Item 14 - City's Investment Report __ AGENDA REPORT SUMMARY _
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City ManaXc]~
INITIATED BY: John D. Fitch, Assistant City Manager~
Peggy A. Stewart, Director of AdministNative-- Servic
Christine Tsung, Finance ManagerL~
DATE: January 31, 1995
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 December 31, 1994.
ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA guidelines.
FISCAL IMPACT
The investment portfolio earned $345,425.92 interest during December 1994.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached report.
ACTION
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JAN 3 1 1995 I'~'~ 14
"AGENDA REPOR',
CITY OF POWAY
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana~
INITIATED BY: John D. Fitch, Assistant City Manager~I~
Peggy A. Stewart, Director of Administ/uktive Services
Christine Tsung, Finance Manager
DATE: January 31, 1995
SUBJECT: City's Investment Report
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 December 31, 1994 was
$67,580,688 which consists of the City's general operating reserves which qualify
for investment reporting purposes. Also added to this report is a detailed
schedule of the City's and Redevelopment Agency's bond proceeds held for payment
of infrastructure purposes. It represents a book value of $43,672,517.
The general operating reserves investment portfolio consisted of Time
Certificates of Deposits (TCDs) which totaled $2,271,000, Government National
Mortgage Association Certificates (GNMAs) which were booked at $988,556, U.S.
Treasury Notes purchased for $12,416,172, Federal Home Loan Mortgage Corporation
Certificates which were booked at $122,331, medium-term Corporate Notes which
were booked at $3,963,015, Federal Agency issues of $1,000,000, U.S. Government
Securities which are booked at $7,099,529, deposits at the Local Agency
Investment Fund {LAIF) of $12,912,565, and $26,807,520 invested through the San
Diego County Investment Pool. The market value of the County Pool is estimated
at $23,834,995 at December 31, 1994. A copy of the San Diego County Pool's
Investment Portfolio as of December 31, 1994 is attached.
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 (purchase) price and current market price is considered an
ACTION:
2 of 16
JAN 31 1995 I'~'~ Ib,
Agenda Report
January 31, 1995--~
Page 2
unrealized loss (or gain, if the market price 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 value. The book value of the City's operating
investment portfolio is $67,580,688; the market value adjusted for the San Diego
County Pool funds is $63,497,313 for a "paper loss" of $4,083,374, or 6% of the
total. The book value of the City's bond proceeds is $43,672,517; the market
value adjusted for the San Diego ~ounty Pool funds is $39,283,512. The City does
not anticipate redeeming any of the securities prior to their maturity date, so
no real losses will be realized.
The funds on deposit at LAIF and the San Diego County Investment Pool earn
variable interest rates. The interest rate for the month ending December 1994 is
estimated at 5.549% for LAIF. The most current actual monthly rate for the
County Investment Pool is 5.69% for November 1994. The County Pool is projected
to yield 4.00% for all of fiscal year 1994-95.
The TCDs are at 12 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.
ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA
guidelines.
FISCAL IMPACT
The investment portfolio earned $345,425.92 interest during December 1994.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCF
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached reports.
JLB:MKW:PAS:CT:eg
Attachments:
A. 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.)
B. A schedule detailing the investments for the bond issues managed by
the City.
C. San Diego County Pool's Investment Portfolio as of
December 31, 1994.
