HomeMy WebLinkAboutItem 4.10 Investment Report 4th Qtr
CITY CLERK
File # D[3][2][llH3J~
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: August 1,2006
SUBJRCT
City Treasurer's Investment Report for 4th Quarter 2005-2006
Report Prepared by Paul S. Rankin, Administrative Services
Director and Fred Marsh, Finance ManaXer
'J,yfY
RECOMMENDATlO~ l ReceIve Report
DESCRIPTION
The attached Investment Report details the City's investments as of June 30, 2006, in accordance with the
Local Agency Investment Guidelines established by the State Treasurer Section I of the Report t'leuses
on the primary investment portfolio SecllOn II details funds held by Trustees and mIscellaneous
operating accounts. The ((lCUS of thc discussion in this report will he upon activity in the Primary
Investment Portfolio. Changes in the investment porll(lho and investment activity for the fourth quarter of
Fiscal 'year 2005-2006 are discussed 111 the stalT report below
Quarterly Investment Report (June 30, 2006)
Section I - Primary Investment Portfolio
Section II - Listing of Supplemental Monies Under City
Possession and/or Control
ATTACHMENTS.
INVRSTMRNT ACTIVITY DURING TIlE OUARTER
During the fourth quarter, Stair purchased two new securities during the penod, as noted below'
INVESTMENTS PURCHASED DURING THE FOURTH QUARTER
Value at Maturity Current
T e Maturit Date Yield Call Date
FHLR $3,000,000 912S!2007 5 430% 12/28/06
FHLR $3,000,000 l2I22/2U08 5.6300/0 9!22/06
In the most recent quarter the average matunty Itlr the Federal Security portion of the porttolio is
estimated at I 4 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 eash flow needs.
DETAILED LISTING OF PRIMARY PORTFOLIO
Govemment and Agency Securities represent 75% of the Primary Portfolio. ^ detailed listing of ea~h
security is provided in Section I. The City portfolio assumes that the investments will be held to maturity
~.~~-~-----------------------------------------------------~----~--------------------------------~.__.-------
COPIES TO:
ITEM NO. !t.1 D
Document In quarterly Investment report wor"shf.~ts_XI,s
and there is not an active attempt made to trade eXlSl1ng seeurities. The City has staggered the maturity
dates within the portfoho and It IS not anhclpated that these funds will need to be called by the City prior
to maturity
The Morgan Stanley Dean Witter US Government Seeurities Mutual Fund Investment represents 1 % of
the City's total portfolio Dunng the full Fis~al Year 2005-2006, the City has receIved to date $64,603 in
dividends from th,S mvestment, resulting in an annualized yield of 4 052%. Since October 1999, the
mutual fund may he redeemed without sales charges.
COMPOSITION OF PORTFOLIO - SOURCE OF FUNDS
To provide an overview of the portfolio, the tahIe hcIow shows the total investment halanee hy source of
funds, for each quarter of Fiscal Year 2005-2006. The trend throughout the Fiscal Year has heen that the
source of funds has remamed relatively stahle. The General Fund represents approximately on half of the
portfolio.
2005/2006 QUARTERU: PORTF'OLIO COMPOSITION BY SOURCE OF FUNDS
Oct - Dec 2005 Jail - Mar 2006 A r - JUlie 2006
I l.IJII:LOlJ3 I %tot II jjjl/.lOO6 I "/oot I
Balance Total Balance Total Halance
General Fund $49,283,906 $53,044,S03 51 JI'/n $49,1l;7,329 48.7% $57,466,876 52.311/0
Restricted ~ Special $3,143,443 3. j "/0 $3,1195 774 3.{)ll/n $3,385,761 3.4% $.),591,615 3.3%
Revenue (i.e. Gas Tax)
Restricted Assessment $536,810 0.5% $342,128 O.JlI/" $5~~,O39 0.6% 5776,918 0.7%
Dist
ReSlrleted - Impael
Fees; IInusing In Lieu 540,637,447 39.5% $37,7%,523 3(,.4% $37,~77,122 37.6% 537,~44,7X2 34.()%
Fees
Internal Service I $~,159,293 8.9% S'J,44R,5.\.1 1)10/0 $9,802,263 97% 510,020,145 910/0
Rel)lacement 11"unds
Tolal'"vested $1 U2, 7"O,8~9 $103,727,781 $IOO,~31,514 5109,800,336
Caleolated Ijuarterly I 3.36% II 3.6911/0 II 3.83% II 4.06O/n
I(eturn
Sinee the beginning of the year the City has also experieneed a steady increase 111 the rate ofreturn, which
results m an 11lCrease m mterest revenue.
CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT
The total amount shown as invested in the Primary Investment Portfolio is approximately $8.9 million
more than the amount shown at Mar~h 31, 2006. OVL-rall, the combined rate for the lotal port/olio
mereased from 3.83% at March 31, 2006 to 406% at JUlle 30, 2006 As shown above, the general
economic elimate has supported increasing Illterest rates. The 4th quarter increase was attrihutahIe
primarily to an Illcrease III the rate of return on the City's investments III LATF, the Union Bank US
Government Seeunties Money Market aeeount, Morgan Stanley Dean Witter U.S. Government Securities,
and the Bank of Ameriea Columbia Funds Govennnent Reserves Money Market Aeeount.
The quarterly average for the City's LATF mvestment was 4.53'}.. as of June 30, 2006, whIch was higher
than the 4 04% rate recorded for th~ quarter ending March 31, 200G
The sehedulc of investments, ineluding the dates of matunty, eontams adequate eash flow liqUidity to
meet anticipated expenditures over the next SIX months. The investments and the schedule ofmvestments
are 111 compllan~e with the City's investment policy and all applicahIe laws and regulations.
MARKRT VALUE VS. BOOK VALUE
The market value of Federal Seelmties ean fluctuate daily and values have been reported as of .Tunc 30,
2001i As previously mentioned the City's current practice is to hold all securities until maturity
Governmental Aeeounting mles also requIre the City to hook an adjustment at year end in the fina]l~laI
records reflecting the market value ofthe secunl1es. Tfthe market value exceeds the book value a positive
adjustment IS made to the mterest revenue line item. In the eurrent situation the market value is less than
hook value, whl~h will result in a negative adjustment to interest revenue.
In prepanng hudget projections Staff antieipated a negative adjustment for Fis~al Year 2005-2006 The
f~) Ilowing is a preliminary breakdown of the expected ad) ustmenl.
Description
l'ederal Securities
Murgan Stanley
LAIF
Total
Value qi)
Maturitv
$83,R76,OOO
Not Applic.hle
Not Applic.ble
Book Value
$83,163,S63
$1,659,101
$6,519,725
$91,342,689
Market
Value
$82,051,3U7
$\ ,585 ,404
$6,512,2S 1
$90,148,992
Amount of
Adjustment
(ii, 06/30/2006
($1,112,556)
($73,697)
($7,444)
($1,193,697)
As prevIOusly menl1~med, the City is required to record these adjustments even though it is expeeted that
the securities will be held until their matUl1ties. The Morgan Stanley investment values change based
upon daily share prices, and Staff will he evaluatmg alternative investments for these funds.
RECOMMRNDA nON
Staff recommends that Council receive thiS report.
