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HomeMy WebLinkAbout2013 11 18 Informational 204 Investment Report for the 4th Quarter of FY 2013 COMMISSION AGENDA Informational X Consent ITEM 204 public Hearings g Regular November 18, 2013 KS SB Special Meeting City Manager Department REQUEST: The City Manager and the Finance and Administrative Services Department providing the Investment Report for the fourth quarter of fiscal year 2013 (quarter ending September 30, 2013) as prepared by PFM Asset Management LLC. SYNOPSIS: Distribution of the investment report for the fourth quarter of the 2013 fiscal year (quarter-ending September 30, 2013). CONSIDERATIONS: The General City Account portfolio is of high credit quality and maintains adequate liquidity. The portfolio is invested in Federal Agency, U.S. Treasury, commercial paper and municipal securities. PFM's attached report provides additional information regarding the City's investment position at September 30, 2013. FISCAL IMPACT: The weighted average yield at September 30, 2013 is .28%. The weighted average yield at June 30, 2013 was .27%. This portfolio has an average maturity of z.86 years. COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney/Staff, and is available on the City's Website, LaserFiche, and the City's Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals Informational 204 PAGE 1 OF 2- November 18,2013 noted above, and which is also available on the City's Website, LaserFiche, and the City's Server; has been sent to applicable City Staff, Media/Press Representatives who have requested Agendas/Agenda Item information, Homeowner's Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at five (5) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals. Additionally, the investment report will be placed on the City's website within one week of acceptance in the section titled Budgets and Financial Documents. RECOMMENDATION: Staff requests the City Commission receive and review the information provided in this Agenda Item. ATTACHMENTS: Investment Report for quarter-ending September 30, 2013 Informational 204 PAGE 2 OF 2- November 18,2013 City of Winter Springs, Florida „1`rar , * g • Investment Performance Review Quarter Ended September 30, 2013 Investment Advisors PFM Asset Management LLC Steven Alexander,CTP,CGFO,Managing Director One Keystone Plaza,Suite 300 300 S.Orange Avenue,Suite 1170 D.Scott Stitcher,CFA,Senior Managing Consultant North Front&Market Streets Orlando,FL 32801 Richard Pengelly,CFA,Senior Managing Consultant Harrisburg,PA 17101-2044 (407)648-2208 Gregg Manjerovic,CFA,Portfolio Manager Rebecca Geyer,CTP,Senior Analyst 717-232-2723•717-233-6073 fax (407)648-1323 fax City of Winter Springs, Florida Investment Report-Quarter Ended September 30,2013 Table of Contents Tab I. Section A Market Review Tab II. Section B Executive Summary and General City Account Portfolio Performance Section C Asset Allocation Chart Tab III. September 30, 2013 PFM Month-End Statement (statements are available online at www.pfm.com) This material is based on information obtained from sources generally believed to be reliable and available to the public, however PFM Asset Management LLC cannot guarantee its accuracy,completeness or suitability.This material is for general information purposes only and is not intended to provide specific advice or recommendation.The information contained in this report is not an offer to purchase or sell any securities. Table of Contents Section i City of Winter Springs,Florida Investment Report-Quarter Ended September 30,2013 TAB I City of Winter Springs, Florida Investment Report—Quarter Ended September 30,2013 Summary • The euro zone emerged from recession but generated second- • Markets were whipsawed during the third quarter, as rates marched quarter GDP growth of only 0.3%. steadily higher into September,only to reverse on: Interest Rates o Weaker-than-expected employment and economic data; • Intermediate-term interest rates were slightly lower at the end of o Larry Summers' withdrawal from consideration as the next the quarter, as the market re-priced the yield curve to reflect the Federal Reserve(Fed)Chairman;and Fed's surprise inaction on tapering. o The Fed's surprise announcement that it would await more • At