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Home My WebLink About4.02 CT InvestRpt 09-30-1995 .. ., CITY CLERK File # D[Q]~[Q]-~[Q] e AGENDA STATEMENT CITY COUNCIL MEETING DATE: (October 24, 1995) SUBJECT: f11IJ City Treasurer's Investment Report: September 30, 1995 rat...- Report Prepared by: Paul S. Rankin, Assistant City Manager EXIllBITS ATTACHED: Listing ofInvestments as of September 30, 1995 RECOMMENDATION: '11t{)...- Receive Report DESCRIPTION: The attached listing details the City's investments as of September 30, 1995. The total amolUlt shown as invested is approximately $1.372 million more than the amolUlt shown at the end of the previous month. e- The increase is considered temporary and was partially caused by a delay in the release of approximately $760,000 in payments approved at the end of September. Monies were transferred from the LAIF investment accOlUlt to the City Operating aCCOlUlt on October 2, 1995 to cover the payments. In addition, at the end of the quarter the City temporarily transfers idle funds in the operating accolUlt to LAIF in order to reduce banking charges. In coming months the City is anticipating the need to cover the Sheriffs Department fIrst quarter billing as well as payments related to the Dublin Boulevard widening project. These activities preclude the City from extending signifIcantly the maturity of the funds currently invested. Overall, the total yield on the City's portfolio for the month of September showed a very slight decrease from the rate shown for the month of ~ugust (5.893% vs. 5.904% respectively). The change was caused by a small adjustment in the LAIF rate as well as the calculated rate on the Dean Witter Mutual FlUld investment. The LAIF changes are discussed fully in the following paragraph. The rate calculated for the Dean Witter investment went from 6.481 % in August to 6.451 % in September. The LAIF quarterly average was 5.90% as of September 29, 1995, which is slightly less than the 5.94% rate recorded in the month of August. For reporting purposes this report includes the Quarterly Rate, since this is how the interest is calculated and paid. In general interest rates have stabilized and most projections do not anticipate significant increases in the near term. As a liquid investment 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 is anticipated to allow the City to meet anticipated expenditures in the upcoming month. . ------------------------------------------------------------------- COPIES TO: ~\.v-"ru-":b. ITEMNO.~ ... City of Dublin - City Treasurer's Listing of Investments as of September 30, 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. ." MATIJRITY INVESTMENT TYPE OF INVESTMF.NT ~ Yilhl.c.. ~ Co.s.t YW.Q POOLED INVESTMENTS 29.3% of Total Portfolio State of California LAIF S6,395,000.00 $6,395,000.00 (I) 5.900% MUTUAL FUND 7.8% of Total Portfolio Dean Witter Revnolds U.S. Govt Securities (2) (2) $1,699,995.50 (3) 6.451% (4) CERTIFICATES OF DEPOSIT 2.7% 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 7/30/98 $99,000.00 5.560 S99,000.00 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 S590,000.00 5.724% GOVERNMENT/AGENCY SECURITIES (5) 60.1% of Total Portfolio . Bank of Califomia(Safekeepinl:) 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 12120/95) 12120/96 $500,000.00 7.900 $500,000.00 7.900% U S Treasury Note 2/15/97 $500,000.00 4.750 S492,741.79 5.724% FFCB (Callable 3/03/95) 3/03/97 S500,OOO.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 S500,OOO.00 6.190% FHLMC(Callable 12/16/95) 6/16/97 S500,000.00 6.440 $500,000.00 6.440% FHLMC(Callable 12/20/95) 6/20/97 S500,OOO.00 6.190 S500,OOO.00 6.190% FNMA (Callable 5113/96) 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 SI,OOO,OOO.OO 4.875 S999,588.57 4.889% U S TreasuIy Note 10/31/98 SI,OOO,OOO.OO 4.750 $990,046.88 5.101% FHLB (Callable 11/03/94) 11/03/98 $1,000,000.00 5.110 SI,OOO,OOO.OO 5.110% FNMA (Callable 12/10/96) 12/10/98 SI,OOO,OOO.OO 5.310 $999,679.67 5.311% FHLB (Callable 1/12/95) 1/12/99 $2,000,000.00 5.460 S2,OOO,OOO.00 5.460% FNMA (Callable 2/12/96) 2/12/99 $400.000.00 5.550 $399.820.85 ~ S13,095,000.00 S13,108,124.88 5.824% TOTAL INVESTMENTS - PER BOOKS $21.793.120.38 5.893% .' Footnotes' (1) , Interest rate shown is quarterly average as of September 29, 1995. (2) As a mutual fund investment this inveSbnent can be liquidated at any given time, however the asset value will fluctuate based upon the current market rate. The invcstme:nt strategy assumes that apprOldmatc:ly $1 million will be beld through July I, 1999, and $699,995 through October I. 1999, without a deferred sales dJarge. Current market value is stated in 113 below. (3) Market value as of Septembc:r 27,1995, based upon original shares invested plus fiscal year to date: dividends is $1,638,144. The marke:t value would also be affected by defened sales dJarges 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 yie:ld presented is an annualized amount based upon the: previouS twelve months of dividends at the share price as of September 27. 1995, divided by the original cost. ' (5) Federal Home Loan Bank (FlD..B), Federal Farm Credit Bureau (FFCB), Federal National Mortgage Association (FNMA), and Federal Home Loan Mol18age: Corp (FlD..MC) are lawful invcstme:nts for local governmental agencie:s.