Item 15.1 - City's Investment Report AGENDA REPORT SUMMARy
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Ma~
INITIATED BY: John D. Fitch, Assistant City M~::gn~r~)O/'~A st~
Peggy A. Stewart, Director of ative Servicex~
Christine Tsung, Finance Manager
DATE: April 25, 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 March 31, 1995.
-ENVIRONMENTAL REVIEW
Environmental review is not required for this agenda item according to CEQA guidelines.
FISCAL IMPA~FI'
The investment portfolio earned $340,548.09 interest during March 1995.
ADDITIONAL PUBLIC NOTIFICAT1ONAND CORRESPONDENCE
None,
RECOMMENDATION
It is recommended that the City Council accept and file the attached report.
ACTION
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APR 25 1995 iTEM
AGENDA REPORT
CITY OF POWAY
This report is included on the Consent Calendar. There Mil be no separate discussion of the ~-port prior to approval by the
City Council unless members of the Council, staff or public request it to be removed f~orn the Consent Calendar and
discussed separately, if you ~sh to have this repor~ pulled for discussion, p~ease fill out a slip indicaidng the rep<mi number
and give it to the City Clerk prior to the beginning of the CRy Council meeting.
TO: Honorable Mayor and Members~[(~ City Council
FROM: James L. Bowersox, City
·
INITIATED BY: John D. Fitch, Assistant City Man~ger~'k
Peggy A. Stewart, Director of Admnist~t~ve Services
Christine Tsung, Finance Manager
DATE: April 25, 1995
SUBJECT: CitY'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.
FINOINGS
The book value of the investment portfolio as of March 31, 1995 was $67,213,865
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 $43,031,025.
The general operating reserves investment portfolio consisted of Time
Certificates of Deposits (TCDs) which totaled $2,865,000, Government National
Mortgage Association Certificates (GNMAs) which were booked at $975,833, U.S.
Treasury Notes purchased for $12,416,172, Federal Home Loan Mortgage Corporation
Certificates which were booked at $118,736, medium-term Corporate Notes which
were' booked at $2,464,015, Federal Agency issues of $1,000,000, U.S. Government
Securities which are booked at $7,099,529, a commercial paper purchase for
$962,322, deposits at the Local Agency Investment Fund (LAIF) of $16,40],980, and
$22,910,278 invested through the San Diego County Investment Pool. Excluding
interest, the market value of the County Pool increased O.lg% and is estimated at
$20,830,332 at March 31, 1995. A recap of the San Diego County Pool's Investment
Portfolio as of March 31, 1995 is attached.
ACTION:
2 of 10
APR 1995 ITEM 15,1
Agenda Report
April 25, 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 $67,213,865; the market value adjusted for the San Diego
County Pool funds is $64,624,407 for a "paper loss" of $2,589,458, or 4% of the
total. The book value of the City's bond proceeds is $43,031,025; the market
value adjusted for the San Diego County Pool funds is $39,479,792. 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, lhe interest rate for the month ending March 1995 is
estimated at 5.925% for LAIF, and 4.72% for the County Investment Pool.
The TCDs are at 15 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 $340,548.09 interest during March 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 March 31, 1995.
