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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 14, 1993
SUBJECT:
City Treasurer's Investment Report as of May 31, 1993
(Prepared by: stan Stephens, Interim Finance Director
EXHIBITS ATTACHED: Investment Report
RECOMMENDATION: c(;t~ceive Report.
DESCRIPTION: Attached is the Investment Detail List as of May 31, 1993.
The report shows that the City's investment portfolio totals $18,635,000.
This represents a decrease of $55,000 in the amounts invested when compared
to the City's investments of last month.
During May a $500,000 Federal National Mortgage Association (FNMA)
debenture was purchased. This investment matures May 13, 1998 with a yield
of 5.482%. This transaction was consistent with an effort to improve the
overall yield of the portfolio through the purchase of longer term
investments. The percentage of funds with maturities over 36 months has
increased by 17.8% since the last report. As of May 31, 1993,
approximately 15 percent of the City's portfolio is invested in instruments
with maturity dates between three and five years.
Note that the rate of interest on investments in the
Investment Fund (LAIF) is calculated on a monthly rolling
rate identified for that investment was effective as of May
LAIF pays interest once a quarter.
As previously noted, LAIF is managed by the State Treasurer and offers the
Ci ty the advantages of a pooled investment vehicle, without a m~n~mum
investment period. Although the earnings on this fund have declined from
prior years, it has outperformed similar benchmarks for public investments.
The following compares LAIF with Performance Indexes developed by the
Government Finance Officers Association (GFOA):
Local Agency
average. The
31, 1 993 . The
Avg Monthly
Interest Rate
April 1992 -
March 1993
Public Investor
10 Bill Index
No m~n1mum investment period
Highly Liquid
Based upon 10 hypothetical T-Bill
investments. Average Maturity 80 days.
4.982%
LAIF
3.9%
Public Investor
1 Bill Index
Based on Hypothetical Reinvestment of
1 Year T-Bill.
5.0%
Money Market
Index
Based on Donghue's (TM) 7 Day Money
Market Fund Index
4.4%
The period selected was based upon available data published by GFOA (Public
Investor Newsletter). As shown above, LAIF has remained very competitive
even compared to investments with longer maturities. Staff will continue
to monitor LAIF rates and seek opportunities to improve the City's yield.
The maturity schedule of the City's investments will permit the City to
meet its expenditure requirements for the following month.
a: 614invest.agenda#12
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ITEM NO. -9. '7
COPIES TO:
CITY CLERK
FILE ~
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city of Dublin
city Treasurer's Investment Report
May 31, 1993
INSTITUTION MATURITY INVESTMENT
Type of Investment Date Value Rate Cost Yield
State of California
LAIF $15,850,000.00 $15,850,000.00 4.514%
Bank of California
FHLB Debentures ( 2 ) 8/26/96 $490,000.00 7.700 $490,000.00 7.700%
FNMA Debentures (2) 6/10/97 $1,205,000.00 9.200 $1,300,000.00 7.066%
FNMA Debentures ( 2) 5/13/98 $500,000.00 5.250 $495,000.00 5.482%
FFCB Debentures (2 ) 2/02/98 $400.000.00 5.800 $400.000.00 5.800%
$2,595,000.00 $2,685,000.00 6.701%
World Savinqs
Cert of Deposit 1/29/98 $100,000.00 6.010 $100.000.00 6.010%
Total Investments - per books $18,635,000.00 (I ) 4.837%
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Footnotes
(1) Net decrease in investments during May 1993 = $55,000.
(2) Federal Home Loan Bank (FHLB), Federal National Mortgage Association
(FNMA), and Federal Farm Credit Bank (FFCB) are lawful investments for
local governmental agencies.