HomeMy WebLinkAboutItem 4.10 Investment Report 1st Qtr 06-07
CITY CLERK
File # D5Iz:J[Q-[3][Q
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: October 17,2006
SUBJECT:
City Treasurer's Investment Report for 1st Quarter 2006-2007
Report Prepared by Paul S. Rankin, Administrative Services
Director and Fred Marsh, Finance Manager
ATTACHMENTS:
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RECOMMENDA TION:~ Receive Report
DESCRIPTION: The attached Investment Report details the City's investments as of September 30,
2006, in accordance with the Local Agency Investment Guidelines established by the State Treasurer.
Section I of the Report focuses on the primary 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 2006-2007 are discussed in the staff report below.
Quarterly Investment Report (September 30, 2006)
Section I - Primary Investment Portfolio
Section II - Listing of Supplemental Monies Under City
Possession and/or Control
INVESTMENT ACTIVITY DURING THE QUARTER
During the first quarter, the Morgan Stanley Dean Witter U.S. Government Securities Mutual Fund was
liquidated for a total of $1,594,296, at a gain of $8,892. The funds were reinvested in securities which
have a stated maturity date. The Dean Witter Fund was a mutual fund which had a fluctuating share price.
Although since 1994 it had provided a return of approximately 4.62%, its performance was only slightly
better than LAIF for the same period, which provided a yield of 4.41 %. During the most recent year the
Morgan Stanley investment underperformed LAIF. In addition, one investment matured during the
quarter, as summarized in the table below
INVESTMENTS MATURED DURING THE FIRST QUARTER
Type Value at Maturity Maturity Date Current Yield
FHLB $5,000,000 9/15/2006 3.625%
Staff purchased four new securities during the period, as noted below:
INVESTMENTS PURCHASED DURING THE FIRST QUARTER
Type Value at Maturity Maturity Date Current Yield Call Date
FHLB $1,000,000 8/16/2007 5.440% 11/16/06
FHLB $3,000,000 12/22/2008 5.630% 9/22/06
FHLB $2,000,000 6/15/2009 5.380% 6/15/07
FNMA $2,000,000 4/26/2011 5.660% 4/26/07
COPIES TO:
ITEMNO.~
Document in quarterly investment report worksheets
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In the most recent quarter the average maturity for the Federal Security portion of the portfolio is
estimated at 1.3 years. This is a decrease from the 1.4 average maturity reported as of June 30, 2006. It is
important to note that this relates solely to the portion of the portfolio that 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 76% of the Primary Portfolio. A detailed listing of each
security is provided in Section I. 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.
COMPOSITION OF PORTFOLIO - SOURCE OF FUNDS
To provide an overview of the portfolio, the table below shows the total investment balance by source of
funds, for the first quarter of Fiscal Year 2006-2007 and as compared to one year ago. The distribution
between the types of funds remains relatively consistent with the General Fund representing
approximately half of the portfolio. Although the total portfolio has increased from one year ago by
approximately $7.2 million, the total amount shown as invested in the Primary Investment Portfolio is
approximately $127,000 more than the amount shown at June 30, 2006.
General Fund
Restricted - Special $3,974,837 3.6% $5,179,190 5.0%
Revenue (i.e. Gas Tax)
Restricted Assessment $448,406 0.4% $647,873 0.6%
Districts
Restricted - Impact
Fees; Housing In Lieu $41,173,763 37.5% $34,692,803 33.8%
Fees
Internal Service / $10,451,307 9.5% $8,816,061 8.6%
Replacement Funds
Total Invested $109,927,798 $102,760,899
Calculated Quarterly I 4.204% 3.361 %
Return
CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT
Overall, the combined rate for the total portfolio increased from 4.061 % at June 30, 2006 to 4.204% at
September 30, 2006. The general economic climate has supported increasing interest rates. The 1st
quarter increase was attributable primarily to an increase in the rate of return on the City's investments in
Federal Securities, LAIF, the Union Bank US Government Securities Money Market account and the
Bank of America Columbia Funds Government Reserves Money Market Account.
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The quarterly average for the City's LAIF investment was 4.93% as of September 30, 2006, which was
higher than the 4.53% rate recorded for the quarter ending June 30,2006. One year ago the LAIF rate was
at 3.19%
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.
RECOMMENDATION:
Staff recommends that Council receive this report.
