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Home My WebLink About4.02 Investment Report 3rd Quarter CITY CLERK File # D~~[QJ-[I][Q] AGENDA STATEMENT CITY COUNCIL MEETING DATE: April 18. 2006 SUBJECT City Treasurer's Investment Report for 3rd Quarter 2005-2006 Report Prepared bv Paul S Rankin, Administrative Services Director and Fred Marsh, Finance Manager ATTACHMENTS Quarterly Investment Report (March 31, 2006) SectIon I - Primary Investment Portfolio Section II - Listing of Supplemental Monies Under City /f / Possession and/or Control RECOMMENDA TION ~ Receive Report " DESCRIPTION The attached Investment Report details the City's investments as of March 31, 2006, m accordance WIth the Local Agency Investment Guidelines established by the State Treasurer. Section I of the Report focuses on the principal investment portfolio Sechon II details fUnds held by Trustees and miscellaneous operating accounts. The focus of the discussion in this report will be upon actiVIty m the Primary Investment Portfoho. Changes in the investment portfolio and investment aehvity for the third quarter of Fiscal Year 2005-2006 are discussed in the staffreport helow INVESTMENT ACTIVITY DURING THE QUARTER Dunng the third quarter, proceeds from other availahle funds were used to purchase one new security during the period, as noted below' INVESTMENTS PURCHASED DURING THE SECOND QUARTER Type Value at Matu rit $2,000,000 Maturity Date 2/28/2007 Current Yield 5010o{, Call Date N/A FHLB In the most recent quarter the average maturity for the Federal Security portIOn of the portfolio IS estimated at 1.6 years. It is important to note that this relates solely to the portlOn of the portJolio that has mvestments with a stated teml. The City mamtams adequate funds in more liquid investments, which arc deemed sufficient to meet cash flow needs. DETAILED LISTING OF PRIMARY PORTFOLIO Govemm<;nt and Agency Securities represent 76% of the Primary Portfolio. A detailed listing of each security is provided in SectIOn L The market value of Federal Securities can fluctuate dailv and values COPIES TO: ITEM NO. 3. 2.. Document in quarter-Iv innstml:nt report wul'ks.beets.XLS I Gb2. have been provided as reported by Union Bank of California as of March 31, 2006. The City portfolio assumes that the investments wi11 be held to matunty and there is not an active attempt made to trade eXlstmg 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 Secunhes Mutual Fund Investment represents 2% of the City's total portfolio. During Fiscal Year 2005-2006, the City has receIved to date $41,713 in dividends from this investment, resulting in an arumalized yield of 3 924%. Since October 1999, the mutual fund may he 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, 2006 by source. Comparison infonnabon is also shown for the prevlOus quarter Note that approximately 38% of the l11vestment 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 34% Prior Quarter 12/3112005 % of Balance Total $53,044,S03 49.8% $3,095,774 3 1 % 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 I Replacement Funds TOTAL Current Quorter 3/31/2006 Balance $49,167,329 $3,385,761 % of Total 48.7% $599,039 0.6% $342,128 0.3% $37,977,122 $9 802,2(,3 $100,931,514 37.6% $37,79h,523 $9448553 $103 727,781 374% 97% 100,0% 94% 1000% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as investcd in the Primary Invesbnent Portfolio is approximately $2.