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HomeMy WebLinkAboutCS 17-03 REPORT TO FINANCE & OPERATIONS COMMITTEE Report Number: CS 17-03 Date: March 11, 2003 From: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Investment Portfolio Activity for the Year ended December 31,2002 Recommendation: 1. It is recommended that Report CS 17-03 of the Director, Corporate Services & Treasurer be received by Council for information. Executive Summary: The following report and attachments represent a summary of the investment activity and year end balance in the portfolio. Investment activity for the year 2002 totaled approximately $118.5 million with a year end balance in the portfolio of approximately $33.4 million. Current Fund investments are limited to one year or less and Reserve and Trust Funds to 10 years or less under the Council approved policy. Financial Implications: None Background: The City's investment portfolio is comprised of two main areas: Reserve Funds, and balances available in the Current Fund when not required to meet current operating expenditures. This latter balance can vary greatly depending upon many factors including the quarterly receipt of property taxes. Reserve Funds are invested through the Current Fund and investments are undertaken as one consolidated pool of funds. Interest earned is credited to the appropriate fund. As the Treasurer of the City of Pickering there are certain information and opinions that I must report, under Provincial Regulation, to the Committee and Council. I feel that the portfolio performed well during 2002 with an average yield of 2.5 per cent on short term investments. The average return on long term investments including internal loans was 6.0 per cent. The attached schedules are included as part of the information requirements. Of the year end total portfolio of some $33.4 million, approximately $7.7 million or 23.1 per cent were Interfund Investments (Internal Loans). Report CS 17-03 Date: March 11, 2003 Subject: Investment Portfolio Activity for the Year Ended December 31 , 2002 Page 2 It is my opinion that all investments were made in accordance with the Investment Policy approved by Council. The investments also met Council's goal of financing capital expenditures internally to the greatest degree possible while providing a reasonable rate of return to the investing reserve funds. Attachments: 1. 2. I nvestment Activities for 2002 Outstanding Investments as at December 31,2002 Prepared By: ~~,feD-~ ristine Senior Manager, Accounting Services Approved I Endorsed By: x~ J:> - --- - "--ð"illis A. Paterson Director, Corporate Services & Treasurer GAP:vw Attachments Copy: Chief Administrative Officer Recommended for the consideration of Pickering Cit ouncil II INVESTMENT ACTIVITIES FOR 2002 Financial Purchase Maturity Interest Institution Instrument Cost Principal Yield Term Date Due Payable (days) Short-term Nesbitt Burns Firstbank BA 4,587,852.78 4,611,000.00 2.190% 84 15-Nov-01 7 -Feb-02 TOBA 3,249,353.36 3,259,000.00 2.125% 