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HomeMy WebLinkAboutItem 4.02 CT InvestRpt 08-31-1995 '- . (- .,.,.... CITY CLERK File # ~~0~-0~ . AGENDA STATEMENT CITY COUNCIL MEETING DATE: (September 12,1995) SUBJECT: City Treasurer's Investment Report: August 31, 1995 ~Report Prepared by: Paul S. Rankin, Assistant City Manager EXlDBITS ATTACHED: Listing of Investments as of August 31, 1995 RECOMMENDATION: 1/ '" Receive Report ( DESCRIPTION: The attached listing details the City's investments as of August 31, 1995. The total amount shown as invested is the same as the amount shown at the end of the previous month. Typically at this time of year the City would be drawing from its LAIF balance to cover operating costs. However, in the month of August the City received several large grant reimbursement payments, related to activities in the prior Fiscal Year. The receipt of these funds reduced the need to withdraw cash from _ LAIF to cover operating expenses during the month. No new investments were made in the month of August. Overall, the total yield on the City's portfolio for the month of August showed a very slight decrease from the rate shown for the month of July (5.904% vs. 5.907% respectively). The change was caused by a small adjustment in the LAIF rate as well as the calculated rate on the Dean Witter Mutual Fund investment. The LAIF changes are discussed fully in the following paragraph. The rate calculated for the Dean Witter investment went from 6.486% in July to 6.481 % in August. The LAIF quarterly average was 5.94% as of August, 1995, which is slightly less than the amount recorded in the month of July. For reporting pmposes this report includes the Quarterly Rate, since this is how the interest is calculated and paid. The actual daily rate as of August 31, 1995 was 5.85%, which indicates that there probably will not be additional significant increases in this rate. In general interest rates have stabilized with the potential for additional downward trends projected for the near term. As a liquid investment the current LAIF rate remains very favorable compared to rates offered on investments which have less flexibility. The schedule of investments including the dates of maturity is anticipated to allow the City to meet anticipated expenditures in the upcoming month. -------------------------------------------------------------------- COPIES TO: G\agenda\agendpsr.doc ITEM NO. ~:l.. ... ." .... ~ City of Dublin City Treasurer's Listing ofInvestments as of August 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 fmancing legal documents. TYPE OF INVESTMENT DB1c MA TIJRITY Yalue.. .RiG INVESTMENT Qm YWd POOLED INVESTMENTS 24.6010 of Total Portfolio State of California LAIF $5,023,000.00 $5,023,000.00 (I) 5.940% MUTUAL FUND 8.3% of Total Portfolio Dean Witter Revnolds " U.S. Govt Securities (2) (2) $1,699,995.50 (3) 6.481% (4) CERTIFICATES OF DEPOSIT 2.9% of Total Portfolio Home Savings of America 12/08/95 $99,000.00 7.050 $99,000.00 7.050% World Savings 1/29/98 $100,000.00 6.010 $100,000.00 6.010% Fremont Investment & Loan 7/30/98 $99,000.00 5.560 $99,000.00 5.560% Standard Pacific Savings 7/30/98 $99,000.00 5.200 $99,000.00 5.200% First Republic T & L 9/14/98 $95,000.00 5.250 $95,000.00 5.250% Southern California FS & L 9/14/98 $98.000 00 5.250 $98.000.00 ~ $590,000.00 $590,000.00 5.724% GOVERNMENT/AGENCY SECURITIES (5) 64.2 % of Total Portfolio . Bank ofCalifornia(Safekeepinlr) FHLB 10/19/95 $500,000.00 5.820 $499,472.88 6.165% FHLB 5120/96 $500,000.00 6.200 $500,000.00 6.200% FHLB 8/26/96 $490,000.00 7.700 $490,000.00 7.700% FHLB (Callable 12120/95) 12120/96 $500,000.00 7.900 $500,000.00 7.900% U S Treasury Note 2/15/97 $500,000.00 4.750 $492,741.79 5.724% FFCB (Callable 3/03/95) 3/03/97 $500,000.00 5.120 $497,743.00 5.420% FNMA 6/10/97 $1,205,000.00 9.200 $1,243,000.00 7.066% FNMA(CalIable 6/17/96) 6117/97 $500,000.00 6.190 $500,000.00 6.190% FHLMC(CalIable 12/16/95) 6/16/97 $500,000.00 6.440 $500,000.00 6.440% FHLMC(CalIable 12/20/95) 6/20/97 $500,000.00 6.190 $500,000.00 6.190% FNMA (Callable 5113/96) 5113/98 $500,000.00 5.250 $497,125.00 5.482% FHLMC(Callable 9/09/94) 9/09/98 $500,000.00 4.950 $498,906.24 5.020% FNMA (Callable 10/15/96) 10/15/98 $1,000,000.00 4.875 $999,588.57 4.889% U S Treasury Note 10/31/98 $1,000,000.00 4.750 $990,046.88 5.101% FHLB (Callable 11/03/94) 11/03/98 $1,000,000.00 5.110 $ I ,000,000.00 5.110% FNMA (Callable 12/10/96) 12/10/98 $1,000,000.00 5.310 $999,679.67 5.311% FHLB (CalIable 1/12/95) 1/12/99 $2,000,000.00 5.460 $2,000,000.00 5.460% FNMA (Callable 2/12/96) 2/12/99 $400.000 00 5.550 $399.820 85 ~ $13,095,000.00 $13,108,124.88 5.824% TOTAL INVESTMENTS ~ PER BOOKS $20.42 I.I 20.38 5.904% . Footnotes: (I) Interest rate shown is quarterly average as of August 31, 1995. (2) 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 $\ million will be held through July I, 1999, and $699,995 through October I, 1999, without a deferred sales charge. Current market value is stated in #3 below. (3) Market value as of August 29, \995. based upon original shares invested plus fiscal year to date dividends is $1,626,230. The market value would also be affected by deferred sales charges if the investment were liquidated prior to the dates stated in note (2). (4) 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 August 29, 1995, divided by the original cost. (5) Federal Home Loan Bank (~B), Federal Faun Credit Bureau (FFCB), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corp (FHLMC) are lawful investments for local governmental agencies.