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Home My WebLink About2002-10-01; City Council; 16910; Report On City Investments August 31, 2002i CITY OF CARLSBAD -AGENDA BILL I. B# 16,910 ITG. AS OF 8EPT. TRS CITY MGR:W 10-1-02 REPORT ON CITY INVESTMENTS August 31,2002 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 August 31,2002 is summarized below. Pooled Investment Portfolio (Cash and Securities) Current Month Prior Month Par Value 397,927,932 394,737,301 Market Value (2) 388,21o,a77 384,856,354 Amortized Cost (1) 388,036,005 384,706,867 Cost of Investments 387,603,424 383,913,321 (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 8/31/02. The equity portion of the various funds at the amortized value of the total portfolio is summarized below: 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. 16,910 Pooled Investment Interest Income Current Current Month Prior Month FYTD Income Month FYTD Cash Income Fiscal Year-to-Date * 1,214,194 1,845,838 3,060,032 'The cash income received is adjusted for any accrued interest purchased. Pooled Investment PerformancelMeasurement Average Life (Years) Modified Duration Average Yield June 2002 1.05 4.77% 1.12 August 2002 1.07 4.79% 1.17 July 2002 1.06 4.85% 1.17 ~~ ~ 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. Two payments totaling $2.75 million that were due to be paid on September 2"d were paid August 30 because of the Labor Day holiday. These early payments caused the portfolio to have $134 will self-correct by the end of September. million maturing within one year as of August 31, 2002. The required amount is $136 million. This 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 First Quarter Transactions Detailed Investment Report Fund Equity in Pooled Investments Corporate Note and Commercial Paper Ratings Percentage Weightings By Corporate Note Issuer EXHIBIT 1 0 0 0 0 0 0 0 0 0 0 0 0 2 m @? m 0 n 0 3 EXHIBIT 2 h N s 8 s 8 0 s "i m N s 8 s 2 s 0 6 a g s 8 c s 0 0 0 0 0 R z" m m m 2 0 d m W P W 3 0 P" m m 3 0 a g c 0 0 0 0 0 0 0 c m m - - N W" m m 0 0 0 2 m m a ". d 0 m a 4 3 z 0 Frc CI "m c:m II t 3 - " "% EXHIBIT 4 (t . . b . . 0 r 00 d cv 0 J J W m EXHIBIT 6 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF AUGUST 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 Enterprise: Carlsbad Municipal Water District Sewer Fund Solid Waste Golf Course Internal Service Redevelopment Funds (1) Agency Funds Misc. Special Funds Total General Ledger Balance Total Total Reconciling Adjustments (2) Total Treasurer's Investment Portfolio at Amortized Cost 72,427,455 26,140,956 1,817,847 12.21 8,677 6,355,402 31,231,201 8,831,881 7,841,221 7,526,364 59,633,233 11,570,203 2,220,586 147,428,770 51,621,545 57,878.399 4,064,603 2,588,706 116,153,252 13,971,705 0 8,688,267 0 386,628,251 (1,771.897) 384,856,354 (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. amoltized premium or discounts and outstanding checks and deposits in transit are not included in the Treasurets 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 9/11/02 EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF AUGUST 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 SBP) Moodv's - SBP ABN AMRO BANK ALLSTATE FINANCIAL ASSOCIATES CORP ClTlGROUP COMMERCIAL CREDIT CO CREDIT SUE DEAN WlnER DlSCV JERSEY CENT P&L GENERAL ELECTRIC MERRiLL LYNCH MORGAN STANLEY DEAN WiTTER NORTHERN ILL GAS OHIO BELL TEL PITNEY BOWES INC PACIFIC BELL SBC COMMUNICATIONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL AA3 PA2 AA1 AAl AA1 AA3 AA3 AAA AAA AA3 AA3 AA1 PA2 AA3 AA3 AA3 AA3 PA2 AA+ AA- AA- AA- AA- AA- AAA 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 Moodv's Market - S&P MaturitvDate Purchased - Value BAYER CORP A2 AA- 10/01/02 AA2IAA 1,250,951 1,253,525 CAMPBELL SOUP CO AA3 A 10/01/03 AA3IAA- 1,962,861 2,051,040 HEWLETT-PACKARD A2 A- 06/15/05 AA3IAA- 7,199,737 7,501,690 WACHOVIA CORP AI A 07/15/05 AA3/AA- 4,015,732 4,350,700 * The City's Investment Policy allows the City Treasurer to determine the wurse 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. /3 EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF AUGUST 31,2002 PERCENTAGE WElGHTlNGS BY CORPORATE NOTE ISSUER ABN AMRO BANK ALLSTATE FINANCIAL ASSOCIATES CORP NA BAYER CAMPBELL SOUP CO ClTlGROUP COMM CREDIT CREDIT SUE DEAN WITTER DISCV GENERAL ELECTRIC CAP HEWLETT-PACKARD CO JERSEY CENT PBL MERRILL LYNCH MORGAN STANLEY DEAN WITTER NORTHERN ILL GAS OHIO BELL TEL PACIFIC BELL PITNEY BOWES INC SBC COMMUNICATIONS SOUTHERN N/EW 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 15,789,131.03 715,349.40 1,947,308.26 4,327,140.05 1,919,298.74 4,058.275.56 1,113,832.90 2,097,205.18 4,023,404.94 Percent of Portfolio' 1.10% 2.08% 2.59% 0.34% 0.49% 2.18% 1.94% 0.81% 0.77% 2.07% 1.90% 0.77% 2.41% 4.10% 0.19% 0.51% 1.12% 0.50% 1.05% 0.29% 0.55% 1.05% $384,709,867.10