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Home My WebLink About4.02 CT InvestRpt .. \. CITY OF DUBLIN AGENDA STATEMENT . CITY COUNCIL MEETING DATE: August 8,1995 SUBJECT: City Treasurer's Investment Report: July 31, 1995 (prepared by: Paul S. Rankin, Assistant City Manager) EXlllBITS ATTACHED: Listing of Investments as of July 31,1995 RECOMMENDATIONq'ive Report DESCRIPTION: The attached listing details the City's investments as of July 31,1995. The total amount shown as invested is approximately $1.585 million less than the amount shown at the end of the previous month. The decrease is due to several factors including: the Civic Center debt service documents provides for the City to transfer the August interest payment to the Trustee in July; the City recently paid the (mal quarter Alameda County Sheriff's Department billing; and the June report included a temporary transfer of funds from the operating account to the Local Agency Investment Fund. No new investments were made in the month of July. The City did transfer to the Local Agency Investment Fund, $513,125 shown in June as a short term investment with Bank of California. These were funds from a matured investment and the LAIF account offered a higher yield. Overall, the total yield on the City's portfolio for the month of July showed a slight increase from the . rate shown for the month of June (5.907% vs. 5.874% respectively). This was primarily due to the liquidation of the short term investment at Bank of California. These monies were invested over the weekend and then wired to the City on July 3, 1995. As noted in the June investment report if this temporary investment had been excluded from the June 1995 Treasurer's Report, the yield on the City portfolio would have been 5.907%, which is the same as the yield reported on the attached schedule for July 1995. The LAIF quarterly average was 5.95% as of July 28, 1995, which is slightly less than the amount recorded in the month of June (5.95% vs 5.98% respectively). For reporting purposes this report includes the Quarterly Rate, since this is how the interest is calculated and paid. The actual daily rate as of July 28, 1995 was 5.90%, which indicates that there probably will not be additional significant increases in this rate. As a liquid investment the current rate remains very favorable compared to rates offered on investments which have less flexibility. The distribution of the City investment portfolio changed from June to July as transfers were required . from the LAIF account to cover operating expenses. In June, LAIF represented approximately 27.7% of the City portfolio with a balance of $6,095,000. In July the balance had decreased to $5,023,000 and it represented 24.6% of the total City portfolio. The schedule of investments including the dates of maturity is anticipated to allow the City to meet anticipated expenditures in the upcoming month. . ITEM NO. A. 2- , COPIES TO: CITY CLERK FILE ~ ""'&..~ VA ..,u.l.lu.&& City Treasurer's Listing ofInvestments . as of July 31,1995 This listing excludes Dublin Boulevard Extension Assessment District and COP reserve fund balances which are held by third party Trustees and invested in accordance with the fmancing legal documents. . MA TIJRITY INVESTMENT TYPE OF INVESTMENT ~ ~ ~ 1&st Yilili1 POOLED INVESTMENTS 24.6% of Total Portfolio State of California LAIF $5,023,000.00 $5,023,000.00 (1) 5.950% MUTUAL FUND 8.3% of Total Portfolio Dean Witter Reynolds U.S. Govt Securities (2) (2) $1,699,995.50 (3) 6.486% (4) CERTIFICATES OF DEPOSIT 2.9% of Total Portfolio Home Savings of America 12/08/95 $99,000.00 7.050 $99,000.00 7.050% World Savings 1/29/98 $100,000.00 6.010 $100,000.00 6.010% Fremont Investment & Loan 7130/98 $99,000.00 5.560 $99,000.00 5.560% Standard Pacific Savings 7/30/98 $99,000.00 5.200 $99,000.00 5.200% First Republic T & L 9/14/98 $95,000.00 5.250 $95,000.00 5.250% Southern California FS & L 9/14/98 $98.000.00 5.250 $98 000 00 ~ $590,000.00 $590,000.00 5.724% GOVERNMENT/AGENCY SECURITIES (5) 64.2% of Total Portfolio Bank of California(Safekeepin2) . FHLB 10/19/95 $500,000.00 5.820 $499,472.88 6.165% FHLB 5/20/96 $500,000.00 6.200 $500,000.00 6.200% FHLB 8/26/96 $490,000.00 7.700 $490,000.00 7.700% FHLB (Callable 12/20/95) 12120/96 $500,000.00 7.900 $500,000.00 7.900% U S Treasury Note 2/15/97 $500,000.00 4.750 $492,741.79 5.724% FFCB (Callable 3/03/95) 3/03/97 $500,000.00 5.120 $497,743.00 5.420% FNMA 6/10/97 $1,205,000.00 9.200 $1,243,000.00 7.066% FNMA(Callable 6/17/96) 6/17/97 $500,000.00 6.190 $500,000.00 6.190% FHLMC(Callable 12/16/95) 6/16/97 $500,000.00 6.440 $500,000.00 6.440% FHLMC(Callable 12120/95) 6/20/97 $500,000.00 6.190 $500,000.00 6.190% FNMA (Callable 5/13/96) 5/13/98 $500,000.00 5.250 $497,125.00 5.482% FHLMC(Callable 9/09/94) 9/09/98 $500,000.00 4.950 $498,906.24 5.020% FNMA (Callable 10/15/96) 10/15/98 $1,000,000.00 4.875 $999,588.57 4.889% U S TreasUry Note 10/31/98 $1,000,000.00 4.750 $990,046.88 5.101% FHLB (Callable 11/03/94) 11/03/98 $1,000,000.00 5.110 $1,000,000.00 5.110% FNMA (Callable 12/10/96) 12/10/98 $1,000,000.00 5.310 $999,679.67 5.311% FHLB (Callable 1/12/95) 1/12/99 $2,000,000.00 5.460 $2,000,000.00 5.460% FNMA (Callable 2/12/96) 2/12/99 $400.000.00 5.550 $399.820.85 ~ $13,095,000.00 $13,108,124.88 5.824% TOTAL INVESTMENTS - PER BOOKS $20.421.120.38 5.907% . Footnotes' (1) Interest rate shown is quarterly average as ofJuly 28,1995. (2) As a mutual fund investment this investment can be liquidated at any given time, however the asset value will fluctuate based upon the current market rate. The investment strategy assumes that approximately $1 million will be held through Iuly I, 1999, and $699,995 through October 1, 1999, without a deferred sales charge. Current market value is stated in #3 below. (3) Market value as of Iuly 27, 1995, based upon original shares invested plus fIScal year to date dividends is $1,613,480. The market value would also be affected by deferred sales charges if the investment were liquidated prior to the dates stated in note (2). (4) The yield on a mutual fund fluctuates with the share price of shares currently held. The yield presented is an annualized amount based upon the previous twelve months of dividends at the share price as ofJuly 27,1995, divided by the original cost (5) Federal Home Loan Bank (FHLB), Federal Farm Credit Bureau (FFCB), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corp (FHLMC) are lawful investments for local governmental agencies.