finance/Administrative
Manager Theresa Schweitzer, Budget Manager Shelby Burguan and IT Manager Avery Maglinti
MEMBERS OF THE
PUBLIC: Jim Mosher
OTHER ENTITIES: None III. PUBLIC COMMENTS
None IV. CURRENT BUSINESS A. FINANCIAL STATEMENT AUDITOR'S COMMUNICATION WITH THE FINANCE COMMITTEE ACTING AS THE CITY'S AUDIT COMMITTEE Summary: The City's external auditors, Davis Farr LLP, will provide an overview presentation regarding
the audit process and request feedback from the Committee regarding any information that may assist them in their audit of the City's financial statements. Recommended Action: Receive and file.
Chair O’Neill reported the item would be continued to the next meeting.
B. COMMITTEE RECOMMENDATION TO COUNCIL FOR THE FISCAL YEAR 2022-23 BUDGET Summary: Discussion of the Study Session earlier in the week and formulation of any recommendations to be presented to the City Council at the budget public hearing in June. Recommended Action: Receive and file. Chair O’Neill thanked the Finance Committee for attending the Budget Study Session.
15
Finance Committee Meeting Minutes May 26, 2022
Page 2 of 3
Chair O’Neill opened public comments. Jim Mosher thanked City Manager Grace Leung for providing him with a copy of the Budget book for review. He expressed confusion as to why the recommended action for the item was to receive and file.
Chair O’Neill agreed the recommended action should not be receive and file and should be an affirmative motion for the recommendation to the City Council. Mr. Mosher noted he looks forward to hearing the Finance Committee’s recommendations. Chair O’Neill explained the main purpose of the Finance Committee is to make a budget
recommendation to the City Council. MOTION: Committee Member Stapleton moved to recommend the City Council approve the Fiscal Year 2022-23 Budget including the recommendation on handling the Structural
Surplus, seconded by Committee Member Collopy. The motion carried 6 ayes – 0 noes, 1 absence (Council Member Avery) C. WORK PLAN REVIEW Summary: Staff and Finance Committee to review the proposed work plan and identify matters that
members would like placed on a future Agenda for discussion, action, or report. Recommended Action:
Receive and file.
Chair O’Neill explained the City Council will decide at a future meeting on the composition of the Finance Committee. He encouraged any committee member who would like to stay on to
reach out to their City Council designee. He reported the Finance Committee will be in recess through June and will start back in September. He advised the annual review of Investment
Performance and Investment Policy, an overview of Police Department Budget Presentation, recommended changes to Purchasing Policies, the Internal Audit Program update, and Budget
amendments for the quarter ending June 30, 2022, will be on the agenda for September. He advised the Year-End Budget results will be presented in October and suggested that be the
time when the Finance Committee makes its recommendation to the City Council on how to handle the anticipated surplus from the prior year.
Finance Director/Treasurer Scott Catlett confirmed it will be part of the discussion.
Chair O’Neill recommended selecting a department for a more detailed review as part of the
October Revenue Audit Program update.
Committee Member Collopy called for taking another look at the Harbor Department and believes it will not take more than one hour. City Manager Leung reported Human Resources
is conducting a staffing study of the Harbor Department and she would prefer to present those results at the time the Harbor Department is reviewed. City Manager Leung reported some
adjustments for the Harbor Department may be appropriate for consideration as part of next fiscal year’s budget. Committee Member Collopy inquired when the Finance Committee will be apprised of
CalPERS performance. Finance Director/Treasurer Catlett reported that will be presented in November and will include information through June 30, 2022.
Chair O’Neill called for public comments. Mr. Mosher commented that the work plan does not include approximately a dozen obligations
it is supposed to be fulfilling including actively and pro-actively making recommendations to the
16
Finance Committee Meeting Minutes May 26, 2022
Page 3 of 3
City Council on cost savings and reducing expenses annually. He encouraged the Finance Committee to place an item on the agenda to review that it is undertaking the tasks contemplated in the Committee’s enabling resolution. The item was received and filed.
Chair O’Neill thanked the Finance Committee for its service this year. V. ADJOURNMENT The Finance Committee adjourned at 3:11 p.m. to the next regular meeting of the Finance Committee.
The agenda for the Regular Meeting was posted on May 20, 2022, at 4:26 p.m., in the binder and on the City Hall Electronic Board located in the entrance of the Council Chambers at 100 Civic Center Drive.
Attest:
___________________________________ _____________________ Will O’Neill, Chair Date
Finance Committee
17
CITY OF NEWPORT BEACH
FINANCE COMMITTEE
STAFF REPORT
Agenda Item No. 5A
September 15, 2022
TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Finance Department
Scott Catlett, Finance Director/Treasurer
949-644-3123, scatlett@newportbeachca.gov
SUBJECT: ANNUAL REVIEW OF INVESTMENT PERFORMANCE
SUMMARY:
As guided by the City’s investment policy objectives, the City strives to maintain a portfolio
emphasizing safety and liquidity while earning a market rate of return commensurate with
the City’s risk tolerance and investment restrictions imposed by the California
Government Code. The City has complied with all the limiting parameters of both the
California Government Code and the City’s Investment Policy Statement while earning a
rate of return comparable to the City’s established benchmarks.
RECOMMENDED ACTION:
Receive and file.
DISCUSSION:
The City’s strategy continues to focus on identifying value from high quality, marketable
securities among the full range of investment options, ensuring the portfolio continues to
be well diversified. The City’s investment portfolio contains investments that are pooled
assets of the City of Newport Beach, which includes the General Fund, special revenue
funds, internal service funds, enterprise funds (e.g., water and wastewater), and various
other funds.
The City uses several accounts and carve-out portfolios to accomplish its investment
objectives. For liquidity, the City uses a combination of demand deposit accounts (DDAs),
the Local Agency Investment Fund (LAIF), and a targeted-maturities portfolio to provide
sufficient liquidity to meet its day-to-day cash flows. Municipal deposits in DDAs are 110
percent collateralized by bank assets, and the City receives a compensating balance
18
Annual Review of Investment Performance
September 15, 2022
Page 2
credit that can only be used to offset banking fees but does not produce income beyond
bank fees. Funds needed to meet specific cash flows that can be invested at a rate higher
than LAIF are accounted for in our targeted-maturities portfolio.
The remainder of the City’s funds are actively managed in accordance with the California
Government Code and the City’s investment policy by Chandler Asset Management
(Chandler). The investments are held by a custody bank and are registered in the City’s
name. The City accounts for and monitors the portfolio independently of Chandler by a
direct feed from the custody bank and the use of third-party analytical software.
“Total return” is the accepted industry standard measure for comparing portfolio
performance to established benchmarks. Total return benchmarks provide valuable
information to those charged with governance of the investment portfolio by:
• Communicating a transparent risk profile and related investment strategy;
• Managing expectations of risk and return; and
• Providing relative variances that can be used to identify decisions made regarding
portfolio durations, sector weighting, credit quality and maturity structure.
The City uses total return to measure performance and risk against its benchmarks. Total
return is made up of both income return and unrealized gains and losses due to changing
interest rate environments. The market value of bonds moves inversely to the direction
of interest rates. As interest rates increase, the market value of bonds held in the portfolio
decreases because they are paying a lower interest rate than comparable bonds in the
market. While total return is useful for benchmarking, generally, the City’s securities are
held to maturity, making income return a better indicator of the City’s cash flows from
these securities. The City seeks higher income returns within the core portfolio whenever
possible by avoiding selling securities before maturity due to liquidity needs. This is
accomplished by holding sufficient liquid assets outside the core portfolio, primarily in
LAIF, to meet these needs. Price risk from the core portfolio is mitigated by generally
holding securities to maturity. Liquidity risk from the core portfolio is managed by holding
liquid assets outside of the core portfolio. Price risk from the core portfolio is managed
by generally holding securities to maturity.
Representatives from Chandler Asset Management will make a presentation to the
Finance Committee discussing investment performance for the Chandler-managed
portfolio for the fiscal year ending June 30, 2022.
Prepared and Submitted by:
/s/ Scott Catlett
Scott Catlett
Finance Director/Treasurer
19
CITY OF NEWPORT BEACH
FINANCE COMMITTEE
STAFF REPORT
Agenda Item No. 5B
September 15, 2022
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE COMMITTEE
FROM: Finance Department
Scott Catlett, Finance Director/Treasurer
949-644-3213, scatlett@newportbeachca.gov
SUBJECT: ANNUAL REVIEW OF INVESTMENT POLICY
SUMMARY:
Consistent with Section K-2 of Council Policy F-1, Statement of Investment Policy (the
Policy), the Finance Department has completed an annual review of the Policy to ensure
its consistency with the overall objectives of preservation of principal, liquidity, and return,
as well as its relevance to current law and financial and economic trends. The investment
of City funds is governed by the California Government Code (Sections 53600-53610),
which prescribes the investment vehicles in which local agencies are permitted to invest
available funds. Staff, working with the City’s investment advisor Chandler Asset
Management (Chandler), has completed a comprehensive review of the Policy including
compliance with relevant sections of the Government Code, as well as, incorporating best
investment practices. No changes to the Policy are proposed for this fiscal year.
RECOMMENDED ACTION:
Receive and file.
DISCUSSION:
California Government Code Section 53600.5 mandates that the City Treasurer shall
follow three objectives when investing, reinvesting, purchasing, acquiring, exchanging,
selling, or managing public funds. The primary objective of the City Treasurer shall be to
safeguard the principal of the funds under his or her control. The secondary objective
shall be to meet the liquidity needs of the City. The third objective shall be to achieve a
return on the funds under his or her control. Guided by the Policy and constrained by
California Government Code, the City’s core investment objectives are to provide safety
of the invested principal by maintaining a well-diversified, high-quality portfolio of liquid
20
Annual Review of Investment Policy
September 15, 2022
Page 2
assets while earning a market rate of return commensurate with the City’s conservative
risk profile.
Based on Chandler’s recent review of the City’s Investment Policy, no changes to the
Policy are recommended at this time.
Prepared and Submitted by:
/s/ Scott Catlett
____________________________
Scott Catlett
Finance Director/Treasurer
21
CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT
Agenda Item No. 5D September 15, 2022
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE COMMITTEE
FROM: Finance Department Scott Catlett, Finance Director/Treasurer 949-644-3123, scatlett@newportbeachca.gov
SUBJECT: INTERNAL AUDIT PROGRAM UPDATE
SUMMARY: In the spirit of continuous improvement and with support and direction from the City Manager’s Office, the Finance Department has been charged to develop a
comprehensive internal audit program. This report provides an update for internal audit activities to date. RECOMMENDED ACTION:
Receive and file. DISCUSSION: Background
In October 2019, Moss Adams was selected to assess internal controls, conduct performance audits, and provide management consulting services where appropriate. In September 2020, Moss Adams provided Enterprise Risk Assessment and Internal Controls Review reports for the Committee’s review. From these reports, 13 internal audit projects were identified, which are being addressed incrementally as part of each fiscal
year’s ongoing internal audit work plan. In December 2021, the City issued RFP 22-27 - Internal Control Assessment and Test work, Performance Audits, and Management Consulting Services. From the received proposals, staff has selected four vendors to complete the remaining internal audit
projects identified by Moss Adams and additional audit projects identified by the Finance Committee and/or staff in the future.
22
Internal Audit Program Update September 15, 2022 Page 2 On June 28, 2022, the City Council awarded a multi-year on call contract for professional internal audit services to four firms to further study and complete audit focus areas identified in the Moss Adams report. The four firms awarded a contract are:
1. Moss Adams LLP 2. Sjoberg Evanshenk Consulting Inc. 3. Macias Gini & O’Connell LLP 4. TAP International
A firm or firms will be selected each year to perform the internal audits included in the work plan based on qualifications for the specific topic area to be studied. Current Progress
Staff has begun planning, meeting, coordinating, and working to implement key findings from the first five internal audit reports. Responding to the key findings requires different types of work to be completed, including revisions to internal department procedures, intra-department policy revisions, new policy development, and training coordination. This work is underway, and staff will provide a brief verbal update to the Committee on
progress to date. The remaining eight focus areas identified in the Moss Adams report will be reviewed in the year ahead or in future years’ internal audit programs. The focus areas and the anticipated fiscal year for their inclusion in the internal audit work plan are as follows:
1. Accounts Payable and Disbursement (Fiscal Year 2022-23) 2. Payroll (Fiscal Year 2022-23) 3. Fixed Asset Management (Fiscal Year 2022-23) 4. Police Property and Evidence Internal Controls Testing (Fiscal Year 2022-23)
5. Financial Reporting (TBD) 6. Budgeting (TBD) 7. Business Continuity and Disaster Planning Assessment (TBD) 8. Finance Customer Service Operational Review (TBD)
On September 7, 2022, staff received responses from the four internal audit on-call panel firms to complete the focus area work identified for this fiscal year. Staff is reviewing the proposals and anticipate the work to begin this month.
23
Internal Audit Program Update September 15, 2022 Page 3 As discussed with the Finance Committee when the work plan was approved, staff anticipates including other topics in future work plans as identified by staff or the Committee as the topics listed in the original Moss Adams report are addressed. Staff will return in two months with another update on activities for the five completed reports,
as well as an update on progress for the four focus areas to be studied in Fiscal Year 2022-23. Prepared and Submitted by:
/s/ Michael Gomez _____________________________
Michael Gomez Deputy Finance Director
24
CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending June 30, 2022
City of Newport Beach
SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
SECTION 5 Transactions
Table of Contents As of June 30, 2022
1
SECTION |Section 1 |Economic Update
2
Economic Update
Tightening financial conditions and higher interest rates continue to adversely impact the trajectory of the US and Global
economy.Inflation is weighing heavily on consumer sentiment and beginning to impact discretionary spending.Labor
markets remain strong,but wage gains are not keeping up with inflation. While we expect the Fed to continue to tighten
monetary policy,evidence of slower economic conditions has begun to mount.Over the near-term,we expect financial
market volatility to remain intensified and conditions to remain tighter with persistent inflation, geopolitical risk,supply
chain bottlenecks, and the Fed's shift to a more hawkish monetary policy.
At the July meeting,the Federal Open Market Committee (FOMC)delivered another 75-basis point increase to the Fed
Funds Rate,increasing the range to 2.25%to 2.50%.The FOMC acknowledged spending and production were trending
lower,offset by a strong labor market and elevated inflation metrics.Although declining to provide “forward guidance”,
Fed Chair Powell acknowledged current policy settings are close to neutral but emphasized policy would need to move to a
more restrictive stance to counterbalance the elevated inflation trends.We anticipate additional rates hikes as the Fed
remains focused on lowering inflation.
In July,yields fell,and the curve inverted.The 2-year Treasury yield declined 7 basis points to 2.89%,the 5-year Treasury
yield plunged 36 basis points to 2.68%,and the 10-year Treasury yield dropped 37 basis points to 2.65%.The spread
between the 2-year Treasury yield and 10-year Treasury yield inverted to -24 basis points at July month-end versus 6 basis
points at June month-end,and 104 basis points one year ago.The spread between 3-month and 10-year treasuries
compressed to just 29 basis points.The shape of the curve does not necessarily indicate an imminent recession but bears
watching as a better predictor of recession over the medium- term.
3
Source: US Department of Labor Source: US Department of Labor
Employment
The U.S.economy added 372,000 jobs in June,and job gains in May were revised down to 384,000 from 390,000.Trends in employment remain
strong,with the three-month moving average payrolls at 375,000 and the six-month moving average at 457,000.Hiring was led by education
and health services,followed by professional and business services,and leisure and hospitality.The unemployment rate remained unchanged
at 3.6%for the fourth month,and the U-6 underemployment rate,which includes those who are marginally attached to the labor force and
employed part time for economic reasons,declined to a seasonally adjusted 6.7%rate. Average hourly earnings rose 5.1%year-over-year in
June,easing from a revised 5.3%year-over-year gain in May,which reflects a continuing,slow deceleration in wage growth that could help
ease broad cyclical price pressures.The labor participation rate decreased to 62.2%from 62.3%,suggesting a slower pace for workers returning
to the labor market despite higher wages.
-5,000
-4,000
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
MOM Change In (000's)Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
24.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)Rate (%)4
Source: US Department of Labor Source: US Department of Commerce
Inflation
The Consumer Price Index (CPI)hit a 40-year high in June with broad-based price increases for most goods and services.Headline CPI was up
9.1%year-over-year in June, surpassing expectations,up from 8.6%year-over-year in May.Core CPI (CPI less food and energy)was up 5.9%in
June,down from 6.0%in May.Gasoline,shelter,and food were the largest contributors to the increase.The Personal Consumption
Expenditures (PCE)index was up 6.8%year-over-year in June, up from a 6.3%year-over-year increase in May.Core PCE was up 4.8%year-over-
year in June,versus up 4.7%year-over-year in May.Persistently elevated inflation is likely to keep the Federal Reserve on the path of
tightening monetary policy as long as it continues to run well above the Fed’s longer-run target of around 2.0%.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YOY( %) Change0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY( %) Change5
Retail sales rose 1.0%in June from an upwardly revised -0.1%in May,led by a significant dollar value increase in gasoline sales.The higher-
than-expected results indicate consumer demand is holding up more than expected despite inflation.Retail sales growth is at risk as
consumers dip into savings and assume more debt.On a year-over-year basis,retail sales were up 8.4%in June versus up 8.2%revised in May.
The ConsumerConfidence index fell to 95.7 in July from a downwardly revised 98.4 in June. Consumers’ buyingplans for major purchases have
waned coinciding with higher interest rates and stock market declines.In addition,discretionary spending decisions are increasingly pressured
by elevated gas, food, and shelter costs.
Source: US Department of Commerce Source: The Conference Board
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Retail Sales YOY % Change
YOY (%) Change80
90
100
110
120
130
140
Index LevelConsumer Confidence
Consumer
6
Source: The Conference Board Source: Federal Reserve Bank of Chicago
Economic Activity
The Conference Board’s Leading Economic Index (LEI)decreased more than expected to -0.8%month-over-month in June,following a decline
to -0.6%in May.Although the index is still in positive territory at +1.4%year-over-year versus +2.8%in May,the Conference Board indicated
that economic growth is slowing and recession risk is increasing due to elevated inflation and monetary policy tightening.The Chicago Fed
National Activity Index (CFNAI)is unchanged at -0.19.On a 3-month moving average basis,the CFNAI decreased to -0.04 in June from +0.09 in
May.
