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Home My WebLink About2002-03-26; City Council; 16698; Report on City Investments as of 2/28/02&\\ CITY OF CARLSBAD -AGENDA BILL A/ LB# /! m: ITG. <,b$hq REPORT ON CITY INVESTMENTS AS OF FEBRUARY 28, 2002 IEPT. TRS CITY MGRsp CITY ATTY: 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, 2002 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 3/05/02. 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 26,797,806 Special Revenue 65,273,815 141,609 Reconciling Adjustments 10,359,557 Agency Funds 13,260,273 Internal Service 110,500,439 Enterprise 142,727,054 Capital Projects 2,262,763 Debt Service Total Treasurer’s Investment Portfolio at Amortized Cost 371,323,316 Fund equity balances are restricted for various purposes as listed above. See Exhibit 7 for a more detailed breakdown. pK€ 7wo Ale /b,bW ’The cash income received is adjusted for any accrued interest purchased. Pooled Investment Performancel~ Average Life (Years) Modified Duration Average Yield December 2001 1.31 5.29% 1.47 January 2002 1.30 5.08% 1.45 February 2002 1.40 5.11% 1.56 All pooled investments have been made in accordance with the City’s Investment Policy adopted January 2, 1985 and last revised January 8, 2002. 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 pottfolio 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. EXHIBITS FOR POOLED INVESTMENTS: 1. 2. 3. 4. 5. 6. 7. 8. 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 Third Quarter Transactions Detailed Investment Report Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer EXHIBIT 1 00 88 m 2 m 2 (D R r ? r Lo 0 '4 Lo 2 s ui r r Lo 2 00 22 m 2 ul ul -! m 2 r R N u, r Lo 2 0 0 0 0 0 r m m m % N m b- m m m ul s a 0 3 EXHIBIT 2 s x 0 0 s x 0 s 9 vi * s 2 N s x 00 a 3 0 m 3 vi VI x W m 0 vi vi W W 01 w. 0 4 z c1 * t-" s t- 2 x N 3 3 VIS *d *" r-7 NW N x yt W N 0 0 0 0 0 h 3 v 0 0 VI P % m 2 *" 3 0 2 3 3 -t t-* s U 0 .. f I 4 EXHIBIT 3 c 4 r [- “NN NO 00 EXHIBIT 4 0 6 EXHIBIT 5 EXHIBIT 6 > z 4 zzzzzzzzzzzzzzzzzzzz 00000000000000000000 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF FEBRUARY 28,2002 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 65,273,815 26,797,806 2,262,763 13,824,098 5,818,818 32,809,316 8,200,478 7,507,002 7,832,466 55,551,448 1 1,183,427 142,727,054 50,430,007 54,333,049 3,670,104 2,067,279 110,500,439 13,260,273 0 10,359,557 0 371 ,I a? ,707 141,609 371,323,316 (1) 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. ACCNed Interest, amortized premium or discounts and outstanding checks and deposits in transit are not included in the Treasureh summary. Differences between the time journal entries are posted and the time this report is produced may also be a component of the adjustment. * Figures based on best estimate at the time report run on 3/05/02 CITY OF CARLSBAD INVESTMENT PORTFOLIO EXHIBIT8 AS OF FEBRUARY 28,2002 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 S&P) MQcsw.sW ABN AMRO BANK ALLSTATE FINANCIAL ASSOCIATES CORP BAYER CORP ClTlGROUP COMMERCIAL CREDIT CO CREDIT SUlS DEAN WllTER DISCV DUPONT JERSEY CENT P&L MORGAN STANLEY DEAN WllTER MERRILL LYNCH NORTHERN ILL GAS OHIO BELL TEL PITNEY BOWES INC SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL ~~ AA3 AA2 AA- AA+ A41 AA. AA2 AA AA1 AA- AA1 AA- AA3 AA- AA3 AA- AA3 AAA AA- AAA AA3 AA3 AA- AA1 AA- AA2 AA AA3 AA- AA3 AA- AA AA3 AA3 AA- AA- Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be AlIPI or better by both Moody's and S&P) (Ratings of other debt must be AA or better by Moody's or S&P) NONE Investments with Subsequent Changes in Credit Rating MQcsw.sW ~~ Yak Carrying Market Yak Latest BANC ONE CORP AA3 A 03/25/02 AA31AA- 999,971 1,002,590 BAYER CORP A2 AA- 10/01/02 AA2/AA 1.256.658 1.277,288 CAMPBELL SOUP CO HEWLETT-PACKARD AA3 A 10/01/03 AA31AA- 1,945,721 2,043,100 A2 AA- 06/15/05 AA3/AA- 7,235,547 7,382.690 NATIONAL RURAL UTILITIES A1 A+ 01/15/03 AA3IAA 1,672.892 1,682,053 NORWEST AA2 A+ 03/01/02 AA3IAA- 1,600,000 1,600,000 WACHOVIA CORP A1 A 07/15/05 AA3/AA- 4,017,881 4,295,420 *The city's Investment Policy allows the Cly Treasurer to determine the course of action that would wrrect 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 POItfOliO until maturity unless events Indicate they should be sold. /3 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF FEBRUARY 28,2002 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 DISCV DUPONT HEWLETT-PACKARD CO JERSEY CENT PBL 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 Portfollo * No more than 5% may be invested wim a single issue. Investment Cost 4,228,884.98 8,020,253.18 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 Portfollo" 1.14% 2.16% 2.68% 0.27% 0.35% 0.50% 2.25% 2.01% 0.84% 0.79% .0.31% 1.97% 0.80% 2.50% 4.25% 1.60% 0.19% 0.45% 0.52% 0.52% 1.09% 0.30% 0.85% 0.30% 1 .08% 5371,582,31968 EXHIBIT 9