Item 24 - City's Investment Report
~GENDAREPORTSUMMARY .'-"
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TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Ma~
INITIATED BY: Marjorie K. Wahlsten, City Clerk
Peggy A. Stewart, Director of Administrative servic~~
Christine Tsung, Finance Manager, ,,'"
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DATE: July 6, 1993
SUBJECT: City's Investment Report
ABSTRACT
Monthly reports of investments are required to be presented to Council. For your
information, attached is an investment portfolio listing as of May 31, 1993.
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ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA guidelines.
FISCAL IMPACT
The investment portfolio earned $342,924.15 interest during May 1993.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached reports.
ACTION
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~ AGENDA REPOR'?"'
CITY OF POW A Y
This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the
City Council unless members of the Council, staff or public ~eque~t it to be removed fr?~ ~e ~onsent Calendar and
discussed separately. If you wish to have this report pulled for diScussion, please fill out a slip mdlcating the report number
and give it to the City Clerk prior to the beginning of the City Council meeting.
TO: H.,."bl. M,y" "d M"b"'~ City C..'o"
FROM: James L. Bowersox, City Man
INITIATED BY: Marjorie K. Wahlsten, City Clerk
Peggy A. Stewart, Director of Administrative Services
Christine Tsung, Finance Manager 'I~
DATE: July 6, 1993
SUBJECT: Citv's Investment Reoort
BACKGROUND
Government Code Sec. 53646(b) requires the treasurer or chief fiscal officers to
make a monthly report that includes the type of investment, institution, date of
maturity, amount of deposit, current market value of all maturities that exceed
12 months, and interest rate.
FINDINGS
The book value of the investment portfolio as of May 31, 1993 was $63,732,885.
This portfolio consisted of Time Certificates of Deposits (TCDs) which totaled
$1,875,000, Government National Mortgage Association Certificates (GNMAs) which
were booked at $1,541,606, a U.S. Treasury Note purchased for $497,969, Federal
Home Loan Mortgage Corporation Certificates which were booked at $261,338,
Federal Agency issues of $500,000, medium-term Corporate Notes which were booked
at $6,076,003, U.S. Government Securities which are booked at $699,529, deposits
at the Local Agency Investment Fund (LAIF) of $4,985,964, and $47,295,476
invested through the San Diego County Investment Pool.
The TCDs are at 10 different financial institutions throughout the state. The
certificates are placed in $100,000 increments with the amounts in excess of the
first $100,000 collateralized as outlined by state law using either mortgages or
federal government securities.
The funds on deposit at LAIF and the San Diego County Investment Pool earn
variable interest rates. The interest rate for the month ending May 1993 was
4.389% for LAIF and 5.880% for the County Investment Pool.
ACTION: I
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Agenda Report
- July 6, 1993
Page 2
ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA
guidelines.
FISCAL IMPACT
The investment portfolio earned $342,924.15 interest during May 1993.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached reports.
JLB:MKW:PAS:CT:eg
Attachments: Investment Report (Including the new computer report which lists
all the investments for the City. It is summarized by type of
investment and lists market value and maturity dates for all
investments including those with maturity dates in excess of
12 months.)
c:\ WPFILES1\INVEST,RPT
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CITY OF POWAY POWA
PORTFOLIO MASTER SUMMARY
MAY 31. 1993
AVERAGE ...YIELO TO MATURITY...
PERCENT OF AVERAGE OAYS TO 360 365
INveSTMENTS BOOK VALUE PORTFOLIO TERM MATURITY EQUIVALENT EQUIVALENT
Local Agency Investment Funds................S 52,281,440.02 82.03 1 1 5.659 5.738
Certificates of Deposit......................S 1.875,000.00 2.94 1,614 1,228 6.584 6.675
Mortgage Backed Securities...................S 1,802,944.04 2.83 10,504 8,244 8.182 8.296
Treasury Securities - Coupon.................S 497,968.75 0.78 1,785 807 8.484 8.602
Mediun Term Notes.... ............... ....... ..$ 6,076,003.35 9.53 1,531 587 8.532 8.650
Federal Agency Issues - Coupon...............S 500,000.00 0.78 1,808 1,046 7.890 8.000
Miscellaneous Securities - Coupon............S 699,529.20 1.10 2,192 153 7.890 8.000
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TOTAL INVESTMENTS and AVERAGES...............$ 63,732,885.36 100.001: 544 342 6.0961: 6.1801:
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CASH
Passbook/Checking Accounts...................S 0.00 0.000 0.000
(not included in yieLd caLcuLations)
Accrued Interest at Purchase.................$ 111,121.86
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TOTAL CASH...................................S 111,121.86
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TOTAL CASH and INVESTMENTS...................$ 63,844,007.22
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, " ' Tbe City shall invest in onLy those investments authorized by the State of
PEGGY STEWART CHRISTINE TSUNG California under Government Code Sections 53601.1, 53602 and 53635. Investments
shaLL be made using the prudent man theory with consideration given to the
foLlowing items in order of priority; 1. Safety; 2. Liquidity; 3. YieLd.
