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HomeMy WebLinkAboutItem 6 PPP 02-19-2020 Admin Committee - InvestmentsInvestment Performance Results OCSD Reserves & Investments Wally Ritchie, ControllerAdministration CommitteeFebruary 19, 2020 Seven Reserve Criteria 1)Next Year's Dry Period (Cash Flow Reserve) –50% of the Operating Budget 2)Operating Contingencies –10% of Operating Budget 3)Next Year's Dry Period Debt Service –100% of August COP Debt Service 4)Capital Improvement Reserve –50% of average CIP balance to 2030 5)Debt Service Reserve –10% of the Outstanding COPs 6)Operating & Capital Share of Catastrophe Funds 7)Replacement and Refurbishment –2% Per Year Non-Discretionary Criteria 1)Next Year's Dry Period (Cash Flow Reserve) –50% of the Operating Budget 3)Next Year's Dry Period Debt Service –100% of August COP Debt Service 5)Debt Service Reserve –10% of the Outstanding COPs Discretionary Reserve Criteria 2)Operating Contingencies –10% of Operating Budget 4)Capital Improvement Reserve –50% of average CIP balance to 2030 6)Operating & Capital Share of Catastrophe Funds 7)Replacement and Refurbishment –2% Per Year OCSD Investments Investment Objectives First •Provide safety of principal Second •Provide sufficient liquidity Third •Earn a commensurate rate of return consistent with the constraints imposed by the objectives listed above OCSD has Two Major PortfoliosLong-Term and Short Term The Orange County Sanitation District’s Investment Policy is consistent with California Government Code Long-Term •Compares to the ICE BAML 1-5 Year Corporate Government Rated AAA –A Index Short-Term •Compares to the 3-month T-Bill rate Operates with a maximum maturity of one year Long-Term Portfolio – Asset Allocation •Approximately $580 million Category Percent US Treasury 35% Agency 23% US Corporate 21% Asset Backed Sec 8% Other 7% Supranational 6% Total 100% Long-Term Portfolio – Performance Average Market Yield December 31, 2019 2.74% Benchmark 2.67% September 30, 2019 2.82% Short-Term Portfolio –Asset Allocation •Approximately $176 million Category Percent US Treasury 78% US Corporate 7% Agency 6% Commercial Paper 3% Money Market 3% Negotiable CDs 2% Supranational 1% Total 100% Short-Term Portfolio – Performance Average Market Yield December 31, 2019 1.68% Benchmark 1.50% September 30, 2019 2.01% Questions?