HomeMy WebLinkAboutItem 4.07 InvestRpt4thQtr2001-2 CITY CLERK
File #320-30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: August 6, 2002
SUBJECT: City Treasurer's Investment Report For 4th Quarter 2001/2002
Report Prepared by Carole A. Perry, Administrative Services
Director and Fred Marsh, Finance Manager
ATTACHMENTS: Quarterly Investment Report (June 30, 2002)
Section I - Primary Investment Portfolio
Section II - Listing of Supplemental Monies Under City
Possession and/or Control
RECOMMENDATION: ~r~Receive Report
DESCRIPTION: The attached Investment Report details the City's investments as of June 30, 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 fourth quarter of Fiscal Year
2001/2002 are discussed in the staff report below.
INVESTMENT ACTIVITY IN FOURTH QUARTER FISCAL YEAR 2001/2002
During the Fourth 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 FOURTH QUARTER FISCAL YEAR 2001/2002
TYPE AMOUNT MATURITY YIELD
Matured Federal Securities
FHLB $2,000,000 05/01/2002 6.750%
Called Federal Securities
FHLB $3,000,000 12/21/2004 4.290%
FHLB $2,000,000 12/27/2005 6.525%
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:\InvestmentsLlune 2002XAgenda staff report~.doc ITEM NO. ~
INVESTMENTS PURCHASED FOURTH QUARTER FISCAL YEAR 2001/2002
CALL
TYPE AMOUNT MATURITY YIELD DATE
FEDERAL SECURITIES
FNMA $1,000,000 12/20/2004 3.800% 6/27/03
FHLB $6,500,000 12/27/2004 3.815% 6/27/03
In the most recent quarter the average maturity for the Federal Security portion of the portfolio decreased
to 2.8 years, due to the purchase of the shorter term securities noted above and the calling of the securities
listed on the previous page. 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 47% 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, 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 Stat?. ley 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 $88,062 in
dividends from this investment, resulting in an annualized yield of 5.523%. The market value of this
investment fluctuates on a daily basis and as of June 30, 2002 was $37,665 greater than 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 June 30,
2002 by source. Comparison information is also shown for the previous quarter. Note that 45% 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
Current Quarter Prior Quarter
6/30/2002 % of 3/31/2002 % of
Balance Total Balance Total
General Fund $43,616,325 45% $37,777,522 42%
Restricted - Special Revenue Funds $2,135,445 2% $1,611,319 2%
. (I.e. Gas Tax, Special Taxes)
Restricted ~ Assessment District Funds $666,013 1% $544,122 1%
(i.e. Landscape Maint & Debt Service)
Restricted - Impact Fees $42,373,826 45% $42,476,022 48%
Internal Service /Replacement Funds $6,230,889 7% $5,981,281 7%
TOTAL $95,022,498 100% $88,390,266 100%
CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT
Thc total amount shown as invested in the Primary Investment Portfolio is $6,632,232 more than the
amount shown at March 31, 2002, primarily due to receipts of property and sales taxes during the quarter.
Overall, the combined rate for thc total portfolio decreased from 4.124% at March 31, 2002 to 3.749% at
June 30, 2002. The decrease was attributable to the calling of thc federal securities noted above, a
decrease in thc rate of return on the City's LAIF investments operated by thc State Treasurer, as well as a
decline in thc rate of return on money market funds during the quarter.
The quarterly average for the City's LAIF investment was 2.75% as of June 30, 2002, which was lower
than the 2.97% rate recorded for the quarter ending March 31, 2002. LAIF is a liquid investment, and the
current LAIF rate remains favorable compar6d 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 2001-2002
SECTION 1
PRIMARY INVE S TMENT
PORTFOLIO
CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS
INCLUDING RATE OF RETURN
June 30, 2002
COUPON
MATURITY VALUE AT INTEREST BOOK MARKET
INVESTMENT IST CALL DATE DATE MATURITY RATE YIELD VALUE VALUE
FEDERAL SECURITIES
FFILB 8/15/2002 1 2,000,000 6.000% 6.200% 2,041,560 2,010,000
FHLB 11/6/2002 1 1,000,000 5.940% 6.780% 1,020,940 1,013,750
FHLB 2/14/2003 1 1,000,000 7.000% 7.01 0O/O 1,038,440 1,030,310
