HomeMy WebLinkAbout0172.094, .
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February 24, 1994
THE HONORABLE CITY COUNCil
Palo Alto, California
INVESTMENT ACTIVITY REPORT FOR JANUARY 1994
Members of the Council:
TtHs ts ar. informational report and no Coonen action is necessary.
IIf'IlJIEST INCOME
Interest Incoma on an accrual basis for the month of Jonuary was $715,948. For the
first seven months of 1993-94, interest income totaled $5.5 million. or 59 percent of
the revised annual target of $9.4 million. The effective rate of retum on an accrual
basi. is 5.29 percent for the fiscal year.
CURI\ENJpoBTfOUO
The par value of the City's portfolio is $175 million, which consists of $152 million,
or 87 percent, maturing wit~in two years. Most of the investments, $128 million, or
74 percent. are in United States Govemment securities. The current market value of
the portfo/lo is 100.7 percent of cost. Tho average life of the portfolio is 1.1 years.
INTEREST RATES ANP INVESTMENTS
in January. staff invested $2 minion in government agencies with a maturity of trvee
year. at a retum of 4.50 percent.
Interest Income has been decnning .Iowly over the laSt coupl •. of years. The following
graph for fiscal year 1993-94 shows the year·to-date interest Income for the portfono
compared to budget, and last fiscal year'sjlctt.!als.
CMR:I72:94
TIle amount of Interest 1rlcoma earned is based on the portfono size, and on the
Interest ratas of the .ecuritles in the portfolio. Although intere!! rates have decli~.
the income eamlngs for the first six months of fIscal year 1993-94 remained near
budget. due to growth in the portfolio 1$1 33 million 12191; $1 77 million 12193).
Staff lias reducod the CtJrrent fiscal year inter"SI incOfr.e tor gel from $9.7 to $9.4
mUllen. This reduction dufi"il the seeond half of the fiscal year, is a result of an
approximate 10 percent drop in the sin of the portfor.o. due to the Electric Fund
credit, as ~ as Iower-thelHlxpec1ed interest retas.
INVESTMENT INCOME
Year-to-Date
MiIions
12 ~~~---,--------------------------~ a Budget
10 la1Prior Yaa< : ~~=:=!====
4
2
o
:, '
COMpLIANCE WITH INYESTMENT POLICY
M Of January 31, 1994, the Investment pamer, 0 was in compTiance with. II ele"",nt.
of the City'. invelrtment ponCV. In February 1994-, prej .. ctions indicated receipts
WIlIJid be "1.0 million. expenditure. WOfJld be $16.3 mW;on, and $26.1 million In
imt9stments wooId mature. On the ba!l. 01 me above projection, Ih<!r. are • utrlCient
hnla to meet Palo Alto's expenditure requirements fQ( the month of February. Based
UIIQ<\ the cash flow projectionS prepared by Treasury stalf for fisc.' year 1993-94,
there alii sufficient funds from the revenues and maturing investmentS to meet all
8X1l<1ndltlJl8 requirementS for tile remainder of Ih<! fiscal year .
. ~,,,,".~
BSINARD M. STROJNY
Assistant City Maneger
CIoIFl:l72:94
.--0.
P."" 1 at 6
AfPORT OF IWESTMENTS
JANUARY 31. 1994
Par Amount 1/31/94 1993-94 12i311!l3
Un • Million,. ~ ..llwt. ---I:!L
IYMADmny _1-$ 26.10 14.95 > $6 11.32
1·3_ 28.00 16.04 11.82
:HI""""", 16,00 9. " "t7 .45
6-9 montt!s 14.00 8.02 9,57
.,,2_ 5.00 2.86 2.82
'~2 yeIIf8 l!Ulil ~ ..3UZ
Wotl1in2vun 152.10 87.12 > $50 88.45
2·6 yeaf$ 21.50 12.32 10.96
5-10...-.00 .00 .00
1().20 ..... .40 .23 .23
2().3Oyuq .....5l .....» ....:l!
