HomeMy WebLinkAbout2002-02-05; City Council; 16535; Report on City Investments as of 12/31/01I
CITY OF CARLSBAD -AGENDA BILL & 1
B# 1L!535
CITY AS OF DECEMBER 31,2001 ITG. d - 5- 03
u: REPORT ON CITY INVESTMENTS
EPT. TRS CITY MGR
~~
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 December 31, 2001 is summarized below.
(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 12/31/01.
The equity portion of the various funds at the amortized value of the total portfolio is
summarized below:
Fund Equity in Pooled Investments
Cash Balance by Fund:
General
13,380,494 Internal Service
11 1,376,747 Enterprise
142,649,373 Capital Projects
2,106,031 Debt Service
26,949,888 Special Revenue
63,461,918
(1,963,440) Reconciling Adjustments
8,676,800 Agency Funds
Total Treasurer’s Investment Portfolio at Amortized Cost 366,637,811
Fund equity balances are restricted for various purposes as listed above. See Exhibit 7
for a more detailed breakdown.
"The cash income received is adjusted for any accrued interest purchased.
Pooled Investment PerformancelMeasurement
Average Life
(Years) Modified Duration Average Yield
October 2001
1.31 5.29% 1.47 December 2001
1.24 5.33% 1.38 November 2001
1.15 5.44% 1.27
All pooled investments have been made in accordance with the City's Investment Policy adopted
January 2, 1985 and last revised January 9, 2001. 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, a change in the credit rating subsequent to a
purchase, or a temporary reduction in total portfolio assets. 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, 2001 is as follows:
P
Investment Portfolio for Bond Proceeds
All investments of bond proceeds have been made in accordance with the City's Investment Policy
and the trust indenture for each issue.
EXHIBITS FOR POOLED INVESTMENTS:
1.
2.
3.
4.
5.
6.
7.
a.
9.
Investment Portfolio Breakdown By Amortized Cost, Market Value, Cash Income, and Average Yield
Investment Portfolio Breakdown Of Maturities
Yield Comparison Graph
Cumulative Cash Income Graph
Second Quarter Transactions
Detailed Investment Report
Fund Equity in Pooled Investments
Corporate Note and Commercial Paper Ratings
Percentage Weightings By Corporate Note Issuer
EXHIBIT FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY:
10. Detailed Investment Report - Quarterly Report
3
EXHIBIT 1
5
s
0
0
0
0
0
n 0
0 x
0 8
0
0
0
0
0
2
0 x
8 0
0
0
0
0
0
a 0
K 0
r (9 r
LD Lo %
h (0
W
0 0 2 N
W r- W
0 0
h N
Lo.
2 P m 3 0
Y
EXHIBIT 2
s 8 s 2 N
s 8 s
2 8
0 0 VI t- x m m
0 0
VI? s
s :" :- t-
W m 64
d 0 3
3 m
N N 64
0 0 0 0 0 0 0
s
0. m W
0 0 VI t- x m m
0 0 VI"
!=i
m m 2- t- W
5
z 0 v3
0 u
a
?
Y
I EXHIBIT 3
6
EXHIBIT 4
0 cv
5 . .
d r 0 r 00 0
7
EXHIBIT 5
EXHIBIT 6
oooooooooooooooogoooo 0000000000000000 0000 0 x 0
0.
In (D 0
EXHIBIT 7
Fund Equity in Pooled Investments
AS OF DECEMBER 31,2001
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
Total
Total
Internal Service
Redevelopment Funds (1)
Agency Funds
Misc. Special Funds
Total General Ledger Balance **
Reconciling Adjustments (2)
Total Treasurer's Investment Portfolio at Amortized Cost
63,461,918
26,949,888
2,106,031
14,012,217
5,676,599
32,724,443
8,347.058
7,200,352
7,888,429
54,472,959
12,325,316
142,649,373
49,750,105
55,976,697
3,572,266
2,077,679
11 1,376,747
13,380,494
0
8,676,800
0
368,601,252
(1,963,440)
366,637,811
(I) Redevelopment Fund Balances are interspersed throughout all funds.
(2) The Reconciling Adjustments consist of differences between the General Ledger which is prepared
on an accrual basis and the Treasurer's report which is prepared on the cash basis. Accrued Interest,
amortized premium or discounts and outstanding checks and deposits in transit are not included in the
Treasuret's summary. Differences between the time journal entries are posted and the time this
repolt is produced may also be a component of the adjustment.