its September 17-18 meeting, the Federal Open Market evidence of sustainable economic progress before adjusting Committee(FOMC) maintained its commitment to low short-term the pace of its bond purchases. rates until the unemployment picture improves,as long as inflation remains within expectations. Its decision not to taper was based • As a result of the Fed's decision not to taper its bond-purchasing partially on its belief that growth in the near term would be programs, ten-year Treasury yields ended the quarter at 2.6%, only somewhat lower than expected. slightly higher than the end of June,when yields were 2.5%. • While rates have come down from two-year highs in early • The domestic economy continued to grow modestly, although September, once tapering starts, they may resume their gradual forecasts for growth into next year have been reduced. trend toward normalization,resulting in higher levels over time. • Partisan wrangling over the federal budget, looming debt ceiling, and impact of the government shutdown have created a great deal of uncertainty. Sector Performance • Fixed-income securities generally performed well across most segments of the U.S. market, with intermediate-term maturities Economic Snapshot performing best. • U.S. gross domestic product (GDP) grew at a modest 2.5% for the • The corporate sector led the way with strong returns, as yield second quarter. The release of the Fed's September economic spreads reversed much of the spread widening that occurred in projections confirmed that growth is unlikely to pick up in the next few the second quarter. quarters,as its GDP growth forecast was revised slightly downward for 2013,2014,and 2015. • Agencies modestly outperformed Treasuries for the quarter, but yield spreads remain near historically narrow levels, especially in • During the quarter, the unemployment rate continued to fall from shorter maturities. 7.6% in June to 7.3% in August.The economy created 169,000 jobs in • August, but that figure was overshadowed by large downward Agency mortgage-backed securities had a very good quarter, as revisions to the prior two months'figures. option-adjusted spreads narrowed, while the worst of the rate- induced duration extensions appear to be behind us. • Consumer confidence fell to 79.7 in September, marking its weakest reading since May. • Short- and intermediate-term municipal bonds also had a good quarter,despite the Detroit bankruptcy filing in July. PFM Asset Management LLC Section A-1 City of Winter Springs, Florida Investment Report-Quarter Ended September 30,2013 Economic Snapshot Labor Market Latest Jun 2013 Sep 2012 Unemployment Rate Aug'13 7.3% 7.6% 7.8% Unemployment Rate(left)vs.Chang e in Nonfarm Payrolls(right) 11.0% ∎Cnangein NonFarrn Payrolls 400K -ie In Non-Farm Payrolls 172,000 138,000 9.0% -1 -unemgievmenc Rae 300K 7.0% I I *.'" ....'"n� 200K Average Hourly Earnings(YoY) Aug'13 2.2% 2.1% 2.0% I I I I I I I I I I I OK ome(Yo 3.0% 0 1.0% -100K Initial Jobless Claims(week) 10/4/13 374,000 344,000 368,000 8/31/10 2/28/11 8/31/11 2/29/12 8/31/12 2/28/13 8/31/13 Growth Real GDP(QoQ SAAR) 2013Q2 2.5% 1.1%r 2.8%2 Real GDP (QoQ) 6.0% . 5.0% GDP Personal Consumption(QoQ SAAR) 4.0% 3.0% 1 •- - ■ Retail Sales(YoY) Aug'13 4.7% 6.0% 5.7% 2" I • • ^ • w - 1.0% 1 ■ ■ ■ ■ ■ ■ ■ - ■ 0.0% ISM Manufacturing r u ey Sep'13 _1 0% -20% Existing Home Sales SAAR(month) Aug'13 5.48 mil. 5.06 mil. 4.78 mil. 6/30/10 12/31/10 6/30/11 12/31/11 6/30/12 12/31/12 6/30/13 Inflation/Prices Personal Consumption Expenditures(YoY) Aug'13 1.2% 1.3% 1.7% Consumer Price index 5.0% -CPI(YoY) -Core CPI(YoY) ice Index(YoY 4.0% 3.0% Consumer Price Index Core(YoY) Aug'13 1.8% 1.6% 2.0% 2.0% Crude Oil Futures(WTI,per barrel) Sep 30 1.0% ■ 0.0% Gold Futures(oz) Sep 30 $1,327 $1,224 $1,771 8/31/10 2/28/11 8/31/11 2/29/12 8/31/12 2/28/13 8/31/13 1. Data as of First Quarter 2013 2.Data as of Third Quarter 2012 Source:Bloomberg 3.Some recent economic data has not been released due to the U.S.Government shutdown Note:YoY=year overyear,QoQ=quarter over quarter,SAAR=seasonally adjusted annual rate,WTI=West Texas Intermediate crude oil PFM Asset Management LLC Section A-2 City of Winter Springs, Florida Investment Report—Quarter Ended September 30,2013 Investment Rate Overview U.S.Treasury Note Yields U.S.Treasury Yield Curve 4% 3.5% - 3.0% 3% - __ _.. 