HomeMy WebLinkAboutItem 4.03 CT InvestRpt (2)
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: July 25, 1995
SUBJECT:
.... ~ City Treasurer's Investment Report: June 30, 1995
'Q) (prepared by: Paul S. Rankin, Assistant City Manager)
EXHIBITS ATTACHED: Listing of Investments as of June 30, 1995
RECOMMENDATION~eive Report
DESCRIPTION: The attached listing details the City's investments as of June 30,1995. The total
amount shown as invested is approximately $1.68 million more than the amount shown at the end of the
previous month. The increase is due to several factors including: temporary transfer of funds from the
operating account to the Local Agency Investment Fund; a temporary short term investment of matured
investment funds held by Bank of California; and an adjustment to the recorded values of securities
currently held to accrue amortized bond premiums and discounts for the Fiscal Year.
Three investment transactions were completed in June. The City had a $500,000 FNMA Note which
matured on June 30, 1995 and these funds were available for reinvestment during the month. In addition
the City had the following securities which were called in June prior to their stated maturity date:
INVESTMENTS CALLED IN JUNE 1995
Investment
FHLMC
FHLB
Amount
Invested
$500,000
$500,000
~
6.51 %
6.72%
Maturity Date
5/24/97
6/9/97
Callable
5/24/95
6/9/95
Date Called
6/26/95
6/9/95
The following table outlines the replacement securities purchased in June:
Investment
FNMA
FHLMC
FHLMC
INVESTMENTS PURCHASED IN JUNE 1995
Amount
Invested
$500,000
$500,000
$500,000
~
6.19%
6.44 %
6.19%.
Maturity Date
6/17/97
6/16/97
6/20/97
Callable
6/17/96
12/16/95
12/20/95
All of the investments were purchased at face value without any premium or discount. The rates obtained
were still above the current LAIF rate, however, unlike LAIF monies these are invested for a period of 2
years, unless they are called by the issuer prior to final maturity.
Overall, the total yield on the City's portfolio for the month of June showed a slight decrease from the rate
shown for the month of May (5.874% vs. 5.912% respectively). This was primarily due to a temporary
investment at Bank of California, which represented the matured funds plus interest on June 30, 1995.
These monies were invested over the weekend and then wired to the City on July 3, 1995. For audit
purposes they have been shown on the investment report in order for the Treasurer's Report to match the
Bank of California statement as of June 30, 1995. If this temporary investment had been excluded the yield
on the City portfolio would have been 5.907%, which is very close to the amount reported last month.
The LAIF quarterly average was 5.980% as of June 29, 1995, which is the same level as recorded in the
month of May. For reporting purposes this report includes the Quarterly Rate, since this is how the interest
is calculated and paid. The actual daily rate as of June 29, 1995 was 5.97%, which indicates that there
probably will not be additional significant increases in this rate. As a liquid investment the current rate
remains very favorable compared to rates offered on investments which have less flexibility.
The schedule of investments including the dates of maturity is anticipated to allow the City to meet
anticipated expenditures in the upcoming month.
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ITEM NO.
4.;
COPIES TO:
CITY CLERK
FILE ~
.,..
e City of Dublin e
City Treasurer's Listing of Investments
as of June 30,1995
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 fmancing legal documents.
TYPE OF INVESTMENT
~
MATIJRITY
.YlIlwt
~
INVESTMENT
Clm :fuld
POOLED INVESTMENTS 27.7% oCTotal Portfolio
State of California
LAIF
$6,095,000.00
$6,095,000.00 (1)
5.980%
MUTUAL FUND 7.7% oCTotal Portfolio
Dean Witter Reynolds
U.S. Govt Securities
(2)
(2)
$1,699,995.50 (3)
6.544% (4)
CERTIFICATES OF DEPOSIT 2.7% oC Total Portfolio
Home Savings of America 12/08/95 $99,000.00 7.050 $99,000.00 7.050%
World Savings 1/29/98 $100,000.00 6.010 $100,000.00 6.010%
Fremont Investment & Loan 7/30/98 $99,000.00 5.560 $99,000.00 5.560%
Standard Pacific Savings . 7/30/98 $99,000.00 5.200 $99,000.00 5.200%
First Republic T & L 9/14/98 $95,000.00 5.250 $95,000.00 5.250%
Southern California FS & L 9/14/98 $98 000 00 5.250 $98 000 00 ~
$590,000.00 $590,000.00 5.724%
GOVERNMENT/AGENCY SECURITIES (5) 59.6% oC Total PortColio
Bank of California(Safekeepin~)
FHLB 10/19/95 $500,000.00 5.820 $499,472.88 6.165%
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%
FHLB (Callable 12120/95) 12120/96 $500,000.00 7.900 $500,000.00 7.900%
U S Treasury Note 2/15/97 $500,000.00 4.750 $492,741.79 5.724%
FFCB (Callable 3/03/95) 3/03/97 $500,000.00 5.120 $497,743.00 5.420%
FNMA 6/10/97 $1,205,000.00 9.200 $1,243,000.00 7.066%
FNMA(Callable 6/17/96) 6117/97 $500,000.00 6.190 $500,000.00 6.190%
FHLMC(Callable 12/16/95) 6/16/97 $500,000.00 6.440 $500,000.00 6.440%
FHLMC(Callable 12120/95) 6120/97 $500,000.00 6.190 $500,000.00 6.190%
FNMA (Callable 5/13/96) 5/13/98 $500,000.00 5.250 $497,125.00 5.482%
FHLMC(Callable 9/09/94) 9/09/98 $500,000.00 4.950 $498,906.24 5.020%
FNMA (Callable 10/15/96) 10/15/98 $1,000,000.00 4.875 $999,588.57 4.889%
U S Treasury Note 10/31/98 $1,000,000.00 4.750 $990,046.88 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 $999,679.67 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 $399 820 85 ~
$13,095,000.00 $13,108,124.88 5.824%
SHORT TERM INVESTMENT FUND 2.3% oCTotal Portfolio
Bank of California 6/30/95 $513,125.00 3.820 $513,125.00 3.820%
TOTAL INVESTMENTS - PER BOOKS $22 006 245.38 5 874%
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(I) Interest rate shown is quarterly average as ofJune 29,1995.
(2) 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 I, 1999, and $699,995 through October I, 1999, without a
deferred sales charge. Current market value is stated in #3 below.
(3) Market value as of June 30,1995, based upon original shares invested is $1,616,021. The market value would also be affected by deferred sales charges if
the investment were liquidated prior to the dates stated in note (2).
(4) 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 previous
twelve months of dividends at the share price as of July 5, 1995, divided by the original cost.
(5) 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.