FHLB 9/2/2003 2 1,000,000 5.627% 6.910% 1,016,250 1,035,000
FNMA 11/14/2003 2 1,000,000 4.750% 6.920% 999,530 1,030,940
FHLB 7/8/02 10/8/2004 3 3,900,000 4.300% 4.300% 3,900,000 3,901,209
FHLB 10/15/2004 3 3,000,000 4.125% 4.125% 3,000,000 3,001,890
FHLB 12/15/2004 3 3,000,000 3.875% 4.240% 2,971,740 3,035,640
FNMA 6/27/03 12/20/2004 3 1,000,000 3.800% 3.800% 1,000,000 1,011,250
FHLB 6/27/03 12/27/2004 3 6,500,000 3.815% 3.815% 6,500,000 6,552,845
FHLB 7/11/02 1/11/2005 3 3,000,000 5.100% 5.100% 3,000,000 3,001,890
FHLB 7/18/03 7/18/2005 4 3,000,000 5.220% 5.220% 3,000,000 3,090,000
FHLB 1/17/03 1/17/2006 4 5,000,000 5.420% 5.420% 5,000,000 5,089,050
FFCB 12/20/02 12/20/2006 5 5,000,000 5.340% 5.420% 5,000,000 5,070,300
FHLMC 1/3/2007 5 500,000 6.525% 5.200% 527,730 545,155
FFCB 1/23/2007 5 421,000 4.600% 5.200% 410,273 425,210
FHLB 2/15/2007 5 4,000,000 4.875% 5.140% 3,954,320 4,083,760
TOTAL FEDERAL SECURITIES $44,321,000 4.986% $44,380,783 $44,928,199
CERTIFICATES OF DEPOSIT - FDIC INSURED
United California Bank 12/9/2002 1 99,000 6.000% 6.000% 99,000 99,000
TOTAL CERTIFICATES OF DEPOSIT $99,000 6.000% $99,000 $99,000
MUTUAL FUNDS
Nations Bank Government Reserves $7,188,000 1.690% $ 7, t 88,000 $7,188,000
Capital Fund
Union Bank U.S. Govt Securities $1,460,515 1.420% $1,460,515 $1,460,515
Morgan Stanley Dean Witter U.S. Govt Securities See Note 1 5.523% (2) $1,594,497 $1,632,162
TOTAL MUTUAL FUNDS 2.248% $10,243,012 $10,280,677
POOLED PUBLIC AGENCY INVESTMENTS
State of CA.- Local Agency Investment Fund (LAIF) $39,714,622 2.750% $39,714,622 $39,714,622
TOTAL INVESTED PORTFOLIO 3.749% $94,437,417 $95,022,498
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) $49,995,299 52%
Maturing in 1 year or less $4,153,060 4%
Maturing in 1-2 years $2,065,940 2%
Maturing in 2-3 years $20,504,724 22%
Maturing in 3-4 years $8,179,050 9%
Maturing in 4-5 years $10,124,425 11%
Total Portfolio $95,022,498 100%
ITEM 1
CITY OF DUBLIN
SUMMARY OF INVESTMENT PORTFOLIO
COMPARISON BY INVESTMENT TYPE
June 30, 2002
MARKET % OF MATURITY
TYPE OF INSTRUMENT FACE VALUE BOOK VALUE VALUE PORTFOLIO YEARS
Federal Home Loan Bank (FHLB) 37,400,000 37,443,250 37,856,594 39.6% 2.6
Federal Farm Credit Bureau (FFCB) 5,421,000 5,410,273 5,495,510 5.7% 4.5
Federal National Mortgage Assn (FNMA) 1,000,000 999,530 1,030,940 1.1% 1.4
Federal Home Loan Mortgage Corporation
(FHLMC) 500,000 527,730 545,155 0.5% 4.5
SUB -TOTAL GOVT/AGENCY 44,321,000 44,380,783 44,928,199 0) 47.0% 2.8
Certificates of Deposit- FDIC Insured 99,000 99,000 99,000 0.1% 0.4
Mutual Funds
Morgan Stanley Dean Witter U.S. Govt
Securities 1,594,497 1,594,497 1,632,162 (2) 1.7% 5.0 (3)
Union Bank U.S. Govt Securities 1,460,515 1,460,515 1,460,515 1.5% N/A
Nations Bank Government Reserves
Capital Fund 7,188,000 7,188,000 7,188,000 7.6% N/A
LAIF 39,714,622 39,714,622 39,714,622 42.1% N/A
GRAND TOTAL $94,377,634 $94,437,417 $95,022,498 100.0%
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.
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
4th 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 June 30, 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
Balance
Non-Categorized - Cash 6/30/2002
Petty Cash - City $400.00
Petty Cash - Shannon Center $200.00
Cash Register - (5 Locations) $700.00
Subtotal $1,300.00
OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS
Balance 6/30/2002 Annualized Rate of Interest
BANK OF AMERICA-
Collateralized Public Money
Deposits In Accordance With $437,338 .5%
California Government Code
NATIONS BANK
U.S. Treasury Reserves Adviser $1,278,499 1.4245%
Account (Sweep Account
connected to Bank of America
Deposits listed above)
Cai Fed-
Regular Savings Account:
FDIC Insured $576 .75%
Grand Total Amount
Cash Balances: $1,716,413.0~0
SPECIAL FUNDS HELD BY TRUSTEES
CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS
INCLUDING RATE OF RETURN
FOR THE QUARTER ENDING JUNE 30, 2002
COUPON
MATURITY VALUE AT INTEREST BOOK MARKET
DATE MATURITY RATE YIELD VALUE VALUE
MUTUAL FUNDS
Dublin Blvd Assessment District
First American Govt
Obligation Fund See Note 1 1.42% $170,522 $170,522
NOTES:
(1) A Mutual Fund does not have a stated maturity date and shares can be sold at any time.