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HomeMy WebLinkAboutItem 4.03 Invest 1st Qtr 99-00CITY CLERK FILE # 320-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: (November 2, 1999) SUBJECT: City Treasurer's Investment Report For 1st Quarter 1999/2000 Report Prepared by Fred Marsh, Finance Manager ATTACHMENTS: Quarterly Investment Report (September 30, 1999) ,2~.~ .Section I - Primary Investment Portfolio Section II - Listing of Supplemental Monies Under City Possession and/or Control RECOMMENDATION: Receive Report DESCRIPTION: The attached Investment Report details the City's investments as of September 30, 1999, 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 first quarter of Fiscal Year 1999/2000 are discussed in the staff report below. INWESTMENT ACTIVITY IN FrRST QUARTER FISCAL YEAR 1999/2000 During the First Quarter two new securities were purchased during the period, as summarized in the table below: INVESTMENTS PURCHASED FIRST QUARTER FISCAL YEAR 1999/2000 VALUE AT CALL TYPE MATURITY MATURITY DATE YIELD FEDERAL SECURITIES' FHI,B $1,000,000 10/03/2001 N/A 6.099% FHLB $1,000,000 08/15/2002 N/A 6.200% The first security listed above was purchased at a premium of $8,990 and the second security was purchased at a discount of $5,460. Neither of these investments have a call options, which means that they ',viII not be redeemed by the issuing party prior to their maturity date. In the most recent quarter the average maturity for the Federal Security portion of the portfolio decreased slightly to 3.02 years. It is importam to note that this relates solely to the portion of the portfolio which has investments with a stated term. '?he City maintains adequate funds in more liquid investments, which are deemed sufficient to meet cash flow needs. G:XL'N'VS,VLNTS~ept99~,.genda staff report.doc COPIES TO: ITEM NO. DETAILED LISTING OF PRIMARY PORTFOLIO Government and Agency Securities represent 31% 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 September 30, 1999. The City portfolio assumes that the investments will be held to maturity and there is not an active attempt made to trading/ existing 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 Wilier US Government Securities Mutual Fund Investment represents approximately 4.1% 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 $24,970 in dividends from this investment, resulting in an annualized yield of 6.106%. The market value of this investment fluctuates on a daily basis and as of September 30, 1999 was $16,142 less than the recorded 6/30/99 book value. The mutual fund may be redeemed without sales charges beginning in October of 1999. 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 September 30, 1999 by source. Comparison information is also shown for the previous quarter. Note that 40% of the September 30th 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 Prior Quarter 09/30/I 999 % of 06/30/1999 % of Balance Total Balance Total $19,828,162 52% $17,130,684 49% $1,649,503 4% $1,785,636 5% $283,902 1% $523,330 2% $15,222,611 40% $14, 123,343 41% $1,092,370 3 % $1,023,507 3 % $38,076,548 100% $34,586,500 100% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total mount shown as invested in the Primary Investment Portfolio is $3,490,048 more than the mount shown at June 30, 1999. The amount invested in Federal Securities increased by approximately $2,003,530, while the City's combined investment in liquid investments including the Local Agency Investment Fund (LAIF) increased by $1,486,518. The increase primarily reflects the receipt of impact fees and sales taxes during the quarter. Overall, the combined rate for the total portfolio increased slightly from 5.332% at June 30, 1999. to~ 5.452% at September 30, 1999. The increase was attributable to the purchase of two federal securities with higher rates during the quarter and an increase in the rate of remm on the City's LAIF investments operated by the State Treasurer. The quarterly average for the City's LAIF investment was 5.224% as of September 30, 1999, which was higher than the 5.099% rate