DATE
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INVESTMENT PORTFOLIO DETAILS . INVESTMENTS POlIA
MAY 31, 1993
INVESTMENT PURCHASE STATED _u YTM u' MA TUR ITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
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LOCAL AGENCY INVESTMENT FUNDS
040001 LAIF CITY OF POWAY 2,924,152.30 2,924,152.30 2,924,152.30 4.389 4.329 4.389 1
040002 LAIF REDEVELOPMENT AGENCY 2,061,812.07 2,061,812.07 2,061,812.07 4.389 4.329 4.389 1
040004 SO CNTY INVST POOL 47,295,475.65 47,295.475.65 47.295,475.65 5.880 5.799 5.880 1
SUBTOTALS and AVERAGES 52,281,440.02 52,281,440.02 52,281,440.02 5.659 5.738 1
CERTIFICATES OF DEPOSIT
010926 FRANKLIN BANK 02/21/92 99,000.00 99,000.00 99,000.00 6.450 6.450 6.540 02/21/96 997
010927 FRANKLI N 8ANK 02/21/92 99,000.00 99,000.00 99,000.00 6.450 6.450 6.540 02/21/96 997
010939 FRANKLIN THRIFT & LOAN 07/07192 94,000.00 94,000.00 94,000.00 6,500 6.500 6.590 07/07/97 1,499
010940 FRANKLIN THRIFT & LOAN 07/07/92 94,000.00 94,000.00 94,000.00 6.500 6.500 ' 6.590 07/07/97 1,499
010930 FIRST REPUBLIC THRIFT 03/10/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 03/11/96 1,016
010943 IMPERIAL THRIFT 08/17192 99,000.00 99,000.00 99,000.00 6.250 6.250 6.337 08/18/97 1,541
010944 IMPERIAL THRIFT 08/1'1/92 99,000.00 99,000.00 99,000.00 6.250 6.250 6.337 08/18/97 1,541
010933 INVESTOR THRIFT & LOAN 03/27192 99,000.00 99,000.00 99,000.00 7.210 7.210 7.310 03/27197 1,397
010934 INVESTOR THRIFT & LOAN 03/31/92 99,000.00 99,000.00 99,000.00 7.060 7.060 7.158 03/31/97 1,401
010931 RIVER CITY BANK 03/20/92 100,000.00 100,000.00 100,000.00 7.300 7.300 7.401 03/20/97 1,390
010932 RIVER CITY BANK 03/20/92 100,000.00 100,000.00 100,000.00 7.300 7.300 7.401 03/20/97 1,390
O~:.., .. SACRAMENTO SAVINGS BANK 03/04/92 99,000.00 99,000.00 99,000.00 6.300 6.300 6.388 03/04/96 1,009
Qi- ,/ SACRAMENTO SAVINGS BANK 03/04/92 99,000.00 99,000.00 99,000.00 6.300 6.300 6.388 03/04/96 1,009
010937 SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 1,100
010938 SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 1,100
010941 TRANS PACIFIC NATIONAL BANK 08/12/92 100,000.00 100,000.00 100,000.00 6.250 6.250 6.337 08/12/97 1,535
010942 TRANS PACIFIC NATIONAL BANK 08/12/92 100,000.00 100,000.00 100,000.00 6.250 6.250 6.337 OB/12/97 1,535
010935 VALENCIA NATIONAL BANK 04/23/92 99,000.00 99,000.00 99,000.00 6.600 6.600 6.692 04/25/95 695
010936 VALENCIA NATIONAL BANK 04/23/92 99,000.00 99,000.00 99,000.00 6.600 6.600 6.692 04/25/95 695
SUBTOTALS and AVERAGES 1,875,000.00 1,875,000.00 1,B75,OOO.00 6.584 6.675 1,228
MORTGAGE BACKED SECURITIES
080001 FED HOME LOAN MTG CORP 09/17/86 41,850.30 44,403.06 46,266.67 8.000 8.784 8.906 08/15/06 4,825
080003 FED HOME LOAN MTG CORP 04/20/87 219,487.75 223,539.40 235,733.47 9.000 9.137 9.264 05/01/16 8,372
081008 GNMA POOL 192832 04/20/87 801,069.14 805,094.61 847,611.66 8.000 7.958 8.069 04/15/17 8,721
081007 GNMA POOL 203379 04/20/87 581,505.25 586,268.68 617,229.53 8.000 8.001 8.11204/15/17 8,721
081001 GNMA POOL 13057 08/11/86 159,031.60 165,657.92 175,748.14 8.000 8.503 8.621 08/15/06 4,825
SUBTOTALS and AVERAGES 1,802,944.04 1,824,963.67 1,922,589.47 8.182 8.296 8,244
TREASURY SECURITIES . COUPON
070001 US TREASURY NOTE 09/25/90 497,968.75 500,000.00 543,595.00 8.500 8.484 8.602 08/15/95 807
MEDIUM TERM NOTES
