HomeMy WebLinkAbout0465.093_01•
September 2. 1993
THE HONORABLE CITY COUNCIL
Pal. Alto, Calif.rnla
!l!YESTIIElfl ACTIVIU REPORT FOR JUlY 1993
~rs of the Council;
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This Is a~ inforaational r&port and no (ounc11 action is neC~S$ary.
IIfTEREST INCOME
Interest incOile on an accrual basis for the month of July was $876,]01, or 9
percent of the annual target of 59.7 "ill ion. On a cash basis. receipts totalled
$661 J 844 fDr July. The effettiv& annual rate of return on an Itcrual basis is
5,97 perce"t for the fiscal ye.r.
CURRENT PORTFOLIO
The par value of the City's portfolio is $175 million, which consists of 5142
.i11ion, Dr 81 perce"t. maturing within two years. Most of the investments, $140
.i11ion, or 80 percent, are in United States Goverl1lTlent ::oecurities. The c.urrent
market value of the portfolto is 100.9 percent of cost. The average lif. of the
portfolio is 1.3 year •.
IIIURESI !lAIrs A!!!l INVESTIIE!!IS
In earlY July. $2.5 ~llljon in mutual fund investments ~re transferred to the
City', bank account to pay a large utility purcn.se payment. On July Z6. $I
million of Feder.l Agency notes •• tured and on July 30 •• $3 million fidelity
certificate of deposit matured, These funds were held in the bank to help build
ca.pensating bank balances to cover bank fees for the month. On A~gust 2, the
funds were invested in compercial paper.
The Local Agency In •• st,,,,,ot fund 'L~lf) was .,t.bl ished by the State to pool
investments. Although the City of Palo Alto ;s currently allowed only to place
SlS million in the State pool, the r€turn on the State pool is sometiaes used as
i measurement of performance. Staff c~mpared the earnings the City would have
recehed if all funds were in lAIF to the actual earnings. As shown on the
graph. the portfolio' 5 holdings in longer-term investments have rc:sulted in
0IR;465:93
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earnlngs in exce~ of tnose i'itdla.ble from tAIL During the last six years,
stoff hIS been ab co earn $7.3 million ITK're tllan would have been available from
LAIF.
Portfolio Earnings
CPA Actual YS LAJF Projection
Millions
'87-88 '88-89 '69-90 '90-91 '91-92 '92-93
COMPLIANCE WITH INVESTMENT POLICY
As of July 31, 1993; tnP. investmerit ptlrtfclio was in complia.nce with ill elements
of tne City's investment policy. In August 1993, projections indicated receipts
and the SZ7 .12 lIilli on in maturi ng investment:; waul d exceed expend itutes. On the
baSis of the above projection, there were sufflcient funds to meet Palo Alto's
expenditure requirements for the month of August. Staff is in the process of
coapletlng a new cash forecast for fiscal year 1993-94 based on Ute newly
approved budget.
Respect "l1y sub4n,tted, . ~ -~. /1U"AA£'
. ~llV HARRISON -
Finanel.1 Analyst Finance Director
CMR:465:93
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Page 1 of 6
.EPORT OF INYESTlIEllTS
JULY 31, Igg3
Par Amount 7/31/93 1993-94 6/l0/93
(In , lIi'lion~l
BYIlAIVRlD'
(%l I=L _-00-
Within 1 month S 27.12 15.47 ) 56 11.89
1-3 I.,mths !l.CO 6.28 11.00
1-6 months 14.50 8.27 ~_5~
6-9 .. nth, 23.00 13.12 3.85
9-12 ..,nih, 14.00 7. ~~ 15.95
1-2 years &.QQ 29.66 ~
Within 2 ye,rs 14L 62 BO.79 > sse 81.46
%-5 years 32.50 18.54 11.88
5-10 ye.rs .00 .00 .00
10-20 years .47 .21 .27
20-30 years --.d.Q --...!ll ....Ji
Over 2 years 33.67 19.21 18.54
TOTAL 175.29 100.0li 100% 100.0%
I~ lYrE !!E 1~£STllOO
Local Agency Investoont Fund 15.00 8.55 8.25
Nutual Fund .10 .06 < 15% 1.43
Certificates of Deposit:
Co naten 1 ; zocl 11.00 6.28 7.70
Sankers Acceptances 6.00 3.42 ( 301:: 3_l0
ComMerciil Paper 3.00 1.71 < 15\1, 1.65
City of Palo Alto Bonds .D2 .01 .01
U.S. Treasury 71.00 40.50 39.05
U.S. Agency 69.)7 ll.,.!q ...li-2l
TOTAL 175.29 100.0% 100li 100.0%
Market V.lue/Cost $178.0/175_4 100.9%) 95% 101.0%
CMI!:465:93
REPORT OF INVESTNENTS P;1·1~' ~ of 6
.lUU 31, )993
P~T<h ... Accrual Interest Maturity Par Harket Unr.allzed Price Buh .tQUR •. : Blt~ Date 'tll.lll ~ .Giin.Jj.gn) BllilltL [arnino. IN'/:!.:· .
