HomeMy WebLinkAboutItem 4.06 Investment Report 3rd Qtr
CITY CLERK
File'# D~[2J~-~~
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: May 1, 2007
SUBJECT:
City Treasurer's Investment Report for 3rd Quarter 2006-2007 ..-A
Report Prepared by Paul S. Rankin, Administrative Services Dir. ~lJ1 '-""
ATTACHMENTS: Quarterly Investment Report (March 31, 2007)
Section I - Primary Investment Portfolio
/1 i rI Section II - Listing of Supplemental Monies Under City
\ti. \:;!1{\{)J~. Possession and/or Control
RECOMMENDATIO~ Receive Report
DESCRIPTION: The attached Investment Report details the City's investments as of March 31,
2007, in accordance with the Local Agency Investment Guidelines established by the State Treasurer.
Section I of the Report focuses on the primary 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 third quarter of Fiscal Year 2006-2007 are discussed in the staff report below.
INVESTMENT ACTIVITY DURING THE QUARTER
During the third quarter six securities totaling $15.676 million matured and a $1 million security was
called for redemption prior to the maturity date. This resulted in a total of $16,676,000 in funds being
available for reinvestment as summarized in the tables below:
T e
FHLB
FHLMC
FHLMC
FFCB
FHLB
FHLB
Total
Maturi
$4,480,000
$500,000
$4,275,000
$421,000
$4,000,000
$2,000,000
$15,676,000
1/2/2007
1/3/2007
1/22/2007
1/23/2007
2/15/2007
2/28/2007
on
3.000%
6.525%
4.750%
4.600%
4.875%
5.000%
INVESTMENTS CALLED DURING THE THIRD
COPIES TO:
ITEM NO.!t. b
Document in quarterly investment report worksheets
Ib.3
6
Staff purchased seven new securities during the period, as noted below:
FNMA $2,000,000 01/29/2009 5.250%
FHLMC $1,000,000 2/23/2009 5.050%
FFCB $2,000,000 11/20/2009 4.850%
FHLB $3,000,000 01/06/2010 5.000%
Current to
maturit *
FHLB $2,000,000 08/06/2010 5.180%
FHLB $3,000,000 09110/2010 5.125%
FFCB $2,000,000 02/01/2011 5.050%
Total $15,000,000
5.25%
4.94%
4.89%
4.77%
N/A
N/A
N/A
N/A
5.18%
5.08%
5.04%
02/06/2009
N/A
N/A
The securities purchased included only one investment which is callable. The call provision on the
security purchased is limited to one-time only in 2009. As shown in the table above the effective yield
may vary from the coupon rate. The difference factors in whether the purchase price included either a
discount or premium paid. The types of securities purchased were selected to add diversity to the City
portfolio. All are AAA rated securities issued by agencies of the Federal government. Staff is working
with PFM Investment Consultants to complete their evaluation of the City portfolio. The project was
delayed due to Stafftumover, however the final report is expected to be presented by June 30, 2007. Staff
will be monitoring cash flow needs with major Capital projects starting the construction phase (Dublin
Blvd / Dougherty Road; Shannon Center Replacement; and other CIP Projects). The City maintains
adequate funds in more liquid investments, which are deemed sufficient to meet cash flow needs.
In the most recent quarter the average maturity for the Federal Security portion of the portfolio is
estimated at 1.8 years. This is an increase from the 1.6 average maturity reported as of December 31,
2006. It is important to note that this relates solely to the portion of the portfolio that has investments
with a stated term. It also assumes that the securities are not called before their stated maturity date.
DETAILED LISTING OF PRIMARY PORTFOLIO
Government and Agency Securities represent 62.55% of the Primary Portfolio. A detailed listing of each
security is provided in Section 1. The City portfolio assumes that the investments will be held to maturity
and there is not an active attempt made to trade existing securities. The City has staggered the maturity
dates within the portfolio and it is not anticipated that these funds will needed for expenditures prior to
maturity.
COMPOSITION OF PORTFOLIO - SOURCE OF FUNDS
To provide an overview of the portfolio, the table below shows the total investment balance by source of
funds, for the third quarter of Fiscal Year 2006-2007 and as compared to one year ago. The distribution
between the types of funds remains relatively consistent with the General Fund representing close to 50%
of the portfolio. The total portfolio has increased from one year ago by approximately $15 million, the
total amount shown as invested in the Primary Investment Portfolio is approximately $3.1 million less
than the amount shown at December 31, 2006.