51 5-0ec-01 25-Jan-O2 CIBC BA 3,249,572.02 3,266,000.00 2.073% 89 5-0ec-01 4-Mar-02 CIBC BA 3,320,087.28 3,336,000.00 2.058% 85 10-0ec-O1 5-Mar-02 CIBC BA 3,478,731.22 3,494,000,00 1.987% 81 28-0ec-O1 19-Mar-O2 Firstbank BA 2,999,974.64 3,004,000.00 2.041% 24 31-0ec-O1 24-Jan-02 RBC BA 6,262,781.76 6,294,000.00 2.022% 90 25-Jan-O2 25-Apr-O2 RBC BA 4,610,344.63 4,633,000.00 2.017% 89 8-Feb-02 8-May-02 RBC BA 3,335,396.75 3,353,000.00 2.071% 93 5-Mar-02 6-Jun-02 ~ TOBA 2,018,935.86 2,031,000.00 2.097% 104 5-Mar-02 17-Jun-O2 Firstbank BA 1,246,538.70 1,254,000.00 2.101% 104 5-Mar-O2 17-Jun-O2 ~ CIBC BA 2,493,587.55 2,507,000.00 2.134% 92 20-Mar-02 20-Jun-02 Firstbank BA 2,999,949.63 3,011,000.00 2.241% 60 25-Apr-02 24-Jun-02 :I: CIBC BA 3,193,657.74 3,213,000.00 2.403% 92 25-Apr-02 26-Jul-02 ~ TOBA 4,692,674.00 4,721,000.00 2.448% 90 8-May-O2 6-Aug-O2 m TOBA 3,352,792.50 3,375,000.00 2.628% 92 6-Jun-02 6-Sep-O2 Z CIBC BA 2,506,584.40 2,524,000.00 2.757% 92 20-Jun-02 20-Sep-02 -I Firstbank BA 3,284,843.10 3,307,000.00 2.705% 91 17-Jun-02 16-Sep-02 :at CIBC BA 3,010,517.10 3,030,000.00 2.715% 87 25-Jun-02 20-Sep-02 1- Firstbank BA 1,999,305.36 2,008,000.00 2.737% 58 31-Jul-02 27-Sep-02 Firstbank BA 3,212,160.60 3,235,000.00 2.761% 94 26-Jul-02 28-0ct-02 RBC BA 1,999,251.21 2,013,000.00 2.758% 91 31-Jul-02 30-0ct-02 a BNS BA 1,290,159.00 1,300,000.00 2.812% 99 31-Jul-02 7-Nov-02 TO BA 1,209,784.36 1,219,000.00 2.809% 99 31-Jul-02 7-Nov-02 ~ TO BA 4,720,489.48 4,753,000.00 2.793% 90 6-Aug-02 4-Nov-02 -0 Ontario T-Bill 1,482,990.00 1,500,000.00 2,887% 145 31-Jul-O2 23-0ec-02 0 TOBA 3,374,383.90 3,398,000.00 2.807% 91 6-Sep-O2 6-0ec-02 ~ BNS BA 3,234,860.07 3,243,000,00 2.624% 35 28-0ct-02 2-0ec-02 TO BA 3,999,763.40 4,012,000.00 2.659% 42 31-0ct-02 12-0ec-02 :at CIBC BA 1,499,958.25 1,505,000.00 2.667% 46 31-0ct-02 16-0ec-02 Þ RBC BA 1,512,914.70 1,518,000.00 2.667% 46 31-0ct-02 16-0ec-02 Firstbank BA 2,499,499.62 2,511,000.00 2.709% 62 7-Nov-02 8-Jan-03 TO BA 2,518,218.30 2,535,000.00 2.764% 88 7-Nov-02 3-Feb-03 ....... TO BA 3,999,679.13 4,031,000.00 2.775% 103 7-Nov-02 18-Feb-O3 .......J Firstbank BA 1,982,100.00 2,000,000.00 2.793% 118 7-Nov-02 5-Mar-03 f Firstbank BA 989,650,00 1,000,000.00 2.786% 137 7-Nov-02 24-Mar-03 CJ Firstbank BA 1,499,107,65 1,515,000.00 2.804% 138 7-Nov-02 25-Mar-03 \}.i Firstbank BA 4,803,698.58 4,838,000.00 2.773% 94 4-Nov-O2 6-Feb-03 Firstbank BA 1,505,014.16 1,508,000.00 2.414% 30 16-0ec-O2 15-Jan-03 CIBC BA 1,517,150.85 1,527,000.00 2.693% 88 16-0ec-O2 14-Mar-O3 BNS BA 1,499,973.60 1,510,000.00 2.681% 91 23-0ec-02 24-Mar-03 Total Short-term 116,244,287.24 116,902,000,00 2.512% BA - Bankers Acceptance 2002investmentactivity 3/12/200312:11 PM INVESTMENT ACTIVITIES FOR 2002 Financial Purchase Maturity Interest Institution Instrument Cost Principal Yield Term Date Due Payable (days) Long-term Wood Gundy Town of Kempville Town of Gananoque Township of Tay Nesbitt Burns Province of Ontario 32,000.00 32,000,00 8,875% 3,287.0 01-Feb-93 01-Feb-02 Feb 01 & Aug 01 166,000.00 