HomeMy WebLinkAboutItem 4.02 InvestmentRpt2ndQtr
CITY CLERK
File # D0[2J[QJ-b3][Q]
CITY
AGENDA STATEMENT
COUNCIL MEETING DATE: February 1, 2005
SUBJECT:
City Treasurer's Investment Report for 2nd Quarter 2004-2005
Report Prepared by Carole A. Perry, Administrative Services
Director and Fred W Marsh, Finance Manager
ATTACHMENTS:
Quarterly Investment Report (December 31, 2004)
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 December 31,
2004, 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 1l details funds held by
Trustees and miscellaneous operating accounts. The focus of the discussion in this report wj]] be upon
activity in the Primary Investment Portfolio. Changes in the investment portfolio and investment activity
for the second quarter of Fiscal Year 2004-2005 are discussed in the staff report below.
INVESTMENT ACTIVITY DURING THE OUARTER
During the second quarter two investments matured or were called due to the decline in interest rates that
occurred during the quarter, as summarized in the table below:
INVESTMENTS CALLED OR MATURED DURING nIB SECOND QUARTER
-
..1':lIJe
FHLB
FHLB
Value at
Maturitv
$3 000 000
$2,500 000
Maturity
Date
12/15/2004
11/13/2008
Current
Yield _.~
3.875%.
4.070%
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 used to purchase three new
securities during the period, as summarized in the table below:
INVESTMENTS PURCHASED DURING THE SECOND QUARTER
T )e
FHLB
FHLB
FHLB
Value at
Maturitv
$5,000,000
$3 000 000
$5,00.9¡J00
Maturity
Date
10/20/2006
12/14/2006
10/19/2009
Current
Yield
3.010%
3.350%
4.250%
Call
Date
4/20/05
6/14/05
-"
4/19/05
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In the most recent quarter the average maturity for the Federal Security portion of the portfolio is
estimated at 3 years. 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 60% of the Primary Portfolio. A detailed listing of each
security is provided in Section I. The market value of Federal Securities can fluctuate daily and values
have been provided as reported by Union Bank of California as of December 31, 2004. 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 2004-2005 Fiscal Year the City has received to date $28,983 in
dividends from this investment, resulting in an annualized yield of 4.362%. 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 below shows the total investment balance as of
Decenlber 31, 2004 by source. Comparison information is also shown for the previous quarter. Note that
approximately 36% of the investment balance represents 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 wel1 as
expenditures are not processed in equal monthly instal1ments.
PORTFOLIO COMPOSITION BY SOURCE OF FUNDS
2/3 1/2004 % of 9/3012004 % of
Balance Total Balance Total
General fund $54,393,911 5 LPVc, $50,537,867 49.9%
Restricted ~ Special Revenue Funds S5,047,912 4.7% S4,006,390 4.0%
(I.e. Gas Tax, Special Ta,e,)
RestrÎcted ~ Assessment District Funds $598,031 0.6% $358,870 0.4%
(i.e. Landscape Maint & Debt Service)
Restricted - Impact Fees $38,100,071 35.8% $38,142,269 37.8%
Internal Service I Replacement fund$ $8,245,926 7.8% $7,958,413 7.9%
TOTAL $106385,851 100,0% $tOl,Om,ß09 100.0%
CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT
The total amount shown as invested in the Primary Investment Portfolio is approximately $5.4 mil1ion
more than the amount shown at September 30, 2004 due to the receipt of property taxes from Alanleda
County. Ovcral1, the combined rate for the total portfolio increased from 2.706% at September 30,2004
to 2.912% at December 31, 2004. The increase was attributable primarily to an increase in the rate of
return on the City's investments in LAlF as well as the purchase of the three federal securities mentioned
earlier in this report.
The quarterly average for the City's LAlF investment was 2,01% as of December 31, 2004, which was
higher than the 1.68% rate recorded for the quarter ending September 30, 2004.
J.~3
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
arc in compliance with the City's investment policy and all applicable laws and regulations.
RECOMMENDATION: Staff recommends that Council receive this report.
3q,3
\ ~l.Q
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
2nd QUARTER FY 2004-2005
SECTION I
PRIMARY INVESTMENT
PORTFOLIO
';))i '0 5"
IIEM 4.2.
