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Home My WebLink About4.09 InvestmentRpt3rdQtr CITY CLERK AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 20, 2004 SUBJECT: City Treasurer's Investment Report for 3'rd Quarter 2003-2004 Report Prepared by Fred W. Marsh, Finance Manager and Lisa Hisatomi, Administrative Analyst II ATTACItMENTS: Quarterly Investment Report (Mm'ch 31, 2004) Section I - Primary Investment Portfolio Section II - Listing of Supplemental Monies Under City Possession and/or Control RECOMMENDATION~ Receive Report DESCRIPTION: The attached Investment Report details the City's investments as of March. 31., 2004, in accordance with the Local Agency Investment GuidelineS established by the State Treasurer. Section. I of the Report focuses on the principal investment portfolio. Section II details funds held by Trustees and miscellaneous operating accounts. The focus of the discUSsion in this report will be upon activity in the Primary Investment Portfolio. Changes in the investment portfolio and investment activity for the third quarter of Fiscal Year 2003-2004 are discussed in the staff report below. INVESTMENT ACTIVITY DURING THE QUARTER During the third quarter two investments matured or were called due to the decline in interest rates that occurred during the quarter, as summarized in the table below: INVESTMENTS MATURED OR CALLED DURING THE THIRD QUARTER FY 2003-2004 Type Value at Maturib/ Maturity Date Current Yield FHLB $5,000,000 6/30/2006 2.260% FHLB $5,000,000 3/26/2007 3.450% The City received the full face amount of the investments that were called plus any accrued interest. Both of these investments were called between March 26th and March 31st, 2004. The proceeds from these investments were temporarily placed in the Union Bank Government Securities money market account and will be invested in U.S. Government Securities during the month of April, 2004. Other available funds were used to purchase two new securities during the period, as summarized in the table on the following page: COPIES TO: ~ Document in quarterly investment report worksheets ITEM NO. __ INVESTMENTS PURCHASED DURING THE THIRD QUARTER FY 2003-2004 Type , Value at Maturity Maturity Date Current Yield Call Date FHLB $4,480,0001 1/2/2007 2.990% 6/3/04 FHLB $2,000,000 5/18/2007 2.980%! 8/18/04 In the most recent quarter the average maturity for the Federal Security portion of the portfolio is estimated at 3,2 years. It is important to note that this relates solely to the portion of the portfolio that has investments with a stated term. The City maintains adequate funds in more liquid investments, which are deemed sufficient to meet cash flow needs. DETAILED LISTING OF PRIMARY PORTFOLIO Government and Agency Securities represent 39% of the Primary Portfolio. A detailed listing of each security is provided in Section 1. The market value of Federal Securities can fluctuate daily and values have been provided as reported by Union Bank of California as of March 31, 2004. The City portfolio assumes that the investments will be held to maturity and there is not an active attempt made to trade existing securities. The City has staggered the maturity dates within the portfolio and it is not anticipated that these funds will need to be called by the City prior to maturity. The Morgan Stanley Dean Witter US Government Securities Mutual Fund Investment represents 2% of the City's total portfolio. During the 2003-2004 Fiscal Year the City has received to date $39,327 in dividends from this investment, resulting in an annualized yield of 3.700%. Since October 1999, the mutual fund may be redeemed without sales charges. COMPOSITION OF PORTFOLIO - SOURCE OF FUNDS To provide an overview of the portfolio, the table below shows the total investment balance as of March 31, 2004 by soUrce. Comparison information is also shown for the previous quarter. Note that approximately 33% of the investment balance represents restricted Impact Fee Funds. It is important to keep in mind that this type of report is merely a snapshot on a particular day. Revenues as well as expenditUres are not processed in equal monthly installments. PORTFOLIO COMPOSITION BY SOURCE OF FUNDS 3/31/2004 % of 12/31/2003 % of Balance Total Balance Total General Fund $51,784,027 54.2% $49,429,633 52.5% Restricted - Special Revenue Funds $3,494,536 3.7% $3,844,672 4.1% (I.e. Gas Tax, Special Taxes) Restricted - Assessment District Funds $509,577 0.5% $680,385 0.7% (i.e. Landscape Maint & Debt Service) Restricted - Impact Fees $31,988,261 33.4% $32,654,665 34.7% Internal Service / Replacement Funds $7,871,847 8.2% __ $7,533,327 8.0% TOTAL $95,648,248 100.0% $94,142,682 100.0% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is $1,505,566 more than the amount shown at December 31, 2003. Overall, the combined rate for the total portfolio decreased from 2.276% at December 31, 2003 to 2.133% at Ma:rch 31, 2004. The decrease was attributable ~ to the maturing and calling of the federal securities noted above and decrease in the Local Agency Investment Fund (LAIF) rate noted below. The quarterly average for the City's LAIF investment was 1.48% as of March 31, 2004, which was lower than the 1.56% rate