2.5% - 02.0% 32% — - - 1.0% / 0.5% • r A r m '�- W—NW (T J CO r p O O 0.0% o i 9/30/12 12/31/12 3/31/13 6/30/13 9/30/13 Maturity September 30,2013 --- June 30,2013 - September 30,2012 - - -2-Year 5-Year 10-Year U.S.Treasury Yields Yield Curves as of 9/30/2013 Change 5% Maturity 9/30/13 6/30/13 over 9/30/12 Change - . - - Quarter over Year 4/ : 3-month 0.01% 0.03% (0.02%) 0.09% (0.08%) 9 3% / / .0". .- i 1-year 0.11% 0.17% (0.06%) 0.16% (0.05%) } / .° 2% /---' 2-year 0.32% 0.37% (0.05%) 0.25% 0.07% / 1% / 5-year 1.39% 1.40% (0.01%) 0.63% 0.76% / 0% 10-year 2.67% 2.52% 0.15% 1.70% 0.97% -n.)w Cr v N CO 30-year lin 348% 0.20% 2.82% 0.86% Maturity U.S.Treasury --- Federal Agency - - Industrial Corporates,A Rated Source:Bloomberg PFM Asset Management LLC Section A-3 City of Winter Springs, Florida Investment Report-Quarter Ended September 30,2013 BofA Merrill Lynch Index Returns As of 9/30/2013 Returns for Periods ended 9/30/2013 Duration Yield 3 Month 1 Year 3 Years 1-3 Year Indices U.S.Treasury 1.90 0.33% 0.29% 0.37% 0.71% Federal Agency 1.75 0.45% 0.39% U.S.Corporates,A-AAA rated 1.93 1.00% 0.74% 1.39% 2.22% Agency MBS (0 to 3 years) 1.78 1.34% (0.28%) Municipals 1.83 0.64% 0.47% 0.76% 1.25% 1-5 Year Indices U.S.Treasury 2.70 0.62% 0.46% (0.03%) 1.16%'WV Federal Agency 2.48 0.75% 0.52% V 1.1 U.S.Corporates,A-AAA rated 2.83 1.49% 1.16% 1.17% 2.79% Agency MBS (0 to 5 years) 3.26 2.54% 0.93% (0.74%) 2.55% Municipals 2.57 0.98% 0.67% 0.58% 1.72% Master Ind ices (Maturities 1 Year or Greater) U.S.Treasury 5.70 1.42% 0.03% (Z54%) 2.12% �ncy 3.93 1.33% 0.35% 1.63% U.S.Corporates,A-AAA rated 6.44 2.84% 0.86% (1.72%) 3.83% 2.94% 2.66% Municipals 8.04 3.40% (0.41%) (2.75%) 3.28% 1.Duration andyield are after the indues were rebalanced at month end Source:Bloomberg 2.Returns are rolling returns.Returns forpetiods greater than one year are annualized PFM Asset Management LLC Section A-4 City of Winter Springs, Florida Investment Report—Quarter Ended September 30,2013 Disclosures The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC(PFMAM)at the time of distribution and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFMAM cannot guarantee its accuracy, completeness, or suitability.This material is for general information purposes only and is not intended to provide specific advice or recommendation.The information contained in this report is not an offer to purchase or sell any securities. Further distribution is not permitted without prior written consent. PFM Asset Management LLC Section A-5 City of Winter Springs,Florida Investment Report-Quarter Ended September 30,2013 TAB II City of Winter Springs,Florida Investment Report-Quarter Ended September 30,2013 Executive Summary ➢ The City's General City Portfolio is of high credit quality and invested in U.S. Treasury, Federal Agency, commercial paper and municipal securities. ➢ The General City Portfolio continues to provide the City with favorable yield relative to the benchmark. At quarter end the portfolio had a Yield to Maturity at Cost of 0.30%, exceeding the Yield to Maturity of its benchmark the Merrill Lynch 1-Year U.S. Treasury Note Index by 19 basis points(0.19%). ➢ Our investment strategy was based on the view that interest rates will trend gradually higher as modest economic expansion in the U.S. continues. The Federal Reserve must eventually curtail its bond purchases and rates will begin to normalize from artificially low levels. The key pillars of our strategy included: • Keeping duration a bit shorter and more conservative than benchmarks, • Careful timing of purchases when rates were near the top of their recent range, • Emphasizing credit instruments (e.g. municipals) that will benefit from favorable credit market conditions and improving fundamentals, and • Making greater use of floating-rate instruments that are historically less susceptible to market risk when rates rise. ➢ Our expectations are that U.S. economic growth will continue, but Fed projections may prove too optimistic. We believe that the U.S. will not default on its debt, and Janet Yellen will be confirmed as the next Chair of the Federal Reserve and will continue Bernanke's accommodative monetary policies. ➢ Treasury yields will