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HomeMy WebLinkAboutItem 4.02 CT Investment Rpt 01-31-1993 . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 22, 1993 t. i . ~~~~a;~e~~;ri~~~ Invest~me~1,~O~~ of prepared by stan Stephens ~~j{m~ance EXHIBITS ATTACHED: ~nvestment Report RECOMMENDATION: <{;ll ~ Rece~ve Report ' SUBJECT: Director DESCRIPTION: Attached is the Investment detail list as of January 31, 1993. The report shows that the city's investment portfolio totals $17,313,171.88. This represents a decr~ase of $1,473,480.18 in the amounts invested when compared to the city's investments of last month, due primarily to the debt service paYment on the 1988 COP's in the amount of $1,023,436. An additional amount of $400,000 was pulled out of LAIF to invest in Federal Farm Credit Bank bonds on February 2, 1993. These bonds will mature in five years (February 2, 1998) and yield 5.80% to maturity. Note that the rate of interest on investments in the Local Agency Investment Fund (LAIF) is calculated on a monthly rolling average. The rate identified for that investment was 'effective as of January 31, 1993. The LAIF pays interest once a quarter. It is managed by the State Treasurer's Office. The advantages in using that investment mechanism is that there is no minimum investment period and the interest earned is determined by the length of time the deposit remains in the fund during any given quarterly period. The city's portfolio will be moved into longer maturities with favorable rates as LAIF's yield declines. The maturity schedule' of the City's investments will permit the city to meet its expenditure requirements for the following month. INSTITUTION MATURITY INVESTMENT Type of Investment Date Value Rate Cost Yield State of California LAIF $15,200,000.00 $15,200,000.00 (1) 4.533% Bank of California FHLB Debentures (2) 2/18/93 $225,000.00 7.650 $223,171. 88 7.710% FHLB Debentures (2) 8/26/96 $490,000.00 7.700 $490,000.00 7.700% FNMA Debentures (2) 6/10/97 S1. 205 .000.00 9.200 Sl.300.000.00 7.066% $1,920,000.00 $2,013,171.88 7.292% World Savings Cert of Deposit 1/29/98 S100.000.00 6.010 S100.000.00 6.010% Total Investments - per books $17,313,171.88 (1) 4.862% --------------- ------- --------------- ------- Footnotes (1) Net decrease in investments during January 1993 = $1,473,480.18'. (2) Federal Home Loan Bank (FHLB) and Federal National Mortgage Association (FN~~) are lawful investments for local governmental agencies. --------------------------------------------------~--------~~-------~- . ITEM NO. 4.2 COPIES TO: CITY CLERK FILE~