Page 2 of3
PORTFOLIO COMPOSITION BY SOURCE OF FUNDS & QUARTERLY YIELD
(Third Qtr 2006/07 Compared To Third Qtr 2005/06)
J an - Mar 2007 J an - Mar 2006
3/31/2007 %of 3/31/2006 %of
Balance Total Balance Total
General Fund $56,073,948 48.4% $49,167,329 48.7%
Restricted - Special Revenue $4,445,004 3.8% $3,385,761 3.4%
(i.e. Gas Tax)
Restricted Assessment Dist $612,340 0.5% $599,039 0.6%
Restricted - Impact Fees; $43,384,801 37.4% $37,977,122 37.6%
Housing In Lieu Fees
Internal Service / $11,393,788 9.8% $9,802,263 9.7%
Replacement Funds
Total Invested $115,909,881 $100,931,514
Calculated Quarterly I I I I
Return 4.55% 3.83%
CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT
Overall, the combined rate for the total portfolio increased from 4.46% at December 31,2006 to 4.55% at
March 31, 2007. The general economic climate has supported increasing interest rates. However, rates
for new investments are relatively flat among different maturities. The third quarter increase was
attributable primarily to an increase in the rate of return on the City's investments in LAIF, as well as
increased rates for replacement of maturing investments.
The quarterly average for the City's LAIF investment was 5.18% as of March 31, 2007, which was
slightly higher than the 5.11 % rate recorded for the quarter ending December 31, 2006. One year ago the
LAIF rate was at 4.04%
The schedule of investments, including the dates of maturity, contains adequate cash flow liquidity to
meet anticipated expenditures over the next six months. The investments and the schedule of investments
are in compliance with the City's investment policy and all applicable laws and regulations.
RECOMMENDATION:
Staff recommends that Council receive this report.
Page 3 of3
1~6'
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
3rd QUARTER FY 2006-2007
SECTION I
PRIMARY INVESTMENT
PORTFOLIO
5-1-07 t./.0
A1~rnenr
CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS :<1; 5
INCLUDING RATE OF RETURN
March 31, 2007
COUPON
DATE VALUE AT INTEREST CURRENT BOOK MARKET
INVESTMENT 1ST CALL DATE MATURITY MATURITY RATE YIELD VALUE VALUE
FEDERAL SECURITIES
FHLB 10/27/04 4/27/2007 1 3,000,000 3.150% 3.15% 3,954,320 2,995,320
FNMA 8/11/04 5/11/2007 1 3,000,000 3.250% 3.26% 3,000,000 2,993,430
FHLB 8/18/04 5/18/2007 1 2,000,000 3.000% 3.01% 3,954,320 1,994,380
FHLB 2/11/05 2/11/2008 1 2,500,000 3.420% 3.47% 2,500,000 2,464,850
FHLMC 4/27/05 4/28/2008 2 5,000,000 3.500% 3.56% 5,000,000 4,921,650
FHLB 12/24/03 6/24/2008 2 9,000,000 3.100% 3.17% 9,000,000 8,800,290
FFCB 6/26/2008 2 2,000,000 4.950% 4.95% 410,273 1,998,760
FHLB 9/30/03 6/30/2008 2 1,000,000 3.200% 3.27% 1,000,000 978,750
FHLMC 10/7/04 10/7/2008 2 5,000,000 3.300% 3.38% 5,000,000 4,884,300
FHLB 6/29/04 12/3/2008 2 2,180,000 4.000% 4.06% 2,180,000 2,147,300
FNMA 1/29/2008 1/29/2009 2 2,000,000 5.250% 5.25% 2,000,000 1,998,760
FNMA 4/7/07 4/7/2009 3 5,000,000 3.550% 3.64% 5,000,000 4,871,900
FHLMC 2/23/2009 2 1,000,000 5.050% 5.04% 1,000,000 1,002,920
FHLB 6/15/07 6/15/2009 3 2,000,000 5.375% 5.38% 2,000,000 2,000,000
FHLB 4/19/05 10/19/2009 3 5,000,000 4.250% 4.32% 5,000,000 4,918,750
FHLB 11 /9/07 11/9/2009 3 3,000,000 5.350% 5.36% 3,000,000 2,995,320
FFCB 11/20/2009 3 2,000,000 4.850% 4.85% 2,000,000 1,998,760
FHLMC 1/29/2010 3 3,000,000 5.000% 4.98% 3,000,000 3,014,190
