HomeMy WebLinkAbout1990-03-20; City Council; 10545; REPORT ON CITY INVESTMENTS/"
Clp( OF CARLSBAD - AGENd BILL -
AB# 14: .r;TLtf
MTG.
TITLE:
DEPT.
RECOMMENDED ACTION:
3/20/90 REPORT ON CITY INVESTMENTS
TRS
No action is required.
ITEM EXPLANATION:
State law requires the City Treasurer to report to the City Council on a monthly basis the status of the City's investment portfolio. This report is presented to Council each month reporting on investments held on the first day of the month.
In summary, the City's investment portfolio as of March 1, 1990, is as
f 01 1 ows :
Certificates of Deposit
Federal Gov't Notes or Bonds'
Federal Agency Notes or Bonds2
Corporate Notes3
Local Agency Investment Funds
Bankers Acceptances4
Commerci a1 paper'
Other Investments
Total Portfol io
Principal Amount
$ 22 , 250,000
2,621,348
11,147,138
18,769,862
10,000,000
5,577 , 455
-0-
447,173
$70,812,976
Average Interest Rat e 8.68%
8.57
8.19
9.44
8.55
8.20
-
-
" 8.74%
"
Average Term 296
869
2160
82 1
-
175
-
-
864
These investments have been made in accordance with the City's investment policy adopted January 2, 1985, and last revised November 7, 1989.
FISCAL IMPACT:
When held to maturity, the above investments will yield $12,598,676 in interest revenue. The average 1 ife of the portfol io is 2.37 years.
EXHIBITS:
Detail listing of investments as of March 1, 1990.
z 0 1. Current market value = $ 2,874,135
F 2. Current market value = 0 $11,039,358
4 3. Current market value = $18,798,080 d 0 4. Current Market Value = $ 5,644,050
3 5. Current Market Value = $ -0- z
0
Interest is current on a1 1 appl icable securities.
0 0
March 1, 1990
TO : CITY COUNCIL
FROM: City Treasurer
BANKRUPTCY OF BROKERAGE FIRM
On September 21, 1988, I reported to the City Council by memorandum that a brokerage firm, Fitzgerald, DeArman and Roberts, from whom the City purchased two securities, was being liquidated by order of a bankruptcy court at the request of the Securities Investor Protection Corporation. The two securities in question, totaling approximately $1 million, were held by the securities firm when it went into bankruptcy. Subsequent to that time, each monthly
Treasurer's report has noted one or two securities as not being under the control of the City.
The claim made by the City against this firm in 1988 has now been fully satisfied. Both securities have been returned and are under the control of the City of Carlsbad. No funds have been lost. -
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March 1, 1990
TO : CITY COUNCIL
FROM: City Treasurer
INVESTMENT IN REPURCHASE AGREEMENT
California Government Code, Section 53635, requires City Council approval of repurchase agreements. On January
4, 1990, this office invested $2 million in a Repurchase Agreement with San Diego Trust & Savings Bank and closed out the agreement on January 9, 1990. Interest income received was $2,194.44. This income exceeded that which would have been paid had this sum been left for that period in the San Diego Trust & Savings sweep account.
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