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Item 8 - City's Investment Report AGENDA REPORT SUMMARY TO: Honorable Mayor and Members of the City Council FROM: James L. Bowersox, City Manag:~' INITIATED BY: Warren H. Shafer, Director of Administrative Service, Andrew White, Finance Manager~fk/' DATE: April 15, 2003 SUBJECT: City's Investment Report as of February 28, 2003 ABSTRACT Monthly reports of investments are required to be presented to Council. For your information, attached is an investment portfolio report as of February 28, 2003. ENVIRONMENTAL REVIEW This item is not subject to CEQA review. FISCAL IMPACT The investment portfolio earned $401,918.67 interest dudng February 2003. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE None. RECOMMENDATION It is recommended that the City Council accept and file the attached report. ACTION c:~data~agenda~Jnvestsum4-15-2003.doc I of 29 April 15, 2003 Item #~' CITY OF POWAY AGENDA REPORT 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 request it to be removed from the Consent Calendar and discussed separately. If you wish to have this report pulled for discussion, please fill out a slip indicating the report number and give it to the City Clerk prior to the beginning of the City Council meeting. TO: Honorable Mayor and Members of the City Council FROM: James L. Bowersox, City Mana~ INITIATED BY: Warren H. Sharer, Director of Administrative Services Andrew White, Finance Manager(~kv/- DATE: April 15, 2003 SUBJECT: City's Investment Report as of February 28, 2003 BACKGROUND Government Code Sec. 53646(b) requires the treasurer or chief fiscal officers to make a quarterly 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. In accordance with the City's Investment Policy, this report is provided on a monthly basis. FINDINGS The book value of the investment portfolio as of February 28, 2003, was $113,791,014. It consisted of mortgage-backed securities totaling $119,624 (Federal Home Loan Mortgage Corporation certificates booked at $10,276 and Government National Mortgage Association (GNMAs) certificates booked at $109,348); U.S. Treasury notes booked at $13,604,540; U.S. federal agency notes which were booked at $38,418,824; asset-backed securities recorded at $3,634,103; medium-term and other corporate notes which were booked at $18,626,834, and deposits at the Local Agency Investment Fund (LAIF) of $39,387,089. The attached investment report was prepared by the City's investment manager, Metropolitan West Securities, Inc. (MetWest), with input from the City's Administrative Services Department. The report has been reviewed by Administrative Services Department staff. Details on the City's current portfolio follow. The values of fixed income securities, as legal investment tools authorized under California government codes, are closely tied with interest rates. As interest rates go up, the market values of the securities go down. The difference between book (pumhase) price and current market price is considered an unrealized loss (or gain, if the market pdce is higher). A real (realized) loss is when the principal of the security is redeemed before its maturity date at a market value lower than its book 2 of 29 April 15, 2003 Item City's Investment Report April 15, 2003 Page 2 value. The book value of the investment portfolio is $113,791,014; the market value is $116,649,277 or a net "paper gain" of $2,858,263 or 2.51% of the total. The source of the market value information for the GNMAs, U.S. Treasury Notes, Federal Home Loan Mortgage Corp. Certificates, the U.S. federal agency notes, the asset-backed securities, and the Corporate Notes is Interactive Data Corporation. Also included with this report are recaps of the City's cash and investments held by fiscal agents, non- managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agents, U.S. Bank and The Bank of New York, at February 28, 2003, was $62,994,418. The source of the market value information for these investments was U.S. Bank and The Bank of New York. The total book value of the non-managed investments was $377,637 at February 28, 2003. The City's cash on hand at February 28, 2003, totaled $284,687. The funds on deposit at LAIF earn interest at a variable rate. The interest rate for the month ending February 2003 is estimated at 1.945%. The City is in compliance with its adopted investment policy. The City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. FISCAL IMPACT - The investment portfolio earned $401,918.67 interest during February 2003. ENVIRONMENTAL REVIEW, This item is not subject to CEQA review. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE None. RECOMMENDATION It is recommended that the City Council accept and file the attached report. Attachments: A. Investment Statistics B. Investment Report prepared by Metropolitan West Securities, Inc. C. City of Poway Investments and Cash with Fiscal Agent; Non-Managed Investments; General, Payroll, and Petty Cash Report at 2/28/03 c:\d ata~agenda\invest rpt4-15-2003.doc 3 of 29 April 15, 2003 Item City of Poway Investment Statistics February January February 2002 2003 2003 Book Value 96,671,291.62 119,580,988.86 113,791,013.63 Market Value 98,482,652.52 122,304,848.70 116,649,276.99 Unrealized Gain 1,811,360.90 2,723,879.84 2,858,263.36 One Year Total Yield* 6.89% 6.49% 6.45% Market Yield to Maturity 3.38% 2.07% 1.94% Index Market Yield to Maturity 2.29% 1.30% 1.30% Period Return* 0.58% 0.17% 0.54% Index Period Return* 0.54% -0.02% 0.56% Average Days to Maturity 615.00 419.00 455.00 * The calculation of this yield includes both the portfolio's yield and the portfolio's unrealized market value gain or loss. 3/19/2003 INVSTATS\FY2003\022803 4 of 29 ATTACHMENT A April 15, 2003 Item #~' 5of29 ATTACHMENTB AprillS, 20031tem# ~ I~ 6 of 29 April ~5, 2003 Item 7 of 29 April 15, 2003 Item #_.~_~ =~~~ ~ = 8 of 29 April 15, 2003 Item o ~ 0 9 of 29 April 15, 2003 Item # ~_. I 10 of 29 A ~ri115, Item 11 of 29 April 15, 2003 item # 12 of 29 April 15, 2003 Item # 13 of 29 April 15, 20 Item # 14 of 29 April 15, 2003 Item ~ ~ ~ o ° ~ ° o o ~ 15 of 2g April 15, 2003 Item #._.~._ 16 of 29 April 15, 2003 Item # ) ~, 7 of 29 April 15, 2003 Item o o ~oo ~o ~ 19 of 29 April 15, 2003 Item 0 =- ~- 21 of 29 April 15, 2003 Item 22 of 29 April 15, 2003 Item 23 of 29 April 15, 2003 Item o~ ~o~ . 24 of 29 April 15, 2003 Item 25 of 29 April 15, 2003 Item # - 26 of 29 April 15, 2003 Item 27 of 29 April 15, 2003 Item © 28 of 29 April 15, 2003 Item #.~_~_ 29 of 29 ATTACHMENT C