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HomeMy WebLinkAboutItem 4.06 Investment1stQtr00-01CITY CLERK FILE # 320-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: (November 8, 2000) SUBJECT: City Treasurer's Investment Report For 1st Quarter 2000/2001 Report Prepared by Carole Perry, Administrative Services Director and Fred Marsh, Finance Manager ATTACHMENTS: Quarterly InVestment Report (September 30, 2000) Section I - Section II - RECOMMENDATION: 4C~Receive Report Primary Investment Portfolio Listing of Supplemental Monies Under City Possession and/or Control DESCRIPTION: The attached Investment Report details the City's investments as of September 30, 2000, 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 first quarter of Fiscal Year 2000/2001 are discussed in the staff report below. INVESTMENT ACTIVITY IN FIRST OUARTER FISCAL YEAR 2000/2001 During the First Quarter two federal securities were purchased, as summarized in the table below: INVESTMENTS PURCHASED FIRST QUARTER FISCAL YEAR 2000/2001 PURCHASE VALUE AT CALL TYPE PRICE MATURITY MATURITY DATE YIELD FEDERAL SECURITIES FHLB $1,985,260 $2,000,000 8/15/2001 N/A 6.66% FHLB $2,000,960 $2,000,000 2/1/2002 N/A 6.71% None of these investments have call options, which means that they will not be redeemed by the issuing party prior to their maturity date. In the most recent quarter the average maturity for the Federal Security portion of the portfolio decreased to 1.7 years. It is important to note that this relates solely to the portion of the portfolio which has investments with a stated tenn. The City maintains adequate funds in more liquid investments, which are deemed sufficient to meet cash flow needs. DETAILED LISTING OF PRIMARY PORTFOLIO Government and Agency Securities represent 49% of the Primary Portfolio. A detailed listing of each security is provided in Item 1. The market value of Federal Securities can fluctuate daily and values have been provided as reported by Union Bank of California as of September 30, 2000. The City portfolio G:XInvestments\Sept 2000~Agenda staff report.doc COPIES TO: ITEM NO. been provided as reported by Union Bank of California as of September 30, 2000. 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 need to be called by the City prior to maturity. The Morgan Stanley Dean Witter US Government Securities Mutual Fund Investment represents 3% of the City's total portfolio. The book value currently reported is based upon the "market value" as of June 30, 2000, as required by the Governmental Accounting Standards Board. During the 2000-2001 Fiscal Year the City received $25,379 in dividends from this investment, resulting in an armualized yield of 6,206%. The market value of this investment fluctuates on a daily basis and as of September 30, 2000 was $16,142 more than the recorded 6/30/2000 book value. Since October 1999, the mutual fund may be redeemed without sales charges. COMPOSITION OF PORTFOLIO - SOURCE OF FUNDS To provide an overview of the portfolio, the table shown on the following page shows the total investment balance as of September 30, 2000 by source. Comparison information is also shown for the previous quarter. Note that 38% of the investment balance represented restricted Impact Fee Funds. It is important to keep in mind that this' type of report is merely a snapshot on a particular day. Revenues as well as expenditures are not processed in equal monthly installments. PORTFOLIO COMPOSITION BY SOURCE OF FUNDS General Fund Restricted - Special Revenue Funds (I.e. Gas Tax, Special Taxes) Restricted - Assessment District Funds (i.e. Landscape Maint & Debt Service) Restricted - Impact Fees Internal Service / Replacement Funds TOTAL Current Quarter Prior Quarter 9/30/00 % of 6/30/00 % of Balance Total Balance Total $29,393i925 53% $28,874,670 62% $1,592,261 3% $2,057,490 4% $278,338 1% $434,596 1% $20,633,844 38% $16,805,415 31% $2,528,440 5% $1,331,541 2% $54,426,808 100% $49,503,712 100% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is $4,923,096 more than the amount shown at June 30, 2000. The additional funds were invested in federal securities during the quarter. The increase primarily reflects the receipt of impact fees and building permit fees from new development. Overall, the combined rate for the total portfolio increased from 6.230% at June 30, 2000 to 6.400% at September 30, 2000. The increase was attributable to an increase in the rate of remm on the City's LAIF investments operated by the State Treasurer, as well as higher remms on the new investments in federal securities placed during the quarter. The quarterly average for the City's LAIF investment was 6.480% as of September 30, 2000, which was higher than the 6.190% rate recorded for the quarter ending June 30, 2000. LAIF is a liquid investment, and 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, contain 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. CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 1 ~t QUARTER FY 2000-2001 SECTION 1 PRIMARY INVE S TMEN T PORTFOLIO CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN AS OF SEPTEMBER 30, 2000 INVESTIVIENT COUPON MATURITY VALUE AT INTEREST BOOK MARKET · DATE MATURITY RATE YIELD VALUE VALUE <4> FEDERAL SECURITIES FNMA (Callable 11/8/99) FHLB (Callable 6/29/99) FI-ILB 'FHLB FHLB (Callable 3/10/2000) FI-ILB FHLB (Callable 11/26/98) FttLB FHLB (Callable 11/26/98) FHLB FrlLMC FHLB FHLMC (Callable 4/13/99) FNMA (Callable 5/19/99) 11/8/00 1,000,000 6.220% 6.220% 998,440 999,220 11/24/00 1,000,000 5.890% 6.010% 998,910 998,910 12/29/00 1,000,000 5.100% 5.100% 991,880 996,250 8/15/01 2,000,000 5.875% 6.660% 1,985,260 1,987,820 9/17/01 3,000,000 5.875% 6.860% 2,964,840 2,980,320 10/3/01 1,000,000 6.575% . 