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HomeMy WebLinkAboutItem 4.11 InvestReport2ndQtrCITY CLERK FILE # 320-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: (January 16, 2001) SUBJECT: · City Treasurer's Investment Report For 2nd Quarter 2000/2001 Report Prepared by Carde Perry, Administrative Services Director and Fred Marsh, Finance Manager ATTACHMENTS: RECOMMENDATION: Quarterly Investment Report (December 31, 2000) Section I - Section II - /~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 December 31, 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 second quarter of Fiscal Year 2000/2001 are discussed in the staff report below. INVESTMENT ACTIVITY IN SECOND QUARTER FISCAL YEAR 2000/2001 During the Second Quarter three securities matured, as summarized in the table below: INVESTMENTS PURCHASED SECOND QUARTER FISCAL YEAR 2000/2001 CALL TYPE AMOUNT FEDERAL SECURITIES FNMA $1,000,000 FNMA $1,000,000 FHLB $1,000,000 MATURITY DATE YIELD 11/8/00 N/A 6.220% 11/24/00 N/A 6.010% 12/29/00 N/A 5.100% The proceeds from these investments, along with other available funds, were used to purchase five new securities during the period, as summarized in the table on the following page: G:\lnvestments~Dec 2000XAgenda staff report.doe COPIES TO: ITEM NO. INVESTMENTS PURCHASED SECOND QUARTER FISCAL YEAR 2000/2001 1ST PURCHASE VALUE AT CALL TYPE PRICE MATURITY MATURITY DATE ,YIELD FEDERAL SECURITIES FHLB $2,000,000 $2,000,000 12/27/02 6/27/01 6.120% FNMA $2,000,000 $2,000,000 12/18/03 6/18/01 6,620% FHLB $1,000,000 $1,000,000 6/29/04 3/29/01 6.750% FHLB $2,000,000 ' $2,000,000 12/27/05 6/27/02 6.525% FHLB $1,000,000 $1,000,000 12/29/05 3/29/01 7.000% All of these investments have call options, which means that they could be redeemed by the issuing party prior to their maturity date. If the security is called prior to the stated maturity date, the City receives the full face amount plus any accrued interest. In the most recent quarter the average maturity for the Federal Security portion of the portfolio increased to 2.1 years, due to the purchase of the callable securities noted above. It is important to note that this relates solely to the portion of the portfolio which has investments with a stated term. 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 Secttrifles 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 Califomia as of December 31, 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 2% 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 to date $50,753 in dividends from this investment, resulting in an annualized yield of 6.205%. The market value of this investment fluctuates on a daily basis and as of December 31, 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 December 31, 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 12/31/00 % of 9/30/00 % of Balance Total Balance Total $34,745,365 54% $29,393,925 53% $2,219,529 3% $1,592,261 3% $509,120 1% $278,338 1% $24,533,165 38% $20,633,844 38% $2,612,980 4% $2,528,440 5% $64,620,159 100% $54,426,808 100% CHANGES IN THE TOTAL PORTFOLIO YIELD FROM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is $10,193,351 more than the amount shown at September 30, 2000. The additional funds were invested in federal securities during the quarter. The increase primarily reflects the receipt of impact fees, property taxes and building permit fees from new development. Overall, the combined rate for the total portfolio increased from 6.400% at September 30, 2000 to 6,458% at December 31, 2000. The increase was attributable to an increase in the rate of return 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 6,530% as of December 31, 2000, which was higher than the 6.480% rate recorded for the quarter ending September 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 2nd 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 DECEMBER 31, 2000 INVESTMENT 1 ST CALL DATE COUPON MATURITY VALUE AT INTEREST DATE MATURITY RATE YIELD BOOK VALUE MARKET VALUE ¢'~> FEDERAL SECURITIES FHLB 8/15/01 FHLB 9/17/01 FHLB 10/3/01 FHLB 3/10/00 12/10/01 FHLB 2/1/02 FHLB 11/26/98 3/12/02 FHLB 5/1/02 FHLB 11/26/98 6/28/02 FHLB 8/15/02 FHLB 11/6/02 FHLB 6/27/01 12/27/02 FHLB 2/14/03 FHLMC 4/16/03 FHLB 9/2/03 FNMA 11/14/03 FNMA 6/18/01 12/18/03 FHLMC 4/13/99 1/13/04 FNMA 5/19/99 2/19/04 F'NMA . 