Item 14 - City's Investment Report ._~AGENDA REPORT SUq~I,MARY ._~
.0: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana]~
INITIATED ]BY: John D. Fitch, Assistant City Manager
Peggy A. Stewart, Director of Administrative Servicek~
Christine Tsun9, Finance Manager C~q/W
DATE: March 28, 1995
SUBJECT: City's Investment Report
ABSTIIACT
Monthly reports of investments are required to be presented to Council. For your
information, attached is an investment portfolio listing as of February 28, 1995.
E NAqRONMEN~rALRESqESY
Environmental review is not required for this agenda item according to CEQA guidelines.
FISCAL IMPACT
The investment portfolio earned $306,871.89 interest during February 1995.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPQNDENCE
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached report.
ACTION
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~AR 2 8 1995 ITEM
-- AGENDA REPORr.
CITY OF POWAY
This report is included on ~e 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 puiled for discussion, please flu out a slip indicating the report number
and give it to the Ciby Clerk pbor to the beginning o[ the Ciby Council meeting.
TO: Honorable Mayor and Members of the City Council
James L. Bowersox, City Man~
FROM:
INITIATED BY: John D. Fitch, Assistant City Manager
Peggy A. Stewart, Director of Administrative Services
Christine Tsung, Finance Manager
DATE: March 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 February 28, 1995 was
$68,284,237 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 $42,711,690.
The general operating reserves investment portfolio consisted of Time
Certificates of Deposits (TCDs) which totaled $2,667,000, Government National
Mortgage Association Certificates {GNMAs) which were booked at $984,254, U.S.
Treasury Notes. purchased for $12,416,172, Federal Home Loan Mortgage Corporation
Certificates which were booked at $119,767, 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 $18,401,980, and $22,632,520 invested through the
San Diego County Investment Pool. The market value of the County Pool has gone
up 1.3% and is estimated at $20,525,049 at February 28, 1995. A recap of the
San Diego County Pool's Investment Portfolio as of February 28, 1995 is
attached.
lACTION:
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Agenda Report
March 28, 1995
Page 2
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
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 $68,284,237; the market value adjusted for the San Diego
County Pool funds is $65,641,626 for a "paper loss" of $2,642,611, or 4% of the
total. The book value of the City's bond proceeds is $42,711,690; the market
value adjusted for the San Diego County Pool funds is $39,099,036. 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 February 1995 is
estimated at 5.781% for LAIF, and 4.78% for the County Investment Pool.
The TCDs are at 14 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 $306,871.89 interest during February 1995.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None
RECOMMENDATION
It is recommended that the City Council accept and file the attached reports.
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
- February 28, 1995.
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CITY OF PO!4AY POWA
PORTFOLIO MASTER SUMMARY
FEBRUARY 28, 1~5
AVERAGE '''YIELD TO MATURITY---
PERCENT OF AVERAGE DAYS TO 360 365
INVESTMENTS BOOK VALUE PORTFOLIO TERM MATURITY EQUIVALENT EQUIVALENT
Local Agency Investment Funds ................ $ 41,034,500.16 60.09 1 I 5.157 5.229
Certificates of Deposit ...................... $ 2,667,000.00 3.91 1,451 689 6.609 6.701
Mortgage Backed Securities ................... $ 1,104,020.40 1.62 10,451 7,549 8.143 8.256
Treasury Securities - Coupon ................. $ 12,416,171.93 18.18 1,367 1,116 6.765 6.859
Medium Term Notes ............................ $ 2,963,015.00 4.34 1,716 779 7.565 7.670
Federal Agency Issues - Coupon ............... $ 1,000,000.00 1.46 1,096 952 7.111 7.210
Miscellaneous Securities - Coupon ............ $ 7,099,529.20 10.40 946 280 6.543 6.634
TOTAL INVESTMENTS and AVERAGES ............... $ ~,284,236.69 100.00~ 6~Y+ 429 5.832% 5.913%
CASH
Passpook/¢hecking Accounts ................... $ 0.00 0.000 0.000
(not inc[kx~ed in yield calculations)
Accrued Interest at Purchase ................. $ 94,906.84
TOTAL CASH ................................... $ 94,906.84
TOTAL CASH and INVESTMENTS ................... $ 6~,379f143.53
~.~ ',.~z~J~l/~ ~l'"a The City shall invest in only those investments authorized by the State of
PEGG~ ~fEWART CHRISTINE TSUNG California under Government Cede Sections 53601.1, 53602 and 53635. Investn~nts
shall be made using the prudent man theory with consideration given to the
..I//-~/~J' following it~ in order of priority; 1. Safety; 2, Liquidity; 3. Yield.
