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Home My WebLink About4.02 InvestmentRpt2ndQtr CITY CLERK File # D0[2J[QJ-b3][Q] CITY AGENDA STATEMENT COUNCIL MEETING DATE: February 1, 2005 SUBJECT: City Treasurer's Investment Report for 2nd Quarter 2004-2005 Report Prepared by Carole A. Perry, Administrative Services Director and Fred W Marsh, Finance Manager ATTACHMENTS: Quarterly Investment Report (December 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 December 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 1l details funds held by Trustees and miscellaneous operating accounts. The focus of the discussion in this report wj]] be upon activity in the Primary Investment Portfolio. Changes in the investment portfolio and investment activity for the second quarter of Fiscal Year 2004-2005 are discussed in the staff report below. INVESTMENT ACTIVITY DURING THE OUARTER During the second 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 CALLED OR MATURED DURING nIB SECOND QUARTER - ..1':lIJe FHLB FHLB Value at Maturitv $3 000 000 $2,500 000 Maturity Date 12/15/2004 11/13/2008 Current Yield _.~ 3.875%. 4.070% The City received the full face amount of the investments that were called plus any accrued interest. The proceeds from these investments, along with other available funds, were used to purchase three new securities during the period, as summarized in the table below: INVESTMENTS PURCHASED DURING THE SECOND QUARTER T )e FHLB FHLB FHLB Value at Maturitv $5,000,000 $3 000 000 $5,00.9¡J00 Maturity Date 10/20/2006 12/14/2006 10/19/2009 Current Yield 3.010% 3.350% 4.250% Call Date 4/20/05 6/14/05 -" 4/19/05 ~~~~~~~:~n-~~:r~~r~:~~:'~::~~t-,~~~~:~~~~~,~~,~~~;~~~~-;;;-----------------------~~::-::~---4~2 1%3 ~ In the most recent quarter the average maturity for the Federal Security portion of the portfolio is estimated at 3 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 60% of the Primary Portfolio. A detailed listing of each security is provided in Section I. The market value of Federal Securities can fluctuate daily and values have been provided as reported by Union Bank of California as of December 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 2004-2005 Fiscal Year the City has received to date $28,983 in dividends from this investment, resulting in an annualized yield of 4.362%. 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 Decenlber 31, 2004 by source. Comparison information is also shown for the previous quarter. Note that approximately 36% 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 wel1 as expenditures are not processed in equal monthly instal1ments. PORTFOLIO COMPOSITION BY SOURCE OF FUNDS 2/3 1/2004 % of 9/3012004 % of Balance Total Balance Total General fund $54,393,911 5 LPVc, $50,537,867 49.9% Restricted ~ Special Revenue Funds S5,047,912 4.7% S4,006,390 4.0% (I.e. Gas Tax, Special Ta,e,) RestrÎcted ~ Assessment District Funds $598,031 0.6% $358,870 0.4% (i.e. Landscape Maint & Debt Service) Restricted - Impact Fees $38,100,071 35.8% $38,142,269 37.8% Internal Service I Replacement fund$ $8,245,926 7.8% $7,958,413 7.9% TOTAL $106385,851 100,0% $tOl,Om,ß09 100.0% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is approximately $5.4 mil1ion more than the amount shown at September 30, 2004 due to the receipt of property taxes from Alanleda County. Ovcral1, the combined rate for the total portfolio increased from 2.706% at September 30,2004 to 2.912% at December 31, 2004. The increase was attributable primarily to an increase in the rate of return on the City's investments in LAlF as well as the purchase of the three federal securities mentioned earlier in this report. The quarterly average for the City's LAlF investment was 2,01% as of December 31, 2004, which was higher than the 1.68% rate recorded for the quarter ending September 30, 2004. J.~3 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 arc in compliance with the City's investment policy and all applicable laws and regulations. RECOMMENDATION: Staff recommends that Council receive this report. 