likely be range bound due to the unevenness of the economic recovery. The tradable range for Treasury yields will gradually rise as monetary policy accommodation is slowly removed. ➢ The current modestly conservative duration posture for portfolios will likely be maintained for the foreseeable future. Bouts of market weakness may be used to match monthly index extensions at favorable levels,when deemed appropriate. ➢ As always, we strive to maintain safety of principal and appropriate liquidity, while maximizing value through careful, prudent management. Our strategy will remain flexible and may change in response to changes in interest rates, economic data, market outlook or specific opportunities that arise. PFM Asset Management LLC Section B-1 City of Winter Springs,Florida Investment Report-Quarter Ended September 30,2013 The City's Investment Statistics Amortized Cost,', Amortized Cost''' Market Value"•'•' Market Value''' ration(Years) Account Name September 30,2013 June 30,2013 September 30,2013 June 30,2013 tember 30,2013 General City Account Portfolio $29,148,812.92 $29,119,608.11 $29,171,743.97 $29,122,353.50 0.86 Fidelity Institutional Money Market Fund Government Portfolio(Fund#257) 31,827.55 46,001.79 31,827.55 46,001.79 0.003 Money Market Fund-State Board of Administration Pool A 10.75 254,383.09 10.75 254,383.09 44 Days Money Market Fund-State Board of Administration Pool B 234,218.00 257,378.41 234,218.00 257,378.41 4.040 Bank of America Cash for Operation-depository 2,122,105.10 2,457,389.13 2,122,105.10 2,457,389.13 0.003 Water&Sewer 2000-Fidelity Institutional Money Market Fund Government Portfolio(Account#364) 716,803.24 716,785.17 716,803.24 716,785.17 0.003 Water&Sewer 2000-Money Market Fund-State Board of Administration Pool A 8,058.63 7,382.89 8,058.63 7,382.89 44 Days Water&Sewer 2000-Money Market Fund-State Board of Administration Pool B 6,797.65 7,469.83 6,797.65 7,469.83 4.040 Trial $32,268,633.84 $32,866,398.42 $32,291,564.89 $32,869,143.81 Yield to Maturity Yield to Maturity Yield to Maturity Yield to Maturity on Cost° on Cost° at Market Yield at Market Duration(Years) Account Name September 30,2013 June 30,2013 eptember 30,20 June 30,2013 June 30,2013 General City Account Portfolio 0.30% 0.29% 0.17% 0.29% 1.04 Fidelity Institutional Money Market Fund Government Portfolio(Fund#257) 0.01% 0.01% 0.01% 0.01% 0.003 Money Market Fund-State Board of Administration Pool A 0.18% 0.20% 0.18% 0.20% 43 Days Money Market Fund-State Board of Administration Pool B 0.00% 0.00% 0.00% 0.00% 3.980 Bank of America Cash for Operation-depository 0.20% 0.20% 0.20% 0.20% 0.003 Water&Sewer 2000-Fidelity Institutional Money Market Fund Government Portfolio(Account#364) 0.01% 0.01% 0.01% 0.01% 0.003 Water&Sewer 2000-Money Market Fund-State Board of Administration Pool A 0.18% 0.20% 0.18% 0.20% 43 Days Water&Sewer 2000-Money Market Fund-State Board of Administration Pool B 0.00% 0.00% 0.00% 0.00% 3.980 Weighted Average Yield 0.28% 0.27% 0.17% 0.27% Benchmarks e tember 30 June 30,2013 Merrill Lynch 1 Year U.S.Treasury Note Index' 0.11% 0.18% Notes 1.on a trade-date basis,lndoaln9 accrued Interest 2.In order o comply with GASB accrual accountng repo-frig requirements,forward setting trades are Included In the monthly balances. 3.Excludes any money market fund/ash balances held In eustodlan account 4.Past pehnnnance is not l ndlative of future resulfo. 5.Source Bloomberg Benchmark IS pursuant to the Investment Polley PFM Asset Management LLC Section B-2 City of Winter Springs, Florida Investment Report-Quarter Ended September 30,2013 General City Account Portfolio Composition and Credit Quality Characteristics Security Type' mber 30,2013 SIN of Portfolio June 30,2013 %of Portfolio U.S.Treasuries $15,854,593.07 54.29% $16,881,107.46 57.97% Federal Agencies 5,601,453.02 19.18% 5,594,438.09 19.21% Commercial Paper 6,721,414.88 23.02% 6,646,807.95 22.82% Certificates of Deposit 0.00 0.00% 0.00 0.00% Bankers Acceptances 0.00 0.00% 0.00 0.00% Repurchase Agreements 0.00 0.00% 0.00 0.00% Municipal Obligations 994,283.00 3.40% 0.00 0.00% Corporate Notes/Bonds 0.00 0.00% 0.00 0.00% Corporate Notes/Bonds-FDIC Insured 0.00 0.00% 0.00 0.00% Mortgage Backed 0.00 0.00% 0.00 0.00% Money Market Fund/Cash 31,828.00 0.11% 0.00 0.00% Totals $29,203,571.97 100.00% $29,122,353.50 100.00% Portfolio Composition Credit Quality Distributions AA Municipal as of 09/30/13 as of 09/30/13 1% Obligations 4% US. Treasuries A-1+(Short- 54% term) Commercial 76% 3% Paper 23% A-1 (Short- Federal term) Agency 20% Obligations 19% a \ Notes: 1.End of quarter trade-date market values of portfolio holdings,including accrued interest. 