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Home My WebLink About4.15 InvestRpt4thQtr00-01 CITY CLERK File # 320-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: (August 7, 2001) SUBJECT: City Treasurer's Investment Report For 4th Quarter 2000/2001 Report Prepared by Carole Perry, Administrative Services Director and Fred Marsh, Finance Manager ATTACHMENTS: Section I - Section II - RECOMMENDATION:/~ Receive Report Quarterly Investment Report (June 30, 2001) 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 June 30, 2001, 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 fourth quarter of Fiscal Year 2000/2001 are discussed in the staff report below. INVESTMENT ACTIVITY IN FOURTH QUARTER FISCAL YEAR 2000/2001 During the Fourth Quarter four securities were called due to the decline in interest rates that occurred during the quarter, as summarized in the table below: INVESTMENTS CALLED FOURTH QUARTER FISCAL YEAR 2000/2001 TYPE AMOUNT MATURITY YIELD FEDERAL SECURITIES FHLB $2,000,000 12/27/02 6.12% FHLMC $1,000,000 4/16/03 5.70% FNMA $2,000,000 12/18/03 6.62% FHLMC $1,000,000 1 / 13/04 6.00% The City received the full face amount of the investments that were called plUs any accrued interest. The proceeds from these investments, along with other available funds, were temporarily placed in the Nations and Union Bank Government Securities money market accounts. Staff placed an order in June 2001 (which settled in July 2001) for $11 million of additional investments in the following areas: G:\InvestmentsLIune 2001~S. genda staff report.doc COPIES TO: ITEM NO. INVESTMENTS ORDERED FOURTH QUARTER FISCAL YEAR 2000/2001 (SETTLE DATE IN JULY 2001) CALL TYPE AMOUNT MATURITY YIELD DATE FEDERAL SECURITIES FHLB $3,000,000 1/11/05 5.10% 7/11/02 FHLB $3,000,000 7/18/05 5.22% . 7/18/03 FHLB $1,415,000 1 / 17/06 5.42% 1 / 17/03 FHLB $3,585,000 1/17/06 5.42% 1/17/03 Staff will continue to analyze investment opportunities during the next quarter and make additional investments as appropriate. In the most recent quarter the average maturity for the Federal Security portion of the portfolio decreased to 1.3 years, due to the calling of the securities noted above. 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 28% 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 June 30, 2001. The City portfolio assumes that the investments will be held to maturity and there is not an active attempt made to trade 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 Witter US Government Securities Mutual Fund Investment represents 2% of the City's total portfolio. During the 2000-2001 Fiscal Year the City has received to date $96,914 in dividends from this investment, resulting in an annualized yield of 5.925%. The market value of this investment fluctuates on a daily basis and as of June 30, 2001 was $43,046 more than the recorded 6/30/2000 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 June 30, 2001 by source. Comparison information is also shown for the previous quarter. Note that 35% 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 6/30/01 % of Balance Total $43,580,191 56% $2,795,027 4% $579,527 1% $26,424,944 35% $2,868,639 4% $76,248,328 100% 3/31/01 % of Balance Total $39,388,650 56% $2,391,616 3% $441,788 1% $25,078,167 36% $2,871,010 4% $70,171,231 100% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is $6,077,097 more than the amount shown at March 31, 2001. The additional funds were temporarily invested in U.S. Governmental Securities money market fimds during the quarter. The increase primarily reflects the receipt of impact fees, property taxes and building permit fees from new development, as well as the adjustment of the book value of the investments to market value as of Jtme 30, 2001, as required by the Governmental Accounting Standards Board. Overall, the combined rate for the total portfolio decreased from 6:016% at March 31, 2001 to 5.187% at June 30, 2001] The decrease was attributable to the calling of the federal securities noted above, a decrease in the rate of return on the City's LAIF investments operated by the State Treasurer, as well as a decline in the rate of return on money market funds during the quarter. The quarterly average for the City's LAIF investment was 5.32% as of June 30, 2001, which was lower than the 6.17% rate recorded