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HomeMy WebLinkAbout0198.091• o «1>.. .' . . .. .... ,~ March 21. 1991 TH£ HONORABLE CITY COUNCIL Pa10 Alto, CalifornIa '. III'lWMENT ACTIVITY REPORT FOR FEBRUARY 1991 Meobers of the CouncIl: Thls is an info~t1Qn report and ~o tounc11 action is nttessary. II!T£RW IIICO!!£ Interest Inc .... (cash bas;.) for the month of February was $1,124,518 and for lhe first eIght IIOnth. of 1990-91 totalled $7.2 ml1l1on, 72 percent of the new .nnu.l target of S10 mllllon_ The preyious target of S8.8 million ha. been incr.ased to $10 .i1110n due to in increase ill the size of the portfolio, ind staff's ability to lock i. hlgher-than-antlcipated r.tes durIng fi.c.l ye.r 1990-91. The portfolio has grown from the S106 oillion in February 1990 (used for the original e.tlmate) to S120 million currently. The uncertainty of the financi.l .ar'kets allowed staff to purchase 529.5 ibil] ion of treasury note-s with maturities trOll 6/30/92 to 11/15/93 and coupons from 7.75 percent to 8.375 percent. These rates were IIOre attractive than originally anticipated and well above the turrent rJ.te of 6.96 percent for two-year treasury nntes. g.lfIfI PORTFOLIO The plr villue of the City's portfoHo is approximately Sl2Q lIillion, which consists elf $80,)1IIi1110n l Dr 67 percent, .atuTing within twa years. Most of the in.e.tllent., 596.4 .1111on, or 80 percent, are 10 United Stote. Go,ernment Securtties. The current .arket .alue of the poetfoliD ;s 101.3 percent of co.t. CIIR: 198:91 .... . > , . , , • o CG!!PI.INlCE WI TIl 1!!'t£SJ!!E!!T POL! cy A5 ef February ZB, 1991, the Investoent portfolio was fn cgap11.nc. wlt~ .11 ~leoent' of the City'S Investoent pol1cy. In March 1991 projections Indicate receipts w111 be 116.8 .11110n; "pendltures will be S13.4 .fll10n; and S14.~ ai1110n of f.vestments will •• t.re. 0. the basis of the above prOjection, there wfll be sufflcfent funds to ... t Palo Alto's •• penditure requirements for tho oonth of ~TCh. Based upon the ca.h flow projections prepored by Tre.sury staff for fhc.l year 1990·9!, there wi 11 bo sufflcfent funds (rOOt revenues and ~turSng fnvest~nts to ~et all expenditure requfreaent5 for t~e remainder of the flsc.1 yoar. ~espectf.111 submitted, /~~~ GORDON B. fORO Treasury Man.gor ~ !i8L-<.-<.fo(L-<...J r ance DIM!<.t",r; u.~r:?V-"" CIIR: 198: 91 , .' .. '~'- ',' •. ',' c " ~ '.~" , "/" --;.:;. . ,~, F,ge I of 5 REPORT OF lllY[STlIOOS FEBRUARY 28, 1991 Por Amo.nt 02/29/91 1990-91 01/31/91 IY IMI!J!lITY lin I !lilURn!l ,Ill IIr9n III With 'n I IIOnth $ 14.60 12.2 > 56 I i.7 1-3 IIDnU. 8.00 6.7 6.9 3-6 MnU. 10.00 8.3 6.9 6-9 "nth. 5.00 4.2 3.4 9-12 IIOnt~. 5.00 6.7 6.9 1-2 years ~ ZLl ~ llithln 2 year. ~.IO 66.7 > $35 61.1 2-5 year. 34.55 2B.8 33.7 5-1Q years 3.l0 2.1 2.8 10-20 years 1.24 1.0 1.1 20-30 years ~ -zl. ......J. Over Z yea.rs 39.91 13.3 31>.1 TOTAL 120.01 100.