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Home My WebLink About4.05 InvestmentRPT 4thQtr CITY CLERK File # D~~-[3][Q] AGENDA STATEMENT CITY COUNCIL MEETING DATE: August 16.2005 SUBJECT: City Treasurer's Investment Report for 4th Quarter 2004-2005 Report Prepared by Fred W. Marsh, Finance Manager and Lisa Hisalomi, Administrative Analyst II ATTACHMENTS: Quarterly Investment Report (JW1e 30, 2005) 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 June 30, 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 locus of the discussion in this report will he upon activity in the Primary Investment Portfolio. Changes in the investment portlolio and investment activity for the fourth quarter of Fiscal Year 2004-2005 are discussed in the staff report below. INVESTMENT ACTIVITY DURING THE OUARTER During the fourth quarter, no investments were purchased, called or matured. Staff has been re-assessing investment strategies and has been in discussion with the City Manager regarding the timing of certain expenditures. Staff has also been tracking the changes in the interest rates; and, there may now be the ability to capitalize on some attractive interest rates that do not require the City to lock-in for the Jonger term. This has been a "wait and see" period that will hopefully allow the City to continue to "ladder" investments within the portfolio. In the most recent quarter tbe average maturity for the Federal Security portion of the portfolio is cstimated at 2.4 years. It is important to note that this relates solely to the portion 0 f 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. DET AILED LISTING OF PRIMARY PORTFOLIO Government and Agency Securities represent 70% of tbe Primary Portfolio. A detailed lisling of each sceurity 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 June 30, 2005. The City portfolio assumes that the investments will be held to maturity and there is not an acti ve 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 Fiscal Year 2004-2005, the City has received to date $71,415 in dividends from this investment, resulting in an annualized yield of 4.479%. Since October 1999, the mutual fund may be redeemed without sales charges. ____~~_HØ~__~~_________________________________~W___.~-_____________________________~~_~~____________________ COPIES TO: JTEMNO.~ J)l)çumcnt in qU::Il'"te.-ly invtstrnent report worksheefs.xLS 1ac,2.- COMPOSITION OF PORTFOLIO - SOURCE OF FUNDS To provide an overview of the portfoJio, the table below shows the total investment balance as of June 30, 2005 by source_ Comparison information is also shown for the previous quarter. Note that approximately 34% of the investment balance represents restricted Impact Fee Funds. It is important to keep in mind that this type of report is merely a snapsbot on a particular day. Revenues as well as expenditures are mJt processed in equal monthly installments. PORTFOLIO COMPOSITION BY SOURCE OF FUNDS General Fund Current Quarter Prior Quarter 6/30/2005 % of 3131/2005 % of Balance Total Balance Total $52,616,870 51_7% $49,705.819 48.7% $5,179,190 5.1% $5,351.956 $.2% $647,873 0.6% $(,71,442 0.7% $34,692,803 34_0% $37,897,547 37.1% $8,816 061 8.6% $8,444,155 8.3% $101.952,797 100_0% $102,070,919 100_0% Restricted - Special Revenue Funds (i.e. Gas Tax~ Special Taxl:s) Restricted w Assessment District Funds (i.c. Landscape Maint & Debt Service) Re~tri(:ted - Impact & !