3 of 10 'APR 25 1995 ITEM 15.1
04/10/1995 PM - 1
CLTY OF PO~AY POmA
PORTFOLIO I~ASTER SUMMARY
NARC# 31, 1995 L
AVERAGE ---YIELD TO ~ATURITY---
PERCENT OF AVERAGE DAYS TO 360 ~65
INVESTMENTS BOOK VALUE PORTFOLIO TERM 14ATURLTY EQUIVALENT EQUIVALENT
Local Agency Investment Funds ................ $ 39,312,258.02 58.49 1 1 5.151 5.223
Certificates of Deposit ...................... S 2,865,000.00 4.26 1,363 624 6.612 6.704
Mortgage Backed Securities ................... · 1,094,569.24 1.6~ 10,450 7,517 8.143 8.256
Treasury SecurLties - Coupon ................. · 12,416,171.93 18.47 1,367 1,085 6.765 6.859
Xeditz~ Term Notes ............................ S 2,464,015.00 3.67 1,769 905 7.307 7.408
Federal Agency ~ssues - Coupon ............... $ 1,000,000.00 1.49 1,096 921 7.111 7.210
COmllercia[ Paper - Discount .................. · 962,321.67 1.43 222 195 6.313 6.401
MiscelLaneous Securities - Coupon ............ $ 70099,529.20 10.56 946 249 6.543 6.634
TOTAL INVESTMENTS and AVERAGES ............... $ 67°213,865.06 100.00~ 666 426 5.8~2% 5.913%
CASH
Passbook/Checking Accounts ................... S 0.00 0.000 0.000
(not included in yield calculations)
Accrued Interest at Purchase ................. $ 95,670.73
TOTAL CASH ................................... $ 95,670.7~
TOTAL CASH end ~NVESTMENTS ................... $ 67,207,555.79
~"~,~.>~ ~,.~J~ ~'~ The City shaLL invest in only those investments authorized by the State of
PEGGYtS~WA~ CHRISTINE TSUNG ~ CaLifornia under Government C~ Secti~s 53601.1, 5~02 a~ 53635. lnvest~nts
shaLL ~ ~de using the print ~n theory ~ith c~i~rati~ given to the
following it~ in order of priority; 1. Safety; 2. Liquidity; 3. YieLd.
DATE
A 'APR 1995 ITEM 15.1
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04/10/1995 CITY OF PC)WAY PM - 2
INVESTMENT PORTFOLIO DETAILS - INVESTMENTS PC~A
-' MARCH 31, 1995
1NVESTNENT PURCHASE STATED ''' YTH -'' MATURITY DAYS
HUMBER ISSUER DATE 000~ VALUE FACE VALUE NARKET VALUE RATE 360 365 DATE TO IdAT
LOCAL AGENCY INVESTMENT FUNDS
040001 LA]F CITY OF PC)WAY 8o130,288.28 8,130,288.28 8,130,288.28 3.925 5.864 5.925 1
040002 LAIF REDEVELOPMENT AGENCY 8,271,692.06 8,271,692.06 8,271,692.06 5.925 5.864 5.925 1
0~0004 SD CNTY INVST POOL 22,910,277.68 22,910,277.68 22,910,277.68'&.720 &.655 4.720 1
SUBTOTALS and AVERAGES 39,312,258.02 39,312,258.02 39,312,258.02 5.151 5.223 1
CERTIFICATES OF DEPOSIT
010947 EAST-WEST FEDERAL SANK 09/07/94 99,000.00 99,000.00 99,000.00 6.830 6.830 6.9~5 09/07/99 1,622
010948 EAST-~EST FEDERAL SANK 09/07/94 99,000.00 99,000.00 99,000.00 6.830 6.830 6.925 09/07/99 1,622
010928 FIRST INTERSTATE -SACRAMENTO 03/04/92 99,000.00 99,000.00 99,000.00 6.300 6.300 6.~88 03/04/96
010929 FIRST INTERSTATE -SACRAMENTO 03/04/92 99,000.00 99,000.00 99,000.00 6.300 6.300 6.~ O3/O&/96 ~0
