HomeMy WebLinkAbout0465.093• ~ . , . ", ~ ,." .,J ,-
Sept~eT Z, )993
THE HOMGRABL£ CITY COUNCIL
Palo Alto, California
Il!VmME!!T ACTIVITY REPORT FOR JULY 1993
Hemb~rs of the C~uncil:
/'
This 1S an info~tionll report and no C~uncil act1~n is necessary_
INTillST IIItO!!E
Interest income on an accrual baSis for the mont" of July waS S876,101, or 9
p.C!rcent of the annual target of 59.7 lIIil110n. On a casn buis, receipts totalled
$667 t 844 for July. The effEct1~e annual rate of return on an accrual baSls is
5.97 pe-rcent hI"' the fi sca 1 yea r .
CURRENT PORTFOLIO
The par value of the City's portfolio is SliS million, which consists of .$l42
(!:i111on. Dr 81 percent, maturing within two years. Ho~t::lf the investments, 5140
.11'ion~ or 80 percent, are in ~nited States bovernment securities. The current
~r«et value of the portfoli~ is 100.9 percent of cost. The average lif~ of the
portfolfo fs 1.3 years.
IKTruSl RATES AND INVESTI!MS
In early July, 52.5 million in ~tual fUnd investments ~re transFerred to the
City's bank account to pay a large utility purchase pa.)'lll~nt. :In July 26 , $1
.Olion of Federal Agency notes lIatured and on July 30, ,J; S3 mfl', ion Fidelity
certi ficate of d£'posit .. atured. Thes.e funds were heid 1n the bank to help build
compensating bank balances to cover bank fees for the month. On August 2. the
funds were invested in c~rc1al paper.
The loc.aT Agency Investment Fund (LAJF) was establlshed by the State to pool
investments. Altbough the City of Palo Alto is currently allowed on1) to place
SIS million in the State pool. the return on the State pooT is sometimes used as
a lleiSUrettent of perfoma:1ce. Staff compared the earnings tfle City would hl'lle
received if all funds were in LAIF to the actua1 earnings. As sho,," on the
graph, the portfoHo's holdings ;n longer-tem ;nvesta1e"ts have resulted in
t:MR:46S:~3
/
earnings in exce of those available fro:~ LAfF. During the hst six years.
staff has been ab :1> earn $7.3 million DOre than would halle been avai1abl~ from
LAIr.
Portfolio Earnings
CPA Actual vs LAIF Projection
------
Millions
i OCPA I
I .
,.LAIF i L ______ ,
'87-86 '88-89 '89-90 '90-91 '91-92 '92-93
COMPLIANCE WITH INVESTMENT POLICY
As of July 3L ]993? the investl'llent portfoiio "as in ccmplianc'! with all eTements
aftne City's. investlllent policy_ I~ August 1993. projections. indicated receipts
and the 527.12 IIi 11 ion in maturing inYe5tments WQ1I1d exceed expenditures. On the
basis Df the above projection. there were sufficient funds to meet Palo AltD'~
expenditure requjre~nts for the month of August. Staff is in the prDcess of
cOIT;Ilettng iI new cash forecast for fiscal year 19'93-94 based on the newly
approved blldget.
Respect ~lly submitted, _
'---(}; ila.UA,;A,
[MILV HARRISON ---
Financial Analyst rin~n(e Dire~tc~
CMR:465:93
•
Page] of 6
REPORT OF INYf.lTllOOS
JULY 31, 1993
Par AAount 7/31,93 1993 -9. 6/30/93
(lD J tlqTiQni) JU-Isru.L __ m._
BY!lAJl.IRIU
WltlllD ] IIOnth S 27.12 IS.47 > 56 11.89
1-3 1IO"'.tns 11.00 5.28 II. 00