4/5/04 FHLB 3/29/01 6/29/04 FHLB 6/27/02 12/27/05 FHLB 3/29/01 12/29/05 TOTAL FEDERAL SECURITIES 2,000,000 5.875% 6.660% 3,000,000 5.875% 6.860% 1,000,000 6.575% 6.099% 2,000,000 5.730% 5.730% 2,000,000 6.750% 6.711% 1,000,000 5.410% 5.750% 2,000,000 6.750% 6.920% 1,000,000 5.435% 5.435% 2,000,000 6.000% 6.200% 1,000,000 5.940% 6.780% 2,000,000 6.120% 6.120% 1,000,000 7.000% 7.010% 1,000,000 5.700% 5.700% 1,000,000 5.627% 6.910% 1,000,000 4.750% 6.920% 2;000,000 6.620% 6.620% 1,000,000 6.000% 6.000% 1,000,000 6.000% 6.000% 1,000,000 6.010% 6.010% 1,000,000 6.750% 6.750% 2,000,000 6.525% 6.525% 1,000,000 7.000% 7.000% $32,000,000 6.435% 1,985,260 2,964,840 994,690 1,967,180 2,000,960 975,780 1,992,820 972,500 1,960,940 978,750 2,000,000 998,440 966,250 960,940 932,190 2,000,000 963,440 955,470 958,750 1,000,000 2,000,000 1,000,000 $31,529,200 2,000,000 3,000,000 1,005,940 1,999,680 2,020,940 995,620 2;026,560 994,060 2,028,120 1,005,940 1,996,880 1,026,560 994,060 1,000,630 976,720 2,000,320 990,780 987,340 990,780 1,000,3 I0 2,006,880 999,690 $32,047,810 CERTIFICATES OF DEPOSIT - FDIC INSURED First Republic Trust &Loan 3/7/01 Sanwa Bank 12/9/02 TOTAL CERTIFICATES OF DEPOSIT 95,000 6.600% 6. 600% 99,000 6.000% 6.000% $194,000 6.294% 95,000 99,000 $194,000 95,000 99,000 $194,000 MUTUAL FUNDS Nations Bank Government Reserves Capital Fund Union Bank U.S. Govt Securities Morgan Stanley Dean Witter U.S. Govt Securities TOTAL MUTUAL FUNDS 5,000 6.350% 2,093,118 6.010% See Note 1 6.205% 6.093% (3) $5,000 (3) $2,093,118 (2) $1,55 1,45 1 $3,649,569 $5,000 $2,093,118 $1,567,593 $3,665,711 POOLED PUBLIC AGENCY INVESTMENTS State of C/L- Local Agency Investment Fund (LAIF) TOTAL INVESTED PORTFOLIO $29,247,390 6.530% (s~ $29,247,390 6.458% $64,620,159 $29,247,390 $65,154,911 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 current 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 December 31, 2000. (4) Market Value shown for the Federal Securities is as of December 31, 2000. (5) Interest Rate shown is the quarterly average as of December 31, 2000. ITEM 1 CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE AS OF DECEMBER 31, 2000 TYPE OF INSTRUMENT Federal Home Loan Bank (FHLB) Federal Home Loan Mortgage Corp (FHLMC) Federal National Mortgage Assn (FNMA) SUB -TOTAL GOVT/AGENCY Certificates of Deposit - FDIC Insured Mutual Funds Morgan Stanley Dean Witlet U.S. Govt Securities Union Bank U.S. Govt Securities Nations Bank Government Reserves Capital Fund LAIF GRAND TOTAL NOTES: MARKET FACE VALUE BOOK VALUE VALUE 25,000,000 24,753, 100 25,107,810 2,000,000 1,929,690 1,984,840 5,000,000 4,846,410 4,955,160 32,000,000 31,529,200 32,047,810 % OF MATURITY PORTFOLIO YEARS 38.4% 1.8 3.1% 2.7 7.7% 3.0 (t) 49.1% 2.1 194,000 194,000 194,000 0.3% 0.8 1,635,750 1,551,451 1,567,593 (~) 2.4% 2,093, 118 2,093, 118 2,093,118 3.2 % 5.0 N/A 5,000 5,000 5,000 0.0% N/A 29,247,390 29,247,390 29,247,390 45.0% $65,175,258 $64,620,159 $65,154,911 100.0% ( 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 December 31, 2000. (2) Market value is based upon the shams invested at share price as of December 31, 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 Securities 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. N/A ITEM 2 CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 2nd 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 December 31, 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 quarte~y 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-Cate~orized - Cash Petty Cash - City Petty Cash - Shannon Center Cash Register - (5 Locations) Subtotal Balance 12/31/2000 $200.00 $200.00 $500.00 $900.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With California Government Code Balance 12/31/2000 $629,767 Annualized Rate of Interest See Note 1 Cal Fed- Regular Savings Account: FDIC Insured $ 3,549 2.OO% Grand Total Amount Cash Balances: $633,316 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 DECEMBER 31, :ZOO0 MUTUAL FUNDS Dublin Blvd Assessment District First American Govt Obligation Fund COUPON MATURITY VALUE AT INTEREST DATE MATURITY RATE YIELD BOOK VALUE MARKET VALUE See Note 1 6.00% $161,931 $161,931 NOTES: (1) A Mutual Fund does not have a stated maturity date and shares can be sold at any time.