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Home My WebLink AboutCS 14-02 '088 REPORT TO COUNCIL - FROM: Gillis A. Paterson Director, Corporate Services & Treasurer DATE: June 17,2002 REPORT NUMBER: CS 14-02 SUBJECT: Investment Portfolio Activity for the Year Ended December 31, 2001 RECOMMENDATION: It is recommended that Report CS 14-02 of the Director, Corporate Services & Treasurer be received by Council for infonnation. ORIGIN: Director, Corporate Services & Treasurer AUTHORITY: - Investment Policy (Report TR 10/98) Municipal Act, RS.O, 1990, as amended, Regulation 438/97 FINANCIAL IMPLICATIONS: None 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 2001 totaled approximately $116,8 million with a year end balance in the portfolio of approximately $31.0 million. Current Fund investments are limited to one year or less and Reserve and Trust Funds 10 years or less under the Council approved policy. 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 infonnation and opinions that I must report, under Provincial Regulation, to the Committee and Council. I feel that the portfolio perfonned well during 2001 with an average yield of 4,1 per cent on short tenn investments, The average return on long tenn investments including intemalloans was 6.5 per cent. The attached schedules are included as part of the infonnation requirements, Report to Council CS 14-02 Date: June 17,2002 089 Subject: Investment Portfolio Portfolio for the Year Ended December 31, 2001 Page 2 Of the year end total portfolio of some $31. Omillion, approximately $7.1 million or 22,9 per cent were Interfund Investments (Internal Loans). It is not anticipated that additional Interfund Loans will be undertaken in the short tenD as the Development Charge and Parkland Reserve Fund providing the loans must retain balances sufficient to meet Capital Budget requirements. - 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. . For 2002 we intend to file semi annual investment portfolio reports with the Committee. The June 30 report will be presented at the first meeting of the Finance and Operations Committee in September following the summer break. ATTACHMENTS: 1. 2. Investment Activities for 2001 Outstanding Investments as at December 31,2001 Prepared I Approved I Endorsed By: - ~z- --y ~illis A. Paterson, Director, Corporate Services & Treasurer GAP:vw Attachments Recommended for the consideration of Pickering City Council ,.. ~2 - Short-term Nesbitt Burns Firstbank BA 4,073,071.86 4,122,000.00 5.769% -GlBC BA 4,079,895.08 4,139,000.00 5.811% Firstbank BA 1,999,606.08 2,012,000.00 5,520% Firstbank BA 3,498,978.08 3,536,000.00 5.440% Firstbank BA 11,633,664.60 11,790,000.00 5.390% Firstbank BA 4,172,203.02 4,226,000.00 5.172% TO BA 2,011,186.47 2,019,000.00 5.064% Firstbank BA 2,776,213.44 2,808,000.00 4.643% Firstbank BA 2,777,840.10 2,814,000.00 4.613% Firstbank BA 5,789,399.22 5,813,000.00 4.650% Firstbank BA 2,999,329.91 3,023,000.00 4.501% Firstbank BA 2,999,929.14 3,042,000.00 4.375% BNS BA 4,226,634.18 4,267,000.00 4.357% TOBA 5,814,537.60 5,840,000.00 4.440% CIBC BA 4,999,257.12 5,052,000.00 4.376% Firstbank BA 3,099,082.68 3,132,000.00 4.356% TO BA 2,813,165.10 2,839,000.00 4.243% TO BA 3,599,796.98 3,614,000;00 4.000% RBC BA 4,493,361.60 4,536,000.00 3.981% CIBC BA 3,299,446.71 3,321,000.00 3.137% RBC BA 3,445,841.14 3,473,000.00 3.093% Firstbank BA 4,587,852.78 4,611,000.00 2.192% TO BA 3,249,353.36 3,259,000.00 2.125% CIBC SA 3,249,572.02 3,266,000.00 2.073% CIBC SA 3,320,087.28 3,336,000.00 2.058% CIBC SA 3,478,731.22 3,494,000.00 1.978% Firstbank BA 2,999,974.64 3,004,000.00 2.041% Total Short-term 105,488,011.41 106,388,000.00 4.052% BA - Bankers Acceptance ) INVESTMENT ACTIVITIES FOR 2001 Financial Institution Instrument Cost Princi.e.al Yield ) . c.o c - '.-, Purchase Maturity Interest Term Date Due Payable (days) 76.0 01-Nov-00 16-Jan-01 91.0 10-Nov-00 09-Feb-01 41.0 18-Jan-01 28-Feb-01 71.0 18-Jan-01 30-Mar-01 91.0 19-Jan-01 20-Apr-01 91.0 09-Feb-01 11-May-01 28.0 02-Mar-01 30-Mar-01 90.0 30-Mar-01 28-Jun-01 103.0 30-Mar-01 11-Jul-01 32.0 20-Apr-01. 