The URL can be used to link to this page

Home My WebLink About0196.092, - ~o , .. '.'. ..' .' . . ~ " April 2. 1992 THE HONORABLE CITY COUNCIL Palo Alto J Californii INVESTMENT ACTIVITY REPORT FOR FEBRUARY 1992 Members of t~e Council: This is an informational report and no Council acticM is necessary. INTERESJ INCO!!£ 171terest illcome en an accrual basis for the month of January was SS68~626 and for tne first eight :aonths of 1991-92 totalled $6.8 mii rion, 70 perc~!'1t of the annual target of $9.8 million. On I cash basis, rec!ipts totalled $;86,973 for January .n1 $7.5 million year to date. Staff has prepared i gra.ph for fiscal ye;el'" 1991-92 that shows tne year-to-date history of interest incrnae in th~ accrual basis and in tne cish basis formats. The accrual basis clearly shows I steady line and Tess distortion ~n month1y report1"9. This was the reason staff changed reporting to accru~l basis beginning with list IiIOnthts lnvestm&nt Acth';ty Report, , - . ~- ~-;"' ___ ~ ________ f_ CMR;196:92 !!lTER.ST RATES In f<9bruary, staff ~nyested SS.IS million in, CertHicah of Oeposit and twa Sankers Acceptances, at a~erage fates of ju~t under 4 pe~cent. Sinc~ int~rest rates hive ~~n at historic low lev-els, the placements wert in short-tert!l maturjties~ April and May. ClJl!RDIT 'ORTFOL! 0 The par value of the-C\ty's portfolio is approximateiy $142 mill ion, which consists of $Hn.4 million, or 72 percent~ maturing within two years. Most of the 1rlIJestments, $112.3 million, Dr 79 percent, are in United States Government Securities. The current mark.et 'ii.lue of the portfolio is JOl.~ perceont of cost. COMPL!ANCE WITH INVESTME!IT pOLICY As of Februar~ 29, 1992~ the investment portfolio was in compliance with all elements of the City's investIJlent pcl ic.y. In Marth 1992, projections indicated r~ceipts would be $16.5 million; expenditures would be $16.5 mil1fon; and $23.2 million ir. investments would mature. On the basis of the above projection, there were sufficient funds to me.et Palo Alto's expenditure requirements for the month of Marcn~ Based upon the cash flow projections prepared by Treasury staff for fiscal year 1991-92. there are suffir.ient funds from revenues and matllring invest~~nts to meet all e~pend;ture requirements for the remainder of the fiscal year. CMR:196:92 ,':-'-. i~~i·· .--:--, - I .--~ ."'; -:~ .-.-'-:':"-~-"--"'""''''-""c""....;· ... 1 " --- ,,' Page 1 of 5 REPORT Of lNYESTMOO5 fEBRUARY Zg. 1~;2 Par Air.clJnt 02/29/92 1991-92 01/31/92 BY MATURITY (In I Million.l __ ~L_ Target ,%) Within 1 month $ Zl.ZO li.37 > 55 14.3 1·3 months 1i.15 11.40 9.3 3-6 months 13.00 9.17 9.3 5-9 mont.hs 2.00 1.41 2.8 9-12 mooths !1.50 S.11 5.0 I -2 years J2..54 25.08 30.1 Within 2 years 101.39 71. 54 > S35 70.8 2-5 years 38.50 27.ll 27.5 5-liJ years .40 .28 .6 10-20 years .~4 .45 .5 20-30 years .............ll __ ....d.\. ~ Over 2 years 40.32 28.46 29.2 TOTAL 141. 71 100.0% 100ll 100.0lI BY TYP~ Of I NY ESTMENT local Agency Investm€nt Fund 15.00 10.59 10.7 ~utual Fund .20 .14 . I Certificates of Deposit: Collateral iled ~.OO 4.23 2.9 Bankers Acceptance3 8.15 5.75 5.5 (ity of Palo Alto Sands ", .03 . 