2.Credit rating of securities held in portfolio,exclusive of money market fund/LGIP.Standard&Poofs is the source of the credit ratings. PFM Asset Management LLC Section B-3 City of Winter Springs, Florida Investment Report-Quarter Ended September 30,2013 General City Account Portfolio Maturity Distribution Maturity Distribution' June 30,2013 Overnight (Money Market Fund) $31,8 . $0.00 Under 6 Months 13,381,460.83 6,646,807.95 6-12 Months 4,305,381.58 8,587,842.17 1-2 Years 11,484,901.56 13,887,703.38 2-3 Years 0.00 0.00 3-4 Years 0.00 0.00 4-5 Years 0.00 0.00 5 Years and Over 0.00 0.00 Totals $29,203,571.97 $29,122,353.50 Portfolio Maturity Distribution' 100% •September 30,2013 90% 80% ■June 30,2013 70% ' '., .2 0 60% d : 48% Tt 50% 46% 48/o O 39% 40% o 29% ' • 30% 23% m 1 20% 15% U 10%o 10/0 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Overnight Under 6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years 5 Years and Over J Notes: 1.Callable securities in portfolio are included in the maturity distribution analysis to their stated maturity date,although they may be called prior to maturity. PFM Asset Management LLC Section B-4 City of Winter Springs,Florida' Asset Allocation as of September 30,2013 Security Type' September 30,2013 September 30,2013 Notes Permitted by Policy United States Treasury Securities 15,838,17282 5022% 100% United States Government Agency Securities - 000% 75% United States'treasury Federal Instrumentalities 5,5962 0 60.04 1775% 80% S522%a 22°/ Mortgage-Backed Securities - 000% 0% FederallnstrumentaLtes Certificates of Deposit - 0 00% 25% 1775% Repurchase Agreements - 000% 50% Commeraal Paper 6,720,65904 2131% 30% Corporate Notes-FDIC Insured - 000% 50% Bankers'Acceptances - 000% 30% Bank of Amevice Cash for State and/or Local Government Debt(GO and Revenue 993721.02 3.150/0 20% Operation 6.73% Money Market Mutual Funds 266,05630 0.84% 100% CommeraalPaper Money Market Muwal Sands State and/or Local 2131% Intergovernmental Investment Pool - 000% 25% 0.84% GovemmeotDebt(GO and Bank of America Cash for Operation 2122,10510 673% 2 100% Revenue) 15% Individual Issuer Breakdown September 30,2013 September 30,2013 Notes Permitted by Policy Individual Issuer Breakdown ber30,2013 September 30,2013 Notes Permitted by Policy Government National Mortgage ASSOaation(GNMA) - 000% 50% Bank of Tokyo Mitsubishi Commeraal Paper 1,599,76800 507% 10% US Export-Import Bank(Ex-Im) - 000% 50% BNP Paribas Commercial Paper 2,298,158.61 729% 10% Farmers Home Administration(FMHA) - 000% 50% General Electric Commercial Paper 749,582 92 238% 10% Federal Finanang Bank - 000% 50% UBS Finance Commeraal Paper 99924750 317% 10% Federal Housing Administration(FHA) - 000% 50% HSBC USA Inc.Commercial Paper 1,073,901 11 341% 10% General Services Administration - 000% 50% Minnesota State GO Bond 818,721.02 200% 20% New Communities Act Debentures - 000% 50% University of California Taxable Revenue Bond 175,000.00 055% 20% US Public Housing Notes&Bonds - 000% 50% Fidelity Institutional Money Market Fund Government Portfolio(Fund 7257) 31,827 55 010% 2 25% US Dept.of Housing and Urban Development - 000% II 50% Money Market Fund-Florida Prime(SBA) 10.75 000% 2 25% Federal Fenn Credit Bank(FFCB) - 000% 25% Money Market Fund-Florida SBA Fund B 23421800 074% 2 N/A Federal Home Loan Bank(FHLB) 1,079,637 62 342% 25% Federal National Mortgage Association(FNMA) 3,915,811 75 1242% 25% Federal Home Loan Mortgage Corporation(FHLMC) 600,810.67 191% 25% Notes 1.Does not Include bond proceeds. 