010951 FIRST NATIONAL BANK OF MAR]N 02/02/95 99,000.00 99,000.00 99,000.00 7.150 7.150 7.249 01/29/96 305
010952 FIRST NATIONAL BANK OF MARIN 02/02/95 99,000.00 99,000.00 99,000.00 7.150 7.150 7.249 01/29/96 305
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
010934 FREMONT INVESTMENT &LOAN 03/31/92 99,000.00 99,000.00 99,000.00 7.060 7.060 7.158 03/31/97 732
010926 FRANKLIN BANK 02/21/92 99,000.00 99,000.00 99,000.00 6.450 6.450 6.540 02/21/96 328
010927 FRANKLIN BANK 02/21/92 99,000.00 99,000.00 99,000.00 6.450 6.450 6.540 02/21/96 328
010939 FRANKLIN THRIFT & LOAN 07/07/92 94,000.00 94,000.00 94,000.00 6.500 6.500 6.590 07/07/97 830
010940 FRANKLIN THRIFT & LOAN 07/07/92 94,000.00 94,000.00 94,000.00 6.500 6.500 6.590 07/07/97 830
010930 FIRST REPUBLIC THRIFT 03/10/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 03/11/96 347
010949 GREAT WESTERN BANK 02/01/95 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 09/29/95 183
010950 GREAT WESTERN BANK 02/01/95 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 09/~9/95 183
elf'-- IMPERIAL BANK 03/15/95 99,000.00 99,000.00 99,000.00 6.650 6.650 6.742 09/15/95 169
01L IMPERIAL BANK 03/15/95 99,000.00 99,000.00 99,000.00 6.650 6.650 6.7&2 09/15/95 169
010943 IMPERIAL THRIFT 08/17/92 99,OO0.00 99,000.00 99,000.00 6.250 6.250 6.337 08/18/97 87~
010944 IMPERIAL THRIFT 08/17/92 99,000.00 99,000.00 99,OO0.00 6.250 6.250 6.337 08/18/97 872
010931 RIVER CITY BANK 03/20/92 100,000.00 100,000.00 I00,000.00 7.300 7.300 7.401 03/20/97 7~1
010932 RIVER CITY BANK 05/20/92 100,000.00 I00,000.00 100,000.00 7.300 7.300 7.401 03/20/97 721
010945 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 1,461
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,&61
010957 SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 631
010958 SARATOGA NATIONAL BANK 06/03/92 99,000.00 99,000.00 99,000.00 6.500 6.500 6.590 06/03/96 631
010941 TRANS PACIFIC NATIO~aAL BANK 08/12/92 100,000.00 100o000.00 100,000.00 6.250 6.250 6.337 08/12/97 866
010942 TRANS PACIFIC NATIONAL BANK 08/12/92 100,000.00 100,000.00 100,000.00 6.250 6.250 6.337 08/12/97 866
010935 VALENCIA NATIONAL BANK 04/23/92 99,000.00 99,000.00 99,000.00 6.600 6.600 6.692 0%/25/95 26
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 26
SUBTOTALS and AVERAGES 2,865,000.00 2,865,000.00 2,865,000.00 6.612 6.70% 624
MORTGAGE BACKED SECURITIES
080001 FED BUME LOAN MTG CORP 09/17/86 29,046.07 30,817.80 30,595.30 8.000 8.786 8.906 08/15/06 6,156
080003 FED ROME LOAN MTG CORP 04/20/87 89,690.26 91,345.90 93,287.00 9.000 9.137 9.264 05/01/16 7,703
081008 GNMA POOL 192832 04/20/87 598,378.42 601,385.35 600,230.69 8.000 7.958 8.069 04/15/17 8,052
081007 GNMA POOL 203379 04/20/87 264,323.48 266,488.70 265,977.0% 8.000 8.001 8.112 0%/15/17 8,052