& milhon less than the amount shown at December 31, 2005 Overall, the combined rate for the total portfolio increased from 3685% at Deeen1her 31, 2005 to 3.829% at March 31, 2006 The increase was attributahle primarily to an increase in the rate of return on the City's invcstments in LAIF, the Union Bank US Government Securities Money Market account, and the Bank of Amcriea ColumbIa Funds Government Reserves Money Market Account. Thc quarterly average for the City's LAIF investment was 4 04% as of March 31,2006, which was higher than the 3.57% rate recorded for the quarter ending December 31,2005 The schedule of lllvestrnents, ineluding the dates of matunty, contams adequate cash flow hquidity to meet anheipated expenditures over the next six months. The investments and the schedule of investments are 111 comphanee with the City's investment policy and all applicahle laws and regulatJons. RECOMMENDATION Staff recommends that Council receive this report. 2- L ~ \ LlblQ CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 3rd QUARTER FY 2006-2007 SECTION I PRIMARY INVESTMENT PORTFOLIO q.L., 4-\ g-OCD CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS Z',",b ..0 INCUJDING RATE OF RETURN , , March 31, 2006 COUPON MATURlT\ VALUE AT INTEREST CURRENT MARKET INVESTMENT 1ST CALL DATF: DATF. MATURITY RATE YIBLD VAT~UF: FEDERAL SECUIUTlES FHl.B 4/20/05 9115/2006 1 5,000,000 3.625% 3.650% 4,968,750 FHl.B 10/19/05 1011912006 1 3,000,000 3.270% 3.300% 2,970,000 FlIl.B 4/20/05 10/20/2006 1 5,000,000 3.000% 3.040% 4,942,200 FHl.B 6114105 12114/2006 1 3,000,000 3-350% 3.390% 2,963,430 FNMA 7/2104 12/29/2006 1 3,520,000 3.0011% 3,050% 3,466,109 FHUJ 6/3/04 1/212007 1 4,480,000 3.()UU% 3.050"'/11 4,410.022 FHLMC 113/2007 I 500;000 6.525% 6.460% 505,000 FHl.MC 3/28106 1/22/2007 1 4,275,000 4.75U% 4.77011/11 4,261.149 FFCB 1/2312007 I 421,000 4.6(1(1% 4.620% 419,100 FHUJ 2/15/2007 1 4,000,000 4.87\% 4.890% 3,990,000 FHLIJ 2/2R/2007 I 2.000,000 4.875% 5.010% 1,097,500 FHLB 10127104 4/27/2007 2 3,000,000 3.1"511% J .220% 2,939.070 FNMA RIII/04 5111/2007 2 3,000,000 3.250% 3.320% 2,940,000 FHLB 8/18104 511812007 2 2,000,000 1.0001"10 ].070% 1,953,760 FlILB 2111105 211l/2008 2 2,500,000 3.420% 1.5200/11 2,427,350 FHLMC 4/27105 412812008 3 \,000,000 3.500% 3.610% 4,846,950 fllLB 12/24103 6/24/200S 3 9,000,000 3.1(10% 3.230% 8,631 ,540 FHLB 9/30103 6/30/200R 3 1,000,000 3.200% 3.330% 960,Y40 fHLMC 10/7/04 10/7/2008 3 5.000,000 3.3110% 3.4400/11 4,795,600 FHLlJ 6/29104 1213/2008 3 2,180,000 4,000% 4.} 1011/11 2,122,oY9 fNMA 7/7/04 4/7/2009 4 5.000,000 3,550% 3.710% 4,7S2,800 FHLB 4/19105 1011912009 4 5,000,000 4.250'% 4.390% 4,845.300 TOTAL FEDERAL SECURITIES $77,870,000 3.656% $70,138,n9 MUTllAL F'UNDS Union Bank U,S, Govt Securities 7,905,739 4,7101I/1I $7,995,739 Bank of America Columbia Funds Government Re$~rves 10,000.187 4.350% $l<J,"OO.187 Morgan Slanl~y D~an Willer U.S. Guvt Securities See Note I 3.924% (2\ $1.033,936 TOTAL MUTUAL FUNDS 4,462% $19,629,862 POOLED PUBLIC AGENC\ INVESTMENTS State of(.A.~ Local Agency In\!