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Home My WebLink AboutItem 4.03 CT InvestRpt (2) .. . e CITY OF DUBLIN AGENDA STATEIIPT CITY COUNCIL MEETING DATE=-. August 22, 1994 Il6A ~i ty Treasurer's Investment Report : July 31, ~"'\ Prepared by: Paul S. Rankin, Assistant City EXHIBITS ATTACHED~-~sting of Investments as of July 31, 1994 RECOMMENDATION: <J!f ~ecei ve Report 1994 Mgr) SUBJECT: DESCRIPTION: The attached listing details the City's investments as of July 31, 1994. The total amount invested is approximately $695,938 less than the amount shown at the end of the previous month. This was caused partially by the temporary transfer of monies in June, from the City's operating account to the State Local Agency Investment Account (LAIF). Also, in the month of July the city transferred approximately $454,000 to the Civic Center certificates of participation (COP) Trustee, for the semi annual interest paYment on the COP's. The changes in the total amount invested were accomplished through transfers from the LAIF account. OVerall, the total yield on the City'S portfolio for the month of July showed a favorable gain from the rate shown for the month of June (5.539% vs. 5.428% respectively). This was primarily due to a favorable change in the rates at the Local Agency Investment Fund. No new investments were purchased in the month of July. This report identifies the value of the Federal securities at an adjusted cost. The adjusted cost is calculated by amortizing any premium or discount over the life of the investment. The "cost" column in this report differs from the June report. The "cost" has been adjusted to show the amount of premium/discount earned in Fiscal Year 1993/1994. This adjustment is made once each year at the close of the fiscal year. The current investment policy assumes that all securities will be held until the stated maturity date. This means that the city will receive the coupon amount promised by the "Issuer". This amount is shown in the "Value" column. Any securities which have an early call provision, can only be called at their face value. LAIF is a pooled investment account managed by the State Treasurer. The fund continues to provide an important 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 4.823% as of July 31, 1994. This is up significantly from the 4.459% rate reported last month. LAIF comprised a smaller percentage of the total portfolio when compared to the previous month (21.9% vs. 24.7% in June). The LAIF interest rate should continue to rise in the coming months. For reporting purposes this report includes the Quarterly rate, since this is how the interest is calculated and paid. However, the Daily rate is currently 0.087% higher than the Quarterly rate. On an annual basis the Staff reviews the City'S investment policy to determine whether modifications would be appropriate. In the most recent review Staff has not identified any required changes. The city's current policy requires that 90% of the monies invested, must have maturities shorter than 5 years and no investments may have maturities beyond 10 years. The current portfolio meets this criteria. Staff believes that these restrictions are prudent, while allowing the flexibility necessary to meet the City'S goals for the use of city reserves. The City has posi tioned the portfolio to be capable of implementing the identified high priority goal of calling all outstanding Civic Center Certificates of participation (COP's) on February 2, 1999. This will require a total of $13,125,000. Based upon current maturity dates adequate funds will be available to meet this goal. The portfolio has staggered maturities which will provide the City with flexibility. Further, the City's cash flow needs are adequately protected, by retaining adequate monies in short term investments such as LAIF. The schedule of investment maturities is anticipated to allow the City to meet anticipated expenditures in the upcoming month. ---------------------------------------------------------------------- COPIES TO: CITY CLERK FilE ~ 4.'7 .. ." . e City of Dublin City Treasurer's Listing of Investments As of July 31, 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. Date MATURITY Value Rate INVESTMENT Cost Yield TYPE OF INVESTMENT POOLED INVESTMENTS 21.9% of Total Portfolio State of California LAIF $4,025,000.00 $4,025,000.00 (1) 4.823% MUTUAL FUND 9.3% of Total Portfolio Dean Witter Revnolds U.S. Govt Securities (2 ) ( 3 ) $1,699,995.50 (4) 6.017% CERTIFICATES OF DEPOSIT 2.7% OF Total Portfolio First Republic T & L Fremont Investment & Loan Southern Calif FS&L Standard Pacific Svgs World Savings $95,000.00 $99,000.00 $98,000.00 $99,000.00 $100.000.00 $491,000.00 GVRNT/AGENCY SECURITIES (5) 66.1% of Total Portfolio 9/14/98 7/30/98 9/14/98 7/30/98 1/29/98 5.250 5.560 5.250 5.200 6.010 $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) FNMA. 6/30/95 $500,000.00 5.250 $500,000.00 5.250% FHLB 5/20/96 $500,000.00 6.200 $500,000.00 6.200% FHLB 8/26/96 $490,000.00 7.700 $490,000.00 7.700% U S Treasury Note 2/15/97 $500,000.00 4.750 $488,274.35 5.724% FFCB(Callable 3/03/95) 3/03/97 $500,000.00 5.120 $496,388.80 5.420% FHLMC(Callable 5/24/95) 5/24/97 $500,000.00 6.510 $500,000.00 6.510% FHLB(Callable 6/09/95) 6/09/97 $500,000.00 6.720 $500,000.00 6.720% FNMA 6/10/97 $1,205,000.00 9.200 $1,262,000.00 7.066% FNMA.(Callable 5/13/96 ) 5/13/98 $500,000.00 5.250 $496,000.00 5.482% FHLMC(Callable 9/09/94) 9/09/98 $500,000.00 4.950 $498,578.12 5.020% FNMA.(Callable 10/15/96)10/15/98 $1,000,000.00 4.875 $999,463.57 4.889% U S Treasury Note 10/31/98 $1,000,000.00 4.750 $986,984.38 5.101% FHLB(Callable 11/03/94)11/03/98 $1,000,000.00 5.110 $1,000,000.00 5.110% FNMA(Callable 12/10/96)12/10/98 $1,000,000.00 5.310 $999,585.92 5.311% FHLB(Callable 1/12/95) 1/12/99 $2,000,000.00 5.460 $2,000,000.00 5.460% FNMA(Callable 2/12/96) 2/12/99 $400.000.00 5.550 $399.770.85 5.564% $12,095,0,00.00 $12,117,045.99 5.713% Total Investments - per books $18,333,041.49 5.539% --------------- ------- --------------- ------- Footnotes (1 ) ( 2) Interest rate shown is quarterly average as of July 31, 1994. As a mutual fund investment this investment can be liquidated at any given time, however the asset value will fluctuate based upon the current market rate. The investment strategy assumes that approximately $1 million will be held through July 1, 1999, and $699,995 through October 1, 1999, without a deferred sales charge. Market value as of July 27, 1994, based upon original shares invested plus fiscal year to date dividends is $1,557,713. The market value would also be affected by deferred sales charges, if the investment were liquidated prior to the dates stated in note (2). The yield on a mutual fund ,fluctuates with the share price of shares currentlr held. The yield presented is an annualized amount based upon the prev~ous twelve months of dividends at the share price as of 7/27/94 divided by the original cost. 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, ( 3 ) (4) (5)