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HomeMy WebLinkAboutItem 4.03 CTInvestRpt 01-31-1995 /! ~ . ., .~ .. CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 13, 1995 SUBJECT: ..l\;. City Treasurer's Investment Report: January 31,1995 "'_ (Prepared by: Paul S. Rankin, Assistant City Manager) EXHIBITS ATTACHED: Listing of Investments as of January 31,1995 RECOMMENDATION~eive Report DESCRIPTION: The attached listing details the City's investments as of January 31,1995. The total amount shown as invested is approximately $2,650,000 less than the amount shown at the end of the previous month. In the month of January the total City disbursements exceeded $2,970,000. Approximately $1,047,000 was related to the Civic Center Certificate of Participation Lease Payment. Overall, the total yield on the City's portfolio for the month of January showed a favorable gain from the rate shown for the month of December (5.8000/0 vs. 5.6970/0 respectively). This was primarily due to a favorable change in the rates at the Local Agency Investment Fund and an increase in the rate of return calculated on the Dean Witter Mutual Fund. The distribution of the City portfolio between the various types of investments changed significantly from . the previous month. In December the City had 30.2% of its funds in the State of California LAIF. This was reduced to 20.6% by the end of January. This account is very liquid and it allows the City to meet its cash flow needs. No new investments were purchased in the month of January. Staff continues to monitor the City's anticipated cash flow needs. It is anticipated that the second quarter billing for services provided by the Alameda County Sheriff's Department will be processed in the upcoming weeks. The LAIF quarterly average was 5.610% as of February 1, 1995. This is up significantly from the 5.380% rate reported last month. For reporting purposes this report includes the Quarterly Rate of, since this is how the interest is calculated and paid. The actual daily rate as of February 1, 1995 was 5.680%, which indicates that there remains an opportunity to achieve increased interest yield in the coming months. LAIF tends to hold a mix of shorter term investments typically not extending on an average basis much beyond one year. For the City this remains as a very liquid professionally managed investment. Further it allows for diversification undertaken by professional managers responsible for the investment of billions of dollars of public funds. The State Treasurer recently advised pool participants that the State is precluded under State Law from impounding or seizing pooled monies as was recently the case in Orange County. Further, the State has significant limitations on the types of investment 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. ITEM NO. !J.7 COPIES TO: -- -- --- -- ----------------------------------------------------- CITY CLERK FILE ~. - ~ . city of Dublin ~ . city Treasurer's Listing of~nvestments As of January 31, 1995 - 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 f1nancing legal documents. TYPE OF INVESTMENT MATURITY Date Value Rate INVESTMENT Cost Yield POOLED INVESTMENTS 20.6% of Total Portfolio state of California LAIF KUTUAL FUNp 8.8% of Total Portfolio Dean Witter Reyno+d~ U. s. .. Govt Secur1 t1es (2) $4,000,000.00 $4,000,000.00 (1) 5.610% (2) $1,699,995.50 (3) 6.167% CERTIFICATES OF DEPOSIT 3.0% of Total po~tfolio First RepUblic T & L 9/14/98 Fremont Investment & Loan 7/30/98 Home Savings of America 12/08/95 Southern Calif FS&L 9/14/98 Standard Pacific Svgs 7/30/98 World Savings 1/29/98 Interest rate shown is quarterly average as of February 1, 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 January 27, 1995, based upon original shares invested plus fiscal year to date dividends 1S $1,589,051. The market value would also be affected by deferred sales charges, 1f the investment were liquidated prior to the dates stated in note (2). . The yield on a mutual fund fluctuates with the share price of shares -currentl~ held. .. The yield presented is an annualized amount based upon the prev10us twelve months of dividends at the share price as of 1/27/95 divided by the original cost. . Federal Home Loan Bank (FHLB), Federal Farm Credit Bureau (FFCB), Federal National Mortgage Assoc1ation (FNMA), and Federal Home Loan Mortgage corp (FHLMC) are lawful investments for local governmental agencies, GVRNT/AGENCY SECURITIES (4) 67.6% Bank of California(Safekeeping) FNMA 6/30/95 FHLB 10/19/95 FHLB 5/20/96 FHLB 8/26/96 FHLB(Callable 12/20/95)12/20/96 U S Treasury Note 2/15/97 FFCB(Callable 3/03/95) 3/03/97 FHLMC(Callable 5/24/95) 5/24/97 FHLB(Callable 6/09/95) 6/09/97 FNMA 6/10/97 FNMA(Callable 5/13/96) 5/13/98 FHLMC(Callable 9/09/94) 9/09/98 FNMA(Callable 10/15/96)10/15/98 U S Treasury Note 10/31/98 FHLB(Callable 11/03/94)11/03/98 FNMA(Callable 12/10/96)12/10/98 FHLB(Callable 1/12/95) 1/12/99 FNMA(Callable 2/12/96) 2/12/99 Total Investments - per books Footnotes (1) (2) (3 ) (4) (5) $95,000.00 $99,000.00 $99,000.00 $98,000.00 $99,000.00 $100,000.00 $590,000.00 of Total portfolio $95,000.00 $99,000.00 $99,000.00 $98,000.00 $99,000.00 $100.000.00 $590,000.00 5.250% 5.560% 7.050% 5.250% 5.200% 6.010% 5.724% 5.250 5.560 7.050 5.250 5.200 6.010 $500,000.00 5.250 $500,000.00 5.250% ~500,000.00 5.820 ~498,281.25 6.165% 500,000.00 6.200 500,000.00 6.200% $490,000.00 7.700 $490,000.00 7.700% $500,000.00 7.900 $500,000.00 7.900% ~500,000.OO 4.750 ~488,274.35 5.724% 500,000.00 5.120 496,388.80 5.420% $500,000.00 6.510 $500,000.00 6.510% $500,000.00 6.720 $500,000.00 6.720% $1$205,000.00 9.200 $1$262,000.00 7.066% 500,000.00 5.250 496,000.00 5.482% $500,000.00 4.950 $498,578.12 5.020% $1,000,000.00 4.875 ~999,463.57 4.889% ~1,000,000.00 4.750 986,984.38 5.101% 1,000,000.00 5.110 $1,000,000.00 5.110% $1,000,000.00 5.310 $999,585.92 5.311% $2 000,000.00 5.460 $2$000,000.00 5.460% 000.00 5.550 399.770.85 5.564% 13,095,000.00 $13,115,327.24 5.813% $19,405,322.74 5.800% --------------- ------- --------------- ------- . 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