recorded for the quarter ending December 31., 2003. The schedule of investments, including the dates of maturity, contains adequate cash flow liquidity to meet anticipated expenditures over the next six months. The investments and the schedule of investments are in compliance with the City's investment policy and all applicable laws and regulations. CITY OF DUBLIN QUARTERLY INVESTMENT. REPORT 3rd QUARTER FY 2003-2004 SECTION 1 PRIMARY INVESTMENT PORTFOLIO CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN March 31, 2004 COUPON BOOK AND MATURITY VALUE AT INTEREST CURRENT MARKET INVESTMENT 1ST CALL DATE DATE MATURITY RATE YIELD VALUE FEDERAL SECURITIES FIqLB 12/15/2004 1 3,000,000 3.875% 3.800% 3,058,140 FHLB 8/26/04 8/26/2005 2 2,000,000 2.325% 2.310% 2,008,720 FNMA 7/2/04 12/29/2006 3 3,520,000 3.000% 2.990% 3,534,291 FI-ILB 6/3/04 1/2/2007 3 4,480,000 3.000% 2.990% 4,496,800 FHLMC 1/3/2007 3 500,000 6.525% 5.840% 558,280 FFCB 1/23/2007 3 421,000 4.600% 4.330% 447,708 FHLB 2/15/2007 3 4,000,000 4.875% 4.540% 4,292,520 FHLB 8/18/04 5/18/2007 4 2,000,000 3.000% 2.980% 2,012,500 FHLMC 9/10/04 9/10/2007 4 5,000,000 3.650% 3.610% 5,055,500 FHLB 12/24/03 6/24/2008 5 9,000,000 3.100% 3.100% 9,000,000 FHLB 9/30/03 6/30/2008 5 1,000,000 3.200% 3.180% 1,005,000 FHLB 6/29/04 12/3/2008 5 2,180,000 4.000% 3.980% 2,189,548 TOTAL FEDERAL SECURITIES $37,101,000 3.413% $37,659,007 MUTUAL FUNDS Nations Bank Government Reserves $5,947,187 0.880% $5,947,187 Capital Fund Union Bank U.S. Govt Securities $10,371,327 0.550% $10,371,327 Morgan Stanley Dean Witter U.S. Govt Securities See Note 1 3.700% (2) $1,671,621 TOTAL MUTUAL FUNDS 0.940°/6 $17,990,135 POOLED PUBLIC AGENCY INVESTMENTS State of CA.- Local Agency Investment Fund (LAIF) $39,999,106 1.480% $39,999,106 TOTAL INVESTED PORTFOLIO 2.133°/o $95,648,248 NOTES: (1) A Mutual Fund investment does not have a stated date of maturity and shares may be sold at any time. The share price at the time of a sale may be either higher or lower than the original cost. (2) Interest Rate shown is based on dividends received this fiscal year to date, which are annualized and then divided by the original investment. Maturity Schedule Summary of Portfolio (Assuming None of Securites are called prior to Maturity) Money Market Funds/LAIF (1 day liquidity) $57,989,241 61% Maturing in 1 year or less $3,058,140 3% Maturing in 1-2 years $2,008,720 2% Maturing in 2-3 years $13,329,599 14% Maturing in 3-4 years $7,068,000 7% Maturing in 4-5 years $12,194,548 13% Total Portfolio $95,648,248 100% 4/6/2004 11.'18AM ITEM 1 CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE. March 31, 2004 BOOK AND AVERAGE MARKET % OF MATURITY TYPE OF INSTRUMENT VALUE PORTFOLIO YEARS Federal Home Loan Bank (FHLB) 28,063,228 29.1% 3.2 Federal Farm Credit Bureau (FFCB) 447,708 0.4% 2.8 Federal National Mortgage Assn (FNMA) 3,534,291 3.7% 2.7 Federal Home Loan Mortgage Corporation (FHLMC) 5,613,780 5.8% 3.4 SUB -TOTAL GOVT/AGENCY 37,659,007 O) 39.0% 3.2 Mutual Funds Morgan Stanley Dean Witter U.S. Govt Securities 1,671,621 (z) 1.7% N/A Union Bank U.S. Govt Securities 10,371,327 10.9% N/A Nations Bank Government Reserves Capital Fund 5,947,187 6.3% N/A LAIF 39,999,106 42.1% N/A GRAND TOTAL $95,648,248 100.0% NOTES: (1) The City imends to hold the investments until maturity or until market values equal or exceed their face value. (2) As a mutual Fund shares can typically be liquidated at any time. The weighted average maturity stated in this chart by Dean Witter based upon all investment instruments owned by the U.S. Govemment Securities MUtual Fund. 4/6/200411:06 AM ..... I TE M 2 CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 3rd QUARTER FY 2003-2004 SECTION 11 LISTING OF SUPPLEMENTAL MONIES UNDER CITY POSSESSION AND/OR CONTROL OPERATING FUNDS SPECIAL FUNDS HELD BY TRUSTEES City of Dublin Report of ~'- ~ Co Operating Funds On Hand As of March 31, 2004 In accordance with the California Government Code, the City Treasurer must disclose on a quarterly basis all monies in its possession. Monies considered invested, and not immediately necessary for current operations, are presented in a separate listing as part o£the quarterly report. In the case of Operating Funds in bank accounts, the amount presented relates to the balance reported by the Financial Institution. IT IS IMPORTANT TO NOTE THAT THIS AMOUNT MAY REFLECT FUNDS REQUIRED TO COVER PAYMENTS ALREADY ISSUED AND CHECKS WHICH HAVE NOT CLEARED AS OF THE LAST DAY OF THE QUARTER. Therefore, these balances will fluctuate throughout the year. These funds are not subject to a specified maturity and the par value would be equivalent to the amount stated. Miscellaneous Cash Balance Non-Categorized - Cash 03/31/2004 Cash Registers/Petty Cash City $1,325.00 Petty Cash - Shannon Center $200.00 Subtotal $1,525.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS Balance 03/31/2004 BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With $117,630 California Government Code NATIONS BANK U.S. Treasury Reserves Adviser $1,486,051 Account (Sweep Account connected to Bank of America Deposits listed above) Cai Fed- Regular Savings Account: FDIC Insured $3,590 Grand Total Amount Cash Balances: $1,607,271