090015 AMERICAN EXPRESS CO OS/22/89 196,918.00 200,000.00 209,392.00 8.625 8.877 9.000 07/15/94 411
OC"~-.~'- 8ENEFICIAL CORPORATION 01/25/90 1,000,000.00 1,000,000.00 1,069,730.00 9,100 8.975 9.100 01/26/95 606
0, ,2 EF HUTTON GROUP INC 06/17/91 493,635.00 500,000.00 540,505.00 8.875 9.075 9.201 05/01/96 1,067
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INVESTMENT PORTFOLIO DETAILS . INVESTMENTS POWA
MAY 31, 1993
INVESTMENT PURCHASE STATED n, YTM n, MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
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MEDIUM TERM NOTES
090013 FORD MOTOR CREDIT COMPANY 05122/B9 199,276.00 200,000.00 208,458.00 8.875 8.843 8.966 05/15/94 350
090024 FORO MOTOR CREDIT COMPANY 03/14/90 500,000.00 500,000.00 521,625.00 9.300 9.173 9.300 03/15/94 289
090023 GMAC 02/14/90 1,000,000.00 1,000,000.00 998,750.00 9.000 8.877 9.000 10121193 144
090027 ITT FINANCIAL CORP. 03/11/91 499,000.00 500,000.00 531,265.00 8.900 8.838 8.960 03/01/95 640
090034 PHILLIP MORRIS 07126/91 497,9n.35 500,000.00 511,545.00 7.625 7.696 7.803 02/15/94 261
090035 PHILLIP MORRIS 03/26/92 497,500.00 500,000.00 527,820.00 7.500 7.517 7.622 03n5/97 1,385
090011 SHEARSOI/ LEHMAN 05122/89 191,702.00 200,000.00 201,274.00 7.875 8.942 9.066 08/15/93 77
090036 TRAVELERS CORP 05/14/92 500,000.00 500,000.00 528,750.00 7.625 7.521 7.625 01/15/97 1,326
090031 WESTINGHOUSE CREOIT CORP. 05/17/91 500,000.00 500,000.00 515,200.00 8.010 7.900 8.010 05/18/94 353
SUBTOTALS and AVERAGES 6,076,003.35 6,100,000.00 6,364,314.00 8.532 8.650 587
FEDERAL AGENCY ISSUES - COUPOI/
061007 FEDERAL NAT'L MTG ASSN 04129/91 500,000.00 500,000.00 517,655.00 8.000 7.890 8.000 04/10/96 1,046
MISCELLANEOUS SECURITIES, COUPON
100002 US GOVERNMENT FUND 10/30/87 699,529.20 699,529.20 757,715.79 8.000 7.890 8.000 10/30/93 153
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TOTAL INVESTMENTS and AVERAGES S 63,732,885.36 63,780,932.89 64,262,309.28 6.096" 6.180" ';42
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CITY OF POWAY POWA
ACCRUED INTEREST DETAILS
MAY 31, 1993
MONTH ENOING FISCAL
MAY 31, 1993 YEAR TO DATE
CD/Coupon/Discount Investments:
Interest Collected S 64,053.38 S 762,741.11
PLUS Accrued Interest at End of Period 175,304.95 175,304.95
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LESS Accrued Interest at Beginning of Period ( 173,592.51) ( 199,342.80)
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Interest Earned during Period S 65,765.82 S 738,703.26
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Mortgage Backed Securities:
Interest Collected S 12,510.95 S 143,033.78
PLUS Accrued Interest at End of Period 24,905.45 24,905.45
- LESS Accrued Interest at Beginning of Period ( 25,064.28) ( 22,236.22)
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Interest Earned during Period S 12,352.12 S 145,703.01
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LAIF/Passbook/Checking Accounts:
Interest ColLected S 454,876.56 S 3,061,503.37
PLUS Accrued Interest at End of Period 6,034,614.30 6,034,614.30
lESS Accrued Interest at Beginning of Period ( 6,224,684.65) ( 6,363,433.90)
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Interest Earned during Period S 264,806.21 S 2,732,683.77
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TOTAL Interest Earned during Period S 342,924.15 S 3,617,090.04
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