19~~1 "n .•. lJ1!tlment Fund IS,5W
LAIf 4.44 08-01-93 15,000,000 15,000,000 IS,OOO,OOO S2,OOQ
!'lut .' """ (0,06%1
fidcl I" lestments ~.75 08-01-93 100.000 100,080 100,000 234
rerti" ill, of Deposit (6,28%1
·" .. "t" , .... , (Collateral) 3.20 Q2-22-94 3,000,000 3.008,000 3,000,000 8,267 "1/:' .. f J,'!') Bank i Co11 atera 1 J 3.40 03-28 .. 94 2,000,000 2,000,000 2,000.000 5,856 ' '. I al!"'·"~.O Bank (Collttenl} !,30 04-08-94 3,000,000 3,000,000 3,000,000 8.525 ;'umitom"'nk (Collateral) 3.30 04-26-94 MQQ.Q!!Q MQQ,Qrul l.QQQ,QQO J,lli
ll,OOO,OOO 11,000,000 11.000,000 jj,173
~cJil ·'~r lal O,ll?!'. (a)
General noet"ic 3.13 08-02-93 3,000,000 2,960,614 2,960,614 8,086
,a1!W's ~~~ep..tlnc. (3,m1 (a)
Sum t i . '''1\1 Bank 3.10 09-30-93 3,000,000 2,961. S08 2,961,508 8,008 Sanwa I. 3.08 10-29-93 3.000.M9 2,954.570 2,954.510 UM.
6,000,000 5,91' 078 5,916,078 15,965
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Page 3 of 6
REPORT OF INYESTIIENTS
JULY 31, 1911
Purchul ""crual
Inter •• t Maturity Plr Market Unrealized Prle. aasls
m!&.t Rate Date Will Y.ol.L GaIn Uass} Balance EuninQs
ellR ~11R ImDrR~Im!Dl ,gD~~ (.QI~1
Sert" P (0) 10.95 01-02-93 20,000 20,000 20,000 13
U,S, Ir •• surY~
Tre .. sttry Notes b.OO 08-15-93 7,000,000 6,988,125 6,988,125 46,667
Treasury Notes 8.25 09-30-93 4,000,000 4,035,938 4,035,938 27,500
' .. ' , ;,{~~~~;'§:~;:~~~t&~:}~2}'iM'~'k~~t ,-reasury Motes 7.15 11-15-93 8,000,000 8,081,563 8,081,563 51,667
Trouury Note, 7.63 12-31·93 2,000,000 2,016,875 2,016,875 12,708
Treasury Notes 5.38 04·30-94 12,000,000 IZ,252,011 12,252,071 53,750
Treasury Notes 7.00 05-15·94 6,000,000 6,071,875 6,071,875 35,000
Treasul"'Y Notes 6.00 1I-15-94 S,OOO,OOO 5,1J8,000 86,437 5,051,553 25,000
Treasury Notes 5.50 02·15-95 7,000,000 7,162,000 23,112 7,138,828 32,083
Treas.ury Hotes 5.13 II -15·95 14,000,000 14,263,000 157,842 14,105,158 59,792
Treasury Notes 4.63 02-15-96 _6.QQO,00O §,m,QQQ ...H..ill ~,Q2MQ§ ..D....ill.
