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HomeMy WebLinkAboutItem 4.08 CT InvestmentRpt (2) ! ' ~,..... i' .. e . {" CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: August 9, 1993 SUBJECT: City Treasurer's Investment Report: July 31, 1993 ~Prepared by: Paul S. Rankin, Assistant city Mgr) EXHIBITS ATTACHED:~isting of Investments as of July 31,1993 RECOMMENDATION: ~Recei ve Report DESCRIPTION: The attached listing details the city's investments as of July 31, 1993. The total amount invested is approximately $50,000 less than shown in the previous month. This change reflects the use of monies in the Local Agency Investment Fund (LAIF) to cover expenses paid during the month. The LAIF account also received a deposit representing the quarterly interest earnings from April 1, 1993 through June 30, 1993. In accordance with City Council policy the City'S cash reserves are fully invested, with the exception of amounts retained in operating accounts to cover current expenses. In accordance with City Council policies and State Law public monies are invested in instruments which assure safety and liquidity. In addition, the City Council has adopted as a top priority, the ability to fully defease the outstanding Certificates of Participation in February of 1999. This impacts the maximum maturity date of a significant portion of the City's portfolio. staff did place two new investments during the month of July. Two FDIC insured certificates of Deposit (CD's) were placed with California institutions. Both accounts were established for a 5 year term. Federal Treasury and Agency Notes offered poor returns during the month of July. The returns offered on the CD ,accounts were better than what was available in the Treasury market. The disadvantage is that the size of the investment must be less than $100,000 to provide safety of FDIC coverage. Staff will continue to seek other opportunities in upcoming months. LAIF is a pooled investment account managed by the State Treasurer. The most recent statistics on the size of the pool are for June 30, 1993. At that time over $9.5 Billion was invested. Although the average life of the portfolio was 341 days the fund allows cities to move monies in and out similar to a money market fund. The quarterly average of 4.444% as of July 27, 1993 exceeds current rates for 1 year Treasuries which were at 3.45% for the month of June. LAIF offers the City liquidity which is not possible if the City independently sel~cted investment instruments which had similar maturi ties. ,This liquidi ty is also important early in the Fiscal Year, since many of the City'S major revenue sources (i.e. Property Tax, etc.) are not received until later in the Fiscal Year. This is the first month that the report shows return information on the Dean witter u.S. Government Securities Mutual Fund. An adjustment was made to the principal amount invested. This was based upon the share price on the date the order was placed. For the period between settlement on July 8, 1993 and the fund month end closing on July 28th, the quarterly return on this investment was equivalent to 6.67%. As a pooled long term investment the performance must be viewed over more than 20 days. The final performance will also be impacted by fluctuations in the share price. The schedule of investment maturities is anticipated to allow the City to meet anticipated expendi~ures in the upcoming month. COPIES TO: o.~ CITY CLERK FILE ~ , )' e e ...-- . .. ~ ..-. city of Dublin city Treasurer's Listing of Investments As of July 31, 1993 This listing excludes DUblin Boulevard Extension Assessment District and COP reserve fund balances, which are held by third party Trustees and invested in accordance with the financing legal documents. INSTITUTION MATURITY INVESTMENT Type of Investment .I2at& Value :&ltg Cost Yield State of California LAIF $14,604,141.22 $14,604,141.22 (1) 4.444% Dean witter Reynolds U.S. Govt Securities (2) (2) $999,994.12 6.670% Bank of California FHLB Debentures (3) 8/26/96 $490,000.00 7.700 $490,000.00 7.700% FNMA Debentures (3) 6/10/97 $1,205,000.00 9.200 $1,300,000.00 7.066% FNMA Debentures (3) 5/13/98 $500,000.00 5.250 $495,000.00 5.482% FFCB Debentures (3) 2/02/98 $400.000.00 5.800 $400.000.00 5.800% $2,595,000.00 $2,685,000.00 6.701% Investors Thrift & Loan Cert of Deposit 7/30/98 $99,000.00 5.560 $99,000.00 5.560% Standard Pacific Svgs Cert of Deposit 7/30/98 $99,000.00 5.200 $99,000.00 5.200% World Savings Cert of Deposit 1/29/98 $100,000.00 6.010 $100,000.00 6.010% Total Investments - per books $18,587,135.34 4.908% -------------- ------- --------------- ------- Footnotes (1) Interest rate shown is quarterly average as of July 28, 1993. (2) As a mutual fund investment this can be liquidated at any given time, however, the asset value will fluctuate based upon the current market rate. The investment strategy assumes it will be held through July 8, 1999. (3) Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), and Federal Farm Credit Bank (FFCB) are lawful investments for local governmental agencies.