~ IO~ 100.011 IY m~ QE IIIVESTM£HT Local Agency In,.stment f~nd 10.00 S.l 8.6 lllltua 1 Fund .60 .5 .5 C.rtlfleot •• of Deposit: Col 1ote .. ll zed 13.00 10.8 if!~g Cit! of PlIo Ait. Bonds .06 .1 .1 U.S. 1 ...... ury 50.50 42.1 44.4 U.S. Agoney !i.ll 1l.l JU TOTAl 120.01 100. OS 10~ IOO.~ Mark.t Y.lue/Cost SI21.5/li9.9 ',:-. fOg<! 2 of 5 R!PGtIT Of INVESTIIOOS fEBRUARY ~e, 1991 Purchlse Interest ~.t.rity Pir ".r1<.t Unr •• 11 zed Price 'erlod ~ Ritt!l1 l2~te !ili.t !IlYt ilia (Lszu) 811iDS:;!: fil:BfD9~ IN~m!lfm Local AgeneY Inyestaorrt Fund (PAl LAlF 8.09 03-01-91 10,000,000 10,000,000 10,000,000 • !!utual flI!c! (0.501) FidelIty In •• stlents 6.28 03-01-91 500,000 500,000 SOD ,000 2,813 FrantHe l_tant. 6.26 03-01-11 ~ 100.000 100·000 !dlJ 600,000 600,000 600,000 7,746 ~Jj;Ifl~lt!li ~t I!!!lmlt UO..tm fidel It, feder.l It.llateral) 7.9S 03-04-9] 2,000,000 2,000,000 2,000,000 fidel It, Feder.l (Collateral) B.OO 04-23-91 3,000,000 3,000,000 3,000,000 '1 end.le Federal (tollateral) 7.00 06-27-11 3,000,000 3.000,000 3.000.000 Glend.le Feder,1 teoll.teral) 7.65 01-01-91 3,000,000 3.000 t OOO 3 J ooo,ooo fl4elltJ Feder.l Collate ... l) 7.00 10-29-91 2,000,000 2-000,000 2.000.000 13,000,000 13,000,000 13,000,000 • ,.10 Alto lal) a._It !Ionc!s (.os'a SerIes P 10.95 01-02-93 55,COO 55,000 55,000 ![,S. !!'en,," 142,081) TrelSury I'iotes 9.75 03-31-91 2,000,000 1.99; .813 1,997t~a TreasUT1 Notes 7.15 11-30-91 2,000,000 2,005,625 2,005,625 C"R: 198:91 'age l of 5 REPORT OF I N¥£S1lIEIITS FEBRUAR~ 28, 1991 Purchase 1ntere.t Maturity Par Market Unrullzed Price PerIod IIIlII!ii S.if OaU !illf !:il.!lL iii)!:! fL~ul flil~!!'i Eir.nlll9l U.S. Treasury (Continued) Tre ...... y Note. e.13 01·31-92 6,000,000 5,947,134 5,941,734 Tr ... ury Notes B.SO 02-29-92 2,000,000 2,002,8)3 2,002,813 85,000 • Tr1ll.ury Not .. B.SO 03-31-92 4,000,000 4,074,000 B5,094 3,988,!!06 Trea.UI')' Note. 8.3B 06-30-~2 7,000,000 7,133,000 118,547 7,014,453 Trelsury Noto. 8.25 OB-15-92 3,000,000 3,054,000 75,969 2,971,031 \23,7SO Trelsur,J "nt,e .. 8.38 11-15-92 2,000,000 2,043,000 33,625 2,009,375 Trea S"ry Notes 8.15 01-15-93 2,000,000 2,059,000 49,000 2,010,000 TrelSury Notes 8.25 02-15-93 4.500,000 4,597,OOll 87,625 4,5OS,375 182,935 Treasury Not •• B.13 06-30-93 3,000,000 3,064,000 48,062 3,015,938 T ...... ury Hotes 8.00 08-15-93 7,000,000 7,12;,OOll 140,875 6,988,125 190,435 Treasury Note. S.25 09·30-93 4,000,000 4,098,000 62,052 4,035,938 Treasury Notes 1.75 1\·15-93 2,OOO.OpO 2,024.000 875 2,023.125 SO,500,OOO 51,228,985 702,734 50,526,251 SBl,I10 II.S. A&lIICY 1;Y.llSl F_ 1.20 04-\0-9\ 1,000,000 1,000,000 1,000,000 FHlB 7.88 05-27-91 4,000,000 4,011,500 4,012,500 FIf!A B.5S 06-10-91 1,000,000 1,000,000 1,000 .. 