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Home My WebLink About1999-09-14; City Council; 15372; Report On City Investments July 31, 1999. 1 Q: . t 1 4B# 5332 VlTG. +j@‘i DEPT. TRS CITY OF CARLSBAD -AGENDA JILL TITLE: 0 I 37 A I REPORT ON CITY INVESTMENTS AS OF July 31,1999 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 July 31, 1999 is summarized below. (1) Of the $296 million in the investment portfolio, $42 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 7/31/99. Year-to-Date l *The cash income received is adjusted for any accrued interest purchased. PAGE TWO OF AGENDA BILL NO. Is,3 3 ’ Pooled Investment Performance/Measurement May 1999 June 1999 July 1999 Average Life /Years) 1.84 1.89 1.87 Average Yield 5.59% 5.61% 5.62% Modified Duration 1.64 1.69 1.66 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 .- is 4 z 0 0 0 0 0 6 s: d 8 d 0 0 0 0 0 2 8 d 8 d 0 0 0 0 0 3 Exhibit 1 Exhibit 2 % Exhibit 3 z 0 m r 1 & 4 e( c 0 r) n 1 Ia a 7% xa W’ I # - f 2 -: -k -a -z -: 3 -0 -5 -7 -k -a 2 -: 3 -0 -Y -7 -k -a -6 -F 3 -0 -3 -7 -k -a -ii -S -5 -0 5 Exhibit 4 t . . . * , I l . . -2 . P E - k a . 5 E .f .g 8 P s 2 z 0 9 cn 9 a : 6 Exhibit 5 88 QE a a Qg -r- u-i- 2 0 8 .- P ; 2 j -8 ti 8. fi5 23 > Ls I $ s b I= 6 d ti 88 8 gg Q a- s gBQ Q c9- w- ; r 888 ggg 88 8 9 9 9 QQ Q . ^ I 888 9 0 9 gg Q w cu-7 d m- w- r 8 8 8 z Q Q - s Q Q Q G- ti ci- Exhibit 6 *s *. ‘-e 9 N. OD - NY9N.SC”e--m.m.r.k mW~Or~~d~d~MNrWWWWOWW~ mw~uJmowrpuJw rCDONNWWO)OW ~~NNNrrOrrrmWNNrNNrrrr goooooowo oooooowo Or-OOOOOONO rm00000000000 8888888880w00000000000000 9’.99999-.9 ocoooooobomoooooooooooooooo*ooooor-owoooooooooooo ~NNWNN~rm;;;W-~-N-N-N-;N-;~-N-N-N-N-~-N-N-~-~-N*~-N-~-N-N-W-N-~-W-W-~-~-N-~-~-~-N-~-~-~-~-N-N-N-N-~-~- W a s E W O.-.-.-.-rrrrrrrrrNNNNNNNNNNNNNNNNNNNNNV,C, ~-W-;N-;;;;;N-;;N-;;N-;;; oi,-i,-i;.=.=;;Oi; ; %-- N- *- kc- .F- ; ; +-- ; ; ti .-- .-- N‘;; 6; .-- .-- 1 auuaaaaaaaaaa ILYYYYLILYYLLYL qqsss it!?? 666 39e $fg-$f ; tini N- .-- ; ; ; ; ; .-- .-- ; ; ; N- ~~8 ’ 0’ . ui a$ c&J- g- ,- 9 *. m $j*o ? : f f c?*z ’ N 8 Exhibit 7 Fund Equity in Pooled Investments AS OF JULY 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 87,028,195 11540,652 0 13,440,893 0 Total General Ledger Balance * 297,049,885 Amortization of discounts and premiums Deposits in transit Outstanding checks Wire in/(out) not recorded Other Net adjustments per bank statement Total adjustments (584,752) Total Treasurer’s Investment Portfolio 298,46&l 13 Total Total 42540,782 23,036.409 496,994 4,902,144 3,582,497 30552,532 7,203,076 12,226,227 6,243,114 52,203,070 2,053,270 118,965,939 36,911,455 44,621,870 2,328,303 2,966,566 46,594 (631,345) (1) Redevelopment Fund Balances are interspersed throughout all funds. ** Figures based on best estimate at the time report run on 