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Home My WebLink About1999-02-09; City Council; 15037; Report on City Investments December 31, 1998CITY OF CARLSBAD -AGENDA BILL AB# 1 5,0 3 7 TITLE: MTG.d- T- 77 REPORT ON CITY INVESTMENTS DEPT. TRS AS OF DECEMBER 31, 1998 RECOMMENDED ACTION: Accept and file report. ITEM EXPLANATION: The City’s Investment Policy requires the City Treasurer to report to the City Council on a monthly basis the status of the City’s pooled investment portfolio. A quarterly report is also required for the investments of bond proceeds held separately. In summary, the City’s pooled investment portfolio as of the month ended December 31, 1998 is as follows: Cash Income Fiscal Year-to-Date * Pooled Investment Interest Income Current Prior Month FYTD Month FYTD 6,969,107 6214,078 Current Month Income 755,029 (1) The cost of investments adjusted for amortized premiums and discounts. (2) The amount at which the investments could be sold. Source of market values is Union Bank of California’s custodial report as of 12/31/98. * The cash income received is adjusted for any accrued interest purchased. PAGE TWO OF AGENDA BILL NO. 1 i, 0 3 7 Pooled Investment Performance/Measurement October 1998 November 1998 December 1998 Average Life /Years) 1.43 1.40 1.37 Average Yield Modified Duration 5.79% 1.11 5.76% 1.09 5.71% 1.07 All pooled investments have been made in accordance with the City’s Investment Policy adopted January 2, 1985 and last revised September 8, 1998. All investments were initially made in accordance with the City’s Investment Policy. Events subsequent to the purchase might have resulted in some investments not being in compliance with the current policy. These events are typically a change in the City’s Investment Policy or a change in the credit rating subsequent to a purchase. See Exhibit 8 for details. The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6) months. In summary, the City’s investments of bond proceeds held separately as of the quarter ended December 31, 1998 is as follows: Par Value cost Investment Portfolio for Bond Proceeds Current Quarter 19,110,373 19,110,373 Prior Quarter 12,136,409 12,139,409 All investments of bond proceeds have been made in accordance with the City’s Investment Policy and the trust indenture for each issuer. EXHIBITS FOR POOLED INVESTMENTS: 1. Investment Portfolio Breakdown By Book Value, Market Value, Cash Income, and Average Yield 2. Investment Portfolio Breakdown Of Maturities 02 PAGE THREE OF AGENDA BILL NO. 15, Q ‘3 ? EXHIBITS FOR POOLED INVESTMENTS (continued): 3. Yield Comparison Graph 4. Cumulative Cash Income Graph 5. Fourth Quarter Transactions 6. Detailed Investment Report 7. Reconciliation of Fund Source to Investment Portfolio 8. Corporate Note and Commercial Paper Ratings 9. Percentage Weightings By Corporate Note Issuer EXHIBIT FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY: 10. Detailed Investment Report - Quarterly Report 3 EXHIBIT 1 2 is 0 0 0 0 0 8 8 d 8 d 0 0 0 0 0 is EXHIBIT 2 8 h s 0 0 0 F E m T % $ w z n % s lb $ 3 n w * ;r: g \o & d d O s \o, E hi O 0 s I 9 N. “s 0 5 01 . , c3, 0 F4 b d , , 0 & I m m m a -;I!& x4 WI t I - . ; 1 i EXHIBIT 3 3 -0 -3 7 -k -a -5 -7 3 -0 -3 -7 A -a -k -: -5 -0 z -Le -a 3 2 3 -0 6 EXHIBIT 4 9 . * 0 s \ * . & a 7 EXHIBIT 5 8888S8 dduidtiui SR8M78 $* co- m- In- d .-* ~;=u-au-J gggggg % 88ii3.8” uiui6;u;~~ 888888 dddddd 888888 g- $ g- g- g- g 0 - o* o- o- o- T-- TNT-.