22-May-01 64.0 25-Apr-01 28-Jun-01 117.0 25-Apr-01 20-Aug-01 80.0 11-May-01 30-Jul-01 36.0 23-May-01 28-Jun-01 88.0 24-May-01 20-Aug-01 89.0 28-Jun-01 25-Sep-01 79.0 11-Jul-01 28-Sep-01 36.0 20-Aug-01 25-Sep-01 87.0 20-Aug-01 15-Nov-01 76.0 25-Sep-01 10-0ec-01 93.0 25-Sep-01 27-Dec-01 84.0 15-Nov-01 07-Feb-02 51.0 05-Dec-01 25-Jan-02 89.0 05-0ec-01 04-Mar-02 85.0 10-Dec-01 05-Mar-02 81.0 28-Dec-01 19-Mar-02 24.0 31-Dec-01 24-Jan-02 ;Þ. ;....¡ ~ () ::¡: 3: m Z -I ~ t- -4 0 :;:a:J m -a 0 ~ f \ C. JL ) ) þ INVESTMENT ACTIVITIES FOR 2001 Financial Purchase Maturity Interest Institution Instrument Cost Principal Yield Term Date Due Payable (days) Long-term Wood Gundy Town of Kempville 30,000.00 30,000.00 8.875% 2,922.0 01-Feb-93 01-Feb-01 Feb 01 & Aug 01 Region of Hamilton Wentworth 400,000.00 400,000.00 7.000% 1,826.0 06-Jun-96 06-Jun-01 Jun 06 & Dec 06 Town of Gananoque 153,000.00 153,000.00 8.750% 3,287.0 10-Dec-92 10-Dec-01 Jun 10& Dec 10 Township of Tay 88,000.00 88,000.00 8.875% 3,287.0 15-Dec-92 15-Dec-01 Jun 15 & Dec 15 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 (1) Farm Credit Corporation 250,000.00 250,000.00 5.250% 730.0 22-Jun-01 22-Jun-03 Jun 22 & Dee 22 (2) Export Development Corp 400,000.00 400,000.00 4.250% 730.0 26-0ct-01 26-0ct-03 Oct 26 & Apr 26 (3) Total Long-term 3,321,000.00 3,321,000.00 Total External Investments 108,809,011.41 109,709,000.00 ~ -1 ):> n :r; 3: m ~ ._, Interfund Investments (Internal Loans) Development Charge Reserve Fund Development Charge Reserve Fund Parkland Reserve Fund 6,077,501.00 130,391.00 864,271.00 5.800% 5.300% 5.800% 3,287.0 1,826.0 3,287.0 01-Jan-01 01-Jan-01 01-Jan-01 01-Jan-10 01-Jan-06 01-Jan-10 31-Dec 31-Dec 31-Dec f d ;;0 m "'t:I 0 ~.::i ~# ~þ «., . ~- N~ t::. -t:> 7,072,163.00 Total Investment Activity 116,781,163.00 (1) This represents a step-up, extendible bond. It is extendible on May 1, 2003 and every six months thereafter to the final maturity date of May 1, 2008 at the issuer's option. Interest rates step-up annually on May 1 and interest is paid semi-annually. (2) This represents a step-up, extendible bond. It is extendible on June 22, 2003 and every six months thereafter to the final maturity date of June 22, 2011 at the issuer's option. Interest rates step-up annually on June 22 and interest is paid semi-annually. (3) This represents a step-up, callable bond. It is callable at the option of the issurer beginning on October 26, 2003 and every six months thereafter to the final maturity date of October 26, 2009. Interest rates step-up annually on October 26 and interest is paid semi-annually. -- ::..0 ¡..... ) ) þ --- -' .f:; f...j OUTSTANDING INVESTMENTS AS AT DECEMBER 31, 2001 Financial Purchase Maturity Interest Institution Instrument Cost Principal Yield Term Date Due Payable (days) Short-term Nesbitt Burns Firstbank SA 4,587,852.78 4,611,000.00 2.192% 84.0 15-Nov-01 07 -Feb-02 TDBA 3,249,353.36 3,259,000.00 2.125% 51.0 05-Dee-01 25-Jan-02 CIBC BA 3,249,572.02 3,266,000.00 2.073% 89.0 05-Dec-01 04-Mar-02 CIBC BA 3,320,087.28 3,336,000.00 2.058% 85.0 10-Dee-01 05-Mar-02 CIBC BA 3,478,731.22 3,494,000.00 1.978% 81.0 28-Dee-01 19-Mar-02 Firstbank SA 2,999,974.64 3,004,000.00 2.041% 24.0 31-Dee-01 24-Jan-02 ~ Total Short-term 20,885,571.30 20,970,000.00 ;;! () :I: Long-term ~ Wood Gundy Town of Kempville 32,000.00 32,000.00 8.875% 3,287.0 01-Feb-93 01-Feb-02 Feb 01 & Aug 01 m Z Town of Kempville 35,000.00 35,000.00 8.875% 3,652.0 01-Feb-93 01-Feb-03 Feb 01 & Aug 01 -I Town of Gananoque 166,000.00 166,000.00 8.750% 3,652.0 10-Dee-92 10-Dee-02 Jun 10 & Dee 10 ::t Township of Tay 96,000.00 96,000.00 8.875% 3,652.0 15-Dee-92 15-Dee-02 Jun 15 & Dee 15 ~ 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 -4 Farm Credit Corporation 250,000.00 250,000.00 5.250% 730.0 22-Jun-01 22-Jun-03 Jun 22 & Dee 22 0 Export Development Corp 400,000.00 400,000.00 4.250% 730.0 26-0et-01 26-0et-03 Oct 26 & Apr 26 ::0 m -u Total Long-term 0 2,979,000.00 2,979,000.00 ~ Total External Investments =It 23,864,571.30 23,949,000.00 ,~ Interfund Investments (Internal Loans) .- Development Charge Reserve Fund 6,077,501.00 5.800% 3,287.0 01-Jan-01 01-Jan-10 31-Dee ~. " Development Charge Reserve Fund 130,391.00 5.300% 1,826.0 01-Jan-O1 01-Jan-06 31-Dee ~ Parkland Reserve Fund 864,271.00 5.800% 3,287.0 01-Jan-O1 01-Jan-10 31-Dee f.; Totallnterfund Investments 7,072,163.00 Total as at December 31, 2001 31,021,163.00