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Home My WebLink AboutItem 4.02 CT InvestRpt12-31-1994 , . . ':~V.~)JtM~~ :':i,:,/~"IJi~.I,~;;' {.t"'.~~~'li>ii.Hmta;~5~!1::B't~~~}~,i~'~~itN"~~I!i'lf.~:;':";;':~.:J~iyti14lli~!:::~"I.(;.;,1~,' ~l 111'1-';'1", ;- .." . e CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE:January 9, 1995 SUBJECT':: @i- City Trea$urer~s investment Report: December 31, 1994 (Prepared by:. Paul S. Rankin, .Assistant City Mgr) EXHIBL't'Ed i'I'.tI'ACHED: :iLi:.rti\1n:; off J[;twesbnents as of December 31 f 1994 , RECOM!I'lI\!IIll\.TION: iZJ!ce.... Report DESC~I:!TII01.~ 'm1e~ .~tached listing details the City's invesbnents as of Decemtmr 31, 19SAf. Tll-e total amount shown as i.nvested is approximately $3, 3V~, 000 Imore than the amount shown at the end of the previous month. This is emu-sed by sevfi!ral factors including: a delay in the release of checks appraned at. the a:i tiy Council Meeting on December 27,1994; a temporary transfier of operating funds to LAIF to reduce banking service charges posted on a quarterly basis; receipt of the first advance from the Alameda County Auditar Gontrolle~ for Property Tax revenues. Overall! , the total yield on the City's portfolio for the month of November show" a very slight favorable gain from the rate shown for the month of Novem>>er (5.697% vs. 5.665% respectively). This was primarily due to a favorable change in the rates at the Local Agency Investment Fund and a modestl inccease in the rate of return calculated on the Dean Witter Mutual Fund aombined with the purchase of two new invesbnents. The majorifty of the portfolio (59.5%) is invested in United states Government and Ubi tedc Government Agency Securities with various dates of maturities. The avera~~(interest earned from these securities is 5.697%. Two new invesbnents were purchased in the month of December.' A' one year certificat.. of deposit was placed with Home Savings of America. The investment t. will produce interest revenue of 7.05% on an annual yield. Interest p~ents are made monthly which is helpful to the city's cash flow needs~. The, total amount invested is less than $100,000 which means that the Ci ty' a:: principal is insured by the Federal Deposit Insurance Corporation. The second~investment made was a two year investment of $500,000 in a Federal Home Doan Bank Bond. The invesbnent is callable after one year and the interest rate is 7.90%. The ~F qqarterly average was 5.380% as of December 30, 1994. This is up sli~ from the 5.3260% rate reported last month. For reporting purposes this~D9Port1includes the Quarterly Rate of, since tbi$ is how the interest is calco.i'3.te1d and paid. The actual daily rate as of December 30, 1994 was 5. 60~, vlihmch inc.ilic<l:tes that the fund should continue to post modest incr,g;~ae'$ :.".n the ccmi.rg mQIlths. LAIF Uelih. to hold ~a Iriii:x;11f shorter term investments typically not extending on am a;lTfS':age basis> 'iM..1Idh be'SOnd one year. For the City this remains as a very ].liquid. 1 profeslS&:ilmTlilljly managed investment. Further it allows for diver$iffi.cati:on undetttaieD. ~ ~rofessional rnanaqers responsible for the investtmiel,t '3f billiallS ot cbt3:lIrs of public funds 9 The State Treasurer recent!l~.'7 adw..sed poo] partia.":ip~'!I'l.:e-s that the State is precluded undeL State Law frtonn im:9'mnding o.r seizing. pooled monies as was recently the case. in Orange Cotint~~. Furthe.r, t.he state-bas .signi,ficant limitations on the types ,":)f investmp.nrt practices which precipitated the Orange County bankruptcy filing. 