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HomeMy WebLinkAbout4.08 3rd Qtr InvestFY99-00CITY CLERK AGENDA STATEMENT CITY COUNCIL MEETING DATE: (April 18, 2000) SUBJECT: City Treasurer's Investment Report For 3rd Quarter 1999/2000 ~ f,r'x Report Prepared by Fred Marsh, Finance Manager ATTACHMENTS: RECOMMENDATION: Quarterly Investment Report (March 31, 2000) Section I - Section II - /~~Receive Report Primary Investment Portfolio Listing of Supplemental Monies Under City Possession and/or Control DESCRIPTION: The attached Investment Report details the City's investments as of March 31, 2000, in accordance with the Local Agency Investment Guidelines established by the State Treasurer. Section I of the Report focuses on the principal investment portfolio. Section II details funds held by Trustees and miscellaneous operating accounts. The focus of the discussion in this report will be upon activity in the Primary Investment Portfolio. Changes in the investment portfolio and investment activity for the third quarter of Fiscal Year 1999/2000 are discussed in the staff report below. INVESTMENT ACTIVITY IN THIRD QUARTER FISCAL YEAR 1999/2000 During the Third Quarter one certificate of deposit was renewed, as summarized in the table below: INVESTMENTS PURCHASED THIRD QUARTER FISCAL YEAR 1999/2000 VALUE AT CALL TYPE MATURITY MATURITY DATE YIELD CERTIFICATE OF DEPOSIT FIRST REPUBLIC TRUST $95,000 03/7/2001 N/A 6.600% & LOAN In the most recent quarter the average maturity for the Federal Security portion of the portfolio decreased to 2.1 years. It is important to note that this relates solely to the portion of the portfolio which has investments with a stated term. The City maintains adequate funds in more liquid investments, which are deemed sufficient to meet cash flow needs. DETAILED LISTING OF PRIMARY PORTFOLIO Government and Agency Securities represent 32% of the Primary Portfolio. A detailed listing of each security is provided in Item 1. The market value of Federal Securities can fluctuate daily and values have been provided as reported by Union Bank of California as of March 31, 2000. The City portfolio assumes that the investments will be held to maturity and there is not an active attempt made to trade existing COPIES TO: G:klnvestments\march2000~Agenda staff report.doc ITEM NO. securities. The City has staggered the maturity dates within the portfolio and it is not anticipated that these funds will need to be called by the City prior to maturity. The Morgan Stanley Dean Witter US Government Securities Mutual Fund Investment represents 4% of the City's total portfolio. The book value reported is based upon the "market value" as of June 30, 1999, as required by the Governmental Accounting Standards Board. During the 1999-2000 Fiscal Year the City has received to date $68,198 in dividends from this investment, resulting in an annualized yield of 6.254%. The market value of this investment fluctuates on a daily basis and as of March 31, 2000 was $37,665 less than the recorded 6/30/99 book value. Since October 1999, the mutual fund may be redeemed without sales charges. COMPOSITION OF PORTFOLIO - SOURCE OF FUNDS To provide an overview of the portfolio, the table shown on the following page shows the total investment balance as of March 31, 2000 by source. Comparison information is also shown for the previous quarter. Note that 34% of the investment balance represented restricted Impact Fee Funds. It is important to keep in mind that this type of report is merely a snapshot on a particular day. Revenues as well as expenditures are not processed in equal monthly installments. PORTFOLIO COMPOSITION BY SOURCE OF FUNDS General Fund Restricted - Special Revenue Funds (I.e. Gas Tax, Special Taxes) Restricted ~ Assessment District Funds (i.e. Landscape Maint & Debt Service) Restricted - Impact Fees Internal Service / Replacement Funds TOTAL Current