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Home My WebLink AboutItem 4.04 CT InvestmentRpt '"'. i>~<)~';~i.?:~:';,}~:-~-.:f~~:;~I;: ~:; ~. ,'r~~\ .' " _"~' , ':~=:":..:"i,,: '~"i'k ':, t.".',:,"~'~~l~'$,~"r~f~t~i;li'}'tl'U~\:~'R;;,;~::~~(1:B";~;i'\ilJ';.1\"i:'~~l!\;j':'?,\,J;:r":p,..~,:,~ ,~~.:~,,:".~.":~':"" ",I 1"f,";""", "\ : ',';'7;~;t" -r ' L.... . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: october 24, 1994 SUBJECT: city Treasurer's Investment Report: September 30, 1994 01-'< Prepared by: Paul S. Rankin, Assistant City Mgr) EXHIBITS ATTACHED: Listing RECOMMENDATION:~ Receive of Investments as of September 30, 1994 Report DESCRIPTION: The attached listing details the city's investments as of September 30, 1994. The total amount shown as invested is approximately $225,000 more than the amount shown at the end of the previous month. The amount shown as invested includes approximately $300,000, which was temporarily transferred from operating accounts to LAIF at the end of the quarter. This temporary transfer to LAIF at the end of each quarter reduces the annual cost of banking service charges. If the total amount invested was adjusted for this transaction, the comparison of the total amount invested at September 30th would actually be approximately $75,000 less than the prior month. Overall, the total yield on the City's portfolio for the month of September showed a very slight favorable gain from the rate shown for the month of August (5.559% vs. 5.558% respectively). This was primarily due to a favorable change in the rates at the Local Agency Investment Fund and a slight decrease in the Dean witter Mutual Fund investment (the earnings were calculated at <0.066%> less than the previous month). No new investments were purchased in the month of september. Total expenses through the month of September are anticipated to exceed revenue collections for the same periOd. Significant portions of major revenues including Sales Tax and Property Tax are not received until later in the year. Also securing major public services through contract arrangements results in a lag in the recording of expendi tures . For example, in the near future the ci ty anticipates the receipt of the Alameda County Sheriff's Department billing for the first quarter. This billing is typically over $ 700,000 and the City must maintain reasonable liquidity to address cash flow needs. The LAIF quarterly average was 4.974% as of September 30, 1994. This is up slightly from the 4.908% rate reported last month. The return has increased each month for the past six months. The LAIF interest rate should continue to rise in the coming months. For reporting purposes this re~rt includes the Quarterly Rate of 4.974%, since this is how the interest 1S calculated and paid. However, the Daily Rate was at 5.175% on September 30, 1994. For comparison, in Fiscal Year 1993-94 LAIF averaged 4.390%. The data from the first quarter of 1994/95 shows that the fund is up over fifty basis points (+0.584%) compared to the previous fiscal year average. 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 schedule of investment maturi ties is anticipated to allow the Ci ty to meet anticipated expenditures in the upcoming month. ---------_._----~------------------------------------------------------ COPIES TO: CITY CLERK FILE~ 4.4 r .t:__.j,o . . City of Dublin City 'I'reasurer's Listing of Investments As of September 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. TYPE OF INVESTMENT ~ MATURITY Value Rate INVES1'MEN1' Cost ~ POOLED INVESTMENTS 23.5% of Total Portfolio State of CaliforniQ LAIF $4,400,~00.00 $4,400,000.00 (1) 4.974% MU'l'UAL FUND 9.1% of To'tal Portfolio Dean witter Revnolds U.S. Govt Securities (2 ) (2) $1,699,995.50 (3) 6.010% CEH'J.'IFICA'l'ES OF DEPOSI'I' 2.6% of 'I'otal Portfolio First Republic T & L Fremont Investment & Loan Southern Calif FS&L Standard Pacific SVgs World Savings $95,000.00 $99,000.00 $98,000.00 $99,000.00 $100.000.00 $491,000.00 GVRNT/AGENCY SECURITIES (4) 64.8% of Total Portfolio 9/14/98 7/30/98 9/14/98 7/30/98 1/29/98 5.250 5.560 5.250 5.200 6.010 $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 (SafeJ~eeping) FNMA 6/30/95 $500,000.00 5.250 $500,000.00 5.250% FHLB 5/20/96 $500,000.00 6.200 $500,000.00 6.200% FHLB 8/26/96 $490,000.00 7.700 $490,000.00 7.700% U S Treasury Note 2/15/97 $500,000.00 4.750 $488,274.35 5.724% FFCB(Callable 3/03/95) 3/03/97 $500,000.00 5.120 $496,388.80 5.420% FHLMC(Callable 5/24/95) 5/24/97 $500,000.00 6.510 $500,000.00 6.510% FHLB(Callab1e 6/09/95) 6/09/97 $500,000.00 6.720 $500,000.00 6.720% FNMA 6/10/97 $1,205,000.00 9.200 $1,262,000.00 7.066% FNMA(Callable 5/13/96 ) 5/13/98 $500,000.00 5.250 $496,000.00 5.482% FHLMC(Callable 9/09/94) 9/09/98 $500,000.00 4.950 $498,578.12 5.020% FNMA(Cal1able 10/15/96)10/15/98 $1,000,000.00 4.875 $999,463.57 4.889% U S Treasury Note 10/31/98 $1,000,000.00 4.750 $986,984.38 5.101% FHLB(Callable 11/03/94)11/03/98 $1,000,000.00 5.110 $1,000,000.00 5.110% FNMA(Callable 12/10/96)12/10/98 $1,000,000.00 5.310 $999,585.92 5.311% FHLB(Callable 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 $399.770.85 5.564% $12,095,000.00 $12,117,045.99 5.713% Total Investments - per Books $18,708,041.49 5.559% ==:;;:::;===4=====~=;::: -----~~ ---~--~ Footnotes (1) Interest rate shown is quarterly average as of September 30, 1994. (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 $1 million will be held through July 1, 1999, and $699,995 through October 1, 1999, without a deferred sales charge. (3) Market value as of September 28, 1994, based upon original shares invested plus fiscal year to date dividends is $1,555,471. 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 9/28/94 divided by the original cost. (5) 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,