~!:llmcnl Fund (LAIF) $5 102,923 4.040% $5.102,923 TOT4.L INVESTED PORTFOLIO 3.829"/" $100,931,514 NO'rnS, (I) A. Mutual Fund in\l~!itm~nl UlleS not have a staled date l.)f maturity and shares may be sold at any timc. The share pri<,;~ at 1111~ tinle ofa sale may be either higher or lower than the original cost, (2) Interest Rate shuwn is hased 011 dividends J'eceived this fiscal year to date~ which arc annuali~ed and then uivided by lhe uriginal investment. Ma.turity Schedule Summary of Portfolio (Assuming None ofSec,urites are called prior to Matutity) Money Market Funds/LA IF (J day liquidity) Maturing in I year or less Maturing in 1-2 YCllr5 Maturing in 2-3 years Maturing in 3-4 years Mat.uring in 4-'1 years $24,792.785 $34,893,32" $10,260, I 80 $21,357.129 $9,62S,100 $0 24% 35% 10% 21% IO(l/n 0% Tutal porlrolin $100.931.514 100% 4/3/20062:51 PM ITEM 1 '.:2 ,..,... \_ -..J L'[ \..Y CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE March 31, 2006 TYPE OF INSTRUMENT BOOK AND AVERAGE MARKET %OF MATURITY VALUE PORTFOLIO YEARS 50,121,961 49.8% 14 419,160 04% 08 11,188,909 11.2% 1.8 14,408,699 144% l.H 76,138,729 (1) 75.9% 1.6 Federal Home Loan Bank (FHLR) Federal Fann Credit Bureau (FFCB) Federal National Mortgage Assn (FNMA) federal Home Loan Mortgage Corporation (FI'Il,MC) SUB -TOTAL GOVT/AGENCY Mutual Funds Morgan Stanley Dean Witter U.S. Govt Securities t ,633,936 (2) 1.6% N/A Union Bank U.S. Govt Securities 7,995,739 7.80(., N/A Nations Bank Government Reserves Capital Fund 10,000,187 9.7% N/A LAIF 5,162,923 5.0% N/A GRAND TOTAL $100,931,514 100.0'Yo NOTES: (I) The City in lends to huld the investments until maturity or until market values equal or ex<;eed their face value. (2) As a mutual Fund shares can typically be liquidated at any time. The weighted average maturity slated in this ch( by Dean Witter based upon all investment instruments owned by the U.S. Government Securities Mutual Fund. 4/3120062:51 PM ITEM 2 Y0[:)l.D CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 3rd QUARTER FY 2006-2007 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, 2006 b D~hlJ) I..J In accordance with the California Government Code, the City Treasurer must disclose on a quarterly basis all momes in its possessIOn. Monies considered invested, and not illlllledJately necessary for current operations, are presented in a separate listing as part of the quarterly report. In the ease of Operating Funds in bank accounts, the amount presented rclates 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 tbe amount stated. Miscellaneous Cash Non-Catel!:orized - Cash Cash ReglsterslPetty Cash - City Subtotal Balance 3/31/2006 $1.000.00 $1,000.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS Bank Balanee 3/31/2006 General Ledl!er Balance 3/31/2006 BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With California Government Code $41,230 $41,230 NATIONS BANK U.S Treasury Reserves Adviser Account (Sweep Account connected to Bank of America Deposits listed above) $1,698,692 $1,698,692 Cal Fed- Regular Savings Account: FDIC Insured $2,111 $2, III Grand Total Amount Cash Balances: $1 742033 $1,7423113. SPECIAL Fl"NDS HELD BY TRUSTEES CITY OF DVBLIN DETAILED LISTL'lG OF L'IVESTMENTS :\-L-\TURlT" DATE MUTCAL Fl1]\'DS Dublin Blyd Asses,ment District First American Gm.t Obligation Fund See Note 1 :'IOTES: INCLUDING RATE OF RETURN For tbe Quarter Ending Marcb 31, 2006 VALUE AT MATURITY COUPON lJ\TEREST RATE YIELD 410% ( I) A ),1 utual Fund does not have a stated maturity date and shares can be sold at any time. BOOK VALUE $179,997 MARKET VALUE S179,997 r- Ia q I;---r b