Quarter 03/31/2000 % of Balance Total $25,386,446 57% $2,114,923 5% $372,623 1% $15,076,439 34% $1,266,294 3% $44,216,725 100% Prior Quarter 12/31/1999 % of Balance Total $24,036,429 65% $1,896,140 4% $480,406 1% $11,947,126 27% $1,122,615 3% $39,482,716 100% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is $4,734,010 more than the amount shown at December 31, 1999. The additional funds were temporarily invested in LAIF during the quarter. Additional investments in Federal Securities may take place during the next quarter depending on the rate of return available in the marketplace in comparison to LAIF. The increase primarily reflects the receipt of impact fees from new development, as well as property and sales taxes for the quarter. Overall, the combined rate for the total portfolio increased from 5.669% at December 31, 1999 to 5.839% at March 31, 2000. The increase was attributable to an increase in the rate of return on the City's LAIF investments operated by the State Treasurer. The quarterly average for the City's LAIF investment was 5.800% as of March 31, 2000, which was higher than the 5.504% rate recorded for the quarter ending December 31, 1999. LAIF is a liquid investment, and the current LAIF rate remains very favorable compared to rates offered on investments, which have less flexibility. The City Treasurer believes that the schedule of investments, including the dates of maturity, contain adequate cash flow liquidity to meet anticipated expenditures over the next six months. The investments and the schedule of investments are in compliance with the City's investment policy and all applicable laws and regulations. CITY OF DUBLIN QUARTERLY INVESTMENT REPORT SECTION 1 PRIMARY INVESTMENT PORTFOLIO CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN AS OF MARCH 31, 2000 INVESTMENT COUPON MATURITY VALUE AT INTEREST BOOK MARKET DATE MATURITY RATE YIELD VALUE VALUE <4) FEDERAL SECURITIES FNMA (Callable 11/8/99) FNMA FHLB (Callable 6/29/99) FHLB FHLB FHLB (Callable 3/10/2000) FHLB (Callable 11/26/98) FHLB (Callable 11/26/98) FHLB FHLMC FHLMC (Callable 4/13/99) FNMA (Callable 5/19/99) FNMA 11/08/2000 1,000,000 6.220% 6.220% 1,000,940 997,500 11/24/2000 1,000,000 5.890% 6.010% 998,860 996,250 12/29/2000 1,000,000 5.100% 5.100% 990,310 990,310 09/17/2001 1,000,000 5.875% 6.230% 993,910 986,410 10/03/2001 1,000,000 6.575% 6.099% 1,008,990 994,690 12/10/2001 2,000,000 5.730% 5.730% 1,985,620 1,963,740 03/12/2002 1,000,000 5.410% 5.750% 985,940 972,340 06/28/2002 1,000,000 5.435% 5.435% 982,190 967,500 08/15/2002 1,000,000 6.000% 6.200% 994,540 977,340 04/16/2003 1,000,000 5.700% 5.700% 982,500 961,250 01/13/2004 1,000,000 6.000% 6.000% 981,090 958,910 02/19/2004 1,000,000 6.000% 6.000% 982,660 958,910 04/05/2004 1,000,000 6.010% 6.010% 977,190 954,220 TOTAL FEDERAL SECURITIES $14,000,000 5.873% $ t 3,864,740 $13,679,370 CERTIFICATES OF DEPOSIT - FDIC INSURED First Republic Trust & Loan 03/07/2001 Sanwa Bank 12/09/2002 TOTAL CERTIFICATES OF DEPOSIT 95,000 6.600% 6.600% 95,000 95,000 99,000 6.000% 6.000% 99,000 99,000 $194,000 5.755% $194,000 $194,000 MUTUAL FUNDS Nations Bank Government Reserves Capital Fund Morgan Stanley Dean Witter U.S. Govt Securities 5,000.00 5.640% $5,000 $5,000 SeeNote 1 6.254% (2) $1,585,529 $1,547,864 POOLED PUBLIC AGENCY INVESTMENTS State of CA.