HomeMy WebLinkAbout1998-08-03 City Council (12)TO:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
¯ DATE:AUGUST 3, 1998 CMR:334:98
SUBJECT:CITY OF PALO ALTO’S INVESTMENT ACTIVITY REPORT
FOR THE FOURTH QUARTER, FISCAL YEAR 1997-98
This is an information report and no Council action is required.
BACKGROUND
The purpose of this report is to inform Council on the status of the City’s investment
portfolio, as. of the end of the fourth quarter of the 1997-98 fiscal year. The City’s
investment policy requires that staff report to Council on the City’s portfolio composition
compared to Council-adopted policy, portfolio performance, and other key investment and
cash flow information.
DISCUSSION
Investment Portfolio as of June 30, 1998
The City’s investment portfolio is detailed in Attachment B. It is grouped by investment type
and includes the category of investment, date of maturity, current market value, as well as
the book and face (par) value, and the weighted average maturity of each type of investment
and of the entire portfolio, as of June 30, 1998.
The face value of the City’s portfolio is $251.7 million. The portfolio consists of $23,9
million in liquid money market accounts and $227.5 million in U. S. government agency
notes and treasury securities. The $227.5 million includes $123.6 million in investments
maturing in less than two years, which represents 54.3 percent of the City’s investment in
notes and securities. The current market value of the portfolio is 100.8 percent of the book
.value. Early in the fourth quarter, bond yields continued to decline, meaning that market
prices, which move in the opposite direction of yields, went up. Towards the end of the
fourth quarter, yield and prices stabilized. Because the City’s investment policy and practice
is to hold securities until they mature, changes in market price do not affect what the City
earns in real dollars. The average life to maturity of the investment portfolio is 1.84 years.
CMR:334:98 Page 1 of 4
The market valuation is provided by Union Bank of Califomia, which is the City’s
safekeeping agent. :
The portfolio grew by $29 million over the last year, from $222.6 million on June 30, 1997
to $251.7 million on June 30, 1998. Over two-thirds of this growth, about $20 million, was
in the Enterprise Funds, reflecting primarily the augmentation of the Calaveras Reserve.
Reserve numbers will be discussed in more detail in the Yearend Financial Report in late
Fall.
Investments Made During the Fourth Quarter
During the fourth quarter of the fiscal year, the City’s portfolio grew by $2.1 million. Staff
replaced $10.0 million in matured and called similar government agency securities that had
an average yield of 6.07 percent, with $12.0 million in similar securities having an average
yield of 5.88 percent. All of the securities purchased in the fourth quarter mature in less than
three years. Finally, short-term money market funds increased by $.2 million compared to
the third quarter.
The combination of no interest rate increases by the Federal Reserve Open Market
Committee (FOMC), a high demand for safe and secure U. S. bonds due to the Asian
economic crisis, and low inflationary pressures have caused yields to remain consistently low
in the fourth quarter. As demand for U. S. bonds increases, bond prices are pushed up and
interest yields movedown. It is important to note that the yield on two-year Treasury notes
was 5.51 percent at the end of June 1998, while the yield on the same type of notes was 6.04
percent at the end of June 1997.
Low yields in the last two quarters of 1997-98 have prompted staff to shorten the term of
funds invested. As interest rates begin to rise and exceed yields in the City’s short-term
investment pools, staff will begin to draw down funds invested in these funds (Local Agency
Investment Fund (LAIF) and money market accounts), and begin investing in longer-term
securities. Recent yields in LAIF have been running .06 percent higher than two-year
securities.
