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Home My WebLink About4.02 CT InvestRpt11-30-1995 << " ~ . CITY CLERK File # D[3Jr2l[Q]-[3][Q] e. AGENDA 81 A TEMENT CITY COUNCIL MEETING DATE: (December 12,1995) SUBJECT: City Treasurer's Investment Report: November 30, 1995 ~eport Prepared by: Paul S. Rankin, Assistant City Manager EXlDBITS ATTACHED: ~sting of Investments as of November 30, 1995 RECOMMENDATION: 1fJ Receive Report DESCRIPTION: The attached listing details the City's investments as of November 30, 1995. The total amount shown as invested is approximately $410,000 less than the amount shown at the end of the previous month. The decrease was partially caused by the need to withdraw funds from LAIF in order to pay approved expenses. During the month of November the payments processed totaled approximately $1.9 million. Thi~ represents approximately $558,000 more than the average amount processed during each of the four prior months (July - October). The increased expenses were partially attributable to the payment of first quarter contract Police Services, as well a progress payment on the Dublin Boulevard Widening Project. The City had a $500,000 Fffi..B Note which matured on October 19, 1995. A replacement investment e.. was purchased and the. settlement of the tran~action occurred on November 1, 1?95. The City p~chased a >$500,000 FNMA MedIUm Term Note. The Investment has a 30 month term WIth a final maturity date of . May 1, 1998. The note has 6 months of "call protection", which means the issuer has the right to call the investment at face value plus accrued interest beginning May 1, 1996. The annual yield on the investment is 6.03%. The note was purchased at face value without any premium or discount. The note will extend slightly the average maturity of the total City portfolio, since it is invested for 2 1/2 years (unless called early). A term longer than one year was necessary in order to obtain an attractive yield. The longer term of this one investment will not adversely affect the ability of the City to meet its obligations in the future. Overall, the total yield on the City's portfolio for the month of November showed a slight increase from the rate shown for the month of October (5.862% vs. 5.859% respectively). The change was caused by a small increase in the LAIF rate as well as an increase in the yield for the Government / Agency Securities category. This category was affected by the addition of the new investment previously addressed in this report. These increases were partially offset by a small decrease in the yield calculated on the Dean Witter Mutual Fund investment (October at 6.537% vs. November at 6.458%). The LAIF quarterly average was 5.790% as of November 28, 1995, which is slightly more than the 5.78% rate recorded in the month of October. 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. The schedule of investments including the dates of maturity is anticipated to allow the City to meet e.'Ulticipated expenditures in the upcoming month. . . ------------------------------------------------------------------- COPIES TO: G\agenda\agendps~doc ITEMNO.~ c City of Dublin City Treasurer's Listing of Investments as of November 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 ~ MA TIJRITY ~ ~ INVESTMENT ~ YWd POOLED INVESTMENTS 24.5% of Total Portfolio State of California LAIF $5,000,000.00 $5,000,000.00 (I) 5.790% MUTUAL FUND 8.3% of Total Portfolio Dean Witter Reynolds U.S. Govt Securities (2) (2) SI,699,995.50 (3) 6.458% (4) CERTIFICA TES OF DEPOSIT 2.9% of Total Portfolio Home Savings of America 12/08/95 S99,OOO.00 7.050 S99,000.00 7.050% World Savings 1/29/98 S 1 00,000.00 6.010 SIOO,OOO.OO 6.010% Fremont Investment & Loan 7/30/98 $99,000.00 5.560 S99,000.00 5.560% Standard Pacific Savings 7130/98 S99,OOO.00 5.200 $99,000.00 5.200% First Republic T & L 9/14/98 S95,OOO.00 5.250 S95,000.00 5.250% Southern California FS & L 9/14/98 $98 000 00 5.250 S98000.00 ~ S590,OOO.00 $590,000.00 5.724% GOVERNMENT/AGENCY SECURITIES (5) 64.3% of Total Portfolio . 'Bank of Califomia(Safekeeping) FHLB 5/20/96 S500,OOO.00 6.200 $500,000.00 6.200% FHLB 8(26/96 $490,000.00 7.700 $490,000.00 7.700% FHLB (Callable 12(20/95) 12/20/96 S500,OOO.00 7.900 S500,OOO.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 S500,OOO.00 5.120 $497,743.00 5.420% FNMA 6/10/97 S 1 ,205,000.00 9.200 S 1,243,000.00 7.066% FNMA(Callable 6/17/96) 6/17/97 S500,000.00 6.190 S500,OOO.00 6.190% FHLMC(Callable 12/16/95) 6/16/97 $500,000.00 6.440 $500,000.00 6.440% FHLMC(Callable 12(20/95) 6(20/97 $500,000.00 6.190 S500,OOO.00 6.190% FNMA (Callable 11/01/96) 5/01/98 S500,OOO.00 6.030 $500,000.00 6.030% FNMA (Callable 5/13/96) 5/13/98 S500,OOO.00 5.250 S497,125.00 5.482% FHLMC(Callable 9/09/94) 9/09/98 S500,OOO.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 10131/98 S I ,000,000.00 4.750 S990,046.88 5.101% FHLB (Callable 11/03/94) 11/03/98 SI,OOO,OOO.OO 5.110 S 1,000,000.00 5.110% FNMA (Callable 12/10/96) 12/10/98 S 1,000,000.00 5.310 S999,679.67 5.311 % FHLB (Callable 1/12/95) 1/12/99 S2,OOO,OOO .00 5.460 $2,000,000.00 5.460% FNMA (Callable 2/12/96) 2/12/99 $400 000 00 5.550 S399 820 85 ~ $13,095,000.00 $13,108,652.00 5.819% TOTAL INVESTMENTS - PER BOOKS $20 398 647 50 5.862% Footnotes. (I) Interest rate shown is quarterly average as of November 28, 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 marlcet rate. ... The investment strategy assumes that approximately SI million will be held through July I, 1999, and S699,995 through October 1,1999, without a . . def=d sales charge. Current marlcet value is stated in #13 below. (3) Market value as of November 28,1995, based upon original shares invested plus fiscal year to date dividends is $1,677,635. The market value would also be! affected by def=d 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 November 28, 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.