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HomeMy WebLinkAboutItem 4.03 4 Qtr Invest 99-00 CITY CLERK File # 0320-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: (July 18, 2000) SUBJECT: ATTACHMENTS: City Treasurer's Investment Report For 4th Quarter 1999/2000 prLReport Prepared by Fred Marsh, Finance Manager Quarterly Investment Report (June 30, 2000) Section I - Primary Investment Portfolio Section II - Listing of Supplemental Monies Under City Possession and/or Control RECOMMENDATION: DESCRIPTION: - The attached Investment Report details the City's investments as of June 30, 2000, 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 fund~' 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 Y~ar 1999/2000 are discussed in the staff report below. INVESTMENT ACTIVITY IN FOURTH QUARTER FISCAL .YEAR 1999/2000 During the Fourth Quarter seven federal securities were purchased, as summarized in the table below: INVESTMENTS PURCHASED FOURTH QUARTER FISCAL YEAR 1999/2000 ' PURCHASE VALUE AT '.TYPE ' ~j PRICE 'MATURITY MATURITY CALL DATE YIELD FEDERAL SECURITIES . FHLB $984,450 $1,000,000 8/15/2002 N/A 6.73% FHJ_,B $961,920 $1,000,000 9/2/2003 i N/A 6.91% FHLB $1,004,920 $1,000,'000 2/14/2003 N/A 6.80% FHLB ' $980,630 $1,000,000 11/6/2002 N/A 6.78% FHLB ' ' · $1,976,480 . $2,000;000 9/17/2001 N/A i 6.86% ' FHLB $1,993,860 $2,000,000 5/1/2002 N/A 6.92% FNMA $932,390 $1,000,000 11/14/2003 N/A 6.92% None of these investments have call options, which means that they will not be redeemed by the issuing party prior to their maturity date. In the most recent quarter the average maturity for the Federal Security portion of the portfolio decreased to 2.0 years. It is important to note that this relates solely to the portion of the portfolio which has investments with a stated tenn. The City maintains adequate funds in more - liquid investments, which are deemed sufficient to meet cash flow needs. G:Hnvestments\june2000~genda staff report, doc COPIES TO: ITEM NO. DETAILED LISTING OF PRIMARY PORTFOLIO Government and Agency Securities represent 46% 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, 2000. The City portfolio assumes that the investments will be held to maturity and there is not an active attempt madeto 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 3% of the City's total portfolio. The book value currently reported is based upon the "market value" as of June 30, 1999. As required by the Governmental Accounting Standards Board, the book value will be adjusted to reflect the market value as of June 30, 2000 prior to the closing of the books for Fiscal Year t999-2000. During the 1999-2000 Fiscal Year the City received $103,095 in dividends from this investment, resulting in an annualized yield of 6.303%. The market value of this investment fluctuates on a daily basis and as of J.une 30, 2000 was $34,078 less than the recorded 6/30/99 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, 2000 by source. Comparison information is also shown for the previous quarter. Note that 34% 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 Fu~ls (i.e. Landscape Maint & Debt Service) Kestricted - Impact Fees Internal Service / Replacement Funds TOTAL Current Quarter 6/30/00 % of Balance Total $28,874,670 58% $2,057,490 4% $434,596 1% $16,805,415 34% $1,331,541 3% $49,503,712 100% Prior Quarter 3/31/00 % of Balance Total $25,386,446 62% $2,114,923 4% $372,623 1% $15,076,439 30% $1,266,294 3% $44,216,725 100% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is $5,286,987 more than the amount shown at March 31, 2000. The additional funds were invested in federal securities during the quarter. The increase primarily reflects the receipt of impact fees from new development, as well as property and sales taxes for the quarter. Overall, the combined rate for the total portfolio increased from 5.839% at March 31, 2000 to 6.230% at June 30, 2000. The increase was attributable to an increase in the rate of return on the City's LAIF investments operated by the State Treasurer, as well as higher returns on the new investments in federal securities placed during the quarter. The quarterly average for the City's LA_IF investment was 6.190% as of June 30, 2000, which was higher than the 5.800% rate recorded for the quarter ending March 31, 2000. LAIF is a liquid investment, and the current LAIF rate remains very favorable compared to rates offered on investments, which have less flexibility. T~e schedule of investments, including the dates of maturity, contain 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 1999-2000 SECTION 1 PRIMARY INVESTMENT PORTFOLIO CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN AS OF JUNE 30, 2000 INVESTMENT COUPON MATURITY