6.099% 994,690 1,000,000 12/10/01 2,000,000 5.730% 5.730% 1,967,180 1,973,440 2/1/02 2,000,000 6.750% 6.711% 2,000,960 2,004,680 3/12/02 1,000,000 5.410% 5.750% 975,780 981,250 5/1/02 2,000,000 6.750% 6.920% 1,992,820 2,006,240 6/28/02 1,000,000 5.435% 5.435% 972,500 981,880 8/15/02 2,000,000 6.000% 6.200% 1,960,940 1,981,240 11/6/02 1,000,000 5.940% 6.780% 978,750 989,380 2/14/03 1,000,000 7.000% 7.010% 998,440 1,009,060 4/16/03 1,000,000 5.700% 5.700% 966,250 978,440 9/2/03 1,000,000 5.627% 6.910% 960,940 976,560 11/14/03 1,000,000 4.750% 6.920% 932,190 949,690 1/13/04 1,000,000 6.000% 6.000% 963,440 970,780 2/19/04 1,000,000 6.000% 6.000% 955,470 966,560 4/5/04 1,000,000 6.010% 6.010% 958,750' 970,000 $27,000,000 6.'333% $26,5 t 8,430 $26,701,720 TOTAL FEDERAL SECURITIES CERTIFICATES OF DEPOSIT - FDIC INSURED First Republic Trust &Loan 3/7/0 1 Sanwa Bank 12/9/02 TOTAL CERTIFICATES OF DEPOSIT 95,000 6.600% 6.600% 95,000 95,000 99,000 6.000% 6.000% 99,000 99,000 $194,000 6.294% $194,000 . $194,000 MUTUAL FUNDS Nations Bank Government Reserves Capital Fund Morgan Stanley Dean Witter U.S. Govt Securities 5,000.00 6.260% 0) $5,000 $5,000 See Note 1 6.206% (2) $1,551,451 $1,567,593 POOLED PUBLIC AGENCY INVESTMENTS State of CA.- Local Agency Investment Fund (LA/F) $26,157,927 6.480% 0) $26,157,927 $26,157,927 TOTAL INVESTED PORTFOLIO 6.400% $54,426,808 $54,626,240 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. The book value reflects the market value on June 30, 2000, as required by cun~t governmental accounting roles. (2) Interest Rate shown is based on dividends received this fiscal year to date, which are annualized and then divided by the original investment. (3) Interest Rate shown is the monthly average as of September 30, 2000. (4) Market Value shown for the Federal Securities is as of September 30, 2000. (5) Interest Rate shown is the quarterly average as of September 30, 2000. ITEM 1 CITY OF DUBLIN- SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE AS OF SEPTEMBER 30, 2000 TYPE OF INSTRUMENT Federal Home Loan Bank (FHLB) Federal Home Loan Mortgage Corp (FHLMC) Federal National Mortgage Assn (FNMA) SUB -TOTAL GOVT/AGENCY MARKET FACE VALUE BOOK VALUE VALUE 20,000,000 19,744,980 19,868,120 2,000,000 1,929,690 1,949,220 5,000,000 4,843,760 4,884,380 27,000,000 26,518,430 26,701,720 % OF MATURITY PORTFOLIO YEARS 36.4% 1.5 3.6% 1.6 9.1% 2.1 49.1% 1.7 Certificates of Deposit - FDIC Insured Mutual Funds - Morgan Stanley Dean Witter U.S. Govt Securities Nations Bank Government Reserves Capital Fund 194,000 194,000 194,000 0.4% 0.8 1,635,750 1,551,451 1,567,593 2.8% 5.0 <~ 5,000 5,000 5,000 0.0 % N/A LAIF 26,157,927 26,157,927 26,157,927 47.7% N/A GRAND TOTAL $54,992,677 $54,426,808 $54,626,240 100.0% NOTES: ( 1 ) The City intends to hold the investments until maturity or until market values equal or exceed their face value. Market Value shown is as of September 30, 2000. (2) Market value is based upon the shares invested at share price as of September 30, 2000. Book Value is shown as the value recorded in the General Ledger based on the market value at 6/30/2000. ( 3 ) As a mutual Fund shares can typically be liquidated at any time. The weighted average maturity stated in this chart was calculated by Dean Witter based upon all investment instruments owned by the U.S. Government Secttrifles Mutual Fund as of June 30, 1998. This figure represents the duration factor for the Fund and it was reduced from the figure reported for 1997. ITEM 2 CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 1 ~t QUARTER FY 2000-2001 SECTION 11 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 September 30, 2000 In accordance with the Califomia 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 fimds are not subject to a specified maturity and the par value would be equivalent to the amount stated. Miscellaneous Cash Non-Catel~orized - Cash Petty Cash - City Petty Cash - Shannon Center. Cash Register - (5 Locations) Subtotal Balance 09/30/2000 $200.00 $200.00 $650.00 $1,050.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With California Government Code Balance 09/30/2000 $325,456 Annualized Rate of Interest See Note 1 Cal Fed- Regular Savings Account: FDIC Insured $ 549 2.00% Grand Total Amount Cash Balances: $326,005 Note 1: The City operating account is a corporate checking account, which includes monthly interest earnings which are at a variable rate. The interest earnings are credited against account charges and fees required to maintain the accounts. All interest earnings in excess of account charges are paid to the City on a monthly basis. SPECIAL FUNDS HELD BY TRUSTEES CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN FOR THE QUARTER ENDING SEPTEMBER 30, 2000 MUTUAL FUNDS Dublin B!vd Assessment District First American Govt Obligation Fund COUPON MATURITY VALUE AT INTEREST DATE MATURITY RATE YIELD See Note 1 6. 10% BOOK VALUE $160,313.03 MARKET VALUE $160,313.03 NOTES: ( 1 ) A Mutual Fund does not have a stated maturity date and shares can be sold at any time.