3-6 ."nths 14.50 B.27 B.S2
6-9 IIOnths 23.00 13.12 l.SS
9-12 .. nth, 14.00 7.99 !S.9S
1-2 yea"s 51.00 29. b6 . .ML.ll
Within 2 Yl!ars 141.61 80.79 > S5D BI.46
2-5 yean n.50 IB.54 17.BB
5-JQ years .oc .00 .00
JO-20 years .47 .27 .27
2Q-30 yea,.s -d!! ---..!Q ~
Over 2 years 33.57 19.21 IB.S4
TOTAl 175.29 IOO.~ laO!; 100.()2;
III m~ QE 11!I'illl'..J!!l
local Agent)' ]nvest~nt Fund 15.00 8.55 8_15
!lut .. l fund .10 .06 ( 15~ 1.43
Certificates Qf DepDsit:
cellateralized 11.00 5.28 7.70
Bankers Acceptan~es 6.00 3.41 < 3()2; 3.30
(a.e rc i i 1 Piiper ).00 1.71 < 15" I. 55
City of P,lo Alto B<>MI, .02 .01 .01
U.s.. Treasury 71.00 40.50 39.05
U.S. Agenc), 59.17 .l.L!.O ..1!hll
TOTAL 175.29 100.()2; 10()2; lOO.()2;
Market V.lue/Co't n 78. 0/176.4 100.~ > 95~ I OJ. ()2;
QIR,465:93
REPOtIT OF INVES1'IIENTS P~l'!C' ,: Gf 6
JULY 31, 1993
Purchase Accrual Interest Mlturtty Por M .. rket U"rea111~d Price Bu1s ~Un,ii _..l!I.lL Dile XilJic ~ Wn.1I.m) ~ EarninGs It(\~l " I
tQJ~1I1 ,'JXllimtn1Jund C8, 56X)
LAli 4,14 OB,OI-93 15,000,000 15,000,000 15,000,000 52,000
f1u t I \' "'H!L1Q.JIW
fide! 1 '. ' icstments 2.75 08-01-93 100.000 100,000 100,000 234
terti f! ili~ Qf Deposit (6.00
""wnl" "t-(Collateral) 3.20 02-22·94 3,000,000 l,OOO,OOO 3,000,000 B.267 ""'1', ' ! ",l,l) Bank. ~Lo 11 abr<ll ) 3.40 03-28-94 2,000,000 2,000,000 2,000,000 5,856 ' ',! ,\lpn'to Bank (Collateral) 3.30 04·08-94 3,000,000 3,000,000 3,000,000 B,525 ::.um1tollt" ':,my. (Colhteral) 3.30 04-26·94 ...b..Q.!UI....QQQ l,OOO,QOD 3,000.009 ~~
11,000,000 ll,OOO,ooo !I ,000,000 Jl,l73
~!llll!r~tAl -,per Ca) CI,lI11 (aJ
General Electric 3.13 08-02-93 3,000,000 2,960,614 2,960,6H B,086
B~~s ~~~~~tance (3.42%} (a} "" , ':.~ . Sumtt· "P,\ Bank 3.10 09-30·93 3,000.000 2.961.508 2,961,508 8.008 Sanwil t 3.08 10·29·93 l.lJ~ ',m.m U~UlQ z.m ____ ",."(;'''~'1r,,.~,:-_,.,_·': .. "I'.-';, ',"
6,000,000 S,9Jfi.078 5,916,078 15 t 965
,HR:46 e __ fi,.'i';;t,U""'.D~:~~~;r.'v': \1" :;.. :~.'
, '-0'
•
IIEPOlT OF IN'lEmlEl!l'S
'09& 3 of 6
JULY 31. Ifl3
Pu''l''thase ~tru2l!1
Interest Maturity Par Harket Unreln,..d PrfclJ 8 •• 1.
~ Ratt patt YJ.llIt 'iihL Iii!o 11.0 .. ) BalancL Elrnloll>
rt12 Alt2 J.Rtiyemen~ 'g~1 '*OI~l
Serl •• P (0) 10.95 01-02-93 20.000 10,000 lO,OOO 13
U,S, lr ••• Y1lL~~
TreA~ury Hote!; 8.00 OIH~-9J 7,GOO,OOO 6,9BB(125 ',!$S,IlS 46,661
Treasury Notes 8.~S 09·30-93 4,000,000 4,Q15,938 4,Ol5.~38 zt,5OO
lr@uul:"Y Not~$ 1.75 lllS-9l 8,000,000 6,081,563 8,081,563 51,661
Trea.s.ury Nohs 1.63 lZ'31-91 Z,OOO,OOO 1,016,815 2,016,815 12,70/1
T,..~asury Notes S.38 04-l0-94 12,000,000 IZ,252,011 12,lS2,Oll S3,75.
TreaSlu'y Notes 7.00 OS·)5·94 6,000,000 6.011,875 6.011,815 35.ooU
Treasury Notes 6.00 H -lS-94 5,000,000 S, )38.000 86.437 5,051,563 25,000
Treas\jl'~ Notes 5.50 02-1,-9, 7,000,000 1,]62,000 21,l7l 7,1J8,8tB 32,Oa3
TreasufY kohs s.n 11-15·95 14,000,000 14,16~,OOO 151,841 14,105,158 59,192
lrynury Hotu 4.63 02-15·96 §,QQQ.222 .§ .. .lli....QqQ ..ll..s~t §.~.il!!i ..D..m
7J ,000,000 12,048.441 300,04S 71,148,402 367,292
".'
c·
CHR;465;'3
....
