Item 22 - City's Investment Report - ..AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana~
INITIATED BY: John D. Fitch, Assistant City Manager~T
Peggy A. Stewart, Director of Administrative Servic
Christine Tsung, Finance Manager ~
DATE: February 28, 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 January 31, 1995.
ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA guidelines.
FISCAL IMPACT
The investment portfolio earned $321,421.94 interest during January 1995.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached report.
ACTION
L
I of 11 FEB 28 1995 ITF. M 22
> AGENDA REPOR
CITY OF POWAY
This report is inctuded on the Consent Calendar. There will be no separate discussion of the report pnor 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, ptease fill out a slip indicating the report number
and give it to the City Clerk pdot 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: John D. Fitch, Assistant City~ManagerO~lq;F
Peggy A. Stewart, Director of Administrative Services
Christine Tsung, Finance Manager
DATE: February 28, 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 January 31, 1995 was $69,866,621
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 $43,496,690.
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 $986,413, U.S.
Treasury Notes purchased for $12,416,172, Federal Home Loan Mortgage Corporation
Certificates which were booked at $120,992, medium-term Corporate Notes which
were booked at $2,963,015, 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 $18,001,980, and $25,007,520 invested through the San
Diego County Investment Pool. The market value of the County Pool has gone up
0.67% since last month and is estimated at $22,336,095 at January 31, 1995. A
copy of the San Diego County Pool's Investment Portfolio as of January 31, 1995
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
ACTION:
2 of 11 FEB 2 8 1995 I'~',:M 22
Agenda Report
February 28, 1995
Page 2
rates go up, the market values of the securities go down. The difference
between book (purchase) price and current market price is considered an
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 $69,866,621; the market value adjusted for the San Diego
County Pool funds is $66,328,776 for a "paper loss" of $3,537,845, or 5% of the
total. The book value of the City's bond proceeds is $43,496,690; the market
value adjusted for the San Diego ~ounty Pool funds is $39,268,354. 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 January 1995 is
estimated at 5.612% for LAIF, and 4.87% for the County Investment Pool.
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 $321,421.94 interest during January 1995.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCF
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached reports.
JLB:MKW:PAS:CT:eg
Attachments:
A. Investment Report (Including the new computer report which lists all
the investments for the City. It is summarized by type of investment
and lists market value and maturity dates for all investments
including those with maturity dates in excess of 12 months.}
B. A schedule detailing the investments for the bond issues managed by
the City.
C. San Diego County Pool's Investment Portfolio as of
January 31, 1995.
FEB 28 '1995 DF~M 22 ~
3 of 11
02/03/1995 PM - 1
CITY OF POWAY POWA
PORTFOLIO MASTER SUMMARY
JANUARY 31~ 1995
AVERAGE ---YIELD TO MATURLTY---
PERCENT OF AVERAGE DAYS TO 360 365
INVESTMENTS BOOK VALUE PORTFOLIO TERM MATURITY EQUIVALENT EQUIVALENT
Local Agency Investment Furx:f$ ................ $ 43,009,500.16 61.56 I 1 5.110 5.181
Certificates of Deposit ...................... $ 2,271,000.00 3.25 1,651 ?89 6.572 6.663
Mortgage Backed Securities ................... $ 1,107,404.95 1.59 10,448 7,5?4 8.144 8.257
Treasury Securities - Coupon ................. $ 12,416,171.93 17.77 1,367 1,144 6.765 6.859
Medium Term Notes ............................ $ 2,963,015.00 4.24 1,716 807 7.565 7.670
Federal Agency Issues - Coupon ............... $ 1,000,000.00 1.43 1,096 980 7.111 7.210
Miscellaneous Securities - Coupon ............ $ 7,099,529.20 10.16 946 308 6.543 6.634
TOTAL INVESTMENTS and AVERAGES ............... $ 69,866,621.24 100.00% 647 429 5.778% 5.858%
CASH
Passbook/Checking Accounts ................... $ 0.00 0.000 0.000
(not included in yield calculations)
Accrued Interest at Purchase ................. $ 94,906.84
TOTAL CASH ................................... $ 94~906.84
TOTAL CASH arx~ INVESTMENTS ................... $ 69,961,528.08
PEGGY ~T~RT CBRISTINE 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
~,,//o//~ following items in order of priority; 1. Safety; 2. Liquidity; 3. Yield.
