HomeMy WebLinkAbout20 MONTHLY INV. RPT. 02-05-96AGENDA I
_ATE'
J~NU~Y 31~ 1996
NO. 20
2-5-96
Inter C o m
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
MONTHLY INVESTMENT REPORT FOR DECEMBER 31, 1995
RECOMMENDATION
Receive and File.
BACKGROUND
The attached investment report has several changes which
incorporate suggestions' made by the City Council and the Audit
Committee. We have spelled out the various Federal Agency issuers;
we have added pie charts; we have added a glossary of common terms
used in the report and we have amended the certification statement
to comply with new legislation that became effective January 1,
1996.
DISCUSSION
The current cash, or daily, position is necessitated by significant
checks issued during December for the Fire Authority Contract and
transfers to the Assessment District Trustee and the ~current
balance in the'fidelity Money Market Account which represents AD
85-1 Construction Fund 2. It is anticipated that the Assessment
District Refunding will close by February 29, at which time the
Fidelity Account will be closed and the funds will be transferred
to the Trustee to call in the bonds. This will redUce the invested
funds by twenty-three percent (23%). There are no unstated
deviations from the current investment policy.
RAN4: A~it2. Jan
OF TUSTIN INVESTMENT .... PORT
DATE: 11/30/95
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: RONALD A. NAULT, FINANCE DIRECTOR
SUBJECT: INVESTMENT SCHEDULE AS OF:
DECEMBER 31,1995
(1)
DESCRIPTION- UMITS
YI ELD
TO'
MATURITY
(2) (3)
ORIGINAL CURRENT
PURCHASE MATURITY PURCHASE BOOK
DATE DATE PRICE VALUE
(4)
CURRENT
MARKET
VALUE
Certificates of Deposit (CD's)-No Limit
Commercial Paper-25%, Max 90 Days
Bankers Acceptances-25%, Max 180Days I
SAKURA BANK, NEW YORK
(5)
Medium Term Notes- 10%
PFIZER INC. Rating- (AAA/AAA)
KELLOGG CO. Ratin g- (AAA/AAA)
PAC TEL CAP. Rating-(A1/A+)
I Federal Agency Bonds or Notes-25% [
FEDERAL FARM CREDIT BANKS
FEDERAL HOME LOAN BANK FRN (6) '
FED. HOME LOAN MORT. CORP. 1325-C (6)
FEDERAL FARM CREDIT BANKS FRN
FEDERAL FARM CREDIT BANKS FRN
FED. HOME LOAN MORT. CORP. 1402-H
FED. HOME LOAN MORT. CORP. 1436-SB
FEDERAL HOME LOAN BANK FRN
FEDERAL HOME LOAN BANK FRN (6)
TENNESSEE VALLEY AUTHORITY (AAA/AAA)
J US Treasury Bills/Bonds/Notes- No Limit
Treasury Note (6)
Daily-No Limit
Cash
Fidelity Money Market (AAA/AAA)
Local Agency Investment Fund
Current Total: $0 $0
Cu rren t Total: $0 $0
5.83% 07/20/95
01/02/96 $974,178 $974,178
Current Total: $974,178
I 2.33% J
(8)
$1,000,000
$1,000,000
6.32% 05/12/94 02/Ol/97 $251,078 $25o,431 $252,460
6.22% o5/15/95 o7/15/97 $149,o34 $149,034 $15o,837
5.83% 03/17/93 1 o/15/97 $574,140 $529,656 $531,045
Current Total: $929,121 $934,342
2.22% J
(8)
6.06% 02/28/94 02/10/97 $742,500 $742,500
4.05% 10/20/93 06/02/97 $2,550,000 $2,535,716
5.84% 05/06/94 07/15/97 $1,024,371 $934,364
2.83% 01/31/94 07/28/97 $1,050,000 $1,025,057
2.09% 11/09/93 09/23/97 $1,025,000 $1,004,255
3.30% 01/28/94 10/15/97 $1,006,886 $970,019
4.27% 03/21/94 12/15/97 $723,054 $649,147
2.55% 09/29/93 03/23/98 $1,507,500 $1,505,001
3.63% 10/21/93 05/07/98 $502,500 $502,500
5.60% 02/03/94 08/01/99 $520,000 $513,334
Current Total: $10,381,893
J 24.85% J
(8)
$742,500
$2,251,9~
$918,;
$1,001 61u
$990 880
$982 762
$641 357
$1,327 500
$479 278
$507 500
$9,843 956
6.19% 05/27/94 05/15/97 $2,021,360 $2,017,088 $2,033,760
Current Total: $2,017,088 $2,033,760
I
(8)
4.90% (7) $2,459,337 $2,459,337
4.75% $9,794,008 $9,794,008
5.75% $15,226,729 $15,226,729
Current Total; $27,480,074 $27,480,074
J 65.77% J
TOTAL CITY INVESTMENTS
PERFORMANCE MEASUREMENT:
Average Portfolio Life (Years): 1.20
Average Portfolio Yield: 4.86%
Current 2 yr Treasury: 5.25%
$41,782,354 $41,292,132
Ci , .. OF TUSTIN 1NVESTME~I _,x EPOR T
, (1)
DESCRIPTION-LIMITS
TUSTIN COMM UNITY REDEVELOPMENT AGENCY
DECEMBER 1995
(2)
YIELD ORIGINAL
TO PURCHASE MATURITY PURCHASE
MATURITY DATE DATE AMOUNT
(3)
CURRENT
BOOK
VALUE
(4)
CURRENT
MARKET
VALUE
Certificates of Deposit (CD's)-No Limit
First Interstate Ban k
First Interstate Ban k
I Commercial Paper-25%, Max 90 Days I
Bankers Acceptances-25%, Max 180Days I
Sakura Bank, New York
(5)
Medium Term Notes- 10%
Franklin Un iversal Trust- (AAA/AAA)
GE Capital- (AAA/AAA)
4.75% 08/30/95 04/30/96 $1,000,000 $1,000,000 $1,000,000
4.75% 08/30/95 06/30/96 $1,250,000 $1,250,000 $1,250,000
5.83%
Current Total: $2,250,000
I lO.4O% I
Current Total: (8)
07/20/95 01/02/96 $974,178 $974,178
$2,25o,0oo
$0
$1,000,000
Current Total: $974,178 $1,000,000
4.50% I
(8)
4.94% ' 09/14~93 09/01/98 $1,029,800 $1,017,880 $994,640
5.19% 11/18/93 11/18/98 $2,006,060 $2,003,636 $1,988,360
I Federal Agency Bonds or Notes-25% I
FEDERAL HOME LOAN BANK FRN 4.05%
FEDERAL FARM CREDIT BANKS FRN 2.57%
FEDERAL FARM CREDIT BANKS FRN 4.27%