-4.00
-2.00
0.00
2.00
4.00
6.00
Chicago Fed National Activity Index (CFNAI)3 Month Average-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
Leading Economic Indicators (LEI)MOM ( %) Change7
Source: US Department of Commerce Source: S&P
Housing
0
200
400
600
800
1000
1200
1400
1600
1800
2000
MOM Change (In Thousands of Units)Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
18.0%
21.0%
24.0%
S&P/Case-Shiller 20 City Composite Home Price Index YOY( %) ChangeTotal housing starts declined 2.0%to an annual rate of 1,559,000 in June,from a revised 1,591,000 in units in May.Single-family home starts fell
by 8.1%and multi-family increased 15.0%month-over-month.On a year-over-year basis,total housing starts decreased 6.3%,driven by a drop
in construction of single-family houses as homebuyers struggle with a combination of elevated prices and higher mortgage rates.According to
the Case-Shiller 20-City home price index,home prices were up 20.5%year-over-year in May,easing slightly from a 21.2%year-over-year
increase in April.The rate of home price increases will likely decelerate as the year progresses due to the substantial rise in mortgage rates
and the negative performance of financial markets.
8
Source: Institute for Supply Management Source: Federal Reserve
Manufacturing
The Institute for Supply Management (ISM)manufacturing index dropped to 52.8 in July from 53.0 in June. Readings above 50.0 are indicative
of expansion in the manufacturing sector.The decline was driven by plunging crude oil and metals input prices along with weakness in new
orders for merchandise and rising inventories as consumerspending shifts to services.Capacity utilization declined to 80.0%in June,from an
upwardly revised 80.3% in May bringing it in line with its longer run average.
40
42
44
46
48
50
52
54
56
58
60
62
64
66
Institute of Supply Management Purchasing Manager Index
EXPANDING
CONTRACTING
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Industrial Production
YOY( %) Change9
Source: US Department of Commerce Source: US Department of Commerce
9/21 12/21 3/22 6/22
1.4% 1.8% 1.2% 0.7%
2.1% 5.8% 0.9% -2.7%
-1.3% -0.2% -3.2% 1.4%
-0.4% -0.3% -0.5% -0.2%
0.5% -0.2% -0.1% -0.1%
2.3% 6.9% -1.6% -0.9%
Components of GDP
Federal Government Expenditures
State and Local (Consumption and Gross
Investment)
Net Exports and Imports
Total
Gross Private Domestic Investment
Personal Consumption Expenditures
-35.0%-30.0%-25.0%-20.0%-15.0%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Gross Domestic Product (GDP)
According to the advance estimate,second quarter 2022 GDP contracted at an annualized rate of 0.9%,following a first quarterdecline of 1.6%.
Although many market participants link two quarters in a row of negative GDP growth with a recession,an official declaration by the National
Bureau of Economic Research is unlikely given the mosaic of data and the strength of the labor market. Personal consumption expenditures
grew at a slower rate in the second quarter,as consumer spending shifted from nondurable goods to services.The largest negative
contribution was from a drop in gross residential investment as the housing sector diminished sharply.The consensus estimate calls for 1.7%
growth in the third quarter and 2.0% growth for the full year 2022.
10
Federal Reserve
Source: Federal Reserve Source: Bloomberg
At the July meeting,the Federal Open Market Committee (FOMC)delivered another 75-basis point increase to the Fed Funds Rate,increasing
the range to 2.25%to 2.50%.The FOMC acknowledged spending and production were trending lower,offset by a strong labor market and
elevated inflation metrics.Although declining to provide “forward guidance”,Fed Chair Powell acknowledged current policy settings are close
to neutral but emphasized policy would need to move to a more restrictive stance to counterbalance the elevated inflation trends.The Fed
will continue shrinking its $9 trillion balance sheet by $47.5 billion per month, increasing to $95 billionin September.We anticipate additional
rates hikes as the Fed remains focused on lowering inflation.As inflation metrics begin to moderate,we believe the Federal Reserve will
decelerate their pace of tightening, but a material decline in inflation in the short-term is unlikely.
0.00%
0.25%
0.50%
0.75%
1.00%
1.25%
1.50%
1.75%
2.00%
2.25%
2.50%
2.75%
Effective Federal Funds Rate
Yield (%)2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
In$ millions11
Source: Bloomberg 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
Yield (%)0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
US Treasury Yield Curve
Jul-22
Apr-22
Jul-21Yield (%)Bond Yields
At the end of July,the 2-year Treasury yield was 270 basis points higher,and the 10-Year Treasury yield was about 143 basis points higher,year-
over-year.The spread between the 2-year Treasury yield and 10-year Treasury yield inverted to -24 basis points at July month-end versus 6
basis points at June month-end.The average historical spread (since 2003)is about 130 basis points.The spread between 3-month and 10-year
treasuries compressed to just 29 basis points.The shape of the yield curve does not indicate an imminent recession but bears watching as a
better predictor of recession over the medium-term.
12
Section 2|SECTION |Section 2 |Account Profile
13
Objectives
Chandler Asset Management Performance Objective
The performance objective for the City of Newport Beach is to earn a return that equals or exceeds the
return on an index of 1-3 Year Treasury notes.
Investment Objectives
The investment objectives of the City of Newport Beach are first,to provide safety of principal to ensure
the preservation of capital in the overall portfolio;second,to provide adequate liquidity to meet all
requirements that may be reasonably anticipated;and third,to earn a commensurate rate of return.
Strategy
In order to achieve these objectives,we invest in high quality fixed income securities consistent with the
City’s investment policy and California Government Code.
As of June 30, 2022
14
Compliance As of June 30, 2022
Category Standard Comment
Treasury Issues No Limitation Complies
Federal Agencies No Limitation; Federal instrumentality (U.S. government-sponsored enterprises); Federal Agency Obligations Complies
Supranationals
"AA" rating category or higher by a NRSRO; 20% maximum; 10% max per issuer; USD denominated senior unsecured unsubordinated obligations;
Issued or unconditionally guaranteed by International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or
Inter-American Development Bank (IADB)
Complies
Municipal Securities
"A" rating category or equivalent by a NRSRO; 30% maximum; 5% max per issuer; Include bonds issued by the City of Newport Beach, State of
California, local agency within the State of California; Registered bonds of any of the other 49 states in addition to California, including bonds payable
solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state, or department, board, agency, or authority of
any of the other 49 states, in addition to California.
Complies
Banker’s Acceptances "A-1" rated or equivalent by a NRSRO; "A" rating category or equivalent by a NRSRO, if the bank has senior debt outstanding; 40% maximum; 5% max
per issuer; 180 days max maturity Complies
Commercial Paper
"A-1" rated or equivalent by a NRSRO; "A" rated issuer or equivalent by a NRSRO, if any long-term debt; 25% maximum; 5% max per issuer; 270 days
max maturity; Entity that issues the commercial paper shall either i: (1) be organized and operating in the U.S. as a general corporation, (2) have
assets >$500 million, and (3) have debt other than commercial paper, if any, that is rated "A" category or equivalent by a NRSRO; or ii. (1) be
organized within U.S. as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but
not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated "A-1" or equivalent by a NRSRO.
Complies
Negotiable Certificates of Deposit
(NCD)
"A" long-term debt rating category or equivalent by a NRSRO; or "A-1" short-term debt rated or equivalent by a NRSRO; and having assets in excess of
$10 billion; 30% maximum (combined NCDs, CDs); 5% max per issuer; 2 years max maturity Complies
Non-Negotiable Certificates of
Deposit 30% maximum (combined NCDs, CDs); 5% max per issuer; FDIC Insured; or Secured pursuant to California Government Code; 2 years max maturity Complies
Medium Term Notes "A" rating category or equivalent by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporations organized and operating within the U.S. or
by depository institutions licensed by the U.S. or any state and operating within the U.S.Complies
Asset-Backed Securities, Mortgage-
Backed Securities, Collateralized
Mortgage Obligations
"AAA" rated or equivalent by a NRSRO; 20% maximum (combined mortgage-backed, asset-backed securities, CMOs); 5% max per issuer; From
issuers not defined in sections (a) US Treasuries, (b) Federal Instrumentalities, (c) Federal Agency Obligations.Complies
Money Market Mutual Funds and
Mutual Funds
Highest rating or "AAA" rated by two NRSROs; or SEC registered adviser with AUM >$500 million and experience greater than 5 years; 10% per one
Mutual Fund; 20% maximum in Money Market Mutual Funds; 20% maximum combined of total portfolio in these securities Complies
Repurchase Agreements; Reverse
Repurchase Agreements
"A-1" or equivalent short term rating; or "A" long term rating or equivalent; 10% maximum for reverse repurchase agreements; 30 days max
maturity; Collateralized by U.S. Treasuries or Federal Instrumentalities; Not used by Investment Adviser Complies
Local Agency Investment Fund (LAIF) Pursuant to California Govt Code Section 16429.1; Not used by Investment Adviser Complies
County Investment Funds 5% maximum; Los Angeles County Pool; Not used by Investment Adviser Complies
Prohibited Derivative structures such as Range Notes, Dual Index Notes, Inverse floaters, Leveraged or de-leveraged floating rate notes; Interest-only strips from
mortgaged backed securities; Zero interest accrual securities; Orange County Pool Complies
Credit Quality
In the event a security held by the City is the subject of a rating downgrade which brings it below accepted minimums, or the security is place on
negative credit watch, where downgrade could result in a rate drop below acceptable levels, the investment adviser will immediately notify the
Finance Director.
Complies
Max Per Issuer 5% of portfolio, except Governmental issuers, Supranationals, Investment pools, Mutual Funds, and Money Market Funds, or unless otherwise
specified in the investment policy. Restriction does not apply to any type of Federal Instrumentality or Federal Agency Security Complies
Maximum maturity 5 years Complies
Assets managed by Chandler Asset Management are in full compliance with state law and the Client's investment policy.
City of Newport Beach, California Consolidated
15
Portfolio Characteristics
City of Newport Beach, California
06/30/22 03/31/22
Benchmark*Portfolio Portfolio
Average Maturity (yrs)1.84 2.08 1.95
Average Modified Duration 1.78 1.84 1.75
Average Purchase Yield n/a 1.30%1.17%
Average Market Yield 2.95%3.10%2.14%
Average Quality**AAA AA/Aa1 AA+/Aa1
Total Market Value 270,833,441 266,331,008
*ICE BofA 1-3 Yr US Treasury Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
As of June 30, 2022
16
Portfolio Allocation & Duration Changes
City of Newport Beach, California
As of June 30, 2022
Benchmark: ICE BofA 1-3 Yr US Treasury Index
103.3%
98.7%101.0%99.5%98.9%100.1%
95.4%96.8%
80.0%
85.0%
90.0%
95.0%
100.0%
105.0%
110.0%
06/30/2203/31/2212/31/2109/30/2106/30/2103/31/2112/31/2009/30/20
Duration as a % of the Benchmark
0.1%
0.8%
1.6%
4.5%
8.9%
21.5%
33.5%
29.2%
0.1%
0.7%
3.4%
4.4%
9.5%
23.6%
28.8%
29.4%
Money Market
Fund
Municipal Bonds
CMO
Supranational
ABS
Corporate
Agency
US Treasury
Portfolio Allocation
06/30/22
03/31/22
17
Duration Allocation As of June 30, 2022
City of Newport Beach, California
0 -0.25 0.25 -0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+
06/30/22 2.5%2.1%14.7%38.2%34.8%3.4%4.4%0.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0 - 0.25 Years 0.25 - 0.5 Years 0.5 - 1 Years 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years 5+ Years
ABS
Agency
CMO
Corporate
Money Market Fund
Municipal Bonds
Supranational
US Treasury
18
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+
City of Newport Beach, California ICE BofA 1-3 Yr US Treasury Index
Portfolio Compared to the Benchmark
0 -0.25 0.25 -0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+
Portfolio 2.5% 2.1% 14.7% 38.2% 34.8% 3.4% 4.4% 0.0%
Benchmark*0.0% 0.0% 3.0% 57.7% 39.3% 0.0% 0.0% 0.0%
*ICE BofA 1-3 Yr US Treasury Index
Duration Distribution
City of Newport Beach, California
As of June 30, 2022
19
Issue Name Investment Type % Portfolio
Government of United States US Treasury 29.43%
Federal Farm Credit Bank Agency 9.77%
Federal Home Loan Bank Agency 7.17%Federal National Mortgage Association Agency 6.01%Federal Home Loan Mortgage Corp Agency 5.89%
Federal Home Loan Mortgage Corp CMO 3.42%
Intl Bank Recon and Development Supranational 2.14%
Deere & Company Corporate 1.46%Inter-American Dev Bank Supranational 1.38%Paccar Financial Corporate 1.35%
Hyundai Auto Receivables ABS 1.30%
John Deere ABS ABS 1.30%
GM Financial Automobile Leasing Trust ABS 1.26%New York Life Global Funding Corporate 1.14%JP Morgan Chase & Co Corporate 1.08%
MasterCard Inc Corporate 1.08%
Target Corp Corporate 1.08%
Toyota Motor Corp Corporate 1.06%Caterpillar Inc Corporate 1.02%Bank of America Corp Corporate 0.94%
American Express ABS ABS 0.92%
Bank of New York Corporate 0.91%
Duke Energy Field Services Corporate 0.90%Royal Bank of Canada Corporate 0.90%International Finance Corp Supranational 0.89%
Hyundai Auto Lease Securitization ABS 0.89%
Metlife Inc Corporate 0.89%
Toyota Lease Owner Trust ABS 0.85%National Rural Utilities Corporate 0.84%Charles Schwab Corp/The Corporate 0.79%
Honda ABS ABS 0.75%
Northern Trust Corp Corporate 0.75%
US Bancorp Corporate 0.75%Wal-Mart Stores Corporate 0.74%State of New York Municipal Bonds 0.73%
Apple Inc Corporate 0.73%
Toronto Dominion Holdings Corporate 0.73%
Mass Mutual Insurance Corporate 0.72%
Issuers
City of Newport Beach, California –Account #10
As of June 30, 2022
20
Issue Name Investment Type % Portfolio
Bank of Montreal Chicago Corporate 0.70%
Amazon.com Inc Corporate 0.65%
BMW Vehicle Lease Trust ABS 0.58%Prudential Financial Inc Corporate 0.57%GM Financial Securitized Term Auto Trust ABS 0.43%
Mercedes-Benz Auto Lease Trust ABS 0.41%
United Health Group Inc Corporate 0.40%
Berkshire Hathaway Corporate 0.37%Visa Inc Corporate 0.37%BMW ABS ABS 0.35%
State Street Bank Corporate 0.32%
Toyota ABS ABS 0.28%
Nissan ABS ABS 0.21%Honda Motor Corporation Corporate 0.19%Salesforce.com Inc Corporate 0.16%
Federated GOVT Obligation MMF Money Market Fund 0.05%
TOTAL 100.00%
Issuers
City of Newport Beach, California –Account #10
As of June 30, 2022
21
AAA AA A <A NR
06/30/22 11.6%65.2%17.4%0.0%5.8%
03/31/22 10.6%69.8%15.1%0.0%4.5%
Source: S&P Ratings
June 30, 2022 vs. March 31, 2022
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
AAA AA A <A NR
June 30, 2022 March 31, 2022
Quality Distribution
City of Newport Beach, California
As of June 30, 2022
22
-4.00%
-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
12 months 2 years 3 years 5 years 10 years Since Inception
City of Newport Beach, California ICE BofA 1-3 Yr US Treasury Index
Total Rate of Return Annualized Since Inception March 31, 1991
Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
City of Newport Beach, California -0.56%-3.15%-1.44%0.46%1.18%1.02%3.79%
ICE BofA 1-3 Yr US Treasury Index -0.50%-3.30%-1.63%0.24%0.94%0.79%3.51%
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 theendingvalue;it includes interest earnings,realized and unrealized gains and losses in the portfolio.
Investment Performance
City of Newport Beach, California
As of June 30, 2022
23
Portfolio Characteristics
City of Newport Beach, California -Short Term
06/30/22
Portfolio
03/31/22
Portfolio
Average Maturity (yrs)0.20 0.40
Modified Duration 0.20 0.39
Average Purchase Yield 0.73%0.48%
Average Market Yield 1.39%0.71%
Average Quality*AA+/Aaa AA+/Aaa
Total Market Value 28,928,656 23,995,347
*Portfolio is S&P and Moody’s, respectively.
As of June 30, 2022
24
City of Newport Beach, California -Short Term
Sector Distribution
Commercial
Paper
30.1%
Negotiable CD
7.6%
US Treasury
62.3%
June 30, 2022 March 31, 2022
Commercial
Paper
57.0%
Money Market
Fund
0.2%
Negotiable CD
9.1%
US Treasury
33.6%
As of June 30, 2022
25
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
12 months 2 years 3 years 5 years 10 years Since Inception
City of Newport Beach, California - Short Term
Total Rate of Return Annualized Since Inception December 31, 2015
Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since
Inception
City of Newport Beach, California -Short Term 0.09%0.08%0.12%0.77%1.28%N/A 1.16%
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 theendingvalue;it includes interest earnings,realized and unrealized gains and losses in the portfolio.
Investment Performance
City of Newport Beach, California -Short Term
As of June 30, 2022
26
SECTION |Section 3 |Consolidated Information
27
Portfolio Characteristics
City of Newport Beach, California Consolidated
06/30/22 03/31/22
Portfolio Portfolio
Average Maturity (yrs)1.90 1.82
Modified Duration 1.68 1.64
Average Purchase Yield 1.24%1.11%
Average Market Yield 2.93%2.02%
Average Quality*AA+/Aa1 AA+/Aa1
Total Market Value 299,762,097 290,326,355
* Portfolio is S&P and Moody’s respectively.
