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Quarterly Investment Report of March 31, 2017 Copyrighted May 15, 2017 City of Dubuque Consent Items # 7. ITEM TITLE: Quarterly Investment Reportof March 31, 2017 SUMMARY: City Manager transmitting the March 31 , 2017 Quarterly Investment Report. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File ATTACHMENTS: Description Type March 31, 2017 Quarterly Investment Report-MVM City Manager Memo Memo Staff Memo Staff Memo Cash Investments & Investment Earnings Summary Supporting Documentation Schedule of City Funds Supporting Documentation Monthly Investment Summary Supporting Documentation Monthly Investment Summary Supporting Documentation Schedule of Certificates of Deposit and Accrued Supporting Documentation Interest Manager—Custodian Annual Fees Comp Supporting Documentation THE CITY OF Dubuque DUB E i" Masterpiece on the Mississippi 2007.2012.2013 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: March 31, 2017 Quarterly Investment Report DATE: May 5, 2017 Finance Director Jean Nachtman is transmitting the March 31, 2017 Quarterly Investment Report. Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jean Nachtman, Finance Director THE CITY OF DUkyftbugquue DUB E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Jean Nachtman, Finance Director RE: March 31, 2017 Quarterly Investment Report DATE: May 1, 2017 INTRODUCTION The Finance Department is submitting the quarterly investment report as prescribed within the City of Dubuque Investment Policy Section 17.0 "Reporting." DISCUSSION This report covers the period from January 1, 2017 through March 31, 2017. The report includes: Cash Investments and Investment Earnings Summary for quarter ended March 31, 2017 and fiscal year to date Schedule of City Funds Monthly Investment Summary Schedule of Certificates of Deposit and Accrued Interest Manager/Custodian Annual Fees Computation The valuations reflect the same basis that the assets are carried on the financial records of the City. The City of Dubuque is in compliance with the Investment Policy. REQUESTED ACTION This report is for your review and filing with the Honorable Mayor and City Council. JN/eml Enclosures CITY OF DUBUQUE Cash, Investments and Investment Earnings Summary For The Quarter Ended March 31, 2016 And Fiscal Year To Date Market Value / Unrealized Carrying Including Gain (Loss) / Description Value Accrued Interest Accrued Interest Change & Petty Cash Funds 15,033 15,033 Checking/Savings Accounts 36,360,624 36,360,624 Unspent Bond Proceeds 22,980,912 22,980,912 - Certificates Of Deposit 5,106,602 5,124,602 18,000 US Treasury Securities 2,015,125 2,648,920 633,795 Corporate Stock (EB Lyons Trust) 11 ,514 106,849 95,335 Investment Advisor Accounts 25,702,734 25,697,279 (5,455) Total Funds 92,192,543 92,934,218 741,675 Breakdown City 78,537,712 79,261 ,387 723,675 Metro 13,654,831 13,672,831 18,000 Total Combined Funds 92,192,543 92,934,218 741,675 Cash Basis Quarter Year-To-Date Gross Earnings: City 375,514 510,932 Metro 21 ,323 31 ,810 Combined 396,837 542,742 Investment Fees: City 47,970 63,173 Metro 293 401 Combined 48,263 63,574 Net Earnings: City 327,544 447,760 Metro 21 ,030 31 ,409 Combined 348,574 479,168 City of Dubuque Schedule of City Funds As of March 31,2017 TOTAL COST CITYFUNDS CITY MANAGED FUNDS BASIS PERCENTAGE CASH: Change and Petty Cash Funds 15,033 Health Fund Deposit 150,000 Prescription Fund Deposit 75,000 