HomeMy WebLinkAboutItem 4.11 InvestRpt 3rdQtr01-02CZTY CLERK
File #320-30
AGENDA STATEMENT
CTTY COUNCTL MEETZNG DATE: (April 1.6, 2002)
SUBJECT:
City Treasurer's Investment Report For 3rd Quarter 2001/2002
Report Prepared by Carole A. Perry, Administrative Services
Director and Fred Marsh, Finance Manager
ATTACHMENTS:
-RECOMMENDATION:
Quarterly Investment Report (March 31, 2002)
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,
2002, 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 2001/2002
are discussed in the staff report below.
INVESTMENT ACTIVITY IN THIRD QUARTER FISCAL YEAR 2001/2002
During the Third Quarter four securities matured or were called due to the decline in interest rates that
occurred during the quarter, as summarized in the table below:
INVESTMENTS MATURED OR CALLED THIRD QUARTER FISCAL YEAR 2001/2002
TYPE AMOUNT MATURITY YIELD
Matured Federal Securities
FHLB $2,000,000 2/1/02 6.711%
Called Federal Securities
FHLB $3,000,000 2/28/2005 5.000%
FHLB $3,000,000 8/15/2005 5.300%
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.
The proceeds from these investments, along with other available funds, were used to purchase new
securities during the period, as summarized in the table on the following page:
COPIES TO:
G:XInvestments~Iarch 2002Vtgenda staff report3.doc
ITEM NO.
INVESTMENTS PURCHASED THIRD QUARTER FISCAL YEAR 2001/2002
CALL
TYPE AMOUNT MATURITY YIELD DATE
FEDERAL SECURITIES
FHLB $3,900,000 10/8/2004 4.300% 7/8/02
FHLB $3,000,000 12/15/2004 4.240% N/A
FHLMC $500,000 1/3/2007 5.200% N/A
FFCB $421,000 1/23/2007 5.200% N/A
FHLB $4,000,000 2/15/2007 5.140% N/A
In addition Staff placed an order in January 2002 to transfer $10 million of funds in the City's money
market accounts to LAIF, which increased its investment limit to $40 million as of January 1, 2002.
In the most recent quarter the average maturity for the Federal Security portion of the portfolio increased
to 3.0 years, due to the purchase of the securities noted above. 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 50% 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, 2002. 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 2001-2002 Fiscal Year the City has received to date $64,717 in
dividends from this investment, resulting in an annualized yield of 5.378%. The market value of this
investment fluctuates on a daily basis and as of March 31, 2002 was equal to the recorded 6/30/2001 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 below shows the total investment balance as of March
31, 2002 by source. Comparison information is also shown for the previous quarter. Note that 48% 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
3/31/2002 % of
Balance Total
$37,777,522 42%
$1,611,319 2%
$544,122 1%
$42,476,022 48%
$5,981,281 '7%
$88,390,266 100%
Prior Quarter
12/31/2001 % of
Balance Total
$39,936,419 44%
$2,272,281 3%
$500,972 1%
$41,600,196 46%
$5,781,140 6%
$90,091,008 , 100%
CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT
The total amount shown as invested in the Primary Investment Portfolio is $1,700,742 less than the
amount shown at December 31, 2001, primarily due to payments made to contractors for construction of
the City's new library. Overall, the combined rate for the total portfolio decreased from 4.155% at
December 31, 2001 to 4.124% at March 31, 2002. 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 2.97% as of March 31, 2002, which was lower
than the 3.52% rate recorded for the quarter ending December 31, 2001. LAIF is a liquid investment, and
the current LAIF rate remains 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
3rd QUARTER FY 2001-2002
SECTION 1
PRIMARY INVESTMENT
PORTFOLIO
CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS
INCLUDING RATE OF RETURN
March 31, 2002
INVESTMENT
1ST CALL DATE
COUPON
MATURITY VALUE AT INTEREST
DATE MATURITY RATE YIELD
BOOK
VALUE
MARKET
VALUE
FEDERAL SECURITIES
FHLB
FHLB
FHLB
FHLB
FHLB
FNMA
FHLB 7/8/02
FHLB
FHLB
FHLB 6/21/02
FHLB 7/11/02
FHLB 7/18/03
FHLB
FHLB 1/17/03
FFCB 12/20/02
FHLMC
FFCB
FHLB
TOTAL FEDERAL SECURITIES
5/1/2002 1 2,000,000 6.750% 6.920%
8/15/2002 1 2,000,000 6.000% 6.200%