As of June 30, 2022
28
City of Newport Beach, California Consolidated
Sector Distribution
ABS
8.6%
Agency
26.1%
CMO
3.1%
Commercial
Paper
2.9%
Corporate
21.3%
Municipal Bonds
0.7%
Negotiable CD
0.7%
Supranational
4.0%
US Treasury
32.6%
June 30, 2022 March 31, 2022
ABS
8.2%
Agency
30.7%
CMO
1.4%
Commercial
Paper
4.7%
Corporate
19.8%
Money Market
Fund
0.1%
Municipal Bonds
0.7%
Negotiable CD
0.8%
Supranational
4.2%
US Treasury
29.5%
As of June 30, 2022
29
Issue Name Investment Type % Portfolio
Government of United States US Treasury 32.61%
Federal Farm Credit Bank Agency 8.83%
Federal Home Loan Bank Agency 6.48%Federal National Mortgage Association Agency 5.43%Federal Home Loan Mortgage Corp Agency 5.32%
Federal Home Loan Mortgage Corp CMO 3.09%
Intl Bank Recon and Development Supranational 1.93%
MUFG Bank Ltd/NY Commercial Paper 1.67%Deere & Company Corporate 1.32%Inter-American Dev Bank Supranational 1.25%
Paccar Financial Corporate 1.22%
Hyundai Auto Receivables ABS 1.18%
John Deere ABS ABS 1.17%GM Financial Automobile Leasing Trust ABS 1.14%New York Life Global Funding Corporate 1.03%
JP Morgan Chase & Co Corporate 0.98%
MasterCard Inc Corporate 0.97%
Target Corp Corporate 0.97%Toyota Motor Corp Corporate 0.96%Caterpillar Inc Corporate 0.92%
Bank of America Corp Corporate 0.85%
American Express ABS ABS 0.83%
Bank of New York Corporate 0.82%Duke Energy Field Services Corporate 0.81%Royal Bank of Canada Corporate 0.81%
International Finance Corp Supranational 0.81%
Hyundai Auto Lease Securitization ABS 0.80%
Metlife Inc Corporate 0.80%Toyota Lease Owner Trust ABS 0.76%National Rural Utilities Corporate 0.76%
Toronto Dominion Holdings Negotiable CD 0.73%
Charles Schwab Corp/The Corporate 0.72%
Honda ABS ABS 0.68%Northern Trust Corp Corporate 0.68%US Bancorp Corporate 0.68%
Wal-Mart Stores Corporate 0.67%
State of New York Municipal Bonds 0.66%
Apple Inc Corporate 0.66%
Issuers
City of Newport Beach, California Consolidated –Account #13
As of June 30, 2022
30
Issue Name Investment Type % Portfolio
Toronto Dominion Holdings Corporate 0.66%
Mass Mutual Insurance Corporate 0.65%
Toyota Motor Corp Commercial Paper 0.63%Bank of Montreal Chicago Corporate 0.63%Royal Bank of Canada NY Commercial Paper 0.60%
Amazon.com Inc Corporate 0.58%
BMW Vehicle Lease Trust ABS 0.53%
Prudential Financial Inc Corporate 0.52%GM Financial Securitized Term Auto Trust ABS 0.39%Mercedes-Benz Auto Lease Trust ABS 0.37%
United Health Group Inc Corporate 0.36%
Berkshire Hathaway Corporate 0.34%
Visa Inc Corporate 0.33%BMW ABS ABS 0.32%State Street Bank Corporate 0.29%
Toyota ABS ABS 0.25%
Nissan ABS ABS 0.19%
Honda Motor Corporation Corporate 0.17%Salesforce.com Inc Corporate 0.15%Federated GOVT Obligation MMF Money Market Fund 0.04%
Goldman Sachs Financial Square Funds -Treasury Obligations Fund Money Market Fund 0.00%
TOTAL 100.00%
Issuers
City of Newport Beach, California Consolidated –Account #13
As of June 30, 2022
31
SECTION |Section 4 |Portfolio Holdings
32
Holdings Report
City of Newport Beach, California -Account #10
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
ABS
43815NAC8 Honda Auto Receivables Trust 2019-3 A31.780% Due 08/15/2023 316,118.87 08/20/20191.79%316,116.24316,118.69 99.90 2.37%315,809.71 250.09 0.12% (308.98)Aaa / AAANR 1.130.17
477870AC3 John Deere Owner Trust 2019-B A32.210% Due 12/15/2023 104,342.37 07/16/20192.23%104,320.23104,335.03 99.95 2.44%104,294.89 102.49 0.04% (40.14)Aaa / NRAAA 1.460.21
43813RAC1 Honda Auto Receivables 2020-1 A3
1.610% Due 04/22/2024
906,316.19 02/19/2020
1.62%
906,138.56
906,238.79
99.37
3.08%
900,634.49
405.32
0.33%
(5,604.30)
Aaa / NR
AAA
1.81
0.43
89238EAC0 Toyota Lease Owner Trust 2021-A A30.390% Due 04/22/2024 1,235,000.00 04/13/20210.40%1,234,855.881,234,927.12 97.83 3.35%1,208,227.67 147.17 0.45% (26,699.45)Aaa / AAANR 1.810.73
44891VAC5 Hyundai Auto Lease Trust 2021-B A3
0.330% Due 06/17/2024
1,435,000.00 06/08/2021
0.34%
1,434,784.75
1,434,884.38
97.40
3.49%
1,397,717.27
210.47
0.52%
(37,167.11)
Aaa / AAA
NR
1.97
0.83
65479JAD5 Nissan Auto Receivables Owner 2019-C A31.930% Due 07/15/2024 575,041.71 10/16/20191.94%575,011.35575,028.61 99.70 2.98%573,325.21 493.26 0.21% (1,703.40)Aaa / AAANR 2.040.29
47789KAC7 John Deere Owner Trust 2020-A A31.100% Due 08/15/2024 648,023.22 03/04/20201.11%647,983.64648,004.24 98.99 3.46%641,466.52 316.81 0.24% (6,537.72)Aaa / NRAAA 2.130.43
89239CAC3 Toyota Lease Owner Trust 2021-B A3
0.420% Due 10/21/2024
1,125,000.00 07/27/2021
0.42%
1,124,984.81
1,124,990.42
96.35
3.69%
1,083,984.75
144.38
0.40%
(41,005.67)
Aaa / NR
AAA
2.31
1.13
36262XAC8 GM Financial Auto Lease Trust 2021-3 A20.390% Due 10/21/2024 1,690,000.00 08/10/20210.39%1,689,977.021,689,985.25 96.79 3.43%1,635,725.65 201.39 0.60% (54,259.60)NR / AAAAAA 2.311.07
58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A30.400% Due 11/15/2024 1,145,000.00 06/22/20210.40%1,144,913.551,144,947.67 96.81 3.55%1,108,500.84 203.56 0.41% (36,446.83)NR / AAAAAA 2.381.02
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3
0.330% Due 12/26/2024
765,000.00 09/08/2021
0.34%
764,921.05
764,948.51
97.07
3.49%
742,580.15
42.08
0.27%
(22,368.36)
Aaa / NR
AAA
2.49
0.93
44891WAC3 Hyundai Auto Lease Trust 2022-A A31.160% Due 01/15/2025 1,050,000.00 01/11/20221.16%1,049,976.801,049,981.43 96.61 3.66%1,014,367.20 541.33 0.37% (35,614.23)Aaa / AAANR 2.551.37
36265MAC9 GM Financial Auto Lease Trust 2022-1 A31.900% Due 03/20/2025 1,835,000.00 02/15/20221.91%1,834,984.221,834,986.79 97.35 3.70%1,786,304.61 1,065.32 0.66% (48,682.18)Aaa / NRAAA 2.721.50
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3
1.100% Due 03/25/2025
870,000.00 01/11/2022
1.11%
869,869.94
869,896.57
96.55
3.84%
839,980.65
159.50
0.31%
(29,915.92)
NR / AAA
AAA
2.74
1.27
47788UAC6 John Deere Owner Trust 2021-A A30.360% Due 09/15/2025 765,000.00 03/02/20210.37%764,852.97764,906.42 96.15 3.93%735,553.62 122.40 0.27% (29,352.80)Aaa / NRAAA 3.211.08
44933LAC7 Hyundai Auto Receivables Trust 2021-A A30.380% Due 09/15/2025 925,000.00 04/20/20210.38%924,902.69924,940.20 96.59 3.80%893,450.10 156.22 0.33% (31,490.10)NR / AAAAAA 3.211.00
44934KAC8 Hyundai Auto Receivables Trust 2021-B A3
0.380% Due 01/15/2026
2,130,000.00 07/20/2021
0.39%
2,129,529.91
2,129,668.68
96.00
3.62%
2,044,802.13
359.73
0.76%
(84,866.55)
NR / AAA
AAA
3.55
1.25
As of June 30, 2022
33
Holdings Report
City of Newport Beach, California -Account #10
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
43815GAC3 Honda Auto Receivables Trust 2021-4 A30.880% Due 01/21/2026 860,000.00 11/16/20210.89%859,818.71859,852.21 95.37 3.78%820,210.38 210.22 0.30% (39,641.83)Aaa / NRAAA 3.561.62
47789QAC4 John Deere Owner Trust 2021-B A30.520% Due 03/16/2026 1,000,000.00 07/13/20210.52%999,910.80999,933.89 94.89 3.90%948,933.00 231.11 0.35% (51,000.89)Aaa / NRAAA 3.711.53
89238JAC9 Toyota Auto Receivables Trust 2021-D A3
0.710% Due 04/15/2026
800,000.00 11/09/2021
0.71%
799,982.96
799,986.23
95.28
3.79%
762,258.40
252.44
0.28%
(37,727.83)
NR / AAA
AAA
3.79
1.56
44935FAD6 Hyundai Auto Receivables Trust 2021-C A30.740% Due 05/15/2026 615,000.00 11/09/20210.75%614,862.73614,889.59 95.56 3.57%587,664.48 202.27 0.22% (27,225.11)NR / AAAAAA 3.881.59
05602RAD3 BMW Vehicle Owner Trust 2022-A A3
3.210% Due 08/25/2026
960,000.00 05/10/2022
3.23%
959,950.08
959,952.02
98.96
4.46%
950,001.60
513.60
0.35%
(9,950.42)
Aaa / AAA
NR
4.16
0.85
362554AC1 GM Financial Securitized Term 2021-4 A30.680% Due 09/16/2026 640,000.00 10/13/20210.68%639,983.68639,987.00 94.95 4.17%607,649.28 181.33 0.22% (32,337.72)Aaa / AAANR 4.221.47
47787JAC2 John Deere Owner Trust 2022-A A32.320% Due 09/16/2026 1,110,000.00 03/10/20222.34%1,109,754.471,109,775.01 97.45 3.74%1,081,727.19 1,144.53 0.40% (28,047.82)Aaa / NRAAA 4.221.82
380146AC4 GM Financial Auto Receivables 2022-1 A3
1.260% Due 11/16/2026
575,000.00 01/11/2022
1.27%
574,950.03
574,956.74
95.68
4.09%
550,142.75
301.88
0.20%
(24,813.99)
NR / AAA
AAA
4.38
1.55
02582JJT8 American Express Credit Trust 2022-2 A3.390% Due 05/17/2027 2,485,000.00 05/17/20223.42%2,484,450.322,484,469.54 99.89 3.46%2,482,144.74 3,744.07 0.92% (2,324.80)NR / AAAAAA 4.882.68
TOTAL ABS 26,564,842.36 1.20%26,561,787.3926,562,591.03 3.62%25,817,457.2811,702.97 9.54%(745,133.75)Aaa / AAAAaa 3.091.29
Agency
313383WD9 FHLB Note3.125% Due 09/09/2022 3,750,000.00 09/25/20183.01%3,765,750.003,750,763.50 100.25 1.80%3,759,363.75 36,458.33 1.40% 8,600.25 Aaa / AA+AAA 0.190.19
3133EKHN9 FFCB Note2.330% Due 10/18/2022 2,500,000.00 05/02/20192.37%2,496,400.002,499,689.56 100.07 2.07%2,501,872.50 11,811.81 0.93% 2,182.94 Aaa / AA+AAA 0.300.30
3135G0T94 FNMA Note
2.375% Due 01/19/2023
1,600,000.00 10/04/2018
3.10%
1,554,000.00
1,594,070.20
99.94
2.48%
1,599,072.00
17,100.00
0.60%
5,001.80
Aaa / AA+
AAA
0.56
0.54
3133EKUA2 FFCB Note1.850% Due 02/01/2023 4,000,000.00 07/23/20191.87%3,997,160.003,999,525.93 99.57 2.60%3,982,700.00 30,833.33 1.48% (16,825.93)Aaa / AA+AAA 0.590.57
3133ELNW0 FFCB Note1.450% Due 02/21/2023 2,290,000.00 02/19/20201.45%2,290,274.802,290,058.92 99.29 2.57%2,273,711.23 11,990.69 0.84% (16,347.69)Aaa / AA+AAA 0.650.63
3135G04Q3 FNMA Note
0.250% Due 05/22/2023
4,000,000.00 08/11/2020
0.25%
3,999,920.00
3,999,974.33
97.72
2.84%
3,908,996.00
1,083.33
1.44%
(90,978.33)
Aaa / AA+
AAA
0.89
0.88
3133834G3 FHLB Note2.125% Due 06/09/2023 3,900,000.00 Various2.13%3,899,157.003,899,837.12 99.18 3.01%3,868,207.20 5,064.58 1.43% (31,629.92)Aaa / AA+NR 0.940.92
As of June 30, 2022
34
Holdings Report
City of Newport Beach, California -Account #10
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
3133EKSN7 FFCB Note1.770% Due 06/26/2023 4,000,000.00 06/21/20191.89%3,981,400.003,995,416.84 98.81 3.00%3,952,520.00 983.33 1.46% (42,896.84)Aaa / AA+AAA 0.990.97
3135G05G4 FNMA Note0.250% Due 07/10/2023 4,000,000.00 09/28/20200.23%4,001,920.004,000,708.86 97.35 2.88%3,894,076.00 4,750.00 1.44% (106,632.86)Aaa / AA+AAA 1.031.01
3133EKZK5 FFCB Note
1.600% Due 08/14/2023
2,000,000.00 08/09/2019
1.63%
1,997,420.00
1,999,277.74
98.53
2.94%
1,970,606.00
12,177.78
0.73%
(28,671.74)
Aaa / AA+
AAA
1.12
1.09
3133EL3V4 FFCB Note0.200% Due 08/14/2023 4,000,000.00 08/12/20200.27%3,991,680.003,996,880.95 97.05 2.89%3,881,816.00 3,044.44 1.43% (115,064.95)Aaa / AA+AAA 1.121.10
3137EAEV7 FHLMC Note
0.250% Due 08/24/2023
4,000,000.00 09/23/2020
0.24%
4,000,960.00
4,000,378.05
97.03
2.90%
3,881,120.00
3,527.78
1.43%
(119,258.05)
Aaa / AA+
AAA
1.15
1.13
313383YJ4 FHLB Note3.375% Due 09/08/2023 1,600,000.00 04/05/20192.37%1,666,896.001,617,988.14 100.51 2.93%1,608,187.20 16,950.00 0.60% (9,800.94)Aaa / AA+NR 1.191.15
3137EAEY1 FHLMC Note0.125% Due 10/16/2023 5,180,000.00 Various0.25%5,160,792.605,171,709.63 96.51 2.89%4,999,181.74 1,348.96 1.85% (172,527.89)Aaa / AA+AAA 1.301.28
3137EAEZ8 FHLMC Note
0.250% Due 11/06/2023
4,275,000.00 11/03/2020
0.28%
4,271,152.50
4,273,269.33
96.52
2.90%
4,126,200.08
1,632.81
1.52%
(147,069.25)
Aaa / AA+
AAA
1.35
1.33
3135G06H1 FNMA Note0.250% Due 11/27/2023 3,775,000.00 11/23/20200.29%3,770,696.503,772,983.59 96.41 2.87%3,639,549.23 891.32 1.34% (133,434.36)Aaa / AA+AAA 1.411.39
3137EAFA2 FHLMC Note0.250% Due 12/04/2023 3,050,000.00 12/02/20200.28%3,046,980.503,048,563.32 96.30 2.92%2,937,015.80 571.88 1.08% (111,547.52)Aaa / AA+AAA 1.431.41
3130A0F70 FHLB Note
3.375% Due 12/08/2023
4,000,000.00 12/21/2018
2.84%
4,098,680.00
4,028,622.65
100.57
2.97%
4,022,712.00
8,625.00
1.49%
(5,910.65)
Aaa / AA+
AAA
1.44
1.39
3133EKMX1 FFCB Note2.230% Due 02/23/2024 2,000,000.00 07/30/20191.91%2,027,800.002,010,033.33 98.84 2.96%1,976,786.00 15,857.78 0.74% (33,247.33)Aaa / AA+AAA 1.651.59
3130A7PH2 FHLB Note1.875% Due 03/08/2024 4,000,000.00 03/03/20200.85%4,161,400.004,067,865.12 98.22 2.97%3,928,604.00 23,541.67 1.46% (139,261.12)Aaa / AA+NR 1.691.64
3130AQF40 FHLB Note
1.000% Due 12/20/2024
2,250,000.00 12/21/2021
1.03%
2,248,020.00
2,248,365.69
95.06
3.09%
2,138,960.25
687.50
0.79%
(109,405.44)
Aaa / AA+
AAA
2.48
2.41
3133ENKS8 FFCB Note1.125% Due 01/06/2025 2,000,000.00 01/06/20221.20%1,995,500.001,996,205.32 95.54 2.98%1,910,830.00 10,625.00 0.71% (85,375.32)Aaa / AA+AAA 2.522.44
3133ENPY0 FFCB Note1.750% Due 02/25/2025 4,000,000.00 03/03/20221.76%3,999,280.003,999,358.68 97.18 2.86%3,887,348.00 24,500.00 1.44% (112,010.68)Aaa / AA+AAA 2.662.55
As of June 30, 2022
35
Holdings Report
City of Newport Beach, California -Account #10
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
3135G05X7 FNMA Note0.375% Due 08/25/2025 3,500,000.00 12/02/20211.15%3,401,720.003,416,884.44 91.94 3.08%3,217,802.00 4,593.75 1.19% (199,082.44)Aaa / AA+AAA 3.163.08
TOTAL Agency 79,670,000.00 1.24%79,824,959.9079,678,431.24 2.81%77,867,236.98248,651.07 28.84%(1,811,194.26)Aaa / AA+Aaa 1.311.28
CMO
3137B7YY9 FHLMC K037 A23.490% Due 01/25/2024 1,600,000.00 11/05/20210.58%1,687,062.501,661,817.61 100.22 3.17%1,603,580.80 4,653.33 0.59% (58,236.81)NR / AAANR 1.571.31
3137BFE98 FHLMC K041 A23.171% Due 10/25/2024 700,000.00 04/21/20222.96%702,242.19702,075.73 99.53 3.32%696,719.10 1,849.75 0.26% (5,356.63)Aaa / AAAAAA 2.322.11
