The URL can be used to link to this page

Home My WebLink About4.02 CT InvestmntRpt L ~~, ,~... , / . . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: October 11, 1993 SUBJECT: City Treasurer's Investment Report: September 30, 1993 ~prepared by: Paul S. Rankin, Assistant City Mgr) EXHIBITS ATTACHED: )Listing of Investments as of September 30, 1993 RECOMMENDATION:\VV~Receive Report - DESCRIPTION: The attached listing details the city's investments as of September 30, 1993. The total amount invested is approximately $ 389,300 more than shown in the previous month. This change is actually immaterial since shortly after month end a transfer was made from LAIF to the operating account in the amount of $450,000. OVerall, the total yield on the City's portfolio for the month of september improved slightly from the rate shown for the month of August (5.005% vs. 4.964 %). In the month of September four new investment transactions were completed. The City added an increment of $ 700,000 to the Dean witter U. S. Government Securities Mutual Fund. This brings the total City investment in the fund to approximately $ 1,700,000. City Staff have considered these investments to be more than 5 years, since they must be held 6 years to avoid all deferred sales charges. Based upon the City Council po~icy a maximum of 10% of the City's portfolio may be placed in investments with maturity dates of between 5 and 10 years. The transaction in September will preclude significant additional investments with maturities beyond 5 years. The second investment purchased in September is a Federal Home Loan Mortgage Corporation (Freddie Mac) debenture. The coupon rate on the bond is 4.95%, however, the city purchased the investment at a discount. At maturity, the face value is $500,000. The investment does have a call provision in September of 1994. If it is not called it wil~ mature in 5 years. The City was also able to take advantage of two federally insured Certificates of Deposit. These were placed with separate institutions and both will yield 5.25%. This increased the total portfolio invested in Certificates of Deposit to 2.7% as compared to 1.7% in the prior month. LAIF is a pooled investment account managed by the State Treasurer. Currently over $9.5 Billion from various agencies is managed in this fund. The fund allows cities to move monies in and out similar to a money market fund. The quarterly average of 4.427% as of September 28, 1993. This is down slightly from the rate reported last month. The total percentage of the City's portfolio placed in LAIF declined from 77.5% in August to 70.4% in september. Due to deClining interest rates in LAIF, the City has moved approximately 15 % of the total portfolio to other investments. This process has been incremental with the movement of a portion of the portfolio each month since May of 1993. The schedule of investment maturities is anticipated to allow the City to meet anticipated expenditures in the upcoming month. ---------------------------------------------------------------------- COPIES TO: ~o.~ CITY CLERK FILE , b?1;212-JH3f 0' , ...i.:"" . ...a.-z-......':';' UW'~~. - 'r ..- .-:r-~,2::.~'::='.'. f. .A . . city of Dublin City Treasurer's Listing of Investments As of Sept. 30, 1993 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 f[NVESTMENT MATURITY ~ Value - ~ POOLED INVESTMENTS 70.4% of Total Portfolio State of California LAIF $12,752,000.00 MUTUAL FUND 9.4% of Total Portfolio Dean Witter Reynolds u.S. Govt Securities (2 ) (2) GVRNT/AGENCY SECURITIES 17.6% of Total Portfolio Bank of California(Safekeeping) FHLB Debentures (4) 8/26/96 FNMA Debentures (4) 6/10/97 FNMA Debentures (4) 5/13/98 FFCB Debentures (4) 2/02/98 Lehman Brothers(Safekeeping) FHLMC Debentures (4) 9/09/98 $490,000.00 $1,205,000.00 $500,000.00 $400,000.00 $500,000.00 $3,095,000.00 7.700 9.200 5.250 5.800 4.950 CERTIFICATES OF DEPOSIT' 2.7% of Total Portfolio First Republic T & L Investors Thrift & Loan Southern Calif FS&L Standard Pacific Svgs World Savings 9/14/98 7/30/98 9/14/98 7/30/98 1/29/98 Total Investments - per books $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 INVESTMENT Cost Yield $12,752,000.00 (1) 4.427% $1,700,001.21 (3) 6.529% $490,000.00 $1,300,000.00 $495,000.00 $400,000.00 $498.359.38 $3,183,359.38 $95,000.00 $99,000.00 $98,000.00 $99,000.00 $100.000.00 $491,000.00 $18,126,360.59 ============== 7.700% 7.066% 5.482% 5.800% 5.020% 6.438% 5.250% 5.560% 5.250% 5.200% 6.010% 5.457% 5.005% ------- ------- Footnotes (1) Interest rate shown is quarterly average as of September 27, 1993. (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. (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 month to date amounts of dividends reinvested. (4) Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Bank (FFCB) and Federal Home Loan Mortgage Corp (FHLMC) are lawful investments for local governmental agencies.