Availability of Funds for the Next Six Months
The normal flow of revenues from the City’s utility billings, sales and property taxes,
transient occupancy taxes and general user fees is sufficient to provide funds for ongoing
expenditures. Projections indicate receipts will be $111.5 million and expenditures will be
$104.3 million over the next six months, indicating an overall growth of the portfolio of
about $7.2 million. At end of June, $23.9 million was also available in funds which could
be withdrawn on a daily basis from the City’s LAIF and Fidelity money market fund
investments. In addition, securities totaling $29.0 million will mature betweenJuly 1, 1998
and December 31, 1998. On the basis of the above projections, the City will have more than
sufficient funds to meet expenditure requirements for the next six months,
CMR:334:98 Page 2 of 4
Compliance with City_ Investment Policy
During the fourth quarter of 1997-98, staff complied with all aspects of the investment
policy. Attachment C lists the restrictions in the City’s investment policy, compared with
the portfolio’s actual compliance.
Investment Yields
Interest income on an accrual basis for the fourth quarter of 1997-98 was $3.8 million. For
fiscal year 1997-98, the City has earned $14.8 million, exceeding the 1997-98 budget of
$13.4 million by $1.4 million, or by 10.4 percent, reflecting the growth in the portfolio of
$29 million. As of June 30, the yield to maturity of the City’s portfolio was 6.09 percent,
below the 6.11 percent reported for the last quarter, reflecting the decline in overall bond
yields.
Yield Trends
During this quarter, the FOMC made no change in either the discount rate or the Federal
funds rate. While the FOMC is keeping close watch on inflationary pressures that could
result from a tight labor market, the FOMC is alsowatching the effect of the Asian currency
crisis. This crisis is leading to cheaper imports and fewer U.S. exports which, in turn, curb
potential inflation and job growth in the U.S. Available information indicates that growth
in the U. S. economy is moderating and that inflation is not a threat. Economists are
predicting that in the next six months, U. S. companies will slow production and reduce
employment. They also expect that the economy is unlikely to contract. Given current low
inflation levels and a steady economy, the FOMC is not expected to raise interest rates in the
immediate future.
Funds Held by the City. or Managed Under Contract
Attachment A is a consolidated report of all City investment funds, including those not held
directly in the investment portfolio. These include cash in the City’s regular bank account
with Bank of America; bond proceeds, which the City itself manages in a separate
investment account; bond reserves and debt service payments being held by the City’s fiscal
agents; and employee deferred compensation accounts (investments directed by the
individual employee but technically considered City .funds reserved for the employees). The
most recent data on funds held by the fiscal agent is as of June 1998, while balances in the
deferred compensation accounts are as of March 31, 1998.
ATTACHMENTS:
A)Consolidated Report of Cash and Investments
B)Investment Portfolio, as of June 30, 1998
C)Investment Policy Compliance