3137BFXT3 FHLMC K042 A2
2.670% Due 12/25/2024
2,500,000.00 08/19/2021
0.62%
2,653,906.25
2,613,756.79
98.27
3.39%
2,456,652.50
1,112.50
0.91%
(157,104.29)
Aaa / NR
NR
2.49
2.24
3137BKRJ1 FHLMC K047 A23.329% Due 05/25/2025 2,500,000.00 05/19/20223.05%2,514,453.132,513,941.28 99.73 3.37%2,493,137.50 6,935.42 0.92% (20,803.78)NR / NRAAA 2.902.61
3137BM7C4 FHLMC K051 A23.308% Due 09/25/2025 2,000,000.00 05/16/20222.96%2,015,546.882,014,990.25 99.86 3.30%1,997,138.00 5,513.33 0.74% (17,852.25)NR / NRAAA 3.242.89
TOTAL CMO 9,300,000.00 1.92%
9,573,210.95
9,506,581.66 3.32%
9,247,227.90
20,064.33
3.42%
(259,353.76)
Aaa / AAA
Aaa
2.59
2.31
Corporate
92826CAC6 Visa Inc Callable Note Cont 10/14/20222.800% Due 12/14/2022 1,000,000.00 12/20/20183.28%982,250.00997,969.33 100.09 2.50%1,000,878.00 1,322.22 0.37% 2,908.67 Aa3 / AA-NR 0.460.29
24422EUA5 John Deere Capital Corp Note
2.700% Due 01/06/2023
1,500,000.00 07/24/2018
3.38%
1,458,270.00
1,495,146.48
99.95
2.79%
1,499,274.00
19,687.50
0.56%
4,127.52
A2 / A
A
0.52
0.50
89236TEL5 Toyota Motor Credit Corp Note2.700% Due 01/11/2023 1,000,000.00 09/07/20183.33%974,710.00996,900.66 99.69 3.29%996,923.00 12,750.00 0.37% 22.34 A1 / A+A+0.530.52
69371RQ41 Paccar Financial Corp Note
1.900% Due 02/07/2023
1,000,000.00 10/31/2019
1.90%
999,950.00
999,990.70
99.18
3.29%
991,770.00
7,600.00
0.37%
(8,220.70)
A1 / A+
NR
0.61
0.59
084670BR8 Berkshire Hathaway Callable Note Cont 1/15/20232.750% Due 03/15/2023 1,000,000.00 12/20/20183.40%974,780.00995,796.67 99.99 2.73%999,947.00 8,097.22 0.37% 4,150.33 Aa2 / AAA+0.710.65
037833AK6 Apple Inc Note2.400% Due 05/03/2023 1,000,000.00 04/11/20192.70%988,520.00997,624.83 99.53 2.97%995,304.00 3,866.67 0.37% (2,320.83)Aaa / AA+NR 0.840.82
57629WCU2 Mass Mutual Global funding Note
0.850% Due 06/09/2023
2,000,000.00 12/15/2021
0.73%
2,003,660.00
2,002,329.09
97.71
3.34%
1,954,266.00
1,038.89
0.72%
(48,063.09)
Aa3 / AA+
AA+
0.94
0.92
As of June 30, 2022
36
Holdings Report
City of Newport Beach, California -Account #10
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
931142EK5 Wal-Mart Stores Callable Note Cont 5/26/20233.400% Due 06/26/2023 2,000,000.00 04/29/20192.67%2,055,840.002,012,354.65 100.31 3.06%2,006,110.00 944.44 0.74% (6,244.65)Aa2 / AAAA 0.990.89
06406FAD5 Bank of NY Mellon Corp Callable Note Cont 6/16/20232.200% Due 08/16/2023 1,000,000.00 03/27/20192.78%976,220.00993,895.33 98.99 3.11%989,927.00 8,250.00 0.37% (3,968.33)A1 / AAA-1.131.09
89236TFS9 Toyota Motor Credit Corp Note
3.350% Due 01/08/2024
1,000,000.00 06/14/2019
2.41%
1,040,490.00
1,013,520.98
100.17
3.24%
1,001,652.00
16,098.61
0.38%
(11,868.98)
A1 / A+
A+
1.53
1.45
02665WCT6 American Honda Finance Note3.550% Due 01/12/2024 500,000.00 01/13/20202.06%528,405.00510,910.01 100.20 3.41%501,023.00 8,332.64 0.19% (9,887.01)A3 / A-A 1.541.46
24422EVN6 John Deere Capital Corp Note
0.450% Due 01/17/2024
1,850,000.00 03/01/2021
0.47%
1,848,686.50
1,849,292.54
95.94
3.16%
1,774,893.70
3,792.50
0.66%
(74,398.84)
A2 / A
A
1.55
1.52
91159HHV5 US Bancorp Callable Note Cont 1/5/20243.375% Due 02/05/2024 2,000,000.00 Various2.63%2,064,710.002,021,138.16 99.84 3.48%1,996,870.00 27,375.00 0.75% (24,268.16)A2 / A+A+1.601.52
637432NL5 National Rural Utilities Callable Note Cont 12/7/20232.950% Due 02/07/2024 1,317,000.00 04/06/20222.77%1,320,871.981,320,337.04 99.03 3.58%1,304,184.27 15,540.60 0.49% (16,152.77)A1 / A-A+1.611.53
06051GHF9 Bank of America Corp Callable Note 1X 3/5/2023
3.550% Due 03/05/2024
1,565,000.00 04/26/2021
0.64%
1,648,852.70
1,595,638.49
99.71
3.55%
1,560,427.07
17,901.86
0.58%
(35,211.42)
A2 / A-
AA-
1.68
1.60
808513BN4 Charles Schwab Corp Callable Note Cont 2/18/20240.750% Due 03/18/2024 2,230,000.00 Various0.71%2,232,745.002,231,537.54 95.98 3.17%2,140,385.22 4,785.21 0.79% (91,152.32)A2 / AA 1.721.68
023135BW5 Amazon.com Inc Note0.450% Due 05/12/2024 1,835,000.00 05/10/20210.50%1,832,320.901,833,335.34 95.16 3.14%1,746,129.12 1,123.94 0.65% (87,206.22)A1 / AAAA-1.871.83
91324PEB4 United Health Group Inc Callable Note Cont 5/15/2022
0.550% Due 05/15/2024
1,135,000.00 11/08/2021
0.78%
1,128,485.10
1,130,140.47
95.26
3.17%
1,081,208.95
797.65
0.40%
(48,931.52)
A3 / A+
A
1.88
1.84
14913R2L0 Caterpillar Financial Service Note0.450% Due 05/17/2024 2,910,000.00 05/10/20210.50%2,906,100.602,907,559.32 94.79 3.33%2,758,528.68 1,600.50 1.02% (149,030.64)A2 / AA 1.881.84
89114QCA4 Toronto Dominion Bank Note2.650% Due 06/12/2024 2,000,000.00 04/23/20210.63%2,124,500.002,077,621.72 98.21 3.61%1,964,266.00 2,797.22 0.73% (113,355.72)A1 / AAA-1.951.88
06051GJY6 Bank of America Corp Callable Note Cont 6/14/2023
0.523% Due 06/14/2024
1,000,000.00 06/10/2021
0.52%
1,000,060.00
1,000,028.60
96.54
3.08%
965,440.00
246.97
0.36%
(34,588.60)
A2 / A-
AA-
1.96
1.91
89236TJH9 Toyota Motor Credit Corp Note0.500% Due 06/18/2024 890,000.00 06/15/20210.54%888,940.90889,306.17 94.47 3.43%840,818.60 160.69 0.31% (48,487.57)A1 / A+A+1.971.93
As of June 30, 2022
37
Holdings Report
City of Newport Beach, California -Account #10
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
06367TQW3 Bank of Montreal Note0.625% Due 07/09/2024 2,000,000.00 09/10/20210.65%1,998,380.001,998,836.56 94.14 3.65%1,882,888.00 5,972.22 0.70% (115,948.56)A2 / A-AA-2.031.97
79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/20220.625% Due 07/15/2024 470,000.00 06/29/20210.64%469,760.30469,837.51 94.71 3.33%445,143.58 1,354.51 0.16% (24,693.93)A2 / A+NR 2.041.99
69371RR40 Paccar Financial Corp Note
0.500% Due 08/09/2024
700,000.00 08/05/2021
0.52%
699,555.00
699,687.36
94.15
3.40%
659,082.20
1,380.55
0.24%
(40,605.16)
A1 / A+
NR
2.11
2.06
037833DM9 Apple Inc Callable Note Cont 8/11/20241.800% Due 09/11/2024 1,000,000.00 08/18/20210.58%1,035,810.001,025,432.68 96.98 3.23%969,841.00 5,500.00 0.36% (55,591.68)Aaa / AA+NR 2.202.12
59217GEP0 Metlife Note
0.700% Due 09/27/2024
1,555,000.00 Various
0.85%
1,548,375.40
1,549,787.67
93.46
3.77%
1,453,279.68
2,842.20
0.54%
(96,507.99)
Aa3 / AA-
AA-
2.25
2.18
78015K7C2 Royal Bank of Canada Note2.250% Due 11/01/2024 2,500,000.00 05/19/20210.74%2,628,225.002,586,908.06 96.62 3.78%2,415,405.00 9,375.00 0.90% (171,503.06)A1 / AAA-2.342.24
69371RR57 Paccar Financial Corp Note0.900% Due 11/08/2024 2,120,000.00 11/02/20210.90%2,119,872.802,119,900.07 94.49 3.35%2,003,181.64 2,809.00 0.74% (116,718.43)A1 / A+NR 2.362.29
74153WCQ0 Pricoa Global Funding Note
1.150% Due 12/06/2024
1,655,000.00 12/01/2021
1.19%
1,653,295.35
1,653,614.78
94.02
3.75%
1,555,956.53
1,321.70
0.57%
(97,658.25)
Aa3 / AA-
AA-
2.44
2.36
64952WEK5 New York Life Global Note1.450% Due 01/14/2025 3,255,000.00 01/11/20221.49%3,251,484.603,252,023.46 94.49 3.75%3,075,607.19 21,894.40 1.14% (176,416.27)Aaa / AA+AAA 2.552.44
63743HFC1 National Rural Utilities Note1.875% Due 02/07/2025 1,000,000.00 03/18/20222.76%975,700.00978,030.77 95.63 3.65%956,261.00 7,500.00 0.36% (21,769.77)A2 / A-A 2.612.49
46647PAH9 JP Morgan Chase & Co Callable Note 2X 3/1/2024
3.220% Due 03/01/2025
2,000,000.00 04/23/2021
0.89%
2,130,820.00
2,076,678.90
98.28
4.00%
1,965,638.00
21,466.67
0.73%
(111,040.90)
A2 / A-
AA-
2.67
2.50
57636QAN4 MasterCard Inc Callable Note 1x 02/03/20252.000% Due 03/03/2025 3,000,000.00 10/28/20211.04%3,091,470.003,072,868.54 96.51 3.37%2,895,420.00 19,666.67 1.08% (177,448.54)A1 / A+NR 2.682.56
24422EWB1 John Deere Capital Corp Note2.125% Due 03/07/2025 670,000.00 03/02/20222.14%669,711.90669,742.39 96.60 3.46%647,219.33 4,508.54 0.24% (22,523.06)A2 / AA 2.692.56
59217GEW5 Metlife Note
2.800% Due 03/21/2025
970,000.00 03/14/2022
2.83%
969,136.70
969,217.04
97.37
3.82%
944,494.82
7,544.44
0.35%
(24,722.22)
Aa3 / AA-
AA-
2.73
2.57
87612EBL9 Target Corp Callable Note Cont 4/15/252.250% Due 04/15/2025 3,000,000.00 03/15/20222.53%2,975,610.002,977,908.08 96.62 3.53%2,898,468.00 14,250.00 1.08% (79,440.08)A2 / AA 2.792.66
06406RBC0 Bank of NY Mellon Corp Callable Note Cont 3/25/20253.350% Due 04/25/2025 1,475,000.00 04/19/20223.35%1,474,793.501,474,805.95 98.96 3.74%1,459,648.20 8,921.70 0.54% (15,157.75)A1 / AAA-2.822.65
46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/2024
0.824% Due 06/01/2025
1,000,000.00 05/26/2021
0.75%
1,002,160.00
1,001,381.53
93.53
3.60%
935,277.00
686.67
0.35%
(66,104.53)
A2 / A-
AA-
2.92
2.83
As of June 30, 2022
38
Holdings Report
City of Newport Beach, California -Account #10
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
26442UAA2 Duke Energy Progress LLC Callable Note Cont 5/15/253.250% Due 08/15/2025 2,422,000.00 Various3.25%2,421,770.622,421,762.14 99.33 3.48%2,405,712.05 29,736.78 0.90% (16,050.09)Aa3 / ANR 3.132.91
857477BR3 State Street Bank Callable Note Cont 2/6/20251.746% Due 02/06/2026 900,000.00 02/02/20221.75%900,000.00900,000.00 94.48 3.82%850,347.00 6,285.60 0.32% (49,653.00)A1 / AAA-3.613.40
665859AW4 Northern Trust Company Callable Note Cont 4/10/2027
4.000% Due 05/10/2027
2,000,000.00 06/27/2022
3.99%
2,000,880.00
2,000,879.01
100.75
3.83%
2,014,904.00
11,333.33
0.75%
14,024.99
A2 / A+
A+
4.86
4.29
TOTAL Corporate 65,424,000.00 1.64%65,996,179.8565,771,676.62 3.43%63,503,999.83348,460.31 23.58%(2,267,676.79)A1 / A+AA-2.081.98
Money Market Fund
60934N104 Federated Investors Government Obligations Fund 126,255.77 Various
1.36%
126,255.77
126,255.77
1.00
1.36%
126,255.77
0.00
0.05%
0.00
Aaa / AAA
AAA
0.00
0.00
TOTAL Money Market Fund 126,255.77 1.36%126,255.77126,255.77 1.36%126,255.770.00 0.05%0.00 Aaa / AAAAaa 0.000.00
Municipal Bonds
649791PP9 New York St Taxable-GO
2.010% Due 02/15/2024
2,000,000.00 10/29/2019
2.01%
2,000,000.00
2,000,000.00
98.17
3.18%
1,963,320.00
15,186.67
0.73%
(36,680.00)
Aa1 / AA+
AA+
1.63
1.57
TOTAL Municipal Bonds 2,000,000.00 2.01%2,000,000.002,000,000.00 3.18%1,963,320.0015,186.67 0.73%(36,680.00)Aa1 / AA+AA+1.631.57
Supranational
459058JM6 Intl. Bank Recon & Development Note
0.250% Due 11/24/2023
3,565,000.00 Various
0.28%
3,562,215.25
3,563,712.05
96.44
2.86%
3,438,057.48
916.01
1.27%
(125,654.57)
Aaa / AAA
AAA
1.40
1.38
459058GQ0 Intl. Bank Recon & Development Note2.500% Due 03/19/2024 2,350,000.00 01/26/20210.26%2,514,359.002,439,924.16 99.21 2.98%2,331,317.50 16,645.83 0.87% (108,606.66)Aaa / AAAAAA 1.721.66
4581X0DZ8 Inter-American Dev Bank Note0.500% Due 09/23/2024 3,955,000.00 09/15/20210.52%3,952,073.303,952,823.67 94.58 3.03%3,740,480.80 5,383.19 1.38% (212,342.87)Aaa / AAANR 2.242.18
45950KCR9 International Finance Corp Note
1.375% Due 10/16/2024
2,500,000.00 07/12/2021
0.54%
2,567,250.00
2,547,357.56
96.33
3.04%
2,408,320.00
7,161.46
0.89%
(139,037.56)
Aaa / AAA
NR
2.30
2.23
TOTAL Supranational 12,370,000.00 0.41%12,595,897.5512,503,817.44 2.97%11,918,175.7830,106.49 4.41%(585,641.66)Aaa / AAAAaa 1.911.86
As of June 30, 2022
39
Holdings Report
City of Newport Beach, California -Account #10
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
US Treasury
912828YA2 US Treasury Note1.500% Due 08/15/2022 2,300,000.00 12/24/20191.69%2,288,949.222,299,483.61 100.01 1.44%2,300,144.90 12,961.33 0.85% 661.29 Aaa / AA+AAA 0.130.13
912828R28 US Treasury Note1.625% Due 04/30/2023 4,000,000.00 12/04/20191.60%4,003,593.754,000,876.74 98.98 2.87%3,959,220.00 10,951.09 1.47% (41,656.74)Aaa / AA+AAA 0.830.82
912828R69 US Treasury Note
1.625% Due 05/31/2023
2,400,000.00 04/11/2019
2.30%
2,336,250.00
2,385,870.94
98.85
2.91%
2,372,344.80
3,303.28
0.88%
(13,526.14)
Aaa / AA+
AAA
0.92
0.90
91282CBA8 US Treasury Note0.125% Due 12/15/2023 2,300,000.00 01/08/20210.22%2,293,441.412,296,732.99 96.02 2.93%2,208,448.50 125.68 0.82% (88,284.49)Aaa / AA+AAA 1.461.44
91282CBE0 US Treasury Note
0.125% Due 01/15/2024
4,000,000.00 01/12/2021
0.24%
3,985,781.25
3,992,689.36
95.80
2.93%
3,832,032.00
2,306.63
1.42%
(160,657.36)
Aaa / AA+
AAA
1.55
1.52
91282CBV2 US Treasury Note0.375% Due 04/15/2024 5,000,000.00 04/23/20210.32%5,008,398.445,005,062.29 95.54 2.95%4,776,955.00 3,944.67 1.77% (228,107.29)Aaa / AA+AAA 1.791.76
91282CCC3 US Treasury Note0.250% Due 05/15/2024 3,000,000.00 05/26/20210.30%2,995,312.502,997,042.20 95.12 2.94%2,853,633.00 957.88 1.05% (143,409.20)Aaa / AA+AAA 1.881.84
91282CCL3 US Treasury Note
0.375% Due 07/15/2024
3,500,000.00 07/13/2021
0.46%
3,490,703.13
3,493,680.50
94.94
2.95%
3,322,812.50
6,054.90
1.23%
(170,868.00)
Aaa / AA+
AAA
2.04
2.00
912828YE4 US Treasury Note1.250% Due 08/31/2024 4,000,000.00 02/24/20210.33%4,128,125.004,079,091.97 96.43 2.96%3,857,032.00 16,711.96 1.43% (222,059.97)Aaa / AA+AAA 2.172.11
91282CCX7 US Treasury Note0.375% Due 09/15/2024 5,000,000.00 09/08/20210.44%4,990,234.384,992,809.44 94.47 2.98%4,723,440.00 5,502.72 1.75% (269,369.44)Aaa / AA+AAA 2.212.17
91282CDB4 US Treasury Note
0.625% Due 10/15/2024
1,800,000.00 12/29/2021
0.94%
1,784,460.94
1,787,248.83
94.82
2.98%
1,706,835.60
2,366.80
0.63%
(80,413.23)
Aaa / AA+
AAA
2.30
2.24
912828YM6 US Treasury Note1.500% Due 10/31/2024 4,500,000.00 08/05/20210.42%4,655,917.974,612,519.48 96.70 2.98%4,351,288.50 11,372.28 1.61% (261,230.98)Aaa / AA+AAA 2.342.26
