HomeMy WebLinkAboutItem 4.15 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.