HomeMy WebLinkAboutItem 4.03 InvestmentRpt4thQtr
CITY CLERK
File # D~[g][Q]-la]~
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: August 3, 2004
SUBJECT:
City Treasurer's Investment Report for 4th Quarter 2003-2004
Report Prepared by Fred W Marsh, Finance Manager and
Lisa Hisatomi, Administrative Analyst II
ATTACHMENTS:
Quarterly Investment Report (June 30, 2004)
Section I - Primary Investment Portfolio
Section II - Listing of Supplemental Monies Under City
Possession and/or Control
RECOMMENDATION: ~ Receive Report
DESCRIPTION: The attached Investment Report details the City's investments as of June 30, 2004,
in accordance with the Local Agency Investment Guidelines established by the State Treasurer. Section I
of the Report focuses on the principal investment portfolio. Section II details funds held by Trustees and
miscellaneous operating accounts.
The focus of the discussion in this report will be upon activity in the Primary Investment Portfolio.
Changes in the investment portfolio and investment activity for the fourth quarter of Fiscal Year 2003-
2004 are discussed in the staff report below.
INVESTMENT ACTIVITY DURING THE QUARTER
During the fourth quarter no investments matured or were called. Other available funds were used to
purchase eight new securities during the period, as summarized in the table on the following page:
INVESTMENTS PURCHASED DURING THE FOURTH QUARTER FY 2003-2004
Value at Maturity Current Call Date
Type Maturity Date Yield
FHLB $5,000,000 8/25/2006 3.060% 8/25/04
FHLB $3,000,000 4/27/2007 3.180% 10/27/04
FNMA $3,000,000 5/11/2007 3.270% 8/11/04
FHLB $2,500,000 2/11/2008 3.460% 2/11/05
FHLMC $5,000,000 4/28/2008 3.540% 4/27/05
FHLMC $5,000,000 1 0/7/2008 3.390% 1 0/7/04
FHLB $2,500,000 11/13/2008 4.080% 8/13/04
FNMA $5,000,000 4/7/2009 3.650% 7/7/04
In the most recent quarter the average maturity for the Federal Security portion of the portfolio is
estimated at 3.2 years. It is important to note that this relates solely to the portion of the portfolio that has
investments with a stated tenn. The City maintains adequate funds in more liquid investments, which are
deemed sufficient to meet cash flow needs.
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Document in quarterly investment report worksheets.XLS
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ITEM NO.-b
COPIES TO:
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DETAILED LISTING OF PRIMARY PORTFOLIO
Government and Agency Securities represent 68% of the Primary Portfolio. A detailed listing of each
security is provided in Section 1. The market value of Federal Securities can fluctuate daily and values
have been provided as reported by Union Bank of California as of Junc 30, 2004. The City portfolio
assumcs that the investments will be held to maturity and there is not an active attempt madc to trade
cxisting securities. The City has staggered the maturity dates within the portfolio and it is not anticipated
that these funds will need to be called by thc City prior to maturity.
The Morgan Stanley Dean Witter US Government Securities Mutual Fund Investment represents 2% of
the City's total portfolio. During thc 2003-2004 Fiscal Year thc City has received to datc $61,522 in
dividends from this investment, resulting in an annualizcd yield of 3.858%. Since October 1999, the
mutual fund may be redeemed without sales charges.
COMPOSITION OF PORTFOLIO - SOURCE OF FUNDS
To provide an overview ofthc portfolio, the table below shows the total investmcnt balance as of June 30,
2004 by source. Comparison infonnation is also shown for the previous quarter. Note that approximately
32% ofthe investment balancc represents restricted Impact Fee Funds. It is important to keep in mind that
this typc of report is merely a snapshot on a particular day. Revcnucs as well as expenditures are not
proccssed in equal monthly installments.