-IousÎng In Líeu Fees Internal Service I Replacement Funds TOTAL CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in tbe Primary Investment Portfolio is approximately $118,000 less than tbe amount shown at March 31,2005. Overall, the comhined rate for the total portfolio increased from 3.129% at March 31, 2005 to 3.289% at June 30, 2005. The increase was attributable primarily to an inerease in the rate of return on the City's investments in LAIF and the Union Bank US Govemment Securities Money Market aceount. The quarterly avcrage for the City's LAIF investment was 2.85% as of June 30, 2005, whicb was higher than the 2.38% rate recorded for the quarter ending Mareh 31, 2005. The schedule of investments, ineluding the dates of maturity, contains adequate eash 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 poljcy and all applieable laws and regulations. RECOMMENDATION: Staffrecommends that Council receive this report. 2Db '2- 1& CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 4th QUARTER FY 2004-2005 SECTION I PRIMARY INVESTMENT PORTFOLIO ~-l~" 0.;" ~,& A ~I,.., 1'V\ß..t'\-T" CITY OF' DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN June 30, 2005 2.~te COUPON BOOK AND MATURITY VALUE AT INTEREST CURRENT MARKET INVESTMENT 1ST CALL DATE DATE MA TURITV RATE YIELD VALUR FEDERAL S.~:CURITIES FHLB 4/20/05 9/15/2006 2 5,000,000 3_625% 3.618% 4,990,650 FHLB 10/19/05 10/19/2006 2 3,000,000 3_270% 3.248% 2,979,390 FHLB 4/20/05 10120/2006 2 5,000,000 3.000% 2.969% 4.948,450 FHLB 6/14/05 1211412006 2 3,000,000 3.350% 3.327% 2,979.390 FNMA 7/2/04 1212912006 2 3,520,000 3.000% 2_964% 3,478,218 FHLB 6/3/04 1/2/2007 2 4,4S0,000 3_000% 2.964% 4,426,822 FIILMC 1/312007 2 500,000 6_525% 6.782% 519,690 FFCB 1/23/2007 2 421,000 4.600% 4.653% 425,867 FHLB 2115/2007 2 4,000,000 4.875% 4.954% 4,065,000 FHLB 10/27/04 4/2712007 2 3,000,000 3_150% 3.112% 2,963,430 FNMA 8/11/04 5/11/2007 2 3,000,000 3.250% 3.216% 2,969,070 FHLB 8/18/04 5/! 812007 2 2,000,000 3.000% 2.955% 1.970,000 FHLB 2/11/05 211 112008 3 2,500,000 3.420% 3_383% 2,472,650 FHLMC 4/27/05 4/28/2008 3 5,000,000 3.500% 3.464% 4,949,050 FHLB 12124/03 6/24/2008 3 9,000,000 3.100% 3.030% 8,797,500 FHLB 9/30/03 6/30/2008 3 1,000,000 3.200% 3.1.17% 980,310 FHLMC 10/7/04 10/7/2008 4 5,000,000 3_300% 3.235% 4,90 1,250 FIILß 6/29/04 12/312008 4 2,180,000 4_000% 3.971% 2,164,326 FNMA 7/7/04 4/7/2009 4 5,000,000 3.550% 3.493% 4,920,300 FIILß 4/19/05 10/1912009 5 5,000,000 4_250% 4_239% 4,987,500 TOTAL FEDERAL SECURITIES $71,60 1,000 3.437% $70,888,863 MUTUAL nlNDS Union Oank U.S_ GOV! Securities 1,059,584 3_190% 81,059,584 Nations ßank Government Reserve~ 1,187 2.830% $1,187 Capital Fund Morgan Stanley Dean Witter U,S. Govt Securities See Note 1 4.479% p) $1,659,101 TOTAL MUTUAL FUNDS 3.964% $2,719,872 POOLED PUBLIC AGENCY INVESTMENTS State of CA.