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Home My WebLink AboutItem 4.06 CT InvestRpt " -- e CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 14, 1994 _~~City Treasurer's Investment Report: January 31, 1994 'ijf4- (Prepared by: Paul S. Rankin, Assistant City Mgr) EXHIBITS ATTACHED:~isting of Investments as of January 31, 1994 RECOMMENDATION: V"~ .Recei ve Report DESCRIPTION: The attached listing details the City's investments as of January 31, 1994. The total amount invested is less than shown in the previous month by approximately $ 2.235 million. This decrease is the result of a combination of the following factors: SUBJECT: (a) At December 31, 1993 approximately $ 0.625 million was temporarily held in the LAIF account. This was transferred back to operating accounts in early January to cover expenses. (b) The City made the 1993/94 civic Center Certificate of participation paYment of approximately $ 1.445 million in late January. (c) Approximately $ 0.260 million was expensed during the month for the cost of July - December residential garbage service. The December Investment report had identified that the increase in invested funds was anticipated to be temporary. The total balance invested remains high due to a lag in the billing by significant external service providers. This means the City is not spending money as quickly as could be experienced. For example, as of January 31, 1994 the City had received only the invoice for the first three months of services provided by the Alameda County Sheriff's Department. This billing will not be processed and paid until February. Obviously, as these billings catch up it is anticipated that the total portfolio size will decrease. OVerall, the total yield on the City's portfolio for the month of January has increased slightly from the rate shown for the month of December ( 5.172% vs. 5.001% respectively). This is primarily the impact of the new investment purchased in January. In the month of January one new $ 2 million investment transaction was completed. The City purchased an original issue Federal Home Loan Bank (FHLB) , five year note. The investment has provisions for an early call in January of 1995. The instrument was purchased at par and will yield 5.46% to maturity. This transaction increased the portion of the City's portfolio invested in Federal Securities to approximately $ 9.1 million as compared to $ 7.1 million in the month of December. This results in nearly 50% of the City's portfolio being invested in Federal Securities or Agency notes. It also extends the total amount of funds invested, which will mature in more than one year. LAIF is a pooled investment account managed by the State Treasurer. The fund continues to provide an important investment option for public agencies. The fund allows cities to move monies in and out similar to a money market fund. The quarterly average was 4.332% as of January 27, 1994. This is down slightly from the 4.375% rate reported last month. LAIF comprised approximately 38.3% of the total portfolio in January as compared to only 54.7% in th~ month of December. The schedule of investment maturities is anticipated to allow the City to meet anticipated expenditures in the upcoming month. -------------------------------------------~-------------------------- COPIES TO: A.6. CITY CLERK FILE ~ ~ . . City of Dublin City Treasurer's Listinq of Investments As of Jan. 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. TYPp; OF INVESTMENT MATURITY ~ Valu~ ~ POO~~O INVESTMENTS 38.3% of Total Portfolio state of California LAIF MUTU~ fUND 9.3% of Total Portfolio Dean witter Reyno14s U.s. Govt Securities (2) $7,030,000.00 (2) C~T~F~pATES O~ DEPOSIT 2.7% of Total Portfolio First Republic T & L Investors Thrift & Loan Southern Calif FS&L Standard Pacific Svgs World Savings $95,000.00 5.250 $99,000.00 5.560 $98,000.00 5.250 $99,000.00 5.200 $100,000.00 6.010 $491,000.00 GVRNT/AGEHCY SECURITI~S (4) 49.8% of Total Portfolio 9/14/98 7/30/98 9/14/98 7/30/98 1/29/98 Bank of California(Safekeeping) FHLB 8/26/96 FNMA 6/10/97 FNMA(Callable 5/13/96} 5/13/98 FFCB(Callable 2/02/94) 2/02/98 FHLMC(Callable 9/9/94) 9/09/98 FNMA(Callable 10/15/96)10/15/98 U S Treasury Note 10/31/98 FHLB(Callable 11/3/94) 11/03/98 FHLB(Callable 1/12/95) 01/12/99 FNMA(Callable 12/10/96)12/10/98 Total Investments - per books $490,000.00 7.700 $1,205,000.00 9.200 $500,000.00 5.250 $400,000.00 5.800 $500,000.00 4.950 $1,000,000.00 4.875 $1,000,000.00 4.750 $1,000,000.00 5.110 $2,000,000.00 5.460 Sl,OOO.OOO.OO 5.310 $9,095,000.00 INVESTMENT ~ Yi~ld $7,030,000.00 (1) 4.332% $1,699,995.50 (3) 6.039% $95,000.00 $99,000.00 $98,000.00 $99,000.00 S100.000.00 $491,000.00 $490,000.00 $1,281,000.00 $495,000.00 $400,000.00 $498,359.38 $999,375.00 $984,687.50 $1,000,000.00 $2,000,000.00 $999.531.25 $9,147,953.13 $18,368,948.63 =============== 5.250% 5.560% 5.250% 5.200% 6.010% 5.457% 7.700% 7.066% 5.482% 5.800% 5.020% 4.889% 5.101% _ 5.110% 5.460% 5.311% 5.641% 5.172% ------- ------- Footnotes (1) Interest rate shown is quarterly average as of January 27, 1994. (2) As a mutual fund investment this can be liquidated at any given time, however, the asset value will fluctuate based upon the current market rate. The investment strategy assumes that $1 million will be held through July 8, 1999, and $700,001 through September 10, 1999 without a deferred sales charge. Value is calculated at original cost. (3) 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 seven months of dividends at the share price as of 1/27/94. (4) Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Bank (FFCB) and Federal Home Loan Mortgage Corp (FHLMC) are lawful investments for local governmental agencies.