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Home My WebLink About0348.092·• '. - J. «P . , .., " ",.: THE HONa~BLE ClTY COUNCIL Palo Alto, C.l1fornia IHYEST~ENT ,,"TlYITY REPORT fO~ JUNE 1992 Members of the Council: This ;5 an informational report and no CouncfJ action is necessary. HlTEREST mONE Interest income on an accrual basis for the month of June was $884.112 and far the fiscal ye.r of 1991-92 totalled $10.3 million, 99 percent of the ,nnu,l target of 510.35 million. On, cash basis, receipts totalled S],095,824 for June and $10.6 million year to date. These f"igrJres are subject to audit and may c~ange slightly far public.ticn in the Comprehensive Annual Financial Report. CURRENT PQRTFOLIO The par villue .of the City's portfolio is approximately $)52 million, .... hich conSists of Sl03 million, or 68 percent, maturing within two years. Most cf the investments, $115 mill ion, or 76 percent. are in United States Government S!curities. The current market value of the portfJl10 is 101.7 percent of cost. JI!TEREST AATP AND INVESTMENTS In June, staff invested $5 million in a Sankers ~cceptance. at an average return ·:Jf 3.89 percent. Staff a1so inllested S6 million in Certificates of Deposit at an average rate of 4 percent. Interest rates have continued to decline due to the (ontinuin~ recession. CMR:348:92 '-'-. ..-... AX, I. ;ILlIi'\lI,.,;/: . 1 £ . : r------------------------- ! . ~ ! I ~ I' , , ~ I, ! ", I , r , . r , f I : I~- >----------'6--__ ---------------<5- ..----------~-- -' -_._-------------------",. _ ________ t"">-_______ --I: _.-.J In the January report, staff included a graph from June 1989 to December 1991 which showed tnat the three-month Treasury rate dropped from over 8 percent to under 4 perc~nt, while the City portfolio stayed in the B to 9 percent range. As anticipated, the return on the City portfolio is now below 8 percent, but as shown above, even though tI-Je tnree-lTKlnth Treu<Jry rate has stayed below -4 percent. the good longer-term investments of a year ago continue to provide an excellent return. COMPLIANCE WITH INVESTMENT POLICY As of June 30.1992, the jnve~tment portfolio 'Was in compliance with all elements of the City's investment 'policy. fro July 1992, projections ind;c~te receipts and Ulf! $17~2 million in investments maturing will exceed expenditures. On the basis of tne abo\le projection, there are :iuffic:ient funds to meet Palo Alto's expenditure requlnn;.e!')ts for the montn of July. Staff is in the procE!'ss of completing a nEW cash forecast for fiscal y~ar 1992-93 based on tne new budget. LAl fR Z ~~ Financia Analyst Asst. City Manager CMR:348: 92 JIll· .'-> . , .:~"~>t:_~' .. ~ .. .. ~ " _.' , :1 :1 1 ., 8Y MATljRITY 1 WitMi n I manin 1·3 months 3·6 months 6-9 months 9-12 mnnths 1-2 years Within 2 years 2~5 years 5-10 years 10-20 years 20-30 years Over 2 years TOTAL Il !1P~ OF IHV,STMENT local Agency Investment Fund Mutual Fund Certificates of Deposit: Coll ater.l iled Bankers Acc€ptances Commercial Paper City of Palo Alto Bonds U.S. Treasury U.S. Agency TOTAL Market Value/Cost CMR:348:92 __ ,_ , ___ .>_. __ c '''''-''-'''''"--,.'''''",, Pa:;e REPORT OF :NVESTME~7S JUNE 30, 1992 Par Amount 06/30/92 1991-92 (In I Mjllionsi -(%1 Target 517.20 11.31 > $6 10.00 6.58 8.00 5.25 17. SO 11. 