08/10/99. - CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF JULY 31,1999 CORPORATE NOTE AND COMMERCL4L PAPER RATINGS Corporate Note Investments Meeting the Current Investment Policy: (Ratings must be AA or better by both Moody’s and S&P) AMERITECH CAP ASSOC CORP OF N A CENT&U ILLINOIS LT BAYER CORP BAYER LND BANK CITICORP CITIGROUP DUPONT FCC NATIONAL BANK FIRST NATIONAL BANK FIRST USA BANK GENERAL ELECTRIC CAPITAL GENERAL ELECTRIC CREDIT HEWLETT-PACKARD KENTUCKY UTILITIES MARGARETlEN FINL MERRILL LYNCH MORGAN GUARANTY NATIONAL RURAL UTILITIES NORTHERN ILL GAS OKLAHOMA GAS & ELECT REED ELSEVIER CAPITAL SOUTHWESTERN BELL TOYOTA TRAVELERS GROUP INC WAL MART Moodv’s s&p AA3 AA+ AA3 AA- AA2 AA- AA2 AA AAA AAA AA3 AA- AA2 AA- AA3 AA- AA2 AA- AA2 AA- AA2 AA- AAA AAA AAA AAA AA2 AA+ AA2 AA AA3 AA- AA3 AA- AA3 AA+ AA3 AA AA1 AA AA3 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 both Moody’s and S&P) (Ratings of other debt must be AA or better bv Moodv’s or S&P) Investments with Subsequent Changes in Credit Rating l Moody’s AT&T Al BANC ONE CORP AA3 DONNELLY Al J P MORGAN Al KAISER FOUND HSP A3 NORWEST AA3 ST PAUL CO Al sgp AA- A+ A+ AA A A+ A+ Latest Maturitv Date 06/01/01 03f25iO2 12/01/00 05/01/00 1 l/01/01 03/01/02 08/13/01 Purchased AA3lAA- AA3lAA- AA3/AA- AA3lAA AA3iAA AA3lAA- AA3iAA Exhibit 8 Carrying Market a m 2,024,56 1 2,010,600 2,501,843 2,512,785 1,041,220 1,035,100 999,893 999,530 919,729 915,233 10,669,657 10,685,986 1,002,261 999,970 * 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. - CI’I - OF CARLSBAD INVESTMENT PORTFOLIO AS OF JULY 341999 PERCENTAGE H?EIGHTmGS BY CORPORATE NOTE ISSUER AMERlTBcHcAPlTAL ASSOCIATES CORP NA AT&T BANC ONE BAYER BAYRR LND BK CBNTRAL ILLINOIS LT CITICORP ClTIGROUP DONNELLY DUPONT FCC NATIONAL BANK FIRST USA BANK FIRST NATIONAL BANK GBNERALRLFcTRIccRRDIT HEWLETT-PACKARD J.P. MORGAN KAISRRFOUDHSP KBNTUCKY UTlLlTW MARGARBTTBNFlNL MERRKL LYNCH (in&da CP) MORGAN GUARANTY NATIONAL RURAL UTlLlTES NORTHERN ILL GAS NORWEST OKLAHOMAGAS & ELBCTRIC RRBD RLSERVIER CAFWAL S0UTHWESTERNBlX.L ST PAUL CO TOYOTA TluvRLBRs GROUPING WALMART Total Portfolio $2%,465,113.39 l No mom than 5% may be invested with a single issue. &westment Cost 1,843,969.81 7,591,141.00 2,044,620.00 2,504,125.00 1,291,375.00, 515,512.50 1,014,650.00 1,006,100.00 2,013,580.00 1,145,610.00 1,168,073.48 975,690.OO 5039,195.oo 4,040,400.00 14,128,250.00 1,011,080.00 999,720.OO 954,187.50 2,024,340.00 1,023,210.00 8,915,960.39 1,995,580.00 3,727,967.96 715,349.40 10,756,869.00 1,012,500.00 2,020,720.00 3,084,830.00 1,004,920.00 2,012,800.00 1,105,341.85 1,522,920.00 Exhibit 9 percent of Portfolioa 0.62% 2.56% 0.69% 0.84% 0.44% 0.17% 0.34% 0.34% 0.68% 0.3% 0.3% 0.33% 0.69% 1.36% 4.77% 0.34% 0.34% 0.32% 0.68% 0.35% 3.01% 0.67% 1.26% 0.24% 3.63% 0.34% 0.68% 1.04% 0.34% 0.68% 0.37% 0.51% /3