CMR:334:98 Page 3 of 4
PREPARED BY: Joe Saccio, Senior. Financial Analyst
DEPARTMENT HEAD APPROVAL: ~,~____._K,~//
CARL YEATS/
Director, Administrative Services
CITY MANAGER APPROVAL:
EMI]LY HARRISON
Assistant City Manager
CC:N/A
CMR:334:98 Page 4 of 4
Attachment A
Consolidated Report
City of Palo Alto Cash and Investments
Fourth Quarter, Fiscal Year 1997-98
Book Value
City Investment Portfolio (see Attachment B)$252,153,686
Market Value
$ 254,094,081
Other Funds Held by the City_
Cash with Bank of America
(indludes general, imprest, and other accounts)
1995 Utility Revenue Bond Proceeds
Fidelity Fund - Treasury Class I
Petty Cash at City Facilities
Cash with Washington Mutual Bank
Total for Other Funds Held By City
$7,100,604
2,753,885
8,420
1,853
$ 9,864,762
$7,100,604
2,753,885
8,420
1,853
9,864,762
Funds Under Management of Contracted Parties
Fiscal Agent Debt Service Payments and Reserves
First Trust California
Golf Course Corporation Lease/Reserve Fund
Palo Alto Public Improvement Corporation
Lease/Reserve Fund
Total Under Management
Employee Deferred Compensation Accounts
(March 31, 1998)
Great Western Bank
ICMA Retirement Corporation
ITT Hartford
Total for Funds Under Management
GRAND TOTAL
$154,312
762,282
$ 916,594
$ 727,943
22,613,341
28,817,436
$ 52,158,872
$ 315,093,762
$154,312
762,282
$ 916,594
$ 727,943
22,613,341
28,817,436
$ 52,158,872
$317,034,157
ATTACHMENT B
07/22/1998 City of Palo Alto
Investment by Type
JUNE 30, 1998
FI -1
CPA
ACCRUAL
INVESTMENT PURCHASE STATED ....YTM ....MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
MANAGED POOL ACCOUNTS
158 . Fidelity Investments
159 Local Agency Invest. Fund
SUBTOTALS and AVERAGES
FEDERAL AGENCY ISSUES - COUPON
221
222
146-Cali
147-Call
148-Cali
149-Call
150-Call
166
173
177-Cali
179-Cali
187"
188
189
202
203
205
206
207
210
215
216
228
238
239
246
250
252-Cali
253-Cali
254-Cali
255-Cali
258
178-Cali
212
213
217
218
229
230
Federal Farm Credit Bank
Federal Farm Credit Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Federal Home Loan Bank
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
02104197
02/04/97
02118194
02114194
02109194
02110194
02111194
11/16/95
02/15/96
02/21/96o2/282~6o4/23/96o4/23/96
o5/06/96o8/o9/96
09/27/96lO/25/96
i1/i5/96
ii/iS/96
i2/i8/96
oi/28/97
oi/28/97
o4/i7/97
o6/26/97
07/ii/97
ii/i4/97
i2/i8/97
oi/29/98
oi/29/98
o2/i2/98
o2/18/98
o6/i2/98
o2/23/96
i2/i8/96
i2/18/96
oi/io/97
oi/io/97
o4/i4/97
o4/i6/97
5,100,000.25 5,100,000.25 5,100,000.25 5.460 5.385 5.460
18,796,000.00 18,796,000.00 18,796,000.00 5.684 5.606 5.684
23,896,000.25 23,896,000.25 23,896,000.25 5.559 5.636
1,097,160.34
898,888.83
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
4,999,254.43
4,002,441.19
1,550,000.00
2,000,000.00
2,000,000.00
2,000,000.00
2,000,000.00
4,000,869.70
3,001,347.87
2,231,547.17
1,152,385.30
2,005,487.80
990,071.88
999,900.25
1,999,097.66
2,995,794.27
2,996,263.02
3,006,019.97
4,997,840.35
2,999 378.88
1,998 194.44
1,998 375.00
3,994 436.63
4,275 000.00
2,995 861.18
2,000 000.00
1,006 154.27
1,006 115.56
1,336 346.51
3,010546.87
1,988 649.78
2,987 558.59
i,i00,000.00 1,121,483.00 6.420
900,000.00 917,577.00 6.420
2,000,000.00 1,997,820.00 5.380
2,000,000.00 1,997,820.00 5.380
2,000,000.00 1,997,820.00 5.380
2,000,000.00 1,997,820.00 5.380
2,000,000.00 1,997,820.00 5.380