2.Managed by the City. 3.End of month trade-date amortized cost of portfolio holdings,including accrued interest. PFM Asset Management LLC Section C-1 City of Winter Springs,Florida Investment Report-Quarter Ended September 30,2013 TAB III PFM` Managed Account Summary Statement For the Month Ending September 30,2013 SPRINGS GENERAL CITY ACCOUNT-94730001 Transaction Summary-Managed Account Cash Transactions Summary-Managed Account Opening Market Value $29,042,840.26 Maturities/Calls 1,000,000.00 Maturities/Calls (1,000,000.00) Sale Proceeds 0.00 Principal Dispositions 0.00 Coupon/Interest/Dividend Income 31,281.76 Principal Acquisitions 1,073,763.75 Principal Payments 0.00 Unsettled Trades (5,386.72) Security Purchases (1,073,763.75) Change in Current Value (1,715.30) Net Cash Contribution 0.00 Reconciling Transactions 0.00 Closing Market Value $29,109,501.99 Earnings Reconciliation(Cash Basis)-Managed Account Cash Balance Interest/Dividends/Coupons Received 31,281.76 Closing Cash Balance $31,827.55 Less Purchased Interest Related to Interest/Coupons 0.00 Plus Net Realized Gains/Losses 1,300.00 Total Cash Basis Earnings $32,581.76 Earnings Reconciliation(Accrual Basis) Total Ending Amortized Value of Securities 29,086,570.94 Ending Accrued Interest 62,241.98 Plus Proceeds from Sales 181,646.62 Plus Proceeds of Maturities/Calls/Principal Payments 1,000,000.00 Plus Coupons/Dividends Received 31,281.76 Less Cost of New Purchases (1,248,763.75) Less Beginning Amortized Value of Securities (29,034,163.57) Less Beginning Accrued Interest (71,532.63) Total Accrual Basis Earnings $7,281.35 Account 94730001 Page 1 PFM Asset Management LLC Portfolio Summary and Statistics For the Month Ending September 30,2013 WINTER SPRINGS GENERAL CITY ACCOUNT-94730001 Account Summary Sector Allocation Description Par Value Market Value Percent U.S.Treasury Bond/Note 15,630,000.00 15,817,018.54 54.34 Commercial Paper 23.09% Municipal Bond/Note 925,000.00 988,033.00 3.39 sae.. Federal Agency Bond/Note 5,530,000.00 5,583,035.57 19.18 Commercial Paper 6,725,000.00 6,721,414.88 23.09 Managed Account Sub-Total 28,810,000.00 29,109,501.99 100.00% . �����. �a Accrued Interest 62,241.98 Total Portfolio 28,810,000.00 29,171,743.97 Unsettled Trades 175,000.00 174,695.50 Fed Agy Bond/ Note 19.18% Muni Bond/Note US TSY Bond/Note 3.39% 54.34% Maturity Distribution Characteristics 39.25% Yield to Maturity at Cost 0.30% 35.14% Yield to Maturity at Market 0.17% 25.61% Duration to Worst 0.86 Weighted Average Days to Maturity 317 0.00% 0.00% 0.00% 0.00% 0-6 Months 6-12 Months 1-2 Years 2-3 Years 3-4 Years 4-5 Years Over5 Years Account 94730001 Page 2 PFM Asset Management LLC Managed Account Issuer Summary For the Month Ending September 30,2013 WINTER SPRINGS GENERAL CITY ACCOUNT-94730001 Issuer Summary Credit Quality(S&P Ratings) Market Value Issuer of Holdings Percent A-1 BNP PARIBAS 2,298,904.00 7.90 20.51% FANNIE MAE 3,902,604.65 13.41 A-1+ ®®®®®®®®� FEDERAL HOME LOAN BANKS 1,080,463.32 3.71 m��������� 2.58%AA FREDDIE MAC 599,967.60 2.06 0.60% GENERAL ELECTRIC CO 749,766.00 2.58 HSBC HOLDINGS PLC 1,073,582.08 3.69 ST 813,337.50 2.79 MITSUBISHI UFJ FINANCIAL GROUP INC 1,599,860.80 5.50 UBS AG 999,302.00 3.43 UNITED STATES TREASURY 15,817,018.54 54.33 UNIVERSITY OF CALIFORNIA 174,695.50 0.60 Total $29,109,501.99 100.00% AA+ 76.31% Account 94730001 Page 3 PFM Asset Management LLC Managed Account Detail of Securities Held For the Month Ending September 30,2013 WINTER SPRINGS GENERAL CITY ACCOUNT-94730001 Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value U.S.Treasury Bond/Note US TREASURY NOTES 9128285B7 305,000.00 AA+ Aaa 02/08/12 02/09/12 304,964.26 0.26 128.46 304,993.96 305,214.42 DTD 01/31/2012 0.250%01/31/2014 US TREASURY NOTES 9128285G6 3,200,000.00 AA+ Aaa 03/13/12 03/15/12 3,195,125.00 0.33 685.08 3,198,977.28 3,202,624.00 DTD 02/29/2012 0.250%02/28/2014 US TREASURY NOTES 9128281U8 3,125,000.00 AA+ Aaa 06/27/12 06/29/12 3,203,002.93 0.32 150.24 3,147,060.22 3,151,243.75 DTD 03/31/2009 1.750%03/31/2014 US TREASURY NOTES 9128285W1 1,900,000.00 AA+ Aaa 11/29/12 12/05/12 1,900,222.66 0.24 1,596.31 1,900,099.41 1,902,078.60 DTD 05/31/2012 0.250%05/31/2014 US TREASURY NOTES 912828TF7 1,910,000.00 AA+ Aaa 11/01/12 11/05/12 1,905,001.17 0.28 402.24 1,907,607.19 1,910,446.94 DTD 07/31/2012 0.125%07/31/2014 US TREASURY NOTES 912828LK4 480,000.00 AA+ Aaa 12/18/12 12/19/12 497,193.75 0.26 976.24 489,262.44 489,881.25 DTD 08/31/2009 2.375%08/31/2014 US TREASURY NOTES 912828NF3 4,710,000.00 AA+ Aaa 06/03/13 06/04/13 4,880,553.52 0.30 33,635.96 4,852,597.79 4,855,529.58 DTD 06/01/2010 2.125%05/31/2015 Security Type Sub-Total 15,630,000.00 