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Home My WebLink About4.03 CT InvestRpt ~ ...... e e CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 13, 1994 SUBJECT : city Treasurer's Investment Report: May 31, 1994 ~ Prepared by: Paul S. Rankin, Assistant City Mgr) EXHIBITS ATTACHED: Listing of Investments as of May 31, 1994 RECOMMENDATION: q~ecei ve Report DESCRIPTION: The attached listing details the city's investments as of May 31, 1994. The total amount invested is approximately $300,000 less than shown at the end of the previous month. As a result of payment due dates, approximately $800,000 of payments authorized in May are included in the total amount invested. These checks will be released in early June. The decline in the total 8lIOunt invested is ref.lecti ve of ~yments being made on capi tal projects which did not begin construct1on until the last quarter of the Fiscal Year. OVerall, the total yield on the City's portfolio for the month of May showed a favorable gain from the rate shown for the month of April (5.297% vs. 5.160% respectively). This was primarily due to the purchase of two new securities, while rates at the Local Agency Investment Fund increased slightly. These rates of return are anticipated to allow the City to meet its budget estimate for Interest Revenue. As noted in previous reports the mark.et value of the Dean Witter Mutual Fund as well as any Federal securities will fluctuate. This report identifies the value of the Mutual Fund investment at cost and the Federal securities at an adjusted cost. The adjusted cost is calculated by amortizing any premium or discount over the life of the investment. With the recent fluctuations in the interest rates on Federal and Agency Bonds, the "Market Value n of the Mutual Fund investment has fluctuated. The share price as of the date of the May Dividend was $ 8.74 as compared to $8.82 at the April Dividend date. In the month of May, two separate $ 500,000 investment transactions were completed. The City purchased a Federal Home Loan Bank (FHLB) Note, with a maturity date of May 20, 1996. This investment cannot be called prior to the final date of maturity. The investment has a coupon yield of 6.20%. The second investment was a Federal Home Loan Mortgage Corporation (FHLMC) Note, with a maturity date of May 24, 1997. Th1s investment can be called beginning 5/24/95. The investment has a coupon yield of 6.51%. Both investments were purchased at par. These are very competitive rates for a three year investment, co.pared to what the city experienced earlier in the Fiscal Year. This will also help to stagger the maturities within the city's portfolio. !.AIF is a pooled investment account managed by the state Treasurer. The fund continues to provide an important investment option for public agencies. The fund allows cities to move monies in and out similar to a money mark.et fund. The quarterly average was 4.385% as of May 31, 1994. This is up slightly from the 4.333% rate reported last month. !.AIF comprised a smaller percentage of the total portfolio when compared to the previous month (31.7% vs. 37.8% in April). The LAIF should continue to rise in the coming months. For re:porting purposes this report includes the quarterly rate, since th1S is how the interest is calculated and paid. However, the Daily rate is currently 0.125% higher than the quarterly rate. The schedule of investment maturities is anticipated to allow the city to meet anticipated expenditures in the upcoming month. ~--------------~-----------------~------~-----------~----------------- COPIES TO: 4.' CITY CLERK FILE ~ e e ,J ,...~... city of Dublin city Treasurer's Listing of Investments As of May 31, 1994 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 financing legal documents. MATURITY Value INVESTMENT Cost Yield TYPE OF INVESTMENT Date Rate POOLED INVESTMENTS 31.7 of Total Portfolio State of California LAIF $6,179,000.00 $6,179,000.00 (1) 4.385% MUTUAL FUND 8.7% of Total Portfolio Dean Witter Revnolds U.S. Govt securities (2 ) (2) $1,699,995.50 (3) 5.984% CERTIFICATES OF DEPOSIT 2.5% of Total Portfolio First Republic T & L Investors Thrift & Loan Southern Calif FS&L Standard Pacific Svgs World Savings $95,000.00 5.250 $99,000.00 5.560 $98,000.00 5.250 $99,000.00 5.200 $100.000.00 6.010 $491,000.00 GVRNT/AGENCY SECURITIES (4) 57.1% of Total Portfolio 9/14/98 7/30/98 9/14/98 7/30/98 1/29/98 $95,000.00 $99,000.00 $98,000.00 $99,000.00 $100.000.00 $491,000.00 5.250% 5.560% 5.250% 5.200% 6.010% 5.457% Bank of California(Safekeeping) FHLB 8/26/96 $490,000.00 7.700 U S Treasury Note 2/15/97 $500,000.00 4.750 FFCB(Callable 3/03/95) 3/03/97 $500,000.00 5.120 FHLB 5/20/96 $500,000.00 6.200 FHLMC(Callable 5/24/95) 5/24/97 $500,000.00 '6.510 FNMA 6/10/97 $1,205,000.00 9.200 FNMA(Callable 5/13/96) 5/13/98 $500,060.00 5.250 FHLMC(Callable 9/9/94) 9/09/98 $500,000.00 4.950 FNMA(Callable 10/15/96)10/15/98 $1,000,000.00 4.875 U S Treasury Note 10/31/98 $1,000,000.00 4.750 FHLB(Callable 11/3/94) 11/03/98 $1,000,000.00 5.110 FHLB(Callable 1/12/95) 1/12/99 $2,000,000.00 5.460 FNMA(Callable 2/12/96) 2/12/99 $400,000.00 5.550 FNMA(Callable 12/10/96)12/10/98 $1.000.000.00 5.310 $11,095,000.00 $490,000.00 $487,343.75 $495,937.50 $500,000.00 $500,000.00 $1,281,000.00 $495,000.00 $498,359.38 $999,375.00 $984,687.50 $1,000,000.00 $2,000,000.00 $399,750.00 $999.531.25 $11,130,984.38 $19,500,979.88 7.700% 5.724% 5.420% 6.200% 6.510% 7.066% 5.482% 5.020% 4.889% 5.101% 5.110% 5.460% 5.564% 5.311% 5.691% Total Investments - per books 5.297% --------------- --------------- ------- ---...........--- 'ootnotes 1) 2) Interest rate sho~n is quarterly average as of May 31, 1994. As a mutual fund ~nvestment this can be liquidated at any given time however the asset value will fluctuate based upon the current market' rate. The investment strategy assumes that $1 million will be held through July 8, 1999, and $700,091 through September 10, 1999 without a def7rred sales charge. Value ~s calculated at original cost. The y~eld on a mutual fund fluctuates with the share price of shares currently held. The yield presented is an, annualized amount based upon the eleven months of dividends at the share price as of 5/26/94. 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, 3) 4)