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HomeMy WebLinkAboutItem 4.03 CT InvestmentRpt . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: December 13, 1993 ,~City Treasurer's Investment Report:November 30, 1993 ~~ (Prepared by: Paul S. Rankin, Assistant city Mgr) EXHIBITS ATTACHED,~ting of Investments as of November 30, 1993 RECOMMENDATION: Receive Report ' SUBJECT: DESCRIPTION: The attached listing details the City's investments as of November 30, 1993. The total amount invested is less than shown in the previous month by approximately $ 510,300. OVerall, the total yield on the city's portfolio for the month of November increased slightly from the rate shown for the month of October (5.067% vs. 4.966% respectlvely). In the month of November two new investment transactions were completed. The city purchased an original issue Federal Home Loan Bank , five year note. The investment has provisions for an early call in November of 1994. The instrument was purchased at par and will yield 5.11%. The second instrument purchased was a 5 year U.S. Treasury Note. Although the coupon rate on this investment is 4.750%, it was purchased at a discount which brings the yield to maturity up to 5.101%. The cost of this investment was $ 984,687.50. These transactions increased the portion of the City's portfolio invested in Federal Securities to approximately 35.4% as compared to 23.3% in the month of October. The Treasury investment also provides a securi ty which cannot be called before its stated maturi ty date, unlike many of the recent Federal Agency purchases. 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 4.366% as of November 29, 1993. This is down slightly from the 4.380% rate reported last month. The City of Dublin has continued to decrease its reliance on LAIF as an investment vehicle. The total percentage of the city's portfolio placed in LAIF declined from 64.4% in October to 52.0% in November. The Ci ty has continued with a schedule of incremental movement of a portion of the portfolio into investment vehicles other than LAIF I each month since May of 1993. The schedule of investment maturities is anticipated to allow the city to meet anticipated expenditures in the upcoming month. COPIES TO: ~o.AJ. CITY CLERK FILE~ :.:.1....... ,. ....-- ... _I . City of Dublin. city Treasurer"s Listing of Investments As of Nov. 30, 1993 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 INVES~ MATURITY ~ VaJ-Qe ~ PQQLJD IJfVESTMEHTS 52.0% of Tot.al Portfolio state of California LAIF HUTUAL PUHD 9.8' of Total Portfolio Dean Witter Reynolds U.s. Govt Securities (2 ) $9,050,000.00 (2) CJRTIFI~TES pF DE~~IT 2.8% of Total Portfolio $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 $491,000.00 GVlU{II'/AGEHCY SECURI~IE$ (4) 35. 4~ of Total Portfolio First Republic T & L Investors Thrift & Loan Southern Calif FS&L Standard Pacific Svgs World Savings 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 2/02/98 Lehman Brothers(Safekeeping) 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 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 $6,095,000.00 INVESTMENT ~ Yield $9,050,000.00 (1) 4.366% $1,699,995.50 (3) 6.200% $95,000.00 $99,000.00 $98,000.00 $99,000.00 $100,000.00 $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 $6,148,421.88 $17,389,417.38 =============== 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% 5.754% 5.067% ------- ------- Footnotes (1) Interest rate shown is quarterly average as of November 29, 1993. (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 quarter to date dividends reinvested. (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.