CITY OF DUBUN DETAILED LISTING OF INVESTMENTS d- Db'-..O
INCLUDING RATE OF REl1JRN
December 31, 2004
COUPON BOOK AND
MATURITY VAI.UE AT INTEREST CURRENT MARKET
INVESTMENT 1ST CALI. DATE DATE MATURITY RATE YIELD VALUE
FEDERAL SECURITIES
FHLB 4/20/05 10/20/2006 2 5,000,000 3,000% 3_010% 4,979,700
FHLB 6114/05 12/14/2006 2 3,000,000 3,350% 3_350% 3,000,930
FNMA 7/2/04 12/29/2006 2 3,520,000 3,000% 3.020% 3,50 I ,309
FliLß 6/3/04 1/212007 3 4,480,000 3.000% 3.020% 4,454,822
FHLMC 1/3/2007 3 500,000 6525% 6.120% 531,250
FFCB 1123/2007 3 421,000 4,600% 4.480% 432,051
FHLB 211512007 3 4,000,000 4,875% 4.720% 4,126,240
fllLB 10/27/04 4127/2007 3 3,000,000 3.150% 3.170% 2,985,930
FNMA 8111/04 5111/2007 3 3,000,000 3.250% 3.260% 2,990,640
FHLB 8118/04 5118/2007 3 2,000,000 3.000% 3.030% 1,984,380
FHLB 2/11105 2/1112008 4 2,500,000 3.420% 3.440% 2,492,200
FHLMC 4/27/05 4/28/2008 4 5,000,000 3.500% 3.510% 4,988,250
FHLB 12/24103 6/24/2008 4 9,000,000 3,100% 3.160% 8,845,290
FHLß 9/30/03 6/30/2008 4 1,000,000 .1.200% 3.250% 985,940
FHLMC 10/7/04 10/7/2008 4 5,000,000 3.300% 3,350% 4,936,800
FHLB 6/29/04 12/3/2008 4 2,180,000 4.000% 4.030% 2,178,648
FNMA 7/7/04 4/7/2009 5 5,000,000 3,550% 3.600% 4,943,750
FHLB 4/19105 10/19/2009 5 5,000,000 4_250% 4,250% 5,009,400
TOTAL FEDERAL SECURITIES $63,601,000 3.476% $63,367,530
MUTUAL FUNDS
3,313,490
See Note I
1.964% $274,187
1.760% $3,313,490
4.362% (2) $1,626,782
2,571 % $5,214,459
2.010% $37,803,862
2.912% $106.385.851
Nations Bank Government Reserves
Capital Fund
Unìon Bank U.S. GoY! Securities
Morgan Stanley Dean Winer U.S. GOV! Securìtles
274,187
TOTAL MUTUAL FUNDS
POOLED PUBLIC AGENCY INVESTMKNTS
State of CA.- Local Agency Investment Fund (LAIF)
$37,803,862
TOTAL INVESTED PORTFOLIO
NOTES:
(1) A Mutual Fund investment does not have a stated date of maturity and sh~res 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.
(2) Interest Rate shown is based on dividends received this fiscal year to datc~ which are anrll,HI.lb:ed and then divided by the original
ìnvestment.
Maturity Schedule Summary of Portfolio (A.sumlng None nf Securite. are called prior to Maturity)
Money Market Fund<iLAIF (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
$43,01 R,321
$0
$11,481,939
$17,505,313
$24,427,128
$9,953,150
41%
0%
ll%
16%
23%
9%
Total Portfolio
$106.38S,R51
100%
1/51200512:04 ÞM
ITEM 1
3 OCJ lo.
CITY OF DUBLIN
SUMMARY OF INVESTMENT PORTFOLIO
COMPARISON BY INVESTMENT TYPE
December 31,2004
TYPE OF INSTRUMENT
BOOK AND AVERAGE
MARKET %OF MATURITY
VALUE PORTFOLIO YEARS
41,043,480 38.6% 2_9
432,051 0.4% 2.1
11,435,699 10.8% 3_1
10,456,300 9.9% 3.5
63,367,530 (I) 59.7% 3.0
Federal Home Loan Bank (FHLB)
Fedeml Farm Credit Bureau (FFCB)
Federal National Mortgage Assn (FNMA)
Federal Home Loan Mortgage Corporation
(FHLMC)
SUB -TOTAL GOVT/AGENCY
Mutual Funds
Morgan Stanley Dean Witter U.S. Govt
Securities
1,626,782 (2)
1.5%
N/A
Union Bank U.S. Govt Securities
3,313,490
3.1%
N/A
Nations Bank Government Reserves
Capital Fund
LAIF
274,187 0.3% N/A
37,803,862 35.4% N/A
$106,385,851 100.0%
GRAND TOTAL
NOTES:
(1) The City intends to hold the investments until maturity or until market values equal or exceed their face value.
(2) As a mutual Fund shares can typically be liquidated at any time. The weighted average maturity stated in this chi
by Dean Witter based upon aU investment instruments owned by the U.S. Government Securities Mutual Fund.
1/S/2005 9:S1 AM
ITEM 2
l-\-DoU:>
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
2nd QUARTER FY 2004-2005
SECTION II
LISTING OF SUPPLEMENTAL
MONIES UNDER CITY
POSSESSION AND/OR
CONTROL
. OPERATING FUNDS
. SPECIAL FUNDS HELD BY TRUSTEES
5CültL
City of Dublin Report of
Operating Funds On Hand
As of December 31, 2004
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, arc 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 REQUfRED 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.
MIseeUaneous Cash
Non-Catelwrlzed - Cash
Cash Registers/Petty Cash - City
Subtotal
Balance
12/31/2004
$1.300.00
$1,300.00
OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS
Bank Balance
12/3112004
General Ledl!er
Balance 12/3112004
BANK OF AMERICA-
Collateralized Public Money
Deposits In Accordance With
California Government Code
$11,125
$5,232
NATIONS BANK
U.S. Treasury Reserves Adviser
Account (Sweep Account
connected to Bank of America
Deposits listed above)
$2,842,011
$423,406
Cal Fed-
Regular Savings Account:
FDIC Insured
$1,458
$1,458
Grand Total Amount
Cash Balances:
$2 854 594
$430,026
62-. 00 lC>
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