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Home My WebLink About4.03 CT InvestmntRpt '" . . , I:' ." ern OF 1X1BLIN AGENDA. STATEMENT CITY COUNCIL MEETING DATE: October 3, 1994 SUBJECT: city Treasurer's Investment Report: AUgust 31, 1994 q*(prepared by: Paul S. Rankin, Assistant city Mgr) EXHIBITS ATTACHED:~isting of Investments as of August 31, 1994 RECOMMENDATION: I(;vP R:cei ve Report DESCRIPTION: The attached listing details the city's investments as of August 31, 1994. The total amount shown as invested. is approximately $150,000 more than the amount shown at the end of the previous month. The amount shown as invested includes approximately $220,000 of payments authorized in August, which will be released in early September. If this factor is accounted for, the amount invested in August is slightly less than the previous month. OVerall, the total yield on the city's portfolio for the JIlOnth of August showed a favorable gain from the rate shown for the month of July (5.558% vs. 5.539% respectively). This was primarily due to a favorable change in the rates at the Local Agency Investment Fund. No new investments were purchased in the month of August. LAIF is a pooled investment account :aanaged by the state Treasurer. The fund continues to provide an important investment option for public agencies. It has become such a valuable resource that the LAIF recently increased the maximum agencies can deposit. The maximum. limit was increased from $15 million to $20 million. The fund allows cities to move monies in and out similar to a money market fund. The LAIF quarterly average was 4.908% as of August 31, 1994. This is up slightly from the 4.823% rate reported last month. The LAIF interest rate should continue to rise in the coming months. For reporting purposes this report includes the Quarterly Rate of 4.908%, since this is how the interest is calculated and paid. However, the Daily Rate was at 5.038 on August 31, 1994. For the most recent reporting period the average maturi ty of investments held by LAIF was approxiaately 1.25 years. As interest rates have increased, LAIF has lengthened the average maturity of its investments. For the city this remains as a very liquid professionally managed investment. The schedule of investment maturities is anticipated to allow the city to meet anticipated expenditures in the upcoming DlOnth. ... ----------------------------------------------~----------------------- COPIES TO: CITY. CLERK FILE m:zlo rJ310 I 4.-; ,. . .. city of Dublin. city Treasurer's Listing of Investments As of August 31, 1994 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. Rate INVESTMENT Cost Yield TYPE OF INVESTMENT Date MATURITY Value POOLED INVESTMENTS 22.6% of Total Portfolio State of California LAIF $4,175,000.00 $4,175,000.00 (1) 4.908% MUTUAL FUND 9.2% of Total Portfolio Dean Witter Revnolds U.S. Govt Securities (2) ( 3) $1,699,995.50 (4) 6.076% CERTFICIATES OF DEPOSIT 2.7% of Total Portfolio First Republic T & L Fremont Investment & Loan Southern Calif FS&L Standard Pacific svgs World Savings $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 (5) 65.6% of Total Portfolio 9/14/98 7/30/98 9/14/98 7/30/98 1/29/98 $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% 5.457% Bank of California(Safekeeping) FNMA 6/30/95 $500,000.00 5.250 $500,000.00 5.250% 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% U S Treasury Note 2/15/97 $500,000.00 4.750 $488,274.35 5.724% FFCB(Callable 3/03/95) 3/03/97 $500,000.00 5.120 $496,388.80 5.420% FHLMC(Callable 5/24/95) 5/24/97 $500,000.00 6.510 $500,000.00 6.510% FHLB(Callable 6/09/95) 6/09/97 $500,000.00 6.720 $500,000.00 6.720% FNMA 6/10/97 $1,205,000.00 9.200 $1,262,000.00 7.066% FNMA(Callable 5/13/96) 5/13/98 $500,000.00 5.250 $496,000.00 5.482% FHLMC(Callable 9/09/94) 9/09/98 $500,000.00 4.950 $498,578.12 5.020% FNMA(Callable 10/15/96)10/15/98 $1,000,000.00 4.875 $999,463.57 4.889% U S Treasury Note 10/31/98 $1,000,000.00 4.750 $986,984.38 5.101% FHLB(Callable 11/03/94)11/03/98 $1,000,000.00 5.110 $1,000,000.00 5.110% FNMA(Callable 12/10/96)12/10/98 $1,000,000.00 5.310 $999,585.92 5.311% FHLB(Callable 1/12/95) 1/12/99 $2,000,000.00 5.460 $2,000,000.00 5.460% FNMA(Callable 2/12/96) 2/12/99 $400.000.00 5.550 $399.770.85 5.564% $12,095,000.00 $12,117,045.99 5.713% Total Investments - per books $18,483,041.49 5.558% --------------- -------- --------------........ -~.........._--- Footnotes (1 ) (2 ) (3 ) Interest rate shown is quarterly average as of August 31, 1994. 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 $1 million will be held through July 1, 1999, and $699,995 through October 1, 1999, without a deferred sales charge. Market value as of August 29, 1994, based upon original shares invested plus fiscal year to date dividends is $1,572,285. The market value would also be affected by deferred sales charges, if the investment were liquidated prior to the dates stated in note (2). 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 8/29/94 divided by the original cost. 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, (4 ) (5 )