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Home My WebLink About4.06 InvestmentRpt3rdQtr CITY CLERK File # D~[lJ[Q]-§]@ AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 3. 2005 SUB.JECT: City Treasurer's Investment Report for 3rd Quarter 2004-2005 Report Prepared hy Carole A. Perry, Administrative Services Director and Fred W Marsh, Finance Manager A TT ACHMENTS: Quarterly Investment Report (March 31, 2005) Section I - Primary Investment Portfolio Section II - Listing of Supplemental Monies Under City Possession and/or Control RECOMMENDATION9!J. Receive Report DESCRIPTION: T~ttached Investment Report details the City's investments as of March 31, 2005, 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 [or the third quarter of Fiscal Year 2004-2005 are discussed in the staff report below. INVESTMENT ACTIVITY DURING THE QUARTER During the third quarter proceeds from other available funds were used to purchase two new securities during the period, as summarized in the table below: INVESTMENTS PURCHASED DURING THE TIIIRD QUARTER Value at Maturity Current Call Date Maturitv Date Yield $5,000,000 9/15/2006 3,613% 4/20/05' $3,000,000 10/19/2006 3.239% 10/19/05 'no call resulted as of the 4/20/05 call date In the most recent quarter the average maturity for the Federal Security portion of the portfolio is estimated at 2.6 years. It is important to note that this relates solely to the portion of the portlolio 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 69% 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 March 31, 2005. The City portfolio assumes that the investments wiJI 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. ___________~____~_.~~___~~____________________________-______________w_~_______________________________·_·___ COPIES TO: nocumcor În qua....tt:rly illve:Uñltnt report worksheets \~ e-- ITEM NO. 4. I~ rJ The Morgan Stanley Dean Witter US Government Securities Mutual Fund Investment represents 2% of the City's total portfolio. During the 2004-2005 Fisca1 Year the City has received to date $54,229 in dividends from this investment, resuHing in an annualized yield of 4.535%. 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 Mareh 31, 2005 by source. Comparison information is also shown for the previous quarter. Note that approximately 37% of the investment balanee 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 proeessed in equal month1y insta1Jments. PORTFOLIO COMPOSITION BY SOURCE OF FUNDS 3/31/2005 % of 12/31/2004 % of Balance Total Balance Total General Fund 849,705,819 48.7% $54,393,911 51.1% Restrìcted - Special Revenue Funds $5,351,956 5.2% $5,047,912 4.7% (I.e. Gas Tax, Special Taxes) Restricted - Assessment District Funds $671,442 0.7% $598,031 0.6°'/0 (i,e. Landscape Mi::1int & Debt Service) Restricted - Impact Fecs 837,897,547 37.1% $38,100,071 35.8% Internal Service I Replacement Funds S8,444,155 8.3% $8,245,926 7.8% TOTAL $102,070,919 100.0% $106,385,851 100,0% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is approximately $4.3 million less than the amount shown at Dccember 31, 2004, primarily due to the payments made to Alameda County during this quarter for contract police and fire serviees provided to the City of Dublin. Overall, the eombined rate for the total portfolio inereased from 2.912% at December 31, 2004 to 3.129% at Mareh 31, 2005. The inerease was attributable primarily to an inerease in the rate of return on the City's investments in LAIF, as well as the purchase ofthe two federal seeurities mentioned earlier in this report, The quarterly average for the City's LATF investment was 2.38% as of Mareh 31, 2005, which was higher than the 2.01 % rate recorded for the quarter ending Deeember 31, 2004. The schedule of investments, inc1uding the dates of maturity, contains adequate cash flow liquidity to meet anticipated expenditures over the next six months. The investments and the sehedule of investments are in compliance with the City's investment p01iey and all applieablc laws and regulations. RECOMMENDATION: Staff rceommends that Council receive this report. ?tfb~ 1~1.