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iNVESTMENT PORTFOLIO DETAILS * INVESTMENTS PQWA
FEBRUARY 28, 1995
STMENT PURCHASE STATED '-' YTM '" MATURITY DAYS
,UMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
LOCAL AGENCY INVESTMENT FUNDS
040001 LAIF CITY OF POWAY 9,030,28~.28 9,030,2~.28 9,030,28~.28 5.781 5.702 5.781 1
040002 LAIF REDEVELOPMENT AGENCY 9,371,692.06 9,371,692.06 9,371,692.06 5.781 5.702 5.781 1
040004 SD CNTY [NVST POOL 22,632,519.82 22,632,519.82 22,632,519.8~ 4.780 4.715 4.780 1
SUBTOTALS and AVERAGES 41,034,500.16 41,034,500.16 41,034,500.16 5.157 5.229 1
CERTIFICATES OF DEPOSIT
010947 EAST-WEST FEDERAL HANK 09/07/94 99,000.00 99,000.00 99,000.00 6.830 6.830 6.925 09/07/99 1,653
010948 EAST-WEST FEDERAL HANK 09/07/94 99,000.00 99,000.00 99,000.00 6.830 6.830 6.925 09/07/99 1,653
010928 FIRST INTERSTATE 'SACRAMENTO 03/04/92 99,000.00 99,000.00 99,000.00 6.300 6.300 6.388 03/04/96 371
010929 FIRST INTERSTATE -SACRAMENTO 03/04/92 99,000.00 99,000.00 99,000.00 6.300 6.300 6.388 03/04/96 371
010951 FIRST NATIONAL BANK OF MARIN 02/02/95 99,000.00 99,000.00 99,000.00 7.150 7.150 7.249 01/29/96 336
010952 FIRST NATIONAL SANK OF MARIN 02/02/95 99,000.00 99,000.00 99,000.00 7.150 7.150 7.249 01/29/96 336
010933 FREMONT INVESTMENT &LOAN 03/27/92 99,000.00 99,000.00 99,000.00 7.210 7.210 7.310 03/27/97 759
010934 FREMONT INVESTMENT &LOAN 03/31/92 99,000.00 99,000.00 99,000.00 7.060 7.060 7.158 03/31/97 763
010926 FRANKLIN BANK 02/21/92 99,000.00 99,000.00 99,000.00 6.450 6.450 6.540 02/21/96 359
010927 FRANKLIN BANK 02/21/92 99,000.00 99,000.00 99,000.00 6.450 6.450 6.540 02/21/96 359
010939 FRANKLIN THRIFT & LOAN 07/07/92 94,000.00 94,000.00 94,000.00 6.500 6.500 6.590 07/07/97 861
010940 FRANKLIN THRIFT & LOAN 07/07/92 94,000.00 94,000.00 94,000.00 6.500 6.500 6.590 07/07/97 861
010930 FIRST REPUBLIC THRIFT 03/10/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 03/11/96 378
010949 GREAT WESTERN BANK 02/01/95 99,000.00 99,000.00 99,000.00 6.500 6.S00 6.590 09/29/95 214
010950 GREAT WEHTERN BANK 02/01/95 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 09/29/95 214
010943 IMPERIAL THRIFT 08/17/92 99,000.00 99,000.00 99,000.00 6.250 6.250 6.337 08/18/97 903
010944 IMPERIAL THRIFT 08/17/92 99,000.00 99,000.00 99,000.00 6.250 6.250 6.337 08/18/97 903
~10931 RIVER CITY SANK 03/20/92 100,000.00 100,000.00 100,000.00 7.300 7.300 7.401 03/20/97 752
932 RIVER CITY BANK 03/20/92 100,000.00 100,000.00 100,000.00 7.300 7.300 7.401 03/20/97 752
v,d945 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 1,492
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 1,492
010937 SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 462
010938 SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 462