91282CDH1 US Treasury Note0.750% Due 11/15/2024 5,000,000.00 11/17/20210.85%4,985,156.254,988,211.92 94.90 2.99%4,744,920.00 4,789.40 1.75% (243,291.92)Aaa / AA+AAA 2.382.32
912828Z52 US Treasury Note
1.375% Due 01/31/2025
3,000,000.00 02/16/2021
0.37%
3,117,656.25
3,076,998.03
96.00
2.99%
2,880,000.00
17,206.49
1.07%
(196,998.03)
Aaa / AA+
AAA
2.59
2.50
912828ZC7 US Treasury Note1.125% Due 02/28/2025 2,700,000.00 01/26/20221.42%2,676,058.592,679,348.41 95.27 2.98%2,572,381.80 10,152.51 0.95% (106,966.61)Aaa / AA+AAA 2.672.59
912828ZF0 US Treasury Note0.500% Due 03/31/2025 2,900,000.00 03/17/20210.64%2,884,140.632,889,197.55 93.43 3.01%2,709,348.20 3,644.81 1.00% (179,849.35)Aaa / AA+AAA 2.752.69
912828ZL7 US Treasury Note
0.375% Due 04/30/2025
5,000,000.00 Various
0.50%
4,974,296.88
4,981,965.29
92.91
3.00%
4,645,310.00
3,158.97
1.72%
(336,655.29)
Aaa / AA+
AAA
2.84
2.78
As of June 30, 2022
40
Holdings Report
City of Newport Beach, California -Account #10
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
912828ZT0 US Treasury Note0.250% Due 05/31/2025 5,000,000.00 10/05/20210.70%4,919,335.944,935,553.47 92.38 3.00%4,618,945.00 1,058.74 1.71% (316,608.47)Aaa / AA+AAA 2.922.87
912828K74 US Treasury Note2.000% Due 08/15/2025 2,300,000.00 04/05/20222.77%2,243,218.752,247,198.53 96.99 3.02%2,230,730.90 17,281.77 0.83% (16,467.63)Aaa / AA+AAA 3.132.98
9128285C0 US Treasury Note
3.000% Due 09/30/2025
5,000,000.00 05/05/2022
2.99%
5,001,953.13
5,001,865.14
99.96
3.01%
4,998,240.00
37,704.92
1.86%
(3,625.14)
Aaa / AA+
AAA
3.25
3.05
91282CEF4 US Treasury Note2.500% Due 03/31/2027 5,000,000.00 06/06/20223.02%4,883,203.134,884,797.63 97.71 3.02%4,885,545.00 31,420.77 1.82% 747.37 Aaa / AA+AAA 4.754.41
91282CEN7 US Treasury Note
2.750% Due 04/30/2027
5,000,000.00 06/02/2022
2.92%
4,959,960.94
4,960,586.55
98.80
3.01%
4,939,845.00
23,165.76
1.83%
(20,741.55)
Aaa / AA+
AAA
4.84
4.48
TOTAL US Treasury 82,700,000.00 1.16%
82,606,148.48
82,588,830.87 2.93%
79,489,452.70
226,143.36
29.43%
(3,099,378.17)
Aaa / AA+
Aaa
2.50
2.40
TOTAL PORTFOLIO 278,155,098.13 1.30%
279,284,439.89
278,738,184.63 3.10%
269,933,126.24
900,315.20
100.00%
(8,805,058.39)
Aa1 / AA
Aaa
2.08
1.84
TOTAL MARKET VALUE PLUS ACCRUALS 270,833,441.44
As of June 30, 2022
41
Holdings Report
City of Newport Beach, California -Short Term -Account #12
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
Commercial Paper
78015DG61 Royal Bank of Canada NY Discount CP0.330% Due 07/06/2022 1,800,000.00 12/22/20210.34%1,796,782.501,796,782.50 99.82 0.34%1,796,782.50 3,135.00 6.22% 0.00 P-1 / A-1+NR 0.020.02
62479MH48 MUFG Bank Ltd/NY Discount CP0.340% Due 08/04/2022 5,000,000.00 12/22/20210.35%4,989,375.004,989,375.00 99.79 0.35%4,989,375.00 9,019.44 17.28% 0.00 P-1 / A-1NR 0.100.10
89233HJW5 Toyota Motor Credit Discount CP
0.690% Due 09/30/2022
1,900,000.00 01/28/2022
0.70%
1,891,077.92
1,891,077.92
99.53
0.70%
1,891,077.92
5,608.16
6.56%
0.00
P-1 / A-1+
F-1
0.25
0.25
TOTAL Commercial Paper 8,700,000.00 0.42%8,677,235.428,677,235.42 0.42%8,677,235.4217,762.60 30.06%0.00 P-1 / A-1F-1 0.110.11
Money Market Fund
38141W323 Goldman Sachs Financial Square Treasury Obligation
Fund
159.88 Various
1.37%
159.88
159.88
1.00
1.37%
159.88
0.00
0.00%
0.00
Aaa / AAA
NR
0.00
0.00
TOTAL Money Market Fund 159.88 1.37%
159.88
159.88 1.37%
159.88
0.00
0.00%
0.00
Aaa / AAA
NR
0.00
0.00
Negotiable CD
89114WNP6 Toronto Dominion Yankee CD0.350% Due 08/29/2022 2,200,000.00 12/23/20210.35%2,200,000.002,200,000.00 99.74 1.89%2,194,357.00 4,063.89 7.60% (5,643.00)P-1 / A-1+F-1+0.160.16
TOTAL Negotiable CD 2,200,000.00 0.35%
2,200,000.00
2,200,000.00 1.89%
2,194,357.00
4,063.89
7.60%
(5,643.00)
Aaa / AAA
Aaa
0.16
0.16
US Treasury
91282CAG6 US Treasury Note0.125% Due 08/31/2022 5,000,000.00 04/27/20221.09%4,983,593.754,991,993.75 99.76 1.55%4,988,060.00 2,088.99 17.25% (3,933.75)Aaa / AA+AAA 0.170.17
912828YF1 US Treasury Note1.500% Due 09/15/2022 3,000,000.00 01/27/20220.49%3,018,984.383,006,273.10 99.97 1.66%2,998,962.00 13,206.52 10.41% (7,311.10)Aaa / AA+AAA 0.210.21
912828L57 US Treasury Note
1.750% Due 09/30/2022
5,000,000.00 04/05/2022
1.12%
5,015,039.06
5,007,731.95
99.98
1.81%
4,999,210.00
21,994.54
17.36%
(8,521.95)
Aaa / AA+
AAA
0.25
0.25
912828M49 US Treasury Note1.875% Due 10/31/2022 5,000,000.00 03/02/20220.82%5,034,765.635,017,526.47 99.92 2.12%4,995,760.00 15,794.84 17.32% (21,766.47)Aaa / AA+AAA 0.340.33
TOTAL US Treasury 18,000,000.00 0.92%
18,052,382.82
18,023,525.27 1.80%
17,981,992.00
53,084.89
62.34%
(41,533.27)
Aaa / AA+
Aaa
0.25
0.24
TOTAL PORTFOLIO 28,900,159.88 0.73%28,929,778.1228,900,920.57 1.39%28,853,744.3074,911.38 100.00%(47,176.27)Aaa / AA+Aaa 0.200.20
TOTAL MARKET VALUE PLUS ACCRUALS 28,928,655.68
As of June 30, 2022
42
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
ABS
43815NAC8 Honda Auto Receivables Trust 2019-3 A31.780% Due 08/15/2023 316,118.87 08/20/20191.79%316,116.24316,118.69 99.90 2.37%315,809.71 250.09 0.11% (308.98)Aaa / AAANR 1.130.17
477870AC3 John Deere Owner Trust 2019-B A32.210% Due 12/15/2023 104,342.37 07/16/20192.23%104,320.23104,335.03 99.95 2.44%104,294.89 102.49 0.03% (40.14)Aaa / NRAAA 1.460.21
43813RAC1 Honda Auto Receivables 2020-1 A3
1.610% Due 04/22/2024
906,316.19 02/19/2020
1.62%
906,138.56
906,238.79
99.37
3.08%
900,634.49
405.32
0.30%
(5,604.30)
Aaa / NR
AAA
1.81
0.43
89238EAC0 Toyota Lease Owner Trust 2021-A A30.390% Due 04/22/2024 1,235,000.00 04/13/20210.40%1,234,855.881,234,927.12 97.83 3.35%1,208,227.67 147.17 0.40% (26,699.45)Aaa / AAANR 1.810.73
44891VAC5 Hyundai Auto Lease Trust 2021-B A3
0.330% Due 06/17/2024
1,435,000.00 06/08/2021
0.34%
1,434,784.75
1,434,884.38
97.40
3.49%
1,397,717.27
210.47
0.47%
(37,167.11)
Aaa / AAA
NR
1.97
0.83
65479JAD5 Nissan Auto Receivables Owner 2019-C A31.930% Due 07/15/2024 575,041.71 10/16/20191.94%575,011.35575,028.61 99.70 2.98%573,325.21 493.26 0.19% (1,703.40)Aaa / AAANR 2.040.29
47789KAC7 John Deere Owner Trust 2020-A A31.100% Due 08/15/2024 648,023.22 03/04/20201.11%647,983.64648,004.24 98.99 3.46%641,466.52 316.81 0.21% (6,537.72)Aaa / NRAAA 2.130.43
89239CAC3 Toyota Lease Owner Trust 2021-B A3
0.420% Due 10/21/2024
1,125,000.00 07/27/2021
0.42%
1,124,984.81
1,124,990.42
96.35
3.69%
1,083,984.75
144.38
0.36%
(41,005.67)
Aaa / NR
AAA
2.31
1.13
36262XAC8 GM Financial Auto Lease Trust 2021-3 A20.390% Due 10/21/2024 1,690,000.00 08/10/20210.39%1,689,977.021,689,985.25 96.79 3.43%1,635,725.65 201.39 0.55% (54,259.60)NR / AAAAAA 2.311.07
58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A30.400% Due 11/15/2024 1,145,000.00 06/22/20210.40%1,144,913.551,144,947.67 96.81 3.55%1,108,500.84 203.56 0.37% (36,446.83)NR / AAAAAA 2.381.02
09690AAC7 BMW Vehicle Lease Trust 2021-2 A3
0.330% Due 12/26/2024
765,000.00 09/08/2021
0.34%
764,921.05
764,948.51
97.07
3.49%
742,580.15
42.08
0.25%
(22,368.36)
Aaa / NR
AAA
2.49
0.93
44891WAC3 Hyundai Auto Lease Trust 2022-A A31.160% Due 01/15/2025 1,050,000.00 01/11/20221.16%1,049,976.801,049,981.43 96.61 3.66%1,014,367.20 541.33 0.34% (35,614.23)Aaa / AAANR 2.551.37
36265MAC9 GM Financial Auto Lease Trust 2022-1 A31.900% Due 03/20/2025 1,835,000.00 02/15/20221.91%1,834,984.221,834,986.79 97.35 3.70%1,786,304.61 1,065.32 0.60% (48,682.18)Aaa / NRAAA 2.721.50
05601XAC3 BMW Vehicle Lease Trust 2022-1 A3
1.100% Due 03/25/2025
870,000.00 01/11/2022
1.11%
869,869.94
869,896.57
96.55
3.84%
839,980.65
159.50
0.28%
(29,915.92)
NR / AAA
AAA
2.74
1.27
47788UAC6 John Deere Owner Trust 2021-A A30.360% Due 09/15/2025 765,000.00 03/02/20210.37%764,852.97764,906.42 96.15 3.93%735,553.62 122.40 0.25% (29,352.80)Aaa / NRAAA 3.211.08
44933LAC7 Hyundai Auto Receivables Trust 2021-A A30.380% Due 09/15/2025 925,000.00 04/20/20210.38%924,902.69924,940.20 96.59 3.80%893,450.10 156.22 0.30% (31,490.10)NR / AAAAAA 3.211.00
44934KAC8 Hyundai Auto Receivables Trust 2021-B A3
0.380% Due 01/15/2026
2,130,000.00 07/20/2021
0.39%
2,129,529.91
2,129,668.68
96.00
3.62%
2,044,802.13
359.73
0.68%
(84,866.55)
NR / AAA
AAA
3.55
1.25
As of June 30, 2022
43
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
43815GAC3 Honda Auto Receivables Trust 2021-4 A30.880% Due 01/21/2026 860,000.00 11/16/20210.89%859,818.71859,852.21 95.37 3.78%820,210.38 210.22 0.27% (39,641.83)Aaa / NRAAA 3.561.62
47789QAC4 John Deere Owner Trust 2021-B A30.520% Due 03/16/2026 1,000,000.00 07/13/20210.52%999,910.80999,933.89 94.89 3.90%948,933.00 231.11 0.32% (51,000.89)Aaa / NRAAA 3.711.53
89238JAC9 Toyota Auto Receivables Trust 2021-D A3
0.710% Due 04/15/2026
800,000.00 11/09/2021
0.71%
799,982.96
799,986.23
95.28
3.79%
762,258.40
252.44
0.25%
(37,727.83)
NR / AAA
AAA
3.79
1.56
44935FAD6 Hyundai Auto Receivables Trust 2021-C A30.740% Due 05/15/2026 615,000.00 11/09/20210.75%614,862.73614,889.59 95.56 3.57%587,664.48 202.27 0.20% (27,225.11)NR / AAAAAA 3.881.59
05602RAD3 BMW Vehicle Owner Trust 2022-A A3
3.210% Due 08/25/2026
960,000.00 05/10/2022
3.23%
959,950.08
959,952.02
98.96
4.46%
950,001.60
513.60
0.32%
(9,950.42)
Aaa / AAA
NR
4.16
0.85
362554AC1 GM Financial Securitized Term 2021-4 A30.680% Due 09/16/2026 640,000.00 10/13/20210.68%639,983.68639,987.00 94.95 4.17%607,649.28 181.33 0.20% (32,337.72)Aaa / AAANR 4.221.47
47787JAC2 John Deere Owner Trust 2022-A A32.320% Due 09/16/2026 1,110,000.00 03/10/20222.34%1,109,754.471,109,775.01 97.45 3.74%1,081,727.19 1,144.53 0.36% (28,047.82)Aaa / NRAAA 4.221.82
380146AC4 GM Financial Auto Receivables 2022-1 A3
1.260% Due 11/16/2026
575,000.00 01/11/2022
1.27%
574,950.03
574,956.74
95.68
4.09%
550,142.75
301.88
0.18%
(24,813.99)
NR / AAA
AAA
4.38
1.55
02582JJT8 American Express Credit Trust 2022-2 A3.390% Due 05/17/2027 2,485,000.00 05/17/20223.42%2,484,450.322,484,469.54 99.89 3.46%2,482,144.74 3,744.07 0.83% (2,324.80)NR / AAAAAA 4.882.68
TOTAL ABS 26,564,842.36 1.20%26,561,787.3926,562,591.03 3.62%25,817,457.2811,702.97 8.62%(745,133.75)Aaa / AAAAaa 3.091.29
Agency
313383WD9 FHLB Note3.125% Due 09/09/2022 3,750,000.00 09/25/20183.01%3,765,750.003,750,763.50 100.25 1.80%3,759,363.75 36,458.33 1.27% 8,600.25 Aaa / AA+AAA 0.190.19
3133EKHN9 FFCB Note2.330% Due 10/18/2022 2,500,000.00 05/02/20192.37%2,496,400.002,499,689.56 100.07 2.07%2,501,872.50 11,811.81 0.84% 2,182.94 Aaa / AA+AAA 0.300.30
3135G0T94 FNMA Note
2.375% Due 01/19/2023
1,600,000.00 10/04/2018
3.10%
1,554,000.00
1,594,070.20
99.94
2.48%
1,599,072.00
17,100.00
0.54%
5,001.80
Aaa / AA+
AAA
0.56
0.54
3133EKUA2 FFCB Note1.850% Due 02/01/2023 4,000,000.00 07/23/20191.87%3,997,160.003,999,525.93 99.57 2.60%3,982,700.00 30,833.33 1.34% (16,825.93)Aaa / AA+AAA 0.590.57
3133ELNW0 FFCB Note1.450% Due 02/21/2023 2,290,000.00 02/19/20201.45%2,290,274.802,290,058.92 99.29 2.57%2,273,711.23 11,990.69 0.76% (16,347.69)Aaa / AA+AAA 0.650.63
3135G04Q3 FNMA Note
0.250% Due 05/22/2023
4,000,000.00 08/11/2020
0.25%
3,999,920.00
3,999,974.33
97.72
2.84%
3,908,996.00
1,083.33
1.30%
(90,978.33)
Aaa / AA+
AAA
0.89
0.88
3133834G3 FHLB Note2.125% Due 06/09/2023 3,900,000.00 Various2.13%3,899,157.003,899,837.12 99.18 3.01%3,868,207.20 5,064.58 1.29% (31,629.92)Aaa / AA+NR 0.940.92
As of June 30, 2022
44
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
3133EKSN7 FFCB Note1.770% Due 06/26/2023 4,000,000.00 06/21/20191.89%3,981,400.003,995,416.84 98.81 3.00%3,952,520.00 983.33 1.32% (42,896.84)Aaa / AA+AAA 0.990.97
3135G05G4 FNMA Note0.250% Due 07/10/2023 4,000,000.00 09/28/20200.23%4,001,920.004,000,708.86 97.35 2.88%3,894,076.00 4,750.00 1.30% (106,632.86)Aaa / AA+AAA 1.031.01
3133EKZK5 FFCB Note
1.600% Due 08/14/2023
2,000,000.00 08/09/2019
1.63%
1,997,420.00
1,999,277.74
98.53
2.94%
1,970,606.00
12,177.78
0.66%
(28,671.74)
Aaa / AA+
AAA
1.12
1.09
3133EL3V4 FFCB Note0.200% Due 08/14/2023 4,000,000.00 08/12/20200.27%3,991,680.003,996,880.95 97.05 2.89%3,881,816.00 3,044.44 1.30% (115,064.95)Aaa / AA+AAA 1.121.10
3137EAEV7 FHLMC Note
0.250% Due 08/24/2023
4,000,000.00 09/23/2020
0.24%
4,000,960.00
4,000,378.05
97.03
2.90%
3,881,120.00
3,527.78
1.30%
(119,258.05)
Aaa / AA+
AAA
1.15
1.13
313383YJ4 FHLB Note3.375% Due 09/08/2023 1,600,000.00 04/05/20192.37%1,666,896.001,617,988.14 100.51 2.93%1,608,187.20 16,950.00 0.54% (9,800.94)Aaa / AA+NR 1.191.15
3137EAEY1 FHLMC Note0.125% Due 10/16/2023 5,180,000.00 Various0.25%5,160,792.605,171,709.63 96.51 2.89%4,999,181.74 1,348.96 1.67% (172,527.89)Aaa / AA+AAA 1.301.28
3137EAEZ8 FHLMC Note
0.250% Due 11/06/2023
4,275,000.00 11/03/2020
0.28%
4,271,152.50
4,273,269.33
96.52
2.90%
4,126,200.08
1,632.81
1.38%
(147,069.25)
Aaa / AA+
AAA
1.35
1.33
3135G06H1 FNMA Note0.250% Due 11/27/2023 3,775,000.00 11/23/20200.29%3,770,696.503,772,983.59 96.41 2.87%3,639,549.23 891.32 1.21% (133,434.36)Aaa / AA+AAA 1.411.39
3137EAFA2 FHLMC Note0.250% Due 12/04/2023 3,050,000.00 12/02/20200.28%3,046,980.503,048,563.32 96.30 2.92%2,937,015.80 571.88 0.98% (111,547.52)Aaa / AA+AAA 1.431.41
3130A0F70 FHLB Note
3.375% Due 12/08/2023
4,000,000.00 12/21/2018
2.84%
4,098,680.00
4,028,622.65
100.57
2.97%
4,022,712.00
8,625.00
1.34%
(5,910.65)
Aaa / AA+