ø CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 3rd QUARTER FY 2004-2005 SECTION I PRIMARY INVESTMENT PORTFOLIO 5- ~-o ==;- cf; l.o ~~ CITY OF DUBLIN DEl' AILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN March 31, 2005 d.Ttf:J" COUPON BOOK AND MATURITY VALUE AT INTEREST CURRENT MARKET INVESTMENT 1ST CALL DATE DATE MATURITY RATE YIELD VALUE FEDERAL SECURITIES FIILß 4/20105 9/1512006 2 5,000,000 3.625% 3.613% 4,982,800 FHLB 10/19/05 10/1912006 2 3,000,000 3.270% 3.239% 2,971,890 FHLB 4/20/05 10/20/2006 2 5,000,000 3,000% 2,960% 4,932,800 FHLß 6/14/05 12/1412006 2 3,000,000 3,350% 3.319% 2,971,890 FNMA 7/2/04 12129/2006 2 3,520,000 3.000% 2,951% 3,462,800 FHLB 6/3104 1/2/2007 2 4,480,000 3-000% 2.952% 4,408,589 Flll.MC 1/312007 2 500,000 6,525% 6.808% 521,720 FFCB 1/23/2007 2 421,000 4,600% 4.649% 425,475 FHLB 2/1512007 2 4,000,000 4.875% 4.95t% 4,062,520 FHLß 10/27/04 4127/2007 3 3,000,000 3.150% 3.097% 2,949,390 FNMA 8/1 1104 5/11/2007 3 3,000,000 3,250% 3.197% 2,951,250 FHLB 8118104 5118/2007 3 2,000,000 3.000% 2,938% 1,958,760 PHLB 2/11/05 2/1112008 3 2,500,000 3.420% 3,352% 2,450,000 FHtMC 4127105 4/28/2008 4 5,000,000 3.500% 3.429% 4,898,750 FHLB 12124/03 6/2412008 4 9,000,000 3,100% 2.994% 8,693,460 FHLB 9/30/03 6/30!2008 4 1,000,000 3.200% 3.100% 968,750 FlltMC 10/7/04 10/7/2008 4 5,000,000 3,300% 3.193% 4,838,600 FHLB 6/29104 12/312008 4 2,180,000 4,000% 3,920% 2,136,400 FNMA 7/7/04 4/7/2009 5 5,000,000 3.550% 3.439% 4,843,750 FHLB 4119/05 10/1912009 5 5,000,000 4,250% 4,200% 4,940,650 TOTAL FEDERAL SECURlTlF.S $71,601,000 3.413% $70,370,244 MUTUAL FUNDS Nations Bank Government Reserves 1,187 2.362% $1,187 Capital F,md Union Bank U.S. GOV! Securitìes 150,852 2.270% $150,852 Morgan Stanley Dean Witter U.S. Govt Securities See Note 1 4,535% (2) $1,628,575 TOTAL MUTUAL FUNDS 4,338% $1,780,614 POOLED PUBLIC AGF:NCV INVESTMENTS State ofCA.- Local Ageocy Investment Fund (LAIF) $29,920,061 2,380% $29,920,061 TOTAL INVESTED PORTFOLIO 3.129"''''':, $102,070,919 NOTES: (I) 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 origina] 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 (Assumin2 None of SeeurUe. are calle<! prior to Maturity) Money Market Funds/LAIF (I day liquidity) Maturíng 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 $31,700,675 $0 $28,740,484 $10,309,400 $21,535,960 $9,784,400 31% 0% 28% 10% 21% 10% Total ponfolio $102,070,919 100% 4/151200511:32AM ITEM 1 ~/p CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE March 31, 2005 TYPE OF INSTRUMENT BOOK AND AVERAGE MARKET %OF MATURITY VALUE PORTFOLIO YEARS 48,427,899 47.6% 2.5 425,475 0.4% 1.8 11,257,800 11.2% 2.8 10,259,070 10.2% 3,2 70,370,244 (I) 69.3% 2.6 Federal Home Loan Bank (FHLB) Federal Farm Credit Bureau (FFCB) Federal National Mortgage Assn (FNMA) Federal Home Loan Mortgage Corporation (FHLMe) SUB -TOTAL GOVT/AGENCY Mutual Funds Morgan Stanley Dean Witter U.S. Govt Securities 1,628,575 (Z) 1.5% NIA Union Bank U.S. Govt Securities 150,852 0.1% N/A Nations Bank Government Reserves Capital Fund LAIF 1,187 0.0% N/A 29,920,061 29.1% NIA $102,070,919 100.0% 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 eh¡ by Dean Wittcr based upon all investment instruments owned by the U.S. Government Securities Mutual Fund. 4/15/200S 11:30 AM ITEM 2 ~~ CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 3rd QUARTER FY 2004-2005 SECTION II LISTING OF SUPPLEMENTAL MONIES UNDER CITY POSSESSION AND/OR CONTROL . OPERATING FUNDS . SPECIAL FUNDS HELD BY TRUSTEES City of Dublin Report of Operating Funds On Hand As of March 31, 2005 6t>~ In aceordancc with the California Government Code, the City Treasurer must disclose on a quarterly basis all monies in its possession. Monies considered invested, and not immcdiately neeessary for current operations, are presented in a separate listing as part of the quarterly report. In the ease of Opcrating Funds in bank aceounts, the amount presented relates to the balanee reported by the Finaneial Institution. IT IS IMPORTANT TO NOTE THAT THIS AMOUNT MAY REFLECT FUNDS REQillRED TO COVER PAYMENTS ALREADY ISSUED AND CHECKS WHICH HAVE NOT CLEARED AS OF THE LAST DAY OF THE QUARTER. Therefore, these balances will fluetuate throughout the year. These funds are not subject to a specified maturity and the par value would be equivalent to the amOllnt stated. Miscellaneous Cash Non-Categorized - Cash Cash RegisterslPctty Cash - City Subtotal Balance 3/3112005 $1.200.00 $1,200.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS Bank Balance 3/3112005 General Ledger Balance 313112005 BANK OF AMERICA- Collateralized Public Money Deposits In Aecordance With California Government Code $5,415 $5,415 NATIONS BANK U.S, Treasury Reserves Adviser Aeeount (Sweep Aeeount connected to Bank of America Deposits listed above) $3,523,341 $1,499,559 Cal Fed- Regular Savings Account: FDIC Insured $2,102 $2,102 Grand Total Amount Cash Balances: $3 530 858 $1.507.076 iP~k=> '" '" r-¡:¡ ": '" ~~ .... 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