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Home My WebLink About4.02 CT InvestRpt12-31-1993 ;. .~ . e CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: January 10, 1994 ~~City Treasurer's Investment Report:December 31, 1993 ~~ (Prepared by: Paul S. Rankin, Assistant city Mgr) EXHIBITS ATTACHED: ~isting of Investments as of December 31, 1993 RECOMMENDATION: QN'TRecei ve Report SUBJECT: DESCRIPTION: The attached listing details the City's investments as of December 31, 1993. The total amount invested is more than shown in the previous month by approximately $ 3.124 million. This increase is the resul t of a combination of factors and is anticipated to be temporary. In the month of December the city received the first of two large distributions of property taxes. This also includes fees collected on the property tax bill. The county Auditor transmitted approximately $2.341 mil110n to the city in the month of December. The city also received sales tax revenues in the amount of $ 590,785 during the month. On the expenditure side there are significant expenditures which should be experienced in early 1994. As of December 31, 1993 the city had not received any invoice for the first six months of services provided by the Alameda County Sheriff's Department. This billing is anticipated to be approximately $ 1.4 million. In January the Citr will also be making a paYment of approximately $ 1.49 million, as the f1rst Civic Center COP payment on the refunded issue. The city will also expend in January approximately $ 260,000 for the first six months of residential basic garbage collection and recycling services. Obviously these are only some of the key expenditures anticipated and they will tend to reduce the portfolio size in the coming month. Another factor which has contributed to the portfolio size reported for December is the temporary transfer of cash from operating accounts to LAIF. This typically occurs at the end of the quarter and is used to reduce fees and charges incurred by operating accounts. At the beginning of January approximately $ 625,000 will be transferred from LAIF to operating accounts to provide for anticipated cash flow needs. OVerall, the total yield on the City'S portfolio for the month of December decreased slightly from the rate shown for the month of November ( 5.011% vs. 5.067% respectively). This is primarily the impact of a larger balance in the LAIF account. In the month of November one new investment transactions was completed. The City purchased an original issue Federal National Mortgage Association (FNMA - "Fannie Mae") , five year note. The investment has provisions for an early call in December of 1996. . Three years of call protection is one year longer than the city obtained on its last Federal Agency note purchase. The instrument was purchased at a discount and will yield 5.311% to maturity. This transactions increased the ~rtion of the City'S portfolio invested in Federal Securities to approx1mately $ 7.1 million as compared to $ 6.1 million in the month of November. It also extends the total amount of funds invested, which will mature in more than one year. 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 4.375% as of December 28, 1993. This is up Slightly from the 4.366% rate reported last month. The average rate reported for LAIF during the first S1X months of Fiscal Year 1993/94 equals approximately 4.410%. As discussed earlier in this ---------------------------------------------------------------------- COPIES TO: -JtJwru.Jfo. ~ CITY CLERK FILE ~ ,.".,....... ~ . e report the City had a larger LAIF balance in December than the month of November. LAIF comprised approximately 54.7% of the total portfolio in December as compared to only 52.0% in the month of November. The schedule of investment maturities is anticipated to allow the city to meet anticipated expenditures in the upcoming month. e city of Dublin e city Treasurer's Listing of Investments As of Dec. 31, 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 INVESTMENT ~ MATURITY Value ~ ~OOLED INVESTMENTS 54.7% of Total Portfolio state of California LAIF MUTUAL FUND 8.3% of Total portfolio Dean witter Revnolds U.S. Govt securities (2 ) INVESTMENT ~ Yield $11,265,000.00 $11,265,000.00 (1) 4.375% (2) CERTIFICATES OF DEPOSIT 2.4% OF Total Portfolio $95,000.00 5.250 $99,000.00 5.560 $98,000.00 5.250 $99,000.00 5.200 $100,000.00 6.010 $491,000.00 GVRNT/AGENCY SECURITIES (4) 34.7% 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 Bank of California(Safekeeping) FHLB 8/26/96 FNMA 6/10/97 FNMA(Callable 5/13/96) 5/13/98 FFCB 2/02/98 FHLMC(Callable 9/9/94) 9/09/98 FNMA(Callable 10/15/96)10/15/98 U S Treasury Note 10/31/98 FHLB(Callable 11/3/94) 11/03/98 FNMA(Callable 12/10/96)12/10/98 Total Investments - per books $490,000.00 $1,205,000.00 $500,000.00 $400,000.00 $500,000.00 $1,000,000.00 $1,000,000.00 $1,000,000.00 $1.000.000.00 $7,095,000.00 7.700 9.200 5.250 5.800 4.950 4.875 4.750 5.110 5.310 $1,699,995.50 (3) 6.110% $95,000.00 $99,000.00 $98,000.00 $99,000.00 $100.000.00 $491,000.00 $490,000.00 $1,281,000.00 $495,000.00 $400,000.00 $498,359.38 $999,375.00 $984,687.50 $1,000,000.00 $999.531.25 $7,147,953.13 $20,603,948.63 --......------------ --------------- 5.250% 5.560% 5.250% 5.200% 6.010% 5.457% 7.700% 7.066% 5.482% 5.800% 5.020% 4.889% 5.101% 5.110% 5.311% 5.692% 5.001% ------- ------- Footnotes (1) Interest rate shown is quarterly average as of December 31, 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. Value is calculated at original cost. (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 six months 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.