AAA
1.44
1.39
3133EKMX1 FFCB Note2.230% Due 02/23/2024 2,000,000.00 07/30/20191.91%2,027,800.002,010,033.33 98.84 2.96%1,976,786.00 15,857.78 0.66% (33,247.33)Aaa / AA+AAA 1.651.59
3130A7PH2 FHLB Note1.875% Due 03/08/2024 4,000,000.00 03/03/20200.85%4,161,400.004,067,865.12 98.22 2.97%3,928,604.00 23,541.67 1.32% (139,261.12)Aaa / AA+NR 1.691.64
3130AQF40 FHLB Note
1.000% Due 12/20/2024
2,250,000.00 12/21/2021
1.03%
2,248,020.00
2,248,365.69
95.06
3.09%
2,138,960.25
687.50
0.71%
(109,405.44)
Aaa / AA+
AAA
2.48
2.41
3133ENKS8 FFCB Note1.125% Due 01/06/2025 2,000,000.00 01/06/20221.20%1,995,500.001,996,205.32 95.54 2.98%1,910,830.00 10,625.00 0.64% (85,375.32)Aaa / AA+AAA 2.522.44
3133ENPY0 FFCB Note1.750% Due 02/25/2025 4,000,000.00 03/03/20221.76%3,999,280.003,999,358.68 97.18 2.86%3,887,348.00 24,500.00 1.30% (112,010.68)Aaa / AA+AAA 2.662.55
As of June 30, 2022
45
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
3135G05X7 FNMA Note0.375% Due 08/25/2025 3,500,000.00 12/02/20211.15%3,401,720.003,416,884.44 91.94 3.08%3,217,802.00 4,593.75 1.07% (199,082.44)Aaa / AA+AAA 3.163.08
TOTAL Agency 79,670,000.00 1.24%79,824,959.9079,678,431.24 2.81%77,867,236.98248,651.07 26.06%(1,811,194.26)Aaa / AA+Aaa 1.311.28
CMO
3137B7YY9 FHLMC K037 A23.490% Due 01/25/2024 1,600,000.00 11/05/20210.58%1,687,062.501,661,817.61 100.22 3.17%1,603,580.80 4,653.33 0.54% (58,236.81)NR / AAANR 1.571.31
3137BFE98 FHLMC K041 A23.171% Due 10/25/2024 700,000.00 04/21/20222.96%702,242.19702,075.73 99.53 3.32%696,719.10 1,849.75 0.23% (5,356.63)Aaa / AAAAAA 2.322.11
3137BFXT3 FHLMC K042 A2
2.670% Due 12/25/2024
2,500,000.00 08/19/2021
0.62%
2,653,906.25
2,613,756.79
98.27
3.39%
2,456,652.50
1,112.50
0.82%
(157,104.29)
Aaa / NR
NR
2.49
2.24
3137BKRJ1 FHLMC K047 A23.329% Due 05/25/2025 2,500,000.00 05/19/20223.05%2,514,453.132,513,941.28 99.73 3.37%2,493,137.50 6,935.42 0.83% (20,803.78)NR / NRAAA 2.902.61
3137BM7C4 FHLMC K051 A23.308% Due 09/25/2025 2,000,000.00 05/16/20222.96%2,015,546.882,014,990.25 99.86 3.30%1,997,138.00 5,513.33 0.67% (17,852.25)NR / NRAAA 3.242.89
TOTAL CMO 9,300,000.00 1.92%
9,573,210.95
9,506,581.66 3.32%
9,247,227.90
20,064.33
3.09%
(259,353.76)
Aaa / AAA
Aaa
2.59
2.31
Commercial Paper
78015DG61 Royal Bank of Canada NY Discount CP0.330% Due 07/06/2022 1,800,000.00 12/22/20210.34%1,796,782.501,796,782.50 99.82 0.34%1,796,782.50 3,135.00 0.60% 0.00 P-1 / A-1+NR 0.020.02
62479MH48 MUFG Bank Ltd/NY Discount CP
0.340% Due 08/04/2022
5,000,000.00 12/22/2021
0.35%
4,989,375.00
4,989,375.00
99.79
0.35%
4,989,375.00
9,019.44
1.67%
0.00
P-1 / A-1
NR
0.10
0.10
89233HJW5 Toyota Motor Credit Discount CP0.690% Due 09/30/2022 1,900,000.00 01/28/20220.70%1,891,077.921,891,077.92 99.53 0.70%1,891,077.92 5,608.16 0.63% 0.00 P-1 / A-1+F-1 0.250.25
TOTAL Commercial Paper 8,700,000.00 0.42%
8,677,235.42
8,677,235.42 0.42%
8,677,235.42
17,762.60
2.90%
0.00
P-1 / A-1
F-1
0.11
0.11
Corporate
92826CAC6 Visa Inc Callable Note Cont 10/14/20222.800% Due 12/14/2022 1,000,000.00 12/20/20183.28%982,250.00997,969.33 100.09 2.50%1,000,878.00 1,322.22 0.33% 2,908.67 Aa3 / AA-NR 0.460.29
24422EUA5 John Deere Capital Corp Note2.700% Due 01/06/2023 1,500,000.00 07/24/20183.38%1,458,270.001,495,146.48 99.95 2.79%1,499,274.00 19,687.50 0.51% 4,127.52 A2 / AA 0.520.50
As of June 30, 2022
46
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
89236TEL5 Toyota Motor Credit Corp Note2.700% Due 01/11/2023 1,000,000.00 09/07/20183.33%974,710.00996,900.66 99.69 3.29%996,923.00 12,750.00 0.34% 22.34 A1 / A+A+0.530.52
69371RQ41 Paccar Financial Corp Note1.900% Due 02/07/2023 1,000,000.00 10/31/20191.90%999,950.00999,990.70 99.18 3.29%991,770.00 7,600.00 0.33% (8,220.70)A1 / A+NR 0.610.59
084670BR8 Berkshire Hathaway Callable Note Cont 1/15/2023
2.750% Due 03/15/2023
1,000,000.00 12/20/2018
3.40%
974,780.00
995,796.67
99.99
2.73%
999,947.00
8,097.22
0.34%
4,150.33
Aa2 / AA
A+
0.71
0.65
037833AK6 Apple Inc Note2.400% Due 05/03/2023 1,000,000.00 04/11/20192.70%988,520.00997,624.83 99.53 2.97%995,304.00 3,866.67 0.33% (2,320.83)Aaa / AA+NR 0.840.82
57629WCU2 Mass Mutual Global funding Note
0.850% Due 06/09/2023
2,000,000.00 12/15/2021
0.73%
2,003,660.00
2,002,329.09
97.71
3.34%
1,954,266.00
1,038.89
0.65%
(48,063.09)
Aa3 / AA+
AA+
0.94
0.92
931142EK5 Wal-Mart Stores Callable Note Cont 5/26/20233.400% Due 06/26/2023 2,000,000.00 04/29/20192.67%2,055,840.002,012,354.65 100.31 3.06%2,006,110.00 944.44 0.67% (6,244.65)Aa2 / AAAA 0.990.89
06406FAD5 Bank of NY Mellon Corp Callable Note Cont 6/16/20232.200% Due 08/16/2023 1,000,000.00 03/27/20192.78%976,220.00993,895.33 98.99 3.11%989,927.00 8,250.00 0.33% (3,968.33)A1 / AAA-1.131.09
89236TFS9 Toyota Motor Credit Corp Note
3.350% Due 01/08/2024
1,000,000.00 06/14/2019
2.41%
1,040,490.00
1,013,520.98
100.17
3.24%
1,001,652.00
16,098.61
0.34%
(11,868.98)
A1 / A+
A+
1.53
1.45
02665WCT6 American Honda Finance Note3.550% Due 01/12/2024 500,000.00 01/13/20202.06%528,405.00510,910.01 100.20 3.41%501,023.00 8,332.64 0.17% (9,887.01)A3 / A-A 1.541.46
24422EVN6 John Deere Capital Corp Note0.450% Due 01/17/2024 1,850,000.00 03/01/20210.47%1,848,686.501,849,292.54 95.94 3.16%1,774,893.70 3,792.50 0.59% (74,398.84)A2 / AA 1.551.52
91159HHV5 US Bancorp Callable Note Cont 1/5/2024
3.375% Due 02/05/2024
2,000,000.00 Various
2.63%
2,064,710.00
2,021,138.16
99.84
3.48%
1,996,870.00
27,375.00
0.68%
(24,268.16)
A2 / A+
A+
1.60
1.52
637432NL5 National Rural Utilities Callable Note Cont 12/7/20232.950% Due 02/07/2024 1,317,000.00 04/06/20222.77%1,320,871.981,320,337.04 99.03 3.58%1,304,184.27 15,540.60 0.44% (16,152.77)A1 / A-A+1.611.53
06051GHF9 Bank of America Corp Callable Note 1X 3/5/20233.550% Due 03/05/2024 1,565,000.00 04/26/20210.64%1,648,852.701,595,638.49 99.71 3.55%1,560,427.07 17,901.86 0.53% (35,211.42)A2 / A-AA-1.681.60
808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024
0.750% Due 03/18/2024
2,230,000.00 Various
0.71%
2,232,745.00
2,231,537.54
95.98
3.17%
2,140,385.22
4,785.21
0.72%
(91,152.32)
A2 / A
A
1.72
1.68
023135BW5 Amazon.com Inc Note0.450% Due 05/12/2024 1,835,000.00 05/10/20210.50%1,832,320.901,833,335.34 95.16 3.14%1,746,129.12 1,123.94 0.58% (87,206.22)A1 / AAAA-1.871.83
91324PEB4 United Health Group Inc Callable Note Cont 5/15/20220.550% Due 05/15/2024 1,135,000.00 11/08/20210.78%1,128,485.101,130,140.47 95.26 3.17%1,081,208.95 797.65 0.36% (48,931.52)A3 / A+A 1.881.84
As of June 30, 2022
47
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
14913R2L0 Caterpillar Financial Service Note0.450% Due 05/17/2024 2,910,000.00 05/10/20210.50%2,906,100.602,907,559.32 94.79 3.33%2,758,528.68 1,600.50 0.92% (149,030.64)A2 / AA 1.881.84
89114QCA4 Toronto Dominion Bank Note2.650% Due 06/12/2024 2,000,000.00 04/23/20210.63%2,124,500.002,077,621.72 98.21 3.61%1,964,266.00 2,797.22 0.66% (113,355.72)A1 / AAA-1.951.88
06051GJY6 Bank of America Corp Callable Note Cont 6/14/2023
0.523% Due 06/14/2024
1,000,000.00 06/10/2021
0.52%
1,000,060.00
1,000,028.60
96.54
3.08%
965,440.00
246.97
0.32%
(34,588.60)
A2 / A-
AA-
1.96
1.91
89236TJH9 Toyota Motor Credit Corp Note0.500% Due 06/18/2024 890,000.00 06/15/20210.54%888,940.90889,306.17 94.47 3.43%840,818.60 160.69 0.28% (48,487.57)A1 / A+A+1.971.93
06367TQW3 Bank of Montreal Note
0.625% Due 07/09/2024
2,000,000.00 09/10/2021
0.65%
1,998,380.00
1,998,836.56
94.14
3.65%
1,882,888.00
5,972.22
0.63%
(115,948.56)
A2 / A-
AA-
2.03
1.97
79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/20220.625% Due 07/15/2024 470,000.00 06/29/20210.64%469,760.30469,837.51 94.71 3.33%445,143.58 1,354.51 0.15% (24,693.93)A2 / A+NR 2.041.99
69371RR40 Paccar Financial Corp Note0.500% Due 08/09/2024 700,000.00 08/05/20210.52%699,555.00699,687.36 94.15 3.40%659,082.20 1,380.55 0.22% (40,605.16)A1 / A+NR 2.112.06
037833DM9 Apple Inc Callable Note Cont 8/11/2024
1.800% Due 09/11/2024
1,000,000.00 08/18/2021
0.58%
1,035,810.00
1,025,432.68
96.98
3.23%
969,841.00
5,500.00
0.33%
(55,591.68)
Aaa / AA+
NR
2.20
2.12
59217GEP0 Metlife Note0.700% Due 09/27/2024 1,555,000.00 Various0.85%1,548,375.401,549,787.67 93.46 3.77%1,453,279.68 2,842.20 0.49% (96,507.99)Aa3 / AA-AA-2.252.18
78015K7C2 Royal Bank of Canada Note2.250% Due 11/01/2024 2,500,000.00 05/19/20210.74%2,628,225.002,586,908.06 96.62 3.78%2,415,405.00 9,375.00 0.81% (171,503.06)A1 / AAA-2.342.24
69371RR57 Paccar Financial Corp Note
0.900% Due 11/08/2024
2,120,000.00 11/02/2021
0.90%
2,119,872.80
2,119,900.07
94.49
3.35%
2,003,181.64
2,809.00
0.67%
(116,718.43)
A1 / A+
NR
2.36
2.29
74153WCQ0 Pricoa Global Funding Note1.150% Due 12/06/2024 1,655,000.00 12/01/20211.19%1,653,295.351,653,614.78 94.02 3.75%1,555,956.53 1,321.70 0.52% (97,658.25)Aa3 / AA-AA-2.442.36
64952WEK5 New York Life Global Note1.450% Due 01/14/2025 3,255,000.00 01/11/20221.49%3,251,484.603,252,023.46 94.49 3.75%3,075,607.19 21,894.40 1.03% (176,416.27)Aaa / AA+AAA 2.552.44
63743HFC1 National Rural Utilities Note
1.875% Due 02/07/2025
1,000,000.00 03/18/2022
2.76%
975,700.00
978,030.77
95.63
3.65%
956,261.00
7,500.00
0.32%
(21,769.77)
A2 / A-
A
2.61
2.49
46647PAH9 JP Morgan Chase & Co Callable Note 2X 3/1/20243.220% Due 03/01/2025 2,000,000.00 04/23/20210.89%2,130,820.002,076,678.90 98.28 4.00%1,965,638.00 21,466.67 0.66% (111,040.90)A2 / A-AA-2.672.50
57636QAN4 MasterCard Inc Callable Note 1x 02/03/20252.000% Due 03/03/2025 3,000,000.00 10/28/20211.04%3,091,470.003,072,868.54 96.51 3.37%2,895,420.00 19,666.67 0.97% (177,448.54)A1 / A+NR 2.682.56
24422EWB1 John Deere Capital Corp Note
2.125% Due 03/07/2025
670,000.00 03/02/2022
2.14%
669,711.90
669,742.39
96.60
3.46%
647,219.33
4,508.54
0.22%
(22,523.06)
A2 / A
A
2.69
2.56
As of June 30, 2022
48
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
59217GEW5 Metlife Note2.800% Due 03/21/2025 970,000.00 03/14/20222.83%969,136.70969,217.04 97.37 3.82%944,494.82 7,544.44 0.32% (24,722.22)Aa3 / AA-AA-2.732.57
87612EBL9 Target Corp Callable Note Cont 4/15/252.250% Due 04/15/2025 3,000,000.00 03/15/20222.53%2,975,610.002,977,908.08 96.62 3.53%2,898,468.00 14,250.00 0.97% (79,440.08)A2 / AA 2.792.66
06406RBC0 Bank of NY Mellon Corp Callable Note Cont 3/25/2025
3.350% Due 04/25/2025
1,475,000.00 04/19/2022
3.35%
1,474,793.50
1,474,805.95
98.96
3.74%
1,459,648.20
8,921.70
0.49%
(15,157.75)
A1 / A
AA-
2.82
2.65
46647PCH7 JP Morgan Chase & Co Callable Note Cont 6/1/20240.824% Due 06/01/2025 1,000,000.00 05/26/20210.75%1,002,160.001,001,381.53 93.53 3.60%935,277.00 686.67 0.31% (66,104.53)A2 / A-AA-2.922.83
26442UAA2 Duke Energy Progress LLC Callable Note Cont 5/15/25
3.250% Due 08/15/2025
2,422,000.00 Various
3.25%
2,421,770.62
2,421,762.14
99.33
3.48%
2,405,712.05
29,736.78
0.81%
(16,050.09)
Aa3 / A
NR
3.13
2.91
857477BR3 State Street Bank Callable Note Cont 2/6/20251.746% Due 02/06/2026 900,000.00 02/02/20221.75%900,000.00900,000.00 94.48 3.82%850,347.00 6,285.60 0.29% (49,653.00)A1 / AAA-3.613.40
665859AW4 Northern Trust Company Callable Note Cont 4/10/20274.000% Due 05/10/2027 2,000,000.00 06/27/20223.99%2,000,880.002,000,879.01 100.75 3.83%2,014,904.00 11,333.33 0.68% 14,024.99 A2 / A+A+4.864.29
TOTAL Corporate 65,424,000.00 1.64%
65,996,179.85
65,771,676.62 3.43%
63,503,999.83
348,460.31
21.30%
(2,267,676.79)
A1 / A+
AA-
2.08
1.98
Money Market Fund
38141W323 Goldman Sachs Financial Square Treasury Obligation Fund 159.88 Various1.37%159.88159.88 1.00 1.37%159.88 0.00 0.00% 0.00 Aaa / AAANR 0.000.00
60934N104 Federated Investors Government Obligations Fund 126,255.77 Various1.36%126,255.77126,255.77 1.00 1.36%126,255.77 0.00 0.04% 0.00 Aaa / AAAAAA 0.000.00
TOTAL Money Market Fund 126,415.65 1.36%126,415.65126,415.65 1.36%126,415.650.00 0.04%0.00 Aaa / AAAAaa 0.000.00
As of June 30, 2022
49
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
Municipal Bonds
649791PP9 New York St Taxable-GO2.010% Due 02/15/2024 2,000,000.00 10/29/20192.01%2,000,000.002,000,000.00 98.17 3.18%1,963,320.00 15,186.67 0.66% (36,680.00)Aa1 / AA+AA+1.631.57
TOTAL Municipal Bonds 2,000,000.00 2.01%2,000,000.002,000,000.00 3.18%1,963,320.0015,186.67 0.66%(36,680.00)Aa1 / AA+AA+1.631.57
Negotiable CD
89114WNP6 Toronto Dominion Yankee CD0.350% Due 08/29/2022 2,200,000.00 12/23/20210.35%2,200,000.002,200,000.00 99.74 1.89%2,194,357.00 4,063.89 0.73% (5,643.00)P-1 / A-1+F-1+0.160.16
TOTAL Negotiable CD 2,200,000.00 0.35%2,200,000.002,200,000.00 1.89%2,194,357.004,063.89 0.73%(5,643.00)Aaa / AAAAaa 0.160.16
Supranational
459058JM6 Intl. Bank Recon & Development Note0.250% Due 11/24/2023 3,565,000.00 Various0.28%3,562,215.253,563,712.05 96.44 2.86%3,438,057.48 916.01 1.15% (125,654.57)Aaa / AAAAAA 1.401.38
459058GQ0 Intl. Bank Recon & Development Note2.500% Due 03/19/2024 2,350,000.00 01/26/20210.26%2,514,359.002,439,924.16 99.21 2.98%2,331,317.50 16,645.83 0.78% (108,606.66)Aaa / AAAAAA 1.721.66
4581X0DZ8 Inter-American Dev Bank Note
0.500% Due 09/23/2024
3,955,000.00 09/15/2021
0.52%
3,952,073.30
3,952,823.67
94.58
3.03%
3,740,480.80
5,383.19
1.25%
(212,342.87)
Aaa / AAA
NR
2.24
2.18