15,886,063.29 0.30 37,574.53 15,800,598.29 15,817,018.54 Municipal Bond/Note UNIV OF CAL TXBL REV BONDS 91412GSW6 175,000.00 AA Aal 09/26/13 10/02/13 175,000.00 0.53 0.00 175,000.00 174,695.50 DTD 10/02/2013 0.528%05/15/2015 MN ST T/E GO BONDS 604129D78 750,000.00 AA+ Aal 08/07/13 08/12/13 817,140.00 0.43 6,250.00 812,471.02 813,337.50 DTD 08/16/2012 5.000%08/01/2015 Security Type Sub-Total 925,000.00 992,140.00 0.45 6,250.00 987,471.02 988,033.00 Federal Agency Bond/Note FNMA GLOBAL NOTES 31398AZV7 1,750,000.00 AA+ Aaa 12/14/12 12/14/12 1,828,925.00 0.28 16,716.15 1,796,393.59 1,799,078.75 DTD 10/26/2009 2.625%11/20/2014 FEDERAL HOME LOAN BANK GLOBAL NOTES 313381H24 1,080,000.00 AA+ Aaa 01/30/13 02/04/13 1,078,606.80 0.32 562.50 1,079,075.12 1,080,463.32 DTD 12/05/2012 0.250%01/16/2015 Account 94730001 Page 4 PFM Asset Management LLC Managed Account Detail of Securities Held For the Month Ending September 30,2013 WINTER SPRINGS GENERAL CITY ACCOUNT-94730001 _ Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Dated Date/Coupon/Maturity CUSIP Par Rating Rating Date Date Cost at Cost Interest Cost Value Federal Agency Bond/Note FANNIE MAE GLOBAL NOTES 3135G0HG1 2,100,000.00 AA+ Aaa 03/27/13 04/01/13 2,103,192.00 0.30 328.13 2,102,373.88 2,103,525.90 DTD 02/06/2012 0.375%03/16/2015 FREDDIE MAC(CALLABLE)GLOBAL NOTES 3134G42V9 600,000.00 AA+ Aaa 04/29/13 04/30/13 600,000.00 0.32 810.67 600,000.00 599,967.60 DTD 04/29/2013 0.320%04/29/2015 Security Type Sub-Total 5,530,000.00 5,610,723.80 0.30 18,417.45 5,577,842.59 5,583,035.57 Commercial Paper BANK OF TOKYO MITSUBISHI COMM PAPER 06538BXM0 1,600,000.00 A-1 P-1 04/24/13 04/24/13 1,597,920.00 0.26 0.00 1,599,768.90 1,599,860.80 -- 0.000%10/21/2013 BNP PARIBAS FINANCE INC COMM PAPER 0556N0Z24 1,000,000.00 A-1 P-1 06/27/13 06/27/13 998,463.89 0.35 0.00 999,397.22 999,697.00 -- 0.000%12/02/2013 GENERAL ELEC CAP CORP COMM PAPER 36959HZX8 750,000.00 A-1+ P-1 07/03/13 07/05/13 749,179.58 0.22 0.00 749,582.92 749,766.00 -- 0.000%12/31/2013 BNP PARIBAS FINANCE INC COMM PAPER 0556N1A78 1,300,000.00 A-1 P-1 07/11/13 07/11/13 1,297,725.00 0.35 0.00 1,298,761.39 1,299,207.00 -- 0.000%01/07/2014 UBS FINANCE DELAWARE LLC COMM PAPER 90262DB79 1,000,000.00 A-1 P-1 08/12/13 08/12/13 998,955.83 0.21 0.00 999,247.50 999,302.00 -- 0.000%02/07/2014 HSBC USA INC COMM PAPER 40427SCA5 1,075,000.00 A-1 P-1 09/11/13 09/11/13 1,073,763.75 0.23 0.00 1,073,901.11 1,073,582.08 -- 0.000%03/10/2014 Security Type Sub-Total 6,725,000.00 6,716,008.05 0.27 0.00 6,720,659.04 6,721,414.88 Managed Account Sub-Total 28,810,000.00 29,204,935.14 0.30 62,241.98 29,086,570.94 29,109,501.99 Securities Sub-Total $28,810,000.00 $29,204,935.14 0.30% $62,241.98 $29,086,570.94 $29,109,501.99 Accrued Interest $62,241.98 Total Investments $29,171,743.97 Bolded items are forward settling trades. Account 94730001 Page 5 PFM Asset Management LLC Managed Account Fair Market Value&Analytics For the Month Ending September 30,2013 WINTER SPRINGS GENERAL CITY ACCOUNT-94730001 _all 1116__AIM Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective Duration YTM Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost Duration to Worst at Mkt U.S.Treasury Bond/Note US TREASURY NOTES 9128285B7 305,000.00 BNP PARI 100.07 305,214.42 250.16 220.46 0.33 0.33 0.04 DTD 01/31/2012 0.250%01/31/2014 US TREASURY NOTES 9128285G6 3,200,000.00 CITIGRP 100.08 3,202,624.00 7,499.00 3,646.72 0.42 0.42 0.05 DTD 02/29/2012 0.250%02/28/2014 US TREASURY NOTES 912828KJ8 3,125,000.00 BNP PARI 100.84 3,151,243.75 (51,759.18) 4,183.53 0.50 0.50 0.07 DTD 03/31/2009 1.750%03/31/2014 US TREASURY NOTES 9128285W1 1,900,000.00 GOLDMAN 100.11 1,902,078.60 1,855.94 1,979.19 0.67 0.67 0.09 DTD 05/31/2012 0.250%05/31/2014 US TREASURY NOTES 912828TF7 1,910,000.00 BNP PARI 100.02 1,910,446.94 5,445.77 2,839.75 0.83 0.83 0.10 DTD 07/31/2012 0.125%07/31/2014 US TREASURY NOTES 912828LK4 480,000.00 BNP PARI 102.06 489,881.25 (7,312.50) 618.81 0.91 0.91 0.13 DTD 08/31/2009 2.375%08/31/2014 US TREASURY NOTES 912828NF3 4,710,000.00 CITIGRP 103.09 4,855,529.58 (25,023.94) 2,931.79 1.63 1.63 0.27 DTD 06/01/2010 2.125%05/31/2015 Security Type Sub-Total 15,630,000.00 15,817,018.54 (69,044.75) 16,420.25 0.90 0.90 0.13 Municipal Bond/Note UNIV OF CAL TXBL REV BONDS 91412GSW6 