1 ."' U.S. Treasury 59.50 41.99 41.6 U.S. Agency 52~2. ll...ll ..Jbl TOTAL !4i.71 100. 0lI 100% iOO.OlI Market Value/Cost 1I44.6/141.2 101.i% > 95', 102.0% CMR: 196 :92 , '"",.-'I." ~ru; l!1llill\Ilill REPORT OF 'NVESTMENTS FEBRUARY 29, 1992 Int.ere~t Maturity ~Ril~_ _OJ1L. POor 'lilJJ_~ Market WR ~LAg.ncY Investm~nd no.Wi], LAIF 5,86 03-01-92 15,000,00 15,000,000 !!!Ltu.1 Fund ~ _l Fidelity Inve~tments 4,02 03-01-92 100,VOO 100,000 ~. ank' in Inve_~trtl@nts 3.81 03-01-92 lQQ.&QQ lQMQQ 200,000 200,000 fd rt1 f1 C.to,L!11. DepQ._!L(!.1.2%]. Sunltomo Bank (Collater'l) 4,00 04-09-92 Z,OOO.OOO 2,000,000 ri.,11ty fod, (Collatoral) 5,75 04-2]·92 2,000,000 2,000,000 City National Bank (Collateral) 4.75 05-19-91 Z.QQQ,QOQ _z....QQO..JJQQ 6,000,000 6,000,000 ~Jrurr~~R1.m~'s (5.75%1 Sanwa Bank ],96 04-06-92 1,000,000 1,980,836 Sanwa Bank 4,00 04-27 -92 3,000,000 1,963,791 5umitomo Bank 3,93 05-26-92 2,000,000 1,977,151 sumitomo Bank 3.93 05-2~-9Z Ll~ 1.136.986 8,150,000 R,058,765 !'.~.to ImDrQv!!!!J!'ot Bonds (,031;). Seri~s. P 10,95 01-0Z-9~ 36,000 38,000 CMR:196:92 I ~-.--.. -.... Unr •• l iled \i!1!Ul..ruJ Purchase Pr'!ce alli= 15,000,000 100,000 JJl~ 200,000 2,000,000 2,000,000 ~QQ 6,000,000 1,~80,836 2,963,792 1,977,151 W_~H 8,058,765 38,000 , ;'-" Page 2 of 5 Accrual Sash Earnings 75,0000 323 --1~ 631 3,556 9,164 l---ill 20,473 G,l)!!.) 9."~O 4,O~6 z..ill 21,961 347 .. . , , . ! . { i I , -,/ • \", .t ',', "":. . 'j' ,:1:'~' ',:ijf2!1~;'",:_;.,:,,;· :\'i'!f'i.} .. ~." .' .::;;,.",<,.'Wi'¥.t~. ~. _. '-''',_,;,'" ",f "-, :"'" '\:-10.-' -, _ I .'. '-::""'. I. , 1 I , ~r •• surv (41,99%) Treasury Notes Trf~.sury Notes Tr@iS.ury Notes Treasury Notes Treasury Notes Treasury Note:; Treasury Notes Treasury Notes Treasury Notes. Treasury Notes Treasury Notes Treasury Notes Treasury Notes Treasury Notes U,S, AGEfjQ.D.Llllll FHL8 FNMA FNMA FHlB fHL8 FNMA SLMA FNMA fHlB FHLB fHlB CMR:196:9Z REPORT OF INVESTRENTS FEBRUARY 29, 1992 Interest Maturity -"ill 0ili- 0.50 8.50 B.38 8.25 B.3B 8,75 8.25 B.13 8,00 8,25 7.7S 7,63 7.00 6,00 02'29-92 03-31·92 06·30-92 08-15-9Z 11·15-9Z 01-15·93 02·15·93 06·30-93 OB-15·93 09·30-93 11-15-9] 12-]1·93 05·15·94 11·15-94 Par Yi.I!!ft 2,000,000 4,000,000 7,000,000 3,000,000 2,000,000 Z,OOO,OOO 4,500,000 3,000,000 7,000,000 4,000,000 8,000,000 2,000,000 ~,OOO,OOO ..5.,.Q@.,QQQ Market hl~ 2,OOZ,81] 3, 98B, 906 7,014,45] 2,977,031 2,009,]75 2,010,000 4,509,]75 3,127,000 7,l98,OOO 4,195,000 8,3]5,000 2,084,000 6,195,000 ~j)QQ Unrealized ~.iJJUi.J!lli 111,061 309,875 159,062 253,437 67,125 1,3,125 1I.Mill 59,500,000 60,789,953 1,016,123 8.B5 8.45 8.45 8.60 9.05 7.95 10.50 10.75 10.75 1,75 7.45 03-Z5·92 05-11·92 07 ·10-92 08-25-92 12-28-92 02·10·93 04·22-93 05-10·93 05·25-9] 07-26·9] 08·25·93 2,000,000 2,000,000 Z ,000,000 1,000,000 3,000,000 Z,OOO,OOO 1,000,000 1,000,000 1,000,000 1,000,000 2,000,000 Z,OOO,OOO 2,000,000 2,000,000 1,000,000 3,015,000 2,000,000 1,061,000 1,068,000 1,069,000 1, 038, 000 2,063,000 61,000 137,063 70,875 39,l50 63,000 Purchase Prit@ Bili= 2,002,813 3,98B,906 7,014,453 2,977,0]1 2,009,]75 2,010,000 4,509,375 3,015,938 6,968,125 4,035,938 8,OBI,563 l,016,815 6,071,875 ~~. 