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~JAN 311995 I'~'~ 1b,
01/12/1995 PM - 1
CITY OF POWAY POWA
PORTFOLIO MASTER SUMMARY
DECEMBER 31~ 1994
AVERAGE '''YIELD TO MATURITY'"
PERCENT OF AVERAGE DAYS TO 360 365
INVESTMENTS BOOK VALUE PORTFOLIO TERM MATURITY EQUIVALENT EQUIVALENT
Local Agency Investment Funds ................ $ 39,720,084,87 58.77 1 1 5.567 5.644
Certificates of Deposit ...................... $ 2~271,000.00 3.36 1,651 820 6.572 6.663
Mortgage Backed Securities ................... $ 1,110,886.52 1.64 10,446 ?,603 8.145 8.258
Treasury Securities - Coupon ................. $ 12,416,171.93 18.37 1,367 1,175 6.765 6.859
Medi~ Term Notes ............................ $ 5,963,015.00 5,86 1,744 633 ?.921 8.031
Federal Agency Issues - Coupon ............... $ 1,000,000.00 1.48 1,096 1,011 7.111 7.210
Miscellaneous Securities - Coupon ............ $ 7,099,529.20 10.51 946 339 6.543 6.634
TOTAL INVESTMENTS and AVERAGES ............... $ 67,580,687.52 100.00% 697 457 6.12~. 6.212%
CASH
Passbook/Checking Accounts ................... $ 0.00 0.000 0.000
(not intruded in yield caLcuLations)
Accrued Interest at Purchase ................. $ 94,906.84
TOTAL CASH ................................... $ 94,906.84
TOTAL CASH and INVESTMENTS ................... $ 67,675,594.36
~.~.~.~,_~.~.j~f-~ The City shall invest in only those investments authorized by the State of
PEGGY~A~T CHRISTINE TSUNG California under Government Code Sections 53601.1~ 53602 and 53635. Investments
shalt 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 / /
ATTACHMENT A
4 of 16 JAN 3 1 1995
01/12/1995 CITY OF POWAY PM - 2
INVESTMENT PORTFOLIO BETAILS - INVESTMENTS POWA
-- DECEMBER 31, 1994
INVESTMENT PURCHASE STATED --- YTM --- MATURITY DAYS
NUMBER ISSUER
DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
LOCAL AGENCY INVESTMENT FUNDS
040001 LAIF OITY OF POWAY 6,508,137.66 6,508,137.66 6,508,137.66 5.549 5.473 5.549 1
040002 LAIF REDEVELOPMENT AGENCY 6,404,427.39 6,404,427.39 6,404,427.39 5.549 5.4~3 5.549 1
040004 SD CNTY INVST POOL 26,807,519.82 26,BOT,519.B2 26,807,519.82' 5.690 5.612 5.690 1
SUBTOTALS and AVERAGES 39,720,084.87 39,720,084.87 59,720,084.87 5.567 5.644 1
CERTIFICATES OF DEPOSIT
01094? EAST-WEST FEDERAL BANK 09/07/94 99~000.00 99~000.00 99~000.00 6.830 6.830 6.925 09/0?/99 1~712
010948 EAST-WEST FEDERAL BANK 09/07/94 99~000.00 99,000.00 99~000.00 6.830 6.830 6.925 09/0?/99 1,712
010928 FIRST INTERSTATE -SACRAMENTO 03/04/92 99,000.00 99,000.00 99,000.00 6.300 6.300 6.388 03/04/96 430
010929 FIRST INTERSTATE -SACRAMENTO 03/04/92 99,000,00 99,000.00 99,000.00 6.300 6.300 6.388 03/04/96 430
010933 FREMONT INVESTMENT &LOAN 03/27/92 99,000.00 99~000.00 99,000.00 7.210 7.210 ?.310 03/27/9? 818
010934 FREMONT INVESTMENT &LOAN 03/31/92 99,000.00 99,000.00 99,000.00 7.060 ?.060 7.158 03/31/97 822
010926 FRANKLIN BANK 02/21/92 99,000.00 99,000.00 99,000.00 6.450 6.450 6.540 02/21/96 418
010927 FRANKLIN BANK 02/21/92 99,000.00 99,000.00 99,000.00 6.450 6.450 6.540 02/21/96 418
010939 FRANKLIN THRIFT & LOAN 07/07/92-~ 94,000.00 94,000.00 94~000.00 6.500 6.500 6.590 07/0?/97 920
