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Home My WebLink About4.04 Investment Report 2nd Qtr 05-06 CITY CLERK File # D[?j[jJ[Q]-~[Q] AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 17, 2006 SUBJECT: City Treasurer's Investment Report for 2nd Quarter 2005-2006 Report Prepared by Fred W Marsh, Finance Manager and Lisa Hisatomi, Administrative Analyst II RECOMMENDATION2 ~'e;vo R"J'Ort DESCRIPTION: The attached Investment Report details the City's investments as of December 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 for the second quarter of Fiscal Year 2005-2006 are discussed in the staff report below. Quarterly Investment Report (December 31, 2005) Section I - Primary Investment Portfolio Section II - Listing of Supplemental Monies Under City Possession and/or Control ATTACHMENTS: INVESTMENT ACTIVITY DURING THE OUARTER During the second quarter, proceeds from other available funds were used to purchase one new security during the period, as noted below: INVESTMENTS PURCHASED DURING THE SECOND QUARTER Type Value at Maturi $4,275,000 Maturity Date 1/22/2007 Current Yield 4.760% Call Date 3/28/06 FHLMC In the most recent quarter the average maturity for the Federal Security portion of the portfolio is estimated at 1.8 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 72% 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 ------------------------------------------------------------------------------------------------------------- Document in quarterly investment report worksheets.XLS ITEM NO. Lt.Lt COPIES TO: have been provided as reported by Union Bank of California as of December 31, 2005. 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 Fiscal Year 2005-2006, the City has received to date $32,067 in dividends from this investment, resulting in an annualized yield of 4.022%. 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 December 31, 2005 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 well as expenditures are not processed in equal monthly installments. PORTFOLIO COMPOSITION BY SOURCE OF FUNDS General Fund Restricted - Special Revenue Funds (I.e. Gas Tax, Special Taxes) Restricted - Assessment District Funds (i.e. Landscape Maint & Debt Service) Restricted - Impact & Housing In Lieu Fees Internal Service 1 Replacement Funds TOTAL Current Quarter Prior Quarter 12/31/2005 % of 9/30/2005 % of Balance Total Balance Total $53,044,803 51.2% $49,283,906 48.0% $3,095,774 3.0% $3,143,443 3.1% $342,128 0.3% 8536,810 0.5% $37,796,523 36.4% $40,637,447 39.5% $9,448,553 9.1% $9,159,293 8.9% $103,727,781 100.0% 8 I 02,760,899 100.0% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is approximately $967,000 more than the amount shown at September 30, 2005. Overall, the combined rate for the total portfolio increased from 3.361 % at September 30, 2005 to 3.685% at December 31, 2005. The increase was attributable primarily to an increase in the rate of return on the City's investments in LAIF, the Union Bank US Government Securities Money Market account, and the Bank of America Columbia Funds Government Reserves Money Market Account. i The quarterly average for the City's LAIF investment was 3.57% as of December 31, 2005, which was higher than the 3.19% rate recorded for the quarter ending September 30,2005. 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. RECOMMENDATION: Staff recommends that Council receive this report. I o~ 0 CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 2nd QUARTER FY 2005-2006 SECTION I PRIMARY INVESTMENT PORTFOLIO 4.4 1/1'7/00 10fb CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN December 31,2005 COUPON MATURITY VALUE AT INTEREST CURRENT MARKET INVESTMENT 1ST CALL DATE DATE MATURITY RATE YIELD VALUE FEDERAL SECURITIES FHLB 4/20/05 9115/2006 I 5,000,000 3.625% 3.650% 4,964,050 FHLB 10119/05 10119/2006 1 3,000,000 3.270% 3.310% 2,966,250 FHLB 4/20/05 10/20/2006 1 5,000,000 3.000% 3.040% 4,932,800 FHLB 6114/05 12114/2006 1 3,000,000 3.350% 