081001 GNMA POOL 13057 08/11/86 113,131.01 117,8&4.80 118,693.30 8.000 8.503 8.621 08/15/06 4,156
SUBTOTALS and AVERAGES 1,094,569.24 1,107,8&2.55 1,108,585.33 8.143 8.256 7,517
*Market value of $20,830,332
5 of lo ,APR 25 1995 ITEM 15.1
04/10/1995 CiTY OF PO~AY PH - 3
INVESTMENT PORTFOLIO DETAILS ' INVESTHE#TS POUA
TREASURY SECURITIES - COUPON
070001 US TREASURY NOTE 09/25/90 &97,968.75 $00,000.00 804,220.00 8.500 8.&84 8.602 08/15/95 138
070002 US TREASURY NOTE 04/12/94 &88,671.88 500,000.00 480,155.00 5.875 6.323 6.411 03/31/99 1,462
070006 US TREASURY NOTE 07/12/94 494,296.88 500,000.00 &94,37~.00 6.750 6.927 7.024 06/30/99 1,553
070008 US TREASURY NOTE 08/09/94 499,765.63 500,000.00 496,250.00 6.875 6.792 6.886 07/31/99 1,584
070010 US TREASURY NOTE 08/15/94 498,593.75 500,000.00 496,250.00 6.87~ 6.8/*7 6.942 07/31/99 1,586,
070011 US TREASURY NOTE 08/15/94 498,671.88 500,000.00 496,095.00 6.500 6.508 6.599 08/15/97 869
070012 US TREASURY NOTE 09/09/94 500,156,25 500,000.00 496,095.00 6.500 6.399 6.488 08/15/97 869
070013 US TREASURY NOTE 09/13/94 498,437.50 500,000.00 496,095.00 6.500 6.528 6.619 08/15/97 869
070016 US TREASURY NOTE 09/20/94 494,921.88 500,000.00 496,250.00 6.875 7.023 7.120 08/31/99 1,615
070017 US TREASURY NOTE 09/23/94 496,48~,.38 500,000.00 496,095.00 6.500 6.678 6.771 08/15/97 869
MEDIUM TERM NOTES
090032 EF MUTTON GROUP INC 06/17/91 493,635.00 500,000.00 507,590.00 8.875 9.075 9.201 05/01/96 398
090037 FORD MOTOR CREDIT CO~PANY 03/09/94 972,880.00 1,000,000.00 937,400.00 5.625 6.192 6.278 01/15/99 1,387
090035 PHILLIP MORRIS 03/26/92 497,500.00 500,000.00 500,595.00 7.500 7.517 7.622 05/15/97 716
090056 TRAVELERS CORP 05/14/92 500,000.00 500,000.00 499,710.00 7.625 7.521 7.625 01/15/97 657
SUBTOTALS and AVERAGES 2,464,015.00 2,500,000.00 2,445,295.00 7.307 7.408 905
100011 FIDELITY GOVERNMENT SECUR FUND 02/08/94 500,000.00 500,000.00 460,564.75 6.600 6.510 6.600 02/08/96 315
100012 FIDELITY GOVERNMENT SECUR FUND 02/09/94 1,000,000.00 1,000,000.00 919,339.17 6.587 6.497 6.587 02/09/96 316
6 of 10 'APR g5 1995 ITEM 15,1
04/10/1995 CITY OF POUAY PH -
INVESTMENT PORTFOLIO DETAILS - I#VESTMENTS POmA
~ MARCH 31, 1995
INVESTMENT PURCHASE STATED --- YTM --' MATURITY DAYS
HUMBER ISSUER DATE 800K VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
MISCELLANEOUS SECURITIES - COUPON
100D02 US GOVERNMENT FUND 10/30/87 699,529.20 699,52~.20 713,855.0~ 8.000 7.890 8.000 10/30/95
100003 US GOVERNMENT FUND 07/22/93 500,000.00 500,000.00 ~68,676.59 6.500 6.all 6.500 07/22/95 114
100004 US GOVERNMENT FUND 08/13/93 200,000.00 200,000.00 185,581.&0 6.500 6.411 6.500 08/13/95 136
100005 US GOVERNMENT FUND 08/2&/93 250,000.00 250,000.00 231,259.66 6.500 6.411 6.500 08/2&/95 147
