HomeMy WebLinkAboutItem 4.02 CT InvestRpt (2)
i .... 1'-.
.
.
CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: May 9, 1994
SUBJECT :
nG/JCity Treasurer's Investment Report: April 30, 1994
'<< (Prepared by: Paul S. Rankin, Assistant City Mgr)
EXHIBITS ATrACHED: Listing of Investmegts as of April 30, 1994
RECOJIIIERDATIOR~A/~"~eive Report
DESCRIPTION: The attached listing details the city's investments
as of April 30, 1994.. The total 8lIlOunt invested is approximately
$1,376,000 more than shown at the end of the previous month.. This
increase reflects the receipt of the April Property Tax advance from
Alameda County. Also due to payment due dates, approximately $500,000
of payments authorized in April will be released in early May.
OVerall, the total yield on the City'S portfolio for the month of April
has increased slightly from the rate shown for the month of March
(5..160% vs.. 5.158% respectively).. This was primarily due to the
purchase of a new security, while rates at the Local Agency Investment
Fund increased slightly.. These rates of return are anticipated to allow
the City to meet its budget estimate for Interest Revenue.
As noted in previous reports the market value of the Dean Witter Mutual
Fund as well as any Federal securities will fluctuate.. This report
identifies the value of the Mutual Fund investment at cost and the
Federal securities at an adjusted cost.. The adjusted cost is calculated
by amortizing any premium or discount over the life of the investment.
With the recent fluctuations in the interest rates on Federal and Agency
Bonds, the "Market Value " of the Mutual Fund invest1llent has fluctuated..
The share price as of the date of the April Dividend was $ 8.. 82 as
compared to $8.90 at the March Dividend date.
In the month of March, one new $ 500,000 investment transaction was
completed.. The city purchased a United States Treasury Note, with a
maturity date of February 15, 1997. This investment cannot be called
prior to the final date of maturity.. The investment has a coupon yield
of 4.75%.. However, it was purchased at a discount which resul ts in a
yield to maturi ty of 5.. 724% .. The total amount of the discount was
$12,656..25..
Comparison of this purchase to a similar purchase made last october,
reflects the significant changes which have occurred in the market over
recent months.. Last october the city purchased a Treasury Note maturing
in october of 1998 and carrying the same coupon of 4.. 75%.. The
transaction was also completed at a discount resulting in a yield to
maturity of 5.311%.. This was a lower interest yield for a longer
maturity than the recent April transaction.. .
LAIF is a pooled investment account managed by the State Treasurer.. The
fund continues to provide an iaportant investment option for public
agencies. The fund allows cities to move monies in and out similar to a
money market fund. The quarterly average was 4..333% as of April 27,
1994.. This is up slightly from the 4..261% rate reported last month..
LAIF comprised a slightly larger percentage of the total portfolio when
compared to the previous month (37.8% vs. 35.8% in March). This change
reflects the increase in short term cash available to invest, as a
resul t of the receipt of pr~perty tax revenue.
The schedule of investment maturities is anticipated to allow the city
to meet anticipated expenditures in the upcoming month..
----------------------------------------------------------------------
COPIES TO:
4.2
CITY CLERK
FILE t 131~loH3'ol
"
..,',0!4.,).
City of Dublin.
Treasurer's Listing of Investments
As of ~pr. 30, 1994
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.
.
city
::::
TYPE OF INVESTMENT
MATURITY
~ Value
Rate
INVESTMENT
~ Yield
POOLED INVESTMENTS 37.8% of Total Portfolio
State of California
LAIF
$7,479,008.83
I
$7,479,008.83 (1) 4.333%
MUruAL FUND 8..6% of Total Portfolio
Dean Witter Reynolds
U.S. Govt Securities
(2)
(2)
$1,699,995.50 (3) 5.940%
CERTIFICATES OF DEPOSIT 2.5% of Total Portfolio
pirst Republic T & L
"nvestors Thrift & Loan
::. .'thern Calif FS&L
St .dard Pacific Svgs
Wc)' id Savings
$95,000.00 5.250
$99,000.00 5.560
$98,000.00 5.250
$99,000.00 5.200
$100.000.00 6.010
$491,000.00
GVRNT/AGENCY SECURITIES (4) 51.2% of Total Portfolio
9/14/98
7/30/98
9/14/98
7/30/98
1/29/98
$95,000.00
$99,000.00
$98,000.00
$99,000.00
$100.000.00
$491,000.00
5.250%
5.560%
5.250%
5.200%
6.010%
5.457%
Bank of California(Safekeeping)
FHLB 8/26/96 $490,000.00
U S Treasury Note 2/15/97 $500,000.00
FFCB(Callable 3/03/95) 3/03/97 $500,000.00
FNMA 6/10/97 $1,2Q5,000.00
FNMA(Callable 5/13/96) 5/13/98 $500,000..00
FHLMC(Callable 9/9/94) 9/09/98 $500,000.00
'NMA(Callable 10/15/96)10/15/98 $1,000,000.00
U S Treasury Note 10/31/98 $1,000,000.00
FHLB(Callable 11/3/94) 11/03/98 $1,000,000.00
FHLB(Callable 1/12/95) 1/12/99 $2,000,000.00
FNMA(Callable 2/12/96) 2/12/99 $400,000.00
FNMA(Callable 12/10/96)12/10/98 $1,000~090.00
$10,095,000.00
Total Investments - per books
Footnotes
(1) Interest rate shown is quarterly average as of April 27, 1994.
(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 that $1 million will be held
through July 8, 1999, and $700,001 through September 10, 1999 without
a deferred sales charge. Value is calculated at original cost.
(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 ten months of dividends at the share price as of 4/30/94.
(4) Federal Home Loan Bank (FHLB), Federal Farm Credit Bureau (FFCB), Federal
National Mortgage Association (FNMA), and Federal Home Loan Mortgage
Corp (FHLMC) are lawful investments for local governmental agencies.
7.700 $490,000.00 7.700%
5.724 $487,343..75 5.724%
5.120 $495,937.50 5.420%
9.200 $1,281,000.00 7.066%
5.250 $495,000.00 5.482%
4.950 $498,359.38 5.020%
4.875 $999,375.00 4.889%
4.750 $984,687.50 5.101%
5.110 $1,000,000.00 5.110%
5.460 $2,000,000.00 5.460%
5.550 $399,750.00 5.564%
5.310 $999.531.25 5.311%
$10,130,984.38 5.625%
$19,800,988.71 5.160%
--------------- --------
--------------- --------