HomeMy WebLinkAboutItem 4.07 InvestRpt1stQtr04-05
CITY CLERK
File # 113l~[?2]-[3[Q
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: October 19,2004
SUBJECT:
City Treasurer's Investment Report for I st Quarter 2004-2005
Report Prepared by Fred W Marsh, Finance Manager and
Lisa Hisatomi, Administrative Analyst II
ATTACHMENTS:
Quarterly Investment Report (September 30, 2004)
Section I - Primary Investment Portfolio
Section II - Listing of Supplemental Monies Under City
Possession and/or Control
RECOMMENDATlON:~ Receive Report
DESCRIPTION: The attached Investment Report details the City's investments as of September 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 first quarter of Fiscal Year 2004-2005
are discussed in the staff report below.
INVESTMENT ACTIVITY DURING THE QUARTER
During the first quarter three investments were called due to the decline in interest rates that occurred
during the quarter, as summarized in the table below:
INVESTMENTS CALLED DURING THE FIRST QUARTER FISCAL YEAR 2004-2005
Value at Maturity Current
Type Maturity Date Yield
FHLB $2,000,000 8/26/2005 2.330%
FHLB $5,000,000 8/25/2006 3.060%
FHLMC $5,000,000 9/10/2007 3.650%
The City received the full face amount of the investments that were called plus any accrued interest. The
proceeds from these investments were temporarily placed in the Union Bank Government Securities
money market account and the State Local Agency Investment Fund (LAIF), and will be invested in U.S.
Government Securities during the month of October 2004.
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 term. The City maintains adequate funds in more liquid investments, which are
deemed sufficient to meet cash flow needs.
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COPIES TO:
Document in quarterly investment report worksheets.XLS
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DETAILED LISTING OF PRIMARY PORTFOLIO
Government and Agency Securities represent 56% 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 September 30, 2004. 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 2004-2005 Fiscal Year the City has received to date $16,801 in
dividends from this investment, resulting in an annualized yield of 4.215%. 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
September 30, 2004 by source. Comparison information is also shown for the previous quarter. Note that
approximately 32% 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
General Fund
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
Current Quarter
6/30/2004 % of
Balance Total
$50,537,867 49.9%
$4,006,390 4.0%
Prior Quarter
6/30/2004 % of
Balance Total
$55,137,136 55.4%
$4,096,428 4.1 %
$358,870
0.4%
$680,803
0.7%
$38,142,269
$7,958,413
$101,003,809
37.8%
$32,012,463
$8,146,352
$100,073,182
31.7%
7.9%
100.0%
8.1%
100.0%
CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT
The total amount shown as invested in the Primary Investment Portfolio is $930,627 more than the
amount shown at June 30, 2004. Overall, the combined rate for the total portfolio decreased from 2.826%
at June 30, 2004 to 2.706% at September 30, 2004. The decrease was attributable to the call of the federal
securities noted above.
The quarterly average for the City's LAIF investment was 1.68% as of September 30, 2004, which was
higher than the 1.44% rate recorded for the quarter ending June 30, 2004.
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. It should be
noted that before Council tonight, in a separate report, is also the adoption of Annual Investment Policy
for the City.
RECOMMENDATION: Staff recommends that Council receive this report.