100006 US GOVERNMEHT FUND 09/10/93 300,000.00 300,000.00 275,59&.78 6.200 6.113 6.200 09/10/95 16~
100007 US GOVERHMENT FUND 09/28/93 500,000.00 500,000.00 &60,38~.61 6.250 6.16~ 6.250 09/28/95 182
100008 US GOVERNMENT FUND 10/08/93 400,000.00 &O0,O00.O0 368,024.59 6.230 6.1&5 6.230 10/08/95 192
100009 US GOVERNMENT FUND 10/12/93 400,000.00 400,000.00 368,307.70 6.230 6.145 6.230 10/12/95 1~6
100010 US GOVERNMENT FUND 11/12/93 350,000.00 350,000.00 326,539.36 6.310 6.224 6.310 11/12/95 227
SUBTOTALS and AVERAGES 7,099,52~.20 7,099,529.20 6,631,027.66 6.5&3 6.634 249
TOTAL iNVESTMENTS and AVERAGES $ 67,213,865.06 67,38~,669.77 66,70~,352.68 * 3.832% 5.913% 426
*Market value adjusted for San Diego
County Pool funds = $64,624,407
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04/10/1~5 PH - 5
CITY OF PO~AY POmA
ACCRUED INTEREST DETAILS
NARCH 31, 1~95
NONTfl ENDING FISCAL
MARCH 31, 1~5 YEAR TO DATE
CD/Coupon/Discount investments:
Interest Co[[ected $
PLUS Accrued Interest et End of Period 307,433.10 $07,433.10
LESS Accrued Interest at Beginning of Period ( 305,838.50) ( 224,019.42)
Interest Earned during Period $ 152,579.97 $ 1~220,964.88
Mortgage Backed Securities:
Interest Collected $ ?,526.27 $ 70,566.39
PLUS Accrued Interest at End of Period 19,851.85 19,851.85
LESS Accrued interest at Seginning of Period ¢ 19,916.57) ( 20,579.90)
Interest Earned during Period $ 7,461.55 $ 69,838.34
LAIF/Passbook/¢hecking Accounts:
Interest Collected $ 277,757.86 $ 1,618,518.30
LESS Accrued Interest at Beginning of Period ( 8,659,582.65) (
Interest Earned during Period $ 180,506.57 $ 1,482,577.03
*TOTAL Interest Earned during Period $ 3400548.09 $ 2,773,380.25
8 of 10 'APR 25 1995 ITEM 15,1
CITY OF POWAY
INVESTMENT PORTFOLIO DETAILS
BOND FUNDS
MARCH 3t,t995
SAN DIEGO COUNTY MARKET
1986 TAX ALLOCATION BOND $1,815,589.48 $1,815,589.48 $1,650,758.33 4.720
1989 TAX ALLOCATION BOND 8,939,188.87 8,939,188.87 $8,127,630.55 4.720
1993 TAX ALLOCATION BOND ~ 28.361.507.06 ~ 4.720
TOTAL
LOCAL AGENCY INVESTMENT
FUND:
1989 TAX ALLOCATION BOND $3,435,928.96 $3,435,928.96 $3,435,928.96 5.925
1990A TAX ALLOCATION BOND 33t,664.10 331,664.10 331,664.10 5,925
1993 TAX ALLOCATION BOND 47.391.87 47.391.87 47.391.87 5.925
TOTAL $3.814.984.93 $3.814.984.93 $3.8t4.964.93
BENHAM GOVERNMENT
AGENCY MONEY MARKET
FUND-1990A TAX ALLOCATION
BOND $99.754.73 $99.754.73 $99.754.73 5.580
GRAND TOTAL ~ ~ $39.479.791.57
SUMMARY BY BOND ISSUE:
1986 TAX ALLOCATION BOND $1,815,589.48 $1,815,589.48 $1,650,758.33
1989 TAX ALLOCATION BOND 12,375,117.83 12,375,117.83 11,563,559.51
1990A TAX ALLOCATION BOND 431,418.83 431,418.83 431,418.83
1993 TAX ALLOCATION BOND 28.408.898.9~ ~ ~
GRAND TOTAL ~ ~ ~
ATTACHMENT B
04/10/95PRTFOLIO/BOND395
9 of 10 'APR 25 1995 ITEM 15.1