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Home My WebLink About1999-04-06; City Council; 15114; Report On City Investments February 28, 199937 0 CITY OF CARLSBAD -AGENDA BILL I 4~ &&!!fm TITLE: MTG. 4/06/99 REPORT ON CITY INVESTMENTS DEPT. TRS AS OF FEBRUARY 28,1999 CITY MGR: B 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. The City’s pooled investment portfolio as of the month ended February 28, 1999 is summarized below. Pooled Investment Portfolio (Cash and Securities) (1) Of the $284 million in the investment portfolio, $37 million are General Fund dollars. The balance of the funds are restricted for various purposes. See Exhibit 7 for a breakdown of fund equities in the investment pool. (2) The cost of investments adjusted for amortized premiums and discounts. (3) The amount at which the investments could be sold. Source of market values is Union Bank of California’s custodial report as of 2/28/99. Note: A change in the reporting of investments was made in February. A LAIF account used solely for bond proceeds is no longer reported as part of the pooled investment portfolio. This LAIF account is reported as part of the investment portfolio for bond proceeds. Had this accounting change not occurred in February, total investments in the pooled investment portfolio would have been $2.2 million higher. A report of the investment portfolio for bond proceeds will next be made for the quarter ending March 31, 1999. *The cash income received is adjusted for any accrued interest purchased. PAGE TWO OF AGENDA BILL NO. Is., 1 ! q Pooled Investment Performance/Measurement \ Average Life [Years) Average Yield Modified Duration December 1998 1.37 5.71% 1.07 January 1999 1.32 5.64% 1.03 February 1999 1.41 5.62% 1.24 All pooled investments have been made in accordance with the City’s Investment Policy adopted January 2, 1985 and last revised February 16, 1999. 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. 2. 3. 4. 5. 6. 7. 8. 9. Investment Portfolio Breakdown By Book Value, Market Value, Cash Income, and Average Yield Investment Portfolio Breakdown Of Maturities Yield Comparison Graph Cumulative Cash Income Graph First Quarter Transactions Detailed Investment Report Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer EXHIBIT 1 s z 3 z 0 0 0 0 0 8 8 d 8 d 0 0 0 0 0 2 3 EXHIBIT 2 O 0 01 4 9 a n s 8 n z c; 0 EXHIBIT 3 .d m ? * d bc s2 I x a Ia WFrr 0 I Ym 2 7% xa WJ t I - -3 -0 -5 -k -a -5 -7 3 -0 -Y -7 -2 -a 2 -2 3 -0 3 -7 -k -a -g -G 3 -0 5 EXHIBIT 4 . 8 * 8 l I I I I : * . . \ \ \ \ ii a * ml 0 a0 co w cu 0 r F F EXHIBIT 5 drssaes 5:8888 gggs ’ $M’ O)ON 8 NT--V0 NOVIN O-IOI- ~UttiUid uidtiui ” 9 rc *tDtn 88888 8 8P8 ddddd ggsg s EiS?s. 88888 0 8 $ o- g- g g 9 9 9 888 s 9 “. 80 9 9 OOb0 I 0 gj.f c v r ; m‘ N- m- w- b- m- d N‘ m- 0 Li ssa$<aaaa f 54, 8 zz2zzltllQgt4 v)ua a 8 9 & z 8 &B 9 e -dZ 4 ZdLO 5 WDdlrU &l~~~~%&o 9 z~&t5tBE~pp~~ na~kzz5vmkkmu pg LLLILU. azaazzzzzaaza ~V~~VVVVV~~V~ 5iziziziz 0zggl-J 88Z88868 o”‘~~-&~-s$-+~~ 88888 i;jk--r! ;;sOQ-- srsp$ff&q aaaazi KQQe!!Q rrr YFv-...rr omooaammoaalaao s?$i$Z$!$$$$$$$$$ g 838X8 OOr-rr~rrc-4c4NN aaaaaaaaaaaaa Z g=aaa cUcU0g 0000000000000 x ---a e E60 8 Q)o2oa~)o)o) % moomQm8%8g888 s ~ai3~~~aas~z5sa ~~~5~~~~5.W~FaX iii 0000000000000 p: Z;sZ~;s z p---IJ-lm & 3 IL ;apj ST;;;;;;;; L a 3 E E 2 ggg aaa EXHIBIT 6 t f~EH~~~IB~~E%~%3%$~$~~8~~~=~~~28~ k rrrrrrr 3 r.~r-+mtDmmeo+uBm ; ; ; ; ; ; ; ; ; ; ; ; ; ;;;;; ; ;;; ; ;; .--.