HomeMy WebLinkAbout5G - 3rd Quarter Investment Rpt
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
RECOMMENDED
MOTION:
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STAFF AGENDA REPORT
OCTOBER 20, 2003
5G
RALPH TESCHNER, FlNANCE DIRECTOR
CONSIDER AFPROV AL OF 2003 3RD QUARTER
INVESTMENT REPORT
Staff has prepared this written narrative to serve as an
informational addendum to the quarterly investment report
summary. Also attached to the quarterly investment report is a
document entitled "Investment Report Summary Narrative". It is
intended to provide supplementary information with respect to
those allowable forms of investment permitted by Minnesota
Statute.
Additional objectives of the report narrative are to identify the
various funds established and describe the purpose those funds
serve. In most instances, the dollars are either reserved and
restricted for specific expenditures as indicated or sufficient fund
balances are necessary to provide adequate operational cash flows
as in the case with the General Fund and Sewer and Water Fund. If
councilmembers have questions please feel free to contact me at
447-9841 for more information.
A motion as part of the consent agenda to approve the 2003 3rd
~ vii- "boll'"
I. 2003 3fd Quarter Investment Report
2. Investment Report Summary Narrative
www.cityofpriorlake.com
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Phone 952.447.4230 / Fax 952.447.4245
INVESTMENT REPORT SLJMMARY
Seotember 30 2003
Reference Interest Pu rchase Maturity
Number Investment Cost Rate Date Date
~LiqUidAssetFund 500,000.00 0.65% 07/31/03 --/--/03
Jlffi553 Discounted c.d's 468,989.00 3.31% 11/01/01 11/03/03
50912553 Discounted c.d's 470,725.00 3.11% 11/21/01 11/21/03
50912553 Discounted c.d's 446,213.00 4.03% 10/16/01 10/18/04
50912553 Discounted c.d's 448,311.00 3.84% 10/18/01 10/18/04
K169-2111-3230 G.E. commercial paper 703,344.23 0.96% 09/24/03 12/01/03
K169-2111-3230 Ramsey G.O. bonds 275,000.00 3.50% 11/28/01 12/15/03
K169-2111-3230 Chaska G.O. bonds 400,000.00 4.75% 10/23/01 12/01/04
K169-2111-3230 Ramsey G.O. bonds 240,000.00 4.00% 11/28/01 12/15/04
K169-2111-3230 FHLB govt. agency 393,220.00 3.75% 03/06/02 11/28/05
K169-2111-3230 Chaska G.O. bonds 500,000.00 5.00% 10/23/01 12/01/05
K169-2111-3230 Chaska G.O. bonds 600,000.00 5.20% 10/23/01 12/01/06
K169-2111-3230 Waite Park G.O. bonds 235,002.00 5.00% 12/21/01 12/01/06
K169-2111-3230 FHLB govt. agency 1,000,000.00 3.52% 09/19/03 03/19/07
K169-2111-3230 FNMA govl. agency 498,750.00 3.45% 11/29/02 11/21/07
K169-2111-3230 Waite Park G.O.' bonds 221.100.00 5.20% 12/21/01 12/01/07
K169-2111-3230 Waite Park G.O.,bonds 208.620.00 5.30% 12/21/01 12/01/08
K169-2111-3230 FHLMC govl. agency 498,750.00 3.05% 06/25/03 06/30/09
K169-2111-3230 FNMA govl. agency 998,125.00 4.25% 02/20/03 02/20/10
K169-2111-3230 FHLB govl. agency 500,000.00 4.14% 04/01/03 10/01110
K169-2111-3230 FHLMC govl. agency 500,000.00 4.00% 04/08/03 10/08/10
K169-2111-3230 Waite Park G.O. bonds 183,051.00 5.60% 12/21/01 12/01/10
K169-2111-3230 FHLMC govl. agency 500,000.00 4.50% 12/23/02 12/17/10
K169-2111-3230 Waite Park G.O. bonds 170,721.00 5.75% 12/21/01 12/01/11
K169-2111-3230 Waite Park G.O. bonds 159,606.00 5.85% 12/21/01 12/01/12
008-950601-33
008-950601-33
008-950601-33
FHLB govl. agency
FHLB govl. agency
FHLB govl. agency step-up
500,000.00
500,000.00
498,750.00
3.30%
3.50%
4.00%
05/14/03
08/20/03
05/01/03
02/14/07
08/20/08
05/01/13