3.390% 2,960,640 FNMA 7/2/04 12/29/2006 1 3,520,000 3.000% 3.050% 3,459,491 FHLB 6/3/04 1/2/2007 2 4,480,000 3.000% 3.050% 4,401,600 FHLMC 1/3/2007 2 500,000 6.525% 6.420% 508,440 FHLMC 3/28/06 1/22/2007 2 4,275,000 4.750% 4.760% 4,268,887 FFCB 1/23/2007 2 421 ,000 4.600% 4.610% 420,213 FHLB 2/15/2007 2 4,000,000 4.875% 4.870% 4,003,760 FHLB 10/27104 4/27/2007 2 3,000,000 3.150% 3.220% 2,938.140 FNMA 8/11104 5/11/2007 2 3,000,000 3.250% 3.320% 2,940,000 FHLB 8118/04 5118/2007 2 2,000,000 3.000% 3.070% 1,953,760 FHLB 2111105 2111/2008 3 2,500,000 3.420% 3.510% 2,435,150 FHLMC 4/27/05 4/28/2008 3 5,000,000 3.500% 3.600% 4,865,100 FHLB 12/24/03 6124/2008 3 9,000,000 3.100% 3.220% 8,656,920 FHLB 9/30/03 6/30/2008 3 1,000,000 3.200% 3.320% 964,060 FHLMC 10/7104 10/712008 3 5,000,000 3.300% 3.430% 4,816,600 FHLB 6/29/04 12/3/2008 3 2,180,000 4.000% 4.080% 2,137,773 FNMA 7/7104 4/712009 4 5,000,000 3.550% 3.680% 4,820,300 FHLB 4119/05 10/19/2009 4 5,000,000 4.250% 4.340% 4,892,200 TOTAL FEDERAL SECURITIES $75,876,000 3.610% $74,306,134 MUTUAL FUNDS Union Bank U.S. Govt Securities 7,581,848 4.170% $7,581,848 Bank of America Columbia Funds Government Reserves 7,210,187 4.100% $7,210,187 Morgan Stanley Dean Witter U.S. Govt Securities See Note 1 4.022% (2) $1,633,936 TOTAL MUTUAL FUNDS 4.125% $16,425,971 POOLED PUBLIC AGENCY INVESTMENTS State of CA.- Local Agency Investment Fund (LAIF) S12,995,676 3.570% $12,995,676 TOTAL INVESTED PORTFOLIO 3.685% $103,727,781 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 Secnrites are called prior to Maturity) Money Market Funds/LAIF (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 $29,421,647 28% $19,283,231 19% $21,434,800 21% $23,875,603 23% $9,712,500 9% $0 0% $103,727,781 100% Total Portfolio 1/9/20065:05 PM ITEM 1 30fh CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE December 31,2005 TYPE OF INSTRUMENT BOOK AND AVERAGE MARKET %OF MATURITY VALUE PORTFOLIO YEARS 48,207,103 46.7% 1.7 420,213 0.4% 1.1 11,219,791 10.9% 2.1 14,459,027 14.0% 2.1 74,306,134 (1) 72.1% 1.8 Federal Home Loan Bank (FHLB) Federal 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 1,633,936 (2) 1.5% N/A Union Bank U.S. Govt Securities 7,581,848 7.2% N/A Nations Bank Government Reserves Capital Fund 7,210,187 6.8% N/A LAIF 12,995,676 12.4% N/A GRAND TOTAL $103,727,781 100.0% 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 ch: by Dean Witter based upon all investment instruments owned by the U.S. Government Securities Mutual Fund. 1/9/2006 1 :55 PM ITEM 2 40~0 CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 2nd QUARTER FY 2005-2006 SECTION II LISTING OF SUPPLEMENTAL MONIES UNDER CITY POSSESSION AND/OR CONTROL . OPERATING FUNDS . SPECIAL FUNDS HELD BY TRUSTEES ':J of " City of Dublin Report of Operating Funds On Hand As of December 31, 2005 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 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 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 Non-Cate2orized - Cash Cash RegisterslPetty Cash - City Subtotal Balance 12/31/2005 $IAOO.OO $1,400.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS Bank Balance 12/31/2005 General Ledeer Balance 12/31/2005 BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With California Government Code $105,338 $105,338 NATIONS BANK U.S. Treasury Reserves Adviser Account (Sweep Account connected to Bank of America Deposits listed above) $714,931 $714,931 Cal Fed- Regular Savings Account: FDIC Insured $2,109 $2, I 09 Grand Total Amount Cash Balances: $822.378 $822.378 SPECIAL FUNDS HELD BY TRUSTEES CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN For the Quarter Ending December 31, 2005 COUPON INTEREST RATE MATURITY VALUE AT DATE MATURITY MUTUAL FUNDS Dublin Blvd Assessment District First American Govt Obligation Fund See Note 1 NOTES: YIELD 3.43% (1) A Mutual Fund does not have a stated maturity date and shares can be sold at any time. BOOK VALUE $177,846 MARKET VALUE $177,846 <3"'- () -+-:> E)'