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Home My WebLink About4.16 InvestRpt 1stQtr01-2CITY CLERK FILE # 320-30 AGENDA STATEMENT CITY COUNCIL MEETING DATE: (October 16, 2001) SUBJECT: City Treasurer's Investment Report For 1 st Quarter 2001/2002 Report Prepared by Fred Marsh, Finance Manager ATTACHMENTS: Quarterly Investment Report (September 30, 2001) 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 September 30, 2001, 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 2001/2002 are discussed in the staff report below. INVESTMENT ACTIVITY IN FIRST QUARTER FISCAL YEAR 2001/2002 During the First Quarter some existing securities matured as summarized in the table below: INVESTMENTS MATURED OR CALLED FIRST QUARTER FISCAL YEAR 2001/2002 TYPE AMOUNT MATURITY YIELD FEDERAL SECURITIES FHLB $2,000,000 8/15/01 6.660% FHLB $3,000,000 9/17/01 6.860% The proceeds from these investments, along with other available funds, were used to purchase new securities during the period, as summarized in the table on the following page: G:XlnvestmentsLSept 2001~genda staff report.doc COPIES TO: ITEM NO. INVESTMENTS PURCHASED FIRST QUARTER FISCAL YEAR 2001/2002 CALL TYPE AMOUNT MATURITY YIELD DATE FEDERAL SECURITIES FHLB $ 3,000,000 1 / 11/05 5.10% 7/11/02 FHLB $3,000,000 2/28/05 5.00% 2/28/02 FHLB $3,000,000 7/18/05 5.22% 7/18/03 FHLB $3,000,000 8/15/05 5.30% 2/15/02 FHLB $5,000,000 9/28/05 5.27% 12/28/01 FHLB $5,000,000 1/17/06 5.42% 1/17/03 In the most recent quarter the average maturity for the Federal Security portion of the portfolio increased to 2.8 years, due to the purchase of the 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 Securities represent 50% 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, 2001. 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 2001-2002 Fiscal Year the City has received to date $15,668 in dividends from this investment, resulting in an annualized yield of 5.896%. The market value of this investment fluctuates on a daily basis and as of September 30, 2001 was $48,427 more than the recorded 6/30/2001 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, 2001 by 'source. Comparison information is also shown for the previous quarter. Note that 40% 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 9/30/01 % of Balance Total $37,740,435 49% $2,443,910 3% $409,845 1% $30,137,872 40% $5,529,268 7% $76,261,330 100% 6/30/01 % of Balance Total $43,580,191 56% $2,795,027 4% $579,527 1% $26,424,944 35% $2,868,639 4% $76,248,328 100% CHANGES IN THE TOTAL PORTFOLIO YIELD FRoM THE PREVIOUS REPORT The total amount shown as invested in the Primary Investment Portfolio is only $13,002 more than the amount shown at June 30, 2001. Overall, the combined rate for the total portfolio decreased from 5.187% at June 30, 2001 to 5.065% at September 30, 2001. The decrease was attributable to the calling of the federal' securities noted above, a decrease in the rate of return on the City's LAIF investments operated by the State Treasurer, as well as a decline in the rate ofremm on money market funds during the quarter. The quarterly average for the City's LAIF investment was 4.49% as of September 30, 2001, which was lower than the 5.32% rate recorded for the quarter ending June 30, 2001. 