DATE
FEB g8 t995 ITEM 22
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02/03/1995 CITY OF POWAY PM - 2
iNVESTMENT PORTFOLIO DETAILS * INVESTMENTS POWA
JANUARY 31, 1995
~VESTMENT PURCHASE STATED --- YTM --- MATURITY OAYS
NUMBER ISSUER
CATE ROOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
LOCAL AGENCY INVESTMENT FUNDS
040001 LAIF CITY OF POWAY 8,880,288.28 8,880,288.28 8,880,288.28 5.612 5.535 5.612 1
040002 LAIF REDEVELOPMENT AGENCY 9,121,692o06 9,121,692.06 9,121,692.06 5.612 5.535 5.612 1
040004 SD CNTY [NVST POOL 25,007,519.82 25,007,519.82 25,007,519.82'4.870 4.803 4.870 I
SUBTOTALS and AVERAGES 43,009,500.16 43,009,500.16 43,009,500.16 5.110 5.181 1
CERTIFICATES OF DEPOSIT
010947 EAST-WEST FEDERAL BANK 09/07/94 99,000.00 99,000.00 99,000.00 6.830 6.830 6.925 09/07/99 1,681
010948 EAST-WEST FEDERAL BANK 09/07/94 99,000.00 9%000.00 99,000.00 6.830 6.830 6.925 09/07/99 1,681
010928 FIRST INTERSTATE -SACRAMENTO 03/04/92 99,000.00 99,000.00 99,000.00 6.300 6.300 6.388 03/04/96 399
010929 FIRST INTERSTATE -SACRAMENTO 03/04/92 99,000.00 99,000.00 99,000.00 6.300 6.300 6.388 03/04/96 399
010933 FREMONT INVESTMENT &LOAN 03/27/92 9%000.00 99,000.00 99,000.00 7.210 7.210 7.310 03/27/97 787
010934 FREMONT INVESTMENT &LOAN 03/31/92 99,000°00 99,000.00 99,000.00 7.060 7.060 7.158 03/31/97 791
010926 FRANKLIN BANK 02/21/92 9%000.00 9%000.00 9%000.00 6.450 6.450 6.540 02/21/96 387
010927 FRANKLIN BANK 02/21/92 99,000.00 99,000.00 99,000.00 6.450 6.450 6.540 02/21/96 387
010939 FRANKLIN THRIFT & LOAN 07/07/92 94,000.00 94,000.00 94,000.00 6.500 6.500 6.590 07/07/97 889
010940 FRANKLIN THRIFT & LOAN 0?/07/92 94,000.00 94,000.00 94,000.00 6.500 6.500 6.590 07/07/97 889
010930 FIRST REPUBLIC THRIFT 03/10/92 99,000.00 9%000.00 9%000.00 6.500 6.500 6.590 03/11/96 406
010943 IMPERIAL THRIFT 08/17/92 99,000.00 99,000.00 9%000.00 6.250 6.250 6.337 08/18/97 931
010944 IMPERIAL THRIFT 08/17/92 99,000.00 99,000.00 99,000.00 6.250 6.250 6.337 08/18/97 931
010931 RIVER CITY BANK 03/20/92 I00,000.00 100,000.00 100,000.00 ?.300 7.300 7.401 03/20/97 ?80
010932 RIVER CITY BANK 03/20/92 100,000.00 100,000.00 100,000.00 7.300 7.300 7.401 03/20/97 780
010945 SAN DIEGO FIRST BANK 03/30/94 99,000.00 99,000.00 99,000.00 6.200 6.200 5.286 03/30/99 1,520
010946 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 1,520
--'937 SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 490
)38 SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 490
010941 TRANS PACIFIC NATIONAL BANK 08/12/92 100,000.00 100,000.00 100,000.00 6.250 6.250 6.337 08/12/97 925
010942 TRANS PACIFIC NATIONAL BANK 08/12/92 100,000.00 100,000.00 100,000.00 6.250 6.250 6.337 08/12/97 925
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 85