51 10.00 6.58 !L~ 26.66 103.24 67.90 > 535 47.50 31.24 .00 .00 .60 .40 -.ll ~ 48.81 36.35 152.05 100.0% 100% 15.00 9.86 .20 .13 16.00 10.52 5.00 3.29 1.00 .66 .04 .03 46.50 30.58 §~ 44.93 152.05 100.0% 100'11 S 155 .3/152.7 101.7% > 95" I of 6 05/31(92 {%I 14.99 4.05 2.03 11.J4 5.40 26.03 63.65 35.46 .00 .41 ~ 36.35 100.0% 10.13 .14 6.75 .00 .68 .03 36.13 ~U 100.0% 101.4% -:jr"- '</. .. . _______ ~ ___ .k.~_._".,_ t ; .; .,' :··).:iit~11"·i':A·";';" I : {;t6-;~';;:"·,;.~J';_;\,'~~frfjt:ttrt:f,;'i\-~ REPORT Of INVESTMENTS rlge Z of 6 JUlIE 3D, 1992 Ptlrchase Accrual !nterest Maturity Par Market Unre.l1zed Pr~ce Basis I SWl!.1& ~L ---'2l!.L YiJJ!.e ffi~~ ~-illt.J.I.illJ aj]ant~ EarningS I • -'I .llilli1l!0lli I ~ yf- ',"-1'" ~ ... ~L~llll.lnv.st""'nt Fund (~ I '. LAIF 5.32 07-01·92 15,000,00 15,000,000 15,000,000 65,126 ;) , l ~l Fund (0.13~) I Fidelity Investment~ 3.76 07·01-92 100,000 100,000 100,000 310 ,- Franklin Investments 3.62 07-01·92 lQQ."QQQ ~.2 lQQ..QQ2 -ill 200,000 200,000 200,000 612 Certlflt.tos Qf Do~osl~ (IQ,~Z~l Sumltomo Bank (Col1,tora1) 4.30 1;·29-92 3,000,000 3,000,000 3,000,000 10,750 Sumitomo Bank (Coll.tera1) 4.30 01-06·92 2,000,000 2,000,000 2,000,000 7,167 Fidelity Federal (Coll.t ... ,) 4.00 01-11-93 2,000,000 2,000,000 2,000.000 1,111 Fidelity Foder,' (Collater.Ii) 4.00 01-20-93 2,000,000 2,000,000 2,000,000 0, . Fidelity Federal ICollateral) 4.50 03-03·93 3.000.000 3,000,000 3,000,000 ll,250' ) SlilnitOInO Sank (Coll ateral ) 4,05 04-07-93 2,000,000 2,000,000 2,000,000 2,415 Fidelity Federal (Coll.teral) 4.45 05-19·93 -L.2QQ...QOQ ..lJlQQ...2QQ ..l.J!9.2.&Q.Q ..L..lli 16,000,000 16,000,000 16,000.000 40,170 B,nkers Acc.pt~~ S...... Bank 3.89 08-28-92 5,000,000 4,968,369 4,968,369 0 .. ~ CMR:348:92 f " I: . REPORT OF INVESTMENTS JUNE 3D, 1992 Interest Maturity P,r M'r~,.t .slll!BQ; -'lill.. Date ~ hl!!L ~omm.rcla' Pap~~§!l General Electric 4.25 09-25-92 1,000,000 978,986 Pal. Al~!:2Yement Bonds~ Series P 10.95 07-02-93 38,000 38,000 U.S, Treasury (3~1 Treasury Notes B.25 OB-15-92 3,000,000 2,977,031 Treasury Notes B.38 11-15-92 2,000,000 2,009,375 Treasury Notes 8.75 01-15·93 2,000,000 2,010,000 Treasury Notes 8.25 02·15-93 4,500,000 4,509,375 Treasury Notes B.13 06-30-93 3,000,000 3,015,930 Treasury Notes 8.00 OB-15·93 7,000,000 7,284,000 Treasury Notes s.zr, 0~·30·93 4,000,000 4,190,000 Treasury Notes 7.75 11·15-93 B,OOO,OOO 8,350,000 Treasury Notes 7.63 12-31·93 2,000,000 2,090,000 Treasury Notes 7.00 05·15·94 6,000,000 6,23~,000 Treasury Notes 6.00 11·15·94 ..l...Q.Q~QQ . 5.102,000 46,500,000 47,771.719 CMR:34B:9Z , '", )1., .. "" _ ' ... ~_L~~'_':'"i-____ 'y!:.:/:,.,.;~ ... ~...,.." .. ",,- ., Piige 3 of 6 Purchase Accrual Unrealized Price U,sh Gain (lo,,) Balance Earnings. 978,986 3,5420 38,000 341 2,977,031 lO,625 2,009,375 lJ ,958 Z,O!O,OOO 14,583 4,509,375 30,93. a 3,015,938 20,313 295,875 6,988,1<5 46,667 154,062 4,035,938 27,500 ) 683,437 0,081,563 S!,667 73,125 2,016,875 12,708 162.125 6,071,875 35,000 ~m 5,OSl.S§J. ..li.QQQ 1,004,061 46,767,658 296,959 • · , • , J ! \ I ! , t.' ,;, r ~1i~ ._1· .-,'t '.' ,', REPORT OF INVESTMENTS P.ge 4 of 6 JUNE 30. 