** Figures based on best estimate at the time report run on 1/08/02
CITY OF CARLSBAD INVESTMENT PORTFOLIO EXHIBIT*
AS OF DECEMBER 31,2001
CORPORATE NOTE AND COMMERCIAL PAPER RATINGS
Corporate Note Investments Meeting the Current investment Policy:
(Ratings must be AA or better by both Moody's and SBP)
MQQWaW
ABN AMRO BANK
ALLSTATE FINANCIAL
ASSOCIATES GORP
ClTiGROUP BAYER GORP
COMMERCIAL CREDIT GO
CREDIT SUE DEAN WITTER DiSCV
DUPONT
HNVLETT-PACKARD
JERSEY CENT PBL
MERRILL LYNCH
MORGAN STANLEY DEAN WITTER
NATIONAL RURAL UTILITIES
NORTHERN ILL GAS
OHIO BELL TEL
SBC COMMUNICATIONS
PITNEY BOWES INC
SOUTHERN NEW ENGLAND TEL
SOUTHWESTERN BELL
AA3
AA2
AA3
AA2 AA2
AA3
AA3
AA3
AA3
AA2
AAA
AA3
AA3
AA3
AA1
AA2
AA3
AA3
AA3
AA2
AA+
AA-
AA-
AA
AA- AA- AA- AA-
AA-
AA-
AAA
AA-
AA-
AA
AA-
AA
AA-
AA
AA-
AA-
Commercial Paper Investments Meeting the Current investment Policy:
(Ratings must be AIIPI or better by both Moody's and SBP)
(Ratings of other debt must be AA or better by Moody's or SBP)
NONE
Investments with Subsequent Changes in Credit Rating
Latest Carrying Market
MQQWaW bmtm&h- Yah Yak
BANG ONE GORP AA3 A 03/25/02 AA3/AA- 999,900 1,007,610
CAMPBELL SOUP GO AA3 A 10/01/03 AA3/AA- 1,940,007 2,039.560
NORWEST AA2 A+ 03/01/02 AA3lAA- 1,602,832 1,614,704
WACHOViA GORP A1 A+ 07/15/05 AA3IAA- 4,018,574 4,274,620
*me cily's Investment Policy allows the City Treasurer to determine the course of action that would correct exC8PtiOnS
to the poky. AII 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 porlfolio until maturity Unless events
indicate they should be sold.
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF DECEMBER 31,2001
PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER
ABN AMRO BANK
ALLSTATE FINANCIAL
ASSOCIATES CORP NA
BANC ONE
BAYER
CAMPBELL SOUP CO
ClTlGROUP
COMM CREDIT
CREDIT SUlS
DEAN WITTER DlSCV
DUPONT
HEWLETT-PACKARD CO
JERSEYCENTPBL
MERRILL LYNCH
MORGAN STANLEY DEAN WITTER
NATIONAL RURAL UTILITIES
NORTHERN ILL GAS
NORWEST
OHIO BELL TEL
PITNEY BOWES INC
SBC COMMUNICATIONS
SOUTHERN NlEW ENGLAND TEL
SOUTHWESTERN BELL
TRAVELERS GROUP INC / ClTlGROUP
WACHOVIA CORP
Total Portfolio
* No more man 5% may be invested with a single ikue
Investment Cost
4,228,884.98
6,024,601.35
9,953,528.13
997,870.00
1,291,375.00
1,868,682.02
8,372,495.00
7,474,695.94
3,109,140.66
2,950,553.97
1,168,073.48
7,301,835.93
2,974,560.00
9,272,283.27
15,789,131.03
5,939.453.76
715,349.40
1,678,688.00
1,947,308.26
1,919,298.74
4,058,275.56
1,113,832.90
3,151.155.18
1,105,341.85
4,023,404.94
Percent of PomOllo'
1.15%
1.64%
2.71%
0.27%
0.35%
0.51%
2.28%
2.04%
0.85%
0.80%
0.32%
1.99%
0.81%
2.53%
4.30%
1.62%
0.19%
0.46%
0.53%
0.52%
1.11%
0.30%
I 0.86%
0.30%
1.10%
$366,876,406.64
EXHIBIT 9