Workers Comp Deposit 10,000 Ambulance Deposit 1,000 Total 251,033 0.26% CHECKING I SAVINGS ACCOUNTS: American Trust&Savings Bank(General) 780,532 American Trust&Savings Bank(Housing Rehab&section al 109,311 Dubuque Bank&Trust(GeneraVMetm/credit) 34,193,746 Dubuque Bank&Trust(cable Franchise Equipment Fund) 616,958 US Bank (General) 10,559 Premier(utility) 6,161 Fidelity Bank&Trust(utility) 8,761 Dubuque Bank&Trust Police Forfeiture Funds 37,610 BBVA Compass 0 Dubuque Bank&Trust(zaber Escrow) 596,985 Total 36,360,624 38.20% UNSPENT BOND PROCEED INVESTMENT ACCOUNTS: AT&S Series 2010A 4,502 DB&T Series 2011A 129,509 DB&T Series 2012B 1,812,715 DB&T Series 2012C 594,390 DB&T Series 2012D 789,970 DB&T Series 2012E 122,206 AT&S Series 2012F 383,647 DB&T Series 2012H 612,758 AT&S Series 2014B 4,038,811 AT&S Series 2014C 701,634 AT&S DMASWA 951,095 AT&S Series 2015A 381,325 Fidelity Series 2015A 9,825,979 Fidelity Series 2016C 2,632,372 Total 22,980,912 24.14% CERTIFICATES OF DEPOSIT: AT&S 2,506,602 DB&T 0 FB&T 2,600,000 Total 5,106,602 5.36% U.S.TREASURY OBLIGATIONS: Debt Service Reserve Fund Required for Port Ramp 2,015,125 Total 2,015,125 2.12% RESERVES: Sales Tax Increment Rev Bond Reserve(cedes zoisA) 2,130,538 Water Debt Bond Reserve(Series 2008D&zotoD) 644,700 Total 2,775,238 2.92% CORPORATE STOCK(Lyons Peony Trust): 11,514 Total 11,514 0.01% TOTAL CITY MANAGED FUNDS 69,501,047 73.02% Payer City of Dubuque Schedule of City Funds As of March 31,2017 PORTFOLIO TOTAL COMPOSITION COST CITY FUNDS FINANCIAL ADVISORS MANAGED FUNDS PERCENTAGE BASIS PERCENTAGE DANA INVESTMENT ADVISORS,INC: Cash and Equivalents 3.6% 213,673 US Treasury Obligations 0.0% 0 US Agencies 18.7% 1,093,806 Mortgaged Backed Securities 77.7% 4,555,384 Total 100.0% 5,862,862 22.83% DUBUQUE BANK&TRUST: Cash and Equivalents 0.8% 64,197 US Treasury Obligations 99.2% 7,611,732 US Agencies 0.0% 0 Mortgaged Backed Securities 0.0% 0 Unsettled Trades 0.0% 0 Total 100.0% 7,675,929 29.88% FIRST COMMUNITY TRUST: Cash and Equivalents 1.3% 66,308 US Treasury Obligations 0.0% 0 US Agencies 94.7% 4,855,179 Mortgaged Backed Securities 4.0% 204,800 Total 100.0% 5,126,287 19.96% US BANK: Cash and Equivalents 18.3% 1,287,067 US Treasury Obligations 0.0% 0 US Agencies 81.7% 5,733,153 Mortgaged Backed Securities 0.0% 0 Total 100.0% 7,020,219 27.33% TOTAL FINANCIAL ADVISORS MANAGED FUNDS 25,685,297 26.98% BREAKDOWN BY TYPE OF SECURITY: Cash& Equivalents 6.4% 1,631,244 US Treasury Obligations 29.6% 7,611,732 US Agencies 45.5% 11,682,137 Mortgage Backed Securities 18.5% 4,760,184 Unsettled Trades 0.0% 0 Total 100.0% 25,685,297 TOTAL CITY FUNDS 95,186,344 100.00% RECAP OF PORTFOLIO PERCENTAGES Managed City Combined CASH&EQUIVALENTS 1]1% 026% 198% CHECKING/SAVINGS ACCTS 000% 6526% 6526% MORTGAGE BACKED SECURITIES 500% 000% 5.00% CERTIFICATES OF DEPOSIT 000% 536% 536% U.S.TREASURY OBLIGATIONS 800% 212% 10.11% FEDERAL AGENCIES 1227% 000% 1227% OTHER 000% 001% 0.01% Total 26.98% 73.02% 100.00% Page CITY OF DUBUQUE MONTHLY INVESTMENT SUMMARY Month Ending: 03/31/17 First Total Community Managed Combined Dana DB&T Trust US Bank Accounts City Finance Total COST BASIS ANALYSIS Cost Basis Prior Month 5,862,862 7,675,929 5,126,287 7,020,219 25,685,297 60,822,971 86,508,268 Additions: Interest Earnings 10,343 5,018 5,504 11,693 32,557 19,709 52,266 Realized Gains(Losses) (4,546) 0 (351) 0 (4,897) (4,897) Total Additions 5,797 5,018 5,153 11,693 27,660 19,709 47,369 