59,773,830 2,000,000 2,OOO,OCO 2,000,000 1,000,000 3,015,000 2,000,000 1,000,000 930,937 998,125 99B,750 2,000,000 • . '-~ P.ge J of 5 Accrual Basis illn.~ 14,167 28,333 48,854 j 20,625 13,958 14,58] 30,9]8 20,313 46,667 27,500 51,667 12,708 35,000 .AQQQ 390,313 14,750 ) 14 ,06l ' 14,083 7,167 22,625 13,250 8,750 8,956 8,958 6.11~ (~ 12,417 \ } i I J , :< . -' ~. 'I, __ l ~:"'."T.. j I i Page 4 of S REPORT OF INVESTMENTS FEBRUARY 29, 1992 " . Purchase Accrual Interest Maturi ty Par Market Unrealized Pr1c@ Oa'.l15 SQJ!Bll -1!.te ~ilt· .'UlJrn U,S,_AQEIICY (ConLn'Jed) W.lI!L ~ljD (LQUl ~iliill_ Earnin .. FHLB 7.95 09·27·93 1,000,000 1,036,000 ~4,125 991,875 6,(025 FHLB 12.15 12·27·93 2,500,000 2,781,000 343,500 2,437,500 25,313 FHLB 7.55 01-25-94 2,000,000 2,072,000 68,875 2,003,125 12,583;, ) FHLB 7.50 06·27·94 5,000,000 5,202,000 114,B12 5,087,189 31,250' FNMA 7.45 07·11·94 3,000,000 3,ll4,OOO 77 ,203 3,036,797 18,625 FHlB 6.70 08·25·94 8,000,000 8,110,000 (76,250) 8,246,250 44,667 r~LB 6.58 09-26-94 4,000.000 4,073,000 (31.688) 4,104,688 21,933 FHIB (a) 7.95 12-26-95 3,000.000 3,131,000 131,000 3,000,000 19,875 FNMA (b) 7.70 02·12·96 2,000,000 2,077 ,DOD 79,500 1.997,500 12,833 fNMA 7,60 01·10,97 2,000,000 2,064,000 61,187 2,002,B13 12,667 FL8 7.35 01·20·97 500,000 511,000 11,000 500,000 3,063 FNMA (c) 7.40 10·01·97 400,000 413,000 51,125 361,875 2,467 FHLMC (PU) 10.00 02·01-09 412,652 445,000 48,754 396,246 3,500 FH1MC (P&I Semi-Annually) 12.45 09-15-09 227,000 265,000 19,375 245.625 2,355 GNMA (P&I) 9.00 11-15-16 Z8!.W BZQ,QQQ --.l.J44 ~~.s.~ ~~ 52,821,389 54,488,000 1,321,050 53,166,950 355, !.IS Matur~d and Sold Invest~t> Sumitomo Bank (Collater.l) 4,99 02-10·gz 3,mO TVA (d) 7,35 04-01-98 1.062 TOTAL INVESTMENTS (1007.) S141,709,389 S144,574,758 S2,337.173 S14l.237,545 S868,626 (P&I) Pfincipal and Interest payments monthly. Investment!. with matlltlties of less than one year are valued at cost. Purchases since last report are shewn in bold type. (a) FHlB has a callable option, beginning on 12-27·93. (h) lNMA has a callable option. beginning on 02·:7.·94. (c) FNHA has a callable option every lnterest payment due dale (Apr., Oct.). (d) The TVA callable option was exercised on 02-13-92. CMR:196:92 1_ ..... _._ .- ;,,' i \ 1 .'. ~ i ~ .' j ) 1 ~,' 1 i , ~ i I~TfREST I~C~E (~CCAUAl !ASIS) FEBRUARY 29, 1992 To Date Incre.ase Work 1990~91 To D~te (Oecrease) Unit {Casr. Basjs) 1991 ~91 19~ Interest Income S Effective Annual 7 ,156,525 6,833,932 (322,593) Rate of Return On ]nvestlTlents ~ 8.67 7.95 (.72) In.t.ere.!it Rat,s as of FebruaP"'Y 29. 1992 Prime Rate: 6.5~ 3-month Treasury Bill: 4.0% 3-month Bankers Acceptance: 4.0% 3-mont~ Certificates of Dep~sit: 3.7\ 2-ye.r Treasury Note: 5.3\ 2-year Agency: 5.5~ CMR:196:92 • Page 5 of 5 10 Of Target I~J::gct lLPate. 9,BOO,000 69.73 8.20 96.95