'The schedule of investment maturities is anticipated to allow the City to meet anticipated expenditures in the upcoming month. ---------------------------------------------------- cr'? ~~n~tl ~ FILE 2. 0 3 0 ....... 4~z COPIES TO: ci ty . Dublin City Treasurer's Listing of Investments As of December 31, 1994 This listing excludes Dublin Boulevard Extension Assessment District and COP reserve fund balances, which are held by third party Trustees and invested in accordance with the financing legal documents. '.. e ./' INVESTMENT Cost Yield MATURITY ~ .Bilt.tl TYPE OF INVESTMENT ~ POOLED INVESTMENTS 30.2% of Total Portfolio State of California LAIF $6,650,000.00 (1) 5.380% $6,650,000.00 MUTUAL FUND 7.7% of Total Portfolio Dean witter Revnolds U.S. Govt Securities $1,699,995.50 (3) 6.035% (2 ) (2) CERTIFICATES OF DEPOSIT 2.7% of Total Portfolio 5.250% 5.560% 7.050% 5.250% 5.200% 6.010% 5.724% First RepUblic T & L 9/14/98 Fremont Investment & Loan 7/30/98 Horne savings of America 12/08/95 Southern Calif FS&L 9/14/98 Standard Pacific Svgs 7/30/98 World Savings 1/29/98 $95,000.00 $99,000.00 $99,000.00 $98,000.00 $99,000.00 $100.000.00 $590,000.00 $95,000.00 5.250 $99,000.00 5.560 $99,000.00 7.050 $98,000.00 5.250 $99,000.00 5.200 $100.000.00 6.010 $590,000.00 GVRNT!AGENCY SECURITIES (4) 59.5% of Total Portfolio Bank of California(Safekeeping) FNHA 6/30/95 $500,000.00 5.250 FHLB 10/19/95 $500,000.00 5.820 FHLB 5/20/96 $500,000.00 6.200 FHLB 8/26/96 $490,000.00 7.700 FHLB(Callable 12/20/95)12/20/96 $500,000.00 7.900 U S Treasury Note 2/15/97 $500,000.00 4.750 FFCB(Callable 3/03/95) 3/03/97 $500,000.00 5.120 FHLMC(Ca1lable 5/24/95) 5/24/97 $500,000.00 6.510 FHLB(Callable 6/09/95) 6/09/97 $500,000.00 6.720 FNHA 6/10/97 $1,205,000.00 9.200 FNMA(Callable 5/13/96) 5/13/98 $500,000.00 5.250 FHLMC(Callable 9/09/94) 9/09/98 $500,000.00 4.950 FNMA(Callable 10/15/96)10/15/98 $1,000,000.00 4.875 U S Treasury Note 10/31/98 $1,000,000.00 4.750 FHLB(Callable 11/03/94)11/03/98 $1,000,000~00 5.110 FNHA(Callable 12/10/96)12/10/98 $1,000,000.00 5.310 FHLB(Callable 1/12/95) 1/12/99 $2,000,000.00 5.460 FNMA(Cal1able 2/12/96) 2/12/99 $400.000.00 5.550 $13,095,000.00 5.250% 6.165% 6.200% 7.700% 7.900% 5.724% 5.420% 6.510% 6.720% 7.066% 5.482% 5.020% 4.889% 5.101% 5.110% 5.311% 5.460% 5.564% 5.813% $500,000.00 $498,281.25 $500,000.00 $490,000.00 $500,000.00 $488,274.35 $496,388.80 $500,000.00 $500,000.00 $1,262,000.00 $496,000.00 $498,578.12 $999,463.57 $986,984.38 $1,000,000.00 $999,585.92 $2,000,000.00 $399.770.85 $13,115,327.24 $22,055,322.74 5.697% Total Investments - per books Footnotes (1) (2 ) Interest rate shown is quarterly average as of January 4, 1995. As a mutual fund investment this investment can be liquidated at any given time, however the asset value will fluctuate based upon the current market rate. The investment strategy assumes that approximately $1 million will be held through July 1, 1999, and $699,995 through October 1, 1999 without a deferred sales charge. Market value as of December 30, 1994, based upon original shares invested plus fiscal year to date dividends is $1,560,518. The market value-would also be affected by deferred sales charges, if the investment were _c liquidated prior to the dates stated in note (2). The yield on a mutual fund fluctuates with the share price of shares currently held. The yield presented is an annualized amount based upon the previous twelve months of dividends at the share price as of 12/30/94 divided by the original cost. Federal Home Loan Bank (FHLB), Federal Farm,Credit Bureau (FFCB), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corp (FHLMC) are lawful investments for local governmental agencies, (3) (4 ) ( 5)