010940 FRANKLIN THRIFT & LOAN 0?/0?/92 94,000.00 94~000.00 94,000.00 6.500 6.500 6.590 0?/0?/9? 920
010930 FIRST REPUBLIC THRIFT 03/10/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 03/11/96 437
010943 IMPERIAL THRIFT 08/17/92 99,000.00 99,000.00 99,000.00 6.250 6.250 6.33? 08/18/97 962
010944 IMPERIAL THRIFT 08/17/92 99,000.00 99,000.00 99,000.00 6.250 6.250 6.337 08/18/97 962
010931 RIVER CITY BANK 03/20/92 100,000.00 100~000.00 100,000.00 ?.300 7.300 ?.401 03/20/9? 811
0932 RIVER CITY BANK 03/20/92 100,000.00 100,000.00 100,000.00 7.300 7.300 ?.401 03/20/97 811
0945 SAN DIEGO FIRST BANK 03/30/94 99,000.00 99,000.00 99,000.00 6.200 6.200 6.286 03/30/99 1,551
010946 SAN DIEGO FIRST BANK 03/30/94 99,000.00 99,000.00 99,000.00 6.200 6.200 6.2B6 03/30/99 1,551
01093? SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 521
010938 SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 521
010941 TRANS PACIFIC NATIONAL BANK 08/12/92 100,000.00 100,000.00 100,000.00 6.250 6.250 6.337 08/12/97 956
010942 TRANS PACIFIO NATIONAL BANK 08/12/92 100,000.00 100,000.00 100,000.00 6.250 6.250 6.33? 08/12/97 956
010935 VALENCIA NATIONAL BANK 04/23/92 99,000.00 99,000.00 99,000.00 6.600 6.600 6.692 04/25/95 116
010936 VALENCIA NATIONAL BANK 04/23/92 99,000.00 99,000.00 99,000.00 6.600 6.600 6.692 04/25/95 116
SUBTOTALS and AVERAGES 2,271,000.00 2,271,000.00 2,271,000.00 6.5?2 6.663 820
MORTGAGE BACKED SECURITIES
080001 FED HOME LOAN MTG CORP 09/17/86 30,167.00 32,007.11 30,961.12 8.000 B.784 8.906 0B/15/06 4,246
080003 FED HOME LOAN MTG DORP 04/20/8? 92,163.80 93,865.10 93,894.20 9.000 9.137 9.264 05/01/16
081008 GNMA POOL 192832 04/20/87 607,740.35 610,794.32 589,532.57 8.000 ?.958 8.069 04/15/17 8,142
08100? GNMA POOL 2033?9 04/20/87 265~521.97 267,697.01 258,3?8.48 8.000 8.001 8.112 04/15/17 8~142
081001 GNMA POOL 13057 08/11/86 115,293.40 120,097.29 117,862.2B 8.000 8.503 8.621 08/15/06 4,246
SUBTOTALS amd AVERAGES 1,110,886.52 1,124,460.83 1,090,62B.65 8.145 8.258 7,603
TREASURY SECURITIES - COUPON
070001 US TREASURY NOTE 09/25/90 497,968.75 500,000.00 504,530.00 8.500 8.484 8.602 08/15/95 220
0?0002 US TREASURY NOTE 04/12/94 488,671.BB 500,000.00 464,530.00 5.875 6.323 6.411 03/31/99 1,552
*Market value of $23,834,995
5 of 16 JAN 3 1 1995 I']?..,~ 1/+
01/12/1995 CITY OF POWAY PM - 3
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS POWA
DECEMBER 31, 1994
INVESTMENT PURCHASE STATED --- YTM ''' MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
TREASURY SECURITIES ' COUPON
070003 US TREASURY NOTE 04/21/94 483,593.75 500,000.00 464,530.00 5.875 6.568 6.659 03/31/99 1,552
070004 US TREASURY NOTE 05/06/94 989,218.75 1,000,000.00 950,630.00 6.500 6.664 6.756 04/30/99 1,582
070005 US TREASURY NOTE 06/02/94 499,687.5D 500,000.00 479,530.00 6.750 6.672 6.765 05/31/99 1,613
070006 US TREASURY NOTE 07/12/94 494,296.88 500,000.00 479,530.00 6.750 6.927 7.024 06/30/99 1,643
070007 US TREASURY NOTE 07/12/94 499,453.13 500,000.00 486,250.00 6.500 6.453 6.543 05/15/97 867
070008 US TREASURY NOTE 08/09/94 499,765.63 500,000.00 481,405.00 6.875 6.792 6.886 07/31/99 1,674
070009 US TREASURY NOTE 08/15/94 498,984.38 500,000.00 484,845.00 6.500 6.485 6.575 08/15/97 959