3q,3 \ ~l.Q CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 2nd QUARTER FY 2004-2005 SECTION I PRIMARY INVESTMENT PORTFOLIO ';))i '0 5" IIEM 4.2. CITY OF DUBUN DETAILED LISTING OF INVESTMENTS d- Db'-..O INCLUDING RATE OF REl1JRN December 31, 2004 COUPON BOOK AND MATURITY VAI.UE AT INTEREST CURRENT MARKET INVESTMENT 1ST CALI. DATE DATE MATURITY RATE YIELD VALUE FEDERAL SECURITIES FHLB 4/20/05 10/20/2006 2 5,000,000 3,000% 3_010% 4,979,700 FHLB 6114/05 12/14/2006 2 3,000,000 3,350% 3_350% 3,000,930 FNMA 7/2/04 12/29/2006 2 3,520,000 3,000% 3.020% 3,50 I ,309 FliLß 6/3/04 1/212007 3 4,480,000 3.000% 3.020% 4,454,822 FHLMC 1/3/2007 3 500,000 6525% 6.120% 531,250 FFCB 1123/2007 3 421,000 4,600% 4.480% 432,051 FHLB 211512007 3 4,000,000 4,875% 4.720% 4,126,240 fllLB 10/27/04 4127/2007 3 3,000,000 3.150% 3.170% 2,985,930 FNMA 8111/04 5111/2007 3 3,000,000 3.250% 3.260% 2,990,640 FHLB 8118/04 5118/2007 3 2,000,000 3.000% 3.030% 1,984,380 FHLB 2/11105 2/1112008 4 2,500,000 3.420% 3.440% 2,492,200 FHLMC 4/27/05 4/28/2008 4 5,000,000 3.500% 3.510% 4,988,250 FHLB 12/24103 6/24/2008 4 9,000,000 3,100% 3.160% 8,845,290 FHLß 9/30/03 6/30/2008 4 1,000,000 .1.200% 3.250% 985,940 FHLMC 10/7/04 10/7/2008 4 5,000,000 3.300% 3,350% 4,936,800 FHLB 6/29/04 12/3/2008 4 2,180,000 4.000% 4.030% 2,178,648 FNMA 7/7/04 4/7/2009 5 5,000,000 3,550% 3.600% 4,943,750 FHLB 4/19105 10/19/2009 5 5,000,000 4_250% 4,250% 5,009,400 TOTAL FEDERAL SECURITIES $63,601,000 3.476% $63,367,530 MUTUAL FUNDS 3,313,490 See Note I 1.964% $274,187 1.760% $3,313,490 4.362% (2) $1,626,782 2,571 % $5,214,459 2.010% $37,803,862 2.912% $106.385.851 Nations Bank Government Reserves Capital Fund Unìon Bank U.S. GoY! Securities Morgan Stanley Dean Winer U.S. GOV! Securìtles 274,187 TOTAL MUTUAL FUNDS POOLED PUBLIC AGENCY INVESTMKNTS State of CA.- Local Agency Investment Fund (LAIF) $37,803,862 TOTAL INVESTED PORTFOLIO NOTES: (1) A Mutual Fund investment does not have a stated date of maturity and sh~res 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 datc~ which are anrll,HI.lb:ed and then divided by the original ìnvestment. Maturity Schedule Summary of Portfolio (A.sumlng None nf Securite. are called prior to Maturity) Money Market Fund<iLAIF (1 day liquidity) Maturing in 1 year or less Maturing in 1-2 years Maturing in 2-3 years Maturing in 3-4 years Maturing in 4-5 years $43,01 R,321 $0 $11,481,939 $17,505,313 $24,427,128 $9,953,150 41% 0% ll% 16% 23% 9% Total Portfolio $106.38S,R51 100% 1/51200512:04 ÞM ITEM 1 3 OCJ lo. CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE December 31,2004 TYPE OF INSTRUMENT BOOK AND AVERAGE MARKET %OF MATURITY VALUE PORTFOLIO YEARS 41,043,480 38.6% 2_9 432,051 0.4% 2.1 11,435,699 10.8% 3_1 10,456,300 9.9% 3.5 63,367,530 (I) 59.7% 3.0 Federal Home Loan Bank (FHLB) Fedeml Farm Credit Bureau (FFCB) Federal National Mortgage Assn (FNMA) Federal Home Loan Mortgage Corporation (FHLMC) SUB -TOTAL GOVT/AGENCY Mutual Funds Morgan Stanley Dean Witter U.S. Govt Securities 1,626,782 (2) 1.5% N/A Union Bank U.S. Govt Securities 3,313,490 3.1% N/A Nations Bank Government Reserves Capital Fund LAIF 274,187 0.3% N/A 37,803,862 35.4% N/A $106,385,851 100.0% GRAND TOTAL NOTES: (1) The City intends 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 chi by Dean Witter based upon aU investment instruments owned by the U.S. Government Securities Mutual Fund. 1/S/2005 9:S1 AM ITEM 2 l-\-DoU:> CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 2nd QUARTER FY 2004-2005 SECTION II LISTING OF SUPPLEMENTAL MONIES UNDER CITY POSSESSION AND/OR CONTROL . OPERATING FUNDS . SPECIAL FUNDS HELD BY TRUSTEES 5CültL City of Dublin Report of Operating Funds On Hand As of December 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, arc presented in a separate listing as part of 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 REQUfRED 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. MIseeUaneous Cash Non-Catelwrlzed - Cash Cash Registers/Petty Cash - City Subtotal Balance 12/31/2004 $1.300.00 $1,300.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS Bank Balance 12/3112004 General Ledl!er Balance 12/3112004 BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With California Government Code $11,125 $5,232 NATIONS BANK U.S. Treasury Reserves Adviser Account (Sweep Account connected to Bank of America Deposits listed above) $2,842,011 $423,406 Cal Fed- Regular Savings Account: FDIC Insured $1,458 $1,458 Grand Total Amount Cash Balances: $2 854 594 $430,026 62-. 00 lC> ..... '" ""!;J '" ,..; ~~ r- - "" ..... 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