- 8888 . s !gggg 8 d o- d o- 88Z8 ; ti ; x-- $ x E fJ i! >a E 8 E d E as 82 I E, $8 * I c a 0 “I r9 Pf I =S t3B I I ‘I f- q &i! pl ia, P EXHIBIT 6 EXHIBIT 7 Reconciliation of Fund Source to Investment Portfolio AS OF DECEMBER 31,1998 Cash Balance by Fund: General Special Revenue Debt Service Capital Projects: General Capital Construction Traftic Impact Fees Public Facilities Fees Park Development Transnet Taxes Drainage Fees Special Districts Other Capital Construction Enterprise: Carlsbad Municipal Water District Sewer Fund Solid Waste Golf Course Internal Service Redevelopment Funds (1) Agency Funds Misc. Special Funds Total General Ledger Balance * 280,315,725 Amortiiation of discounts and premiums Deposits in transit Outstanding checks Wire in/(out) not recorded Other Net adjustments per bank statement Total adjustments 511,880 Total Treasurer’s Investment Portfolio 280,827,605 Total 7,643,780 3,957,545 25,954,380 6,516,115 10,281,124 5,684,719 56,826,503 618,941 Total 34,557,702 46872,459 1,978,242 3,773,482 (19,592) 531.473 36,375,280 20,067,512 1,330,768 116,883,107 81,181,885 11,682,738 0 12,794,435 0 . (1) Redevelopment Fund Balances are interspersed throughout all funds. /3 - CITY OF CARLSBAD INVESTMENT PORTFOLIO- AS OF DECEMBER 31,1998 CORPORATE NOTEAND COMMERCL4L PAPER RATINGS Corporate Note Investments Meeting the Current Investment Policy: (Ratings must be AA or better bv both Moodv’s and S&P) AMERITECH CAP ASSOC CORP OF N A AT&T CENTRAL ILLINOIS LT DUKE ENBRGY DUPONT FCC NATlONAL BANK FIRST NATlONAL BANK FIRST USA BANK GENERAL ELECTRIC CREDIT HARVARD UNIVERSITY HEWLETT-PACKARD KENTUCKY UTILITlES MARGARETTEN FINL MERRILL LYNCH MORGAN GUARANTY NATIONAL RURAL UTlLITlES OKLAHOMA GAS & ELECT SOUTHWESTERN BELL TOYOTA TRAVELERS GROUP lNC WAL MART Moody’s AA3 AA3 AA3 AA2 AA3 AA3 AA2 AA2 AA2 AAA AAA AA2 AA2 AA3 AA3 AA3 AA3 AA3 AA3 AAA AA2 AA2 s&p AA+ AA- AA- AA- AA- AA- AA- AA- AA- AAA AAA AA+ AA AA- AA AA+ AA AA- AA AA1 AA- AA Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be Al/P1 or better by both Moody’s and S&P) (Ratines of other debt must be AA or better bv both Moody’s and S&P) DUFF & PHELPS Al Pl other Debt: SALOMON SMITH BARNEY Al Pl Other Debt: AA3lA Investments Made Under a Previous Investment Policv (Ratings must be A or better) Prior to 2/13/96 Moody’s s&p Investments with Subseauent Changes in Credit Rating l + Maturity Moody’s s&p Date Purchased BANC ONE CORP (3) AA3 A+ 03/25/02 AA3lAA- DONNELLY Al A-k 12/01/00 AA3lAA- J P MORGAN Al AA 05/01/00 AA3lAA KAISER FOUND HSP A3 A 1 l/01/01 AA3lAA NORW’EST (9) AA3 A+ 03/01/02 AA3fAA- ST PAUL CO A A+ 08/13/01 AA3fAA * One rating is listed for this investment because the company chose to pay for only one rating agency. Carrying Value Market Value 2,503,197 2,561,500 1,059,254 1,068,670 999,810 1,003,410 931,326 933,713 10,691,269 10,845,818 1,002,909 1,023,640 EXHIBIT 8 ** The City’s Investment Policy allows the City Treasurer to determine the course of action that would correct exceptions to the policy. All of these investments are paying interest at the required times. The principal of all investments are considered secure. It is the intent of the City Treasurer to hold these assets in the portfolio until maturity unless events indicate they should be sold. AMERITECHCAPITAL ASSOCIATES CORP NA AT&T BANC ONE CENTRAL lLLlNOIS LT DONNELLY DUFF&PHELPS UTTL DUKEPOWER DUPONT FCC NATIONAL. BANK FJRSTUSA BANK FIRST NATIONAL BANK GENERALELECTfUC CREDIT HARVARD UNlVBRSITY HEWJXlT-PACKARD JP. MORGAN KAISER FOUD HSP KENl-UCKY WIZITlES MARGARBTI’JZNFINL MERRlLL LYNCH (iichldm CP) MORGAN GUARANTY NATIONAL RURAL tllElTES NORWEST OKLAHOMA GAS & ELECTRIC SALOMON Sm BARNEY (CP) SOUTHWESTERNBJXL ST PAUL CO TOYOTA TRAVELERS GROUPINC WALMART Cl1 I OF CARLSBAD INVESTMENT PORTFOLIO AS OF DECEMBER 31,1998 PERCENTAGE WEIGII’lTNGS BY CORPORATE NOTE ISSUER m Inv 1,843,969X1 11,073,721.00 2,044,620.00 2,504,125.00 1,014,650.00 1,145,610.00 1,958,189.00 2,048,020.00 1,168,073.48 975,690.OO 5039,195.oo 4,040,400.00 12J11,090.00 1,353,744.24 1,011,080.00 999,720.OO 954J87.50 2,024,340.00 1,023,210.00 7,879,330.39 1,995,580.00 3,049,940.00 10,756,869.00 1,01~500.00 2,933,929.17 3,084,830.00 1,004,920.00 5012,800.00 1,105,341.85 1,522,920.00 EXHIBIT 9 w 0.66% 3.94% 0.73% 0.89% 0.36% 0.41% 0.70% 0.73% 0.42% 0.35% 0.73% 1.44% 4.31% 0.48% 0.36% 0.36% 0.34% 0.72% 0.36% 2.81% 0.71% 1.09% 3.83% 0.36% 1.04% 1.10% 0.36% 0.72% 0.39% 0.54% Total Portfolio $280,827,605.41 *Nomomthan5%maybcimwtedwithasingleisaue. EXHIBIT 10 i;i 2 6 8 8 24 E 8 H F t g 2 0 :: s S E 0 c $ 88% ciniai k z % t + B 3 zi ii 88% ii f x 0 ticit& 2 8 ii r 4 N iz oaov) 99-i -“8 z y $ Pi /7