010941 TRAMS PACIFIC NATIONAL SANK 08/12/92 100,000.00 100,000.00 100,000.00 6.250 6.250 6.337 08/12/97 897
010942 TRAMS PACIFIC NATIONAL HANK 08/12/92 100,000.00 100,000.00 100,000.00 6.250 6.250 6.337 08/12/97 897
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 57
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 57
SUBTOTALS and AVERAGES 2,667,000.00 2,667,000.00 2,667,000.00 6.609 6.701 689
MORTGAGE BACKED SECURITIES
080001 FED HOHE LOAN MTG CORP 09/17/86 29,391.38 31,184.18 30,530.25 8.000 8.784 8.906 08/15/06 4,187
080003 FED HONE LOAN MTG CORP 04/20/87 90,375.60 92,D45.90 92,922.00 9.000 9.137 9.264 05/01/16 7,734
081008 GNMA POOL 1928~2 04/20/87 605,7'57.76 608,781.67 595,857.24 8.000 7.958 8.069 04/15/17 8,083
081007 GNMA POOL 203379 04/20/8? 264,712.62 266,881.03 261,215.15 8.000 8.001 8.112 04/15/17 8,083
081001 GNMA POOL 13057 08/11/86 113,803.04 118,544.83 117,468.44 8.000 8.503 8.621 08/15/06 4,187
SUBTOTALS and AVERAGES 1,104,020.40 1,117,435.61 1,097,993.08 8.143 8.256 7,549
*Market value of $20,525,049
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INVESTMENT PORTFOLIO DETAILS - INVESTMENTS POmA
FEBRUARY 28, 1995
INVESTMENT PURCHASE STATED ''' YTM ''' MATURITY C
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
TREASURY SECURITIES ' COUPON
070001 US TREASURY NOTE 09/25/90 497,968.75 500,000.00 505,315.00 8.500 8.484 8.602 08/15/95 169
070002 US TREASURY NOTE 04/12/94 488,671.88 500,000.00 479,375.00 5.875 6.323 6.411 03/31/99 1,493
070003 US TREASURY NOTE 04/21/94 483,593.75 SO0,O00.O0 479,375.00 5.875 6.568 6.659 03/31/99 1,493
070004 US TREASURY NOTE 05/06/94 989,218.75 1,000,000.00 979,690.00 6.500 6.664 6.756 04/30/99 1,523
070005 US TREASURY NOTE 06/02/94 499,687.50 500,000.00 494,065.00 6.750 6.672 6.765 05/31/99 1,554
070006 US TREASURY NOTE 07/12/94 494,296.88 500,000.00 494~065.00 6.750 6.927 7.024 06/30/99 1,584
070007 US TREASURY NOTE 07/12/94 499,453.13 500,000.00 496,405.00 6.500 6.453 6.543 05/15/97 808
070008 US TREASURY NOTE 08/09/94 499,765.63 500,000.00 496,095.00 6.875 6.792 6.8~6 07/31/99 1,615
070009 US TREASURY NOTE 08/15/94 498,984.38 500,000.00 495,940.00 6.500 6.485 6.575 08/15/97 900
070010 US TREASURY NOTE 08/15/94 498,595.75 500,000.00 496,095.00 6.875 6.847 6.942 07/31/99 lf615
070011 US TREASURY NOTE 08/15/94 498~671.88 500,000.00 495,940.00 6.500 6.508 6.599 08/15/97 900
070012 US TREASURY NOTE 09/09/94 500,156.25 500,000.00 495,940.00 6.500 6.399 6.488 08/15/97 900
070013 US TREASURY NOTE 09/13/94 498,437.50 500,000.00 495,940.00 6.500 6.528 6.619 08/15/97 900
070014 US TREASURY NOTE 09/13/94 496,640.63 500,000.00 496~095.00 6.875 6.940 7.036 08/31/99 1,646
070015 US TREASURY NOTE 09/20/94 497,500.00 500,000.00 495,940.00 6.500 6.600 6.692 08/15/97 900
070016 US TREASURY NOTE 09/20/94 494,921.88 500,000.00 496,D95.00 6.875 7.023 7.120 08/31/99 1,646