Subtractions: Management Fees (2,467) (1,580) (1,068) (2,903) (8,018) (8,018) Custodian Fees (531) (602) (498) (575) (2,205) (2,205) Withdrawal 0 0 0 0 0 442 442 Total Subtractions (2,997) (2,182) (1,566) (3,478) (10,223) 442 (9,781) Cost Basis Current Month 5,865,662 7,678,765 5,129,873 7,028,434 25,702,734 60,843,122 86,545,855 Net Cash Receipts&(Disbursements) 8,657,925 8,657,925 Ending Cost Basis Balance 5,865,662 7,678,765 5,129,873 7,028,434 25,702,734 69,501,047 95,203,780 MARKET VALUE ANALYSIS Investment Market Value Prior Month(Adjusted for Accruals) 5,929,110 7,631,687 5,146,137 6,984,093 25,691,026 61,597,184 87,288,210 Investment Market Value Current Month 5,905,567 7,615,033 5,128,039 6,971,727 25,620,366 70,230,177 95,850,542 Accrued Interest Current Month 15,762 21,933 19,333 19,885 76,913 38,120 115,033 Market Value Adjusted for Accruals 5,921,329 7,636,966 5,147,372 6,991,612 25,697,279 70,268,296 95,965,575 Portfolio Returns(computed by Investment Managers) Monthly Return Gross of Fees 0.00% 0.10% 0.05% 0.15% Monthly Return Net of Fees (0.02%) 0.07% 0.02% 0.11% Total Return Calendar Year to Date 2017 Gross 0.12% 0.32% 0.40% 0.40% Effective Duration in Years 0.62 1.23 2.33 2.39 Market Indices Average Last Calendar Last Last Month Year to Date 12 Months 3Years Barclays 90 Day T-Bills 0.01% 0.11% 0.37% 0.18% Barclays Short Term 1-3 Yr Govt.bonds 0.04% 0.28% 0.25% 0.74% Barclays Intermediate Govt bonds 0.05% 0.54% -0.67% 1.55% Barclays Government Bonds -0.04% 0.68% -1.34% 2.04% Current Prime Rate 4.00% CITY OF DUBUQUE MONTHLY INVESTMENT SUMMARY Month Ending: 03/31/17 First Total Community Managed Combined Dana DB&T Trust US Bank Accounts City Finance Total COST BASIS ANALYSIS Cost Basis Prior Month 5,862,862 7,675,929 5,126,287 7,020,219 25,685,297 60,822,971 86,508,268 Additions: Interest Earnings 10,343 5,018 5,504 11,693 32,557 19,709 52,266 Realized Gains(Losses) (4,546) 0 (351) 0 (4,897) (4,897) Total Additions 5,797 5,018 5,153 11,693 27,660 19,709 47,369 Subtractions: Management Fees (2,467) (1,580) (1,068) (2,903) (8,018) (8,018) Custodian Fees (531) (602) (498) (575) (2,205) (2,205) Withdrawal 0 0 0 0 0 442 442 Total Subtractions (2,997) (2,182) (1,566) (3,478) (10,223) 442 (9,781) Cost Basis Current Month 5,865,662 7,678,765 5,129,873 7,028,434 25,702,734 60,843,122 86,545,855 Net Cash Receipts&(Disbursements) 8,657,925 8,657,925 Ending Cost Basis Balance 5,865,662 7,678,765 5,129,873 7,028,434 25,702,734 69,501,047 95,203,780 MARKET VALUE ANALYSIS Investment Market Value Prior Month(Adjusted for Accruals) 5,929,110 7,631,687 5,146,137 6,984,093 25,691,026 61,597,184 87,288,210 Investment Market Value Current Month 5,905,567 7,615,033 5,128,039 6,971,727 25,620,366 70,230,177 95,850,542 Accrued Interest Current Month 15,762 21,933 19,333 19,885 76,913 38,120 115,033 Market Value Adjusted for Accruals 5,921,329 7,636,966 5,147,372 6,991,612 25,697,279 70,268,296 95,965,575 Portfolio Returns(computed by Investment Managers) Monthly Return Gross of Fees 0.00% 0.10% 0.05% 0.15% Monthly Return Net of Fees (0.02%) 0.07% 0.02% 0.11% Total Return Calendar Year to Date 2017 Gross 0.12% 0.32% 0.40% 0.40% Effective Duration in Years 0.62 1.23 2.33 2.39 Market Indices Average Last Calendar Last Last Month Year to Date 12 Months 3Years Barclays 90 Day T-Bills 0.01% 0.11% 0.37% 0.18% Barclays Short Term 1-3 Yr Govt.bonds 0.04% 0.28% 0.25% 0.74% Barclays Intermediate Govt bonds 0.05% 0.54% -0.67% 