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 investments are in compliance with the City's investment policy and all applicable laws and regulations. CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 1 st QUARTER FY 2001-2002 SECTION 1 PRIMARY 1NVE STMENT PORTFOLIO CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN September 30, 2001 INVESTMENT 1ST CALL DATE COUPON MATURITY VALUE AT INTEREST BOOK DATE MATURITY RATE YIELD VALUE FEDERAL SECURITIES FHLB 10/3/01 FHLB 3/10/00 12/10/01 FHLB 2/1/02 FHLB 5/I/02 FHLB 8/15/02 FHLB 11/6/02 FHLB 2/14/03 FHLB 9/2/03 FNMA 11/14/03 FNMA 1 / 13/04 FHLB 7/11/02 1/11/05 FHLB 2/28/02 2/28/05 FHLB 7/18/03 7/18/05 FHLB 2/15/02 8/15/05 FHLB 12/28/01 9/28/05 FHLB 12/27/05 FHLB 1/17/03 1/17/06 TOTAL FEDERAL SECURITIES CERTIFICATES OF DEPOSIT - FDIC INSURED United California Bank 12/9/02 TOTAL CERTIFICATES OF DEPOSIT 1,000,000 6.575% 6.099% 1,006,250 1,000,160 2,000,000 5.730% 5.730% 2,015,620 2,011,880 2,000,000 6.750% 6.711% 2,032,500 2,023,440 2,000,000 6.750% 6.920% 2,045,000 '2,049,680 2,000,000 6.000% 6.200% 2,041,560 2,057,820 1,000,000 5.940% 6.780% 1,020,940 1,036,250 t,000,000 7.000% 7.010% 1,038,440 t,055,310 1,000,000 5.627% 6.910% 1,016,250 1,045,940 1,000,000 4.750% 6.920% 999,530 1,030,310 1,000,000 6.010% 6.010% 1,004,220 1,003,280 3,000,000 5.100% 5.100% 3,000,000 3,060,000 3,000,000 5.000% 5.000% 3,000,000 3,030,930 3,000,000 5.220% 5.220% 3,000,000 3,097,500 3,000,000 5.300% 5.300% 3,000,000 3,026,250 5,000,000 5.270% 5.270% 5,000,000 5,025,000 2,000,000 6.525% 6.525% 2,034,380 2,054,380 5,000,000 5.420% 5.420% 5,000,000 5,154,700 $38,000,000 5.769% $38,254,690 $38,762,830 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 99,000 6.000% 6.000% 99,000 99,000 POOLED PUBLIC AGENCY INVESTMENTS State of CA.- Local Agency Investment Fund (LAW) TOTAL INVESTED PORTFOLIO NOTES: $99,000 6.000% $99,000 $99,000 5,511,000 3.260% $5,511,000 434,397 2.670% $434,397 See Note 1 5.896% (2) $1,594,497 $5,511,000 $434,397 $1,642,924 3.783% $7,539,894 $7,588,321 $29,811,179 4.490% $29,811,179 $29,811,179 5.065% $75,704,763 $76,261,330 (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, 2001, 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. ITEM 1 CITY OF DUBLIN SUMMARY OF INVESTMENT PORTFOLIO COMPARISON BY INVESTMENT TYPE September 30, 2001 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 % OF PORTFOLIO MATURITY YEARS 36,000,000 36,250,940 36,729,240 47.7% 2.8 0 0 0 0.0% 0.0 2,000,000 2,003,750 2,033,590 2.7% 2.2 50.4% 38,000,000 38,254,690 38,762,830 Certificates of Deposit - FDIC Insured Mutual Funds Morgan Stanley Dean Witter U.S. Govt Securities 1,594,497 1,594,497 1,642,924 ¢2) 2.1% Union Bank U.S. Govt Securities 434,397 434,397 434,397 0.6% Nations Bank Government Reserves Capital Fund 5,511,000 ' '5,511,000 5,511,000 7.3% LAIF 29,811,179 29,811,179 29,811,179 39.5% GRAND TOTAL $75,450,073 $75,704,763 $76,261,330 100.0% NOTES: 2.8 99,000 99,000 99,000 0.1% 1.2 (1) The City intends to hold the investments until maturity or until market values equal or exceed their face value. (2) Book Value is shown as the value recorded in the General Ledger based on the market value at 6/30/2001. (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. 5.0 o) N/A N/A N/A 10/10/01 9:56AM ITEM 2 CITY OF DUBLIN QUARTERLY INVESTMENT REPORT 1 st QUARTER FY 2001-2002 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, 2001 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-Categorized - Cash Petty Cash- City Petty Cash - Shannon Center Cash Register - (5 Locations) Subtotal Balance 09/30/2001 $400.00 $200.00 $500.00 $1,100.00 OPERATING CASH BALANCES - FINANCIAL INSTITUTIONS BANK OF AMERICA- Collateralized Public Money Deposits In Accordance With California Government Code Balance 09/30/2001 $183,377 Annualized Rate of Interest .5% NATIONS BANK U.S. Treasury Reserves Adviser Account (Sweep Account connected to Bank of America Deposits listed.above) $1,427,559 2.836% Cai Fed- Regular Savings. Account: FDIC Insured $570 2.OO% Grand Total Amount Cash Balances: $1,611,506 SPECIAL FUNDS HELD BY TRUSTEES CITY OF DUBLIN DETAILED LISTING OF INVESTMENTS INCLUDING RATE OF RETURN FOR THE QUARTER ENDING SEPTEMBER 30, 2001 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 3.30% $167,790 $167,790 NOTES: (1) A Mutual Fund does not have a stated maturity date and shares can be sold at any time.