5,000,000.00 5~001,550.00 5.660
4,000,000.00 3,985,000.00 5.055
1,550,000.00 1,544,435.50 5.965
2,000,000.00 1,990,000.00 5.860
2,000,000.00 2,008,740.00 6.100
2,000,000.00 2,008,740.00 6.100
2,000,000.00 2,009,060.00 6.210
4,000,000.00 4,026,880.00 6.260
3,000,000.00 3,025,770.00 6.335
2,235,000.00 2,243,738.85 6.050
1,150,000.00 1,155,175.00 6.030
2,000,000.00 2,010,000.00 6.090
990,000.00 994,950.00 6.090
1,000,000.00 1,008,440.00 6.173
2,000,000.00 2,016,880.00 6.173
3,000,000.00 3,050,640.00 6.670
3,000,000.00 3,069,390.00 6.400
3,000,000.00 3,030,480.00 6.225
5,000,000.00 5,028,150.00 5.950
3,000,000.00 3,005,610.00 5.835
2,000,000.00 1,987,180.00 5.600
2,000,000.00 1,987,180.00 5.600
4,000,000.00 3,983,760.00 5.776
4,275,000.00 4,257,643.50 6.000
3,000,000.00 2,995,861.18 5.670
2,000,000.00 1,982,500.00 5.600
1,000,000.00 1,010,620.00 6.550
1,000,000.00 1,010,620.00 6.550
1,285,000.00 1,365,710.85 7.900
3,000,000.00 3,073,110.00 6.520
2,000,000.00 2,067,180.00 6.780
3,000,000.00 3,106,410.00 6.830
6.416
6.372
5.496
5.496
5.496
5 496
5 496
5 706
4 945
5 965
5 860
6 I00
6.100
6.210
6.153
6.208
6.096
5.780
5.781
5.997
6.096
6.120
6.665
6.349
6.031
5.970
5.850
5.649
5.644
5.859
5.999
5.746
5.600
6.015
6.015
6.352
.6.313
6.865
6~866
6.505 02/04/02 1,314
6.461 02/04/02 1,314
5.572 12/14/98 166
5.572 12/14/98 166
5.572 12/14/98 166
5.572 12/14/98 166
5.572 12/14/98 166
5.785 11/09/98 131
5.014 02/09/99 223
6.048 02/21/01 966
5.941 02/28/01 973
6.185 04/23/99 296
6.185 04/23/99 286
6.296 05/06/99 309
6.238 08/09/99 404
6.294 09/23/99 449
6.180 10/25/99 481
5.860 11/08/99 495
5.862 11/01/99 488
6.081 11/01/99 488
6.180 01/28/00 ~576
6.205 01/28/00 576
6.758 04/17/00 656
6.437 06/26/02 1,456
6.115 07/11/00 741
6.053 11/14/00 867
5.931 12/16/99 533
5.728 01/29/01 943
5.723 01/29/01 943
5.941 02/12/01 957
6.082 02/18/03 1,693
5.826 06/12/00 712
5.678 02/23/01 96~
6.098 01/04/00 552
6.098 01/04/00 552
6.440 09/19/01 1,176
6.401 01/02/02 1,281
6.960 04/10/02 1,379
6.961 04/16/02 1,385
ATTACHMENT B
07/22/1998 City of Palo AZto
lhvestment by Type
JUNE 30, 1998
FI -2
CPA
ACCRUAL
INVESTMENT PURCHASE STATED ....YTM ....MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
FEDERAL AGENCY ISSUES - COUPON
231
240
123
124
168
170
171
180
181
186
194
195
196
197
2OO
201
204
211
219
220
223
224
225
226
227
232-Cali
233-Cali
234
235
236
237
241-Cali
242
243
244
245
247-Cali
248-Cali
249
251
256
257
169
Fed Home Ln Mort Corp
Fed Home Ln Mort Corp
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat.Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Fed Nat Mortgage Assn
Student Loan Mktg. Assn
SUBTOTALS and AVERAGES
04114197
09/10/97
101051951010619501126196
01/26196
02/09/96
03/07196
03/13/96
04/18/96
05/06/96
o5/o6/96
05/31/96
o5/31/96
07/11/96
o7/11/96lO/25/9612/18/96Ol/13/97
1,988,295.08
2,007,092.03
4,000,126.49
4,000,123.36
4,001 278.62
4,233.077.02
3,002.009.38
2,996711.32
2,988 877.72
1,995879.72
1,994.878.82
1,766604.38
2,245 648.04
2,036 868.97
2,634 030.45
2,284,775.16
1,997,415.83
995,575.80
2,002,153.84
02/03/97 4,125,380.25
03/07/97
03/07/97
03/07/97
03/21/97
03/21/97
04/14/97
04/14/97
05/21/97
06/25197
06/25/97
o6/26/97
09/10/97
09/25/97
o9/29/97
10/22/97
10/22/97
12/08/97
12/11/97
12/11/97
12/31/97
04/30/98
06/10/98
01/26/96
1,980,242.39
1,484,738.19.