45950KCR9 International Finance Corp Note1.375% Due 10/16/2024 2,500,000.00 07/12/20210.54%2,567,250.002,547,357.56 96.33 3.04%2,408,320.00 7,161.46 0.81% (139,037.56)Aaa / AAANR 2.302.23
TOTAL Supranational 12,370,000.00 0.41%12,595,897.5512,503,817.44 2.97%11,918,175.7830,106.49 3.99%(585,641.66)Aaa / AAAAaa 1.911.86
US Treasury
912828YA2 US Treasury Note1.500% Due 08/15/2022 2,300,000.00 12/24/20191.69%2,288,949.222,299,483.61 100.01 1.44%2,300,144.90 12,961.33 0.77% 661.29 Aaa / AA+AAA 0.130.13
91282CAG6 US Treasury Note0.125% Due 08/31/2022 5,000,000.00 04/27/20221.09%4,983,593.754,991,993.75 99.76 1.55%4,988,060.00 2,088.99 1.66% (3,933.75)Aaa / AA+AAA 0.170.17
912828YF1 US Treasury Note
1.500% Due 09/15/2022
3,000,000.00 01/27/2022
0.49%
3,018,984.38
3,006,273.10
99.97
1.66%
2,998,962.00
13,206.52
1.00%
(7,311.10)
Aaa / AA+
AAA
0.21
0.21
912828L57 US Treasury Note1.750% Due 09/30/2022 5,000,000.00 04/05/20221.12%5,015,039.065,007,731.95 99.98 1.81%4,999,210.00 21,994.54 1.68% (8,521.95)Aaa / AA+AAA 0.250.25
912828M49 US Treasury Note1.875% Due 10/31/2022 5,000,000.00 03/02/20220.82%5,034,765.635,017,526.47 99.92 2.12%4,995,760.00 15,794.84 1.67% (21,766.47)Aaa / AA+AAA 0.340.33
As of June 30, 2022
50
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
912828R28 US Treasury Note1.625% Due 04/30/2023 4,000,000.00 12/04/20191.60%4,003,593.754,000,876.74 98.98 2.87%3,959,220.00 10,951.09 1.32% (41,656.74)Aaa / AA+AAA 0.830.82
912828R69 US Treasury Note1.625% Due 05/31/2023 2,400,000.00 04/11/20192.30%2,336,250.002,385,870.94 98.85 2.91%2,372,344.80 3,303.28 0.79% (13,526.14)Aaa / AA+AAA 0.920.90
91282CBA8 US Treasury Note
0.125% Due 12/15/2023
2,300,000.00 01/08/2021
0.22%
2,293,441.41
2,296,732.99
96.02
2.93%
2,208,448.50
125.68
0.74%
(88,284.49)
Aaa / AA+
AAA
1.46
1.44
91282CBE0 US Treasury Note0.125% Due 01/15/2024 4,000,000.00 01/12/20210.24%3,985,781.253,992,689.36 95.80 2.93%3,832,032.00 2,306.63 1.28% (160,657.36)Aaa / AA+AAA 1.551.52
91282CBV2 US Treasury Note
0.375% Due 04/15/2024
5,000,000.00 04/23/2021
0.32%
5,008,398.44
5,005,062.29
95.54
2.95%
4,776,955.00
3,944.67
1.59%
(228,107.29)
Aaa / AA+
AAA
1.79
1.76
91282CCC3 US Treasury Note0.250% Due 05/15/2024 3,000,000.00 05/26/20210.30%2,995,312.502,997,042.20 95.12 2.94%2,853,633.00 957.88 0.95% (143,409.20)Aaa / AA+AAA 1.881.84
91282CCL3 US Treasury Note0.375% Due 07/15/2024 3,500,000.00 07/13/20210.46%3,490,703.133,493,680.50 94.94 2.95%3,322,812.50 6,054.90 1.11% (170,868.00)Aaa / AA+AAA 2.042.00
912828YE4 US Treasury Note
1.250% Due 08/31/2024
4,000,000.00 02/24/2021
0.33%
4,128,125.00
4,079,091.97
96.43
2.96%
3,857,032.00
16,711.96
1.29%
(222,059.97)
Aaa / AA+
AAA
2.17
2.11
91282CCX7 US Treasury Note0.375% Due 09/15/2024 5,000,000.00 09/08/20210.44%4,990,234.384,992,809.44 94.47 2.98%4,723,440.00 5,502.72 1.58% (269,369.44)Aaa / AA+AAA 2.212.17
91282CDB4 US Treasury Note0.625% Due 10/15/2024 1,800,000.00 12/29/20210.94%1,784,460.941,787,248.83 94.82 2.98%1,706,835.60 2,366.80 0.57% (80,413.23)Aaa / AA+AAA 2.302.24
912828YM6 US Treasury Note
1.500% Due 10/31/2024
4,500,000.00 08/05/2021
0.42%
4,655,917.97
4,612,519.48
96.70
2.98%
4,351,288.50
11,372.28
1.46%
(261,230.98)
Aaa / AA+
AAA
2.34
2.26
91282CDH1 US Treasury Note0.750% Due 11/15/2024 5,000,000.00 11/17/20210.85%4,985,156.254,988,211.92 94.90 2.99%4,744,920.00 4,789.40 1.58% (243,291.92)Aaa / AA+AAA 2.382.32
912828Z52 US Treasury Note1.375% Due 01/31/2025 3,000,000.00 02/16/20210.37%3,117,656.253,076,998.03 96.00 2.99%2,880,000.00 17,206.49 0.97% (196,998.03)Aaa / AA+AAA 2.592.50
912828ZC7 US Treasury Note
1.125% Due 02/28/2025
2,700,000.00 01/26/2022
1.42%
2,676,058.59
2,679,348.41
95.27
2.98%
2,572,381.80
10,152.51
0.86%
(106,966.61)
Aaa / AA+
AAA
2.67
2.59
912828ZF0 US Treasury Note0.500% Due 03/31/2025 2,900,000.00 03/17/20210.64%2,884,140.632,889,197.55 93.43 3.01%2,709,348.20 3,644.81 0.91% (179,849.35)Aaa / AA+AAA 2.752.69
912828ZL7 US Treasury Note0.375% Due 04/30/2025 5,000,000.00 Various0.50%4,974,296.884,981,965.29 92.91 3.00%4,645,310.00 3,158.97 1.55% (336,655.29)Aaa / AA+AAA 2.842.78
912828ZT0 US Treasury Note
0.250% Due 05/31/2025
5,000,000.00 10/05/2021
0.70%
4,919,335.94
4,935,553.47
92.38
3.00%
4,618,945.00
1,058.74
1.54%
(316,608.47)
Aaa / AA+
AAA
2.92
2.87
912828K74 US Treasury Note2.000% Due 08/15/2025 2,300,000.00 04/05/20222.77%2,243,218.752,247,198.53 96.99 3.02%2,230,730.90 17,281.77 0.75% (16,467.63)Aaa / AA+AAA 3.132.98
As of June 30, 2022
51
Holdings Report
City of Newport Beach, California Consolidated -Account #13
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
9128285C0 US Treasury Note3.000% Due 09/30/2025 5,000,000.00 05/05/20222.99%5,001,953.135,001,865.14 99.96 3.01%4,998,240.00 37,704.92 1.68% (3,625.14)Aaa / AA+AAA 3.253.05
91282CEF4 US Treasury Note2.500% Due 03/31/2027 5,000,000.00 06/06/20223.02%4,883,203.134,884,797.63 97.71 3.02%4,885,545.00 31,420.77 1.64% 747.37 Aaa / AA+AAA 4.754.41
91282CEN7 US Treasury Note
2.750% Due 04/30/2027
5,000,000.00 06/02/2022
2.92%
4,959,960.94
4,960,586.55
98.80
3.01%
4,939,845.00
23,165.76
1.66%
(20,741.55)
Aaa / AA+
AAA
4.84
4.48
TOTAL US Treasury 100,700,000.00 1.12%100,658,531.30100,612,356.14 2.72%97,471,444.70279,228.25 32.61%(3,140,911.44)Aaa / AA+Aaa 2.082.00
TOTAL PORTFOLIO 307,055,258.01 1.24%308,214,218.01307,639,105.20 2.93%298,786,870.54975,226.58 100.00%(8,852,234.66)Aa1 / AA+Aaa 1.901.68
TOTAL MARKET VALUE PLUS ACCRUALS 299,762,097.12
As of June 30, 2022
52
Holdings Report
Newport Beach 10B Cops Lease Pymt -Account #10543
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
Money Market Fund
60934N872 Federated Investors US Treasury Cash Reserves 632 7,696,550.08 Various1.11%7,696,550.087,696,550.08 1.00 1.11%7,696,550.08 0.00 100.00% 0.00 Aaa / AAANR 0.000.00
TOTAL Money Market Fund 7,696,550.08 1.11%7,696,550.087,696,550.08 1.11%7,696,550.080.00 100.00%0.00 Aaa / AAANR 0.000.00
TOTAL PORTFOLIO 7,696,550.08 1.11%7,696,550.087,696,550.08 1.11%7,696,550.080.00 100.00%0.00 Aaa / AAANR 0.000.00
TOTAL MARKET VALUE PLUS ACCRUALS 7,696,550.08
As of June 30, 2022
53
Holdings Report
Newport Beach AD 117 Reserve FD -Account #10627
CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost ValueBook Value Mkt Price Mkt YTM Market Value Accrued Int.% of Port.Gain/Loss Moody/S&P Fitch Maturity Duration
Money Market Fund
31846V302 First American Treasury MMF Class D 710.40 Various0.85%710.40710.40 1.00 0.85%710.40 0.00 0.54% 0.00 Aaa / AAAAAA 0.000.00
TOTAL Money Market Fund 710.40 0.85%710.40710.40 0.85%710.400.00 0.54%0.00 Aaa / AAAAaa 0.000.00
US Treasury
912796K57 US Treasury Bill0.483% Due 07/14/2022 65,000.00 02/09/20220.49%64,865.8464,865.84 99.79 0.49%64,865.84 122.83 49.69% 0.00 P-1 / A-1+F-1+0.040.04
912828Z29 US Treasury Note1.500% Due 01/15/2023 65,000.00 02/09/20220.90%65,358.0165,209.10 99.45 2.54%64,639.45 449.79 49.77% (569.65)Aaa / AA+AAA 0.550.53
TOTAL US Treasury 130,000.00 0.70%
130,223.85
130,074.94 1.51%
129,505.29
572.62
99.46%
(569.65)
Aaa / AAA
Aaa
0.29
0.28
TOTAL PORTFOLIO 130,710.40 0.70%
130,934.25
130,785.34 1.51%
130,215.69
572.62
100.00%
(569.65)
Aaa / AAA
Aaa
0.29
0.28
TOTAL MARKET VALUE PLUS ACCRUALS 130,788.31
As of June 30, 2022
54
SECTION |Section 5 |Transactions
55
Transaction Ledger
City of Newport Beach, California Consolidated -Account #13
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
ACQUISITIONS
Purchase 04/06/2022 912828K74 2,300,000.00 US Treasury Note
2% Due: 08/15/2025
97.531 2.77%2,243,218.75 6,353.59 2,249,572.34 0.00
Purchase 04/06/2022 912828L57 5,000,000.00 US Treasury Note
1.75% Due: 09/30/2022
100.301 1.12%5,015,039.06 1,434.43 5,016,473.49 0.00
Purchase 04/08/2022 637432NL5 1,317,000.00 National Rural Utilities Callable Note Cont 12/7/2023 2.95% Due: 02/07/2024
100.294 2.77%1,320,871.98 6,583.17 1,327,455.15 0.00
Purchase 04/20/2022 26442UAA2 1,422,000.00 Duke Energy Progress LLC Callable Note Cont
5/15/25
3.25% Due: 08/15/2025
100.121 3.21%1,423,720.62 8,344.38 1,432,065.00 0.00
Purchase 04/26/2022 06406RBC0 1,475,000.00 Bank of NY Mellon Corp Callable Note Cont 3/25/2025 3.35% Due: 04/25/2025
99.986 3.35%1,474,793.50 0.00 1,474,793.50 0.00
Purchase 04/26/2022 3137BFE98 700,000.00 FHLMC K041 A2
3.171% Due: 10/25/2024
100.320 2.96%702,242.19 1,541.46 703,783.65 0.00
Purchase 04/28/2022 91282CAG6 5,000,000.00 US Treasury Note
0.125% Due: 08/31/2022
99.672 1.09%4,983,593.75 1,002.04 4,984,595.79 0.00
Purchase 04/29/2022 26442UAA2 1,000,000.00 Duke Energy Progress LLC Callable Note Cont
5/15/25 3.25% Due: 08/15/2025
99.805 3.31%998,050.00 6,680.56 1,004,730.56 0.00
Purchase 05/06/2022 9128285C0 5,000,000.00 US Treasury Note 3% Due: 09/30/2025 100.039 2.99%5,001,953.13 14,754.10 5,016,707.23 0.00
Purchase 05/18/2022 05602RAD3 960,000.00 BMW Vehicle Owner Trust 2022-A A3
3.21% Due: 08/25/2026
99.995 3.23%959,950.08 0.00 959,950.08 0.00
Purchase 05/19/2022 3137BM7C4 2,000,000.00 FHLMC K051 A2
3.308% Due: 09/25/2025
100.777 2.96%2,015,546.88 3,308.00 2,018,854.88 0.00
Purchase 05/24/2022 02582JJT8 2,485,000.00 American Express Credit Trust 2022-2 A 3.39% Due: 05/17/2027 99.978 3.42%2,484,450.32 0.00 2,484,450.32 0.00
Purchase 05/24/2022 3137BKRJ1 2,500,000.00 FHLMC K047 A2 3.329% Due: 05/25/2025 100.578 3.05%2,514,453.13 5,317.15 2,519,770.28 0.00
Purchase 06/03/2022 91282CEN7 5,000,000.00 US Treasury Note
2.75% Due: 04/30/2027
99.199 2.92%4,959,960.94 12,703.80 4,972,664.74 0.00
March 31, 2022 through June 30, 2022
As of June 30, 2022
56
Transaction Ledger
City of Newport Beach, California Consolidated -Account #13
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
Purchase 06/07/2022 91282CEF4 5,000,000.00 US Treasury Note
2.5% Due: 03/31/2027
97.664 3.02%4,883,203.13 23,224.04 4,906,427.17 0.00
Purchase 06/29/2022 665859AW4 2,000,000.00 Northern Trust Company Callable Note Cont
4/10/20274% Due: 05/10/2027
100.044 3.99%2,000,880.00 10,888.89 2,011,768.89 0.00
Subtotal 43,159,000.00 42,981,927.46 102,135.61 43,084,063.07 0.00
TOTAL ACQUISITIONS 43,159,000.00 42,981,927.46 102,135.61 43,084,063.07 0.00
DISPOSITIONS
Sale 04/07/2022 912828L24 2,800,000.00 US Treasury Note
1.875% Due: 08/31/2022
100.340 2.92%2,809,515.63 5,421.20 2,814,936.83 20,475.44
Sale 04/21/2022 3130AFE78 2,500,000.00 FHLB Note
3% Due: 12/09/2022
100.925 2.77%2,523,125.00 27,500.00 2,550,625.00 19,650.60
Sale 05/06/2022 9128282P4 5,000,000.00 US Treasury Note
1.875% Due: 07/31/2022
100.230 1.68%5,011,523.44 24,602.90 5,036,126.34 9,295.64
Sale 05/19/2022 3130AEBM1 3,000,000.00 FHLB Note 2.75% Due: 06/10/2022 100.117 2.86%3,003,510.00 36,437.50 3,039,947.50 3,697.77
Sale 05/23/2022 912828YA2 2,400,000.00 US Treasury Note 1.5% Due: 08/15/2022 100.105 1.69%2,402,531.25 9,646.41 2,412,177.66 3,537.09
Sale 06/03/2022 3130ADRG9 4,800,000.00 FHLB Note
2.75% Due: 03/10/2023
100.548 2.75%4,826,304.00 30,433.33 4,856,737.33 26,197.05
Sale 06/07/2022 912828M80 4,000,000.00 US Treasury Note
2% Due: 11/30/2022
100.160 1.66%4,006,406.25 1,530.05 4,007,936.30 -42.37
Sale 06/28/2022 912828YA2 300,000.00 US Treasury Note1.5% Due: 08/15/2022 100.012 1.69%300,035.16 1,653.31 301,688.47 107.01
Subtotal 24,800,000.00 24,882,950.73 137,224.70 25,020,175.43 82,918.23
March 31, 2022 through June 30, 2022
As of June 30, 2022
57
Transaction Ledger
City of Newport Beach, California Consolidated -Account #13
Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp
Yield Amount Interest
Pur/Sold Total Amount Gain/Loss
Maturity 06/22/2022 21687BFN6 5,000,000.00 Rabobank Nederland NV NY Discount CP
0.31% Due: 06/22/2022
99.843 4,992,163.89 7,836.11 5,000,000.00 0.00
Subtotal 5,000,000.00 4,992,163.89 7,836.11 5,000,000.00 0.00
TOTAL DISPOSITIONS 29,800,000.00 29,875,114.62 145,060.81 30,020,175.43 82,918.23
March 31, 2022 through June 30, 2022
As of June 30, 2022
58
Important Disclosures
2022Chandler Asset Management,Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential.Prices are provided by ICE Data Services Inc (“IDS”),an independent pricing source.In the event IDS does not provide a price or if the price provided is notreflectiveoffairmarketvalue, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures.Our valuationproceduresarealso disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return.The deduction of advisory fees lowers performance results.These results include the reinvestment of
dividends and other earnings.Past performance may not be indicative of future results.Therefore,clients should not assume that future performance of any specific investment or investment strategy
will be profitable or equal to past performance levels.All investment strategies have the potential for profit or loss.Economic factors,market conditions or changes in investment strategies,contributions orwithdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions.Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or thedeductionofaninvestmentmanagementfee,the incurrence of which would have the effect of decreasing historical performance results.It is not possible to invest directly in an index.