166,000.00 8.750% 3,652.0 10-Dec-92 10-Dec..Q2 Jun 10 & Dec 10 96,000.00 96,000.00 8.875% 3,652.0 15-Dec-92 15-Dec-02 Jun 15 & Dec 15 100,000,00 100,000.00 4.620% 2,557.0 06-May-02 06-May-09 6th day of each month (1) 394,000.00 394,000.00 116,638,287.24 117,296,000.00 Total Long-term Total External Investments Interfund Investments (Internal Loans) Development Charge Reserve Fund Development Charge Reserve Fund 1,181,000.00 43,000.00 5.800% 5.300% 3,287.0 1,826.0 31-Dec-02 31-Dec-02 31-Dec-11 31-Dec-07 31-Dec 31-Dec 1,224,000.00 Total Investment Activity 118,520,000.00 (1) This represents a step-up, extendible bond. It is extendible on May 6, 2004 and every six months thereafter to the final maturity date of May 6, 2009 at the issuer's option. Interest rates step-up annually on May 6, commencing 2004 and interest is paid monthly. 2002investmentactivity 3/121200311:06 AM OUTSTANDING INVESTMENTS AS AT DECEMBER 31,2002 Financial Purchase Maturity Interest Institution Instrument Cost Principal Yield Term Date Due Payable (days) Short-term Nesbitt Burns Firstbank BA 4,803,698.58 4,838,000.00 2,773% 94.0 04-Nov-02 06-Feb-03 Firstbank BA 2,499,499.62 2,511,000.00 2.709% 62.0 07-Nov-02 08-Jan-03 TDBA 2,518,218.30 2,535,000.00 2.764% 88.0 07-Nov-02 03-Feb-03 TO Discount Note 3,999,679.13 4,031,000.00 2.775% 103.0 07-Nov-02 18-Feb-03 Firstbank BA 1,982,100.00 2,000,000.00 2.793% 118.0 07-Nov-02 05-Mar-03 Firstbank BA 989,650.00 1,000,000.00 2.786% 137.0 07-Nov-02 24-Mar-03 Firstbank BA 1,499,107.65 1,515,000.00 2.804% 138.0 07-Nov-02 25-Mar-03 Firstbank BA 1,505,014.16 1,508,000.00 2.414% 30.0 16cDec-02 15-Jan-03 CIBC BA 1,517,150.85 1,527,000.00 2.693% 88.0 16-Dec-02 14-Mar-03 BNS BA 1,499,973.60 1,510,000.00 2.681% 91.0 23-Dec-02 24-Mar-03 Total Short-term 22,814,091.89 22,975,000.00 Long-term Wood Gundy Town of Kempville 35,000.00 35,000.00 8.875% 3,652.0 01-Feb-93 01-Feb-03 Feb 01 & Aug 01 Nesbitt Burns Export Development Corp 2,000,000.00 2,000,000.00 5.150% 724.0 07-May-01 01-May-03 May 01 & Nov 01 Farm Credit Corporation 250,000.00 250,000.00 5.250% 730.0 22-Jun-01 22-Jun-03 Jun 22 & Dec 22 Export Development Corp 400,000.00 400,000,00 4.250% 730.0 26-0ct-01 26-0ct-03 Oct 26 & Apr 26 Province of Ontario 100,000.00 100,000.00 4.620% 2,557.0 06-May-02 06-May-09 6th day of every month Total Long-term 2,785,000.00 2,785,000.00 Total External Investments 25,599,091.89 25,760,000.00 Interfund Investments (Internal Loans) Development Charge Reserve Fund 5,525,794,00 5.800% 3,287.0 01-Jan-01 01-Jan-10 31-Dec Development Charge Reserve Fund 133,920.00 5.300% 1,826.0 01-Jan-01 01-Jan-06 31-Dec Parkland Reserve Fund 788,360.00 5,800% 3,287.0 01-Jan-01 01-Jan-10 31-Dec Development Charge Reserve Fund 1,181,000.00 5.800% 3,287.0 31-Dec-02 31-Dec-11 31-Dec Development Charge Reserve Fund 43,000.00 5.300% 1,826.0 31-Dec-02 31-Dec-07 31-Dec Totallnterfund Investments 7,672,074.00 Total as at December 31,2002 33,432,074.00 2002investmentactivity 3/12/2003 11 :08 AM ~ ~ (') :I: 3 m ~ ~ d ~ ~ ~ tß ....J \ 0 W