0-2...,. 22.47 12.88 I !.58
TOTAl. 174.57 100.0% 100% 1()(),O%
n D'Pf Of 1NES1MENT
l.ocoI Agoncy ........... " Fund 15,00 8.59 8.44
Mutuol Fund .10 .06 < T 5". .06 c.nmcm. at Depo.lt;
Co.IIaWaJizod 19.00 10.88 10.7[) __ "-nces 12.00 e.B1 < 30"" a.7S
Conwnon:iaJ "-.00 .00 < 15% 1.69
U.S. T..,....,.-y el,OO 34.94 34.34
U.S.Agoncy §liZ ~ .ll!Jll
TOTAL 174.57 100,0% 100% 100.0""
_VoM/C<m $175,6/176.8 100.7% > 95" 100.5""
CMR:172:94
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Pogo 2 of 8
REPORt OF INVEITMENT8
JANUARY 31, 1894
"""""' .. Ac'CtU&1
IIlt.rest Mau .... 1ty Pa, Market Unt •• U2'ed Prl ... 88.il
lQlIQ .JlilL. ....DilL Y.IhIt :iIIla £illn.1l.oul l!I!a!D.. &imIruII
INVESTMENTS
LRGIJ ARIDsrl !£!~II~mIOl hm;t '1,I1S!l!l
LAIF 4.36 02·01·94 16,000,000 16.000,000 16,000,000 54,769
Mutya' Fund 10 Q6""
Fldeli(1llnlo'81tmanta 2.80 02·01·94 ,100,000 100.000 100,000 233
Cltctlti~I:t!l1 g! t!1I~lll U g,~B"'~ f':,,~~'~ :,f'~" . '·.'1."-'
SumitCImo Bank IConater,l) 3.20 02·18-94 3,000,000 3,000.000 3.000,000 8.267
Sacramento B8nk (COli_til all 3,20 02·72-94 3,000.000 3.000,000 3,000.000 8.267
StlC;f.mento Bank (Colla1f1rall 3.20 03-10·94 3,000.000 3,000,000 3,000,000 8,267
Sumitoma Bank (Coll8taral) 3.40 03·28·94 2.000,000 2,000,000 2,000,000 6,856
SS(:tamentu Bank ~Cn",,1er;"'1 3.30 04·08·S4 3,000,000 3.000,000 3,000,000 6,626
Sumitomo Bank (Collalerall 3,30 04·26-94 3.000.000 3,000,000 3,000,000 8,526
,,' "-.,-, i'.1 i Sum/tomo Bank (Colla.arall 3.40 09'29·94 ~ 2!l!!.QQQ Z.QQQQQQ 2.222.222 .~
19,000.000 19,000.000 19,000,000 53,563
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CMR,172,94
REPORT O~ INVESTMENTS
P0g03ofB
""NllARY 31. 11194
Putch ... Aocr\I.,
Intef.,t Mltur!iy Per Morbi Unrealized i'r1ao Be,I, ~.f. ..BIlL -.12m.. .'OllII YA1vll Geln (loU' lloIina ~
Bank",. AcceDtance 18.B7:!tJ
Sanwa Bank 3.25 02-07·94 2.000.000 1,884,833 1.994.833 5.597 Fuji Benk 3.30 02/22194 1.000,000 995.050 995,050 2,042 FuJI Bank 3.29 02/25/94 2,000,000 1.989.216 1.969.216 6,666 SUII1itolTlo Dank 3.33 03-07·94 3,000.000 2,987,265 2.967,255 6,B03 Sumltomo Blnk 3.20 03·16·~4 2,000.000 1,972,622 1,972,622 5.511 Fuji Bank 3.34 05·2o-~4 ---.l.OOO. 000 1.973.651 1.973851 .uu
12,000,000 11,862,827 11.882,627 33.971
U $ Trep,ury i34 '1m
t::.-~/?,~'; ~;-t"~.; t" ,;-.' ".