PORTFOLIO COMPOSITION BY SOURCE OF FUNDS
General Fund
Current Quarter Prior Quarter
6/3 0/2004 % of 3/3112004 % of
Balance Total Balance Total
$55,137,136 55.1% $51,784,027 54.2%
$4,096,428 4.1% $3,494,536 3.7%
$680,803 0.7% $509,577 0.5%
$32,012,463 32.0% $31,988,261 33.4%
$8,146,352 8.1% $7,871,847 8.2%
$100,073,182 100.0% $95,648,248 100.0%
Restricted - Special Revenue Funds
(I.e. Gas Tax, Special Taxes)
Restricted - Assessment District Funds
(Le. Landscape Maint & Debt Service)
Restricted - Impact Fees
Internal Service / Replacement Funds
TOTAL
CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT
The total amount shown as invcsted in the Primary Investmcnt Portfolio is $4,424,934 more than the
amount shown at March 31, 2004. Ovcrall, the combined ratc for the total portfolio increased from
2.133% at March 31,2004 to 2.826% at hmc 30, 2004. The increasc was attributable to thc purchase of
sevcral fcderal securities noted abovc.
The quartcrly average for thc City's LAIF investment was 1.44% as of Junc 30, 2004, which was lowcr
than the 1.48% rate recorded for the quarter ending March 31, 2004.
The schcdulc of investments, including the dates of maturity, contains adcquate cash flow liquidity to
mcet anticipated expcnditures over the next six months. The investmcnts and the schcdule of investments
are in compliance with the City's investment policy and all applicable laws and regulations.
() rJb c9,
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CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
4th QUARTER FY 2003-2004
SECTION I
PRIMARY INVESTMENT
PORTFOLIO
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A+-+khm¿n+ I
CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS ;<6fJ ({I
INCLUDING RATE OF RETURN
June 30, 2004
COUPON BOOK AND
MATURITY VALUE AT INTEREST CURRENT MARKET
INVESTMENT 1ST CALL DATE DATE MATURITY RATE YIELD VALUE
FEDERAL SECURITIES
FHLB 12/15/2004 I 3,000,000 3.875% 3.840% 3,030,930
FHLB 8/26/04 8/26/2005 2 2,000,000 2.325% 2.330% 1,998,280
FHLB 8/25/04 8/25/2006 3 5,000,000 3.050% 3.060% 4,990,650
FNMA 7/2/04 12/29/2006 3 3,520,000 3.000% 3.020% 3,493,600
FHLB 6/3/04 1/2/2007 3 4,480,000 3.000% 3.020% 4,449,222
FHLMC 1/3/2007 3 500,000 6.525% 6.050% 538,905
FFCB 1/23/2007 3 421,000 4.600% 4.460% 434,\ 56
FHLB 2/15/2007 3 4,000,000 4.875% 4.700% 4,151,240
FHLB 10/27/04 4/27/2007 3 3,000,000 3.150% 3.180% 2,975,640
FNMA 8/11/04 5/11/2007 3 3,000,000 3.250% 3.270% 2,980,320
FHLB 8/18/04 5/18/2007 3 2,000,000 3.000% 3.040% 1,974,380
FHLMC 9/10/04 9/10/2007 4 5,000,000 3.650% 3.650% 5,006,100
alLB 2/11/05 2/1112008 4 2,500,000 3.420% 3.460% 2,471,100
FHLMC 4/27/05 4/28/2008 4 5,000,000 3.500% 3.540% 4,941,750
FHLB 12/24/03 6/24/2008 5 9,000,000 3.100% 3.190% 8,735,670
FHLB 9/30/03 6/30/2008 5 1,000,000 3.200% 3.290% 973,750
FHLMC 10/7/04 10/7/2008 5 5,000,000 3.300% 3.390% 4,863,100
FHLB 8/13/04 11/13/2008 5 2,500,000 4.070% 4.080% 2,495,325
FHLB 6/29/04 12/3/2008 5 2,\80,000 4.000% 4.060% 2,\46,624
FNMA 7/7/04 4/7/2009 5 5,000,000 3.550% 3.650% 4,859,400
TOTAL FEDERAL SECURITIES $68,101,000 3.460% $67,510,142
MUTUAL FUNDS
$684,569
See Note 1
0.910% $2,647,187
0.680% $684,569
3.858% (2) $1,626,782
1.832% $4,958,538
1.440% $27,604,502
2.826% $100,073,182
Nations Bank Government Reserves
Capital Fund
Union Bank U.S. Govt Securities
Morgan Stanley Dean Witter U.S. Govt Securities
$2,647,\87
TOTAL MUTUAL FUNDS
POOLED PUBLIC AGENCY INVESTMENTS
State of CA.- Local Agency Investment Fund (LAIF)
$27,604,502
TOTAL INVESTED PORTFOLIO
NOTES:
(1) A Mutual Fund investment does not have a stated date of maturity and shares may be sold at any time. The share price at the time of a
sale may be either higher or lower than the original cost.