1,485,341.77
1,495,835.09
1,495 697.41
1,976 648.83
2,967 434.38
2,995 785.49
2,010 403.40
2,010 652.60
2,018 500.92
3,000 000.00
4,997 945.33
3,993 479.89
2,981276.19
2,981 421.97
5,001 357.94
2,000 555.56
3,093 257.76
4,000,583.26
4,970,375.49
3,997,904.62
4,116,986.76
2,000,000.00 2,067,180.00 6.780 6.871 6.966 04/10/02 1,379
2,000,000.00 2,028,740.00 6.400 6.122 6.207 08/01/00 762
4,000,000.00 4,005,640.00 5.950 5.854 5.935 09/28/98 89
4,000,000.00 4,005,640.00 5.950 5.854 5.935 09/28/98 89
4,000,000.00 3,975,000~00 5.550 5.459 5.535 01/17/01 931
4,000,000.00 4,243,760.00 8.9Q0 5.415 5.490 06/12/00 712
3,000,000.00 2,989,230.00 5.200 5.087 5.158 01/25/99 208
3,000,000.00 2,991,570.00 5.280 5.385 5.460 03/01/99 243
3,000,000.00 2,994,840.00 5.400 5.907 5.989 03/12/99 254
2,O00,00O.00 2,001,880.00 5.840 6.061 6.145 03/29/99 271
2,000,000.00 2,050,320.00 6.625 6.641 6.733 04/18/01 1,022
1,790,000.00 1,811,820.10 6.160 6.631 6.723 04/03/01 1,007
2,205,000.00 2,269,430.10.8.700 6.421 6.510 06/10/99 344
2,000,000.00 2,058,440.00 8.700 6.421 6.510 06/10/99 344
2,705,000.00 2,699,914.60 5.720 6.779 6.873 03/08/01 981
2,300,000.00 2,352,463.00 6.590 6.766 6.860 05/24/01 1,058
2,000,000.00 2,012,500.00 6.070 6.095 6.180 10/18/99 474
1,000,000.00 1,000,780.00 5.740 6.080 6.164 12/09/99 526
2,000,000.00 2,048,440.00 6.580 6.447 6.537 10/02/01 1,189
4,000,000.00 4,220,640.00 7.500 6.381 6.470 02/11/02 1,321
2,000,000.00 2,029,380.00 6.230 6.460 6.550 03/01/02 1,339
1,500,000.00 1,522,035.00 6.230 6.470 6.560 03/01/02 1,339
1,500,000.00 1,522,035.00 6.230 6.457 6.547 03/01/02 1,339
1,500,000.00 1,511,490.00 6.250 6.342 6.430 03/20/00 628
1,500,000.00 1,511,490.00 6.250 6.348 6.436 03/20/00 628
2,000,000.00 2,022,500.00 6.630 7.042 7.140 02/04/02 1,314
3,000,000.00 3,038,910.00 6.680 7.035 7.133 03/14/02 1,352
3,000,000.00 3,034,230.00 6.410 6.404 6.493 05/22/00 691
2,000,000.00 2,056,880.00 6.590 6.342 6.430 05/21/02 1,420
2,000,000.00 2,056,880.00 6.590 6.337 6.425 05/21/02 1,420
2,000,000.00 2,065,000.00 6.700 6.332 6.420 06/04/02 1,434
3,000,000.00 3,004,230.00 6.470 6.381 6.470 08/17/00 778
5,000,000.00 5,028,100.00 5.970 5.908 5.990 09/25/00 817
4,000,000.00 4,046,880.00 6.090 6.132 6.217 09/30/02 1,552
3,000,000.00 3,009,360.00 5.830 6.132 6.217 10/16/00 838
3,000,000.00 3,035,580.00 6.100 6.270 6.357 10/21/02 1,573
5,000,000.00 5,000,000.00 6.190 6.270 6.357 12/07/00 890
2,000,000.00 1,999,380.00 .6.140 6.117 6.202 12/11/00 894
3,000,000.00 3,072,660.00 8.350 5.892 5.974 11/10/99 497
4,000,000.00 4,010,000.00 5.910 5.888 5.969 02/25/00 604
5,000,000.00 4,984,350.00 5.520 5.868 5.950 04/17/00 656
4,000,000.00 3,997,904.62 5.720 5.748 5.828 05/22/00 691
4,000,000.00 4,120,000.00 7.500 5.458 5.534 03/08/00 616
212,874,215.26212,485,000.00214,577,067.30 6.045 6.129 770
ATTACHMENT B
07/22/1998 city of Palo Alto FI -3
Investment by Type CPA
ACCRUAL
June 30, ’1998
INVESTMENT PURCHASE STATED ....YTM ....MATURITY DAYS
NUMBER ISSUER DATE BOOK VALUE FACE VALUE MARKET VALUE RATE 360 365 DATE TO MAT
.............................. "- ......................................~ ...........L ................................................