for the quarter ending March 31, 2001. LAIF is a liquid investment, and the current LAIF rate remains very favorable compared to rates offered on investments, which have less flexibility. The schedule of investments, including the dates of maturity, contains 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 4th QUARTER FY 2000-2001 SECTION 1 PRIMARY INVE S TMENT PORTFOLIO CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN June 30, 2001 INVESTMENT 1ST CALL DATE COUPON MATURITY VALUE AT INTEREST BOOK DATE MATURITY RATE YIELD VALUE FEDERAL SECURITIES FHLB 8/15/01 FHLB 9/17/01 FHLB 10/3/01 FHLB 3/10/00 12/10/01 FHLB 2/1/02 FHLB 5/1/02 FHLB 8/15/02 FHLB 11/6/02 FHLB 2/14/03 FHLB .9/2/03 FNMA 11/14/03 FNMA 4/5/04 FHLB 12/27/05 TOTAL FEDERAL SECURITIES MARKET VALUE CERTIFICATES OF DEPOSIT - FDIC INSURED United California Bank 12/9/02 TOTAL CERTIFICATES OF DEPOSIT 2,000,000 5.875% 6.660% 2,003,440 2,003,440 3,000,000 5.875% 6.860% 3,008,430 3,008,430 1,000,000 6.575% 6.099% 1,006,250 1,006,250 2,000,000 5.730% 5.730% 2,015,620 2,015,620 2,000,000 6.750% 6.711% 2,032,500 2,032,500 2,000,000 6.750% 6.920% 2,045,000 2,045,000 2,000,000 6. 000% 6. 200% 2,041,560 2,041,5 60 1,000,000 5.940% 6.780% 1,020,940 1,020,940 1,000,000 7.000% 7.010% 1,038,440 1,038,440 1,000,000 5.627% 6.910% 1,016,250 1,016,250 1,000,000 4.750% 6.920% 999,530 999,530 1,000,000 6.010% 6.010% 1,004,220 1,004,220 2,000,000 6.525% 6.525% 2,034,380 2,034,380 $21,000,000 6.562% $21,266,560 $21,266,5 60 99,000 6.000% 6.000% 99,000 MUTUAL FUNDS Nations Bank Government Reserves Capital Fund Union Bank U.S. G0vt Securities Morgan Stanley Dean WiRer U.S. Govt Securities TOTAL MUTUAL FUNDS 99,000 $99,000 6.000% $99,000 $99,000 POOLED PUBLIC AGENCY INVESTMENTS State of CA.- Local Agency Investment Fund (LAIF) TOTAL INVESTED PORTFOLIO NOTES: 13,156,000 4.010% $13,156,000 11,054,322 3.510% $11,054,322 See Note 1 5.925% (2) $1,594,497 3.914% $25,804,819 $29,077,949 5.320% $29,077,949 5.187% $76,248,328 (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, 2001, 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 bytbe original investment. $13,156,000 $11,054,322 $1,594~497 $25,804,819 $29,077,949 $76,248,328 ITEM I CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE June 30, 2001 TYPE OF INSTRUMENT Federal Home Loan Bank (FHLB) Federal Home Loan Mortgage Corp (FHLMC) Federal National Mortgage Assn (FNMA) SUB -TOTAL GOVT/AGENCY Certificates of Deposit - FDIC Insured Mutual Funds Morgan Stanley Dean Witter U.S. Govt Securities Union Bank U.S. Govt Securities Nations Bank Government Reserves Capital Fund LAIF GRAND TOTAL NOTES: MARKET % OF FACE VALUE BOOK VALUE VALUE PORTFOLIO MATURITY YEARS 19,000,000 19,262,810 19,262,810 25.0% I. 1 0 0 0 0.0% 0.0 2,000,000 2,003,750 2,003,750 2.6% 2.6 21,000,000 21,266,560 21,266,560 (O 27.6% 1.3 99,000 99,000 99,000 0.1% 1.4 1,635,750 1,594,497 1,594,497 (2) 2.1% 11,054,322 11,054,322 11,054,322 14.5 % 13,156,000 13,156,000 13,156,000 17.3% 29,077,949 29,077,949 29,077,949 38.4% $76,023,021 $76,248~28 $76,248~28 100.0% (1) The City intends to hold the investments until maturity or until market values equal or exceed their face value. (2) Book Value is shown as the value recorded in the General Ledger based on the market value at 6/30/2001. (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. 5.0 O) N/A N/A N/A 71311O1 11:48AM ITEM 2 CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 4th QUARTER FY 2000-2001 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 June 30, 2001 In accordance with the Califomia 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 - Shannon Center Cash Register - (5 Locations) Subtotal Balance 06/30/2001 $400.00 $200.00 $700.00 $1,300.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With California Government Code Balance 06/30/2001 $702,975 Annualized Rate of Interest See Note 1 Cai Fed- Regular Savings AccoUnt: FDIC Insured $ 2,063 2.00% Grand Total Amount Cash Balances: $705,038 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 JUNE 30, 2001 MUTUAL FUNDS Dublin Blvd Assessment District First American Govt Obligation Fund COUPON MATURITY VALUE AT INTEREST DATE MATURITY RATE YIELD BOOK VALUE MARKET VALUE See Note 1 3.50% $166,814 $166,814 NOTES: (1) A Mutual Fund does not have a stated maturity date and shares can be sold at any time.