070017 US TREASURY MOTE 09/23/94 496,484.38 500,000.00 495f940.00 6.500 6.678 6.771 08/15/97 900
070018 US TREASURY NOTE 09/23/94 493,828.13 500,000.00 496,095.00 6.875 7.075 7.174 08/31/99 1,646
070019 US TREASURY NOTE 09/30/94 992,656.25 1,000,000.00 991,880.00 6.500 6.692 6.785 08/15/97 900
070020 US TREASURY NOTE 09/30/94 1,000,000.00 1,000,000.00 996,880.00 6.500 6.411 6.500 09/30/96 581
070021 US TREASURY NOTE 11/08/94 498,828.15 500,000.00 501,095.00 6.875 6.908 7.004 10/31/96 612
070022 US TREASURY NOTE 12/08/94 497,812.50 500,000.00 503,905.00 7.250 7.389 7.491 11/30/96 642
SUBTOTALS and AVERAGES 12,416,171.93 12,500,000.00 12,378,165.00 6.765 6.859 1,116
MED[UM TERM MOTES
090032 EF MUTTON GROUP INC 06/17/91 493,635.00 500,000.00 507,985.00 5.875 9.075 9.201 05/01/96 429
090037 FORD MOTOR CREDIT COMPANY 03/09/94 972,880.00 1,000,000.00 932,190.00 5.625 6.192 6.278 01/15/99 1,418
090027 ITT FINANCIAL CORP. 03/11/91 499,000.00 500,000.00 500,000.00 8.900 8.838 8.960 03/01/95 2
090035 PHILLIP MORRIS 03/26/92 497~500.00 500,000.00 500,405.00 7.500 7.517 7.622 03/15/97 747
090036 TRAVELERS CORP 05/14/92 500,000.00 500,000.00 499,800.00 7.625 7.521 7.625 01/15/97 688
SUBTOTALS and AVERAGES 2,963,015.00 3,000,000.00 2,940,380.00 7.565 7.670 779
FEDERAL AGENCY ISSUES - COUPON
061009 FED HOME LOAN MTG CORP 10/06/94 1,000,000.00 1,000,000.00 997,190.00 7.210 7.111 7.210 10/06/97 952
MISCELLANEOUS SECURITIES ' COUPON
100011 FIDELITY GOVERNMENT SECUR FUND 02/08/94 500,000.00 500~000.00 460~564.75 6.600 6.510 6.600 02/08/96 546
100012 FIDELITY GOVERNMENT SECUR FUND 02/09/94 1,000,000.00 1,000,000.00 919,559.17 6.587 6.497 6.587 02/09/96 547
100013 FIDELITY GOVERNMENT SECUR FUND 02/11/94 1,000,000.00 1,000,000.00 919,339.17 6.587 6.497 6.587 02/11/96 349
100014 FIDELITY GOVERNMENT BECUR FUND 02/22/94 500,000.00 500,000.00 465,095.41 6.665 6.574 6.665 02/22/96 360
100015 FIDELITY GOVERNMENT BECUR FUND 02/23/94 500,000.00 500,000.00 466,469.43 6.684 6.592 6.684 02/23/96 561
100002 US GOVERNMENT FUND 10/30/87 699~529.20 699,529.20 716,451.08 8.000 7.890 8.000 10/30/95 245
100003 US GOVERNMENT FUND 07/22/95 500,000.00 500,000.00 469,068.13 6.500 6.411 6.500 07/22/95 145
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INVESTMENT PORTFOLIO DETAILS - INVESTMENTS POWA
FEBRUARY 28, 1995
STMENT PURCHASE STATED --- YTM --- MATURITY DAYS
NUMSER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 260 365 DATE TO MAT
MZ$CELLANEC[JS SECURITZES ' COUPO#
100004 US GOVERNMENT FUND 08/13/9] 200,000.00 200,000.00 185,T56.43 6.500 6.411 6.500 08/13/95 167
100005 US GOVERNMENT FURD 08/24/9] 250,000.00 250,000.00 231,452.86 6.500 6.411 6.500 08/24/95 178
100006 US GOVERNMENT FUND 09/10/9] 300,000.00 500,000.00 275,825.02 6.200 6.115 6.200 09/10/95 195