070010 US TREASURY NOTE 08/15/94 498,593.75 500,000.00 481,405.00 6.875 6.847 6.942 07/31/99 1,674
070011 US TREASURY NOTE 08/15/94 498,671.88 500,000.00 484,845.00 6.500 6.508 6.599 08/15/97 959
070012 US TREASURY NOTE 09/09/94 500,156.25 500,000.00 484,845.00 6.500 6.399 6.488 08/15/97 959
070013 US TREASURY NOTE 09/13/94 498,437.50 500~OO0.O0 484,845.00 6.500 6.528 6.619 08/15/97 959
070014 US TREASURY NOTE 09/13/94 496~640.63 500,000.00 481,250.00 6.875 6.940 7.036 08/31/99 1,705
070015 US TREASURY NOTE 09/20/94 497,500.00 500,000.00 484~845.00 6.500 6.600 6.692 08/15/97 959
070016 US TREASURY NOTE 09/20/94 494,921.88 500,000.00 481,250.00 6.875 7.023 7.120 08/31/99 1,705
070017 US TREASURY NOTE 09/23/94 496,484.38 500,000.00 484,845.00 6.500 6.678 6.771 08/15/97 959
070018 US TREASURY NOTE 09/23/94 493~828.13 500,000.00 481,250.00 6.875 7.075 7.174 08/31/99 1~705
070019 US TREASURY NOTE 09/30/94 992~656.25 1,000,000.00 96%690.00 6.500 6.692 6.785 08/15/97 959
070020 US TREASURY NOTE 09/30/94 1,000,000.00 1,000,000.00 981,880.00 6.500 6.411 6.500 09/30/96 640
070021 US TREASURY NOTE 11/08/94 498,828.13 500,000.00 493,280.00 6.875 6.908 7.004 10/31/96 671
070022 US TREASURY NOTE 12/08/94 497,812.50 500,000.00 496,250.00 7.250 7.389 7.491 11/30/96 701
SUBTOTALS and AVERAGES 12,416,171.93 12,500,000.00 12,086,260.00 6.765 6.859 1,1?~
MEDIUM TERM NOTES
090022 BENEFICIAL CORPORATION 01/25/90 1,000~000.00 1,000,000.00 1,002,740.00 9.100 8.975 9.100 01/26/95 27
090032 EF HUTTON GROUP [NC 06/17/91 493,635.00 500~000.00 503~755.00 8.875 9.075 9.201 05/01/96 488
090037 FORD MOTOR CREDIT COMPANY 03/09/94 972,880.00 1,000,000.00 903,080.00 5.625 6.192 6.278 01/15/99 1,477
090027 ITT FINANCIAL CORP. 03/11/91 499,000.00 500,000.00 501,580.00 8.900 8.838 8.960 03/01/95 61
090035 PHILLIP MOBRIS 03/26/92 497,500.00 500,000.00 490,520.00 7.500 7.517 7.622 03/15/97 806
090036 TRAVELERS CORP 05/14/92 500,O00.DO 500,000.00 492,935.00 7.625 7.521 7.625 01/15/97 747
SUBTOTALS and AVERAGES 3,963,015,00 4,000,000.00 3,894,610.00 7.921 8.031 633
FEDERAL AGENCY ISSUES - COURON
061009 FED NOME LOAN MTG CORP 10/06/94 1,000,000.00 1,000,000.00 974,690.00 7.210 7.111 7.210 10/06/97 1,011
MISCELLANEOUS SECURITIES - COUPON
100011 FIDELITY GOVERNMENT SECUR FUNU 02/08/94 500,000.00 500,000.00 446,445.46 6.600 6.510 6.600 02/08/96 405
100012 FIDELITY GOVERNMENT SECUR FUND 02/09/94 1,000,000.00 1,000,000.00 891,156.46 6.587 6.497 6.587 02/09/96 406
100013 FIDELITY GOVERNMENT SEOUR FUND 02/11/94 1,000,000.00 1,000,000.00 891,156.46 6.587 6.497 6.587 02/11/96 408
100014 FIDELITY GOVERNMENT SEOUR FUND 02/22/94 500,000.00 500,000.00 450,835.79 6.665 6.574 6.665 02/22/96 419
100015 FIDELITY GOVERNMENT SEOUR FUND 02/23/94 500,000.00 500,000.00 452,169.63 6.684 6.592 6.684 02/23/96 420
100002 US GOVERNMENT FUND 10/30/87 699,529.20 699,529.20 694,921.67 8.000 7.890 8.000 10/30/95 304
100003 US GOVERNMENT FUND 07/22/93 500,000.00 500,000.00 454,972.59 6.500 6.411 6.500 07/22/95 204
100004 US GOVERNMENT FUND 38/13/93 200,000.00 200,000.00 180,155.04 6.500 6.411 6.500 08/13/95 226
JAN 3 1 1995 l~'~'~ 1~+
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INVESTMENT PORTFOLIO DETAILS - INVESTMENTS POWA