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 85
SUBTOTALS and AVERAGES 2,271,0D0.00 2,271,000.00 2,271,000.00 6.572 6.663 789
MORTGAGE BACKED SECURITIES
080001 FED HOME LOAN MTG CORP 09/17/86 2%773.50 31,589.61 30,557.26 8.000 8.784 8.906 08/15/06 4,215
080003 FED HOME LOAN MTG CORP 04/20/87 91,218.64 92,902.50 92,931.30 9.000 9.137 9.264 05/01/16 7,762
081008 GNMA POOL 192832 04/20/87 606,722.20 609,771.06 588,544.93 8.000 ?.958 8.069 04/15/17 8,111
081007 GNMA POOL 203379 04/20/87 265,124.61 267,296.39 257,991.80 8.000 8.001 8.112 04/15/17 8,111
081001 GNMA POOL 13057 08/11/86 114,566.00 119,339.58 117,118.67 8.000 8.503 8.621 08/15/06 4,215
SUBTOTALS and AVERAGES 1,107,404.95 1,I20,899.14 1,087,143.96 8.144 8.257 7,5?4
TREASURY SEOUR1T[ES - COUPON
070001 US TREASURY NOTE 09/25/90 497~968.75 5001000.00 5051000.00 8.500 8.484 8.602 08/15/95 197
070002 US TREASURY NOTE 04/12/94 488,671.88 500~000.00 470,780.00 5.875 6.323 6.411 03/31/99 1,521
*Market value of $22,336,095
FEB g 8 1995 ITEM 22 . ~
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02/03/1995 CITY OF POgAY PM - 3
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS POWA
JANUARY 31, 1995
INVESTMENT PURCHASE STATED ''' YTM -'' MATURITY DAli
NUMBER ISSUER
DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 OATE TO MAT
TREASURY SECURITIES - COUPON
070003 US TREASURY NOTE 04/21/94 483,593.75 500,000.00 470,780.00 5.875 6.568 6.659 03/31/99 1,521
070004 US TREASURY NOTE 05/06/94 989,218.75 1,000,O00.go 962,500.00 6.500 6.664 6.756 04/30/99 1,551
070005 US TREASURY NOTE 06/02/94 499,687.50 500,000.00 485,315.00 6.750 6.672 6.765 05/31/99 1,582
070006 US TREASURY NOTE 07/12/94 494,296.88 500,000.00 485,155.0D 6.750 6.927 7.024 06/30/99 1,612
070007 US TREASURY NOTE 07/12/94 499,453.13 50O,O00.O0 491,250.00 6.500 6.453 6.543 05/15/97 836
070008 US TREASURY NOTE 08/09/94 499,765.63 500,000.00 487,190.00 6.875 6.792 6.886 07/31/99 1,643
070009 US TREASURY NOTE 08/15/94 498,984.38 500,000.00 490,155.00 6.500 6.485 6.575 08/15/97 928
070010 US TREASURY NOTE 08/15/94 498,593.75 500,000.00 487,190.00 6.875 6.847 6.942 07/31/99 1,643
070011 US TREASURY NOTE 08/15/94 498,671.88 500,000.00 490,155.00 6.500 6.508 6.599 08/15/97 928
070012 US TREASURY NOTE 09/09/94 500,156.25 500,000.00 490,155.00 6.500 6.399 6.488 08/15/97 928
070013 US TREASURY NOTE 09/13/94 498,437.50 500,000.00 490,155.D0 6.500 6.528 6.619 08/15/97 928
070014 US TREASURY NOTE 09/13/94 496,640.63 500,000.00 487,190.00 6.875 6.940 7.036 08/31/99 1,674
070015 US TREASURY NOTE 09/20/94 497,500.00 500,000.00 490,155.00 6.500 6.600 6.692 08/15/97 928
070016 US TREASURY NOTE 09/20/94 494,921.88 500,000.00 487,190.00 6.875 7.023 7.120 08/31/99 1,674
070017 US TREASURY NOTE 09/23/94 496,484.38 500,000.00 490,155.00 6.5D0 6.678 6.771 08/15/97 928