# 19089 Certificate 96,000.00 5.20% 10/07/98 10/07/03
# 19089 Certificate 96,000.00 5.30% 10/07/98 10/07/03
# 19089 TVA zero bonds 205,602.00 5.84% 03/23/98 10/15/04
# 19089 FHLB gOY!. agency 500,000.00 4.05% 10/24/01 10/24/05
# 19089 FHLB govl. agency 500,000.00 5.08% 12/26/01 12/26/06
# 19089 FHLMC govl. agency 400,000.00 6.00% 02/05/01 02/05/08
# 19089 FHLB gOY!. agency 500,000.00 5.75% 06/29/01 05/15/08
# 19089 FHLMC govt. agency 500,000.00 4.43% 12/16/02 12/16/08
# 19089 FICO zero govl. agency 402,745.00 3.76% 03/24/03 01/15/09
# 19089 FHLB govt. agency 500,000.00 3.57% 07/30/03 01/30/09
# 19089 FNMA govl. agency 500,000.00 4.00% 10/25/02 04/24/09
# 19089 FICO zero gov!. agency 389,600.00 3.75% 03/21/03 12/06/09
# 19089 FICO zero gOY!. agency 673,760.00 4.79% 12/05/02 04/06/11
# 19089 FHLB govt. agency 1,000,000.00 4.88% 12/20/02 11/15/11
# 19089 FNMA gOY!. agency 498,750.00 5.03% 08/26/02 11/17/11
# 19089 FNMA govl. agency 500,000.00 5.25% 09/05/02 09/05/12
# 19089 FHLMC govl. agency 997,500.00 5.16% 10/25/02 08/20/12
# 19089 FHLB govl. agency 1,000,000.00 5.20% 10/29/02 10/29/12
# 19089 FHLMC gOY!. agency 495,621.00 4.63% 07/24/03 07/19/13
# 19089 FHLMC govt. agency 997,500.00 5.03% 10/24/02 10/24/13
# 19089 FNMA gov!. agency 500,000.00 5.50% 08/09/02 02/07/14
Investment Portfolio Total $ 23,871,355.23 4.28% (weighted average)
Invest2.xls 8:20AM10/6103
INVES1MENT REPORT SUMMARY NARRATIVE
The attached Investment Report identifies the vanous types of investments and those
brokers/banks the City of Prior Lake uses for investment purposes. At the end of the report
summary is the grand total of all city moneys currently invested and the weighted average return
of the investment portfolio.
Investments for local governments are restricted to only those permitted by Minnesota Statutes.
They are identified as follows:
1. U.S. Treasury Bills and Notes which are direct obligations of the federal government.
2. U.S. Government Securities which are guaranteed or insured by the federal
government i.e., FHLB, FNMA, FHLMC agencies or authorities such as TV A.
3. State and Local Government bonds that are rated "A" or better.
4. Bankers' Acceptances of a United States Bank.
5. Commercial Paper that is rated "AI +Pl" and matures in 270 days or less.
6. Repurchase Agreements/Certificate of Deposits with banks having capitalization
exceeding $10,000,000.
Also allowable, but of higher risks, are guaranteed investment contracts (GIC's) and mortgage-
backed securities (CMO's) which because of their sophisticated nature and inherent risk, Prior
Lake does not participate in.
The City's investment portfolio amount is a pool of funds identified on the monthly Treasurer's
Report which is comprised of 19 funds that have been established by the City as allowable under
state statute. A short description of these funds is outlined below and for the most part are
dedicated for specific purposes.
General Fund - The General Fund represents the necessary resources to support general
operating budget expenditures of the City. The year-end fund balance represents dollars that
have accumulated over a period of time as a result of cumulative budgetary revenue
surpluses and expenditure under runs. The City Council has designated a portion of this
amount, equal to a minimum of 30% of the current operating budget, for working capital to
finance city operations.
Sewer & Water Fund - The Sewer and Water Fund accounts for the collection of sewer and
water billing utility revenue. This enterprise fund balance is allocated for the operational
costs of the Water/Sewer departments and normally reserved for large capital municipal
system expenses.
Storm Water Fund - The Storm Water Fund is an enterprise account funded by the $3.75
storm water charge on the water bills and is dedicated to finance water quality
improvements including departmental administration, storm water maintenance operations
and improvement projects such as water quality ponds.
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Transit Fund - The Transit Fund is an enterprise account funded predominantly (90%) by
state aid that is derived from the vehicle excise tax paid thru annual1icense tab renewals on
vehicles and is dedicated to pay for community transit services such as the downtown
commuter service, van pool and dial-a-ride services.