11/6/2002 1 1,000,000 5.940% 6.780%
2/14/2003 1 1,000,000 7.000% 7.010%
9/2/2003 2 1,000,000 5.627% 6.910%
11/14/2003 2 1,000,000 4.750% 6.920%
10/8/2004 3 3,900,000 4.300% 4.300%
10/15/2004 3 3,000,000 4.125% 4.125%
12/15/2004 3 3,000,000 3.875% 4.240%
12/21/2004 3 3,000,000 4.290% 4.290%
1/11/2005 3 3,000,000 5.100% 5.100%
7/18/2005 4 3,000,000 5.220% 5.220%
12/27/2005 4 2,000,000 6.525% 6.525%
1/17/2006 4 5,000,000 5.420% 5.420%
12/20/2006 5 5,000,000 5.340°/0 5.420%
1/3/2007 5 500,000 6.525% 5.200%
1/23/2007 5 421,000 4.600% 5.200°/0
2/15/2007 5 4,000,000 4.875% 5.140%
CERTIFICATES OF DEPOSIT - FDIC INSURED
United California Bank 12/9/2002
TOTAL CERTIFICATES OF DEPOSIT
MUTUAL FUNDS
Nations Bank Government Reserves
Capital Fund
Union Bank U.S. Govt Securities
Morgan Stanley Dean Witter U.S. Govt Securities
TOTAL MUTUAL FUNDS
POOLED PUBLIC AGENCY INVESTMENTS
State of CA.- Local Agency Investment Fund (LAW)
TOTAL INVESTED PORTFOLIO
$43,821,000 5.298%
1 99,000 6.000% 6.000%
2,045,000
2,041,560
1,020,940
1,038,440
1,016,250
999,530
3,900,000
3,000,000
2,971,740
3,000,000
3,000,000
3,000,000
2,034,380
5,000,000
5,000,0O0
527,730
410,273
3,954,320
$43,960,163
99,000
2,007,180
2,025,000
1,020,940
1,036,090
1,028,750
1,017,500
3,893,916
2,982,180
2,963,430
2,985,000
3,021,570
3,031,890
2,021,880
5,046,9OO
4,981,250
526,875
407,776
3,919,360
$43,917,487
99,000
$99,000 6.000% $99,000 $99,000
$1,909,000 $1,909,000
$1,439,011 $1,439,011
(2) $1,594,497 $1,594,497
1,909,000 1.760%
1,439,011 1.610%
See Note I 5.378%
2.884% $4,942,508 $4,942,508
2.970o/0 $39,431,271 $39,431,271
4.124% $88,432,942 $88,390~66
$39,431,271
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, 2001, as required by current
governmental accounting roles.
(2) Interest Rate shown is based on dividends received this fiscal year to date, which are annualized and then divided by the original investment.
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 I-2 years
Maturing in 2-3 years
Maturing in 3-4 years
Maturing in 4-5 years
TotalPo~folio
$44,373,779 51%
$6,188,210 7%
$2,046,250 2%
$15,846,096 18%
$10,100,670 11%
$9,835,261 11%
$88,390,266 100%
ITEM 1
CITY OF DUBLIN
SUMMARY OF INVESTMENT PORTFOLIO
COMPARISON BY INVESTMENT TYPE
March 31, 2002
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
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
MARKET % OF
FACE VALUE BOOK VALUE VALUE PORTFOLIO
36,900,000 37,022,630 36,984,086 41.8%
5,421,000 5,410,273 5,389,026 6.1%
1,000,000 999,530 1,017,500 1.1%
500,000 527,730 526,875 0.6%
43,821,000 43,960,163 43,917,487 O) 49.6%
MATURITY
YEARS
2.8
4.7
1.6
4.8
3.0
99,000 99,000 99,000 0.1% 0.7
1,594,497 1,594,497 1,594,497 a) 1.8%
1,439,011 1,439,011 1,439,011 1.6%
1,909,000 1,909,000 1,909,000 2.2%
LAIF 39,431,271 39,431,271 39,431,271 44.7%
GRAND TOTAL $88,293,779 $88,432,942 $88,390,266 100.0%
NOTES:
(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
ITEM 2
CITY OF DUBL1N
QUARTERLY INVESTMENT REPORT
3rd QUARTER FY 2001-2002
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, 2002
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-Categorized - Cash
Petty Cash - City
Petty Cash - Shannon Center
Cash Register - (5 Locations)
Subtotal
Balance
3/31/2002
$400.00
$2OO.OO
$4,600.00
$5,200.00
OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS
BANK OF AMERICA-
Collateralized Public Money
Deposits In Accordance With
California Government Code
Balance 3/31/2002
$78,383
Annualized Rate of Interest
.5%
NATIONS BANK
U.S. Treasury Reserves Adviser
Account (Sweep Account
connected to Bank of America
Deposits listed above)
$1,074,089
1.6107%
Cai Fed-
Regular Savings Account:
FDIC Insured
$573
.76%
Grand Total Amount
Cash Balances:
$1,153,045.00
SPECIAL FUNDS HELD BY TRUSTEES
CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS
INCLUDING RATE OF RETURN
FOR THE QUARTER ENDING MARCH 31, 2002
MUTUAL FUNDS
Dublin Blvd Assessment District
First American Govt
Obligation Fund
COUPON
MATURITY VALUE AT INTEREST
DATE MATURITY RATE YIELD
BOOK
VALUE
See Note 1 1.50% $169,710 $169,710
NOTES:
(1) A Mutual Fund does not have a stated maturity date and shares can be sold at any time.