HomeMy WebLinkAboutItem 4.02 CT InvestmntRpt (2)
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: September 13, 1993
.I~ity Treasurer's Investment Report: August 31, 1993
~Prepared by: Paul S. Rankin, Assistant city Mgr)
EXHIBITS ATTACHED:~isting of Investments as of August 31, 1993
RECOIIIIEIlDATION:tQJI Receive Report
DESCRIPTION: The attached listing details the city's investments
as of August 31, 1993. The total amount invested is approximately
$1,120 million 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 durin9 the month. Several large expenses were paid
in the month of August, 1ncluding: Animal Control Service Billings for
the entire 1992-93 fiscal year and fourth quarter 1992-93 Police
Services.
SUBJECT:
In accordance with City council policy the City's cash reserves are
fully invested, wi th the exception of amounts retained in operating
accounts to cover current expenses. No new investments were placed
during the month, of August. In accordance wi th Ci ty 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 will
continue to seek other investment opportuni ties in upcoming months,
which meet the legal requirements of current policies and State Law.
LAIF is a pooled investment account managed by the State Treasurer.
CUrrently over $9.5 Billion from various agencies is JDanaged in this
fund. The fund allows cities to move monies in and out similar to a
money market fund. The quarterly average of 4.465% as of August 25,
1993 is up slightly over the rate reported last month. LAIF offers the
city liqu1dity which is not possible if the city independently selected
investment instruments which had similar maturities.
This is only the second month that the report shows yield information on
the Dean witter U.s. Government Securities Mutual Fund. The information
presented is only based upon approximately two months of data. As a
pooled long term investment the performance must be viewed over a longer
periOd of time. The final performance will also be impacted by
fluctuations in the share price.
The format of the report has been modified to show the percentage of the
portfolio by investment type. Prior to the city's investment in the
Dean witter Fund in June, approximately 85% of the total portfolio was
invested in LAIF. The C1ty has proceeded with diversification as
previously discussed.
The schedule of investment maturities is anticipated to allow the City
to meet anticipated expenditures in the upcoming month.
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COPIES TO:
CITY CLERK
FILE ~
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city of Dublin
city Treasurer's Listing of Investments
As of August 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.
TYPE OF INVESTMENT
POOLED INVESTMENTS
77.5% of Total Portfolio
MATURITY
~ value
~
INVESTMENT
~ Yield
state of california
LAIF
MUTUAL FUND
5..6% of Total Portfolio
$13,754,000.00
$13,754,000.00 (1) 4.465%
Dean witter Reynolds
U.S. Govt Securities
(2)
(2)
$999,994.12 (3) 6.980%
GVRNT/AGENCY SECURITIES
15.1% of Total Portfolio
Bank of California(Safekeeping)
FHLB Debentures (4) 8/26/96
FNMA Debentures (4) 6/10/97
FNMA Debentures (4) 5/13/98
FFCB Debentures (4) 2/02/98
$490,000.00
$1,205,000.00
$500,000.00
$400.000.00
$2,595,000.00
7.700
9.200
5.250
5.800
$490,000.00
$1,300,000.00
$495,000.00
$400.000.00
$2,685,000.00
CERTIFICATES OF DEPOSIT
1.7% of Total Portfolio
Investors Thrift & Loan 7/30/9B $99,000.00 5.560 $99,000.00
Standard Pacific svgs 7/30/98 $99,000.00 5.200 $99,000.00
World savings 1/29/98 $100.000.00 6.010 $100,000.00
$298,000.00 $298,000.00
Total Investments - per books $17,736,994.12
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7.700%
7.066%
5.482%
5.800%
6.701%
5.560%
5.200%
6.010%
5.591%
4.964%
...._...i.~
Footnotes
(1) Interest rate shown is quarterly average as of August 25, 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, without a deferred sales charge.
(3) The yield on a mutual fund fluctuates with the share price of shares
currently held. The yield presented is an annualized amount based
upon the year to date amounts of dividends reinvested.
(4) Federal Home Loan Bank (FHLB), Federal National Mortgage Association
(FNMA), and Federal Farm Credit Bank (FFCB) are lawful investments for
local governmental agencies.
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