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Home My WebLink About4.03 CT InvestRpt "" e e CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 25, 1995 SUBJECT: .... ~ City Treasurer's Investment Report: June 30, 1995 'Q) (prepared by: Paul S. Rankin, Assistant City Manager) EXHIBITS ATTACHED: Listing of Investments as of June 30, 1995 RECOMMENDATION~eive Report DESCRIPTION: The attached listing details the City's investments as of June 30,1995. The total amount shown as invested is approximately $1.68 million more than the amount shown at the end of the previous month. The increase is due to several factors including: temporary transfer of funds from the operating account to the Local Agency Investment Fund; a temporary short term investment of matured investment funds held by Bank of California; and an adjustment to the recorded values of securities currently held to accrue amortized bond premiums and discounts for the Fiscal Year. Three investment transactions were completed in June. The City had a $500,000 FNMA Note which matured on June 30, 1995 and these funds were available for reinvestment during the month. In addition the City had the following securities which were called in June prior to their stated maturity date: INVESTMENTS CALLED IN JUNE 1995 Investment FHLMC FHLB Amount Invested $500,000 $500,000 ~ 6.51 % 6.72% Maturity Date 5/24/97 6/9/97 Callable 5/24/95 6/9/95 Date Called 6/26/95 6/9/95 The following table outlines the replacement securities purchased in June: Investment FNMA FHLMC FHLMC INVESTMENTS PURCHASED IN JUNE 1995 Amount Invested $500,000 $500,000 $500,000 ~ 6.19% 6.44 % 6.19%. Maturity Date 6/17/97 6/16/97 6/20/97 Callable 6/17/96 12/16/95 12/20/95 All of the investments were purchased at face value without any premium or discount. The rates obtained were still above the current LAIF rate, however, unlike LAIF monies these are invested for a period of 2 years, unless they are called by the issuer prior to final maturity. Overall, the total yield on the City's portfolio for the month of June showed a slight decrease from the rate shown for the month of May (5.874% vs. 5.912% respectively). This was primarily due to a temporary investment at Bank of California, which represented the matured funds plus interest on June 30, 1995. These monies were invested over the weekend and then wired to the City on July 3, 1995. For audit purposes they have been shown on the investment report in order for the Treasurer's Report to match the Bank of California statement as of June 30, 1995. If this temporary investment had been excluded the yield on the City portfolio would have been 5.907%, which is very close to the amount reported last month. The LAIF quarterly average was 5.980% as of June 29, 1995, which is the same level as recorded in the month of May. 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 June 29, 1995 was 5.97%, 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 schedule of investments including the dates of maturity is anticipated to allow the City to meet anticipated expenditures in the upcoming month. ---------------------------------------------------------------------- ITEM NO. 4.; COPIES TO: CITY CLERK FILE ~ .,.. e City of Dublin e City Treasurer's Listing of Investments as of June 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. TYPE OF INVESTMENT ~ MATIJRITY .YlIlwt ~ INVESTMENT Clm :fuld POOLED INVESTMENTS 27.7% oCTotal Portfolio State of California LAIF $6,095,000.00 $6,095,000.00 (1) 5.980% MUTUAL FUND 7.7% oCTotal Portfolio Dean Witter Reynolds U.S. Govt Securities (2) (2) $1,699,995.50 (3) 6.544% (4) CERTIFICATES OF DEPOSIT 2.7% oC 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 $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) 59.6% oC Total PortColio Bank of California(Safekeepin~) 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 $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) 6117/97 $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) 6120/97 $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% SHORT TERM INVESTMENT FUND 2.3% oCTotal Portfolio Bank of California 6/30/95 $513,125.00 3.820 $513,125.00 3.820% TOTAL INVESTMENTS - PER BOOKS $22 006 245.38 5 874% ~ (I) Interest rate shown is quarterly average as ofJune 29,1995. (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 July I, 1999, and $699,995 through October I, 1999, without a deferred sales charge. Current market value is stated in #3 below. (3) Market value as of June 30,1995, based upon original shares invested is $1,616,021. 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 of July 5, 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.