070018 US TREASURY NOTE 09/23/94 493,828.I3 500,000.00 487,190.00 6.875 7.075 7.174 08/31/99 1,674
070019 US TREASURY NOTE 09/30/94 992,656.25 1,000,000.00 980,310.00 6.500 6.692 6.785 08/15/97 928
070020 US TREASURY NOTE 09/30/94 1,000,000.00 1,000,000.00 989,380.00 6.500 6.411 6.500 09/30/96 609
070021 US TREASURY NOTE 11/08/94 498,828.13 500,000.00 497,190.00 6.875 6.908 7.004 10/31/96 640
070022 US TREASURY NOTE 12/08/94 497,812.50 500,000.00 500,155.00 7.250 7.389 7.491 11/30/96 670
SUBTOTALS an~ AVERAGES 12,416,171.93 12,500,000.00 12,214,695.00 6.765 6.859 1,144
MEDIUM TERM NOTES
090032 EF HUTTON GROUP IND 06/17/91 493,635.00 500,000.00 505,940.00 8.875 9.075 9.201 05/01/96
090037 FORD MOTOR CREDIT COMPANY 03/09/94 972,880.00 1,000,000.00 915,000.00 5.625 6.192 6.278 01/15/99
090027 ITT FINANCIAL CORP. 03/11/91 499,000.00 500,000.00 500,725.00 8.900 8.838 8.960 03/01/95 30
090035 PHILLIP MORRIS 03/26/92 497,500.00 500,000.00 495,395.00 7.500 7.517 7.622 03/15/97 775
090036 TRAVELERS CDRP 05/14/92 500,000.00 500,000.00 495,865.00 7.625 7.521 7.625 01/15/97 716
SUBTOTALS and AVERAGES 2,963,015.00 3,000,000.00 2,912,925.00 7.565 7.670 807
FEDERAL AGENCY ISSUES - COUPON
061009 FED HOME LOAN MTG CORP 10/06/94 l~O001000.O0 1~000,000.00 985,940.00 7.210 7.111 7.210 10/06/97 980
MISCELLANEOUS SECURITIES ' COUPON
100011 FIDELITY GOVERNMENT SECUR FUND 02/08/94 500,000.00 500,000.00 452,288.22 6.600 6.510 6.600 02/08/96 374
100012 FIDELITY GOVERNMENT SECUR FUND 02/09/94 1,000,000.00 1,000,000.00 902,818.27 6.587 6.497 6.587 02/09/96 375
100013 FIDELITY GOVERNMENT BECUR FUND 02/11/94 ls000~000.00 1,000,000.00 902,818.27 6.587 6.497 6.587 02/11/96 377
100014 FIDELITY GOVERNMENT SECUR FUND 02/22/94 500~000.00 500s000.00 456,735.49 6.665 6.574 6.665 02/22/96 388
100015 FIDELITY GOVERNMENT SECUR FUND 02/23/94 500,000.00 500,000.00 458,086.79 6.684 6.592 6.684 02/23/96 309
100002 US GOVERNMENT FUND 10/30/87 699,529.20 699,529.20 704,490.30 8.000 7.890 8.000 10/30/95 273
100003 US GOVERNMENT FUND 07/22/93 500,000.00 500,000.00 461,237.28 6.500 6.411 6.500 07/22/95 173
100004 US GOVERNMENT FUND 08/13/93 200,000.00 200,000.00 182,635.66 6.500 6.411 6.500 08/13/95 195
100005 US GOVERNMENT FUND 08/24/93 250~000.00 250,000.00 227,588.87 6.500 6.411 6.500 08/24/95 206
6 of 11 FEB 081995 I'~'~.~j 22 I
02/03/1995 CITY OF POWAY PM - 4
INVESTMENT PORTFOL]O DETAILS - INVESTMENTS POWA
JANUARY 31, 1995
~VESTMENT PURCHASE STATED '-- YTM '-- MATURITY DAYS
NUMBER ISSUER
DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
MISCELLANEOUS SECURITIES - COUPON
100006 US GOVERNMENT FUND 09/10/93 300,000.00 300,000.00 271,220.26 6.200 6.115 6.200 09/10/95 223