Cable Franchise Fund - This fund was created to act as a clearing house for funds that were
received from the cable franchise company as specified by ordinance which are then paid to
ISD #719 as payment support for 50% of the public access coordinator position and for
cable studio equipment replacement.
Capital Park Fund - Capital Park funds are dedicated funds generated by the cash park
dedication fees as a result of new development and by park support fees on new
construction building permits for the purpose of developing the City's neighborhood park
and trail system. These dollars are programmed throughout the course of the city's capital
improvement plan.
Severance Compensation Fund - This fund was established to partially fund the City's
compensated absence liability which is associated with the accrued vacation and sick leave
for employees upon employment termination. The State Auditor's Office has recommended
that local governments set aside a certain percentage on the basis of foreseeable turnover.
ED FedIMN Loan Funds - These funds were created to account for the proceeds of
economic development grants received either from the federal government or the State of
Minnesota to provide seed money for a revolving loan account. The purpose is to provide
economic incentive for new business expansion within the community.
Downtown Redevelopment Fund - This fund was created to provide development assistance
in the context of building facade improvements for downtown businesses in an effort to
revitalize and renew the general appearance of the downtown business district.
DAG Special Revenue Fund - The DAG Fund is a special revenue fund to account for
project engineering and inspection fees that are collected as a result of a developer's
agreement contract. The fees are paid to the City by the developer when the contract is
executed at the time of final plat approval. These revenues are used to pay for legal
expenses and inspection services on developer installed utilities including sewer, water and
street installation for newly approved subdivisions within the City of Prior Lake.
Tax Increment Funds - The Tax Increment Fund represents an accumulation of funds such
as bond proceeds and project administration fees charged to companies requesting project
writedowns in the form of tax increment financing for new and/or redevelopment. The TIF
district property taxes are then deposited in a number of tax increment funds established to
track their respective revenue.
Revolving Equipment Fund - A regular replacement schedule for equipment needs of the
City in excess of $5,000 has been adopted. Periodic fund transfers are appropriated to
provide supplemental revenue to finance the acquisition and purchase of new and
replacement vehicles and equipment. The long term effect of contributing occasional fund
contributions is to mitigate property tax increases and eliminate debt financing.
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Building Fund - The funds within the Building Fund are reserved for future building needs.
A high priority has been established by the Council to build a new city hall, police and
community facility. Also a space needs analysis has identified that the city will require
another satellite fire station to serve the northwest section of the city that will experience
the greatest growth.
Construction Fund - Construction Fund dollars represent unexpended bond proceeds that
are reserved to pay for improvement projects that have been approved by the City Council
on an annual basis. For the most part, these moneys are necessary to complete outstanding
construction contracts and related engineering and professional services.
Trunk Reserve Fund - The Trunk Reserve Fund consists of dedicated revenue generated
from utility connection permits and acreage fees assessed at time of sewer and water
installation for the purpose of recovering trunk oversizing costs and central municipal
system improvements i.e., wells lift stations, force mains, etc. These dollars are
programmed throughout the course of the city's capital improvement plan.
Collector Street Fund - The Collector Street Fund consists of dedicated revenue generated
by fees associated with new development and new construction building permits for the
purpose of funding pedestrian related improvements i.e., bikeways, sidewalks, trail systems
plus right of way acquisition along collector streets and occasional collector street links.
Park Referendum Fund - Park Referendum Fund dollars represent unexpended bond
proceeds that are reserved to pay for improvement projects that have been authorized by the
City Council and approved by the voters as a result of the referendum election conducted
during 1997. For the most part, these moneys are necessary to complete outstanding
construction contracts and related engineering and professional services associated with
those identified park improvements.
Debt Service Fund - The Debt Service Fund represents prepayments of special assessments,
property tax collections and special levies needed to amortize the outstanding bonded
indebtedness of the City. This fund balance is 100% reserved for the payment of bond
principal and interest.
Agency Fund - The Agency Fund accounts for the $1500 residential building permit deposit
that is refunded to the building contractor upon final inspection. This provides the City the
required financial assurance that the property site will be adequately cleaned up and debris
free before an occupancy permit is granted.
Because city funds are pooled for investment purposes, interest is allocated to each fund on a
quarterly basis, and is based upon each individual fund's proportionate share of the total amount.
Overall the total investment pool does not represent excess reserves but rather available financial
resources. In most instances these funds were established and restricted for specific and
designated purposes by either Minnesota Statutes or City Code to accomplish the goals and
objectives of the City of Prior Lake.
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