1.55% Barclays Government Bonds -0.04% 0.68% -1.34% 2.04% Current Prime Rate 4.00% City of Dubuque Schedule of Certificates of Deposit,Accrued Interest,High Yield Savings Accounts&Unspent Bond Proceeds As of March 31, 2017 Certificates of Deposi[: Certificate Cos[ Purchase Maturity Interest Days to Accrued Accrued Number Institution " Basis Date Date Rate Maturity DM Interest 53439321992 AT&S M 906,602 07/14/16 07/14/17 0.760% 105 260 4,908.07 125730 FB&T M 1,000,000 09/13/16 09/13/17 0.765% 166 199 4,170.82 5013396931/1 AT&S M 1,000,000 10/10/16 10/10/17 0.850% 193 172 4,005.48 5578314659/1 AT&S M 600,000 11/07/16 11/07/17 0.750% 221 144 1,775.34 126093 FB&T M 800,000 12/09/16 12/08/17 0.750% 252 112 1,841.10 54683730471 AT&S M 800,000 02/02/17 02/02/18 1.040% 308 57 1,299.29 Totals 5,106,602 18,000.10 Reserve Funds Account Ending Face Value Accrued Number Institution Balance Interest Rate Interest Account co Balance Accmed Interest 2015A FB&T R 2,132,800 1.50% 2,261.87 DMASWA 5,106,602 18,000.10 2008D FB&T R 119,500 0.61% 1,090.43 City 0 2010D FB&T R 525,200 0.61% 4,792.41 5,106,602 18,000.10 Totals 2,777,500 8,144.71 U.S.Treasuryon Account Ending Face Value Accrued Number Institution Balance Interest Rate Interest Weighted Yield: 0.820% 2152-1478 LPL Financial C 2,648,920 3.36% 11,974.73 Weighted Maturity in Days: 202.6 Totals 2,648,920 11,974.73 Unspent Bond Proceed Accounts: Ending APR @ Accrued Bondissue Institution 6 Balance* Month End Interest- 201 OA nterest*2010A AT&S C 4,483 0.10% 0.38 2011A DB&T C 129,509 0.30% 70.05 2012B DB&T C 1,812,717 0.32% 413.13 2012C DB&T C 594,595 0.33% 205.18 2012D DB&T C 790,243 0.34% 272.00 2012E DB&T C 122,195 0.17% 43.17 2012F AT&S C 383,744 0.30% 97.75 2012H DB&T C 612,758 0.17% 400.31 2014B AT&S C 4,038,811 1.04% - ** 2014C AT&S C 701,634 1.04% - ** Institution %ofToot Bond Balance DMASWA AT&S M 951,095 0.60% 437.45 AT&S 28.14 6,461,428.65 2015A AT&S C 381,662 0.50% 336.71 BB&T 17.69 4,062,01670 2015A FB&T C 9,834,531 0.68% 8,551.73 FB&T 54.17 12 438466 13 2016C FB&T M 2,603,936 0.95% 2,093.84 10000% 22961,911 Totals 22,961,911 12,921.70 (q=CITY FUNDS IMI=DUBUQUE METROPOLITAN AREA SOLID WASTE AGENCY IRI=RESERVE FUNDS * Ending balancesand accrued Interests retrieved from bank statement received for month ending February 28,2017. **Bonds were renewed at 1.04%In Februaryand allocated Interest has not been applied as of April 18 2017. Manager/Custodian Annual Fees Computation Fiscal YTD -Quarter Ending March 31, 2017 Total Market Value Annual Fees Investment Managers Managerial Fee Schedule (1) (2) Dana 0.25% No Tiers $ 5,921,329 $ 14,803 14,803 Avg 0.25% YTD Actual Fees $ 11,222 Dubuque Bank& Trust 0.25% No Tiers $ 7,636,966 $ 19,092 $ 19,092 Avg 0.25% YTD Actual Fees $ 14,489 First Community Trust 0.25% No Tiers $ 5,147,372 $ 12,868 $ 12,868 Avg 0.25% YTD Actual Fees $ 9,668 U.S.Bank 0.25% No Tiers $ 6,991,612 $ 17,479 $ 17,479 Avg 0.25% YTD Actual Fees $ 14,778 Custodian fee Schedule American Trust& Annual fee of$400 for each account plus... 25,697,279 $ 1,600 Savings Bank 0.2%on first$1,000,000 of assets for each account 8,000 0.15% on next$1,000,000 of assets for each account 6,000 0.10% on next$1,000,000 of assets for each account 4,000 0.05% on remaining assets for each account 6,849 $ 26,449 Avg 0.10% YTD Actual Fees $ 19,953 Combined Avg Mgmt&Custodial 0.35% Note:(1)Total market value includes accrued interest. (2) Fees are listed on an annual basis.