VALUE AT 1~TEREST BOOK DATE MATU-RrI~ RATE YIELD VALUE FEDERAL SECURITIES FNMA (Callable 11/8/99) FHLB (Callable 6/29/99) FHI.J3 (Callable 3/10/2000) ~ (Callable 11/26/98) FHLB (Callable 11/26/98) FHLB FHLMC Fl-mB FHLMC (Callable 4/13/99) FNMA (Callable 5/19/99) 11/8/00 1,000,000 6.220% 6.220% 1,000,940 11/24/00 1,000,000 5.890% 6.010% 998,860 12/29/00 1,000,000 5.100% 5.100% 990,310 9/17/01 3,000,000 5.875% 6.860% 2,970,390 10/3/01 1,000,000 6.575% 6.099% 1,008,990 12/10/01 2,000,000 5.730% 5.730% 1,985,620 3/12/02 1,000,000 5.410% 5.750% 985,940 5/1/02 2,000,000 6.750% 6.920% 1,985,620 6/28/02 1,000,000 5.435% 5.435% 982,190 8/15/02 2,000,000 6.000% 6.200% 1,978,990 11/6/02 1,000,000 5.940% 6.780% 980,630 2/14/03 1,000,000 7.000% 7.010% 1,004,920 4/16/03 1,000,000 5.700% 5.700% 982,500 9/2/03 1,000,000 5.627% 6.910% 961,920 11/14/03 1,000,000 4.750% 6.920% 932,390 1/13/04 1,000,000 6.000% 6.000% 981,090 2/19/04 1,000,000 6.000% 6.000% 982,660 4/5/04 1,000,000 6.010% 6.010% 977,190 $23,000,000 6.269% $22,691,150 95,000 6.600% 6.600% 95,000 99,000 6.000% 6.000% 99,000 TOTAL FEDERAL SECURITIES CERTIFICATES OF DEPOSIT - FDIC INSURED First Republic Trust & Loan 3/7/01 Sanwa Bank 12/9/02 TOTAL CERTIFICATES OF DEPOSIT MARKET VALUE ~) MUTUAL FUNDS Nations Bank Government Reserves Capital Fund Morgan Stanley Dean WiRer U.S. Govt Securities 998,440 998,910 991,880 2,964,840 994,690 1,967,180 975,780 1,992,820 972,500 1,960,940 978,750 998,440 966,250 96_0,940 932,190 963,440 955,470 958,750 POOLED PUBLIC AGENCY INVESTMlgNTS State of CA.-Local Agency Investment Fund (LAIF) TOTAL INVESTED PORTFOLIO $22,532,21p 95,000 99,000 NOTES: $194,000 6.294% $194,000 $194,000 5,000.00 6.260% O) $5,000 See Note 1 6.303% (2) $1,585,529 6.190% (5) $25,028,033 6.230% $49,503,712 $25~28,033 (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, 1999, 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 by the original investment. (3) Interest Rate shown is the monthly average as of June 30, 2000. (4) Market Value shown for the Federal Securities is as of June 30, 2000. (5) Interest Rate shown/s the quarterly average as of June 30, 2000. $5,0o0 $1,551,451 $25,028,033 $49,310,694 ITEM I CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE AS OF JUNE 30, 2000 TYPE OF INSTRUMENT Federal Home Loan Bank (FHLB) Federal Home Loan Mortgage Corp (FHLMC) Federal National Mortgage Assn CFNMA) SUB -TOTAL GOVT/AGENCY MARKET % OF FACE VALUE BOOK VALUE VALUE PORTFOLIO 16,000,000 15,835,520 15,758,760 32.1% 2,000,000 1,963,590 1,929,690 4.0% 5,000,000 4,892,040 4,843,760 10.0% 23,000,000 22,691,150 22,532,210 (t) 46.1% MATURITY YEARS 1.8 1.8 2.3 2.0 Certificates of DeposR - FDIC Insured Mutual Funds - Morgan Stanley Dean Witter U.S. Govt Securities Nations Bank Goverment Reserves Capltal Fund 194,000 194,000 194,000 0.4% 1,635,750 1,585~529 1,551,451 {z) 3.2% 1.1 5.0 o) 5,000 5,000 5,000 0.0 % N/A LA_IF 25,028,033 25,028,033 25,028,1}33 50.3% 100.0% GRAND TOTAL $49,862,783 $49,503,712 $49,310,694 NOTES: (1) The City intends to hold the investments until maturity or until market values equal or exceed their face value. Market Value shown is as of June 30, 2000. (2) Market value is based upon the shares invested at share price as of June 30, 2000. Book Value is shown as the value recorded in the General Ledger based on the market value at 6/30/99. (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 bythe U.S..Govenaz~nt Securities Mutual Fund as of June 30, 1998. This figure represents the duration factor for the Fund and it was reduced from the figure reported for 1997. N/A ITEM 2 CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 4TH QUARTER FY 1999-2000 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, 2000 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?ubj~ct 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 - Recreation Cash Register - (4 Locations) Subtotal Balance 06/30/2000 $200.00 $200.00 $650.00 $1,050.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With California Government Code Balance 06/30/2000 ":~:~:;'Annualized Rate of Interest $1,577,007 See Note 1 Cai Fed- Regular Savings Account: FDIC Insured Grand Total Amount Cash Balances: $ 6,076 2.00% $1,583,083 Note 1: The City operating account is a corporate checking account, which includes monthly interest earnings which are at a var/able rate. The interest earn/rigs 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, 2000 MUTUAL FUNDS Dublin Blvd Assessment District First American Govt Obligation Fund COUPON MATURITY VALUE AT INTEREST DATE MATURITY RATE YIELD See Note I 6.10% BOOK VALUE $157,924.72 MARKET VALUE $157,924.72 NOTES: (1) A Mutual Fund does not have a stated maturity date and shares can be sold at anytime.