recorded for the quarter ending June 30, 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 INVE S TMENT PORTFOLIO CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN AS OF SEPTEMBER 30, 1999 INVESTMENT COUPON MATURITY VALUE AT INTEREST DATE MATURITY RATE YIELD BOOK MARKET VALUE VALUE ¢'~ ' FEDERAL SECURITIES FNMA (Callable 11/8/99) FHLB (Callable 6/29/99) 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 1,000,000.00 6.220% 6.220% 12/29/2000 1,000,000.00 5.100% 5.100% 10/03/2001 1,000,000.00 6.575% 6.099% 12/10/2001 2,000,000.00 5.730% 5.730% 03/12/2002 1,000,000.00 5.410% 5.750% 06/28/2002 1,000,000.00 5.435% 5.435% 08/15/2002 1,000,000.00 6.000% 6.200% 04/16/2003 1,000,000.00 5.700% 5.700% 01/13/2004 1,000,000.00 6.000% 6.000% 02/19/2004 1,000,000.00 6.000% 6.000% 04/05/2004 1,000,000.00 6.010% 6.010% $12,000,000.00 5.832% TOTAL FEDERAL SECURITIES 1,000,940.00 999,060.00 990,310.00 989,690.00 1,008,990.00 1,009,530.00 1,985,620.00 1,978,440.00 985,940.00 981,090.00 982, 190.00 979,380.00 994,540.00 994,220.00 982,500.00 977, 190.00 981,090.00 974,060.00 982,660.00 975,000.00 977,190.00 969,220.00 $11,871,970.00 $11,826,880.00 CERTIFICATES OF DEPOSIT - FDIC INSURED First Republic Trust & Loan 3/7/2000 Sanwa Bank 12/09/1999 TOTAL CERTIFICATES OF DEPOSIT MUTUAL FUNDS Nations Bank Government Reserves Capital Fund Moran Stanley Dean Witter U.S. Govt Securities 95,000.00 5.500% 5.500% 95,000.00 95,000.00 99,000.00 5.600% 5.600% 99,000.00 99,0Dr' % $194,000.00 5.551% $194,000.00 $194,~ 5,000.00 5,070% See Note 1 6.106% $5,000.00 $5,000.00 $1,585,529.18 $1,569,386.91 POOLED PUBLIC AGENCY INVESTMENTS State of CA.- Local Agency Investment Fund (LAIF) $24,420,048.35 5.224% ~3) $24,420,048.35 $24,420,048.35 TOTAL INVESTED PORTFOLIO 5.452% $38,076,547.53 $38,015,315.26 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 September 30, 1999. (4) Market Value shown for the Federal Securities is as of September 30, 1999. ITEM 1 CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE AS OF SEPTEMBER 30, 1999 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 MATURITY FACE VALUE BOOK VALUE VALUE PORTFOLIO YEARS 7,000,000.00 6,947,590.00 6,932,350.00 58.3% 2.50 2,000,000.00 1,963,590.00 1,951,250.00 16.7% 2.27 3,000,000.00 2,960,790.00 2,943,280.00 25.0% 3.59 12,000,000.00 11,871,970.00 11,826,880.00 (D 31.4% 3.05 Certificates of Deposit - FDIC Insured Mutual Funds - Morgan Stanley Dean Witter U.S. Govt Securities Nations Bank Government Reserves Capital Fund 194,000.00 194,000.00 194,000.00 0.5% 0.56 1,635,749.56 1,585,529.18 1,569,386.91 o> 4.1% 5,000.00 5,000.00 5,000.00 0.0% N/A LAIF 24,420,04835 24,420,04835 24,420,04835 64.0% N/A GRAND TOTAL $38,254,797.91 $38,076,547.53 $38,015,315.26 100.0% 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 September 30, 1999. (2) Market value is based upon the shares invested at share price as of September 30, 1999. 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. ITEM 2 CITY OF DUBLIN QUARTERLY INVESTMENT 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 September 30, 1999 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 amount 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 throu~hout 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 09/30/99 $200.00 $200.00 $475.00 $875.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS BANK OF A3~ERICA- Collateralized Public Money Deposits In Accordance With California Government Code Balance 09/30/99 $529,519.85 Annualized Rate of Interest See Note 1 Cal Fed- Regular Savings Account: FDIC Insured $17.03 2.00% Grand Total Amount Cash Balances: $529,536.88 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 IIELD BY TRUSTEES CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING I~ATE OF RETURN FOR THE QUARTER ENDING SEPTEMBER 30, 1999 MUTUAL FUNDS Dublin Blvd Assessment District First Americau Govt Obligation Fund COUPON MATURITY VALUE AT INTEREST DATE MATURITY RATE YIELD See Note I 4.80% BOOK VALUE $151,995.23 MARKET VALUE $151,995.23 NOTES: (1) A Mutual Fund does not have a stated maturity date and shares can be sold at any time.