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Home My WebLink About1999-03-02; City Council; 15071; Report On City Investments January 31, 1999CITk OF CARLSBAD -AGENDA BILL WI !m TITLE: VITG. IEPT. REPORT ON CITY INVESTMENTS TRS AS OF JANUARY 31,1999 CITY MGRZ$ 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 January 31, 1999 is as follows: Pooled Investment Portfolio (Cash and Securities) (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 l/29/99. Cash Income Fiscal Year-to-Date * Pooled Investment Interest Income Current Month FYTD 8,397,254 Prior Month FYTD 6,969,107 * The cash income received is adjusted for any accrued interest purchased. Current Month Income 1,428,148 I - PAGE TWO OF AGENDA BILL NO. 1% 0 7/ Pooled Investment Performance/Measurement Average Life /Years) 1.40 1.37 1.32 Average Yield 5.76% 5.71% 5.64% Modified Duration 1.09 1.07 1.03 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. EXHIBITS FOR POOLED INVESTMENTS: 1. Investment Portfolio Breakdown By Book Value, Market Value, Cash Income, and Average Yield 2. Investment Portfolio Breakdown Of Maturities 3. Yield Comparison Graph 4. Cumulative Cash Income Graph 5. First 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 1 . . 3 z 4 22 0 0 0 0 0 8 8 d 8 d 0 0 0 0 0 2 3 Exhibit 2 s l-i Q s 0 t-4 0 s 9 d s 8 0 0 0 0 0 0 0 0 01 Exhibit 3 I- -z -0 -3 -7 -k -a - c 3 3 -0 -3 -7 -is -a -6 -\ 3 -0 -=I -7 As -a -iii -: -5 -0 . 5 . Exhibit 4 6 00 w qq B NO 2 “5 $1 %w cu(v FW 8s 88 QQ Q Q - - - m. QQ Q Q l-J- uf 6.i 6 gcgzsss * oooocu 4 olwoow r‘Tcu?ln s lnwwuJw vi $$S&eS Z8888 CUFF-0 titijddd 88888 ggggg s 9 9 9 4 9 Q 88888 z- moooo (3 4 F- l-- r- ri bY Exhibit 5 7 Exhibit 6 8 . P . Pzzzzzzzzzzzzzzzzzzzzzzzzzzz ; I oooovooooooouoooooouOOOOOOO 0000000 Exhibit 7 Reconciliation of Fund Source to Investment Portfolio AS OF JANUARY 31,1999 Cash Balance by Fund: General Special Revenue Debt Service Capital Projects: General Capital Construction Traffic Impact Fees Public Facilities Fees Park Development Transnet Taxes Drainage Fees Special Districts Other Capital Construction Enterprise: Carlsbad Municipal Water District Sewer Fund Solid Waste Golf Course Internal Service Redevelopment Funds (1) Agency Funds Misc. Special Funds 81,798,698 11,781,723 0 13,519,755 0 Total General Ledger Balance M 286,i 12,728 Amortization of discounts and premiums Deposits in transit Outstanding checks Wire in/(out) not recorded Other Net adjustments per bank statement (1,935) 703,729 Total adjustments 701,793 285,814,519 Total Treasurer’s Investment Portfolio Total 6,879,585 3,914,852 26,672,036 6,664,436 9,918,552 5,746,093 57,591,516 671,402 Total 34,334,274 41,630,112 2,068,938 3,765,374 37,986,617 20,620,617 1,346&M 118,058,473 (1) Redevelopment Fund Balances are interspersed throughout all funds. %&T’$i#@ $$ “:,;p”;,, 3 Exhibit 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JANUARY 31,1999 CORPORATE NOTE AND COikfMERCIAL 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 CORI’ OF N A AT&T CENTRAL ILLINOIS LT DUKE ENERGY DUPONT FCC NATIONAL BANK FIRST NATIONAL BANK FIRST USA BANK GENERAL ELECTRIC CREDIT HEWLETT-PACKARD KENTUCKY UTILITIES MARGARETTEN FINL MERRILL LYNCH MORGAN GUARANTY NATIONAL RURAL UTILITIES OKLAHOMA GAS & ELECT SOUTHWESTERN BELL TOYOTA TRAVELERS GROUP INC WAL MART Moodv’s AA3 AA3 AA3 AA2 AA3 AA3 AA2 AA2 AA2 AA2 AA2 AA3 AA3 AA3 AA3 AA3 AA3 AA2 AA2 Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be Al/P1 or better by both Moody’s and S&P) (Ratings of other debt must be AA or better bv both Moodv’s and S&P) DUFF & PHELPS Al Pl SALOMON SMITH BARNEY Al Pl Investments with Subseuuent Chances in Credit Rating * Moodv’s BANC ONE CORF (3) AA3 DONNELLY Al J P MORGAN Al KAISER FOUND HSP A3 NORWEST (9) AA3 ST PAUL CO A s&p A-l- A+ AA A A+ A+ Other Debt: Other Debt: AA3lA Maturity Date Purchased 03/25/02 AA3lAA- 12/01/00 AA3/AA- 05/01/00 AA3fAA 1 l/01/01 AA3/AA 0310 l/O2 AA3iAA- 08/13/01 AA3lAA Carrying Market & m 2503,003 1,056,677 999,822 929,669 10,688,182 1,002,817 2,560,265 1,064,230 1,002,630 933,608 10,834,212 1,022,450 l 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 he sold. - Cl, d OF CARLSBAD INVESTMENT PORTFOLIO AS OF JANUARY 31,1999 PERCENTAGE WEIGIITINGS BY CORPORATE NOTE ISSUER -cHcAPITAL ASSOCIATES CORF’ NA AT&T BANC ONE CENTRAL ILLINOIS LT DONNELLY DUFFBtPHELPS UTJL DUKEPOWER DLJPONT FCC NATIONAL BANK FIRST USA BANK FIRST NATIONAL BANK GENERAL ELECTRIC CRRDIT HEWLETT-PACKARD J.P. MORGAN USER FOUD HSP KENTucKY-s h4ARGARETTENFIiiL MIBRILL LYNCH (includea CP) MORGAN GUARANTY NATIONAL RURAL UTlLKIES NORWEST OKLAHOMA GAS & RLECTRIC SALOMON SMlTH BARNEY (CP) SOUTHWESTERN BELL ST PAUL CO TOYOTA TRAVBLERS GROUPINC WAL MART Total Portfolio $285,814,519.12 * No xncm than 5% may be invested with a single issue. ID 1,843,969.81 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 2,039,195.00 4,040,400.00 1~111,090.00 I,01 1,080.00 999,720.oo 954,187.SO 2,024,340.00 1,023,210.00 7,879,330.39 1,995,580.00 3,049,940.00 10,756,869.00 1,012,500.00 z933,929.17 3,084,830.00 1,004,920.00 2,012,800.00 1,105,341.85 1,522,920.00 percent of Portfolio’ Exhibit 9 0.65% 3.87% 0.72% 0.88% 0.36% 0.40% 0.6% 0.72% 0.41% 0.34% 0.71% 1.41% 4.24% 0.35% 0.35% 0.33% 0.71% 0.36% 2.76% 0.70% 1.07% 3.76% 0.35% 1.03% 1.08% 0.35% 0.70% 0.3% 0.53% /3