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Home My WebLink About2002-08-06; City Council; 16843; Report On City Investments As Of June 30, 2002CITY OF CARLSBAD -AGENDA BILL 4B# 16*843 m: JITG. 8-6-02 REPORT ON CITY INVESTMENTS AS OF JUNE 30, 2002 IEPT. TRS ICITYMGR: 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 June 30, 2002 is summarized below. Pooled Investment Portfolio (Cash and Securities) Current Month Prior Month Par Value 389,451,477 Cost of Investments 385,409,336 389,033,854 392,971,832 397,926,961 Market Value (2) 386,014,500 389,632,854 Amortized Cost (1) 385.842,875 (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 6/30/02. The equity portion of the various funds at the amortized value of the total oortfolio is summarized below: Fund Eauitv in Pooled Investments Cash Balance by Fund: General 10,796,031 Agency Funds 13,640,715 Internal Service 113,978,681 Enterprise 144,041,923 Capital Projects 2,757,531 Debt Service 25,772,873 Special Revenue 78,151,780 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. 16,843 Pooled Investment Interest Income Month FYTD Current Month FYTD income Prior Current Month Cash Income Fiscal Year-to-Date * 1,145,883 19,210,122 20,356,005 *The cash income received is adjusted for any accrued interest purchased. Pooled Investment PerformancelMeasurement Average Life (Years) Modified Duration Average Yield I I I April 2002 1.39 5.03% 1.55 May 2002 1.06 4.85% 1.17 June 2002 1.29 4.95% 1.43 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. In summary, the City's investments of bond proceeds held separately as of the quarter ended June 30, 2002 is as follows: Investment Portfolio for Bond Proceeds Current Quarter Prior Quarter Par Value 8,695,136 8,604,021 cost 8,695,136 8,604,021 All investments of bond proceeds have been made in accordance with the City's Investment Policy and the trust indenture for each issue. Page 3 of 3 of AB #16,843 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 FOR INVESTMENTS OF BOND PROCEEDS HELD SEPARATELY IO. Detailed Investment Report - Quarterly Report 3 EXHIBIT 1 L m EXHIBIT 2 4 U Lr 0 0 k 000 3 8 !I 000 5- EXHIBIT 3 0 c 0 r) A 1 P4 F E I IA ch ch i EXHIBIT 4 7 EXHIBIT 5 N P 0 22 00 EXHIBIT 6 g 2 3 (I) """- 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF JUNE 30,2002 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 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 78,151.780 25,772,873 2,757,531 12,737,478 6,176,279 33.482,442 8,623,587 7,646,192 7,866,080 57,805.172 8,195,549 1,509,144 144,041,923 51,237,394 56,903,211 3,873,604 1,964,472 11 3,978.681 13,640,715 0 10,796,031 0 389,139,534 493,320 389,632,854 (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 the adjustment. ** Figures based on best estimate at the time report run on 7/05/02 /3 CITY OF CARLSBAD INVESTMENT PORTFOLIO EXHIBIT8 AS OF JUNE 30,2002 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) fdQQwsslbe ABN AMRO BANK ALLSTATE FINANCIAL AA3 AA2 AA- AA+ ASSOCIATES CORP BAYER CORP AA1 AA- ClTlGROUP AA2 AAI AA AA- COMMERCIAL CREDIT CO CREDIT SUlS AA1 AA3 AA- DEAN WlmER DISCV AA3 AA- AA- GENERAL ELECTRIC JERSEY CENT P8L MERRILL LYNCH MORGAN STANLEY DEAN WITTER NORTHERN ILL GAS OHIO BELL TEL PITNEY BOWES INC SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL AAA AAA AA3 AA3 AA1 AA2 AA3 AA3 AA3 AA2 AAA AAA 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 SSP) (Ratings of other debt must be AA or better by Moody's or SBP) NONE Investments with Subsequent Changes in Credit Rating * Latest MQQwss(be ~~ YalW YalW Carrying Market BAYER CORP A2 AA- 10/01/02 AAZ/AA 1.252.853 1,262,075 CAMPBELL SOUP CO HEWLETT-PACKARD AA3 A 10/01/03 AA3/AA- 1.957.148 2,044,320 A2 A- 06/15/05 AA3/AA- 721 1,674 7.41 1,530 WACHOVIA CORP AI A 07/15/05 AA3/AA- 4,016.433 4,313,640 * The City's Investment Policy allows the City Treasurer lo determine the course of action that would correct exceptions to the policy. All of these investments are paying interest at the required limes. 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. CITY OF CARLSBAD INVESTMENT PORTFOLIO EXHIBIT 9 AS OF JUNE 30,2002 PERCENTAGE WEIGHTINGS BY CORPORATE NOTE ISSUER ABN AMRO BANK ALLSTATE FINANCIAL ASSOCIATES CORP NA BAYER CAMPBELL SOUP CO ClTlGROUP COMM CREDIT CREDIT SUlS DEAN WITTER DlSCV GENERAL ELECTRIC CAP HEWLETT-PACKARD CO JERSEY CENT P&L MERRILL LYNCH MORGAN STANLEY DEAN WITTER 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 8,020,253.1 9 9,953,528.13 1,291,375.00 I ,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 15,789,131.03 715,349.40 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* 1.09% 2.06% 2.56% 0.33% 0.48% 2.15% 1.92% 0.80% 0.76% 2.04% 1.87% 0.76% 2.38% 4.05% 0.1 8% 0.50% 0.49% 1.04% 0.29% 0.81% 1.03% $389,451,476.68