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CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
1st QUARTER FY 2006-2007
SECTION I
PRIMARY INVESTMENT
PORTFOLIO
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CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS )0!-0
INCLUDING RATE OF RETURN
September 30, 2006
COUPON
MATURITY VALUE AT INTEREST CURRENT MARKET
INVESTMENT 1ST CALL DATE DATE MATURITY RATE YIELD VALUE
FEDERAL SECURITIES
FHLB 10/19/05 10/19/2006 1 3,000,000 3.270% 3.290% 2,997,180
FHLB 4/20/05 10/20/2006 1 5,000,000 3.000% 3.020% 4,993,750
FHLB 6/14/05 12/14/2006 1 3,000,000 3.350% 3.380% 2,987,820
FNMA 7/2/04 12/29/2006 1 3,520,000 3.000% 3.040% 3,500,218
FHLB 6/3/04 1/2/2007 1 4,480,000 3.000% 3.040% 4,454,822
FHLMC 1/3/2007 1 500,000 6.525% 6.490% 501,405
FHLMC 3/28/06 1/22/2007 1 4,275,000 4.750% 4.770% 4,267,733
FFCB 1/23/2007 1 421,000 4.600% 4.620% 420,078
FHLB 2/15/2007 1 4,000,000 4.875% 4.890% 3,993,760
FHLB 2/28/2007 1 2,000,000 4.875% 5.020% 1,996,260
FHLB 10/27/04 4/27/2007 1 3,000,000 3.150% 3.210% 2,964,390
FNMA 8/11/04 5/11/2007 1 3,000,000 3.250% 3.310% 2,964,390
FHLB 8/18/04 5/18/2007 1 2,000,000 3.000% 3.070% 1,972,500
FHLB 11/16/06 8/16/2007 1 1,000,000 5.440% 5.440% 1,000,310
FHLB 12/28/06 9/28/2007 1 3,000,000 5.420% 5.430% 3,000,930
FHLB 2/11/05 2/11/2008 2 2,500,000 3.420% 3.530% 2,447,650
FHLMC 4/27/05 4/28/2008 2 5,000,000 3.500% 3.620% 4,888,050
FHLB 12/24/03 6/24/2008 2 9,000,000 3.100% 3.240% 8,718,750
FHLB 9/30/03 6/30/2008 2 1,000,000 3.200% 3.340% 970,000
FHLB 2/28/07 8/28/2008 2 1,000,000 5.500% 5.490% 1,000,940
FHLMC 10/7/04 10/7/2008 3 5,000,000 3.300% 3.460% 4,840,650
FHLB 6/29/04 12/3/2008 3 2,180,000 4.000% 4.130% 2,135,724
FHLB 9/22/06 12/22/2008 3 3,000,000 5.610% 5.630% 3,000,000
FNMA 7/7/04 4/7/2009 3 5,000,000 3.550% 3.730% 4,837,500
FHLB 6/15/07 6/15/2009 3 2,000,000 5.375% 5.380% 1,998,760
FHLB 4/19/05 10/19/2009 4 5,000,000 4.250% 4.410% 4,889,050
FNMA 4/26/07 4/26/2011 5 2,000,000 5.670% 5.660% 2,003,760
TOTAL FEDERAL SECURITIES $84,876,000 3.923% $83,746,380
MUTUAL FUNDS
Union Bank U.S. Govt Securities $9,029,181 5.260% $9,029,181
Bank of America Columbia Funds Government Reserves $10,000,187 5.120% $10,000,187
TOTAL MUTUAL FUNDS 5.186% $19,029,368
POOLED PUBLIC AGENCY INVESTMENTS
State of CA.- Local Agency Investment Fund (LAIF) $7,138,273 4.930% $7,152,050
TOTAL INVESTED PORTFOLIO 4.204% $109,927,798
Year to Date Change in Market Value on Investments $707,469
Maturity Schedule Summary of Portfolio (Assuming None of Securites are called prior to Maturity)
Money Market Funds/LAIF (1 day liquidity)
Maturing in 1 year or less
Maturing in 1-2 years
Maturing in 2-3 years
Maturing in 3-4 years
Maturing in 4-5 years
$26,181,418 25%
$42,015,546 38%
$18,025,390 16%
$16,812,634 15%
$4,889,050 4%
$2,003,760 2%
$109,927,798 100%
Total Portfolio
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ITEM 1
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CITY OF DUBLIN
SUMMARY OF INVESTMENT PORTFOLIO
COMPARISON BY INVESTMENT TYPE
September 30, 2006
AVERAGE
MARKET %OF MATURITY
VALUE PORTFOLIO YEARS
$55,522,596 50.6% 1.2
420,078 0.4% 0.3
13,305,868 12.2% 1.8
14,497,838 13.3% 1.3
83,746,380 (I) 76.4% 1.3
TYPE OF INSTRUMENT
Federal Home Loan Bank (FHLB)
Federal Farm Credit Bureau (FFCB)
Federal National Mortgage Assn (FNMA)
Federal Home Loan Mortgage Corporation
(FHLMC)
SUB -TOTAL GOVT/AGENCY
Mutual Funds
Union Bank U.S. Govt Securities
9,029,181
8.1%
N/A
Bank of America Columbia Government
Reserves Capital Fund
10,000,187
9.0%
N/A
LAIF
7,152,050
6.5%
N/A
GRAND TOTAL
$109,927,798
100.0%
NOTES:
(1) The City intends to hold the investments until maturity or until market values equal or exceed their face value.
10/3/2006 3:01 PM
ITEM 2
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CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
1st QUARTER FY 2006-2007
SECTION II
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, 2006
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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
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-Cate2orized - Cash
Cash Registers/Petty Cash - City
Subtotal
Balance
9/30/2006
$1,000.00
$1,000.00
OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS
Bank Balance
9/30/2006
General Led2er
Balance 9/30/2006
BANK OF AMERICA-
Collateralized Public Money
Deposits In Accordance With
California Government Code
$80,750
$100,989
NATIONS BANK
U.S. Treasury Reserves Adviser
Account (Sweep Account connected
to Bank of America Deposits listed
above)
$508,942
$508,942
Citibank-
Regular Savings Account:
FDIC Insured
$615
$615
Grand Total Amount
Cash Balances:
$590.307
$610.546
SPECIAL FUNDS HELD BY TRUSTEES
CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS
INCLUDING RATE OF RETURN
For the Quarter Ending September 30, 2006
MATURITY
DATE YIELD
BOOK
VALUE
MUTUAL FUNDS
Dublin Blvd Assessment District
First American Govt
Obligation Fund See Note 1
4.70%
$166,577
NOTES:
(1) A Mutual Fund does not have a stated maturity date and shares can be sold at any time.
MARKET
VALUE
$166,577
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