100007 US GOVERNMENT FUND 09/28/93 500°000.00 500,000.00 460,769.23 6.250 6.164 6.250 09/28/95 213
100008 US GOVERNMENT FUND 10/08/93 400°000.00 400,000.00 ]6~,332.05 6.230 6.145 6.230 10/08/95 223
100009 US GOVERNMENT FUND 10/12/9] 400°000.00 400,000.00 36~,615.39 6.230 6.145 6.230 10/12/95 227
100010 US GOVERNMENT FUNO 11/12/93 350,000.00 350,000.00 ]26,812.16 6.310 6.224 6.]10 11/12/95 258
SUBTOTALS and AVERAGES ?,099,529.20 7,099o529.20 6,6]3,868.28 6.54] 6.634 280
TOTAL INVESTMENTS and AVERAGES $ 68,284,216.69 68,418,464.97 67,749,096.52* 5.832% 5.913% 429
*Market value adjusted for San Diego
County Pool funds = $65,641,626
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CITY OF PO~JAY POmA
ACCRUED INTEREST DETAILS
FEBRUARY 28, 1995
MONTB ENDING FISCAL
FEBRUARY 28, 1995 YEAR TO DATE
CD/Coupon/Discount Investments:
Interest Collected $ 252,803.47 $ 986,565.83
PLUS Accrued Interest at Eed of Period 305,838.50 305,838.50
LESS Accrued Interest at Beginning of Retied ( 420,226.~) ( 224,019.42)
Interest Earned during Period $ 138,415.09 $ 1,068,384.91
Mortgage Backed Securities:
Interest Collected $ 7,550.09 $ 63,040.12
PLUS Accrued Interest at End of Peried 19,918.26 19f918.26
LESS Accrued Interest at Beginning of Period ( 19,942.52) ( 20,579.90)
Interest Earned during Peried $ 7,525.83 $ 62,378.48
LAIF/Passbook/Checking Accounts:
Interest Collected $ 0.00 $ 1,340,760.44
PLUS Accrued Interest at End of Period 8,683,464.81 8,683,464.81
LESS Accrued Interest at Beginning of Perind ( 8,522,533.84) ( 8,698,272.63)
Interest Earned during Retied $ 160~930.97 $ 1,325,952.62
TOTAL interest Earned during Period $ 306~871.89 $ 2,456,716.01
of [o IAR 28 1995
CITY OF POWAY
INVESTMENT PORTFOLIO ~6TAILS
BOND FUNDS
FEBRUARY 28,1995
SAN DIEGO COUNTY MARKET
1986 TAX ALLOCATION BOND $1,801,972.52 $1,801,972.5.2 $1,634,178.34 4.780
1989 TAX ALLOCATION BOND 8,853,767.35 8,853,767.35 8,029,331.56 4.780
1993 TAX ALLOCATION BOND ~ ~ 28.520.786.71 4.780
TOTAL $38.796.950.19 $38.796.950.19 35 8~,_1_~
LOCAL AGENCY INVESTMENT
FUND:
1989 TAX ALLOCATION BOND $3,435,928.96 $3,435,928.96 $3,435,928.96 5.781
1990A TAX ALLOCATION BOND 331,664.10 331,664.10 331,664.10 5.781
1993 TAX ALLOCATION BOND 47.391.87 47.391.87 47.391.87 8.781
TOTAL $3.814.984.9~1 $3.814.984.93 $3.814.984.93
BENNAM GOVERNMENT
AGENCY MONEY MARKET
FUND-1990A TAX ALLOCATION
BOND $99.754,73 $99.754.71) $99.754.73 5.550
GRAND TOTAL ~.,,.Z.I.~.~.,~ ~ ~
SUMMARY BY BOND ISSUE:
1986 TAX ALLOCATION BOND $1,801,972.82 $1,801,972.82 $1,634,178.34
1989 TAX ALLOCATION BONO 12,289,696.31 12,289,696.31 11,465,260.52
1990A TAX ALLOCATION BOND 431,418.83 431,418.83 431,418.83
1993 TAX ALLOCATION BOND 8~,3_8_8~,J~ 88Z.~.,.!~.,.6_0.~ 25.56e.178.81~
GRAND TOTAL ~ ~1.~,~..1..1.~Z~9.~ ~
ATTACHMENT B
03/ ............... ND295 MAR 2 8 1995 ITEM
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