HomeMy WebLinkAbout2003-01-14; City Council; 17037; Report On City Investments As Of November 30, 2002CITY OF CARLSBAD -AGENDA BILL
AB# 17,037
MTG. 1-14-03
TITLE: - REPORT ON CITY INVESTMENTS
AS OF
November 30,2002 DEPT. 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 porlfolio. 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 November 30,2002 is summarized below.
I Pooled Investment Portfolio (Cash and Securities)
1
Current Month Prior Month
Par Value
Cost of Investments
388,597,190 389,012,033
400,361,816 399,695,726 Market Value (2)
390,182,339 391,047,587 Amortized Cost (1)
389,910,100 390,584,975
(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 11/30/02.
The equity portion of the various funds at the amortized value of the total portfolio is
summarized below:
a Fund equity balances are restricted for various purposes as listed above. See Exhibit 7
for a more detailed breakdown. 4 3 5
3 >
3
PAGE TWO OF AGENDA BILL NO. 17,037
Pooled Investment Interest Income
Current Prior Current Month
Month FYTD Month FYTD Income
Cash Income Fiscal
Year-to-Date * 1,540,568 7,024,926 8,565,494
*The cash income received is adjusted for any accrued interest purchased.
Pooled Investment PerformancelMeasurement
Average Life
(Years) Modified Duration Average Yield
September 2002 1.830 4.69% 2.04
I I I October 2002 1.824 4.60% 2.03
I I I November 2002 1.719 4.36% 1.90
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
typically a change in the City’s Investment Policy, a change in the credit rating subsequent to a
resulted in some investments not being in compliance with the current policy. These events are
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 than previously calculated. It is the opinion of the City Treasurer that the
modified duration now reported is a better indication of the portfolio’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.
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
Second Quarter Transactions
Detailed Investment Report
Fund Equity in Pooled Investments
Corporate Note and Commercial Paper Ratings
Percentage Weightings By Corporate Note Issuer
EXHIBIT 1
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EXHIBIT 2
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EXHIBIT 7
Fund Equity in Pooled Investments
AS OF NOVEMBER 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
75,253.872
25,485,236
1,918,079
11,824,801
6,437,250
31,282,951
7,466,341
7,622,178
7,502,339
60,697,828
11,639,937
2,430,003
146,903,629
52,008,362
59,105,585
4.238.788
2,588,228
117,940,963
14,398,962
0
10,918,789
0
392,819,529
(1,771,943)
391,047,587
(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 12/06/02
EXHIBIT 8
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF NOVEMBER 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)
ALLSTATE FINANCIAL
ASSOCIATES CORP ClTiGROUP
COMMERCIAL CREDIT CO CREDIT SUE
DEAN WITTER DISCV
GENERAL ELECTRIC
EASTERNENERGY
JERSEY CENT PaL
MERRILL LYNCH
MORGAN STANLEY DEAN WITTER
NORTHERN ILL GAS
OHIO BELL TEL
PACIFIC BELL
PITNEY BOWES INC
SBC COMMUNICATIONS
SECURITY CAPITAL - GE
SOUTHERN NEW ENGLAND TEL
SOUTHWESTERN BELL
Moodv's - S&P
AA2 AA+
AA1 AA-
AA1 AA-
AAI AA-
AA3
AA3
AA- AA- AAA AAA
AAA AAA
AAA AAA
AA3 AA-
AA3 AA-
AA1 AA
AA2 AA-
AA3 AA-
AA3
AA3 AA-
AA
AAA
PA3
AAA
AA2 AA-
AA-
Commercial Paper Investments Meeting the Current Investment Policy:
(Ratings must be AI/PI or better by both Moody's and S&P)
(Ratings of other debt must be AA or better by Moodvs or S&P)
NONE
Investments with Subsequent Changes in Credit Rating *
Moodv's
Latest Carrying Market - S&P MaturitvDate Purchased Value
ABN AMRO BANK AI A+ 05/31/05 AA3/AA- 4,163,453 4,438.938
CAMPBELL SOUP CO A3 A 10/01/03 AA3/AA- 1,971,432 2,045.680
WACHOVIA CORP A1 A 07/15/05 AA3/AA- 4,014,660 4,349,720
* 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.
EXHIBIT 9
CITY OF CARLSBAD INVESTMENT PORTFOLIO
AS OF NOVEMBER 30,2002
PERCENTAGE WElGHTlNGS BY CORPORATE NOTE lSSUER
ABN AMRO BANK
ALLSTATE FINANCIAL
CAMPBELL SOUP GO
ClTlGROUP / ASSOCIATES CORP
COMM CREDIT
CREDIT SUlS
EASTERN ENERGY
GENERAL ELECTRIC CAP /
SECURITY CAPITAL
JERSEYCENTP&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
1,868,682.02
16,793,793.13
7,474,695.94
4,270,881.12
2,199,911.90
14,441,31955
Percent of Portfolio'
1.08%
2.05%
0.48%
4.30%
1.91%
1.09%
0.56%
3.70%
2,974,560.00 0.76%
6,145,447.87 1.57%
18,739,685.00 4.80%
715,349.40
1,947,308.26
7,593,579.83
1,919,298.74
4,058,275.56
1,113,832.90
2,097,205.18
4,023,404.94
0.18%
0.50%
1.94%
0.49%
1.04%
0.29%
0.54%
1.03%
$390,584,974.75