. "
.. ~
REPORT OF IHYESTlIEllTS
Pig. 4 of 6
JUl.Y 31, 1993
Purchase Accrual
Interest Maturity Pl. Market Unrealized Prict! But,
~ Bite I2I1U ~ hliIL Gthl 'Lglli J!iliIJa_ EuntflQ'S
U,S, MjENCY (lM§ll
FlllB 7.45 08·25·93 2,000,000 2,000,000 2,000,000 12,4!7
FHlS 7.95 09-27·93 1,000,000 991,875 991,875 6,625
fHlB 12.15 12·U-93 2,5~O,OOO 2,437,500 2,437,500 25,313
FillS 7.55 01·25·94 2,000,000 2,003,125 2,003,125 .. 12,583
FillS 7.50 06-27·94 5,000.000 5,087,166 5,087,168 31,250
FNMA 7.45 01-11-94 3,000,000 3,036,797 3,036,797 18,625
fHLB 6.70 08·25-94 8,000,000 6,238,000 (8,250) 6,246,250 44,667
fHlB 6.58 09·26·94 4,000,000 4,I2l,OOO 18,ll2 4,104,688 21,933
fillS 5.94 02-27·95 6,000,000 6.173,000 154,875 6,018.125 29,700
FillS 6.45 03·27-95 8,000,000 6,lOO,OOO 2l5,OOO 8,065,000 43,000
flllB 6.04 04·25·95 6,000,000 6,164,000 184,625 5,999,l75 30,200
fNMA 3.84 05-02-95 2,000,000 2,000,000 8,750 1,991,250 6.400
FillS l.79 05-26-95 l,OOO,OOO 3,019,000 l5,406 2,983,594 9,475
. ~~~'~' .
,.' t" " -\ ,': J FNMA 4.32 06·06·95 3,000,000 3,014,000 ""'07 3,013,593 10.800 , filLS (bJ 7.95 12·26·95 3,'100,000 3,056,000 56,000 3,000,000 19,875 '·1 FNMA (cJ 7.70 Q2-12-96 2,000,000 2 •. 180,000 182,500 1,99'/,500 12.8ll J.;,~,c;~~i~ ';'/,r' "'. '. ; \ :. FNMA 7.60 01·10-97 2,000,000 2,171,000 16B,I87 2,002,813 12,667 ~\I.'/ t,,:~,t flB 7 .35 01·20·97 500,000 538,000 38,000 500,000 3,063
FNHA 6.05 01·12·9il 5,000,000 5,164,000 166,345 4.997,f55 25,2U8 ~~:'k':~f (', :,:L, ) ~ .,-(,
FIIlHC (PU) 10.00 02·01·09 268,367 297,000 45,039 151,961 2,236 ~" 1 ';-"" ~,' 'I ~';
, I ' ( T ~ Or • ') ... ,. fHlMC (P&r Se.j·Ann.ally) 12,45 09-15-09 203,000 231,000 9,l75 221.625 2,106 ~ • .,.. I')". "~I , ~ I
CNMA (P~I J 9.00 11-15-16 .-llI~Z -M.Q2Q 22,m ....J.ll"lli J.lli.
69,173.3B9 71.003,485 1,320,630 69,682,855 386,241
1~;::'1i}" '" 'i<'f\,,~·~j"tp_.r '
,,;,_ '1; ;'::-:\ .. ;,l:.,',:;.':, : ,". " '-\t~~~-~ ;t{k".}:{ \ j r 1/ ('.'
CMR:465:93 \:_,1_:<, ___ ";\~:~ -,' ' .. \ ~;t~~iii.; ,.~:~:" .,
H
---_ .. _---------. • . '-.
sm!lli.
Matured I~~ld Inyestment$
fHlB
fidelity 'ed. (Collateral)
RUORT OF IJM:STIIQITS
~ULY 11. 1f91
'nter.,t Moturlty
Rate Om
1.15
3.80
Pl.
Y.I1lII
01-26·93
0)·30-93
Market
I'llI!L
Unrealized
lil.ln Ilou)
Purchasl
Pr1c@
BWm.
..
Page 5 of ~
Accru .. l
a.sls
f.ltn1m1
5 ~ ~i91
9.f,OO
TOTAL INVEST"ENTS('OO~) 1115,Z93,369 1118,046,624 $1,620,615 $116,421,949 1816,101
(P&l)
( 0)
(b)
te)
Principal and interest pAym&nts mo"thty.
Investments with mjtur1t1~s uf less than one year are valued at cast.
PlIrchase:i since last report are shown in bold type.
Figure repr~sents the discount rate.
FHtEl has a calhble opt ian, begfnn1ng on 12-27-93.
FNMA has a callable option, beginning on 02-12-94.
(it) Serjes P Sond principal payment is delayed due to hank technical error; funds should be received by end of Aug\;st
1993.
CMR:46S:93
Page 6 of 6
INTER£ST INCOilf (ACCRUAL BASIS)
JUr. Y 3! I 1993
Intenst Inr.OI!H!
Effective A."',nual
Rite of Return
fin ]nvutJtents
$
To DatI!
l12M1
867,18S
6.92
Interest Bate$ as of July 3). 1993
Prf .. Rate:
3-acnth Treasury 8f11:
3-~nth Bankers Acceptan~e:
3-.anth Co.mertial Paper:
l·"nth Certtfintes of DepDsit:
2-year Treasury Note:
l-YUT Agency!
Source: Wall SI reet Jou mal 8/02/93
00:465:93
To Date
illU!
876,101
5.97
6.00%
3.10.:
3.1~
3.22%
Z.70l;
4.15~
4.Z1~
increase
{Oecl'"eastJ
1991-94
8,916 9,700,0~
(0.95) 5.5
~ Of
Tor-get
~
9.G~
IOB.55