(2) Interest Rate shown is based on dividends received this fiscal year to date, which are annualized and then divided by the original
investment.
Maturity Schedule Sununary of Portfolio (Assuming None of Securites are called prior to Maturity)
Money Market Funds/LAIF (1 day liquidity)
Maturing in I year or less
Maturing in 1-2 years
Maturing in 2-3 years
Maturing in 3-4 years
Maturing in 4-5 years
$32,563,040
$3,030,930
$1,998,280
$25,988,\ 13
$12,418,950
$24,073,869
33%
3%
2%
26%
12%
24%
Total Portfolio
$100,073,182
100%
7/19/2004 11 :03 AM
ITEM 1
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CITY OF DUBLIN
SUMMARY OF INVESTMENT PORTFOLIO
COMPARISON BY INVESTMENT TYPE
June 30, 2004
TYPE OF INSTRUMENT
Federal Home Loan Bank (FHLB)
Federal Farm Credit Bureau (FFCB)
Federal National Mortgage Assn (FNMA)
Federal Home Loan Mortgage Corporation
(FHLMC)
SUB -TOTAL GOVT/AGENCY
BOOK AND AVERAGE
MARKET %OF MATURITY
VALUE PORTFOLIO YEARS
40,392,811 40.4% 3.0
434,156 0.4% 2.6
11,333,320 11.4% 3.6
15,349,855 15.4% 3.7
67,510,142 (1) 67.7% 3.2
Mutual Funds
Morgan Stanley Dean Witter U.S. Govt
Securities
1,626,782 (2)
1.6%
N/A
Union Bank U.S. Govt Securities
684,569
0.7%
N/A
Nations Bank Government Reserves
Capital Fund
LAIF
2,647,187 2.6% N/A
27,604,502 27.4% N/A
$100,073,182 100.0%
GRAND TOTAL
NOTES:
(1) The City intends to hold the investments until maturity or until market values equal or exceed their face value.
(2) As a mutual Fund shares can typically be liquidated at any time. The weighted average maturity stated in this chart
by Dean Witter based upon all investment instruments owned by the u.s. Government Securities Mutual Fund.
7/19/200410:31 AM
ITEM 2
t.f1t
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
4th QUARTER FY 2003-2004
SECTION II
LISTING OF SUPPLEMENTAL
MONIES UNDER CITY
POSSESSION AND/OR
CONTROL
. OPERATING FUNDS
. SPECIAL FUNDS HELD BY TRUSTEES
City of Dublin Report of
Operating Funds On Hand
As of June 30, 2004
G61:f
In accordance with the California Government Codc, thc City Treasurer must disclose on a quartcrly basis
all monics in its possession. Monics considered invested, and not immediately necessary for current
operations, are presented in a separate listing as part of the quarterly report.
In the case of Operating Funds in bank accounts, thc amount presented relates to the balancc rcported by
the Financial Institution. IT IS IMPORTANT TO NOTE THAT THIS AMOUNT MAY REFLECT
FUNDS REQUIRED TO COVER PAYMENTS ALREADY ISSUED AND CHECKS WHICH HAVE
NOT CLEARED AS OF THE LAST DAY OF THE QUARTER. Thcrcfore, these balances will fluctuatc
throughout the year. These funds are not subjcct to a specified maturity and thc par value would be
equivalent to the amount stated.
Miscellaneous Cash
Non-Catee:orized - Cash
Cash Registers/Petty Cash - City
Pctty Cash ~ Shannon Center
Subtotal
Balance
06/30/2004
$1,025.00
$200.00
$1,225.00
OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS
Balance 06/30/2004
BANK OF AMERICA-
Collateralized Public Money
Deposits In Accordancc With
California Govcrnment Code
$8,413
NATIONS BANK
U.S. Treasury Rcscrvcs Adviscr
Account (Sweep Account
connccted to Bank of America
Deposits listed above)
$845,510
Cal Fed-
Regular Savings Account:
FDIC Insured
$3,595
Grand Total Amount
Cash Balances:
$857.518
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