000 • F_ 8.40 08·12·91 1,000,000 1.000.000 1,000,000 42,000 fHlB 1.20 08-26-91 2,000,000 2,018,150 2,018,150 72,000 FHlB 7.40 09-25·91 1,000,000 1,000,000 1,000,000 FHlB B.BS 03·25-92 2,000,000 2,043,000 43,000 2,000,000 FN'IA S.45 05·11-92 2,000,000 2,036,000 36,000 2',000,000 FIllA 8.45 07-10-92 2,000,000 2,041,000 41,000 2,000,000 fHLB 8.60 08-25-92 1,000,000 1,021,000 21,000 1,000,000 43,000 FHlB 9.05 12·28-92 3,000,000 3,096,000 81,000 3,015,000 fIfIA 1.95 02-10-93 2,000,000 2,029,000 29,000 2,000,000 19,500 Ci'IR:I98:91 ~ u.s. AGENCy (ContInued) SLM FlIIo\ nlll FHlB flU FHlB FHlB flU FHUIC (0) FHlB (b) FlIIo\ (e) FIllA H! FlIIo\ (~I TlA FlIIo\ (e) FHlIIC (Pil) FHUIC (Pil SetrI-AnnUilly) GIN (Pil) Matured and $old Investments TNUlII'7 IIotes (f) fIlM ,., .-. . . ~". "';:-'-.' ;~~ - ---. '?o- .-~~ .. . ·~tl· / -.~ ',' . _":'-.---'-' -----:.; .. :.---- REPORT OF IICYESTIIOOS FEBRllMY 28, 199! Into""st "aturlt, Par Market Rate O;It. W.I!l I!l!!L 10.SO 04-22·93 1,000,000 1,063.000 10,15 05-10-S3 1,000,000 1,069,000 10.75 05-25-93 I ,000 ,GOO 1,011,000 7.75 01-16-93 1,000,000 1,011,000 7.45 08-25-93 2,000,000 2,006,000 1_95 09-21-93 1,000,000 I,OIl,OOO 12.15 12-11-93 2,500,000 2,190,000 7.55 01·25-94 2,000,000 2,009,000 8.80 08-28-95 Z.OOOtOOO 2t OO8 .OOO 7.95 12-26-95 3.000,000 3,On,Ooo 7.70 02-12·11 2.000.000 1.984.000 7.60 01-10-91 2,000,000 1,963,000 7.35 01-20-91 500,000 485,000 1.40 10-01-97 400,000 381,000 7.35 04-01-98 400,000 381,000 8.20 07-10-02 500,000 480,COO 10.CO 02-01-09 484,784 505,000 12.45 09·15-09 255,000 286,000 9.00 11-15-16 817.664 819,000 45,657,448 46,634,2SO 1.31 02-28·'1 1.65 02-11-91 ___ _ .' --"'-.. - Un"".llled Glfn (loss) 63,000 136,063 72,875 12,2SO 6,000 21,125 352,500 5,875 8,000 13,000 (l3,500) (l9,81l) (15,000) 19,125 09,000} (20,000) 36,622 lZ,37!i 129.5831 814,914 Purchase Price hl.nct 1,000,000 930,937 998,125 998,750 2,000,000 991,875 2,437,500 2,003,125 Z,OOO.OOO 3,000,000 1,"7,500 2,002,813 500,000 361,875 400,000 500,000 468,318 213,625 848,583 45,759,336 'age 4 of 5 P.~lod EandQGs 14,~ 88,000 • 4,087 6,140 409,227 41,125 • H.g TOTAl.. IIIYU1lIEIITS (100II) $120,012,448 $121,518,235 $1,571,648 $119,940,587 $1,124,511 (PII) Principal and Interest paYMents .. nthly. Investwent! w1th .aturit1es of less t~an one y~ar are ya'~!d at cost~ Purchues ,'nce lost ... port .... shown ,. bold t,~ •. (a) fHlMC has. callable optIon, begInnIng on 8-28-91_ (b) fHlB has a callable option, beginning on 12-27-93. (c) fNNA hi' a callable option, begInning on 2-12-94. (d) FNNA has a callable optIon eyery Interest payment due date (Apr., Oct.). (e) FNMA h.s • call.ble optIon every Interest payment due date (Jan., Jul.). (f) US Treasury Note .aturtng 2-28-91 earned $46,875 in interest, plus $2,050 In purchas. dl,count. CIIR:I98:91 o " \lork !I!lll Inter ... t loe_ l Effoctl.! Annual Rat •• f Retu", On InvostllOnU " CIIR:I98:91 JIITWST JIICOII[ (CASK lASTS) F£IIUAll 18, 1"1 Increne r. Otto T. Date (Deer ... o) 1989-90 1990·91 1990·91 6,489,181 1,156,525 665,744 '.00 e,57 (.33) c _ •• Page 5 of 5 " Of Target Target To pilte 10,000,000 11.56 8.50 102.00