((' Ff
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
4th QUARTER FY 2005-2006
SECTION I
PRIMARY INVESTMENT
PORTFOLIO
if 10 'Cll/or;.,
:< 01 ;,
CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS
INCLUDING RATE OF RETlIRN
June 30, 2006
COUPON
MATlIRITY Vt\I.IJE AT INTRRRST CURRRNT MARKET
INVESTMRNT lSTCALL DATR DATR MATURITY RATE YIELD VALli!;
FEDERAL SEClIRlTlES
rHL]) 4/20/05 9/15/2006 I 5.000,000 3.625% 3.(AO% 4,981 J')f)
FHUJ 1{)/lW{)5 lII/19/20{)o I ~,OUO,O\)II J.27o''1j(J 3.290'% 2,9gl,250
I'HLIJ 4/20/05 IU!2n/200h 1 ,'),OlHJ,OOO 3.o0n%, J.02o(lj(J 4,964,050
mLIl 6/14/05 12/14/2006 I 3.000,000 3.350% 3J8n% 2,97{),nO
FNMA 7/2/04 12l2W20{)o 1 3,52{),00{) J.OOOL1jfl 3.040% 3477,091
I'HLIJ 6/3/04 iI2/2()07 1 4,480,{){){) 3.()OlJlJ/(J 3.04o(l/fI 4,424.000
FHLMC 113/2007 1 j{)O,OO{) (\..':;25'-'/\.1 ftAf)lJlJ/o 502,345
FHLMC 3/2g106 \l22/Z007 1 4,27,,00{) 4.750'-'/\,1 4.77olJj(J 4,255.121
FFCIl \123/2007 1 421,000 4.()on% 4.n2HQj(l 418,764
fllLIl 2115/2007 I 4.000,000 4.875% 4,gyCl% 3,983,76"
PHL]) 2/28/2007 I 2,OtX),000 4.875% 5.020% 1,991,gW
FH!.H !()!27104 4J2;/2o(}7 I \OOO,OOU 3. I 50''1jn 3.210'1;11 2,942,gZO
FNMA g/] I104 5/11120{)7 1 3,0110,000 3.25(t/(J 3.3]0% 2,94Z,g20
fHLIJ gml04 5/1S/20{)7 1 2,OflO,OOIl 3.0(}{JOjll 3.070'%. 1,956.880
FHLB 12/28/06 9/28/2007 2 3,Of)(),OOO "42/1% 5.4301.1/0 2,993,430
fllLIl 2/11/05 2/11/2008 2 2.500,000 3.420% 3.530% 2,421,1()[)
fHLMC 4/27105 4/28/2008 2 5,0{)0.000 3.500% 3.620% 4,g3n,4jn
FHLFl 12/24103 h/2412nnR 2 9,OUO,OOU 3.100% 3.240% M03,460
FHLH W3nlO3 b/3(i/20{)8 3 I,OtXJ,OOU 3.200% 3.340% 957"no
FflLMC' In!7/()4 In/7/2n{)8 3 '),OIICJ,OOU 1.3001)/... 3.460% 4,773,2no
fHLIJ 6/29104 12/3/20ng 3 2,180,nnn 4.0ll(J'-';o 4.130% 2, I 09,826
FIILll 9/22/06 12/22/2008 3 3,000.oon 5,610% 5.630'%.. 2,989,080
fNMA 717104 41712009 3 5,000.000 3.550% 3.730% 4,754,400
fHL]) 4/IW05 10!19/2u(Jt1 4 5,O(JO,OUO 4.250% 4.410% 4,g20,3no
TOT~L FF,DERAL SEClJRITlRS $83,870,000 3.793% $82,051,307
MUTUAL FlINDS
Union Bank U.,s. (jovt Securities 9,643,713 5.]60% $9,643,713
Bank of .\mt.-nca Columbia Funds Government Reserves 1(),J)()0,187 4.950% $1 ll,Ol)[),l'/!.7
Morgan Stanlcv Dcan Vv itter U.S. (jovt Securities .see Notc 1 4.052'Y... m $1.5R5.404
TUTAL MlITlJAL HINDS 4.978% $21,229,304
PUULEn Pl;BLlC AGE1'iC' INVESTMENTS
Stale nfCA.- r .neat <\gcn~y Invcstmcnt FUTld (I.AIF) $0,5[1),725 4.530% $6,519,725
TOT ~L INVESTED PORTFOLIO 4.061% $109,800,336
NUTES,
f I) ^ MlltLlal Fllnd inveshnerl.t dues not have a stated date ur maturity and shares may be sold at any time. The share price at the timc of a
sale may hc either higher or lower than the original cost,
(2) Interest Rale shuwn is ba.'ied on tlivitlemls received this fiscal year tu date, which are annualized and thcn divided by the original
iTlve~tmt.:nt.
