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Home My WebLink About2002-06-25; City Council; 16802; Report on City Investments as of 5/31/02CITY OF CARLSBAD -AGENDA BILL LB# 16,802 IEPT. TRS AS OF ITG. TITLE: 6-25-02 REPORT ON CITY INVESTMENTS MAY 31, 2002 CITY MGRas? 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 May 31, 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 5/31/02. 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 26,097,827 Special Revenue 77,291,134 383,972 Reconciling Adjustments 10,809,659 Agency Funds 13,548,812 Internal Service 112,936,329 Enterprise 142,214,788 Capital Projects 2,731,979 Debt Service Total Treasurer’s Investment Portfolio at Amortized Cost 386,014,500 Fund equity balances are restricted for various purposes as listed above. See Exhibit 7 for a more detailed breakdown. PAGE TWO OF AGENDA BILL NO. *02 "The cash income received is adjusted for any accrued interest purchased. 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 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. 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 Fourth Quarter Transactions Detailed Investment Report Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer EXHIBIT 1 3 EXHIBIT 2 s x s x s x s 8 0 s m' N s 2 N a: 9 0 s z 0 9 s ". 0 0 0 0 0 0 0 Q VI W" t- 2 m v) t- 3 :- d m m €4 r- t- 2 VI :: x VI m 0 0 0 0 m W 2 zi W r" €4 N 0 N d W N 0- x VI N 3 d 0 0 0 0 W m :- 2 0 N N W -" a VI t- r- 2 VI :: x VI m e 3 L 3LL q U i i EXHIBIT 4 0 E 0 h r) r) m 0 I 0 EXHIBIT 5 ~m00ln0000 8g8 8 1311 lcoomoooo EXHIBIT 6 r""" zzzzzzzzzzzzzzzzzzzzzzzz 00000000000000u000000uu0 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF MAY 31,2002 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 Infrastructure Replacement Other Capital Construction Total Enterprise: Carlsbad Municipal Water District Sewer Fund Solid Waste Golf Course 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 77,291,134 26,097,827 2,731,979 12,935,834 6,093,994 33,283,132 8,475,498 6,624,435 7,842,135 57,132,206 8,245.875 1,581,679 142,214,788 50,420,757 56,782.956 3,772,660 1,959,957 112,936,329 13,548,812 0 10,809,659 0 385,630,527 383.973 386,014,500 (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. Accrued Interest. amortized premium or discounts and outstanding checks and deposits in transit are not included in the Treasurer's summary. Differences between the time journal entries are posted and the time this report is produced may also be a component of Ule adjustment. " Figures based on best estimate at the time report run on 6/06/02 CITY OF CARLSBAD INVESTMENT PORTFOLIO EXHIBIT* AS OF MAY 31,2002 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) blQDsus&e ABN AMRO BANK AA3 AA- ALLSTATE FINANCIAL ASSOCIATES CORP AA2 AA1 AA+ BAYER CORP AA- ClTlGROUP AA2 AA1 AA- AA COMMERCIAL CREDIT CO CREDIT SUlS GENERAL ELECTRIC DEAN WllTER DlSCV JERSEY CENT P&L MERRILL LYNCH MORGAN STANLEY DEAN WllTER NORTHERN ILL GAS OHIO BELLTEL PITNEY BOWES INC SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL AA1 AA3 AA3 AAA AAA AA3 AA3 AA2 AA1 AA3 AA3 AA3 AA- AA- AAA AA- AAA AA- AA- AA AA- AA AA- AA- SOUTHWESTERN BELL AA2 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 S&P) NONE Investments with Subsequent Changes in Credit Rating * Latest Carrying Market rdQ.Qws= " Yah Yah BAYER CORP A2 AA- 10/01/02 AA2IAA 1,253,605 1,265,938 CAMPBELL SOUP CO AA3 A 10/01/03 AA3lAA- 1,954,291 2,039,520 HEWLETT-PACKARD A2 AA- 06/15/05 AA3lAA- 7,217,642 7,302,120 NATIONAL RURAL UTILITIES A1 A+ 06/15/02 AA3IAA 1,000,566 1,001,040 WACHOVIA CORP AI A 07/15/05 AA3IAA- 4,016,790 4,295,160 *The Cily's Investment Policy allows the CHy Treasurer to determine the course of action that would correct exc8ptions to the policy. All of these investments are paying interest at the required times. The principal of all investments are considered sewre. It is the intent of the City Treasurer to hold these assets in the portfolio until maturb unless events indicate they should be sold. CITY OF CARLSBAD INVESTMENT PORTFOLIO EXHIBIT 9 AS OF MAY 31,2002 PERCENTAGE WElGHTlNGS BY CORPORATE NOTE ISSUER ABN AMRO BANK ALLSTATE FINANCIAL ASSOCIATES CORP NA BAYER CAMPBELL SOUP CO ClTlGROUP COMM CREDIT CREDIT SUlS DEAN WITTER DISCV GENERAL ELECTRIC CAP HEWLETT-PACKARD CO JERSEY CENT P&L MERRILL LYNCH MORGAN STANLEY DEAN WITTER NATIONAL RURAL UTILITIES NORTHERN ILL GAS OHIO BELL TEL PITNEY BOWES INC SBC COMMUNICATIONS SOUTHERN NlEW ENGLAND TEL SOUTHWESTERN BELL WACHOVIA CORP Total Portfolio No more than 5% may be invested with a single issue. Investment Cost 4,228,884.98 8.020.253.19 9.953.528.13 1,291,375.00 1,868,682.02 8,372,495.00 7,474,695.94 3,109,140.66 2,950,553.97 7,948,535.60 7,301,835.93 2,974,560.00 9,272,283.27 15,789,131.03 1,053,020.00 715,349.40 1,947,308.26 1,919,298.74 4,058,275.56 1,113,832.90 3.151.155.18 4,023,404.94 Percent of Portfolio' 1.10% 2.08% 2.58% 0.33% 0.48% 2.17% 1.94% 0.81% 0.76% 2.06% 1.89% 0.77% 2.40% 4.09% 0.27% 0.19% 0.50% 0.50% 1.05% 0.29% 0.82% 1.04% $385,842,874.53 /3