TREASURY SECURITIES - COUPON
182 U.S. Treasury 03/21/96 2,998,767.12 3,000,000.00 3,000,’480.00 5.250 5.792 5.873 07/31/98 30
184 U.S. Treasury 03/27/96 2,995,261.24 3,000,000.00 2,995,770.00 4.750 5.697 5.776 08/31/98 61
192 U.S. Treasury 05/03/96 3,012,407.89 3,000,000.00 3,034,230.00 6.750 6.158 6.244 05/31/99 334
198 U.S. Treasury 06/17/96 3,004,619.81 3,000,000.00 3,037,500.00 ~.750 6.486 6.576 06/30/99 364
199 U.S. Treasury 07/1.0/96 3,005,806.87 3,000,000.00 3,042,660.00 6.875 6.581 6.672 07/31/99 395
SUBTOTALS and AVERAGES 15,016,862.93 15,000,000.00 15,110,640.00 6.143 6.229 237
GINNIE MAE’S
161 Fed Home Ln Mort Corp 07/05/83 28,937.44 28,231.65 28,937.44 12.450 11.875 12.039 09/15/09 4,094
162 Fed Home Ln Mort Corp 02/16/79 76,871.21 78,223.83 86,881.14 i0.000 I0.120 10.261 02/01/09 3,868
160 Govt. Natl. Mortgage Assn 01/26/87 260,799.21 252,972.86 272,093.53 9.000 8.449 8.566 ii/15/16 6,712
SUBTOTALS and AVERAGES
TOTAL INVESTMENTS and AVERAGES
366,607.86 359,428.34 387,912.11 9.070 9.196 S,909
251,740,428.59
252,153~686.30 253,971,619.66 6.009%6.093%673====================================================================================
ATTACHMENT C
Investment Policy Compliance
as of June 30, 1998
No more than 10 percent of the portfolio in collateralized Certificates of
Deposit (CDS) of any institution.
No more than 30 percent of the portfolio in Banker’s Acceptance Notes.
- No more than $5 million with any one institution.
No more than 15 percent of the portfolio in Commercial Paper.
- No more than $3 million with any one institution.
Limit investments exclusively to those stipulated under types of investment.
No more than 10 percent of the portfolio in Farm Credit Securities.
No more than 2 percent of the portfolio in the Guaranteed Portion of Small
Business Administration Notes.
No more than 15 percent of portfolio in Mutual Funds.
No more than 20 percent of portfolio in callable or Multi-Step-up
government agency securities.
Liquidity enough to meet one month’s cash needs.
At least $50 million maturing in less than 2 years.
No more than 20 percent of the portfolio shall be in investments maturing in
more than five years.
Market value of the portfolio will exceed 95 percent of the amortized cost
basis of the portfolio.
0.00%
0.00%
0.00%
No exceptions
.80%
0.00%
2.0%
17.0%
$ 23.9 million
$123.6 million
.15%
100.8%