- Local Agency Investment Fund (LAIF) TOTAL INVESTED PORTFOLIO $28,567,456 5.800% (3) $28,567,456 $28,567,456 5.839% $44,216,725 $43,993,690 NOTES: (1) A Mutual Fund investment does not have a stated date of maturity and shares may be sold at any time. The share price at the time of a sale may be either higher or lower than the original cost. The book value reflects the market value on June 30, 1999, as required by current governmental accounting rules. (2) Interest Rate shown is based on dividends received this fiscal year to date, which are annualized and then divided by the original investment. (3) Interest Rate shown is the monthly average as of March 31, 2000. (4) Market Value shown for the Federal Securities is as of March 31, 2000. ITEM I CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE AS OF MARCH 31, 2000 TYPE OF INSTRUMENT Federal Home Loan Bank (FHLB) Federal Home Loan Mortgage Corp (FHLMC) Federal National Mortgage Assn (FNMA) SUB -TOTAL GOVT/AGENCY MARKET % OF FACE VALUE BOOK VALUE VALUE PORTFOLIO 8,000,000 7,941,500 7,852,330 18.0% 2,000,000 1,963,590 1,920,160 4.5% 4,000,000 3,959,650 3,906,880 9.0% 14,000,000 13,864,740 13,679,370 0) 31.5% Certificates of Deposit - FDIC Insured Mutual Funds - Morgan Stanley Dean Witter U.S. Govt Securities Nations Bank Government Reserves Capital Fund MATURITY YEARS 1.7 1.9 2.3 2.1 194,000 194,000 194,000 0.4% 1.3 1,635,750 1,585,529 1,547,864 (2) 3.6% 5.0 (3) 5,000 5,000 5,000 0.0% N/A 28,567,456 64.5% $43,993,690 100.0% LAIF 28,567,456 28,567,456 GRAND TOTAL $44,402,206 $44,216,725 NOTES: (1) The City intends to hold the investments until maturity or until market values equal or exceed their face value. Market Value shown is as of March 31, 2000. (2) Market value is based upon the shares invested at share price as of March 3 I, 2000. Book Value is shown as the value recorded in the General Ledger based on the market value at 6/30/99. (3) As a mutual Fund shares can typically be liquidated at any time. The weighted average maturity stated in this chart was calculated by Dean Witter based upon all investment instruments owned by the U.S. Government Securities Mutual Fund as of June 30, 1998. This figure represents the duration factor for the Fund and it was reduced from the figure reported for 1997. N/A ITEM 2 CITY OF DUBLIN QUARTERLY ~VESTMENT REPORT SECTION 11 LISTING OF SUPPLEMENTAL MONIES UNDER CITY POSSESSION AND/OR CONTROL OPERATING FUNDS SPECIAL FUNDS HELD BY TRUSTEES City of Dublin Report of Operating Funds On Hand As of March 31, 2000 In accordance with the California Government Code, the City Treasurer must disclose on a quarterly basis all monies in its possession. Monies considered invested, and not immediately necessary for current operations, are presented in a separate listing as part of the quarterly report. In the case of Operating Funds in bank accounts, the mount presented relates to the balance reported by the Financial Institution. IT IS IMPORTANT TO NOTE THAT THIS AMOUNT MAY REFLECT FUNDS REQUIRED TO. COVER PAYMENTS ALREADY ISSUED AND CHECKS WHICH HAVE NOT CLEARED AS OF THE LAST DAY OF THE QUARTER. Therefore, these balances will fluctuate throughout the year. These funds are not subject to a specified maturity and the par value would be equivalent to the amount stated. Miscellaneous Cash Non-Categorized - Cash Petty Cash - City Petty Cash - Recreation Cash Register - (4 Locations) Subtotal Balance 03/31/2000 $200.00 $200.00 $425.00 $825.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With California Government Code Balance 03/31/2000 Annualized Rate of Interest $809,064 See Note 1 Cai Fed- Regular Savings Account: FDIC Insured $1,541 2.00% Grand Total Amount Cash Balances: $810,605 Note 1: The City operating account is a corporate checking account, which includes monthly interest earnings which are at a variable rate. The interest earnings are credited against account charges and fees required to maintain the accounts. All interest earnings in excess of account charges are paid to the City on a monthly basis. SPECIAL FUNDS HELD BY TRUSTEES CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN FOR THE QUARTER ENDING MARCH 31, 2000 MUTUAL FUNDS Dublin Bivd Assessment District First American Govt Obligation Fund COUPON MATURITY VALUE AT INTEREST DATE MATURITY RATE YIELD See Note 1 5.30% BOOK VALUE $155,133.71 MARKET VALUE $155,133.71 NOTES: (1) A Mutual Fund does not have a stated maturity date and shares can be sold at any t/me.