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Home My WebLink AboutItem 4.02 CT InvestRpt i .... 1'-. . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: May 9, 1994 SUBJECT : nG/JCity Treasurer's Investment Report: April 30, 1994 '<< (Prepared by: Paul S. Rankin, Assistant City Mgr) EXHIBITS ATrACHED: Listing of Investmegts as of April 30, 1994 RECOJIIIERDATIOR~A/~"~eive Report DESCRIPTION: The attached listing details the city's investments as of April 30, 1994.. The total 8lIlOunt invested is approximately $1,376,000 more than shown at the end of the previous month.. This increase reflects the receipt of the April Property Tax advance from Alameda County. Also due to payment due dates, approximately $500,000 of payments authorized in April will be released in early May. OVerall, the total yield on the City'S portfolio for the month of April has increased slightly from the rate shown for the month of March (5..160% vs.. 5.158% respectively).. This was primarily due to the purchase of a new security, while rates at the Local Agency Investment Fund increased slightly.. These rates of return are anticipated to allow the City to meet its budget estimate for Interest Revenue. As noted in previous reports the market value of the Dean Witter Mutual Fund as well as any Federal securities will fluctuate.. This report identifies the value of the Mutual Fund investment at cost and the Federal securities at an adjusted cost.. The adjusted cost is calculated by amortizing any premium or discount over the life of the investment. With the recent fluctuations in the interest rates on Federal and Agency Bonds, the "Market Value " of the Mutual Fund invest1llent has fluctuated.. The share price as of the date of the April Dividend was $ 8.. 82 as compared to $8.90 at the March Dividend date. In the month of March, one new $ 500,000 investment transaction was completed.. The city purchased a United States Treasury Note, with a maturity date of February 15, 1997. This investment cannot be called prior to the final date of maturity.. The investment has a coupon yield of 4.75%.. However, it was purchased at a discount which resul ts in a yield to maturi ty of 5.. 724% .. The total amount of the discount was $12,656..25.. Comparison of this purchase to a similar purchase made last october, reflects the significant changes which have occurred in the market over recent months.. Last october the city purchased a Treasury Note maturing in october of 1998 and carrying the same coupon of 4.. 75%.. The transaction was also completed at a discount resulting in a yield to maturity of 5.311%.. This was a lower interest yield for a longer maturity than the recent April transaction.. . LAIF is a pooled investment account managed by the State Treasurer.. The fund continues to provide an iaportant 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..333% as of April 27, 1994.. This is up slightly from the 4..261% rate reported last month.. LAIF comprised a slightly larger percentage of the total portfolio when compared to the previous month (37.8% vs. 35.8% in March). This change reflects the increase in short term cash available to invest, as a resul t of the receipt of pr~perty tax revenue. The schedule of investment maturities is anticipated to allow the city to meet anticipated expenditures in the upcoming month.. ---------------------------------------------------------------------- COPIES TO: 4.2 CITY CLERK FILE t 131~loH3'ol " ..,',0!4.,). City of Dublin. Treasurer's Listing of Investments As of ~pr. 30, 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. . city :::: TYPE OF INVESTMENT MATURITY ~ Value Rate INVESTMENT ~ Yield POOLED INVESTMENTS 37.8% of Total Portfolio State of California LAIF $7,479,008.83 I $7,479,008.83 (1) 4.333% MUruAL FUND 8..6% of Total Portfolio Dean Witter Reynolds U.S. Govt Securities (2) (2) $1,699,995.50 (3) 5.940% CERTIFICATES OF DEPOSIT 2.5% of Total Portfolio pirst Republic T & L "nvestors Thrift & Loan ::. .'thern Calif FS&L St .dard Pacific Svgs Wc)' id 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/AGENCY SECURITIES (4) 51.2% of Total Portfolio 9/14/98 7/30/98 9/14/98 7/30/98 1/29/98 $95,000.00 $99,000.00 $98,000.00 $99,000.00 $100.000.00 $491,000.00 5.250% 5.560% 5.250% 5.200% 6.010% 5.457% Bank of California(Safekeeping) FHLB 8/26/96 $490,000.00 U S Treasury Note 2/15/97 $500,000.00 FFCB(Callable 3/03/95) 3/03/97 $500,000.00 FNMA 6/10/97 $1,2Q5,000.00 FNMA(Callable 5/13/96) 5/13/98 $500,000..00 FHLMC(Callable 9/9/94) 9/09/98 $500,000.00 'NMA(Callable 10/15/96)10/15/98 $1,000,000.00 U S Treasury Note 10/31/98 $1,000,000.00 FHLB(Callable 11/3/94) 11/03/98 $1,000,000.00 FHLB(Callable 1/12/95) 1/12/99 $2,000,000.00 FNMA(Callable 2/12/96) 2/12/99 $400,000.00 FNMA(Callable 12/10/96)12/10/98 $1,000~090.00 $10,095,000.00 Total Investments - per books Footnotes (1) Interest rate shown is quarterly average as of April 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 ten months of dividends at the share price as of 4/30/94. (4) 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. 7.700 $490,000.00 7.700% 5.724 $487,343..75 5.724% 5.120 $495,937.50 5.420% 9.200 $1,281,000.00 7.066% 5.250 $495,000.00 5.482% 4.950 $498,359.38 5.020% 4.875 $999,375.00 4.889% 4.750 $984,687.50 5.101% 5.110 $1,000,000.00 5.110% 5.460 $2,000,000.00 5.460% 5.550 $399,750.00 5.564% 5.310 $999.531.25 5.311% $10,130,984.38 5.625% $19,800,988.71 5.160% --------------- -------- --------------- --------