FHLB 2/6/2009 8/6/2010 4 2,000,000 5.180% 5.17% 2,000,000 2,004,380
FHLB 9/1 0/201 0 4 3,000,000 5.125% 5.08% 3,000,000 3,029,070
FFCB 2/1/2011 4 2,000,000 5.050% 5.01% 2,000,000 2,014,380
FNMA 4/26/07 4/26/2011 5 2,000,000 5.670% 5.67% 2,000,000 2,000,620
FHLB 4/26/07 11/9/2011 5 3,000,000 5.250% 5.22% 3,000,000 3,015,000
FARMER MAC 12/14/07 12/14/2011 5 2,000,000 5.400% 5.42% 2,000,000 1,992,280
TOTAL FEDERAL SECURITIES $71,680,000 4.18% $72,998,913 $71,035,360
MUTUAL FUNDS
Union Bank U.S. Govt Securities $98,781 5.29% $98,781 $98,781
Bank of America Columbia Funds Government Reserves $8,712,187 5.10% $8,712,187 $8,712,187
TOTAL MUTUAL FUNDS $8,810,968 5.10% $8,810,968 $8,810,968
POOLED PUBLIC AGENCY INVESTMENTS
State of CA.- Local Agency Investment Fund (LAIF) $34,100,000 5.18% $34,100,000 $34,100,000
TOTAL INVESTED PORTFOLIO $114,590,968 4.55% $115,909,881 $113,946,328
Maturity Schedule Summary of Portfolio (Assuming None of Securites are called prior to Maturity)
Money Market Funds/LAIF (1 day liquidity)
Maturing in 1 year or less
Maturing in 1-2 years
Maturing in 2-3 years
Maturing in 3-4 years
Maturing in 4-5 years
$42,910,968
$10,500,000
$27,180,000
$20,000,000
$7,000,000
$7,000,000
38%
9%
24%
17%
6%
6%
Total Portfolio
$114,590,968
100%
4/19/20074:20 PM
ITEM 1
31J6
CITY OF DUBLIN
SUMMARY OF INVESTMENT PORTFOLIO
COMPARISON BY INVESTMENT TYPE
March 31, 2007
TYPE OF INSTRUMENT
Federal Home Loan Bank (FHLB)
Federal Farm Credit Bureau (FFCB)
Federal National Mortgage Assn (FNMA)
Federal Home Loan Mortgage Corp (FHLMC)
AVERAGE
MARKET %OF MATURITY
VALUE PORTFOLIO YEARS
$37,343,410 32.88% 1.5
6,011,900 5.24% 0.4
11,864,710 10.47% 1.6
13,823,060 12.22% 0.9
1,992,280 1.75% 4.7
71,035,360 (1) 62.55% 2.0
Federal Agricultural Mortgage Corporation
(FARMER MAC)
SUB -TOTAL GOVT/AGENCY
Mutual Funds
Union Bank U.S. Govt Securities
98,781
0.09%
N/A
Bank of America Columbia Government
Reserves Capital Fund
8,712,187
7.60%
N/A
LAIF
34,100,000
29.76%
N/A
GRAND TOTAL
$113,946,328
100.0%
NOTES:
(1) The City intends to hold the investments until maturity or until market values equal or exceed their face value.
4/19/20074:20 PM
ITEM 2
tfoo b
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
3rd QUARTER FY 2006-2007
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 March 31, 2007
/
5~~
In accordance with the California Government Code, the City Treasurer must disclose on a quarterly basis
all monies in its possession. Monies 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, the amount presented relates to the balance reported 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. Therefore, these balances will fluctuate
throughout the year. These funds are not subject to a specified maturity and the par value would be
equivalent to the amount stated.
Miscellaneous Cash
Non-Cate2orized - Cash
Cash Registers/Petty Cash - City
Subtotal
Balance
3/31/2007
$16,400.00
$16,400.00
OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS
Bank Balance General Lede:er
3/31/2007 Balance 3/31/2007
BANK OF AMERICA-
Collateralized Public Money
Deposits In Accordance With $174,970 $ 36,304
California Government Code
NATIONS BANK
U.S. Treasury Reserves Adviser $491,085 $ 491,085
Account (Sweep Account connected
to Bank of America Deposits listed
above)
Citibank-
Regular Savings Account:
FDIC Insured $617 $617
Grand Total Amount
Cash Balances: $666.672 $ 528.006