71,000,000 72,048,447 300,045 71,748,402 367,292
CMR:465:93
REPORT OF INVESTMENTS
Pig" 4 of 6
~UlY 31, 1913
Purcha.e /\ecru.' Interest Maturity Par' Market Unre.ltzed PricI Buts mlI!ll B~t~ Dah Y.i1M .l'liuL GilD (Lgssl Ba11ru:e. limino>
Y.S. ~G£~I [J~,~§~l
FHl8 7.45 08-25-93 2,000,000 2,000,000 2,000,000 12,41'1
FHL8 7.95 09-27·93 1,000,000 991,875 991,875 6,625 FHlB 12 15 12·V-93 2,500,000 2,437,500 2,431,500 25,313 FHlB 1.55 01-25-94 2,000,000 2,003,125 2,003,125 • 12,583
FHL8 7.50 06-27-94 5,000,000 5,087.188 5,087,188 31,250 fNM~ 7.45 07-11-94 3,000,000 3,036,797 3,036,197 18,625 FHl8 6.70 08-25·94 8,000,000 8,238,000 (8,250) 8,2~5,250 44.667
FHLB 6.58 09·26·94 4,000,000 4,123,000 18,312 4,104,688 21,933
FHL8 5.94 02·27-95 6,000,000 6,113,000 154,B75 6,018,125 29.700 FHLB 6.45 03-V-9S 8,000,000 8,300,000 235,000 8,065,000 43,000
FHLB 6.04 04-25·95 6,000,000 6,184,000 184,6Z~ 5,999,375 30,200
FNMA 3.84 05·02-95 2,000,000 2,000.000 8.750 1.991,250 6,400
FHL8 3.79 05-26-95 3,000,000 3,019.000 35,406 2,983,594 9,475
fNMA 4.32 06·06-95 3,000,000 3,014,000 407 3,013,593 )0,800
f~lB (b) 7.95 12-26-95 3,000,000 3,056,000 56,000 3,000,000 19,875
FIlMA it) 7.70 02·12-96 2,000,000 2,180,000 182.500 1,997,500 12,833 fHMA 7,60 01-)0·97 2,000,000 2,171,000 IG8,lS7 2,OOZ,813 12,667
FL8 7.35 0)·20·97 500,000 538,000 38,000 500,000 3,063
FHHA 6.05 01·12·98 5.000,000 5,164,000 166,345 4,997,655 25,208
FHlHC (PAl) 10.00 02·01-09 268,367 297,000 45,039 251,961 2,236
FHLHC (P51 Semi·Annually) 12.45 09-15-09 203.000 231,000 9,375 2Z),625 2,106
GNMA (P&I) 9.00 !I-15·16 .. _ZQZ...ill _-lli..QqQ Z6.m m,m ...2.lli
69,113,389 71.003,485 1,320,630 69,611Z,855 386,241
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Matured aDd Sold Inyestments
FHlB
Fidelity Fed. (Collateral)
REPORT OF INVESTIlElfTS
JULV 31. 1993
Inter •• t M.t.rlty
~. Qlt.
7.75
3,80
Plr
'It.l.IIt
07-26·93
07·30·93
Market
.ffiIIL
Unrealized
Gain fLoss)
Purchase
Price
~
~
Pa9@ 5 of 6
Accrual
Basis
Earnings
5,597
9,500
TOTAL INYfSTMENT5(100', $175,293,383 $178,048,624 51,620,675 $176,427,949 $876,101
(P&I) Principal and interest payments monthly,
Investments 'with maturities ef les.s than one year are valued at cost.
Purchases since host feport are shown 1n bold type.
(a) Figure represent.s the disco •• t rate.
(b) fHlB has a callable option, beginning on 12·27-93,
Ie) FHHA has a callable option, beginning on 02-12,94,
(*) Series P Bond principal payment Is delayed due to bank technical error; f"nds should be received by e.d of Augu.t
1993.
CHR:465:93
INTEREST INtOl!£ (ACCRUAL BASIS)
uVLY 31, 1993
Increase Work To Date To D.t. (Decrease) Unit 1992-93 1993-94 1993-94
Interest Income $ 857,185 876,101 8,916 Effective Annual
Rate of Ret"rn
On lnv.st""'n~s % 6.92 5.97 (0.95)
[nterest Ratts as of Jolv 31. 1993
Pri .. Rat.; 6. O~
3-lIOnth Treasury Sill; 3. I~
3~lDOnt" Bankers Acceptance: 3. iO%
3-.. nt. Commercial Paper: 3.22%
3-lIOnth Certificate. of Deposit; 2.70%
2-year Tr •• suo·y Note; 4.15"
Z-year Agoncy; 4.21"
Source: W.ll Street Journal 8/02/93
CMR;46S:93
Page 6 of 6
I;; Of
TarIJet
Taraet To Patt
9,700,000 9.03
5.5 108.55