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CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
1st QUARTER FY 2004-2005
SECTION I
PRIMARY INVESTMENT
PORTFOLIO
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CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS
INCLUDING RATE OF RETURN
September 30, 2004
COUPON
MATURITY VALUE AT INTEREST CURRENT
INVESTMENT 1ST CALL DATE DATE MATURITY RATE YIELD
FEDERAL SECURITIES
FHLB 12/15/2004 1 3,000,000 3.875% 3.860%
FNMA 7/2/04 12/29/2006 3 3,520,000 3.000% 3.000%
FHLB 6/3/04 1/2/2007 3 4,480,000 3.000% 3.000%
FHLMC 1/3/2007 3 500,000 6.525% 6.050%
FFCB 1/23/2007 3 421,000 4.600% 4.440%
FHLB 2/15/2007 3 4,000,000 4.875% 4.680%
FHLB 10/27/04 4/27/2007 3 3,000,000 3.150% 3.150%
FNMA 8/11/04 5/11/2007 3 3,000,000 3.250% 3.250%
FHLB 8/18/04 5/18/2007 3 2,000,000 3.000% 3.010%
FHLB 2/11/05 2/1112008 4 2,500,000 3.420% 3.420%
FHLMC 4/27/05 4/28/2008 4 5,000,000 3.500% 3.490%
FHLB 12/24/03 6/24/2008 4 9,000,000 3.100% 3.140%
FHLB 9/30/03 6/30/2008 4 1,000,000 3.200% 3.230%
FHLMC 10/7/04 10/7/2008 5 5,000,000 3.300% 3.330%
FHLB 8/13/04 11/13/2008 5 2,500,000 4.070% 4.060%
FHLB 6/29/04 12/3/2008 5 2,180,000 4.000% 4.000%
FNMA 7/7/04 4/7/2009 5 5,000,000 3.550% 3.580%
TOTAL FEDERAL SECURITIES $56,101,000 3.482%
MUTUAL FUNDS
Nations Bank Government Reserves
Capital Fund
Union Bank U.S. Govt Securities
Morgan Stanley Dean Witter U.S. Govt Securities
$1,171,187
1.349%
1.130%
4.215% (2)
2.194%
1.680%
2.706%
$2,099,301
See Note 1
TOTAL MUTUAL FUNDS
POOLED PUBLIC AGENCY INVESTMENTS
State ofCA.- Local Agency Investment Fund (LAIF)
$39,951,661
TOTAL INVESTED PORTFOLIO
NOTES:
~~
BOOK AND
MARKET
VALUE
3,012,180
3,523,309
4,480,000
539,065
436,000
4,163,760
2,999,070
3,002,820
1,995,620
2,503,125
5,013,700
8,890,290
990,940
4,956,150
2,505,475
2,179,324
4,964,050
$56,154,878
$1,171,187
$2,099,301
$1,626,782
$4,897,270
$39,951,661
$101,003,809
(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)
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
45%
3%
0%
21%
17%
14%
$44,848,931
$3,012,180
$0
$21,139,644
$17,398,055
$14,604,999
Total Portfolio
$101,003,809
100%
10/6/2004 11 :44 AM
ITEM 1
3~LP
CITY OF DUBLIN
SUMMARY OF INVESTMENT PORTFOLIO
COMPARISON BY INVESTMENT TYPE
September 30, 2004
TYPE OF INSTRUMENT
BOOK AND AVERAGE
MARKET %OF MATURITY
VALUE PORTFOLIO YEARS
33,719,784 33.4% 2.9
436,000 0.4% 2.3
11,490,179 11.4% 3.3
10,508,915 10.4% 3.7
56,154,878 (1) 55.6% 3.2
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
Mutual Funds
Morgan Stanley Dean Witter U.S. Govt
Securities
1,626,782 (2)
1.6%
N/A
Union Bank U.S. Govt Securities
2,099,301
2.1%
N/A
Nations Bank Government Reserves
Capital Fund
LAIF
1,171,187 1.2% N/A
39,951,661 39.5% N/A
$101,003,809 100.0%
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 chI
by Dean Witter based upon all investment instruments owned by the U.S. Government Securities Mutual Fund.
10/6/2004 11 :39 AM
ITEM 2
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CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
1st QUARTER FY 2004-2005
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 September 30, 2004
5r1rP
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-Catee:orized - Cash
Cash Registers/Petty Cash - City
Petty Cash - Shannon Center
Subtotal
Balance
09/30/2004
$1,100.00
$200.00
$1,300.00
OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS
Balance 09/30/2004
BANK OF AMERICA-
Collateralized Public Money
Deposits In Accordance With
California Government Code
$95,865
NATIONS BANK
U.S. Treasury Reserves Adviser
Account (Sweep Account
connected to Bank of America
Deposits listed above)
$465,056
Cal Fed-
Regular Savings Account:
FDIC Insured
$2,097
Grand Total Amount
Cash Balances:
$563.018
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