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HomeMy WebLinkAboutItem 4.05 CT InvestRpt 10-31-1995 (2) ., ...... CITY CLERK File # DI3J[g][O]-[3J[Q] e. AGENDA STATEMENT CITY COUNCIL MEETING DATE: (November 14,1995) SUBJECT: .....(t City Treasurer's Investment Report: October 31, 1995 '0- Report Prepared by: Paul S. Rankin, Assistant City Manager EXIllBITS ATTACHED: Listing of Investments as of October 31, 1995 RECOMMENDATION: ~vfY Receive-Report DESCRIPTION: The attached listing details the City's investments as of October 31, 1995. Thetotal amount shown as invested is approximately $984,473 less than the amount shown at the end of the previous month. The decrease was partially caused by the release in early October of approximately $760,000 in payments approved at the end of September. In addition, at the end of the quarter the City temporarily transfers idle funds in the operating account to LAIF in order to reduce banking charges. As of October 31st the balance in the operating account was higher than at the end of the previous month. ....... The City did have a $500,000 FHLB Note which matured on October 19, 1995. A replacement e investment was purchased however, the settlement of the transaction will not occur until November. No new investments were held as of the October 31, 1995 report. Although a replacement investment was located Staff does not foresee additional investment opportunities at this time. In coming months the City is anticipating the need to cover the Sheriff's Department first quarter billing as well as payments related to the Dublin Boulevard widening project. These activities preclude the City from extending significantly the maturity of the funds currently invested. Overall, the total yield on the City's portfolio for the month of October showed a very slight decrease from the rate shown for the month of September (5.859% vs. 5.893% respectively). The change was caused by a decrease in the LAIF rate as well as a decrease in the total funds invested in LAIF. Also, the Government Securities portion of the portfolio declined slightly due to the maturity discussed above.( September weighted average for Government Securities held by the City were 5.824% vs. 5.811% in October.) The specific note which matured had a yield to maturity of 6.165%. These decreases were partially offset by an increase in the yield calculated on the Dean Witter Mutual Fund investment (September 6.451 % vs. October at 6.537%). The LAIF quarterly average was 5.780% as of October 27, 1995, which is slightly less than the 5.90% rate recorded in the month of August. For reporting purposes this report includes the Quarterly Rate, since this is how the interest is calculated and paid. In general, interest rates have stabilized and most projections do not anticipate significant increases in the near term. As a liquid investment the current LAIF rate remains very favorable compared to rates offered on investments which have less flexibility. A:.Th.:e schedule of investments including the dates of maturity is anticipated to allow the City to meet ~ticipated expenditures in the upcoming month. _ .------------------------------------------------------------------- COPIES TO: G\agenda\agendpsr.doc ITEM NO. M .. ~ City of Dublin City Treasurer's Listing of Investments as of October 31,1995 .:. 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 financing legal documents. . TYPE OF INVF:STMENT ~ MA TIJRTTY ~ ~ INVESTMRNT CQSt .fu1d POOLED INVF:STMENTS 28.4% oCTotal PortColio State of California LAIF $5,910,000.00 $5,910,000.00 (I) 5.780% MUTUAL FUND 8.2% oCTotal Portfolio Dean Witter Revnolds U.S. Govt Securities (2) (2) $1,699,995.50 (3) 6.537% (4) CERTIFICA YES OF DEPOSIT 2.8% oCTotal PortColio 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 7130/98 $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) 60.6% oC Total PortColio . Bank of California(Safekel:pin~) 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 611 0/97 $1,205,000.00 9.200 $1,243,000.00 7.066% FNMA(Callable 6117/96) 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) 6/20/97 $500,000.00 6.190 $500,000.00 6.190% FNMA (Callable 5113/96) 5113/98 $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 10115/96) 10115/98 $1,000,000.00 4.875 $999,588.57 4.889% US Treasury Note 10/31198 $1,000,000.00 4.750 $990,046.88 5.101% FHLB (Callable 11103/94) 11103/98 $1,000,000.00 5.1I0 $1,000,000.00 5.110% FNMA (Callable 12/10/96) 12/10/98 $1,000,000.00 5.310 $999,679.67 5.31I% FHLB (Callable 1112/95) 1112/99 $2,000,000.00 5.460 $2,000,000.00 5.460% FNMA (Callable 2/12/96) 2/12/99 $400.00000 5.550 $399.820 85 .u2lli $12,595,000.00 $12,608,652.00 5.811% TOTAL INVESTMENTS - PER BOOKS $20 808 647.50 5.859% -. Footnotes' (I) Interest rate shown is quarterly average as of October 27, 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 SI million will be held through July I, 1999, and S699,995 through October I, 1999, without a deferred sales charge. Current market value is stated in #3 below. (3) Market value as of October 29, 1995, based upon original shares invested plus fiscal year to date dividends is SI,657,449. The market value would also_ be affected by deferred sales charges if the investment were liquidated prior to the dales 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 October 29, 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 Cor local governmental agencies.