--. DECEMBER 31, 1994
INVESTMENT PURCHASE STATED --- YTM --- MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
100005 US GOVERNMENT FUND 08/24/93 250,000.00 250~000.00 224,497.68 6.500 6.411 6.500 08/24/95 237
100006 US GOVERNMENT FUND 09/10/93 300,000.00 300~000.00 267~536.45 6.200 6.115 6.200 09/10/95 254
10000? US GOVERNMENT FUND 09/28/93 500,000.00 500~000.00 446,923.07 6.250 6.164 6.250 09/28/95 272
100008 US GOVERNMENT FUND 10/08/93 400~ODO.O0 400~000.00 357,263.64 6.230 6.145 6.230 10/08/95 282
100009 US GOVERNMENT FUND 10/12/93 400~000.00 400,000.00 357,538.46 6.230 6.145 6.230 10/12/95 286
100010 US GOVERNMENT FUND 11/12/93 350,000.00 350,000.00 316~991.43 6.310 6.224 6.310 11/12/95 317
SUBTOTALS and AVERAGES 7,099,529.20 7~099,529.20 6,432,563.83 6.543 6.634 539
TOTAL INVESTMENTS and AVERAGES $ 67,580~687.52 67,715~074.90 66,469,837.35' 6.127% 6.212% 457
*Market value adjusted for San Diego
County Pool funds = $63,497,313
7 of 16 JAN 8 1 1995
01/12/1995 PM - 5
CITY OF POWAY POWA
ACCRUED INTEREST DETAILS
DECEMBER 31, 1994
MONTH ENOING FISCAL
DECEMBER 31, 1994 YEAR TO DATE
CO/Coupon/Discount Investments:
Interest Collected $ 99,385.71 $ 575,706.04
PLUS Accrued Interest at End of Period 423,918.98 423,918.98
LESS Accrued Interest at Beginning 3f Period ( 368,419.35) ( 224,019.42)
Interest Earned during Period $ 154,885.34 $ 775,605.60
Mortgage Backed Securities:
Interest Collected $ ?,617.06 $ 47,915.40
PLUS Accrued Interest at End of Period 19,968.24 19,968.24
LESS Accrued Interest at Beginning of Period ( 20,011.11) ( 20,579.90)
Interest Earned during Period $ 7,574.19 $ 47~303.74
LA[F/Passbook/Checking Accounts:
Interest Collected $ 227,712.64 $ 1,301,345.15
PLUS Accrued Interest at End of Period 8,622,6?9.?? 8,622,6?9.??
LESS Accrued Interest at Beginning of Period ( 8,667,426.02) ( 8,698,272.63)
Interest Earned during Period $ 182~966.39 $ 1,225~752.29
TOTAL Interest Earned during Period $ 345,425.92 $ 2,048,661.63
8 of 16 JAN 1 1995
CITY OF POWAY
INVESTMENT PORTFOLIO DETAILS
BOND FUNDS
DECEMBER 31,1994
SAN DIEGO COUNTY MARKET
1986 TAX ALLOCATION BOND $1,801,972.52 $1,801,972.52 $1,602,162.60 5.690'
1989 TAX ALLOCATION BOND 9,t28,767.35 9,128,767.35 8,116,533.11 5.690*
1993 TAX ALLOCATION BOND ~ ~ ~ 5.690'
TOTAL $39.581.950.19 $39.581.950.19 [~J.,J.9,2,~J.,2~
LOCAL AGENCY INVESTMENT
FUND:
1989 TAX ALLOCATION BOND $3,616,804.93 $3,616,804.93 $3,616,804.93 5.549
1990A TAX ALLOCATION BOND 327,243.63 327,243.63 327,243.63 5.549
199,1 TAX ALLOCATION BOND 46.763.58 46.763.58 46.763.58 5.549
BENHAM GOVERNMENT
AGENCY MONEY MARKET
FUND-1990A TAX ALLOCATION
BOND $99.754.7;I $99.754.?;~ $99.754.73 5.310
GRAND TOTAL ~ ~ ~
* AS OF NOVEMBER, 1994 - THE YIELD FOR ALL OF FY1994-98
IS ESTIMATED AT 4.00%.
SUMMARY BY BOND ISSUE:
1986 TAX ALLOCATION BOND $1,801,972.52 $1,801,972.52 $1,602,162.60
1989 TAX ALLOCATION BOND 12,745,572~8 12,745,572.28 11,733,338.04
1990A TAX ALLOCATION BOND 426,998.36 426,998.36 426,998.36
1993 TAX ALLOCATION BOND ~ 2,~.,.~9..7_,.~ Z~
GRAND TOTAL ~ ~ ~
ATI'ACHMENT B
0* ............. 3ND1294
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