- Local Agency Investment Fund (LAIF) $28,344,062 2.850% $28,344,062 TOTAL INVESTED PORTFOLIO 3.289% $101,952,797 NOTES, (1) A Mutual Fund investment does not have a stated date of maturity and sh~rcs may be sold at any tìme. The share price at the time of a sale may be either higher or lower thO-¡I1 the original Cost. (2) Intereíìt Rate shown is ba.,.;¡ed on dividends receíved this fiscal year to date, which are annualized and then divided by the original investment. Maturity Schedule Summary of portfolio (Assnmlng None of Secnnte, are called prior to Maturity) Money Market FundslLAIF (1 day liquidity) Maturing in 1 year or less Maturing in 1-2 YCi:1IS Maturing in 2-3 years Maturing in 3"4 years Maturing in 4-5 years $31,063.934 $0 $36,715.977 $17,199,510 $11.985.876 $4,987,500 30% 0% 36% 17% 12% 5% Total Portfolio $101,952,797 100% S/BI200511:02AM ITEM 1 3'Øþte. CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE June 30, 2005 TYPE OF INSTRUMENT BOOK AND AVERAGE MARKET %OF MATURITY VALUE PORTFOLIO YEARS 48,725,418 47.9% 2.2 425,867 0.4% 1.6 11,367,588 11.2% 2.6 10,369,990 10.2% 3.0 70,888,863 (I) 69.8% 2.4 Federal Home Loan Bank (FHLB) Federal Farm Credit Bureau (FFCB) FederaJ National Mortgage Assn (FNMA) Federal Home Loan Mortgage Corporation (FHLMC) SUB -TOTAL GOVT/AGENCY Mutual Funds Morgan Stanley Dean Witter U.S. Govt Securities 1,659,101 (2) 1.6% N/A Union Bank U.S. Govt Securities 1,059,584 1.0% N/A Nations Bank Government Reserves Capital Fund LAIF 1,187 0.0% N/A 28,344,062 27.6% N/A $101,952,797 100.0% GRAND TOTAL NOTES: (I) The City intends to bold 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 ch; by Dean Witter based upon all investment instruments owned by the U.S. Government Securities Mutual Fund. 81812005 11 ;03 AM ITEM 2 y.~(p CITY OF DUBLIN QUARTERLY INVESTMENT REPORT . 4th 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 June 30, 2005 13 6bfP 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 immcdiately necessary for current operations, are presented in a separate listing as part ofthe quarterly report. In the ease of Operating Funds in bank accounts, the amount presented relates to the balance reportcd by tbe Finaneiallnstitution. 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 willlluctuatc throughout the year. These funds are not subject to a specified maturity and thc par value would be equivalent to tbe amount stated. Miscellaneous Cash Non-Categorized - Cash Cash Registers/Petty Cash -- City SuhtotaJ Balance 6/30/2005 $1.550.00 $1,550.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS Bank Balance 6/3012005 General Lede:er Balance 6130/2005 BANK OF AMERlCA- Collateralized Public Money Deposits In Accordance With Caljfornia Govcrnment Code $252,608 -$869,955 NA TIONS BANK U.s. Treasury Reserves Adviscr Account (Swecp Account eonnected to Bank of Ameriea Deposits listcd above) $1,614,991 $1,614,991 Cal Fed- Regular Savings Account: FDIC Insured $2,104 $2,104 Grand Total Amount Cash Balances; $1 869703 $747 ]40 IÞ rib fR <'- N ~~ <'- ,,., <'- - '" '" <'- N <'-. ~~ '" <'- 0;:0 - O~ '" ~... '" ~ ¡... 0 - z 9 ~ I;:! N ¡::; ~ '" .; C"- f" '" .~ ~ ~ ~~ ~ ¡... ~~. >-> C"- o.. '-'ó ¡¡ .. 0 ¡....., o¡:¡¡:: 1:; ~ 0 ¡;¡ '" c: t;~;¡¡ '" i!5 õ ;.. r..":; o¡... ~ ~ ¡... 0 .. Va:; "' ¡:¡ '" ~ .5 ,<> - ...¡ ...¡ ¡...'" § ~ 0 ~~ '-' ~ ~ "' '" ~ 0:,: ~~ ~ 0 '" Z .. -" Z '" ~ ;:0 ¡... ~& ~ '"' r.. 0 ~< j ...¡ "' ~ ¡:¡ v;9 z .. ;;.:Õ V .. - " £' ~ !ô r.. >< '0.. i C"- O ¡... IJ ... §~ 0 0 Z '" ;.. ~ " ¡... '" Ii - ,,¡:¡ '" V '" - " " '" .2 'S ~ - i5 g - ~ " " ~ - 0 '" '" rj'J ~ :; æ O~O", ~",~æ '" a ¡,.. '¡:: ~ ¡jj ;ig ~ - " 0 ~ 11 'p ¡:: .., "< '" <.: t: :a - .~ 0 ~ . "'- - 8..:. 0 Z ,,00..