HomeMy WebLinkAboutItem 4.06 TreasurersInvestRepor CITY CLERK
File # I1 11 01-1 101
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February 3, 2004
SUBJECT: City Treasurer's Investment Report for 2nd Quarter 2003-2004
Report Prepared by Carole A. Perry, Administrative Services
Director and Fred W. Marsh, Finance Manager
ATTACHMENTS: Quarterly Investment Report (December 31, 2003)
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 December 31,
2003, 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 second quarter of Fiscal Year 2003-
2004 are discussed in the staff report below.
INVESTMENT ACTIVITY DURING THE QUARTER
During the second quarter four investments matured or were Called due to the decline in interest rates that
occurred during the quarter, as summarized in the table below:
INVESTMENTS MATURED OR CALLED DURING THE SECOND QUARTER FY 2003-2004
Type Value at Maturity Maturity Date Current Yield Call Date
FNMA $1,000,000 11/14/2003 4.730% N/A
FH LB $5,000,000 9/18/2006 3.240% 12/18/03
FH LMC $3,000,000 9/19/2007 3.970% 12/18/03
FHLB $1,000,000 9/18/2008 4.410% 12/18/03
The City received the full face amount of the investments that were called plus any accrued interest. The
proceeds from these investments, along with other available funds, were used to purchase two new
securities during the period, as summarized in the table below:
INVESTMENTS PURCHASED DURING THE SECOND QUARTER FY 2003-2004
Type Value at Maturity Maturity Date Current Yield Call Date
FNMA $3,520,000 12/29/2006 2.980% 7/2/04
FHLB $2,180,000 12/3/2008 4.010% 6/29/04
FHLB* $,4,480,000t 11012007 3.00%1 61312004I
COPIES TO: ~
Document in quarterly investment report worksheets ITEM NO.
The highlighted $4,480,000 investment listed on Page One is included to provide a more insightful
overview. Since this investment vehicle did not settle until early January, it is not part of the formal
report, as of December 31, 2003; but, it does provide Council with more timely investment data, 'reflecting
the fact that of the $10,000,000 matured/called during the quarter, all has been reinvested for the City.
In the most recent quarter the' average maturity for the Federal Security portion of the portfolio is
estimated at 3.3 years. It is important to note that this relates solely to the portion of the portfolio that has
investments with a stated term. The City maintains adequate fimds in more liquid investments, which are
deemed sufficient to meet cash flow needs.
DETAILED LISTING OF PRIMARY PORTFOLIO
Government and Agency Securities represent 43% 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 December 31, 2003. 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 2% of
the City's total portfolio. During the 20.03-2004 Fiscal Year the City has received to date $29,805 in
dividends from this investment, resulting in an annualized yield of 3.738%. 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 below shows the total investment balance as of
December 31, 2003 by source. Comparison information is also shown for the previous quarter. Note that
approximately 35% of the investment balance represents 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
Current Quarter Prior Quarter
12/31/2003 % of 9/30/2003 % of
Balance Total Balance Total
General Fund $49,429,633 52.5% $49,265,074 52%
Restricted - Special Revenue Funds $3,844,672 4.1% $3,535,553 4%
(I.e. Gas Tax, Special Taxes)
Restricted - Assessment District Funds $680,385 0.7% $382,796
(i.e. Landscape Maint & Debt Service)
Restricted - Impact Fees $32,654,665 34.7% $33,670,375 36%
Internal Service / Replacement Funds $7,533,327 8.0% $7,246,977 8%
TOTAL $94,142,682 . 100.0% $94,100,775 100%
CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT
The total amount shown as invested in the Primary Investment portfolio is $41,907 more than the amount
shown at September 30, 2003. Overall, the combined rate for the total portfolio decreased from 2.472% at
September 30, 2003 to 2.276% at December 31, 2003. The decrease was attributable to the maturing and
calling of several federal securities noted above and decrease in the Local Agency Investment Fund
(LAIF) rate noted below.
The quarterly average for the City's LAIF investmeiat was 1.56% as of December 31, 2003, which was
lower than the 1.64% rate recorded for the quarter ending September 30, 2003. LAIF is a liquid
investment, and the current LAIF rate remains favorable compared to rates offered on investments, which
have less flexibility.
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 inyestments
are in compliance with the City's investment policy and all applicable laws and regulations.