100007 US GOVERNMENT FUND 09/28/93 500,000.00 500,000.00 453,076.92 6.250 6.164 6.250 09/28/95 241
100008 US GOVERNMENT FUND 10/08/93 400,000.00 400,000.00 362,182.93 6.230 6.145 6.230 10/08/95 251
100009 US GOVERNMENT FUND 10/12/93 400,000.00 400,000.00 362,461.54 6.230 6.145 6.230 10/12/95 255
100010 US GOVERNMENT FUND 11/12/93 350,000.00 350,000.00 321,356.20 6.310 6.224 6.310 11/12/95 286
SUBTOTALS and AVERAGES ?,099,529.20 7,099,529.20 6,518,997.00 6.543 6.634 308
TOTAL INVESTMENTS and AVERAGES $ 69,866,621.24 70,000,928.50 69,000,201.12' 5.778% 5.858% 429
*Market value adjusted for San Diego
County Pool funds = $66,328,776
7 of 11 FEB 38 1995 22 I
02/03/1995
PM - 5
CITY OF POP,AY
ACCRUED INTEREST DETAILS
JANUARY 31, 1995
MONTH ENDING FISCAL
JANUARY 31, 1995 YEAR FO DATE
Interest DoLJected $ 158,056.32 $ 733,762.36
PLUS Accrued Interest at End of Period 420,226.88 420,226.88
LESS Accruc~:l Interest at Beginning of Period ( 423,918.98) ( 224,019.42)
Interest Earned during Period $ 154,364.22 $ 929,969.82
Interest Collected S 7,574.63 $ 55,490.03
PLUS Accrued Interest at End of Period 19,942.8~ 19,942.88
LESS Accrued Interest at Beginning of Period ( 19,967.86) ( 20,579.90)
Interest Earned during Period $ 7,549.65 $ 54,853.01
LAIF/Passbook/Checking Accounts:
PLUS Accrued Interest 8t End of Peliod 8,522,533.84 8,522,533.84
LESS Accrued Interest at Beginning of Period ( 8,402,441.06) ( 8,698,272.63)
Interest Earned during Period $ 159,508.07 $ 1,165,021.65
TOTAL Interest Earned during Period $ 321,421.94 $ 2,149,844.48
FEB 28 7 o9S IT, ll 22
8 of ll
CITY OF POWA~
INVESTMENT PORTFOLIO DETAILS
BOND FUNDS
JANUARY 31,1995
SAN DIEGO COUNTY MARKET
1986 TAX ALLOCATION BOND $1,801,972.52 $1,801,972.52 $1,609,477.07 4.870
1989 TAX ALLOCATION BONO 9.128,767.35 9,128,767.35 8,153,588.14 4.870
1993 TAX ALLOCATION BOND 8~,~Z~5_1~lD~3~ 82~6~5_l~1_~ 25.590.549.06 4.870
TOTAL $39.581.950,19 $39.581.950.19 ~
LOCAL AGENCY INVESTMENT
FUND:
1989 TAX ALLOCATION BOND $3,435,928.96 $3,435,928.96 $3,435,928.96 5.612
1990A TAX ALLOCATION BONO 331,664.10 331,664.10 331,664.10 5.612
1993 TAX ALLOCATION BOND 47.391.87 47.391.87 47.391.87 5.612
TOTAL $3.814.984.9~1 $3.814.984.9~1 $3.814.984.93
BENHAM GOVERNMENT
AGENCY MONEY MARKET
FUND-1990A TAX ALLOCATION
BOND $99.754.73 $99.754.7~1 $99.754.73 5.539
GRAND TOTAL ~ ~l.~9~,~l~[l~ ~
SUMMARY BY BOND ISSUE:
1986 TAX ALLOCATION BOND $1,801,972.52 $1,801,972.52 $1,609,477.07
1989 TAX ALLOCATION BOND 12,564,696.31 12,564,696.31 11,589,517.10
1990A TAX ALLOCATION BOND 431,418.83 431,418.83 431,418.83
1993 TAX ALLOCATION BOND ~ ~ 25.637.940.93
GRAND TOTAL $43.496.689.8.~ ~ ~
ATFACHMENT B
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9 of 11 FEB 2 8 1995 r'~.~./I 22
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