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Home My WebLink About4.04 CT Invest Rpt /' e e -~ . CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: June 13, 1995 SUBJECT: ....~ ~City Treasurer's Investment Report: May 31,1995 ~v(prepared by: Paul S. Rankin, Assistant City Manager) EXHIBITS ATTACHED: Listing of Investments as of May 31,1995 ~ . RECOMMENDATION: ~ Receive Report DESCRIPTION: The attached listing details the City's investments as of May 31, 1995. The total amount shown as invested is approximately $1.35 million less than the amount shown at the end of the previous month. The decrease reflects a reduced balance at the Local Agency Investment Fund as monies were transferred to cover operating expenses. No new investments were placed in the month of May. The distribution of City investments changed somewhat in Mayas the need to cover operating costs required transfers from the City account at the State Local Agency Investment Fund. The April report identified that approximately 28.9% of the City Portfolio was invested in LAIF. As of May the amount in LAIF had decreased to approximately 24.2% of the portfolio. The City remains well below the maximum amount which can be invested in LAIF. Staff will continue to monitor cash flow needs as well investigate options to secure greater yield from safe investments. Given the liquidity of LAIF and its current yield it remains a very attractive investment option. Overall, the total yield on the City's portfolio for the month of April showed a favorable gain from the rate shown for the month of April (5.912% vs. 5.897% respectively). This was primarily due to a favorable change in the rates at the Local Agency Investment Fund and an increase in the rate of return calculated on the Dean Witter Mutual Fund. The LAIF quarterly average was 5.980% as of June 1, 1995. This is up slightly from the 5.950% rate reported last month. 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 1, 1995 was 6.00%, which indicates that there remains a small opportunity for this fund to produce increased interest yield in the coming months. The schedule of investments including the dates of maturity is anticipated to allow the City to meet anticipated expenditures in the upcoming month. ---------------------------------------------------- CITY CLERK FILE ~ ITEM NO. 4.4 COPIES TO: I" . City of Dublin Cit). Tre rer's Listing of Inyestments as of June 1, 1995 e .....- " This listing exclutes DujlJin Boulevard Extension Assessment District and COP reserve fund balances which are held by third party Trustees and invested i'II'\ccordance with the financing legal documents. TYPE OF INVESTMENT I&1c. MATURITY Ya.l.u.e... ~ INVESTMENT ~ YkM POOLF.D INVESTMENTS 24.2% of Total Portfolio State of California LAIF $4,920,000.00 $4,920,000.00 (I) 5.980% MUTUAL FUND 8.4% of Total Portfolio Dean Witter Reynolds U.S. Govt Securities (2) (2) SI,699,995.50 (3) 6.538% (4) CERTlFICA n:s OF DEPOSIT 2.9% of Total Portfolio Home Savings of America 12/08/95 S99,OOO.00 7.050 $99,000.00 7.050% World Savings 1/29/98 $100,000.00 6.010 $100,000.00 6.010% Fremontlnvesunent & Loan 713 0/98 $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 $98000.00 ~ 2~0% $590,000.00 $590,000.00 5.724% GOVERNMENT/AGENCY SECURITIES (5) 64.5% of Total Portfolio Bank ofCalifomia(Safekeepim') FNMA 6/30/95 $500,000.00 5.250 $500,000.00 5.250% FHLB 10/19/95 $500,000.00 5.820 $498,281.25 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] 2/20/95) 12/20/96 $500,000.00 7.900 $500,000.00 7.900% U S Treasury Note 2/15/97 $500,000.00 4.750 $488,274.35 5.724% FFCB (Callable 3/03/95) 3/03/97 $500,000.00 5.120 $496,388.80 5.420% FHLMC(Callable 5/24/95) 5/24/97 $500,000.00 6.510 $500,000.00 6.510% FHLB (Callable 6/09/95) 6/09/97 $500,000.00 6.720 $500,000.00 6.720% FNMA 6/10/97 $1,205,000.00 9.200 $1,262,000.00 7.066% FNMA (Callable 5/13/96) 5113/98 $500,000.00 5.250 $496,000.00 5.482% FHLMC(Callable 9/09/94) 9/09/98 $500,000.00 4.950 $498,578.12 5.020% FNMA (Callable 10/15/96) 10/15/98 $ I ,000,000.00 4.875 $999,463.57 4.889% U S Treasury Note 10/3 1198 $1,000,000.00 4.750 $986,984.38 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 $999,585.92 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/] 2/99 $400000.00 5.550 $399 770 85 ~ $13,095,000.00 $13,115,327.24 5.813% TOTAL INVESTMENTS. PER BOOKS $20325 322.74 59]2% ~ (I) Interest rate shown is quarterly average as ofJune I, 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 SI million will be held through July I, 1999, and S699,995 through October I, 1999, without a deferred sales charge. Current market value is slated in #3 below. (3) Market value as of May 26,1995. based upon original shares invested plus fiscal year to dale dividends is 51,709,604. The market value would also be affected by deferred sales charges if the investment were liquidated prior to the dates slated 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 May 3 I, 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 govemmental agencies.