TENNESSEE VALLEY AUTHORITY (AAA/AAA) 5.60%
I US Treasury Bills/Bonds/Notes-No Limit
Daily-No Limit
RDA Cash
Local Agency Investment Fund
Current Total: $3,021,516
I 13.97% I
(8)
$2,983,000
10/20/93 06/02/97 $2,040,000 $2,025,715 $1,801,592
01/31/94 07/28/97 $1,058,750 $1,029,378 $968,462
11/09/93 09/23/97 $1,435,000 $1,406,362 $1,351,441
02/18/94 08/01/99 $515,048., $510,032 $508,125
Current Total: $4,971,487 $4,629,620
I 22.99%
(8)
I
5.29%
5.81%
(7)
· Current Total: $0
I 0.00%
(8)
$595,780
$9,811,454
Current Total: . $10,407,234
J 48.13%
$0
$595,78O
$9,811,454
$10,407,234
I
TOTAL RDA I NVESTM ENTS
$21,624,415 $21,269,854
PERFORMANCE MEASUREMENT:
Average Portfolio Life (Years): 1.23
Average Portfolio Yield: 5.16%
Current 2 yr Treasury: 5.25%
TOTALCITY/RDA INVESTMENTS: $63,406,769 $62,561,986
CI7 _.,,, ~tF TUSTIN INVESTMENT it. 7. ,-~ 'OR T
FOOT NOTES:
(1) DESCRIPTION-LIMITS reflects the various authorized investments as documented in the most current adopted
investment polcy and the allowable per-centage of total portfolio per investment type.
(2) Original Purchase Price is the amount paid for a security less any discount plus any premium.
(3) Current Book Value is a securities original cost less rceipt of principal payments, net of amortized premiums/discounts.
(4)
Current Market Value is the price that the security is currently trading and could presumablyu be
purchased or sold. Current market values are provided by Bank of America and First Interstate Bank
on all securities held in safekeeping for the City or RDA. Differences in value are only booked if the
security is sold prior to maturity.
(5) In compliance with Section II, paragraph f. of the City's Investment Policy, Corporate Medium Term
Notes shall have a Moody's/Standard and Poors's long term debt rating of at least AA.
(6) Securities held in Trust per the Funding Agreement between the City of Tustin and the Foothill/Eastern
Transportation Corridor Agency adopted by the City Council on 6-5-95.
(7) Earnings allowance on compensating bank balances to offset bank activity charges. Not included in the
Ave rage Yield calculation.
(8). Current percentage by investment type to be measured against allowable limits in current investment policy.
CERTIFICATION:
I certify that this report reflects all City and RDA pooled investments. Due to current cash flow considerations maturities
in excess of one year temporarily exceed the current Investment Policy limits by approximately 10%. Projected cash flows,
maturing investments and the prudent sale of longer maturities will mitigate this condition. In all other aspects the
investments represented in this report are in 'conformity with the current adopted investment policy of the City of Tustin.
The investment program herein shown provides sufficent cash flow liquidity to meet the next sixty days estimated
expenditures.
This statement is prepared in conform~hce with Section 53646 of the Government Code.
Ronald A. Nault, Treasurer
LEGEND:
CD-Certificate of deposit
FRN-Floating rate note
FNMA- Federal National Mortgage Association
FFCB-Federal Farm Credit Bank
FHLMC-Federal Home Loan Mortgage Corp.
FHLB-Federal Home Loan Bank
TVA- Tennesee Valley Authority
GLOSS/%RY
OF
COMMON TREASURY TERMINOLOGY
USED IN THIS REPORT
BANKERS' ACCEPTANCE (BA): A draft, bill or exchange accepted by a
bank or trust company. The accepting institution guarantees
payment of the bill, as well as the issuer.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific
maturity evidenced by a certificate. Large denomination CD's are
typically negotiable.
COMMERCIAL PAPER: PrimarilY issued by corporations to finance
receivables, commercial paper is a short term, unsecured promissory
note issued for a maturity specified by the purchaser not to exceed
270 days.
FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up
to supply credit to various classes of institutions and
individuals, e.g., S&L's, small business firms, students, farmers,
farm cooperatives, and exporters.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds
from political subdivisions that are placed in the custody of the
California State Treasurer for investment and reinvestment.
MEDIUM TERM NOTES: Primarily issued by corporations to finance
capital improvements, typically issued for three to five years.
TREASURY BILLS: A non-interest bearing discount security issued by
the U.S. Treasury to finance the national debt. Most bills are
issued to mature in three months, six months, or one year.
TREASURY BOND: Long-term U.S. Treasury securities having initial
maturities of more than ten years.
TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury
securities'having initial maturities of from one to ten years.
RAN4: G [ ossa ry. J an