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Home My WebLink About2002-11-05; City Council; 16956; Report On City Investments As Of 9/30/02CITY OF CARLSBAD -AGENDA BILL 4B# 16,956 m: REPORT ON CITY INVESTMENTS AS OF SEPTEMBER 30,2002 ATG. 11-5-02 IEPT. TRS 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 September 30, 2002 is summarized below. Pooled Investment Portfolio (Cash and Securities) I I Current Month Prior Month I I Par Value 383,913,321 388,042,301 I I Cost of Investments 384,706,867 389,278,148 I I Amortized Cost (1) 384,856,354 389,502,954 Market Value (2) 394,737,301 400,480,026 (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 9/30/02. 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 Special Revenue 73,428,159 14,001,838 Internal Service 117,861,914 Enterprise 147,431,061 Ua$ital Projects 1,817,847 "-5t Service 25,804,478 9,380,261 -* I"^ ^^ .\ Agency runas 389,502,954 Total Treasurer's Investment Portfolio at Amortized Cost Reconciling Adjustmarlts I (LLL,OWJ - 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. 16,956 Pooled Investment Interest Income I Current I Prior I Current Month Month FYTD Income Month FYTD Cash Income Fiscal Year-to-Date * 1,832,258 3,060,032 4,892,290 “The cash income received is adjusted for any accrued interest purchased. Average Life Duration Average Yield (Years) Modified July 2002 Aug 2002 1.843 4.79% 1.17 1.830 4.69% 1.12 Sept 2002 1.897 4.77% 1.12 I I I I 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 City’s Investment Policy requires that modified duration not exceed 1.8. New computer software has been adopted that calculates modified duration in a different way, causing modified duration to be higher that previously calculated. It is the opinion of the City Treasurer that the modified duration now reported is a better indication of the pottfolio’s maximum exposure to interest rate changes. A change to the maximum modified duration allowed in the City’s Investment Policy will be recommended in the next annual review, scheduled in January 2003. This will not reflect any divergence from other requirements of the Investment Policy The pooled investment portfolio has the ability to meet the City’s cash flow demands for the next six (6) months. September 30, 2002 is as follows: In summary, the City’s investments of bond proceeds held separately as of the quarter ended Investment Portfolio for Bond Proceeds Current Quarter Prior Quarter Par Value 8,604,021 7,753,850 cost 8,604,021 7,753,580 All investments of bond proceeds have been made in accordance with the City’s Investment Policy and the trust indenture for each issue. 02 PAGE THREE OF AGENDA BILL NO. 16,956 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 First 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 EXHIBIT 1 EXHIBIT 2 0 0 31 0 0 C 0 0 0 N r- x 2 W 5 0 0 0 0" vi 0 0 M 0 2 w C 5 1. ? z 0 N 0 n H f El EXHIBIT 4 0 E 0 m 0 I 0 n m 0 , . . I , . . 4 7 J !i m r 0 R EXHIBIT 6 gddddiiizddddiz rra 222222222222222222222222222 +v vvvv~vvvvvvvvvvvvvvvvvvvvvv 0000000 EXHIBIT 7 Fund Equity in Pooled Investments AS OF SEPTEMBER 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 Internal Service Redevelopment Funds (1) Agency Funds Misc. Special Funds Total Total Total General Ledger Balance ** Reconciling Adjustments (2) Total Treasurer's Investment Portfolio at Amortized Cost 73,428,159 25,804,478 1,817,847 12,279,920 6,381,838 31,027,162 8,872,582 7,810,126 7,496,428 60,361,884 11,530,523 1,670,599 147,431,061 52,689,818 58,508,283 4,104,279 2,559,534 117,861,914 14,001,838 0 9,380,261 0 389,725,558 (222,604) 389,502,954 (1) Redevelopment Fund Balances are interspersed throughout all funds (2) The Reconciling Adjustments consist of differences between the Genera 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 10/07/02 13 EXHIBIT 8 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF SEPTEMBER 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) Moody's - S&P ALLSTATE FINANCIAL ASSOCIATES CORP ClTlGROUP COMMERCIAL CREDIT CO CREDIT SUlS DEAN WITTER DISCV GENERAL ELECTRIC JERSEY CENT P&L MERRiLL LYNCH MORGAN STANLEY DEAN WITTER NORTHERN ILL GAS OHIO BELL TEL PACIFIC BELL PITNEY BOWES INC SBC COMMUNlCATiONS SOUTHERN NEW ENGLAND TEL SOUTHWESTERN BELL AA2 AA1 PA1 AA1 AA3 AAA AA3 AAA AA3 AA3 AA1 AA2 AA3 AA3 AA3 AA3 AA2 AA+ AA- AA- AA- AA- AA- AAA AAA AA- AA- AA AA- AA- AA AA- AA- AA- Commercial Paper Investments Meeting the Current Investment Policy: (Ratings must be AllPl or better by both Moody's and S&P) (Ratings of other debt must be AA or better by Moody's or SBP) NONE Investments with Subsequent Changes in Credit Rating Moody's - S&P ABN AMRO BANK AI A+ BAYER CORP A2 A+ CAMPBELL SOUP CO A3 A HEWLETT-PACKARD A3 A- WACHOVIA CORP AI A Latest Maturitv Date Purchased Carrying 05/31/05 AA3/AA- 4,169,357 10/01/02 AA2/AA 1,250,000 10/01/03 AA3/AA- 1,965,718 06/15/05 AA3/AA- 7,193,769 07/15/05 AA3/AA- 4,015,375 Market 4,502,508 1,250,000 2,054,120 7,580,090 4,382,040 * The City's Investment Policy allows the City Treasurer to determine the course 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. EXHIBIT 9 CITY OF CARLSBAD INVESTMENT PORTFOLIO AS OF SEPTEMBER 30,2002 PERCENTAGE WElGHTlNGS BY CORPORATE NOTE ISSUER ABN AMRO BANK ALLSTATE FINANCIAL BAYER CAMPBELL SOUP CO ClTlGROUP I ASSOCIATES CORP COMM CREDIT CREDIT SUlS GENERAL ELECTRIC CAP HEWLETT-PACKARD CO JERSEY CENT P&L MERRILL LYNCH MORGAN STANLEY DEAN WITTER I DEAN WITTER DISCV NORTHERN ILL GAS OHIO BELL TEL PACIFIC BELL PITNEY BOWES INC SBC COMMUNICATIONS SOUTHERN NEW 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 1,291,375.00 1,868,662.02 18,326,023.13 7,474,695.94 7,380.021.78 7,948.535.60 7,301,835.93 2,974,560.00 8,235,653.27 16,739,685.00 715,349.40 1,947,308.26 7,593,579.83 1,919,298.74 4,058,275.56 1 ,I 13.832.90 2,097.205.18 4,023,404.94 Percent of Portfolio' 1.09% 2.06% 0.33% 0.48% 4.71% 1.92% 1.90% 2.04% 1.88% 0.76% 2.12% 4.81% 0.18% 0.50% 1.95% 0.49% 1.04% 0.29% 0.54% 1.03% $389,270.147.74 at sss zz z 9 I? I 9 m EXHIBIT 10