1992 Purchase Accrual Interest Maturity Par ~ark.t 1J""'ealiled Price Bash ~ru;l .-'iill Dite hl~e YJllIL ~ ... \n (L~~sl 1tllintL. f.AtIl1mlt , " !L.1.-AGE!!CY ( 4!.Jl}):~ fNMA 8.45 07-10-92 2,000,000 2,000,000 2,000,000 14,083 FIllS 6.60 06-25-92 1,000,000 1,000,000 1,000,000 7,167 0 FHlB 9.05 12-28-92 3,000,000 3,015,000 3,015,000 22,625 FHMA 7.95 02-10-93 2,000,000 2,000,000 2,000,000 11,250 SLMA 10.511 04-22-93 I,OCO,OOO 1,000,000 1,000,000 8,750 FNMA 10,75 05-10-93 1,000,000 930,931 930,937 8,958 FHLB 10.75 05-25-93 1,000,000 99B,I25 998,125 8,958 fHl8 7.15 01-26-93 1,000.000 1,034.000 35,250 998,750 ~,4S8 FHlB 7.45 08-25-93 2,000,000 2,065,000 65,000 2,000,000 12,417 fHLB 7.95 09-21-93 1,000,000 1,040,000 48,125 991,875 6,625 FHLB 12.15 12-27-93 2,500,000 2,767,000 329,500 2,437,500 25,313 FHLB 7.55 01-25-94 ~,OOO,OOO 2,08B,OOO 84,875 2,003,125 12,58] FHLB 7.50 06-21·94 5,000,000 5,236,000 148.812 5,031,188 31,250 FNMA 7.45 07-11-94 3,000,000 3,138,000 101,203 3,036,797 16,625 FHlB 6.70 08-25-94 8,000,000 8,260,000 13,750 8,246,250 44,667 FHlB 6.SH 09-Z6-94 4,000,000 4,105,000 312 4,104,688 ?1,933 FHLB 5.94 OZ-17-95 6,000,000 6.092,000 73,875 G,OIS,125 29,700 FHLB 6.45 03-27-95 8.000,000 8,20B,000 143,000 8,065,000 43,000 t) FHLB 6.04 04-25-95 6,000,000 6.105,000 105,625 St999.37~ 30,200 FHLB (a) 7.95 12-26-95 3,000,000 3~121,OOa 121,000 3.000,000 19,875 FNMA (b) 7.70 02·12-96 2,000,000 Z,07B,OOO 80,500 1,997,500 H,B):' FNMA 7.60 01-10-97 2,000,000 2,103,000 100,18, 2,002,813 12,667 FLB 7.35 01-20-97 500,000 519,000 19,000 500,000 3,06J fHlHC (P&I) 10.00 02-01-09 375,106 409,000 50,301) 358,100 3,104 fHLMC (PII Seml-Annu.lly) 12.45 09-15-09 227,000 265, 000 19,375 245,625 2,355 , GNMA (P&I) 9.00 11-15-16 ---.lli.1Z1 158.000 ~J.M m.z4§ .J.ill \ j • 68,316,433 70,335,062 1,552,443 68,782,619 425,902 ! i CHR:348:92 :'(~~i~:" ·~~_, __ ,_, __ ,:,:::_ r' ~,"",,"~ ~IJ: ~.M!!red and ~!i.lnY"stments TrE!asury Notes Intp.rest __ flill REPORT OF INVESTMENTS JUNE 30, 1992 Maturity .-1!iI.tL- Par ffilI~ B.38 06-30·92 Market ~ll&_ Unr.oliled Coin (Loss) Purchase Price .iJ.ill.ntt .; Page 5 of 6 Accrual Basis .EiJ:nJ.nrJ.i 40,854 TOTAL INV[STHENTS(IOO%) $152,054,433 $155,292,136 $2,556,504 $152,735,632 $884,112 {P&I} prlnctp~l and Interest pa,yments monthly. InvE!stments wiU matur1ties of less than one year are valued at cost. Purchases since last report are shown in bold type. (a) FlILB has a callable option, beginning on 12-27-93. (b) fNMA has. callabl. option, beginnhog on 02-12-94. CMR;348:92 o B." .. .4!~~,;,\~~V~~(f":~ :~:r ,;':".r' .',' -' /,;,.,~ . '. ,', ',\ .. , '" ; . . . o . -~. -'-. = .',.. ~ ~ :-:; INTEREST INCOME (ACCRUAL 8ASIS) JIlf(E 30, 1992 To Date Work 1990-91 To Date UnIt (C.,O Basis) ~ Interest Income S 9,520,124 Effecti,. Annu,1 Rate of RetUrn On Investments " 8.59 IDt~r@st R~te$ )~ pf June 3Q. 19iZ PrimE' Rate: )-month Tre.sury Bill: l-menth Bankers Accept.nce: 3-month Certificates cf Deposit; 2~yeJ~ Treasury Note: 2-yeor Agency: CHR:348:92 10,295,\]5 7.86 3.591. 3. HI. 3.41% 4.817. -1.88\ Ir!crease (Decrease) 1991-92 774,OS7 (.71j ' . . .. ~, - _ "t ~'~AlIII!l • Page 6 of 6 ~ Of lillll Target ~~ 10,350,000 99.47 8.20 95.85