l\1~tlJrity Si;I1E!dull;! Summary of Pnrtfolio (AS5\lmiog None OrSl;!i;urite!S ;Jrl! called prinr tn Maturity)
Muney Market Funds/LAIF {I Jay liquidity)
Maturiug" ill I yeilr or less
Maluring in 1-2 yeilTS
Maluring: iTl 2-3 years
Man1r1ng in ,-4 years
Manuing in 4.5 years
$27 749.029
$42,792.961
$1 R,84R,440
$15,5R9,606
$4,8211,3011
$0
26%
39%
17%
14C1/11
4%
f.l'%
Total Portfolio
$]()9,~00,33&
100%
7/171200B 9:50 AM
ITEM 1
30-1 b
CITY OF DUBLIN
SUMMARY OF INVESTMENT PORTFOLIO
COMPARISON BY INVESTMENT TYPE
June 30, 2006
TYPE OF INSTRUMENT
BOOK AND AVERAGE
MARKET %OF MATURITY
VALUE PORTFOLIO YEARS
56,092,116 51.2% 1.3
418,764 04% 0.6
11,179,311 1O.3'Y. 1.6
14,361,116 13.20;'. 1.6
82,051,307 (1) 75.1% 1.4
Federal Home Loan Bank (FHLB)
Federal Farm Credit Bureau (FFCBl
Federal National Mortgage Assn (FNM^)
Federal Home Loan Mortgage Corporation
(FHLMC)
SUB -TOTAL GOVT/AGENCY
Mutual 'Funds
Morgan Stanley Dean Witter U.S. Govt
Securities
O OJ
1,585,4 4
1.4%
N/A
Union Bank U.S. Govt Securities
9,643,713
8.6'Y.
N/A
Bank of America Columbia Government
Reserves Capital Fund
10,000,187
9.0%.
N/A
LAIF
6,519,725
5.9%.
N/A
GRAND TOTAL
$109,800,336
100.0%
NOTES:
( I ) "n'e City intends to hold the investments until maturity or until market values equal or ex~eed theIr faee value.
(2) As a mutuall'und shares can typically be liquidated at any time, TIle weighted average maturity stated in this
~hart was ~alculated by Dean Witter based upon all investment instruments owned by the U.S. Government
Securities Mutual Fund.
7/17120069;29 AM
ITEM 2
Lf of j.,
CITY OF DUBLIN
QUARTERLY INVESTMENT REPORT
4th QUARTER FY 2005-2006
SECTION II
LISTING OF SUPPLEMENTAL
MONIES UNDER CITY
POSSESSION AND/OR
CONTROL
. OPERATING FUNDS
. SPECIAL FUNDS HELD BY TRUSTEES
City of Duhlin Report of
Operating Funds On Hand
As of June 30, 2006
50+-&
In accordance with the California Government Code, the City Treasurer must dls~lose on a quarterly basis
all monies in its possession. Monies considered lllvested, and n(lt immediately nceessary for current
operations, are presented III a separate Iistlllg as part ofthe quarterly report.
In the case of Operating Funds in bank aeeounts, the amount presented relates to the balance 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. Therefore, these balances will fluctuate
throughout the year. These funds are not subject to a speeified matunty and the par value would be
equivalent to the amount stated.
Miscellaneous Cash
Non-Categorized - Cash
Cash RegisternlPetty Cash - City
Subtotal
Balance
6/30/2006
$1,325.00
$1,325.00
OPRRA TING CASH BALANCES - FINANCIAL INSTITUTIONS
Bank Balance
6/3012006
General Lede:er
Balance 6/30/2006
BANK OF AMRRICA-
Collateralized Public Money
Dep(lslts In Accordance With
California Govemment Code
$53,871
$169,637
NATIONS BANK
U.S Treasmy Reserves AdVIser
A~eount (Swecp Account
connected to Bank of America
DepOSits listed above)
$870,658
$870,658
Citibank-
Regular Savings Aecount:
FDIC Insured
$2,113
$2,113
Grand Total Amount
Cash Balances;
$926,()42
$1.1142407
SPECIAL FUNDS HELD BY TRUSTEES
CITY OF DUBLIN DETAILKD LISTING OF INVESTMENTS
INCLUDING RATE OF RETURN
For the Quarter Ending June 30, 2006
MATURITY
DATE YIELD
MUTUAL FUNDS
DubUn Btvd Assessment District
FiTst American Govt
Ohligation Fuud See Note I
4.56%
NOTES:
BOOK
VALUE
$181,893
(I) A Mumal Fund does not have a stated maturity date and ,hares can be sold at any time.
MARKET
VALUE
$IRI,R93
&cr: ~