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
2nd QUARTER FY 2003-2004
SECTION 1
PRIMARY INVESTMENT
PORTFOLIO
CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS ~ tS)_,~L0
INCLUDING RATE OF RETURN
December 31, 2003
COUPON BOOK AND
MATURITY VALUE AT INTEREST CURRENT MARKET
INVESTMENT 1ST CALL DATE DATE MATURITY RATE YIELD VALUE
FEDERAL SECURITIES
FHLB 12/15/2004 1 3,000,000 3.875% 3.780% 3,072,180
FHLB 8/26/04 8/26/2005 2 2,000,000 2.325% 2.310% 2,014,660
FHLB 9/30/03 6/30/2006 3 5,000,000 2.250% 2.260% 4,985,950
FNMA 7/2/04 12/29/2006 3 3,520,000 3.000% 2.980% 3,543,091
FHLMC 1/3/2007 4 500,000 6.525% ~.870% 555,470
FFCB 1/23/2007 4 421,000 4.600% 4.360% 443,759
FHLB 2/15/2007 4 4,000,000 4.875% 4.590% 4,248,760
FHLB 3/26/04 3/26/2007 4 5,000,000 3.465% 3.450% 5,025,000
FHLMC 9/10/04 9/10/2007 4 5,000,000 3.650% 3.590% 5,079,250
FHLB 12/24/03 6/24/2008 5 9,000,000 3.100% 3.140% 8,873,460
FHLB 9/30/03 6/30/2008 5 1,000,000 3.200% 3.230% 989,690
FHLB 6/29/04 12/3/2008 5 2,180,000 4.440% 4.010% 2,176,599
TOTAL FEDERAL SECURITIES $40,621,000 3.356% $41,007,869
MUTUAL FUNDS
Nations Bank Government Reserves $6,583,000 0.890% $6,583,000
Capital Fund
Union Bank U.S. Govt Securities $4,896,410 0.560% $4,896,410
Morgan Stanley Dean Witter U.S. Govt Securities See Note 1 3.738% (2) $1,655,479
TOTAL MUTUAL FUNDS 1.114% $13,134,889
POOLED PUBLIC AGENCY INVESTMENTS
State of CA.- Local Agency Investment Fund (LAIF) $39,999,924 1.560% $39,999,924
TOTAL INVESTED PORTFOLIO 2.276% $94,142,682
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 Summary of Portfolio (Assuming None of Securites are called prior to Maturity)
Money Market Funds/LAIF (1 day liquidity) $53,134,813 57%
Maturing in 1 year or less $3,072,180 3%
Maturing in 1-2 years $2,014,660 2%
Maturing in 2-3 years $8,529,041 9%
Maturing in 3-4 years $15,352,239 ' 16%
Maturing in 4-5 years $12,039,749 13%
Total Portfolio $94,142,682 100%
,23,2oo4 :37^M ITEM I
CITY OF DUBLIN
SUMMARY OF INVESTMENT PORTFOLIO
COMPARISON BY INVESTMENT TYPE
December 31, 2003
BOOK AND AVERAGE
MARKET % OF MATURITY
TYPE OF INSTRUMENT VALUE PORTFOLIO YEARS
Federal Home Loan Bank (FHLB) 31,386,299 33.3% 3.3
Federal Farm Credit Bureau (FFCB) 443,759 0.4% 3.1
Federal National Mortgage Assn (FNMA) 3,543,091 3.8% 3.0
Federal Home Loan Mortgage Corporation
(FHLMC) 5,634,720 5.9% 3.6
SUB -TOTAL GOVT/AGENCY 41,007,869 (3) 43.4% 3.3
Mutual Funds
Morgan Stanley Dean Witter U.S. Govt
Securities 1,655,479 (2) 1.7% N/A
Union Bank U.S. Govt Securities 4,896,410 5.2% N/A
Nations Bank Government Reserves
Capital Fund 6,583,000 7.0% N/A
LAIF 39,999,924 42.7% N/A
GRAND TOTAL $94,142,682 100.0%
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 anytime. The weighted average maturity stated in this ch~
by Dean Witter based upon all investment instruments owned by the U.S. Government Securities Mutual Fund.
ITEM 2
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
2nd QUARTER FY 2003-2004
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 December 31, 2003
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 fimds are not subject to a specified maturity and the par value would be
equivalent to the amount stated.
Miscellaneous Cash
Balance
Non-Categorized - Cash 12/31/2003
Cash Registers/Petty Cash - City $700.00
Petty Cash - Shannon Center $200.00
Subtotal $900.00
OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS
Balance 12/31/2003
BANK OF AMERICA-
Collateralized Public Money
Deposits In Accordance With $780
California Government Code
NATIONS BANK
U.S. Treasury Reserves Adviser $4,719,286
Account (Sweep Account
connected to Bank of America
Deposits listed above)
Cai Fed-
Regular Savings Account:
FDIC Insured $3,588
Grand Total Amount
Cash Balances: $4,723,654