Source ICE Data Indices,LLC ("ICE"),used with permission. ICE permits use of the ICE indices and related data on an "as is"basis; ICE,its affiliates and their respective third party suppliers disclaim any and
all warranties and representations, express and/or implied,including any warranties of merchantability or fitness for a particular purpose or use,including the indices,index data and any data included
in,related to,or derived therefrom.Neither ICE data,its affiliates or their respective third party providers guarantee the quality,adequacy,accuracy,timeliness or completeness of the indices or theindex data or any component thereof,and the indices and index data and all components thereof are provided on an "as is"basis and licensee's use it at licensee's own risk. ICE data,its affiliates and theirrespectivethird party do not sponsor,endorse,or recommend chandler asset management,or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice.The information contained herein was obtained from sources believed to be
reliable as of the date of publication,but may become outdated or superseded at any time without notice.Any opinions or views expressed are based on current market conditions and are subject to
change.This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results.Past performance is not indicative of
future results.This report is not intended to constitute an offer,solicitation,recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as asubstitutefortheexerciseoftheirownjudgment.
Fixed income investments are subject to interest, credit and market risk.Interest rate risk:the value of fixed income investments will decline as interest rates rise.Credit risk:the possibility that the
borrower may not be able to repay interest and principal.Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk.Market risk:the bond market in
general could decline due to economic conditions,especially during periods of rising interest rates.
Ratings information have been provided by Moody’s,S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S.Agency issued mortgage-backed securities (“MBS”)reflect the issuer rating because the securities themselves are not rated.The issuing U.S.Agency guarantees the full andtimelypaymentofboth principal and interest and carries a AA+/Aaa/AAA by S&P,Moody’s and Fitch respectively.
As of June 30, 2022
59
Benchmark Disclosures
ICE BofA 1-3 Yr US Treasury Index
The ICE BofA 1-3 Year US Treasury Index tracks the performance of US dollar-denominated sovereign debt publicly issued by the US government in its domestic market.Qualifying securities must have atleastoneyearremainingtermtofinalmaturityandlessthanthreeyears remaining term to final maturity,a fixed coupon schedule, and a minimum amount outstanding of $1 billion.Qualifying securitiesmusthaveatleast18monthstofinalmaturityatthetimeofissuance.
ICE BofA 1-3 Yr AAA-A US Corp & Govt Index
The ICE BofA 1-3 AAA-A Year US Corporate &Government Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market,including US Treasury,
US agency,foreign government, supranational,and corporate securities.Qualifying securities must be rated AAA through A3 (based on an average of Moody’s,S&P and Fitch).In addition, qualifyingsecuritiesmusthave at least one year remaining term to final maturity and less than three years remaining term to final maturity,at least 18 months to final maturity at point of issuance,a fixed couponschedule,and a minimum amount outstanding of $1billion for US Treasuries and $250 million for all other securities.
As of June 30, 2022
60
CITY OF NEWPORT BEACH FINANCE COMMITTEE STAFF REPORT
Agenda Item No. 5E
September 15, 2022
TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Finance Department
Scott Catlett, Finance Director/Treasurer 949-644-3123 or scatlett@newportbeachca.gov
SUBJECT: BUDGET AMENDMENTS FOR QUARTER ENDING JUNE 30, 2022
EXECUTIVE SUMMARY
The purpose of this memorandum is to report on the budget amendments for the fourth
quarter of Fiscal Year 2021-22. All budget amendments are in compliance with City Council Policy F-3, Budget Adoption and Administration.
DISCUSSION
City Council Policy F-3, Budget Adoption and Administration, identifies how appropriations can be transferred, increased or reduced. The Finance Committee reviews a quarterly report of City Council and City Manager budget amendments including their effect on fund balance. Please find the list of budget amendments included as Attachment A.
Prepared by: Submitted by:
/s/ Jessica Nguyen /s/ Scott Catlett
Jessica Nguyen Scott Catlett Budget Analyst Finance Director/Treasurer
Attachment: A.Budget Amendments Fiscal Year 2021-22 Quarter Ending June 30,2022
25
ATTACHMENT A
BUDGET AMENDMENTS FISCAL YEAR 2021-22 QUARTER ENDING JUNE 30, 2022
26
BA #Date Amendment Type Fund Revenues Expenditures
Net Effect on Fund Balance Increase/(Decrease)Department Explanation
048 04/12/2022 City Council GENERAL FUND 40,000.00 40,000.00 - Recreation & Sr Services To increase revenue estimates and expenditure appropriations from the grant reimbursement contribution from the State of California, Department of Parks and Recreation, Division of Boating and Waterways, for the cost of Sailing Program items and refurbishing current equipment for the Marina Park Sailing Program.049 04/12/2022 City Council GENERAL FUND CAPITAL PROJECTS - 128,050.00 (128,050.00) Public Works To increase expenditure appropriations to fund the Slurry Seal Program from the Capital Improvement Program unappropriated Fund Balance.
050 04/06/2022 City Manager GENERAL FUND 2,500.00 2,500.00 - Police To increase revenue and expenditure budgets to reflect the
donation from Westar Associates for Police Department Crisis
Response Team (SWAT / CNT).
051 04/07/2022 City Manager GENERAL FUND 4,477.00 4,477.00 - Library To increase revenue estimates and expenditure appropriations from the California Literacy Campaign. Funds will be allocated to various Library Literacy Service Accounts. 052 04/21/2022 City Manager GENERAL FUND 6,555.00 6,555.00 - Library To increase revenue estimates and expenditure appropriations from the Newport Beach Public Library Foundation. Funds will be allocated to purchase materials for the Library's collection. 053 04/27/2022 City Manager GENERAL FUND 50.00 50.00 - Library To increase revenue estimates and expenditure appropriations from a donation from a Library Patron. Funds will be allocated to purchase materials for the Library's collection.
054 05/10/2022 City Council GENERAL FUND - 46,435.65 (46,435.65) Human Resources To increase salary & benefit appropriations to fund the new MOU
for the Lifeguard Management Association.
055 05/24/2022 City Council GENERAL FUND - 1,775.76 (1,775.76) Human Resources To increase salary & benefit appropriations to fund the new MOU
for the new Agreement for the City Clerk.
056 06/14/2022 City Council GENERAL FUND CAPITAL PROJECTS - 101,066.00 (101,066.00) Public Works To increase expenditure appropriations to fund the Peninsula Point Encroachment Removal Project from the Capital Improvement Program Oceanfront Encroachment unappropriated Fund Balance.
057 06/14/2022 City Council GENERAL FUND 255,267.00 255,267.00 - Finance To increase revenue estimates and expenditures appropriations relating to the fiscal year 2021-22 quarter three staff report.
058 05/23/2022 City Manager GENERAL FUND 8,269.00 8,269.00 - Library To increase revenue estimates and expenditure appropriations from the Literacy Services Special Deposit Account. Funds will be
allocated to various Literacy Services accounts.
City of Newport BeachFiscal Year 2021-22 Budget Amendments
Quarter Ending June 30, 2022
27
9/9/22
Scheduled Date Agenda Title Report Type Agenda Description
Thursday, September 15, 2022 Annual Review of Investment Performance Presentation
The City's investment advisor, Chandler Asset Management, will report on the
performance of the City's investment portfolio for the fiscal year ending June 30,
2022.
Annual Review of Investment Policy Presentation
Staff will provide a presentation regarding any changes proposed to the City's
Investment Policy by staff or the City's investment advisor prior to the
Investment Policy being approved by the City Council.
Rescheduled from May Financial Statement Auditor's Communication with the Finance Committee acting
as the City's Audit Committee Presentation
The City's external auditors, Davis Farr LLP, will provide an overview
presentation regarding the audit process and request feedback from the
Committee regarding any information that may assist them in their audit of the
City's financial statements.
Internal Audit Program Update Presentation Bi-monthly progress update on the internal audit program.
Budget Amendments for Quarter Ending June 30, 2022 Receive and File Staff will report on the budget amendments from the prior quarter.
Thursday, October 20, 2022 Year-End Budget Results and Surplus Allocation Presentation Staff will provide a presentation regarding the year-end budget results for FY
2021-22 and recommendations for allocation of any year-end budget surplus.
Rescheduled from September Recommended Changes to Purchasing Policies Presentation
Staff will provide on overview of recommended changes to the City's purchasing
policies for the Committee's consideration, in follow-up to the Internal Audit
Program report presented to the Committee in January.
Rescheduled from September Overview of Police Department Budget Presentation Staff will provide the Committee with a presentation covering the budget for the
Police Department.
Revenue Audit Program Update Presentation
Staff will provide an update on audits conducted by the Revenue Division to
verify transient occupancy tax (hotels, agents and residential owners), charter
boat company, waste hauler, etc. revenue collections.
Budget Amendments for Quarter Ending September 30, 2022 Receive and File Staff will report on the budget amendments from the prior quarter.
Newport Beach Finance Committee Work Plan
October 2022
September 2022
I:\Users\FIN\Administration\Shared\FINANCE COMMITTEE\WORK PLAN\2022\WORK PLAN 2022-23 - 9-7-2022 128
9/9/22
Scheduled Date Agenda Title Report Type Agenda Description
Newport Beach Finance Committee Work Plan
Thursday, November 10, 2022 CalPERS Update Presentation
Staff will provide the Committee with an overview of the data from the latest
actuarial reports from CalPERS as well as their impact on prior projections of
the paydown of the City's unfunded pension liability.
First Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected FY
2022-23 budget performance.
Long Range Financial Forecast (LRFF) Update Presentation Staff will brief the Committee regarding the results of the updated LRFF
analysis.
Internal Audit Program Update Presentation Bi-monthly progress update on the internal audit program.
Thursday, January 12, 2023 Financial Statement Audit Results and Related Communication Presentation The City’s external auditors will meet with the Finance Committee to discuss the
results of their audit for the fiscal year ending June 30, 2022.
Internal Audit Program Reports Presentation Presentation of reports, findings, and recommendations from the FY 2021-22
audit program.
Internal Audit Program Work Plan Review Presentation Selection of audit topics for the FY 2022-23 audit program.
Budget Amendments for Quarter Ending December 31, 2022 Receive and File Staff will report on the budget amendments from the prior quarter.
Thursday, February 16, 2023 Capital Improvement Program (CIP) Update Presentation Staff from Public Works will provide an update on what is planned for inclusion
in the FY 2023-24 CIP.
Facilities Financial Plan (FFP) and Harbor & Beaches Master Plan Presentation
Staff will provide an update on the current status of FFP and Harbor & Beaches
Master Plan funding. Staff will also highlight changes to the development fee
funding projection methodology for the FFP.
Second Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected FY
2022-23 budget performance.
February 2023
January 2023
November 2022
December 2022
Committee Recess
I:\Users\FIN\Administration\Shared\FINANCE COMMITTEE\WORK PLAN\2022\WORK PLAN 2022-23 - 9-7-2022 229
9/9/22
Scheduled Date Agenda Title Report Type Agenda Description
Newport Beach Finance Committee Work Plan
Thursday, March 16, 2023 Fiscal Year 2022-23 Fee Study Update Presentation Staff will present the Master Fee Schedule to the Finance Committee prior to
presenting it to the City Council.
Overview of Revenue Projections Presentation
Staff will provide the Committee with an overview of the assumptions utilized to
prepare revenue projections for the City's major funds as part of the FY 2023-24
budget preparation process.
Internal Audit Program Update Presentation Bi-monthly progress update on the internal audit program.
Thursday, April 13, 2023 Proposed FY 2023-24 Budget Overview Presentation Staff will provide the Committee with an overview of the expenditure budget for
FY 2023-24 that will be presented to the City Council in May.
OPEB Actuarial Valuation Report Update Presentation Staff will provide the Committee with an overview of the latest actuarial
valuation report prepared by the City's actuary.
Budget Amendments for Quarter Ending March 31, 2023 Receive and File Staff will report on the budget amendments from the prior quarter.
Thursday, May 11, 2023 Third Quarter Budget Update Presentation Staff will provide a presentation regarding the year-to-date and projected Fiscal
Year 2022-23 budget performance.
Follow-Up Discussion of Proposed FY 2023-24 Budget Discussion
Staff will provide the Committee with a copy of the Fiscal Year 2023-24
proposed budget document. Should the Committee wish to continue April's
discussion of the Fiscal Year 2023-24 budget, this is also an opportunity to do
so.
Internal Audit Program Update Presentation Bi-monthly progress update on the internal audit program.
Tuesday, May 23, 2023 Joint City Council and Finance Committee Study Session Presentation Staff will present the FY 2023-24 proposed budget to the City Council and
Finance Committee.
Thursday, May 25, 2023 Financial Statement Auditor's Communication with the Finance Committee acting
as the City's Audit Committee Presentation
The City's external auditors, Davis Farr LLP, will provide an overview
presentation regarding the audit process and request feedback from the
Committee regarding any information that may assist them in their audit of the
City's financial statements.
Committee Recommendation to Council for the FY 2023-24 Budget Discussion
Discussion of the Study Session earlier in the week and formulation of any
recommendations to be presented to the City Council at the budget public
hearing in June.
April 2023
June 2023
Committee Recess
March 2023
Committee Recess
July 2023
May 2023
August 2023
Committee Recess
I:\Users\FIN\Administration\Shared\FINANCE COMMITTEE\WORK PLAN\2022\WORK PLAN 2022-23 - 9-7-2022 330