--; ;; ; f!o” EXHIBIT 7 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 Fund Equity in Pooled Investments AS OF FEBRUARY 28.1999 Internal Service Redevelopment Funds (1) Agency Funds Misc. Special Funds Total General Ledger Balance n 282,662,023 Amortization of discounts and premiums Deposits in transit Outstanding checks Wire in/(out) not recorded Other Net adjustments per bank statement Total adjustments 2,263,372 Total Treasurer’s Investment Portfolio 204,926.395 Total 6,756,784 3,205,839 26,92&l 14 6,695,006 9,757,059 5,772,442 56,956,463 723,956 Total 34,437,755 41,394,321 2677,542 3,779,739 25,029 2,238.343 37,164,510 20,738,709 1 ,016,675 116,795,664 81,689,357 11,364,965 0 13J92.145 0 (1) Redevelopment Fund Balances are interspersed throughout all funds. CIl’Y OF CARLSBAD INVESTMENT PORTFOLIO AS OF FEBRUARY 28,1999 CORPORATE NOTE AND COMMERCLQL PAPER RATINGS Corporate Note Investments Meeting the Current Investment Policy: (Ratings must be AA or better by both Moodv’s and S&P) AMERITECH CAP ASSOC CORP OF N A AT&T CENTRAL ILLINOIS LT BAYER CORP BAYER LND BANK CITICORP DUKE ENERGY DUPONT FCC NATIONAL BANK FIRST NATIONAL BANK FIRST USA BANK GENERAL ELECTRIC CREDIT HEWLETT-PACKARD KENTUCKY UTILITIES MARGARE-ITENFINL MERRILL LYNCH MORGAN GUARANTY NATIONAL RURAL UTILITIES NORTHERN ILL GAS OKLAHOMA GAS & ELECT SOUTHWESTERN BELL TOYOTA TRAVELERS GROUP INC WAL MART s&p Moodv’s AA3 AA+ AA3 AA- AA3 AA- AA2 AA- AA2 AA AAA AAA AA3 AA- AA3 AA- AA3 AA- AA2 AA- AA2 AA- AA2 AA- AAA AAA AA2 AA+ AA2 AA AA3 AA- AA3 AA- AA3 AA+ AA3 AA AA1 AA AA3 AA- AA3 AA AAA AA1 AA2 AA- AA2 AA Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be Al/P1 or better by botb Moody’s and S&P) (Ratings ofother debt must be AA or better by both Moodv’s and S&P) DUFF & PHELPS Al PI Other Debt: SALOMON SMITH BARNEY Al PI Other &bt: AA3JA Investments Made Under a Previous Investment Policy (Ratings must be A or better) Prior to 2/13/96 Moody’s SBrp Investments with Subsequent Chnnees in Credit Rating l Maturity Moody’s s&p DPte Purchased BANC ONE CORP (3) AA3 Ai 03/25/02 AA3lAA- DONNELLY Al A+ 12/01/00 AA3/AA- J P MORGAN Al AA 05/01/00 AA3lAA KAISER FOUND HSP A3 A I l/01/01 AA3iAA NORWEST (9) AA3 A+ 0310 1102 AA3/AA- ST PAUL CO A A+ 08/13/01 AA3lAA Carrying m Market B 2,502,810 2,540,440 1,054,101 1,054,790 999,834 1 ,oo I ,340 928,013 918,470 10,685,094 10,788,704 1,002,724 1,009,820 EXHIBIT 8 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 be sold. CIT\ ,r’ CARLSBAD INVESTMENT PORTFOLIO AS OF FEBRUARY 28,1999 PERCENTAGE KWGHT’GS BY CORPORATE NOTE ISSUER AMERlTBcHcAPlTAL ASSOClATBS CORP NA AT&T BANC ONB BAYER BAYER LND BK CBNTRAL lLLlNOlS LT ClTlcoRP DONNELLY DUFFLPHELPS UTIL DUKEPOWER DUPONT FCC NATIONAL BANK FIRSTUSA BANK FIRST NATIONAL BANK GBNBRAL. BLBcTRlccRRDlT HEWLBlT-PACKARD J.P. MORGAN KAlSBR FOUD HSP KENTucKYuTnlTlBs MARGARBTTBNFINL MBRRlLL LYNCH (includc?s CP) MORGAN GUARANTY NATIONAL RURAL UTEJTIES NORTHERN ILLGAS NORWBST OKLABOh4AGAS&BLBCTRlC SALOMON Sh4l’l-H BARNEY (CP) SOUTHWESTERNBELL ST PAUL CO TOYOTA TRAVBLBRS GROUF’INC WALMART Inveshncnt Cost percent of Portfolio* 1,843,%9.81 0.65% 9,590,711.00 3.37% 2.044,620.00 0.72% 2.504,125.00 0.88% 1,291,375.00 0.45% 515,512.so 0.18% 1,014,650.00 0.36% 1,006,100.00 0.35% 1,145,610.00 0.40% 1.958,189.00 0.69% 2,048,020.00 0.72% 1.168,073.48 0.41% 975,690.OO 0.34% 2,039,195.00 0.72% 4,040,400.00 1.42% 12.111,090.00 4.25% 1,011,080.00 0.35% 999.720.04 0.35% 954J87.50 0.33% 2,024,340.00 0.71% 1.023,21o.Oa 0.36% 8,915,%0.39 3.13% 1,995,580.00 0.70% 3,727,%7.96 1.31% 715,349.40 0.25% 10,756,869.00 3.78% 1,012,500.00 0.36% 2,933,929.17 1.03% 3,084,830.00 1.08% 1,004,920.00 0.35% 2,012,800.00 0.71% l,lOS,341.85 0.39% 1.522.92o.Gu 0.53% EXHIBIT 9 Total Portfolio $284.925,394.88 /3