175,000.00 BARCLAYS 99.83 174,695.50 (304.50) (304.50) 1.61 1.61 0.64 DTD 10/02/2013 0.528% 05/15/2015 MN ST T/E GO BONDS 604129D78 750,000.00 CITIGRP 108.45 813,337.50 (3,802.50) 866.48 1.76 1.76 0.38 DTD 08/16/2012 5.000%08/01/2015 Security Type Sub-Total 925,000.00 988,033.00 (4,107.00) 561.98 1.73 1.74 0.43 Federal Agency Bond/Note FNMA GLOBAL NOTES 31398AZV7 1,750,000.00 SOC GEN 102.80 1,799,078.75 (29,846.25) 2,685.16 1.12 1.12 0.16 DTD 10/26/2009 2.625%11/20/2014 FEDERAL HOME LOAN BANK GLOBAL 313381H24 1,080,000.00 NOMURA 100.04 1,080,463.32 1,856.52 1,388.20 1.29 1.29 0.22 NOTES DTD 12/05/2012 0.250%01/16/2015 FANNIE MAE GLOBAL NOTES 3135G0HG1 2,100,000.00 BARCLAYS 100.17 2,103,525.90 333.90 1,152.02 1.46 1.46 0.26 DTD 02/06/2012 0.375%03/16/2015 • Account 94730001 Page 6 PFM Asset Management LLC Managed Account Fair Market Value&Analytics For the Month Ending September 30,2013 WINTER SPRINGS GENERAL CITY ACCOUNT-94730001 _all 1116__AIM Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective Duration YTM Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost Duration to Worst at Mkt Federal Agency Bond/Note FREDDIE MAC(CALLABLE)GLOBAL NOTES 3134G42V9 600,000.00 MORGANST 10/29/13 99.99 599,967.60 (32.40) (32.40) 1.41 1.57 0.32 DTD 04/29/2013 0.320%04/29/2015 Security Type Sub-Total 5,530,000.00 5,583,035.57 (27,688.23) 5,192.98 1.31 1.33 0.23 Commercial Paper BANK OF TOKYO MITSUBISHI COMM 06538BXM0 1,600,000.00 BTM_DIR 99.99 1,599,860.80 1,940.80 91.90 0.06 0.06 0.15 PAPER -- 0.000%10/21/2013 BNP PARIBAS FINANCE INC COMM PAPER 0556N0Z24 1,000,000.00 WELLSFAR 99.97 999,697.00 1,233.11 299.78 0.17 0.17 0.17 -- 0.000%12/02/2013 GENERAL ELEC CAP CORP COMM PAPER 36959HZX8 750,000.00 GECC 99.97 749,766.00 586.42 183.08 0.25 0.25 0.12 -- 0.000%12/31/2013 BNP PARIBAS FINANCE INC COMM PAPER 0556N1A78 1,300,000.00 BNP PARI 99.94 1,299,207.00 1,482.00 445.61 0.27 0.27 0.22 -- 0.000%01/07/2014 UBS FINANCE DELAWARE LLC COMM 90262DB79 1,000,000.00 UBS AG 99.93 999,302.00 346.17 54.50 0.36 0.36 0.19 PAPER -- 0.000%02/07/2014 HSBC USA INC COMM PAPER 40427SCA5 1,075,000.00 WELLSFAR 99.87 1,073,582.08 (181.67) (319.03) 0.44 0.44 0.30 -- 0.000%03/10/2014 Security Type Sub-Total 6,725,000.00 6,721,414.88 5,406.83 755.84 0.24 0.24 0.19 Managed Account Sub-Total 28,810,000.00 29,109,501.99 (95,433.15) 22,931.05 0.86 0.86 0.17 Securities Sub-Total $28,810,000.00 $29,109,501.99 ($95,433.15) $22,931.05 0.86 0.86 0.17% Accrued Interest $62,241.98 Total Investments $29,171,743.97 Bolded items are forward settling trades. Account 94730001 Page 7 PFM Asset Management LLC PFM° Managed Account Security Transactions&Interest For the Month Ending September 30,2013 RINGS GENERAL CITY ACCOUNT-94730001 Transaction Type Principal Accrued Realized G/L Realized G/L Sale Trade Settle Security Description CUSIP Par Proceeds Interest Total Cost Amort Cost Method BUY 09/11/13 09/11/13 HSBC USA INC COMM PAPER 40427SCA5 1,075,000.00 (1,073,763.75) 0.00 (1,073,763.75) -- 0.000%03/10/2014 09/26/13 10/02/13 UNIV OF CAL TXBL REV BONDS 91412GSW6 175,000.00 (175,000.00) 0.00 (175,000.00) DTD 10/02/2013 0.528% 05/15/2015 Transaction Type Sub-Total 1,250,000.00 (1,248,763.75) 0.00 (1,248,763.75) INTEREST 09/03/13 09/03/13 MONEY MARKET FUND MONEY0002 0.00 0.00 0.51 0.51 09/16/13 09/16/13 FANNIE MAE GLOBAL NOTES 3135G0HG1 2,100,000.00 0.00 3,937.50 3,937.50 DTD 02/06/2012 0.375%03/16/2015 09/30/13 09/30/13 US TREASURY NOTES 9128281U8 3,125,000.00 0.00 27,343.75 27,343.75 DTD 03/31/2009 1.750%03/31/2014 Transaction Type Sub-Total 5,225,000.00 0.00 31,281.76 31,281.76 MATURITY 09/11/13 09/11/13 TOYOTA MOTOR CREDIT CORP COMM 89233GWB8 1,000,000.00 1,000,000.00 0.00 1,000,000.00 1,300.00 0.00 PAPER -- 0.000%09/11/2013 Transaction Type Sub-Total 1,000,000.00 1,000,000.00 0.00 1,000,000.00 1,300.00 0.00 SELL 09/25/13 10/02/13 US TREASURY NOTES 912828NF3 175,000.00 180,386.72 1,259.90 181,646.62 (950.19) 97.23 SPEC LOT DTD 06/01/2010 2.125% 05/31/2015 Transaction Type Sub-Total 175,000.00 180,386.72 1,259.90 181,646.62 (950.19) 97.23 Managed Account Sub-Total (68,377.03) 32,541.66 (35,835.37) 349.81 97.23 Total Security Transactions ($68,377.03) $32,541.66 ($35,835.37) $349.81 $97.23 Bolded items are forward settling trades. Account 94730001 Page 8 PFM Asset Management LLC