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Home My WebLink About4.01 CT InvestRpt '- '" . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 11, 1994 SUBJECT: city Treasurer's Investment Report: June 30, 1994 ~ (Prepared by: Paul S. Rankin, Assistant city Mgr) EXHIBITS ATTACHED: ~istinq of Investments as of June 30, 1994 RECOMMENDATION: Receive Report DESCRIPTION: The attached listing details the City'S investments as of June 30, 1994. The total amount invested is approximately $ 500,000 less than shown at the end of the previous month. As a result of payment due dates, approximately $ 135,624 of payments authorized in June are included in the total amount invested. These checks will be released in early July. The decrease in the total amount invested is reflective of final quarter payment for estimated police services and payments related to capital projects undertaken in the final quarter of the year. Overall, the total yield on the city's portfolio for the month of June showed a favorable gain from the rate shown for the month of May (5.428% vs. 5.297% respectively). This was primarily due to the purchase of two new securi ties, while rates at the Local Agency Investment Fund increased slightly. 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 investment has fluctuated. The share price as of June 30, 1994 was $8.63 per share. The original purchase of the mutual fund were made in two increments and resul t in an average cost of $9.48 per share. The market rate of these types of investments will continually fluctuate. In the month of June, two separate $ 500,000 investment transactions were completed. The city purchased a Federal Home Loan Bank. (FIn.B) Note, with a final maturity date of June 9, 1997. This investment can be called beginning June 9, 1995. The investment has a coupon yield of 6.72%. The second investment was a Federal National Mortgage Association (FNMA) Note, with a maturity date of June 30, 1995. This investment provides additional diversity to the city portfolio as a one ~ear investment. The investment has a coupon yield of 5.25%. Both ~nvestments were purchased at par. The City has positioned the portfolio to be capable of implementing the identif~ed high priority goal of calling all outstanding Civic Center Certificates of participation (COP's) on February 2, 1999. This target date is approximately 4.59 years away and will require a total of $13,125,000. On a weighted average basis the certificate of Deposit portion of the portfolio currently has an average weighted maturity of 4.0 years. The Federal and Agency Securi ties catego;ry has an average weighted maturity of 3.64 years. The staggered maturit~es in the city's portfolio will provide the City with flexibility to meet established goals. 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 4.459% as of June 29, 1994. This is up slightly from the 4.385% rate reported last month. LAIF comprised a smaller percentage of the total portfolio when compared ---------------------------------------------------------------------- COPIES TO: CITY CLERK FILE I 131,~loH3Iof 4.1 .. ... . . to the previous month (24.7% vs. 31.7% in May). 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 0.193% higher than the quarterly rate. The sphedule of investment maturities is anticipated to allow the city to meet anticipated expenditures in the upcoming month. city of Dublin ~ city Treasurer's Listing of Investments As of June 30, 1994 This listing excludes DUblin Boulevard Exte~sion Assessment Distri?t and CO~ reserve fund balances, which are held by thlrd party Trustees and lnvested ln accordance with the financing legal documents. .. ~ TYPE OF INVESTMENT MATURITY Value Rate Date POOLED INVESTMENTS 24.7% OF Total Portfolio state of California LAIF $4,707,000.00 MUTUAL FUND 8.9% of Total Portfolio Dean Witter Reynolds U.S. Govt Securities (2 ) (2) CERTIFICATES OF DEPOSIT 2.6% OF Total Portfolio First Republic T & L ~remont Investment & Loan 0'mthern Calif FS&L Standard Pacific Svgs World Savings $95,000.00 $99,000.00 $98,000.00 $99,000.00 S100,000.00 $491,000.00 GVRNT/AGENCY SECURITIES (4) 63.8 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 Bank of California(Safekeeping) FNMA 6/30/95 $500,000.00 5.250 FHLB 8/26/96 $490,000.00, 7.700 U S Treasury Note 2/15/97 $500,000.00 4.750 FFCB(Callable 3/03/95) 3/03/97 $500,000.00 5.120 FHLB 5/20/96 $500,000.00 6.200 FHLMC(Callable 5/24/95) 5/24/97 $500,000.00 6.510 FHLB(Callable 6/09/95) 6/09/97 $500,000.00 6.720 FNMA 6/10/97 $1,205,000.00 9.200 FNMA(Callable 5/13/96) 5/13/98 $500,000.00 5.250 FHLMC(Callable 9/09/94) 9/09/98 $500,000.00 4.950 FNMA(Callable 10/15/96)10/15/98 $1,000,000.00 4.875 U S Treasury Note 10/31/98 $1,000,000.00 4.750 FHLB(Callable 11/03/94)11/03/98 $1,000,000.00 5.110 FHLB(Callable 1/12/95) 1/12/99 $2,000,000.00 5.460 FNMA(Callable 2/12/96) 2/12/99 $400,000.00 5.550 FNMA(Callable 12/10/96)12/10/98 Sl,OOO.OOO.oo 5.310 $12,095,000.00 Total Investments - per books INVESTMENT Cost Yield $4,707,000.00 (1) 4.459% $1,699,995.50 (3) 6.057% $95,000.00 $99,000.00 $98,000.00 $99,000.00 S100/000.00 $491,000.00 $500,000.00 $490,000.00 $487,343.75 $495,937.50 $500,000.00 $500,000.00 $500,000.00 $1,281,000.00 $495,000.00 $498,359.38 $999,375.00 $984,687.50 $1,000,000.00 $2,000,000.00 $399,750.00 $999.531.25 $12,130,984.38 $19,028,979.88 --------------- - --------------- 5.250% 5.560% 5.250% 5.200% 6.010% 5.457% 5.250% 7.700% 5.724% 5.420% 6.200% 6.510% 6.720% 7.066% 5.482% 5.020% 4.889% 5.101% 5.110% 5.460% 5.564% 5.311% 5.715% 5.428% ------......... ..........------ Footnotes (1) Interest rate shown is quarterly average as of June 29, 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, Septembe~ ~O, 1999 without ,. a deferred sales charge. Value is calculated at orlglnal cost. (3f 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 twelve months of dividends at the share price as of 6/30/94. (4) Federal Home Loan Bank (FHLB), Federal Farm Credit Bureau (FFCB), Federal National Mortgage Association (FNMA), and Federal Home Loan Mort9age Corp (FHLMC) are lawful investments for local governmental agencles.