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
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