Treasury Notal 5.36 04·30·94 U.OOO.ooo 12,252,071 12,252,071 35,374 TrHfIOury Notes 7.00 05·15·94 6,000,000 6,011.a7~ 6.071.875 32,626
I Trea.ufV NOldl 6.00 11·15·94 5,000,000 5,051,563 5,051,563 23.472 ~. 'i Treasury Notes 5.50 02·,5-95 7.000.000 7,133,000 16,8281 7,138,82B 27,518 . Tra8&Vrv Note. 3.88 09·30-95 7,000,000 6,991.000 12,9841 6.993.984 22,85$
J T,.."sury Notes 5.13 11·15·95 14,000,000 1 •• 267.000 16' ,842 14.105,158 56.681 Treaaury Notes •. 63 02·,6·98 6,000,000 6,056,000 49,59 • 6,OOB,406 22.947 T(IIBSUry Notes Ca' •. 36 11-15·96 4.000.000 ".000.000 ..lZ.in. 3.987.Q31 -1liJllB
81,000,000 81,8:!2,509 215,593 61,806,918 237,151 I fl}t~2\;J ~':f::~,\--',:'\:~~1:~: :.:,"" ":-,
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IEI'ORT or INVESTMENTII
P0g0401e
JANIIAIIY 31, IBM
I'urt!hn. AIiCtUIII
Interest Mllllrity P., M_ Unrullmd Prlc:o Bolli ~ _ilIlL ....I1IIL. ~ :uIlIl llalnJLIIW ilIIIoa. atninJlI
~ AllENe! 138,85"'l
F~l8 7.50 08,27·94 6,000.000 5,087,188 5.(.187,188 28,703 FNMA 7.45 07·11·94 3,000,000 3,038,797 3,036,797 17,&97 FHl8 6.70 08·25,94 8,000,000 9,246,250 8,246,250 36,756 FHLB 6.58· 09·26·94 4.000,000 4,104.686 4,104.688 18,674 F~l8 5.94 02-27-95 8.000.000 6,133,000 114,875 6.018,125 29,151 Ffll8 6.45 03·27·95 8.000,000 8,233,000 186,000 B,065,OOO 41.176 FHlB 8.04 04·25·96 6,000,000 6,162,000 162,825 5.999.375 30,218 FNMA 3.64 06·02·95 2,000,000 ~.003.000 11,760 1,991.250 6,'l74 FHL8 3.79 06·28·95 3.000.000 3,004,000 20,406 2.983,594 10,159 FNMA 4.32 08·06·95 3.000.000 3,009,COO ,4,5931 3,013,593 10.906 TVA 4.13 08-15·96 7.000,000 7,015,000 17,187 6,991,013 24,154 FNMA lal 7.70 02'12-98 2,000.000 2,000,000 ~.600 1.997,500 12,815 FNMA 1.60 01-10·97 2.000,000 2,165,000 162,187 2,002,813 12.644
FLU 1.35 01·20-97 500,000 539,000 39.000 500,000 3,063 FNMA 4.38 01·21·94 2,000,000 2,010.000 16,825 1,893.175 1,651
.' FNMA B.05 01-12-98 5,000,000 5.189,000 191,345 4.997.655 25.2.1 , FHLMC (P&II 10.00 02·01·09 211,300 240,000 39,108 200,894 1.858 ,', . tHlMC IPll 5eml-Ar1!'1uallyJ 12.45 09·,5·09 182,000 214,000 13.375 200,625 1.465 GNMA (P&II 9.00 11~15-16 512 ]~J ...JUl.l!2!! ----U1lI JO.3..l.ll ~
"" " .. '
-'"" ,,' 67,471,493 88,992,923 953,478 88,039,447 217.371
, I'¥!:
CM":;72:94
MPOIIl' 01' IINESlMt:NT8
JANUARY 31, ,_
Intere't Mlturlty Per
li!lJJBl& ..BII.L .J2IIL :iIhIt
M81Yr,d and 5~1d 1IJ:illl!DI![]!1
FHla 7.55 01·25·94
G'rterli Electric 3.29 01·31·94
TOTAL INVESTMENTS .174,671.493
(P&n Principal and Interest paymantll monthly,
Investments with m.turitlo8 of I ... than one year ere valued It COlt,
Purchases Iinee laat report Ir. thow ... In bold type.
lal FNMA h ••• c.n.ble option, beginning on 02·12·94.
CMR:172:94
M.rk"
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0176.796.069
r_Sof8
PLerch" •• A.,.,.. ..
Untulll8d Price Ba •
Gllo 1LoU. /IIII1lSiI fItnlnIa
10,401
JI.!S.lI
",'69,069 0176.628,991 0715.946
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INTEREST INCOME IACCRUAL BAS:51
JANUAIIY 31. In.
W .... To Date
J.!ail ~
Interut Income $ 6.038.2' B
Effective Annual
_afRelUm
On Investme .. ts 'II. 6.72
ItnDrIIt Aatu. IS of Janujtry 3' 1994 --~ Treasury Bill:
_--'ACC~: 3-.-ConometcioI _:
_ ~. 01 Oopooit:
2-vo-Trasurv Not;): 2 __ , Aaencv:
Soun:o: w •• _ Journal 02/01/94
CMR: :93
To Date
llll:ll
5.483.764
6.00'11.
2.99%
3.03%
3.'5%
2,56'11.
4,'9%
4,26%
5.29
lnereue
(Oec:Nsel
, 993·94
1554.4541
I' ,431
I'oge 6 of 6
%Of
Torgot
Imw IQ.llIIl
9.400.000 58,~4
5.2 101.73